Marketing Management

Assignment 01

Submitted by:- EPHREM GETIE ID:-MAO/1247/13

Course instructor - Dr Muhammed Kassaw [PhD]

Question one- Define the term marketing management?

Marketing is "the science and art of researching, producing, and delivering value to satisfy the needs of a
target market at a profit," according to Philip Kotler, often regarded as the father of modern marketing.

"Marketing management is 'the art and science of selecting target markets and acquiring, retaining, and
increasing customers by generating, delivering, and communicating greater customer value,' according
to Wikipedia.

Marketing management is defined as "the act of planning and executing the creation, pricing,
promotion, and distribution of ideas, goods, and services in order to develop, exchange, and satisfy
individual and organizational objectives," according to the American Association of Marketing. (1989,
Grönroos).

Question two-List and explain the types of demand in marketing with practical examples
from your local area?

1. Negative demand: Negative demand is formed when people detest a product but find it useful. They
attempt to stay away from this product. Customers simply do not desire it. Is it possible that if hospitals
or clinics cut chemotherapy costs by half, clients will take advantage of the offer? No one will go for it, is
the answer.

By performing a few things, you can turn a negative demand into a favorable one. Take a look- • Rather
of promoting, try to raise awareness.

• Make your buyers aware of the significance of your items.

2. No demand: Customers are either unaware of or uninterested in these products. Alternatively,

customers may be aware of the goods but be unwilling to purchase it. This could be due to culture, or
they may believe it is simply a waste of money. For example, there is no desire for family planning
among rural residents. They are either oblivious to or uninterested in family planning. Or they are aware
of it but are unwilling to put it to use. Another example is insurance. Insurance is both a negative
demand and a demand that does not exist.

By doing a few things, a lack of demand can be turned into a positive. Take a look: • To begin, raise
awareness.

• The best illustration is modern agriculture.

• Farmers are producing more harvests than before after using sophisticated facilities.

• If you promote it successfully, you can change a non-existent demand into a complete demand.
• You must deliver your message to customers everywhere.

• Negative and non-existent demand must be aggressively promoted.

• Contraceptive pills are now in high demand, when they were previously unavailable. This occurs as a
result of raising awareness.

3. Unmet demand: Existing items do not meet the customer's current requirements. Customers' latent
demand must be understood by producers. You must ask your customer what they want in order to
grasp their latent demand. As restaurant operators do, try to get feedback from your customers. In
today's restaurants, we can see a suggestion box where customers can leave feedback or notify them if
they have any issues. Every day, you must be aware of your customer. What is the state of their
demand? Customers may want to order online as their lives become busy, so be prepared.

4. Declining demand: Aromatic soap was once the market leader, but it is increasingly losing its
attraction. The demand for this product is dwindling. This could be due to a shift in customer
preferences and tastes, as well as rapid technical advancements. People used Walkmans to listen to
music in the past, for example. People then move on to the iPod after being introduced to it. People are
particularly fond of headphones since they were first introduced. Now, Walkman's popularity is waning.

By performing a few things, declining demand can be turned into a positive. Take a look at these terms:
• re-marketing • re-branding • re-positioning

5. Irregular demand: Irregular demand is caused by utilization rates that vary by season, month, week,
day, and hour. Take, for instance, an umbrella. We only use umbrellas during the rainy season, although
umbrellas are in high demand all year.

6. unwholesome demand: People are aware of the product's negative effects, but they are nonetheless
drawn to it. The most obvious example is a cigarette.

7. Constant demand: The products are in constant demand throughout the year. Medicines, for
example, are always in high demand. Customers will buy whatever the doctor recommends. Customers,
on the other hand, are unwilling to pay if Pharmaceuticals Company reduces or discounts the price of
medicine.

8. Oversupply: People are likely to acquire more things as a result of the sudden increase in demand. As
a result, there is a supply deficit and prices rise. Demand is created through artificial stock. For instance,
during Eid, the price of train and bus tickets rises due to fictitious stock manufactured by merchants.

Question three - List and explain the philosophies of marketing with practical examples?
The beliefs used by businesses to steer their marketing operations are referred to as marketing concepts
or marketing management philosophies. Generally speaking, marketing concepts refer to the ideologies
that a corporation employs to define and meet the demands of its customers, benefiting both the
consumer and the organization. The same philosophy will not work for all types of companies. As a
result, many business kinds employ various marketing management ideas or marketing strategies.

There are primarily five marketing management philosophies, but new concepts or philosophies are
frequently introduced to the existing ones.
1. Holistic Marketing Concept

2. Societal Marketing Concept

3. Marketing Concept

4. Selling Concept

5. Product Concept

6. Production Concept

Production Concept:

This concept is founded on the assumption that buyers favor affordable and widely available products,
thus they sell more of them. This is analogous to Say's Law, according to which "supply creates its own
demand." As a result, businesses produce the product in enormous quantities and ensure that it is
readily available to customers worldwide.

