Introduction to
Marketing
Market Oriented Approach
What is Marketing?
• Is the process of planning and
executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create
exchanges that satisfy individual and
organizational objectives to serve both
buyers and sellers.
Needs
Eat, Dress, Move
Wants
Cheeseburger, Tuxedo, Car
Marketer
Needs & Wants
A need occurs when a person feels physiologically
deprived of basic necessities such as food,
clothing, and shelter.
A want is a felt need that is shaped by a person’s
knowledge, culture, and personality.
What are the legal, ethical, and moral.
implications of satisfying wants and needs?
Factors that influence
marketing activities
• Organization itself (mission and goals)
• Customers
• Suppliers
• Shareholders
• Competitors
• Environmental forces
• Society
Summary of factors that affect an organization’s marketing
program
Marketing
program
Consumer
Technological forces
Environmental forces
Requirements for Marketing to Occur
For marketing to occur, at least 4 factors are
required:
1.
Two or more parties (individuals or
organizations) with unsatisfied needs,
2.
a desire and ability on their part to be satisfied,
3.
a way for the parties to communicate, and
4.
something to exchange.
First Task: Detect Needs
Marketing’s first task: discovering consumer
needs
Organization’s
marketing department
Discover consumer needs
Information about needs
Potential consumers: The market
What is a Market?
Potential consumers make up a market,
which is:
1.People
2.with the Desire and
3.with the Ability to Buy a
specific product.
Marketing’s Second Task: Satisfying Consumer
Needs
Organization’s marketing department
Concepts
for
products
Discover consumer needs
Information about needs
Satisfy consumer needs
Find the right combination of:
• Product
• Price
• Promotion
• Place
Goods, services, ideas
Potential consumers: The market
The Target Market
Because the organization
obviously can’t satisfy all
consumer needs, it must
concentrate its efforts on
certain needs of a specific
group of potential consumers. This is the
target market -- one or more specific groups
of potential consumers toward which an
organization directs its marketing program.
The Four Ps: Controllable
Marketing Mix Factors
Product
Price
Promotion
Place
Building Customer
Relationships
Customer value is. . . .
the unique combination of benefits
received by target buyers that
includes
quality
price
convenience
on-time delivery
before & after-sale
service
Relationship Marketing
Relationship marketing is linking the organization to
its individual customers, employees, suppliers,
and other partners for their mutual long-term
benefits.
Mutual long-term benefits between the organization
and its customers require links to other vital
stakeholders-- including suppliers, employees,
and “partners” such as wholesalers or retailers in
a manufacturer’s channel of distribution.
A marketing program is. . .
a plan that integrates the
marketing mix to provide a
good, service, or idea to
prospective buyers.
How Marketing became so
important?
Four different orientations in the history of North
American business
Production era
Sales era
Marketing concept era
Market orientation era
18601880 190019201940 196019802000
Definition of Market Orientation
An organization that has a market orientation
focuses its efforts on . . . .
(1) Continuously collecting information about
customers’ needs and competitors’ capabilities,
(2) sharing this information across departments,
and
(3) using the information to create customer value.
Old Marketing Context
Ethics & Social Responsibility
• Ethics
• Social responsibility. Decisions should consider
the well-being of society as a whole.
• Societal marketing concept. An organization
should satisfy customers’ needs while providing
for society’s well-being.
• Macromarketing
• Micromarketing
The Breadth & Depth of Marketing
Marketing affects every person and organization
Who markets?
What do they market?
Who buys and uses what is marketed?
Who benefits from these marketing activities?
How do they benefit?
Who buys and uses what is
marketed?
Ultimate Consumers
Organizational Buyers
(B to B)
How Do Consumers Benefit?
Utility
Examples of Marketing Actions
that Create Utility
Form
Product design, packaging
Place
Distribution, store location
Time
Inventory management, warehouses,
delivery
Possession Transactions, transfer of ownership