Marketing Management Ch. 1& 2 AAST 2022

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Marketing Management
Nermin A. Daniel
• Doctorate Degree of business administration from Ain Shams University, Marketing
Major
• Adjunct professor of marketing at MIU (undergraduates of business school and mass
com school|
• Adjunct professor of marketing at Eslsca business school “post graduates program
|MBA|
• Adjunct professor of marketing at AAST “POST GRADUATES PROGRAM |MBA|
• Former Ezz Elarab Development Training Director since June 2018.
• Volvo Certified Trainer, “Customer Champion Certified Program”
• Lecturer at Arab Academy for Science, Transport and Maritime “AAST” for MBA
classes.
• Certified trainer of Leadership Management and Development Center “LMDC”,
General affairs ministry.
• Certified Trainer certificate, “Advanced TOT course” by Jason Tedeak , the CEO and
founder of “Rule the room” Org., USA
• International NLP Diploma certificate accredited by the IFCNLP (The International
Federation for Coaching and NLP) Based in the UK.
• MBA, from Arab academy for Maritime on 2003, Marketing Major
• 23 Working experience in multinational companies and international organizations,
with 17 years experience in marketing communication field.
• 22 working experience in in Automotive field “Aboul Fotouh”
• Corporate trainer for no. of company since Feb. 2015 .
• Working in “International Coach Certification” (work in process)
Dr. Nermin A. Daniel, DBA

Marketing Management, presented by Dr. Nermin A. Daniel
Ezz Elarab Development Training Director 2
Course Instructor
 Dr. Nermin Adel Daniel, DBA
 Email :
drnermintakla@gmail.com
 Mob.: 01006111955
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Assessment
Student Assessment Methods Assessment Weighing
Attendance 10%
Assignment and participation 20%
Midterm 30%
Final 40%
Attendance is mandatory.
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Let’s adapt:
• Please ensure your phone and laptop

is off during the training.
• Emergency exits are marked…
• Break times are approx. following:
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Time to know
each other
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Personal presentation
• Your name
• Hobby or favorite pastime or special skill
• Your favorite place
• Background, and profession
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Strategic Marketing
Course Quote
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An Overview of Marketing
• Marketing is everywhere,
• Marketing is both an “art” and a
“science”,
• Marketing is essential for a company to
define itself.
• Financial success often depends on
marketing ability,
• Marketing builds brands and a loyal
customer base.
• Marketing is tricky and making the right
decisions is not always easy.
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What is marketing ?
An organizational or business function is a core process or set of
activities carried out within a department or areas of a
company. Common functions include operations, marketing,
human resources, information technology, customer service,
finance and warehousing
Marketing Management, presented by Dr. Nermin A. Daniel 11

What is Marketing?
 Marketing is about identifying and meeting human

and social needs.
Ex:
When the Emirate of Sharjah, realized that expatriates
wanted low-cost, affordable means of transportation for
themselves and their families, it introduced Air Arabia, a
no –frills airline.
This firm demonstrated marketing savvy and turned a
private or social need into a profitable business
opportunity.

What is marketing ?
 Marketing is about identifying and meeting
human and social needs.
 One of the shortest good definitions of

marketing is
“Meeting Needs Profitably”

What is marketing ?
• The American Marketing Association offers the
following formal definition:
Marketing is the activity, set of institutions, and
processes for:
creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.

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.

Social Versus Managerial
Concept Of Marketing
• A social definition of marketing is that

“marketing is a societal process by which
individuals and groups obtain what they need and
want through creating, offering, and freely
exchanging products and services of value with
others.”
Goal: deliver a Higher Standard Of Living.

• A Managerial definition of marketing is that
Managers sometimes think of marketing as
“The Art Of Selling Products”
but many people are surprised when they hear that selling
is not the most important part of marketing!
Selling is only the top of the marketing iceberg.

• A Managerial definition :Selling is only the top of the marketing iceberg.

Marketing Management Tasks
• Develop market strategies and plans
• Capture marketing insights
• Connect with customers
• Build strong brands
• Shape market offerings
• Deliver value
• Communicate value
• Create long-term growth

What Is Marketing?
The Marketing Process
Case Study
• Skillful marketing is a never-ending pursuit.
• Xerox in the middle East changed the perception

that high –quality color printing is for large business
only. The company introduced the phaser 6280 as its
new economical color model for small business.
• By launching this cost-efficient color printer in the
Middle East, Xerox successfully coped with the
technological change "from black and white to
colored printed material” and with new customers
'needs. Xerox differentiated itself from other providers
by offering a color printer at an affordable price.
• In the Middle East and Africa region, Xerox depends

on its partners to strengthen the value that Xerox
delivers to its customers.

A B

Marketing Main Concepts And
Fundamentals

Main Players In Marketing Process
The Market
Economists describe a market as a collection

of buyers and sellers who transact over a
particular product or product class.
Marketers use the term “ market ” to cover

various groups of customers

The Marketer
A marketer is someone seeking a response

(attention, purchase, vote, donation, etc.)
from another party called the prospect.
Marketers are responsible for stimulating need

and demand for a company’s product.
Marketing managers seek to influence the

level, timing, and composition of demand to
meet the organization’s objectives

The Customer
- Is the user of the product or service which
you “marketer” provide.
- Customer is called King of the industry as he

is the one paying for your salary.
- Customers being the asset to any industry

• All our customers have to be customer
focused and customer driven as “The
Customer is Queen / King.”


