Marketing

Management
By: Saleamlak Mola (PhD)

Marketing Management By: Dr. Saleamlak M. 0912183604

 course Description and Outcomes

• This course addresses how to design and implement the best

combination of marketing efforts to carry out a firm's strategy in its
target markets.
• Specifically, this course seeks to develop the student’s
• understanding of how the firm can benefit by creating and delivering
value to its customers, and stakeholders, and
• skills in applying the analytical concepts and tools of marketing to
such decisions as segmentation and targeting, branding, pricing,
distribution, and promotion.
Marketing Management By: Dr. Saleamlak M. 0912183604
course Description and Outcomes

At the completion of the course, students will be able to:

1) Demonstrate an understanding of marketing and the marketing process.
2) Identify the major trends and forces that are changing the marketing landscape.
3) Locate, interpret, and evaluate marketing information for decision making.
4) Evaluate the obstacles and challenges in building and managing brands
5) Analyze the changes in marketing strategies during the product’s life cycle.
6) Evaluate the internal and external forces that influence an organization’s marketing strategy.
7) Assess the attractiveness of a market segment.
8) Evaluate the roles of ethics in marketing activities.
9) Apply the tools and concepts learned in the course to develop a customer-driven marketing strategy and
mix.

Marketing Management By: Dr. Saleamlak M. 0912183604

 What is marketing
Part I:
Understanding the marketplace
Understanding and customer needs
Marketing and
Designing a customer value driven
The Marketing marketing strategy
Process
Managing customer relationships
and capturing customer value

Marketing Management By: Dr. Saleamlak M. 0912183604

 Analyzing the marketing
environment
Part Managing marketing information to
II:Understanding gain customer insight
the marketplace
and customer Consumer market and bung
behavior
value
Business market and bung behavior

Marketing Management By: Dr. Saleamlak M. 0912183604

Part III: Market segmentation

Market targeting

Defining a Differentiation and positioning

customer Product, service and Brands: Building customer value

Developing product and managing product lifecycle

driven- Product Pricing

strategy Marketing Channels: Delivering Customer Value

Engaging customers and communicating customer Values

and mix Creating Competitive Advantage

Marketing Management By: Dr. Saleamlak M. 0912183604

 Textbook
Kotler, P., & Armstrong, G. (2018). Principles of marketing. Pearson education.

Marketing Management By: Dr. Saleamlak M. 0912183604

Books
 Kotler, Philip, (2001) Marketing Management: 10th ed. (The Millennium Edition), Prentice-Hall.
 Kotler, Philip, (1998) Marketing Management: Analysis, Planning, Implementation and Control. 6th
ed. Hnglewood cliffs, Prentice –Hall.
 Baker, James, (1990) Marketing: An Introductory Text, 4th ed, London, Macmillan Education Limited.
 McCarthy, E. Jerome. And William D. Perreault (1987), Jr. Basic Marketing. 9th ed. Hom Wood,
Richard D. Erwin, Inc.
 J. Stanton, William. Kenneth E. Miller, and Roger A. Laton. (1985) Fundamentals of Marketing.
 Jobber, David, (1995) Principles and Practices of Marketing, England, McGrow-Hill Book Company
Europe.

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 Articles Analysis (15%) - Individual
Assignment

Book Chapter Analysis and presentation

Method of (25%) - Group Assignment

Evaluation Reflections on Industry Experience

sharing (10%) – Group Assignment-

Final Examination (50%)

Marketing Management By: Dr. Saleamlak M. 0912183604
 CHAPTER ONE
Understanding Marketing and The
Marketing Process

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 1. What is Market?
2. What is marketing?

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Introduction
▪ Production and Marketing of goods and services are the
essence of economic life in any society.

▪ All organizations perform these two basic functions to

satisfy their commitments to their stakeholders – the
owners, the customers and the society, at large.

▪ They create a benefit that economists call utility which is

the want-satisfying power of a good or service.
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Introduction
▪ Marketing is an activity which can be seen every where

▪ Any time you try to by something , marketing has a role to play

▪ It is viewed by many as being advertising or sales promotion or

marketing research.

