Mashal Institute of Higher Education
Principles of Marketing
Source person: Kamran Khan
M.Com, B.Com…
Lecturer at Mashal Institute of Higher Education
Mashal institute of Higher Education, Shar-e-new Park, Kabul
Principles of Marketing
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Chapter No. 01
Introduction to Marketing
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
Page_3
CHAPTER N O.01 INTRODUCTION TO MARKETING
Topic-1 Introduction of Marketing
What image comes to mind when you hear the word “marketing”? Some people think of
advertisements or brochures, while others think of public relations (for instance, arranging for
clients to appear on TV talk shows). The truth is, all of these—and many more things—make up
the field of marketing. The Knowledge Exchange Business Encyclopedia defines marketing as
“planning and executing the strategy involved in moving a good or service from producer to
consumer.”
Definitions of marketing
Marketing has several definitions. Some of them are as under:
According to Encyclopedia
Marketing is the action of identifying, satisfying and increasing the buyer’s demands for
company’s products.
According to William J. Stanton
Marketing is the total system of business activities designed to plan, price, promote and
distribute wants satisfying products, services and ideas to target market in order to achieve the
organizational objectives.
This definition has two important points.
a. Focus: The entire system of business activities should be customer-oriented. Customers’
wants must be recognized and satisfied.
b. Duration: Marketing should start with an idea about a want–satisfying product and
should not end until the customers’ wants are completely satisfied, which may be some
time after the exchange is made.
According to Philip kotler
Marketing is a social and managerial process, by which individuals and groups obtain what they
need and want through creating and exchanging value with others.
Marketing is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return.
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
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Topic-2 The Scope of marketing
Scope of marketing means what we can market or what we can offer. The scope of marketing is
as under:
1. Goods
These are commodities, we can market them. For example, Pepsi, Coca-Cola, Dew, Shoes such
as Service, Bata, Aero soft etc, ice cream, Cloth, buildings and cars etc.
2. Services
Some people also market their services such as doctors, lawyer, engineers, mobile companies
such as Etisalat, Afghan wirless communication company, Banks such Azizi bank, Kabul bank,
Bakhtar bank etc.
3. Experience
Just like services some famous skilful people provide their experienced skill to others. For
example Imran khan offers his experience to teach new cricketers. Shahrukh khan teaches to
new actors.
4. Events
Special occasions such as Eids, independence days, new years, summer or winter seasons,
sports events, and Olympic etc.
5. Person
The people who are famous, they market their popularity. For example Shahruk khan shahruk
khan is a famous actor who comes in various ads and markets his popularity.
6. Places
Places can be marketed. Such as Menari Pakistan, people (tourists), qilla bala hisar, shalamar
bag. People come from far away for recreation purpose.
7. Properties
Marketing of houses and buildings is called as property marketing.
8. Organizations
Marketing of hospitals, museums, zoos, parks etc is called organizations marketing.
9. Information
Organization who sells information for a fee is called information marketing. For example,
consultants of education, consultants of law etc.
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
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10. Ideas
Now a day you can sell even your ideas for example business consultants, tax consultants
sell their ideas on a fee.
Topic-3the Difference between Selling and Marketing
 Selling
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In the selling process the organization mainly force or emphasize on product.
The company first makes the product then finds out how to sell their product or provide
their product to the potential customer.
Planning is a short run oriented in terms of today’s.
The concept of selling is short term, their main aim is just sale and to make the market
share.
 Marketing
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In the marketing process the organization mainly force or emphasize on consumer’s
wants.
The company first determine the customer’s needs and wants and then deliver them
the product and sees either the customer is satisfied or not.
The concept of marketing is to establish a long term relationship with a customer and
make the customer loyal of your product.
Company tries to earn profitable sale from the loyal customer.
Topic-4the Difference between market and Marketer
 Market
Market is a place where people or organization with a need to satisfy, money to spend and
willingness to spend on product and service.
 Marketers
People those who are involved in the process of buying and selling are called marketers.
Topic-5the Difference between customer and consumers
 Customer
Those persons who are involved in the purchasing process are called customers.
 Consumers
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
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Those individuals who are actually involved in using or consuming the product are called
consumers.
Core marketing concepts
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
Page_7
Topic-6 the Core concepts of Marketing
a. Needs
Needs are state of felt deprivation. Needs may b
1) Physical needs: for food, clothing, warmth, and safety.
2) Social needs: for belonging and affection.
3) Individual needs: for knowledge and self-expression.
These needs are not created by marketers; they are a basic part of the human makeup.
b. Wants
Wants are the form human needs take as they are shaped by culture and individual personality.
For example a Patan needs food but wants a bowl of rice and fish. A person in Peshawar,
Pakistan, needs food but wants chapli kababs, karahi and Afghan nan. Wants are shaped by
one’s society and are described in terms of objects that will satisfy needs.
c. Demands
Wants when backed by buying power, become demands. Or when we have money or the
power to purchase the thing which is our want is called demands.
d. Product
Anything that can be offered to a market for attention of customers is known as product.
Product may be:
a. Tangible: items that we can touch and physically exist such as shoes, clothes, soaps, oils,
furniture, motor cars etc.
b. Non tangible: items that we cannot touch and not physically existed such as services.
e. Marketing offerings
Some combination of products, services, information, or experiences offered to a market to
satisfy a need or want. Marketing offerings are not limited to physical products.
