CH.
1
MARKETING
MANAGEMENT
DEFINING MARKETING NEW REALITIES
COURSE PHILOSOPHY:
❑ The main purpose behind this course is to equip the MBA seeker with a thorough, up-to-
date knowledge and skills about Marketing Management that would help him/her apply
them in the day to day business
❑ The Material is designed to be used as an easy, quick, informative reference to support
the MBA Seeker while studying or even later on, when he/she needs it in the daily
business activities.
COURSE GRADING:
10% Attendance
20% Participation
30% Midterm Exam
40% Final Exam
By the end of this Chapter, you’ll
be able to know:
Forces defining Tasks necessary for
The scope of successful; Marketing
new Marketing
marketing Management
realities
1 3 5
2 4
Core marketing Holistic Marketing
concepts Philosophy
The Scope of Marketing
Marketing is about identifying and meeting human and social needs.
One of the shortest good definitions is “meeting needs profitably”
AMA Definition: “Marketing is the activity, set of institutions, and
WHAT IS processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society
MARKETING? at large.”
Marketing Management is seen as the art and science of choosing
target markets and getting, keeping and growing customers through
creating, delivering, and communicating superior customer value.
Marketing is a societal process by which individuals and groups
obtain what they need and want through creating, offering, and freely
exchanging products
The Scope of Marketing
GOODS: Physical goods constitute the bulk of most countries’
production and marketing efforts.
SERVICES: As economies advance, a growing proportion of their
WHAT IS activities focuses on the production of services.
MARKETED?
EVENTS: Marketers promote time-based events, such as major
trade shows, artistic performances, and company anniversaries.
EXPERIENCES: By orchestrating several services and goods, a
firm can create, stage, and market experiences.
The Scope of Marketing
PERSONS: Artists, musicians, CEOs, physicians, high-profile
lawyers and financiers, and other professionals often get help from
marketers.
PLACES: Cities, states, regions, and whole nations compete to
WHAT IS attract tourists, residents, factories, and company headquarters
MARKETED?
PROPERTIES: are intangible rights of ownership to either real
property (real estate) or financial property (stocks and bonds).
ORGANIZARIONS: Museums, performing arts organizations,
corporations, and nonprofits all use marketing to boost their public
images and compete for audiences and funds
The Scope of Marketing
INFORMATION: is essentially what books, schools, and
universities produce, market, and distribute at a price to
parents, students, and communities. Firms make business
decisions using information supplied by organizations
WHAT IS
MARKETED?
IDEAS: every market offering includes a basic idea. Charles
Revson of Revlon once observed: “In the factory we make
cosmetics; in the drugstore we sell hope.” Products and
services are platforms for delivering some idea or benefit.
WHO MARKETS?
✓A marketer is someone who seeks a response—attention, a
purchase, a vote, a donation—from another party, called the
prospect.
✓If two parties are seeking to sell something to each other, we call
them both marketers.
✓Marketers are skilled at stimulating demand for their products, but
that’s a limited view of what they do. They also seek to influence the
level, timing, and composition of demand to meet the organization’s
objectives.
EIGHT DEMAND STATES
Negative Demand Nonexistent demand
Consumers dislike the product and Consumers may be unaware of or
may even pay to avoid it. uninterested in the product
Latent demand Declining Demand
Consumers may share a strong need that Consumers begin to buy the product less
cannot be satisfied by an existing product frequently or not at all.
Irregular demand Full Demand
Consumer purchases vary on a seasonal, Consumers are adequately buying all
monthly, weekly, daily, or even hourly basis. products put into the marketplace.
Overfull demand Unwholesome demand
More consumers would like to buy the Consumers may be attracted to products
product than can be satisfied. that have undesirable social consequences
In each case, marketers must identify the underlying cause(s) of the demand state and determine a
plan of action to shift demand to a more desired state.
STRUCTURE OF FLOWS IN A
MODERN EXCHANGE ECONOMY
MARKETS: Traditionally, a “market”
was a physical place where buyers
and sellers gathered to buy and sell
goods.
Economists describe a market as a
collection of buyers and sellers who
transact over a particular product or
product class (such as the housing
market or the grain market).
NEEDS DEMANDS
CORE MARKETING
Needs are the basic
Demands are wants
CONCEPTS
human requirements NEEDS, WANTS AND
for specific products
such as for air, food, DEMANDS
backed by an ability
water, clothing, and
to pay. Many people
shelter. Humans also
want a Mercedes;
have strong
only a few
needs for recreation,
can buy one.
education, and
entertainment.
Companies must
measure not only
These needs become
how many people
WANTS when
want their product,
directed to specific
but also how many
objects that
are willing
might satisfy the
and able to buy it.
need
WE CAN DISTINGUISH FIVE TYPES OF NEEDS:
Stated needs Real Needs Unstated Needs Delight Needs Secret Needs
The customer The customer The customer
The customer wants a car The customer would like the wants friends
wants an whose expects good dealer to to see him or
inexpensive car operating cost, service from include an her as a
not initial price, the dealer onboard GPS savvy
is low system consumer
Responding only to the stated need may shortchange the customer. Consumers did not know much
about tablet computers when they were first introduced, but Apple worked hard to shape consumer
perceptions of them. To gain an edge, companies must help customers learn what they want.
MARKETING IN PRACTICE
Given the new marketing realities, organizations are challenging their marketers to find
the best balance of old and new and to provide demonstrable evidence of success.