Figure 1.1 Structure of Flows in
Modern Exchange Economy

Figure 1.2
A Simple Marketing System

Main Players In Marketing
/ Process
The Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Nonprofit/Government markets

Consumer Markets:
Companies selling mass consumer goods and
services spend a great deal of time
establishing a strong brand image by
developing a superior product and
packaging, ensuring its availability, and
backing it with engaging communications
and reliable service.

Business Markets:
Companies selling business goods and
services often face well-informed professional
buyers skilled at evaluating competitive
offerings.

Global Markets:
Companies in the global marketplace must decide
which countries to enter; how to enter each (as an
exporter, licenser, joint venture partner, contract
manufacturer, or solo manufacturer); how to adapt
product and service features to each country; how to
price products in different countries; and how to design
communications for different cultures. They face
different requirements for buying and disposing of
property; cultural, language, legal and political
differences; and currency fluctuations.

Nonprofit and Governmental Markets:

Companies selling to nonprofit organizations
with limited purchasing power such as
churches, universities, charitable
organizations, and government agencies
need to price carefully.

What is marketed !!!!
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What is marketer !!!!

What is marketed !!!!
1. Goods
Goods: Physical goods constitute the bulk of

production and marketing efforts.

What is marketed:
2. Services
Services: A growing portion of business

activities are focused on the production of
services.

What is marketed:
3. Events
Events: Marketers promote time-based events

such as trade shows, artistic performances,
and the Olympics.

What is marketed:
4. Experience:
Experiences: By orchestrating several services

and goods, a firm can create and market
experiences such as Walt Disney World ’ s
Magic Kingdom.

What is marketed:
5. Persons:
Persons: Celebrity marketing is a major

business.

What is marketed:
6. Places:
Places: Cities, states, regions, and whole

nations compete actively to attract tourists,
factories, and new residents.

What is marketed:
7. Properties:
Properties: Are intangible rights of ownership

of either real property (real estate) or financial
property (stocks and bonds).

What is marketed:
8. Organizations:
Organizations: Actively work to build a strong,

favorable, and unique image in the minds of
their target publics.

What is marketed:
9. Information:
Information: Can be produced and marketed

as a product. Schools, universities, and others
produce information and then market it.

What is marketed:
10. Ideas:
Ideas: Every market offering includes a basic

idea. Products and services are platforms for
delivering some idea or benefit.

What is Marketed?
Marketers market 10 main types of entities as shown on slides
• Goods: Physical goods constitute the bulk of production and
marketing efforts.
• Services: A growing portion of business activities are focused

on the production of services.
• Events: Marketers promote time-based events such as trade

shows, artistic performances, and the Olympics.
• Experiences: By orchestrating several services and goods, a

firm can create and market experiences such as Walt Disney
World’s Magic Kingdom.
• Persons: Celebrity marketing is a major business.

What is Marketed?
 Places: Cities, states, regions, and whole nations compete
actively to attract tourists, factories, and new residents.
 Properties: Are intangible rights of ownership of either real

property (real estate) or financial property (stocks and bonds).
 Organizations: Actively work to build a strong, favorable, and

unique image in the minds of their target publics.
 Information: Can be produced and marketed as a product.

Schools, universities, and others produce information and then
market it.
 Ideas: Every market offering includes a basic idea. Products

and services are platforms for delivering some idea or benefit.
What Is Marketed?

Competition:
the activity or condition of striving to gain or

win something by defeating or establishing
superiority over others.
the person or people over whom one is

attempting to establish one's supremacy or
superiority; the opposition.

Core Concepts
In Marketing Process
 Needs, wants, and demands

 Target markets, positioning, segmentation
 Offerings and brands
 Value and satisfaction

Core Concepts
Needs
States of deprivation
Physical : Food, clothing, warmth, safety
Social : Belonging and affection
Individual: Knowledge and self-expression

Core Concepts
Wants
Form that needs take as they are

shaped by culture and individual
personality

Core Concepts
the difference between

Needs and Wants
- A need is something you have to have to survive or

complete a task.
- A want is simply the desire for something, in many
cases something to satisfy a need. You need food
to survive.
Wants are needs satisfiers

Core Concepts
the difference between

Needs and Wants
Needs are something that you must have, in order to

live. On the contrary, wants are something that you
wish to have, so as to add comforts in your life.
Needs represents the Necessities

while Wants indicate Desires

Core Concepts
Demand:
Wants backed by buying power

Quiz Time
True or False???
Marketers create needs.
Please comment…

Quiz Time
Pyramid Of Needs:
Marketers create needs.

Pyramid Of Needs
Maslow Hierarchy:
Marketing Management, presented by

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Dr. Nermin A. Daniel
Pyramid Of Need
Maslow Hierarchy:
This theory indicates
• There are 5 levels of needs

• All these needs are arranged in a hierarchy
• Once one level is satisfied, the next level will emerge as the
depressed need seeking to be satisfied
• The physiological and security needs are finite but the needs of
higher order are infinite and are likely to be dominant in persons at
higher levels in the organization.
• Maslow suggests that various levels are interdependent and
overlapping.
Copyright © Pearson Education . Advanced

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marketing to AAST MBA students
2 major types of Needs
o Deficiency Needs (D-needs)

 Contains the most fundamental and basic three layers of
the pyramid: physiological needs, security or safety needs,
love and belonging.
 These needs arise due to deprivation.
 The satisfaction of these needs helps to “avoid” unpleasant
feelings or consequence.

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2 major types of Needs
o Growth Needs (G-needs)
 It is also known as being needs or B-needs.
 Growth needs do not come from a place of “lack”, but

rather from a desire to grow as a person.
 Contains the highest two levels in Maslow’s pyramid: Self

esteem and self-actualization.

