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MKT 201

Fundamentals of Marketing

TU BBM · Semester 5 · BBM curriculum effective from 2021

Requirement
required
Credits
3
Study Guide
9 units available

Chapter notes

Authoritative study guide across 9 syllabus units

Open a unit to read its study notes.

Unit 1: Introduction· 6 LHs· ~7 marks

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Difficulty: ★★★ | High-yield focus: Define marketing, outline the core marketing concepts (needs, wants, demands, value, satisfaction), and state the 4Ps and 7Ps marketing mix. Key exam mastery: Critically evaluate the evolution of marketing philosophies from Production, Product, and Selling concepts to the Holistic Marketing concept.

Part 1: Core Concepts (2 Marks)

Definition of Marketing

According to Philip Kotler and Gary Armstrong (★), “Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.”

According to the American Marketing Association (AMA), “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

Customer Value & Satisfaction

  • Customer Value: The customer’s evaluation of the difference between all the benefits (economic, functional, psychological) and all the costs (monetary, time, energy, psychic) of a marketing offer relative to competing offers.
  • Customer Satisfaction: The extent to which a product’s perceived actual performance matches a buyer’s prior expectations. Performance << Expectations   ⟹  \implies Dissatisfaction; Performance == Expectations   ⟹  \implies Satisfaction; Performance >> Expectations   ⟹  \implies Customer Delight.

Part 2: Structural Frameworks (10 Marks)

Marketing Mix 7Ps Expanded Framework

Marketing Mix 7Ps Expanded Framework
Marketing Mix 7Ps Expanded Framework

1. Evolution of Marketing Management Philosophies

THE 5 MARKETING MANAGEMENT PHILOSOPHIES

  1. PRODUCTION CONCEPT (Early 20th Century)
  • Focus: High production volume, mass distribution,
  • low costs. Assumes buyers want cheap, available.
  1. PRODUCT CONCEPT
  • Focus: Continuous product improvements & quality.
  • Risk: “Marketing Myopia” (Love product, not need).
  1. SELLING CONCEPT (1930s-1950s)
  • Focus: Aggressive selling, hard-pressure promotion
  • Assumes consumers will not buy without coercion.
  1. MARKETING CONCEPT (1950s-Present)
  • Focus: Customer-centric; identify target needs
  • and deliver satisfaction better than rivals.
  1. SOCIETAL MARKETING CONCEPT (Modern Paradigm)
  • Balances 3 pillars: Company Profits, Customer
  • Want Satisfaction, and Long-Term Public Welfare.

Part 3: Distinction Tables

Comparison: Selling Concept vs. Marketing Concept

Basis of Comparison Selling Concept Marketing Concept
Starting Point Factory / Production plant. Target market and customer community.
Primary Focus Existing manufactured products. Customer needs, values, and problems.
Means / Method Aggressive selling, heavy advertising, and sales pitches. Integrated marketing mix (Product, Price, Place, Promotion).
End Goal Profits through immediate sales volume maximization. Profits through long-term customer satisfaction & retention.
Customer Orientation Inside-out perspective; product pushing. Outside-in perspective; customer pull.

Part 4: Worked Problems & Exam Traps

Common Board Exam Trap: Theodore Levitt’s Marketing Myopia: Do not define marketing by the physical products a company manufactures! Railroad companies went bankrupt because they believed they were in the “railroad business” rather than the “transportation business”. Always define marketing from the standpoint of underlying customer need fulfillment.

Students lose marks here because they describe marketing as mere selling and advertising, failing to explain the customer value creation and relationship building process.