INTRODUCTION TO MARKETING
Session Objectives
To gain a practical and basic understanding
of:
1. Definition of
- marketing
- marketing concept
2. Processes to use the marketing concept
QUESTION…
I will flash some pictures.
Would you say marketing is
happening in these scenes?
Definitions of marketing
‘The right product, in the
right place, at the right
time, and at the right
price’
- (Dennis Adcock et al, Marketing
Teacher Ltd 2000 - 2009 )
Definitions of marketing
‘Marketing is the human
activity directed at
satisfying human needs and
wants through an exchange
process’
- (Philip Kotler 1980, Marketing
Teacher Ltd 2000 - 2009 )
Definitions of marketing
‘Marketing is the management
process that identifies,
anticipates and satisfies
customer requirements
profitably’
- The Chartered Institute of Marketing (CIM). - Marketing
Teacher Ltd 2000 - 2009
Definitions of marketing
‘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’
- Philip Kotler 1991
Definitions of marketing
"Marketing is the activity, set of
institutions, and processes for
creating, communicating,
delivering, and exchanging
offerings that have value for
customers, clients, partners,
and society at large."
- ( Marketing Teacher Ltd 2000 - 2009
)
Marketing Illustrated
Marketing
CONSUMER /
BUYER
PROVIDER/
SELLER
Better than
Before
SALES
CUSTOMER
Better than
Expected
PROFIT
COMPANY
3 Cs of
Marketing
Better than
Others
MARKET SHARE
COMPETITORS
Josiah Go, Chapter 1, “Fundamentals of Marketing in the Philippine Setting”, May 2001 -
Implications of marketing



Who are our existing / potential
customers?
What are their current / future needs?
How can we satisfy these needs?





Can we offer a product/ service that the
customer would value?
Can we communicate with our customers?
Can we deliver a competitive product of
service?
Why should customers buy from us?
What do we get out of satisfying customer
needs?
CONSUMERS CONSIDERATIONS



Needs – basic reason or minimum
requirement consumer looks for in a
product/service – qualifying
/gatekeeping dimension
Wants – determining dimension
Expectations – values or
intangibles associated with a
product – tie-breaker dimension
Josiah Go, Chapter 1, “Fundamentals of Marketing in the Philippine Setting”, May 2001 -
Definition of Marketing based on 3Cs
Marketing is the process of
continuously and profitably
satisfying the target customer’s
needs, wants and expectations
superior to competition
–
(Josiah Go, Fundamentals of Marketing in the
Philippine Setting, May 2001)
MARKET RESPONSE T0
CONSUMER CONSIDERATIONS
o


Features - basic product attributes
Advantages –what that feature does, and
how it helps. These are factual and
descriptive but do not yet make a
connection as to how it will make users' life
better.
Benefits – the reasons that would address
the wants and needs – “what’s in it for
me?” A benefit is the result of the
advantage, and it is why a prospect would
ultimately use a product.
Definitions of marketing concept
The marketing concept is a
philosophy. It makes the customer,
and the satisfaction of his or her
needs, the focal point of all business
activities. It is driven by a passion
for delighting customers.
The marketing concept
 choosing
and targeting
appropriate customers
 positioning your offering
 interacting with those
customers
 controlling the marketing effort
 continuity of performance
WHAT DO YOU THINK
ARE PROCESSES
INVOLVED IN
IMPLEMENTING THE
MARKETING CONCEPT?
THREE LEVELS OF MARKETING
ACTIVITES
3 Levels
1.
Strategic
Marketing
Management
2.
Marketing
Strategy
3.
Marketing Tactics
Focus
Vision & Mission/
Industry &
Competition Analysis/
Key Factors for
Success/ SWOT
analysis
Market Segmentation /
Target Market/
Positioning
Marketing Mix
Definitions of Focus Elements
1.
2.
3.
4.
Vision – explains the future and what it intends
to be – the goal/objective
Mission – answers “What is our business?”
based on the consumers needs and wants
Key Factors for Success – identifies a few critical
functions, activities, factors or bottlenecks to be
managed to beat competition.
SWOT –
a. Strengths & Weaknesses – internal positive and
negative factors to meet KFS
b. Opportunities & Threats – external positive and
negative factors to meet KFS
Marketing management process






