Introduction to Marketing

1. Introduction to Marketing
LECTURE 1 By: Asad Ali EMAIL: ASADL1864@GMAIL.COM
UOS - AIOU
MCOM - MBA
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MOB:+92 302 7744927

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What Is Marketing?
Simple definition:
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably.”
Goals:
1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering
satisfaction.

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Marketing Defined
Marketing is the activity, set of instructions, and processes for
creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.
OLD view of marketing:
Making a sale—“telling and
selling”
NEW view of marketing:
Satisfying
customer needs

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Why is Marketing Important?
Sellers’ markets
Buyers’ markets

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The Marketing Process
A simple model of the marketing process:
• Understand the marketplace and customer needs and
wants.
• Design a customer-driven marketing strategy.
• Construct an integrated marketing program that
delivers superior value.
• Build profitable relationships and create customer
delight.
• Capture value from customers to create profits and
customer quality.

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Needs, Wants, and Demands
Need: State of felt deprivation including physical, social, and individual
needs.
• Physical needs: Food, clothing, shelter, safety
• Social needs: Belonging, affection
• Individual needs: Learning, knowledge, self-expression
Want: Form that a human need takes, as shaped by culture and
individual personality.
Wants + Buying Power = Demand

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Need/ Want Fulfillment
Needs & wants are fulfilled through a Marketing Offering:
•Products:
Persons, places, organizations, information, ideas.
•Services:
Activity or benefit offered for sale that is essentially intangible and does not
result in ownership.
•Experiences:
Consumers live the offering.

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Customer Value and Satisfaction
Dependent on the product’s perceived performance relative to a buyer’s
expectations.
Care must be taken when setting expectations:
• If performance is lower than expectations, satisfaction is low.
• If performance is higher than expectations, satisfaction is high.
Customer satisfaction often leads to consumer loyalty.
Some firms seek to DELIGHT customers by exceeding expectations.

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Marketing Management
The art and science of choosing target markets and building profitable
relationships with them.
• Requires that consumers and the marketplace be fully understood.
• Aim is to find, attract, keep, and grow customers by creating, delivering,
and communicating superior value.

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Marketing Management
Marketing managers must consider the following, to ensure a successful marketing
strategy:
1.What customers will we serve?
— What is our target market?
2. How can we best serve these
customers?
— What is our value proposition?

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Choosing a Value Proposition
The set of benefits or values a company promises to deliver to
consumers to satisfy their needs.
• Value propositions dictate how firms will differentiate and
position their brands in the marketplace.

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The Marketing Concept
The marketing concept:
• A marketing management philosophy that holds that
achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the
desired satisfaction better than competitors.

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Customer Perceived Value
Customer perceived value:
“Customer’s evaluation of the difference between all of the benefits and all
of the costs of a marketing offer relative to those of competing offers.”
(Armstrong & Kotler)
–Perceptions may be subjective
–Consumers often do not objectively judge values and costs.
Customer value = perceived benefits – perceived sacrifice.

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The Marketing Mix
The set of controllable, tactical marketing tools that the firm blends to produce
the response it wants in the target market.
• Product: Variety, features, brand name, quality, design, packaging, and
services.
• Price: List price, discounts, allowances, payment period, and credit terms.
• Place: Distribution channels, coverage, logistics, locations, transportation,
assortments, and inventory.
• Promotion: Advertising, sales promotion, public relations, and personal selling.

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Marketing Strategy
Customer-Driven Marketing Strategy
Requires careful customer analysis.
To be successful, firms must engage in:
• Market segmentation
• Market targeting
• Differentiation
• Positioning

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Market Segmentation and Targeting
Segmentation:
The process of dividing a market into distinct groups of buyers with different needs,
characteristics, or behavior who might require separate products of marketing
programs.
Targeting:
Involves evaluating each market segment’s attractiveness and selecting one or more
segments to enter.

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Differentiation and Positioning
Differentiation:
Creating superior customer value by actually differentiating the market offering.
Positioning:
Arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers.

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ANY QUESTION ?
THANK YOU!