Topic : 1

Definition of Marketing.
Basic Concept of Marketing & Its
Terms By Philip Kotler

Lecture No .
By Salman Shahid

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American Marketing Association
“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.”(Approved October 2009)

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Chartered Institute of Marketing
The Chartered Institute of Marketing (CIM) is a professional
marketing body based in UK with over 50000 members
worldwide

The Chartered Institute of Marketing

define marketing as 'The management
process responsible for identifying ,
anticipating and “satisfying
customer requirements” profitably'
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 Definition Of Marketing

• A social and managerial process by which

individuals and groups obtain what they
need and want through creating and
exchanging products and value with others.
By Philip Kotler

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The Core Marketing Concept

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 Needs, Wants, and Demands
• Human needs are states of felt deprivation.
• Physical needs (food, clothing, warmth, and safety)
• Social needs (Belonging and affection)
• Individual needs (knowledge and self-expression)

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Physical needs
 Indian Food

Chinese Food

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clothing
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 10
clothing
Knowledge
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Social needs
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Someone needs
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 Needs, Wants, and Demands
• Wants
• The form take by a human need as shaped by culture and
individual personality.
• Demands
• When backed by buying power, wants become demands.

People have almost unlimited wants but limited resources.

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Wants, and Demands 15
 Products and Services
Product
• A product is anything that can be offered to
a market to satisfy a need or want. The
concept of product is not limited to physical
objects—anything capable of satisfying a
need can be called a product. In addition to
tangible goods.

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iPod Product
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Product
Product
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 services
• Any activity or benefit that one party can
offer to another that is essentially intangible
and does not result in the ownership of
anything.
Examples include banking, airline, hotel,
and home repair services.

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 Value, Satisfaction, and
Quality
Customer Value
• The difference between the values the
customer gains from owning and using a
product and the costs of obtaining the
product.

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 Customer Satisfaction
The extent to which a product's perceived
performance matches a buyer's expectations. If
the product's performance falls short of
expectations, the buyer is dissatisfied. If
performance matches or exceeds expectations,
the buyer is satisfied or delighted.

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 Quality
Total quality management (TQM)
• Programs designed to constantly improve
the quality of products, services, and
marketing processes.

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 Exchange and Transaction
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 of value, agreed-upon
conditions, a time of agreement, and a place
of agreement.
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Relationship marketing
• The process of creating, maintaining, and
enhancing strong, value-laden relationships with
customers and other stakeholders.
Marketing management
• The analysis, planning, implementation, and
control of programs designed to create, build, and
maintain beneficial exchanges with target buyers
for the purpose of achieving organizational
objectives.

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 Demarketing
Marketing to reduce demand
temporarily or permanently; the aim
is not to destroy demand, but only to
reduce or shift it.

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

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 Production concept

• The philosophy that consumers will favor

products that are available and highly
affordable and that management should
therefore focus on improving production
and distribution efficiency.

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 Product concept
The idea that consumers will favor products
that offer the most quality, performance, and
features and that the organization should
therefore devote its energy to making
continuous product improvements. A
detailed version of the new-product idea
stated in meaningful consumer terms.

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

• The End
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Thank You

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