Marketing Management

Prepared by : Soft Skills Unit

Course Outlines
o Lecture 1: Marketing Principles

o Lecture 2: Digital Marketing and Consumer Behavior

o Lecture 3: Market Segmentation and target markets.

o Lecture 4: Marketing Plan

Lecture 1:
Marketing Principles
What is a Market?
o A place where buyers and sellers meet, good and services are offered
for sale and transfers for ownership occurs.

o People or organizations with wants to satisfy, money to spend and the

willingness to spend.
What’s Marketing ?
o Marketing deals with identifying & meeting human & social needs
Marketing Concepts

Needs: are the basic human requirements; as food, air, water, shelter, etc…

Wants: when they are directed to specific objects that might satisfy the need. Ex: want
to eat Hamburger

Demands: are wants for specific products backed by an ability to pay.

Marketing Concepts (Cont’d)

Exchange: is the core concept of marketing; is the process of obtaining a

desired product from someone by offering something in return.

Transaction: is a trade of values between 2 or more parties.

o When an agreement is reached , we say transaction takes place.
Selling vs. Marketing

Starting Point Focus Means Ends

Factory Existing Selling & Profits thru

Selling Concept Products Promoting sales volume

Marketing Market Customer Integrated Profits thru

Needs Marketing Customer satisfaction
Concept
Marketing System

Company
Marketing
Suppliers Intermediaries
Final Users
Competitors

Marketing System
Types of Markets (Cont’d)
o Retail (Fashion, F&B, etc …) o Education.
o Oil & Gas. o Electricity.
o Transportation. o Furniture.
o Communication. o Automotive.
o Banking & Financing. o Pharmaceutical
o Tourism. o Agriculture.
o Real Estate and construction.
Marketing Environment
o The actors and forces outside marketing that affect marketing management ability to
build and maintain successful relationships with target customers.
o It is made up of microenvironment and microenvironments.
Micro Environment

Customers
Competitors

Economic Internal Political

Factors Environment Factors
Macro Environment
Technological
Socio-
Factors Natural
Culture Suppliers
Factors Factors
Marketing Environment (Cont’d)
Micro Environment
Customers :
o Consumer Markets; consists of individuals & households.
o Business Markets; buy goods & services for further processing.
o Reseller Markets; buy goods & services to resell at a profit.
o Government Markets; government agencies that buy goods & services to produce
public services.
o International Markets; consists of buyers in other countries as consumers; producers;
resellers ... etc
 Marketing Environment (Cont’d)
Competitors
o Direct Competitors; who have a product that can satisfy the consumer’s need with the
same shape and usage.
o Indirect Competitors; who have a product that is different in shape, form and usage
but satisfies the consumer’s need.

Suppliers: supply problems that affect the marketing can be supply shortage, or delays,
labor strikes , supply costs … etc
Marketing Environment (Cont’d)
Macro Environment
Economic Factors
It’s factors that affect consumer buying power & spending patterns as:
o Changes in Income.
o Changing customer spending patterns.
o Unemployment.
o Inflation.
Marketing Environment (Cont’d)
Political / Legal Factors: organizations are affected by :
o Governmental regulations & rules
o Tax regime
o Trade policies
o Special interests

Technological Factors: forces that create new technologies, creating new products and
opportunities, examples mobiles; laptops, robotic surgery, etc …
Marketing Environment (Cont’d)
Natural Factors: involves the natural resources needed as inputs by marketers and may
affect marketing activities; as :
o Shortage of raw materials
o Increased pollution
o Energy Sources
Marketing Environment (Cont’d)
Socio-Culture Factors: are the larger scale forces within cultures and societies that
affect the thoughts, feelings and behaviors.
Such factors include:
o Attitudes
o Child rearing practices
o Cross cultural difference
o Ethnic values
o Family structure
o Religious practices
The Marketing Analysis
 The Marketing Analysis (Cont’d)
What is Organization’s SWOT ?

