Course: Introduction to Business

Course Code: BSIB1101

College of Economics & Business
Administration
Chapter
03
MARKETING

Image : https://www.intandemcommunications.co.uk/article/what-is-marketing/
Contents
1. Marketing
2. Core Marketing Concepts
3. Marketing Function
4. Marketing Management
Orientations
5. Marketing Mix
6. Role of Marketing Mix in
Marketing Strategy
7. Consumer Behavior
Recommended Reading:

• https://ebookcentral.proquest.com/lib/momp/detail.action?docID=
3011185&query=consumer+behaviour+and+marketing
1.Marketing
Meaning
 Marketing is about identifying and meeting human and social needs.
 One of the shortest good definitions of marketing is ― meeting needs profitably.

When eBay recognized that people were unable to

locate some of the items they desired most, it
created an online auction clearinghouse.

When IKEA noticed that people wanted good

furnishings at substantially lower prices, it created
knockdown furniture.

 These two firms demonstrated marketing savvy and turned a private or social need
into a profitable business opportunity
1.Marketing
Definition

Image Source: https://www.omnikick.com/customer-acquisition-strategy/

2.Core Marketing Concepts
1. Needs, Wants & Demand

2. Marketing Offers

3. Value and Satisfaction

4. Exchange, Transactions & Relationships

 2.Core Marketing Concepts
1. Needs, Wants & Demand
Needs
• Needs are basic requirements of any individual
• Not created by marketing people.

Wants
• Described in terms of products that will satisfy needs
• while human needs are limited and General , wants are unlimited
and specific

Demand
• When human wants are :
• backed by purchasing power and willingness to buy, they
become demands.
https://www.dreamstime.com/illustration/consumer-
needs.html

7
Activity :
Identify
1. Customer
MobileNeeds, wants, and Demands
Billionaire
2. Bentley
Phone Car
to
3. Businessman
House for
for travelling
communicate
requires
shelter a private
andfamily
with prestigeand A. NEEDS
jet plane for self-
friends
use B. Wants
C.
Demands

Customer
 2.Core Marketing Concepts
2. Marketing Offers
 Combinations of :
 products, services, information, or
experiences
 offered to a market to satisfy a need or
want .

 The largest share of marketing offers consists

of :
 physical (tangible) products

 which include

 non-durable goods (fast moving

consumer goods or FMCG)

and
9
 2.Core Marketing Concepts
. Customer Value and Satisfaction
Customer Value :
 The difference between
 the worth the customer gains from buying and using
a product
and
 the cost of buying the product.
 The main task of marketing, becomes value-creation and
value delivery.

Customer Satisfaction:
 When Customer Expectations are fulfilled.
 Satisfied customers will :
 buy the product again
and
 tell the others about their good buying experiences.
 Dissatisfied customer :
 switch to a competitor's products
and
 discourage others from buying the product. 1
0
 2.Core Marketing Concepts
Exchange, Transactions & Relationships

Exchange
 It is the act of :
 obtaining an object which one needs
from another
 by offering some other thing in return

Market
 Refers to the different groups of consumers
for a product or service.

 A market is the set of actual and potential

buyers of a product.

1
1
3.Marketing Function
Marketing as a Function
 A process by which :
 individuals / group
 obtain what they need and want
 by creating and exchanging
 products and values with others.

 Managing markets to :
 bring about profitable exchange relationship
 by creating value satisfying needs and wants.

1
2
 3.Marketing Function
Marketing Activities –
MARKET RESEARCH
1) Searching For Customers Distribution Channel
2) Product Development
3) Market Research
4) Communication
5) Sales Promotion
6) Distribution Channel
Management
7) Service

Source Image: https://blog.hubspot.com/service/customer-support

3.Marketing Function
Marketing Management
 It is the art and science of :
 choosing target markets
and
 building profitable relationship with them.

 It involves :
 getting, keeping and growing customers
 through creating, delivering, and communicating
superior value

 Marketing management involves :

 managing demand, which in turn, involves managing
customer relationships

Image Source: https://

www.istockphoto.com/photo/marketing-management-business-concept-gm8479237 14
56-139090489
4. Marketing Management Orientations or
Concepts
1. The Production Concept
2. The Product Concept
3. The Selling Concept
4. The Marketing Concept
5. The Customer Concept
6. The Societal Marketing
Concept 15
 4. Marketing Management Orientations or
Concepts
1. The Production Concept: PRODUCT CONCEPT
 Consumers will favor products that are available and
highly affordable. PRODUCTION
 Improvement in production and distribution CONCEPT
efficiency will be the focus for managements
under this concept.

2. The Product Concept:

 Consumers will favor products that offer the most in
quality, performance, and innovative features.
 Continuous improvements in product and
quality are essential for companies that follow
this concept.

