Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Marketing Management

Prepared by : Soft Skills Unit
Reference
Course Outlines
Lecture 1 : Marketing Principles

Lecture 2 : Market Segmentation and Target Markets

Lecture 3 : Consumer...
Lecture 1 - Contents
A. Definitions
B. Concepts
C. Difference Between Marketing & Selling
D. The Marketing Environment
E. ...
Marketing Principles
A. Definitions
- Marketing deals with identifying & meeting human & social needs.
- Marketing is a so...
B. Concepts
1. Customer Needs, Wants and Demands

2. Exchange and Transactions
3. Markets
B .1. Customer Needs, Wants and Demands
Needs: They are states of felt deprivation, They include basic physical needs for
...
B .2. Exchange
Exchange : The act of obtaining a desired object from someone by offering
something in return.
• It is the ...
B. 3. Markets
The Market word has many definitions :
• A market is a place where buyers and sellers meet, good and
service...
B. 3. Markets

A Modern Marketing System
C. Difference between Marketing & Selling

The Selling concept takes an inside-out perspective.
It starts with the factory...
C. Difference between Marketing & Selling
• The Marketing concept starts with a well-defined market.
• It focuses on custo...
C. Difference between Marketing & Selling
D. The Marketing Environment
-The Marketing Environment is the actors and forces outside marketing that affect
marketing m...
Microenvironment

Actors in the Microenvironment
1- The Company: Marketers must work in harmony with other company
departments to create customer value and relationships.
...
2- Suppliers: provide the resources needed by the company to produce its goods and
•

services
Supply shortages or delays,...
3- Marketing Intermediaries: They include resellers, physical distribution firms,
marketing services agencies, and financi...
Microenvironment: Marketing Intermediaries
• Physical distribution firms help the company stock and move goods from
their ...
4- Competitors: The marketing concept states that, to be successful, a company
must provide greater customer value and sat...
Microenvironment
5- Publics: it is any group that has an actual or potential interest in or
•

•

•

•

impact on an organ...
Microenvironment
6- Customers:
• Consumer markets consist of individuals and households that buy goods
and services for pe...
Macroenvironment

Major Forces in the Company’s Macroenvironment
Macroenvironment

1- The Demographic Environment: Demography is the study of human
populations in terms of size, density, ...
Macroenvironment
3- The Natural Environment: involves the natural resources that are
needed as inputs by marketers or that...
Macroenvironment

4- The Technological Environment: Forces that create new technologies,
creating new product and market o...
E. The Marketing Mix
The set of tactical
marketing tools—
product, price, place, and
promotion—
that the firm blends to
pr...
E.1 Product
Product is anything that can be offered to a market for attention, acquisition,
use, or consumption that might...
E.1 Product

Marketing Considerations for Consumer Products
Product Life-Cycle
Three Levels Of Product
1. Core benefit level; the customers purchase
a product because of the functional benefit
the prod...
E.2 Place
• Place: refers to how an organization will distribute the product or service they are offering
to the end user....
Comparison of Conventional
Distribution Channel with
Vertical Marketing System
E.3 Price
Price: It is the amount of money charged for a product or service.
•It is agreed upon that the price offered mus...
2- Market Penetration Pricing
Setting a low price for a new product to attract a large number of buyers and a large
market...
E.4 Promotion Mix
It is the specific blend of promotion tools that the company uses to persuasively
communicate customer v...
1. Advertising
•There are many advertising 'media' such as newspapers, magazines and journals,
television, cinema, outdoor...
Sample of Good ADs
Sample of Bad ADs
2. Sales Promotion
Short term incentive to encourage customers to make a purchase.

• There are many sales promotion types...
3. Public Relations
• Used to obtain favorable publicity, building good corporate image and handling
unfavorable rumors, s...
4. Personal Selling
• Personal presentation by the firm’s sales force for the purpose of

making sales & building customer...
5. Direct Marketing
• Direct marketing is a type of advertising campaign that seeks to elicit an action (such as
an order,...
4 Ps Versus 4Cs
In this age of customer value and relationships, the four sellers’ 4 Ps might be better described
as the c...
F. The Marketing Analysis
What is Organization’s SWOT ?
• It is a marketing analysis tool that involves monitoring the external and internal
marketi...
Strength can be …
•

Valuable competencies or know-how

•

Valuable physical assets

•

Valuable human assets

•

Valuable...
Weakness can be …
• Deficiencies in know-how or expertise or competencies
• Lack of important physical, organizational, or...
• External environment (opportunities / Threats) analysis:
o An opportunity is a factor that the company may be able to ex...
Sources of a marketing opportunity…
• Diversify your business interests
• Is to supply an existing product or service in a...
Examples of threats…
• Changing customer tastes
• Technological advances
• Tax increase
• Change in governmental policies
...
Build on your

