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ChapterOne:AnOver
viewofMar
ket
ingandMar
ket
ingManagement
Marketi
ngandItsCor
eConcept
s
Mar ket i
ng i s meet ing cust omer s’needs and want s profitably.Mar keting ist he
economi cpr ocessbywhi chgoodsandser v i
cesar eexchangedbet weent hepr oducer
andt heconsumerandt heirv aluesdet ermi nedi nt ermsofmoneypr ices.Al lofus
engage i n mar keting i n one oranot herway .When we ar e sear ching j ob we ar e
mar ket i
ngour selves, whenwear et ryingt oconv incecust omer st obuyourpr oduct sand
serv i
ces,wear emar keti
ng.Mar ket i
ng isso basi ct hati tcannotbeconsi der ed a
separ at
ef unct i
on.I ti sreallythewhol ebusi nessseenf r
om t hepoi ntofv iewoft hef i
nal
resul t,i
.e.
,from t hepoi ntofv iewoft hecust omer .Mar keti
ngi sav i
ewpoi nt,whi chl ooks
att heent i
rebusi nesspr ocessasahi ghlyi ntegr atedef f
ortt odi scover,cr eate,ar ouse
andsat isfyconsumerneeds.Manypeopl et hinkt hatmar ketingandsel li
ngmeant he
samet hing.Ot her st hinkt hatmar keti
ngi st hesameassel lingandadv erti
sing,st i
l
l
other shav eanot iont hatmar ketinghasgotsomet hingtodowi thmaki ngpr oduct s
availablei nt hest ores,ar rangingdi splaysandmai ntaini
ngi nvent ori
esofpr oduct sfor
futuresal es.Act uallymar ketingi ncludesal ltheseact ivit
iesandmanymor e.Mar keting
i
s a keyf unction ofmanagement .Itbr ings success t o busi ness or gani zati
on.A
busi nessor ganizat ionper for
mst wokeyf unct ionspr oducinggoodsandser vi
cesand
maki ng them av ailablet o pot entialcust omer sf oruse.An or ganizat i
on busi ness
successl argel ydependsonhow ef fici
ent l
yt hepr oduct sandser vicesar edel i
veredt o
cust omer sandhow di fferentlydot hecust omer sper ceivet hedi ffer
encei ndel iveryin
compar isont ot hecompet i
tors.Thi si strueofal l fi
rms.
Def
ini
ngMar
ket
ing
Businessi ngeneralrel
i
esonmar ket
ingtool stoattractandsat isf
ycust omer s,sot oo
doest hebusinessofsocialchange.Nobusi nessrel
iessol el
yonmar keti
ngi.e.,fi
nance,
product ion,tr
ansportandwar ehousi
ng,etc. ,ar
eessent i
al.Butwi thoutmar keti
ngno
sortt hecompanycoul dtsurv i
ve.Nomat t
erhow goodapr oductis,i fconsumer sar e
notmadeawar eofhowi tcoul dmeett hei
rneeds,andi fitisnotr eadi l
yavailableand
affordabl e,t
hecompanywi l
lfail.I
nshor t
,mar keti
ngi sanecessar y ,butnotsuf fi
cient,
factorf orsuccess.Theref
ore,central
ideaofmar ket
ingismat chi
ngbet weencompany ’
s
capabi li
tiesandthewantofcust omersinor dertoachi evetheobjectiv esofbothpar ties.
Sowhati
smar
ket
ing?
Therear edi fferentdef initi
onsofmar ketingt hathav ebeenf or
war dedbydi ffer
ent
authors,scholarsandi nsti
tutions.Toment ionf ew:-
 Mar keti
ngi smanagementpr ocesst hroughwhi chgoodsandser v i
cesmov ef r
om
conceptt ot hecust omer sv iadesi gni ng, whichi st hepr ocessofdef iningallaspects
andf eaturesofpr oductchar acteristicst omeetcust omer sdemand.Accor dingto
thisdefini
tion,mar ket i
ngi ncludest hecoor dinationoff ourelement scal l
edthe4P' s
ofmar keti
ng whi ch isi dent i
fi
cat ion,sel ect i
on and dev elopmentofa pr oduct,
determinationofi tspr ice,selectionofdi stributionchannelt oreacht hecust omer '
s
place,anddev elopmentandi mpl ement ationofapr omot i
onal st
rat
egy .
 Amer ican Mar keting Associ ati
on’s( AMA)def inition isv erybroad and a st ate
mar keti
ngasmar ketingist heact i
v i
ty ,setofi nstit
ut i
ons,andpr ocessesf orcreating,
communi cating,del iveri
ng,andexchangi ngof f
eringst hathav evaluef orcustomer s,
cli
ents,partners, andsoci etyatlarge.

