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‫بسم هللا الرحمن الرحيم‬

1.WHAT IS MARKETING:
-The American Marketing Association (AMA) defined
marketing as:
“The activity set of institutions and process for
creating, communicating, delivering and exchanging
offerings that have value for customers, clients,
partners and society at large.”

-This definition indicates that:-


•Marketing is a natural human activity as old as
human beings.
•Process is any set of successive steps that depend
on each other and are carried out in a specific
order.
•The institution doesn’t carry marketing on its
own, but it is an activity that the institution needs
external partners to complete (like Advertising
agencies)
•Marketing helps the institution in :-
A. CREATING B. COMMUNICATING C.
DELIVERING
D. EXCHANGING
•Who benefits from marketing:-
• CUSTOMERS B. CLIENTS C. PARTNERS D.
SOCIETY

-What do they benefit from marketing?


1.For the institution:-
•What makes a business work is satisfying
Customer needs.
• Money alone doesn’t achieve the
success.
•So Marketing help's the institution to:-
1- Understand the customers needs.
(selling what can be produced and not
producing what can be sold).
2- Generate financial flow.
(The only managment that does this
process).
3- Control the level of demand.
(Markers should assure the stability of
demand levels at a certain minimum level
for covering casts).
#all these duties are necessary for the
institution. The absence of any would
Cause serious damages#
2. for the benefiters :- (customers)
1- Marketers stay awake the nights to
understand our needs and satisfy
them.
2-Marketing helps customers to get rid
of any
Risky emotions.
3. for partners :-
1-Marketimg is a connecting chain
between the suppliers & the
demanders (customers).

4. For the society:-


1-Marketing contributes in the social
Responsibility &it satisfies customers’
needs( internal customer (employee))
and society needs.
2- Helps to raise the welfare& luxury of the
society.
3-Increases the number of job opportunities
in market (1/3 of individuals’ work in
marketing).
4- provides financial surplus for institution
To help it satisfy its financial seeds.
*Peter Drucker said :- The main function of
Marketing is making the selling process not so
Important.

*He divided the components of marketing into


four components which do have direct relation
with the functions of marketing according to AMA
( the four Ps or the marketing mix):-
1.Product
2.Price
3.Price
4.Promotion

*So Drucker said that the functions of marketing


Are:-
• Producing or creating the product. and
this function is done between the , the
production management and
researchers and development
management.( has a relation with
creating)
• Pricing the product and this function is
done between the marketing
management and the financial
management.( has a relation with
exchanging)
• Placing or distributing the product and
this function is done between the
marketing management and the
logistics management.( has a relation
with delivering)
• Promoting the product and this function
is done by the marketing management
only.(has a relation with
communicating).
*The AMA definition and functions distribution
is more comprehensive and applicable than the
marketing mix.
*Peter Drucker named them a mix because the
marketing plans settled annually is a mix of
these elements.
-What do we mean by ‘value”?
• Marketers market for ten types of things:-
1. Product
2. Services
3. Experience
4. People
5. Thoughts
6. Places
7. In formation
8. Properties
• A product is something produced inside the
institution and exchanged in the market.
• Value refers to benefits that customers get from
the product
• Although the offering is created by the
company, the value is determined by the
customer.
• Customer is the king because They got the
money and they can go somewhere else if they
don't like and they can go somewhere else if
they don't like the and they can go somewhere
else if they don't like the service.
• Value = benefits recived – (price + hassle)
(hassle is all the efforts a customer puts in the
shopping process).
• So in conclusion marketing is satisfying
customers needs through exchanging processes
and ensuring getting profit in return.

2.WHO DOES MARKETING:

• Types of organisations that does marketing:


1. For profit companies( b2b b2c).
2. Non profit organisation.
3. Individuals.
1.
There are two types of for profit companies:
Business to business companies who deliver the
value to artificial customers which are other
companies and business to consumer companies
who delivere the value to final consumers who
are the individuals.
2.
•Non profit organisations needs marketing for
support attraction.
•there is an exchange process is that take place
between the donating organazation and the
donator.
•The donator receives
satisfaction and psychological
comfort for his donation.
•Non profit organisations needs two types of
support which are pocket share and heart share.
3.
individuals needs marketing for applying for jobs
and marriage proposals (romantic relations in
general).

