Professional Documents
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CH 1 MR-1
CH 1 MR-1
Va l l ey U
R i ft
August , 2023
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Chapter One
Intro d uc ti o n
a n a ge m e nt
Ma rke ti ng M
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Issues to Address
• Overviews of Marketing
• Marketing Philosophies
• Marketing Environment
• Marketing Strategies
• Relationship Marketing
• Marketing Mix
• Managing Sales Force
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Introduction
• Competing in today’s economy means finding ways to break
out of commodity status to meet customers’ needs better than
competing firms.
• All organizations—both for-profit and non-profit— require
effective planning and a sound marketing strategy to do this
effectively.
• Without these efforts, organizations would not be able to satisfy
customers or meet the needs of other stakeholders.
• For example, having an effective marketing strategy allows
Apple to develop popular products, such as the iPhone, iPod,
and its MacBook line of notebook computers.
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Continued...
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What Is Marketing?
For a managerial definition, marketing has often been described as "the art of
selling products," but people are surprised when they hear that the most
important part of marketing is not selling! Selling is only the tip of the marketing
iceberg.
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Continued...
The aim of marketing is to know and understand the customer so well that
the product or service fits him and sells itself.
• Ideally, marketing should result in a customer who is ready to buy. All that
should be needed then is to make the product or service available.
• When Sony designed its Play Station, when Gillette launched its Mach III
razor, and when Toyota introduced its Lexus automobile, these
manufacturers were swamped with orders because they had designed the
"right" product based on careful marketing homework.
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Core Marketing Concepts
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B. Product
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Cont’d
• Customer satisfaction: is the extent to which the
products perceived performance matches a buyers
expectation.
– If the products performance is less than consumers
expectation, it is dissatisfaction.
– If the product performance is higher than
customers expectation, it is over satisfaction or
delight.
– If the products performance is equal to consumers
expectation, it is satisfaction.
• It is closely related with quality
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Quality
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Cont’d
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Transaction
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information
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Summary of core concepts of Marketing
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Who Markets?
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Cont’d...
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Cont’d…
6. Full demand – when the amount of demand and
the amount the firm can handle is equivalent.
Example:
The marketing task is maintenance marketing,
and is designed to maintain the current level of
demand against changing consumer preferences.
maintains quality, and
continually measures satisfaction
Product improvement
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Cont…
7. Overfull demand- it is a state in which
demand is higher than the company can or
wants to handle.
The marketing task is called de-marketing and
it involves finding ways to reduce the demand
temporarily:
Raising prices and
Reducing promotion and
Reducing services.
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Cont’d…
8. Unwholesome demand- the demand for unhealthy or
dangerous product.
The corresponding marketing task is known as
counter marketing it is to get people give up usage of
such product.
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Marketing management philosophies
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cont’d…
2.The product concept
• It assume that consumers will prefer those products that
offer the most quality, performance & features.
• Here companies often design their product with little or no
customer input; this leads to marketing myopia.
Marketing myopia is a term coined by Theodore Levitt (1975)
to describe firms that define themselves in terms of a
product rather than in terms of the need that the product
satisfies.
e.g. Rail transportation
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Cont…
3. The Selling concept
• Holds that consumers will not buy enough of
the organization's products unless it undertakes
a large-scale selling and promotion effort.
• Under this philosophy, marketing managers
assume that consumers purchase products if
the organization undertakes an aggressive
selling and promotion effort.
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Cont’d....
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Cont…
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Difference b/n selling and marketing concepts
Let’s make 1000 units Let’s find out how many they want
Let’s charge 2 birr each Let’s find out how much they will pay.
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Cont’d
.
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5. Social Marketing Concept
• It is the recent concept compared to the others.
• Focuses on determining the needs and wants of target markets
and delivering superior value than the competitors in a way
that maintains or improves the consumer's and the society's well-
being.
• This concept suggests marketers to balance three
considerations in setting their marketing policy.
• These considerations are;
Company Profit
Customers wants / needs
Society’s interest (long term)
• This concept calls up on marketers to build social and ethical
consideration in to their marketing practice.
• Society’s well-being.
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Three considerations underlying the societal marketing concept
. Society
Human welfare
Societal marketing
concept
Consumer Company
(want satisfaction) (profit)
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E E ND !
TH
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