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Marketing Fundamentals




Hany Khodair               PMP, ITIL, CIM Affiliate
Marketing Definition

What is marketing?

• Most people mistakenly identify marketing with selling and
  promotion.

• While selling and promotion are a part of marketing, they
  are not most important part.

• In Principles of Marketing Philip Kotler stated:

   • If the marketer does a good job of identifying consumer
     needs, developing appropriate products, and
     pricing, distributing, and promoting them
     effectively, these goods will sell very easily.




 Hany Khodair                                   PMP, ITIL, CIM Affiliate
Marketing Definition

Defining Marketing…

• Marketing can be defined as an activity directed at
  satisfying needs and wants through exchange
  processes.

• The ultimate goal of marketing is to make selling
  nonessential

• To know and understand the customer so well that
  the product or service fits him or her and sells itself.




 Hany Khodair                               PMP, ITIL, CIM Affiliate
Marketing Definition

Goods, Services, & Ideas…

• Marketing deals with goods, services, and ideas.

• A good is something someone can touch.

• A service is providing an intangible benefit to
  customers.

• An idea can include concepts or images.

• For this course, we will use the word product to refer
  to goods, services, and ideas.



 Hany Khodair                               PMP, ITIL, CIM Affiliate
Marketing Definition

Needs, Wants, & Demands…

• One of the underlying concepts of marketing is trying
  to satisfy a customer’s needs, wants and demands.

• Needs are plentiful. Basic human needs include
  food, clothing, warmth, safety and belonging.

• Wants are simply needs shaped by culture and the
  individual.

• Demands are simply the wants of a consumer when
  backed by the ability to pay for that want.




 Hany Khodair                            PMP, ITIL, CIM Affiliate
Marketing Definition

Dynamic marketing environment…

•     There are many forces that affect the marketing
      environment, including:

      •   Competition
      •   Laws and Regulations
      •   Economic and Social Conditions
      •   Cultural Factors

•     These forces can be dramatic and difficult to predict.

•     Be aware of these forces because they can create
      threats and generate opportunities for your
      business.


    Hany Khodair                              PMP, ITIL, CIM Affiliate
Marketing Definition

The marketing mix…

• The marketing mix is another important concept
  when it comes to marketing.

• The marketing mix refers to activities that a firm can
  control to produce the response it wants from the
  target market.

• These variables can be categorized into four
  groups, also know as the four P’s of marketing.




 Hany Khodair                             PMP, ITIL, CIM Affiliate
Marketing Definition

The Process of planning and executing the marketing Mix(4ps)
to satisfy both individual and organizational objectives.

4PS

-Product This is what you are offering to your target market, be it a tangible product or a service.
-Price The amount you will charge for your product.
-Place Channels your product will go through to reach the customer.
-Promotion How you raise awareness with your target market.

And additional 3ps have been added

-people
-process
-Physical Evidence

  Hany Khodair                                                            PMP, ITIL, CIM Affiliate
What is Market Research?

Is the systematic and objective definition, collection, analysis
and use of information for the purpose of improving decision
making related to the identification and solutions of problems
and opportunities in marketing.

A classification of marketing research

Problem identification research:
-Is to help identify problems that are, perhaps not apparent on
the surface and Yet exist or are likely to arise in future.
-Example: Market potential, market share, brand or company
image, market characteristics, sales analysis.




 Hany Khodair                                    PMP, ITIL, CIM Affiliate
Market Research



-Market Potential Research
                                    -Segmentation Research
-Market Share Research
                                    -Product Research
-Image Research
                                    -Pricing Research
-Market Characteristics
                                    -Promotion Research
 Research
                                    -Distribution Research
-Sales Analysis Research
-Business Trends Research




 Hany Khodair                                   PMP, ITIL, CIM Affiliate
Strategic Marketing Planning Process

                       Situation analysis
                      Internal, customer &
                     external environments



                     SWOT analysis (internal)
                     Strengths & Weaknesses
                    (external) opportunities &
                             Threats.




