MARKETING
Chapter :1

What Is Marketing?
Marketing is a process by which
companies create value for
customers and build strong
customer relationships to capture
value from customers in
return .

Understanding the Marketplace
Exchange is the act of obtaining a
desired object from someone by
offering something in return
Markets are the set of actual and
potential buyers of a product or
service

Marketing management is the art
and science of choosing target
markets and building profitable
relationships with them
 What customers will we serve?
 How can we best serve these customers?

Marketing Strategy and Marketing Mix
 Marketing Strategy :
The marketing logic by which the
business units hopes to create
customer value and achieve
profitable customer relationships.

Customer –Driven Marketing
strategy
 Market segmentation: Dividing the market
into distinct groups of buyers who have
different needs ,characteristics or behaviors
who might require separate products or
marketing programs .
Market segment : A group of consumers who
respond in a similar way to a given set of
marketing efforts.

 Market Targeting : the process of evaluating
each market segment's attractiveness and
selecting one or more segments to enter.
 Positioning :Arranging for a product to occupy
a clear, distinctive, and desirable place relative
to competing products in the minds of target
consumers.

Marketing Mix
8
 The marketing mix includes controllable and
tactical marketing tools knows as the 4P’s
The 4P’s include
 Product
 Place
 Promotion
 Price
That the firm blends to produce the response it wants in
the target market.
Goal 4: Describe elements of customer-driven strategy

Developing the Marketing Mix
9
Target
Customers
Intended
Positioning
Product
Variety
Quality
Design
Features
Brand name
Packaging
services
Price
List price
Discounts
Allowances
Payment period
Credit terms
Promotion
Advertising
Personal selling
Sales promotion
Public relations
Place
Channels
Coverage
Locations
Inventory
Transportation
Logistics

The 4 P’s & 4C’s of the Marketing Mix
10

Managing the Marketing Effort
11
• Analysis
• Planning
• Implementation
• Control
Marketing Functions

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Managing the Marketing Effort
 Four marketing management functions:
 Marketing analysis
 SWOT analysis is key.
 Marketing planning
 Create marketing plan consistent with strategic
plan.
 Marketing implementation
 Carry out the plans successfully.
 Marketing control
 Measure and evaluate results; take corrective action
as needed.

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 Strengths:
 Internal capabilities that may help a company reach its objectives.
 Weaknesses:
 Internal limitations that may interfere with a company’s ability to
achieve its objectives.
 Opportunities:
 External factors that the company may be able to exploit to its
advantage.
 Threats:
 Current and emerging external factors that may challenge the
company’s performance.
SWOT Analysis

1. Executive summary
2. Current marketing situation
3. Analysis of threats and opportunities
4. Marketing strategy
5. Action programs
6. Budgets
7. Controls
Contents of a Marketing Plan

 Turns marketing plans into marketing actions
by addressing:
 Who
 Where
 When
 How
 Implementation can be difficult but is critical to
success.
Marketing Implementation

Organizing Marketing Departments
(1) Chief Marketing Officer (CMO): in small companies, one
person may perform all the marketing functions under Chief
Marketing Officer (CMO) position. Today, this type is
becoming more common.
(2) Functional organization: used mainly by big companies
Each marketing activity is headed by a functional
specialist.
 E.g., sales manager, advertising manager, marketing
research manager, etc.
(3) Geographic organization:
 Sales and marketing people are assigned to specific
countries, regions, and/or districts.

(4) Product management organization:
 One person is given responsibility for complete strategy
and marketing program for a single product.
(5) Market or customer organization:
 A Manager is fully responsible for particular market or
type of customer (e.g., government buyers). Often used
in companies that sell one product to many different kinds
of buyers.
P&G and unilever have setup to serve large customers
such as wal-mart Marko-habib ,Metro and big bazar.
Organizing Marketing Departments (cont’d)

Marketing Control Process
Marketing control: is evaluating the results
of marketing strategies and plans and
taking corrective action to ensure that
objectives are achieved.
 Marketing control involves four steps:
 Set goals
 Measure performance
 Evaluate performance
 Take corrective action
 The corrective action may require changing action
programs or even goals.

MEASURING AND MANAGING RETURN ON
MARKETING INVESTMENT
 Marketing managers must ensure that their
marketing dollars are being well spent.
 RoI: The net return from a marketing
investment divided by the cost of the
marketing investment
Return on marketing investment is
assessed using one or more of the
following methods:

Standard marketing performance
measures (also called marketing
dashboards): Examples include Brand
awareness, sales, market share.
Customer-centered measures:
Examples include Customer
acquisition, customer retention,
customer lifetime value, customer
equity