Principles of Marketing Overview

Definition of Marketing

• American Marketing Association defines marketing as activities and processes for creating, communicating, and delivering valuable offerings.
• Philip Kotler describes marketing as an art and science focused on creating value to satisfy target market needs for profit.
• Chartered Institute of Marketing views marketing as a management process for identifying and satisfying customer requirements profitably.
• Business Dictionary outlines marketing as managing the movement of goods/services from concept to consumer, encompassing the 4 P's: Product, Price, Place, Promotion.

Key Components of Marketing

• Engages customers through understanding needs, creating value, and delivering products/services to meet those needs.
• Involves market research, product development, promotion, distribution, and sales to attract and retain customers.

Concepts of Needs, Wants, and Demands

• Needs are fundamental requirements for survival (e.g., food, water, shelter) and can also include psychological aspects (e.g., love, self-esteem).
• Wants are desires shaped by individual preferences and cultural influences, extending beyond basic needs (e.g., craving a specific meal).
• Demands are wants backed by purchasing power; they represent specific products consumers are willing to buy.
• Exchange refers to obtaining a desired product/service by offering something of value in return, foundational to trade.
• Satisfaction gauges how well a product/service meets or exceeds consumer expectations, influencing repeat purchases.

Maslow's Hierarchy of Needs

• Physiological Needs: Basic survival essentials (e.g., food, water, warmth).
• Safety Needs: Safety and security in physical, financial, and emotional aspects.
• Love and Belongingness Needs: Relationships, love, friendship, and community acceptance.
• Esteem Needs: Self-esteem, recognition, and accomplishment; importance of respect and value.
• Self-Actualization Needs: Realization of personal potential and pursuit of personal growth.

Marketing Mix (4 P's)

• Product: Goods/services offered, including decisions on design, features, quality, branding, and packaging.
• Price: Strategy that reflects perceived value and market positioning; affects demand and profit margins.
• Place: Distribution channels and locations where products/services are made available to consumers.
• Promotion: Communication strategies to raise awareness and encourage purchase.

Production and Selling Concepts

• Production Concept: Focus on high efficiency, low costs, and mass distribution; works where demand exceeds supply.
• Selling Concept: Emphasizes aggressive promotion and selling; often leads to a transactional focus rather than long-term relationships.

Contemporary Approaches in Marketing

• Sachet Marketing: Selling products in small packages, popular in emerging markets for affordability.
• Content Marketing: Creating valuable content to engage and attract target audiences (e.g., company blogs).
• Social Media Marketing: Utilizing platforms like Facebook and Instagram to promote brands and interact with customers.
• Influencer Marketing: Partnering with social media figures to promote products/services authentically.
• Search Engine Optimization (SEO): Optimizing website visibility in search engine results to attract organic traffic.
• Email Marketing: Targeted emails for relationship building and promoting products to subscribers.
• Data-Driven Marketing: Using analytics for targeted marketing strategies based on customer behavior insights.

Marketing Concepts

• Marketing Concept: Focuses on understanding and fulfilling customer needs to achieve business goals better than competitors.
• Relationship Marketing: Prioritizes long-term relationships and customer value over individual transactions.
• Societal Marketing: Balances profit-making with societal well-being and environmental considerations.

Customer Service and CRM

• Customer Service: Support provided to customers before, during, and after purchase to enhance satisfaction and loyalty.
• Help Desk: Resource for customer inquiries and support management, typically using a ticketing system.
• Customer Relationship Management (CRM): Strategies and technology for managing customer interactions and data to improve business relationships and retention.