ABM 1 – GRADE 11

Principles of Marketing
Chapter 1
Definitions of Marketing
1. Chartered Institute of Marketing (2001):
• ‘Marketing is the management process
responsible for identifying, anticipating,
and satisfying customer requirements
profitably’

2. American Marketing Association (1985):

• ‘Marketing is the process of planning
and executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create exchange
and satisfy individual and organisational
objectives’
Marketing

“ The activity, set of institutions, and

processes for creating, communicating,
delivering, and exchanging offerings that
“
have value for customers, clients, partners,
and society at large
 The Marketing Concept
• Organisations with a Marketing Orientation puts
the customer’s NEEDS, WANTS & SATISFACTION
FIRST

• Blythe (2006):
• Corporate success comes from satisfying customer
needs
• Customer centrality is the key concept in marketing

• Anderson et al, (2004):

• Evidence suggests a positive association between
customer satisfaction & shareholder value
Core Marketing Concepts

Needs, wants, Products

and demands
Core
Marketing
Concepts
Markets Value,
satisfacti
on,
Exchange, transactions, and
and relationships quality
Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

• States of deprivation

Needs • Physical—food, clothing, warmth, safety

• Social—belonging and affection
• Individual—knowledge and self-expression

Wants • Form that needs take as they are shaped by culture and
individual personality

Demand • Wants backed by buying power

s
Products
• A product is anything that can be offered to a
market to satisfy need or want. It includes
physical objects, services, persons, places,
ideas and organisations.

• Marketers often use the expression goods

and services to distinguish between tangible
and intangible ones.

7
Characteristics of Products
 Tangible product
 Production usually
separate from
consumption
 Can be inventoried
 Low customer
interaction
Characteristics of Service
 Intangible product
 Produced and consumed at
same time
 Often unique
 High customer interaction
Implications of Intangibility
• Services cannot be inventoried

• Services cannot be easily patented

• Services cannot be readily displayed or communicated

• Pricing is difficult
 Understanding the Marketplace
and Customer Needs
Markets are the set of actual and
potential buyers of a product

Copyright © 2012 Pearson Education

1- 11
 What Is Marketing?
The Marketing Process

Copyright © 2012 Pearson Education

1- 12
A Simple Marketing System

Communication

Products and Services

Industry Market
(a collection (a collection
of sellers) of buyers)
Money

Information
‘Exchange of ideas, goods & services’