Strengths

Recognize your

Weakness
Evaluate your

Opportunities
Research your

Threats
Example:

Sonic’s Strengths, Weaknesses, Opportunities, and Threats
Tools for Strategy Formulation

•

SO Strategies: Use strengths to take advantage of Opportunities

•

WO Strategies: Over...
Marketing management topic 1
Marketing management topic 1
Marketing management topic 1
Marketing management topic 1
Upcoming SlideShare
Loading in …5
×

Marketing management topic 1

1,431 views

Published on

Published in: Marketing, Business
  • Be the first to comment

Marketing management topic 1

  1. 1. Marketing Management Prepared by : Soft Skills Unit
  2. 2. Reference
  3. 3. Course Outlines Lecture 1 : Marketing Principles Lecture 2 : Market Segmentation and Target Markets Lecture 3 : Consumer Buying Behavior and Decision Making Lecture 4 : Marketing plan
  4. 4. Lecture 1 - Contents A. Definitions B. Concepts C. Difference Between Marketing & Selling D. The Marketing Environment E. The Marketing Mix – 4Ps F. The Marketing Analysis
  5. 5. Marketing Principles A. Definitions - Marketing deals with identifying & meeting human & social needs. - Marketing is a societal process by which individuals and groups obtain what they need through creating , offering and freely exchanging products and services of value with others. -Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
  6. 6. B. Concepts 1. Customer Needs, Wants and Demands 2. Exchange and Transactions 3. Markets
  7. 7. B .1. Customer Needs, Wants and Demands Needs: They are states of felt deprivation, They include basic physical needs for food, clothing, warmth and safety Wants: They are the form human needs take as they are shaped by culture and individual personality. Ex: An American needs food but wants a Big Mac, French fries, and a soft drink Demands: Human wants that are backed by buying power.
  8. 8. B .2. Exchange Exchange : The act of obtaining a desired object from someone by offering something in return. • It is the core concept of marketing. • Exchange is a value creating process because it normally leaves both parties better off.
  9. 9. B. 3. Markets The Market word has many definitions : • A market is a place where buyers and sellers meet, good and services are offered for sale and transfers for ownership occurs. • A market is the set of actual and potential buyers of a product or service.
  10. 10. B. 3. Markets A Modern Marketing System
  11. 11. C. Difference between Marketing & Selling The Selling concept takes an inside-out perspective. It starts with the factory. It focuses on the company’s existing products. It calls for heavy selling and promotion to obtain profitable sales. • It focuses primarily on customer conquest—getting short-term sales with little concern about who buys or why. • • • •
  12. 12. C. Difference between Marketing & Selling • The Marketing concept starts with a well-defined market. • It focuses on customer needs • It integrates all the marketing activities that affect customers. • It yields profits by creating lasting relationships with the right customers based on customer value and satisfaction 3M: • A $30 billion diversified technology company • “Our goal is to lead customers where they want to go before they know where they want to go.” • 3M Innovations
  13. 13. C. Difference between Marketing & Selling
  14. 14. D. The Marketing Environment -The Marketing Environment is the actors and forces outside marketing that affect marketing management ability to build and maintain successful relationships with target customers. - It is made up of microenvironment and macroenvironment. - The microenvironment consists of the actors close to the company that affect its ability to serve its customers. - The macroenvironment consists of the larger societal forces that affect the microenvironment
  15. 15. Microenvironment Actors in the Microenvironment
  16. 16. 1- The Company: Marketers must work in harmony with other company departments to create customer value and relationships. • Walmart’s marketers can’t promise us low prices unless its operations department delivers low costs.
  17. 17. 2- Suppliers: provide the resources needed by the company to produce its goods and • services Supply shortages or delays, labor strikes, and other events can cost sales in the short run and damage customer satisfaction in the long run DENSO Australia Wins Toyota Supplier Of The Year
  18. 18. 3- Marketing Intermediaries: They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries • Resellers are distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers who buy and resell merchandise.
  19. 19. Microenvironment: Marketing Intermediaries • Physical distribution firms help the company stock and move goods from their points of origin to their destinations. • Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets. • Financial intermediaries include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods.
  20. 20. 4- Competitors: The marketing concept states that, to be successful, a company must provide greater customer value and satisfaction than its competitors do.
  21. 21. Microenvironment 5- Publics: it is any group that has an actual or potential interest in or • • • • impact on an organization’s ability to achieve its objectives Financial publics. This group influences the company’s ability to obtain funds. Banks, investment analysts, and stockholders are the major financial publics. Media publics. This group carries news, features, and editorial opinion. It includes newspapers, magazines, television stations, and blogs and other Internet media. Government publics. Management must take government developments into account. Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters. Citizen-action publics. A company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups.
