Page 1

Defining Marketing

Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. - Philip Kotler

Page 2

Core Concepts of Marketing

Product or Offering Value and Satisfaction

Needs, Wants, and Demands

Exchange and Transactions Relationships and Networks

Target Markets & Segmentation

Marketing Channels Supply Chain Competition

Marketing Environment

Page 3

Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

Page 4

Manufacturermarkets

Services,Services,moneymoney

Governmentmarkets

Services,Services,moneymoney

ServicesServicesServices,Services,

moneymoney

TaxesTaxes

Taxes,Taxes,goodsgoods

Taxes,Taxes,goodsgoods

Taxes,Taxes,goodsgoods

MoneyMoney MoneyMoney

Consumermarkets

IntermediarymarketsGoods, servicesGoods, services Goods, servicesGoods, services

ResourcesResources ResourcesResourcesResourcemarketsMoneyMoney MoneyMoney

Structure of Flows

Page 5

The Four PsThe Four Ps

MarketingMix

Product

Price Promotion

Place

The Four Cs

CustomerSolution

CustomerCost

Communication

Conven-ience

Page 6

Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that are widely available and inexpensive

Consumers favor products that offer the most quality, performance,

or innovative features

Consumers will buy products only ifthe company aggressively

promotes/sells these products

Focuses on needs/ wants of target markets & delivering value

better than competitors

Company Orientations Towards the Marketplace

Page 7

Holistic Concept Internal MarketingIntegrated MarketingRelationship MarketingPerformance Marketing Marketing accountability Social Responsibility Marketing

Holistic Concept

Page 8

Market Integratedmarketing

Profits throughcustomer

satisfactionCustomer

needs

(b) The marketing concept

Factory Existingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

Customer Delivered Value

Page 9

Customers

Front-line people

Middle Management

TopManagement

Traditional Organization Chart

Page 10

Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Topmanage-

ment

Customers Custom

ers

Page 11

Evolving Views of Marketing’s Role

a. Marketing as anequal function

FinanceProduction

Marketing Humanresources

b. Marketing as a moreimportant function

Finance

Humanresources

Marketing

Production

Page 12

Evolving Views of Marketing’s Role

c. Marketing as themajor function

Marketing

Finance

Human

resources

Production

d. The customer as thecontrolling factor

Customer

Human

resource

s

FinanceProduction

Marketing

Page 13

Evolving Views of Marketing’s Role

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

Human

resources Finance