Transcript Kotler Keller 1

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Marketing Management
Course Instructor
 Dr. Reham Ibrahim Elseidi
 [email protected]
 Friday: 9.00 am – 12.00pm
 Friday: 1.00-4.00pm
 BB-203.
 Office hours: by appointment.
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Assessment
Student Assessment Methods
Assessment Weighing
Class Discussions and Case Analysis
10%
Assignment
10%
Midterm
30%
Final
50%
Attendance is mandatory.
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Course Outline
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Topic1: Defining Marketing for the 21 Century.
Topic2: Developing Marketing
Strategies and Plans .
Topic3: Services Marketing.
Topic4: Social Marketing.
Topic5: Sustainable Marketing and Corporate
Social Responsibility.
Topic6: Creating Brand Equity and Build Strong
Brands
Topic7: E and Digital Marketing
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References
 Recommended Textbook
 Kotler, P. and K. Keller (2012). Marketing Management (14th
edition). Prentice Hall.
 Recommended Further Reading
 Kotler, P. and N. Lee (2008).Social Marketing: Influencing
Behaviors for Good (3rd edition). Sage Publications.
 Strauss, J. and R. Frost (2011). E-Marketing: International
Edition(6th edition). Prentice Hall.
 Lovelock, C.H. and J. Wirtz (2010). Service Marketing (7th
edition) . Prentice Hall.
 Kotler, P. and G. Armstrong (2010). Principles of Marketing
(13th edition). Prentice Hall.
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Course Outline
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Topic1: Defining Marketing for the 21st Century.
Topic2: Developing Marketing Stratregies and
Plans.
Topic3: Service Marketing
Topic4: Social Marketing
Topic5: Suitable marketing and corporate social
responsibility.
Topic6: Creating Brand Equity and Building
Strong Brands.
Topic7: E and Digital Marketing.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Course Outline
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Topic 1: Defining Marketing for the 21st Century.
Topic2: Developing Marketing strategies and
plans.
Topic3: Service Marketing.
Topic4: Social Marketing.
Topic5: Sustainable Marketing and corporate
social responsibility.
Topic6:Building Strong Brands and Creating
Brand Equity.
Topic7: E and Digital marketing.
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Defining Marketing
for the 21st Century
Chapter Questions
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Why is marketing important?
What is the scope of marketing?
What are some fundamental marketing
concepts?
How has marketing management changed?
What are the tasks necessary for successful
marketing management?
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Why is Marketing
Important?
An Overview of Marketing
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Marketing is everywhere,
Marketing is both an “art” and a “science”,
Marketing is essential for a company to define
itself.
Financial success often depends on marketing
ability,
Marketing builds brands and a loyal customer
base.
Marketing is tricky and making the right
decisions is not always easy.
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Xerox in the middle East changed the
perception that high –quality color printing
is for large business only. The company
introduced the phaser 6280 as its new
economical color model for small
business. By launching this cost-efficient
color printer in the Middle East, Xerox
successfully coped with the technological
change "from black and white to colored
printed material” and with new customers
'needs. Xerox differentiated itself from
other providers by offering a color printer
at an affordable price. In the Middle East
and Africa region, Xerox depends on its
partners to strengthen the value that Xerox
delivers to its customers.
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What is Marketing?
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
Ex: When the Emirate of Sharjah, realized that expatriates wanted low-cost,
affordable means of transportation for themselves and their families, it introduced
Air Arabia, a no –frills airline.
What is Marketing Management?
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.
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What is Marketed?
• Goods- Cans
• Services - Hotels
• Events - Olympics
• Experiences – spending a week at
AL-Ahly football camp playing with
football masters such as Abu Terka
• Persons - Celebrity
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What is Marketed?
• Places- Egypt
• Properties – real estate – stocks
and bonds
• Organizations- P&G- Resala
• Information – Al -Ahram
• Ideas – Al-Baraka bil shabab -quit
smoking
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Who Markets?
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A marketer is someone seeking a response
(attention, purchase, vote, donation, etc.) from
another party called the prospect.
Marketers are responsible for stimulating
demand for a company’s product.
Marketing managers seek to influence the
level, timing, and composition of demand to
meet the organization’s objectives
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Demand States
Negative
Nonexistent
Declining
Full
Latent
Irregular
Overfull
Unwholesome
What does Market mean?
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Economists describe a market as a collection
of buyers and sellers who transact over a
particular product or product class.
Marketers use the term “market” to cover
various groups of customers. The five basic
markets are:
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Figure 1.1 Structure of Flows in
Modern Exchange Economy
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Figure 1.2
A Simple Marketing System
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Key Customer Markets
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Consumer markets
Business markets
Global markets
Nonprofit/Government markets
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What Is Marketing?
