PRINCIPLES OF MARKETING:Introduction of Marketing, How is Marketing Done?

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Principles of Marketing MGT301

Lesson 1

MGT - 301

PRINCIPLES OF MARKETING

Overview of Course:

This subject/course is designed to teach the basic principles of Marketing to diverse

audience/students, including those who are studying this as a supporting subject for their bachelor

degree program. This course is designed to provide you the foundations of Marketing whether you

intend to work in field of the marketing or not.

Marketing is part of all of our lives and touches us in some way every day. To be successful each

company that deals with customers on a daily basis must not only be customer-driven, but

customer-obsessed. The best way to achieve this objective is to develop a sound marketing

function within the organization. To be understandable and lively means that we need to

communicate you. We start every chapter with learning objectives. The most important thing you

will get out of this course is the basic skills required to succeed in today's competitive environment.

Marketing is defined as a social and managerial process by which, individuals and groups obtain what they need

and want through creating and exchanging products and value with others. Marketing is a key factor to

business success. The marketing function not only deals with the production and distribution of

products and services, but it also is concerned with the ethical and social responsibility functions

found in the domestic and global environment.

Introduction of Marketing

What image comes to mind when you hear the word "marketing"? Some people think of

advertisements or brochures, while others think of public relations (for instance, arranging for

clients to appear on TV talk shows). The truth is, all of these--and many more things--make up

the field of marketing. The Knowledge Exchange Business Encyclopedia defines marketing as

"planning and executing the strategy involved in moving a good or service from producer to

consumer."

With this definition in mind, it's apparent that marketing and many other business activities are

related in some ways. In simplified terms, marketers and others help move goods and services

through the creation and production process; at that point, marketers help move the goods and

services to consumers. But the connection goes even further: Marketing can have a significant

impact on all areas of the business and vice versa.

Understanding Marketing:

Marketing: It is the process of creating consumer value in the form of goods, services, or ideas

that can improve the consumer's life.

Marketing is the organizational function charged with defining customer targets and the best way

to satisfy needs and wants competitively and profitably. Since consumers and business buyers face

an abundance of suppliers seeking to satisfy their everyday need, companies and nonprofit

organizations cannot survive today by simply doing a good job. They must do an excellent job if

they are to remain in the increasingly competitive global marketplace. This is what we say that

survival of the fittest. Many studies have demonstrated that the key to profitable performance is to

know and satisfy target customers with competitively superior offers. This process takes place

today in an increasingly global, technical, and competitive environment.

Principles of Marketing MGT301

What is Marketing?

Marketing is not only restricted to

selling and advertising as is

ons

Catal

oti

ogue

rtisin

Prom

perceived but is More than it

Adve

advertising it identifies and

Sal

What is

satisfies customers needs. it

Public

functions revolve around wide

Marketing,

relation

Servic

variety and range of tasks and

anyway?

activities mostly termed as functions

erce

related to 4ps i.e. Product, price,

E-co

Delive

place and promotion. Marketing is:

ing

Shopp s

Retai

Spon

ling

orshi

chann

a. Creating customer value and

ing

Pric

satisfaction are at the very

ct ma Res

heart of modern marketing

Billb Dir

Pack

ear

aging

oard

thinking and practice.

b. A very simple definition of

marketing is that it is the delivery of customer satisfaction at a profit.

c. Sound marketing is critical to the success of every organization.

Marketing can also be defined as 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."

Simple Marketing System

S im p le M a r k e tin g

The concept of Marketing System

brings one full circle to the concept of

S y s te m

marketing.

Simple marketing system comprises of

Communication

different actors and factors like

producer/seller,

product/service

Product/Service

something valuable to exchange in

Producer/Seller

Consumer

Money

return of product/service (money),

consumer/customer, communication

process

have

two

way

Feedback

communication like to provide

information about product or service

to customer or consumer and to have

feedback in same regard from the customer. Fig presents an example of a very simple marketing

system. Marketing system has following basic activities:

Sellers must search for buyers, identify their needs, design good products and services, set

prices for them, promote them, and store and deliver them.

