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Marketing Management

Arab World Edition
Chapter 1
Defining Marketing
for the Arab World
Copyright © 2012 Pearson Education 1-1

Chapter Questions
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some fundamental marketing concepts?
4. How has marketing management changed?
5. What are the tasks necessary for successful marketing
management?
6. How does marketing in the Arab world differ from
marketing in other parts of the world?
The Importance of Marketing

• Marketing is essential for a company to define itself.
• Marketing aims to:
○ Explain what makes the company/product different
○ Understand what customers are looking for
• Define and deliver the company‟s value proposition.
• Financial success often depends on marketing ability.

Chapter Question 1:
Why is marketing
important?
Copyright © 2012 Pearson Education 1-2
The Scope of Marketing
To prepare to be a marketer, you need to understand:
• what marketing is
• how it works
• what is marketed, and
• who does the marketing.
Chapter Question 2:
What is the scope of
marketing?
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What is Marketing?
Marketing is a process by which companies create value for customers
and build strong customer relationships to capture value from customers
in return
Marketing 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 is about identifying and meeting human and
social needs.
• A short definition: “meeting needs profitably.”

Chapter Question 2:
What is the scope of
marketing?
Copyright © 2012 Pearson Education 1-5

What is Marketing Management?
Marketing management is the art and science of
choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating
superior customer value.
Chapter Question 2:
What is the scope of
marketing?
What Is Marketing?
The Marketing Process
Understanding the Marketplace
and Customer Needs
• Customer needs, wants, and demands
• Market offerings
• Value and satisfaction
• Exchanges and relationships
• Markets

Core Concepts
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What is Marketed?
• Goods
• Services
• Events and experiences
• Persons
• Places and properties
• Organizations
• Information
• Ideas

Chapter Question 2:
What is the scope of
marketing?
Copyright © 2012 Pearson Education 1-9

Who Markets?
Marketers and prospects
• Marketers are responsible for demand management
• Eight demand states are possible
1. Negative demand.
2. Nonexistent demand.
3. Latent demand.
4. Declining demand.
5. Irregular demand.
6. Full demand.
7. Overfull demand.
8. Unwholesome demand.


Chapter Question 2:
What is the scope of
marketing?
Demand States
• 1. Negative demand—Consumers dislike the product and
may even pay to avoid it.
• 2. Nonexistent demand—Consumers may be unaware of or
uninterested in the product.
• 3. Latent demand—Consumers may share a strong need
that cannot be satisfied by an existing product.
• 4. Declining demand—Consumers begin to buy the product
less frequently or not at all.
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1-10
• 5. Irregular demand—Consumer purchases vary on a
seasonal, monthly, weekly, daily, or even hourly basis.
• 6. Full demand—Consumers are adequately buying all
products put into the marketplace.
• 7. Overfull demand—More consumers would like to buy
the product than can be satisfied.
• 8. Unwholesome demand—Consumers may be attracted
to products that have undesirable social consequences.
• In each case, marketers must identify the underlying
cause(s) of the demand state and determine a plan of
action to shift demand to a more desired state.

Demand States
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Definition of a market?
• Traditionally, a market was a physical place where
buyers and sellers gathered to buy and sell goods.
Economists describe a market as a collection of buyers
and sellers who transact over
• a particular product or product class (such as the
housing market or the grain market).
• Marketers often use the term market to cover various
groupings of customers. They view sellers as
constituting the industry, and buyers as constituting the
market.

Chapter Question 2:
What is the scope of
marketing?
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Structure of Flows in a Modern Exchange Economy


Chapter Question 2:
What is the scope of
marketing?
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Chapter Question 2:
What is the scope of
marketing?
A Simple Marketing System


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Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets
Chapter Question 2:
What is the scope of
marketing?
Core Marketing Concepts
Chapter Question 3:
What are some
fundamental marketing
concepts?
To understand the marketing function, we need to
understand some core concepts…

Copyright © 2012 Pearson Education 1-16
Core Marketing Concepts
Chapter Question 3:
What are some
fundamental marketing
concepts?
Needs, Wants and Demands
• Needs are the basic human requirements.
• Wants are shaped by our society.
• Demands are wants for specific products backed by the ability to
pay.
Five types of need:
1. Stated needs (the customer wants an inexpensive car).
2. Real needs (the customer wants a car, the operating cost of which, not initial price,
is low).
3. Unstated needs (the customer expects good service from the dealer).
4. Delight needs (the customer would like the dealer to include an onboard
navigation system).
5. Secret needs (the customer wants friends to see him as a savvy consumer).