The product's huge size of production allows enterprises to benefit from economies of scale, resulting in
low-cost products that attract more customers.

The disadvantage of this approach is that it concentrates solely on manufacturing rather than product
quality, which may result in lower sales in the long term if the product isn't up to par.

Only when demand outweighs supply can this principle be applied. Again, a customer's buying decision
may be influenced by other factors, thus an affordable product may not necessarily appeal to them.

Applicability of this Concept:

• Companies who have a worldwide market for their products may apply this concept.

• Companies enjoying a monopoly advantage may use this concept.

• Any company whose product’s demand exceeds its supply may follow it.

Product Concept:

This concept is founded on the assumption that people choose high-quality products regardless of price
or availability. Companies focus on generating a higher-quality product, which is usually more expensive,
according to this philosophy.

The disadvantage of this notion is that it solely considers product quality and ignores other
considerations such as usability, availability, and pricing. As a result, it may fail to attract clients who are
focused on the other factors indicated.

Applicability of this Concept:

• Companies belonging to the technology industry may apply this concept.

• Companies enjoying a monopoly advantage may use this concept.

Selling Concept:

The Selling Concept is solely concerned with selling the goods, regardless of its quality or the customer's
needs. Making money is the primary goal, not building a relationship with clients. As a result, there are
fewer chances of repeat sales. Companies that follow this concept may even deceive customers in order
to sell their goods.

The disadvantage of this notion is that it lacks foresight because corporations focus on selling what they
create rather than on market needs.

Applicability of this Concept:

• Companies only concerned with short-term profits follow this concept which may lead to
marketing myopia, a situation where a company focuses only on selling a product instead of fulfilling
customer needs.

• Dishonest or illegal companies may apply this concept.

Marketing Concept:

A company that follows the selling concept will not be able to survive in the market for long since it will
be unable to meet the wants of its clients. To be successful in today's world, businesses must provide
products that meet the wants of their customers. As a result, the marketing concept was born. This
concept is founded on the notion that buyers purchase things that meet their needs. Companies that
follow the marketing concept conduct consumer research to learn about their needs and wants, and
then design goods that better suit those needs and wants than their competitors. The company
establishes a client relationship, becomes lucrative, and gains goodwill in this manner. Despite this,
many businesses succeed by adhering to different ideas. The concept chosen is entirely determined by
demand, supply, and the requirements of the parties involved.

Applicability of this Concept:

• Businesses engaged in perfect competition may follow this concept.

• Businesses who want long-term existence in the market can apply this concept.

Societal Marketing Concept:

The societal marketing concept is built on the marketing concept with the addition of a social welfare
philosophy. Companies focus on meeting the demands of their customers while also contributing to
social welfare without polluting or depleting natural resources. According to this concept, as a member
of society, a company or business has corporate social responsibilities such as eradicating illiteracy and
poverty, controlling alarming population growth, ensuring better health and treatment facilities, and
assisting victims of natural disasters such as floods, cyclones, extreme cold, draught, and so on.

Applicability of this Concept:

• Many big reputed companies like banks, TV channels, telecommunication companies, etc. follow
this concept.

Holistic Marketing Concept:

The holistic marketing concept is a novel addition to the marketing management concepts already in
place. A business and its various pieces, according to this concept, are one single entity with a common
aim and coordinated and integrated operations to achieve that goal. This notion emphasizes on better
and consistent customer service as well as fulfilling societal duties.

For brand creation, consistency, efficiency, and effectiveness, the holistic marketing concept is critical.

Applicability of this Concept:

• Many big reputed companies like banks, TV channels, telecommunication companies, etc. are
now applying this concept.

Business people should have a clear and complete idea about the basic concepts of Marketing
Management to achieve long-term success.

Question four - List and briefly explain marketing mix elements?

Product

A product is a good (such as music players, shoes, and so on) or a service (such as hotels, airlines, and so
on) that is offered as a solution to meet your customer's demands.

You must consider the product's life cycle when developing it, as well as the various obstacles that may
arise during the various stages. When a product hits the end of its life cycle (sales drop phase), it's time
to reinvent it in order to reclaim client demand.

Price

The price your customer is willing to pay for your goods is the next component of the marketing mix.
This can assist you figure out how much profit you'll be able to make.

Consider how much you spent on the goods, the price ranges of your competitors, and the perceived
product value when deciding on a pricing.

Place

This is about the product's distribution center and the procedures for getting it to the client.

It should be easily accessible to the client wherever it is. If you have a physical store, for example, it
should be in a location where customers can readily find it. If you're using a website to promote your
goods, make sure it's simple to use.

Promotion

The strategies a business use to attract clients' attention to their goods are referred to as promotion.
Sales promotions, customer service, public relations, and advertising are just a few examples.

Consider your competitors' techniques, the most successful means for reaching your customers, and
whether they fit the perceived value of your product while developing your promotion strategy.