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Quiz Time
Pyramid Of Needs:
- Hierarchy of Needs suggests that people are motivated to

fulfill basic needs before moving on to other, more advanced
needs.
- The lowest levels of the pyramid are made up of the most

basic needs, while the more complex needs are located at
the top of the pyramid.

MASLOW LEVELS OF
PYRAMID
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Physiological Needs
• These include the most
basic needs that are
vital to survival, such as
the need for water, air
(oxygen), food, and
sleep/rest.
• Maslow believed that

these needs are the
most basic and
instinctive needs in the
hierarchy.

Physical needs
LEVEL ONE:
 These are the basic human needs including food, clothing, shelter
and other necessities of life.
 Air
 Water
 Food
 Rest
 Exercise
 According to Maslow’s theory, if such needs are not satisfied then

one’s motivation will arise from the quest to satisfy them. Higher
needs such as social needs and esteem are not felt until one has
met the need’s basic to one’s bodily functioning.
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Safety Needs
LEVEL TWO

Safety o Security Needs
• Includes a desire for steady
employment, health care,
safe neighborhoods, and
shelter from the
environment.
• These needs have to do

with man’s yearning for a
predictable, orderly world
in which injustice and
inconsistency are under
control. FAIRNESS

Safety needs
LEVEL TWO:
• Safety needs: These includes economic security,

protection from physical dangers.
•Safety
•Security
•Protection
•Freedom from Fear
• According to Maslow’s hierarchy, if a person
feels that he or she is in harm’s way, higher
needs will not receive much attention.
Love and Belonging
• It involves emotionally-
based relationships in
general, such as
friendship, sexual
intimacy, acceptance
and having a supportive
and communicative
family.

Social needs
LEVEL THREE:
• Social needs: Need for love, affection,
emotional needs, warmth and friendship.
• Love
• Belongingness
• Affection
Once a person has met the lower level physiological
and safety needs, higher level motivators awaken.
Social needs are those related to interaction with
others.
Self-Esteem Needs
• It includes the need for things
that reflect on self-esteem,
personal worth, social
recognition, and
accomplishment.
• People need to engage

themselves to gain recognition
and have an activity or activities
that give the person a sense of
contribution, to feel accepted
and self-valued, be it in a
profession or hobby.

Esteem needs
LEVEL FOUR:
• Self-esteem: Ego or self esteem, self respect,
self confidence, recognition.
• Strength (esteem)
• Status (esteem)
• Maslow later refined his model to include a
level between esteem needs and self –
actualization the need for knowledge and
aesthetics.

Self - Actualization
LEVEL FIVE:
• Self actualization needs: desire for
personal achievement or mission of his
life.
• Self – actualized persons have frequent
occurrence of peak experiences, which
are energized moments of profound
happiness and harmony.
• According to Maslow, only a small
percentage of the population reaches
the level of self- actualization.

CONCLUSION
The basis of Maslow's motivation theory is that human
beings are motivated by unsatisfied needs, and that
certain lower factors need to be satisfied before higher
needs can be satisfied. According to Maslow, there are
general types of needs (physiological, survival, safety,
love, and esteem) that must be satisfied before a person
can act unselfishly.
He called these needs "deficiency needs." As long as we

are motivated to satisfy these cravings, we are moving
towards growth, toward self-actualization. Satisfying needs
is healthy, while preventing gratification makes us sick or
act evilly.
Types of Needs
• The customer wants an inexpensive
Stated car.
• The customer wants a car whose

Real operating cost, not initial price, is low
• the customer expects good service

Unstated from the dealer
• the customer would like the dealer to

Delight include an onboard GPS navigation
System
• the customers wants friends to see

Secret him or her as a savyy consumer
Types of Needs
Stated
Real
Unstated
Delight
Secret
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Core Concepts
Types of Needs
• We can distinguish five types of needs:
• 1. Stated needs (The customer wants an inexpensive
car.)
• 2. Real needs (The customer wants a car whose
operating cost, 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 GPS navigation
• system.)
• 5. Secret needs (The customer wants friends to see
him or her as a savvy consumer.)
Core Concepts
Demand:
Wants backed by buying power

Core Concepts
Demand States:
Negative Nonexistent Latent
Declining Demand Irregular

States
Full Overfull Unwholesome

Core Concepts
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.

Core Concepts
Demand States: “cont.”
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 more than can be satisfied.
8. Unwholesome demand—Consumers may be

attracted to products that have undesirable social
consequences.

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Core Concepts
Demand States: “cont.”
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.

Core Concepts
Satisfaction and Delight:
Satisfaction
Delight

Core Concepts
Satisfaction
Satisfaction reflects a person ’ s judgment of a

product’s perceived performance in relationship to
expectations

Core Concepts
Satisfaction
Delight

Core Concepts
Satisfaction
Delight
 If the performance falls short of expectations, the customer is

disappointed.
 If “offering performance” exceeds expectation, the

customer is delighted
Session two
• qsp

Core Concepts
Value:
Value: reflects, the sum of the perceived

tangible and intangible benefits and costs to
customers.
 It is primarily a combination of quality,

service, and price (qsp), called the customer
value triad.
This value results in customer satisfaction

Value and Satisfaction
• 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.
• Value perceptions increase with quality and service

but decrease with price, although other factors such
as culture can also play an important role in our
perceptions of value.
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• We can think of marketing as the identification,
creation, communication, delivery, and monitoring of
customer value.
• Satisfaction reflects a person ’ s judgment of a

product’s perceived performance in relationship to
expectations. If the performance falls short of
expectations, the customer is disappointed. If it
matches expectations, the customer is satisfied. If it
exceeds them, the customer is delighted.
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Value Proposition and Offering
• 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. All companies strive to
build a brand image with as many strong, favorable,
and unique brand associations as possible.
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• Higher levels of customer satisfaction lead to greater
customer loyalty, which in turn results in better company
performance.
• Smart companies aim to delight customers by promising

only what they can deliver and then delivering more
than they promise.
• Delighted customers not only make repeat purchases

but also become willing marketing partners and “
customer evangelists” who spread the word about their
good experiences to others.
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Value creation:

