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    Lec 1 Slides

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    Saud Khan Wazir
    Marketing involves facilitating exchanges to satisfy human needs and wants. It focuses on understanding key concepts like needs, wants, demand, and exchange. Marketing aims to plan, price, promote, and distribute products to target markets to achieve organizational objectives. It has evolved from a trade and barter era to focus more on consumers and satisfying their needs and wants. Consumerism and societal concerns have led to a focus on social responsibility and ethics in marketing. Theories in ethics like utilitarianism, virtue ethics, and duty-based approaches influence how people view ethical issues in areas like products, pricing, promotion, and privacy.

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    Lec 1 Slides

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    34 views33 pages
    Marketing involves facilitating exchanges to satisfy human needs and wants. It focuses on understanding key concepts like needs, wants, demand, and exchange. Marketing aims to plan, price, promote, and distribute products to target markets to achieve organizational objectives. It has evolved from a trade and barter era to focus more on consumers and satisfying their needs and wants. Consumerism and societal concerns have led to a focus on social responsibility and ethics in marketing. Theories in ethics like utilitarianism, virtue ethics, and duty-based approaches influence how people view ethical issues in areas like products, pricing, promotion, and privacy.

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    Marketing involves facilitating exchanges to satisfy human needs and wants. It focuses on understanding key concepts like needs, wants, demand, and exchange. Marketing aims to plan, price, promote, and distribute products to target markets to achieve organizational objectives. It has evolved from a trade and barter era to focus more on consumers and satisfying their needs and wants. Consumerism and societal concerns have led to a focus on social responsibility and ethics in marketing. Theories in ethics like utilitarianism, virtue ethics, and duty-based approaches influence how people view ethical issues in areas like products, pricing, promotion, and privacy.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    34 views33 pages

    Lec 1 Slides

    Uploaded by

    Saud Khan Wazir
    Marketing involves facilitating exchanges to satisfy human needs and wants. It focuses on understanding key concepts like needs, wants, demand, and exchange. Marketing aims to plan, price, promote, and distribute products to target markets to achieve organizational objectives. It has evolved from a trade and barter era to focus more on consumers and satisfying their needs and wants. Consumerism and societal concerns have led to a focus on social responsibility and ethics in marketing. Theories in ethics like utilitarianism, virtue ethics, and duty-based approaches influence how people view ethical issues in areas like products, pricing, promotion, and privacy.

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    Download as ppt, pdf, or txt
    of 33

    WHAT IS MARKETING?

    SELLING & MARKETING

     Difference in focus

     Is selling part of Marketing?

    Marketing is the set of activities undertaken to


    facilitate and generate an exchange process
    that satisfies human or organizational needs
    and wants
    SELLING & MARKETING

     Key concepts
    ♣ Needs

    ♣ Wants

    ♣ Demand

    ♣ Exchange
    KEY CONCEPTS

     Needs
    ♣ Necessities

     Wants
    ♣ Preferences

    ♣ Shaped by desires

    ♣ Desires shaped by external influences (society, culture,


    reference groups, company’s activities, etc.) & internal
    influences (personality, motivations, attitudes, perception,
    learning, lifestyle)

    ♣ Needs are generic, wants vary


    KEY CONCEPTS

     Demand
    ♣ A “Want” backed by purchasing power

     Exchange
    ♣ A transaction where both parties agree to give the other
    party something of value

    ♣ Conditions
    • Involvement of more than one party

    • Willing parties

    • Each party having something to offer

    • Parties must communicate


    KEY CONCEPTS

     Marketing according to the AMA

    Marketing is the total system of business


    activities designed to plan, price, promote and
    distribute want-satisfying products to target
    markets in order to achieve organizational
    objectives
    EVOLUTION OF MARKETING – THE ERAS

