Introduction to Business &

Marketing
Created & Presented by
Peter Tan
Outline

• Marketing Definition
• Core marketing Concept
• Marketing Management
• Marketing Philosophies
• Marketing Ethics
• Marketing Process
• Business
Definition of Marketing

• “A social and managerial process by

which individuals and groups obtain
what they need and want through
creating and exchanging products and
value with others”
• Philip Kotler
Definition of Marketing

• “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”
American Marketing Association, United
States of America
Core Marketing Concept

Needs, Wants Value,

Products
& Demands Satisfaction,
Quality

Markets Exchanges,
Transactions &
Relationships
Core Marketing Concept
• Needs
– States of felt deprivation
• Wants
– The form taken by human needs as they are shaped by
culture and individual personality
• Demands
– Human wants that are backed with buying power
• Demand = Want + willingness to buy + ability to buy
– Demand is brand specific (Burger King, Ford)
– Marketers cannot influence needs, but can influence wants
and demand
Customer Value

• Customer Value
– is the difference between the values the
customer gains from owing and using a
product and the costs of obtaining the
product. Customers do not judge product
values and costs accurately or objectively.
They act on perceived value.
Customer Satisfaction

• Customer Satisfaction
– The extent to which a product’s perceived
(seeming, apparent) performance matches a
buyer’s expectation. If the product’s performance
falls short of expectations, the buyer is
dissatisfied. If the performance matches or
exceeds expectations, the buyer is satisfied or
delighted.
– Satisfied customers make repeat purchases and
spread the good experience through word of
mouth.
Core Marketing Concept
• Exchanges
– The act of obtaining a desired object from someone by
offering something in return
• Transactions
– A trade between 2 parties that involves at least 2 things of
value, agreed upon conditions, a time of agreement, and a
place of agreement
• Relationship Marketing
– The process of creating, maintaining and enhancing strong ,
value laden relationships with customers and other
stakeholders
• Markets
– The set of all actual and potential buyers of a product or
service
Products
• “Anything that can be offered to a market for
attention, acquisition, or consumption including
physical objects, services, personalities,
organisations and desires” American Marketing
Association
• Basic product plus added features and services
– Product attributes,
• Styling, features, quality, packaging, brand name
– Product benefits,
• Product performance, image
– Marketing support services
• Delivery & credit terms, guarantees, after sales service,
installation service
Simple Marketing System

Communication

Industry (a collection of sellers)

Products/Services Market (a collection of buyers)

Money

Information
Marketing Management

• The analysis, planning, implementation

and control of programs designed to
create, build and maintain beneficial
exchanges with target buyers for the
purpose of achieving organisational
objectives.
Marketing management

• Marketing management can be considered

demand management,
– Marketing management seeks to affect the level
of timing and nature of demand in a way that helps
the organisation achieve its objectives.
– It is concerned with not only finding and increasing
demand, but also changing or even reducing it.
– At any point in time there may be no demand,
adequate demand, irregular demand or too much
demand and marketing management find ways to
deal with these different demand states.
Managing Demand

• Managing Demand means managing

customers, new and repeat customers.
Marketing management carry out tasks
to achieve desired exchanges with
target markets with different
philosophies guiding these marketing
efforts.
Marketing management
philosophies
• The production concept
– The philosophy that consumers will favour
products that are available and highly
affordable and that management should
focus on improving production and
distribution efficiency.
– Narrow focus on Operations
Product Concept

• The idea that consumers will favour

products that offer the most quality,
performance and features and that the
organisation should devout its energy to
making continuous product
improvements.
• Narrow focus on its products
Selling Concept

• The idea that consumers will not buy

enough of the organisation’s products
unless the organisation undertakes a
large scale selling and promotion effort
• Aim to sell what they make rather than
what the customer wants
• Do you think that customers will likely
spread positive word of mouth?
Marketing Concept

• The marketing management philosophy

that holds that achieving organisational
goals depends on determining the
needs and wants of target markets and
delivering the desired satisfaction more
effectively and efficiently than
competitors do.
Marketing and Selling Contrasted

• Selling
– Selling existing products than adapting
existing products
• Marketing
– Know how to serve people well and adapt
to changing consumer wants
Marketing and Selling Contrasted
Starting Focus
Means Ends
Point

Factory - Existing Product - Selling & Promotion – Profits thru sales volumes

The Selling Concept

Starting Focus
Means Ends
Point

Market – Customers Needs – Integrated Marketing – Profits thru customer satisfaction

“Marketing Concept” What it
means?
‘What is a customer? A customer is the most important person
ever in this company – in person or by mail. A customer is not
dependent on us, we are dependent on him. A customer is not
an interruption of our work, he is the purpose of it. We are not
doing a favour by serving him, he is doing a favour by giving us
the opportunity to do so. A customer is not someone to argue or
match wits with – noboby ever won an argument with a
customer. A customer is a person who brings us his wants – it is
our job to handle them profitably to him and to ourselves’
LL BEAN (Catalogue retailer of clothing and sporting equipment)