Marketing And Customer Value
• Marketing involves satisfying consumers’ needs and
wants. The task of any business is to deliver customer
value at a profit.
• The traditional view of marketing is that the firm makes
something and then sells it.
a) Will not work in economies where people face
abundant choice.
b) New belief: marketing begins with the planning
process.
c) Companies see themselves as part of a value
delivery process.
d) Value creation and delivery consists of three parts:

Phases of Value Creation and Delivery
Choosing The Value
Providing the value
Communicating the value

Value Creation and Delivery
We can divide the value creation and delivery sequence into three
phases.
• First, choosing the value represents the “homework” which marketing
must do before any product exists. Marketers must segment the
market, select the appropriate target, and develop the offering’s
value positioning. The formula “segmentation, targeting, positioning
(STP)” is the essence of strategic marketing.
• The second phase is providing the value. Marketing must determine

specific product features, prices, and distribution.
• The task in the third phase is communicating the value by utilizing the
sales force, Internet, advertising, and any other communication tools
to announce and promote the product. The value delivery process
begins before there is a product and continues through
development and after launch.

Three V’s Approach to Marketing
Define the value segment
Define the value proposition
Define the value network
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What is the Value Chain?
The value chain is a tool for
identifying way to create more
customer value because every firm
is a synthesis of primary and support
activities performed to design,
produce, market, deliver, and
support its product.
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The Value Chain
• Michael Porter ’ s Value Chain identifies nine
strategically relevant activities that create value
and costs (five primary and four support activities).
• Primary activities:
» Inbound logistics (bringing materials).
» Operations (turn into final product).
» Outbound logistics (shipping and
warehousing).
» Marketing (marketing and sales).
» Servicing (service after the sale).
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The Value Chain
• Support activities:
– Procurement.
– Technology development.
– Human resource management.
– Firm infrastructure(infrastructure covers the costs of general
management, planning, finance, accounting, legal and
government affairs)
• The firm’s task is to examine its costs and performance in each
value-creating activity and to look for ways to improve
performance.
• Mangers should estimate their competitors' cost and
performances as benchmarks against which to compare their
own costs and performance.
• Ex: to support its corporate goal to be more innovative, GE AND P&G
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Core Business Processes
• The firm’s success depends not only on how well each
department performs its work, but also on how well the
company coordinates departmental activities to conduct
core business processes.
• Market-sensing process(all activities in marketing
intelligence, disseminating it within the organization and
acting on the information).
» New-offering realization process(research, development
and launch new high quality offerings quickly and within
budget).
• Customer acquisition process(defining target markets and
consumers).
» Customer relationship management process( building
deeper understanding of consumers).
» Fulfillment management process(receiving, shipping, and
collecting payments).
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• Strong companies are reengineering their
work flows and building cross-functional
teams to be responsible for each process.
• Ex: Xerox, a customer operations group links

sales, shipping, installation, service and
billing so these activities flow smoothly into
one another
• Many companies today have partnered

with specific suppliers and distributors to
create a superior value delivery network
(supply chain) Saudi Aramco
manages business
operations through
cross-functional
teams.
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Marketing Channels
Communication
Distribution
Service
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Marketing Channels
• To reach a target market, the marketer uses
three kinds of marketing channels:
• Communication channels deliver and receive

messages from target buyers and include
newspapers, magazines, radio, television, mail,
telephone, billboards, posters, fliers, CDs,
audiotapes, and the Internet. Beyond these,
firms communicate through the look of their
retail stores and Web sites and other media.
Marketers are increasingly adding dialogue
channels such as e-mail, blogs, and toll-free
numbers to familiar monologue channels such
as ads.
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Marketing Channels
• The marketer uses distribution channels
to display, sell, or deliver the physical
product or service(s) to the buyer or
user. These channels may be direct via
the Internet, mail, or mobile phone or
telephone, or indirect with distributors,
wholesalers, retailers, and agents as
intermediaries.
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Marketing Channels
• To carry out transactions with potential
buyers, the marketer also uses service
channels that include warehouses,
transportation companies, banks, and
insurance companies. Marketers clearly
face a design challenge in choosing the
best mix of communication, distribution,
and service channels for their offerings.
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Marketing Channels
• To reach a target market, the marketer uses three kinds of
marketing channels. Communication channels deliver and
receive messages from target buyers and include newspapers,
magazines, radio, television, mail, telephone, billboards,
posters, fliers, CDs, audiotapes, and the Internet. Beyond these,
firms communicate through the look of their retail stores and
Web sites and other media. Marketers are increasingly adding
dialogue channels such as e-mail, blogs, and toll-free numbers
to familiar monologue channels such as ads.
• The marketer uses distribution channels to display, sell, or
deliver the physical product or service(s) to the buyer or user.
These channels may be direct via the Internet, mail, or mobile
phone or telephone, or indirect with distributors, wholesalers,
retailers, and agents as intermediaries.
• To carry out transactions with potential buyers, the marketer
also uses service channels that include warehouses,
transportation companies, banks, and insurance companies.
Marketers clearly face a design challenge in choosing the best
mix of communication, distribution, and service channels for
their offerings. 112
Marketing Environment
Demographic Economic
Socio-cultural
Political-legal
Technological Natural
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• The marketing environment consists of the task environment and the
broad environment. The task environment includes the actors
engaged in producing, distributing, and promoting the offering.
• These are the company, suppliers, distributors, dealers, and target
customers. In the supplier group are material suppliers and service
suppliers, such as marketing research agencies, advertising agencies,
banking and insurance companies, transportation companies, and
telecommunications companies.
• Distributors and dealers include agents, brokers, manufacturer
representatives, and others who facilitate finding and selling to
customers.
• The broad environment consists of six components: demographic

