Principles of

Marketing
By
Sharmarke
Hassan Nur
Gollis University-Gabiley
Chapter One
Understanding
Marketing
What is marketing?

What is marketing to you?

 What is marketing?
 What does the term marketing mean? Many people
think of marketing only as selling and advertising.
And no wonder, for every day we are bombarded
with television commercials, newspaper ads, direct
mail campaigns, Internet pitches and sales calls.
 Although they are important, they are only two of
many marketing functions and are often not the most
important ones
 Cont..
 Today, marketing must be understood not in the old
sense of making a sale – ‘telling and selling’ – but in
the new sense of satisfying customer needs.
 Selling occurs only after a product is produced. By
contrast, marketing starts long before a company has
a product.
 Definition
 Marketing is about meeting human and social needs, it is
meeting needs profitably.
 American Marketing Associations.
 Marketing is the activity, set of institutions, and process of
creating, communicating, delivering and exchanging
offerings that have value for customers, partners, and
society at large.
 Marketing management is the art of and science of
choosing target markets, and getting, keeping and growing
customers through creating, delivering and communicating
superior customers value.
Social definitions of Marketing
 a social definition shows the role marketing plays in the
society.
 Marketing’s role is to “ deliver a higher standard of
living”.
 Marketing is a social process by which individuals and
groups obtain what they need and want through creating,
offering, and freely exchanging products and services of
values with others.
What is Marketed?
 Marketing people market 10 types of entities, namely.
 Goods- physical goods constitute the bulk of most
countries production and marketing efforts.
 Services- as economies advance, a growing proportion of
their activities focuses on production of services.
 Events- marketers promote time-based events, such as
major trade shows, artistic performances, and companies
anniversaries
 Cont..
 Persons- Celebrity marketing is a major business,,
artists, musicians, CEOs, physicians, high profile lowers,
and financiers, and other professionals all get help from
celebrity marketers.
 places – cities, regions, and whole nations compete
actively to attract tourists, factors, company
headquarters, and new residents.
 Cont..
 Experiences- by composing several services and goods, a
firm can create a stage, and market experience.
 Properties- properties are intangible rights of ownership of
either real property( real state), or financial property ( stocks).
Properties are bought and sold, and these exchanges require
marketing.
 organizations- organizations actively work to build a strong
favorable and unique image in the minds of their target publics.
Universities, museums, performing arts organizations, and non
profits all use marketing to boost their public images and to
compete with their competitors.
 Cont..
 Information- information is essentially what books ,
universities and schools produce, market, and distribute at
a price to parents, students, and communities.
 Ideas- every market offering includes a basic ideas.
 products and services are platforms for delivering
some ideas or benefits.
 Who Markets
 A marketer is someone who seeks a response – attention,
a purchase, a vote, a donation- from another party, called
the prospect. If two parties are seeking to sell something
to each other, we call them both marketers.
 Marketers are indeed skilled at stimulating demand for
their companies products, but that is too limited a view of
the tasks they perform.
 Just as production and logistics professionals are
responsible for supply management, marketers are
responsible for demand management
 Cont..

 Market
 Traditionally, a market was physical place where
buyers and sellers gathered to buy and sell goods.
 Economists- describe a market as a collection of buyers
and sellers who transact over a particular product or
product class.
 Marketplace, Marketspaces and metamarkets
 marketplace is a small area in a town or city where goods
are bought and sold, often outdoors. Ex. Shops, retail store,
supermarket etc.
 MarketSpace is an e-commerce platform for creating
online marketplaces for business, communities and events.
 Cont..
 Metamarkets- is a cluster of complementary products and
services that are closely related in the minds of consumers,
but spread across a diverse set of industries.
 The Automobile Metamarket consists of automobile
manufacturers, new car and used car dealers, mechanics,
spare parts dealers, service shops, auto magazines , auto
ads in newspapers, and auto sites on internet.
 Discussion Point

