1MCD2050
MARKETING 1
Lecture 1 - What is Marketing?
2
3Icons
Pages
6 - 10
Prescribed
reading. Refer
to textbook
Watch the
video via the
link
Answer the
question
Case Study -
Real world
example
!
Important
point to
remember
Pages
6 - 10
Recommended
reading. Refer
to textbook
Assessed Task
4 Define marketing
 The marketing approach to business
 Why we study marketing
 The Core Marketing Concepts
 Value Creation and the Marketing Process Model
 Corporate Social Responsibility and Sustainability
Overview
5MCD2050 Teaching Team:
Unit Leader - Stephanie Anandappa: stephanie.anandappa@monashcollege.edu.au
Teachers/Lecturers:
 Aysha Siddiqua: Aysha.MohammedYasserArafat@monashcollege.edu.au
 Azra Bajric-Kolar: azra.bajric-kolar2@monashcollege.edu.au
 Chadinee Maneesoonthorn: chadinee.maneesoonth@monashcollege.edu.au
 Charindra Keerthipala: charindra.keerthipala@monashcollege.edu.au
 Cindy Lim: cindy.lim@monashcollege.edu.au
 Geetu Tuteja: geetu.tuteja@monashcollege.edu.au
 Hassnain Sadiq: hassnain.sadiq@monash.edu
 Jing Zhou: jing.mcloughlin@monashcollege.edu.au
 Kimble Montagu: kimble.montagu@monashcollege.edu.au
Teacher Contacts
6Learning Skills Advisers Page
 https://lms.monashcollege.edu.au/course/view.php?id=7330
 Email: Learning.Advisers@monashcollege.edu.au
Learning Skills Advisor
7 Concentrate, focus and absorb
 Avoid any outside and unnecessary distractions.
 The message, Facebook post or WeChat message you wish to
write, read or send are all distractions which limit your ability
to focus and may impact on your success in the unit.
 If requested to work on a task, do so. You may be required to
present your discussions or answers to the class.
Guidelines in this class
8 Objectives
 Time commitment
 Resources
 Textbook
 Lecture and tutorial program
 Assessment
 Examination
Unit Outline
9 Elliot, G., Rundle-Thiele S., Waller, D., Smith,
S., Eades, L and Bentrott I., (2021)
Marketing, 5th ed. Wiley, Milton
 You cannot use previous editions, or any
other textbook
 Do not use the Chinese version of the
textbook
 Critical for undertaking all assessment
Text Book
10
Where/how to purchase this text?
MONASH Campus
Bookstore
WILEY Direct ONLINE RETAILERS
There are multiple formats and options available:
PRINT:
$125.95
INTERACTIVE
E-TEXT:
$75.00
11
 Kotler, Burton, Deans, Brown and
Armstrong, (2013), Marketing (9th ed.),
Frenchs Forest NSW, Australia: Pearson
Australia.
 There are chapters in this textbook which
are required for the unit.
 This is critical for undertaking assessment
 The readings are provided for you on
Moodle
Required Reading
12
Related Weeks and Topics:
Marketing 5th Edition (Elliott et al., 2021)
•Week 1 – What is Marketing?
•Week 2 – Marketing Environment
•Week 3 – Consumer Behaviour
•Week 5 – Market Research
•Week 6 – Product Management
•Week 8 – Promotion
•Week 9 - Distribution
•Week 10 – Services Marketing
•Week 11 – Digital Marketing
Marketing 9th Edition (Kotler et al., 2012)
•Week 1 – What is Marketing?
•Week 4 – Segmentation, Targeting, Differentiation and Positioning
•Week 7 - Pricing
**ALL OF THESE READINGS ARE AVAILABLE FOR FREE ON MOODLE**
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 Weekly Online Quiz 5%
 Lectorial Quiz 5%
 Tutorial Essay Questions 10%
 Group Video Project 10%
 Individual Essay 10%
 Mid Trimester Test 10%
 Exam – (Hurdle) 50% (40%)
You will be going through each of these assessment tasks in detail in tutorials
Assessment
14
Reflect on the following questions & post your thoughts on
Chat:
– In your own words, what do you think marketing is?
Activity 1 – 5 Minute Task
15
Marketing Defined
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 (American Marketing Association).
16
Breaking Down the Definition
Page 4
17
 Marketing is an approach to business that puts the customer,
client, partner and society at the heart of all business
decisions.
 Marketers need to learn what customers, clients, partners and
society want.
 Marketers must be creative and able to develop new ideas.
The marketing approach to business
Page 5-6
18
 Be a better customer - Having studied marketing you will understand that
companies that are serious about marketing welcome customer feedback.
 Higher quality of life - Marketing has helped to drive economic growth.
 Improve business performance – A range of marketing practices have been linked
to company performance along with other different business functions.
 Contributes to a better world - The marketing discipline has much to offer to the
social arena. Indeed, many marketers work in the not‐for‐profit sector and/or in
social marketing, where their work is directed towards social good.
Why should you learn about marketing?
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 Small business and large multinationals
 Businesses selling goods and businesses selling services
 For-profit and not-for-profit organisations
 Private and public organisations, including governments
Who uses marketing?
20
Every single business relies on marketing.
21
 In order to provide value for
customers, marketers need to
understand customers needs
and wants, how different
market offerings can provide
customer satisfaction and
value and how buyers make
exchanges to increase their
own value in different
markets.
The 5 Core Concepts – From the Kotler Textbook
1.
Needs, Wants
& Demands
2.
Market
Offerings
3.
Customer Value
and Satisfaction
4.
Exchange, Transactions
& Relationships
5.