environment, economic environment, social-cultural environnent,
natural environment, technological environment, and political- legal
environment. Marketers must pay close attention to the trends and
developments in these and adjust their marketing strategies as
needed.
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Core Concepts
Offerings and value proposition:
Market offerings are some combination of

products, services, information, or experiences
offered to a market to satisfy a need or want
Ex: DestinationOman.com markets

OMAN as a tourist destination,
highlighting the country ’ s historic
heritage, natural beauty, folklore,
and traditional industries.

Core Concepts
Offerings and value proposition:
Market offerings:
- The intangible value proposition is made
physical by an offering, which can be a
combination of products, services,
information and experiences.

Core Concepts In Marketing Process
“FAB”
FAB stands for:
A feature is a characteristic of, or fact about,
the product or service.
An advantage is a general way in which the

product can be of value or useful.
A benefit is a specific way in which the

product meets a previously identified and
explicit need of the customer in question.

Core Concepts In Marketing
Process
Competitive Advantage:
• In business, a competitive advantage is the attribute
that allows an organization to outperform its
competitors.
- A condition or circumstance that puts a company

in a favorable or superior business position.
- Competitive advantages are conditions that allow a
company or country to produce a good or service of
equal value at a lower price or in a more desirable fashion.
These conditions allow the productive entity to generate
more sales or superior margins compared to its market
rivals.
Comparative Advantage
• A firm's ability to produce a good or service more
efficiently than its competitors, which leads to greater
profit margins, creates a comparative advantage.
Rational consumers will choose the cheaper of any two
perfect substitutes offered. For example, a car owner
will buy gasoline from a gas station that is five cents
cheaper than other stations in the area. For imperfect
substitutes, like Pepsi versus Coke, higher margins for the
lowest-cost producers can eventually bring superior
returns.
• https://www.investopedia.com/terms/c/competitive_advantage.asp

Core Concepts In Marketing
Process
Core competency:
Core competencies are the resources and capabilities that
comprise the strategic advantages of a business. A modern
management theory argues that a business must define,
cultivate, and exploit its core competencies in order to
succeed against the competition.
Core competencies A source of competitive advantage and
make a significant contribution to perceived customer
benefits.


Points-of-Difference and
Points of Parity

Points-of-Difference and
Points of Parity
Points-of-parity (POP)
• The aspects of the product offering
that are largely similar to the offerings
of like competitors.
• POP is seen as offering standard

Point Of Difference ….
• Point Of Difference refers to the factors of
products or services that establish differentiation.
Differentiation is the way in which the goods or
services of a company differ from its competitors.
Indicators of the point of difference's success would
be increased customer benefit and brand loyalty.
• Points of differentiation are the attributes that make

your brand unique. It is your competitive
advantage. It is what your brand slogan should
reflect.

Example of POD that is
transferred to POD
• Warranty: for automotive company
• Warranty: 3 Year warranty is POP

• Offering 5 year warranty is shifting POP to
POD
• Becomes source of competitive advantage.

• You will note that both definitions referred to
the offerings of competitors, so these terms
are relative measures. And to clarify the
word ‘aspects’; it refers to the various
product features, benefits, brand equity,
and other marketing mix elements
(including price and place, plus any
associated marketing mix elements of
services).

Unique Selling Proposition (USP)
Refers to is points-of-difference and you can

use the terms interchangeably if required. A
point-of-difference is basically what is different
about the firm’s product, as compared to
most competitive offers. The same meaning is
applied to the term ‘unique selling
proposition’; that is, what is unique (that is,
different) about the firms offer.

Target Markets,
Positioning & Segmentation

Target Markets,

Target Markets,
• Market segmentation is the process that
companies use to divide large heterogeneous
markets into small markets that can be reached
more efficiently and effectively with products
and services that match their unique needs
• Market targeting (or targeting) consists of

evaluating each market segment ’ s
attractiveness and selecting one or more market
segments to enter.

Target Markets,
• Differentiation involves actually
differentiating the firm ’ s market
offering to create superior customer
value.
• Positioning consists of arranging for a

market offering to occupy a clear,
distinctive, and desirable place
relative to competing products in the
minds of target consumers.

Offerings and Brands
• Market offerings are some
combination of products, services,
information, or experiences offered
to a market to satisfy a need or
want
DestinationOman.com markets OMAN

as a tourist destination, highlighting
the country’s historic heritage, natural
beauty, folklore, and traditional
industries.

– Brand: is an offering
from a known source
McDonald ’ s carries
many associations in
people minds that
make up the brand
image.

• The value proposition is
the set of benefits or
values a company
promises to deliver to
customers to satisfy their
needs.
BMW promises “ the ultimate driving

machine”, whereas the British made
Land Rover lets you” Go Beyond- to
get a taste of adventure, whatever
your tastes”

Copyright © 2012 Pearson

Education
1-136
Exercise
• Form a small group of three or four students. Discuss
a need or want you have that is not adequately
satisfied by any offerings currently in the
marketplace. Think of a product or service that will
satisfy that need or want.
• Describe how you will differentiate and position your

offering in the marketplace and develop the
marketing program for your offering. Present your
ideas to the other groups.

