Marketing Instructor Abdel Fatah Afifi MA&T, MBA, PCT, ACPA 2 nd Semester 2009/2010

Afifi, UP, Marketing, 2nd Sem. 09/102  Marketing: Using Exchanges to Satisfy Needs MarketingExchanges  The Diverse Factors Influencing Marketing Activities WHAT IS MARKETING?

Afifi, UP, Marketing, 2nd Sem. 09/103 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.

Afifi, UP, Marketing, 2nd Sem. 09/104 Some industries and organizations remain at the production-orientation stage. 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 1800sEarly 1930sMid-1950s

Afifi, UP, Marketing, 2nd Sem. 09/105 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.

Afifi, UP, Marketing, 2nd Sem. 09/106 Customer orientation Organization’s performance objectives Coordinated marketing activities Customer satisfaction Organizational success Marketing Concept

Afifi, UP, Marketing, 2nd Sem. 09/107 Organization’s marketing department relates to many people, groups, and forces

Afifi, UP, Marketing, 2nd Sem. 09/108  Discovering Consumer Needs The Challenge of Launching Winning New Products Consumer Needs and Consumer Wants What a Market Is?Market HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

Afifi, UP, Marketing, 2nd Sem. 09/109 Marketing ’ s first task: discovering consumer needs

Afifi, UP, Marketing, 2nd Sem. 09/1010  Satisfying Consumer Needs  Target market Target market The Four Ps: Controllable Marketing Mix Factors Marketing Mix The Uncontrollable, Environmental Factors Environmental Factors HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS

Afifi, UP, Marketing, 2nd Sem. 09/1011  A Marketing Program for Rollerblade Expanding the Market for Rollerblade Skates Exploiting Strengths in Technology THE MARKETING PROGRAM: HOW CUSTOMER RELATIONSHIPS ARE BUILT

Afifi, UP, Marketing, 2nd Sem. 09/1012 Rollerblade In-line Skate Segment: Women

Afifi, UP, Marketing, 2nd Sem. 09/1013 Rollerblade In-line Skate Segment: Kids

Afifi, UP, Marketing, 2nd Sem. 09/1014 Marketing programs for two of Rollerblade ’ s skates, targeted at two distinctly different customer segments: fast-growing kids and fitness skaters.

Afifi, UP, Marketing, 2nd Sem. 09/1015  Evolution of Market Orientation Production Era Sales Era The Marketing Concept EraMarketing Concept The Market Orientation EraMarket Orientation  Customer relationship management (CRM) Customer relationship management (CRM) HOW MARKETING BECAME SO IMPORTANT

Afifi, UP, Marketing, 2nd Sem. 09/1016 Four different orientations in the history of American business

Afifi, UP, Marketing, 2nd Sem. 09/1017  Ethics and Social Responsibility: Balancing the Interests of Different Groups Ethics Social Responsibility  Societal marketing concept Societal marketing concept  Macromarketing Macromarketing  Micromarketing Micromarketing HOW MARKETING BECAME SO IMPORTANT

Afifi, UP, Marketing, 2nd Sem. 09/1018  The Breadth and Depth of Marketing Who Markets? What is Marketed? HOW MARKETING BECAME SO IMPORTANT

Afifi, UP, Marketing, 2nd Sem. 09/1019 Hermitage Museum Outside View

Afifi, UP, Marketing, 2nd Sem. 09/1020 Hermitage Museum Statue

Afifi, UP, Marketing, 2nd Sem. 09/1021  The Breadth and Depth of Marketing (cont) Who Buys and Uses What is Marketed?  Ultimate consumers Ultimate consumers  Organizational buyers Organizational buyers Who Benefits? How Do Consumers Benefit?  Utility Utility HOW MARKETING BECAME SO IMPORTANT

Afifi, UP, Marketing, 2nd Sem. 09/1022 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.

Afifi, UP, Marketing, 2nd Sem. 09/1023 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.

Afifi, UP, Marketing, 2nd Sem. 09/1024 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.

Afifi, UP, Marketing, 2nd Sem. 09/1025 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.

Afifi, UP, Marketing, 2nd Sem. 09/1026 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.

Afifi, UP, Marketing, 2nd Sem. 09/1027 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.

Afifi, UP, Marketing, 2nd Sem. 09/1028 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.