Marketing Management

The Marketing Management process is the mechanism by which the marketing organization
interacts with its customers (H. Assael, 1993)
• The Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of goods and services to
facilitate exchanges that satisfy individual
and organizational objectives
• Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.
American Marketing Association (2007)
• Marketing is defined to be the process responsible for anticipation, identification, and
satisfaction of customer needs through a profit. Kotler (2012)
• Marketing is the management process responsible for identifying, anticipating &
satisfying customer requirements profitably. CIM-Chartered Institute of marketing (2013)
Conclusions:
• Marketing plays a central role in satisfying customer needs.
• Market-oriented organizations and managers have to focus on creating long-term
customer relationships to achieve superior performance.
• Marketing activities emphasis on building a sustainable value-driven system for
customers, stakeholders, and society.
Importance of Marketing Management:
1- Continuous market changes
2- Effect of economical status on different industries
3- Increasing intensity of competition in the market
4- Continuous improvement of marketing practices
5- Improving customer satisfaction level and organizational effectiveness
6- Achieving the organizational objectives
7- Attracting customers towards your products/services, retaining customers you have, and
maintaining the relationships with them.
8- Customers today are well educated, and they search and gather enough information about
products/services before selection.
9- Growing global trend towards marketing and strategic marketing management.
10- Marketing management is not just about money but also your reputation which cannot
be built overnight.
Evolution of Marketing Concept Past, Present and Future Historical Perspectives
1- Production orientation 1900
Focus primarily on production capabilities, efficiency and product / service availability, with
little regard to customers’ needs
2- Sales orientation 1930
To sell what the company made rather than to make what it could sell based on customer needs
3- Customer orientation 1950 - (The marketing concept);
It called the philosophy that marketing strategies must be based on known customer needs
4- Competitors orientation 1970
5- Strategic marketing concept 1980 - (Customer + competitors’ orientation);
Satisfying customer needs while sustaining a competitive advantage to ensure long term profitability
Who is the Customer?
The purchaser of a product, the recipient of a services, or ideas
Consumer Behavior
Before you can sell effectively to someone, you must understand their motivations and reasons
for purchasing a product.
Customer Decision Process
• Problem recognition
• Information search
• Evaluate alternatives
• Make selection decision
• Post purchase evaluation
Factors affecting consumer behavior
• Marketing strategies and marketing mix variables (the four Ps)
• Psychological influences such as perception and attitudes
• Situational influences such as the type of purchase and physical surroundings
• Socio cultural influences such as reference groups and culture
• Subculture (religious & racial groups)
• Learning and previous experience
Marketing Plan
It is a written document that serves to guide marketing initiatives across the organization as a
Part of the broader strategic plan and it contains specific tactical marketing activities that are
more short-term in nature.
1- Executive summery
2- Situational Analysis.
3- Setting Marketing Objectives.
4- Designing Marketing Strategies.
5- Planning Tactics & Marketing Programs (Marketing Mix).
6- Action Plan.
7- Budgeting.
8- Implementation and Control.
9- Contingency Plan.
 1- Executive Summary
• Brief overview of the whole plan.
• Gives details how the need arose and what the aims and targets are.
• Gives an overview of where the organization is at now in terms of markets, products
/services and customers.
• How to assure targets achievement.
2- Situational Analysis
I- External analysis - Macro-environment (PESTEL):
➢ Political: Stability, country priorities, political motivation, attitude to business.
➢ Economic: GNP, GDP, income per capita, currency and exchange rate.
➢ Social: Psychographic, attitude, behavior, culture.
➢ Technological.
➢ Environmental.
➢ Legal: Government rules, legalization, pricing.
➢ Demographic: Population, Age, Sex, No. of customers, Race, Religion.
II- External analysis - Micro-environment:
➢ Target market:
