MKT243 CHAPTER1

CHAPTER 1
An
Overview
of
Marketing
LEARNING OUTCOMES
1.1 Overview of marketing
1.2 Elements of marketing mix (4P’s)
1.3 Marketing management philosophies
1.4 External marketing environment

LO 1 : Overview of marketing
Definition of Marketing
The American Marketing Association’s
definition of marketing focuses on the
second facet. Marketing is the activity,
set of institutions, and processes for
creating, communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society
at large.
Marketing involves more than just
activities performed by a group of people
in a defined area or department.
LO 2 :Elements of marketing mix (4P’s)
The Four Ps Customer value

and beneficial
Creating
Value
1. Product relationships
2. Price
3. Place
4. Promotion Exchange offers
A B
6
Marketing Mix
 The marketing mix is a business tool used in developing

an integrated marketing strategy or plan. The crucial
component in marketing mix are :
 Product- Product is everything, both favourable and

unfavourable, that a person receives in exchange.
Tangible good, services and idea.
 Price-is the amount a customer pays for the product.
The marketer will decide how much it will charge for
offering a product or service example, RM2 shop sells its
products at RM2 per item. (https://www.google.com/search?q=marketing+mix&tbm=)
Copyright Kamil Ariff 2021 3/19/2024
Cont., 7
 Place- refers to providing the product available at

a place which is convenient for consumers to
access. The marketers need to decide how it will
make the offering available to target consumers
e.g., selling it at shops or through online.
 Promotion- is communication by marketers that

informs, persuades and remind potential buyers of
a product in order to influence a response.
Example, besides promoting its products through its
websites and shops, Adidas also sponsor sports
events like football, swimming and running.
Copyright Kamil Ariff 2021

(https://www.google.com/search?q=billboard+adidas+spons
3/19/2024
or+sport+event&tbm
8
LO 3: MARKETING MANAGEMENT
PHILOSOPHIES
product
Production
price
orientation
Selling
orientation
Marketing
orientation
Societal
Marketing
orientation
9
PRODUCTION ORIENTATION
 The production orientation focuses on internal
1
capabilities of the firm rather than on the desires and
needs of the marketplace. The management assesses
its resource and asks the question: “What can we do
best”.
 The management assesses it resources such as
capital, human resources competency and skill,
operational capabilities and other related resources.
 Suitable to apply production operation when
competition is weak, or demand exceeds supply.
 Examples: car manufactures, clothing designers, cell
phones companies, cosmetic companies all are
good examples who use the product concept
constantly creates that products outshines
comparable products already in stores shelves.
10
SALES ORIENTATION
2
 A sales orientation assumes that buyers will
buy more goods and services if aggressive
sales techniques are used and the high sales
result in high profits.
 Not only sales to the final buyers emphasized,
also to intermediaries are also encouraged to
push manufacturers’ products more
aggressively. 2
 To sales-oriented firms, marketing mean selling
things and collecting money.
11
3 MARKETING ORIENTATION
 The marketing orientation is based on an understanding that a sale

predominantly depends on the customer's decision to purchase a product
and on the customer's perception of the value of that product. The
marketing concept states that the social and economic justification for an
organization’s existence is the satisfaction of customer’s wants and needs
while meeting organizational objectives.
 It involves focusing on customers needs and wants, integrating all the
organizations activities and achieving long term goals.

12
Cont.,
Achieving a Marketing Orientation by:
Obtain Obtain information about customers, competitors, and markets
Examine Examine the information from a total business perspective
Determine how to deliver superior

Determine customer value
Implement actions to provide value

Implement to customers
13
SOCIETAL MARKETING ORIENTATION
 The societal marketing orientation holds that the

firm should strive not only to satisfy customer
needs and wants while meeting organizational
objectives and preserving or enhancing both
4
the individual's and society's long-term best
interests.
 The orientation extends the marketing concept
to serve three bodies rather than two:
customers, organization itself, and society as a
whole.