ChapterOne:ChapterOne:AnOvervi
ewofMarket
ingManagement
PreparedbyWoldesi
lassi
eHai
l
emichael
,BAandMBAinManagement
 Page2of2

 “Market
ingistheprocessbywhi chcompani
escreatecust
omeri nt
erestinproducts
orservi
ces.I tgeneratesthest rat
egythatunderl
iessalestechniques,business
communi cat
ion,andbusi nessdev el
opment.Itisani nt
egrat
edpr ocessthr
ough
whichcompani esbui l
dst r
ongcust omerrel
ati
onshipsandcr eat
ev al
uefort hei
r
customersandf ort
hemsel ves.
”

 Mar
ket
ingi
sthesoci
alandmanager
ialpr
ocessbywhi
chi
ndi
vi
dual
sandgr
oups
obtainwhatt heyneedandwantt hroughcr eat
ing, offeri
ngandexchangi ngpr oducts
and/ orservicesofv aluewi thother s.”— Phil
ipKot l
er
 Mar ketingisanycont actt haty ourbusi nesshaswi thany onewho i sn’
tapar t
ofyourbusi ness.I tisal sot het r
ut hmadef ascinating,t heartofgetti
ngpeopl et o
changet hei
rmi nds, oppor tunityfory out oearnpr ofi
tswi t
hyourbusiness,chancet o
cooper atewi thotherbusi nessesi ny ourcommuni t
yory ourindustr
yandpr ocessof
buil
di nglastingrelationships. ”JayConr adLevinson
 Mar keting ist he pr ocess ofpl anning and execut ing the concepti
on,pr ici
ng,
promot ion,anddi stri
but i
onofi deas,goods,andser v i
cest ocreateexchangest hat
sati
sf yindiv
idual andor ganisational goals
 Mar keting i
s managementpr ocess r esponsiblef ori dent
ify
ing,anti
cipati
ng and
sati
sf yi
ngcust omerr equi r
ement spr ofi
tabl
y.”TheChar teredInsti
tut
eofMar keti
ng

I
ngener
al,
all
mar
ket
ingdef
ini
ti
onsf
ocuson:

 Identi
fyingcust omerneedsandwant s
 Translatingcust omer sneedst oproductand/orservicetosati
sfyi
ngt hem
 Communi cati
ngef f
ectivel
yandef fi
cientl
y
 Of f
eri
ngt hatint hewaypr omisedorasdesi gnedbasedoncust omers’need
analysis
Formanypeopl e,‘mar keti
ng’i ssi mplythet acti
csusedbycompani est osel ltheir
productsandser vi
ces;t hatis,t hef i
rsthalfofpr ev i
ousdef i
nit
ion‘thepr ocessof
planni
ngandexecut i
ngt heconcept i
on,prici
ng,promot i
on,anddi stri
buti
onofi deas,
goodsandser v i
ces’.Howev er,thesecondhal fofthisdef i
nit
ion–‘tocreateexchanges
thatsatisfyindiv i
dualandor ganizati
onalgoals’–i stheessenceofmar ketingandt he
basisforwhathasbeencal ledt he‘mar keti
ngconcept ’or‘ marketi
ngphi l
osophy ’
approacht odoi ngbusi ness.Thekeywor dsher ereferto‘sati
sfyi
ngexchanges’–f or
boththebuy er( thebenef itsder i
vedf r
om t heproductorser vi
cemeett hecustomer ’s
needs)andt hesel l
er(atapr i
cet hatmeetscost sandr et
urnsaprofit
)
Cor
econcept
sofMar
ket
ing
Mar keti
nghasbeendef i
nedinvar iousways.Thedef init
ionthatservesourpurposebest
i
st hat,“Marketi
ngisaSocialandManager ialpr ocessbywhi chindiv
idual
sandgr oups
obtainwhatt heyneedandwantt hroughcreating,offering,andexchangingproductsof
val
uewi t
hot hers”
.Thisdef
init
ionofmar ketingr estsont hefoll
owingcoreconcept s:
needs,want s,anddemands;pr oducts(goods,ser v i
ces,andi deas);val
ue,costand
sati
sfaction,
exchangeandtransact i
ons;mar kets,andmar ket
ers.
Needs – The mostbasi c conceptunder ly i
ng mar keti
ng isthatofhuman needs.
Mar keti
ng start
swi t
h human needsand want s.A human need i sa stateoff elt

