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
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
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
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
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
The marketing mix includes controllable and
tactical marketing tools knows as the 4P’s
The 4P’s include
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
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Managing the Marketing Effort
Four marketing management functions:
SWOT analysis is key.
Create marketing plan consistent with strategic
Carry out the plans successfully.
Measure and evaluate results; take corrective action
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Internal capabilities that may help a company reach its objectives.
Internal limitations that may interfere with a company’s ability to
achieve its objectives.
External factors that the company may be able to exploit to its
Current and emerging external factors that may challenge the
1. Executive summary
2. Current marketing situation
3. Analysis of threats and opportunities
4. Marketing strategy
5. Action programs
Contents of a Marketing Plan
Turns marketing plans into marketing actions
Implementation can be difficult but is critical to
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
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
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:
Take corrective action
The corrective action may require changing action
programs or even goals.
MEASURING AND MANAGING RETURN ON
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
Return on marketing investment is
assessed using one or more of the
Standard marketing performance
measures (also called marketing
dashboards): Examples include Brand
awareness, sales, market share.
Examples include Customer
acquisition, customer retention,
customer lifetime value, customer