Companies must always move forward, innovating
Marketing products and services, Staying in touch with customer
Balance needs, and seeking new advantages rather than
relying on past strengths
Organizations recognize that much of their market
Marketing value comes from intangible assets, particularly
Accountability brands, customer base, employees, distributor and
supplier relations, and intellectual capital.
Increasingly, marketing is not done only by the marketing
Marketing department; every employee has an impact on the
customer. Marketers now must properly manage all
in the
possible touch points: store layouts, package designs,
Organization product functions, employee training, and shipping and
logistics.
THE EVOLUTION OF MARKETING PHILOSOPHIES
❑ THE PRODUCTION CONCEPT: is one of the oldest concepts in business. It holds that consumers prefer
products that are widely available and inexpensive. Managers of production-oriented businesses concentrate
on achieving high production efficiency, low costs, and mass distribution.
❑ THE PRODUCT CONCEPT: proposes that consumers favour products offering the most quality, performance,
or innovative features. However, managers are sometimes caught in a love affair with their products. They
might commit the “better-mousetrap” fallacy.
❑ THE SELLING CONCEPT: holds that consumers and businesses, if left alone, won’t buy enough of the
organization’s products. It is practiced most aggressively with unsought goods—goods buyers don’t normally
think of buying such as insurance.
❑ THE MARKETING CONCEPT: emerged in the mid-1950s as a, customer-centred sense-and-respond
philosophy. The job is to find not the right customers for your products, but the right products for your
customers.
Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the
seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by
means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it.
THE HOLISTIC MARKETING CONCEPT
RELATIONSHIP MARKETING
❑ A key goal of marketing is to develop deep, enduring relationship with people and organizations that directly or
indirectly affect the success of the firm’s marketing activities.
❑ Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in order
to earn and retain their business.
I hope and I believe that this Template will your Time, Money and Reputation. Easy to change colors, photos and text.
❑ Marketers must create prosperity among
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To develop strong relationships with them requires understanding their capabilities and resources, needs,
goals, and desires.
CUSTOMERS EMPLOYEES
Four key
constituents for
relationship MARKETING PARTNERS MEMBERS OF THE FINANCIAL
marketing channels, suppliers, distributors, COMMUNITY
dealers, agencies shareholders, investors, analysts
Integrated marketing occurs when the marketer devises marketing activities and assembles
marketing programs to create, communicate, and deliver value for consumers such that “the
whole is greater than the sum of its parts
There are two key themes for Integrated Marketing:
INTEGRATED 1. many different marketing activities can create, communicate, and
deliver value
MARKETING 2. marketers should design and implement any one marketing activity
with all other activities in mind.
The company must develop an integrated channel strategy. It should assess each channel option
for its direct effect on product sales and brand equity, as well as its indirect effect through
interactions with other channel options.
All company communications also must be integrated so communication options reinforce and
complement each other
INTENRAL MARKETING
It’s an element of holistic Smart marketers recognize that Marketing succeeds only
marketing, is the task of hiring, marketing activities within the when all departments work
training, and motivating able company can be as important—or together to achieve
employees who want to serve even more important—than those customer goals
customers well. directed outside the company.
R&D
Purchasing Logistics
Manufacturing Assessing which Accounting
company
Marketing departments are Finance
customer minded
Sales Public Relations
NEW MARKETING REALITIES
The marketplace is dramatically different from even 10 years ago, with new marketing behaviors,
opportunities, and challenges emerging.
GLOBALIZATION SOCIAL
TECHNOLOGY RESPONSIBILITY
The world has become a smaller
place. New transportation, shipping,
The fast pace of technological Poverty, pollution, water
and communication technologies
advancement with e-commerce, shortages, climate change, wars,
have made it easier for us to know
mobile internet and web and wealth concentration demand
the rest of the world, to travel, to buy
penetration, resulted in massive our attention. The private sector
and sell anywhere.
amounts of data about almost is taking some responsibility for
everything are now available to improving living conditions, and
By 2025, annual
consumers and marketers firms all over the world have
consumption in emerging markets
will total $30 trillion and contribute Elevated the role of corporate
more than 70 percent of global GDP social responsibility.
growth
NEW MARKETING REALITIES
THE FOUR Ps OF MARKETING MIX
List Price, Discounts, Sales promotion,
Allowances, Payment Advertising, Sales force,
Period, Credit items PR, Direct Marketing
PRICE PROMOTION
Product variety, Quality,
Channels, Coverage,
Design, Features, Brand
Name, Packaging, Sizes,
Marketing PLACE Locations, Delivery,
Mix Inventory
Services, Warranty, Returns
UPDATING THE FOUR Ps
MODERN MARKETING
MARKETING MIX MANAGEMENT
FOUR Ps FOUR Ps
❑ PRODUCT ❑ PEOPLE
❑ PRICE ❑ PROCESSES
❑ PROMOTION ❑ PROGRAMS
❑ PLACE ❑ PERFORMANCE
DEVELOPING MARKETING STRATEGIES
AND PLANS
❑ Capturing Marketing Insights
❑ Connecting with Customers
❑ Building Strong Brands
❑ Creating Value
❑ Delivering Value
❑ Communicating Value
❑ Conducting marketing responsibly for long-term success
THANK YOU ☺
By: Dr. Rabab Awad
Email: rabab@setctrainings.com
