Download IMS 554 Info. Marketing for Information System Department

IMS 554
Info. Marketing for Information System Department
Principles of Marketing
1
Marketing : Definition
• Marketing consists of the
performance activities that direct
the flows of goods and services from
producer to users.
(American Marketing Association)
2
Needs
• Kotler (1996) has defines needs as a state
of felt deprivation in a person
• They include the basic physiological needs
like food, clothing, shelter, warmth and
safety, social needs for belonging, influence
and affection, individual needs for knowledge
and self expression.
• Needs exists in an individual, marketing do
not create these needs.
3
Wants
• Kotler (1996) - the form of human
needs as shaped by culture and
personal development.
• Needs are more basic than wants
• Example:
• Malaysian – nasi lemak, roti canai
• Europe – cereal, toast and milk
4
Demand
• Exist when a person is able and
willing to buy
• This requires a person to have the
ability to pay
• Demands are constantly changing
• People’s wants become demand when
backed by their purchasing power.
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5
Transaction
• A transaction consists of at least
two things of value between two
parties
• Example:
– between a seller and a buyer
– between a suppliers and organization
6
Transaction – cont.
• Criteria for a transaction to exist:
o condition that are agreed to
o A time and place of agreement between
the two parties.
7
Exchange
• Kotler (1996) had defined an exchange as
the act of obtaining a desired object from
someone by offering something in return
• Example: when you pay RM 1.85 for a
kilogram of sugar to the retailer.
• Exchange is a core concept in the
discipline of marketing
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Exchange- cont.
•
Five conditions must exist for an exchange
to occur
1. There are at least two parties
2. Each party has something that may be of value to
the other party
3. Each party is capable of communication and
delivery
4. Each party is free to accept or reject the other
party’s offer
5. Each parties believes it is appropriate or
desirable to deal with the other party
e.g. You may only buy a ring from a Habib Jewel
shop, and not from a side way stall.
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An exchange process a buyer and a seller
Money, credit, labor, goods
Buyer
Seller
Something of value-goods, services, ideas,
10
The Evolution of
Marketing
•
•
•
•
Barter era
Production era
Sales era
Marketing era
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The barter era
• People’s earliest use of barter
system
• People trade one resource for
another
12
Marketing Management
Philosophies
1.
2.
3.
4.
The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept (1950’s 1960’s)
5. The Societal Marketing Concept
(1960’s – present)
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The Production Concept
• A philosophy that holds consumer who will favor
products that available and highly affordable
• Thus, management should concentrate on improving
production and distribution efficiency
• 19thCentury – industrial revolution in US brought great
economic expansion
• Electricity, rail transportation, the division of labor, the
assembly line and mass production have made it possible
for manufacture products more efficiently
• Products were streaming out of factories into the
marketplace, where consumer’s demand for
manufactured goods was strong.
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The Product Concept
• The consumer will favor those products
that offer the most quality, performance
and features and therefore the
organization should devote its energy to
making continous product improvement
• Believe that a good quality product at a
reasonable price are mostly demanded by
consumers. Thus, require minimum of
marketing effort by the firm.
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The Selling Concept
• The consumer will not buy enough of the
organization’s products unless the
organization undertakes substantial selling
and promotion efforts
• Believes that in order to achieve cost
efficiencies through sales of large volumes
of output, the marketers must invest
heavily in promotions through
advertisement and sales promotion
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The Marketing Concept
• Believes in order to achieve the
organizational goals, the organization
have to determine the needs and
wants of the market and adapt itself
to delivering the desired satisfaction
more effectively than its
competitors
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The Societal Marketing Concept
• Holds that it is the organization’s
task to determine the needs, wants,
and interest of target markets and
to deliver the desired satisfaction
more effectively and efficiently than
competitors in a way that preserves
or enhances the consumer’s and
society’s well-being
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