Marketing Chapter 1 PDF

# MARKETING Dr. hosni hammad ## Chapters: - The field of marketing. - The dynamic marketing environment - Strategic marketing planning. - Marketing research and information - Consumer markets and buying behavior. - Market segmentation and target-market strategies. - Product planning and developme...

# MARKETING Dr. hosni hammad ## Chapters: - The field of marketing. - The dynamic marketing environment - Strategic marketing planning. - Marketing research and information - Consumer markets and buying behavior. - Market segmentation and target-market strategies. - Product planning and development - Product -mix strategies. - Price determination. - Pricing strategies. - Channels of distribution. - The promotional program. ## CHAPTER ONE: - The Field of Marketing ### 1. Nature and Scope of Marketing: #### 1.1. Exchange as the focus: Marketing can happen in any time one social unit (person or organization) wants to exchange something of value with another social unit. So, the essence of marketing is a transaction (exchange process It means that marketing consists of activities designed to facilitate exchanges required to satisfy human needs. There are four conditions must exist for a marketing exchange to take place (see textbook). #### 1.2. Meaning of Marketing: Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying product to target markets to achieve organizational objectives. This definition has two Important implications: - The entire system of business activities should be consumer-oriented. - Marketing should start with an idea about a want- ## 2. Evolution of Marketing Marketing has evolved through three successive stages of development: - Production orientation. - Sales orientation. - Marketing (consumer) orientation. ### 2.1. Production-orientation stage: In a period when the demand for products exceeds the supply, the main focus in business was to produce large quantity of products. The main concern of organizations was how to increase output. This stage was characterized by: - Customers would seek out and buy well-made products with reasonable price. - Executives with backgrounds in production and engineering develop the firm’ strategy. - Seeking customers was seen as not important function. - The term marketing was not in use. - The main focus was efficiency and cost control. ### 2.2. sales-orientation stage: In this stage, the problem became not how to produce, but how to sell the products. The main characteristics are: - Heavy reliance on promotional activities to sell products. - Selling-related activities and sales people began to gain more responsibility from the top management. - The main focus of the firm in this era became how to sell product. ### 2.3. Marketing-orientation stage: Some factors have led to the continued evolution of marketing: - Supply exceeds demand. - More competition. - Technology development. The main focus of this stage was to identify customers' needs and produce products to satisfy those needs as efficiently as possible. The main characteristics are: - Companies are mainly concerned With seeking the needs and wants of customers. - All the activities, operations and decisions of the organizations are customer-oriented. - Some tasks (such as product planning, pricing, inventory control) which were dominated by other managers became under the responsibility of the top marketing executives - Marketing is included in long-term and short-term company planning. - Wants and needs of customers must direct the organization. ## 3. Differences between marketing and selling: Marketing and selling are not the same. The basic difference is that selling is internally focused, while marketing is externally focused. The following table show the main differences: | | selling | marketing | |---------------|-------------------------------------------------|-----------------------------------------------------------| | Emphasis | Emphasis on product | Emphasis on customers wants | | First task | First make the product and try to sell the product. | First identify customers' wants and then produce a product to satisfy those wants. | | Company focus | The company is sales volume-oriented | The company is profit-oriented. | | Planning | Planning is short-run | Planning is long-run | | Focus on | Emphasis on seller needs | Emphasis on buyers needs | ## 4. The marketing concept: executives began to recognize that marketing is very important to the success of their organizations, in turn, a new philosophy of doing business emerged. Called "the marketing concept". Or customer orientation. It includes 3 elements (beliefs): - Customer orientation. - Coordination of marketing activities. (marketing mix). - Achieving the org. objectives (maximizing profits). ## 5. Relationship marketing: - Building a long-term relationship with customers. - Establishing a connection with customers. - Looking to customer as being a partner.