Introduction

ProblemtoSolving
marketing
concepts
 Rules of the Game

Take
notes
Keep your time

Workshop Rules

Stay Turn off your mobile phone

involved
Learning methods
 Lets’ communicate and get
Your Expectations
What you’ll learn...
What is
marketing?

Marketing

What does it
involve?
What is the
marketing mix?
 Module 1

About
Marketing
Marketing in the 21
century

WHY
What is marketing?

• Marketing…
– is not ADVERTISING
– is not SELLING
– is not PROMOTION
• “The aim of marketing is to make
selling unnecessary.” Peter Drucker
(1973)
What is marketing?
• Businesses need to sell
products if they are to
achieve their objectives.

• Marketing is about ensuring

that businesses can sell as
many products as possible
in order to make profits.
What does it involve?

• Marketing is a very complex concept.

• It involves:
– Research
– Product design
– Setting prices
– Making sure the customer knows about products
– Choosing how and where to sell products
Why is it needed?

• Each year millions of new products are

launched:

Without careful
marketing these
products would
fail
“Marketing is the science and art of exploring,
creating and delivering value to satisfy the needs
and wants of a target market maintaining loyalty
at a profit.”

Professor Philip Kotler

 Needs Eat, Dress, Move

Wants Cheeseburger, Tuxedo, Car

Marketer
 This Is Demand

Wants Buying Power

“Demand”
First Task: Detect Needs
Marketing’s first task: discovering consumer needs

Organization’s
marketing department
Discover consumer needs

Information about needs

Potential consumers: The market

What is a Market?
Potential consumers make up a
market, which is:
1. People
2. with the Desire and
3. with the Ability to Buy a
specific product.
 Marketing’s Second Task: Satisfying Consumer Needs

Organization’s marketing department

Concepts
for Satisfy consumer needs
products Find the right combination of:
Discover consumer needs • Product
• Price
• Promotion
• Place

Information about needs Goods, services, ideas

Potential consumers: The market

The Target Market
Because the organization
obviously can’t satisfy all
consumer needs, it must
concentrate its efforts on
certain needs of a specific
group of potential consumers. This is the
target market -- one or more specific
groups of potential consumers toward
which an organization directs its
marketing program.
 Customer Development

Suspects

First-time Repeat
Prospects customers customers Clients Advocates Partners

Disqualified
prospects Inactive or
ex-customers
 Marketing Vs Sales

Is there a
difference?
The Marketing concept

Organizations must concentrate on the customer

and not the product or the company.

Organizations should revolve round the

customer and not the other way around.

The purpose of a business is to create and keep

a customer
 The selling concept

Focuses on matching your product or service features and

benefits in a way that suits the prospect.

sales process is any thing that you do to close the sale

and get signed agreement or contract.

It is ant thing that engages you with the prospect or

customer on a personal level rather than at a distance.
 The major role of marketing
and selling

People DO NOT buy products

people buy
 Module 2

Marketing
Management
Building Customer
Relationships
 Relationship Marketing
Relationship marketing is linking the organization
to its individual customers, employees,
suppliers, and other partners for their mutual
long-term benefits.

Mutual long-term benefits between the

organization and its customers require links to
other vital stakeholders-- including suppliers,
employees, and “partners” such as wholesalers
or retailers in a manufacturer’s channel of
distribution.
How Marketing became so
important?
 Four different orientations in the history of North American
business

Production era

Sales era

Marketing concept era

SocietalMarketing era

18601880 190019201940 196019802000

The Marketing Mix

• The tools available to a business to gain the

reaction it is seeking from its target market in
relation to its marketing objectives
• 7Ps – Price, Product, Promotion, Place, People,
Process, Physical Environment
• Traditional 4Ps extended to cope with today's
changing environment
The Marketing Mix
Product
Product
• The firm must come up with a product or
service that people will want to buy.

• It must fulfil some need

or want.

• It must be (or at least seem) unique.

Product
• Methods used to
improve/differentiate
the product and increase
sales or target sales more
effectively to gain
a competitive advantage e.g.
– Extension strategies
– Specialised versions
– New editions
– Improvements – real or
otherwise!
– Changed packaging
– Technology, etc. Image copyright: www.freeimages.co.uk
Activity 1
Product
• Methods used to
improve/differentiate
the product and increase
sales or target sales more
effectively to gain
a competitive advantage e.g.
– Extension strategies
– Specialised versions
– New editions
– Improvements – real or
otherwise!
– Changed packaging
– Technology, etc. Image copyright: www.freeimages.co.uk
 Augmented
Product or service or brand Core Product Actual Product
Product