14
Cont.,
An organization exists not only to satisfy customer wants ’

Achieving a Societal Marketing
Orientation by:
 Less toxic products

 More durable products
 Products with reusable
or recyclable materials
(
(https://www.google.com/search?q=moslem+scientist&tbm=)
REVIEW LEARNING OUTCOME

THE FOUR MARKETING MANAGEMENT PHILOSOPHIES
Orientation Focus is on…
Production internal capabilities of the firm
Sales aggressive sales techniques and belief

that high sales result in high profits
Market satisfying customer needs and wants
while meeting objectives
satisfying customer needs and
Societal wants while enhancing individual and
societal well-being
LO 4 : External marketing environment
• External environment/factors (outside the firm) where firms

work and compete, it is that things are constantly changing.
• If the organization doesn’t understand or fails to react to the

changing world around it, it will soon be a follower rather
than a leader. In the worst case scenario, the firm might
disappears.
LO 4 : External marketing environment
4P Internal External Environment

(within the (uncontrollable) Social
organization) Factors
Demographics
Marketing mix (statistics that describe populations
Product and their characteristics)
Economic
Distributio Factors
n
Promotion
Price Competition
Target Market Political &
Legal
Technology Factors
Environmental
Scanning
Social Factors
Values, Attitudes & Lifestyles

The Changing Role of Families and
Working Women
There Is Never Enough Time
VALUE
 Define : is strongly held and enduring

belief
 A person’s values are key
determinants of what is important and
not important, what actions to take or
not to take and one behaves in social
institutions.
 People form a values through
interaction with family, friends and
other influencers.
https://www.google.com/search?q=VALUE&tbm=
20
Customer value
 the ratio of benefits for the customer

(organization or consumer) to the sacrifice
necessary to obtain those benefits. The
customer determines the value of both the
benefits and the sacrifices. Creating
customer value is a core business strategy of
many successful firms.
21
Customer value
 the ratio of benefits for the customer

(organization or consumer) to the sacrifice
necessary to obtain those benefits. The
customer determines the value of both the
benefits and the sacrifices. Creating
customer value is a core business strategy of
many successful firms.

22
• Is the goods and services that are sold at prices the customers
willing to pay.
• To increase customer value, marketers:
Cont., • Offer products that perform
• Earn trust
• Avoid unrealistic pricing
• Give the buyer facts
• Offer organization-wide commitment in
service and after-sales support
• Co-Creation – participation of suppliers and customers to create a
better, innovative and user-friendly products.
23
What is your VALUE on this?
AIR ASIA
VS.
MALAYSIAN AIRLINE

Lifestyles
*A lifestyles is a mode of living or it is the way people

decide to live their lives
*The practice of choosing goods and services that meet
one’s diverse needs and interests rather than
conforming to a single, traditional lifestyle.
*The unique lifestyles of every consumer can require a
different marketing mix
Role of Families and Working Women
 The phenomena of working women has had the

greatest effect on marketing than any other social
change.
o 63% of all females (ages 16-65) are in the workforce
o Purchasing power from dual-career families

is rising.
* As women’s earning grow ,so do their level expertise,
experience and authority may increase.
Copyright Kamil Ariff 2020 https://www.google.com/search?q=malaysian+working+women+&tbm

Cont.,
Notes:
1. The phenomenon of working women has had a greater
effect on marketing than has any other social change.
2. Increase no. of working women in Malaysia.

