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 (p. 7)
Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
 Simple Marketing System

Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
 Structure of Flows
Resources Resources
Money Resource Money
markets
Services,
money Taxes,
goods
Services, Taxes
money
Manufacturer Government Consumer
markets markets markets
Taxes,
goods Services
Services, Taxes,
money goods
Money Money
Intermediary
Goods, services markets Goods, services
 The Four Ps
The Four Cs

Marketing
Mix

Place
Product

Customer Conven-
Solution Price Promotion ience

Customer Communication
Cost
Company Orientations Towards
the Marketplace
Consumers prefer products that are
Production Concept widely available and inexpensive

Consumers favor products that

Product Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing Concept markets & delivering value
better than competitors
 Customer Delivered Value
Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

Traditional Organization Chart

Top
Management

Middle Management

Front-line people

Customers
 Customer-Oriented
Organization Chart
Customers

Front-line people

Middle management

s
C

er
us

om
t

Top
om

t
us
manage-
er

C
s

ment
 Evolving Views of Marketing’s
Role

Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing

a. Marketing as an b. Marketing as a more

equal function important function
 Evolving Views of Marketing’s
Role
Production o n
cti

Fi
du

n
o

an
Pr

ce
Marketing Customer
re
Hu ur

ce M
so

ur an
n ar

s
ma ces

ce
ke

so m
i n tin
F

re Hu
n

c. Marketing as the d. The customer as the

major function controlling factor
Evolving Views of Marketing’s
Role
Production

Marketing

Customer
re
Hu ur
so

e
ma ces

n c
a
n

n
Fi

e. The customer as the controlling

function and marketing as the
integrative function
 Review
• Course Organization
• Tasks of Marketing
• Major Concepts & Tools of Marketing
• Marketplace Orientations
• Marketing’s Responses to New Challenges