1. MARKETING MANAGEMENTMARKETING MANAGEMENT
Lecture Notes for Business Introduction
By Fahmy Radhi

2. Marketing ConceptsMarketing Concepts
Marketing is the process of planning and executing
the conception, pricing, promotion, and
distribution of idea, goods, and service to create
exchanges that satisfy individual and
organizational objective
Marketing Mix is the combination of products,
price, promotion, and distribution, used to satisfy
the needs of the target market

3. Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services
Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services
Price
List price
Discounts
Allowances
Credit Terms
Price
List price
Discounts
Allowances
Credit Terms
Promotion
Advertising
Personal Selling
Sales Promotion
Public Relations
Promotion
Advertising
Personal Selling
Sales Promotion
Public Relations
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Target
Costumers
Intended
Positioning
Target
Costumers
Intended
Positioning
Marketing Mix

4. Marketing ActivitiesMarketing Activities
Product:
 Develop new products
 Modify existing
products
 Test-market products
 Select brand name
 Package product
Pricing:
Establish price
objectives
Conduct cost
analysis
Analyze
competitor’s price
Set actual prices

5. Marketing ActivitiesMarketing Activities
Promotion:
 Determine types of
promotion
 Design the advertising
massage
 Selecting advertising
media
 Schedule the
advertisements
Distribution:
 Select wholesalers and
retailers
 Establish procedures
for handling and
moving products
 Find the best locations
for plants, warehouses
and retail outlets

6. MarketMarket
Market is people with the authority,
financial ability, and willingness to
purchase a product
Types of Market:
Consumer market - for personal use
Industrial market - to use in the production
or resell

7. Target MarketingTarget Marketing
Target market - a group of people that has similar
wants and needs which a firm directs its marketing
activities
 Undifferentiated approach – one marketing mix
for a product to the total market
 Market Segmentation approach – the division of
the total market into segment with marketing mix
directed to different segment

8. Market SegmentationMarket Segmentation
Market segment – division of heterogonous market
into homogonous market based on different
characteristics
Segmentation Based:
 Geographic bases - city, region
 Demographic bases - sex, race, marital
 Psychographics - a person’s attitude, lifestyle
 Product-related - brand loyalty

9. PRODUCTPRODUCT
Product - a good, service or idea, including all
attributes provided in an exchange between buyer
and seller
Product Classification:
 Consumer goods – products purchased by
consumers for personal use
 Industrial goods – product purchased by
companies to produce other products

10. Classifying GoodsClassifying Goods
Consumer Goods:
 Convenience good –
inexpensive and
regularly consumed
 Shopping goods –
moderately expensive
and infrequently
 Specialty goods –
expensive and rarely
Industrial goods:
 Raw material
 Components parts
 Equipment and
installations
 Services

11. Product Line and ProductProduct Line and Product
MixMix
Product Line - a group of related products
that are considered a unit because of
marketing, technical or use similarity
 Product Mix - the total group of product
offer sale, or all of the firm’s product lines
Product Differentiation – creation of
product or product image that differs from
existing product to attract consumers

12. Product AttributesProduct Attributes
Brand - a name, sign, symbol, design, or
combination a company’s product to
distinguish it product from others
Packaging - the development of a container
and graphic design for a product
 Labeling - the display of important
information on a product package

13. PRICINGPRICING
Price - the value that buyer exchange for a
product in the marketing transaction
Pricing Objective:
– Market share
– Profit
– Return on Investment
– Status Quo

14. Pricing Decision and MethodsPricing Decision and Methods
Factors in Pricing Decisions:
– Price and non-price competition
– Supply and demand
– Consumer perception of price
Pricing Methods:
– Cost-Oriented Pricing - Mark-up Pricing
– Demand-Oriented Pricing - Break event point
– Competition Oriented Pricing

15. Pricing StrategiesPricing Strategies
 Pioneer pricing – leadership pricing in the market
 Price skimming – setting an initial high price to
cover new product cost and generate a profit
 Penetration pricing – setting an initial low price to
establish a new product in the market
 Psychological Pricing – setting an initial high
price to respond irrationally consumers
 Price Discounting – Price reduction offered as an
incentive to purchase

16. PROMOTIONPROMOTION
Promotion - the communication of favorable,
persuasive information about a firm or product in
order to influential buyers
Promotional Objectives:
 Informing
 Increasing sales
 Stabilizing sales
 Positioning the product
 Building a public image

17. The Promotion MixThe Promotion Mix
Promotion Mix - the combination of advertising,
personal selling, sales promotion, publicity used to
promote a specific product

