Principles of marketing: Lecture 1

MGT301
Principles of Marketing
Lecture­1


Today’s Topics


Introduction­an overview of marketing



Road map 


Introduction of Marketing 


Music to a Marketer’s Ears


“They’re the best.”



“I always eat there.”



“I only fly with that airline.”



“I buy my electronics at that store.”



“I will prefer to go in that school.”


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What is
Marketing,
anyway?


Definition


Marketing:  The process of 
creating consumer value in the 
form of goods, services, or ideas 
that can improve the consumer’s 
life.


What is marketing ?


More than selling and advertising



Identifying and satisfying customers needs



Range of activities (marketing mix ­ 4P’s)


What is Marketing?
Learning to make what you can sell vs. selling what 
you can make.
Identifying and satisfying customer needs and wants.


Peter Drucker


Goal of all organizations is to 
gain and retain customers



Innovation and marketing are the only two ways to 
achieve the goal



“The rest only adds cost”




The AMA managerial definition:


 “Marketing is 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.”




Marketing Involves having the Right Product available in 
the Right Place at the Right Time and making sure that the 
customer is Aware of the Product.

Marketing


Price

Product

Customers
Place

Promotion


Simple Marketing System
Communication
Product/Service
Producer/Seller

Money

Feedback

Consumer


Marketing’s 4 P’s 


Product



Price



Place



Promotion 


Marketing’s 4 P’s (+2)


People



Product



Price



Place



Promotion 



Profits


Marketing


It assumes that it will proceed in accordance with 
ethical practices.



Identifies the 4 marketing variables ­ product, price, 
promotion, and distribution.




States that the public, the customer, and the client 
determine the marketing program.



Emphasizes creating and maintaining relationships.



Finally applies for both non­profit organizations and 
profit­oriented businesses.


Marketing Includes...


Personal selling



Advertising



Making products available in stores



Maintaining inventories



etc

What Can Be Marketed?


Goods



Places



Services



Properties



Experiences



Organizations



Events



Information



Persons



Ideas


How Does an Organization Create a 
Customer?




Identifying customer needs



Designing goods and services that meet those needs



Communicating information about those goods and 
services to prospective buyers



Making the goods or services available at times and 
places that meet customers’ needs



Pricing goods and services to reflect costs, 
competition, and customers’ ability to buy



Providing for the necessary service and follow­up to 
ensure customer satisfaction after the purchase


How is Marketing Done?


Marketers Develop and Implement a 
Marketing Plan Based on the 
Following Information:

Organization’s
Organization’s Strengths
Strengths
and
and Weaknesses
Weaknesses
Opportunities

Opportunities and
and Threats
Threats to
to the
the
Organization
Organization in
in the
the Marketplace
Marketplace
Organization’s
Organization’s Overall
Overall Objectives
Objectives