Kateb University

Master of Business Administration

Subject: Advanced Marketing

Management
Lecture: First Lecture
Lecturer: Musa Farooqi
Talking Points of First Lecture:
Introduction to Marketing
Marketing Definitions
Goals of Marketing
Scope of Marketing
Core Marketing Concept
Marketing Process
Concepts Under Which Firms Conduct
Marketing Activities
Evolution of Marketing
 Introduction to Marketing
 Production and marketing of goods and services
are essential for economic life.
 All organizations perform these two basic functions
to satisfy their commitments to their stakeholders
 Company commitment is to produce the want-
satisfying power of a good or service (called utility)
for the satisfaction of customer want and need.
 There are four basic types of utility: form, time,
place, and ownership.
 Marketing also involves analyzing consumer
needs, securing information needed to design and
produce goods or services that match buyer
expectations and creating and maintaining
relationships
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with customers.
 Introduction to Marketing
 Under modern concept, marketing start before
the production process and continue even after
the goods have been sold.
 Marketing management is the art and science of
choosing target markets and getting, keeping,
and growing customers through creating,
delivering, and communicating superior
customer value.
 It states that the purpose of all business is to
"find and keep customers". Furthermore, the only
way you can achieve this objective is to create a
competitive advantage.
 So, simply, we can say that the purpose of
marketing
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is to help connect the business to their
 Marketing Definitions
 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.
 Process by which individuals and groups obtain what they
need and want through creating and exchanging products
and value with others.
 Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably.
 Marketing is a social and managerial process by which
individuals and groups obtain that they want and need
through creating, offering and exchanging products of
value with others
 Marketing is the human activity directed at satisfying
human needs and wants through an exchange process.
 A
5 societal process by which individual’s and groups obtain
 Goals of Marketing
 Profit Oriented
Organizations:
 Increase profits by selling
products or services to
customers
 Non-Profit Oriented
Organizations:
 Promote the mission by
attracting
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donors or
 Scope of Marketing
 The scope of marketing is determined by the market
offering of an organization. Market offering is a
combination of goods, services or ideas, persons, place,
information offered to market to satisfy specific needs
and wants of people;
 Goods
 Services
 Ideas
 Persons
 Organizations
 Places
 Events
 Experience
 Real
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Estate
 Scope of Marketing
 1) Goods: - an item is considered good if it is tangible at a
something that could be touched, stored or seen. The
examples are bread, fruits, mobile phone and TV.
 2) Services: - A service is an intangible activity, benefit, or
item offered for economic value. Consists of services of
professional like doctor, advocate, chartered accountant,
electrician, insurance and etc. Intangibe
 3) Ideas: - an idea is a mental concept and it is intangible
in nature. Marketer makes an idea to change the behavior
of the target people in some way. For example, pulse polio
campaign, anti-smoking, campaigns are the example of
spreading specific idea to change the behavior of
perception of the target audience
 4) Persons: - marketing of person has become a
specialized job these days. Experts are employed to market
specific personality like politicians, actor, and painters. For
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example, the election campaign by the major political
 Scope of Marketing
 5) Organization: - many organization including social
political, religious, educational market them to build up
their reputation and to make people aware about their
activities.
 6) Places: - the marketing of places is also a common
feature of the day tour and travel agencies induce people
to visit various tourism and health resorts such as Zazai
Park .It is also called as destination marketing.
 7) Events: - event marketing promotes time base events
such as trade fair, social, central events, religious events.
Sports events and entertainment event.
 8) Experience: - this marketing includes promoting
activities that provide fun filled thrilling experience to
people for example the joy rides in amusement park, Water
Park at specified locations.
 9)
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Real estate: - real estate Builders and Developers use
organized marketing to promote their market offering for
 Core Marketing Concept
 Core concepts of marketing are the essential elements
that make the whole marketing system complete. They
are the essence to make a proper marketing system.
The idea behind the core or key concepts of marketing
is Philip Kotler who made it possible to understand how
marketing works and what are its essences:
 There are top 5 core concepts of marketing.
These are given and explained below.
 1. Needs, Wants & Demands
 2. Marketing Offerings
 3. Value & Satisfaction
 4. Exchanges
 5. Market
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 Core Marketing Concept
 1. Needs, Wants and Demands: Most basic or core
concept of fundamental marketing is that of human needs,
wants and demands. These are explaining below;
 A. Needs: Needs are the basic human requirements. Need is
there and it’s natural. People need food, air, water and
shelter to survive. People need food to satisfy their hunger,
water to quench their thirst. Of course need can be more
than just food, cultural need, shelter, recreation, education,
entertainment and lots of other things to sustain living. Need
are recurring such as, thirst, after quenching thirst, once
again thirst will occur and the same food and etc.
 Need is the difference you don’t have and what you need to
satisfy your need, the gap is called need. So in short need is
the result of an imbalance between actual and desired states.
When a need is not satisfied, a person will do one of two
things:
 Look for an object that will satisfy it; or (Developed Societies)
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 Core Marketing Concept
 B. Wants: Wants are the options of
satisfying needs that shaped by culture and
individual personality.
 Human beings must require food but what
type of food they will take that is depended
on cultural and social of individually.
 One person may like a burger but another
person might like rich food. Maximum
satisfaction of customers need depends on
the quality of a product.
 Our assets are limited but our wants are
many,
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for the reason marketers try to fulfill
 Core Marketing Concept
 C. Demands: Want becomes a
demand when backed up by an
individual’s ability to pay for it or
ability to consume something. In
demand, there is a vital relation with
time. Not all wants transfer into
demand. Wants become demand
when wants are supported by ability
and willingness to buy. Need is a one
kind of wish, want is a selected
process
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of need and the selected
 Core Marketing Concept
 2.Marketing Offerings: Marketing
Offerings are items/entities that make
ensure of consumers satisfaction.
Marketing offer is one kind of offer that
marketer makes as per requirements of a
consumer. The marketer try to offer
standard product that satisfy the need of
a consumer in terms of quality, quantity,
price etc. Marketing offering can be
‘tangible’ or intangible’. The marketing
offering is explaining below:
 A.
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Products
 Core Marketing Concept
 A. Products: Product is a set of goods that give
satisfaction to the customers (Form Utility). It
provides satisfaction of both physical and
psychological. Actual, product features are color,
branding, packaging, labeling, size etc.
