Chapter 1
Overview of
Marketing
Saurabh Rawal
BU352 Fall 2022
Chapter 1: Overview of Marketing
A G E N DA
 What is marketing?
 What are the core concepts in marketing?
 How has our understanding of marketing evolved?
• Four orientations of marketing
 What is the importance of marketing?
 How can marketing help your career?
DEFINITION OF MARKETING
Marketing is a set of business practices
designed to plan for and present an
organization’s products or services in
ways that build effective customer
relationships.
CORE ASPECTS OF MARKETING
SATISFYING CUSTOMER NEEDS & WANTS
• A Need is one of the basic necessities of life.
– Physical
• Food, clothing, shelter
– Social
• Belonging (need to belong)
– Individual
• Knowledge, self-expression
• A Want is how a need is fulfilled. E.g., While I need food, I want
an energy bar
– Influenced by culture, personality, or knowledge.
– Can you give me an example?
Need
for
food
Want
for
KFC
$$$
Demand
for
KFC
A DEMAND is seen by
consumer ability and
willingness to fulfill
their needs and wants.
Understanding the needs, wants, and demands of consumers is one of the
starting points of becoming a good marketer or building a successful
business.
SATISFYING CUSTOMER
NEEDS & WANTS
 Successful marketers/businesses can
clearly identify consumer needs and
wants (CNW) they are serving.
 More clarity of CNW = More likely to
tailor products/services to satisfy those
CNW
 Companies can have seemingly the
same product but still serve different
needs and wants
MARKETING ENTAILS AN
EXCHANGE
Exchange  Trading of things of value
between the buyer & the seller
SELLER
BUYER
WHAT IS THE
EXCHANGE MODEL
FOR THESE
ORGANIZATIONS?
MODEL OF EXCHANGE
Exchange  Transactional model (old and outdated thinking)
Exchange 2.0 
Relational model
MARKETING REQUIRES MARKETING MIX
DECISIONS
PRODUCT: CREATING VALUE
Goods
Services
Ideas
PROMOTION OF IDEAS CREATES VALUE
Ideas include thoughts, opinions,
philosophies, and intellectual
concepts that also can be marketed.
Value is created when the idea is
put to use by the recipient.
PRICE: TRANSACTING VALUE
money
Price is everything the
buyer gives up in
exchange for the
product.
time
energy
PLACE: DELIVERING VALUE
All activities necessary to get the product to the right customer when that customer
wants it.
Supply chain management is the field that examines these activities.
Can you tell me how the following products are delivered to consumers?
PROMOTION: COMMUNICATING VALUE
• The communication activities of marketing
• Used to inform, persuade, and remind potential buyers
• Used to influence their opinions or elicit a response
SOCIAL MEDIA &
MARKETING
The use of digital tools to easily & quickly
create & share content to foster
dialogue, social relationships & personal
identities.
MARKETING CAN BE PERFORMED BY BOTH
INDIVIDUALS & ORGANIZATIONS
B2B: Wholesaling is often only
Business to Business
B2C: All retailing is Business to
Consumer selling
C2C: Swap Meets, EBay,
yard sales, etc.
MARKETING IMPACTS MANY
STAKEHOLDERS

Both profit and non-profit entities

Developing economies

Entire industries
THE FOUR ORIENTATIONS OF MARKETING –
EVOLUTION OF THE CONCEPT
Marketing yesterday vs. Marketing today
Mother discipline of marketing  Economics
Product Orientation
Sales Orientation
Market Orientation
Value-based Orientation
PRODUCT ORIENTATION
 Product-oriented companies focus on developing and distributing innovative
products with little concern about whether the products best satisfy customers’
needs and wants.
 Company goal  continuously improving their product/s
 Consumers are continuously newer and better products  may not necessarily
translate to consumer satisfaction
SALES ORIENTATION
 Marketing = selling function; companies try to sell as many of their products as
possible rather than focus on making products consumers really want.
 Company goal  aggressive sales training/tactics followed by actual sales
 Typically practiced with products that consumers generally do not consider
buying. E.g., insurance selling, investment banking, etc.
MARKET
ORIENTATION
Market-oriented companies start out
by focusing on what consumers want
and need before they design, make,
or attempt to sell their products and
services.
Company goal  Need/want
fulfillment
VALUE-BASED ORIENTATION
To compete successfully, firms focus on the triple bottom line:
• People (consumer needs & wants)
• Profits (long-term profitable relationships)
• Planet (social and environmental responsibility)
Value (and its perception) is the most important basis for marketing in today’s
date. But what is value?
HOW DO FIRMS BECOME MORE
VALUE DRIVEN?
Firms focus on four activities:
•
•
•
•
Gathering and sharing
Sharing information
information
Balance customer’s benefits & costs
 Balancing benefits with costs
Build relationships with customers
 Building customer relationships
Use technology to connect with customers
 Connecting with customers via
social media

WHY IS
MARKETING
IMPORTANT?
THANK YOU
Questions or comments