*INSIDE THE INSTITUTION:-


• Marketing department needs a chief
marketing officer CMO who is in the middle
management.
• Marketing is different from selling.
• Selling is about telling and then selling and
it doesn't relate to making long term
relations with the customers. the success is
determined by revenues.
• Marketing is about making long term
relations with the customers. They learn
and study their needs and do their best to
satisfy them. Their success isn’t measured
by revenues only, but also by customers
loyalty and keeping good relations.
• Selling is a part of promoting and promoting
is a part of marketing.

3.MARKETING CONCEPTS:
1.Production concept:
Around industry evolution until now in that time
market was seller market they are increase in
production that's why markets focused on low cost
production and Wide distribution.
There is a lot of company that still use production
concept like Chinese companies.
2.product concept:
The market switched from seller market to buyers
market and competition appeared that’s why
Marketers start to focus on product instead of
production.
Marketers aim at this this state to improve the quality
of the goods and add feature to it to be able To
compete in the market.
There are many companies that still adopt these
concepts such as phones and cars companies.
this concept has a downside as it causes market
myopia.
Marketing myopia is a disease that affects Some
marketers that leads marketers interest in the product
more than customers need. Which leads to selling
what can be produced instead of producing what can
be sold
3.Selling concept:
In that. The Great Depression occurred in America
purchasing power declined.
It’s about selling product in every way possible.
These concepts also has marketing myopia because it
still workers on product instead of customers needs.
There is also companies that still use this concept like
companies that sell unsought goods for example
insurance companies.
insought goods is type of product that customer don’t
seek actively.
4.Marketing concept:
Marketing as function inside organization started after
World War Two 1945.

