2. Chapter Questions
1
Why is marketing
important?
What is the scope
of marketing?
What are some
core marketing
concepts?
What forces are
defining the new
marketing
realities?
What new
capabilities have
these forces given
consumers and
companies?
What does a
holistic marketing
philosophy include?
What are the tasks
necessary for
successful
marketing
management?
3. The Importance of Marketing
2
Financial success often depends on marketing ability.
Define and deliver the company’s value proposition.
Marketing aims to:
Explain what makes the company/product different Understand what customers are looking for
Marketing is essential for a company to define itself.
Chapter Question 1:
Why is marketing
important?
4. The Scope of Marketing
3
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?
5. What is Marketing?
4
Marketing is an organizational function and a set of
processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways
that benefit the organization and its stakeholders.
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?
6. What is Marketing Management?
5
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?
8. Who Markets?
7
Marketers and prospects
Marketers are responsible for demand management
• Negative demand.
• Nonexistent demand.
• Latent demand.
• Declining demand.
• Irregular demand.
• Full demand.
• Overfull demand.
• Unwholesome demand.
Eight demand states are possible
Chapter Question 2:
What is the scope of
marketing?
9. Fig. 1.1: Structure of Flows in a
Modern Exchange Economy
8
Chapter Question 2:
What is the scope of
marketing?
10. Fig. 1.2:
A Simple Marketing System
9
Chapter Question 2:
What is the scope of
marketing?
14. Core Marketing Concepts
Needs, Wants
and Demands
13
States of deprivation
basic human requirements
• Physical—food, clothing, warmth,
safety
• Social—belonging and affection
• Individual—knowledge and self-
expression
Needs
Form that needs take as they are shaped
by culture and individual personality
Wants
Wants for specific products backed by the
ability to pay
Demands
Chapter Question 3:
What are some
fundamental marketing
concepts?
16. Core Marketing Concepts
Target Markets,
Positioning, and
Segmentation
15
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
Chapter Question 3:
What are some
fundamental marketing
concepts?
17. Core Marketing Concepts
Value and Satisfaction
16
Quality
Service
Customer
Value
Triad
Price
Performance versus Expectations
Chapter Question 3:
What are some
fundamental marketing
concepts?
19. The New Marketing Realities
18
Technology
Globalizatio
n
Social
Responsibility
Chapter Question 4:
How has marketing
management changed?
20. The New Marketing Realities
New Consumer
Capabilities
Can use the Internet as a powerful
information and purchasing aid
Can search, communicate and purchase
on the move
Can tap into social media to share
opinions and express loyalty
Can actively interact with companies
Can reject marketing they find
inappropriate
19
Chapter Question 4:
How has marketing
management changed?
21. The New Marketing Realities
New Company
Capabilities
Can improve cost efficiency
Can improve purchasing, recruiting, training and
internal and external communications
Can reach customers quickly and efficiently via
social media and mobile marketing, sending
targeted ads, coupons and information
Can collect fuller and richer information about
markets, customers, prospects and competitors
Can use the Internet as a powerful information and
sales channel, including for individually
differentiated goods
20
Chapter Question 4:
How has marketing
management changed?
22. Company Orientations
21
Chapter Question 4:
How has marketing
management changed?
Production
concept
Product
concept
Selling
concept
Marketing
concept
Holistic
Marketing
concept
24. The Holistic Marketing Concept
Recognizes that
‘everything
matters’ in
marketing,
and that
a broad,
integrated
perspective is
often necessary
23
Chapter Question 4:
How has marketing
management changed?
25. Internal Marketing
Ensuring that
everyone in the
organization
embraces appropriate
marketing principles,
especially senior
management
24
Chapter Question 4:
How has marketing
management changed?
26. Relationship Marketing
building mutually
satisfying long-term
relationships with key
parties, in order to
earn and retain their
business.
Presentation Title runs here l 00/00/00
25
Customers Employees
Marketing
Partners
Financial
Community
Chapter Question 4:
How has marketing
management changed?
28. Integrated Marketing
27
Four Ps SIVA
Solution
Information
Value
Access
Product
Price
Place
Promotion
Chapter Question 4:
How has marketing
management changed?
