Business Marketing Module Notes — Introduction to Marketing (Module 1)

Module Contents

• COURSE TITLE: BUSINESS MARKETING

• MODULE TITLE: Introduction to Marketing

• SPECIFIC LEARNING OBJECTIVES: At the end of this module the student MUST be able to:

  • Understand the meaning of marketing in different perspective.

  • Develop knowledge in the 7 Functions of Marketing.

  • Acquire deeper understanding about Market segmentation and Marketing mix.

• TOPICS:

  • 1. Overview of Marketing: An Introduction

  • 2. 7 Functions of Marketing and the 7 Ps of Marketing

  • 3. Marketing segmentation and marketing mix

Definitions of Marketing

• AMA definition: 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.

• Dr. Philip Kotler: Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. It identifies unfulfilled needs and desires, defines market size and profit potential, and designs products and services to meet those needs.

Further Definitions / Perspectives

• Relationship Marketing: Focuses on building long-term relationships with customers, distributors, dealers, and suppliers to create mutual value.

• Digital Marketing: A strategic approach to attract, engage, and retain customers through digital channels like social media, search engines, and display networks.

• Service-based Marketing: Emphasizes delivering exceptional customer experiences and building loyalty through service excellence.

• Value-based Marketing: Focuses on creating and delivering superior value to customers, driving profitability and growth.

Marketing in Tourism and Hospitality

• Marketing (general): the process for getting a company’s product or service out to the customers.

• Hospitality Marketing: Focuses on how segments of the hospitality industry utilize marketing techniques to promote their products or services; concentrates on creating experiences and relationships with customers and patrons.

• Tourism Marketing: The customer purchases a series of services and gains little tangible value at trip completion; marketing initiatives should highlight the value of memories, make the collection of services easily available, and add value through additional programming and other factors.

Functions of Marketing

The Seven Functions of Marketing:

1. Selling: Although selling is closely linked to marketing, it is last on the list because selling occurs after you’ve determined the wants/needs of your customer base and can respond with the right products at the right price and time.

2. Promotion: Advertising is essential to attract new customers and retain existing ones; adapt messaging to new media (Facebook, Twitter) or traditional outlets, or mix old and new.

3. Pricing: Setting the correct price; priced too high loses customers, priced too low reduces profits. The right price usually comes from trial-and-error and market research.

4. Distribution: Deciding how you’ll get goods/services to buyers; having an idea is not enough—distribution ensures products reach customers; may involve choosing a storefront or taking products to customers in an interconnected world.

5. Market Research: Gathering information about target customers; identifying who to sell to and why they would buy from you vs. competitors; requires on-the-ground observation of market trends and competing products.

6. After-sales Service / Customer Service: Provide support after purchase; for complex or technical products (e.g., machinery), services like installation or maintenance may be provided, sometimes free or for a small charge.

7. Product Planning and Development and Management: Identifies market needs and designs products accordingly; product development passes through basic stages; ongoing management includes evaluating performance and adapting to current market trends. (Code reference: MKT123-1.1)

The 7 Ps of Marketing

The 7 Ps: Product, Place, Promotion, Price, People, Process, and Physical Evidence.

• Product: the service a company wishes to sell.

• Place: the location where the customer buys the collection of services.

• Promotion: the specific combination of marketing techniques such as advertising, personal sales, public relations, and other related activities.

• Price: must match the product; good marketing makes the price seem more attractive.

• People: provide the services for the success of the transaction.

• Process: the procedures, mechanisms, and flow of activities that occur when the customer and the business interact with each other.

• Physical Evidence: ways businesses can demonstrate their marketing claims and customers can document their experience (e.g., stories, reviews, blog posts).

Connections to Foundations and Real-World Relevance

• Marketing is about creating, communicating, delivering, and exchanging value.

• It emphasizes understanding customer needs and aligning product/service offerings accordingly.

• Segmentation and marketing mix (7 Ps) help tailor offerings to specific groups and contexts.

• In services (hospitality, tourism), additional emphasis on experiences, relationships, and service quality (People, Process, Physical Evidence) is critical.

• The order of functions implies that the most strategic work happens before selling: understanding needs, researching markets, developing products, and planning distribution and pricing accordingly.

Practical Implications and Examples

• Hospitality marketers focus on experiences and relationships; marketing messages must convey memorable experiences and customer loyalty.

• Tourism marketers should bundle services, highlight intangible value (memories), and offer additional programming to increase perceived value.

• When pricing, use market research and trial to find a balance that maximizes revenue without sacrificing demand.

• Distribution strategies may involve online channels, partnerships, or site selection to meet target customers where they shop or travel.

Foundational Takeaways

• The core aim of marketing is value creation and exchange within a profitable framework.

• The 7 Functions and the 7 Ps provide a structured toolkit for planning and executing marketing strategies.

• Industry-specific nuances (e.g., tourism/hospitality) shape how marketing concepts are applied in practice.