MARKETING

Introduction

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 Contents
 1- Defnition of Marketing.

 2- The Marketing Mix.

 3- Marketing Management.

 4- Marketing Management Philosophies

(Evolution of Marketing)

 5- Customer relationship management (CRM)

 6- How Business Practices are Changing
 7- Ethics in Marketing
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 I. Definition of Marketing :
1- Defining marketing as a function:
(MARKETING AMA’s definitions)

1.a MARKETING is a group of

activities concerned with the flow of
goods and services from the producer
to consumers.

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1.b MARKETING is the process of planning
and executing the conception, pricing,
promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy
individual and organizational objectives.

2-Defining marketing as meeting customer needs:

MARKETING is the process of determining

customer want and needs and then providing
customers with goods and services that meet
or exceed their needs or expectations.
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3-Defining marketing as a social and managerial process
MARKETING is a social and managerial process
whereby individuals and groups obtain what
they need and want through creating and
exchanging products and values with others.
This definition includes the following terms:
• (a) Needs and wants
• (b) Products
• (c) Value, Satisfaction and Quality
• (d) Exchange and Transactions
• (e) Market
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 Figure 1-1:
Core Marketing Concepts

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 A- Needs and Wants
• People have almost unlimited needs and
wants but have limited resources. Thus, they
want to choose products that provide the
most value and satisfaction for their money.

• Consumers view product as bundles of

benefits and choose products that give them
the best bundles for their needs and wants.

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 :B- Products
• People satisfy their needs and wants with
products. A product is anything that can be
offered to a market to satisfy a need or want.

• Products include goods, services, persons,

places, activities and ideas.
• Many sellers make the mistake of paying
more attention to the specific products that
they offer than to the benefits produced by
these products.

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What Can Be
?Marketed

• Goods
• Services
• Places
• Ideas
• Events
• Persons
• Properties
• Organizations
• Information
• Experiences

What is being
marketed in this ad?
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 :C- Value, Satisfaction and Quality
Customer value is the difference between the value
that the customer gains from owing and using a
product and the costs of obtaining the product.

• For example, customer can gain a number of benefits

from using visa card such as reliability, flexibility and
status and image values.
• Customers will weight these values against the costs
of using the service.

• Moreover, they will compare the value of using the

credit card against the value of using cash payment
and select the one that gives them the greatest value.
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Customer Satisfaction:
• It depends on a comparison of a product’s
perceived performance relative to a buyer’s
expectations. The marketer can face three
situations:
1. The product’s performance falls short of the
customer’s expectations, in this case the customer is
dissatisfied.
2. The performance matches expectations; in this case the
buyer is satisfied.
3. The performance exceeds expectations, in this case the
customer is delighted.
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• Therefore, marketers must be careful to set the
right level of expectations.
• Highly satisfied customer make repeat
purchases, are less price sensitive, remain
customers longer and talk favorably to others
about the company and its products.

Quality has a direct impact on product or

service performance. It is closely linked
to customer value and satisfaction.

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• Quality is the feature and characteristics of a product
or services that bear on its ability to satisfy customer
needs.
• This means that quality begin with customer needs
and ends with customer satisfaction.

D -Exchange and Transactions:

- Marketing occurs when people decide to satisfy
needs and wants through exchange.
- Exchange is the act of obtaining a desired object
from someone by offering something in return.

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 E- Market

• It is the set of actual and potential

buyers of a product.

• These buyers share a particular need or

want that can be satisfied through
exchange and relationships.

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2- The Marketing Mix :

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 Marketing Activities
4P’s& 4C’s
• Product (Customer Solutions)
• Price (Cost)
• Place (Convenience)
• Promotion IMC (Communication)
7 P’s (Extended)
• People
• Process
• Physical Evidence
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 3- Marketing Management

• It is the analysis, planning,

implementation and control of
programs designed to create, build and
maintain beneficial exchanges with
target buyers for the purpose of
achieving organization objectives.

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 Marketing Management
MR& Place Marketing
Promotion Price Product
MIS (Distn) Management

     Planning

 Organizing
Decision-
Making
 Directing

 Controlling

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Demarketing:
• When a marketer faces excess demand,
the needed marketing task is to reduce
demand temporarily or permanently.
• The aim of demarketing is to reduce or
shift the demand.
• Thus, marketing management seeks to
affect the level, timing and nature of
demand in a way that helps the
organization achieves its objectives.

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 ‫• ‪Marketing‬‬
‫• دكتور‪ /‬جمال سيد عبدالعزيز‬

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Marketing Management Philosophies: -4
(Evolution of Marketing)

There are five alternative concepts under which

organizations conduct their marketing
activities:
A. The production-orientation
B. The product-orientation.
C. The sales-orientation.
D- The marketing-orientation (the marketing
concept).
E- The Societal Concept of Marketing:

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 :A- The Production Concept
• It assumes that consumers will favor products that are
available and highly affordable.

• Therefore, management should focus on improving

production and distribution efficiency.

• This concept is applicable in 2 situations:

 when the demand for a product exceeds the

supply.
 when the product’s cost is too high and improved
productivity is needed to bring it down.

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 :B- The Product Concept

• It assumes that consumers will favor

products that offer the most quality,
performance and innovative features.

• Thus, an organization should focus its

efforts to making continuous product
improvements.

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 :C- The Selling Concept

• It assumes that consumers will not buy

enough of the organization’s product unless
it takes a large-scale selling and promotion
effort.
• Most firms practice the selling concept when
they have overcapacity.
• Their aim is to sell what they make rather
than make what the market wants.
• This concept focuses on creating sales
transactions rather than on building long-
term, profitable relationships with
customers.
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 :The Marketing Concept )4(

• It assumes that achieving organizational

goals depends on determining the needs and
wants of target markets and delivering the
desired satisfactions more effectively and
efficiently than competitors do.
• This philosophy emphasizes:
A- Consumer orientation
B- Service orientation
C- Profit orientation

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A- A Consumer orientation: find what consumers
want and provide it for them.

B- A service orientation —make sure everyone

in the organization has the same objective-
customer satisfaction. This requires that:
• All marketing functions should be well
integrated.
• Functional integration: all business functions
(marketing, production, finance, ..etc) should
be well integrated.
C- A profit orientation: market those goods and
services that will earn the firm a profit and
enable it to survive and expand to serve more
consumer wants and needs.
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 Figure 1-3:
The Selling and Marketing
Concepts Contrasted

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E- The Societal Concept of Marketing:
This philosophy emphasizes on the balance
among 3 considerations :
* Consumers * Society * The Company

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 Customer relationship management -5
(CRM)
CRM is “the overall process of building
and maintaining profitable customer
relationships by delivering superior
customer value and satisfaction.”

•It costs 5 to 10 times MORE to attract a

new customer than it does to keep a
current customer satisfied.

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How Business Practices are Changing -6

• From focusing on customer acquisition to focusing

on customer retention
• From over-promise, under-deliver to under-
promise, over-deliver
• From focusing on profitable transactions to
focusing on customer lifetime value
• From focusing on shareholders to focusing on
stakeholders
• E-Business and E-Marketing

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 7- Ethics in Marketing
• Social responsibility (Marketing Ethics)
requires that the organizations will not act
in a way, which harms the general public.
- Product (safety, quality , information)
- Promotion (exaggeration, corrupt selling
practices [Bribery, Extortion])
- Pricing (Psychological discounts, dumping)
- Place (Stock levels, dealing with the end-
users)
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