Size, growth, 3-5 years historical comparison, new market entries, customer
behavior and trends, rate of adoption.
➢ Products/Services:
Sales and M.S development, trends, marketing team time & staff allocation,
product / services contribution and net profit
➢ Competition:
Key competitors , size , M.S%, performance , product / services lines, positioning ,
management and staff capabilities , quality , customer perception , strategies ,
promotion spends.
➢ Distribution and intermediaries:
Pattern, size, weights, reputation and dynamics of each one
III- Internal analysis (5 M’s):
➢ Men: the capabilities of the workforce.
➢ Money: the financial situation of the organization.
➢ Machinery: the fixed assets.
➢ Materials: the supply chain processes.
➢ Markets: the market position of the organization.
IV- SWOT analysis
➢ To identify the market segment to penetrate and the reasons why.
➢ To define positioning and the message to
communicate and the reasons why.
➢ As a combination of the above, the strategy that will
assure success.
➢ Tactical objectives and their priority.
➢ Action plan that will meet organizational objectives.
 V- Marketing Research
It is the activity that gathers and analyzes the information business need to determine
customer’s needs growth opportunities and challenges, to make good decisions and to compete
effectively
Market research can drive:
1- Better customers care.
2- Ensuring that products/services are transformed for the better.
3- Increase customer’s engagement.
4- Helps understand what customers need and how they feel and think.
5- Understand the changes taking place and the impact this will have on the product/service.
Types of Marketing Research
1- Primary Research (First Hand Data)
➢ Quantitative through surveys
➢ Qualitative through Focus Groups
2- Secondary Research (Syndicated Data)
➢ Data already available
Steps of Marketing Research
1- Defining the problem and determining the present situation
2- Collecting research data; Primary & Secondary research.
3- Analyzing the research data
4- Setting different alternatives and recommendations
5- Choosing and implementing the best solution.
3- Setting Marketing Objectives
• C –SMART –ER
Challenging – Ethical - Recorded
• Financial objectives:
- Sales Revenue
- Profit objective
• Marketing objectives:
- M. S%
- Ranking
- Marketing strategy objectives
• Promotional objectives:
- Promotional message
4- Designing Marketing Strategies
• Objectives: Where we want to go
• Strategies: How can we reach there
• Filling the gap
- Improving productivity.
- Reducing costs (cost effectiveness)
- Stimulating increase current customers.
- Finding new customers groups.
- Product/Service development.
Market
Is composed of actual or potential buyers of a product, and the sellers who offer goods to
meet buyers’ needs
Market Segment Is a group of customers with similar needs
Strategy (STP)
• Segmentation:
The process of dividing the total market into groups or
segments that have relatively similar needs & characteristics
• Targeting:
Choosing the market segment to focus on; either
to concentrate on a niche segment or on multi-
segments
• Positioning:
The various techniques used by the organizations
to position the brand image in the mind of the
target market.
Reaching smaller market segments
• Niche marketing
It is the process of finding small but profitable market segments and designing custom-
made products for them.
• Relationship marketing
It is a marketing strategy with the goal of keeping individual customers over time by
offering them new products that exactly meet their requirements.
• The latest in technology enables sellers to work with buyers to determine their individual
wants and needs and to develop goods and services specifically designed for those
individuals.
Criteria of a segment
• Measurable You can measure its potential
• Accessible You are able to reach in a cost effective way
• Desirable Large enough to meet your objective
• Homogenous The need profile meets the satisfaction qualities of your product/service
The advantages of segmentation
• Clearly identifies the target group.
• Enables you to focus your promotion to gain the maximum effect (ROI).
• Creates a strong brand image.
• Helps in building up the customer loyalty.
Dangers of Segmentation
• Choosing a wrong segment.
• Choosing too small segment (fragmentation).
• Avoiding “stereotyping”: your product/service as being suitable for limited use
I.e. as second line for other product/service
• Avoiding segments which are crowded with competitors, here it is difficult to clearly
differentiate your product/service

