MARKETING ESSENTIALS

CHAPTER 1: OVERVIEW OF
MARKETING
1

3
4

HISTORY OF MARKETING
DEFINITIONS OF MARKETING
(MODERN POINT)
CORE MARKETING CONCEPTS
THE IMPORTANCE AND ROLE
OF MARKETING

2. DEFINITIONS OF MARKETING
(MODERN POINT)
2.1

WHAT IS MARKETING

2. 2

DEFINITIONS OF MARKETING

2.3

IMPORTANT POINTS OF THE

DEFINITIONS

2.1.What is Marketing?

2.1.What is Marketing?

2.1.What is Marketing?

2.1.What is Marketing?

2.1.What is Marketing?

Imagine, in a time long

ago, a small village,
deep in the woods,
surrounded by trees.

The village elders are

very worried.
There is not enough
open land to grow
sufficient crops.
They need to clear more
space to cultivate food.

One villager, Jack, is

able to work iron and
the elders approach
him:
Can you make us some
axes to clear the trees?

I can, says Jack. But

if Im making axes for
the village, I wont
have time to grow my
own crops.

The villagers agree that

they will give Jack
some grain in exchange
for the axes, and a little
more so he can buy
iron ore to make more
axes in the future.

Jack sets to work and

makes lots of good,
sharp axes.

The villagers are

delighted.
They cut down tress,
make space for growing
and provide Jack with
grain in exchange for
axes.

Jack takes the surplus

grain to the merchant
and trades it for more
iron ore.

Jack has created a

market axes for grain
and another market,
grain for ore.
That is marketing

Or as Philip Kotler
succinctly defines it,
marketing is:
Satisfying needs
and wants through
an exchange
process.

2.2.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 -

2.2.Defining Marketing
The process of Planning & Executing
the conception, pricing, promotion
and distribution of ideas, goods and
services to create exchanges that
satisfy individual and organizational
objectives.
-American Marketing Association-

2.3.IMPORTANT POINTS OF
THE DEFINITIONS
Marketing is a process
Marketing target is to satisfy needs, wants
Marketing always relate to exchange

Core Marketing Concepts

Business

Needs, wants,
and demands

Core
Core
Marketing
Marketing
Concepts
Concepts

Products

Markets
Value, cost and
satisfaction
Exchange, transactions,
and relationships

3.Core Marketing Concepts

Need, Wants,
Demands

Products

Value, Cost,
Satisfaction

Exchange,
Transaction,
Relationship

Market

Marketing &
Marketers

Human Needs.
It is a state of felt deprivation of some basic satisfaction.

Wants.
These are desires for specific satisfiers of these deeper
needs.

Demands.
These are wants for specific products that are backed by an
ability & willingness to buy them.

 Money
Accessibility

Invidual
Situation

Products.
These are anything that can be offered to satisfy a need or a
want.
The importance of physical product lies not so much in
owing them as in obtaining the services they render.
GOODS

PLACES

SERVICES

PROPERTIES

EVENTS

ORGANIZATIONS

EXPERIENCES

INFORMATION

PERSONS

IDEAS

 45.000 $

 Value, Cost & Satisfaction.

Value Cost
1. Product value
2. Service value
3. Personnel value
4. Image value

1. Monitory cost
2. Time cost
3. Energy cost
4. Psychic cost

WHEN :

Customer Expectance=Performance (satisfied)

Customer Expectance>Performance (dis-satisfied)
Customer Expectance<Performance (Highly satisfied)

 Exchange, Transactions & Relationship.

Exchange is one of the four ways people can obtain
products.
a. Self production.
b. Coercion.
c. Begging.
d. Exchange.
Exchange is the act of obtaining a desired product from
someone by offering something in return.

Five conditions of exchange.

1.
2.

At least two parties.

Each party has something that might be of value to the
other party.
Each party is capable of communication & delivery.
Each party is free to accept or reject the offer.
Each party believes it is appropriate or desirable to deal
with the other party.

3.
4.
5.

Traditional Organization Chart

Customers
Front-line people
Middle Management
Top
Management

2. The Role of marketing

2. The Role of marketing

Customers
Front-line people

s
om
er
us
t

er
m
to
s

Top
management

us
C

Middle management

Customer-Oriented Organization Chart

Evolving Views of Marketings

Role

Production
Marketing

Finance
Human
resources

a. Marketing as an
equal function

Production

Finance
Human
resources

Marketing

b. Marketing as a more
important function

Evolving Views of Marketings

Role

Marketing

c. Marketing as the
major function

Customer
M
ar

ke

tin
g

re Hu
so m
ur an
ce
s

n
ma ces
Hu ur
so
re

e
c
n
a
n
i
F

ce

n
o
ti
c
u
d
o
r
P

n
na
Fi

Production

d. The customer as the

controlling factor

Evolving Views of Marketings

Role
Production
Marketing
Customer

e. The customer as the controlling

function and marketing as the
integrative function