Markets
22
 Needs: Emerge from a state of felt deprivation
– Example: Physical (food, safety, clothing, shelter); social (belonging and affection);
individual (knowledge and self-expression).
 Wants: The form taken by human needs as they are shaped by
culture and individual personality. Different people have different
wants based on geographical differences, gender, age, wealth.
– Example: A hungry person in Australia might want a meat pie and a cola but a hungry
person in Vietnam might want a bowl of phở (Vietnamese noodle soup).
 Demands: Human wants that are backed by buying power
– Consumers view products as bundles of benefits and choose products that give them the
best bundle for their money.
1. Needs, Wants and Demands
23
Needs, Wants & Demands Example
Needs: A more comfortable way to
travel from point of origin to destination
i.e. Home to Work
Wants: Ideal desires based on
personality, culture, age and wealth is to
purchase a Bentley Continental Sports
Demands: Although the Bentley
Continental Sports would be ideal, the
buyer is not willing and/or able to by
their desired car and will therefore
purchase another car that sufficiently
satisfies their wants i.e. Mercedes C-
Class Sports
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 People satisfy their needs and wants through a market offering,
which means a combination of goods, services, information and
experiences.
 A market offering may include services, activities or benefits that are
intangible.
 The importance of a market offering lies not so much in the good or
service itself as the benefits it provides.
2. Market offerings – goods, services and experiences
25
 Physical objects
 Services
 Persons
 Places
 Organisations
 Ideas
What is Marketed?
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 Physical Object: https://youtu.be/13GTbEW0bco
 Service: https://youtu.be/03vtjIcNvBg
 Places: https://youtu.be/vUF7ja9ehIs
 Experiences: https://youtu.be/YBqUzHb6d_A
 Ideas: https://youtu.be/3noalme3jXM
A selection of our examples:
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 Customer value:
– The difference between the benefits the customer gains from
owning and using a product and the costs of obtaining the
product.
– Customers often do not judge the offer values and costs
accurately or objectively. They act on perceived value.
 Customer Satisfaction:
– Customer satisfaction is the extent to which a product’s
perceived performance matches a buyer’s expectations.
3. Customer value and satisfaction
28
 Exchange is the underlying theory of marketing and explains why we need
to work in order to get the things we want.
 Two or more parties must participate, each with something of value
desired by the other party
 All parties must benefit from the transaction
 The exchange must meet both parties’ expectations (e.g. quality, price)
– Example:
A hungry person might offer money in exchange for food.
4. Exchanges and relationships (The exchange of value)
29
 The market
– Actual and potential customers with similar needs and wants
 Customers/clients
– Purchasers of products and services
 Partners
– External parties involved in the marketing process
 Society
– Members of the community
Who is involved in the exchange?
30
 A market is the set of all actual and potential buyers of a product. They
share a particular need or want that can be satisfied through exchange.
This represents the overall potential market. The actual size of a market
depends on the number of people who exhibit the need, have resources
and authority to engage in exchange and are willing to offer their resources
for what they want.
5. Markets
Potential
buyers
Actual
buyers
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Value Creation and the Marketing Process – From Kotler Textbook
Page 5
32
Step 1 Understand the market place and customer needs and
wants.
This step involves functions the firm uses to create value.
Step by Step - The Marketing Process
Marketing Functions completed in step 1:
 Marketing information Systems
 Consumer Behaviour
 Environment Scan
UNDERSTAND
33
DESIGN
Step 2 Design a customer driven marketing strategy
This step involves functions the firm uses to create value.
Step by Step - The Marketing Process
Marketing Functions completed in step 2:
 Segmentation, Targeting, Differentiation and
Positioning
34
CREATE,
COMMUNICATE,
DELIVER
Step 3 Construct an integrated marketing program that delivers
superior value.
This step involves functions that the firm uses to communicate
and deliver value.
Step by Step - The Marketing Process
Marketing Functions completed in step 3:
 Product
 Price
 Place
 Promotion
 People
 Process
 Physical Evidence
35
Step 4 Building Profitable relationships
This step is crucial to deliver value in an increasingly competitive
market
Step by Step - The Marketing Process
Marketing Functions completed in step 4:
 A combination of managing the
marketing effort.
BUILD
36
Step 5: Capture value from customers to create profits and
customer equity.
This step is crucial to deliver value in an increasingly competitive
market
Step by Step - The Marketing Process
Marketing Functions completed in step 5:
 A combination of managing the marketing effort.
CAPTURE
37
 The concept of corporate social responsibility is simply that
businesses have an obligation to act in the interests of the
societies that sustain them.
 At the heart of corporate social responsibility is a business’s
obligation to act ethically, lawfully and in the best interests of
all of its stakeholders, including the society — increasingly the
global society — in which it operates.
Corporate social responsibility
38
 Sustainability is currently being widely debated as a business
philosophy that is needed to ensure our future.
 Sustainable development is defined by the Brundtland Report
as ‘development that meets the needs of the present without
compromising the ability of future generations to meet their
own needs’.
Sustainability
39
 Marketing is a broad discipline that is relevant to all types of
organisations
 Marketing is something organisations do, as well as something they
believe
 Marketing has a long history, but change significantly when supply
became greater than demand
 Marketing is NOT simply advertising
 Above all marketing involves exchange
 Preparation and looking at the world around you is the key to doing
well in marketing and ensuring it is sustainable.
Summary
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 Reminder to complete the online weekly quiz on Moodle.
 Quiz will close 5pm Saturday
 The test is open book – you can refer to your lecture notes and
textbook(s)
 The test is timed – 60 minutes to complete from when you start it.
Online Weekly Quiz