The Marketing Process
Core Concepts
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Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and
brands
Value and
satisfaction
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Marketing channels
Supply chain
Competition
Marketing
environment
Marketing planning
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Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands
Needs
Wants
Demands
• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and selfexpression
• Form that needs take as
they are shaped by culture
and individual personality
• Wants backed by buying
power
True or False
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Marketers get people to buy things they
don’t want.
 Marketers create needs.
Types of Needs
Stated
Real
Unstated
Delight
Secret
• The customer wants an inexpensive
car.
• The customer wants a car whose
operating cost, not initial price, is low
• the customer expects good service
from the dealer
• the customer would like the dealer to
include an onboard GPS navigation
System
• the customers wants friends to see
him or her as a savyy consumer
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What customers will we serve?
 How can we best serve these
customers?
Target Markets,
Positioning & Segmentation
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Market Segmentation
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Market segmentation is the process that
companies use to divide large heterogeneous
markets into small markets that can be
reached more efficiently and effectively with
products and services that match their unique
needs
Market targeting (or targeting) consists of
evaluating each market segment’s
attractiveness and selecting one or more
market segments to enter.
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Differentiation involves actually
differentiating the firm’s market offering to
create superior customer value.
Positioning consists of arranging for a
market offering to occupy a clear, distinctive,
and desirable place relative to competing
products in the minds of target consumers.
Offerings and Brands
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Market offerings are some
combination of products, services,
information, or experiences offered
to a market to satisfy a need or want
Ex: DestinationOman.com markets
OMAN as a tourist destination,
highlighting the country’s historic
heritage, natural beauty, folklore,
and traditional industries.
Offerings and Brands
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The value proposition is the
set of benefits or values a
company promises to deliver
to customers to satisfy their
needs.
BMW promises “ the ultimate
driving machine”, whereas
the British made Land Rover
lets you” Go Beyond- to get
a taste of adventure,
whatever your tastes”
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Offerings and Brands
Brand: is an offering from
a known source
McDonald’s carries many
associations in people
minds that make up the
brand image.
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Value and Satisfaction
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Value: reflects, the sum of the
perceived tangible and intangible
benefits and costs to customers.
It is primarily a combination of
quality, service, and price (qsp),
called the customer value triad.
Satisfaction reflects a person’s
judgment of a product’s perceived
performance in relationship to
expectations
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Form a small group of three or four students.
Discuss a need or want you have that is not
adequately satisfied by any offerings currently
in the marketplace. Think of a product or
service that will satisfy that need or want.
Describe how you will differentiate and
position your offering in the marketplace and
develop the marketing program for your
offering. Present your ideas to the other
groups.
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Marketing Channels
Communication
Distribution
Service
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Marketing Environment
Demographic
Economic
Socio-cultural
Political-legal
Technological
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Company Orientations
Production
Product
Selling
Marketing
Holistic
Marketing
Production Concept
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The production concept holds that consumers
will prefer products that are widely available
and inexpensive.
Concentrate on achieving high production
efficiency, low costs and mass production.
Wants to expand the market
China
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Product Concept
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Holds that consumers will
favor those products that
offer the most quality,
performance, or innovative
features.
Focus on making superior
products and improving them
over time.
Selling Concept
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Holds that consumers and
businesses, will ordinarily not
buy enough of the
organization’s products,
therefore, the organization must
undertake aggressive selling
and promotion effort.
Marketing Concept
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The marketing concept holds that the
key to achieving organizational goals
consists of the company being more
effective than competitors in creating,
delivering, and communicating
superior customer value to its chosen
target markets.
Marketing Concept
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Reactive market orientation—
understanding and meeting consumers’
expressed needs.
Proactive marketing orientation—
researching or imagining latent
consumers’ needs through a “probeand-learn” process.
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Companies that practice both reactive and
proactive marketing orientation are
implementing a total market orientation.
The Selling and Marketing
Concepts Contrasted
Marketing Management
Philosophies (Summary)
Production (1850- mass production)
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Product (1900- product quality)
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Sales (1920-personal selling)
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Marketing (1950- transaction marketing)
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Societal-Marketing (1980- society welfare)
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Relationship-Marketing (1985-relationship-based)
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Customer-centric (2000- individual rather
than market segments) – Mass Customization
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Holistic Marketing
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Relationship Marketing
Customers
Employees
Marketing Partners
Financial Community
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focus on customer retaining rather than customer getting.