In 1912 he made a notice ‘I do not consider a sale complete

until goods are worn out and the customer still satisfied. We will
thank anyone to return goods that are not perfectly
satisfactorily…Above all things we wish to avoid having a
dissatisfied customer’
Societal Marketing Concept

• The idea that the organisation should

determine the needs, wants, and
interest of target markets and deliver
satisfactioins more effectively and
efficiently than competitors in a way that
maintains or improves the consumer’s
and society’s well being
• The societal marketing concept calls
upon marketers to balance 3
considerations in setting their marketing
policies, company profits, consumer
wants and society’s interests.
Society (Human Welfare)

Societal
Marketing
Consumers Concept
(Wants & Company (Profits)
Satisfactions)
Marketing Challenges

• Today’s companies are wrestling with

changing customer values and
orientations; economic stagnation;
environmental decline; increased global
competition and other political and
social problems.
• Problems also provide opportunities
Growth of Non Profit Marketing
• Colleges (facing declining enrollments from competition and rising
costs, thy are using marketing to define their target markets, improving
their communication and promotion and responding better to student
needs and wants)

• Private Hospitals (As hospital room rates soar under-utilisation become

prominent, they are using marketing to compete for maternity patients
by offering a steak and Champaign dinner with candlelight for new
parents)

• Churches (finding out what their consumers want and need, catering
more to them in programs, meeting the boredom segment and lapse
church goers with clearly defined research as to take care of their
spirituality)
– Trouble keeping members and attracting financial support are redesigning
their service offerings according to their marketing research
Rapid Globalisation

• Geographical and cultural distances have

shrunk with the internet, internet VOIP, jet
planes, fax machines
• In turn it has allowed companies to greatly
expand their geographical market coverage,
purchasing, and manufacturing
• As a result it has provided a more complex
marketing environment for both customers
and companies
Rapid Internationalisation
• Industries have found new opportunities abroad (International
Marketing)
• Most products and services are hybrids through material
purchases, manufacturing and marketing taking place in several
countries.
• Honda is assemble in the USA from American made parts
• Many companies are forming strategic alliances with foreign
companies, even competitors, who are suppliers or marketing
partners (China and India to lower cost)
• China – Manufacturing and India – Telemarketing call centres
• Markets consists of people with needs and purchasing power
• China and India are one of the largest markets in the world and
have the potential to be the biggest consumer market.
Ethics

• The call for companies to take

responsibility for social and
environmental impact of their actions
• Consider:
– Manufacturing in China, India (Labour
Laws)
– Chemical Dumping
– Privacy (direct marketing)
Marketing
• What can marketing be used for?
• Travel Destination Popularity
• Worldwide growth and understanding of Yoga
• Worldwide growth of Japanese martial arts
• It took 30 – 40 years for Japan to be a world manufacturer of
cars after WWII
• It took Singapore 30 – 40 years to build, manage and market a
country
• Employees have to understand and partake in customer service
which is part of marketing e.g. LLBEAN
• Marketing is thus closely related to Business management and
corporate management
• ‘customer oriented and market driven’
Marketing Jobs
• It is essential that you understand that marketing is used by
every individual to some extent and it is vital for every company,
which ever occupation you have considered
• The two essentials are product knowledge and industry
knowledge for every employee
• Generally you would choose the type of industry to work in as
your job experience and career will be tagged to that particular
industry and it is sometimes not interchangeable
• Marketing in a hospital is different to Marketing as a car
manufacturer
• Secondly, to understand your company is to understand the
company products and the type of customers you serve
Marketing in Companies

• Kinds of Marketing Occupations (non

exhaustive list)
– Direct marketing
– Internet marketing
– Advertising
– Public Relations
– Sales, Business Development
– Strategic Marketing
– Marketing Consulting
– Promotional firms
Marketing Process

• How is marketing carried out?

• It starts from the business plan
– Corporate Strategic Planning
– Strategic Marketing Planning
– Marketing Planning (APIC)
– Understanding Consumers & Customers
(Research)
– Marketing effort and activities
– Marketing control with measurement, evaluation
and corrective action
Marketing Mix

• Customers, segments, markets

• Marketing Mix 4 Ps (Product, Price,
Place and Promotion)
• Product – customer needs and wants
• Price – costs to customers
• Place – convenience
• Promotion - Communication
TEST and Presentation

• Presentation Topics
– Core Marketing concept
– Maslows
– SWOT
– Marketing Management Philosophies
• Test will be short answers on key terms
and marketing introduction content