How could we differentiate

Marketing and International
Marketing
 Marketing in Practice
 Marketing in not only done by marketing department.
 Marketing needs to affect every aspect of the customer
experience, that marketers must properly manage all
possible touch points.
 Marketing must be heavily involved in key general
management activities, such as product innovation &
new business development.
 Cont..
 Companies generally establish a marketing department to
be responsible for creating and delivering customer value,
but,
 Marketing is far too important to leave to the marketing
department.
 Every employee has an impact on the customer and must
see the customer as the source of company’s property.
 Hence, companies are starting to emphasize on
interdepartmental teamwork to manage the key process.
Core Marketing Concepts
Needs, wants and demands
 The most basic concept underlying marketing is that of
human needs
 Needs: are the basic human requirements. People needs
include basic physical needs for food, clothing, shelter and
safety; social needs for belonging and affection; and
individual needs for knowledge and self-expression.
 Marketers did not invent these needs; they are a basic part of
the human make-up. When a need is not satisfied, a person
will do one of two things:
 1. look for an object that will satisfy it; or
 2. try to reduce the need.
 Cont..
 People have narrow, basic needs (e.g. for food or shelter),
but almost unlimited wants. However, they also have
limited resources. Thus, they want to choose products that
provide the most satisfaction for their money.
 These needs become wants when they are directed to
specific objects that may satisfy the need.
 ex. A consumer in the united states needs food, but may
want a hamburger, French fries, & a soft drink.
 Anna
“I always like to eat organic food !”
 Cont..
 Demands-Are wants for specific products backed by an ability
to pay. Many people want a Mercedes; only a few are able to
buy one.
 Companies must measure not only how many people want their
product, but also how many would actually be willing and able
to buy it.
 Consumers view products as bundles of benefits and choose
products that give them the best bundle for their money. Thus, a
Toyota Yaris gives basic safe and reliable transport, low price
and fuel economy. A Jaguar gives sportiness, comfort, luxury
and status. Given their wants and resources, people demand
products with the benefits that add up to the most satisfaction.
What does product Mean ?
 Cont..
 Products: - any things that can be offered to a market for
attention, acquisition, use or consumption that may satisfy
human wants or needs.
 It includes physical objects, services, person, place,
organization and ideas. We can use terms for products, such as
offerings or solutions.
 Products can be:
 Tangible goods, such as all physical objects,
 Intangible services, such as professional services, maintenance,
place, organization, ideas, person, financial and all personal
services.
Value and Satisfaction
 Value: - the buyers choose between different offerings
based on which she perceives to deliver the most value:
 Value reflects the sum of the perceived tangible and
intangible benefits & costs to customers.
 its primarily a combination of quality, service,, &
price, called the “customer value triad”
 Value increases with quality & services, and
decreases with price.
 Marketing is identification, creation, communication,
delivery and monitoring of customer value .
 Cont..
 Satisfaction reflects a person’s feelings of pleasure, or
disappointment resulting from comparing a product’
perceived performance in relation to expectation.
 if the performance falls short of the expectations, the
customer is dissatisfied and disappointed.
 if it matches expectations, the customer is satisfied.
 if it exceeds them, the customer is delighted.
 Marketing channel
 Marketing channel is a system which ensures the
distribution of the product from the producer to the
consumers by passing it through multiple levels known as
middlemen.
 It is also known as channels of distribution.
 Every product is different from one another and so are
their channels of distribution.
 Marketing channel: - to effectively serve target market,
there are three kinds of marketing channels.
 One, communication channels send and receive
massage to and from target buyers and includes
newspapers, TV, radio and others.
 Two distribution channels serve to display, sell, or
delivery the physical product or service to the buyer or
user. They include distributors, wholesalers, retailers &
agents.
 Three service channels serve to carry out transactions
with prospect like warehouse, banks, insurance and
others supply chain.
 Marketing environment
 The marketing environment comprises
 Task environments: - immediate actors like suppliers,
distributers, research agencies, etc, which facilitate the
accomplishment of objectives.
 Broad environments: - consists of demographic
environment, economic, natural, technology, political, legal
and socio-cultural environment upon which the management
does not have a direct control.
 Marketing programs
 Itis a set of marketing decisions that can be implemented in
different situation, like
 price (how much to sell), the nature and attribute
 product (what to sell), market policy (where to sell),
 promotion (how to make it known in the marker).
 Company philosophy toward marketing management
 To make a firm lucrative, marketing managers dictate
different philosophy and formulate and overemphasize
upon different principles.
 Some principles have been so effective in the past and
others are best at these dates in handling the customer.
 The principles customize companies’ operation in light of
their philosophy toward marketing. Some of the
philosophies are:
 The production concept: - the philosophy that consumer will favor
products that are available and highly affordable and that management
should therefore focus on improving production and distribution efficiency.
 The product concept: - the idea that consumers will favor products that
offer the most quality, performance, and feature and that the organization
should therefore devote its energy to making continuous product
improvements.
 The selling concept: - the idea that consumers will not buy enough of the
organization’s products unless the organization undertakes a large scale of
selling and promotion effort.
 The marketing concept: - the marketing management philosophy that
holds that achieving organizational goals depends on determining the needs
and wants of target markets and delivering the desired satisfactions more
effectively and efficiently.
 The societal marketing concept: - when the firm s offer environmental
friendly products and market them keeping the welfare in mind, then the
management team is considered as proponent of societal marketing.
 Customer development process
 It is the process of attracting and keeping customers.
 It begins with everyone who might conceivably buy the product
or service of an organization and they are the suspects.
 From the suspects the company determines the prospects- those
who seem to show interest in the products.
 The prospects are then converted into first-time customers and
 Then into repeat customers when customers are satisfied with
their buy.
 Repeat buyers become clients who are given preferential
treatment by giving them hampers on occasions.
 The next thing to do is to turn the clients into members by
forming membership programmes that offer benefits to
customers who join.
 Members become advocates because they trust and relay on
the organization.
 The advocates enthusiastically recommend the company or
organization's products and services to others.
 The final thing to do is to change the advocates into partners,
who are loyal to the company, are comfortable and would stay
in the company for a very long time if not for life. Some may
become inactive or drop out. Reactivate dissatisfied
customers through win-back strategies and win back only
those customers who have strong profit potentials.