What Is Competitive Intelligence?
• Competitive intelligence refers to information collected by a

company about rival businesses and markets, which may then
be analyzed to create more effective business strategies
moving forward. By definition, competitive intelligence
assembles actionable information from diverse published and
unpublished sources, collected efficiently and ethically.
• Competitive intelligence (CI) is the action of defining,

gathering, analyzing, and distributing intelligence about
products, customers, competitors, and any aspect of the
environment needed to support executives and managers in
strategic decision making for an organization.

Competitive Intelligence
• CI means understanding and learning what is

happening in the world outside the business to
increase one's Competing excellence.
• It means learning as much as possible, as soon as

possible, about one's external environment
including one's industry in general and relevant
competitors.[1]

Key points to cover in order to
answer these questions

Introduction: Definition of
Competitive Marketing Strategy
“A market-oriented strategy that establishes

a profitable and sustainable market position
for the firm against all forces that determine
industry competition by continuously
creating and developing a competitive
advantage from the potential sources that
exist in a firm’s value chain.”

Definition
“ Marketing strategy is…a market-oriented

approach that establishes a profitable
market position for an organisation against
all forces that determine industry
competition by continuously creating and
developing a sustainable competitive
advantage (SCA) from the potential sources
that exist in a firm’s value chain.”

Dress Down Version!
“Marketing strategy is an approach to

enable an organisation to best use it
resources to meet the needs of its
customers.”

The Marketing Mix

The Marketing Mix: Four P’s

The Marketing Mix: Four P’s

4 Ps corresponding to customer 4 Cs
• Robert Lauterborn suggested that the sellers’ four
Ps correspond to the customers’ four Cs.
Four Ps Four Cs
• Product Customer solution
• Price Customer cost
• Place Convenience
• Promotion Communication
Winning companies are those that meet customer
needs economically and conveniently and with
effective communication.

The 7Ps Marketing Mix

https://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-7ps-marketing-
148
mix/
The 4Ps vs The 7Ps
• The 4Ps were designed at a time where businesses
were more likely to sell products, rather than
services and the role of customer service in
helping brand development wasn't so well
known.
• Over time, Booms and Pitner added three

extended ‘service mix P’s': Participants, Physical
evidence and Processes.
• and later Participants was renamed People.
• It's recommended that the full 7Ps of the
marketing mix are considered when reviewing
competitive strategies.

The marketing strategy and
the marketing orientation

Marketing Orientation
Marketing orientation is a state of mind, or a

philosophy, that guides the strategic vision and
future direction of companies. Marketing-
orientated firms adopt a proactive search for
market opportunities, use market information as a
base for analysis and organisational learning, and
adopt a long-term strategic perspective on
markets and brands.

Does marketing
orientation contribute to
company success?

Marketing Management Philosophies
(Summary)
• Production (1850- mass production)
• Product (1900- product quality)
• Sales (1920-personal selling)
• Marketing (1950- transaction marketing)
• Societal-Marketing (1980- society welfare)
• Relationship-Marketing (1985-relationship-based)
• Customer-centric (2000- individual rather than market
segments) – Mass Customization

The Company Orientations:
Production Product Selling Marketing Holistic

Marketing

Production

Production Orientation:
The production concept is one of the oldest concepts

in business. It holds that consumers prefer products that
are widely available and inexpensive. Managers of
production-oriented businesses concentrate on
achieving high production efficiency, low costs, and
mass distribution.

Production Concept
• The production concept holds that consumers will
prefer products that are widely available and
inexpensive.
• Concentrate on achieving high production
efficiency, low costs and mass production.
• Wants to expand the market
• China

Production Product

Product Orientation:
The product concept proposes that consumers favor

products offering the most quality, performance, or
innovative features.

Product Concept
• Holds that consumers will favor those

products that offer the most quality,
performance, or innovative features.
• Focus on making superior products

and improving them over time.

Production Product Selling

Selling Orientation:
The selling concept holds that consumers and

businesses, if left alone, won’t buy enough of the
organization ’ s products. It is practiced most
aggressively with unsought goods—goods buyers
don’t normally think of buying such as insurance and
cemetery plots—and when firms with overcapacity
aim to sell what they make, rather than make what
the market wants

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.

Production Product Selling Marketing

Marketing Orientation:
• The marketing concept emerged in the mid-
1950s41 as a customer-centered, sense-and
respond philosophy. The job is to find not the right
customers for your products, but the right products
for your customers.
• The 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.
Marketing Concept
– Reactive market orientation—understanding
and meeting consumers’ expressed needs.
– Proactive marketing orientation—researching

or imagining latent consumers’ needs through
a “probe-and-learn” process.
• Companies that practice both reactive and
proactive marketing orientation are implementing a
total market orientation.

Company
Xerox We make copying We help improve office

equipment productivity
Carrefour We run discount stores We deliver the best prices

and the best merchandise
Nike We sell athletic shoes We bring inspiration and

and apparel innovation to every
athlete in the world. (if
you have a body, you are
an athlete)
Product Orientation vs.Market
Orientation
Company Product Market

Missouri-Pacific We run a railroad We are a people-
Railroad and-goods mover
Xerox We make copying We improve office

equipment productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain

people

Product Orientation vs.Market Orientation
• Companies often define themselves in terms of products:

They are in the “auto business” or the “clothing business.”
Market definitions of a business, however, describe the
business as a customer satisfying process.
• Transportation is a need: the horse and carriage,

automobile, railroad, airline, ship, and truck are products
that meet that need.
• Viewing businesses in terms of customer needs can
suggest additional growth opportunities. Table 2.3 lists
companies that have moved from a product to a market
definition of their business. It highlights the difference
between a target market definition and a strategic market
definition.