 Therefore, product is very important for marketing
offering because marketing offering is fully
dependent on product.
 B. Services: All kinds of things that are offered to
a market to satisfy human needs or human wants
or consumers that is called Services. Service is a
work or benefit that is given from one party to
other party. Service is intangible. For example
service of doctor, lawyer, mason, tailor, hotel
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service, training service, security service,
 Core Marketing Concept
 3. Value and Satisfaction: Value and satisfaction
are very important on marketing core concept
 A. Value: Value is the capacity of a product or
service to satisfy the need and want. Normally
value is determined by the level of satisfaction of
customers. If satisfaction level is low, it means the
value of the product is low and consumer will leave
this product. Customers always think about value
of a product when they go to buy this product. It is
ever-present in their minds about value of a
product. Value is the benefit or worth a customer
perceives in relation to the price they pay.
Customers spend money, give time, power and
mental labor for buying a product. For this reason,
the
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consumer wants the best value of a product.
 Core Marketing Concept
 B. Satisfaction: Customer satisfaction refers to the
difference between the actual performance experienced
by a customer and the expectation of the customer.
Customer satisfaction is the degree to which products or
services provided by a company meet a customer's
expectations
 4. Exchanges: Exchange is the act of obtaining a desired
object from someone by offering something in return. For
an exchange to take place, several conditions must be
satisfied.
 At least two parties must participate, and each must have
something of value to the other.
 Each party also must want to deal with the other party and
each must be free to accept or reject the other’s offer.
 Finally, each party must be able to communicate and
deliver.
17 These conditions simply make exchange possible.
 Core Marketing Concept
 5. Market: A market is the set of actual
and potential buyers of a product. It may
exist in a physical environment as a
marketplace or in a virtual environment
(on the internet platform) as a market-
space. Market is a place where buyers and
sellers come in touch with detailed
information about what sellers offer and
what buyers ready to buy. Market is a
distinct location where different types of
transactions happens. In market, the
goods
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flow from the sellers to the buyers
and money flow from buyer to reach
 Marketing Process
 The marketing process refers to all the steps a
company takes to analyze market
opportunities, identify a target customer, and
create a multifaceted marketing strategy to
interact with those customers and qualify
leads for the sales team.
 Steps in the Marketing Process
 Step 1: Understand the marketplace and your
customers
 Step 2: Developing a customer-driven
marketing strategy
 Step 3: Deliver high customer value
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 Step 4: Grow profitable customer relations
 Marketing Process
 Step 1: Understand the marketplace and your
customers
 Understanding your marketplace is crucial before
beginning the marketing process
 Basic questions about customers, such as
demographics, income, purchasing power, and
spending habits on specific products or services,
must be answered.
 The marketing strategy will significantly vary based
on whether you choose to focus on higher unit
sales volume with lower prices or on lower sales
with higher prices.
 Knowing the target market's preferences and
behaviors
20 can help
 Marketing Process
 Step 2: Develop a Customer-Driven
Marketing Strategy
 Marketing strategy is a business's overall
approach to allocate resources effectively to
attract and retain customers, with an emphasis
on a customer-driven strategy.
 A customer-driven strategy involves analyzing
prospective customers' needs before developing
products or services.
 In a customer-driven strategy, the focus shifts
from products to users, making customers'
needs the primary consideration.
 The
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goal in a customer-driven strategy is to
understand and meet users' wants and needs
 Marketing Process
 Customer-driven strategies emphasize
being customer-centric rather than product-
centric.
 Building a mutually beneficial relationship
with prospective customers is essential for
the success of a customer-driven marketing
strategy.
 By focusing on customers and fulfilling their
requirements, companies aim to create
long-term customer loyalty.
 Understanding user preferences and
anticipating
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their needs allows businesses
 Marketing Process
 Step 3: Deliver High Customer Value
 Customers have myriad buying options and
alternatives today.
 Given that, how can a company attract and—
even more importantly—retain its customers?
 The answer is relatively simple: you give them
value for their money.
 By definition, customer value is the ratio
between the perceived benefits and costs
incurred by the customer in acquiring your
products or services.
 Formula for value:
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 Marketing Process
 But “value” from the customer’s
perspective is a complex term, because
we’re really considering four different
values types:
 Functional value: what the product
“does” for the customer in terms of solving
a particular want or need
 Monetary value: what the product actually
costs relative to its perceived worth
 Social value: how much owning the
product allows the customer to connect
with
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others in a society
 Marketing Process
 Step 4: Grow Profitable Customer Relations
 This step in the marketing process is where
marketers acquire, keep, and grow customer
relationships. Successful marketers know that
acquiring customers is one of the hardest (One of
the most expensive elements of marketing).
However, when you know clearly who those
potential customers are, you can more effectively
determine how to reach them, thus maximizing
your marketing dollars.
 It isn’t enough to have a one-and-done sale. You
want repeat buyers, so marketers need to remind
customers about the company’s products and/or
services
25 and how those products and services
 Marketing Process
 Marketers need to consider how to reach
customers about their offerings and make it
easy and convenient for those customers to
make continued purchases.
 Following steps are adopted for growing
profitable customer relationships:
 Understand customer needs and goals.
 Communicate clearly and regularly.
 Deliver on your promises and exceed
expectations.
 Seek feedback and improve continuously.
 Nurture and grow your relationships.
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 Leverage technology and tools.
 Marketing Process
 Step 5: Capture Customer Value in the Form of
Profits/Customer Equity
 Successful companies try to delight their customers
and capture value from customers.
 By capturing customer value, firms build a long life
relationship with their customers.
 Satisfied customers tend to buy more and to be loyal
to the company which leads greater long-run profits.
 To aim the positive outcome of creating value,
companies tend to create customer loyalty and
retention to capture customer lifetime value
(Customer Equity); they tend to increase their share
of the market through increasing their share of the
customer; and finally, build customer equity through
a27 sustainable and organic growth.
 Concepts Under Which Firms
Conduct Marketing Activities
 The marketing concept is a strategy that companies
implement to satisfy their customers' needs, increase
sales, maximize profit and get
ahead of their competition or
 The Marketing department
designs strategies that will build
profitable engagements and
relationships with their target
market and buyer.
 But which philosophy is the best for your company, and
which matches your marketing strategy?

