WELL COME

TO
MANAGEMENT PROGRAM
Course Name: Principle of marketing
Academic Year: 2013 E.C/ 2021 G.C
Delivery Time: Summer Semester
Course Instructor Name: SOLIYANA K. (MA)
Office Number: F1-02

© 2008 Prentice Hall, Inc. 1–1

 Course description
• Marketing plays a major role in the modern day economy.
• The rise in the standard of living of people in the last four
decades is attributed to the success of Marketing.
• Marketing Management is the business function that identifies
current unfilled needs and wants, defines and measures their
magnitude, determines which target markets the organization
can best serve, and decides on appropriate products, services,
and programs to serve these markets.
• Marketing serves as the link between a society's needs and its
pattern of industrial response. Thus, this course provides you
with an outline of core concepts and issue in Marketing.

© 2008 Prentice Hall, Inc. 1–2

 Course Objectives:
• Understand marketing and its core concepts
• Recognize the environment in which marketing operates
• Develop an understanding of consumer behavior that helps you create
consumer satisfaction
• Develop an understanding of business buying behavior that helps you
create satisfaction for business buyers
• Develop an understanding of market segmentation, targeting and
positioning.
• Develop ability of marketing decision making in different Marketing Mixes.
• Integrate the marketing mix to achieve organizational objectives

© 2008 Prentice Hall, Inc. 1–3

 Principle of marketing
Course outline
CHAPTER I - GENERAL • Processes of consumer buying
INTRODUCTION • Business Buying Behavior
• Meaning and definition of marketing • The Business Buying Decision
• Core Concepts in Marketing Process
• Philosophies • Types of business Buying Decision
CHAPTER II – Marketing Environment Behavior
• The External Environment • Participants of business buying
• Micro Environments process
• Macro Environments CHAPTER IV -Target Marketing:
• The Internal Environment • Market Segmentation
CHAPTER III – ANALYZING • Market segmentation Procedure
CONSUMER AND BUSINESS MARKET • Basis for Segmentation
• Types of Consumer Buying Decision • Market Targeting
Behavior • Market Positioning
 Principle of marketing
Course outline
CHAPTER V - PRODUCT CHAPTER VII -Distribution Channel
• Meaning of Product • The Meaning of Distribution Channels
• Levels of a Product • Major Channels of Distribution
• Classification of Products • Factors Affecting Choice of
• Product Mix and Product Line Distribution Channels
• New Product Development CHAPTER VII-Promotion
• Branding • The Meaning of Promotion
• Packaging • The Promotion Mix Elements
• Labeling • Sales Promotion
CHAPTER VI Pricing Products • Public Relations and Publicity
• The Meaning of Price • Advertising
• Factors Affecting Pricing Decisions • Personal Selling
• Pricing Objectives
• General Pricing Approaches
• New Product Pricing Strategies
• Price Adjustment Strategies
• Product Mix Pricing Strategies
 Principle of marketing
EVALUATION:
 Individual assignment (presentation) -----30%
 Test -----------------------------------------------15%
 Attendance with participation ---------------5%
 Final examination -----------------------------50%
References:
• Kottler, P. & Armstrong, G (2004) Principles of Marketing
(10thedn), Pearson Education, Pataparganj, Delhi.
• Kotler, P &Keller, K (2006) Marketing Management
(12thedn), Pearson/Prentice-Hall, Upper Saddle River, NJ.
• Palmer, A (2000) Principles of Marketing, Oxford University
Press, New York.
• Perrault, Jr. D & McCarthy, E (2005) Basic Marketing: A
Global Managerial Approach (15thedn), Tata McGraw-Hill
Publishing Company, New Delhi.
• Stokes, D (2002) Marketing (3rdedn) Continuum, London.
 CHAPTER ONE
MEANING OF MARKETING
What is marketing? Many people think of marketing only as
selling and advertising and no wonder, for everyday we are
bombarded with television commercials, direct mail offers, sales
calls, and internet pitches.
Broadly defined marketing is a social and managerial process
by which individuals and groups obtain what they need and
want through creating and exchanging value with others.
A widely accepted definition is the one used by the UK Chartered
Institute of Marketing (CIM): ‘Marketing is the management
process, responsible for identifying, anticipating and satisfying
customer requirements profitably.’
Contd……….

