1. Introduction to Marketing

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1. Introduction to Marketing
Ing. Janka Petrovicová, PhD.
Department of Corporate Economics and Management

• Faculty of Economics
• Matej Bel University
• Banská Bystrica Slovakia

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List of topics and assignment specifications for
the subject Marketing

• Marketing vs. production-oriented firms
• Analysis of competition objects and methods
• Analysis of customer objects and methods
• Analysis of external macroenvironment objects
  and methods
• Analysis of microenvironment objects and
  methods
• Product mix analysis object and techniques
• Price mix analysis
• Distribution mix analysis
• Communication mix analysis
• Position of marketing within organizational
  structure of the firm
• STP process emphasis on segmentation principles

• 12-15p. (without title page), cca 4000-5000 words
• Times New Roman, 12pt., 1 line-spacing
• 2,5 cm, alignment
• Introduction
• Chapters
• Conclusion
• References

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Lesson Aims

• By the end of this lesson students should be able
  to
• Offer alternative definitions of marketing, its
  function, nature and scope
• Describe in brief the roots and development of
  the marketing discipline
• Explain difference between a production
  orientation and marketing orientation
• Adopt value creation process

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Definition of Marketing

• Management must think of itself not as producing
  products, but as providing customer-creating
  value satisfactions. It must push this ides into
  every nook and cranny of the organization. It has
  to do this continuously and with the kind of
  flair that excites and stimulates the people in
  it.
• Theodore Levitt

• Marketing is
• a social and managerial process by which
  individuals and groups obtain what they need and
  want through creating, offering and exchanging
  products of value with others.
• 
  Doyle (2002)

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Exchange Process
Possible market., Prospective m., Latent m., Real
m.
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Needs, Wants, Demands and Offers

• Needs basic requirements that human seek to
  satisfy, driven by our biological and social
  make-up.
• Wants desire for specific products to satisfy
  needs. Shaped by social and cultural forces,
  media, marketing, etc...
• Demands want for a specific product backed up
  by the ability and willingness to pay for it.
• Offers anything with the ability to satisfy
  ones needs or wants

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Read the following statements and tick those that
apply to you. There are no right or wrong
answers.

• __ A I am successful in life and/or work, and
  Im recognized by my peers for being so. Im
  satisfied with the responsibility and role that I
  have in life and/or work, my status and
  reputation, and my level of self-esteem.
• __ B I am part of, and loved by, my family. I
  have good relationships with my friends and
  colleagues - they accept me for who I am.
• __ C My aim is self-knowledge and enlightenment.
  The most important thing to me is realizing my
  ultimate personal potential. I seek and welcome
  peak experiences.
• __ D I generally feel safe and secure - job,
  home, etc - and protected from harm. My life
  generally has routine and structure - long
  periods of uncontrollable chaos are rare or
  non-existent.
• __ E Aside from dieting and personal choice, I
  never starve through lack of food, nor lack of
  money to buy food. Aside from the usual trauma of
  moving house, I have no worry at all about having
  somewhere to live - I have a roof over my head.

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MASLOW PYRAMIDE OF NEEDS
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The Needs Hierarchy 5 Levels

• Maslows theory maintains that a person does not
  feel a higher need until the needs of the current
  level have been satisfied.

• Physiological Needs food, air, water, clothing,
  sex
• Safety Needs security, stability, protection
  from physical and emotional harm
• Belongingness Love Needs affection, belonging,
  acceptance, friendship, community, inclusion
• Esteem Needs (Internal ones are need for
  self-respect, confidence, autonomy, and
  achievement. External ones are need for respect
  of others, status, fame, glory, recognition and
  attention.) Maslow feels these are the roots to
  many, if not most of our psychological problems.
• Self-actualization (doing that which maximizes
  ones potential and fulfills ones innate
  aspirations)

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Roots and Concepts of Marketing
Marketing accepted as a management function in
1950s in USA
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Production Orientation
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Marketing Orientation
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Marketing Nowadays

• New applied in a vast array of differing
  environments (consumer, industrial, service,
  SMEs, non-profit organizations)

• 1950s Consumer Marketing
• 1960s Industrial Marketing
• 1970s Nonprofit and Societal Marketing
• 1980s Services Marketing
• 1990s Relationship Marketing
• 2000s New Media Marketing

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Customer Value

• Delivering Value requires
• Understanding customer (their entire purchase and
  consumption) predicting future needs and wants.
• Understanding and exploiting sources of
  competitive advantage to be better than the
  competition.
• Understanding own organisation costs,
  operations, profitability
• A market oriented or customer centric business

• The challenge of delivering value consistently to
  the sophisticated customer is awesome. Piercy
  (2002)
• Because customers are increasingly
• Fickle
• Fed up with company excuses
• Demanding both quality and cheap
• Demanding customisation
• Time-sensitive
• Want entertaining at the same time
• More informative...

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Creating Customer Value

• Product benefits
• Service benefits
• Relational benefits
• Image benefits

• Monetary costs
• Time costs
• Energy costs
• Psychological costs

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Effective Marketing Mix and Customer Needs
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• Marketing concept
• Achievement of corporate goals through meeting
  and exceeding customer needs better than
  competition

Customer Orientation Activities focused
on providing customer satisfaction
Integrated Effort All staff accept responsibility
for creating customer satisfaction
Goal Achievement Belief that corporate goals can
be achieved via customer satisfaction