Image Image
Source: Source: https://
https://images.app.goo.gl/CrR8v2cYuk2AHBnGA
images.app.goo.gl/WQLY8G2Gri34vvnH8
16
 4. Marketing Management Orientations or
Concepts
3. The Selling Concept :
 Consumers will not buy enough of the MARKETING CONCEPT
company's products unless it undertakes large
scale selling tactics and heavy promotion
efforts.

4. The Marketing Concept:

 Achieving the company's objectives depends
on:
 understanding the needs and wants of
target markets
and
 delivering the desired satisfaction in a
better way than what the competitors
are doing.
SELLING CONCEPT
age Source: https://images.app.goo.gl/cHSaL4oSmphr3hgR8 17
 Selling
v/s
Marketin
1
g
S.No Selling Marketing

Focus on Seller Needs Focus on Buyer’s Needs

2 Converts Existing Goods into Converts Customer needs into
Profit products
3 Cost determines the prize Market determines the prices
4 Customer is the last link in Customer is the most important
Business
5. Business is the Goods Business is the customer Satisfying
producing process. Process.
Image Source: https://images.app.goo.gl/j1E6mc6swjXPdB1L6 18
 Contrasting of selling concept and
the marketing concept:

https://www.google.com/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjmrcChtvzhAhXI0KQKHbBgDEMQjRx6BAgBEAU&url=http
s%3A%2F%2Fwww.pinterest.com%2Fpin
%2F626211523162907805%2F&psig=AOvVaw0EnuLEYJ9nDkOIug9Jgx5o&ust=1556871982271916 19
4. Marketing Management Orientations or
Concepts
5. The Customer Concept
 Achieving profitable growth through :
 capturing a larger share of each
customer's expenditures by:
 building high customer loyalty
and
 focusing on customer lifetime value.

6. The Societal Marketing

Concept
 Organizations should deliver superior value to the
customers in a way that maintains or improves
the consumer's and the society's wellbeing.

 Calls on marketers to balance three

considerations in setting their marketing policies:
company profits, consumer wants, and society's 20
interests or human welfare
5. Marketing Mix (Four P’s of Marketing)

 It is the set of controllable, tactical, marketing tools that the firm blends to
produce the response it wants in the target market.

 The marketing mix consists of the variables,

21
5. Marketing Mix (Four P’s of Marketing)

1. Product :
 Goods and services offered by a company to the
target market to satisfy needs and wants.

2. Price:
 The money value that the consumers have to
pay to buy the product or service.

3. Promotion:
 Activities of personal selling, advertising,
and communicating product benefits and
attributes to target consumers to persuade
them to purchase. ..

4. Place:
 Physical distribution activities through which
the product moves from the factory to the
customer.
 Channels of distribution, logistics,
warehousing, transport, etc. come under
the place variable. 22
6. Role of Marketing Mix in Marketing
Strategy
 Marketing mix has an important role to play in :
 Marketing Planning
 Marketing Strategy.

 Using the marketing mix variables, the organization tackles the

environment variables.
 The organization can :
 choose, alter and control its marketing mix variables,
 according to the environmental variables.

 The marketing mix is the most visible part of the marketing

strategy of an organisation.

Image Source: https://

23
6. Role of Marketing Mix in Marketing
Strategy
Scanning the Marketing Environment:
 Marketing activities do not take place in a vacuum,
isolated from all external forces.

 "A company's marketing environment consists of :

 internal and external forces
 that affect management's ability to build and
maintain successful relationships with target
customers.

 The marketing environment is composed of :

1. Micro-environment
2. Macro- environment. https://images.app.goo.gl/fHbyy1Uw8LG79xft8

24
6. Role of Marketing Mix in Marketing
Strategy

Image Source:
https
://blog.oxfordcollegeofmarketing.com/2014/11/04
/the-impact-of-micro-and-macro-environment-fact
ors-on-marketing
/
 6. Role of Marketing Mix in Marketing
Strategy
The Micro-environment
 Consists of the following controllable actors
close to the company that affect its ability to
serve its customers :

1. The Company
2. The Suppliers
3. The Marketing intermediaries
4. The Customer markets
5. The Competitors
6. The Public SUPPLIER
S
https://images.app.goo.gl/m4YyQSqkPWCw4Hfj9
26
6. Role of Marketing Mix in Marketing
Strategy
The Macro Environment
 Forces that shape opportunities and pose
threats to the company. SOCIO-CULTUTAL
ECOLOGICAL
TECHNOLOGICAL
POLITICAL
LEGAL ENVIRONMENT
ENVIRONMENT
 These uncontrollable factors consist of - ENVIRONMENT
ENVIRONMENT OF
OF
OF BUSINESS
1. Demographic OFBUSINESS
BUSINESS
BUSINESS
2. Economic
3. Natural /
Ecological
4. Technological
5. Political
6. Legal
7. Cultural.