                    Organization Mission, Goals,
                            Objectives




                       Marketing Strategy




                    Marketing Implementation
                           and Control



 Hany Khodair                                      PMP, ITIL, CIM Affiliate
Organizational Mission VS. Organizational Vision

-Organizational mission or mission statement seeks to answer
the question “What business are we in?”
-A mission statement is a clear and concise statement
(it should be in one paragraph or two at most) that explains the
organization’s Reason for being.
The mission Statement should clarify and answer 5 basic
questions:
-Who are we?
-Who are our customers?
-What is our operating philosophy (basic
beliefs, values, ethics, etc?)
-What are our core competencies or competitive advantages?
-What are our concerns and interests related to our
employees, our community social issues and our environment?


 Hany Khodair                                  PMP, ITIL, CIM Affiliate
Organizational Mission VS. Organizational Vision

Organizational Vision

What the company aims in the future?

This vision shouldn’t be published.




 Hany Khodair                          PMP, ITIL, CIM Affiliate
Example of mission and vision

Boeing mission
Our mission is bigger and broader than ever. It is to push not
just the envelope Of flight, but the entire envelope of value
relating to our customers and share holders.

Vision
To be the source of our clients competitive advantage.




 Hany Khodair                                  PMP, ITIL, CIM Affiliate
Marketing Goals and Objectives

Marketing objectives should be expressed in clear, simple terms
so that all marketing personnel understand what type and level
of performance is desired.

The marketing objective should be written so that its
accomplishment can be :
-Measured accurately
-The marketing objective should be expressed in terms of sales
volume, Profitability per unit, percentage gain in market
share, sales per square foot, average customer
purchase, percentage of customers in the firm’s target Market
who prefer its products.




 Hany Khodair                                 PMP, ITIL, CIM Affiliate
Marketing Strategy

An organization’s marketing strategy is designed to provide a
total integration Of efforts that focus on achieving the
marketing objectives.

The marketing strategy must:

-Fit the needs and purposes of the selected target market.

-Be realistic given the organization’s available resources and
environment.

-Be the consistent with the organization’s mission, goals and
objectives.

Marketing strategy must be evaluated to determine its effect
on the organization’s sales, costs, image and profitability.
 Hany Khodair                                   PMP, ITIL, CIM Affiliate
Marketing Implementation and Control

-Marketing implementation involves activities that actually
execute the marketing strategy. One of the more interesting
aspects of marketing strategy is that all Organizations have at
least two target markets: an external market (Customers) and
an internal market (employees)

-The tradition way of a target market is the external customer
market.
- Maintaining a customer focus is extremely important
   throughout the marketing Plan process and particularly
   during implementation.

- The marketing concept is a widely accepted business
philosophy that states an organization should try to provide
products that satisfy customer’s needs through a coordinated
set of activities that allow the organization to achieve its goals.
 Hany Khodair                                    PMP, ITIL, CIM Affiliate
-Evaluation and control phase of the planning process is an
end and a beginning.

-Evaluation occurs after the marketing strategy has been
implemented

-Any marketing strategy would be incomplete without an
assessment of its success and the creation of control
mechanisms to provide and revise the strategy, its
implementation or both if necessary.

-Evaluation and control serve as the beginning point for the
planning process in the next planning cycle.




 Hany Khodair                                  PMP, ITIL, CIM Affiliate
The Target Client

Study carefully your client regarding different characteristics

-Demographic Characteristics
(Male, Female, Social economic
group, geographic, occupation, income)

-Psychographics and life style characteristics
(Stylish, happy and out going, Energetic, self controlled)




 Hany Khodair                                   PMP, ITIL, CIM Affiliate
The Market Plan

-A great deal of effort and organizational commitment are
required to create and implement a marketing plan.

-Marketing plans can be developed for specific
products, brands, target markets, or industries.

-A critical aspect of the marketing plan is its ability to
communicate to other Colleagues, particularly top managers.

-Top managers look to the marketing plan for an explanation of
the elements Of the marketing strategy and for a justification
of needed resources, like the Marketing budget.

-The marketing plan also communicates to line managers and
other employees By giving them points of reference to chart
the progress of marketing implementation.
 Hany Khodair                                  PMP, ITIL, CIM Affiliate
Purposes and significance of the marketing plan

-It explains both the present and future situations of the organization.
This includes the environmental and SWOT analyses and the firm’s
past Performance.