During that. Association such as the consumer


protection association established with the aim of
protecting consumers from the greed of producer.
It sought to create laws that protect consumers and
put a pressure on producing company to produce high
quality goods and service.
The biggest success of the consumer protection
association in USA was during the term of John F
Kennedy.
USA government should maintain 4 consumer rights:
1.The right to be safety
The right to consume safe products
2.The right to be informed
The right to get information about the product ( raw
materials Production date…….. etc.)
3. The right to be heard.
4.The right to choose.
This concepts State that the success of any company is
linked to fulfilling the desire of customers
marketing is no longer the job of the marketer alone
but rather job of every person within company
Customers has become the most important part of
company success
Marketing orientation:
It’s orientation that makes marketing everyone’s job.
All successful company work with marketing
orientation.
Modern marketing concept trial :
It’s based on satisfying desire of customers in better
way than competitors with achieving profits.
Principles of marketing concepts:
1.To find the right product for the for the customer
2. for business to be successful customers and their
needs should be the Centre of business activity
3.Customers are intelligent enough to know what they
need
4.Require everyone in the organization to become
customer oriented an not just people who work in
marketing
how everyone in the organization can become
marketing oriented?
1.Manufacturing:
• Continuously search for ways to produce goods
faster and produce it on lower cost also try to
improve product quality aiming for 0 defect.
• Meet customer requirements for customization
where possible willing to work overtime to meet
promise giving schedule.
2.Purchasing.:
• don't compromise quality for price saving.
3.Logistics:
• Set a high standards for service delivery time and
meet the standards consistently.
• Answer question handle complaints and resolve
problems in the best way possible.
4.Research and development:
• Spend time meeting customers listening to their
problems benchmark competitors product and
seek best of class solutions.
• An suggestions at the project progress
continuously improve and relying the product on
the basis of market feedback.
5.Accounting:
• Prepare report about profitability of certain
customers.
• Prepare report about profitability of certain
customers prepare invoice tailored to customers
need an answer customers question continuously
and quickly.
6. Finance:
• understand and support marketing expenditure.
• Tailor the financial package to the customer
financial requirements.
• Make quick decision on customers credit
worthiness.
Credit worthiness
The extent to which a person or company is considered
suitable to receive financial credit.
Resistance to market concept:
1.Production people :
Argument: This what we make efficiently, it's a good
well made product and it's up to you to find people to
sell it t.
Response: You may like the product but the customers
may have other ideas we need to delight our
customers and ensure their loyalty in future.
2.Accountant and financial directors:
Argument the only sensible way to prices allocate all
costs then add our profit margin this Way we know for
sure we can’t lose money also how about cutting out
the Middlemen by selling direct to retailers .
Response: Cost plus pricing is not the best way to set
the price and cutting out the wholesaler man we need
to deliver small amount to every corner shop in the
country.
3.Legal department:
Argument: we have no legal obligation to do more than
return people money if things go wrong why waste
time in apologizing to customers .
Response : with no customers we have no business we
have all our eggs in one basket we can’t afford upset
any of them.
4.Board of directors:
Argument: business is not so good so everybody’s
budgets are being cut including the marketing
department.
Response: if you cut marketing budget you cut the
amount of business coming Our competitors will take
the advantage and we will lose our customer base
market share.
5.Frontline staff:
Argument: I am paid to drive a truck not chat up with
the customers they are getting what they paid for what
more they want.
Response : happy customers helps the business and
keep you in a job.
contemporary market concepts:
1.Societal marketing:
It is an improved version of marketing concept.
Marketers should satisfy consumers needs in better
way than competitors and achieving profits without
harming society.
Contributing to increasing the welfare society.
2.Holistic marketing (overall concept) :
Marketing is the function of enterprise as whole and
function of all parties that work with the enterprise.
The goal of the organization is to satisfy needs of
customers and stakeholders.
Consist of:
1.Relationship marketing:
create good relationship with all parties who deal with
the organization.
2.Integrated marketing:
Marketing is the task of all company parts
3.Internal marketing:
The organization should satisfy her internal worker
which our employees before satisfy customers needs.
4. Performance marketing:
Marketing has multiplied criteria that company must
take into account while doing marketing such as
achieving high profit high sales and community
satisfaction.
Key marketing words
Exchange:
goes beyond advertising Ansell also means ensuring
that goods are where they should be.
Segmentation and targeting:
People can be grouped according to their needs and
that we can and should devote our limited resource to
meet the needs of few groups rather than trying to
please everyone.
Segmentation is dividing the market into segments.
Positioning:
Creating positive attitude towards the brand and the
firm in the minds of target customers the position the
brand occupies in the minds of the target group there
for important.
Customers and consumers:
Customers are people or firm who buy products.
Consumer actually use the product or consume it.
Both word customer and consumer may use
interchangeably but usually The person who buys the
product is not the one who consume it.
Needs and wants:
A need is a state of self deprivation.
A want Is the specific form that need takes based on
the environment.
Demand:
Wants become demands when customer has the
means to pay for the product.
demand is want plus ability to pay.
Public :
Any firm or individuals that have actual influence on
the marketing organization.
Market:
All the actual and potential buyers of the firm
products.
5.MODEL FOR THE MARKETING PROCESS:-
•Two of the oldest people who spoke about modern
marketing are Philip Kotler and Theodore Levitt , where
