Marketing Management

Professor Nnamdi Madichie

 Learning Outcomes

By the end of this course the students should be able to:

 Identify the basic marketing concepts and definitions.
 Understand the differences between markets, customer needs,
wants and demand.
 Creatively evaluate marketing as a matching process including
what is meant by “creation & exchange of value.”

6/25/2021
Definition of Key Marketing Concepts
 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

Ch 1 -4 Copyright © 2011 Pearson Education

 Marketing continued
Marketing cuts across sectors:
• For-profits – the usual businesses we are all too
familiar with, e.g., Akagera, Bralirwa, Inyange, etc.
• Non-profits (colleges, charities, hospitals etc.) must
also perform marketing.
– Marketing must both attract new customers and build
relationships with current customers.
– Most people think of marketing as selling and/or advertising.
Its focus is really on satisfying customer needs.
Meet Professor Philip Kotler
The Marketing Process
Customer Needs, Wants, and Demands
• States of deprivation (not created by marketers)they are a basic part

Needs
of the human makeup.
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

• Form that needs take as they are shaped by culture and

Wants individual personality. An American needs food but wants a

Big Mac.
• When backed by buying power, wants become demands.

Demands • Wants backed by buying power

 Market offerings
 Needs and wants are fulfilled through market offerings—some
combination of products, services, information, or experiences
offered to a market to satisfy a need or want.
 Market offerings are not just physical products, but also
services—activities or benefits offered for sale that are
essentially intangible and do not result in the ownership of
anything.
Let’s hear it from Steve Jobs
 Understanding the Marketplace and Customer
Needs
 Market offerings are some combination of products, services,
information, or experiences offered to a market to satisfy a
need or want.
 Market offerings are not just physical products, but also services—
activities or benefits offered for sale that are essentially intangible and
do not result in the ownership of anything.
 Marketing myopia is focusing only on existing wants and
losing sight of underlying consumer needs
Avoiding Marketing Myopia: The iceberg
Principle
Marketing as a matching process
Customer Value and Satisfaction Expectations
Customers
• Value and
satisfaction

Marketers
• Set the right level of
expectations
• Not too high or low
 Activity #1
• Kotler touches on at least three broad
areas of marketing in the video.
• In pairs, discuss these key concepts.
 Exchange & Relationships
• Exchange is the act of obtaining a desired object
from someone by offering something in return.
• Marketers aim at building strong relationships by
consistently delivering superior customer value.
 The matching process
Selecting Customers to Serve…

• Value proposition Set of benefits or values a company promises to

deliver to customers to satisfy their needs
• Market segmentation refers to dividing the markets into segments of
customers.
• Target marketing refers to which segments to go after.
• Demarketing is marketing to reduce demand temporarily or permanently;
the aim is not to destroy demand but to reduce or shift it.
Ch 1 -16 Copyright © 2011 Pearson Education
What Is the Evolution of Marketing?
• Marketing evolution refers to the
distinct phases that businesses have
gone through as they continued to seek
new and innovative ways to achieve,
maintain and increase revenue through
customer sales and partnerships.
• Since the 1900s, a variety of different
strategies have been employed as
various industries created and refined
their marketing approaches.
 What are the Different Stages in the Evolution
of Marketing?
• For our purposes, we’ll discuss four distinct phases of
marketing evolution.
• While experts are somewhat divided in their interpretations
of the various strategies that marketers have used to connect
products with consumers and vice versa, we think these are
the most important steps to study:
– Production orientation
– Sales orientation
– Marketing orientation
– Relationship orientation
Five Eras of Marketing History
Marketing eras over centuries
 The Production Era

