1. Introduction to marketing
Definitions of Marketing
• Management function responsible for assuring that every aspect of the org focuses on customer relationships by delivering superior value
• A social managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others
• The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
Micromarketing vs. Macromarketing
• Micromarketing: how an individual organisation directs its marketing activities and allocates its resources to benefit its customers
• Macromarketing: the study of the aggregate flow of a nation’s g&S to benefit society

What does marketing functions and marketers do? Marketers
• Identify customer needs
• Design g&s (+ ideas) to meet needs
• Communicate information about products to prospective buyers
• Make them available to potential buyers
• Price products to reflect costs, competition and customer’s ability to buy
• Provide necessary after-sale service and follow-up to ensure customer satisfaction Marketing
• Convert social needs into profitable opportunities
• Create customers through the creation of utilities
Step 1: Understanding the marketplace and customer needs
Needs: a state of felt deprivation of some basic satisfaction
Not created by society or my marketers, they are natural and exist in the very texture of human biology
Wants: desires for specific satisfiers of the deeper needs
Continually shaped and reshaped by social forces such as families, religion, schools, business organisations
Demands: wants for specific products that are backed by an ability and willingness to buy them
Wants become demand when backed by purchasing power

Products: anything that can be offered to satisfy a need or want
Value, Cost, Satisfaction: Consumer’s product choice set
Value=perceived benefits gained from having or using the product - cost of obtaining it

 Customer value is maximised within the bounds of search costs and limited mobility, knowledge and income.
 Satisfaction: level of a person’s felt state resulting from comparing a product’s perceived performance or outcome in relation to person’s expectation (i.e. it is derived when experience with a product meets expectation) o increased customer loyalty
 more repeated purchases o positive customer Word of Mouth
 more new customers

Exchange: way to obtain products of services
• Marketing occurs when people decide to satisfy needs and want through exchange. Conditions for exchange to take place: o There must be two parties o Each must have something to offer o Each must be willing to make a deal and are free to decide o Each must be able to communicate and deliver
Transactions: basic unit of exchange
Relationships: building long-term relationships

Step 2: Designing a customer-driven marketing strategy
Marketing Management
The art and science of choosing target markets and building profitable relationships with them
• Successful marketing activities need to be managed and so marketing management involves analysis, planning, implementation and control of these activities
• The aim is to design a customer-driven marketing strategy that produces profitable customer relationships by facilitating exchange that result in customer value by meeting or exceeding customer expectations

Managing Demand
Marketing management involves managing demand, which in turn involves managing customer relationships
• Negative demand: major part of the market dislikes the product
• No demand: consumers are unaware/uninterested in the product
• Latent demand: there is more demand that being satisfied
• Declining demand: demand for the product is demanding
• Irregular demand: demand patter is irregular e.g. seasonal
• Full demand: company is satisfied with the volume it