Marketing Management Ch 1

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Dr. Karim KobeissiIslamic University of

Lebanon - 2014


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Chapter 1: Defning

Marketing Management in aChanging World


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W ha t i s M a r k e t i ng ?

One o the good defnitions o marketing is: Theprocess by which companies create al!e or

c!stomers and b!ild strong c!stomer relationships in

order to capt!re al!e rom c!stomers in ret!rn"#otler$

%nother defnition: & Marketing is an organi'ational

!nction and a set o processes or creating(

comm!nicating( and deliering al!e to c!stomers

and or managing c!stomer relationships in ways


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W h a t i s M a r k e t i n g ?

Process: a series of actions or steps taken in order to

achieve a particular end.

Stakeholders: A party that has an interest in an enterprise

or project. The primary stakeholders in a typical

corporation are its investors, employees, customers and

suppliers.


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W h a t i s M a r k e t i n g ?

Value: The worth that a product has in the mind of the consumer.

The consumer's perceived value of a good or service affects the price that

he or she is willing to pay for it. or the most part, consumers are

unaware of the true cost of production for the products they !uy. "nstead,

they simply have an internal feelin# for how much certain products are

worth to them. Thus, in order to o!tain a hi#her price for their products,

producers may pursue marketin# strate#ies to create a hi#her perceived

value for their products. Value, a central marketin# concept, is primarily a

com!ination of $uality, service, and price %$sp&, called the customer

value triad. Value perceptions increase with quality and service but

decrease with price.


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What is Marketing Management?

Simply put, marketing managementis customer management and demand

anagement!, "otler.


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What )s Marketed?


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*TC++$$


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Who Markets?

% marketer is someone who seeks a

response,attention( a p!rchase( a

ote( a donation,rom another

party( called the prospect$


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M a r k e t e r s - D e m a n d . t a t e sMarketers are skilled at stim!lating demand or their prod!cts( b!t

that/s a limited iew o what they do$ Marketers are

responsible for demand manaement$ They seek to

in0!ence the leel( timing( and composition o demand to meet

the organi'ation/s obecties$ *ight demand states are possible:

1. Negative demandCons!mers dislike the prod!ct and mayeen pay to aoid it$

2. Nonexistent demandCons!mers may be !naware o or

!ninterested in the prod!ct$

!. Latent demand,Cons!mers may share a strong need that

cannot be satisfed by an e2isting prod!ct$

4. Declining demandCons!mers begin to b!y the prod!ct less

re3!ently or not at all$


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What is a Market?

The set o act!al and

potential b!yers o a prod!ct$

These people share a need or

want that can be satisfed

thro!gh e2change

relationships$


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Core Concept 6 7eed

7eeds6 basic h!man

re3!irements


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Types o 7eeds

8hysical:

9ood( clothing( shelter( saety

.ocial:

elonging( a;ection

)ndiid!al:


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Core Concept 6 Want

Wants 6 needs become wants when

they are directed to specifc

obects that might satisy the

need$ Wants are shaped by the

society$

% =$.$ cons!mer needs ood b!t may

want a 8hilly cheesesteak and an

iced tea$ % person in %ghanistan

needs ood b!t may want rice(

C C D d


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Core Concept 6 Demand

Demandsare wants or

specifc prod!cts

backed by an abilityto pay$

Many people want a

9errari > only a ew

are able to b!y one$


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Core Concept Market .egmenting

Market .egmentation is the s!b6

diiding o c!stomers into

homogeno!s s!b6set o

c!stomers where any s!b6set

may conceiably selected as

market target to be reached

with distinct Marketing Mi2$


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Core Concept Market Targeting

Market &aretin 6

*al!ating each

segment/s

attractieness and

selecting one or more

segments to enter$

&aret Market ' % set

o b!yers sharing

common needs or


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Core Concept MarketO;ering

9or each target market( the

frm deelops a tangible

market o(erin - a

combination of products,

information, and

experiences - that it

positions in the minds o

the target b!yers$

C C t Di; ti ti


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Core Concept Di;erentiationDi(erentiation is

the act o

designing a set

o meaning!l

di;erences to

disting!ish the

company@so;ering rom

competitor@s

o;erings$


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Core Concept 6 8 o s i t i o n i n g