It is a marketing analysis tool that involves monitoring the external and internal
marketing environment.
• Internal environment (strengths / weakness) analysis:

o A strength is something a firm does well or a characteristic that enhances its

competitiveness.
o A weakness is something a firm lacks, does poorly, or a condition placing it at a
disadvantage
The Marketing Analysis (Cont’d)
Strength can be …
o Valuable competencies or know-how

o Valuable physical assets

o Valuable human assets

o Valuable intangible assets- e.g. “Image”

o An attribute that places an organization in a position of competitive advantage

o Alliances with capable partners

The Marketing Analysis (Cont’d)
Weakness can be …
o Deficiencies in know-how or expertise or competencies

o Lack of important physical, organizational, or intangible assets

o Missing capabilities in key areas

o High unit cost

o Poor relationship with employees / suppliers

 The Marketing Analysis (Cont’d)

• External environment (opportunities / Threats) analysis:

o An opportunity is a factor that the company may be able to exploit to its advantage.

o An environmental Threat current and emerging external factors that may challenge
the company’s performance.
 The Marketing Analysis (Cont’d)
Sources of a marketing opportunity…

o Diversify your business interests

o Is to supply an existing product or service in a new or superior way.

o A new product.

o Changes in use of technology opening up opportunities for your business to utilize these
technologies such as Ecommerce or Internet sales
The Marketing Analysis (Cont’d)
Examples of threats…

o Changing customer tastes

o Technological advances

o Tax increase

o Change in governmental policies

o Closing of geographic markets

Build on your Recognize your
Strengths Weakness

Evaluate your
Research your
Opportunities
Threats
Marketing Mix

Marketing Mix (4Ps)

Place
Product
o Channels
o Product Variety o Locations
o Quality o Inventory
o Design o Transport
o Brand name Price Promotion
o Packaging o Sales Promotion
o Services o List Price
o Advertising
o Warranties o Discounts
o Public Relations
o Allowances
o Personal Selling
o Payment period
o Direct Marketing
o Credit Terms
o Digital Marketing
Marketing Mix (Cont’d)
Product:

Products include physical objects, services, events, persons, places, ideas, etc …

1. Consumer Products

2. Industrial Products
 Marketing Mix (Cont’d)
Product (Cont’d):
 Marketing Mix (Cont’d)
Place:
o Refers to how an organization will distribute the product or service they are offering to the end user.

o The organization must distribute the product to the user at the right place at the right time.

o Two types of channel of distribution methods are available.

 Marketing Mix (Cont’d)
Price:
o It is the amount of money charged for a product or service, it is agreed upon that the
price offered must cover the cost of the product and return a profit to the producer .

There are 3 marketing objectives to determine the price of a product :

a. Maximize short term profit
b. Maximize current market share
c. Survival
 Marketing Mix (Cont’d)
Price (Cont’d):
a. Maximize short term profit
Understanding the market dynamics, will assist the company in making good
predictions as to how the customers will react to a particular price.

b. Maximize current market share

Sometimes called Market Penetration Pricing; co. sets out to price their product such as
to capture the highest amount of market share.
c. Survival
Companies employing this strategy, set the price above the cost of production,
ensuring the firm will remain operational.
 Marketing Mix (Cont’d)
Promotion:
There are 6 different key types of promotion :
1. Advertising
2. Sales Promotion
3. Public Relations
4. Personal Selling
5. Direct Marketing
6. Digital Marketing
 Marketing Mix (Cont’d)
Advertising:
o Popular means of reaching a target audience.

o Cost effective way to build awareness.

o To create a good ad, the marketer must create a message that is distinct, meaningful

and credible.

o There are many advertising 'media' such as newspapers, magazines and journals,

television, cinema, outdoor advertising (such as posters, bus sides).

