Principles of marketing: Lecture 1

Principles of marketing: Lecture 1 provide students with knowledge about: introduction - an overview of marketing; road map; the AMA managerial definition; simple marketing system; organization’s strengths and weaknesses; organization’s overall objectives;... Please refer to this lesson for details!

MGT301 Principles of Marketing

Lecture­1

 Introduction­an overview of marketing

 Road map 

Today’s Topics

Introduction of Marketing 

What is Marketing, anyway?

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 Marketing:  The process of 

creating consumer value in the  form of goods, services, or ideas  that can improve the consumer’s  life.

 More than selling and advertising

 Identifying and satisfying customers needs

 Range of activities (marketing mix ­ 4P’s)

Learning to make what you can sell vs. selling what 

you can make.

Identifying and satisfying customer needs and wants.

 Goal of all organizations is to 

gain and retain customers

 Innovation and marketing are the only two ways to  achieve the goal

 “The rest only adds cost”

 The AMA managerial definition:

  “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.”

 Marketing Involves having the Right Product available in  the Right Place at the Right Time and making sure that the  customer is Aware of the Product.

Marketing

Product Price

Customers

Producer/Seller Consumer

Communication Product/Service

Money

Feedback

 It assumes that it will proceed in accordance with  ethical practices.

 Identifies the 4 marketing variables ­ product, price,  promotion, and distribution.

 States that the public, the customer, and the client  determine the marketing program.

 Emphasizes creating and maintaining relationships.

 Finally applies for both non­profit organizations and  profit­oriented businesses.

Customer?

 Identifying customer needs

 Designing goods and services that meet those needs

 Communicating information about those goods and  services to prospective buyers

 Making the goods or services available at times and  places that meet customers’ needs

 Pricing goods and services to reflect costs, 

competition, and customers’ ability to buy

 Providing for the necessary service and follow­up to  ensure customer satisfaction after the purchase

How is Marketing Done?

Organization’s Overall Objectives

Opportunities and Threats to the

Organization in the Marketplace

Opportunities and Threats to the

Organization in the Marketplace

 If we want to know what a business is, we have to start  with its purpose.  And its purpose must lie outside the  business itself.  In fact, it must lie in society since a 

business enterprise is an organ of society.  There is one  valid definition of business purpose:  to create a 

customer.

Reasons for Studying Marketing 

         Costs About 50% of total product 

marketing positions.

Contributions to Society Marketing decisions affect  the lives of individual consumers and society as

a whole

Why Study Marketing ?

Marketing is Everywhere in Your Life

What do Marketers Think About?

 How will I promote my product?

 How can I insure customer loyalty?

getting the right products to the right people at the right 

price and at the right place and time with the right 

promotion 

Marketing is a social and managerial process by which  individuals and groups obtain what they need and want  through creating, offering and exchanging products of 

value with others.

Kotler 1994

 Process by which individuals and groups obtain what  they need and want through creating and exchanging  products and value with others.

 Marketing is the delivery of customer 

satisfaction at a profit.

 Who are our customers?

 What important & unique benefits do we provide?

 Are these benefits sustainable?

 Principles of Marketing by Philip Kotler and Gary  Armstrong 

 Fundamentals of Marketing by Stanton, Etzel and  Walker

 Marketing by Joel R. Evans and Barry Berman

Summary

Producer/Seller Consumer

CommunicationProduct/ServiceMoney

Feedback

 Understanding Marketing and Marketing Process

 Core Marketing Concepts

MGT301 Principles of Marketing

Lecture­1