MARKETING MANAGEMENT

Marketing Management
Department

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WHAT IS MARKETING ?
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy individual
and organizational goals
American Marketing Association
Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating and exchanging products and value with
others. (Kotler P.)

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 MARKETING MANAGEMENT
Is the art and science of choosing target markets
and getting, keeping, and growing customers
through creating, delivering, and communicating
superior customer value.
Is the analysis, planning, implementation, and
control of programs designed to create, build,
and maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives.

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 SIMPLE MARKETING SYSTEM
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

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Information
 MARKETING = ?
 Marketing is the sum of all activities that take you
to a sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all
about push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

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 THE 4 PS & 4CS

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost 6
THE GOAL OF MARKETING IS:
To attract new customer by promising superior
value, and to keep current customers by
delivering satisfaction.

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SCOPE – WHAT DO WE MARKET
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
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 CORE CONCEPTS OF MARKETING

Based on :
 Needs, Wants, demand

 Products, Value & Satisfaction

 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

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NEEDS, WANTS, AND DEMANDS
Needs:
The most basic concept underlying marketing
is that of human needs.
Human needs are states of felt deprivation.
Human have many complex needs:
 Physical needs for food, clothing,
warmth, and safety
 Social needs or belonging and affection
 Individual needs for knowledge and self –
expression

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WANTS
Wants: are the form taken by human needs as they
are shaped by culture and individual personality.
People have almost unlimited wants but limited
resources.
They want to choose products that provide the most
value and satisfaction for their money.

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DEMANDS:

When backed by buying power, wants become

demands.
Consumers view products as bundles of benefits
and choose products that give them the best
bundle for their money.

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 MARKETS
The set of all actual and potential buyers
of a product or service

Communication

Products / Services
Industry Market (a
(a collection collection of
of sellers) buyers)
Money

Information

A simple marketing system

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EXAMPLES OF CORE CONCEPTS OF MARKETING
 Need – food ( is a must )
 Want – Pizza, Burger, Injera( translation of a need as per
our experience and culture)
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

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IN ORDER TO UNDERSTAND MARKETING LET US BEGIN WITH THE
MARKETING TRIANGLE

Customers

Company Competition

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Main actors and forces in a modern
marketing system

Competitors

Marketing
intermediaries End user market
Suppliers
Company
(marketer)

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MARKETING MANAGEMENT PHILOSOPHIES

The role that marketing plays within a company

varies according to the overall strategy and
philosophy of each firm.
There are five alternative concepts under which
organizations conduct their marketing activities:
 Production concept
 Product concept
 Selling concept
 Marketing concept
 Societal marketing concepts

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PRODUCTION CONCEPT
The philosophy that consumers will favour
products that are available and highly affordable
and that management should therefore focus on
improving production and distribution efficiency.

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PRODUCT CONCEPT
The philosophy that consumers will favour
products that offer the most quality,
performance, and innovative features.

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SELLING CONCEPT
The idea that consumers will not buy enough of
the organization’s products unless the
organization undertakes a large – scale selling
and promotion effort.

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MARKETING CONCEPT
The marketing management philosophy that
holds that achieving organizational goals
depends on determining the needs and wants of
target markets and delivering the desired
satisfactions more effectively and efficiently than
competitors do.

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SOCIETAL MARKETING CONCEPT
The idea that the organization should determine
the needs, wants, and interests of target markets
and deliver the desired satisfactions more
effectively and efficiently than competitors in a
way that maintains or improves the consumer’s
and society’s well – being.

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Analyzing
Marketing
Opportunities
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THE IMPORTANCE OF MARKETING INFORMATION

 To identify customer needs and wants and to

keep in touch with the ever changing customer
preferences and tastes
 To know about the marketing environment so
that the company will keep track of the
developments
 To keep track of competition and to remain
relevant in the market

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WHAT IS A MARKETING INFORMATION SYSTEM
(MIS)?

 Consists of people, equipment, and procedures

 to gather, sort, analyze, evaluate and distribute
needed, timely, and accurate information to
marketing decision makers.

