Principles of

PRINCIPLES OF MARKETING
Course Code: MKT- 1101

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Sheikh Majedul Huq
Associate Professor
Department of Marketing
Begum Rokeya University, Rangpur
Recommended Books:

1. Principles of Marketing, Kotler, Philip

& Gary Armstrong, Prentice Hall of India
(Private) Limited, New Delhi-110001,
2015
 01

CHAPTER – 1 Define Marketing and its Core Concept

INTRODUCTION 02

Understand overview of Marketing

03

Compare 5 Marketing Philosophy

04

Differentiates the parts of Marketing Process

 WHAT IS MARKETING?

Marketing is the process by which companies create value for customers

and build strong customer relationships in order to capture value from
customers in return.

Marketing is a social and managerial process by which individuals and

groups obtain what they need and want, through creating, offering and
exchanging products (goods and services) of value with others.
 THE MARKETING PROCESS

Simply Impress
Your Audience

Capture value from

customers to create
Build profitable profits and create
relationships and customer equity
Construct an create customer
integrated marketing delight
Design a customer program that delivers
Understand the driven marketing superior value
marketplace and strategy
customer needs and
wants
 5 CORE AND MARKETPLACE CONCEPTS
Needs, Wants,
Demands

Exchange, Market Offerings

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Value and
Market
Satisfaction
 UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS
Needs are states of felt deprivation, the states of mind (The basic
human requirements)

Physical need => food, clothing, warmth, safety

Social need => belonging and affection
Individual need => knowledge and self expression, recognition
 UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS
Wants are described in terms of objectives that will satisfy
needs. And wants are form of human needs shaped by one’s
society, culture and individual personality.

Demands are human wants backed by buying power. To be

demand the affordability of the customers and willingness to pay
for any product is important
Needs: I need food/ Cloth.

Wants: As a Bangladeshi I want rice and fish as food, Lungi and Fotua as cloth
whereas an American wants sandwich or burger as food and Jeans, t- shirt as cloth.

Demands: As Mr. Haque is a business magnate, and his demand is having rice and fish
from Radisson hotel and clothes from a designer house. But since Mr. Khan
is a student his demand is having rice and fish from BRUR canteen or star kebab and
clothes from Super market.

If Mr. Khan demand Food from Radisson and Clothes from designer house that
will be considered as his want as he does not have the ability of buying it
 UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS

Market offerings are some combination of physical goods

and service oriented benefits offered to a market to satisfy a need or
want of the customer.

So the question is, What are the different offerings (physical

goods, services and experiences etc.) that can be marketed as
product?
 WHAT CAN BE MARKETED

•Product •Place
•Service •Organization
•Event •Information
•Experiences •Ideas
•Person •Properties
 Value and Satisfaction
Value is the inner strength or capability of a product that can solve the
problem of a consumer.

Customer perceived value is the customer’s evaluation of the difference

between total customer benefits and total customer costs of a market
offering relative to those of competing offers.

Satisfaction is the position of consumer’s mind resulted from their

expectation and the actual performance of the product
 Exchange and Transaction
Exchange is the act of obtaining a desired object from someone by
offering something in return.

Transaction is a trade of values between two or more parties. This is

actually exchange of something in between two or more parties by
setting the monetary value of their object.
 UNDERSTANDING THE MARKETPLACE AND
CUSTOMER NEEDS

Relationships consist of actions to build and

maintain desirable relationships by delivering
superior value to the customers.

Markets are the set of actual and potential buyers

of a product or service.
 DESIGNING A CUSTOMER-DRIVEN
MARKETING STRATEGY
Marketing Management is the art and science of choosing target markets
and building profitable relationships with them.

For managing customers properly we need think about,

 What customers will we serve?
How can we best serve these customers?
How can we increase our profitability through satisfying our target
customers?
Marketing Management Orientations
 PRODUCTION CONCEPT

Production concept is the idea that consumers will favor

products that are widely available or highly affordable.

Large production and effective distribution Channel is

important.

Price of the products remains relatively low and they are

available almost everywhere
 PRODUCT CONCEPT

Product concept is the idea that consumers will favor products that
offer the most quality, performance, and features for which the
organization should therefore dedicate its energy for making
continuous improvements.

• Research and development activities for new innovations and

putting emphasis on customer preference is essential
 SELLING CONCEPT

Selling concept is the idea that consumers will not buy enough
of the firm’s products unless it undertakes attractive
advertisements and large scale of selling and promotion effort.

Communicating with the customers properly and creating strong

appeal about the products or services among them
 MARKETING CONCEPT

Marketing concept is the idea that achieving organizational goals

depends on knowing the needs and wants of the target markets
and delivering the desired satisfactions better than competitors
do.

Customer is the king, So meeting the changing demand of

customer is most important point for marketers to emphasis
 SOCIETAL MARKETING CONCEPT

Societal marketing concept is the idea that a company should

make good marketing decisions by considering consumers
wants, the company’s requirements, consumers long- term
interests, and society’s long- run interests.

Thinking and acting as a member or part of the society and

participating in different Corporate -Social Responsibilities
(CSR) activities
SOCIETAL MARKETING CONCEPT

To Society
(Human and Welfare)

To Consumer To Company
(Want Satisfaction) (Profits)
 BUILDING CUSTOMER RELATIONSHIPS

Customer Relationship Management is the overall process of

building and maintaining profitable customer relationships by
delivering superior customer value and satisfaction.

It deals with acquiring, keeping and growing customers.

 BUILDING CUSTOMER RELATIONSHIPS

Supply Chain is a channel that stretches from raw materials to

components to final products to final buyers

Supplier Manufacturer Distributor Wholesaler Retailer Customer

 CAPTURING VALUE FROM CUSTOMERS

Customer Lifetime Value is the value of the entire stream of

purchases that the customer would make over his or her lifetime.
Estimating Customer life time value:
• Annual customer spending to a company. Taka 1500
• Average number of loyalty of that customers : 25 Years
•Company regular profit margin: 15%
•Customer lifetime value (revenue): Taka ;
•Customer lifetime value (Profit): Taka
 Creating Customer Loyalty And Retention

Suppose Ms. Zamila visits KFC thrice a week and consume 1

pkt. of combo 1 every time, and she is going to consume it for
the next last 15 years at the same rate, if other things remain
constant, and price of one pkt. of Combo 1 is 280 tk, Ms.
Zamila's life time value will be,
6,55,200/- tk
 THE NEW MARKETING LANDSCAPE

Major Developments ( Changes in Marketing)

Digital age
Globalization
Ethics and Social Responsibility
The growth of Non- Profit Marketing
Changing World Economy
 THE NEW MARKETING LANDSCAPE

NEW Digital Age Non – Profit Marketing

Emerging Challenge

Rapid Globalization
Ethical Concern
Thank You!