People always feel they never have enough time to do all
that they need to do !.
• Increase no. of firms introducing fast food
packages such as Brahim’s packet rendang,
kurma, sweet & sour, even instant roti canai, rice
ketupat, ect to cater to these career women’s
demands for convenient food & cooking
ingredients.
Demographic Factors
(statistics that describe populations and their characteristics)
Demography - The study of people’s vital statistics, such as their

age, race, ethnicity, and location.
The Cohorts
Tweens : Ages 9–14
Teens : Ages 13–19
Gen Y : Born between 1979–1994
Gen X : Born between 1965–1978
Baby Boomers : Born between 1946–1964
Cont.,
1. Before produce new product, need to concern

about who are our target customer. So in order to
identify target customer need to look at
demographic factors.
2. Demographic characteristics are strongly related
to consumer buyer behavior.
3. Enable marketer to study consumer buying
behaviors & help respond to marketing mix to suit
the target market needs & wants.
Economic Factors
• Marketing managers must understand and react to the

economic environment.
• The three economic areas of greatest concern to most

marketers are consumers’ incomes (purchasing power),
inflation, and recession.
a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production,
employment, real income, and other indicators. (pembatalan)
1. Rising consumer income
 ↑ income, ↑ power to spend. Therefore, ↑ dd for quality of product.
 When people income ↑, marketer take these advantages by producing
better quality of products to generate more sales & get more profit.
2. Inflation
↑ in price without corresponding ↑ in salaries. Therefore, ↓ purchasing
Cont.,

power.
 Marketing strategy : give discount & low price - attract more customers
to buy the products.
3. Recession
 ↓ dd for product as ↓ consumer income, therefore ↑ unemployment
rate.
 Marketing strategy : try to new product that more economical &
effective, improve existing product & offer better value for money.
Technological Factors
• Research
• Global innovation
Cont.,
• New technology internally is a key to long-term competitive

advantage.
o Create more efficient operation or better products
o May render existing products obsolete
menyebabkan produk sedia ada menjadi usang
 Marketer must aware of new developments in technology.
 Business can easily decline when they ignore the emergence of new
technologies.
 Eg: new technology of machine able to reduce production cost.
Cont.,
 Major technological break-through:-
o Start an entirely new industry –

computer, laptop, komuter, LRT,
airplane, etc.
o Radically alter / destroy existing
industries – computers replacing
typewriter, fax replacing telegram,
etc.

(https://www.google.com/search?q=drone+polis+malaysia&tbm)
Cont.,
 The fourth industrial revolution which uses robotics, artificial

intelligence and information technology that enhance the use of
automation in manufacturing and other processes can disrupt how
business is managed today.
 The demise of Kodak and overthrown of Nokia by iPhone and Samsung
signaled the changes organizations must make to stay competitive.
Disruptive technologies such as Grab and Airbnb have changed the way
business is run. Organizations need to spend on research and
development to look for new processes and new ways to market their
products and services.
Political and Legal Factors
• Federal Legislation
• State Laws
• Regulatory Agencies
Political & Legal
4
 Laws, government agencies pressure groups made up the
political & legal environment.
 Can be group into 4 categories:

i. General monetary & fiscal policies.
ii. Broad social legislation & policies set by regulatory
agencies. perundangan & dasar sosial yang luas ditetapkan oleh kawal selia agensi
iii. Government relationship with individual industries.
iv. Laws affecting marketing itself.
Cont.,
 Business need regulation to protect innovators of new

technology , one business from another competitors and to
avoid threats.
 In turn, government needs business because the
marketplace generate taxes that support government
expenditure.
 Every aspect of the marketing mix is subject to laws and
restrictions. It is important to conform and comply with
regulations. Fail to comply will cause major consequences.

Cont.,
 Government can set rules or  When there is a change in the government,

new policies and sets of rules will have an
restrictions on the conduct impact on an organization. Government
of businesses. The purpose of stability and initiatives, foreign workers and
minimum wage policies, taxation policies
regulation is to protect both and other de-regularization have an
consumers and businesses. impact on an organization.
Businesses favor some  For instance, when new Pakatan Harapan
government took over on May 9, 2018, GST
regulations (such as patent was replaced with SST, all eateries outlets
laws) while resistance under must enforce, no smoking‰ effective
January 1, 2019, white shoes to be
others (such as restrictions on replaced with black shoes for students,
advertising). companies must adapt to these changes
to be sustainable.
Competitive Factors
• Competition for Market Share and Profits

• Global Competition
Competitive Factor
How many competitors?

