MARKETING MANAGEMENT

1. MARKETING MANAGEMENT
Dr. Fahri APAYDIN

2. • MARKETING

3. What is marketing?
• Twofold goal of marketing
– To attract new customers by promising
superior value
– To keep and grow current customers by
delivering satisfaction

4. What is marketing?
• A social and managerial process
– whereby individuals and groups obtain
– what they need and want
– through creating and exchanging products
and value with others.

5. Marketing process
• Understand the marketplace and customer
needs and wants
• Design customer-driven marketing strategy
• Construct and integrate marketing program that
delivers superior value
• Build profitable relationships and create
customer delight
• Capture value from customers to create profits
and customer equity

6. Core Marketing Concepts
• Needs, wants, and demands
• Marketing offers
– (products, services, and experiences)
• Value and satisfaciton
• Exchange, transaction, and relationships
• Markets

7. Needs, Wants, and Demands
• Needs
– A state of felt deprivation
• Physical needs
• Social needs
• Individual needs
• Wants
– the form human needs take
– they are shaped by culture and individual personality
• Demands
– Wants backed up with buying power
• People demand products with benefits that add up to the most
value and satisfaction.

8. Marketing Offers
Products, Services, and Experiences
• Some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.
• Companies address needs by putting forth a value
proposition.
• A value proposition: a set of benefits that companies
promise to consumers to satisfy their needs
• Marketing offers: physical products, services, persons,
places, organizations, information, and ideas

9. Value and satisfaciton
• Customer Value
– the difference between the values the customer gains
from owning and using a product and the costs of
obtaining the product.
• Customer Expectation
– based on past buying experiences, the opinion of friends,
and marketer and competitor information and promises
– The level of expectation is important.
• Customer Satisfaction
– Depends on how well the product’s performance lives up
to the customer’s expectations
– A key influence on future buying behavior

10. Exchange, Transaction, and Relationships
• Exchange
– the act of obtaining a desired object from
someone by offering something in return
• Transaction
– A trade of values between two parties
• Exhange relationships
– The goal is to retain customers and grow their
business with the company.

11. Markets and Marketing
• Market
– the set of actual and potential buyers and product
– Size: the number of people who exhibit the need, have
resources to engage in exchange, and are willing to use
these resources for what they want
• Marketing
– Managing markets to bring about profitable exchange
relationships by creating value and satisfying needs and
want
• Core marketing activities
– Product development, research, communication,
distribution, pricing and services

12. Core Marketing Concepts
Needs, wants,
and demands
Markets
Exchange,
transaction,
and relationships
Marketing offers
Value and
satisfaciton

13. Marketing Management
• Marketing management
– The art and science of choosing target markets and building
profitable relationships with them
• Marketing management is customer management and
demand management.
• Customer management and demand management
– To affect the types of customers served and the level, timing, and
nature of their demand in a way that helps the organization achieve
its objectives
• Value proposition
– The set of benefits or values it promises to deliver to consumers to
satisfy their needs

14. Marketing Management Orientations
• Production Concept
– The idea that consumers will
favor that are available and
highly affordable.
– Focus on distribution efficiency
and improving production
• Product Concept
– The idea that consumers will
favor products that offer the
most quality, performance, and
features
– making continuous product
improvements.
• Selling Concept
– The idea that consumers will not
buy enough of the
organization’s products unless
the organization undertakes a
large-scale selling and
promotion effort.
• Marketing Concept
– The marketing management
philosophy that holds 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.
• Social Marketing Concept
– The idea that the organization
should determine the needs,
wants, and interests of target
markets and deliver the desired
satisfactions more effectively
and efficiently than do
competitors in a way that
maintains or improves the
consumer’s and society’s well-
being.

15. Customer Relationship Management
• The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction.
• The goal
– To retain current customers and build profitable, long-
term relationships with them
• Customer lifetime values
– The value of the entire stream of purchases that the
customer would make over a life-time of patronage

16. Attracting, Retaining, and Growing Customers
• Customer Percieved Value
– The difference between total customer value and total customer cost
– The customer’s evaluation of the difference between all the benefits
and all the costs of a marketing offer relative to those of competing
offers
• Customer Satisfaction
– The extent to which a product’s perceived performance matches a
buyer’s expectations
• Customer Loyalty and Retention
– Benefits of highly satisfied customers
• Less price sensitive, talk favorably to others about the company, remain
loyal
• Growing “share of customer”
– The share companies get of the customer’s purchasing in their
product categories

17. Building Customer Rlationships and Customer
Equity
• Customer Relationship Levels and Tools
– Relationship Levels
• Basic relationship (lots of customers and low margin customers))
• Full partnership (few customers and high margins)
– Tools
• Financial benefits
• Social benefits
• Structural ties
• Customer Equity
– The total combined customer lifetime values of all the
company’s customers

18. The new marketing landscape
• The new digital age
• Rapid globalization
• The call for more ethics and social
responsibility
• The growth of not-for-profit marketing