The American Marketing Association’s (AMA) latest definition of

marketing was produced in January 2008: ‘Marketing is the activity,
set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers,
clients, partners and society at large.’

Marketing management is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods, and
services to create an exchange that satisfy individual and
organizational goals." (Philip Kotler)

“Marketing is the creation and delivery of standard of living to the

society
Contd…….
1. Customer Needs, Wants and Demands
The most basic concept underlying marketing is that of human needs.
Human needs are states of felt deprivation. They include basic physical
needs for food, clothing, warmth, and safety; social needs for belonging
and affection; and individual needs for knowledge and self expression.
Wants are the form human needs take as they are shaped by culture, and
individual personality. An Ethiopian needs food but wants ‘Injera’ with
‘Doro Wot’. When backed by buying power, wants become demands.

2. Marketing offers—products, Services and Experiences Consumers’

needs and wants are fulfilled through marketing offers- some combination
of products, services, information or experiences offered to market to
satisfy a need or want. Marketing offers are not limited to physical
products. They also include services, activities or benefits offered for sale
that are essentially intangible and do not result in the ownership of
anything.
contd……
3. Customer value and satisfaction
Customers’ value refers to the customer’s evaluation of the
difference between all the benefits and all the costs of a
marketing offer relative to those of competing offers.
Customer satisfaction is the extent to which a product’s
perceived performance matches a buyer’s expectation.
Marketers must be careful to set the right level of
expectations. If they raise expectations too high, buyers
will be disappointed. If they set expectations too low, they
may satisfy those who buy but fail to attract enough
buyers.
Contd…..

4. Exchanges and Relationships

Exchange is the act of obtaining a desired object from
someone by offering something in return. Marketers want to
build strong relationship by consistently delivering superior
customer value.
5.Markets:the concept of exchange and relationships lead to
the concept of market.
A market is the set of actual and potential buyers of a product.
These buyers share a particular need and want that can be
satisfied through exchange relationships.
Marketers & Prospects
When one party is actively seeking an exchange with the other party, we call the
first party a marketer & a second party a prospect.

A marketer is someone seeking one or more prospects that might engage in an

exchange of values. A prospect is someone whom the marketer identifies as
potentially willing and able to engage in an exchange of values.
Marketing Management Orientations
 The production concept:
The production concept holds that consumers will favor products that are available
and highly affordable. Therefore, management should focus on improving
production and distribution efficiency.
This concept is one of the oldest orientations that guides sellers.
The production concept is still a useful philosophy in two types of situation.
1. The first occurs when the demand for a product exceeds the supply.
2. The second situation is where the product’s cost is high and has to decrease to
expand the market
The Product Concept:
 The product concept holds that consumers will favor products that
offer the most in quality, performance, and innovation features.
Under this concept marketing strategy focuses on making continuous
product improvement.
Managers in product oriented organization focus their energy on
making superior products and improving them over time.
Contd……..
The Selling Concept
Many companies follow the selling concept, which holds that consumers
will not buy enough of the firms products unless it under takes a large-
scale selling and promotion effort.
The concept is typically practiced with unsought goods- those that
buyers do not normally think of buying, such as insurance or blood
donations. Most firms practice the selling concept when they face
overcapacity. Their aim is to sell what they make rather than make what
the market wants.
The Marketing Concept
 The marketing concept holds that achieving organizational goals
depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors do.
Under this concept, customer focus and value are the paths to sales and
profit.
Contd…….

The Societal/holistic Marketing Concept

Holistic marketing recognizes that “everything matters” with
marketing and that a broad, integrated perspective is often
necessary.
The societal marketing concept holds that marketing strategy
should deliver value to customers in a way that maintains or
improves both the consumer’s and the society’s well –being.
 
Any question?