Defining marketing

Marketing ManagementMOHAMED HASHEM

Chapter 1

Defining Marketing

for the Arab World

Copyright © 2012 Pearson Education 1-3

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?

The Importance of Marketing

• 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.

Chapter Question 1:

Why is marketing important?


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.

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.”

Chapter Question 2:



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.

Chapter Question 2:



What is Marketed?

• Goods

• Services

• Events and experiences

• Persons

• Places and properties

• Organizations

• Information

• Ideas

Chapter Question 2:



Chapter Question 2:


Fig. 1.2: A Simple Marketing System


Key Customer Markets

• Consumer markets

• Business markets

• Global markets

• Nonprofit/Government markets

Chapter Question 2:


Core Marketing ConceptsChapter Question 3:

What are some fundamental marketing

concepts?

To understand the marketing function, we need to understand some core concepts…




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).




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.

Further Core Marketing ConceptsChapter Question 3:


concepts?

• Offerings and brands

• Value and satisfaction

• Marketing channels

• Supply chain

• Competition

• Marketing environment

• Marketing planning


The New Marketing Realities

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

Chapter Question 4:

How has marketing management changed?


The New Marketing Realities

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

Chapter Question 4:



More companies can produce individually differentiated goods

Company Orientation Towardthe Marketplace

• The Production Concept

• The Product Concept

• The Selling Concept

• The Marketing Concept

Chapter Question 4:




• Integrated Marketing

Chapter Question 4:


Four Ps

• Product

• Price

• Place

• Promotion

These represent the seller’s view of marketing tools.

SIVA

• Solution: how can I solve my problem?

• Information: where can I learn more about it?

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

• Access: where can I find it?

Customer questions, corresponding to the 4Ps



• Integrated Marketing

Chapter Question 4:




• Internal Marketing

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

Chapter Question 4:



Marketing Management TasksChapter Question 5:

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


Marketing Management TasksChapter Question 5:



Marketing Memo: Marketers’ Frequently Asked Questions


Functions of CMOs

• Strengthening the brands

• Measuring marketing effectiveness

• Driving new product development based on customer needs

• Gathering meaningful customer insights

• Utilizing new marketing technology

Chapter Question 5:


A Word About Marketing inthe Arab World

Chapter Question 6:

How does marketing in the Arab world differ from marketing elsewhere?

The Arab world is a huge potential market for internationalcompanies.

However, companies have to keep several factors in mind when targeting the Arab audience.

Values, religion, language, reading from right to left, and politics are among a few key issues to take into consideration.


Credits

• Slide 1 Alamy Images: B. O’Kane

• Slide 7: Alamy Images

• Slide 7 SuperStock: OleksiyMaksymenko / age

fotostock

• Slide 13 Box 1.1 on page 12 from “The Fall and Rise of the CMO”, strategy+business, (Gail McGovern and John A.

Quelch, 2004), Winter 2004, published by Booz & Company Inc. copyright © 2004. All rights reserved. www.strategy-

business.com

• Slide 16 Corbis: Daniel Karmann / dpa

• Slide 20 Copyright (c) H. J. Heinz Company:

Defining marketing

Marketing

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