0. Advanced Courses Lecture 2 By Eng. Yasser Fouad Abd El Aziz
MBA, BSc, CEng.
Sales & Marketing Director
IBE Technologies
Tel.: (+202) – Mobiles: (+2012)
Fax: (+202)
To accompany A Framework for Marketing Management, 2nd Edition

1. Introduction to Marketing
“The future isn’t ahead of us.
It has already happened.”
To accompany A Framework for Marketing Management, 2nd Edition

2. To accompany A Framework for Marketing Management, 2nd Edition
Objectives
Understand the new economy.
Learn the tasks of marketing.
Become familiar with the major concepts and tools of marketing.
Understand the orientations exhibited by companies.
To accompany A Framework for Marketing Management, 2nd Edition

3. To accompany A Framework for Marketing Management, 2nd Edition
Objectives
Learn how companies and marketers are responding to new challenges.
To accompany A Framework for Marketing Management, 2nd Edition

4. To accompany A Framework for Marketing Management, 2nd Edition
The New Economy
Consumer benefits from the digital revolution include:
Increased buying power.
Greater variety of goods and services.
Increased information.
Enhanced shopping convenience.
Greater opportunities to compare product information with others.
To accompany A Framework for Marketing Management, 2nd Edition

5. To accompany A Framework for Marketing Management, 2nd Edition
The New Economy
Firm benefits from the digital revolution include:
New promotional medium.
Access to richer research data.
Enhanced employee and customer communication.
Ability to customize promotions.
To accompany A Framework for Marketing Management, 2nd Edition

6. To accompany A Framework for Marketing Management, 2nd Edition
Marketing Tasks
Marketing practices may pass through three stages:
Entrepreneurial marketing
Formulated marketing
Intrepreneurial marketing
To accompany A Framework for Marketing Management, 2nd Edition

7. To accompany A Framework for Marketing Management, 2nd Edition
What Can Be Marketed?
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas
To accompany A Framework for Marketing Management, 2nd Edition

8. To accompany A Framework for Marketing Management, 2nd Edition
Marketing Defined
Kotler’s social definition:
“Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.”
To accompany A Framework for Marketing Management, 2nd Edition

9. To accompany A Framework for Marketing Management, 2nd Edition
Marketing Defined
The AMA managerial definition:
“Marketing 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 objectives.”
To accompany A Framework for Marketing Management, 2nd Edition

10. Marketing =Demand Management
Negative demand
No demand
Latent demand
Declining demand
Irregular demand
Full demand
Overfull Demand
Unwholesome demand
To accompany A Framework for Marketing Management, 2nd Edition

11. To accompany A Framework for Marketing Management, 2nd Edition
4 Types of Markets
Consumer Markets
Business Markets
Global Markets
Nonprofit and Governmental Markets
To accompany A Framework for Marketing Management, 2nd Edition

12. Core Marketing Concepts
Target markets and market segmentation
Marketplace, market-space, metamarkets
Marketers & prospects
Needs, wants, demands
Product offering and brand
Value and satisfaction
Exchange and transactions
Relationship and networks
Marketing channels
Supply chain
Competition
Marketing environment
Marketing program
To accompany A Framework for Marketing Management, 2nd Edition

13. Core Marketing Concepts
Target markets & segmentation
Differences in needs, behavior, demographics or psychographics are used to identify segments.
The segment served by the firm is called the target market.
The market offering is customized to the needs of the target market.
To accompany A Framework for Marketing Management, 2nd Edition

14. Simple Marketing System
To accompany A Framework for Marketing Management, 2nd Edition

15. Modern Marketing System
To accompany A Framework for Marketing Management, 2nd Edition

16. Core Marketing Concepts
Shopping can take place in a:
Marketplace (physical entity, Lowe’s)
Marketspace (virtual entity, Amazon)
Metamarkets refer to complementary goods and services that are related in the minds of consumers.
Marketers seek responses from prospects.
To accompany A Framework for Marketing Management, 2nd Edition

17. Core Marketing Concepts
Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment.
Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food)
Demands are wants for specific products backed by an ability to pay.
To accompany A Framework for Marketing Management, 2nd Edition

18. Core Marketing Concepts
A Product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source.
When offerings deliver value and satisfaction to the buyer, they are successful.
Value = Benefits/Costs
To accompany A Framework for Marketing Management, 2nd Edition

