Chapter One: Overview of The Marketing Management

Chapter one :
Overview of the marketing management
1. what do you know about market and marketing and

marketing management ?
Definition of Marketing
Marketing can be defined by social and managerial

aspect :
 marketing is a societal process by which individuals
and groups obtain what they need and want through
creating, offering, and exchanging products and
services of value freely with others.
 Whereas the managerial definition is that ;
 it is the art of selling.
Generally marketing means meting the customers
need profitability.
Cont’d…
Marketing (management) 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 goals.
1.1. The Scope of Marketing
 Marketing people are involved in marketing 10 types of
entities:
 goods,
services,
 experiences,
events,
persons,
places,
 properties,
organizations,
information, and ideas.
Core Marketing Concepts
Marketing can be further understood by defining the core
concepts applied by marketing managers.
1. Target Markets and Segmentation
2. marketplace and a market space
3. meta market, describes a cluster of complementary
products and services that are closely related in the minds of
consumers but are spread across a diverse set of industries
4. Needs, Wants, and Demands:
5. Product or Offering:
Cont’d…
5. Product or Offering
 People satisfy their needs and wants with products.
A product is any offering that can satisfy a need or
want
6. Value and Satisfaction
• Value =Benefits/cost
 Benefits of the customers are :Functional benefits
and emotional benefits
 Costs of the customers are: Monetary costs, time
costs, energy costs and psychic costs
Cont’d…
 the marketer can increase the value of the
customer offering by:
(a) raising benefits,
(b) reducing costs,
(c) raising benefits and reducing costs,
(d) Raising benefits by more than the raise in costs,
or
(e) lowering benefits by less than the reduction in
costs.
Cont’d…
7.Exchange and Transactions
8. Relationships and Networks
9. Marketing Channels
10. Competition
11.Marketing environment
12. Marketing mix
cont’d…
 Robert Lauter born suggested that the sellers’ four Ps
correspond to the customers’ four Cs.
 Four Ps Four Cs
• Product Customer solution
• Price Customer cost
• Place Convenience
• Promotion Communication
Marketing management philosophy
Marketing management is the conscious effort to

achieve desired exchange outcomes with target
markets.
1. what philosophy should guide a company’s
marketing efforts?
2. What relative weights should be given to the often
conflicting interests of the organization, customers,
and society?
Cont’d…
marketing activities should be carried out under a well-
thought-out philosophy of efficient, effective, and
socially responsible marketing.
 In fact, there are five competing concepts under which
organizations conduct marketing activities:
1. Production concept,
2. product concept,
3. selling concept,
4. marketing concept, and
5. societal marketing concept.
1. Production concept
 It holds that consumers prefer products that are widely
available and inexpensive.
 Managers of production-oriented businesses concentrate

on achieving high production efficiency, low costs, and
mass distribution.
 This orientation makes sense in developing countries,
where consumers are more interested in obtaining the
product than in its features
• What is the market myopia of this concept?
2. Product concept
 it holds that consumers favor those products that offer
the most quality, performance, or innovative features.
 in these organizations focus on making superior products
and improving them over time, assuming that buyers can
appraise quality and performance.
 Product-oriented companies often design their products

with little or no customer input, trusting that their
engineers can design exceptional products.
• What is the drawback of product concept?
3. The Selling Concept
 It holds that consumers and businesses, if left alone,
will ordinarily not buy enough of the organization’s
products.
 The organization must, therefore, undertake an
aggressive selling and promotion effort.
 This concept assumes that consumers must be coaxed

into buying, so the company has a battery of selling
and promotion tools to stimulate buying.
Cont’d…
 The selling concept is practiced most aggressively with
unsought goods—goods that buyers normally do not think
of buying, such as insurance and funeral plots.
 The selling concept is also practiced in the nonprofit area by
fund-raisers, college admissions offices, and political
parties.
 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.
 In modern industrial economies, productive capacity has
been built up to a point where most markets are buyer
4.marketing concept
 It holds that the key to achieving organizational goals

consists of the company being more effective than its
competitors in creating, delivering, and communicating
customer value to its chosen target markets.
 It is an outside in perspectives.
5. The Societal Marketing Concept
 Some me have questioned whether the marketing concept
is an appropriate philosophy in an age of environmental
deterioration, resource shortages, explosive population
growth, world hunger and poverty, and neglected
social services.
 Are companies that successfully satisfy consumer wants
necessarily acting in the best, long-run interests of
consumers and society?
 The marketing concept side steps the potential conflicts
among consumer wants, consumer interests, and long-run
societal welfare.
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Chapter One: Overview of The Marketing Management

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Chapter one :

Overview of the marketing management

1. what do you know about market and marketing and

Marketing can be defined by social and managerial

Marketing management is the conscious effort to

 Managers of production-oriented businesses concentrate

 Product-oriented companies often design their products

 This concept assumes that consumers must be coaxed

 It holds that the key to achieving organizational goals

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