27
7. CONSUMER BEHAVIOUR

 Consumer behavior or buyer

behavior is defined as :
 the behavior that consumers display in
 searching for,
 purchasing,
 using,
 evaluating and disposing of
 products and services
 that they expect will satisfy their
needs
 7. CONSUMER BEHAVIOUR
Customer Categories
1. The Household buyer
 Buys goods and services for :
 own personal use,
 use of the household,
 as a gift for a friend or relative.
 The products bought for final use of individuals.

2. The Organizational buyer

 Products, equipment and services are bought to :
 run organizations, or for further production.
 i.e. profit and non-profit companies, government agencies (state or
national), and institutions (schools, colleges, hospitals, hotels)
7. CONSUMER BEHAVIOUR
Buying Roles
Several roles people might play in a buying decision.
1. The Initiator
 Who first suggests / thinks of the idea of buying particular product /service.

2. An Influencer
 Whose views and advice carry some weight in making the final decision.

3. The Decider
 Who ultimately determines any part of, or the entire buying decision-
whether to buy, what to buy, how to buy or where to buy.

4. The Buyer
 Who makes the actual purchase.

5. The User
 Who consume or use the product or service.

30
7. CONSUMER BEHAVIOUR
Types of Buyer Behavior
1. Complex Buying Behavior:
 This type of behavior is encountered :
 when consumers are buying an expensive, infrequently bought product.
 They are highly involved in :
 the purchase process and consumers’ research before committing to a high-value investment.
E.g. buying a house or a car.

2. Dissonance Reducing Buyer Behavior:

 The consumer is highly involved in the purchase process but has difficulties determining the differences between
brands.
 ‘Dissonance’ can occur when the consumer worries that they will regret their choice.
E.g. buying a diamond ring

3. Habitual Buying Behavior:

 Low consumer involvement and the absence of significant brand differences.
 Go to the store and reach for the brand (E.g. Salt).

3. Variety Seeking Buying Behavior:

 Consumers to do a lot of brand switching.
 Brand switching occurs for the sake of variety rather than dissatisfaction

Image Source: https://images.app.goo.gl/TfM1ennNCZajiTuU7

31
7. CONSUMER BEHAVIOUR
Buying Decision-Making
Process -
1

2
3

5
 7. CONSUMER BEHAVIOUR
Buying Decision-making Process
1. Need Recognition:
 The buying decision process starts with the buyer's
recognition of a problem or need.
 Need can be triggered by internal or external stimuli.

2. Information Search:
 A consumer searches for information about the product /
service through different sources.
 Sources are personal sources (family, friends,
neighbors), commercial sources (advertising, sales
persons, dealers, display, etc.), public sources (mass
media), and experimental sources (handling,
examining and using the product

ge Source: http://uscmkt450.com/cb_Decision_Making.html 34
Buying Decision-making Process

3. Evaluation of
Alternatives:

 The consumer evaluates the

alternatives based on :

 product attributes,
 weightage for important
attributes,
 brand image,
 utility function
 evaluation procedure.

Image Source: https://images.app.goo.gl/TfM1ennNCZajiTuU7

Buying Decision-making Process -
4. Purchase Decision
 After the brand choice, the consumer forms :
 a purchase intention followed by :
 the purchase decision,
 vendor decision,
 quantity decision,
 timing decision
 payment method decision.

5. Post-Purchase Behavior
 After purchasing the product,
 the consumers will experience some level of satisfaction or
dissatisfaction.
 The product falls short of the buyer's expectation,:
 the buyer will be disappointed and dissatisfied.
 Meets expectations,:
 the buyer will be satisfied.
 Exceeds expectations, :
 the buyer will be delighted.
7. CONSUMER BEHAVIOUR
Five stages in the adoption process -
 The buyers go through the five stages in the adoption process for a new product.

1. Awareness: The buyer becomes aware of the new product, but does not have information about it.

2. Interest: The buyer shows interest and seeks information about the new product.

3. Evaluation: The buyer considers whether trying a new product will be worthwhile.

4. Trial: The buyer tries the new product as a sample to see how it is and whether it is worth using it
regularly.

5. Adoption: The buyer decides to become a regular customer of the new product.

Image Source: https://images.app.goo.gl/TfM1ennNCZajiTuU7

End of Chapter 3…
 CONTACT INFORMATION:

Name of Staff : Dr. Abdul Kadir Khan

Office: BS059
Email: abdulkadir.khan@hct.edu.om

VERSION HISTORY

Version No Date Approved Changes incorporated

01 Sem. (I)
2022/2023

39