Marketing Management

Prepared by : Soft Skills Unit

Course Outline
Lecture 1 : Marketing Principles
Lecture 2 : Market Segmentation and Target Markets
Lecture 3 : Consumer Buying Behavior and Decision Making
Lecture 4 : Marketing plan

Lecture 1 Content
Definitions
Concepts
Difference between Marketing & Selling
The Marketing Environment
The Marketing Mix
The Marketing Strategies

What Is the Market

A. Definitions

The set of actual and potential buyers of a product.

These people share a need or want that can be satisfied
through exchange relationships.

1. Marketing Principles
A. Definitions
- Marketing is managing profitable customer relationships.

The American Marketing Association offers the following

definition:
Marketing is an organization function and a set of processes for
creating, communication, and delivering value to customers and for
managing customer relationships in ways that benefit the organization
and its stakeholders.

B. Concepts
1. Customer Needs, Wants and Demands.
2. Exchange and Transactions.
3. Markets.

B .1. Customer Needs, Wants and Demands

Needs: Are the basic human requirements; as food, air, water..etc
Wants: when they are directed to specific objects that might
Satisfy the need.
Demands: are wants for specific products backed by an ability
to pay.

B .2. Exchange and Transactions

Exchange : is the core concept of marketing; It is the process of
obtaining a desired product from someone by offering something
in return.
- Exchange is a value creating process because it normally leaves
both Parties better off.
Transaction : is a trade of values between 2 or more parties
- When an agreement is reached , we say transaction takes place.

B. 3. Markets

Company
Suppliers
Competitors

Marketin
g
Intermedia
ries

Marketing System

Final
Users

The Market word has many definitions :

A place where buyers and sellers meet, good and services are offered
for sale and transfers for ownership occurs.
People or organizations with wants to satisfy, willingness and money
to spend.

C. Difference between Marketing & Selling

Starting Point

Selling Concept

Marketing
Concept

Factory

Market

Focus

Means

Existing
Products

Selling &
Promoting

Customer
Needs

Integrated
Marketing

Ends
Profits thru
sales volume

Profits thru
Customer
satisfaction

D. The Marketing Environment

-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 macro environment.

Macro Environment

Economic
Factors

Micro Environment

Customers

Socioculture
Factors

Political
Factors

Internal
Environment

Suppliers

Competitors

Technological
Factors

Natural
Factors

1. Microenvironment
1. Customers :
- Consumer Markets: Consists of individuals & households (B2C).
- Business Markets: Buy goods & services for further processing (B2B).
- Reseller Markets: Buy goods & services to resell at a profit.
- Government Markets: Government agencies that buy goods & services to
produce public services.
- International Markets: Consists of buyers in other countries as
consumers;
producers; resellers.etc.

2. Competitors: is any organization that offers the same,

a similar, or a substitute product or service in the field of
endeavor in which a company operates.
2. Suppliers; supply problems that affect the marketing can
be supply shortage, or delays, labor strikes , supply costs etc
4. Others

2.

Macro environment
1. Economic Factors: Factors that effect consumer buying
power & spending patterns .

Changes in Income

Changing customer spending patterns

Unemployment

Inflation

2. Political Factors: organizations are affected by :

Governmental regulations & rules

Tax regime
Trade policies
Special interests
3. Technological

Factors: forces that create

new

technologies, creating new products and opportunities

Examples antibiotics; laptops, robotic surgery ..etc

4. Natural Factors :
Involves the natural resources needed as inputs by marketers
and may affect marketing activities.

Shortage of raw materials

Increased pollution

Energy Sources

5. Sociocultural Factors:
The social and cultural influences on business vary from country
to country.
Income distribution
Demographics, Population growth rates, Age distribution
Labor / social mobility
Lifestyle changes
Work/career and leisure attitudes
Entrepreneurial spirit
Education
Fashion, hypes
Health consciousness & welfare, feelings on safety
Living conditions

E. The Marketing Mix

Marketing
Mix
Place

Product

Product Variety
Quality
Design
Brand name
Packaging

Services
Warranties

Promotion

Price
List Price
Discounts
Allowances
Payment period
Credit Terms

Sales Promotion
Advertising
Public Relations
Personal Selling
Direct Marketing

Channels
Locations
Inventory
Transport

E.1 Product
Product is anything (tangible / intangible) that can
be offered to a market that might satisfy a want or
need.
Products include physical objects, services, events,
persons, places, ideasetc
1. Consumer Products
2. Industrial Products

Product Life Cycle

Three Levels Of Product

Augmented Product
Actual ProductAfter
Delivery
Brand
&
Credit name
Quality
level
Installation

Sale
Featuresservice

Core
Bene
ft
Packaging

Design

Warranty

E.2 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.
Two types of channel of distribution methods are available;

E.3 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 .
There are 5 marketing objectives to determine the price of a
product :
a.
b.
c.

Maximize short term profit

Maximize current market share
Survival

Contd

E.4 Promotion
There are 5 different key types of promotion :
1.Advertising
2.Sales Promotion
3.Public Relations
4.Personal Selling
5.Direct Marketing

Contd

1. Advertising
Popular means of reaching a target audience.
Cost effective way to build awareness.
To create a good ad, the marketer must create a message that is
distinct, meaningful and credible.
There are many advertising 'media' such as newspapers, magazines
and journals, television, cinema, outdoor advertising (such as posters,
bus sides).

Contd

Good ADs
Contd

Bad ADs

2. Sales Promotion
Short term incentives 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.
N.B: Advertising offers reasons to buy a product or service, sales
promotion offers reasons to buy now.
Contd

3. Public Relations
Used to obtain favorable publicity, building good corporate image and
handling unfavorable rumors, stories and events .
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, magazines, articles..etc
b. Special Events as presentations, conference
c. Public Service Activities as donating money, volunteers or
resources to activities designed to a social cause
d. Speeches as giving talks
Contd

4. Personal Selling
Personal

presentation by the firms 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
as face-to-face, by telephone, through
video or web conference.

Contd

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

4Ps Verses 4Cs

Robert Lauter born suggested that the sellers 4 Ps correspond to the
Customers 4 Cs

4 Ps

4 Cs

Product

Customer Solution

Price

Customer Cost

Place

Convenience

Promotion

Communication

F. The Marketing Strategies

What is Organizations SWOT ?

It is a marketing strategy 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

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

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.

 External environment (opportunities / Threats) analysis:

o An opportunity is an area of buyer need and interest in which
there is a high probability that a company can profitably satisfy
that need.
o An environmental Threat is a challenge posed by an unfavorable
trend or development that would lead in the absence of defensive
marketing action.

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 Ecommerce or Internet sales

Examples of threats
Changing customer tastes
Technological advances
Tax increase
Change in governmental policies
Closing of geographic markets

Build on your

Strengths

Recognize your

Weakness
Evaluate your

Opportunities
Research your

Threats