Chapter-1 Marketing Management by Kotler

2. Marketing Management
Arab World Edition
Kotler, Keller, Hassan, Baalbaki and Shamma
Chapter 1
Defining Marketing
for the Arab World

3. Copyright © 2012 Pearson Education 1-2
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?

4. 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?
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5. 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?
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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 the scope of
marketing?

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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 the scope of
marketing?

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What is Marketed?
• Goods
• Services
• Events and experiences
• Persons
• Places and properties
• Organizations
• Information
• Ideas
Chapter Question 2:
What is the scope of
marketing?

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

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Definition of a market?
• Traditional : physical place
• Economists : buyers and sellers
• Marketers : Group of customers Industry/Market
Chapter Question 2:
What is the scope of
marketing?

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Fig. 1.1: Structure of Flows in a Modern Exchange Economy
Chapter Question 2:
What is the scope of
marketing?

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Chapter Question 2:
What is the scope of
marketing?
Fig. 1.2: A Simple Marketing System

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Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets
Chapter Question 2:
What is the scope of
marketing?

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Marketing in Practice
Chapter Question 2:
What is the scope of
marketing?
Box 1.1: Improving CMO Success
1. Make the mission and responsibilities clear.
2. Fit the role to the marketing culture and structure.
3. Ensure the CMO is compatible with the CEO.
4. Remember that showpeople don’t succeed.
5. Match the personality with the CMO type.
6. Make line managers marketing heroes.
7. Infiltrate the line organization.
8. Require right-brain and left-brain skills

15. Core Marketing Concepts
Chapter Question 3:
What are some
fundamental marketing
concepts?
To understand the marketing function, we need to
understand some core concepts…
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16. Core Marketing Concepts
Chapter Question 3:
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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17. Core Marketing Concepts
Chapter Question 3:
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
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Carrefour stores are designed to appeal to
shoppers looking for a rich shopping
experience at affordable prices.

18. Further Core Marketing Concepts
Chapter Question 3:
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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19. The New Marketing Realities
Major societal forces
• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competition
• Industry convergence
• Consumer resistance
• Retail transformation
• Disintermediation
Chapter Question 4:
How has marketing
management changed?
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20. 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?
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21. 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:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-20
More companies can produce
individually differentiated goods

22. Company Orientation Toward
the Marketplace
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
Chapter Question 4:
How has marketing
management changed?
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23. Company Orientation Toward
the Marketplace
• The Holistic Marketing Concept
recognizes that ‘everything matters’ in marketing,
and that a broad, integrated perspective is often necessary.
Chapter Question 4:
How has marketing
management changed?
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24. Company Orientation Toward
the Marketplace
• The Holistic Marketing Concept
Chapter Question 4:
How has marketing
management changed?
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25. Company Orientation Toward
the Marketplace
• Relationship Marketing
building mutually satisfying long-term relationships
with key parties, in order to earn and retain their business.
Chapter Question 4:
How has marketing
management changed?
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26. Company Orientation Toward
the Marketplace
• Integrated Marketing
Chapter Question 4:
How has marketing
management changed?
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
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27. Company Orientation Toward
the Marketplace
• Integrated Marketing
Chapter Question 4:
How has marketing
management changed?
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28. Company Orientation Toward
the Marketplace
• Internal Marketing
ensuring that everyone in the organization embraces
appropriate marketing principles, especially senior
management
Chapter Question 4:
How has marketing
management changed?
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29. Company Orientation Toward
the Marketplace
• Performance Marketing
Chapter Question 4:
How has marketing
management changed?
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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30. Marketing Management Tasks
Chapter 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
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31. Marketing Management Tasks
Chapter Question 5:
What are the tasks
necessary for successful
marketing management?
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Marketing Memo: Marketers’ Frequently Asked Questions

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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:
What are the tasks
necessary for successful
marketing management?

33. A Word About Marketing in
the 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 international
companies.
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.
Copyright © 2012 Pearson Education 1-32

34. 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: