BUS 365 Principles of Marketing: Prof. A. Della Bitta

BUS 365
Principles of Marketing
Prof. A. Della Bitta

The Text – Marketing 2nd edition, 2011
McGraw-Hill ISBN: 978-0-07-340487-5
What is Marketing?
What is Marketing?
It is much more than

advertising or promotion
Definition of Marketing by American Marketing
Association:
Book- quoting AMA in 12-2008: Marketing is the
activity, set of institutions, and processes for creating,
capturing, communicating, delivering and exchanging
offerings that have value for customers, clients, partners,
and society at large.
AMA Website 04-2010: Marketing is 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.
Source: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M
Marketing Facilitates Exchanges
Marketing Exchange
People giving up something to

receive something they would rather have.
At least two parties
A willingness to deal with

Minimum another party
conditions
needed for an Involves something perceived
exchange to to be of value
occur
Communication and delivery
Freedom to accept or reject

Why Study Marketing?
 Plays an important role in society

 Vital to business survival, profits and growth
 Half of every dollar spent by consumers is for
marketing costs.
 Become a better-informed consumer.

 Offers career opportunities
Marketing focuses on discovering
_________ and
_______
satisfying consumers’ wants and needs
What is a - -
Consumer:
Customer:
Market:
Need:
Want:
Market:
Core Aspects of Marketing
Philosophies of Doing Marketing
Philosophy
Philosophy Key focus of the orientation
Production Focus on efficiency of internal operations –
better & cheaper products. Up to late 1920s
Focus on product features – “consumers will
Product want the highest quality products 1920s – late 1930s
Focus on aggressive techniques to over-

Sales come customer resistance – “our warehouse is
full, we need to unload this stuff” 1948 – 1955 or so
Focus on satisfying customer needs & wants
Marketing “find out the needs/wants consumers & satisfy those
if that are profitable for us to do so” 1955 - 1990s
2000s Focus on satisfying certain needs/wants if
Societal Mkt. it is profitable and if it is consistent with enhancing
individual and societal well-being
These Orientations Differ
on the Following Characteristics
► Organization’s focus ► Firm’s primary goal
► Definition of firm’s business ► Tools used to achieve
► For whom the product is directed those goals
Example
Focus Firm’s For Primary Tools to
Business Whom? Goal? Achieve?
Sales Inward Selling Maximum Primarily

Orientation goods and Everybody sales promotion
services volume
Market Outward Satisfying Specific Customer Coordinated

Orientation wants and groups of satisfaction use of all
needs people marketing
activities
Recapitulation
Orientation Focus
Production What can we make or do best?
Sales How can we sell more aggressively?
What do customers
Marketing want and need?
What do customers want and need,

Societal and how can we satisfy those
wants/needs and benefit society?
The Marketing Orientation
Focusing on customer wants and needs can be a

source of competitive advantage by:
 Creating customer value
 Maintaining customer satisfaction
 Building long-term relationships

Customer Value
The result of evaluation of benefits to
the sacrifice necessary to obtain those
benefits - it is in essence what you get
for what you give up.
• The fundamental purpose of marketing

is to create value for both the firm and
customer.
Customer Satisfaction
The customer’s feeling that a product has
met or exceeded his/her expectations.
Expectations
and
Product Performance
Relationship Marketing
A strategy that entails developing long-term
partnerships with customers - - both individuals and
firms.
The Marketing Process
Organizational mission
Situational
analysis
Marketing strategy
(Segmentation, Targeting & Positioning
Environ-
mental
Marketing mix: scan
• product
• distribution
• promotion
• price
Implementation
Evaluation
An organization’s marketing department
relates to many people, groups, and forces
Marketing’s First Task:
Discovering Consumers’ Needs
 Identification of actual needs & wants
 Customers’ words and behavior are suggestive

of their needs & wants
 Potential consumers in the marketplace

Environmental scanning….
Collecting and interpreting data about forces, events
and relationships in the external environment that
have relevance to the organization’s marketing plan
and/or its implementation.
Environmental Scanning
 Examination of macroenvironmental forces
Social
Demographic
Economic
Technological
Political / Legal
Competitive
 Helps identify market opportunities
 Provides guidelines for design of marketing strategy

Marketing’s Second Task:
Satisfying Consumer Needs
An organization can’t satisfy the needs of
all consumers, so it must focus on one or more
target markets
subgroups, which are its ____________.
The Marketing Mix
A unique blend of:

 product,
 distribution,
 promotion, and
 pricing strategies
designed to produce mutually satisfying
exchanges with a target market.
Marketing mix: The ‘four Ps’
 Product  Place
 Price  Promotion
Product
Product
Promotion
Promotion 4P’s
4P’s Price
Price
Place
Place
Product Strategies
 The starting point of the ‘four Ps’

 Includes physical unit, package,
warranty, service, brand, image
and value
Pricing Strategies
They are typically based on

viewing price as what is
given up in an exchange to
acquire a good or service.
Distribution (Place) Strategies
 Product availability – where and when

customers want them
 Involves all activities from raw materials

to finished products
 Impact of the Internet

Promotion Strategies
 Role is to bring about exchanges with

target markets – inform, persuade, remind
 Includes integration of personal selling,
advertising, sales promotion, and public
relations, direct marketing and Internet
marketing
Answer these two questions
The fundamental purpose of Marketing is to help

create value.
1. How does it do this?
2. What are the two ways that marketing can

increase value for customers?

BUS 365 Principles of Marketing: Prof. A. Della Bitta

Uploaded by

Copyright:

Available Formats

BUS 365 Principles of Marketing: Prof. A. Della Bitta

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BUS 365 Principles of Marketing: Prof. A. Della Bitta

Uploaded by

Copyright:

Available Formats

BUS 365

Prof. A. Della Bitta

It is much more than

AMA Website 04-2010: Marketing is an organizational

People giving up something to

A willingness to deal with

Freedom to accept or reject

 Plays an important role in society

 Become a better-informed consumer.

Focus on aggressive techniques to over-

Sales Inward Selling Maximum Primarily

Market Outward Satisfying Specific Customer Coordinated

Production What can we make or do best?

Sales How can we sell more aggressively?

What do customers want and need,

Focusing on customer wants and needs can be a

 Maintaining customer satisfaction

 Building long-term relationships

• The fundamental purpose of marketing

 Identification of actual needs & wants

 Customers’ words and behavior are suggestive

 Potential consumers in the marketplace

 Provides guidelines for design of marketing strategy

A unique blend of:

 The starting point of the ‘four Ps’

They are typically based on

 Product availability – where and when

 Involves all activities from raw materials

 Impact of the Internet

 Role is to bring about exchanges with

The fundamental purpose of Marketing is to help

1. How does it do this?

2. What are the two ways that marketing can

You might also like