Companywide Strategic Planning
Ch 2 -6 Marketing Management, presented by Dr. Nermin A. Daniel 172

The Selling and Marketing
Concepts Contrasted

Production Product Selling Marketing Holistic

Marketing
174
Holistic Marketing
175
Holistic marketing Orientation:
• The holistic marketing concept is based on the development,

design, and implementation of marketing programs, processes,
and activities that recognize their breadth and
interdependencies.
• Holistic marketing acknowledges that everything matters in
marketing—and that a broad, integrated perspective is often
necessary.
• Schematic overview of four broad components

characterizing holistic marketing: relationship marketing,
integrated marketing, internal marketing, and
performance marketing.

The Holistic Marketing Concept
• The holistic marketing concept is based on the
development, design, and implementation of
marketing programs, processes, and activities that
recognize their breadth and interdependencies.
• Holistic marketing acknowledges that everything

matters in marketing

• Four broad components characterizing holistic

marketing:
- Relationship marketing,
- Integrated marketing,
- Internal marketing,
- and Performance marketing.


Relationship Marketing
Customers
Employees
Marketing Partners
Financial Community

A- Relationship Marketing
– Relationship marketing has the aim of

building mutually satisfying long-term
relationships with key parties—customers,
suppliers, distributors, and other marketing
partners. Relationship marketing builds
strong economic, technical, and social ties
among the parties.

Relationship marketing
• Four key constituents for relationship marketing are customers,
employees, marketing partners (channels, suppliers,
distributors, dealers, agencies), and members of the financial
community (shareholders, investors, analysts). Marketers must
create prosperity among all these constituents and balance
the returns to all key stakeholders. To develop strong
relationships with them requires understanding their
capabilities and resources, needs, goals, and desires. The
ultimate outcome of relationship marketing is a unique
company asset called a marketing network, consisting of the
company and its supporting stakeholders—customers,
employees, suppliers, distributors, retailers, and others—with
whom it has built mutually profitable business relationships. The
operating principle is simple: build an effective network of
relationships with key stakeholders, and profits will follow.

A- Relationship Marketing
Marketing must not only do customer relationship
management (CRM) but also partnership relationship
management (PRM).
1. Four key constituents for marketing are:

• Customers.
• Employees.
• Marketing partners (channel partners).
• Members of the financial community.
2. The ultimate outcome of relationship marketing is

the building of a unique company asset called a
marketing network.

The operating principles
• Build an effective network of relationships with key
stakeholders, and profits will follow@
• Following this reasoning more companies are choosing to own
brands rather than physical assets
• They increasingly subcontracting activities to outsourcing firma
that can do them better and more cheaply, while retaining
core activities.
• Companies are also shaping separate offers, services, and
messages to individual customers, based on information about
past transactions.
• Focusing on their most profitable customers, products, and
channels.
• Relationship marketing also emphasizes customer retention.

• National bank of Kuwait adopted a customer
retention strategy through its online banking
services. As the popularity of this new service grew,
it become an integral part of the bank’s customer
retention and growth strategy.
• Attracting a new customer may cost five times as

much as doing a good enough job to retain an
existing one.

focus on customer retaining rather than customer getting.
Partner
Advocate
loyalty
supporter
Client
Emphasis on
Purchaser
customers
new
Prospect

B- Integrated Marketing
– The marketer ’ s task is to devise marketing
activities and assemble fully integrated
marketing programs to create, communicate,
and deliver value for consumers.
– The 4Ps of marketing: product, price, place, and

promotion.

Integrated Marketing

• A complementary breakdown of marketing activities has
been proposed that centers on customers. Its four
dimensions (SIVA) and the corresponding customer
questions these are designed to answer are:
 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?
• Two key themes are that (1) many different marketing

activities can create, communicate, and deliver value and
(2) marketers should design and implement any one
marketing activity with all other activities in mind.
• For example: using an integrated communication strategy

means choosing communication options that reinforce and
complement each other.

Integrated Marketing
- Integrated marketing occurs when the marketer
devises marketing activities and assembles
marketing programs to create, communicate,
and deliver value for consumers such that “the
whole is greater than the sum of its parts.”
- Two key themes are that (1) many different

marketing activities can create, communicate,
and deliver value and (2) marketers should
design and implement any one marketing
activity with all other activities in mind.

Figure 1.5 The Four P’s

C- Internal Marketing
Internal marketing is the task of hiring,

training, and motivating able employees
who want to serve customers well.

C- Internal Marketing
– Holistic marketing incorporates internal
marketing, ensuring that everyone in the
organization embraces appropriate
marketing principles.
– Internal marketing must take place on two
levels:
– At one level, the various marketing functions (sales
force, advertising, customer services, product
management, and marketing research) must work
together .@
– Secondly, marketing must be embraced by the other
departments—they must “think customer.” Marketing is
not a department so much as a company orientation.
– IM requires vertical alignment with senior managemnt
and horizonotal with other departments
• Snowshoe Mountain in Snowshoe, West Virginia,
embarked on a marketing program based on internal
marketing to better brand the ski resort with a promise
of an “ authentic, rustic and engaging wilderness
experience. ” In launching a branding initiative to
define their goals and articulate what they wanted
the Snowshoe Mountain brand to represent to visitors,
the resort ’ s marketers started inside. They
incorporated the new brand promise in a 40-page
brand book that contained the history of the resort
and a list of seven attitude words that characterized
how employees should interact with guests. On-
mountain messaging and signs also reminded
employees to deliver on the brand promise. All new
hires received a brand presentation from the director
of marketing to help them better understand the
brand and become effective advocates.