ChapterOne:ChapterOne:AnOvervi
ewofMarket
ingManagement
PreparedbyWoldesi
lassi
eHai
l
emichael
,BAandMBAinManagement
 Page3of3

depr i
v at i
onofsomebasi csat isf act i
on;peopl er equi ref ood,cl othi ng,shel ter ,saf ety,
belongi ng,andest eem.Theseneedsar enotcr eat edbysoci etyorbymar ket er s.They
existi nt hev eryt ext ureofhumanbi ologyandt hehumancondi t
ion.
Want s–Want sar edesi resf orspeci fi
csat isf i
er sofneeds.Want sar eshapedbysoci ety,
cultur eandi ndiv idualper sonal ity.I ndi fferentsoci et y,want scanbesat isfiedi ndi fferent
way s.Fore. g.anEt hiopi anneedsf oodandwant s" Injer a"&" wet ",andanAmer ican
needsf oodandwant s“ hambur ger ”.Al thoughpeopl e'sneedsar ef ew,t hei rwant sar e
many .Human want s ar e cont inual ly shaped and r eshaped by soci alf or ces and
i
nst itut ions, incl udi ngchur ches, school s,fami li
es, andbusi nesscor por at i
ons.
Demands–ar ehumanwant sf orspeci fi
cpr oduct st hatar ebackedbyanabi lityand
willingnesst obuyt hem.Want sbecomedemandswhensuppor tedbypur chasi ngpower .
Manypeopl ewantt ohav eper sonalcomput er;onl yaf ew ar eabl eandwi ll
ingt obuy .
Compani esmustt her efor emeasur enotonl yhowmanywoul dwantapr oductbutmor e
i
mpor t
ant lywoul dact ual lybewi llingandabl et obuyi t.
Product( Goods,Ser vices,and I deas) :Peopl e sat isfyt hei rneeds and want s wi th
product s.Apr oducti sany thingt hatcanbeof f er edt osat i
sf yaneedorwant .I tcanbe
phy si cal goods, ser v ices, i
deasoracombi nat i
onofphy sical productal ongwi thser vi
ces.
Forexampl e,acomput ermanuf act ureri ssuppl yinggoods( comput er,moni tor ,and
print er) ,ser vices( del iver y,inst al lation,t rai ning,mai nt enanceandr epai r)andani dea
(comput at ional power ).
Val ueandsat i
sf act ion:Consumer susual l
yf aceabr oadar rayofpr oduct sandser vices
thatmi ghtsat i
sf yagi venneed.Hence, consumer smakebuy i
ngchoi cesbasedont heir
per cept ionsoft hev al uet hatv ar iouspr oduct sandser vicesdel i
v er.Cust omerv aluei s
thedi ff erencebet weent hev al ueofcust omergai nsf rom owni ngandusi ngapr oduct
andt hecost sofobt ainingt hepr oduct .Cust omerSat isfact iondependsonapr oduct ’
s
per cei vedper for mancei ndel iver ingv aluer elat ivet obuy erexpect ations.I fapr oduct '
s
per for mancef al lsshor toft hecust omer 'sexpect ations,t hebuy eri sdi ssat isf i
ed.I f
per for mancemat chesexpect at ions,t hebuy eri ssat i
sfied.I fper for manceex ceeds
expect ations,t hebuy eri sdel ight ed.Out st andi ngmar ketingcompani esdooutoft heir
wayt o keep t heircust omer s sat isfied because sat i
sfied cust omer s make r epeat
pur chases, andt heyt ellot her saboutt hei rexper iencewhi chobv i
ousl ypr ovidest hef ir
m
withcompet iti
v eadv ant age( goodwor dofmout hcommuni cation) ,ot herwi se,i ft hey
are notsat isfied,cust omer s wi llnotonl ybe r efrained f rom buy ing a company ’
s
product sbutal sot heyar el ikelyt ot al knegat i
v elyaboutt hef irmt ot hev erypr ospect i
ve
cust omer swhomaypossi blypur chaset hecompany ’spr oduct s( badwor dofmout h
communi cat ion) .Somecompani esev enai mt odel ightcust omer sbypr omi singonl y
whatt heycandel iver , t
hendel iver ingmor et hant heypr omi sed.
Exchange:Ear lierwhenwedef inedmar ket ingwesai dt hati ti nv ol vesexchangeof
product sf rom onepar t
yt ot heot herpar tyt osat isfyneed.Hence,wecansayt hat
mar ket ingoccur swhenpeopl edeci det osat i
sf yneedsandwant st hroughexchange.
Exchangei st heactofobt aini ngadesi redpr oductf rom someonebyof fer i
ngsomet hing
i
nr et ur n.I tisonl yoneoft heway st hatpeopl ecanobt ai nwhatt heyneed.Aper sonmay
getwhatheneedsbybeggi ngot her s,hunt i
ng,r obbi nget c.Asameansofsat isfying
needs, exchangehasmuchi ni tsf avor .Peopl edonothav et opr eyonot her sordepend
ondonat ions,nordot heymustpossessev er ynecessi t yf ort hemsel ves.Theycan
concent rat eonmaki ngt hi ngst hatt heyar egoodatmaki ngandt radi ngt hem f orneeded
Chapt erOne:Chapt erOne:AnOver viewofMar ket ingManagement
Prepar edbyWol desi lassi eHai lemi chael ,BAandMBAi nManagement
 Page4of4