Analysis/Audit - where are we now?
Objectives - where do we want to
be?
Strategies - which way is best?
Tactics - how do we get there?
Implementation - Getting there
Control - Ensuring arrival
Using the marketing concept

Determine the needs of their customers
(Market Research);

Analyze their competitive advantages
(Market Strategy);

Select specific markets to serve (Target
Marketing), and;

Determine how to satisfy those needs
(Market Mix).
Market Research
In order to manage the marketing function
successfully, good information about the market
is necessary.
The tools are varied:
 Observations
 Survey
 Focus Group Discussion
The idea is to probe present customers and/or
prospective customers to surface needs, wants,
problems, areas of dissatisfaction that can be
remedied, or new products or services that could
be offered successfully.
Market Strategy
Marketing strategy encompasses identifying
customer groups (Target Markets), which a
business can serve better than its competitors,
and tailoring its product offerings, prices,
distribution, promotional efforts and services
towards that particular market segment
(Managing the Market Mix).
A good strategy implies that a business cannot be
all things to all people and must analyze its
markets and its own capabilities so as to focus on
a target market it can serve best.
Target Marketing
Given limited resources to spend on marketing
activities, sellers will concentrate their marketing
efforts on one or a few key market segments is the
basis of target marketing. The major ways to
segment a market are:
Geographical segmentation - developing a loyal
group of consumers in the home geographical
territory before expanding into new territories.

Product segmentation - extensively promoting
existing best-selling products and services before
introducing a lot of new products.

Customer segmentation - identifying and promoting
to those groups of people most likely to buy the
product. In other words, selling to heavy users before
trying to develop new users

Marketing Mix
There are four basic key marketing decision areas in a
marketing program. They are:
1.Product
2.Price
3.Place
4.Promotion
The marketing mix (4Ps) is used to describe how
owner-managers combine these four areas into an
overall marketing program.
PRODUCT
A tangible object or an intangible service
that is produced or manufactured to
satisfy a customer’s needs or wants.



Product Design / Development /
Packaging
Product differentiation/ variation
Product Life Cycle
PRICING
The price is the amount a customer pays for the
product. It is determined by a number of factors
including market share, competition, material
costs, product identity and the customer's
perceived value of the product. The business may
increase or decrease the price of product if other
stores have the same product.

Pricing Strategies – cost recovery,
economic pricing, penetration
pricing, etc.
PLACE
Place represents the location where a
product can be purchased. It is often
referred to as the distribution channel. It
can include any physical store as well as
virtual stores on the Internet.


Distribution Strategy
Distribution Channel - Convenience /
Accessibility
PROMOTION
Promotion represents all of the communications
that a marketer may use in the marketplace.
Promotion has four distinct elements advertising, public relations, word of mouth and
point of sale.



Individual Communication
Mass Communications
Brand Image
SUMMARY FOR THIS SESSION
We discussed the following:
1. Definition of
- marketing – there are various but we summarized it
using the 3Cs model
- marketing concept – Marketing focuses on the satisfaction
of customer needs, wants and requirements.
2. Processes to use the marketing concept –
- three levels of marketing activities
- AOSTIC
- Market Research, Market Strategy, Target Market,
Marketing Mix
GEMS OF WISDOM ABOUT
MARKETING
 Marketing
takes day to learn.
Unfortunately it takes a lifetime
to master (Philip Kotler, 1961 -,
US marketing guru)
 You
can have brilliant ideas, but
if you can not get them across,
your ideas will not get you
anywhere (Lee Iacocca)