Sample of Good ADs
Sample of Bad ADs
 Marketing Mix (Cont’d)
Sales Promotion:
o Short term incentive to encourage customers to make a purchase.
o There are many sales promotion types as :
a. Advertising Specialties: A product imprinted with a logo as mugs, T shirts, etc …
b. Discounting : reducing the listed price for a limited period of time
c. Coupons
d. Samples
 Marketing Mix (Cont’d)
Public Relations:
o Used to obtain favorable publicity, building good corporate image and handling
unfavorable rumors, stories and events

o There are several types of public relations :

a. Written material as brochures, magazines, articles … etc
b. Special Events as presentations, conferences
c. Public Service Activities as donating money, volunteers or resources to activities
designed to a social cause
d. Speeches as giving talks
 Marketing Mix (Cont’d)
Personal Selling:
o Personal presentation by the firm’s sales force for the purpose of making sales &
building customer relations

o The sales message can be customized to meet the needs of the customer.
 Marketing Mix (Cont’d)
Direct Marketing:
o Direct marketing is a type of advertising campaign that seeks to elicit an action.
o Types of direct marketing:
o Direct Mail
o Telemarketing
o Email Marketing
o Catalogs
o Websites
Lecture 2: Part1
Digital Marketing
WHY
IS DIGITAL
MARKETING SO TRENDY?
 IT IS
CHEAP
ALL YOU NEED IS SKILL

FUN TO DO
CREATIVE, INTERACTIVE & NEW.

WORLDWIDE
THE WORLD IS YOUR LIMIT
Digital Marketing
Digital Marketing
Digital marketing is an umbrella term for the targeted, measurable, and
interactive marketing of products or services using digital technologies to reach and
convert leads into customers and retain them.
Digital Marketing Importance

1. Consumers have access to information any time and any place.

2. It’s an ever-growing source of entertainment, news, shopping and social

interaction.

3. Consumers are now exposed to everything & everyone.

4. Personalized and relevant communications and Companies offer tailored to their

needs and preferences.
 Reasons for Digital Marketing

10 reasons why you need a digital channel strategy?

1. You're directionless.

2. You won't know your online market share.

3. Existing and start-up competitors will gain market share.

4. You don't have a powerful online value proposition.

5. You don't know your online customers well enough.

 Reasons for Digital Marketing (Cont’d)

10 reasons why you need a digital channel strategy?

6. You're not integrated ("disintegrated"•
).

7. Digital doesn't have enough people/budget given its importance.

8. You're wasting money and time through duplication.

9. You're not agile enough to catch-up or stay ahead.

10. You're not optimizing.

Digital Marketing Types

Digital Marketing

Offline
Internet Mobile Bridging
Marketing Marketing
o Email Marketing
o Search Engine Marketing
(SEM) o Apps + Pop ads
o Content Marketing o Location based SMS
o Social Media Marketing o Commercial Games
(Facebook, Instagram, Youtube, Twitter,
Pinterest, Google Plus & Snapchat)
Internet Marketing
E-mail Marketing
o It occurs when a company sends a commercial message to a group of people by use
of electronic email.

o Any email communication is considered email marketing if it helps to build customer

loyalty, trust in a product or company or brand recognition.

o Email marketing is an efficient way to stay connected with your clients while also
promoting your business.
Internet Marketing (cont’d)
E-mail Marketing (Cont’d)
o Do’s: o Do not’s:
o You must have the approval of o Buy database from a third party.
people to receive emails from you
so the list is high quality.

o Collect a Database through “Sign-up

for email news letter” on your
website.
Email Samples
Internet Marketing (cont’d)
Search Engine Marketing (SEM)
SEM is the marketing process with a goal of getting more visibility in search engines
either by getting more free traffic (SEO) or paid traffic (Paid search advertising).
Internet Marketing (cont’d)
Search Engine Marketing (SEM) (Cont’d)
Internet Marketing (cont’d)
Search Engine Marketing (SEM) (Cont’d)
Online Ads (On-site based):
In which the website sells these slots with a certain cost, e.g. Masrawy.
Internet Marketing (cont’d)
Search Engine Marketing (SEM) (Cont’d)
Online Ads (Google Ads - Random based):
Customer deals with an official certified Google Adwords center (Yellowpages) and buy Ad slots at
certain timings. (Video or image)
Internet Marketing (cont’d)
Content Marketing
o The marketing and business process for creating and distributing relevant and
valuable content to attract, acquire, and engage a clearly defined and understood
target audience – with the objective of driving profitable customer action.

