Chapter 1
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Introduction of Marketing
Sultan Said Omar
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By-
Lecture
1&2

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What is Marketing?
 Marketing is “Meeting needs Profitably.”
 Marketing is the delivery of customer
satisfaction at a profit.
 The Chartered Institute of Marketing:
 “The management process responsible for
identifying, anticipating and satisfying customer
requirements profitably."

Definition of Marketing
According to American Marketing Association,
“Marketing is an organisational function and a set of
processes for creating, communicating & delivering
value to the customers and for managing customers
relationships in way that benefit the organisation
and its stakeholders.”
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“Satisfying needs and wants
through an exchange process”
(Philip Kotler )

Marketing Defined
 Marketing is the activity, set of instructions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
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OLD view of marketing:
Making a sale—
“telling and selling”
NEW view of marketing:
Satisfying
customer needs

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Simple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information

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The Goal of Marketing is:
 To attract new customer by promising
superior value.
 Keep current customers by delivering
satisfaction.

Needs, Wants, and Demands
 NEED : A state of felt deprivation of some
basic satisfaction ( Food, Clothing, Shelter,
Belonging etc. )
 WANTS : Wants are desires for specific
satisfiers of the deeper needs. Needs are
few and wants are many .
 DEMANDS : are wants backed by ------
Ability to buy and Willingness to buy

 Need – food ( is a must )
 Want – Pizza, Burger, French fry's
(translation of a need as per our experience )
 Demand – Burger ( translation of a want as
per our willingness and ability to buy )
 Desire – Have a Burger in a five star hotel
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STATE OF DEMAND AND MARKETING TASK
1. Negative demand: Consumers dislike the
product and may even pay to avoid it.
2. Non-existent demand:Consumers may be
unaware of or uninterested in the product.
3. Latent demand:Consumers may share a strong
need that cannot be satisfied by an existing
product.
4. Declining demand:Consumers begin to buy the
product less frequently or not at all.
5. Irregular demand:Consumer purchases vary
on a seasonal, monthly, weekly, daily, or even
hourly basis.

6. Full demand: Consumers are adequately buying
all products put into the marketplace.
7. Overfull demand: More consumers would like
to buy the product than can be satisfied.
8. Unwholesome demand : Consumers may be
attracted to products that have undesirable social
consequences.
In each case, marketers must identify the
underlying cause(s) of the demand state and
determine a plan of action to shift demand to
a more desired state.

Products & Services
Product:
 Anything that can be offered to a market to satisfy a
need or want.
 The concept of product is not limited to physical
objects – anything capable of satisfying a need can
be called a product.
Services:
 In addition to tangible goods, products also include
services, which are activities or benefits offered for
sale that are essentially intangible and do not result
in the ownership of anything.
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Values
VALUE = Benefit/Costs
= Functional benefits + Emotional benefits
Monetary costs+Time costs+Energy costs+Psychic costs
 Customer value: Difference between the
benefits that the customer gains from
owning and using a product versus the
costs of obtaining the product.

Satisfaction & Quality
• Customer satisfaction: The extent to
which a product’s perceived performance in
delivering value matches a buyer’s
expectations.
• Quality: the characteristics of a product or
service that bear
on its ability to satisfy stated or implied
customer needs.
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Exchange, Transactions, and
Relationships
Exchange :
 The act of obtaining a desired object from someone by
offering something in return
Transaction :
 A trade between two parties that involves at least two
things of value, agreed – upon conditions a time of
agreement, and a place of agreement.
Relationship marketing :
 The process of creating, maintaining, and enhancing
strong, value – laden relationships with customers and
other stakeholders
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EXCHANGE AND TRANSACTION

 Exchange is the act of obtaining a desired
product by offering something in return .
Exchange takes place when 5 conditions are
satisfied:
(a) Two parties should be there
(b) Each party must have something of value to the
other
(c) Each party is capable of communication & delivery
(d) Each party is free to accept or reject the offer
(e) Each party believes that it is appropriate to deal
with the other party

EXCHANGE AND TRANSACTION
 Exchange is a process rather than event. It
is a value creating process because it
normally leaves both parties better off.
 A transaction is a trade of values between
two or more parties ( A BARTER
TRANSACTION OR A MONETARY
TRANSACTION ).

