Introduction to Marketing

Introduction to Marketing
 The process by which companies create value for customers and
build strong customer relationships in order to capture value
from customers in return. Kotler and Armstrong (2010).
 Marketing is the management process for identifying,
anticipating and satisfying customer requirements profitably. The
Chartered Institute of Marketing (CIM).
The twofold goal
Attract new customers by
promising superior value
Keep and grow current
customers by delivering
All ways low prices
The Marketing Process
Capture values from
customers in return
Create value for customers and build customer
the market
place &
needs and
Design a
Construct an
that delivers
superior value
and create
Capture value
customers to
create profits
and customer
Marketing Concept
Marketing is not only much broader than selling, it is not a
specialized activity at all. It encompasses the entire business.
It is the whole business seen from the point of view of the
final result, that is, from the customer's point of view.
Concern and responsibility for marketing must therefore
permeate all areas of the enterprise. Drucker (1955, 2007).
 Production orientation- focus was on the science of
 Product orientation- focus on the quality and desirability of a
certain product
 Sales orientation- products sold based upon features rather than
the benefits to the individual customer and his or her needs
 Market orientation- needs and wants are satisfied through the
delivery of value to satisfied customers
Marketing Mix
The extended Marketing Mix
Marketing Mix for Burger King
 Product
 As a fast food hamburger restaurant chain, BK produces, hamburgers,
cheeseburgers as well as Fries, Salads, Hash browns, Coffee, Juice, Shakes,
cookies and pies.
 Offering a retail line of microwaveable Burger King Brand French fries at select
retailers in the United States
 Starbucks Corp.'s Seattle's Best Coffee to all its U.S. restaurants
 Price
 The Price that is charges for the products on offer
 $1 double cheese burger
 Slushy drinks for $1
 The Premium Burger at a higher price
 Place
 Burger King operates its business via franchises, under a franchise
arrangement, the franchisees invest in the equipment, signage, and
decor, while the company owns/leases the land and building
 Promotion
 Driving sales through Facebook
 The BK Crown Card
 BK eGift card
 ATL campaigns
 YouTube Videos
Get a tasty new look
Gift Card
Facebook Campaign
The New Marketing Landscape
The Digital Age
 The rise of the Internet
 New communication and advertising tools (Cellphones,
ipods, interactive TV, etc..)
Bricks-and-mortar to click-and mortar
The pace/speed of innovation
Better segmentation
More focused communications
Rapid Globalization
 Global competition
 International supply chain
 Irrelevance of country of origin concept
E.g: Coke offers more than 400 Brands in 200 countries
Product range
Ethics & Social responsibility
 Marketers to take greater responsibility for social &
environmental impact
Increase in consumer out cries and legal issues
Companies may react to this in different ways
Some take a pro-active approach
E.g: Patagonia- Pledging 1% of sales or 10% of profits, which
ever is higher, to the protection of the natural environment
Growth of Not-for-profit marketing
 This includes colleges, hospitals, museums, zoos, etc…
 Colleges compete for students and funds
 NFP’s-YMCA, The Salvation Army, etc.. Compete for membership
 Government agencies- branches of the US military, US postal service
 Start by identifying the product or service that you want to
 Now go through and answer the 4Ps questions – as defined in
detail above
 What does the customer want from the product/service? What needs does it
What features does it have to meet these needs?
 Are there any features you've missed out?
 Are you including costly features that the customer won't actually use?
How and where will the customer use it?
What does it look like? How will customers experience it?
What size(s), color(s), and so on, should it be?
What is it to be called?
How is it branded?
How is it differentiated versus your competitors?
What is the most it can cost to provide, and still be sold sufficiently profitably?
(See also Price, below).
 Where do buyers look for your product or service?
 If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or
online? Or direct, via a catalogue?
 How can you access the right distribution channels?
 Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or
send samples to catalogue companies?
 What do you competitors do, and how can you learn from that and/or differentiate?
 What is the value of the product or service to the buyer?
 Are there established price points for products or services in this area?
 Is the customer price sensitive? Will a small decrease in price gain you extra market
share? Or will a small increase be indiscernible, and so gain you extra profit margin?
 What discounts should be offered to trade customers, or to other specific segments of
your market?
 How will your price compare with your competitor
 Where and when can you get across your marketing messages to your
target market?
 Will you reach your audience by advertising in the press, or on TV, or
radio, or on billboards? By using direct marketing mailshot? Through
PR? On the Internet?
 When is the best time to promote? Is there seasonality in the market?
Are there any wider environmental issues that suggest or dictate the
timing of your market launch, or the timing of subsequent promotions?
 How do your competitors do their promotions? And how does that
influence your choice of promotional activity?