Principles of Marketing

Week 1
Introduction and overview of
Marketing
 Learning objectives
• Define marketing and its process.
• Explain the importance of marketing to any
business set-up.
• Identify the key elements of a customer-driven
marketing strategy and discuss the marketing
management orientations that guide
marketing strategy.
 Key definitions of Marketing
•Marketing encompasses a diverse set of decisions and
activities performed by individuals and by both business and
non-business organisations.
•Marketing always begins and ends with the customer.
•Marketing integrates all the functions of a business and speaks
directly to the customer through advertising, salespeople and
other marketing activities.
•The American Marketing Association defines marketing as:
‘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.’
 Definitions of Marketing
• Marketing is the process of getting consumers
interested in your company’s product or
service.
• Marketing is what you say and how you say it
when you want to explain how awesome your
product is and why people should buy it
 Definitions of Marketing
• The action or business of promoting and selling
products or services, including market research
and advertising.
• 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
• The reality, is that marketing sits at the intersection
of the business and the customer – the great
arbiter of the self interests of the business and the
needs of the buyer.
 Definitions of Marketing
• Marketing – it is the process by which a
business decides what it will sell, to whom,
when and how.
• It integrates all the functions of a business .
• It also involves how a company positions itself,
through market research,
• Through new business/product development,
• Advertising and promotion, PR (public/press
relations), and all of the sales functions as
well.
 The Marketing concept
• The marketing concept is a business
philosophy that a firm should provide goods
and services that satisfy customers’ needs
through a coordinated set of activities that
allows the firm to achieve its objectives.
• Then the firm must develop a good or
service to satisfy those needs.
• The firm must continue to seek ways to
provide customer satisfaction.
 Implementing the Marketing concept
• (1) provide a product that will satisfy your
customers,
• (2) price the product at a level that is
acceptable to buyers and that will yield an
acceptable profit,
• (3) promote the product so that potential
customers will be aware of its existence and its
ability to satisfy their needs, and
• (4) ensure that the product is distributed so
that it is available to customers where and
when needed.
 Customer needs, wants and demands
• Human needs are states of felt deprivation.
• Wants are the form human needs take as they
are shaped by as they are shaped by culture
and individual personality.
• When backed by buying power, wants become
demands.
 Managing the Marketing Effort
• Managing the marketing process requires
marketing management.
• This involves analysis, planning,
implementation, organisation and control.
• The company first develops company-wide
strategic plans and then translates them into
marketing and other plans.
 Marketing strategy process
• Marketing plans undergo many changes until
all the parts are internally consistent and
mutually supportive of the objectives.
• It is very easy to get one part right but an
internally consistent and mutually supportive
marketing plan is consistent.
 Tutorial
• Why is marketing so important in any business
set-up?