MARKETING MANAGEMENT

Course Code:

LECTURER: Ahmed M. Elmi (Atoshe)

August, 2024
 CHAPTER ONE

DEFINING MARKETING FOR THE 21ST CENTURY

After the end of this chapter, students should be able to
understand;
 The Importance of Marketing
 The Scope of Marketing
 Core Marketing Concepts
 The New Marketing Realities
 Company Orientation toward the Marketplace
 The New Four Ps
THE IMPORTANCE OF THE MARKETING

3
Chapter Questions
• Why is marketing important?
• What is the scope of marketing?
• What are some fundamental marketing
concepts?
• How has marketing management changed?
• What are the tasks necessary for successful
marketing management?
What is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships in ways that benefit
the organization and its stakeholders.
What is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.
What is Marketing Management?

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.
 What is Marketed?

• Goods • Places and properties

• Services • Organizations
• Events and experiences • Information
• Persons • Ideas
 Demand States
• Negative Demand • Irregular Demand
• Consumers dislike the • Consumers purchases vary on a
product e.g. Vaccination, Dental work seasonal, monthly, weekly, daily
or hourly e.g. Museums on week days,
• Nonexistent Demand Travelling Peak Off Peak time

• Consumers may be unaware • Unwholesome Demand

of the product e.g. Foreign Language
course • Consumers attracted to products
that have undesirable social
• Latent Demand consequences e.g. Cigarettes, Alcohol,
Drugs
• Consumers may share a
strong need that can’t be
satisfied with existing product
• Full Demand
e.g. Harm less cigarettes, Fuel Efficient cars • Consumers are adequately
buying all products.
• Declining Demand • Overfull Demand
• Consumers begins to buy the
product less frequently e.g. • More consumers would like to
churches, Govt. Schools buy than can be satisfied.
Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets
Functions of CMOs
• Strengthening the brands.
• Measuring marketing effectiveness.
• Driving new product development based on
customer needs.
• Gathering meaningful customer insights.
• Utilizing new marketing technology.
 Core Marketing Concepts
• Needs, wants, and • Marketing channels
demands • Communication Channels e.g.
• 1. Stated needs (The customer wants an Newspapers, Magazines Radio., Television, Mail,
inexpensive car.) Telephone, Billboards, Posters, Fliers, CDs, Audio
• 2. Real needs (The customer wants a car Tapes & Internet
whose operating cost, not initial price, is
low.) • Distribution Channels e.g. Distributors,
• 3. Unstated needs (The customer expects Wholesalers, Retailers, & Agents
good service from the dealer.)
• 4. Delight needs (The customer would like
the dealer to include an onboard GPS
• Supply chain
navigation
•
•
system.)
5. Secret needs (The customer wants friends
• Competition
• Marketing environment
to see him or her as a savvy consumer.)

• Target markets, positioning,

segmentation • Task Environment e.g. Company,
Suppliers, Distributors, Dealers & Target
• Offerings and brands Customers

• Value Proposition • Broad Environment e.g. Demographic,

PESTL
• Value and satisfaction
• Customer value Triad • Marketing planning
Quality, Service & Price (QSP)
The New Marketing Realities
Major Societal Forces
• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competition
• Industry convergence
• Consumer resistance
• Retail transformation
• Disintermediation
New Consumer Capabilities

• A substantial increase in buying power

• A greater variety of available goods and
services.
• A great amount of information about
practically anything.
• Greater ease in interacting and placing and
receiving orders.
• An ability to compare notes on products and
services.
• An amplified voice to influence public opinion.
 New Company Capabilities
• Marketers can use the Internet as a powerful information and sales channel
• Marketers can collect fuller and richer information about markets,
customers, prospects, and competitors
• Marketers can tap into social media to amplify their brand message
• Marketers can facilitate and speed external communication among
customers
• Marketers can send ads, coupons, samples, and information to customers
who have requested them or given the company permission to send them
• Marketers can reach consumers on the move with mobile marketing
• Companies can make and sell individually differentiated goods
• Companies can improve purchasing, recruiting, training, and internal and
external communications
• Companies can facilitate and speed up internal communication among
their employees by using the Internet as a private intranet
• Companies can improve their cost efficiency by skillful use of the
Company Orientations Toward The
Market Place
• The Production Concept
• Consumers will prefer products that are widely available &
inexpensive e.g. Lenovo, Haier etc.

• The Product Concept

• Consumer favor products that offer the most quality,
performance, or innovative features e.g. Rolex etc.

• The Selling Concept

• Consumers & businesses, if left alone, won’t buy enough of
the organization’s products e.g. Insurance, Encyclopedias etc.

• The Marketing Concept

• Emerged in mid 1950s Customer-Centered “Sense &
Respond” e.g. Dell Computer etc.
Marketing Mix and the Customer
Four Ps
• Product Four Cs
• Product Variety/Quality/ Design/
Features/Brand Name/ Packaging/
Sizes/Services/Warranties/Returns • Customer solution
• Price • Customer cost
• List Price/Discounts/Allowances/

•
Payment Period/Credit Terms
Convenience
• Place
• Channels/Coverage/Assortments/ • Communication
Locations/Inventory/Transport

• Promotion
• Sales Promotion/Advertising/Sales
Force/Public relations/ Direct
Marketing
The Holistic Marketing Concept
• Relationship Marketing
• Relationship marketing is a strategy designed to foster
customer loyalty, interaction and long-term engagement.
• Integrated Marketing Communication
• Integrated marketing communication (IMC) is a process
for planning, executing and monitoring the brand
messages that create customer relationship.
• Internal Marketing
• Internal marketing is the task of hiring, training, and
motivating able employees who want to serve customers
well.
The Holistic Marketing Concept…
• Performance Marketing
• Financial Accountability Corporate Social Initiatives

• Social Responsibility • Corporate social

Marketing marketing
• Cause marketing
• Corporate philanthropy
• Corporate community
involvement
• Socially responsible
business practices
 Marketing in an Age of Turbulence

• Secure your market share from core customer segments

• Push aggressively for greater market share from competitors
• Research customers more now, because their needs and wants
are in flux
• Minimally maintain, but seek to increase, your marketing budget
• Focus on all that’s safe and emphasize core values
• Drop programs that aren’t working for you quickly
• Don’t discount your best brands
• Save the strong; lose the weak
"Unless you try to do something beyond what you have
already mastered, you will never grow."
- Ronald E. Osborn

The End…