Chapter 1 Marketing an overview (1).ppt

Chapter 1 Marketing an overview (1).ppt

1. Lecture 1
Marketing: An Overview
Marketing Management
Post-ADP (BBA)
Instructor: Rajja Rashad

2. Roadmap: Previewing the Concepts
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1.Marketing and the Marketing Process
2.Core Marketing Concepts
3.Importance of Marketing
4.Basic Functions of Marketing
5.The Evolution of Marketing
6.Marketing Management
7.Marketing Management Orientations
(Philosophies)
8.Marketing Mix and 4Cs
9.Marketing in the New Digital Age
10.Marketing Management Tasks

3. 1-3
Meaning and Scope of Marketing
Marketing, more than any other business
functions, deals with customer.
Understanding, creating, communicating and
delivering customer value and satisfaction are at
the very heart of modern marketing thinking and
practice.
Marketing is part of all of our lives and touches
us in some way every day.
Vs

4. 1-4
Goals of Marketing
Marketing is engaging customers and managing
profitable customer relationships.
Marketing deals with identifying and meeting
human and social needs .
Goals: Goals:
1.Attract new customers by promising superior value.
2.Keep and grow current customers by delivering
satisfaction.
3.Gain high levels of customers’ knowledge as the
result of relationship marketing.

5. 1-5
Marketing Defined
One of the shortest definition of marketing is
“meeting needs profitably. ”
“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.”
American Marketing Association (AMA)

6. 1-6
The Marketing Process
Marketing is a process by which companies
create value for customers and build strong
customer relationships in order to capture value
from customers in return.
A simple view of Marketing process

7. Marketing – An Overview
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“ Marketing is a social and managerial process by
which individuals and groups obtain what they need
and want through creating, offering, and freely
exchanging products and services of value with
others. ”
Philip kotler
To explain this definition, we will examine the
following core customer and marketplace
concepts.

8. Core Marketing Concepts
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1.Needs, wants, and demands
2.Market offerings
–Products
–Services
–Experiences
3.Value and satisfaction
4.Exchanges and relationships
5.Markets
6.Marketers and Prospects

9. 1. Needs, Wants, & Demands
NEEDS: are the most basic concepts underlying
marketing. Need is a state of felt, deprivation of
the basic human requirements such as food,
air, water, clothing and shelter.
Human needs can be categorized as follows:
 
a)Basic needs: it is physical needs for food, water, clothing,
and shelter safety.
b)Social needs: is belonging and affection (belonging -to be
a member of a group or organization)&(affection- a
feeling of living and caring about some one or
something)
c)Individual needs: needs for knowledge & self-expression
9

10. 1. Needs, Wants, & Demands
WANTS: wants are desires / wishes/ for specific
satisfiers of the needs. E.g. When you get thirsty
you may want soft drinks instead of water.
•A human want is the form that a human need takes as
shaped by culture and individual personality.
DEMAND: demands are wants for specific
products that are backed up by ability &
willingness to buy them. Wants becomes
demands when backed up by purchasing power.
•Companies must measure not only how many people
want their product but, more important, how many
would actually be willing and able to buy it.
10

11. 1-11
2. Market Offerings
Needs and wants are fulfilled through a
Market Offer
–Some combination of products, services,
information, or experiences offered to a market to
satisfy a need or want.
However, in today's market, a product can be:-
–Person (soccer players)
–Organization (private firms)
–Ideas (business plans or project proposal)
–Places (leased land)
–Objects /items/
–Services (medication or barber) or mixes of these elements.

12. 1-12
2. Market Offerings
Products
Persons
Places
Organizations
Information
Ideas
Services
–Activity or benefit
offered for sale
that is essentially
intangible and
does not result in
ownership.
In general Marketing offers include: Goods,
Services, Events, Experiences, Personalities,
Place, Organizations, Properties, Ideas and
concepts.

13. Marketing Myopia
Many sellers give more attention to their
specific products they offer than to the benefits
and experiences produced by these products.
They focus only on existing wants and lose
sight of under lying customer needs, These
sellers suffer from “marketing myopia.”
Marketing myopia is a short sighted view of
marketing, which focuses on the product itself
rather than the customers benefit and the
challenges presented by other products.

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14. 1-14
3. Customer Value & Satisfaction
Value is the consumer’s estimate
/expectations of the product’s overall
capacity to satisfy his or her needs.
In general , Value can be defined as a
ratio between what the consumer “gets”
and what he “ gives. ”
The offering will be successful if it delivers
value and satisfaction to the target market.

15. 1-15
3. Customer Value & Satisfaction
Value can be seen as a combination of quality, service
& price (QSP), called the Customer value triad.
 Value increases with quality & services & decrease
with price.
The customer gets benefits from value and assumes
costs.
The benefits include
•Functional benefits (FB)
•Emotional benefits(EB)
The cost includes:-
•Monetary cost(MC)
•Time cost(TC)
•Energy cost(EC)
•Psychological cost(PC)

16. 1-16
3. Customer Value & Satisfaction
Customer satisfaction depends on a
product’s perceived performance in
delivering value relative to a buyer’s
expectation about a product performance.’
Care must be taken when setting expectations:
–If performance is lower than expectations, satisfaction
is low.
–If performance is higher than expectations,
satisfaction is high.

