Professional Documents
Culture Documents
Chapter# 1 Field of Marketing
Chapter# 1 Field of Marketing
Chapter# 1 Field of Marketing
1-1
MARKETING
13th edition
Chapter # 1
The
Field of
Marketing
What is Marketing?
Marketing
Marketing isis aa total
total system
system of of
business
business activities
activities designed
designed to to plan
plan product
product
price,
price, promote,
promote, and and place
place (distribute)
(distribute)
want-satisfying
want-satisfying product
product toto target
target markets
markets
in
in order
order to
to achieve
achieve organizational
organizational objectives
objectives..
1
Definitions of marketing
‘Marketing is the management process that identifies
and satisfies customer requirements profitably’
or
Marketing is a social and managerial process by which
individuals and groups obtain what they want and need
through creating, offering and exchanging products of
value with others’
Kotler 1991
1.2
Evolution of Marketing
• The following are the Orientation stages of
Marketing:
1-3
Product Orientation Stage
• 1800-1930’s
• primary focus in business was to efficiently produce large
quantities of products.
• Manufacturers, wholesalers, and retailers operating in this
stage emphasized internal operations and focused on
efficiency and cost control.
• This emphasis on products and operations dominated
until the early 1930s.
• Firms with a product orientation typically focus on the
quality and quantity of offerings while assuming that
customers will seek out and buy reasonably priced, well-
made products.
1-4
Sale Orientation Stage
• 1930-1960’s.
• The world economic crisis of the late 1920’s.
• Main focus was on how to sell the Output rather than
Manufacturing.
• Just offering a quality product was no assurance of
success.
• Managers began to realize that to sell their products in an
environment where consumers had limited resources and
various options.
• Started Promotional Activities.
• Advertising consumed a large share of a firm resources.
• Performance Expectation from the salespersons.
1-5
Market Orientation Stage
• 1960’s.
• World War-II, Demand for Consumer goods.
• Firms reverted to sales orientation.
• Sellers discovered that the war years had also
changed consumers.
• Many people who spent time overseas came back
home and for the first time women came out of home
into work place.
• Thus the evolution of marketing started.
• companies identify what customers want and satisfy
their needs.
1-8
SOME BASIC CONCEPTS
1 NEED
• Needs are basic and necessary
requirements of human beings, with out
fulfillment of which life will not be possible.
• For example food, shelter, clothing
SOME BASIC CONCEPTS
• 2. Wants
• Those needs which are not basic in nature,
but if we get them life becomes full of comforts
“Demand” 1-12
SOME BASIC CONCEPTS
• Product
• A product may be a good, service, place or
an idea. So all tangible and intangible
attributes which can satisfy human wants
are product.
SOME BASIC CONCEPTS
• Market
Market means, “The people or
organizations with needs to satisfy, money
to spend and willingness to spend money”.
roduct
ricing
lace
(Distribution)
romotion 1-20
Marketing Mix
The “Four P’s”
• The Marketing Mix
The strategy (Planning) of designing the
combination of products where and when
it is distributed, how it is promoted and at
what price.
Product
Pricing Target
Place Market
Promotion
1-21
The Four P`s
The Four C`s
Marketing
Mix
Product Place
Place
Customer Conven-
Solution Price
Price Promotion ience
Promotion
Customer Communication
Cost 1-22
Market Segmentation &
Target Marketing
Market Segmentation
Dividing a market into
customer categories
Target Marketing
Selecting a category of
customers with similar wants
and needs who are likely to
respond to the same products
1-23
Segmentation and Target Marketing
#1 #2
Market Segmentation:
Divide the market into
segments of customers
Target Marketing:
Select the segment to
cultivate
1-24
Value and Satisfaction
8 10 10 8
Customer benefits
Anything desired by the
customer that is received in
an exchange
Customer costs
Anything a customer gives up
in an exchange for benefits
1-26
The Marketing Concept
MARKETING CONCEPT
Customer
orientation + Coordinated
Customer Organizational
+ marketing
satisfaction success
Organization’s activities
performance +
objectives
1-27
Societal Marketing Concept
Society
Society
(Human
(Human Welfare
Welfare))
Societal
Societal
Marketing
Marketing
Concept
Concept
Consumers
Consumers Company
Company
(Wants)
(Wants) (Profits)
(Profits)
1-28
IMPORTANCE OF MARKETING
• Marketing is playing a very important role in
today`s business world, and its importance
is increasing day by day,
IMPORTANCE OF MARKETING
• AT GLOBAL LEVEL:
• Marketing provides services in promoting
multinational business all around the world
to international customers in international
markets.
• Coca Cola operates all over the world, and
the marketers are providing services for
them in the entire world.
IMPORTANCE OF MARKETING
• At Domestic Level