Principles of Marketing

BAMK1205/BSMK1102
Spring Semester
AY 2022 – 2023
Chapter ONE: Principles of Marketing
Topic 1: Understanding Marketing
Learning Outcomes
At the end of the semester, the student who satisfactorily completes the course should be able to:

1. Describe the role and Function of Marketing within Organizations

2. Explain the factors that influence consumer behavior

3. Identify the key components of the marketing environment

4. Know how to collect relevant information about the marketing environment

5. Describe the concept and element of the marketing mix

6. Know-how the marketing mix is applied in different contextual settings

Week 1 / Topic 1: Understanding
Marketing
1. Meaning of Market and Marketing
2. The Importance of Marketing
3. The Marketing Process
4. Marketing Management Orientations
5. Core Concepts of Marketing
Meaning of Market and Marketing

Market:
In Latin: Mercatus means To Trade
In common Parlance: a place or locality where things are bought and sold and where buyers and sellers personally
meet to affect purchase and sales.
For the students of Marketing: it is the atmosphere or a region in which forces of demand and supply operate
directly or by means of any kind of communication to bring about transfer in the title of goods. Market is an
arrangement providing an opportunity to exchange goods.
Market The set of all actual and potential buyers of a product or service.

Marketing:
Is the process of discovering and translating consumers’ wants into product and service specification and then in
turn, helping to make it possible for more and more consumers to enjoy more and more of these products and
services.
Modern definition of Marketing
Marketing is a social and managerial process by which individuals
and organizations obtain what they need and want through
creating and exchanging value with others

The process by which companies create value for customers and

build strong customer relationships in order to capture value from
customers in return
Importance of Marketing
1. The financial success of a company depends on its marketing ability. Marketing builds demands for
product and service.
2. Increase brand awareness

3. Marketing provides the relevant information that the company needs in making management
decisions.Additionally , Marketing provides relevant information that the public needs.

4. Marketing improves the lives of people by satisfying the needs, wants and expectations of the
society.

5. Marketing helps in building the company’s reputation.

The Scope of Marketing
• Need: – Needs are the basic human requirements. It includes food, cloth, shelter,
affection and safety.

• Want: – The form taken by a human need as shaped by culture and individual
personality.

• Demand: – Human wants that are backed by buying power.

Marketers do not create needs. Needs pre-
exist marketers. Marketers, along with
societal forces influence wants.
Discussion Question

-Give an example of a product (good or

service) you purchased recently

-Explain how that product satisfied a

need, want or desire.
The Scope of Marketing
1. Exchange- This is the process of obtaining a
desired product from someone by offering
something in return

2. Transaction- This is a trade of values

between two or more parties and only
happens once an agreement is reached.
Scope of Marketing

3) Market Offerings: Some combination of products, services,

information, or experiences offered to a market to satisfy a need or want.

It is the mistake of paying more attention to the specific

products a company offers than to the benefits and
experiences produced by these products.

Marketing myopia occurs when companies become so

taken with their own products that they focus only on
existing wants and lose sight of underlying customer
needs.
NOKIA as an example :
It has focused all its resources thinking that it is in a growing industry and overlooked
the future needs of customers.
It thought the mobile phone is only for messages, calls and some snake games, but at
the same time, companies like Samsung, apple, etc came with revolutionized
technologies bringing GPS, internet, media, etc into mobile phones changing the
entirety of the mobile phones industry.
If Nokia focused on customer needs and created innovated products anticipating the
customer needs, it would have been still enjoying market leadership.
Scope of Marketing

4) Customer Value and Satisfaction

❑ Customers form expectations about the value and

satisfaction that various market offerings will deliver and
buy accordingly
❑ Customer value and customer satisfaction are key building
blocks for developing and managing customer relationships.
❑ Marketers must be careful to set the right level of
expectations. If they set expectations too low, they may
satisfy those who buy but fail to attract enough buyers
Customer Satisfaction.

Customer Satisfaction. It is determined by the performance and delivery of a product or

service to customers’ expectations. If the product performance match a consumer
expectation the customer will be satisfied, if performs less he will be dissatisfied, and if the
performance exceeded the consumer’s expectations he will be delighted and highly
satisfied.
Satisfied customers become brand loyal and are likely to tell other people about good
experiences. As customer satisfaction is the end point of marketing, the key to the success
of marketing is to match product (or service) performance with customers’ expectations.
You should attempt to delight customers by providing more performance (value) to
customers than their expectations. That certainly makes the customer brand loyal and they
will be repetitive customers.
Scope of Marketing

5) Relationships. Marketing consists of

actions taken to build and maintain
desirable exchange relationships with target
audiences involving a product, service, idea,
or other object. Beyond simply attracting
new customers and creating transactions,
companies want to retain customers and
grow their businesses.
What can be marketed?

1. Goods: soaps, shampoos, cars, computers, Phones,

etc.
2. Services: hotels like Al Bustan Palace Hotel, airline
companies e.g. Oman Air, health care centers such as
Bader Al Sama, car rentals, etc
3. Events: Muscat Festival, Salalah Festival, Dubai
Shoping Festivals, Muscat International Book Fair
Exhibition,Comex International Exhibition, graduation
ceremonies, National Day celebrations, etc.
What can be marketed?

4. Person marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular people.

5. Place marketing consists of activities

undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward particular places.
What can be marketed?
6. Organizations marketing consists of activities
undertaken to create, maintain, or change
attitudes and behavior of target consumers
toward an organization.
Organizations whether commercial or non profitable organizations
such as, universities, charitable organizations like Dar Al- Atta. The purpose is to
create a positive image among their stakeholders. Dar Al Atta is using the week, a
weekly newspaper to announce their activities like fund raising activities.