Control
How big are competitors?
saling bergantung
How interdependent is
the industry?
CONT.,
1) Competition for market share & profits

 In millennium, all companies are competing each others in order to attract more
customers to generate more sales and get more Л.
 How to attract more customers? By producing variety chooses of products by offering
high quality of product.
 Eg; Coca Cola vs Pepsi
2) Global competition
 Tough competitions coz national competition already tough.
 How to cater the international customers? By offering best quality of product at
reasonable price. Therefore they can get more sales.
 Eg; M’sia – Proton compete with other brand such as Honda, Nissan, Toyota, etc.
Scenerio
Coke and Pepsi, for instance, are brand competitors who have
engaged in the so-called cola wars for decades. Each tries to capture
market share by convincing people that its soft drinks are better.
Because neither wants to lose share to the other, they tend to resort to
similar tactics. In summer 2004, both companies came out with
nearly identical new colas boasting half the sugar, half the calories,
and half the carbohydrates of regular colas. Coke called its product
Coke C2, while Pepsi named its competing brand PepsiEdge. Both
companies targeted cola drinkers who want the flavor of a regular
soda but fewer calories. (By the way, both products failed and were
taken off the market.)

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CHAPTER 1

1.1 Overview of marketing

1.2 Elements of marketing mix (4P’s)

1.3 Marketing management philosophies

1.4 External marketing environment

LO 2 :Elements of marketing mix (4P’s)

The Four Ps Customer value

 The marketing mix is a business tool used in developing

 Product- Product is everything, both favourable and

Copyright Kamil Ariff 2021 3/19/2024

 Place- refers to providing the product available at

 Promotion- is communication by marketers that

Copyright Kamil Ariff 2021

Copyright Kamil Ariff 2021 3/19/2024

 The production orientation focuses on internal

Copyright Kamil Ariff 2021 3/19/2024

 The marketing orientation is based on an understanding that a sale

Copyright Kamil Ariff 2021 3/19/2024

Achieving a Marketing Orientation by:

Obtain Obtain information about customers, competitors, and markets

Examine Examine the information from a total business perspective

Determine how to deliver superior

Implement actions to provide value

Copyright Kamil Ariff 2021 3/19/2024

 The societal marketing orientation holds that the

Copyright Kamil Ariff 2021 3/19/2024

An organization exists not only to satisfy customer wants ’

 Less toxic products

Copyright Kamil Ariff 2021 3/19/2024

REVIEW LEARNING OUTCOME

Orientation Focus is on…

Production internal capabilities of the firm

Sales aggressive sales techniques and belief

• External environment/factors (outside the firm) where firms

• If the organization doesn’t understand or fails to react to the

LO 4 : External marketing environment

4P Internal External Environment

Values, Attitudes & Lifestyles

 Define : is strongly held and enduring

 the ratio of benefits for the customer

Copyright Kamil Ariff 2021 3/19/2024

 the ratio of benefits for the customer

Copyright Kamil Ariff 2021 3/19/2024

Copyright Kamil Ariff 2021 3/19/2024

Copyright Kamil Ariff 2021 3/19/2024

*A lifestyles is a mode of living or it is the way people

Copyright Kamil Ariff 2020

Role of Families and Working Women

 The phenomena of working women has had the

o Purchasing power from dual-career families

Copyright Kamil Ariff 2020 https://www.google.com/search?q=malaysian+working+women+&tbm

2. Increase no. of working women in Malaysia.

Copyright Kamil Ariff 2020

Demography - The study of people’s vital statistics, such as their

1. Before produce new product, need to concern

• Marketing managers must understand and react to the

• The three economic areas of greatest concern to most

• New technology internally is a key to long-term competitive

Copyright Kamil Ariff 2020