Principles of Marketing

Principles of Marketing
Jwan Mawlood
Department of Management
2nd stage
22 September 2020
Outline
• Introduction of Marketing
• Marketing Concepts
• Strategic Marketing Plan
• Differences between Selling and Marketing
• Significance of Marketing
Introduction to Marketing
What is Marketing?
“Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.”
Ama, 2013
What is the purpose of marketing?

• Capturing customer Value
Needs, Wants, and Demands
Experiences, Offerings, and Marketing Myopia
It is critical to understand that when addressing customer wants, needs, and
demands, there are many different dimensions to keep in mind
• The offering
• The Experience
• The Service
Ignoring these different factors and focusing only on the physical product
leads to “Marketing Myopia”
Customer Value and Satisfaction
• There is a very careful balance that a marketer must constantly try to find
• The satisfaction of the customer is usually based on the following concept:

Satisfaction= Reality – Expectations
• Marketers must balance between setting high expectations and

reasonable expectations to deliver the highest possible customer value
Meaning of Market and Marketing
• A market is any such person, group or organization which has existing or
potential exchange relationship. It starts with customers and ends with
customers.
• Marketing deals with customers. It is delivery of customer satisfaction at a
profit. The twofold goal of marketing is to attract new customers by
promising superior value and to keep current customers by delivering
satisfaction.
Activity: how can you convince a customer to buy these products?
Marketing Concepts
Marketing concept has undergone a great change over the period. The
different stages of change are explained below.
1. PRODUCTION CONCEPT OF MARKETING

This is the oldest concept of marketing. It emphasizes that consumers will
favour those products that are available and highly affordable and therefore
management should focus on improving production and distribution
activities.
I. the demand for a products exceeds the supply and
II. the product cost is high.
Marketing Concepts
2. PRODUCT CONCEPT OF MARKETING
This concept believed that the consumers will favour those products that
offer the best quality, performance and features and therefore the
organization should devote its energy to making continuous product
improvements.
3. SELLING CONCEPT OF MARKETING

In this concept the importance of sales efforts to be undertaken to make the
consumers buy the products which otherwise will remain unsold. So every
organization has to make substantial selling and promotional effort to push
the sales of its product.
Marketing Concepts
4. PROFIT CONCEPT OF MARKTING
According to profit concept of marketing, there is a necessity for the
marketing function to generate profit for the organization. But it is the
production activities which would determine the cost of manufacturing and
so profit generation becomes the ultimate responsibility of the marketing
function.
5. MODERN MARKETING CONCEPT

The modern marketing concept revolves around customer. It focuses on the
ultimate customer and undertakes to meet his requirements in full. For this
the organization has to correctly understand the customer requirement and
deliver the desired products more effectively and efficiently than the
competitors.
Marketing Concepts
• 6. SOCIAL MARKETING CONCEPT
This philosophy of marketing underlines the importance of marketing
activities to support and ensure social well-being. Marketing should
determine the needs, wants and interests of target markets and deliver the
desired satisfaction effectively. Only through this marketing can keep the
competitors at bay.
Strategic Marketing Planning
Stanton defines strategic marketing planning as the process of setting
marketing goals, selecting target markets and designing a marketing mix to
satisfy these markets and achieve these goals.
According to Staton, the six stages involved in strategic marketing planning

process are:
1. Situational analysis-with a purpose to determine where we are and
where are we going.
2. Determine the objectives – these goals should be specific and realistic
3. Select and measure target markets-identify present and potential
customers
Strategic Marketing Planning
4. Design marketing mix strategies and tactics – How do we get to where we
want to go.
5. Prepare annual marketing plan-the how to do it guide to yearly marketing
operations.
6. Implementation and evaluation – How are we doing? Did we do what we
said we would do?
Difference between Selling and
Marketing
Selling is an important activity of Marketing. It consists in transferring goods
and services to the customers. The main emphasis in selling is on profit
maximization through sales volume.
Marketing on the other hand is a broader area and its functions as a whole
aim at customer satisfaction and profits through such customer satisfaction.
Again, in Marketing, the selling efforts are customer – oriented but in selling
the efforts is company oriented.
Difference between Selling and
Marketing
The difference of marketing and selling can be shown as follows:
Selling Marketing
1. Selling starts with the seller and is 1. Marketing starts with the buyer and
preoccupied all the time with the needs of focuses constantly on the needs of the
the seller. buyer.
2. Selling starts with the corporation‟s 2. Under marketing, all activities and
existing activities and products. products take their direction from the
consumer and his needs.
3. Views business as a good producing 3. Views business as a customer satisfying
process. process.
4. The seller determines what „product‟ is 4. What should be offered as a product is
to be offered. determined by the buyer; the seller
makes a total product offering that would
match and satisfy the identified needs of
the identified customers.
5. Cost determines price. 5. Consumer determines price; price
determines costs.
Significance of Marketing
Customer decides as to what products suits their needs. Education, media,
etc has changed the type of goods required by customers. Especially in the
last decade there is total shift of goods required by the customers.
The product satisfy customer needs and wants and also remove hindrances
between the marketers and customers by creating utilities for them by adding
value to the product.
Thank you

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Principles of Marketing

“Marketing is the activity, set of institutions, and processes for creating,

What is the purpose of marketing?

• The satisfaction of the customer is usually based on the following concept:

• Marketers must balance between setting high expectations and

1. PRODUCTION CONCEPT OF MARKETING

3. SELLING CONCEPT OF MARKETING

5. MODERN MARKETING CONCEPT

According to Staton, the six stages involved in strategic marketing planning

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