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 Concepts Under Which Firms
Conduct Marketing Activities
 Production Concept
• The idea behind this was – consumer
prefer products that are widely
available and inexpensive
• Company focus on mass production,
low cost and mass distribution.
• This concept was used by the
marketer for the expansion of market
• The company tries to achieve the
economies of scale
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 Concepts Under Which Firms
Conduct Marketing Activities
• Product Concept:
• Consumer prefer high quality product with
innovative features (USP) rather than
cheap production/consumers favors those
product that offer the most quality or
innovative features.
• Marketer focus is on doing a lot of
research and development on product in
terms of value, package, shape, features
and etc
• The common belief in this concept that a
good
30 product will definitely make its own
 Concepts Under Which Firms
Conduct Marketing Activities
 Selling Concept
 Consumers ,if left alone, will
ordinarily not buy enough of the
company’s products.
 The company must therefore,
undertake and aggressive selling
and promotion effort.
 The aim is to sell what
companies make rather that
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 Concepts Under Which Firms
Conduct Marketing Activities
• Marketing Concept:
• Basic motto of marketing is the satisfaction
of customer’s needs.
• The idea is to find the right product for the
consumers rather than right customer for
the product.
• Identify the need of the customer and
develop the product accordingly.
• In this concept, pull marketing will work
rather than push marketing.
• Build profit through customer satisfaction
and
32 loyalty.
 Concepts Under Which Firms
Conduct Marketing Activities

