TOPIC 1 INTRODUCTION TO PRINCIPLES OF MARKETING.docx -...

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TOPIC 1PRINCIPLES OF MARKETINGBACKGROUND TO PRINCIPLES OF MARKETINGINTRODUCTION TO MARKETINGEvery business, service or product oriented organization must complete its operation by disposingof its products or rendering its services to the customers.Various marketing concepts hold that customers will generally not buy a product they don’t knowor they have not been asked/convinced to buy. It is therefore the role of the marketing function inany business to fill this gap and complete the business operation.Definition of MarketingThe Chartered Institute of Marketing of the United Kingdom defines marketing as, “Themanagementprocesswhich identifies, anticipates, and supplies customerneedsefficiently andprofitably.Kibera (1996) defines marketing as “the performance of business and non-business activitieswhich attempt to satisfy a target individual or group needs and wants for mutual benefit orbenefits.”Kotler (2006), the American marketing guru provides the definition of marketing as “Asocialandmanagerialprocesswhereby individuals and groups obtain what they need and want throughcreating and exchanging products andvaluewith others.”Kotler and Armstrong (2008) define marketing as “The process by which companies create valuefor customers and build strong customer relationships in order to capture value from customers inreturn.”Core Marketing Concepts1.Needs– The basic concept underlying marketing is that of human needs.Needscomprise of those things that human beings feel they cannot do without e.g. food,clothing, shelter, safety, education etc.2.Wants– Are forms of human needs that improve on their well being but which they cando without. Wants are the form of human needs taken as they are shaped by culture andindividual personality for example urbanites want Television sets.3.Demand–Demand is the quantity of a commodity that consumers are willing and able tobuy at a given price over a given time period other factors held constant. When a want isbacked by buying power it becomes demand.4.Product– Is anything that can be offered to satisfy needs or wants.It can be tangible orintangible.5.Market –A constituency of potential customers sharing particular needs or wants andwho might be willing and able to engage in exchange to satisfy that need or want.A market also refers to where buyers and sellers meet to transact.6.Marketing offer– Is a combination of products or services presented to the market tosatisfy a need or a want.7.Value and Satisfaction– Value is the ability of a commodity to satisfy human wants. Italso refereed to as quality or utility. Customers look for value in a product before paying1
for it.The ability of a product to meet customer expectations results in customersatisfaction.

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Term
Winter
Professor
MR.CLASSICS
Tags
Marketing, Chartered Institute of Marketing, marketing guru

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