PRINCIPLES

PRINCIPLES OF
OF
MARKETING
MARKETING
ASHRAFUL
ASHRAFUL ISLAM
ISLAM
Senior
SeniorGroup
GroupManager
Manager
International
InternationalMarketing
Marketing
Incepta
InceptaPharmaceuticals
PharmaceuticalsLtd.
Ltd.
• What is Marketing ?

Old sense: making a sale – “telling and selling”

New sense: satisfying customer needs

2
• Marketing Defined

• Marketing is a societal process by which

individuals and groups obtain what they need and
want through creating, offering, and freely
exchanging products and services of value with
others.
- Philip Kotler

3
• Core marketing concepts
Needs,Wants,
Needs,Wants,
and
and Demands
Demands

Core Products
Markets
Markets Productsand
and
Marketing Services
Services
Concepts

Exchange,
Exchange, Value,
Value,
Transactions,
Transactions, Satisfaction,
Satisfaction,
and
andrelationships
relationships
4
• Needs,Wants and Demands

• Needs
Needs States of felt deprivation.

• Wants
Wants The form taken by human needs as they
are shaped by culture and individual
personality.
Demands
Demands
• Human wants that are backed by buying
power .

5
• Product and Service

•Product
Product Anything that can be offered to a market
for attention, acquisition, use or consumption that
can satisfy a want or need.

•Service
Service Any activity or benefit that one party
can offer to another that is essentially intangible
and does not result in the ownership of anything.

6
• Value, Satisfaction

• Customer
Customervalue
value Value is the ratio between
what the customer gets and what he gives.

Customer
Customer satisfaction
satisfaction
• The extent to which a
product’s perceived performance matches a
buyer’s expectations.

7
• Exchange, Transaction and Relationships

Exchange
Exchange the act of obtaining a desired
object from someone by offering something in
return.

Transactions
Transactions a trade between tow parties that
involves at least tow things of agreement, and a
place of agreement.

8
• Relationship marketing
The process of creating, maintaining, and
enhancing strong, value-laden relationships with
customers and other stakeholders.

• Market
the set of all actual and potential buyers of
a product or service.

9
• A simple marketing system

Communication

Industry
Industry Products-service
Products-service Market
Market
(a
(acollection
collection (a
(acollection
collection
of
of sellers) Money
Money of
sellers) of buyers)
buyers)

Information

10
• Main actors and forces in a modern marketing
system

Company
Company
(marketer)
(marketer)
Marketing
Marketing End
Enduser
user
Suppliers
Suppliers intermediaries
intermediaries market
market
Competitors
Competitors

Environment

11
• Demarketing

Marketing to reduce demand temporarily; the

aim is not to destroy demand but only to reduce or shift
it.

12
 The Four Ps
The Four Cs

Marketing
Mix
Place
Place
Product
Convenience
Customer
Solution Price
Price Promotion
Promotion

Customer Communication
Cost
• Marketing management philosophies

Production
Productionconcept
concept
Product
Productconcept
concept
Selling
Sellingconcept
concept
Marketing
Marketingconcept
concept
Social
Socialmarketing
marketingconcept
concept

14
• Production concept
The management should only focus on
improving production and distribution efficiency.

• Product concept
The organization should devote its energy to
making continuous product improvements.

15
• Selling concept
The consumers will not buy enough of the
organization’s products unless the organization
undertakes a large-scale selling and promotion
effort.
• Marketing concept
To achieving organization’s goals depends on
determining the needs and wants of target markets
and delivering the desired satisfactions more
effectively and efficiently than competitors do.

16
• The selling and marketing concepts contrasted
Starting
Focus Means Ends
point

Existing Selling and Profit through

Factory
Factory products promoting sales volume

The selling concept

Profit through
Customer Integrated
Market Customer
needs Marketing satisfaction

The marketing concept

17
• Societal marketing concept

The organization should deliver the desired

satisfactions to their target market effectively and
efficiently in a way that maintains or improves the
consumer’s and society’s well being.