i
temsmadebyot her s.Thus,exchangeal lowsasoci etyt opr oducemuchmor et hani t
woul dwi thanyal ternat i
v esy st em.Exchangemustbeseenasapr ocessr athert hanas
anev ent .Twopar t
iesar eengagedi nexchangei ft heyar enegot i
atingandmov ing
towar danagr eement .Whenanagr eementi sr eached,wesayt hatat ransact i
ont akes
place.At ransact ionconsi stsofat r
adeof fv aluesbet weent wopar ti
es.
Inconj unct iont oexchange,t hemar ket ershoul dbeabl et oof fersomet hing( product )
valuabl et ot hecust omersot hatt heywi llbei nitiatedt omaket heexchange.Gener al l
y
transact i
on mar ket i
ng i s a means bywhi ch t he so- cal led mar keterand pr ospect
(customer )exchangev aluest oeachot her ,hencewi tht hisr elationshi pi nbet weent he
mar ket erandt hecust omeri st obecr eat ed.Her e,t her elationshi pmi ghtt urnoutt obe
forshor t-termt r
ansact i
on( relat ionshipt hatl ast swi tht hecompl et ionoft heexchange
process)orl ong- termt ransact ion( relat i
onshi pt hatcont inuesaf tert het ransact ioni s
compl eted. ).Obv iousl yt her elat i
onshi pt hatamar ket ershoul dst rivet obui ldshoul dbe
l
ong- ter mr elat i
onwi thcust omer sbypr omi singandconsi st ent l
ydel i
ver i
nghi ghqual it
y
product s, goodser vi
ce, andf ai rpr i
cest henpr ofitwi ll begai nedf rom cust omer sonl ong
term basi sf rom r epeat edpur chases.
Mar ket s:Theconceptofexchangel eadst ot heconceptofamar ket .Amar ketconsi sts
ofal lthepot ent i
al andact ual cust omer sshar ingapar ticularneedorwantwhomi ghtbe
wi l
li
ngandabl et oengagei nexchanget osat isfyt hatneedorwant .Thust hesi zeoft he
mar ketdependsont henumberofpeopl ewhoexhi bitt heneedorwant , hav er esour ces
thati nter estot her s,andar ewi l
li
ngandabl et oof fert heser esour cesi nexchangef or
whatt heywant .Her e,unl i
ket heEconomi csappr oacht hatconsi der smar ketasa
collectionofbuy er sandsel lers, weshal lconsi dermar ketasacol lect i
onofbuy er sonl y
andt hesel l
er sar econsi der edasi ndust ry .
Mar ket er :The conceptofmar kets abounds us t ot he conceptofmar ket i
ng as
mar ket ingmeanssi mpl yhumanact ivit
yt hatt akespl acei nr elat i
ont omar ket st omake
anexchangeofv aluesamongi ndividual s.Si mpl ywecansayt hatmar ket i
ngmeans
wor kingwi thmar ket st oact ual izepot ent ialexchangesf ort hepur poseofsat isfy ing
humanneedsandwant s.I foneoft het wopar t
iesi nv olvedi smor eact i
v elyseeki ngan
exchanget hant heot herpar ty, obv i
ousl yi tshoul dmakesomeef for tst omaket heot her
par t
yi nt erest edi nt heexchangeandhence,t hispar t
yi sr ef erredt oasmar ket er.Thi s
meansmar ket eri sapar tyt hatseeksar esour cef rom t heot herpar t yandi nr etur n
wi l
li
ngt oof fersomet hingv aluabl et ot heot herpar tyandt hepar tywi thwhom t he
mar ket erneedst omakeexchangei sknownaspr ospect .I nt heev entt hatbot ht he
par t
iesact i
v elyseekanexchange,wesayt hatbot hoft hem ar emar keter sandcal lt he
situationasr ecipr ocal mar ket ing.