D. Performance Marketing
Financial Social Responsibility

Accountability Marketing

Social Responsible Marketing
• Holistic marketing incorporates social
responsibility marketing and understanding
broader concerns, and the ethical,
environmental, legal, and social context of
marketing activities and programs.


Types of Corporate Social Initiatives
• Corporate social marketing
• Cause marketing
• Cause-related marketing
• Corporate philanthropy
• Corporate community involvement
• Socially responsible business practices

Exercises
• Apple’s iDevices are wildly popular, starting with the iPod followed
by iPhones and iPads. But where’s the flash? Adobe Flash, that is.
Adobe’s Flash, the long-standing multimedia platform behind
approximately seventy-five percent of the animated and
streaming audio and video on the Internet, is not supported by
Apple’s devices. Many purchasers were disappointed after
spending hundreds of dollars on sleek iPads only to realize they
couldn’t play their favorite Internet game or watch that funny
video on their device. And they still can’t, even with the second
generation device, the iPad 3. It seems Apple’s late founder and
CEO, Steve Jobs, didn’t like Flash and would not support it on
Apple’s devices. Instead, app developers must conform to
Apple’s operating system and existing applications on the Web
must convert to HTML5 to play on an Apple product. Adobe’s co-
founders claim Apple is “undermining the next chapter of the
Web” and bloggers exclaim this is not just an “Adobe/Apple
problem…but an Apple/World problem.”

• Does Apple appear to embrace the
marketing concept?
• Research the controversy surrounding this
issue and debate whether Apple did the
right thing for its customers by not including
the ubiquitous Adobe Flash software on
Apple’s products.

Conclusion
• Strategy can be simply defined as a plan for securing a
competitive advantage in a given market.
• Strategy exists at multiple levels in an organisation: corporate,

business unit, and functional levels.
• The marketing concept has a significant role to play in strategy

development and corporate success.
• Competitive marketing strategy aims to establish a profitable

competitive position for the firm against all forces that determine
industry competition.
• Strategy making process has been discussed in the literature in

such terms as strategic market planning and strategic market
management.

For Review
• Why is marketing important?
• What is the scope of marketing?
• What are some fundamental marketing concepts?
• How has marketing management changed?
• What are the tasks necessary for successful
marketing management?

THANK YOU
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1

Dr. Nermin A. Daniel, DBA

• Please ensure your phone and laptop

Marketing Management, presented by Dr. Nermin A. Daniel 11

 Marketing is about identifying and meeting human

Marketing Management, presented by Dr. Nermin A. Daniel 12

 One of the shortest good definitions of

Marketing Management, presented by Dr. Nermin A. Daniel 13

Marketing Management, presented by Dr. Nermin A. Daniel 14

Creating, Delivering, And Communicating

Superior Customer Value.

Marketing Management, presented by Dr. Nermin A. Daniel 15

• A social definition of marketing is that

Goal: deliver a Higher Standard Of Living.

Marketing Management, presented by Dr. Nermin A. Daniel 16

Marketing Management, presented by Dr. Nermin A. Daniel 17

Marketing Management, presented by Dr. Nermin A. Daniel 18

Marketing Management, presented by Dr. Nermin A. Daniel 19

• Xerox in the middle East changed the perception

• In the Middle East and Africa region, Xerox depends

Marketing Management, presented by Dr. Nermin A. Daniel 21

Marketing Management, presented by Dr. Nermin A. Daniel 22

Marketing Management, presented by Dr. Nermin A. Daniel 23

Economists describe a market as a collection

Marketers use the term “ market ” to cover

Marketing Management, presented by Dr. Nermin A. Daniel 24

A marketer is someone seeking a response

Marketers are responsible for stimulating need

Marketing managers seek to influence the

Marketing Management, presented by Dr. Nermin A. Daniel 26

- Customer is called King of the industry as he

- Customers being the asset to any industry

Marketing Management, presented by Dr. Nermin A. Daniel 27

Marketing Management, presented by Dr. Nermin A. Daniel 28

Marketing Management, presented by Dr. Nermin A. Daniel 29

Marketing Management, presented by Dr. Nermin A. Daniel 30

Marketing Management, presented by Dr. Nermin A. Daniel 31

The Key Customer Markets

Marketing Management, presented by Dr. Nermin A. Daniel 32

The Key Customer Markets

Marketing Management, presented by Dr. Nermin A. Daniel 33

The Key Customer Markets

Marketing Management, presented by Dr. Nermin A. Daniel 34

The Key Customer Markets

Marketing Management, presented by Dr. Nermin A. Daniel 35

The Key Customer Markets

Nonprofit and Governmental Markets:

Marketing Management, presented by Dr. Nermin A. Daniel 36

What is marketed !!!!

What is marketer !!!!

Marketing Management, presented by Dr. Nermin A. Daniel 38

Goods: Physical goods constitute the bulk of

Marketing Management, presented by Dr. Nermin A. Daniel 39

Services: A growing portion of business

Marketing Management, presented by Dr. Nermin A. Daniel 40

Events: Marketers promote time-based events

Marketing Management, presented by Dr. Nermin A. Daniel 41

Experiences: By orchestrating several services

Marketing Management, presented by Dr. Nermin A. Daniel 42

Persons: Celebrity marketing is a major

Marketing Management, presented by Dr. Nermin A. Daniel 43

Places: Cities, states, regions, and whole

Marketing Management, presented by Dr. Nermin A. Daniel 44