1. Lecture No: 1
Introduction to Marketing
Course Facilitator: Khurshid Alam
Swati
Email your query to:
Khurshidalamswati@yahoo.com

2. 1 st Week Objectives
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Definition of Marketing
Importance and scope of Marketing
Nature and Concept of Marketing
Marketing and the society
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3. The New Economy Trends
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Extensive increase in buying power
A greater variety of goods and services
A greater amount of information about
practically anything
A greater ease in interacting and
placing and receiving orders
An ability to compare notes on products
and services
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4. What is
Marketing…???
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5. Kotler on Marketing
The future is not ahead
of us. It has already
happened.
Unfortunately, it is
unequally distributed
among companies,
industries and nations
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6. Important Terminologies
To explain marketing definition, we
examine the following important terms:
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Needs, wants, and demands
Products and services
Value, satisfaction and quality
Exchange, transactions, and relationships
Markets
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7. Needs, Wants, and
Demands
Needs:
 The most basic concept underlying marketing is that of human
needs.
 Human have many complex needs:
 Physical needs for food, clothing, warmth, and safety
 Social needs or belonging and affection
 Individual needs for knowledge and self – expression
 E.g. Basic Needs- Hunger, Thirst. Such type product don’t
need pushing
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8. Wants
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(Cont’d)
Want are the form taken by human needs as they are
shaped by culture and individual personality
People have almost unlimited wants but limited
resources
They want to choose products that provide the most
value and satisfaction for their money
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E.g. Thirst – Water, Milk, Cold Drink, Coffee etc
E.g. Baby Need is milk but he/she want CANDY etc
Only Desire
 Create value and image of some
product
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9. Demands
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(Cont’d)
When backed by buying power, wants
become demands
Consumers view products as bundles of
benefits and choose products that give them
the best bundle for their money
Wants converts to demand when you have
purchasing power
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E.g. Buying BMW, Stay in 7 star hotel
Desire plus Purchasing power
Such Type products need Pushing by attracting
potential buyers
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10. Needs, Wants and
Demands
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11. Products and Services
Product:
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Anything that can be offered to a market to satisfy a
need or want
Tangible - building, vehicle, gadget, or clothing
Intangible- insurance policy, JPG and MP3 files
Result ownership of some thing
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12. Services
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Which are activities or benefits offered for
sale that are essentially intangible and do not
result in the ownership of anything
Service it will not be uniform and will vary
according to who is performing, where it is
performed and on whom/what it is being
performed
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Hotel Service, Rescue Service
Should be efficient
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13. Values, Satisfaction, and
Quality
Value:
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Sum total of benefits which a vendor promises a customer
Perception about a product and its price
The difference between what a customer gets from a product,
and what he or she has to give in order to get it
Satisfaction:
 Customer satisfaction depends on a product’s perceived
performance in delivering value relative to a buyer’s expectation
 If the product’s performance falls short of the customer’s
expectations, the buyer is dissatisfied
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14. Quality
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(Cont’d)
Customer satisfaction is closely linked to
quality
Quality has a direct impact on product
performance
Quality can be defined as “freedom from
defects”
TQM programs designed to constantly
improve the quality of products, services, and
marketing processes
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15. Exchange, Transactions,
and Relationships
Exchange :
 The act of obtaining a desired object from someone
by offering something in return
Transaction :
 A trade between two parties that involves at least two
things agreed – upon conditions a time of agreement,
and a place of agreement
 Cash involvement
Relationship marketing :
 The process of creating, maintaining, and enhancing
strong, value – laden relationships with customers
and other stakeholders
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16. Markets
The set of all actual and potential buyers of a
product or service
Communication
Industry
(a collection
of sellers)
Products / Services
Money
Market
(a collection
of buyers)
Information
A simple marketing system
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17. What is a Market ?
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According to Kotler (2004), “a market consist
of all the potential customers sharing a
particular need or want who might be willing
and able to engage in exchange to satisfy
that need or want”
Source: Kotler, P. (2004), Marketing Management,
Prentice-Hall, Englewood Cliff, NJ
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18. What is Marketing?
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Marketing is the human activity directed
at satisfying human needs and wants
through an exchange process
OLD view
of marketing:
(Kotler 1980)
NEW view
of marketing:
Making a sale —
“Telling and selling”
Satisfying
customer needs
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19. “The right product, in the right place,
at the right time, and at the right
price”
Adcock et al
•Managing Profitable customer relationships
•The process by which company create
value for customers and build strong
customer relationships in order to capture
value from customers in return.
•E.g. Wall Mart- Always Low Price. Always
•Dell: Be Direct- Door Step Service

20. Marketing Defined - Importance
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Many people think of marketing only as selling and advertising
Selling and advertising are only the tip of the marketing ice-berg
Marketing is one of three key core functions that are central to
all organizations
Marketers act as the customers’ voice within the firm and
marketers are responsible for many more decisions than just
advertising or sales:
1.
Analyze industries to identify emerging trends
2.
Determine which national and international markets to
enter or exit
3.
Conduct research to understand consumer behavior
4.
Design integrated marketing mixes – products, prices,
channels of distribution, and promotion programs
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21. What is Marketed?
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Goods – Laptops, Mobiles, Printers
Services – Hotel, Hospital, Repairing
Events - Sports event, music festival, fair or concert
Experiences – Sharing ideas and plans
Persons – Cultivate attention towards a person
Places – Swat, Pakistan Monument
Organizations- Dell, Apple, Nokia, Q Mobile
Information – Media , Advertising and publicity
Ideas – Research & Development
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22. Marketing Process
Understand the market place and customer need and wants
Design customer driven and attractive marketing strategy
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Ads, Publicity, Sampling etc
Mufti Ihsan Scandal - Religious oriented strategies
Construct integrated marketing program that delivers superior
value
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Create image of company and product or service
Personal marketing, E marketing etc
Build profitable relationship and create customer happiness
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Take feedback after some time
Long term customer relationship
Capture value from customer in return
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Tell to family, friends and society
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23. CONTROLLABLE FACTORS
AFFECTING MARKETING
DECISIONS
The Four P’s
-the “arrow”
Price
Price
Promotion
Promotion
Place
Place
Product
Product
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24. UNCONTROLLABLE FACTORS
AFFECTING MARKETING
DECISIONS
Social
Social
Natural
Natural
Economic
Economic
External
External
Environmental
Environmental
Factors
Factors
Technologic
Technologic
Political and Legal
Political and Legal
Competitive
Competitive
Helps identify market opportunities
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25. The Goal of Marketing is:
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To attract new customer by promising superior value,
and to keep current customers by delivering
satisfaction
Marketing, more than any other business function,
deals with customers
Creating customer value and satisfaction are at the
very heart of modern marketing thinking and practice
Some people believe that only large business
organizations operating in highly developed economies
use marketing, but sound marketing is critical to the
success of every organization – whether large or small,
for profit or non – profit, domestic or global
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26. The Goal of Marketing is:
(Cont’d)
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Who are our existing / potential customers?
What are their current / future needs?
How can we satisfy these needs?
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Can we offer a product/ service that the customer would
value?
Can we communicate with our customers?
Can we deliver a competitive product of service?
Why should customers buy from us?
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