Mar
ket
ingManagementPhi
l
osophi
es
Mar keti
ngi stheconceptt oknowy ourcust omer sneedsandwant s,pr
ovidi
ngpr oducts
andser vi
ceswhi chser vesasasol ut
ionf orcustomer s’pr obl
em.Inmoder nwor l
d
organizati
onst akecar eoft hei rcustomersandmai nt
ainingl ongtermrelati
onship.In
pastor ganizati
onsnothadsi milarthi
nkingasi tistoday,mar keti
ngconceptisadopt ed
byor ganizationinadi f
ferentway .The thinkingandper cepti
onsofor ganizat
iont o
provideproduct swhi chserv esasasol uti
onf orcustomers’pr obl
em arereferr
edtot he
phil
osophi es“ Organizati
onpi ctur
eofmar keti
ng”.Asweknow,ev erycompanyhas
di
f f
erentidear egardingphi l
osophyofmar keti
ng.Somecompani esconcent r
ateont he
ChapterOne:Chapt erOne:AnOver vi
ewofMar ketingManagement
PreparedbyWol desil
assieHail
emi chael,
BAandMBAi nManagement
 Page5of5

l
argescaleproducti
onwhi l
esomeconcent rateonl
yont hequali
tyoftheproductetc.
Ther
efore,underthemarketi
ngphil
osophy,therear
ef ol
lowingf
iveconcept
s:Thereare
fi
vedif
ferenttypeofmarketi
ngconceptsnamel yproducti
onconcept,pr
oductconcept,
sel
li
ngconcept, mar
ket
ingconceptandsocietalmarketi
ngconcept.

ThePr
oduct
ionConcept
Thepr oducti
onconcepthol dst hatconsumer swi llfavorproduct st hatareav ail
abl eand
highlyaf for
dabl e.Ther efore,managementshoul df ocusoni mpr ovingproduct i
onand
distri
but i
onefficiency.Thi sconcepti soneoft heol destor i
entationst hatguidesel lers.
Thepr oducti
onconcepti sst illausef ulphil
osophyi nt wotypesofsi t
uati
ons.Thef ir
st
occur swhent hedemandf orapr oductexceedst hesuppl y
.Her econsumer saremor e
i
nt erestedinobt aini
ngt hepr oductt hani nitsf i
nepoi nts(features),andsuppl ierst aking
thisadv antagewi l
lconcent rat eonf indingway stoincr easepr oduct i
onanddi st
ribution.
Thesecond si tuati
on occur swhen t hepr oduct ’
scosti st oo hi gh and hast o be
decreasedt oexpandt hemar kett hroughbyachi evingeconomi esofscal e.Itusesi ts
l
owercost stocutpr icesandat tractmor econsumer sandhenceexpandt hemar ket
size.Al thoughusef ulinsomesi tuat ions,thepr oduct i
onconceptcanl eadt omar keting
theirownoper at i
onsandl osi ngsi ghtoft her ealobject i
ve–sat i
sf yi
ngcust omerneeds
andbui l
dingcust omerr el
ationshi ps.
2.ThePr
oductConcept
Theproductconcepthol
dsthatconsumer swi
llf
avorthoseproductsthatofferthemost
quali
ty,per
formanceori
nnovati
vefeatur
es.Managersintheseorganizat
ionsfocust hei
r
energyonmaki ngsuper
iorproduct
sandi mprovi
ngt hem overti
me.Theyassumet hat
buyersadmi r
ewell-
madeproductsandcanappr ai
sepr oductquali
tyandper formance.
Howev er,t
hesemanagersaresomet i
mescaughtupi nal oveaff
airwiththeirproduct
anddonotr eali
zewhatt
hemar ketneeds.
Productori
entedcompany’
sof t
endesignthei
rproductswithli
tt
leornocust omerinput.

ChapterOne:ChapterOne:AnOvervi
ewofMarket
ingManagement
PreparedbyWoldesi
lassi
eHai
l
emichael
,BAandMBAinManagement
 Page6of6

Theyt rustt hatthei

rengineerscandesi gnexceptionalproducts.Veryof tent
heywi l
lnot
even exami ne compet it
or's products.Even,what ever,qualit
ypr oducti s produced
withoutconsi deri
ngtheconsumer s’needs,therewi l
lbenodemandf ortheproductin
mar ket.Consumer s pl
ace or dersto purchase a productbecause t hereis certai
n
problem wi tht hem.Thesol ut
iont otheproblem isthepr oduct
.Theconsumer sbuyt he
productonl ywhent hereisapr obl
em andwhent heywi shasol ut
ionf rom t
hepr oduct.
Otherwi se,noneedofbuy i
ngt heproductevenifthepr oductisqualit
yandpr ovidesthe
bestper for
mancef orsomeot herpurpose.Thisconceptl eadsmar keterstomar keti
ng
My opia.,mi stakeofpay ingmor eattenti
ont ospecifi
cpr oductsthatcompanyof f
ers
thant ot hebenef i
tsandexper i
encespr oducedbyt hosetheseproduct s.

