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Principles of Marketing

BA170
A.B. Ilano

What is Marketing?

“The management process which identifies,

anticipates and satisfies customer requirements
profitably.”

Chartered Institute of Marketing

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• “An organizational function and a set of

processes for creating, communicating, and
delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders.
– American Marketing Association

“Meeting needs profitably”

EXCHANGE

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The Exchange Process

For an exchange to happen:
• There are at least two parties
• Each party has something that might be of value to
the other
• Each party is capable of communication and
delivery
• Each party is free to accept or reject the offer
• Each party believes it can trust the other party

Exchange…

…is a value-creating process.

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• Value
– The consumer’s estimate of a product’s capacity
to satisfy his/her needs
– It is based on overall perception
– Estimates are subjective

Value can be engineered.

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Exchange…

When an agreement is reached, the result is the

transaction.

What can you market?

• Goods • Places
• Services • Properties
• Events • Organizations
• Experiences • Information
• Persons • Ideas

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The Generalized Marketing

System

Communication

Goods/ Services
Industry Market
(A collection of sellers) (A collection of buyers)
Money

Information

The Value Creation and

Delivery System

Choose the Value

• Customer segmentation
Strategic Marketing
• Market selection/focus
• Value positioning

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The Value Creation and

Delivery System

Provide the Value

• Product development
Tactical Marketing
• Service development
• Pricing
• Sourcing / Making
• Distributing / Servicing

The Value Creation and

Delivery System

Communicate the Value

• Sales force
Tactical Marketing
• Sales promotion
• Advertising

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End result

• Marketing is about long term profitability.

• Build customer relationships.