They also include services, activities or benefits offered for sale. For example marketing also
involves the marketing of ideas such as awareness about AIDS, and Polio.
f. Marketing myopia
The mistake of paying more attention to the specific products than to the benefits and
experiences produced by these products is called marketing myopia. The seller focuses only on
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
Page_8
existing want and loses sight of underlying customer needs. They forget that a product is only a
tool to solve a customer problem.
For example, your personal computer is your backup brain, it’s your life… it’s your astonishing
strategy, dazzling calculation. It’s your autobiography, written in thousands of daily word.
g. Customer Value and Satisfaction
Customers face a large number of marketing offers that satisfy a given need. How do they
choose among these many market offerings? Customers form expectation about the value and
satisfaction that various market offerings will deliver and buy accordingly. Satisfied customers
buy again and tell others about their good experiences. Dissatisfied customers switch to
competitors and disparage the product to others.
Marketers must be careful to set the right level of expectations. Low expectation will not
attract enough buyers and high will disappoint buyers if the expectation was not according to
their expectation of value and satisfaction.
h. Exchange and Relationship
Marketing occurs when people decide to satisfy needs and wants through exchange
relationship. Exchange is the act of obtaining a desired object from someone by offering
something in return. Marketers try to bring about a response to some market offering. The
response may be more than simply buying or trading products and service but the long-term
relationships.
Topic-7 the Evolution of Marketing or Marketing philosophies
There are several alternative philosophies that can guide organizations in their efforts to carry
out their marketing goal(s). Marketing efforts should be guided by a marketing philosophy.
Decisions about the weight, given the interests of the organization, customers, and society
need to be made by marketing managers. There are five alternative concepts under which
organizations conduct their marketing activities.
a. The Production Concept
The production concept holds that consumers will favor products that are available and highly
affordable and that management should, therefore, focus on improving production and
distribution efficiency. This is one of the oldest philosophies that guide sellers. The production
Concept is useful when:
1). Demand for a product exceeds the supply.
2). the product’s cost is too high and improved productivity is needed to bring it down.
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
Page_9
The risk with this concept is in focusing too narrowly company operations. The production
Concept holds that consumers will favor products that are affordable and available, and
therefore management’s major task is to improve production and distribution efficiency and
bring down prices.
b. The Product Concept
The product concept holds that consumers favor quality products that are reasonably priced,
and therefore little promotional effort is required. The product concept states that consumers
will favor products that offer the most quality, performance, and features, and that the
organization should, therefore, devote its energy to making continuous product improvements.
c. The Selling Concept
Many organizations follow the selling concept. The selling concept is the idea that consumers
will not buy enough of the organization’s products unless the organization undertakes a largescale selling and promotion effort.
1). This concept is typically practiced with unsought goods (those that buyers do not normally
Do not know about these products or do no think of buying them e.g. insurance policies).
3). Industries that use this concept usually have overcapacity. Their aim is to sell what they
make rather than make what will sell in the market.
4). There are not only high risks with this approach but low satisfaction by customers.
d. The Marketing Concept
The marketing concept holds that achieving organizational goals depends on determining the
needs and wants of target markets and delivering the desired satisfactions more effectively and
efficiently than competitors do. The marketing and selling concepts are often confused.
e. The Societal Marketing Concept
The societal marketing concept holds that the organization should determine the needs, wants,
and interests of target markets. It should then deliver the desired satisfactions more effectively
and efficiently than competitors in a way that maintains or improves the consumer’s and the
society’s well being.
What era are we in now?
We are still essentially in the marketing era, since that is the dominant concept, but increasing
pressure is being put on to companies to adopt the societal concept.
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
Page_10
Topic-8 Marketing Mix | 4 P’s of Marketing
Marketers use different tools in order to get the desired response from the customers or best
satisfy their needs. These tools are known as The Marketing Mix. Marketing Mix is probably the
most famous term in marketing.
Marketing Mix
The marketing mix consists of everything the firm can do to influence the demand for its
product. The many possibilities gather into four groups of variables known as the 'four Ps';
product, price, place and promotion.
Product
Anything that can be offered to a market for attention, acquisition, use or consumption, that
might satisfy a want or need is called product. It includes physical objects, persons, places,
organizations and ideas. Product may be tangible (goods) or intangible (services).
Price
Price includes the pricing strategy of the company for its products. How much customer should
pay for a product?
Place (Placement)
Place not only includes the place where the product is placed, all those activities performed by
the company to ensure the availability of the product to the targeted customers. Availability of
the product at the right place, at the right time and in the right quantity is crucial in placement
decisions.
Promotion
Promotion includes all communication and selling activities to persuade future prospects to
buy the product. Promotion decisions include.
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education
Principles of Marketing
Page_11
Marketing Mix Actual example
Azizi Bank
Product...
Current Accounts, Saving Accounts, Fixed Accounts, Letter of Credit, Western Union, ATM
Services.
Price.....
Value Pricing.
Promotion...
Various media and methods, a commercial that appeared on the Television, on Radio, Bill
Boards all are the promotional medias.
Distribution...
Azizi Bank has increased its branches to all over Afghanistan including:
Andkhoi, Badakhsan, Farah, Heart, Khost, Kunar, Mazar, Nimroz, Logar, Parwan, Kabul etc.
Lecturer: Mr. Kamran Khan
M.Com, B.Com, D.Com…
MIHE
Mashal Institute of Higher Education