    Trade / Production Sales


    Barter Era Era Era

    Marketing Marketing
    dept. Company
    Era Era

    Marketing Era
    EVOLUTION OF MARKETING

     Trade / Barter
    ♣ Exchange of valuable goods

     Production
    ♣ Late 1800s – Industrialization Revolution

    ♣ Continued till 1920s

    ♣ Few products

    ♣ Demand greater than supply

    ♣ “If we can make it, we can sell it”


    EVOLUTION OF MARKETING

     Sales
    ♣ 1930s – surplus production capacity

    ♣ Supply increases, several industrialized nations

    ♣ Supply equal to demand

    ♣ “We have to beat the competition”

    ♣ Advertising, promotion of product in relation to competitor’s

    ♣ Make consumers like the product

    ♣ Shape consumer expectations as per the product


    EVOLUTION OF MARKETING

     Marketing Department
    ♣ Demand exceeds supply

    ♣ Make customers switch from competitor

    ♣ To do that, it is important to understand what need of the


    customer our product will meet that the competitor’s
    product does not

    ♣ Consumer needs get attention for the first time

    ♣ Marketing departments are established

    ♣ Activities like advertising, distribution, shipping, & research


    brought under one umbrella
    EVOLUTION OF MARKETING

     Marketing Department
    ♣ Limited role of Marketing - Advisory

    ♣ Product still not shaped as per consumer expectations

    ♣ Research about consumer needs & expectations reflects in


    promotion, not in product design

    ♣ Product design, pricing, repositioning not controlled by


    Marketing

    ♣ Isolated & contradictory goals of each department – not


    integrated & focused toward satisfying consumer needs
    EVOLUTION OF MARKETING

     Marketing Company
    ♣ 1960s

    ♣ Marketing aspect understood at strategic planning level

    ♣ Entire company driven by consumer needs & expectations –


    R&D to production to after-sale support

    ♣ “The customer rules”

    ♣ Departmental goals consolidated, integrated & focused on


    meeting consumer needs
    THE MARKETING CONCEPT
    Consumer Marketing
    Goal is the total
    Orientation Orientation
    system of business
    activities designed to
    Marketing
    Concept plan, price, promote
    and distribute want-
    satisfying products
    Market
    Driven to target
    Integrated markets in
    Approach Marketing
    order to achieve
    Value
    Based organizational
    Philosophy
    objectives.

    Handout # 1
    THE MARKETING CONCEPT

     Examples:
    ♣ FMCG companies

    ♣ Banking

    ♣ Airlines

    ♣ Tourism

    ♣ Cellular service

    ♣ Non-profit organizations

     Handout # 2
    THE SOCIETAL MARKETING
    CONCEPT
    CONSUMERISM
     Industrialization gave rise to several workforce-
    related problems & thus criticism
    ♣ Low minimum wages
    ♣ Unsafe / unhealthy working conditions
    ♣ Child labor

     In Sales & Marketing eras, criticism also included


    marketing & production activities
    ♣ Automobile manufacturers
    ♣ Sugar mills
    ♣ Cigarette industry
    ♣ Plastic industry
    ♣ Planned Obsolescence

     Criticism affected company image & ultimately


    sales
    CONSUMERISM
     Today’s public is conscious & aware

    Consumerism is the set of activities undertaken


    by individuals, independent organizations,
    government agencies and business
    organizations designed to protect the
    consumer from unethical marketing
    practices and conditions

     Purpose of consumerism is to ensure consumer


    rights in the process of exchange
    ♣ The right to be informed
    ♣ The right to be told the truth
    ♣ The right to be given sufficient number of alternatives
    ♣ The right to be assured of safety in the process of
    consumption
    CONSUMERISM
     Three types of organizations make up the
    consumer movement
    ♣ Consumer action groups

    ♣ Government agencies – protecting consumer rights


    through laws & legislation
    • Deceptive advertising – Federal Trade Commission
    (FTC)

    • Advertising to children – Federal Communications


    Commission (FCC)

    • Product safety standards to protect consumers from risk


    or injury – Consumer Product Safety Commission
    (CPSC)
    CONSUMERISM
     Three types of organizations make up the
    consumer movement
    ♣ Consumer action groups

