Chapter 1

The nature and scope of Marketing

By
Dr. Raafat Youssef Shehata

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 Marketing

Marketing is defined to be the process

responsible for anticipation, identification ,
and satisfaction of customer needs through a
profit

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 Marketing manager

• He is the bridge between the company and the customers

• His functions are (APIC)
Analysis
Planning
Implementation
Control

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What are Consumers’ Needs,
?Wants, and Demands
Needs - state of felt deprivation
including physical, social, and
individual needs i.e hunger

Wants - form that a human need

takes as shaped by culture and
individual personality i.e. bread

Demands - human wants

backed by buying power i.e.
money

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American Association of Advertising
Agencies

• This ad demonstrates
that advertising can’t
make consumers buy
things that they don’t
need despite high-
pressure selling.

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Marketing and Sales Concepts
Contrasted

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 Push versus pull strategies

• A push strategy involves the manufacturer using its sales

force and trade promotion money to induce intermediaries to
carry, promote, and sell the product to end user.
• A pull strategy involves the manufacturer using advertising
and promotion to induce consumers to ask intermediaries for
the product, thus inducing the intermediaries to order it

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Marketing Management
Philosophies
Production
Production Concept
Concept

Product
Product Concept
Concept
Selling
Selling Concept
Concept
Marketing
Marketing Concept
Concept

Societal
Societal Marketing
Marketing Concept
Concept

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 Production concept

The production concept holds that consumers will prefer

products that are widely available and inexpensive.

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 Product concept
-The product concept holds that consumers will favor those products that
offer the most quality, performance, or innovative features

-In order to compete effectively, the product needs to have features that
appeal to individual consumers. In a product-oriented firm, the products
are designed to incorporate a large number of features in order to meet
the needs of a large number of consumers. Unfortunately, the cost
becomes too high for most people, and of course people do not want to
pay for features that they are unlikely ever to use.

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 Selling concept

The 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.

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 Marketing concept
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.
Reactive marketing orientation: understanding and meeting consumers’ expressed needs.
Proactive marketing orientation: researching or imagining latent consumers’ needs through
a “probe-and-learn” process
e.g. Wal Mart

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 Company Orientations towards
business
Marketing Concept

Reactive market Proactive marketing

Understanding and meeting

. Finding latent consumers’
consumers’ expressed needs needs through a “probe-and-
learn” process.

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 Marketing Concept Evolution
Production Concept Consumers prefer products that are widely
available and inexpensive

Product Concept Consumers favor products that offer the

most quality, performance, and innovative
features
Selling Concept Consumers will buy products only if the
company aggressively promotes/sells these
products
Marketing Concept Focuses on needs/wants of target markets
& delivering value better than competitors

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 Marketing orientation and
increasing customer value
British airways and American airlines may use the
same kind of aircraft to fly executives first class
between New York and London but British
airways (BA) beats American airlines by meeting
customers’ needs for convenience and rest at
every step of the journey
BA value delivery system includes a separate first
class express check in and security clearance
plus a pre-flight express meal service in the first
class lounge so that time pressed executives
can maximize sleep time on the plane without
the distraction of in flight meals . BA was the first
to put seats that recline into perfectly flat beds
into first class section

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Selling focuses on the needs of the
seller ,
Marketing on the needs of the
buyers

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Marketing orientation

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Marketing orientation

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 Internal marketing

-It is the creation of customer focus concept

within the organization

-Marketing mix of internal marketing

-Training and education

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 The 4 P’s & 4 C’s of the
Marketing Mix
• 4 P’s • 4 C’s
– Product – Customer Solution
– Price – Customer Cost
– Place – Convenience
– Promotion – Communication

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Social Responsibility and
Marketing Ethics

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 Ethics
• It is the science which determines what is
right and what is wrong

• Products may be:

1. Ethical and legal
2. Ethical and illegal
3. Unethical and legal
4. Unethical and illegal

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 Ethics and marketing mix

1. Product
2. Price
3. Place
4. Promotion

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 Sex sells ,but did Calvin Klein
cross the line? 1995
-The print ads show some models
revealing their underwear

-These ads are shot by the same Steven

Meisel who photographed Madonna’s
controversial book sex)

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 Social responsibility

• It is the obligation of any

organization to increase its positive
effects and decrease its negative
effects on the society

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The Avon walk for breast cancer

Avon is the largest corporate

supporter of the breast cancer
cause with more than $ 250
million generated since the
first program in 1992

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 Relationship Marketing

• Relationship marketing has the aim of building mutually

satisfying long-term relationships with key parties—
customers, suppliers, distributors, and other marketing
partners.
• The ultimate outcome of relationship marketing is the building
of a unique company asset called a marketing network.

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levels of customer relationship 5
1. Basic relation .
2. Reactive relation.
3. Accountable relation .
4. Proactive relation .
5. Partnership relation.

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Many Accountable Reactive Basic or
customers/ reactive
distributors
Medium No. Proactive Accountable Reactive
customers/
distributors
Few customers/ Partnership Proactive Accountable
distributors

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Morgan and Hunt model

commitment
Co-operation

Trust

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