-It specifies the outcomes that are expected (goals and objectives) so
that the Organization can anticipate its situation at the end of the
planning period.

-It describes the specific actions that are to take place so that the
responsibility For each action can be assigned and implemented.

-It identifies the resources that will be needed to carry out the planned
actions.

-It permits the monitoring of each action and its results so that
controls may be implemented. Feed back from monitoring and control
provides information to start the planning cycle again in the next time
frame.
  Hany Khodair                                          PMP, ITIL, CIM Affiliate
-Line managers are particularly interested in the third
purpose because they are Responsible for ensuring that
marketing actions are implemented.

-Middle level managers have a specific interest in the fifth
purpose because they Want to ensure that tactical changes
can be made if needed.

-The most concern is the fourth purpose, because the
marketing plan is the means of communicating the strategy
to top executives who make the Critical decisions regarding
the productive and efficient allocation of resources.

-The marketing plan can prove unsuccessful if
implementation of the plan is Not adequately funded.


 Hany Khodair                                   PMP, ITIL, CIM Affiliate
Organizational aspects of the marketing plan

Who writes the marketing plan?

-The marketing plan can be written by the marketing
manager, brand manager, Product manager.

-Some organizations develop marketing plans through
committees.

-Other will hire professional marketing consultants.

-Others assign the marketing plan to the vice president or the
marketing director.




 Hany Khodair                                  PMP, ITIL, CIM Affiliate
Major Problems in Developing Marketing plans
-Company isn’t market oriented.

-Plans not taken seriously.

-Hard to make forecasts.

-Not enough time to prepare.

-Hard to get consensus/cooperation.

Top managers usually ask two important questions:

-Will the proposed marketing plan achieve the desired
marketing, business unit, and corporate goals and objectives?

-Are there alternative uses of the resources that would better
meet corporate Or business unit objectives than the marketing
plan that has been submitted?
 Hany Khodair                                   PMP, ITIL, CIM Affiliate
Traditional VS. Market Oriented Organizational Structure




                                    Customers
                                 Customers
                CEO
                                     Front Line
           Middle                    employees
           Managers
                                     Middle
          Front Line                 Managers
          employees
                                        CEO
          Customers

       Traditional                Market-Oriented
 Organizational Structure      Organizational Structure

