Principles of marketing: Lecture 5

MGT301
Principles of Marketing
Lecture­5


Summary
of  
Lecture­4


How has Marketing Changed Over Time?


The stages in the evolution of marketing
Production
orientation
Sales
orientation
Marketing
orientation

Social
marketing
orientation


PRODUCT
CONCEPT

SOCIETAL
MARKETING

CONCEPT

KEY
MARKETING
PHILOSOPHIES
MARKETING
MARKETING
CONCEPT
CONCEPT

PRODUCTION
CONCEPT
SELLING
CONCEPT


Society
Society
(Human
(Human Welfare)
Welfare)

Societal
Societal
Marketing
Marketing
Concept
Concept

Consumers

Consumers
(Satisfaction)
(Satisfaction)

Company
Company
(Profits)
(Profits)


Production
Marketing
an
m ces
Hu ur
so
re

Customer

Fi

e
c
n
a
n

The customer as the controlling
function and marketing as the

integrative function


Today’s Topics


Marketing Challenges in the 21st century


Porter’s 5 Forces Model of Competition


Threat of
New
Threat of 
Entrants
New 
Entrants
Bargaining
Power of
Suppliers

Rivalry Among Competing
Firms in Industry

Bargaining
Power of
Buyers

Threat of

Substitute
Products
*


Marketing Challenges 


The Information Technology Boom



Rapid Globalization



The Changing World Economy



The Call for more ethical and social Responsibility



The New Marketing Landscape


The Information Technology Boom

Major Forces Shaping the Digital Age


Digitalization and Connectivity
– The flow of digital information requires connectivity 
  Intranets, Extranets, and the Internet 

The Internet Explosion
– Key driver of the “new economy”




New Types of Intermediaries



Connecting with Customers



Connecting with Marketing Partners



Connecting Inside the Company



Connecting with the World around us

E­business: 
– uses electronic means and platforms to conduct business.

E­commerce:
– facilitates the sale of products and services by electronic 
means. 


E­marketing: 
– Includes efforts that inform, communicate, promote, and sell 
products and services over the Internet.
E­commerce benefits both buyers and sellers
Technology for Connecting


Electronic Commerce

retailer / 
manufacturer

Financial Institution
Internet

consumer


The Digital Revolution

The Digital Revolution: one of the biggest changes in the 
world of marketing.  Changes in technology are transforming 
the ways we:
– communicate,
– buy,
– sell,
– learn, and
– work.


Rapid Globalization
BE T o n   J a zz

Anthro po lo g y
P&E

Animal
Plane t

Children’s
Cable Net

Are na
Clas s ic al 
Mus ic

Kno wle dge
TV

Ovatio n
KIDS
CIVILIZATION

Classic Arts
Showcase

Bo o kne t

EOP

New Science
Network

C-SP AN

DIYAr ts  & An tiq u e s
Mus e um
Channe l

S CIE NC E

No g g in

Theater
Channel

BLOOMBERG
NEW S INFORMATION

Trave l 
Channe l


“Global Village”


The Changing World Economy


The Call for more ethical and social 
Responsibility