BMW Freedom to travel A motor car  

Sheraton  Rooms Room service

Egypt Air  Flight An airline journey

Excitement and  T-shirts – photos

Zamalek Football Club
leisure with players

ALICO Insurance policy Finance

UNIONAIR  Cooling Warranty

Price
 Price
• The price must be one that
the customer thinks is good
value for money.
• This is not the same as
being cheap!
• Prices have a great
psychological effect on
• Pricing Strategy customers.
- International
– Comparative
– Cost plus
Price

• Pricing Strategy
• Importance of:
– knowing the market
– elasticity
– keeping an eye
on rivals

Image copyright: www.freeimages.co.uk

Promotion
Promotion

• Strategies
to make the
consumer aware of
the existence of a
product
or service
• NOT just advertising
The promotional message should

Grab Attention

Stimulate Interest

Create Desire

Promote Action
Place
Place

• The means by which products and

services get from producer
to consumer and where they can be
accessed by the consumer
– The more places to buy the product and the
easier it is made to buy it, the better for the
business (and the consumer?)
People
People

• People represent the business

– The image they present can be important
– First contact often human – what is the lasting image
they provide to the customer?
– Extent of training and knowledge
of the product/service concerned
– Do staff represent the desired culture
of the business?
People

• People represent the business

– The image they present can be important
– First contact often human – what is the lasting image
they provide to the customer?
– Extent of training and knowledge
of the product/service concerned
– Mission statement – how relevant?
– Do staff represent the desired culture
of the business?
People

• People represent the business

– The image they present can be important
– First contact often human – what is the lasting image
they provide to the customer?
– Extent of training and knowledge
of the product/service concerned
– Mission statement – how relevant?
– Do staff represent the desired culture
of the business?
Process
Process
• How do people consume services?
• What processes do they have to go through
to acquire the services?
• Where do they find the availability
of the service?
– Contact
– Reminders
– Registration
– Subscription
– Form filling
– Degree of technology
Physical Environment
Physical Environment
• The ambience, mood or physical presentation of the environment
• Packaging.
• Internet/web pages.
• Paperwork (such as invoices, tickets,…..).
• Brochures.
• Furnishings.
• Uniforms.
• Business cards.
• The building itself (such as prestigious offices or scenic
headquarters).
• Mailboxes and many others . . . . . .
Physical Environment

• The ambience, mood or physical presentation of

the environment
– Smart/shabby?
– Trendy/retro/modern/old fashioned?
– Light/dark/bright/subdued?
– Romantic/chic/loud?
– Clean/dirty/unkempt/neat?
– Music?
– Smell?
 Stages in Consumer Decision
Word-
Process
of- Mouth

Awareness
Advertising

Interest
Channel

Decision

Product /
Service
Action

Price
Satisfaction
The Marketing Mix
• Blend of the mix depends upon:
• Marketing objectives
• Type of product
• Target market
• Market structure
• Rivals’ behaviour
• Global issues – culture/religion, etc.
• Marketing position
• Product portfolio
– Product lifecycle
– Boston Matrix
Marketing Model
Target Market
Aware

Intention to Understand
Purchase
Believe

st
Co
Above the Line Want

Below the Line Find

Point of Purchase Buy Revenue

Use
Experience
Value
Prefe
r
Behavior Loyal
Module 3

Marketing Management Philosophies

Production
Production

Sales
Sales

Competing Market
Market
Competing
Philosophies
Philosophies
Societal
Societal Marketing
Marketing
Marketing
Marketing Management
Management Philosophies
Philosophies

Philosophy
Philosophy Key Ideas

•
Production
Production Focus on efficiency of internal operations

Focus on aggressive techniques for

Sales
Sales overcoming customer resistance

Market Focus on satisfying customer needs and wants

Market
Focus on satisfying customer needs and
Societal
Societal wants while enhancing individual and
societal well-being
The Marketing Concept
Focus on
Customer Wants
and Needs

Integrate Organization’s Achieve Organization’s

Long Term Goals by
Activities to Satisfy Satisfying Customer
Customer Needs and Wants and Needs
Wants
 Comparing Sales and Market
Orientations
Organization’s Firm’s For Primary Tools to
Focus Business Whom? Profit Goal? Achieve

Inward Selling goods Everybody Maximum Primarily

Sales and services sales promotion
Orientation volume

Outward Satisfying Specific Coordinated

groups Customer use of all
Market wants and satisfaction
needs of people marketing
Orientation activities
Developing Competitive Advantage

Competitive
Advantage

Customer Customer
Value Satisfaction

Customer
Relationships
 Value and Satisfaction

Expectation Performance Expectation Performance

8 10 10 8

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

Why so many products fail in Egypt?