o Content is the media the prospect wants to consume and that engages prospects.
Internet Marketing (cont’d)
Content Marketing (Cont’d)
Effective content marketers are essentially publishers. They think of themselves this
way and adopt the same practices that have served successful publishers well through
the ages.

o Define a mission.
o Establish an editorial calendar.
o Maintain consistency.
o Collaborate to create.
 IN 1 MIN
2,460,000
SHARES ON FACEBOOK 216,000
NEW INSTAGRAM PHOTOS

3,472 277,000 TWEETS

NEW PINS ON PINTEREST
72 HRS
OF NEW VIDEO UPLOADED ON YOUTUBE
Internet Marketing (cont’d)
Social Media Marketing
o Social media is about building relationships. You need to get into it and you get out of
it what you put into it.

o But you can’t treat social media strictly as a new set of channels for generating
leads. It’s not. Conversation is a vital part of
marketing now.
Internet Marketing (cont’d)
Social Media Marketing (Cont’d)
Is the Does doing
Focus on Facebook explosive growth of business in a B2B field
because of its Pinterest a good reason to suggest LinkedIn is your
popularity? start there? top priority?

Which networks are worth your time?

Choose the networks your

customers use.
Listen and learn.
Internet Marketing (cont’d)
Social Media Marketing (Cont’d)
o Getting known, liked and trusted.
o Make yourself useful.
o Be generous.
o Respond thoughtfully.
o Be yourself.
o Be consistent.
o Interact with influencers.
o Develop a sharing mindset.

o Buying attention & Social Media Advertising.

Mobile Marketing
Mobile Marketing
o It is promotional activity designed for delivery to cell phones, smart phones and other
handheld devices, usually as a component of a multi-channel campaign.

o Some mobile marketing is similar to advertising delivered over other electronic

channels such as text, graphic and voice messages.
Mobile Marketing (cont’d)
Mobile Marketing (Cont’d)

o Pop-ups Ads (Video-Graphic)

o Location based SMS

(City Stars greeting SMS)
Mobile Marketing (cont’d)
Mobile Marketing (Cont’d)
o Commercial Apps & Games
IMC A.K.A. 360 Campaigns (Cont’d)
 4 Ps Versus 4Cs

o Robert Lauterborn suggested that the sellers’ 4 Ps correspond to the

customers’ 4 Cs

4 Ps 4 Cs
Product Customer Solution

Price Customer Cost

Place Convenience

Promotion Communication
Lecture 2: Part2
Consumer Behavior
Consumer Behavior
 Consumer OR Customers?
 Main Questions to answer?
o Who buys?
o How do they buy?
o When do they buy?
o Where do they buy?
o Why do they buy?
 Why it is important?
 What is Black Box?
 “There is only one boss
THE CUSTOMER
And he can fire anyone , simply by spending his money
Somewhere else”

-Sam Walton,
Founder of Wal-Mart
 Consumer Behavior (Cont’d)

What Is Consumer Behavior?

The process & activities people engage in when searching for, selecting , purchasing,
using, evaluating & disposing of products, so as to satisfy their needs & desires.
 Stages of Consumer Buying Process

1- Problem Recognition (awareness of need):

Difference between the desired state and the actual condition. Hunger--Food. Hunger
stimulates your need to eat.
2- Information search:
o Internal search, memory and experience.
o External search if you need more information. Friends and relatives (word of mouth).
Marketer dominated sources; comparison shopping; public sources etc.
 Stages of Consumer Buying Process (cont’d)

3- Evaluation of Alternatives:
Need to establish criteria for evaluation, features the buyer wants or does not want.
Rank/weight alternatives or resume search.

