1. Fundamental of
Marketing
MKT243
Chapter 1
Introduction
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2. Topic Outline
• What Is Marketing?
• Understand the Marketplace and Customer
Needs
• Rules of Exchange
• What is Marketing Management?
• Marketing Management Orientation/
Philosophies
• Differences between sales and market
orientation
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3. What is Marketing?
• Marketing is a process by which
companies create value for customers and
build strong customer relationships to
capture value from customers in return
(Kotler. P & Armstong. G, 2008).
• Marketing is an organization function and
a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and the stakeholder.
(McDaniel, Lamb, Hair, 2008)
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4. Understanding the Marketplace
and Customer Needs
Core Concepts
• Customer needs, wants, and
demands
• Market offerings
• Value and satisfaction
• Exchanges and relationships
• Markets
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5. Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
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6. Understanding the Marketplace
and Customer Needs
Exchange is the act of obtaining a
desired object from someone by
offering something in return
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7. Rules of exchange
• Five conditions must be satisfied for an exchange to
take place:
1. There must be at least two parties.
2. Each party has something that might be of value to the
other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange
offer.
5. Each party believes it is appropriate or desirable to
deal with the other party.
• Exchange may not take place even if all of these
conditions exist, but these conditions are necessary for
exchange to be possible.
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8. Understanding the Marketplace
and Customer Needs
Markets are the set of actual
and potential buyers of a
product
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9. What is the Marketing
Management?
Marketing management is the art
and science of choosing target
markets and building profitable
relationships with them
– What customers will we serve?
– How can we best serve these
customers?
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10. Marketing Management
Orientations/ Philosophies
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11. Marketing Management
Orientations
• Production concept is the idea that
consumers will favor products that are
available or highly affordable
• Product concept is the idea that
consumers will favor products that offer
the most quality, performance, and
features. Organization should therefore
devote its energy to making continuous
product improvements.
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12. Cont…
• Selling concept is the idea that
consumers will not buy enough of
the firm’s products unless it
undertakes a large scale selling and
promotion effort
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13. Cont…
• Marketing concept is the
idea that achieving
organizational goals
depends on knowing the
needs and wants of the
target markets and
delivering the desired
satisfactions better than
competitors do
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14. Cont…
•Societal marketing concept
is the idea that a company
should make good marketing
decisions by considering
consumers’ wants, the
company’s requirements,
consumers’ long-term
interests, and society’s long-
run interests
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15. Differences between sales and
market orientation
• The Organization’s Focus
• Customer value
• Customer Satisfaction
• Building relationships
• The firm’s business
• Those to whom the product is directed
• The firm’s primary goal
• Tools the organization uses to achieve
its goals
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16. The Marketing Process
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17. Trends in Marketing
Major Developments
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