Principles of Marketing Lecture 1

Principles of

MARKETING Reference:
Principle of Marketing
Phillip Kotler & Gary Armstrong

Course Instructor:
Shagufta Saleem Shaikh
Batch: BBA 2K22
WHAT
IS
MARKETING?
MARKETING
The word market has been derived from Latin
word Marcatus which refers to place of trade
or a place where business is carried on.
Definition:
• Marketing is human activity directed
at satisffying needs and wants through
exchange processes.
(Philip Kotler 1976)
MARKETING
• Marketing is the
process by which
companies create
value for customers
and build strong
customer
relationships in order
to capture value from
customers in return.
There are varying perceptions and viewpoints on the
meaning and content of marketing. Some important
definitions are:

Marketing is a social and

managerial process by which
individuals and groups obtain what
they need and want through
creating, offering and exchanging
products of value with others.
Marketing is the process by which
an organization relates creatively,
productively and profitably to the
market place.
Some important definitions are:
Marketing is the art of

creating and satisfying
customers at a profit.
Marketing is getting the

right goods and services to
the right people at the right
places at the right time at
the right price with the right
communication and
promotion.
Features of Marketing
 Marketing is consumer oriented
 Marketing succeeds production
 Marketing starts and ends with the

consumer/ buyer
 Marketing guides business

Objectives of Marketing
 To Satisfaction of human wants
 To Profit maximization
 To develop marketing field
 To Effective distribution of products
 To find sources for further information
market problems
 To take appropriate actions in the course of
actions
MARKETING PROCESS
Understanding the Marketplace
And Customer Needs
UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS
1. Needs, wants, and demands
2. Marketing offerings
(products, services, and experiences)
3. Value and satisfactions
4. Exchanges and relationships
5. Markets
UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS
1. Needs, wants, and demands Food
Clothing
Physical needs: Safety
Humans needs Social needs: Affection
Knowledge
Individual needs:
Self-expression
This Is a Need
Needs - state of felt

deprivation including
physical, social, and
individual needs.
This Is a Want
Wants - form that a

human need takes, as
shaped by culture
and individual
personality.
Need / Want Fulfillment
Needs and Wants are fulfilled

through a Marketing Offer
Some combination of products,

services, information, or
experiences offered to a market
to satisfy a need or want.
This Is Demand
Wants Buying Power
“Demand”
Human wants that are backed by
buying power
MARKET OFFERINGS
(PRODUCTS, SERVICES, AND EXPERIENCES)
2. Market offering
Some combination of
products, services,
information, or
experiences offered to
a market to satisfy a
need or want.
Marketing Myopia
• Marketing myopia is a situation
when a company has a narrow-
minded marketing approach
and it focuses mainly on only
one aspect out of many
possible marketing attributes.
• A brand focusing on the

development of high-quality
products for customers who
disregard quality and only focus
on the price is a classic example
of marketing myopia.
CUSTOMER VALUE AND SATISFACTION
3. Customer Value and satisfaction.

Customer value is the customer's
opinion of the product's value in
comparison to its costs and benefits
associated with a product or service. .
However, customer satisfaction is
based on how happy clients are with
the product's performance as
compared to their expectations.
EXCHANGES AND RELATIONSHIPS
4.Exchange is the act of
obtaining a desired object
from someone by offering
something in return.
• Product
• Service
• Idea
EXCHANGES AND RELATIONSHIPS
• The goal is to
build strong
relationships
by consistently
delivering
superior
customer value.
MARKETS
5. A market is the set
of actual and potencial
buyers of a product.
These buyers share a
particular need or
want that can be
satisfied through
exchamge
relationships.
DESIGNING A CUSTOMER-DRIVEN
MARKETING STRATEGY
• Once it fully
understands
consumers and the
marketplace,
marketing
management can
design a customer-
driven marketing
strategy.
DESIGNING A CUSTOMER-DRIVEN
MARKETING STRATEGY
• Kotler define marketing