7. Social marketing is the use of commercial

marketing concepts and tools in programs designed to
influence individuals’ behavior to improve their well-
being and that of society.
What can be marketed?
8. Information marketing : Universities are
selling information through education. Google is
one example of companies that market
information.

9. Idea marketing: social marketers are

promoting social ideas like anti smoking
campaigns. Another example is blood donation
campaigns run by the Ministry of Health. The
purpose is to promote ideas that encourage
positive behaviors.
Marketing Orientations
Marketing is both, a philosophy and an art. As a philosophy, it guides and
directs the business thinking i.e., whether to produce or not to produce. As a
technology, it is concerned with deciding what should be produced, how and
when products could be most effectively distributed among the customers.

Marketing concepts changed due to the changes in human behavior. Hence

evolution of marketing concept is due to the changes in a philosophy and a
technology.
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.
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
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.
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 Market (Exchange Process)
Week 1-Class Discussion
Select one of these Videos with student to watch (they can watch using their mobiles if
necessary) to conduct in-class discussions
Marketing changes how you think about things: https://youtu.be/OAlyHUWjNjE
Marketing alters history: https://youtu.be/KQNBNiXGMiA
Marketing creates memorable experiences: https://youtu.be/YMJD53fxihU
In Class Discussion and Activity
Write the first choice that In the Tourism
comes to you mind, when you Sector, List the
are:
goods that can be
1. Hungry
sold as:
2. Thirsty
3. Feeling Cold 1. Product
4. Bored 2. Services
5. Feeling Lonely 3. Experience
6. Looking for new look
The role of marketing
External Vs. Internal Marketing

Internal marketing is the promotion of a company's objectives, products and services to employees
within the organization. The purpose is to increase employee engagement with the company's goals
and brand advocacy.

Internal Marketing
Internal marketing focuses on strengthening your brand’s bond with your staff.
Internal marketing is equally important because it deepens brand’s relationship with those
working in organization.
Internal marketing is about creating a positive culture within your brand. Through internal
marketing, companies promote to the staff company’s values and encourage staff to grow
with your brand. Internal marketing helps create a healthy working environment inside the
organization.
The good practices happening internally in the organization will spill out and create positive
marketing strategies externally.
External marketing

External marketing is the action or business of promoting and selling services or

products, including market research and advertising to clients and potential
clients
External Marketing:
The type of marketing that most brands know is external marketing. Simply put, external marketing is
promoting your brand’s identity, products, and services outside of your brand’s physical confines.
Companies use external marketing to communicate with the target audience and expand brand’s reach.
External marketing is done using different kinds of materials and content on different platforms. Some
examples of external marketing are websites, social media interaction, print, TV, and radio ads.
Through external marketing, companies build brand equity or value by addressing customers’ questions and
concerns. Effective external marketing builds rapport with potential clients and strengthens brand’s current
ones.
The role of marketing
Internal Vs. External Marketing

Source: https://www.hmpgloballearningnetwork.com/site/twc/articles/marketing-your-wound-care-program-budget
Role and functions of Marketing Department
1. Create and manage brand image
The brand image of a company defines how the public perceives them.A
marketing team works with other departments to decide what the brand
image for their company should be and how best to communicate that
identity to the public. This may involve creating a logo, slogan and color
scheme, choosing font preferences…etc.
2. Analyze marketing trends
Marketing departments may also perform market research to determine
what customers are most interested in and what their interests are likely to
be in the future. Marketers may look at trends regarding interests or
product use across different ages, genders and locations.
https://www.indeed.com/career-advice/career-
development/marketing-department-roles
Role and functions of Marketing Department

3. Create promotional strategy and content

Marketing departments plan and implement a wide variety of promotional
projects for their brand.
These may include emails, videos, graphics, social media posts, posters,
fliers, and in-person events. Besides planning and creating this content,
marketers keep track of how well different promotional tools have
performed so that they can revise their strategies continuously.
4. Monitor competition
Most brands are aware of other organizations that promote similar goods
or services. Marketing departments keep track of these competitors and
work to differentiate their own brands.
https://www.indeed.com/career-advice/career-
development/marketing-department-roles
Role and functions of Marketing Department

5.Communicate within the company

Companies may function best when each internal department can
communicate well with the others. Marketing teams may coordinate with a
variety of other departments such as sales, research and development,
production and accounting in areas like budget, image and schedule.
6. Manage marketing budget
A marketing department may create a budget to show how much they
intend to spend on upcoming or ongoing projects and forecast the return
on interest (ROI) for such projects. This can help company management
decide how much to allot to them or to the other organizational
departments.
https://www.indeed.com/career-advice/career-
development/marketing-department-roles
Week 2-Class Discussion
IMC Example: Small Business Saturday
In 2010, American Express teamed up with millions of small businesses to create a marketing
event that quickly became a tradition during the holiday shopping season in the U.S.: Small
Business Saturday. To make it successful, American Express and its small business network had
to create something out of nothing and then convince consumers to show up.
https://youtu.be/NgmLC6jbxfg

Discuss the case in groups

References
Books
S.A.Sherlekar, K.Nirmala Parsad and S.J.Salvadore Victor. (2010) Principles of Marketing. (Revised Edition). Himalaya
Publishing House: Mumbai

E-Library reference
Book: Principles of Marketing (Lumen) - Business LibreTexts
Introduction to Marketing I 2e (MKTG 1010) | OER Commons

Websites:
https://blog.simple.io/5-reasons-to-restructure-marketing-into-cross-functional-teams-this-year#:~:text=What%20are%
20cross%2Dfunctional%20teams,%2C%20technology%2C%20product%20and%20others
.
https://visualobjects.com/digital-marketing/blog/external-marketing