A modern marketing system includes all of the elements necessary to bring buyers and

sellers together. This might include such activities as product development, research,

communication, distribution, pricing, and service..

Each of the major actors in a marketing system adds value for the next level of the system.

There is often critical interdependency among network members.

To learn more about marketing fist we should learn about some basics that are some time termed

as 4ps(Product, price, place, promotion) and some times even 6 or 7ps (Product, price, place

promotion, position, personal relations, people and profit) lets have some definitions in this regard:

Principles of Marketing MGT301

Product--what are you selling? (It might be

a product or a service.)

Price

Product

· Price--what is your pricing strategy?

· Place or distribution--how are you

distributing your product to get it into the

Customers

marketplace?

· Promotion--how

are

you

telling

consumers in your target group about your

Place

Promotion

product?

Positioning--what place do you want your

product to hold in the consumer's mind?

Personal relationships--how are you building relationships with your target consumers?

People: public who can have impact on organization or can be affected by organization.

Profits: the basic objective of organization that to have something valuable in return of

product or service mostly it is in form of money.

Marketing assumes that it will proceed in accordance with ethical actives. It Identifies the 4

marketing variables i.e. product, price, promotion, and distribution it also states that the public, the

customer, and the client determine the marketing program. Marketing mainly emphasizes on

creating and maintaining relationships and applies for both non-profit organizations and profit-

oriented businesses. Major activities that are performed in marketing process include:

Personal selling Advertising, Making products available in stores and Maintaining inventories. Any

thing like goods, services, experiences, events, persons, places, organizations, information and

ideas can be marketed to the customers in return of something of value.

How Does an Organization Create a Customer?

Organizations (producer/ seller) can create the customers by Identifying customer needs,

designing goods and services that meet those needs than 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 and finally providing for the necessary service and follow-up to ensure

customer satisfaction after the purchase

Costs

Careers

About 25 to 33% of

About 50% of total

How is Marketing Done?

the work force hold

product costs are

According to Peter F. Drucker If we want to

marketing positions.

marketing costs

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

Why Study

organ of society.

There is one valid

Marketing ?

definition of business purpose: to create a

customer.

Contributions to Society

Reasons for Studying Marketing:

Marketing decisions affect

Contributions to

Marketing is part of all of our lives and Individual Organizations

the lives of individual

touches us in some way every day. To be Critical to the success

consumers and society as

of a firm

a whole

successful each company that deals with

customers on a daily basis must not only be customer-driven, but customer-obsessed. The best

way to achieve this objective is to develop a sound marketing function within the organization.

Major reason to study marketing is:

· Marketing plays an important role in society

Principles of Marketing MGT301

· It is Vital to business

· Marketing offers outstanding career opportunities

· Marketing effects your life every day

What do Marketers think about?

To have clearer concept in this regard lets consider an example of Opening a Book Shop on

campus. To do so we have to answer different questions like:

1. Is there a need? (Of having book shop)

2. What is my target market? (Who will be buying products from your book shop)

3. What is my product?(Basic items to be sold)

4. How can I produce and deliver a "product" better than my competitors?

5. How shall I promote my product?

6. How can I insure customer loyalty?

Mostly before starting any activity of above-mentioned type marketer performs an analysis termed

as SWOT (Strength, Weakness, Opportunity and Threat). Marketing is a process of getting the

right products to the right people at the right price and at the right place and time with the right

promotion. But this requires solution to certain simple question: like

Simple Questions, Hard Answers

1. Who are our customers? (Target Market)

2. What important & unique benefits do we provide? (Product/service)

3. Are these benefits sustainable? (Long-term competitive advantage)

These questions are apparently very simple but are very difficult to be answered theses questions

like it is really difficult to define basic characteristics to be produced in product and services as per

demands and requirements pf the customers; and then to precisely define your target market and

to have long-term competitive advantage through customer satisfaction.

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