 Hany Khodair                             PMP, ITIL, CIM Affiliate

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1 marketing fundmentals

  • 1. Marketing Fundamentals Hany Khodair PMP, ITIL, CIM Affiliate
  • 2. Marketing Definition What is marketing? • Most people mistakenly identify marketing with selling and promotion. • While selling and promotion are a part of marketing, they are not most important part. • In Principles of Marketing Philip Kotler stated: • If the marketer does a good job of identifying consumer needs, developing appropriate products, and pricing, distributing, and promoting them effectively, these goods will sell very easily. Hany Khodair PMP, ITIL, CIM Affiliate
  • 3. Marketing Definition Defining Marketing… • Marketing can be defined as an activity directed at satisfying needs and wants through exchange processes. • The ultimate goal of marketing is to make selling nonessential • To know and understand the customer so well that the product or service fits him or her and sells itself. Hany Khodair PMP, ITIL, CIM Affiliate
  • 4. Marketing Definition Goods, Services, & Ideas… • Marketing deals with goods, services, and ideas. • A good is something someone can touch. • A service is providing an intangible benefit to customers. • An idea can include concepts or images. • For this course, we will use the word product to refer to goods, services, and ideas. Hany Khodair PMP, ITIL, CIM Affiliate
  • 5. Marketing Definition Needs, Wants, & Demands… • One of the underlying concepts of marketing is trying to satisfy a customer’s needs, wants and demands. • Needs are plentiful. Basic human needs include food, clothing, warmth, safety and belonging. • Wants are simply needs shaped by culture and the individual. • Demands are simply the wants of a consumer when backed by the ability to pay for that want. Hany Khodair PMP, ITIL, CIM Affiliate
  • 6. Marketing Definition Dynamic marketing environment… • There are many forces that affect the marketing environment, including: • Competition • Laws and Regulations • Economic and Social Conditions • Cultural Factors • These forces can be dramatic and difficult to predict. • Be aware of these forces because they can create threats and generate opportunities for your business. Hany Khodair PMP, ITIL, CIM Affiliate
  • 7. Marketing Definition The marketing mix… • The marketing mix is another important concept when it comes to marketing. • The marketing mix refers to activities that a firm can control to produce the response it wants from the target market. • These variables can be categorized into four groups, also know as the four P’s of marketing. Hany Khodair PMP, ITIL, CIM Affiliate
  • 8. Marketing Definition The Process of planning and executing the marketing Mix(4ps) to satisfy both individual and organizational objectives. 4PS -Product This is what you are offering to your target market, be it a tangible product or a service. -Price The amount you will charge for your product. -Place Channels your product will go through to reach the customer. -Promotion How you raise awareness with your target market. And additional 3ps have been added -people -process -Physical Evidence Hany Khodair PMP, ITIL, CIM Affiliate
  • 9. What is Market Research? Is the systematic and objective definition, collection, analysis and use of information for the purpose of improving decision making related to the identification and solutions of problems and opportunities in marketing. A classification of marketing research Problem identification research: -Is to help identify problems that are, perhaps not apparent on the surface and Yet exist or are likely to arise in future. -Example: Market potential, market share, brand or company image, market characteristics, sales analysis. Hany Khodair PMP, ITIL, CIM Affiliate
  • 10. Market Research -Market Potential Research -Segmentation Research -Market Share Research -Product Research -Image Research -Pricing Research -Market Characteristics -Promotion Research Research -Distribution Research -Sales Analysis Research -Business Trends Research Hany Khodair PMP, ITIL, CIM Affiliate
  • 11. Strategic Marketing Planning Process Situation analysis Internal, customer & external environments SWOT analysis (internal) Strengths & Weaknesses (external) opportunities & Threats. Organization Mission, Goals, Objectives Marketing Strategy Marketing Implementation and Control Hany Khodair PMP, ITIL, CIM Affiliate
  • 12. Organizational Mission VS. Organizational Vision -Organizational mission or mission statement seeks to answer the question “What business are we in?” -A mission statement is a clear and concise statement (it should be in one paragraph or two at most) that explains the organization’s Reason for being. The mission Statement should clarify and answer 5 basic questions: -Who are we? -Who are our customers? -What is our operating philosophy (basic beliefs, values, ethics, etc?) -What are our core competencies or competitive advantages? -What are our concerns and interests related to our employees, our community social issues and our environment? Hany Khodair PMP, ITIL, CIM Affiliate
  • 13. Organizational Mission VS. Organizational Vision Organizational Vision What the company aims in the future? This vision shouldn’t be published. Hany Khodair PMP, ITIL, CIM Affiliate
  • 14. Example of mission and vision Boeing mission Our mission is bigger and broader than ever. It is to push not just the envelope Of flight, but the entire envelope of value relating to our customers and share holders. Vision To be the source of our clients competitive advantage. Hany Khodair PMP, ITIL, CIM Affiliate
  • 15. Marketing Goals and Objectives Marketing objectives should be expressed in clear, simple terms so that all marketing personnel understand what type and level of performance is desired. The marketing objective should be written so that its accomplishment can be : -Measured accurately -The marketing objective should be expressed in terms of sales volume, Profitability per unit, percentage gain in market share, sales per square foot, average customer purchase, percentage of customers in the firm’s target Market who prefer its products. Hany Khodair PMP, ITIL, CIM Affiliate