    ♣ Government agencies – protecting consumer rights


    through laws & legislation
    • Warning labels on hazardous products / packaging

    • Ingredients / nutritional information on food products –


    Food & Drug Administration (FDA)

    • Monopolistic practices - FTC

    • Environmental protection – EPA

    • Handouts # 3 & 4
    CONSUMERISM
     Three types of organizations make up the
    consumer movement
    ♣ Business organizations – reactive or proactive
    • Today companies adopt a more proactive approach

    • Result of Consumerism

     Consumerism has given rise to the Societal


    Marketing Concept
    ♣ Companies are conscious of their social responsibility
    SOCIAL RESPONSIBILITY
     TOYOTA investing on “clean cars”

     Recycled packaging material – M&S

     Recycling products or product components –


    KODAK recycles disposable cameras

     HP and CANON refilling printer cartridges

     PTC undertaking tree plantation


    SOCIAL RESPONSIBILITY
     P&G & Lever Brothers launching frequent CSR
    activities

     Food companies using more natural & healthy


    ingredients

     Socially responsible behavior toward not only


    consumers but toward
    ♣ Employees
    ♣ Channel members
    ♣ Competitors

     Handout # 5
    SOCIETAL MARKETING CONCEPT MAKES
    SENSE – WHY??
     Until the 1960s, natural resources were seen as
    limitless
    ♣ Companies have realized that resources are fast
    depleting

    ♣ According to Business Week


    “Out of the world’s natural resources that are
    being used annually, 70% are being used by 25%
    of the people in industrialized nations”

    ♣ Companies have had to become responsible in the use


    of resources
    SOCIETAL MARKETING CONCEPT MAKES
    SENSE – WHY??
     Their market is not only the consumers of their
    products

     Satisfying needs / expectations of broader


    customer base will mean long-term satisfaction
    ♣ Will require greater investment of time, effort, money
    ETHICS IN MARKETING
    IMPORTANT QUESTIONS IN STUDY OF
    ETHICS
     How do people decide what is ethical?
    ♣ Upbringing
    ♣ Education
    ♣ Religion
    ♣ Experiences

     Why do people act ethically or unethically?


    ♣ Based on their expectations of reward or punishment
    • Magnitude
    • Likelihood of occurrence
    THEORIES IN ETHICS

     Egoism

     Utilitarianism

     Duty-based

     Virtue Ethics
    THEORIES IN ETHICS
     Egoism
    ♣ People act in their own interest

     Utilitarianism
    ♣ Actions of individuals or organizations are good if they
    bring benefit for maximum number of people
    ♣ Life-saving drugs with side-effects

     Duty-based
    ♣ Rightness / wrongness of actions is not judged by
    consequences
    ♣ Actions are right if they stem from some basic obligation
    or duty
    ♣ Supermarket designed for low-income shoppers
    THEORIES IN ETHICS
     Virtue Ethics
    ♣ Virtuous actions are good for the company
    ♣ Truthful client-handling

     Criticisms on Marketing
    ♣ Advertising is misleading
    ♣ Advertising forms unrealistic expectations
    ♣ Products don’t last long
    ♣ Marketing / Advertising encourages materialism
    ♣ Marketing encourages convincing / winning consumers
    by hook or crook
    ♣ Manipulative techniques are used to lure customers
    DIVISIONS OF ETHICAL ISSUES
     Product-related ethical issues
    ♣ Whether certain products should be marketed or not

     Process-related ethical issues


    ♣ Whether certain processes should be used
    ♣ Dumping
    ETHICAL ISSUES IN INT’L MARKETING
     Language differences

     Different norms & values about acceptable


    behavior

     Less developed societies do not pay much


    attention to social, environmental issues

     Some countries give protection to local industry,


    despite unethical practices

     International ethical disputes are difficult to


    handle - arbitration
    TEACHING ETHICS IN THE WORKPLACE
     Some companies prepare & circulate a Code of
    Conduct or Code of Ethics

     Handout # 6

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