CHAPTER 1

OVERVIEW OF MARKETING: AN INTRODUCTION

Marketing started in the early part of the twentieth century (between 1900
1910) out of questions and issues neglected by its mother science
economics.
In the early years of study and teaching of trade practices, 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.

MARKETING the delivery of customer satisfaction at a profit

- the management process that identifies, anticipates and satisfies
customer requirements profitably
- the right product, in the right place, at the right time, and at the
right price
- the human activity directed at satisfying human needs and wants
through an exchange process
- a social and managerial process by which individuals and groups
obtain what they want and need through creating, offering and
exchanging products of value with others

Marketing as One of the Functions in Business Organization

1. finance and accounting
2. human resource management
3. production and materials management
4. marketing

Marketing as a Management Function

Marketing is a part of four-key management functions: marketing, production,
finance, and human resource.

Managemen

Marketing Production

Behavioral Concepts Relevant to Marketing

1. Anthropology (community in entirety) Culture; Subculture
2. Sociology (individuals in relation to other individuals) Social class; Social
differentiation; Status crystallization; Reference groups; Informal groups;
Social role; The family; Individuals; Institutions
3. Psychology (centers on the individual) Motivation; Drives; Cognitive
dissonance; Achievement; Affiliations; Perception; Orientation; Attitudes
4. Political science Power groups; Values
FOUR GOALS OF MARKETING
1. maximize consumption
2. maximize consumer satisfaction
3. maximize choice
4. maximize life quality

MARKETING: The Strategic 3Cs Concept

1. Customers
To satisfy the needs, wants, and expectations of target customers
2. Competition
To outperform competition
3. Company
To ensure corporate health and profit

CONTEMPORARY MARKETING APPROACHES

1. Marketing Mix(4Psproduct, price, place, and promotion)
- Desirable product + Effective promotion or demand stimulation
+ Acceptable price + Availability in right places = MARKETING
SUCCESS
- developed by E. Jerome McCarthy
2. Conceptual Approaches
- This approach studies the ideas of marketing rather than the
activities of marketing.
- Its emphasis is on theoretical analysis and development of new
concepts whether of consumer, products, marketing, institution,
functions, processes, or policies.
3. System or Holistic Approach
- The system approach is based on the understanding that activities
or processes are interdependent to other activities or processes
4. Marketing Management
- the analysis, planning, implementation, and control of programs
designed to create, build, and maintain beneficial exchanges with
target buyers for the purpose of achieving organizational
objectives.
5. Macro-marketing
6. Social Marketing
7. Comparative Marketing

CLEARING POINT
Many people think of marketing only as selling and advertising.
1. Marketing is no longer telling and selling
2. Marketings new sense is concerned with satisfying customer needs.