Chapter 13

Marketing
Developing & implementing
customer oriented marketing
plans
:The Marketing Concept
After world war ii in the early 1950s, the
marketing concept (philosophy) emerged, it
:had three parts
A customer orientation, find out what •
.consumers want and provide it for them
A service orientation: make sure •
everyone in the organization has the same
objective- customer satisfaction even if they
.are not in the customer service department
A profit orientation: market those goods •
and services that will earn the firm a profit
.The Marketing Concept contd
1990s: adopting the customer* •
relationship management (CRM) which is
learning as much as possible about customers
and doing everything they can to satisfy them
or even delight them with goods and services
(TQM)
TQM looks at all stakeholders not only at the •
customer-TQM applies competitive
benchmarking which is comparing one’s
company to the best in the industry-TQM
.maintains the same profit orientation
 Defining marketing
Marketing is the process of determining customer needs and wants •
and then providing the customers with goods and services that
.meet or exceed their expectations
:The goal of the marketing process is •
FIND A NEED AND SATISFY (FILL) IT
Note: nonprofit organizations use marketing techniques too. For •
.example charities use marketing to raise funds
Marketing Mix (4 Ps) •
Product •
Price •
Place •
Promotion •
Marketing management •
Is the process of planning and executing the conception, pricing, •
promotion, and distribution (place) of ideas, goods and services to
.create mutually beneficial exchanges
 the marketing
Research the customer needs-1 –
process
Develop a product to satisfy the need-2 –
Concept testing: develop an accurate description of your product and ask-3 –
.people whether the concept (idea) appeals to them
Go to outsourcing a manufacturer who has the equipment and skills to-4 –
design such a product and begin making prototypes; samples of the product
that you take to the customers to test their reactions
Test marketing: the process of testing product prototypes among potential-5 –
users
Start the production process-6 –
Determine and design: 1- package 2- brand name 3- price-7 –
)Setting an appropriate price(
Getting the product to the right place when and where the customer want it ,-8 –
through intermediaries who distribute goods from producers to consumers.
(middlemen)
Developing effective promotional strategy-9 –
.Build strong relationships with customers -10
 Consumer markets and
business-to-business markets
Market: consists of people with unsatisfied needs and •
wants who have both the resources and the
willingness to buy
:There are 2 major markets in business •
The consumer market: consists of all the •
individuals or households that want goods and services
for personal consumption
Business to business (B2B) markets: consists •
of all the individuals and organizations that want goods
and services to use them in producing other goods and
service to sell at a profit
 Differences between consumer and
business to business (B2B) markets
The number of customers in the B2B market is relatively -1 •
.few as compared to customers who are millions

The size of B2B market is relatively large ie businesses -2 •

.buy in large quantities or in bulk

B2B markets tend to be geographically concentrated -3 •

.while consumers are wide spread all over the country

Business buyers generally are more rational ie not much -4 •

.influenced by culture and other factors ie trained buyers

.B2B sales tend to be direct no middlemen are involved -5 •

 The consumer decision making
process
• The different influences • Decision making
that influence the process:
consumer buying • Problem recognition
behavior: • Information search
• Marketing mix influences: •
product, price, place, Alternative evaluation
promotion • Purchase decision
• Socio cultural influences: • Post purchase evaluation
reference groups, family, social ( cognitive dissonance)
class, culture, subculture
• Psychological influences:
perception, attitudes, learning,
motivation
• Situational influences: type of
purchase. Social surroundings,
physical surroundings,
previous experience