• The Industrial Revolution set the stage for modern

marketing. All of the right ingredients were amassed,
resulting in marketing as we now know it: the promotion
of mass-produced consumer products.
– Henry Ford’s Model T: This approach is perhaps best summed
up by a quote from Henry Ford: “If you have a really good thing,
it will advertise itself.”
– The company’s approach was heavy on the text and highly
informational, emphasizing price, quality and standardization.
 The Sales Era: Species Diverge and Brands Emerge
in Marketing
• Leveraging a production orientation is fine if you’re pretty much the only game
in town. From the 1930s onward, though, it became increasingly rare that any
company would permanently enjoy a competitor-free environment.
– So, in response to the pressures of natural selection, businesses developed unique
adaptations. This resulted in two core innovations of modern marketing: the central
importance of brand identities and an emphasis on the selling orientation.
• In the 1920s, Coke realized something: The company wasn’t selling as much
soda in the winter.
• A production-oriented approach like Henry Ford’s would have led to a decrease
in advertising during colder months while reducing bottling.
– Instead, Coca-Cola focused on driving sales by attaching their brand to Santa Claus.
To make it work, marketers had to solidify an image of Santa that would appeal to
consumers.
 The Marketing Era: Intelligent Adaptations Focus
on Meeting Customer Needs
• While traditional marketing had focused on simply getting
products to customers and convincing them to buy, this new
approach was different.
• Marketers were driven to better understand consumers’ needs,
concerns and desires.
– Only then could businesses hope to truly make an impact. By the 1980s,
customers were in charge.
• Example, Apple Breaks Through:
– As a marketing concept, many internal stakeholders were skeptical of
Apple’s 1984 Super Bowl commercial announcing the debut of the
Macintosh personal computer.
 The Relationship Marketing Era

• In this era, Customers and Businesses Coevolve To Create

Cooperative Societies
• Today, it’s common practice for many businesses to employ a
relationship orientation to marketing.
• As a marketing concept, an approach that prioritizes
relationships is focused on encouraging customer retention
and loyalty as well as continued interaction with the brand.
• Digital marketing channels make it easy to deliver re-
engagement incentives to consumers, and social media
campaigns make brands highly accessible.
6/25/2021
Societal marketing
 Societal Marketing
• The Societal marketing concept is the idea that a company
should make good marketing decisions by considering
consumers’ wants, the company’s requirements, consumers’
long-term interests, and society’s long-run interests
 The Future Evolution of Marketing

• Looking ahead:
• The Evolution doesn’t just stop.
• In the future, new approaches to product, customer
and brand positioning will lead to novel marketing
approaches that form the next stage of the evolution
in the field.
• Think about Sustainable and sustainability
marketing.
The evolution of Marketing
 What will Marketing look like in 2021 …and
Beyond?
• As always, new technology and shifting customer needs will lead to
new approaches in marketing.
• The continued adoption of augmented reality (AR) and virtual
reality (VR) will allow savvy innovators to create increasingly
immersive experiences.
• The success of new social media platforms also highlights the
importance of encouraging interaction among consumers.
• Instead of focusing solely on relationships between the business and
its customers, companies will find new ways to participate
constructively and collaboratively within a larger ecosystem led by
consumers.
6/25/2021
Summary of Marketing Orientations…
• Production concept is the idea that consumers will
favor products that are available or highly affordable
• Product concept is the idea that consumers will
favor products that offer the most quality,
performance, and features. An organization should
therefore devote its energy to making continuous
product improvements.
Ch 1 -30
 Marketing Orientations…
Selling concept is the idea that
consumers will not buy enough of
the firm’s products unless it
undertakes a large scale selling and
promotion effort.

Ch 1 -31 Copyright © 2011 Pearson Education

 Marketing orientations…
• The Marketing concept is the idea that achieving organizational
goals depends on knowing the needs and wants of the target
markets and delivering the desired satisfactions better than
competitors do.
 Further reading
• Hinson, R., Boateng, R., & Madichie, N. (2010). Corporate
social responsibility activity reportage on bank websites in
Ghana. International Journal of Bank Marketing, 28(7), 498-
518. https://doi.org/10.1108/02652321011085176
• Hinson, R. E., Madichie, N. O., & Ibrahim, M. (2012). A
dialogic communications interrogation of the online brand
dispositions of banks operating in Ghana. International
Journal of Bank Marketing, 30(7), 508-526.
https://doi.org/10.1108/02652321211274264
 Activity #2
• Using examples, distinguish between the
selling, marketing and societal
marketing orientations or eras.
 Next Steps…
• In the next session, we would be looking at
the marketing environment.
• Following this would be market segmentation,
targeting and position (i.e., STP).
• After this we would be exploring strategic
competitive strategies of marketers based on
these STPs.