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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