  22. 22. Microenvironment 6- Customers: • Consumer markets consist of individuals and households that buy goods and services for personal consumption. • Business markets buy goods and services for further processing or use in their production processes. • Reseller markets buy goods and services to resell at a profit. • Government markets consist of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them. • International markets consist of these buyers in other countries, including consumers, producers, resellers, and governments.
  23. 23. Macroenvironment Major Forces in the Company’s Macroenvironment
  24. 24. Macroenvironment 1- The Demographic Environment: Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. Ex: China’s one-child rule created a generation of people who have been pampered by parents and grandparents and have the means to make indulgent purchases. Also, Millennials (Americans born between 1977 and 2000) share an utter fluency and comfort with digital technology. 2- The Economic Environment: consists of economic factors that affect consumer purchasing power and spending patterns. • Marketers in all industries are looking for ways to offer today’s more financially cautious buyers greater value—just the right combination of product quality and good service at a fair price.
  25. 25. Macroenvironment 3- The Natural Environment: involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. • Marketers should be aware of several trends in the natural environment, They are the growing shortages of raw materials, increased pollution and increased government intervention. • PepsiCo markets hundreds of products that are grown, produced, and consumed worldwide. Making and distributing these products requires water, electricity, and fuel. • In 2007, the company set as its goal to reduce water consumption by 20 percent, electricity consumption by 20 percent, and fuel consumption by 25 percent per unit of production by 2015.
  26. 26. Macroenvironment 4- The Technological Environment: Forces that create new technologies, creating new product and market opportunities. •Transistors hurt the vacuum-tube industry, CDs hurt phonograph records, and digital photography hurt the film business. When old industries fought or ignored new technologies, their businesses declined. 5- The Political and Social Environment: Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. 6- The Cultural Environment: Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.
  27. 27. E. The Marketing Mix The set of tactical marketing tools— product, price, place, and promotion— that the firm blends to produce the response it wants in the target market. The Four Ps of the Marketing Mix
  28. 28. E.1 Product Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Products also include services. Service: is an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. 1. Consumer Products: products and services bought by the final consumers for personal consumption 2. Industrial Products: products bought by individuals and organizations for further processing or use in conducting business
  29. 29. E.1 Product Marketing Considerations for Consumer Products
  30. 30. Product Life-Cycle
  31. 31. Three Levels Of Product 1. Core benefit level; the customers purchase a product because of the functional benefit the product offers. 2. Actual Product level; they take into account how the product’s attributes, features, quality, styling, packaging. 3. Augmented Product level; customers consider the value they receive from a vendor after sales support, warranty, promise of free delivery or installation.
  32. 32. E.2 Place • Place: refers to how an organization will distribute the product or service they are offering to the end user. • The organization must distribute the product to the user at the right place at the right time. •Marketing channel (or distribution channel): it is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. •One of the biggest channel developments over the years has been the emergence of vertical marketing systems that provide channel leadership A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole. A vertical marketing system (VMS) consists of producers, wholesalers, and retailers acting as a unified system. One channel member owns the others, has contracts with them, or wields so much power that they must all cooperate. The VMS can be dominated by the producer, the wholesaler, or the retailer
  33. 33. Comparison of Conventional Distribution Channel with Vertical Marketing System
  34. 34. E.3 Price Price: It is the amount of money charged for a product or service. •It is agreed upon that the price offered must cover the cost of the product and return a profit to the producer. New-Product Pricing Strategies: 1- Market-skimming: Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. When Apple first introduced the iPhone, its initial price was as much as $599 per phone.. Six months later, Apple dropped the price to $399 for an 8GB model and $499 for the 16GB model to attract new buyers. Within a year, it dropped prices again to $199 and $299, respectively, and you can now buy an 8GB model for $99. In this way, Apple skimmed the maximum amount of revenue from the various segments of the market.
  35. 35. 2- Market Penetration Pricing Setting a low price for a new product to attract a large number of buyers and a large market share. The high sales volume results in falling costs, allowing companies to cut their prices even further.
  36. 36. E.4 Promotion Mix It is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. The five major promotion tools are: 1- Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. 2- Sales Promotion: Short-term incentives to encourage the purchase or sale of a product or service. 3- Public Relations: Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. 4- Personal Selling: Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. 5- Direct Marketing: Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