8ositioning is the act o

arranging or a prod!ct to

occ!py a clear( distinctie(

and desirable place relatie

to competing prod!cts in the

minds o target cons!mers$


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Core Concept Aal!e 8roposition

The end res!lt o positioning is the creation o a market6oc!sed

val)e proposition - &*e set of bene+ts a company

promises to deliver to c)stomers to satisfy t*eir needs6

to answer the c!stomer/s 3!estion: &Why sho!ld ) b!y yo!r

o;er rather than a competitor/s o;er?" it is a simple clear

statement o why the target market sho!ld b!y the prod!ct$

,)c* val)e propositions di(erentiate one brand from

anot*er and t*e prod)cts position can be vieed as t*e

main res)lt of its di(erentiation.


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/ore /oncept ' rand


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/ore /oncept ' rand

brand is a name term sin symbol desin or

a combination of t*ese t*at identi+es t*e

prod)cts or services of one seller or ro)p of

sellers and di(erentiates t*em from t*ose of

competitors$

% brand name s!ch as McDonald/s carries many

associations in people/s minds that make !p its image:

hamb!rgers( cleanliness( conenience( co!rteo!s

serice( and golden arches$ %ll companies strie to b!ild

a brand image with as many strong( aorable( and

!ni3!e brand associations as possible$


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/ o r e / o n c e p t - M a r k e t i n


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/ o r e / o n c e p t - M a r k e t i n 3 n v i r o n m e n t

- The Marketing *nironment reers to the actors and orces

o!tside o the marketing department that a;ect

marketing management ability to b!ild and maintain

s!ccess!l relationships with target c!stomers$

- The Marketing *nironment is made !p o:

1$ The microenironment consists o the actors close to the

company that a;ect its ability to sere its c!stomers$

These orces are partially controllable by the company$

B$ The macroenironment consists o the larger societal

orces that a;ect the microenironment$These orces are

!ncontrollable by the company$


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/ o r e / o n c e p t - / o m p e t i t i o n

Competition incl!des all the act!al and potential rival

o(erins and s)bstit)tesa b!yer might consider$ %n

a!tomobile man!act!rer can b!y steel rom =$.$ .teel in

the =nited .tates( rom a oreign frm in apan or #orea( or it

can b!y al!mini!m or certain parts rom %lcoa to red!ce

the car/s weight( or engineered plastics rom .a!di asic

)nd!stries Corporation 4.%)C5 instead o steel$

Core Concept C!stomer .atisaction


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Core Concept C!stomer .atisaction

C!stomer satisaction

depends on the

prod!ct/s perceied

perormance relatie

to a b!yer/s

e2pectations$

. i i


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. a t i s a c t i o n

*2pectation

8erormance

1E

) perormance is lower than e2pectations( satisaction islow$

) perormance is higher than e2pectations( satisaction ishigh$

*2pectation

8erormance

1E


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Th M k ti Mi


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The Marketing Mi2 o aFood

8rod!ct


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8rod!ct

5rod)ct means the goods-and services combination

the compan o!ers to thetarget market.Th!s( a 9ord*scape consists o n!ts andbolts( spark pl!gs( pistons(

headlights( and tho!sands oother parts$ 9ord o;ersseeral *scape models anddo'ens o optional eat!res$

The car comes !lly sericedand with a comprehensiewarranty that is as m!ch apart o the prod!ct as thetailpipe$

8 r i c e


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8 r i c e

"rice is the amount of monecustomers must pa to obtain

the product. Ford calculatess!ggested retail prices that itsdealers might charge or each*scape$ !t 9ord dealers rarelycharge the !ll sticker price$)nstead( they negotiate the pricewith each c!stomer( o;eringdisco!nts( trade6in allowances( andcredit terms$ These actions ad!st

prices or the c!rrent competitieand economic sit!ations and bringthem into line with the b!yer/sperception o the car/s al!e$

8 l a c e


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8 l a c e

5lace incl)des companyactivities t*at make t*e

prod)ct available to taretcons)mers.

