Marketing Management

By:
Dereje A (Ass. Prof)

1
What is Marketing ?

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
American Marketing Association

Marketing is a social and managerial process by which

individuals and groups obtain what they need and want
through creating and exchanging products and value
with others. (Kotler P.)

2
 Simple Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

Information 3
 Marketing = ?
 Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about
push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

4
 The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost
5
The Goal of Marketing is:

To attract new customer by promising superior

value, and to keep current customers by
delivering satisfaction.

6
Scope – What do we market

 Goods
 Services
 Events
 Ideas
 Person/people
 Place
 Organizations
 Properties
 Information

7
 Core Concepts of Marketing

Based on :
 Needs, Wants, demand

 Products, Value & Satisfaction

 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

8
Needs, Wants, and Demands

Needs:
The most basic concept underlying marketing is that of human
needs.
Human needs are states of felt deprivation.
Human have many complex needs:
 Physical needs for food, clothing, warmth, and safety
 Social needs or belonging and affection
 Individual needs for knowledge and self – expression

9
Maslow’s Hierarchy of Needs

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
Wants

Wants: are the form taken by human needs as they

are shaped by culture and individual personality.
People have almost unlimited wants but limited
resources.
They want to choose products that provide the
most value and satisfaction for their money.

11
Demands:

When backed by buying power, wants become

demands.
Consumers view products as bundles of benefits
and choose products that give them the best
bundle for their money.

12
Products and Services

Product:
. Anything that can be offered to a market to satisfy a
need or want. The concept of product is not limited
to physical objects – anything capable of satisfying
a need can be called a product
Services:
In addition to tangible goods, products also include
services, which are activities or benefits offered for
sale that are essentially intangible and do not result
in the ownership of anything.

13
Values, Satisfaction, and Quality
Values:
- Customer value is the difference between the values the customer
gains from owning and using a product and the costs of obtaining
the products.
value = benefits received – [price + hassle].
Satisfaction:
Customer satisfaction depends on a product’s perceived
performance in delivering value relative to a buyer’s expectation.
If the product’s performance falls short of the customer’s
expectations, the buyer is dissatisfied.

14
Quality:
 Customer satisfaction is closely linked to quality.
 Quality has a direct impact on product
performance.
 Quality can be defined as “freedom from
defects”.
 TQM programs designed to constantly improve
the quality of products, services, and marketing
processes.
15
 Exchange, Transactions, and
Relationships

Exchange :
The act of obtaining a desired object from someone by offering
something in return
Transaction :
A trade between two parties that involves at least two things of
value, agreed – upon conditions a time of agreement, and a place
of agreement.
Relationship marketing :
The process of creating, maintaining, and enhancing strong, value
– laden relationships with customers and other stakeholders

16
 Markets

The set of all actual and potential buyers of a product or

service

Communication

Products / Services
Industry Market (a
(a collection collection of
of sellers) buyers)
Money

Information

A simple marketing system

17
Examples of Core Concepts of Marketing

 Need – food ( is a must )

 Want – Pizza, Burger, Injera( translation of a need as per
our experience and culture)
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

18
In order to understand Marketing let us begin with the
Marketing Triangle

Customers

Company Competition

19
Main actors and forces in a modern
marketing system

Competitors

Marketing
intermediaries End user market
Suppliers
Company
(marketer)

20
If marketing is understood as such, what
is marketing management then?

It consists of Marketing + Management

Therefore, let us define management first

21
What is Management?

Management – is
- The process of performing the five
managerial functions
- The art of getting things done with and
through people
- The effective and efficient utilization of
scarce resources for achieving organization
goal

22
 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.
Is the analysis, planning, implementation, and
control of programs designed to create, build,
and maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives.

23
Marketing Management Involves:

Demand Management :
Building Profitable Customer Relationships :

24
 MARKETING MANAGEMENT PHILOSOPHIES

The role that marketing plays within a company varies according to

the overall strategy and philosophy of each firm.
There are five alternative concepts under which organizations
conduct their marketing activities:
 Production concept
 Product concept
 Selling concept
 Marketing concept
 Societal marketing concepts

25
Production Concept

The philosophy that consumers will favour

products that are available and highly affordable
and that management should therefore focus on
improving production and distribution efficiency.

26
Product Concept

 The philosophy that consumers will favour

products that offer the most quality,
performance, and innovative features. Managers
in these organizations focus on making superior
products and improving them over time.
 Product-oriented companies often design their
products with little or no customer input,
trusting that their engineers can design
exceptional products

27
Selling Concept
The idea that consumers will not buy enough of
the organization’s products unless the
organization undertakes a large – scale selling and
promotion effort. The selling concept is practiced
most aggressively with unsought goods, goods
that buyers normally do not think of buying, such
as insurance, and blood donation.

28
Marketing Concept

The marketing management philosophy that holds

that achieving organizational goals depends on
determining the needs and wants of target
markets and delivering the desired satisfactions
more effectively and efficiently than competitors
do.

29
Societal Marketing Concept

The idea that the organization should determine

the needs, wants, and interests of target markets
and deliver the desired satisfactions more
effectively and efficiently than competitors in a
way that maintains or improves the consumer’s
and society’s well – being.

30
Three Considerations Underlying The Societal Marketing

Society
(Human welfare)

Societal
marketing
concept

Consumers Company
(Want satisfaction) (Profits)

31
Thank you!

32