WELCOME TO THE PRINCIPLES OF

MARKETING (CMK 1209) MODULE

COURSE PRESENTER
S.SIBANDA
Office FD
E-mail: sindiso.sibanda
@nust.ac.zw

PRICIPLES OF MARKETING - CMK 1209

 Understanding the Pillars
of Marketing
• Stages of Marketing thought
• What is Marketing
• Key Concepts of Marketing
• Role and Importance of Marketing
• Marketing Management Philosophies
• Changing Aspects of Marketing
• Concept of the Marketing mix

PRICIPLES OF MARKETING - CMK 1209

 3

Introduction
Marketing started in the early part of the
twentieth century (between 1900 and 1910) out
of questions and issues neglected by its mother
science, economics.
In the early years of study and teaching, the word
“marketing” was not used.
Instead, “trade,” “commerce,” and “distribution”
were the common operations of the area to which
the term “marketing” is identified today.
Stages of Marketing Thought
4

 1900-1910 Period of Discovery. In the early years,

teachers of marketing sought facts about the distributive
trades. The concept of “marketing” occurred, thus, the
terminology was given to it.

 1910-1920 Period of Conceptualization. Many

marketing concepts were initially developed. Its
concepts were classified, and terms were defined.

 1920-1930 Period of Integration. Principles of

marketing were postulated, and the general body of
thought was integrated for the first time.
1-4
 5

Stages of Marketing Thought

1930-1940 Period of Development. Specialized areas
of marketing continued to be developed, hypothetical
assumptions were verified and quantified.

1940-1950 Period of Reappraisal. The concept and

traditional explanation of marketing was reappraised in
terms of new needs for marketing knowledge.

1950-1960 Period of Re-conception. Traditional

approaches to the study of marketing were supplemented
by increasing emphasis upon managerial decision
making, the societal aspects of marketing, and
quantitative marketing analysis.
 6

Stages of Marketing
Thought
1960-1970 Period of Differentiation. As marketing
expanded, new concepts took on substantial identity as
significant components of the total structure of
thought.

1970 -current Period of Socialization. Social

issues and marketing became much more important. It
is the influence not of society upon marketing, but of
marketing upon society that have became a focus of
interest.
WHAT IS MARKETING
What is Marketing

• The process of identifying needs, wants and interests

of target markets and delivering the desired
satisfactions more efficiently and effectively than
competitors (AMA, 2015)
• The management process responsible for identifying,
anticipating and satisfying customer requirements
profitably ( CIM).
• The art and science of choosing target markets and
getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value (Kotler & Kelly, 2016)

PRICIPLES OF MARKETING - CMK 1209

 9

Marketing Defined

The central focus of marketing is satisfying

customers requirements

OLD View NEW View

of Marketing: of Marketing:
Making a Sale – Satisfying
“Telling & Selling” Customer Needs
 Core Concepts of Marketing

Needs, wants Value &

demands Market Satisfaction
Offerings

Marketing Xchange, Transactions

Markets
Activities & Relationships

PRICIPLES OF MARKETING - CMK 1209

Needs Wants and Demands
 Needs ;- Most basic concept underlying marketing.
 Maslow’s hierarchy of needs
 Types of needs
 Stated need (The customer wants an inexpensive car.)
 Real need (The customer wants a car whose operating
cost, not initial price, is low.)
 Unstated need (The customer expects good service from
the dealer.)
 Delight need (The customer would like the dealer to
include an on-board GPS system.)
 Secret need (The customer wants friends to see him or
her as a savvy consumer.)
 Wants ;- desires taken by human needs as they are shaped by
culture and individual personality.
 Unlimited wants but limited resources.

PRICIPLES OF MARKETING - CMK 1209

Needs Wants and Demands

Demand ;- wants backed by purchasing power.

 Given their resources, people demand products

with the benefits that give them the most
satisfaction.

 Desire + Ability + Willingness + Authority =

Demand
Desire – needs/wants
Ability – have resources for exchange
Willingness – want to spend the resources
Have legal capacity to enter into exchanges.
PRICIPLES OF MARKETING - CMK 1209
 Needs Wants and

Demands
Need – food ( is a must )
 Want – Pizza, Rice, Sadza/Isitshwala( translation of a
need as per one’s experience )
 Demand – Pizza ( translation of a want as per one’s
willingness and ability to buy )

PRICIPLES OF MARKETING - CMK 1209

Market Offerings

• Market offerings are some combination of

products, services, information, or experiences
offered to a market to satisfy a need or want
What is Marketed?

Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information

Ideas
Ideas
PRICIPLES OF MARKETING - CMK 1209
Customer Value and Satisfaction
 Customer Value ;- the difference between the benefits the
customer gains from owning and using the product and the costs
of obtaining the product.
 Value = Benefit / Cost

PRICIPLES OF MARKETING - CMK 1209

Customer Value and Satisfaction
 Customer Perceived value (CPV) the key to understanding
customer judgments. It involves comparing the customer value of a
product to the perceived alternatives

 Which of these is better than the other?