17. 1-17
3. Customer Value & Satisfaction
Customer satisfaction often leads to
consumer loyalty.
–Some firms seek to DELIGHT customers by
exceeding expectations.
–Delighted customers not only make repeat
purchases but also become willing marketing
partners and “customer evangelists”

18. 1-18
4.Exchange vs. Transaction
Exchange:
–Act of obtaining a desired
object from someone by
offering something in
return.
–Marketing occurs when
people decide to satisfy
needs and wants through
exchange.
Transaction:
–A trade of values
between two parties.
–One party gives X to
another party and gets Y
in return. Can include
cash, credit, or check.
Marketing actions try to create, maintain, and grow
desirable exchange relationships with target
audiences involving a product, service, idea, or
other object

19. 1-19
4. Relationships and Network
Relationship marketing is the practice of building long-
term relations with key parties such as customers,
suppliers, dealers, and distributors in order to retain their
long-term business activities.
–Marketers try to build up long- term, trusting “win – win”
relationships with them.
–This is accomplished by promising and delivering high quality of
goods, services, and fair prices to the other party over time.
Relationship marketing results in strong economic,
technical and social ties, among the parties. It build a
unique company asset called Marketing Network, which
consists of the company and its supporting stakeholders.

20. 1-20
5. What Is a Market?
The concept of exchange and relationships
lead to the concept of a market.
The set of actual and potential buyers of a product.
A Simple
Marketing
System

21. 1-21
6. Marketers & Prospects
 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.
A marketer creates and promotes value, while a
prospect is a potential customer who may
purchase that value. Effective marketing
strategies aim to turn prospects into loyal
customers by meeting their needs and providing
solutions.

22. 1-22
A Modern Marketing System
Main elements in a modern marketing system include:
–Suppliers
–Company (marketer)
–Competitors
–Marketing intermediaries
–Final users

23. Importance of Marketing
Marketing is a very important aspect in business since it
contributes greatly to the success of the organization.
Production & distribution depends largely on marketing.
Marketing covers advertising, promotion, public relation and
sales.
 So marketing have the following importance
–Marketing promotes product awareness to the public
–Marketing builds company reputation
–Marketing helps boost product sales
–Marketing helps boost product sales and revenue growth
whatever your business selling
–Marketing generate sales once the public learns about
the product through TV, Radio, Newspaper online
advertisement and other forms of Marketing.
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24. Basic Marketing Functions
Marketing functions are those specialized activities in which
a marketer participates in order to identify and source
potentially successful products for the market place and then
promote them by differentiating them from similar products.
The important functions of marketing include:
Research & Development
Buying function
Standardization & Grading
Packaging & Labelling
Branding
Pricing
Promotion
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•Physical Distribution
•Transportation &
Warehousing
•Customer-support
services

25. Evolution of Marketing
Marketing has evolved over time in response to
changing consumer needs, technological
advancements, and economic developments. This
evolution can be divided into several key stages:
1. The Production Era (Late 1800s – 1920s)The Production Era (Late 1800s – 1920s)
2. The Sales Era (1920s – 1950s)2. The Sales Era (1920s – 1950s)
3. The Marketing Era (1950s – 1980s)3. The Marketing Era (1950s – 1980s)
4. The Relationship Marketing Era (1980s – 2000s)4. The Relationship Marketing Era (1980s – 2000s)
5. The Digital & Social Media Marketing Era (2000s – 5. The Digital & Social Media Marketing Era (2000s –
Present)Present)
6. The Sustainable & Ethical Marketing Era (Emerging 6. The Sustainable & Ethical Marketing Era (Emerging
Trend)Trend)
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26. 1-26
Marketing Management
–The art and science of choosing target markets
and building profitable relationships with them.
•Requires that consumers and the marketplace
be fully understood
Designing a winning marketing strategy requires answers to the
following questions:
1.Target market
What customers will we serve?
2.Value proposition
How can we best serve these customers?

27. 1-27
1. Selecting Customers to Serve
Market Segmentation:
–Divide the market into segments of customers
Target Marketing:
–Select the segment to cultivate or go after
Demand
Management
–Finding and
increasing demand,
also changing or
reducing demand,
as in demarketing.
De-marketing
–Temporarily or
permanently reducing
the number of
customers or shifting
their demand.

28. 1-28
2. Choosing a Value Proposition
The set of benefits or values a company
promises to deliver to consumers to satisfy
their needs.
–Value propositions dictate how firms will
differentiate and position their brands in the
marketplace.

