MarketingInstructor

Abdel Fatah AfifiMA&T, MBA, PCT, ACPA

2nd Semester 2009/2010

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Marketing: Using Exchanges to Satisfy Needs

The Diverse Factors Influencing Marketing Activities

WHAT IS MARKETING?

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Marketing has evolved through three stages of development

1. Production orientation: focusing on manufacturing a product.

2. Sales orientation: focusing on selling a product.

3. Marketing orientation: focusing on satisfying the customer’s needs.

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Some industries and organizations remain at the production-orientation stage.

PRODUCTION ORIENTATION

PRODUCTION ORIENTATION SALES ORIENTATION

Other industries and organizations have progressed only to the sales-orientation stage.

Many industries and organizations have progressed to the marketing-orientation stage.

PRODUCTION ORIENTATION

SALES ORIENTATION

MARKETING ORIENTATION

Late 1800s Early 1930s Mid-1950s

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Differences between Marketing and Selling

Marketing is the process of determining customer wants and then developing a product to satisfy that need and still yield a satisfactory profit. It is externally focused.

Selling is producing a product and then trying to persuade customers to purchase it -- in effect, trying to alter consumer demand. It is internally focused.

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Customerorientation

Organization’sperformanceobjectives

Coordinatedmarketingactivities

+

+

+Customersatisfaction

Organizationalsuccess

Marketing Concept

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Organization’s marketing department relates to many people, groups, and forces

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Discovering Consumer Needs The Challenge of Launching

Winning New Products

Consumer Needs and Consumer Wants

What a Market Is?

HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

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Marketing’s first task: discovering consumer needs

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Satisfying Consumer NeedsTarget market

The Four Ps: Controllable Marketing Mix Factors

The Uncontrollable, Environmental Factors

HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

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A Marketing Program for Rollerblade Expanding the Market for

Rollerblade Skates Exploiting Strengths in

Technology

THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

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Rollerblade In-line Skate Segment:

Women

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Rollerblade In-line Skate Segment:

Kids

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Marketing programs for two of Rollerblade’s skates, targeted at two distinctly different customer segments: fast-growing kids and fitness skaters.

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Evolution of Market Orientation Production Era Sales Era The Marketing Concept Era The Market Orientation Era

Customer relationship management (CRM)

HOW MARKETING BECAME SO IMPORTANT

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Four different orientations in the history of American business

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Ethics and Social Responsibility:Balancing the Interests of Different Groups Ethics Social Responsibility

Societal marketing concept Macromarketing Micromarketing

HOW MARKETING BECAME SO IMPORTANT

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The Breadth and Depth of MarketingWho Markets?What is Marketed?

HOW MARKETING BECAME SO IMPORTANT

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Hermitage MuseumOutside View

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Hermitage Museum

Statue

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The Breadth and Depth of Marketing (cont) Who Buys and Uses What is

Marketed? Ultimate consumers Organizational buyers

Who Benefits? How Do Consumers Benefit?

Utility

HOW MARKETING BECAME SO IMPORTANT

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Quality in Marketing

Quality has three dimensions Meeting and striving to exceed

customers’ requirements. The absence of variation. Total organizational

commitment. The best indicator of quality is

customer satisfaction.

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Ethics and Marketing Marketing is intended to influence the

behavior of customers and others. The use of marketing tools can create a

wide variety of ethical challenges.

There is disagreement over what constitutes ethical or unethical behavior. Ethics are standards of behavior

generally accepted by society. Ethics vary from society to society.

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Ethics and Marketing (cont.)

Corporations are taking action to instill ethical awareness in their employees by: Avoiding unreasonable pressure on

employees to perform. Communicating clearly what is expected

of employees. Employing an “Ethics Officer” to advise

employees on ethical dilemmas. Rewarding only ethical performance.

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Importance of Marketing the Global economy

Nations depend upon marketing to sell their raw materials and industrial output to other countries.

Companies now compete in markets all over the world.

Foreign companies now build 2 million cars and light trucks a year in the U.S., up from nothing 15 years ago.

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Importance of Marketing in the Socioeconomic System

Marketing creates utilities: Place utility makes a product accessible to

potential customers where they want it. Time utility makes a product available when

they want it. Information utility is created by informing

prospective buyers that a product exists. Image utility is the emotional or psychological

value that the customer attaches to a product or brand.

Possession utility is created when ownership is transferred to the buyer.

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Importance of Marketing in Organizations

The basic reason for firm’s existence is customers want satisfaction.

Marketing is the only revenue-producing activity for the firm.

Marketing has become increasingly important for service firms and nonprofit organizations.

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Importance of Marketing in your life

Marketing is a large part of your daily life. Consumers are exposed to 3,000 commercial messages a day.

Studying marketing will make you a better-informed customer.

Marketing probably relates -- directly or indirectly -- to your career aspirations.