PRICIPLES OF MARKETING - CMK 1209

Importance of Customer Value
Customer value leads to:-
Customer Satisfaction which in turn results in:-
• Repeat purchases
• Less price sensitivity
• Positive word of mouth to relatives, friends etc.
• Customer loyalty
• Customer lifetime value

PRICIPLES OF MARKETING - CMK 1209

Marketing activities
Marketing activities can be described as those
activities used to transfer the market offering to
the buyer. These include
◦ Primary marketing activities: most basic activity to
be performed e.g. selling, transportation etc.
◦ Auxiliary marketing activities: refers to additional
services and include; storage, financing, risk taking,
grading and standardization, sourcing and supplying of
information.
◦ Exchange activities: buying and selling through
which ownership is transferred from one person to the
other.
Customer Markets
• Consumer Markets
• Business (industrial) Markets
• Government Markets
• Not for Profit Markets
• Reseller Markets
• International (Global) Markets

Each market has special characteristics that require

special understanding by the marketer Discuss.

PRICIPLES OF MARKETING - CMK 1209

 Exchange Process in Marketing

• Exchange should create value for both parties leading to the

development of long term RELATIONSHIPS.
PRICIPLES OF MARKETING - CMK 1209
Customer Relationships
• Relationships - The process of creating, maintaining and
enhancing strong, value driven relationships with customers.
(Kotler 2003).
• Important to create mutually beneficial relationships because:
• Costs five times as much to attract a new customer as it does
to keep a current customer satisfied.
• Losing a customer means losing the entire stream of
purchases the customer would make over a life-time of
purchases.
• A happy customer normally tells 2 or 3 other people but a
disappointed customer will normally inform 10 or more
people.

• Key to customer retention is superior customer value and

satisfaction

PRICIPLES OF MARKETING - CMK 1209

Profit
• The gain obtained from the exchange process.
• Can be positive or negative
• Can be monetary or non-monetary
• To the customer, profit is the value or satisfaction obtained
from the ownership or consumption of a product.

What are the profits of NGOs, Churches, Political parties,

Pressure groups?

PRICIPLES OF MARKETING - CMK 1209

Tasks of Marketing
Managers
• Connecting with customers • Creating and managing
• Building profitable customer demand
relationships • Developing marketing
• Segmentation, positioning strategies
and targeting
• Building strong brands
• Environment management
• Delivering and
• Creating excitement
communicating value
• Marketing planning
• Creating long-term growth

PRICIPLES OF MARKETING - CMK 1209

Marketing Management
Philosophies
• Philosophies look at the weight given to the interests of
the organisation, the customers and the society by the
business.
• Five orientations under which organisations may conduct
their marketing activities namely:
• The production concept
• The product concept
• The selling concept
• The marketing concept
• The societal marketing concept
• The Holistic marketing concept

PRICIPLES OF MARKETING - CMK 1209

Market orientations
Development of the Business
Concepts

production the mousetrap

Fridges to the
selling Eskimos

Marketing
Customer
Relationship
Marketing &
Corporate Social
Responsibility
PRICIPLES OF MARKETING - CMK 1209 SERVICE DOMINANT LOGIC
Market orientations
Market orientations
Market orientations
The Marketing Concept
• Holds that achieving organisational goals depends on
determining the needs and wants of customers and delivering
the desired satisfactions more efficiently and effectively than
competitors.
• Organisation starts with:-
• a well defined target market,
• focuses on customer needs,
• coordinates all marketing activities affecting customers and
• makes profits by creating long term relationships based on
customer value and satisfaction.
• Common clichés associated with the concept
• “Customer is king”
• “You are the boss” (United Airlines)
• “Putting people first” (British Airways)

PRICIPLES OF MARKETING - CMK 1209

Market orientations
PRICIPLES OF MARKETING - CMK 1209
The Societal Marketing
Concept
• Holds that the organisation should determine the needs and
wants of customers and deliver the desired satisfactions more
efficiently and effectively than competitors in a way that
maintains or improves the consumer’s and society's well being.
• According to the societal marketing concept, the pure
marketing concept overlooks aspects such as
• environmental problems,
• resource shortages,
• rapid population growth,
• world-wide economic problems
• neglected social services.
• Calls for a balance between the consumer wants and company
profits and society’s long run welfare.

PRICIPLES OF MARKETING - CMK 1209

 e
Considerations
t of the Societal
Marketing
a Concept.
l
Society
(Human welfare)
M
a
r
k
e
t
i
n
Consumers g Company
(Need C (Profits)
satisfaction)
o
n
PRICIPLES OF MARKETING - CMK 1209
Holistic Marketing
Orientation
 Holds that the organisation should develop, design
and implement processes and activities that
recognise the breadth and interdependencies of
marketing activities.
 It calls for the integration of four elements in the
marketing process;
 relationship marketing;
 integrated marketing;
 internal marketing and
 socially responsible marketing.

