Lecture 1

17/5/2003

Managerial Marketing
Chapter 1 and Chapter 8

What is Marketing?
Deals with customers, organizations (internal departments) and business
environment.

E-business:
- It benefits both consumers and companies.
- Fasten, less cost, changing ideas and experience about consuming
certain products.
- The percentage of people buying from the internet is much lesser than
those buying from the market (they don’t trust the internet) because they
want to react physically with the providers.

The scope of marketing:

- Marketing is the task of creating, promoting, and delivering goods and
services to consumers and businesses.
- A social and managerial process by which individuals obtain what they
need.
- We can market places, organizations, events , information (schools, and
research), ideas (if we want a sponsor for our training program).
- Marketing people are involved in marketing 10 types of entities: goods,
services, experiences, events, persons, places, properties, organizations,
information, and ideas.

Marketing concepts and tools:

- Market:
economists describe a market as a collection of buyers and sellers who
transact over a particular product or product class; but marketers view the
sellers as constituting the industry and the buyers as constituting the
market.
Market cover various groups of customers:
need market diet-seeking market.
product market shoe market.
geographic European market.
demographic (age/ style/ gender) Youth.
And sometimes extend the concept to cover other markets, such as voter
markets, labor markets, and donor markets

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 - Metamarket: describe a cluster of complementary products and services
that are closely related in the minds of consumers but are spread across a
diverse set of industries.
Ex. if you think about buying a car, you will think about other relative
sides like the finance side (bank lean), car dealers, insurance companies,
mechanics, spare parts dealers, services shop, etc.
- Market place: is physical, as when one goes shopping in a store.
- market space: is digital, as when one goes shopping on the internet.

Market Segmentation:
Identifying and profiling distinct groups of buyers who might prefer or
require varying products and services mixes.
(divide the market into different groups)

Market Targeting:
After segmentation we start choosing the segment that presents the
greatest opportunity.

Market offering and positioning:

- Developing and offering to the chosen segment, and positioning this
offer in the minds of the consumers as delivering some central benefit(s).
“The art of drawing in the consumers’ minds”

Positioning statement:
To [targeted consumer] – brand [benefit] - why

To the young Mountain dew More

people who have energy caffeine
little time to sleep

Exercise: choose a product and write the positioning statement (used

internally in an organization).

Marketing Channels:
- Channels used to reach a target market (channels connect the marketer
to the target buyers)
*Communications channels: deliver and receive messages from target
buyers, and include newspapers, magazines, TV, mail, internal, etc,.
*Distribution channels: to display, sell, or deliver the physical product or
services(s) to the buyer or user. (means to distribute goods and services).
They include distributors, wholesalers, retailers, and agents.

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*Services channels: to carry out transactions with potential buyers, they
include warehouses, transportation companies, banks, and insurance
companies that facilitate transactions.

Supply chain:
The channels stretching from the raw material to the component to the
final product that are carried to the final buyers.

Competition:
The actual and potential rival offering and substitutes that a buyer might
consider.
Levels of competition based on the degree of product substitutability:
*Brand competition: BMW and Mercedes.
*Industry competition: BMW and all cars.
*Form competition: BMW and all means of transportation.
*Generic competition: BMW competing

The Marketing Mix (4Ps)

- Marketing mix is a set of tools that the company uses to pursue its
marketing objectives in the market.
- Product: Variety, quality, design, features, brand, package, size, and
warranty
- Promotion: sales promotions, advertising, public relations, (direct
marketing sales force).
- Price: List price, discounts, allowances, payment terms.
- Place: Channels , coverage, assortment locations, inventory.

The marketing concept:

3 questions have to be answered:
1) who are our customers?
2) What are their needs?
3) What do we have to do to gain their preference?

The marketing concept rests on four main pillars:

- Target your market.
- Discover customers’ needs.
- Use integrated marketing.
- Make profits through customers’ satisfaction.