University of Hargeisa

Faculty of Business Administration

Junior Class: 3C

Group: 1

Course: Marketing Management

Chapter1: Defining Marketing for the 21st Century

Presented by: AbdiQadir Mohamoud Buureed E-mail: abdibuureed@gmail.com

What is Marketing?
More investment Stockholder satisfaction Growth and profits Repeat business Higher quality Employee satisfaction Greater effort

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

Marketing is meeting customers needs profitably

Definitions of marketing

Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably The Chartered Institute of Marketing

Definition: Marketing Management

The application, tracking and review of a business marketing resources and activities. The scope of a business marketing management depends on the size of the business and the industry in which it operates. Effective marketing management will use a companys resources to increase its customer base, improve customer opinions of the companys products and services, and increase the companys perceived performance --(Customers opinion of a products value to him. It depends on the products ability to satisfy the customer needs or requirements)

What is Marketing Management?

Marketing Management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Selling is only the tip of the iceberg

There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available. Peter Drucker

What is Marketed?
Goods Services Events & Experiences Persons Places & Properties

Organizations
Information

Ideas

Structure of Flows in a Modern Exchange Economy

Figure 1.2 A Simple Marketing System

For an exchange to occur.

There are at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.

Todays system of exchange

Promotion Contact Negotiation Producers Transporting and storing Financing Packaging

Users

Money
Goods

Core Marketing Concepts

Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment.

 Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for selfexpression. i.e. I am thirsty. Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola. Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.

Target markets, positioning, & segmentation Segmentation - identify distinct groups of buyers examining behavioral differences. Target Markets - segments presenting the greatest opportunity. Positioning what the offering means in the minds of the target buyers as delivering some central benefits.

Value & Satisfaction

Value - the sum of perceived tangible and intangible benefits and costs to customers. Customer value = quality, service & price Satisfaction a persons comparative judgment of a products perceived performance (or outcome) in relation to expectation.

Customer Value
Customer Value The relationship between benefits and the sacrifice necessary to obtain those benefits.

Customer Satisfaction
Customer Satisfaction
The customers evaluation of a good or service in terms of whether it has met their needs and expectations.

The marketplace isnt what it used to be

Information technology Globalization Deregulation Privatization Competition Convergence

Consumer resistance
Retail transformation

New Consumer Capabilities

A substantial increase in buying power A greater variety of available goods and services A great amount of information about practically anything Greater ease in interacting and placing and receiving orders An ability to compare notes on products and services An amplified voice to influence public opinion.

Company Orientations

Production

Product

Selling

Marketing

Marketing Management Philosophies

Orientation Production Focus is on internal capabilities of the firm aggressive sales techniques and belief that high sales result in high profits satisfying customer needs and wants while meeting objectives satisfying customer needs and wants while enhancing individual and societal well-being

Sales

Market

Societal

LO3

Review Learning Outcome

Sales vs. Marketing Orientations
Organizations Focus Firms Business For Whom? Primary Profit Goal? Tools to Achieve

Sales Orientation:

Inward

Selling goods and services

Everybody

Maximum sales volume

Primarily promotion

Market Orientation:

Outward

Satisfying wants and needs

Specific groups Customer Coordinated satisfaction use of all of people marketing activities

Societal Marketing
An organization exists not only to satisfy customer wants but also to preserve or enhance individuals and societys long-term best interests. Less toxic products More durable products Products with reusable or recyclable materials

Societal Marketing Orientation

Holistic Marketing Dimensions

The Four Ps

Marketing Mix and the Customer

Four Ps Product Price Place Promotion Three Service Ps Physical Evidence People Process Packaging

Four Cs Customer solution Customer cost Convenience Communication.

4 Ps Vs 4 Cs

Internal & External Marketing Internal marketing is the task of hiring,

training, and motivating able employees who want to serve customers well.
Every one in the organization must think customer

External Marketing is marketing

directed at people outside the company.

In fact, Internal marketing must precede the internal marketing.

Slide 33 of 24

The Marketing Triangle

Marketing Management Tasks

Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Communicate value Create long-term growth

LO4

Review Learning Outcome

Reasons for Studying Marketing Why Study Marketing? Why Study Marketing?

Important Important to to Society Society

Important Important to to Business Business

Good Good Career Career Opportunities Opportunities

+ Marketing affects you every day!