Developing Positioning Statement

1- Your brand name identification.
2- In which target market segment and matching which need.
3- Its differential advantage (s) over the competitors.
Product/Services Differentiation
• Product/service differentiation is the creation of real or perceived differences.
• Actual differences are sometimes quite small, so marketers must create a unique,
attractive image.
• Customers develop strong loyalties over perceived differences.
The Business-to-Business Market (B2B)
Marketing of goods and services to
manufacturers, institutions, commercial operations,
and the government are called B2B marketing and it
is characterized by:
• Larger purchases.
• Fewer customers.
• Geographically concentrated.
• More rational buyers.
• Sales are direct.
• More personal selling.
• More functional packaging.

5- Developing Marketing Mix

Marketing Mix (4 P's) & (4 C's) & (7 P's)
Describes the way in which the company presents itself to the market
 I- What is a Product?
• It is basic concepts about goods, services, or ideas.
• A product is not just a physical object; it is a
bundle of benefits or values that satisfies the needs
of customers.
• The product may be a physical good (soft drink,
pair of jeans, automobile), a service (banking,
airlines, or legal assistance), a cause (buy Egyptian
products), or even a person (political candidate).
The Product / Service (Total Product Offer):
• It is everything that consumers evaluate about the
product or the service
• It is very important for the marketer to think
beyond the product and the services.
Product Differentiation
• It is the creation of real or perceived product differences.
• Actual product differences are sometimes quite small, so marketers must create a unique
and attractive image.
• Customers develop strong loyalties over perceived differences.
Classifying consumer goods
1- Convenience goods
Products that the consumer wants to purchase frequently and with a minimum effort
2- Shopping goods
Products that the consumer buys only after comparing value, quality, price, and style
from a variety of sellers
3- Specialty goods
Products with unique characteristics and brand identity
4- Unsought goods
Products that consumers are unaware of, haven’t thought of buying, or find that they need
to solve an unexpected problem
5- Industrial goods
Products used to produce or as components of other products; sometimes called business
goods or B2B goods
Packaging
Packaging plays an important role in customers’ evaluation
1- Protect goods.
2- Attract buyers.
3- Describe contents and provide information.
4- Explain benefits.
5- Indication of price, values and usage.
6- Provide dimensions and weight info.
Key Characters of services
1- Intangibility:
Tangible elements could be included.
2- Inseparability:
- Services are consumed as they are purchased
- Service provider & the service can’t be separated
3- Perish-ability:
Services are produced and consumed at the same
time, Cannot be stored for later usage.
4- Heterogeneity (Variability):
Difference in service delivery, each time you sell a service quality may differ.
5- Uncertainties:
Between what the customer actually wants and what the customer is actually going to be
provided with.

