Introduction

ProblemtoSolving
marketing
concepts
Ch 1

1
What you’ll learn...
What is
marketing?

Marketing

What does it
involve?
What is the
marketing mix?

2
About
Marketing

3
Marketing in the 21
century

WHY

4
What is marketing?

• Marketing…
– is not ADVERTISING
– is not SELLING
– is not PROMOTION
• “The aim of marketing is to make
selling unnecessary.” Peter Drucker
(1973)

5
What is marketing?
• Businesses need to sell
products if they are to
achieve their
objectives.

• Marketing is about
ensuring that
businesses can sell as
many products as
possible in order to
make profits. 6
What Is Marketing?

Marketing is a process by which

companies create value for customers and
build strong customer relationships to
capture value
from customers in
return
What does it involve?
• Marketing is a very complex concept.
It involves:
• Research
• Product design
• Setting prices
• Making sure the customer knows
about products
• Choosing how and where to sell
products
8
Why is it needed?

• Each year millions of new products are

launched:

Without careful
marketing these
products would
fail

9
 Marketing definition
Q
Marketing is a societal process by which
individuals and groups obtain what they
need and want through creating,
offering, and exchanging products and
value with others.

“Marketing is the science and art of exploring,

creating and delivering value to satisfy the needs
and wants of a target market maintaining loyalty
at a profit.”

Professor Philip Kotler

10
 Needs: States of deprivation ‫فقد‬
Physical—food, clothing, warmth, safety

Social—belonging and affection ‫العاطفة‬ Eat, Dress, Move

Individual—knowledge and self-expression

Wants:
Wants are how people communicate their needs.
A hungry person may want
Cheeseburger, Tuxedo, Car
a hamburger, noodles, or cheese and bread .

Marketer

11
 This Is Demand

Wants Buying Power

“Demand” 12
First Task: Detect Needs

13
Marketing’s first task: discovering consumer needs

Organization’s
marketing focus
Discover consumer needs

Information about needs

Potential consumers: The market

14
What is a Market? Q
Potential consumers make up a
market, which is:
1. People
2. with the Desire and
3. with the Ability to Buy a
specific product.

15
Markets are the set of actual and potential
buyers of a product Q
 Marketing’s Second Task: Satisfying Consumer Needs

Organization’s marketing focus

Concepts
for Satisfy consumer needs
products Find the right combination of:
Discover consumer needs • Product
• Price
• Promotion
• Place

Information about needs Goods, services, ideas

Potential consumers: The market

17
 The Target Market Q
Because the organization obviously can’t
satisfy all consumer needs, it must
concentrate its efforts on certain needs of
a specific group of potential consumers
This is the target market -- one or more
specific groups of potential consumers
toward which an organization directs its
marketing programme
Market segmentation: refers to dividing the markets
into segments of customers
Target marketing: refers to which segments to go
after 18
 Customer Development Q

Suspects
‫يعتقد‬

First-time Repeat
Prospects customers customers Clients Advocates Partners

Disqualified
prospects Inactive or
ex-customers

19
Marketing Management Orientations
Marketing Management Orientations Q

Production concept is the idea that consumers will

favor products that are available or highly
affordable
Product concept is the idea that consumers will favor
products that offer the most quality, performance, and
features. Organization should therefore devote its
energy to making continuous product improvements.
Selling concept is the idea that consumers will not buy
enough of the firm’s products unless it undertakes a
large scale selling and promotion effort
Marketing Management Orientations
Q
Marketing concept is the idea that achieving
organizational goals depends on knowing the
needs and wants of the target markets and
delivering the desired satisfactions better than
competitors do
Societal marketing concept is the idea that a
company should make good marketing decisions
by considering consumers’ wants, the company’s
requirements, consumers’ long-term interests, and
society’s long-run interests
Four different orientations in the
history of business

Production era

Sales era

Marketing concept era

SocietalMarketing era

18601880 190019201940 196019802000

Marketing Management
Orientations Q
 Marketing Vs Sales

Is there a
difference?

25
The Marketing Concept Q

• Organizations must concentrate on

the customer and not the product or
the company
• Organizations should revolve‫ يتمركز‬round
the customer and not the other way
around
• The purpose of a business is to create
and keep a customer
26
The Marketing Concept
Focus on
Customer Wants
and Needs

Integrate Organization’s Achieve Organization’s

Long Term Goals by
Activities to Satisfy Satisfying Customer
Customer Needs and Wants and Needs
Wants
The Selling Concept Q

• Focuses on matching your product or

service features and benefits in a way that
suits the prospect sales
• process is any thing that you do to close
the sale and get signed agreement or
contract
• It is any thing that engages you with the
prospect or customer on a personal level
rather than at a distance

28
 The Major Role of Marketing
and Selling Q

People DO NOT buy products

people buy

29
 Comparing Sales and Market
Orientations
Organization’s Firm’s For Primary Tools to
Focus Business Whom? Profit Goal? Achieve

Inward Selling goods Everybody Maximum Primarily

Sales and services sales promotion
Orientation volume

Outward Satisfying Specific Coordinated

groups Customer use of all
Market wants and satisfaction
needs of people marketing
Orientation activities
Building Customer
Relationships

31
 Relationship Marketing
Relationship marketing is linking the organization
to its individual customers, employees,
suppliers, and other partners for their mutual
long-term benefits.
Mutual long-term benefits between the
organization and its customers require links to
other vital stakeholders-- including suppliers,
employees, and “partners” such as wholesalers
or retailers in a manufacturer’s channel of
distribution.

32
The Changing Nature of Customer
Relationships

Relating with more carefully selected

customers uses selective relationship
management to target fewer, more
profitable customers
Relating more deeply and interactively by
incorporating more interactive two way
relationships through blogs, Websites,
online communities and social networks
assignment ch 1

1. define the Following : meaning of

Marketing , needs , wants buying
power ,market , target market
2. Distinguish between the four
concepts of Marketing Management
Orientations production concept ,sales
concept marketing ,societal