Lecture Two.

Key Marketing Concepts

Dr. Joshua Doe.
UniMAC
Chapter Questions
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some fundamental marketing concepts?
4. How has marketing management changed?
5. What are the tasks necessary for successful marketing
management?
6. How does marketing in the Arab world differ from
marketing in other parts of the world?

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 Chapter Question 1:

The Importance of Marketing Why is marketing

important?

• Marketing is essential for a company to define itself.

• Marketing aims to:
○ Explain what makes the company/product different
○ Understand what customers are looking for

• Define and deliver the company’s value proposition.

• Financial success often depends on marketing ability.

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 Chapter Question 2:

The Scope of Marketing What is the scope of

marketing?

To prepare to be a marketer, you need to understand:

• what marketing is
• how it works
• what is marketed, and
• who does the marketing.

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 Chapter Question 2:
What is the scope of
marketing?
What is Marketing?

Marketing is the process of planning and executing

the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges that
satisfy individual and organizational goals.

• Marketing is about identifying and meeting human and

social needs.
• A short definition: “meeting needs profitably.”

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 Chapter Question 2:
What is the scope of
marketing?

What is Marketing Management?

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.

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 Chapter Question 2:
What is the scope of
marketing?
What is Marketed?

• Goods • Places and properties

• Services • Organizations
• Events and experiences • Information
• Persons • Ideas

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 Chapter Question 2:
What is the scope of
marketing?
Who Markets?

Marketers and prospects

• Marketers are responsible for demand management
• Eight demand states are possible
1. Negative demand.
2. Nonexistent demand.
3. Latent demand.
4. Declining demand.
5. Irregular demand.
6. Full demand.
7. Overfull demand.
8. Unwholesome demand.

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 Chapter Question 2:
What is the scope of
marketing?

Definition of a market?

• Traditional : physical place

• Economists : buyers and sellers
• Marketers : Group of customers Industry/Market

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 Chapter Question 2:
What is the scope of
marketing?

Fig. 1.1: Structure of Flows in a Modern Exchange Economy

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 Chapter Question 2:
What is the scope of
marketing?

Fig. 1.2: A Simple Marketing System

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 Chapter Question 2:
What is the scope of
marketing?

Key Customer Markets

• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets

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 Chapter Question 3:

Core Marketing Concepts What are some

fundamental marketing
concepts?

To understand the marketing function, we need to

understand some core concepts…

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 Chapter Question 3:

Core Marketing Concepts What are some

fundamental marketing
concepts?

Needs, Wants and Demands

• Needs are the basic human requirements.
• Wants are shaped by our society.
• Demands are wants for specific products backed by the ability to
pay.
Five types of need:
1. Stated needs (the customer wants an inexpensive car).

2. Real needs (the customer wants a car, the operating cost of which, not initial price,
is low).

3. Unstated needs (the customer expects good service from the dealer).

4. Delight needs (the customer would like the dealer to include an onboard navigation
system).

5. Secret needs (the customer wants friends to see him as a savvy consumer).

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 Chapter Question 3:

Core Marketing Concepts What are some

fundamental marketing
concepts?

Target Markets, Positioning, and Segmentation

Marketers:
• Divide the market into segments
• Target the segments presenting the greatest opportunity
• Position their products in the minds of target buyers as delivering
key benefits

Carrefour stores are designed to appeal to

shoppers looking for a rich shopping
experience at affordable prices.

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 Chapter Question 3:

Further Core Marketing Concepts What are some

fundamental marketing
concepts?

• Offerings and brands

• Value and satisfaction
• Marketing channels
• Supply chain
• Competition
• Marketing environment
• Marketing planning

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 Chapter Question 4:

The New Marketing Realities How has marketing

management changed?

Major societal forces

• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competition
• Industry convergence
• Consumer resistance
• Retail transformation
• Disintermediation

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 Chapter Question 4:

The New Marketing Realities How has marketing

management changed?

New Consumer Capabilities

• A substantial increase in buying power
• A greater variety of available goods and services
• A great amount of information about practically anything
• Greater ease of interacting, placing and receiving orders
• An ability to compare notes on products and services
• An amplified voice to influence public opinion

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 Chapter Question 4:

The New Marketing Realities How has marketing

management changed?

New Company Capabilities

• Internet
• Marketing research
• Internal communication
• External communication
• Personalization of messages
• Rewards and promotions
• Mobile marketing
• Personalization of products
• Savings from using the internet
• Online training products More companies can produce
individually differentiated goods

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace

• The Production Concept

• The Product Concept
• The Selling Concept
• The Marketing Concept

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace

• The Holistic Marketing Concept

recognizes that ‘everything matters’ in marketing,
and that a broad, integrated perspective is often necessary.

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace

• The Holistic Marketing Concept

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace

• Relationship Marketing
building mutually satisfying long-term relationships
with key parties, in order to earn and retain their business.

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace

• Integrated Marketing

Four Ps SIVA
• Product • Solution: how can I solve my problem?

• Price • Information: where can I learn more about

it?
• Place • Value: what is my total sacrifice to get this
• Promotion solution?

• Access: where can I find it?

These represent the
seller’s view of Customer questions, corresponding to
marketing tools. the 4Ps

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace
• Integrated Marketing

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace

• Internal Marketing
ensuring that everyone in the organization embraces
appropriate marketing principles, especially senior
management

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 Chapter Question 4:

Company Orientation Toward How has marketing

management changed?
the Marketplace

• Performance Marketing

Financial Accountability
Social Responsibility Marketing
• Social Initiatives
• Corporate social marketing
• Cause marketing
• Corporate philanthropy
• Corporate community involvement
• Socially responsible business practices

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 Chapter Question 5:

Marketing Management Tasks What are the tasks

necessary for successful
marketing management?

• Developing market strategies and plans

• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth

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 Chapter Question 5:
What are the tasks
necessary for successful
Functions of CMOs marketing management?

• Strengthening the brands

• Measuring marketing effectiveness
• Driving new product development based on customer needs
• Gathering meaningful customer insights
• Utilizing new marketing technology

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