Overview of Marketing: OFPS Entrepreneurship 3e

7
Chapter
OVERVIEW OF
MARKETING
OFPS Entrepreneurship 3e All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1
LEARNING OUTCOMES
 At the end of this chapter, you will be able to:

– Define marketing and identify the core marketing
concepts
– Discuss the concepts of marketing
– Identify the strategies in marketing mix
– Describe the micro and macro environmental forces
of a company
– State the functions of marketing research
– Describe the process of marketing research

DEFINITION OF MARKETING
 Marketing is an organizational function for creating,

communicating and delivering value to the customer and
to manage the relationship that benefit the organization and
shareholders.
 Marketing consists of performance of business activities that
directs the flow of goods and services from producer to
user.
 It is process, whereby individual or groups obtain what they
need and want through exchanging products, services and
value with others.
 The aim of the marketing process is to create value and
build relationship with customers.

BASIC CONCEPTS OF
MARKETING

Needs, Wants and Demand
What pushes a customer to take action?

Offerings and Product
What is offered
to fulfill needs, wants & demand?

Exchange Process
How does consumers pick a
product choice?

Exchange Process
How does the process occur?

Customer Value and
Satisfaction

Markets
Who picks the product choice?

DIFFERENCES BETWEEN THE
SELLING CONCEPT AND THE
MARKETING CONCEPT

MARKETING MIX (4P’S)
 Marketing mix refers to a mixture or blend of product,

place (distribution), promotion and pricing strategies that
are designed to satisfy exchanges with a target
market.
 The four components:

– Product
– Place
– Promotion
– Price

MARKETING MIX (4P’S)

STRATEGIES OF THE
MARKETING MIX
Type of Strategy Description
Product Strategy Consumers buy goods not only for what the
products can do (benefit), but also for what they
mean to customers (status, quality and reputation).
Place (Distribution) A part of this strategy is physical distribution which

Strategy involves storing and transporting raw materials or
finished goods.
Promotion Strategy Promotion strategy includes advertising, public

relations, sales promotion and personal selling
Pricing Strategy Price is what a buyer must have to give to obtain a

product.

STEPS IN TARGET MARKETING

BASES OF SEGMENTATION

MARKETING ENVIRONMENT
 Marketing environment refers to the forces that

affect the marketing management’s ability to
develop and maintain transactions with
customers.
 It consists of two components:

– Micro-environment
– Macro-environment

MICRO-ENVIRONMENT
 The micro-environment comprise the internal

environmental factors inside and also close to the
company which can affect the ability of the company
to serve its customers.
 There are six factors in the micro-environment:
– The company
– Suppliers
– Marketing intermediaries
– Customers
– Competitors
– The public

MACRO-ENVIRONMENT
 The macro-environment comprise the external

environmental factors that are largely beyond the
control of entrepreneurs and their organizations.
 The six factors in the company’s macro-
environment are:
– Demographic
– Economic
– Natural
– Technological
– Political
– Cultural
MARKETING RESEARCH
 Marketing research basically involves the

gathering of information about a particular
market and followed by analysis of that
information.
 It also includes the process of designing,

gathering, analyzing, and reporting information
that may be used to solve a specific marketing
problem.

PROCESS OF MARKETING
RESEARCH

MARKETING RESEARCH
INFORMATION
Types of information needed to support marketing

decisions are:
 Information about the market
 Information about products
 Information about pricing in the market
 Information about promotion in the market
 Information about distribution in the market

APPLICATION OF MARKETING
IN ENTREPRENEURSHIP
 Marketing is a business function that must be
used appropriately by the entrepreneur to
launch and develop the new venture
successfully.
 Marketing concepts such as target marketing,

price, distribution margins, manufacturer
representatives and sales promotion techniques
are vital to entrepreneurs.

PRODUCT LIFE CYCLE

 Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an
identified sponsor.
 E.g. Broadcast, print, internet, outdoor
Personal
Selling
• Personal presentation by the firm’s sales force for the
purpose of making sales and building customer
relationships.
• E.g. sales presentations, trade shows, incentive programs

Sales
Promotion
• Sales promotion tools are
targeted toward final buyers
(consumer promotions),
retailers and wholesalers
(trade promotions), business
customers (business
promotions), and members
of the sales force (sales
force promotions).
• E.g. Price discount, voucher,
free gift, contest and etc.

DIRECT
MARKETING
 Making direct connections with
carefully targeted individual
consumers to both obtain an
immediate response and
cultivate lasting customer
relationships – through the use
of direct and the internet to
communicate directly with
specific consumers.
 E.g. catalogue, telemarketing,
kiosks

ONLINE
MARKETING
 Online marketing is the marketing of products or

services using digital technologies, mainly on the
Internet, but also including mobile phones, display
advertising, and any other digital medium.
 E.g: social media, apps, website, e-commerce

TUTORIAL
1. Define the marketing.

2. Differentiate between need and want and provide any 2
examples for each of it.
3. Describe 3 types of market.
4. Identify 4 elements in marketing mix and explain the
appropriate strategy for each element.
5. Briefly explain 3 forces of micro environment.
6. With relevant diagram, explain the process that involved
in marketing research.
7. Define the sales promotion and give 3 examples of sales
promotion tools.

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7

 At the end of this chapter, you will be able to:

OFPS Entrepreneurship 3e All Rights Reserved

 Marketing is an organizational function for creating,

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

 Marketing mix refers to a mixture or blend of product,

 The four components:

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

Place (Distribution) A part of this strategy is physical distribution which

Promotion Strategy Promotion strategy includes advertising, public

Pricing Strategy Price is what a buyer must have to give to obtain a

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

 Marketing environment refers to the forces that

 It consists of two components:

OFPS Entrepreneurship 3e All Rights Reserved

 The micro-environment comprise the internal

OFPS Entrepreneurship 3e All Rights Reserved

 The macro-environment comprise the external

 Marketing research basically involves the

 It also includes the process of designing,

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

Types of information needed to support marketing

OFPS Entrepreneurship 3e All Rights Reserved

 Marketing concepts such as target marketing,

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

OFPS Entrepreneurship 3e All Rights Reserved

 Online marketing is the marketing of products or

OFPS Entrepreneurship 3e All Rights Reserved

1. Define the marketing.

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