PRICIPLES OF MARKETING - CMK 1209

 Holistic Marketing
Dimensions

PRICIPLES OF MARKETING - CMK 1209

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1-
Marketing orientations
Holistic Marketing Concept
Marketing orientations
Holistic Marketing Concept
Marketing orientations
Holistic Marketing Concept
Marketing orientations
Holistic Marketing Concept
The marketing Mix

A combination of variables that a business

uses to carry out its marketing strategy and
meet customer needs.
Getting the mix of these elements right
enables the organization to meet its
marketing objectives and to satisfy the
requirements of customers.
Traditionally the marketing mix consist of
just 4 Ps.
 The Marketing Mix
The four p’s are
◦ The product itself
◦ The place where it
is to be sold
◦ The promotion of
the product
◦ The price of the
product
The marketing Mix
•The traditional 4Ps overtime extended to cope with
today's changing environment giving rise to 7Ps.
•7Ps –
•Product,
•Price,
•Promotion,
•Place,
•People,
•Process,
•Physical Evidence (Environment)
The Marketing Mix
The marketing Mix
Product
A tangible object or an intangible service that
is mass produced or manufactured on a large scale
with a specific volume of units.
Should satisfy the needs of the customer
May have a Unique Selling Proposition (USP)
‘Product’ also includes a range of factors such as
packaging, quality, warranties, after-sales
service and branding
The marketing Mix
•Product
•The firm must come up with a product or
service that people will want to buy.

•It must fulfil some need or want.

•It must be (or at least seem) unique.

The marketing Mix
Price
The price is the amount a customer pays for the
productThe cost to make it
The price of a product will depend on:
◦ The amount of profit desired
◦ Other objectives of the business
◦ The price competitors charge
◦ The price customers are willing to pay
◦ Is there a high demand?
◦ Is demand sensitive to changes in price?
 The marketing Mix
Promotion
•Promotion represents all the
communications that a
marketer may use in the
marketplace.
•Promotion has distinct
elements: e.g.
advertising, public
relations, personal selling
and sales promotion.
The marketing Mix
Promotion
The aims of promotion are to:
• Raise awareness
• Encourage sales
• Create or change a brand image
• Maintain market share
• Increase market share
The marketing Mix

Place
•Place represents the location where a product can be
purchased.
•It is often referred to as the distribution channel.
• It can include any physical store as well as virtual
stores on the Internet.
•The more places to buy the product and the easier it
is made to buy it, the better for the business (and the
consumer?)
 The marketing Mix

Place
Products should be conveniently available for
customers to buy
‘Places’ include:
◦ Stores
◦ Mail order
◦ Telesales
◦ Internet
 The marketing Mix
The other 3ps –
People
•People represent the business
•The image they present can
be important
•what is the lasting image they
provide to the customer?
•Do staff represent the desired
culture of the business?
 The marketing Mix
•The other 3ps –
•Process
•What processes do customers go through to acquire the services?
•Where do they find the service?
•Contact
•Reminders
•Registration
•Subscription
•Form filling
•Degree of technology usage
 The marketing Mix
•The other 3ps –
•Physical Evidence (Environment)
•The ambience, mood or physical
presentation of the environment
•Packaging.
•Internet/web pages.
•Paperwork (invoices, tickets,…..).
•Brochures.
•Furnishings.
•Uniforms.
•Business cards.
•The building itself (such as
prestigious offices or scenic
headquarters).
The marketing Mix
The marketing mix will evolve over time. For
example:
The product portfolio may grow as a business
becomes more established
More expensive promotional activities may be
adopted as a firm’s revenue increases
More outlets may be opened, or products sold via
the internet
Price may increase as demand grows
Marketing Myths to
Avoid

MARKETING MANAGEMENT @ NUST 2018

• Myth 2 – Just advertise and - You will sell.

Mythbuster – Advertising will only sell yes, BUT

Not retain customers.
MARKETING MANAGEMENT @ NUST 2018
59
Myth 3 – No difference between marketing &
selling

Mythbuster – “Selling focuses on the needs of the

seller; marketing on the needs of the buyer.

MARKETING MANAGEMENT @ NUST 2018

60
 Great Words on Marketing

1. “The purpose of a company is ‘to create a customer…The only

profit center is the customer.’”
2. “A business has two—and only two—basic functions:
marketing and innovation. Marketing and innovation produce
results: all the rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great
products are invented in the marketing department.”
5. “Marketing is too important to be left to the marketing
department.”

MARKETING MANAGEMENT @ NUST 2018

CONCLUSION: The Value of
Marketing
Finance, operations, accounting, human resources and other
business functions won’t really matter without sufficient
demand for products and services so that the firm can make a
profit.
In other words, there must be a top line for there to be a
bottom line. Thus, financial success often depends on
marketing ability.

MARKETING MANAGEMENT @ NUST 2018