9ord partners with a large body oindependently owned dealerships

that sell the company/s manydi;erent models$ 9ord selects itsdealers care!lly and stronglys!pports them$ The dealers keep

an inentory o 9ord a!tomobiles(demonstrate them to potentialb!yers( negotiate prices( closesales( and serice the cars aterthe sale$

5 r o m o t i o n


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5 r o m o t i o n

"romotion refers to the entire setof activities that communicate

the intrinsic worth of theproduct and persuade taretc)stomers to b)y it.

9ord spends more than G1$H billioneach year on =$.$ %dertising to tellcons!mers abo!t the company andits many prod!cts$ Dealershipsalespeople assist potential b!yersand pers!ade them that 9ord is the

best car or them$9ord and its dealers o;er special

promotions,sales( cash rebates(and low fnancing rates,as addedp!rchase incenties$

M6K3&I78 MI9 f


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M6K3&I78 MI9 of a,ervice


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%n essential ingredient to any service proision

is the !se o appropriate sta; and people$

Iecr!iting the right sta; and training them

appropriately in the deliery o their serice is

essential i the organi'ation wants to obtain a

orm o competitie adantage$ .ta; sho!ld

hae the appropriate interpersonal skills(

attit!de( and serice knowledge to proide the

serice that cons!mers are paying or$

PEOPLE


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PROCESS

The b!ying e2perience is becoming more and more

important as the p!blic learns to e2pect better serice$

% poor process will lead to a poor !ser e2perience( and

some ery negatie e2pos!re$


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.erice l!eprinting14ank


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This is partic!larly important in sericesmarketing as it isthe only physical items that a c!stomer will see and so itm!st re0ect the image that the serice is trying to proect$incl!ding some o the ollowing:

)nternetLweb pages$ roch!res$ 9!rnishings$ .ignage 4s!ch as those on aircrat and ehicles5$ =niorms$

!siness cards$ The b!ilding itsel 4s!ch as prestigio!s oJces or scenichead3!arters5$

*2ample:

) yo! walk into a resta!rant yo!r e2pectations are o aclean( riendly( hygienic enironment which will want yo!

PHYSICAL EVIDENCE


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)n what way is yo!r o;ering a good deal or the

c!stomer? This is less abo!t yo! as

a b!siness improing yo!r own prod!ctiity orcost management( and more abo!t how yo!r

company passes this onto its c!stomers$

Iemember that this always needs to be tied with3!ality> yo! !se the best materials( and s!pply

the best serice( at a air price$

PRODUCTIVITY & QUALITY


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-# h a n n e l s


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# h a n n e l sTo reach a target market( the marketer !ses three kinds o marketing

channels:

1) #ommunication channels deliver and receive messages from

target buyers and include newspapers, magazines, radio, teleision(and the )nternet$ eyond these( frms comm!nicate thro!gh the looko their retail stores and Web sites and other media$

B5 The marketer !ses distribution channels to display, sell, or deliver

the physical product or serice4s5 to the b!yer or !ser$ Thesechannels may be direct ia the )nternet( mail( or mobile phone ortelephone( or indirect with distrib!tors( wholesalers( retailers( andagents as intermediaries$

K5 To carry o!t transactions with potential b!yers( the marketer also!ses service channels that include wareho!ses( transportationcompanies( banks( and ins!rance companies$

Marketers clearly ace a design challenge in choosing the best mi2 o

comm!nication( distrib!tion( and serice channels or their o;erings$

Marketing Management


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Marketing ManagementTasks

Deelopingmarketingstrategies

Capt!ringmarketing insights

Connecting with

c!stomers !ilding strong

brands

.haping marketo;erings

Deliering al!e Comm!nicating

al!e

Creating long6term growth

Marketing Management Ch 1

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