the first said that the goal of the organization is to gain
customers, identify those with value, entice them,
retain them, and develop them. While the second said
that the primary goal of any organization is the primary
goal of marketing.
• How gain a customer?
In order to win and gain a customer there must be a
promised value to attract him to be loyal and stay
Through the ways of advertisement and promotion to
communicate the existed value.
•How to distinguish between the valuable and the non
valuable customers and what do we mean by the value
of the customer?
1.The lifetime value of the customer is the resulting
value that the organization obtains from the customer
by the age. In which the customer deals with the
organization.
2. For those customers who are valuable we should
keep them, but for the non valuable customers; we
should know why they are not valuable and do our
best to make them valuable and in case we failed to
make them valuable we should get rid of them to harm
the competitors.
*NOTES FROM THE REFERENCE*
• _There are four activities or components of
marketing:-
* creating :-
the process of collaborating with suppliers
and customers to create offering that have
value.
• communicating :-
describing those offering as well as learning
from customers.
• delivering :-
getting those offering to the consumers in
way that optimizes value.
• exchanging :-
trading value for those offering.
• _the traditional way of viewing the
component of marketing is the 4ps
(marketing mix) :-
• Product :-
goods and services(creating offerings)
• promotion:-
(communication )
• place :-
Getting the product to point at which the
customer can purchase it (delivering)
• price :-
the monetary amount charged for the
product (exchanging)
• * Creating Offerings That Have Value:-
_The entire bundle consisting of the
tangible good, the
intangible service, and the price is the
company’s offering.
_ Marketing people do not create the
offering alone.
* Communicatin Offerings:-
_ Communicating is a broad term in
marketing that means describing the
offering and its value to your potential and
current customers, as well as learning from
customers what it is they want and like.
_Sometimes communicating means
educating potential customers about the
value of an offering, and sometimes it
means simply making customers aware of
where they can find a product.
_Communicating also means that customers
get a chance to tell the company what they
think.
_Today companies are finding that to be
successful, they need a more
interactive dialogue with their customers.
For example, Comcast customer service
representatives monitor Twitter. When they
observe consumers tweeting problems with
Comcast, the customer service reps will
post resolutions to their problems.
_Similarly, JCPenney has created consumer
groups that talk among themselves on
JCPenney-monitored Web sites. The
company might post questions, send
samples, or engage in other activities
designed to solicit feedback from
customers.
_Mobile devices, like iPads and Droid
smartphones, make mobile marketing
possible too. For example, if consumers
check-in at a shopping mall on Foursquare
or Facebook, stores in the mall can send
coupons and other offers directly to their
phones and pad computers.
_Companies use many forms of
communication, including advertising on
the Web or television, on billboards or in
magazines, through product placements in
movies, and through salespeople. Other
forms of communication include attempting
to have news media cover the company’s
actions (part of public relations [PR]),
participating in special events such as the
annual International Consumer Electronics
Show in which Apple and other companies
introduce their newest gadgets, and
sponsoring special events like the Susan G.
Komen Race for the Cure.
* Delivering Offerings :-
_Marketing can’t just promise value, it also
has to deliver value. Delivering an
offering that has value is much more than
simply getting the product into the
hands of the user; it is also making sure that
the user understands how to get the
most out of the product and is taken care of
if he or she requires service later.
_Value is delivered in part through a
company’s supply chain. The supply chain21
includes a number of organizations and
functions that mine, make, assemble, or
deliver
materials and products from a
manufacturer to consumers.
_The actual group of
organizations can vary greatly from industry
to industry, and include wholesalers,
transportation companies, and retailers.
_Logistics or the actual transportation and
storage of materials and products, is the
primary component of supply chain
management.
* Exchanging Offerings:-
_In addition to creating an offering,
communicating its benefits to consumers,
and
delivering the offering, there is the actual
transaction, or exchange that has to occur.
In most instances, we consider the
exchange to be cash for products and
services. However, if you were to fly to
Louisville, Kentucky, for the Kentucky
Derby, you could “pay” for your airline
tickets using frequent-flier miles. You could
also use Hilton Honors points to “pay” for
your hotel, and cash back points on your
Discover card to pay for meals. None of
these transactions would actually require
cash. Other exchanges, such information
about your preferences gathered through
surveys, might not involve cash.
_When consumers acquire, consume (use),
and dispose of products and services,
exchange occurs, including during the
consumption phase. For example, via
Apple’s “One-to-One” program, you can pay
a yearly fee in exchange for additional
periodic product training sessions with an
Apple professional. So each time a training
session occurs, another transaction takes
place. A transaction also occurs when you
are finished with a product. For example,
you might sell your old iPhone to a friend,
trade in a car, or ask the Salvation Army to
pick up your old refrigerator.
• Marketing can be thought of as a set of
business practices that for-profit
organizations, nonprofit organizations,
government entities, and individuals
• can utilize. When a nonprofit organization
engages in marketing activities,
this is called nonprofit marketing. Marketing
conducted in an effort to achieve certain
social objectives is called social marketing.
• By facilitating transactions, marketing
delivers value to both consumers and
firms. At the broader level, this process
creates jobs and improves the
quality of life in a society. Marketing can be
costly, so firms need to hire
good people to manage their marketing
activities. Being responsible for both
making money for your company and
delivering satisfaction to your
customers makes marketing a great career.
Why we study marketing :-