management as the art
and science of choosing
target markets and
building profitable
relationships with
them.
GENERAL MARKETING STRATEGY*
1. What consumers will we

serve?
2. What will be our
positioning?
3. What will be our
marketing mix?
SELECTING CUSTOMERS TO SERVE
• The company must first
decide who it will serve.
It does this by dividing
the market into
segments of customers
(market segmentation)
and selecting which
segments it will go after
(target marketing).
SELECTING CUSTOMERS TO SERVE
• Fewer customers?
• Many customers?
• Reduced demand?
• Wide demand?
• Select only customers

that it can serve well
and profitably.
CHOOSING A VALUE PROPOSITION
• The company must • A company’s value
also dedice how proposition is the
will serve targeted set of benefits or
customers – how it values it promises
will differentiate to deliver to
and position itself consumers to satisfy
in the marketplace. theirs needs.
CHOOSING A VALUE PROPOSITION
• The customer’s question
“Why should I buy your
brand rather than a
competitor´s?”
• Companies must design

strong value propositions
that give them the
greatest advantage in
ther target markets.
MARKETING MANAGEMENT
ORIENTATIONS
• Marketing management 1. Production
wants to design strategies
that will profitable 2. Product
relationships with target
consumers. 3. Selling
• There are five alternative
concepts under which
4. Marketing
organizations design and 5. Societal
carry out their marketing
strategies: marketing
ORIENTATIONS
• The Production Concept
• The Product Concept

• Selling Concept
• The Marketing Concept
• The Societal Marketing

Concept
ORIENTATIONS
• The Production Concept: The idea that consumers will
favor products that are available and highly affordable
and that the organization should therefore focus on
improving production and distribution efficiency
• The Product Concept: The idea that consumers will

favor products that offer the most quality,
performance, and features and that the organization
should therefore devote its energy to making
continuous product improvements.
• Selling Concept: The idea that consumers will not buy
enough of the firm’s products unless it undertakes a
large-scale selling and promotion effort
• The Marketing Concept: A philosophy that holds that

achieving organizational goals depends on knowing
the needs and wants of target markets and delivering
the desired satisfactions better than competitors do.
• The Societal Marketing Concept: The idea that a

company’s marketing decisions should consider
consumers’ wants, the company’s requirements,
consumers’ long-run interests, and society’s long-run
interests.
THE SELLING VS MARKETING CONCEPT
MARKETING MIX
The marketing mix refers to
the set of actions, or tactics,
that a company uses to
promote its brand or product
in the market.
The 4Ps make up a typical

marketing mix - Price,
Product, Promotion and
Place.
MARKETING MIX
The term 'marketing mix' is a foundation model for
businesses, historically centered around product,
price, place, and promotion (also known as the "4
Ps").
The marketing mix has been defined as the "set of

marketing tools that the firm uses to pursue its
marketing objectives in the market”.
Thus the marketing mix refers to four broad levels of

marketing decision: product, price, place, and
promotion
MARKETING MIX
Thank You 

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Principles of

Marketing is a social and

Marketing is the art of

Marketing is getting the

 Marketing succeeds production

 Marketing starts and ends with the

 Marketing guides business

1. Needs, wants, and demands

3. Value and satisfactions

4. Exchanges and relationships

1. Needs, wants, and demands Food

Physical needs: Safety

Humans needs Social needs: Affection

Needs - state of felt

Wants - form that a

Needs and Wants are fulfilled

Some combination of products,

Wants Buying Power

• A brand focusing on the

3. Customer Value and satisfaction.

• Kotler define marketing

1. What consumers will we

• Select only customers

• Companies must design

• The Product Concept

• The Marketing Concept

• The Societal Marketing

• The Product Concept: The idea that consumers will

• The Marketing Concept: A philosophy that holds that

• The Societal Marketing Concept: The idea that a

The 4Ps make up a typical

The marketing mix has been defined as the "set of

Thus the marketing mix refers to four broad levels of

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