PRINCIPLES OF MARKETING /MBA/Aug2021

Compiled by: SEID TEMAM (Ins)

PART ONE CHAPTER 1

THE SCOPE OF MARKETING MANAGEMENT
AND ITS ENVIRONMENT
1.1THE CONCEPT OF MARKETING
 Marketing:-is delivering customer satisfaction at profit.
CORE ELEMENTS OF MARKETING

 EXCHANGE (key)
 Needs, Wants and Demand
 NEED:-
Felt of deprivation for basic necessity… (Natural)
E.g. Food, Air, shelter, cloth etc.
 WANT: -are desires for specific satisfiers of these needs
-Shaped by social forces and marketers
 DEMAND :-are wants that are backed by ability & willingness

 PRODUCTS:- anything that satisfy human needs and wants

Offering through exchange. Includes:-
ð Goods:-generally shows Tangibility
ð Services:- generally shows Intangibility
ð Others :- ( eg) Person, Place, Events, Ideas etc…

VALUES, UTILITY AND SATISFACTION

ý Values:- consideration in terms of something
ý Utility:- consumer estimate of product capacity to satisfy
ý Satisfaction:- comparing value of a product and expectation
Value >Expected  delighted
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PRINCIPLES OF MARKETING /MBA/Aug2021
Compiled by: SEID TEMAM (Ins)
Value = Expected  SATISFIED
Value < Expected  dissatisfied

MARKETING MANAGEMENT
ð Is the process of planning and executing the conception, pricing,
promotion & distribution of ideas, goods, services to create exchange
that satisfy individual and organization objectives
OBJECTIVES OF MARKETING

 Mainly of two

✌ Keeping actual customers by satisfying

✌ Attracting new or potential customers by superior values

MARKETING PHILOSOPHIES ( EVOLUTIONS OF MARKETING)

ð Marketing modern activities has Generally Passes of marketing
philosophies /evolution.

ð PRODUCTION CONCEPT
 Concentrates widely available products and Quantity.
ð PRODUCT CONCEPT
Including features like:- quality of a product
ð SELLING CONCEPT
Undertake an aggressive selling & promotional effort
ð MARKETING CONCEPT
concentrated customer satisfaction by all qualities
ð MARKETING SOCIETAL CONCEPT

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PRINCIPLES OF MARKETING /MBA/Aug2021
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Society’s concern adds to marketing concept

MARKETING VS SELLING

External Internal
 Customer satisfaction product volumes
 Long pattern/ run/ short pattern/run/
 Profit – oriented sales - oriented
 Wider Narrower

1.3 MARKETING ENVIRONMENT

ð Marketing involvement and surrounding
ð Two basic types of marketing environment
Namely:-
 Internal marketing environment
 External marketing environment
INTERNAL MARKETING ENVIRONMENT
 Within an organization
 Controllable by their nature
EXTERNAL MARKETING ENVIRONMENT
 Outside of organization
 Uncontrollable factors by their nature
ð Needs Adaptation /Adjustment
ð PESTN factors
 Political - legal environment
 Economic environment
 Socio – cultural marketing environment
 Technological environment
 Natural environment

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PRINCIPLES OF MARKETING /MBA/Aug2021
Compiled by: SEID TEMAM (Ins)

 Political - legal environment

The influence of politics & laws in the marketing
environment

 Economic environment
Inflation, purchasing power of money
Economic cycle
 Socio – cultural marketing environment
Culture :- total way of life
 Technological environment
Manuals must change to computerized/competitive
 Natural environment
Eg: Flooding, earth quake, fire and so on

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PRINCIPLES OF MARKETING /MBA/Aug2021
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1.4 Marketing Research

ð is a systematic design, collection, analysis and
reporting of data and findings relevant to a specific
marketing situation facing the company
ð to make a better decision by marketer

Marketing Research Process

1. defining the problem and objective
2. developing research plan
3. collecting information
4. analyzing information
5. presenting finding
1/defining the problem and objective

ð a well-defined problem half- solved

2/developing research plan

ð this area should done by professionals

ð to reduce risk/cost/ and make profit

Data source Research approach Research instrument Sampling plan Contact

method
Primary -Survey - question open/close -Sampling size - personal
Secondary - experiment/laboratory -interview - sampling unit - mail
- observation - tell
- Focus group
3/collecting information

ð most expensive and most liable to error

4/Analyzing information

ð Tabulating and making analyze condition

5/Presenting findings
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PRINCIPLES OF MARKETING /MBA/Aug2021
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ð Should present major findings on relevant manner

1.5 MARKET SEGMENTING, TARGETING AND POSITIONING

1. MARKET SEGMENTING
ð Market segmentation involves a process of dividing the
total market for a good or services into several smaller
internally homogeneous group
ð Segmenting plays a vital role for success or failure ties
of an organization
Segmenting as consumer and business market

 Consumer market
- Buying goods for personal consumption
 Business market
- Resell for merchandising or input for manufacturing to make profit.

Segmenting consumer market

ð Includes

Geographic segmentation
ð Dividing by location
E.g. regions, cities -----etc.
Demographic segmentation
ð The most common basis & They are frequently used
E.g. age distribution, social class, age-------etc.
Psychographic segmentation

ð Involves examining attributes related to thinking, feeling, and

behaviorE.g.life style, personality -----etc

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ð .Behavioral segmentation Basis of product related behavior
ð E.g. usage rates
2. MARKET TARGETING
ð A special attention or emphasis Is given what we segment
the market
ð Analyzing or consider
- It should be compatible with organization goals
- It should be generate profit -----etc.
3. MARKET POSITIONING
ð It is the act of designing the company’s image and value
offer for customers understand and appreciate what a
company stands for
ð i.e. putting a product image on customers mind
E.g.
- Low price position
- High quality position
- Advance technology position

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PRINCIPLES OF MARKETING /MBA/Aug2021
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PART TWO
BUYING BEHAVIOUR

 In every market, we have either a consumer market or business

market
 Consumer market Vs. Business market
 Market that involved - Market that involved
A person/consumer seeking profit
CONSUMER BUYING BEHAVIOUR
 Consumer buying behavior refers to the buying behavior of the
final consumer who buy products for personal consumption
ð the composition of the consumer market is constantly changing
&complex by its nature…..Because consumers vary in age,
income, educational level, mobility pattern and test
The buying decision process

ð To deal with the marketing environment and make purchase

consumers engage in a decision process ( 6 stages)
1. Need recognition (internal or external)
2. Level of involvement
3. Identification of alternatives
4. Evaluation of alternatives
5. Purchase decision
6. Post purchase behavior:- if –ve feedback dissonance

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CBB MODEL
Marketing stimuli Buyers black box Buyers response
- 4p’s conMIND - Brand choice
- PEST - Purchase choice