4- Purchase decision:
Choose buying alternative, includes product, package, store, method of purchase..
 Stages of Consumer Buying Process (cont’d)

5- Purchase:
o The key issue for marketers during the purchase stage are product availability as its
critical.
o Without it, customers will not purchase from you but will find someone else who can
deliver the product.
 Stages of Consumer Buying Process (cont’d)

6- Post-Purchase Evaluation:
In the context of attracting and retaining customers, post-purchase evaluation is the
connection between the buying process and the development of long term customer
relationships.
Internal Psychological Factors Influencing CBB

A. Stages in the Consumer Decision-Making Process

Problem Information Alternative Purchase Post purchase
Recognition Search Evaluation Decision Evaluation

B. Relevant Internal Psychological Processes

Attitude
Motivation Perception Integration Learning
Formation
Internal Psychological Factors Influencing CBB (cont’d)

o Personality: it refers to the person’s consistent response to his/her environment.

o Lifestyle: it refers to the ways people choose to spend their time and money. Is the
base of psychographic classification of market segment.
 External Factors Influencing CBB

o Culture

o Social Class

o Reference Group and Opinion Leader

o Family
 Consumer Behavior
Customer Satisfaction and Customer Retention

o Customer satisfaction is the key to customer retention

o Fully satisfies customers are more likely to become loyal customers.

o Customer satisfaction is a big challenge for marketers.

 1 in 4 unhappy 1 in 27 unhappy
Customers customers
switch complain

1 Unhappy Customer Can Turn to 27 Unhappy Customers

Lecture 3:
Marketing Segmentation &
Target Markets
Marketing Segmentation

Geographic Segmentation
Demographic Segmentation
Divides a market into groups based on variables as age, gender, family size,
income, education, occupation, generation and nationality.
Psychographic Segmentation
Divides buyers into different groups based on social class, and lifestyle
Behavioral Segmentation
Divides buyers into groups based on their knowledge, attitudes, uses or responses
to a product.
Marketing Segmentation (Cont’d)
1. Geographic Segmentation
Calls for dividing the market into geographical units such as nations, regions,
countries, cities or neighborhoods.
Marketing Segmentation (Cont’d)
2. Demographic Segmentation
Divides a market into groups based on variables as age, gender, family size, income,
education, occupation, generation and nationality.

o Age.
o Gender.
o Income.
Marketing Segmentation (Cont’d)
3. Psychographic Segmentation
Divides buyers into different groups based on social class, and lifestyle
Marketing Segmentation (Cont’d)
4. Behavioral Segmentation

Divides buyers into groups based on their knowledge, attitudes, uses or responses to
a product.
o Occasions.
o Usage Rate.
o Loyalty Status.
 Market Targeting
Target Market: consists of a set of buyers who share common needs or characteristics
that the company decides to serve.

Undifferentiated Differentiated Concentrated

Micromarketing
Marketing Marketing Marketing
(Local)
(Mass) (Segmented) (Niche)

Targeting Broadly Targeting Narrowly

N.B The differentiated & concentrated tailor the offers & marketing programs while the Micro marketing tailors the products
and the marketing programs
Marketing Differentiation – Competitive Edge

Differentiation: to be branded, products must be differentiated from competitors’ ones.

Dimensions of product differentiation:

o Form.
o Features .
o Performance quality.
o Durability.
o Reliability.
o Style. Cont’d
Marketing Differentiation – Competitive Edge
(Cont’d)

Dimensions of service differentiation:

o Ordering ease.
o Delivery.
o Installation.
o Customer Training.
o Maintenance and repair.
 Product Positioning
Product Position: is the way the product is defined by consumers on important
attributes – the place the product occupies in consumer's minds relative to competing
products. A product must have a unique identity.

In the automobile market:

• Toyota Yaris & Honda positioned as Economy

• Mercedes and Cadillac positioned as Luxury
• BMW & Porsche positioned as Performance
 Branding
A brand is a name, sign, symbol, or design, or a combination of these that identifies the
maker or seller of a product or service.

Benefits of Having Brands:

1) High consumer awareness and loyalty.
2) Easier to launch brand extensions because of high brand credibility.
3) A good defense against fierce price competition.
4) It is believed to be the company’s most enduring asset.
 Branding (Cont’d)

Brand Strategies:

o Introduce line extensions. Product Category

Existing New
o Introduce brand extensions.

o Introduce multi brands. Existing Line Extensions Brand Extensions

Brand name

o Introduce new brands. Brand Dev.

