4.10.

2021

Marketing Management - MKTG201

Introduction
[Chapter 1]

Ayşegül Özsomer
Prof. of Marketing
ozsomera@ku.edu.tr
1

Overview
In offering this course and by you joining this course, we hope to contribute
to the following United Nations Sustainable Development Goals (UN SDG’s):
https://www.un.org/sustainabledevelopment/decade-of-action/

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Overview

COURSE OVERVIEW:
Marketing is about delivering value.
Introductory course to provide a broad understanding of marketing management, and
the role of marketing for the firm and in the society.
The essence of marketing management is assessing and solving marketing problems to
create value for the firm by delivering value to buyers or consumers.
First, we will introduce various marketing concepts - understanding the marketplace +
consumer needs and wants. Topics: the marketing environment, marketing information,
and consumer behavior.
Then, we will discuss the principles of designing a customer-driven marketing strategy
and learn about strategic marketing, targeting, segmentation, differentiating and
positioning.
Finally, we will combine all this knowledge to examine and analyze integrated marketing
programs, with a specific focus on the 4P's of marketing (product, price, place,
promotion).

OBJECTIVES (Course Learning Objectives-CLO’s)

Upon successful completion of this course, students will be able to:

1. Discover the marketing environment
2. Learn key marketing tools, concepts, and terminology. Properly
define, describe and articulate business terms and concepts
associated with the marketing field.
3. Observe the value of product, pricing, place and promotion in
the planning process
4. Analyze marketing problems
5. Apply marketing concepts, tools and techniques to solve
specific business problems

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EVALUATION:

EVALUATION:
Midterm exams (2 exams, 20 pts each) 40 pts
Individual Assignments (2 Assignments, 10 pts each) 20 pts
Pre-class, In-class and after class exercises, Participation
and Attendance 15 pts
Final exam 25 pts
Research Bonus 3 pts
Total 103 pts

What is Marketing?

Costed consumed
master tiketici
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first of all producer ought to perceive the 4.10.2021

needs of customer

What Is Marketing?
Marketing Defined

Marketing is a process by which companies create

value for customers and
build strong customer relationships in order to
capture value from customers in return.

What Is Marketing?
Marketing Defined

Marketing is the activity, set of institutions,

and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.

Marketing is exchange To define

an
the act of obtaining desired or need
from someone by 4
 I
in return such
ay
offering suit
as money 4.10.2021

What Is Marketing?
Marketing Defined

What Is Marketing?
Marketing Defined

Feese or
extremest of exhorge
relationship

Attract new Keep and

customers grow current
via promising customers by
superior value delivering satisfaction

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What Is Marketing?
The Marketing Process

11

Understanding the Marketplace and Customer Needs

5 Core Marketing Concepts

social offerings

▪ Customer Needs, Wants, and Demands

time of
death ▪ Market Offerings – Products, Services, and experiences
watch Experiences

et eric
▪ Customer Value and Satisfaction
▪ Exchanges and Relationships
▪ Markets

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Understanding the Marketplace and Customer Needs

Customer Needs, Wants, and Demands

yoshitaka
Needs • States of deprivation

Wants • Form that needs take

• Wants backed by buying

Demands power

top
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Understanding the Marketplace and Customer Needs

Needs Wants Demands

Form of needs as Wants which are

shaped by culture backed by buying
and the individual power

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Understanding the Marketplace and Customer Needs

Needs Wants Demands

Understanding the Marketplace and Customer Needs

Market: All actual and potential buyers of a product that share a particular need or want
out by
Marketingtraditionally carried
includescustomers
sellers concept nowalso

16

Sellers were the only ones searchingfor buyers

and try to create a satisfying market place
to be delivered This is the traditional method
but this not the case 8
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Understanding the Marketplace and Customer Needs

Any product that satisfies the same need could be a competitor
Do you really need a stroller?
How else could you satisfy the same need?

Companies have to
know the targeted
customers to gain
profit

the market
Companies are segmenting segmentof
Therebythey find theright 17

market Baby diper company focuses

on therightsegment of
the market

Understanding the Marketplace and Customer Needs

Any product that satisfies the same need could be a competitor

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Understanding the Marketplace and Customer Needs

Market Offerings – Products, Services, and Experiences

▪ Market offerings are some combination of products,

services, information, or experiences offered to a
market to satisfy a need or want.

▪ Marketing myopia is focusing only on existing wants

and losing sight of underlying consumer needs.