3.TheSel
l
ingConcept
Thesel l
ingconceptassumest hatconsumer sandbusi nesseswi llnotbuyenoughof
thef irm’ spr oductsunl essi tunder takesl arge- scal esel l
ingandpr omot ionef fort.Thi s
concepti st ypical
lypr act icedwi thunsoughtgoods–goodst heconsumerdoesnot
knowaboutorknowsaboutbutdoesnotnor mal l
yt hinkofbuy ing, suchasi nsur anceor
blooddonat ions.Thesei ndust ri
esmustbegoodatt racki ngdownpr ospect sandsel li
ng
them onpr oductbenef its.Mostf i
r mspr act icet hesel l
ingconceptwhent heyhav e
over capaci ty.
Thebasi soft histhi
nki ngi st hatthecust omer scanbeat tr
acted.Keepi ngi nv iewt his
conceptt hesecompani esconcent ratet heirmar ket ingef fortst owar dseducat i
ngand
attract i
ngt hecust omer s.I nsuchacaset heirmai nt hinkingi s‘ selli
ngwhatyouhave’ .
Thesel l
i
ngconceptbasi cal l
yr efl
ectst hepossi bi l
i
t yt hatcust omer swon’ tbuyenoughof
the or ganization’s product s unl ess compr ehensi ve pr omot i
onalas wel las sel li
ng
endeav orsar eunder t
akenbyi t.Thisconceptof f erst hei deat hatbyr epeat edef f
or ts
onecansel l
-any t
hingtot hecust omer s.Thi smayber ightf orsomet i
me, buty oucannot
doi tf oral ong- t
ime.Ify ousucceedi nent icingt hecust omeronce,hecannotbewon
overev eryt i
me.Ont hecont r
ar y,hewi l
lwor kf ordamagi ngy ourr eput ati
on.Ther efore, i
t
canbeasser tedt hatthi sphi losophyof fer
sonl yashor t-term adv ant ageandi snotf or
l
ong- term gai ns.Nev er thel ess,mar ketingbasedonhar dsel l
ingcar rieshi ghr isks.I t
assumest hatcust omer swhoar ecoaxedi ntobuy ingapr oductwi llli
kei t,andev eni f
theydonotl i
kei t,
theywi llnotbad- mout hi
torcompl ai nt oconsumeror gani zat i
onsand
willf orgett heirdisappoi ntmentandbuyi tagai n.Thesear eindef ensibl eassumpt ions
becauseonest udyshowedt hatdissat isfi
edcust omer smaybad- mout ht hepr oductt o
10ormor eacquai ntances; badnewst ravelsf ast .

4.Themar
ket
ingconcept
Themar keti
ngconcepthol dsthatachi evingorgani
zati
onalgoal
sdependsonknowi ng
theneedsandwant soft ar
getmar ket sanddel i
ver
ingthedesir
edsat isf
acti
onsbet t
er
thancompet i
torsdo.Undert hemar keti
ngconcept,customerfocusandv al
uear ethe
pathst osalesandpr ofit
s.
Inst
eadofapr oduct-cent ed“
er makeandsel l”phil
osophy,t
hemar ketingconceptisa
customer -
centered“senseandr espond”phi l
osophy.Itv
iewsmarketingnotas“ hunt
ing,
”
butas“ gardening,
”Thej obisnott of i
ndt heri
ghtcustomersforyourproduct,
buttof i
nd
therightproductsfory ourcustomer s.

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ewofMarket
ingManagement
PreparedbyWoldesi
lassi
eHai
l
emichael
,BAandMBAinManagement
 Page7of7

Mar
ket
ingconceptcompar
edwi
tht
heSel
l
ingconcept
St
art
ing Focus Means Ends
Poi
nt

Sel
l
ing Fact
ory Exi
sti
ng Pr
omot
ing Pr
ofi
tthr
oughsal
es
concept Pr
oduct
s andSel
l
ing Vol
ume
Mar
ket
ing Mar
ket Cust
omer I
ntegr
ated Pr
ofi
tthroughSal
es
vol
ume& cust omer
concept Needs Mar
ket
ing sat
isf
acti
on