18
• Societal Marketing concept

Society
(Human welfare)

Social
Social
marketing
marketing
Customers concept
concept Company
(Wants satisfaction) (Profits)

Three considerations underlying the Societal marketing concept

19
• Bionomics marketing concept

To find the market demands that firm’s

resources can be match to.

“6R”:
Right time , Right place, Right product,
Right price, Right way, to Right customer

20
• Old vs New Marketing Thinking
The Old Marketing The New Marketing Thinking
Thinking
Connections with customers Connections with customers
Be sales and product centered Be market and customer centered
Practice mass marketing Target selected market segments or individuals
Focus on products and sales Focus on customer satisfaction and value
Make sales to customer Develop customer relationships
Get new customers Keep old customers
Grow share of market Grow share of customer
Serve any customer Serve profitable customer, “fire” losing ones
Communicate through mass media Connect with customers directly
Make standardized products Develop customized products
Connections with marketing Connections with marketing
partners partners
Leave customer satisfaction and value to Enlist all departments in the cause of customer
sales and marketing satisfaction and value
Go it alone Partner with other firm
Connection with the world Connection with the world around
around us us
Market locally Market locally and globally
Assume profit responsibility Assume social and environmental responsibility
Market for profits Market for nonprofits 21
• Marketing management

The analysis, planning,

implementation, and control of program
designed to create, build and maintain
beneficial exchanges with target buyers for
the purpose of achieving organizational
objectives.

22
Marketing management

• The art and science of choosing target

markets and building profitable relationships
with them. This involves getting, keeping,
and growing customers through creating,
delivering and communicating superior
customer value. Thus it involves managing
demand, which in turn involves managing
customer relationships.
23
• The tasks of Marketing management

Building
Building
Demand Profitable Marketing
Marketing
Demand Profitable
Management Customer Management
Management
Management Customer
Relationships Practice
Practice
Relationships

24
• Marketing practice stages

Entrepreneurial
Entrepreneurial Formulated
Formulated Intrepreneurial
Intrepreneurial
Marketing
Marketing Marketing
Marketing Marketing
Marketing

25
• The company’s strategic planning

Business unit
Corporate level Product and
market

Setting
Setting
Defining
Defining Designing
Designing Planning,marketing
Planning,marketing
company
company
the
thecompany
company the
thebusiness
business And
Andother
other
objectives
objectives Functional
mission
mission portfolio
portfolio Functionalstrategies
strategies
and
andgoals
goals

26
• The BCG matrix (P.47)
Marketing growth rate

Star Question mark

high
Low

Cash cow Dog

High low
Relative market share

27
• Product-market expansion grit
Existing New
products products

Existing Market product

markets penetration development

New Market
Diversification
markets development

28
The marketing process
Marketing Competitors
intermediaries
M
pl ark

ys g
al tin
Product an et
ni ing
an rke
is
a ng
M

n
me k e t
tio

Ta keti
m
ar
nta

r g ng
s eg M a r
Profitable

et

Price
Place

Customer
relationships

Market

on
positioning

nt g
me tin
M ont

ati
ar ro

ple rke
c
ke l

im Ma
Promotion
tin
g

Suppliers Customers 29
• Marketing environment

The factors and forces outside marketing

that affect marketing management’s ability
to develop and maintain successful
transactions with its target customers.

30
• Marketing environment

Macro-environment

Micro-environment

Marketing
department

31
• The microenvironment

Company’s
Internal
environment
Publics Suppliers
Company’s
marketing
Marketing
Competitors intermediaries
Customers

32
• The company’s internal environment

Top
management
Accounting Finance
Marketing
Manufacturing R&D

Purchasing

33
• The macro-environment

Demographic
forces
Cultural Economic
forces forces
Microenvironment

Company
Company
Political Natural
forces forces

Technological
forces
34
THANK YOU

35