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Marketing Myopia
Focusing on the product rather than the
underlying need / benefit
lack ofinsight into focus on
what a business is dot their selling
or As customers
invest so much
Organizations
and money concern
me energycurrently dothat
hat they to the only
short term
heyare often blind
future gain

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companies who apply

lose thered objective
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Understanding the Marketplace and Customer Needs

Customer Value and Satisfaction

Customers
• Value and
satisfaction

Marketers
• Set the right level of
expectations

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Understanding the Marketplace and Customer Needs

Exchanges and Relationships

Exchange is the act of obtaining a desired object from someone

by offering something in return.

Marketing actions try to create, maintain, and grow desirable

exchange relationships.

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Understanding the Marketplace and Customer Needs

Markets

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Understanding the Marketplace and Customer Needs

5 Core Marketing Concepts

▪ Customer Needs, Wants, and Demands

▪ Market Offerings – Products, Services, and
Experiences
▪ Customer Value and Satisfaction
▪ Exchanges and Relationships
▪ Markets

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Designing a Customer Value-Driven Marketing Strategy

- Selecting Customers
- Choosing a Value Proposition
- Marketing Management Orientations

Preparing an Integrated Marketing Plan and Program

Designing a Customer Value-Driven Marketing Strategy

- Selecting Customers –
- whom to serve – Segment -> Target
- Choosing a Value Proposition
- how to serve – Differentiate -> position
- Marketing Management Orientations –
- Focus on production or selling, or marketing or societal marketing

Preparing an Integrated Marketing Plan and Program

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Designing a Customer Value-Driven Marketing Strategy

Selecting Customers to Serve

Marketing management is the art and science of

choosing target markets and building profitable
relationships with them.

▪ What customers will we serve?

▪ How can we best serve these customers?

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Designing a Customer Value-Driven Marketing Strategy

Selecting Customers to Serve

Market segmentation refers to dividing the markets

into segments of customers.

Target marketing refers to which segments to go after.

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Designing a Customer Value-Driven Marketing Strategy

Choosing a Value Proposition

A brand’s value proposition is the set of

benefits or values it promises to deliver to
customers to satisfy their needs.

Designing a Customer Value-Driven Marketing Strategy

Choosing a Value Proposition

Damla Cam Damacana

value proposition:
the set of benefits or values
it promises to deliver to
Do
customers to satisfy their
needs.

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Designing a Customer Value-Driven Marketing Strategy

Facebook “connect and share with the people in your life”

promises YouTube “a place for people to connect, inform, and inspire

others across the globe”

BMW “the ultimate driving machine”

Tesla ?

“gives you wings”

New Balance “like barefoot, only better”

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Marketing Management Orientations

• Production Concept
• Focus is on production and distribution efficiency

• Selling Concept
• Focus is on selling and sales promotions

• Product Concept
• Focus is on product improvement

• Marketing Concept
• Focus is on understanding needs and wants of target customers

• Societal Marketing Concept

• Focus is on societal well-being
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Designing a Customer Value-Driven Marketing Strategy

Marketing Management Orientations

Copyright © 2016 Pearson Education, Inc.

Designing a Customer Value-Driven Marketing Strategy

Marketing Management Orientations

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Organization with a
A business

LANG
product oriented
approach
where companies to's to dote
ontheir products approach strive
services of the
products or
highest area
Production Orientation possible

• Focus is on mass production

and process efficiency
• Little direction from the
customers
• May be sensible when
affordability is key

Ford T Model
“I will build a car for the great multitude. It will be large enough for the family, but
small enough for the individual to run and care for. It will be constructed after the
simplest designs that modern engineering can devise. But it will be so low in price that
no man making a good salary will be unable to own one – and enjoy with his family the
blessing of hours of pleasure in God's great open spaces.” (Henry Ford)
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Product Orientation

• Focus on developing products

that offer the most in quality,
performance, and innovative
features.
• We build the best!” And “the
best” is defined by the
producer, not the consumer.
• Product is more important than
the other 3 P’s

orientation
paves
product marketing myopia
way to various or
companieslosessight on
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alternative solution of a problemoneproduct

because they focus on their

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A business model
Selling Orientation
at
would
8Tntwhat • Focus on convincing/ the best
pressuring the customers making
product and
FEI Kett • Maximize sales by whatever services
means necessary (e.g., price without
cuts, aggressive promotions considering
and sales tactics)
customers
• “Selling what we make” warts or
d needs
inside
out
approach
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Market Orientation
in approach come up
with a the
riortizes
• Determine and satisfy consumer
goutside product in
is needed
need whether this is consistent
dentifying the
the market
with the existing product line
eeds and • “Making what we can sell”
estres of • Not just customer-driven
consumers marketing but customer-driving
and creating marketing. (answering latent
ducts needs)
and services
hot satisfy “If I had asked people what they
them wanted, they would have said faster
horses.”
Henry Ford

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emphasize that an organization must make
strategic marketing decisions keeping in mind
the consumer wants the interests the
organizational needsand
most important the longterm of society

Societal Marketing Concept

Firm should make marketing decisions
not only by considering consumers' It holds the company responsible of caring
wants, the firm's objectives, but also and providing for societyʼs welfare.
society's long-term interests.