29. Types of
Corporate Social Initiatives
CORPORATE SOCIAL
MARKETING
CAUSE MARKETING CAUSE-RELATED
MARKETING
CORPORATE
PHILANTHROPY
CORPORATE
COMMUNITY
INVOLVEMENT
SOCIALLY
RESPONSIBLE
BUSINESS PRACTICES
28
Chapter Question 4:
How has marketing
management changed?
30. The Four Ps of the Marketing Mix
29
Chapter Question 4:
How has marketing
management changed?
31. The Modern
Marketing Management Four Ps
30
People
Processes
Programs
Performance
Chapter Question 4:
How has marketing
management changed?
32. Marketing Management Tasks
31
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
Chapter Question 5:
What are the tasks
necessary for successful
marketing management?
36. The Case of Diwan
A Tale of Heart Over Matter
35
37. Entrepreneurs’ Background
• Annual meeting on
December 1, 2009
• A steep increase in costs
which were not covered by
the revenues generated.
• Hind and Nadia Wassef
graduated from the
American University in
Cairo (AUC), 1991 and
1994 respectively.
• Master’s degrees, 1994 and
1996.
• Nadia: Master’s degree
anthropology in 2000.
36
38. Entrepreneurs’ Background cont.
• Twenty –first century shift in the
sisters’ interests, to an
entrepreneurial pursuit that would
not only re-shape their personal lives
but also contribute to cultural reform
in Egyptian society.
• The introduction of Diwan to the
Egyptian market bridged the gap
between book-starved customers
and book retailers.
• Book-hungry individual were forced
to purchase them in other countries,
or wait for the annual international
book fair, had to pay a lot of money
in order to satisfy their yearlong
book needs.
37
39. The Start-up
Fortunate Coincidences
• Availability of a retail space in
Zamalek.
• Alaa El Aswany, just published
Omaret Yacoubian, provided
Diwan with an opportunity to
capitalize on.
• The devaluation of the
Egyptian Pound
DIWAN’S Start-Up
• Create a recreational cultural
experience for families with a
disposable income.
38
40. The Offering
•Extensive selection of books
•A multimedia section
•A stationery section
•Variety of other services
Services Offered
Diwan has transformed
the ordinary purchase
of a book into a cultural
retail experience.
•customer service and satisfaction, that’s why
delivery service and loyalty cards were established.
•Exceptional management team.
•Strategic partners.
Priorities of Diwan:
39
41. DIWAN’S Organizational Culture
40
Management culture is based on:
Passion, transparency and sensitive to the needs of the
community.
Team work, trust, recognition, social responsibility and
innovation.
Welcoming, warm and comforting atmosphere.
Creation and implementation of new ideas. Transform the
traditional bookstore into a cultural center. Developed its own
website.
42. The challenges
41
Over-expenditure problem in 2009
• The success of encouraged partners to expand
• Citadel Capital, supplied 40 percent of the investment
• Opening in huge shopping malls, Alexandria city center.
• 2007 Diwan Heliopolis/ 12 branches
• Many costs: rent, refurbishment, cashier unit, décor, the
merchandise and books inventory, direct costs.
Direct costs
• The opening of its branches demonstrated a 60 percent deficit
in the budget.
• Revenues generated covering only 40 percent of the costs.
• Immediate decision avoid further losses and ..break even.
43. The Future of DIWAN
42
To sustain its market share, innovativeness is impeccable.
Using the experiences in other countries.
Next step for Diwan introduce e-books.
Expand the range of social-related events.
Diwan is more than just a book retailer; Serving the book-hungry
population, Meets cultural and intellectual needs of Egyptian society.
But cost threatens company’s profits and operations.
Time has come to reshape its business model.
44. Questions
for discussion
43
Give examples of needs, wants, and demands that Diwan’s customers
demonstrate, differentiating each of these three concepts.
In detail, describe all facets of Diwan’s product offering.
Which of the five marketing management concepts best describes
Diwan?
Discuss in detail the value that Diwan creates for its customers.
Is Diwan likely to be successful in continuing to build customer
relationships? Why or why not?