What is Marketed ? (Needs & wants are
fulfilled through a Marketing Offering):
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Ideas Services
Organisations Experiences
Places
Information Events
Properties Persons
Products

Goods
 GOODS: Physical goods constitute the
bulk of most countries’ production and
marketing efforts.
 It include like food, cars, refrigerators,
television sets, machines etc.

Goods
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Services
 Services include the work of airlines,
hotels, car rental firms, barbers and
beauticians, maintenance and repair
people, and accountants, bankers,
lawyers, engineers, doctors, software
programmers, and management
consultants.
 Many market offerings mix goods and
services, such as a fast-food meal.

Services
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Events
 EVENTS: Marketers promote time-
based events, such as major trade
shows, exhibition like TCU exhibition
,artistic performances, Launching a
new product and company
anniversaries.
 Global sporting events such as the
Olympics and the World Cup are
promoted aggressively to both
companies and fans.

Events
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Experiences
EXPERIENCES : By organizing
several services and goods, a firm
can create, stage, and market
experiences.
Also called Experiential marketing.
Example; Walt Disney World’s Magic
Kingdom allows customers to visit a
fairy kingdom, a pirate ship, or a
haunted house.

Experiences
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Persons
 Celebrity marketing. Business firm engage a famous film star
or Personality for the publicity or brand ambassador for its
product.
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Places
PLACES: Cities, states, regions, and
whole nations compete to attract
tourists, residents, factories, and
company headquarters

Places
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Properties
 Intangible rights of ownership of either real property or
financial property.
 Real property- Real estate
 Financial property- Stocks & Bonds
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Organizations
 ORGANIZATIONS :Organizations work
to build a strong, favourable, and unique
image in the minds of their target publics.
 Examples in Tanzania …
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Information
 INFORMATION :The production,
packaging, and distribution of information
are major industries.
 Information is essentially what books,
schools, and universities produce, market,
and distribute at a price to parents,
students, and communities.
 On the basis of these information students
decide in which school or college they
should take admission.

Ideas
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IDEAS : Every market offering includes a basic
idea. Charles Revson of Revlon once observed
that: “In the factory we make cosmetics; in the
drugstore we sell hope.”
Products and services are platforms for
delivering some idea or benefit.
Social marketers are busy promoting such ideas
as “Friends Don’t Let Friends Drive Drunk” and
“A Mind Is a Terrible Thing to Waste.”

Marketing Management
Philosophies
•The role that marketing plays within a
company varies according to the overall
strategy and philosophy of each firm.

•There are five alternative concepts under
which organizations conduct their
marketing activities:
•Production concept
•Product concept
•Selling concept
•Marketing concept
•Societal marketing concepts

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The production concept, one of the
oldest in business, holds that
consumers prefer products that are
widely available and inexpensive.
Managers of production-oriented
businesses should therefore concentrate
on achieving high production efficiency,
low costs, and mass distribution.
Production Concept

 This orientation makes sense in
developing countries, where
consumers are more interested in
obtaining the product than in its
features.
 It is also used when a company
wants to expand the market.

Product Concept
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The product concept proposes that
consumers favour products offering the
most quality, performance, or
innovative features.
Managers in these organizations focus
on making superior products and
improving them over time, assuming
that buyers can appraise quality and
performance.

Selling Concept
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The selling concept holds that
consumers and businesses, if left
alone, won’t buy enough of the
organization’s products.
The organization must therefore,
undertake an aggressive selling and
promotion
effort.

This concept assumes that consumers
must be coaxed into buying, so the
company has a battery of selling and
promotion tools to stimulate buying.
The selling concept is practiced most
aggressively with unsought goods,
[Goods that buyers normally do not
think of buying, such as insurance and
funeral plots.]

Marketing Concept
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The marketing concept holds that the
key to achieving organizational goals
consists of the company being more
effective than its competitors in
creating,delivering and communicating
customer value to its chosen target
markets.

Selling Vs Marketing concept

Selling Vs Marketing concept

Societal Marketing Concept
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The idea that the organization should
determine the needs, wants, and interests of
target markets and deliver the desired
satisfactions more effectively and efficiently
than competitors in a way that maintains or
improves the consumer’s and society’s
well – being.

Three Considerations Underlying
The Societal Marketing
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Societal
marketing
concept
Society
(Human welfare)
Company
(Profits)
Consumers
(Want satisfaction)

Marketing Mix
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Marketing Mix
Four Cs of Marketing
 Customer solution (Product)
 Customer cost (Price)
 Convenience (Placement)
 Communication (Promotion)
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