Good Afternoon!!!!

wel-come to the world

of
MARKETING MANAGEMENT 1
Course instructor: ABER
A D.

ABERA DEMSIS(PhD)

 BA in MTPA Business Management -AAU

 MBA – Business Administration-AAU

 DBL- Doctor of Business Leadership: SAU

 assistant professorof management

 Associate consultant and Trainer @EMI & aaccsa, Addis Chamber Training

Institute(ACTI), AA Mgt Institue(AMI),

COURSE DESCRIPTION
 In this comprehensive and practical introduction to
marketing management,
 students improve their ability to make effective marketing
decisions,
 including assessing marketing opportunities and
developing marketing strategies and implementation plans
in light of the marketing mix elements namely the product,
price, promotion and distribution.
 The marketing mix elements are to be treated in relation to
marketing management of the broad categories of products
such as industrial, consumer, and agricultural products and
services.
1–3 ABERA D.
 Course Objectives
By the end of this course students will be able to
 Assess market opportunities by analysing customers,
competitors, collaborators, context, and the strengths and
weaknesses of a company.
 Develop effective marketing strategies to achieve
organizational objectives
 Develop a process for product, service, and idea
development.
 Evaluate positioning strategies based on market
segmentation and target marketing.
 Develop a marketing plan.
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Contents of the course
 Chapter 1. Introduction to Marketing
Management
 Chapter 2. Marketing Environment
 Chapter 3. The Marketing Process
 Chapter 4. Buying Behaviour
 Chapter 5. Segmentation, Targeting and
Positioning
 Chapter 6. Marketing Mix

1–5 ABERA D.
 Assessment Methods
 Individual Assignment ( 20 Marks)
 Group Assignment (30 Marks)
 Final Exam (50%)

Teaching/Learning Methods
 Lecture
 Reading and writing assignment
 Group discussion
 Case study review
 Seminar presentation
 

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 REFERENCES
 Kotler, P & Keller, K (2016) Marketing Management 15thed.,
Pearson/,Boston

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Chapter One
NATURE and SCOPE
OF
MARKETING & MARKETING
MANAGEMENT

•8 •08/15/22
 Discussion Questions
What is Marketing?
Some people argue that
 marketing mean all about distribution (i.e. it is a
matter of the actual flow of good /service);
where as in the other extreme others believe
that
 marketingactivity is start before the creation of a
product & don’t end until customers are satisfied.

what do you say on this issue? Why? 08/15/22

Overview of Marketing
 Marketing is a process/an act of
 Identifying, serving and fulfilling unfulfilled demands
of customers
 Is all about producing, pricing, promoting and placing
the right product to the right market and sale it at
desired profit/price
 Refers to conducting business activities, which involves
exchanging some thing of value i.e. birr for
product/service either with in or out side a given nation
 Is an act of either producing a product/service or
purchase and resale it at a desired profit/price.

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 Definition of Marketing
Modern Definition
 In broader terms marketing is defined as a
system of business activities designed to plan,
price, distribute and promote want satisfying
products (goods and services) to present and
potential customers.

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 Definition of Marketing
Modern Definition
In marketing, there are combinations of
activities, which start before the
creation of a product and don’t end
until customers are satisfied.
Therefore, product planning, pricing,
distribution and promotion are the main
activities performed in marketing.
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The Core Concepts of Marketing

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 Discussion Question
Customer Value & Satisfaction
Think about the last time you visited one
of the commercial banks in Ethiopian.
Evaluate your experience using the
personal value equation.
The Core Concepts of Marketing
Customer Value and Satisfaction
Satisfaction: is a person’s feeling of pleasure or
disappointment resulting from comparing product
perceived performance and expectation
 Customer satisfaction– reflects person’s comparative
judgments resulting from a product’s perceived
performance (or outcomes) in relation to his/her
expectations.
 It is the key influence on future buying behavior
 Customers expectations must be set at the right level of
expectations, neither too low or too high.
 Customer Value & Satisfaction are key building blocks for
developing & managing customer relationships.

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The Core Concepts of Marketing
Customer Value and Satisfaction
Satisfaction = f (perceived performance and
expectation).
A. if P > E = delighted
B. if P = E = satisfied
C. if P < E = dissatisfied
 Satisfied customer repurchases, spreads word of mouth and
maintains long term relationship with the company.
 Dissatisfied consumer switches to competitors brands and
disparages the product.
 The Core Concepts of Marketing
 Market
 Economists describes a market as a collection of
buyers and sellers who transact over a particular
product or product class.
 Marketers define a market as:
 Market is the set of actual and potential buyers of a
product.
 These buyers share a particular need and want that can be
satisfied through exchange relationship.