▪ But it is a concept much larger than any of them or all of them

put together.

▪ So, what is marketing?

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Market?
▪ A market is a location

▪ Market means a place

▪ Market refers to an arrangement, whereby buyers and sellers come in

contact with each other directly or indirectly, to buy or sell goods.

▪ Thus, the above statement indicates that face to face contact of buyer
and seller is not necessary for market.
E.g. stock or share market,

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 Marketing?
▪ Process by which individuals and groups obtain what they need and want through
creating and exchanging products and value with others.

▪ Marketing is the delivery of customer

satisfaction at a profit.

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Goal of marketing?

1. To attract new customers by promising superior

value and

2. To keep current customers by delivering satisfaction.

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 What is the difference between marketing
and selling?

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Marketing Vs Selling?

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 Marketing Process

Marketing Management By: Dr. Saleamlak M. 0912183604

 Core Concepts of Marketing?

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20
What Motivates a Consumer to Take Action?
▪ is a state of felt deprivation of the basic human
requirements such as food, air, water, clothing and
shelter.
▪ are basically specific satisfiers of human needs.
▪ are wants for specific products backed by buying
power.

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What Will Satisfy Consumer’s Needs and Wants?

▪ is any offering that can satisfy a need or want.

▪ is also any thing that can be offered to a market for
attention, acquisition, use, or consumption and that
might satisfy a need or want.

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What Will Satisfy Consumer’s Needs and Wants?

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How Do Consumers Choose Among Products and Services?

▪ Value is the consumer's estimate of the product's

overall capacity to satisfy his or her needs.
▪ It is a measure of the usefulness of a product.
▪ It is a measure of the quantitative worth of a
product to attract other product for exchange.

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How Do Consumers Choose… ?
An increase in the value of the customer offering can be done by:
1. Raising Benefits
2. Reducing costs
3. Raising benefits and reducing costs
4. Raising benefits by more than the raise in costs, or
5. Lowering benefits by less than the reduction in costs

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How Do Consumers Choose… ?

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How Do Consumers Choose… ?
▪ Satisfaction is the level of contentment that the customer obtain
by consuming the product.
▪ The level of satisfaction is measured by using utility, which is of
four type:
▪ Form utility
▪ Place utility
▪ Possession utility
▪ Time utility

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How do Consumers Obtain Products and Services?
▪ Is the act of obtaining a desired product from someone by offering something of
value in return.
▪ Exchange is only one of many ways to obtain a desired object.
▪ The following are the major conditions to be met for existence exchange.
▪ There are at least two parties.
▪ Each party has something that might be of value to the other party.
▪ Each party is capable of communication and delivery
▪ Each party is free to accept or reject the exchange offer.
▪ Each party believes it is appropriate or desirable to deal with the other party.

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How do Consumers Obtain …?
Transaction:
▪ It takes place when the two parties reach into an agreement.

▪ A transaction (a trade of values between two parties) is marketing’s unit of

measurement. Most transactions involve money, response and action.

▪ A transaction also involves:

▪ At least two things of value, ▪ A time of agreement, and

▪ Agreed upon condition, ▪ A place of agreement.

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How do Consumers Obtain …?
Relationship Marketing:
▪ aims to build long-term mutually satisfying relations with
key parties-
❖ customers,
❖ suppliers,
❖ distributors
▪ to earn and retain their long-term preference and Business.

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How do Consumers Obtain …?
▪ A marketing Network:
▪ consists of the company and its supporting stakeholders
▪ customers,
▪ employees,
▪ suppliers,
▪ distributors,
▪ university researchers and others
▪ with whom it has built mutually profitable business relationships.

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Who Purchases Products and Services?

