Structure of this lecture:
1. What does marketing mean?
2. Selected marketing terms
I. GENERAL MARKETING CONCEPT
1. WHAT DOES MARKETING MEAN?
 Selling and promotion? No, these
activities are only icing on the cake.
 Marketing includes a wide range of various
activities to produce products which are
needed and asked by customers.
 The firm has to focus itself on customers´
demands and adapt its marketing mix and
all marketing activities to the customers
(target group).
MARKETING
 market = interaction between seller and
consumer
 ing = movement, action
market + ing = marketing
MARKETING CONCEPT
 MARKETING CONCEPT: putting the
customer at the centre of all decisionmaking
process in the business.
 MODERN MARKETING CONCEPT: the
achievement of corporate goals through
meeting and exceeding customer needs
and expectations better than the
competition.
MARKETING DEFINITION
 Marketing has been defined in many
different ways by many marketers, for
example marketing is:
A social and managerial process by
which individuals and groups obtain
what they need and want through
creating and exchanging products and
values with others. (Philip Kotler, 1994)
MARKETING IDEAS EVOLUTION
 The production concept
 The product concept
 The selling concept
 The marketing concept
 The holistic marketing: internal
marketing, integrated marketing,
performance marketing, relationship
marketing
MARKETING IDEAS EVOLUTION
Market cycle
Marketing mix
STP – individual lecture!
2. SELECTED MARKETING TERMS
A. MARKET CYCLE
Needs,
wants,
demands
Marketing
supply
Exchange,
transaction
and relations
Markets
A1: NEEDS WANTSDEMANDS
 Needs = basic human requirements such
as for air, food, water, clothing, shelter and
currently recreation education,
entertainment.
MASLOW´S HIERARCHY MODEL OF NEEDS
Source: http://psychologyofsuccess.org.uk/maslows-hierarchy-of-
needs/
 Wants = needs which are directed to
specific objects that can satisfy the need.
 Demands = wants for specific products
backed by an ability to pay.
A1: NEEDS  WANTS 
DEMANDS
THE TYPES OF DEMAND
Negative demand Consumers dislike the product and may even pay to avoid it.
Nonexistent demand Consumers may be unaware of or uninterested in the product.
Latent demand Consumers may share a strong need that cannot be satisfied
by an existing product.
Declining demand Consumers begin to buy the product less frequently or not at
all.
Irregular demand Consumer purchases vary on a seasonal, monthly, weekly,
daily, or even hourly basis.
Full demand Consumers are adequately buying all products put into the
marketplace.
Overfull demand More consumers would like to buy the product than can be
satisfied.
Unwholesome demand Consumers may be attracted to products that have undesirable
social consequences.
A2: MARKETING SUPPLY
 Something what is offered in the market to
satisfy needs and demands.
 What is marketed? Goods, service,
events, experiences, persons, places,
organizations, information and ideas etc.
A3: EXCHANGE, TRANSACTION, RELATIONS
 Exchange = the process of obtaining of
certain value by providing something else
as the compensation.
 Transaction = the value change between
two participants (financial, barter).
 Relations = creating and maintaining of
good, deep, profitable and longtime
relations with customers (CRM).
A4: KEY CUSTOMER MARKETS
 Market – traditionally physical place, currently a
collection of real and potential buyers of some
product or service.
 Consumer markets (B2C)
 Business markets (B2B)
 Nonprofit and Governmental markets (B2G)
 Global markets (knowledge of differences!)
B. THE TRADITIONAL
MARKETING MIX
 McCarthy classified various marketing
activities into marketing–mix tools: product,
price, place, and promotion (MC).
 The marketing mix should be managed such
that it ensures that the right product is
appropriately promoted at the right price in
the right place at the appropriate time so as to
satisfy the needs of target customers in the
chosen market segments.
MARKETING MIX („4Ps“)
Product
Price
Place
Promotion
(Marketing
Communication)
Marketing
mix
Marketing
Communication mix
MARKETING MIX X MC MIX!
„4Ps“ (each will be discussed more fully in later lessons)
 Product – products are solutions to customer´s needs. The
provider needs to make various product decisions, including
functionality, range offered, brand names, packaging, service
and support. It is the critical element in the mix.
 Price – various price-setting models exist, with decisions
relating to factors like market penetration, credit terms,
discount policy and cost of provision.
 Place – it is about making the product available. Some form of
structured network is normally required – a distribution
channel.
 Promotion – promotion aims to make a target market aware
of a product offering, develop a long-term relationship with the
customer and create and stimulate demand.
„7Ps“ – extended marketing mix
(in the case if the product = service)
 „4Ps“
 Physical evidence – customers look for
reassurance relating to required benefits and
quality (ambience, fixtures and fittings,
appearance/attitude of staff, etc.) as an indicator
of likely satisfaction.
 Process – the method by which the services are
provided.
 People – people are an essential element of the
marketing mix. Staff recruitment, training,
development and empowerment to deal with
problems become a critical element in ensuring a
positive customer experience.
KEY DECISIONS RELATING TO THE MARKETING MIX
Product Product range, product performance, branding, quality,
packaging, design, service support, …
Price Pricing model, discount policy, credit terms, nonfinancial
cost, …
Place Channel selection, support supplied by channel
members, market/customer coverage, transport, …
Promotion
(MC)
Advertising, sales promotion, personal selling, public
relations, direct marketing, sponsorship, on-line
communication.
Physical
evidence
Market tangible assets, taken as quality measure.
Process Fulfilment, administration.
People Recruitment, training/skills, interaction with customers.
MARKETING MIX – CONCEPT 4C
WHAT IS THE DIFFERENCE?
Source: https://www.pinterest.co.uk/pin/379357968592537174/