Marketing Core Concepts

Marketing perform 2 primary task

1. Discovering customers needs.

2. Satisfying those needs.

Needs

Basic human requirements; a state of felt deprivation.

Do marketers create need?

Wants

A specific object that can satisfy a need

Demands

Wants for specific products backed by the affordability

Marketing Debate
Does Marketing Create or Satisfy Needs?!!

Marketing Mix (4Ps)

    4ps                                                                4Cs

Product                                                       Customer solution

Price                                                            Customer cost

Place                                                           Convenience

Promotion                                                   Communication (two ways of communication, integrate

                                                                     the customer’s voice into your marketing strategy)

Business Orientation to the Marketplace:

A-Product Base

1-Production concept:

 assumes consumers favor those products that are widely available and affordable. It is spiritual to use this method only when there is a strong demand for the product and there is a certainty that the product being launched will be bought by people.

Focus: increasing production, reducing cost, wide distribution; high volume

2-Product concept:

 assumes consumers will favor those products that offer the most quality, performance, and features. They realize that if the quality is good enough, consumers will definitely buy.

 Focus: product design and quality

3-Selling concept:

 assumes consumers will either not buy or not but enough of the organizations’ products unless the organization makes a substantial effort to stimulate the customer’s interest in the product.

(Focus: aggressive selling and promotion without thoughts on the application and customer requirements need of the seller)

B-Customer Base

4-Marketing concept:

holds that the key to achieving organizational goals depend on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors (Focus: different needs of the buyers and company profitability)

5-Societal marketing

concept: adds to the previous marketing concept; for the objective of preserving and enhancing the consumer’s and society’s well being.

(Focus: needs of buyers and society or satisfy customer need without harming the environment)

6-Information age:

(Focus: transparency, competition, globalization)

Comparing Selling and Marketing concept

Selling: Factory—Products--Selling& Promotion Profit through sales volume.

Philosophy: make sales

                 Right customer for your products

Marketing: Target market—Consumer needs—integrated marketing—profit through consumer satisfaction

Philosophy: Sense response

                  Right products for right customers   

Marketing management

is a business discipline that focuses on the practical application, tracking and review of company’s marketing techniques and the management of resources and activities of a business

Effective marketing management will use a company's resources to:

1-increase its customer base, and share of voice

2-improve customer opinions of the company's product and service,

3-and increase the company's perceived value,

4-and increase market share.

Marketing Definition

Marketing is the process of communicating the value of a product or service to customer, for the purpose of mutually benefits the customers’ need by the product or service to the profit of the organization. It is a critical business function for attracting new customers and maintaining existing ones