1. MARKETING MANAGEMENT 12th edition
2- Marketing concepts
Kotler Keller

2. Core Marketing Concepts To understand the marketing function, we need to understand the following core set of concepts.
Needs, wants, and demands
Target markets, positioning, segmentation
Offerings and brands
Value and satisfaction
Marketing channels
Supply chain
Competition
Marketing environment
Value chain
Benchmarks

3. Core Marketing Concepts
1- Needs, Wants, and Demands
Needs are the basic human requirements such as for air, food, water, clothing, and shelter. Humans also have strong needs for recreation, education, and entertainment.
A want is a need after it has been influenced by culture, society and an individual’s personality.
A U.S. consumer needs food but may want a Philly cheesesteak and an iced tea. A person in Afghanistan needs food but may want rice, lamb, and carrots.

4. Core Marketing Concepts
Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are able to buy one.
Companies must measure not only how many people want their product, but also how many are willing and able to buy it.

5. Core Marketing Concepts
2- Target Markets, Positioning, and Segmentation
Target Markets: a particular group of consumers at which a product or service is aimed and that the business has decided to aim its marketing efforts towards.
Positioning :An effort to influence consumer perception of a brand or product relative to the perception of competing brands or products. Its objective is to occupy a clear, unique, and advantageous position in the consumer's mind.

6. Core Marketing Concepts
2- Target Markets, Positioning, and Segmentation
 Segmentation: Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.
Marketing segmentation always comes before targeting

7. Core Marketing Concepts
2- Target Markets, Positioning, and Segmentation
Not everyone likes the same grains, restaurant, college, or movie.
Therefore, marketers start by dividing the market into segments.
They identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, and behavioral differences among buyers.

8. Core Marketing Concepts
2- Target Markets, Positioning, and Segmentation
After identifying market segments, the marketer decides which present the greatest opportunities—which are its target markets. For each, the firm develops a market offering that it positions in the minds of the target buyers as delivering some central benefit(s).
Volvo develops its cars for buyers to whom safety is a major concern, positioning its vehicles as the safest a customer can buy.

9. Core Marketing Concepts
3-Offerings and Brands
Companies address customer needs by putting forth a value proposition, a set of benefits that satisfy those needs. The intangible value proposition is made physical by an offering, which can be a combination of products, services, information, and experiences.
A brand is an offering from a known source. A brand name such as McDonald’s carries many
associations in people’s minds that make up its image: hamburgers, cleanliness, convenience.

10. Core Marketing Concepts
4-Value and Satisfaction
The buyer chooses the offerings he or she perceives to deliver the most value, the sum of the tangible and intangible benefits and costs to her. Value, a central marketing concept, is primarily a combination of quality, service, and price, called the customer value triad.
We can think of marketing as the identification, creation, communication, delivery, and
monitoring of customer value.

11. Core Marketing Concepts
4-Value and Satisfaction
Satisfaction reflects a person’s judgment of a product’s perceived performance in relationship to expectations. If the performance falls short of expectations, the customer is disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted.

12. Core Marketing Concepts 5-Marketing Channels
Communication
Distribution
Service
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

13. Core Marketing Concepts
5-Marketing Channels
Marketing Channels: It is the process to transfer the ownership of goods from the point of production to the point of consumption. It is the way products and services get to the end-user, the consumer.
To reach a target market, the marketer uses three kinds of marketing channels.

14. Core Marketing Concepts
5-Marketing Channels
Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio,television, mail, telephone, posters, fliers, CDs, and Internet.
Distribution channels to display, sell, or deliver the physical product or service(s) to the buyer or user.
Service channels that include warehouses, transportation companies, banks, and insurance companies.

15. Core Marketing Concepts
5-Marketing Channels
These channels may be direct via the Internet, mail, or mobile phone or telephone, or indirect with distributors, wholesalers, retailers, and agents as intermediaries.
Marketers clearly face a challenge in choosing the best mix of communication, distribution, and service channels for their offerings.

16. Core Marketing Concepts
6-Supply Chain
The supply chain is a longer channel stretching from raw materials to components to finished products carried to final buyers. The supply chain for coffee may start with Ethiopian farmers who plant, tend, and pick the coffee beans, selling their harvest to wholesalers or perhaps a Fair Trade cooperative. If sold through the cooperative, the coffee is washed, dried, and packaged for shipment by an Alternative Trading Organization which then transports

17. Core Marketing Concepts
6-Supply Chain
the coffee to the developing world where it can sell it directly or via retail channels. Each company captures only a certain percentage of the total value generated by the supply chain’s value delivery system.

18. Core Marketing Concepts
7-Competition
Competition includes all the actual and potential rival offerings and substitutes a buyer might consider.
An automobile manufacturer can buy steel from U.S. Steel in the United States, from a foreign firm in Japan or Korea, or from a engineered plastics from Saudi Basic Industries Corporation (SABIC) instead of steel.

19. Core Marketing Concepts
8-Marketing Environment
The marketing environment consists of the task environment and the broad environment.
The task environment includes the actors engaged in producing, distributing, and promoting the offering.
These are the company, suppliers, distributors, dealers, and target customers.

20. Core Marketing Concepts
8-Marketing Environment
In the supplier group are material suppliers and service suppliers, such as marketing research agencies, advertising agencies, banking and insurance companies, transportation companies, and telecommunications companies.
Distributors and dealers include agents, brokers, manufacturer representatives, and others who facilitate finding and selling to customers.

21. Core Marketing Concepts
8-Marketing Environment
The broad environment consists of six components:
Demographic environment,
Economic environment,
Social-cultural environment ,
Natural environment ,
Technological environment, and
Political-legal environment.

22. Marketing Environment
Demographic
Economic
Socio-cultural
Political-legal
Technological
Natural .
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

23. Core Marketing Concepts
9-Value chain Is the full range of activities that businesses go through to bring a valuable product or service to their customers. 10- Benchmarks Company should estimates competitors’ costs and performances as benchmarks against which to compare their own.

24. Review questions Multiple Choice Questions
1- ____________ is the process of dividing a market of potential customers into groups.
A- Segmentation
B- Positioning
C- Target market
D- None of these
Answer: A

25. Review questions Multiple Choice Questions
2-____________ is primarily a combination of quality, service, and price.
A- satisfaction
B- Value
C- Offering
D- Brand
Answer: B

26. Review questions Brief explain Questions
1- Explain the different kinds of marketing channels?
2- Identify the main components of Marketing Environment ?
Brief explain Questions