MGT301
Principles of Marketing
Lecture-1
Today’s Topics
Introduction-an overview of marketing
Road map
Introduction of Marketing
Music to a Marketer’s Ears
“They’re the best.”
“I always eat there.”
“I only fly with that airline.”
“I buy my electronics at that store.”
“I will prefer to go in that school.”
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Sale ns
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Public
relations What is ic e
Se r v
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Retail
anyway?
D e li ve
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Definition
Marketing: The process of creating
consumer value in the form of goods,
services, or ideas that can improve
the consumer’s life.
What is marketing ?
More than selling and advertising
Identifying and satisfying customers needs
Range of activities (marketing mix - 4P’s)
What is Marketing?
Learning to make what you can sell vs. selling what you can
make.
Identifying and satisfying customer needs and wants.
Peter Drucker
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
Place Promotion
Simple Marketing System
Communication
Product/Service
Producer/Seller Consumer
Money
Feedback
Marketing’s 4 P’s
Product
Price
Place
Promotion
Marketing’s 4 P’s (+2)
People
Product
Price
Place
Promotion
Profits
Marketing
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 non-profit organizations and profit-
oriented businesses.
Marketing Includes...
Personal selling
Advertising
Making products available in stores
Maintaining inventories
etc
What Can Be Marketed?
Goods Places
Services Properties
Experiences Organizations
Events Information
Persons Ideas
How Does an Organization Create a
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 follow-up to ensure
customer satisfaction after the purchase
How is Marketing Done?
Marketers Develop and Implement a
Marketing Plan Based on the Following
Information:
Organization’s
Organization’s Strengths
Strengths
and
and Weaknesses
Weaknesses
Opportunities
Opportunities and
and Threats
Threats to
to the
the
Organization
Organization in
in the
the Marketplace
Marketplace
Organization’s
Organization’s Overall
Overall Objectives
Objectives
Peter F. Drucker Said:
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
Careers
Costs About 25 to 33% of the work
force hold
About 50% of total product
costs are marketing costs marketing positions.
Why Study
Marketing ?
Contributions to Contributions to Society
Individual Organizations Marketing decisions affect the
Critical to the success lives of individual
of a firm consumers and society as
a whole
Why Study Marketing?
Plays an important role in society
Vital to business
Offers outstanding career opportunities
Affects your life every day
Marketing is Everywhere in Your Life
What do Marketers Think About?
Ex: Open a Book shop On Campus
Is there a need?
Who is my target market?
What is my product?
How can I produce and deliver a “product” better than my
competitors?
How will I promote my product?
How can I insure customer loyalty?
Marketing is....
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.
More simply:
Marketing is the delivery of customer
satisfaction at a profit.
Simple Questions, Hard Answers
Who are our customers?
What important & unique benefits do we provide?
Are these benefits sustainable?
e r e
i t h
t op
s s
e t’
L
COURSE STRUCTURE
Readings
Lectures
Assignments
Project
Exam
Recommended Books
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
Simple Marketing System
Communication
Product/Service
Producer/Seller Consumer
Money
Feedback
Next….
Understanding Marketing and Marketing
Process
Core Marketing Concepts
MGT301
Principles of Marketing
Lecture-1