18. AdvertisingAdvertising
 Non-personal communication to a target audience
through a mass medium, such as TV, Radio,
newspapers, or magazines, and outdoor display
 Types of Advertising:
– Primary-Demand Advertising: for all products
– Selective Brand Advertising: for specific products
– Institutional Advertising: create public image

19. Advertising PromotionAdvertising Promotion
Advertising Media – variety of
communication devices for carrying
massage to potential customers
Direct Mail – delivery massage directly to
customer places
Internet Advertising – put the massage into
website or mailed directly to customer
email

20. Personal SellingPersonal Selling
 Person-to-person communication with one or
more prospective customers in order to make sale
 Telemarketing – using telephone to perform the
personal selling process
 Types of Salespeople:
– Order Getter
– Order taker
– Support salespeople

21. Sales PromotionSales Promotion
 An activity that offers customers or marketing
intermediaries direct incentives for purchasing a
product
 Type of Sales Promotion:
– Coupon: reduces the price of a product by stated
amount at the time of purchase
– Rebate: an extra discount
– Free Sample
– Contest: consumer compete for prizes
– Trade show

22. Publicity and Public RelationPublicity and Public Relation
Publicity - a non-personal form of
communication transmitted in news story
form and not paid for directly sponsor
Public Relations - a set of communication
activities designed to create and maintain a
favorable public image for firm

23. Special
Events
Special
Events
Written
Materials
Written
Materials
Public
Service
Activities
Public
Service
Activities
SpeechesSpeeches
NewsNews
Audiovisual
Materials
Audiovisual
Materials
Corporate
Identity
Materials
Corporate
Identity
Materials
Web SiteWeb Site
Major Public Relation Tools

24. Promotional Strategy:Promotional Strategy:
Push Strategy: promotion of a product to
wholesaler or retailers in the marketing
channel, who in turn promote the product to
consumers
Pull Strategy: promotion of a product
direct to consumers to stimulate strong
consumer demands

25. DISTRIBUTIONDISTRIBUTION
Channel of Distribution - a group of
interrelated organization that directs the
flow of products from producers to ultimate
consumers
Marketing Intermediary - an individual or
organization in marketing channel that
provides a link among producers, other
channel members, and final consumer

26. Type of Marketing Channels:Type of Marketing Channels:
Consumer Products:
 Producer-consumer: plant and flower, services
 Producer-retailer-consumer: automobile, furniture
 Producer-wholesaler-retailer-consumer: e.g.
convenience goods
 Producer-Agent/broker-wholesaler-retailer-
consumer: e.g. consumer products

27. Type of Marketing ChannelsType of Marketing Channels
Industrial Products:
producer-industrial user: heavy
equipment and machinery
producer-wholesaler-industrial
user: tools and automotive parts

29. Distribution OveragesDistribution Overages
Intensity Distribution - market coverage in which
all available outlets are used for distributing a
product
Selective Distribution - Market coverage in which
only some of the available outlets are used for
distributing a product
Exclusive Distribution - Market coverage in which
one outlet is used in specific geographic area for
distributing a product

30. WholesalingWholesaling
The marketing activities of intermediates who sell to retailer,
industrial users, and other wholesalers.
Types of Wholesalers:
 Merchant Wholesaler: takes ownership of goods and the
risks associated with ownership
 Sales Branch: a manufacture-owned wholesaler that take
title to products, risks, and provides service
 Agent: a wholesaler hired by a buyer or seller on a
permanent basis and paid commissions
 Broker: a wholesaler who bring together buyers and seller
on temporary basis

31. RetailingRetailing
The marketing activities involved in selling products
to final consumers for personal or household use
 Department Store: a large retailer organized into
separate departments and offering a full line of
services and wide product mix
 Supermarket: a large self-service retailer that stock
a wide variety of groceries and a limited
assortment of nonfood products

32. RetailingRetailing
 Catalog Showroom: a form of warehouse show-
room where customers select products from
catalogs sent to customers’ homes or available in
the store
 Direct Marketing: non-store retailing that uses
non-personal media to introduce products to
consumers who then purchase the product by mail,
telephone, computer, or TV

33. Physical DistributionPhysical Distribution
Those activities that involve the movement of
products through marketing channels from
manufacturer to customer, including:
 Transportation: shipping goods to customers by rail, air,
truck, water, and pipeline
 Warehousing: the receiving, storing, and shipping
activities involved in the physical distribution of goods
 Order Processing: the receipt and preparation of an order
for shipment
 Material Handling: the physical handling of products
during transportation and warehousing

34. Basic Channels of DistributionBasic Channels of Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users

35. Typical Distribution of DrugsTypical Distribution of Drugs
Manufacturers
Marketing Agents
Retailers/Wholesalers/Distributors
Private
GPs/specialists
Group
Procurement
Office
Retail
Pharmacy
Public Hospitals / Institutions