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 Concepts Under Which Firms
Conduct Marketing Activities
 Societal Concept:
 Societal marketing concept or social
marketing concept ensures that companies
do not neglect the welfare of the society in
the race to satisfy consumers and gain
more market share.
 Societal marketing puts human welfare first,
not profit. Social responsibility is
paramount, so a Societal Marketing Concept
develops a marketing strategy that adds
value to customers to improve the well-
being of customers and society. It is an
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advanced form of corporate social
 Evolution of Marketing
 Marketing evolution refers to the distinct
phases that businesses have gone through as
they continued to seek new and innovative
ways to achieve, maintain and increase
revenue through customer sales and
partnerships.
 When Did the Marketing Discipline Begin? To
get a rough sense of the origins of marketing,
let’s turn to the Online Etymology Dictionary.
The authors trace this term back to the 1560s.
 While it took some time for the field to move
from a product-centric approach to what we
understand
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as a marketing orientation today,
the roots of this discipline go back to the turn
 Evolution of Marketing
Stages in the evolution of
marketing indicated below:
 Production orientation/Mass
production(1860s-1920s)
 Sales orientation (1920s – 1940s)
 Marketing orientation (1940s -
1970s)
 Relationship orientation (1970s to
Today)
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 Evolution of Marketing
 Production orientation/Mass production:
(1860s-1920s)
 The Production Era of marketing is when
companies mass-produced products in hopes of
selling them to as many people as possible.
 This approach to marketing was all about making
products cheaply and efficiently so that companies
can make a profit.
 The assumption was that customers can be
satisfied with reasonable quality and reasonable
priced product by maintaining the availability of
sufficient quantity of product in the market place.
 The drawback was that the interest of the
consumer
37 was ignored.
 Evolution of Marketing
 Sales Orientation Era: (1920s – 1940s)
 The sales era was characterized by intense
competition between organizations producing similar
products. Industrialized production processes
resulted in a wide variety of produced goods in large
quantities, reducing prices for consumers.
 More consumers were able to access products due to
these decreased prices.
 Firms assumed that customers will resist purchasing
goods and services not deemed essential and that
the task of selling and advertising is to convince
them to buy. People will buy more goods/services if
aggressive sales techniques are used and customers
rating will be more for sales oriented organizations.
 Problem
38 was that wants/needs of customers were not
 Evolution of Marketing
 Marketing Orientation Era: (1940s -1970s)
 The marketing era was characterized by the
business philosophy incorporating the marketing
concept that emphasized first determining unmet
consumer needs and then designing a system for
satisfying them.
 The keyword is customer orientation. All facets of
the organization must contribute first to assessing
and then to satisfying customer needs and wants.
 Limitations to marketing concepts are;
 Organization constraint (All needs of customer
cannot be satisfied)
 Societal constraints (excess restrictions)
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 Constraint to innovation
 Evolution of Marketing
 Relationship Marketing Orientation Era:
(1970s to Today)
 Forging long-term partnerships with customers
and contributing to their success is called
relationship marketing.
 It involves methods for improving customer
experiences and focuses on attaining long-term
customer loyalty by getting customers
emotionally involved with the business.
 It focus to increase customer lifetime value (CLV),
improved customer retention, targeted campaigns
with higher conversions.
 Relationship marketing invests in long-term goals
to
40 maintain loyal customers with future
 Knowledge Check
 1. Think of a recent purchase you made. How did the
company provide you with the following utilities?
 Form_______________________
 Time_______________________
 Place_______________________
 Ownership__________________
 2. Coca-Cola’s mission is to refresh the world, and to that
end, it has ensured that you can buy a Coke product at
numerous locations—vending machines, convenience
stores, restaurant fountains, stadiums, etc. What type of
utility has marketing created through this process?
 a. Form utility
 b. Time utility
 c. Place utility
 d. Possession utility
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 Knowledge Check
 3. Which of the following provides the most complete
definition of marketing?
 a. Marketing creates value.
 b. Marketing is made up of every process involved in moving
a product or service from your organization to the consumer.
 c. Marketing includes distribution decisions.
 d. Marketing is about building relationships.
 4. The total potential profits a company earns from its
current and potential customers is known as ________.
 a. customer equity
 b. the value proposition
 c. customer value
 d. the marketing process

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 Knowledge Check
 5. At which step in the marketing process would the
lifetime values to a company’s customers be
considered?
 a. Developing a customer-driven marketing strategy
 b. Delivering high customer value
 c. Growing profitable customer relations
 d. Capturing value from customers

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 End of the First Chapter

Thank you

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