Leyla T.

Gasimzade
 COURSE MATERIALS
 Marketing management / Philip Kotler, Kevin

Keller
 Marketing management : text and cases /

David Loudon, Robert Stevens, Bruce Wrenn.

 Marketing Management – millennium edition/

Ph.Kotler
 Essentials of marketing Research/ Paurav

Shukla

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 1. Defining Marketing
 2.
 3.
 4.
 5.
 6.
 7.
 8.
 9.

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 First of all, it is important to distinguish
between a social and a managerial definitions
of marketing.
MARKETING

SOCIAL MANAGERIAL
DEFINITION DEFINITION

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 According to a social definition, marketing is
a societal process by which individuals and
groups obtain what they need and want
through creating, offering and exchanging
products and services.

 As a managerial definition, marketing has

often been described as “’the art of selling
products”.

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

 “The aim of marketing is

to make selling superfluous…”
 Peter Drucker

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 Peter Drucker once said that the single most
important thing to remember about any
enterprise is that there are no results inside
its walls - the result of business is a satisfied
customer.

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 So, marketing management is the process of planning
and executing the conception, pricing, promotion and
distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational
goals.

 Marketing managers must make major decisions such as

what features to design into new product, what prices to
offer customers, where to sell products and how much to
spend on advertising or sales. They must also make more
detailed decisions such as the exact wording or colour
for new packaging.

 Many companies have now created a Chief Marketing

Officer (CMO), position to put marketing on a more equal
footing with other C-level executives such as the Chief
Executive Officer (CEO) and Chief Financial Officer (CFO).

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 We can distinguish 3 stages through which
marketing practice might pass:

1. entrepreneurial marketing
2. formulated marketing
3. radical marketing

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 1. goods
 2. services
 3. experience
 4. events
 5. persons
 6. places
 7. properties
 8. organizations
 9. information
 10. ideas

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 ! The difference between brown and white
goods

 ! Types of commodities

 ! Look at some commodity prices and decide

they rose or fell over the last 3 months

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 CATERING (restaurants. bars)
 COMPUTER SOFTWARE (programs for computer)
 FINANCIAL SERVICES (banking, insurance)
 HEALTHCARE (medical care)
 LEISURE (sport, theme parks)
 MEDIA (books, newspapers, film, television)
 PROPERTY OR REAL ESTATE (buying, selling amd
managing buildings)
 RETAIL (shops)
 TELECOMMUNICATION (phone, Internet services)
 TOURISM (travel and holidays)

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 1. Real property or real estate ( are bought and sold by real
estate agents)

2.Financial property (stocks and bonds – are bought and sold
by investment banks and companies)
 Stocks – represents a share of ownership in a corporation. Companies issue them
and sell to the public to raise funds to finance their activities. If you own 1 share
of common stock in a company that issued 1 million shares, you are entitled to 1
millionth of the firms net income and assets. Companies make periodic payments
on stocks called dividends.
 Bonds – debt security that promises to make payments periodically for a specified
period of time. The bond market is especially important – it enables corporations
and governments to borrow to finance their activities in order to pay to the holder
fixed amounts at regular interval until the maturity date.
 Primary markets are not well-known to the public because the initial selling often
takes place behind closed door. Important financial institution that assists in the
initial stage of securities is investment bank. It dies this by underwriting securities
– guarantees a price for securities and sells them to the public.
 Secondary markets are NYSE, NASDAQ, foreign exchange markets.

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 A marketer is someone who seeks a response
from another party, called the prospect. If
two parties are seeking to sell something to
each other, we call them both marketers.
 Marketers are skilled in stimulating demand

for company’s products. Marketers are

responsible for demand management.

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 1. negative demand
 2. nonexistent demand
 3. latent demand
 4. declining demand
 5. irregular demand
 6. full demand
 7. overfull demand
 8. unwholesome demand

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 Traditionally, a market was a physical place
where buyers and sellers gathered together
to buy and sell goods.
 Economists describe market as a collection of

buyers and sellers who transact over the

particular product or product class.

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 AEROSPACE (planes, space vehicles)
 CARS
 COMPUTER HARDWARE (computers, printers)
 CONSTRUCTION (buildings)
 DEFENSE (arms, weapons)
 FOOD PROCESSING (canned, frozen food)
 HOUSEHOLD GOODS (washing machines, fridges)
 PHARMACEUTICALS ( medicines)
 STEEL
 TEXTILES (cloth and clothes)

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In figure 1
five basic markets and

their connecting flows

are shown.

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 2. RESOURCES 7. RESOURCES
(raw materials) RESOURCE (labour)
1. MONEY markets 8. MONEY

T S
G M
T
SM
MANUFACTURER GOVERNMENT CONSUMER
markets markets markets
R TG S

T
S
G
M

4.
MONEY 9. MONEY
INTERMEDIARY
markets
3. GOODS AND SERVICES 5. GOODS AND
SERVICES

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 Each nation’s economy and the global
economy consists of complex interacting sets
of markets linked through exchange
processes.
 On the other hand, marketers often use the
term market to cover various groupings of
customers. They talk about need markets
(diet-seeking market), product makers (the
shoe market), demographic markets ( the
youth market), and geographic markets (the
French market).

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 1. Target Markets and segmentation
 2. Marketers and prospects
 3. Needs, wants and demands
 4. Product or offering
 5. Value and satisfaction
 6. Exchange and transaction
 7. Relationships and networks
 8. Marketing channels
 9. Supply Chain
 10. Competition

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 Market segmentation
 Market offering
 Marketplace and marketspace
 Metamarket

 ? – What chains does the parenting and baby

care market, the wedding market consist of?