SERVQUAL Model
• A multi-dimensional research tool identifies five gaps
that may cause customers to experience poor service
quality.
• The SERVQUAL model was developed by
Parasuraman, Zeithamland Berry 1985-1988 in USA
1- Reliability:
The ability to perform the promised service
dependably and accurately
2- Assurance:
The knowledge level of employees and their ability to convey trust and confidence
3- Tangibles:
The appearance of physical facilities, equipment, personnel and communication materials
4- Empathy:
The provision of caring, individualized attention to customer
5- Responsiveness:
The willingness to help customers and to provide prompt service
II- The price:
• The amount the customer must give to purchase the product/service including the
benefits, time, and efforts.
• Perceived Value:
Customers often use price to determine the product’s/service’s value, suggesting a
relationship between price and perceived quality.
• The Price Objectives:
- Sale revenue objectives.
- Profit objectives.
- Market share objectives.
- Image.
- Building traffics.
- Social objectives.
• Pricing Strategies
1- Cost based pricing.
2- Demand based pricing.
3- Competitors based pricing.
4- Break-Even Analysis.
5- Skimming price strategy; priced high to make optimum profit
6- Penetration strategy; priced low to attract more customers
7- Bundling.
8- Psychological Pricing.
III- The Place (Channels of Distribution)
• It is the process of getting products / service to the places where they will be sold or used
(about achieving convenience).
• Marketing Channels are: “Sets of interdependent organizations involved in the process
of making a product or service available for use or consumption”.
• Channel Decisions involve the selection, management, and motivation of intermediaries
and other parties that help an organization make the product/service available to
customers.
• Intermediaries are organizations that assist in moving products from manufacturer or
services from provider to customers, and those are :
1- Agent (represents producer)
Agents maintain long-term relationships with producers they represent and are known as;
- Sales agents represent a single producer in a larger territory.
- Manufacturers’ agents may represent several manufacturers.
2- Broker (brings buyer and seller together and assists in negotiating transaction).
Brokers are usually hired on a temporary basis and they have no continuous relationship
with the buyer or seller.
3- Wholesaler (sells to other organizations).
• Full-service wholesalers
• Limited function wholesalers
a- Rack jobbers
Furnish racks or shelves full of merchandise to retailers, display products, and sell on
consignment
b- Cash-and-carry wholesalers
Serve mostly smaller retailers with a limited assortment of products
c- Drop shippers
Ship merchandise directly from a producer to a buyer as Jumia
4- Retailer (sells to ultimate consumers).
• The most useful intermediary for customers is the retailer.
• These are the firms who bring goods and services to neighborhoods and make them
available to consumers.
• Retailers can be differentiated through
- Price –Affordable prices (WALMART).
- Service –Customers first (UBER).
- Location –Good locations (MacDonald’s).
- Selection –Category killer (ToysRus).
- Entertainment –Value-added aspect (Mall of Egypt).
• Retail distribution strategies
- Intensive: puts products into as many retail outlets as possible, including vending
machines (used for convenience products such as PEPSI)
- Selective: sends products to only a preferred group of retailers (Adidas)
- Exclusive: sends products to only one retail outlet in a given geographic area (Jaguar)
- Electronic retailing: selling goods & services to ultimate consumers over Internet.
 IV- Promotion
It is all efforts by marketers to inform and remind people in the target market segment
about the product/services.
• The marketer must:
- Define the target market segment;
- Select methods to reach that segment;
- Design the right message for them;
- Make sure they get the message.
- Evaluate the response.
• The Promotional Mix:
1- Advertising
It is paid, non-personal communication of
information, usually persuasive in nature, learned
about the product/service details, benefits, price,
etc., by identified sponsor through various media (TV & Radio – Newspapers – Magazines –
Posters – Outdoors – Billboards - Internet banners)
2- Personal Selling
• Face-to-face presentation about the product/service to help complete the transaction.
• Face to face is the most expensive.
• Steps of the sales call:
1- Prospecting and qualifying.
2- Pre-approach.
3- Approach.
4- Make presentation.
5- Handling customer responses.
6- Closing the sales call.
7- Follow-up.
3- Sales Promotion
• It is the tool that stimulates customers purchasing interest by means of short-term
activities:
- Free sampling & Gifts.
- Discounts & Coupons.
- Bundling.
- Sponsoring events.
- Supporting charitable organizations.
• Pull VS Push Strategies
➢ Pull Strategy
It involves the manufacturer using advertising and promotion to induce consumers to ask
intermediaries for the product, thus inducing the intermediaries to order it.
➢ Push strategy
It involves the manufacturer using its sales force and trade promotion money to induce
intermediaries to carry, promote, push and sell the product to end user.
 4- Public Relations
- Management function that evaluates public attitudes, changes policies and procedures
accordingly, and executes a program of action and information to earn public
understanding and acceptance.
- Establish good relations with the media, community leaders, government officials, and
other stakeholders.
5- Direct Marketing
- It is an interactive system of marketing which uses one or more advertising media to
have a measurable response and/or transaction at any location.
- Marketer’s purpose of using direct marketing is to establish a “relationship with
customers” in order to initiate immediate and measurable responses.
- Integrated Marketing Communication (IMC)
▪ IMC is “the process of developing and implementing various forms of
persuasive communication programs with customers over time to influence
their behavior.”
▪ IMC combines all the promotional tools and activities into one
comprehensive and unified promotional strategy using a consistent unified
message about the product/service.

6- Action Plan
Describes what will be done, when, and who will
accomplish the tasks (Gantt chart).

7- Budgeting
1- Objective and task approach.
2- Incremental budgeting or historical approach:
Rise in past year budget according to the
income increase.
3- Percentage of Income method.
4- Competitive similarity.
5- Judgment methods: Managers are asked what income level will be attained if:
- no promotional support
- Promotion budget at half the current level
- Promotion budget at 50% more than the present level.
- Putting together the estimate allows a projection of the optimal level of expenditure.

8- Measures of Control
• Control against Objectives & Standards (KPIs) Key Performance Indicators.
• Management control –performance appraisal & benchmarking.
• Financial control –liquidity ratios, debt ratios.
• Efficiency control –the optimum value and ROI.
• Strategic control –is to measure marketing activities against objectives set.
• Critical success factors (CSF)
- An element that is necessary for an organization or project to achieve its mission.
Alternative term is key success factor (KSF).
- Critical success factors are those few things that must go well to ensure success for a
manager or an organization and, therefore, they represent those managerial or
enterprise areas that must be given special and continual attention to bring about high
performance. CSFs include issues vital to an organization's current operating activities
and to its future success

9- Contingency Plan
• A contingency plan is a course of actions designed to help an organization respond
effectively to a significant future event or situation that may or may not happen.
• A contingency plan is sometimes referred to as "Plan B", because it can be also used as
an alternative for action if expected results fail to materialize
• Ethics and Social Responsibility are Consideration for outcomes at three levels:
1- Individual
2- Organizational
3- Societal