_Marketing Enables Profitable


Transactions to Occur :-
Products don’t, contrary to popular belief,
sell themselves. Generally, the “build it and
they will come” philosophy doesn’t work.
Good marketing educates customers so that
they can find the products they want, make
better choices about those products, and
extract the most value from them. In this
way, marketing helps
facilitate exchanges between buyers and
sellers for the mutual benefit of both
parties. Likewise, good social marketing
provides people with information and
helps them make healthier decisions for
themselves and for others.Of course, all
business students should understand all
functional areas of the firm, including
marketing. There is more to marketing,
however, than simply understanding its role
in the business. Marketing has tremendous
impact on
society.
_Marketing Delivers Value:-
Not only does marketing deliver value to
customers, but also that value translates
into the value of the firm as it develops a
reliable customer base and increases its
sales and profitability. So when we say that
marketing delivers value, marketing delivers
value to both the customer and the
company.
_Marketing Benefits Society:-
*Marketing benefits society in general by
improving people’s lives in two ways. First,
as we mentioned, it facilitates trade. As you
have learned, or will learn, in economics,
being able to trade makes people’s lives
better. Otherwise people
wouldn’t do it .
*In addition, because better marketing
means more successful companies,
jobs are created. This generates wealth for
people, who are then able to make
purchases, which, in turn, creates more jobs
*The second way in which marketing
improves the quality of life is based on the
value delivery function of marketing, but in
a broader sense. When you add all the
marketers together who are trying to
deliver offerings of greater value to
consumers and are effectively
communicating that value, consumers are
able to make more informed decisions
about a wider array of choices. From an
economic perspective, more choices and
smarter consumers are indicative of a
higher quality of life.
_Marketing Costs Money:-
Marketing can sometimes be the largest
expense associated with producing a
product. In the soft drink business,
marketing expenses account for about one-
third of a product’s price—about the same
as the ingredients used to make the soft
drink itself. At the bottling and retailing
level, the expenses involved in marketing a
drink to consumers like you and me make
up the largest cost of the product.
Some people argue that society does not
benefit from marketing when it represents
such a huge chunk of a product’s final price.
In some cases, that argument is justified.
Yet when marketing results in more
informed consumers receiving a greater
amount of value, then the cost is justified.
_Marketing Offers People Career
Opportunities:-
Marketing is the interface between
producers and consumers. In other words, it
is the one function in the organization in
which the entire business comes together.
Being responsible for both making money
for your company and delivering
satisfaction to your customers makes
marketing a great career. In addition,
because marketing can be such an
expensive part of a business and is so
critical to its success, companies actively
seek good marketing people.
variety of jobs available in the marketing
profession. These positions represent only a
few of the opportunities available in
marketing.
• Marketing research:-
Personnel in marketing research are
responsible
for studying markets and customers in
order to understand what strategies or
tactics might work best for firms.
• Merchandising:-
In retailing, merchandisers are responsible
for
developing strategies regarding what
products wholesalers should
carry to sell to retailers such as Target and
Walmart.
• Sales:-
Salespeople meet with customers,
determine their needs, propose offerings,
and make sure that the customer is
satisfied. Sales
departments can also include sales support
teams who work on creating the offering.
• Advertising:-
Whether it’s for an advertising agency or
inside a company, some marketing
personnel work on advertising. Television
commercials and print ads are only part of
the advertising mix. Many
people who work in advertising spend all
their time creating advertising for electronic
media, such as Web sites and their pop-up
ads, podcasts, and the like.
• Product development :-
People in product development are
responsible for identifying and creating
features that meet the needs of a firm’s
customers. They often work with engineers
or other technical personnel to ensure that
value is created.
• Direct marketing:-
Professionals in direct marketing
communicate
directly with customers about a company’s
product offerings via channels such as e-
mail, chat lines, telephone, or direct mail.
• Digital media:-
Digital media professionals combine
advertising, direct
marketing, and other areas of marketing to
communicate directly with
customers via social media, the Web, and
mobile media (including
texts). They also work with statisticians in
order to determine which
consumers receive which message and with
IT professionals to create
the right look and feel of digital media.
• Event marketing:-
Some marketing personnel plan special
events,
orchestrating face-to-face conversations
with potential and current customers in a
special setting.
• Nonprofit marketing :-
Nonprofit marketers often don’t get to do
everything listed previously as nonprofits
typically have smaller budgets. But their
work is always very important as they try to
change behaviors without having a product
to sell.

PREPARED BY:
NOOR ELWALEED
NUSAIBA ALI
AYMAN ALAMIN ;
MEMBERS OF THE ACADEMIC OFFICE.

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