New
Multi Brands New Brands
 Decide on a value proposition
Select Customers to serve

Segmentation Differentiation
Divide the total market
into smaller segments Differentiate the market
offering to create
Create value for superior customer
Targeting Targeted customers value
Positioning
Select the segment or
Position the market
segments to enter
offering in the minds of
target customers
Lecture 4:
Marketing Plan
 Marketing Plan
What is a Marketing Plan?

The Marketing Plan is a “highly detailed”, heavily researched and well written report
that many inside and possibly outside the organization will evaluate. It is an essential
document for both large corporate marketing departments

and for startup companies.

 Importance of Marketing Plan

o Understand the results of past marketing decisions.

o Understand the market in which they operate.

o Sets future goals and provides direction for future marketing efforts.

o It’s a funding to pursue new initiatives.

Reasons of a Marketing Plan
o Yearly planning process.

o Needed for a specialized strategy to introduce something new.

o It is a component within an overall business plan.

Marketing Plan Structure
o Executive Summary o Marketing implementation

o Mission & Vision o Budgeting

o Situational Analysis o Evaluation & control
o SWOT analysis
o Marketing objectives
o Marketing strategies
 Marketing Plan Structure (Cont’d)
Executive Summary

Brief Overview Of The Company History And Background

o An outline & a simple preview of the overall marketing plan.

o Scope and time frame for the plan.

o Executive summary should be the last element to be written.

 Marketing Plan Structure (Cont’d)
Vision: (Pre determined)

o Company History .

o Resources and Competencies .

o Environment .
Marketing Plan Structure (Cont’d)
Mission Statement: (Pre determined)

o For larger firms this may already exist in a public way (e.g., found in annual report,
found on corporate website) but for many others this may need to be formulated.

o The mission statement consists of a short, razor sharp paragraph

o Identifies a stable (i.e., not dramatically changing every year), long-run mission of the
organization.
 Marketing Plan Structure (Cont’d)
Mobinil Vision
“To be part of people’s daily lives by providing reliable, simple services that
help people interact and communicate better.”

Vodafone Vision
‘To be the role model of doing business in Egypt”
 Marketing Plan Structure (Cont’d)
Mobinil Mission
To maintain our position as the leading mobile service provider in Egypt, providing the
best quality service to our customers, the best working environment for our employees,
top value for our shareholders and proudly contributing to the development of our
community.
Vodafone Mission
Connecting & developing people and community, accelerating the advancements of Egypt
 Marketing Plan Structure (Cont’d)
Situation Analysis (Past, Present)

Collecting And Analyzing Marketing Information

 Situational analysis is designed to take a snapshot of where things stand at the time
the plan is presented.
o Company
o Collaborators
o Customers
o Competitors
o Climate
Marketing Plan Structure (Cont’d)
SWOT Analysis

Strengths Weakness

Opportunities Threats
Marketing Plan Structure (Cont’d)

Marketing Goals & Objectives

Goals Objectives
Broad Narrow

Intangible Tangible
 Marketing Plan Structure (Cont’d)
Marketing Strategy:
1. Target Markets
2. Differentiation Strategy
3. Marketing Mix

Strategies generally fall under one of the following strategy:

1. Ansoff's product / market matrix
2. The BCG Matrix
3. Porter Model for Competitive Forces
Marketing Plan Structure (Cont’d)
Ansoff Matrix
Marketing Plan Structure (Cont’d)
Marketing Implementation
o What specific marketing activities will be undertaken?

o How will these activities be performed?

o When will these activities be performed?

o Who is responsible for the completion of these activities?

o How will the completion of planned activities be monitored?

o How much will these activities cost?

Marketing Plan Structure (Cont’d)
Budgeting

It includes a projected profit- loss statement, expected costs of (marketing activities).

 Marketing Plan Structure (Cont’d)
Evaluation and Control
o Establishing performance standards.

o Assessing actual performance by comparing them with the performance standards.

o Taking corrective actions to reduce discrepancies between desired and actual

performance.

o Performance standards can be based on increases in sales volume , market share or

profitability.