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The Core Concepts of Marketing
Market
There are five types of customer markets:
 Consumer markets
 Business/industrial markets
 Reseller markets
 Government markets
 International markets
Designing a Customer Driven Marketing
Strategy
 Marketing Management is the process of planning,
organizing, directing and controlling the activities of
product planning, pricing, promotion and distribution
of products to create exchange that satisfy individuals
and organizational needs.
 Marketing Management: 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.

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 Designing a Customer Driven Marketing
Strategy
Marketing management involves managing demand, which
in turn involves managing customer relationships.
Negative demand: a type of demand in which a major part of
the market dislike the product and may even pay a price to
avoid it.
 E.g. People prefer tablet than surgery
 Reason: Poor income, wrong perceptions, attitudes,
 Marketing task: conversational marketing. Analyze why
the market dislike the product.
 Free trial, conducting reinforcement advertising, low sales price,
change perception

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Designing a Customer Driven Marketing
Strategy
No demand: this is a demand situation when the target
customers may be unaware or uninterested in the product.
 E.g. farmers vs. new farming methods
 Large customers are not aware as to the existence of a product
Marketing task: find ways to connect the benefits of the
product with people’s natural needs and interests.

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Designing a Customer Driven Marketing
Strategy
 Latent demand: Customers may share a strong need
that can not be satisfied by any existing product.
e.g. better school and safer neighborhoods.
Marketing task: measure the size of the market and
develop goods and services to satisfy the demand.

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Designing a Customer Driven Marketing
Strategy
Declining demand: lower demand in the market
 Every organization faces declining demand for one or more of
its products.
 Marketing task: creative remarketing.
 Analyze causes of declining.
Irregular demand: varies on a seasonal, daily, even hourly
basis.
 Marketing task: synchromarketing.
 Find ways to alter the pattern of demand through flexible pricing,
promotion and other incentives.

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Designing a Customer Driven Marketing
Strategy
 Full demand: a satisfying level of demand
 It is a demand situation where the actual demand is fairly equal
or at least proportional to what the firm can assume with its
existing resources.
 Marketing task: maintain the current level of demand in
the face of changing consumer preferences and increasing
competition.

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Designing a Customer Driven Marketing
Strategy
Overfull demand: more demand than can be handled or
delivered
 A demand level that is higher than they can or want to handle.
Marketing task: de-marketing.
 Finding ways to reduce demand temporarily or permanently.
 It consists the market that are less profitable.

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Designing a Customer Driven Marketing
Strategy
Unwholesome demand: demand for unhealthy or
dangerous products.
 Unwholesome product will attract organized efforts to
discourage their consumptions.
 Marketing task: get people who like something to give it
up, obey the rule of some established agencies, using fear
message and reduce availability.

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 Company Philosophy towards
Marketing Management
 There are five alternative concepts
under which organizations design and
carry out their marketing strategies:
 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Societal Marketing Concepts.
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Company Philosophy towards Marketing
Management
 Marketing Concept
 Customer focus and value are the paths to sales and
profits
 Customer-driven and customer-driving
 Dominant since 1990s

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Company Philosophy towards Marketing
Management
 Marketing Concept: Pillars under which marketing
concept operates
A. Target market: Companies must define their target market carefully
and prepare a tailored marketing program.
B. Customer Needs: The key to this philosophy is to fully understand
their customers real needs and meet them better than the competitor.
C. Integrated Marketing: It means that all the different functions of
the business must be tightly integrated to serve the interest of the
customer as every function has a bearing on it.
D. Profit making by satisfying customers - The ultimate purpose of
the concept is to help organizations achieve their goals.

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Company Philosophy towards Marketing
Management
 Market Versus Internal Driven Businesses
 Customer concern throughout the business
 Know how products and services are being evaluated against
competition
 Base segmentation analyses on customer differences
 Consider marketing research expenditure as investment
 Understand competitive objectives and strategies and
anticipate competitive actions.
 Employees who take risks and are innovative are rewarded.
 Fast to respond to latent markets, innovate, manufacture and
distribute their products and services.

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Company Philosophy towards Marketing
Management
5. Societal Marketing Concept
 Holds that organization should determine the needs, wants
and interest of target markets.
 Then, it should deliver superior value to customers in a way
that maintains & improves the customers and the society’s well
being.
 Consider consumers’ wants, the company’s requirements,
consumers’ long-run interests, and society’s long-run
interests.

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Company Philosophy towards Marketing
Management
 Societal Marketing Concept
 According to the societal marketing concept, the pure
marketing concept overlooks possible conflicts between
short-run consumer wants and long-run society welfare.
 The societal marketing concept calls on marketers to
balance three considerations in setting their marketing
policies.
 These are: Company profit; Consumer want
satisfaction; and Societies interest ( human welfare)

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Societal Marketing Concept

Society
(human welfare)

societal
marketing concept

Consumers Company
(want satisfaction) (profits)
Scope of Marketing

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Any question?

Marketing
Environment
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