  37. 37. 1. Advertising •There are many advertising 'media' such as newspapers, magazines and journals, television, cinema, outdoor advertising (such as posters, bus sides). •To create a good ad, the marketer must create a message that is distinct, meaningful and credible. • Can reach masses of geographically dispersed buyers at a low cost per exposure •It enables the seller to repeat a message many times •large-scale advertising says something positive about the seller’s size, popularity, and success. •Consumers tend to view advertised products as more legitimate •It allows the company to dramatize its products through the artful use of visuals, print, sound, and color •Advertising can trigger quick sales •Advertising can carry on only a one-way communication with an audience •Audience does not feel that it has to pay attention or respond •TV advertising, require very large budgets
  38. 38. Sample of Good ADs
  39. 39. Sample of Bad ADs
  40. 40. 2. Sales Promotion Short term incentive to encourage customers to make a purchase. • There are many sales promotion types as : a. Advertising Specialties: A product imprinted with a logo as mugs, T shirts..etc b. Cash Rebates: A partial refund to the buyer c. Discounting : Reducing the listed price for a limited period of time d. Coupons e. Samples Advertising says ―Buy our product‖, Sales promotion says ―Buy it now‖
  41. 41. 3. Public Relations • Used to obtain favorable publicity, building good corporate image and handling unfavorable rumors, stories and events •The message gets to buyers as ―news‖ rather than as a sales-directed communication • Influence the public beliefs, feelings and opinions about the company . • Mass promotion tool & cheap • There are several types of public relations : a. Written material: as brochures, magazine articles..etc b. Special Events: as presentations, conferences c. Public Service Activities: as donating money, volunteers or resources to activities designed to a social cause d. Speeches: as giving talks
  42. 42. 4. Personal Selling • Personal presentation by the firm’s sales force for the purpose of making sales & building customer relations • The sales message can be customized to meet the needs of the customer. • Involves 2 way personal communication •The buyer usually feels a greater need to listen and respond, even if the response is a polite ―No thank-you.‖ •A sales force requires a longer-term commitment than does advertising
  43. 43. 5. Direct Marketing • Direct marketing is a type of advertising campaign that seeks to elicit an action (such as an order, a visit to a store or Web site, or a request for further information) from a selected group of consumers in response to a communication from the marketer. • Types of direct marketing: • Direct Mail • Telemarketing • Email Marketing • Catalogs • Websites
  44. 44. 4 Ps Versus 4Cs In this age of customer value and relationships, the four sellers’ 4 Ps might be better described as the customers’ four Cs •Marketers see themselves as selling products; customers see themselves as buying value or solution to their problems. • Customers are interested more than just a price, they are interested in the total costs of obtaining, using and disposing of a product. • Customers want the product and services to be conveniently available as possible. • Finally, they want a 2 way communication 4 Ps 4 Cs Product Customer Solution Price Customer Cost Place Convenience Promotion Communication
  45. 45. F. The Marketing Analysis
  46. 46. What is Organization’s SWOT ? • It is a marketing analysis tool that involves monitoring the external and internal marketing environment. • Internal environment (strengths / weakness) analysis: o A strength is something a firm does well or a characteristic that enhances its competitiveness. o A weakness is something a firm lacks, does poorly, or a condition placing it at a disadvantage
  47. 47. Strength can be … • Valuable competencies or know-how • Valuable physical assets • Valuable human assets • Valuable organizational assets • Valuable intangible assets- e.g. ―Image‖ • Important competitive capabilities • An attribute that places an organization in a position of competitive advantage • Alliances with capable partners
  48. 48. Weakness can be … • Deficiencies in know-how or expertise or competencies • Lack of important physical, organizational, or intangible assets • Missing capabilities in key areas • High unit cost • Poor relationship with employees / suppliers
  49. 49. • External environment (opportunities / Threats) analysis: o An opportunity is a factor that the company may be able to exploit to its advantage. o An environmental Threat current and emerging external factors that may challenge the company’s performance.
  50. 50. Sources of a marketing opportunity… • Diversify your business interests • Is to supply an existing product or service in a new or superior way. • A new product. • Changes in use of technology opening up opportunities for your business to utilize these technologies such as E-commerce or Internet sales
  51. 51. Examples of threats… • Changing customer tastes • Technological advances • Tax increase • Change in governmental policies • Closing of geographic markets
  52. 52. Build on your Strengths Recognize your Weakness Evaluate your Opportunities Research your Threats
  53. 53. Example: Sonic’s Strengths, Weaknesses, Opportunities, and Threats
  54. 54. Tools for Strategy Formulation • SO Strategies: Use strengths to take advantage of Opportunities • WO Strategies: Overcome weaknesses to take advantage of Opportunities • ST Strategies: Use Strengths to avoid Threats • WT Strategies: Minimize Weaknesses and avoid Threats

×