session 1

Marketing &

Market Orientation

Marketing

Marketing is defined to be the process responsible for anticipation, identification ,

and satisfaction of customer needs through a profit

Marketing manager

He is the bridge between the company and the customers

His functions are (APIC)

Analysis

Planning

Implementation

Control

What are Consumers’ Needs, Wants, and Demands?

Needs Needs - state of felt deprivation including physical, social, and individual needs i.e hunger

WantsWants - form that a human need takes as shaped by culture and individual personality i.e. bread

DemandsDemands - human wants backed by buying power i.e. money

American Association of Advertising Agencies

This ad demonstrates that advertising can’t make consumers buy things that they don’t need despite high-pressure selling.

Push versus pull strategies

A push strategy involves the manufacturer using its sales

force and trade promotion money to induce intermediaries

to carry, promote, and sell the product to end user.

A pull strategy involves the manufacturer using

advertising and promotion to induce consumers to ask

intermediaries for the product, thus inducing the

intermediaries to order it

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing ConceptSocietal Marketing Concept

Marketing Management Philosophies

Production concept

The production concept holds that consumers will

prefer products that are widely available and

inexpensive.

Product concept

-The product concept holds that consumers will favor those products

that offer the most quality, performance, or innovative features

-In order to compete effectively, the product needs to have features that

appeal to individual consumers. In a product-oriented firm, the

products are designed to incorporate a large number of features in

order to meet the needs of a large number of consumers.

Unfortunately, the cost becomes too high for most people, and of

course people do not want to pay for features that they are unlikely

ever to use.

Selling concept

The selling concept holds that consumers and

businesses, will ordinarily not buy enough of the

organization’s products, therefore, the

organization must undertake aggressive selling

and promotion effort.

Marketing conceptThe marketing concept holds that the key to achieving organizational

goals consists of the company being more effective than competitors in

creating, delivering, and communicating superior customer value to its

chosen target markets.

Reactive marketing orientation: understanding and meeting consumers’ expressed needs.

Proactive marketing orientation: researching or imagining latent consumers’ needs through

a “probe-and-learn” process

e.g. Wal Mart

Marketing Concept Evolution

Production Concept Consumers prefer products that are widely available and inexpensive

Product Concept Consumers favor products that offer the most quality, performance, and

innovative features

Selling Concept Consumers will buy products only if the company aggressively promotes/sells

these products

Marketing Concept Focuses on needs/wants of target markets & delivering value better than

competitors

Marketing orientation and increasing customer

value British airways and American airlines may use

the same kind of aircraft to fly executives first class between New York and London but British airways (BA) beats American airlines by meeting customers’ needs for convenience and rest at every step of the journey

BA value delivery system includes a separate first class express check in and security clearance plus a pre-flight express meal service in the first class lounge so that time pressed executives can maximize sleep time on the plane without the distraction of in flight meals . BA was the first to put seats that recline into perfectly flat beds into first class section

Selling focuses on the needs of the seller ,

Marketing on the needs of the buyers

Marketing orientation

Marketing orientation

The 4 P’s & 4 C’s of the Marketing Mix

4 P’s Product Price Place Promotion

4 C’s Customer Solution Customer Cost Convenience Communication

Social responsibility

It is the obligation of any organization to increase its positive effects and decrease its negative effects on the society

Types

1-Stakeholder

2-Profit

3-Societal

The Avon walk for breast cancer

Avon is the largest corporate supporter of the breast cancer cause with more

than $ 250 million generated since the first program in

1992