MGT301

Principles of
Marketing
Lecture-2
Summary
of
Lecture-1
Marketing Involves having the Right Product
available in the Right Place at the Right Time and
making sure that the customer is Aware of the
Product.
Marketing
Product Price

Customers

Place Promotion
 Simple Marketing System

 Communicat
ion
 Product/Serv

ice
Producer/Seller  Mone Consumer
y

 Feedb
ack
Today’s Topics
 Road map
 Understanding Marketing and Marketing Process
 Core Marketing Concepts
 Road Map

 Introduction-an overview of marketing.

 Understanding Marketing and Marketing Process
 Marketing Functions and Customer Relationship
Management
 Marketing in Historical perspective and
Evolution of Marketing
 Marketing Challenges in the 21st century
 Marketing Management Process
 Marketing Management Process (cont….)
 Strategic Planning and Marketing Process
 The Marketing process
 The Marketing process (cont…)
 Marketing Environment (Micro)
 Marketing Environment (Macro)
 Analyzing Marketing opportunities and developing
strategies-MIS
 Marketing Research
 Consumer Market-understanding the consumer
 Consumer Markets and consumer buying behavior
 Consumer Markets and consumer buying behavior
(cont…)
 Buying Behaviors for New Products and services
 Business Buying Behavior
 Business Buying Behavior (cont..)
 Market segmentation
 Market segmentation (cont..)
 Developing the Marketing Mix--- 4 P’s
 Product Planning
 Product Planning (cont..)
 Product Planning (cont..)
 Service Strategy
 Pricing
 Pricing Strategies
 Price Adjustment and Price Changes
 Distribution Channels
 Distribution Channels (cont..)
 Logistics Management
 Retailing and wholesaling
 Promotion Planning
 Advertising
 Public Relations
 Personal Selling
 Sales Promotion
 Sales Force Management
 Integrating and analyzing the marketing plan
 Global Marketing
 Technological developments and Marketing
 Web base Marketing
 Social Marketing
 Social, Ethical and Consumer issues
 Review
 Marketing in a Glance
 Actors and Forces in a
Modern Marketing System

Environment

Company
(marketer)
Marketing End-user
Suppliers inter- market
mediaries

Competitors
 Simple Marketing System

Communicatio
n
Product/Servic
e
Producer/Seller Money Consumer

Feedbac
k
Simple Questions, Hard Answers

Who are our customers?

What important & unique benefits do we provide?

Are these benefits sustainable?

Process by which individuals and groups obtain what
they need and want through creating and exchanging
products and value with others.
More simply:
Marketing is the delivery of customer satisfaction at a
profit.
Product Price

Customers

Place Promotion
Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating, offering and exchanging products of
value with others.
Kotler 1994
Core Marketing Concepts
 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core
Core

satisfaction,
Marketing

and quality
Marketing

Value,
Concepts
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships
Needs

‘...a state of felt deprivation’

 Wants
needs ‘...shaped by culture and individual personality’


Demands
wants ‘...backed by purchasing power’
 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core
Core

satisfaction,
Marketing

and quality
Marketing

Value,
Concepts
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships
 A Product is....

‘...anything that can be offered to a market for

attention, acquisition, use or consumption and that
may satisfy a need or want’
includes:
– physical goods, services, people, places,
organizations, activities, ideas etc
 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core
Core

satisfaction,
Marketing

and quality
Marketing

Value,
Concepts
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships
 Exchange is...

‘...the act of obtaining a desired object from someone

by offering something in return’
Five conditions
1. Two parties
2. Something of value to offer each other
3. Willing to deal
4. Free to accept or reject offer
5. Able to communicate and deliver
 A transaction is...
 ‘...a trade between two parties that involves:
 at least two things of value;
 agreed upon conditions;
 a time of agreement; and
 a place of agreement’

 may be monetary or barter

 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core
Core

satisfaction,
Marketing

and quality
Marketing

Value,
Concepts
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships
 A market is...
 ‘...a set of actual and potential buyers of a product’
A place
 Marketingsatisfies the needs of markets by facilitating
the exchange process
 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core
Core

satisfaction,
Marketing

and quality
Marketing

Value,
Concepts
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships
Goals of the Marketing System
 Stimulate maximum consumption
 Maximize consumer satisfaction
 Maximize variety and choice
 Maximize quality of life
 Marketing Process Activities

Understand
Understand the
the organization’s
organization’s mission
mission
Set
Set marketing
marketing objectives
objectives
Gather,
Gather, analyze,
analyze, interpret
interpret “SWOT”
“SWOT” information
information
Develop
Develop aa marketing
marketing strategy
strategy
Implement
Implement the
the marketing
marketing strategy
strategy
Design
Design performance
performance measures
measures
Evaluate
Evaluate marketing
marketing efforts--change
efforts--change ifif needed
needed
 e r e
it h
to p
s s
t’
Le
Summary
 Road Map
 Understanding Marketing and Marketing Process
 Core Marketing Concepts
Core Marketing Concepts
 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core
Core

satisfaction,
Marketing

and quality
Marketing

Value,
Concepts
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships
 Next….
 Marketing Functions
 Customer Relationship Management
 MGT301
Principles of
Marketing
Lecture-2