Sel
l
ingconceptt
akesani
nsi
de-
outper
spect
ive.I
tst
art
swi
tht
hef
act
ory
,focusesont
he
company ’
sexi sting pr oduct s,and cal l
sf orheav ysel li
ng and pr omot ion t o obt ain
profitabl esal es.Itf ocusespr imarilyoncust omerconquest–get ti
ngshor t-t
er m sal es
withl ittl
econcer naboutwhobuy sorwhy .I ncont rast ,themar keti
ngconceptt akesan
outsi de-inper spect ive.
Mar ket ingconceptst artswi t
hawel l
-def i
nedmar ket,f ocusesoncust omerneeds,and
i
ntegr atesal lthemar ket i
ngact i
viti
est hataf fectcust omer s.I nturn,i ty i
el dspr of i
tsby
creat ingl astingr elationshi pswi t
ht her ightcust omer sbasedoncust omerv al ueand
satisf action.
5.TheSoci etalMar ket i
ngConcept
The Soci etalmar ket i
ng conceptquest ions whet hert he pur e mar ket ing concept
over l
ookspossi bleconf lict sbet weenconsumershor t-runwant sandconsumerl ong- run
wel f
ar e.I saf i
rmt hatsat i
sfiest hei mmedi at eneedsandwant soft ar getmar kets
alway s doi ng what ’s bestf orconsumer si nt he long r un?A soci al
lyr esponsi ble
companymustt akei ntoaccountt hel ong- runconsumerandsoci etalwel fare.The
drawbackofmar ket ingconcepti st hati tignor est hel ong- runsoci etalwel fareand
focusesonl yont heshor t-runbenef it
s.Forexampl e,apr oduct ,whi chgi vesshor t-run
consumersat i
sfact i
on,mayhav eadv er seef fect si nt hel ong-r un.Ci gar ettef act ories
andaut omobi l
ecompani eswhi chcausesenv ironment alpr oblem ar egoodexampl es
fort his.I thas,ther ef ore,beenf eltthatt hemar ket i
ngconceptber evisedi ncor por ating
thel ong- runsoci et alwel f are.Thesoci et almar ketingconcepthol dst hatmar keting
strategyshoul ddel iverv al uet ocust omer si nawayt hatmai ntainsori mpr ov esbot ht he
consumer ’
sandt hesoci ety’swel l-being.Thi sconceptbal ancesconsumer s’want s
satisf action,company pr ofits and soci et
al/ human wel f
ar e pr oduct i
v i
t y.Soci et al
mar ket ingusescompani est hatacti nsoci al
lyr esponsi bl
eway si ntheachi evementof
theirpr of i
tgoal s( e. g.,compani es t hatv olunt aril
yuse bi odegr adabl e pr oduct si n
product ionpr ocesses, r
ecy clablepackagi ng, et c.).Thi swasconsi deredanext ensi onof
theor i
ginalmar ket i
ngconceptf rom pr of itthr oughi dentificationandsat isfact i
onof
consumerneeds, topr ofitt hroughi dent ificationandsat i
sfact i
onofconsumerneeds‘ i
n
awayt hatpr eserv esori mpr ov estheconsumer ’sandt hesoci ety’sWel lbei ng.

I
mpor
tanceofMar
ket
ing

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ewofMarket
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PreparedbyWoldesi
lassi
eHai
l
emichael
,BAandMBAinManagement
 Page8of8

