MARKETING MANAGEMENT

Chapter One
Shabir Ahmad Saleem
What is Marketing?

Marketing is the social and managerial

process by which individuals and groups
obtain what they need and want through
creating and exchanging products and
value with others

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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.

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Exchange
Core concept of marketing
The process of obtaining a desired product
from someone by offering something in
return

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.
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What is Marketed?
 Goods: mobile, TV, car, food products
 Services: Work of: airline, hotels, maintenance,
lawyer, software programmer
 Events: Trade shows, artistic performance, sporting events
 Experiences: By orchestrating several services and goods
 Persons: Show TV of Celebrities, their attendance in parties
 Places: Cities, states, regions, and whole nations compete
actively to attract tourists
 Properties: marketing securities and other copy right properties
 Organizations: Universities, museums, and performing arts
organizations use marketing to boost their public images and to
compete for audiences and funds.
 Information: what schools and universities produce and
distribute at a price to parents, students, and communities.

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What is Marketed?
 Ideas

Products and services are

platforms for delivering some idea
or benefit

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Who Markets?
 Marketers or Prospects?

 A marketer is some one who seeks response

from another party, called the prospect

 Marketers are responsible for demand

management as stimulating demand for a
company's products
 Prospects are responsible for supply
management

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Demand States
 Negative demand- Consumers dislike the product
and may even pay a price to avoid it.
 2. Nonexistent demand - Consumers may be
unaware or uninterested in the product.
 3. Latent demand - Consumers may share a
strong need that cannot be satisfied by an existing
product.
 4. Declining demand - Consumers begin to buy
the product less frequently or not at all
 5. Irregular demand - Consumer purchases vary
on a seasonal, monthly, weekly, daily, or even hourly
basis.

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Demand States
 6. Full demand - Consumers are adequately
buying all products put into the marketplace.
 7. Overfull demand - More consumers would
like to buy the product than can be satisfied.
 8. Unwholesome demand - Consumers may
be attracted to products that have undesirable social
consequences.

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Markets

 Market is a collection of buyers and sellers

who transact over a particular product or
product class (e.g., the housing market or
grain market)

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Key Customer Markets

 Consumer markets: Companies selling mass

consumer goods and services such as soft drinks,
cosmetics, air travel, and athletic shoes and equipment
spend a great deal of time trying to establish a superior
brand image.

 Business markets: Companies selling business goods

and services to business buyers and business buyers buy
goods in order to make or resell a product to others at a
profit.

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Key Customer Markets
 Global markets: Companies selling goods and services
in the global marketplace

Wall climbing on a Coke ad to attract

attention (and customers) at the first China
International Beverage Festival in Beijing in
2003.

 Nonprofit/Government markets
Companies selling their goods to nonprofit
organizations such as churches, universities,
charitable organizations, or government
agencies

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Company Orientations Toward the Marketplace

 Production Concept:

It holds that consumers will prefer products that are widely

available and inexpensive. Managers of production-oriented
businesses concentrate on achieving high production
efficiency, low costs, and mass distribution.

 Product Concept :

It holds that consumers will favor those products that offer

the most quality, performance, or innovative features.
Managers in these organizations focus on making superior
products and improving them over time.

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Company Orientations Toward the Marketplace

 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.

 Marketing Concept :
It holds that achieving organizational goals depends on
determining the needs and wants of target markets and creating,
delivering and communicating the desired satisfactions more
effectively and efficiently than competitors do.

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Marketing Mix and the Customer
The set of controllable tactical marketing tools -
product, price, place and promotion - that the
firm blends to produce the response it wants in
the target market.

Four Ps Four Cs
 Product  Customer solution
 Price  Customer cost
 Place  Convenience
 Promotion  Communication

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Core Concepts

 Needs- basic human requirements: food, air, water,

clothing, and shelter to survive.

 Wants – needs directed to specific object

 Demands – wants backed by ability to pay

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Core Concepts
 Types of needs
 Stated needs: (the customer wants an inexpensive car).
 Real needs: (the customer wants a car whose operating
cost, not its initial price, is low).
 Unstated needs: (the customer expects good service
from the dealer).
 Delight needs: (the customer would like the dealer to
include an onboard navigation system).
 Secret needs: (the customer wants to be seen by friends
as a savvy consumer).

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Core Concepts
 Target markets:
 A set of buyers sharing common
needs or characteristics that the
company decides to serve.
 Positioning
 Arranging for a product to
occupy a clear, distinctive, and
desirable place relative to
competing products in the mind
of target consumers. E.g. Volvo
develops its cars for buyers in
term of safety.

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Core Concepts
 Segmentation:
 The process of dividing a potential market into
different subsets of consumers and selecting one or
two segments as a target market to reached with
different marketing max.
 Offerings:
 A set of benefits that the companies offer to the
customers to satisfy their needs
 Brands:
 A brand is an offering from a known source. E.g.
McDonald's carries

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Core Concepts
 Marketing channels:
 To reach a target market, the marketer uses three kinds
of marketing channels.
 Communication channels deliver and receive messages
from target buyers, and include newspapers,
magazines, radio, television, mail, telephone, billboards,
posters, fliers, CDs, audiotapes, and the Internet.
 The marketer uses distribution channels to display, sell,
or deliver the physical product or service(s) to the buyer
or user. They include distributors, wholesalers, retailers,
and agents.

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Core Concepts

 Marketing channels:

 The marketer also uses service channels to carry

out transactions with potential buyers. Service
channels include warehouses, transportation
companies, banks, and insurance companies that
facilitate transactions.

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Core Concepts

 Supply chain:
 describes a longer channel stretching from raw
materials to components to final products that are
carried to final buyers.
 Competition
 Competition includes all the actual and potential
rival offerings and substitutes that a buyer might
consider.

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