Chapter 1 - Introduction to Marketing: Discussing the definition of Marketing plus the importance of marketing in daily life.

1. Chapter 1
DATW 241 – MARKETING PRINCIPLES
Prepared by:
Nor Izzuddin Bin Norrahman
Lecturer of Management, Banking and Islamic Finance
Astin College

2. What is MARKETING?

3. Definition…
• American Marketing Association – Marketing
as the process of planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and services to
create exchanges that satisfy individual and
organizational objectives.
• (Dann and Dann,2004)

4. • Kotler and Armstrong, 2001 – Marketing as a
social and managerial process whereby
individuals and groups obtain what they need
and want through creating and exchanging
products and value with others.

5. Points to ponder…
• Is there any marketing definition trough
religion?
• Is it related with religion?
• Is religion belief will affecting the marketing?

6. • (Dann and Dann,2004) - The definitions of
marketing established a series of elements,
which are as follows:
– Marketing is a process
– Marketing requires planning
– Marketing is involved from design to delivery
– Marketing involves ideas, goods, and services
– Marketing create exchanges
– Marketing satisfies individual and organizational
objectives

7. Core
Marketing
Concept
Needs,
wants, and
demands
Products and
services
Value,
satisfaction,
and quality
Exchange,
transactions,
and
relationships
Markets

8. • Needs, wants, and demands
– Human needs are states of felt deprivation.
Includes basic physical needs.
• Examples?
– ‘Wants’ are the form of human needs. Shaped by
culture and individual personality.
• Examples?
– When ‘Wants’ is backed by the buying power, it
becomes demands.
• Examples?

9. Points to ponder…
• What is your needs as a student?
• Is your asset and your lifestyle are according
to your ‘wants’ or ‘needs’?
• Are your ‘demands’ backed up by your own
buying power?

10. • Products and services
– A product is anything that can be offered to a
market to satisfy a need or want.
– Products may include services.
– Products also include other entities such as
experiences, persons, places, organizations,
information and ideas.
– Thus, product is not only physical goods or
services.

11. • Value, satisfaction, and quality
– Consumers make buying choices based on their
perceptions of the value that various products and
services deliver.
– Customers value : the difference between the
values of the customer GAINS from owning or
using the products, and the COSTS of obtaining
the products.
– The one that gives them the greatest delivered
value.

12. – Customers satisfaction : Depends on a product’s
PERCEIVED performance in delivering value
relative to a buyer’s expectations.
• (Performance = Expectations)
– Quality : The totality of features and
characteristics of a product or service that bear on
its ability to satisfy customers need.
• (Performance > Expectations)

13. • Exchange, Transactions, and Relationships
– Exchange: The act of obtaining a desired object
from someone by offering something in return.
– Transactions: Trade value between two parties.
• Barter – Products VS. Products.
• Classic – Money VS. Products
– Relationships: Beyond creating short term
transactions, marketers need to build long-term
relationships with valued customers, distributors,
dealers and suppliers.

14. • Markets
– A market is the set of actual and potential buyers
of a products.
– Size of the market depend on the number of
people who exhibit the need, have resources to
engage in exchange, and are willing to make an
exchange.
– Examples?

15. Marketing
Concepts
The
production
concept
The
product
concept
The selling
concept
The
marketing
concept
The social
marketing
concept

16. • The production concept
– Favors products that AVAILABLE and highly
AFFORDABLE
– Focus on improving production and distribution
efficiency
– Pros? Cons?

17. • The product concept
– The product concept holds that consumers favor
products that offer most quality, performance,
and features.
– Can lead to “marketing myopia”.
– Pros? Cons?

18. • The selling concept
– This concept holds that the consumers will not
buy enough of the organization’s product unless it
undertakes a large SELLING and PROMOTION
effort.
– Pros? Cons?

19. • The marketing concept
– Achieving organizational GOALS depends on
determining the NEEDS & WANTS of target
markets and delivering the desired satisfactions
more effectively and efficiently than competitors.

20. • The societal marketing concept
Society
•Human
Welfare
Consumers
•Want
Satisfaction
Company
•Profits
Societal
Marketing
Concept

21. Factory
• Starting point
Existing
Products
• Focus
Selling &
Promotion
• Means
Profits
trough
volumes
• Ends
The Selling Concept

22. The Marketing Concept
Market
Customer
needs
Integrate
marketing
Profits
trough
customer
satisfaction

23. The Marketing Mix

24. Quick Review
Chapter
1

25. go raibh maith agat…
aon cheist?