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 We can distinguish among five types of needs:
 1. stated needs (customer wants an inexpensive
car)
 2. real need (customer wants a car whose
operating cost, not the initial price is low)
 3. unstated need ( the customer expects good
service from the leader)
 4. delight needs (the customer would like the
dealer to include an onboard navigation
system)
 5. secret needs (the customer wants to been
seen by friends as a savvy consumer )

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 To reach a target market, the marketer uses 3
kinds of marketing channels:
 1. communication channels
 a. dialogue channels (e-mail, toll free
numbers)
 b. monologue channels ( ads)
 2. distribution channels
 a. physical channels
 b. trade channels
 3. selling channels

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 We can broaden the picture by distinguishing
4 levels of competition:
 1. brand competition – company sees its competitors as other
companies that offer similar products and services (Volkswagen
might see its major competitor as Toyota)
 2. industry competition – company sees its competitors as all
companies that make the same product or class of products
(Volkswagen would be competing against all other car manufacturers)
 3. form competition - company sees its competitors as all companies
that manufacture products that supply the same service (Volkswagen
mould see itself competing against manufacturers of all vehicles,
such as motorcycles, bicycles and trucks)
 4. generic competition – company sees its competitors as all
companies that compete for the same consumer dollars (Volkswagen
would see itself competing with companies that sell major consumer
durables, foreign vacations and new homes)

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 Marketers use numerous tools to elicit the
desired responses from their target markets,
These tools constitute a marketing mix – the
set of marketing tools that the firm uses to
pursue (follow) its marketing objectives in the
target market.
 McCarthy classified these tools into four

broad groups, that called the four Ps of

marketing.

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 Marketing is often defined in terms of:
 PRODUCT – deciding what products or services to
sell
 PRICE – setting prices that are attractive to
customers and that are profitable for the
company
 PLACE - finding suitable distribution channels
and outlets to reach these customer groups
 PROMOTION - all the activities, not just
advertising, used to support the product –
everything from pre-sales information to after-
sales service

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 Goods can refer to the materials and
components used to make products or the
products that are made. Consumer goods
that last a long time, such as cars and
washing machines are consumer durables.

 Consumer goods such as food products that

sell quickly are fast moving consumer goods
(FMCG).

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 Microwave ovens
 Cotton
 Cars
 Hamburgers
 Soap powder

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 - is all the activities supporting the sale of a
product, including advertising.
 Promotion describes:
 1. special offer such as discount or reduced price
 2. a free sample – a small amount of product to

taste or try
 3. a free gift - given with the product
 4. competitions with prizes
 Supermarkets give loyalty cards to customers:

the more you spend, the more points you get to

exchange them for free goods

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 - is where you buy one product and you are
recommended to buy another product That
may go with it

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 Many supermarkets run competitions and
offers to encourage people to buy from them
 Yesterday, I bought 2 kilos of oranges for half

the usual price

 I also bought some coffee, which came with a

free mug

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 Robert Lauterborn suggested that the sellers’
four Ps correspond to the customers’ four Cs.
 So, if we want to look at the marketing effort

from the point of view of customers, rather

than the company, then we consider the 4 Cs:
 CUSTOMER SOLUTION
 CUSTOMER COST
 CONVENIENCE
 COMMUNICATION

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 The aim to find a solution to a customer
problem by offering the right combination of
products and services to satisfy customer
needs.
 The price paid by the customer for the

product. It includes the price related to not

buying another product of the same type. For
ex., someone who buys a sophisticated
mobile may not then have the money to buy a
laptop computer that they wanted

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 - distributing products in the way that is most
convenient for each type of customer (deciding
how many new shops to open and where they
should be).

 Communication with the customers – customers

are informed about products through advertising
and telephone helplines. This is a good way for
marketing managers to find out more about what
customers want, and to change and improve their
offering, and to get ideas for new offerings.

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 THINKING OF THE MARKETING MIX IN 4 Cs
TERMS HELP TO MAINTAIN A TRUE CUSTOMER
OREINTATION OR CUSTOMER FOCUS.

 Winning companies are those that meet

customer needs economically and
conveniently and with effective
communication.

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 EXERCISE 1
 Top Management
  Complete the text using the words below:
  Achieve
 Allocating
 Balance
 Deal with
 Develop
 Employed
 Establish
 Follow
 Require
 Set…………………………………………………………………….

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 EXERCISE 2
 The Board of Directors
  Complete the text using these words:
 appointed
 attacked
 combined
 defined
 constituted
 reviewed
 supervised
 Supported……………………………………………………………….

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 EXERCISE 3
 An organization chart
  
 Read the whole text and then draw the

organization chart…………………………………

 EXERCISE 4
 Match each task to the manager most likely

to be responsible for doing it…………………..

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 EXERCISE 5
 Company Board
 Who’s who on this company board?

Complete the diagram…………………………

 EXERCISE 6
 Companies in particular industries
 Match each problem to one of the industries

(indicate service or manufacturing)…………..

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 EXERCISE 7
 Complete the crossword ( industries)

 EXERCISE 8
 Read the article and answer the questions

about marketing mix ( 4 Ps)

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 EXERCISE 9
 Find which P of the marketing mix the woman

is referring to in each of these statements…..

 EXERCISE 10
 A mobile phone customer is talking about a

recent mobile phone purchase. Find which C

he is referring to in each of these statements

 EXERCISE 11
 Are these statements true or false…………….

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THE END
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