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Marketing Management?
Marketing Management
Implementing programs to create exchanges with target buyers to achieve organizational
goals

Demand Management
Finding and increasing demand, also changing or reducing demand

Profitable Customer Relationships

• Attracting new customers and
• Retaining current customers

Marketing Management By: Dr. Saleamlak M. 0912183604

Demand States and Marketing Tasks
1. Negative Demand
▪ Majority of the market dislikes the product and avoids it.
▪ Marketing task:
o Analyzing why the market dislikes the product
o Developing marketing programs that can change consumers beliefs and
attitudes consisting of:
✓ Product redesign,
✓ Lower prices, and
✓ More positive promotion.

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Demand…
2. No Demand
▪ Lack of awareness or Interest in a product.
▪ Marketing task: To find ways to connect the
benefits of the product with the person’s
natural needs and interests.

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Demand…
3. Latent Demand
▪ There exists a strong need that can't be satisfied by
existing products.
▪ Marketing task: To measure the size of the
potential market and develop goods and
services to satisfy the demand.

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Demand…
4. Declining Demand

▪ The product has a lower demand in the market.

▪ Marketing tasks: To reverse declining demand

through creative remarketing.

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Demand…
5. Irregular Demand
▪ The product has a varying demand by season, day
or hour.
▪ Marketing task: To find ways to alter the pattern of
demand through flexible pricing, promotion and
other incentives.

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Demand…
6. Full demand
▪ The product has a satisfying level of demand in the market.
▪ Marketing task:
▪ To maintain the current level of demand in the face of
changing consumer preferences and increasing
competition.
▪ To maintain or improve product quality and continually
measure consumer satisfaction.

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Demand…
7. Overfull Demand
▪ The product has more demand than can be handled
or delivered in the market.
▪ Marketing task: To find ways to reduce demand
temporarily or permanently via raising prices and
reducing promotion and services.

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Demand…
8. Unwholesome demand
▪ The demand for unhealthy or dangerous products.
▪ Marketing task: To get people who like something to
give it up, using fear message, price hikes, and reduced
availability.

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Marketing Management Philosophies ?
▪ The marketing management philosophies are those that direct the marketing
operation of organization.

▪ It guides marketer to plan and implement their activities.

▪ The five marketing philosophies that guide marketers’ behavior are:

1. Production
2. Product
3. Selling
4. Marketing
5. Societal marketing

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…Philosophies ?
1. Production
▪ This concept works on an assumption that consumers prefer a
product which is inexpensive and widely available.
▪ Managers of production - oriented businesses concentrate on
achieving high production efficiency, low costs, and mass
distribution.

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44
 …Philosophies ?
2. Product
▪ customers prefer products of ‘greater quality’ and
▪ ‘price and availability’ doesn’t influence their purchase decision.

Examples
• Companies in the technology industry.
• Companies having an advantage of monopoly.

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45
 …Philosophies ?
3. Selling
▪ focuses on making an actual sale of the product.
▪ Consumers and businesses, if left alone, will ordinarily not buy
enough of organization’s products.
▪ Focus: undertake an aggressive selling and promotion effort.

• Examples
• Companies with unsought goods

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 …Philosophies ?
4. Marketing
▪ determining the needs and wants of target markets and delivering the desired satisfaction.

▪ The Marketing concept rests on four pillars: target market, customer needs, Integrated
marketing, and profitability.

◼ Examples

▪ Companies in perfect competition.

▪ Companies who want to stay in the market for a long time

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47
 …Philosophies ?
5. Societal marketing
▪ The societal marketing concept is the newest of the five marketing management
philosophies.
▪ The societal concept calls upon marketers to balance three considerations in
setting their marketing policies.
• Company profits
◼ Examples
• Customers wants
▪ Companies who want to stay in the
• Society’s interest market for a long time

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Types of Market
A. Consumer Markets:- consist of individuals and households that buy goods and services for personal
consumption.

B. Business/Industrial Markets:- buy goods and services for further processing or for use in their
production process.

C. Reseller Markets:- buy goods and services to resell at a profit.

D. Government Markets:- are made up of government agencies that buy goods and services to produce
public services or transfer the goods and services to others who need them.

E. International Markets:- consist of these buyers in other countries, including consumers, producers,
resellers, and governments.
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