Aconsumermaypaymor ef orani tem justbecauseofmar ket i

ng, butwi thoutmar keting
hemaynotbepur chasi ngt hei tem atal l.Mar ket i
nghasi ncr edi blebenef it
sandour
economywoul d col l
apse wi thouti t.Mar ket i
ng empl oymanypeopl e;i ti ncr eases
compet ition,andi tleadst obet terpr oduct s.Mar ket ingi sanessent ialpar toft he
capi talistsoci ety
Mar ket i
ngempl oy smanypeopl e,di rectlyandi ndi rectly.Notonl ydoesi templ oyt he
peopl ewhomakeadv er t
isement sandgett hewor doutt her e,buti templ oy smany
peopl ei ndirect l
y .Adv er ti
sement sandsponsor shipspayf ormanyat hletessal ari
es.
Adv er tisement shel ppayf ornewspaper ,t elev i
si onshows,i nter netwebsi tes,andmany
otheri tems.Thesust ainabilityofpeopl e’sj obsi sl i
ket hef oodchai n,ifonesmal l,but
i
mpor tant , i
tem i st akenoutt henev erythingandev er yonei saf fect ed.I fmar ketingi st o
ceasei tsexi stencemanypeopl ewoul dl oset hei rj obs,whi chi nt ur ncausest hem t o
l
oset hei rbuy i
ngpower ,whi chcausesl essi temst obesol d, whi chcausespeopl et obe
l
aidof fandt hent hecy cleget swor se.Apr oductmaybecheaperwi thoutmar keting, but
few peopl ewoul d beabl et o buyi tbecausemanypeopl ewoul d beunempl oyed.
Mar ket i
ngi sal soi mpor tantasi tallowscompet i
tion.Compet it
ioni sacr uci alpar tofour
economy ,ithel pskeeppr i
cesf airandkeepbusi nessesont hecut tingedge.Mar keting
helpsi nf or mt hepubl i
caboutdi fferentcompani es’v ersionoft hesamebasi cpr oduct .
Wi t
houtmar ket ing,onl yt hecompanyt hati swel lknownwi llgetbusi ness,whi let he
othercompani esdon' tst andachance.Bi gcor por ationsgotwher et heyar etodayby
effect ivel ymar ket ingt heirpr oduct s,wi thoutanymar ketingt hesebusi nessesnev er
woul dhav eexpandedsomuch.Thenegat iveef f
ect sofonecompanydomi nat i
ngt he
busi nessi st hatt heycansetanypr iceandsel lanyqual i
typr oductt heychose.I ft her e
arepeopl et ocompet ewi t
h,t hebusi nessmustkeepi tspr icesl ow enoughandi ts
qual i
t yhi ghenoughi nor dert opr eventi t
scompet iti
onf r om get ti
ngi tscust omer s.
Mar ket i
ng f acilitat es t he compet i
tion t hati s so i mpor t antt o oursoci et y.Fi nal l
y,
mar ket i
ngi sbenef icialbecausei tencour agest hei nv entionofnewpr oduct s.Cr eat inga
newpr oducti si ncr edibl yr i
sky ;al otoft imeandmoneygoi nt ot hepr oject .Inor dert o
breakev ent hei nv entormustsel laconsi derabl enumberofhi spr oduct s.Unf ortunat ely,
thiswoul dbev irtuall
yi mpossi blei namar ket i
ng- f
reesoci ety .Adv er t
isement sand
promot ionshel pgett hewor doutaboutanew pr oduct .Wi thoutmar ket ingv eryf ew
peopl ewoul dev erhearaboutt henewpr oduct ;ther ef ore,v er yf ewpeopl ewoul dbuyi t
.
Get ti
nganew pr oductt osel lwi t houtanymar ket ingi st oohugeofar i
skf ormost
busi nessmen.Thi sl arger i
skwoul dleadt oast agnat i
oni nt hecr eat i
onofnew i tems
andsev erelyl i
mi tourabi li
tyt ocompet ewi thot hernat i
ons.Mar ket ingi sessent i
al toour
economyandmanypr obl emswoul dbeencount er edi fwechoset ogetr idofi t
.Wi thout
mar ket i
ngt her ewoul dn' tbeamar kett obuyandt her ewon' tbei nnov ativepr oduct st o
sell.Thel ackofmoneybei ngspentandr ecei v edwi l
lpr ompt lyl eadt odef lati
onanda
disintegr at i
onofsoci etyasweknowi t
ScopeofMar
ket
ing
ScopeofMar keti
ngisseenast hetaskofcr eat
ing,promoting&deliver
inggoods&
servi
cestoconsumers&busi nesses.Marketer
sar eski
lledinsti
mulati
ngdemandf or
company’
s products;they arer esponsi
blef ordemand management .Mar ket
ing
managersseekt oinfl
uentthel evel
,ti
ming& composi t
ionofdemandt omeett he
organi
zat
ion’
sobjecti
ves.Mar keti
ng peopl
e areinvolv
ed in marketi
ng 10 t
ypesof
ChapterOne:ChapterOne:AnOvervi
ewofMarket
ingManagement
PreparedbyWoldesi
lassi
eHai
l
emichael
,BAandMBAinManagement
 Page9of9

ent
it
ies;
 Goods
 Servi
ces
 Experi
ences
 Ev
ent
s
 Per
sons
 Pl
aces
 Pr
oper
ti
es
 Or
gani
zat
ions
 I
nfor
mat
ion
 I
deas
Thegoal
sofmar
ket
ingSyst
em
Mar ketingi snotaonet imeact i
vit
yi ti sacont i
nuouspr ocessandaf f
ectsdi f
fer
ent
partieswi thdi ff
erentinterestssuchas,cust omers,suppli
ers,andt hepubl i
cet c.Most
ofthet imet heinterestoft hesedi fferentpar t
iesconf l
i
cteachot her.Themar ket
ing
system gener all
yhasf ourgoal s.
1.Maxi mizing consumpt i
on-mar ket i
ng st imulat
es maxi mum demand.Maxi mum
consumpt i
oni nt
ermaxi mi zepr oduction, empl oy
mentandweal th.
2.Maxi mizing Sat i
sfaction-Owni ng one pr oductgi ves sense when i tmaxi mized
sati
sf actiont ocust omer s.Mar keti
ngsy stemsmaxi mizesat i
sfact
ionbycr eati
ngand
providing–qual i
typroduct s--variet
ypr oduct setc.
3.Maxi mizingchoi ces—mar ketingsy stem pr ovi
desv ari
eti
es.Asar esulttheconsumer
will
f indpr oductsthatf i
ttot heirexactt est.
4.Maxi mi zi
ng l i
fe quality—the par ti
cipation ofmar ket
ing system in env ir
onment al
protectionmaxi mizet hequal i
tyofl ifeofconsumer .Asar esultofthist helifestyl
e
consumer sleadstoqual ityoflifeachiev ed

ChapterOne:ChapterOne:AnOvervi
ewofMarket
ingManagement
PreparedbyWoldesi
lassi
eHai
l
emichael
,BAandMBAinManagement