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 Some Perspective…
Historical Views of Marketing
• In well-ordered states, storekeepers and salesmen are
commonly those who are weakest in bodily strength and,
therefore, of little use for any purpose.
– Plato

• Merchants are to be accounted vulgar, for they can make

no profit except by a certain amount of falsehood.
– Cicero

• Advertising…is a meretricious endeavor in which

psychological appeals to “fear” and “shame” are
developed to bamboozle the public into purchasing
essentially worthless packaged goods at bloated prices.
– Thorstein Veblen
 What is Marketing?
• 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 1996
 THE ESSENCE OF MARKETING IS AN
EXCHANGE OF VALUE FOR VALUE.
• Exchanges are carried out by business firms, and also
by nonbusiness organizations and even individuals.
• Four conditions must exist for an exchange to be able
to occur:
– Two or more people or organizations must be
involved.
– The parties must be involved voluntarily.
– Each party must have something of value to
exchange, and the parties must believe they will
each benefit from the exchange.
– The parties must be able to communicate with each
other.

1-2 Prof. Dr. M. Azam Khan

 MARKETING INVOLVES STIMULATING AND
MANAGING EXCHANGES.
• Marketing is a total system of business activities designed
to plan, price, promote, and distribute want-satisfying
products to target markets to achieve organizational
objectives.
• This definition implies:
– The entire system of business activities should be
customer oriented.
– A marketing program should start with an idea about a
want-satisfying product and not end until the customers’
wants are completely satisfied.
• Our primary focus is on marketing conducted by business
organizations, but it also encompasses marketing by such
“firms” as Madrasas, zoos, museums, and charities.

1-3 Prof. Dr. M. Azam Khan

 PRODUCTION ORIENTATION

Some industries and organizations remain at the

production-orientation stage.

PRODUCTION ORIENTATION SALES ORIENTATION

Other industries and organizations have progressed only to the

sales-orientation stage.

PRODUCTION SALES MARKETING

ORIENTATION ORIENTATIO ORIENTATION
N
Many industries and organizations have progressed to the
marketing-orientation stage.
Late 1800s Early 1930s Mid-1950s 1900s
1-5 Prof. Dr. M. Azam Khan
 TWO RECENTLY DEVELOPED STRATEGIES
REFLECT A MARKETING ORIENTATION.
• Relationship Marketing
– An attempt to build personal, long-term bonds with customers.
– Relationship marketing has expanded to include all groups an
organization interact with: suppliers, employees, unions,
government, and even competitors.
• Mass Customization
– An attempt to provide affordable products customized to come
as close as possible to meeting the needs of individual
customers.
– This is made possible because of advances in information
technology.

1-6 Prof. Dr. M. Azam Khan

 DIFFERENCES BETWEEN MARKETING
AND SELLING.

• Marketing is the process of determining customer

wants and then developing a product to satisfy
that need and still yield a satisfactory profit. It is
externally focused.
• Selling is producing a product and then trying to
persuade customers to purchase it -- in effect,
trying to alter consumer demand. It is internally
focused.

1-7 Prof. Dr. M. Azam Khan

THE MARKETING CONCEPT IS A PHILOSOPHY
THAT EMPHASIZES CUSTOMER ORIENTATION
AND COORDINATION OF MARKETING
ACTIVITIES TO ACHIEVE THE ORGANIZATION’S
PERFORMANCE OBJECTIVES.

• A revised philosophy, called the societal

marketing concept, involves broadly defining
customer and taking a long-term view of
customers satisfaction.

1-8 Prof. Dr. M. Azam Khan

 MARKETING CONCEPT

Customer
orientation + Coordinated
Customer Organizational
+ marketing
activities
satisfaction success
Organization’s
performance
+
objectives

1-9 Prof. Dr. M. Azam Khan

 CAN A PARKING LOT INDICATE CUSTOMER
ORIENTATION?

• In most hospital parking lots, the close-in spaces

say “Doctors Only.”
• Government employees have parking spaces near
the front door labeled “Govt. Officers Only.”
• For years the Big Three U.S. automakers allowed
only their own makes of cars in their lots, and finally
relenting, allowed only other American cars there.

1-10 Prof. Dr. M. Azam Khan

 ETHICS AND MARKETING
• Marketing is intended to influence the behavior of customers
and others.
– The use of marketing tools can create a wide variety of
ethical challenges.
• There is disagreement over what constitutes ethical or
unethical behavior.
– Ethics are controlling the uncontrollable
– Ethics are standards of behavior generally accepted by
society.
– Ethics vary from society to society.

1-11 Prof. Dr. M. Azam Khan

 ETHICS AND MARKETING (cont.)

• Corporations are taking action to instill ethical

awareness in their employees by:
– Avoiding unreasonable pressure on employees
to perform.
– Communicating clearly what is expected of
employees.
– Employing an “Ethics Officer” to advise
employees on ethical dilemmas.
– Rewarding only ethical performance.

1-12 Prof. Dr. M. Azam Khan

 QUALITY IN MARKETING

• Quality has three dimensions

– Meeting and striving to exceed customers’
requirements.
– The absence of variation.
– Total organizational commitment.
• The best indicator of quality is customer
satisfaction.

1-13 Prof. Dr. M. Azam Khan

 IMPORTANCE OF MARKETING IN THE
GLOBAL ECONOMY

• Nations depend upon marketing to sell their raw

materials and industrial output to other
countries.
• Companies now compete in markets all over the
world.
• Foreign companies now build 2 million cars and
light trucks a year in the U.S., up from nothing 15
years ago.

1-14 Prof. Dr. M. Azam Khan

 IMPORTANCE OF MARKETING IN THE
AMERICAN SOCIOECONOMIC SYSTEM
• Marketing creates utilities:
– Place utility makes a product accessible to potential
customers where they want it.
– Time utility makes a product available when they want it.
– Information utility is created by informing prospective
buyers that a product exists.
– Image utility is the emotional or psychological value that
the customer attaches to a product or brand.
– Possession utility is created when ownership is
transferred to the buyer.

1-15 Prof. Dr. M. Azam Khan

 IMPORTANCE OF MARKETING IN
ORGANIZATIONS

• The basic reason for firm’s existence is

customers want satisfaction.
• Marketing is the only revenue-producing activity
for the firm.
• Marketing has become increasinly important for
service firms and nonprofit organizations.

1-16 Prof. Dr. M. Azam Khan

 IMPORTANCE OF MARKETING IN YOUR LIFE

• Marketing is a large part of your daily life.

Consumers are exposed to 3,000 commercial
messages a day.
• Studying marketing will make you a better-
informed customer.
• Marketing probably relates -- directly or indirectly
-- to your career aspirations. (See appendix B.)

1-17 Prof. Dr. M. Azam Khan

 Some More Modern Views
• Corporate leaders nationwide are discovering that their most
powerful competitive weapon is marketing -- the development,
pricing, distribution and promotion of products.
– Newsweek

• Marketing is now central to success at any company in any

business and it’s going to make the difference between
winners and losers.
– Stephen Greyser, HBS

• More than half of the polled executives at 250 corporations

ranked marketing as the most important element of strategy for
the 1990s.
– Yankelovitch, Skelly and White