19. To accompany A Framework for Marketing Management, 2nd Edition
Enhancing Value
Marketers can enhance the value of an offering to the customer by:
Raising benefits.
Reducing costs.
Raising benefits while lowering costs.
Raising benefits by more than the increase in costs.
Lowering benefits by less than the reduction in costs.
To accompany A Framework for Marketing Management, 2nd Edition

20. Core Marketing Concepts
Exchange involves obtaining a desired product from someone by offering something in return.
Transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.
To accompany A Framework for Marketing Management, 2nd Edition

21. Core Marketing Concepts
Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders.
To accompany A Framework for Marketing Management, 2nd Edition

22. Core Marketing Concepts
Marketing Channels
Communication channels
Distribution channels
Service channels
Deliver messages to and receive messages from target buyers.
Includes traditional media, non-verbal communication, and store atmospherics.
To accompany A Framework for Marketing Management, 2nd Edition

23. Core Marketing Concepts
Marketing Channels
Communication channels
Distribution channels
Service channels
Display or deliver the physical products or services to the buyer / user.
To accompany A Framework for Marketing Management, 2nd Edition

24. Core Marketing Concepts
Marketing Channels
Communication channels
Distribution channels
Selling channels
Carry out transactions with potential buyers by facilitating the transaction.
To accompany A Framework for Marketing Management, 2nd Edition

25. Core Marketing Concepts
A supply chain stretches from raw materials to components to final products that are carried to final buyers.
Each company captures only a certain percentage of the total value generated by the supply chain.
To accompany A Framework for Marketing Management, 2nd Edition

26. Core Marketing Concepts
Four levels of competition can be distinguished by the level of product substitutability:
Brand competition
Industry competition
Form competition
Generic competition
To accompany A Framework for Marketing Management, 2nd Edition

27. Core Marketing Concepts
The following forces in the broad environment have a major impact on the task environment:
Demographics
Economics
Natural environment
Technological environment
Political-legal environment
Social-cultural environment
To accompany A Framework for Marketing Management, 2nd Edition

28. Core Marketing Concepts
The marketing program is developed to achieve the company’s objectives. Marketing mix decisions include:
The 4 Ps
Product: provides customer solution.
Price: represents the customer’s cost.
Place: customer convenience is key.
Promotion: communicates with customer.
To accompany A Framework for Marketing Management, 2nd Edition

29. Core Marketing Concepts
To accompany A Framework for Marketing Management, 2nd Edition

30. Core Marketing Concepts
4 Ps
Product
Price
Place
Promotion
4 Cs
Customer solution
Cost
Convenience
Communication
To accompany A Framework for Marketing Management, 2nd Edition

31. To accompany A Framework for Marketing Management, 2nd Edition
Company Orientations
The orientation or philosophy of the firm typically guides marketing efforts. Several competing orientations exist:
Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept
To accompany A Framework for Marketing Management, 2nd Edition

32. To accompany A Framework for Marketing Management, 2nd Edition
Company Orientations
To accompany A Framework for Marketing Management, 2nd Edition

33. To accompany A Framework for Marketing Management, 2nd Edition
The Marketing Concept
Achieving organizational goals requires that company be more effective than competitors in creating, delivering, and communicating customer value.
Four pillars of the marketing concept:
Target market
Customer needs
Integrated marketing
Profitability
To accompany A Framework for Marketing Management, 2nd Edition

34. To accompany A Framework for Marketing Management, 2nd Edition
The Marketing Concept
To accompany A Framework for Marketing Management, 2nd Edition

35. To accompany A Framework for Marketing Management, 2nd Edition
Marketing Role
To accompany A Framework for Marketing Management, 2nd Edition

36. Changes in the Marketplace
Globalization, technological advances, and deregulation have created many challenges:
Customers
Brand manufacturers
Store-based retailers
Both companies and marketers have been forced to respond and adjust.
To accompany A Framework for Marketing Management, 2nd Edition

37. Company vs. Marketer Responses
Reengineering
Outsourcing
E-commerce
Benchmarking
Alliances
Partner-suppliers
Market-centered
Global & Local
Decentralized
Marketer
Relationship marketing
Customer lifetime value
Customer share
Target marketing
Individualization
Customer database
Integrated communications
Channels as partners
Every employee a marketer
Model base decision making
To accompany A Framework for Marketing Management, 2nd Edition