Partner
Advocate
loyalty
supporter
Emphasis on
new
customers
Client
Purchaser
Prospect
A- Relationship Marketing
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Relationship marketing has the aim of building
mutually satisfying long-term relationships with
key parties—customers, suppliers, distributors,
and other marketing partners. Relationship
marketing builds strong economic, technical,
and social ties among the parties.
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A- Relationship Marketing
1.
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Marketing must not only do customer
relationship management (CRM) but also
partnership relationship management
(PRM).
Four key constituents for marketing are:
• Customers.
• Employees.
• Marketing partners (channel partners).
• Members of the financial community.
The ultimate outcome of relationship
marketing is the building of a unique
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network.
3.
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National bank of Kuwait adopted a customer
retention strategy through its online banking
services. As the popularity of this new service
grew, it become an integral part of the bank’s
customer retention and growth strategy
Attracting a new customer may cost five times
as much as doing a good enough job to retain
an existing one.
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B- Integrated Marketing
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The marketer’s task is to devise marketing
activities and assemble fully integrated
marketing programs to create, communicate,
and deliver value for consumers.
The 4Ps of marketing: product, price, place,
and promotion.
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Integrated Marketing
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Figure 1.5 The Four P’s
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The New Four Ps
People
Processes
Programs
Performance
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People reflect internal marketing and the fact that
employees are critical to marketing success.
Processes reflect all the creativity, discipline, and
structure brought to marketing management.
Programs reflect all of the firm’s consumerdirected activities.
Performance is holistic marketing to capture the
range of possible outcomes/measures that have
financial and non-financial implications, and
implications beyond the company itself
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Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able employees
who want to serve customers well.
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C- Internal Marketing
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Holistic marketing incorporates internal
marketing, ensuring that everyone in the
organization embraces appropriate marketing
principles.
Internal marketing must take place on two
levels:
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At one level, the various marketing functions
(sales force, advertising, customer services,
product management, and marketing research)
must work together.
Secondly, marketing must be embraced by the
other departments—they must “think
customer.” Marketing is not a department so
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much as a company orientation.
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Snowshoe Mountain in Snowshoe, West Virginia,
embarked on a marketing program based on internal
marketing to better brand the ski resort with a promise
of an “authentic, rustic and engaging wilderness
experience.” In launching a branding initiative to
define their goals and articulate what they wanted the
Snowshoe Mountain brand to represent to visitors, the
resort’s marketers started inside. They incorporated
the new brand promise in a 40-page brand book that
contained the history of the resort and a list of seven
attitude words that characterized how employees
should interact with guests. On-mountain messaging
and signs also reminded employees to deliver on the
brand promise. All new hires received a brand
presentation from the director of marketing to help
them better understand the brand and become
effective advocates.
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Social Responsible Marketing
 Holistic marketing incorporates social
responsibility marketing and understanding
broader concerns, and the ethical,
environmental, legal, and social context of
marketing activities and programs.
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Performance Marketing
Financial
Accountability
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Social Responsibility
Marketing
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Types of
Corporate Social Initiatives
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Corporate social marketing
Cause marketing
Cause-related marketing
Corporate philanthropy
Corporate community involvement
Socially responsible business practices
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Marketing Management Tasks
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Develop market strategies and plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Communicate value
Create long-term growth
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For Review
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Why is marketing important?
What is the scope of marketing?
What are some fundamental marketing
concepts?
How has marketing management changed?
What are the tasks necessary for successful
marketing management?
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Exercises

Apple’s iDevices are wildly popular, starting with the iPod followed by
iPhones and iPads. But where’s the flash? Adobe Flash, that is.
Adobe’s Flash, the long-standing multimedia platform behind
approximately seventy-five percent of the animated and streaming
audio and video on the Internet, is not supported by Apple’s devices.
Many purchasers were disappointed after spending hundreds of
dollars on sleek iPads only to realize they couldn’t play their favorite
Internet game or watch that funny video on their device. And they still
can’t, even with the second generation device, the iPad 3. It seems
Apple’s late founder and CEO, Steve Jobs, didn’t like Flash and
would not support it on Apple’s devices. Instead, app developers
must conform to Apple’s operating system and existing applications
on the Web must convert to HTML5 to play on an Apple product.
Adobe’s co-founders claim Apple is “undermining the next chapter of
the Web” and bloggers exclaim this is not just an “Adobe/Apple
problem…but an Apple/World problem.”
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Does Apple appear to embrace the marketing
concept?
Research the controversy surrounding this
issue and debate whether Apple did the right
thing for its customers by not including the
ubiquitous Adobe Flash software on Apple’s
products.
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