 Function: Assess, Develop and Distribute

Information.
 THE MARKETING INFORMATION SYSTEM

Marketing Managers
Marketing Information System

Distributing Assessing Information

Information Needs
Developing Information
Marketing Decisions and

Information Internal
Analysis Data
Communications

Marketing Marketing
Research Intelligence

Marketing Environment
FUNCTIONS OF A MIS:
ASSESSING INFORMATION NEEDS

Conduct Interviews and Determine

What Information is
Desired, Needed, and Feasible to Obtain.

Monitors Environment for Examine Cost/ Benefit of

Information Managers Desired
Should Have Information
FUNCTIONS OF A MIS: DEVELOPING INFORMATION

Obtains Needed Information for Marketing Managers

From the Following Sources

Internal Data
Collection of Information from Data Sources Within the Company
From: Accounting, Sales Force, Marketing, Manufacturing, Sales

Marketing Intelligence
Collection and Analysis of Publicly Available Information about
Competitors and the Marketing Environment
From: Employees, Suppliers, Customers,
Competitors, Marketing Research Companies

Marketing Research
Design, Collection, Analysis, and Reporting of Data about a Situation
FUNCTIONS OF A MIS: DISTRIBUTING
INFORMATION

Information Must be Distributed

to the Right Managers at the Right Time.

Distributes Routine Distributes Nonroutine

Information for Information for Special
Decision Making Situations
THE MARKETING RESEARCH PROCESS

Defining the Problem and the Research Objectives

Developing the Research Plan

Implementing the Research Plan

Interpreting and Reporting the Findings

Business Markets
and
Business Buyer
Behavior
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WHAT IS A BUSINESS MARKET?

The Business Market - all the organizations that buy

goods and services to use in the production of other
products and services that are sold, rented, or supplied
to others.

Business markets involve many more dollars and items

than do consumer markets.
Characteristics of Business Markets

Market Structure and Demand

• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Inelastic demand
• Fluctuating demand

Nature of the Buying Unit

• More buyers
• More professional purchasing
effort

Types of Decisions & the

Decision Process
• More complex decisions
• Process is more formalized
• Buyer and seller are more
dependent on each other
• Build close long-term relationships
with customers
Model of Business Buyer Behavior
Product Marketing and Economic
Other Stimuli
Price Technological
Place Political
Promotion Cultural

Organizational The Buying Organization Interpersonal

The Buying Center
Influences and Individual
Buying Decision
Process
Influences

Product or Service Delivery Terms

Choice Buyer’s Response and Times
Supplier Choice Service Terms
Order Quantities Payment
BUSINESS BUYING SITUATIONS
 Straight rebuy: A business buying situation
in which the buyer routinely reorders
something without any modifications
 Modified rebuy: A business buying situation
in which the buyer wants to modify product
specifications, prices, terms, or suppliers.
 New task: A business buying situation in
which the buyer purchases a product or service
for the first time

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PARTICIPANTS IN THE BUSINESS BUYING
PROCESS: THE BUYING CENTER

Gatekeepers Users

Buying
Deciders Center Influencers

Buyers
 Market Segmentation,
Targeting, and Positioning
 CONCEPTUALIZATION OF KEY WORDS
1. Segmentation is dividing a market into smaller
segments with distinct needs, characteristics,
or behaviour that might require separate
marketing strategies or mixes
2. Targeting is the process of evaluating each
market segment’s attractiveness and selecting
one or more segments to enter

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 CONT’D
3. Differentiation involves actually differentiating
the firm’s market offering to create superior
customer value.
4. Positioning consists of arranging for a market
offering to occupy a clear, distinctive, and
desirable place relative to competing products in
the minds of target consumers. We discuss each
of these steps in turn.

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STEPS IN SEGMENTATION,
TARGETING, AND POSITIONING

6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s) Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases
for Segmenting the Market
DEVELOPING COMPETITIVE
DIFFERENTIATION

Product Service

Areas for Competitive

Differentiation

Personnel Image
Thank you!

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