1. Advanced Courses
Lecture 2
By
Eng. Yasser Fouad Abd El Aziz
MBA, BSc, CEng.
Sales & Marketing Director
IBE Technologies
Tel.: (+202) 3372267 – Mobiles: (+2012) 2462228
Fax: (+202) 3371987
E-mail: yasser_fouad@ibetech.com
www.ibetech.com
www.biomed-bahgat.com.eg
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 1

2. Introduction to Marketing
“The future isn’t ahead of us.
It has already happened.”
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 1

3. Objectives
 Understand the new economy.
 Learn the tasks of marketing.
 Become familiar with the major
concepts and tools of marketing.
 Understand the orientations
exhibited by companies.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 1

4. Objectives
 Learn how companies and
marketers are responding to
new challenges.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 1

5. The New Economy
 Consumer benefits from the digital
revolution include:
– Increased buying power.
– Greater variety of goods and services.
– Increased information.
– Enhanced shopping convenience.
– Greater opportunities to compare product
information with others.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 1

6. The New Economy
 Firm benefits from the digital
revolution include:
– New promotional medium.
– Access to richer research data.
– Enhanced employee and customer
communication.
– Ability to customize promotions.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 1

7. Marketing Tasks
 Marketing practices may pass
through three stages:
– Entrepreneurial marketing
– Formulated marketing
– Intrepreneurial marketing
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 1

8. What Can Be Marketed?
 Goods  Places
 Services  Properties
 Experiences  Organizations
 Events  Information
 Persons  Ideas
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 1

9. Marketing Defined
 Kotler’s social definition:
“Marketing is a societal process by
which individuals and groups
obtain what they need and want
through creating, offering, and
freely exchanging products and
services of value with others.”
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 1

10. Marketing Defined
 The AMA managerial definition:
“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 objectives.”
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 1

11. Marketing =Demand Management
 Negative demand  Full demand
 No demand  Overfull Demand
 Latent demand  Unwholesome
 Declining demand demand
 Irregular demand
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 1

12. 4 Types of Markets
 Consumer Markets
 Business Markets
 Global Markets
 Nonprofit and Governmental
Markets
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 1

13. Core Marketing Concepts
 Target markets and  Exchange and
market segmentation transactions
 Marketplace, market-  Relationship and
space, metamarkets networks
 Marketers & prospects  Marketing channels
 Needs, wants, demands  Supply chain
 Product offering and  Competition
brand  Marketing environment
 Value and satisfaction  Marketing program
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 1

14. Core Marketing Concepts
 Target markets & segmentation
– Differences in needs, behavior,
demographics or psychographics
are used to identify segments.
– The segment served by the firm is
called the target market.
– The market offering is customized
to the needs of the target market.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 1

15. Simple Marketing System
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 1

16. Modern Marketing System
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 1

17. Core Marketing Concepts
 Shopping can take place in a:
– Marketplace (physical entity, Lowe’s)
– Marketspace (virtual entity, Amazon)
 Metamarkets refer to complementary
goods and services that are related
in the minds of consumers.
 Marketers seek responses from
prospects.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 1

18. Core Marketing Concepts
 Needs describe basic human
requirements such as food, air, water,
clothing, shelter, recreation, education,
and entertainment.
 Needs become wants when they are
directed to specific objects that might
satisfy the need. (Fast food)
 Demands are wants for specific
products backed by an ability to pay.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 1

19. Core Marketing Concepts
 A Product is any offering that can satisfy a
need or want, while a brand is a specific
offering from a known source.
 When offerings deliver value and
satisfaction to the buyer, they are
successful.
 Value = Benefits/Costs
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 1

20. Enhancing Value
 Marketers can enhance the value of
an offering to the customer by:
– Raising benefits.
– Reducing costs.
– Raising benefits while lowering costs.
– Raising benefits by more than the
increase in costs.
– Lowering benefits by less than the
reduction in costs.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 1

21. Core Marketing Concepts
 Exchange involves obtaining a
desired product from someone by
offering something in return.
 Transaction involves at least two
things of value, agreed-upon
conditions, a time of agreement,
and a place of agreement.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 1

22. Core Marketing Concepts
 Relationship marketing aims to
build long-term mutually satisfying
relations with key parties, which
ultimately results in marketing
network between the company and
its supporting stakeholders.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 1

23. Core Marketing Concepts
Marketing  Deliver messages to
Channels and receive
messages from
target buyers.
 Communication
channels  Includes traditional
media, non-verbal
 Distribution
communication, and
channels store atmospherics.
 Service channels
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 1

24. Core Marketing Concepts
Marketing  Display or deliver
Channels the physical
products or
 Communication services to the
channels buyer / user.
 Distribution
channels
 Service channels
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 24 in Chapter 1

25. Core Marketing Concepts
Marketing  Carry out
Channels transactions with
potential buyers
 Communication by facilitating the
channels transaction.
 Distribution
channels
 Selling channels
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 25 in Chapter 1

26. Core Marketing Concepts
 A supply chain stretches from raw
materials to components to final
products that are carried to final
buyers.
 Each company captures only a
certain percentage of the total value
generated by the supply chain.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 26 in Chapter 1

27. Core Marketing Concepts
 Four levels of competition can be
distinguished by the level of product
substitutability:
– Brand competition
– Industry competition
– Form competition
– Generic competition
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 27 in Chapter 1

28. Core Marketing Concepts
 The following forces in the broad
environment have a major impact on
the task environment:
– Demographics
– Economics
– Natural environment
– Technological environment
– Political-legal environment
– Social-cultural environment
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 28 in Chapter 1

29. Core Marketing Concepts
 The marketing program is developed
to achieve the company’s objectives.
Marketing mix decisions include:
 The 4 Ps
– Product: provides customer solution.
– Price: represents the customer’s cost.
– Place: customer convenience is key.
– Promotion: communicates with customer.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 29 in Chapter 1

30. Core Marketing Concepts
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 30 in Chapter 1

31. Core Marketing Concepts
 4 Ps  4 Cs
- Product - Customer solution
- Price - Cost
- Place - Convenience
- Promotion - Communication
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 31 in Chapter 1

32. Company Orientations
 The orientation or philosophy of the
firm typically guides marketing efforts.
Several competing orientations exist:
– Production concept
– Product concept
– Selling concept
– Marketing concept
– Societal marketing concept
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 32 in Chapter 1

33. Company Orientations
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 33 in Chapter 1

34. The Marketing Concept
 Achieving organizational goals
requires that company be more
effective than competitors in creating,
delivering, and communicating
customer value.
 Four pillars of the marketing concept:
– Target market
– Customer needs
– Integrated marketing
– Profitability
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 34 in Chapter 1

35. The Marketing Concept
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 35 in Chapter 1

36. Marketing Role
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 36 in Chapter 1

37. Changes in the Marketplace
 Globalization, technological
advances, and deregulation have
created many challenges:
– Customers
– Brand manufacturers
– Store-based retailers
 Both companies and marketers have
been forced to respond and adjust.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 37 in Chapter 1

38. Company vs. Marketer
Responses
Company Marketer
- Reengineering - Relationship marketing
- Outsourcing - Customer lifetime value
- E-commerce - Customer share
- Benchmarking - Target marketing
- Alliances - Individualization
- Partner-suppliers - Customer database
- Market-centered - Integrated communications
- Global & Local - Channels as partners
- Decentralized - Every employee a marketer
- Model base decision making
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 38 in Chapter 1