Copyright © 2012 Pearson Education 1-17
Core Marketing Concepts
Chapter Question 3:
What are some
fundamental marketing
concepts?
Target Markets, Positioning, and Segmentation
Marketers:
• Divide the market into segments
• Target the segments presenting the greatest opportunity
• Position their products in the minds of target buyers as delivering
key benefits


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Carrefour stores are designed to appeal to
shoppers looking for a rich shopping
experience at affordable prices.
Offerings and Brands
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19
Companies address customer needs
by putting forth a value proposition,
a set of benefits that satisfy those
needs. The intangible value
proposition is made physical by an
offering, which can be a
combination of products, services,
information, and experiences.
A brand is an offering from a known
source. A brand name such as
McDonald‟s carries many associations in
people‟s minds that make up its image:
hamburgers, cleanliness, convenience,
courteous service, and golden arches.
Value and Satisfaction
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20
The buyer chooses the
offerings he or she perceives
to deliver the most value, the
sum of the tangible and
intangible benefits and costs to
her. Value, a central
marketing concept, is primarily
a combination of quality,
service, and price (qsp), called
the customer value triad.
Satisfaction reflects a person‟s
judgment of a product‟s
perceived performance in
relationship to expectations.
Marketing Channels
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Communication
Distribution
Service
Marketing Environment
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22
Demographic Economic
Socio-cultural
Natural
Technological
Political-legal
Major Societal Forces
• Network information
technology
• Globalization
• Deregulation
• Privatization
• Heightened competition
• Industry convergence
• Retail transformation
• Disintermediation
• Consumer buying
power
• Consumer participation
• Consumer resistance
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Company Orientations
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Production
Product
Selling
Marketing
Further Core Marketing Concepts
Chapter Question 3:
What are some
fundamental marketing
concepts?
• Offerings and brands
• Value and satisfaction
• Marketing channels
• Supply chain
• Competition
• Marketing environment
• Marketing planning


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The New Marketing Realities
Major societal forces
• Network information technology
• Globalization
• Deregulation
• Privatization
• Heightened competition
• Industry convergence
• Consumer resistance
• Retail transformation
• Disintermediation
Chapter Question 4:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-26
The New Marketing Realities
New Consumer Capabilities
• A substantial increase in buying power
• A greater variety of available goods and services
• A great amount of information about practically anything
• Greater ease of interacting, placing and receiving orders
• An ability to compare notes on products and services
• An amplified voice to influence public opinion

Chapter Question 4:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-27
The New Marketing Realities
New Company Capabilities
• Internet
• Marketing research
• Internal communication
• External communication
• Personalization of messages
• Rewards and promotions
• Mobile marketing
• Personalization of products
• Savings from using the internet
• Online training products
Chapter Question 4:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-28
More companies can produce
individually differentiated goods
Company Orientation Toward
the Marketplace
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept

Chapter Question 4:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-29
Company Orientation Toward
the Marketplace
• The Holistic Marketing Concept
recognizes that „everything matters‟ in marketing,
and that a broad, integrated perspective is often necessary.
Chapter Question 4:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-30
Company Orientation Toward
the Marketplace
• The Holistic Marketing Concept


Chapter Question 4:
How has marketing
management changed?
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Company Orientation Toward
the Marketplace
• Relationship Marketing
building mutually satisfying long-term relationships
with key parties, in order to earn and retain their business.


Chapter Question 4:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-32
Company Orientation Toward
the Marketplace
• Integrated Marketing



Chapter Question 4:
How has marketing
management changed?
Four Ps
• Product
• Price
• Place
• Promotion
These represent the
seller’s view of marketing
tools.
SIVA
• Solution: how can I solve my problem?
• Information: where can I learn more about
it?
• Value: what is my total sacrifice to get this
solution?
• Access: where can I find it?
Customer questions, corresponding to
the 4Ps


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Company Orientation Toward
the Marketplace
• Integrated Marketing




Chapter Question 4:
How has marketing
management changed?
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Company Orientation Toward
the Marketplace
• Internal Marketing
ensuring that everyone in the organization embraces
appropriate marketing principles, especially senior
management


Chapter Question 4:
How has marketing
management changed?
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Company Orientation Toward
the Marketplace
• Performance Marketing


Chapter Question 4:
How has marketing
management changed?
Financial Accountability
Social Responsibility Marketing
• Social Initiatives
• Corporate social marketing
• Cause marketing
• Corporate philanthropy
• Corporate community involvement
• Socially responsible business practices
Copyright © 2012 Pearson Education 1-36
Marketing Management Tasks
Chapter Question 5:
What are the tasks
necessary for successful
marketing management?
• Developing market strategies and plans
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth
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Marketing Management Tasks
Chapter Question 5:
What are the tasks
necessary for successful
marketing management?
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Marketing Memo: Marketers’ Frequently Asked Questions


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Functions of CMOs
• Strengthening the brands
• Measuring marketing effectiveness
• Driving new product development based on customer needs
• Gathering meaningful customer insights
• Utilizing new marketing technology
Chapter Question 5:
What are the tasks
necessary for successful
marketing management?
A Word About Marketing in
the Arab World
Chapter Question 6:
How does marketing in the
Arab world differ from
marketing elsewhere?
The Arab world is a huge potential market for international
companies.

However, companies have to keep several factors in mind
when targeting the Arab audience.

Values, religion, language, reading from right to left, and
politics are among a few key issues to take into consideration.
Copyright © 2012 Pearson Education 1-40