Introduction to
Marketing management
Module 1 Objectives
When you finish this chapter, you should
1. Know what 3. Understand the
marketing is and nature & importance
of services Marketing
why you should
4. Know the
learn about it characteristics of
2. Know the main services
concepts of
marketing
Marketing Defined
• The process by which companies create value
for customers & build strong customer
relationships in order to capture value from
customers in return
• Meeting needs profitably
Implications of the Definition
• Capture value from customers to create
profits & customer quality.
• NOT just persuading customers to buy.
• Begins with customer needs and focuses on
customer satisfaction.
• Marketing activities --but it is a philosophy
that guides the whole business.
• Seeks to builds a relationship with the
customer.
Marketing Is Important!
• Marketing impacts all of us in our lives as
consumers
– Gives us choices
– Stimulates innovation and economic growth
• There are many good job opportunities in
marketing
• Regardless of what career path you take, no firm
(or non-profit organization) survives for long if it
can’t satisfy some group of customers.
Marketing Concepts
• Customer needs- States of felt deprivation
• Customer wants- The form Human needs take
as shaped by culture & personality
• Customer demands- Human wants that are
backed by buying power
• Marketing offers- Some combination of
products, services, information or experiences
offered to a market to satisfy a need or want
Marketing in Economic Development
Self-supporting
Stage 1 agriculture
Pre industrial or
Stage 2 commercial
Stage 3 Primary manufacturing
Nondurable
Stage 4 consumer products
Capital equipment and
Stage 5 durable consumer products
Exporting
Stage 6 manufactured products
Elements of marketing system
Company
Suppliers
(Marketer
Marketing End users
Suppliers intermediaries
Competitors
Marketing Management Orientations
• The Production Concept- The idea that
consumers will favor products that are
available & highly affordable
• The Product Concept- The idea that
consumers will favor the most in quality,
performance & features & organizations
should focus on continuous product
improvements
Marketing Management Orientations
• The Selling Concept- the idea that consumers
will not buy enough of the firm’s products
unless it undertakes a large-scale selling &
promotion effort
• The Marketing Concept- Achieving
organizational goals depends on knowing the
needs & wants of target markets & delivering
the desired satisfactions better than
competitors do
selling Vs marketing
Starting point Focus Means Ends
Existing Selling & Profits through sales
Factory
products promoting volume
The selling concept
Market Customer Integrated Profits through customer
needs Marketing satisfaction
The marketing concept
Societal Marketing Concept
Society
(Human welfare
Societal marketing
concept
Consumers Company
(Want satisfaction) (Profits)
Holistic Marketing Management
Senior Communications
Marketing management Products
department & services
Other depts
Channels
Internal
Integrated
marketing
marketing
Holistic
marketing
Socially
responsible Relationship
marketing
marketing
Ethics Community
Environment Customers Partners
Channel
Legal
Customer Value Reflects Benefits and Costs
Customer value concerns the difference between the benefits a customer
sees from a firm’s market
offering and the costs of obtaining those benefits
Costs Benefits
The Four Ps of the Marketing Mix
Product Place
C
Price Promotion
Strategy Decision Areas
Product Organized by the
Place Four Ps
Promotion Price
Physical Goods Objectives Objectives Objectives
Service Channel Type Blend Flexibility
Features Market Exposure Salespeople Level over PLC
Quality Level Kinds of Kind Geographic
Accessories Middleman Number Terms
Installation Kinds and Selection Discounts
Instructions Locations of Training Allowances
Warranty Stores Motivation
Product Lines How to Handle Advertising
Packaging Transporting Targets
Branding and Storing Kinds of Ads
Service Levels Media Type
Recruiting Copy Thrust
Middlemen Who Prepares?
Managing Sales Promotion
Channels Publicity
The Marketing Process
Understand Design consumer Construct Capture value
market & Driven marketing from
Consumer needs marketing program Customers
strategy to create
profits
&
Customer
Build profitable equity
Relationships &
Create customer delight
Harness Manage Ensure ethical
Marketing Global & social
technology markets responsibility
Services marketing
A large number of business organizations offer
services – airlines, banks, hotels, insurance
companies, consulting firms, medical & law
practices, entertainment companies, real
estate firms, financial services firms, retailers
etc
Product Services Continuum
Canned goods Automobiles Hotels Air travel Insurance
Consulting
teaching
Mostly goods Mostly services
Nature & characteristics of services
• Service intangibility- Services cannot be seen,
tasted, felt, heard or smelled before they are
bought
• Service inseparability- Services are produced
& consumed at the same time & cannot be
separated from their providers
• Service variability- Services quality may vary
greatly, depending on who provides them &
when, where & how
• Service perishability- Services cannot be
stored for later sale or use
The service profit chain
1. Internal service quality
2. Satisfied & productive service employees
3. Greater service value
4. Satisfied & loyal customers
5. Healthy service profits & growth
Marketing in service industries
Company
Internal
Marketing External
marketing
Employees Customers
Interactive
Marketing
Trends in marketing
• Everyone in the organization does marketing
• Organizing by customer segments
• Outsourcing
• Identifying new segments
• Emphasis on intangible assets
• Building brands through performance and
integrated communications
Trends in marketing
• Online marketing
• Selling to well defined markets
• Focusing on customer lifetime value
• Building customer share
• Glocal strategies
• Focus on stakeholders