29. Marketing Management
Orientations(Philosophies)
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30. 1-30
Marketing Management Orientations
Production Concept
–Consumers will favor products that are
available and highly affordable.
–Focus on standardization and mass production
Product Concept
–Consumers favor products that offer the most
quality, performance, and feature
–The focus is on continuous product
improvement.

31. Marketing Management Orientations
Selling Concept
–Consumers will not buy enough of the firm’s
products unless the firm undertakes a large-scale
selling and promotion effort
Marketing Concept
– Know the needs and wants of the target markets
and deliver the desired satisfactions better than
competitors
–Customer focus and value are the paths to sales
and profits
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32. Selling & Marketing Concept: A Contrast
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33. Selling & Marketing Concept: A Contrast
1.It begins before sale and
continues after sale.
2.It focuses on consumer
needs.
3.It has long term perspective
aiming for growth and
stability.
4.It is a philosophy of
business.
5.Here, customer comes first,
then product.
6.It has wider scope.
1.It begins after production
and ends with the sale.
2.It focuses on seller’s needs.
3.It has short-term
perspective.
4.It is a routine day to day
physical process.
5.Here, product comes first,
then customers.
6.Its scope is narrower as
compared to marketing.
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Marketing Selling

34. Traditional Vs Modern Customer-Oriented
Organization Charts

35. Marketing Management Orientations
Societal Marketing Concept
–The company’s marketing decisions should consider
consumers’ wants, the company’s requirements,
consumers’ long-run interests, and society’s long-run
interests
–Companies should balance three considerations in
setting their marketing strategies:
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36. Marketing Mix and the Customer
Four Ps of Markting
Product
–Product Variety/Quality/ Design/
Features/Brand Name/ Packaging/
Sizes/Services/Warranties/Returns
Price
–List Price/Discounts/Allowances/
Payment Period/Credit Terms
Place
–Channels/Coverage/Assortments/
Locations/Inventory/Transport
Promotion
–Sales Promotion/Advertising/Sales
Force/Public relations/ Direct
Marketing
Four Cs
Customer solution
Customer cost
Convenience
Communication

38. Marketing Mix and the 4A’s

39. 1-39
Marketing in the New Digital Age
Digital and social media marketing involves using digital
marketing tools such as web sites, social media, mobile ads
and apps, online videos, e-mail, and blogs that engage
consumers anywhere, at any time, via their digital devices.
Greater connectivity means greater access to
information, faster travel and communication.
The Internet allows anytime, anywhere connections
between firms and customers.
–“Click-and-mortar” companies
–“Click-only” companies
–Business-to-business e-commerce

40. 1-40
New Marketing Landscape
The three forces that have dramatically
changed the marketplace, bringing
consumers and companies new
capabilities. The marketplace is also being
transformed by changes in channel
structure and heightened competition.
–Rapid Globalization
–Ethics and Social Responsibility
–Not-for-Profit Marketing

41. Marketing Management Tasks
Marketers can identify a specific set of tasks that
make up successful marketing management and
marketing leadership.
1.Developing marketing strategies and Plans – To identify the
potential long-run opportunities, considering the market experience and
core competencies and developing the concrete marketing plan.
2.Capturing marketing insights – To develop a reliable marketing
information system in order to closely monitor the marketing
environment and continually assess market potential and forecast
demand.
3.Developing strong, profitable, long-term relationships with
customers - understanding consumer markets (such as, people or
households who buys its products, and why? and business markets
(such as large corporations, professional firms, retailers, and
government agencies).
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42. Marketing Management Tasks
4. Building strong brands – to divide the market into
major market segments, evaluate each one, and target
those it can best serve and develop a positioning strategy
5.Creating. Delivering and Communicating Value –
designing tangible offering to the market, which includes
the product quality, design, features, and packaging.
Making price-related decisions , determining how to
properly deliver to the target market and developing a
marketing communication program.
6.Conducting marketing responsibly for long-term
success – Finally, a company needs to build a marketing
organization capable of responsibly implementing the
marketing plan.
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43. End-of-the-Chapter Review Questions
1.Define marketing according to Philip Kotler.
2.Explain the core marketing concepts.
3.Discuss the five competing concepts under which organizations can
choose to conduct their marketing activities?
4.Define marketing management. Discuss how an organization designs a
winning marketing strategy?
5.What is marketing mix (4P’s of Marketing)?
6.Differentiate between marketing and selling concept.
7.What is societal marketing concept?
8.What is relationship marketing?
9.Differentiate between traditional and modern customer-oriented
organizations.
10.Discuss the link between marketer and prospect?
11.Discuss the marketing process for creating and capturing customer
value?
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44. End-of-the-Chapter Review Questions
12. Discuss how marketing has changed in the new digital age?
13. What are the different marketing management tasks?
14. Define marketing myopia.
15. What are the different types of product offering?
16. Discuss the concept of needs, wants and demands?
17. What is a market?
18. Explain customer value by discussing the different types of
customer benefits and costs?
19. What are the goals of marketing?
20. Which factors have shaped the marketing in 21
st
century?
21. What are the main elements in a modern marketing system?
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