  • 16. Marketing Strategy An organization’s marketing strategy is designed to provide a total integration Of efforts that focus on achieving the marketing objectives. The marketing strategy must: -Fit the needs and purposes of the selected target market. -Be realistic given the organization’s available resources and environment. -Be the consistent with the organization’s mission, goals and objectives. Marketing strategy must be evaluated to determine its effect on the organization’s sales, costs, image and profitability. Hany Khodair PMP, ITIL, CIM Affiliate
  • 17. Marketing Implementation and Control -Marketing implementation involves activities that actually execute the marketing strategy. One of the more interesting aspects of marketing strategy is that all Organizations have at least two target markets: an external market (Customers) and an internal market (employees) -The tradition way of a target market is the external customer market. - Maintaining a customer focus is extremely important throughout the marketing Plan process and particularly during implementation. - The marketing concept is a widely accepted business philosophy that states an organization should try to provide products that satisfy customer’s needs through a coordinated set of activities that allow the organization to achieve its goals. Hany Khodair PMP, ITIL, CIM Affiliate
  • 18. -Evaluation and control phase of the planning process is an end and a beginning. -Evaluation occurs after the marketing strategy has been implemented -Any marketing strategy would be incomplete without an assessment of its success and the creation of control mechanisms to provide and revise the strategy, its implementation or both if necessary. -Evaluation and control serve as the beginning point for the planning process in the next planning cycle. Hany Khodair PMP, ITIL, CIM Affiliate
  • 19. The Target Client Study carefully your client regarding different characteristics -Demographic Characteristics (Male, Female, Social economic group, geographic, occupation, income) -Psychographics and life style characteristics (Stylish, happy and out going, Energetic, self controlled) Hany Khodair PMP, ITIL, CIM Affiliate
  • 20. The Market Plan -A great deal of effort and organizational commitment are required to create and implement a marketing plan. -Marketing plans can be developed for specific products, brands, target markets, or industries. -A critical aspect of the marketing plan is its ability to communicate to other Colleagues, particularly top managers. -Top managers look to the marketing plan for an explanation of the elements Of the marketing strategy and for a justification of needed resources, like the Marketing budget. -The marketing plan also communicates to line managers and other employees By giving them points of reference to chart the progress of marketing implementation. Hany Khodair PMP, ITIL, CIM Affiliate
  • 21. Purposes and significance of the marketing plan -It explains both the present and future situations of the organization. This includes the environmental and SWOT analyses and the firm’s past Performance. -It specifies the outcomes that are expected (goals and objectives) so that the Organization can anticipate its situation at the end of the planning period. -It describes the specific actions that are to take place so that the responsibility For each action can be assigned and implemented. -It identifies the resources that will be needed to carry out the planned actions. -It permits the monitoring of each action and its results so that controls may be implemented. Feed back from monitoring and control provides information to start the planning cycle again in the next time frame. Hany Khodair PMP, ITIL, CIM Affiliate
  • 22. -Line managers are particularly interested in the third purpose because they are Responsible for ensuring that marketing actions are implemented. -Middle level managers have a specific interest in the fifth purpose because they Want to ensure that tactical changes can be made if needed. -The most concern is the fourth purpose, because the marketing plan is the means of communicating the strategy to top executives who make the Critical decisions regarding the productive and efficient allocation of resources. -The marketing plan can prove unsuccessful if implementation of the plan is Not adequately funded. Hany Khodair PMP, ITIL, CIM Affiliate
  • 23. Organizational aspects of the marketing plan Who writes the marketing plan? -The marketing plan can be written by the marketing manager, brand manager, Product manager. -Some organizations develop marketing plans through committees. -Other will hire professional marketing consultants. -Others assign the marketing plan to the vice president or the marketing director. Hany Khodair PMP, ITIL, CIM Affiliate
  • 24. Major Problems in Developing Marketing plans -Company isn’t market oriented. -Plans not taken seriously. -Hard to make forecasts. -Not enough time to prepare. -Hard to get consensus/cooperation. Top managers usually ask two important questions: -Will the proposed marketing plan achieve the desired marketing, business unit, and corporate goals and objectives? -Are there alternative uses of the resources that would better meet corporate Or business unit objectives than the marketing plan that has been submitted? Hany Khodair PMP, ITIL, CIM Affiliate
  • 25. Traditional VS. Market Oriented Organizational Structure Customers Customers CEO Front Line Middle employees Managers Middle Front Line Managers employees CEO Customers Traditional Market-Oriented Organizational Structure Organizational Structure Hany Khodair PMP, ITIL, CIM Affiliate