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Societal Marketing Concept

https://www.youtube.com/watch?v=qNb2BvP
qEOQ&ab_channel=OurBetterWorld

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Socially and environmentally responsible marketing Sustainablemarketing

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Societal Marketing Concept

Rats sniffing out landmines speed up process of a mine-free
world

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Designing a Customer Value-Driven Marketing Strategy

- Selecting Customers
- Choosing a Value Proposition
- Marketing Management Orientations

Preparing an Integrated Marketing Plan and Program

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What Is Marketing?
The Marketing Process

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Preparing an Integrated Marketing Plan and Program

The marketing mix is the set of tools (four Ps) the firm uses to
implement its marketing strategy. This set includes product,
price, promotion, and place.

An integrated marketing program is a comprehensive plan that

communicates and delivers the intended value to chosen
customers. Transforms the strategy into action!

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Preparing an Integrated Marketing Plan and Program

Transform the strategy into action!

4Ps of Marketing
howmuch do
chape for A
gFÉ
meteor
how to
communicate
howto make it the value
available to topet
consumers

Building Customer Relationships

Customer Relationship Management

Customer relationship management is the overall process of

building and maintaining profitable customer relationships by
delivering superior customer value and satisfaction.

we try to segment to people

andthen try to choose our
target segment

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Building Customer Relationships

Value and Satisfaction

Value Satisfaction
The customer’s evaluation of
the difference between all The extent to which a
the benefits and all the costs product’s perceived
of a marketing offer relative performance matches
to those of competing offers. a buyer’s expectations

Thebeeftsawstme
gets Ionossesfonerphesies
customer is
after subtracting allthe newsatisfied a
cost and effort Which frequency or club marketing programs to whatthey
involved tobuy the do you belong to? Why? cypegg
productsservices

Building Customer Relationships

Customer Relationship
Management

Customer Relationship Levels and Tools

Basic Relationships Full Partnerships

AA
Frequency
Marketing
– low-margin – high-margin
Programs – reward
customers customers
customers

Create engagement and relationships through brand-building advertising, websites,

and social media presence.
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Customer lifetime value: the total worth to a business of a customer over the whole period of their
relationship.
• the value of the entire stream of purchases a customer makes over a lifetime of patronage

Capturing Value from Customers

Creating Customer Loyalty and Retention

Customer lifetime value is the value of the entire stream of

purchases that the customer would make over a lifetime of
patronage.

Share of customer (Share of wallet) is the portion of the

customer’s purchasing that a company gets in its product
categories.

Customer equity is the total combined customer lifetime values

of all of the company’s customers.

potentialcustomers also

Capturing Value from Customers

Creating customer loyalty

Growing share of consumer

Building customer equity

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Capturing Value from Customers

Building Customer Loyalty

Building the Right Relationships with the Right

Customers

FIGURE 1.5
Customer
Relationship
Groups

Copyright © 2016 Pearson Education, Inc.

Capturing Value from Customers

Growing Share of Customer/Wallet

“The portion of the customer’s purchasing that a company

gets in its product categories.”

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Capturing Value from Customers

Growing Share of Customer/Wallet

AÖ’s monthly online non-grocery purchases: 5000 tl

2150/5000 2200/5000 500/5000 0/5000 150/5000

43% 44% 10% 0% 3%

Building Customer Relationships &

Capturing Value

Building Customer Relationships

- Customer Relationship Management
- Engaging Customers
- Partner Relationship Management
Capturing Value from Customers
- Creating Customer Loyalty & Retention
- Growing Share of Customer
- Building Customer Equity
Copyright © 2016 Pearson Education, Inc.

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The Changing Marketing Landscape

The Changing Marketing Landscape

- The Digital Age
- Not-for-Profit
- Rapid Globalization
- Sustainable Marketing

So, What Is Marketing? Pulling It All Together

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Q&A

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