Strategic

Marketing
Marketing
overview
& Marketing
Process
Dr. Mohamed Abdelazim

?What Is Marketing
Quick:
Quick What's the first thing you think of when
you hear the word marketing?

Do you imagine
Salespeople talking up their company's
products with potential customers?
Flashy billboard ads lining a highway?
Finance managers calculating the possible
profits that a new product may bring in?

?What Is Marketing
If you envisioned any or all of these
things, you're on the right track.
selling, advertising, and profitability
calculations are all important parts of
marketing.
But marketing consists of so much
more.

Why is marketing
?important
Financial success often depends on marketing
ability.
Finance ,operations, accounting, and other business
functions will not really matter if there is not
sufficient demand for products and services so the
company can make a profit.
Many companies have now created a Chief
Marketing Officer or CMO
Position to put marketing on a more equal footing
with other C-level executives, such as the Chief
Executive Officer (CEO) and Chief Financial Officer
(CFO).
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We can notice the importance

:of marketing in
Sustained and steady top line growth.
Achieving Customer loyalty/retention.
Building brands and a loyal customer
base.
Intangible assets that make up a large
percentage of the value of a firm.

?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

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Education
2011 Pearson
Copyright

7 -Ch 1

The Marketing Process

Customer Needs, Wants, and

Demands

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Market Offerings: Products, Services

and Experiences
Market offerings are some combination of
products, services, information, or
experiences offered to a market to satisfy its
.
needs or wants
Marketing myopia is focusing only on
existing wants and losing sight of underlying
.
consumer needs

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Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve

Market segmentation refers to dividing

.the markets into segments of customers
Target marketing refers to which
.segments to go after

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Preparing an Integrated
Marketing Plan and Program
The marketing mix is the set of tools (four
Ps) the firm uses to implement its marketing
strategy. It includes product, price,
. promotion, and place
Integrated marketing program is a
comprehensive plan that communicates and
delivers the intended value to chosen
. customers
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Views on the Marketing Processes

3-C Analysis
Customer
Competitor
Company

S-T-P Marketing
Segmentation
Targeting
Positioning

4 Ps Marketing Plan
Product
Pricing
Promotion
Place

The Functional View

Views on the Marketing Processes

Understanding
Customer
Value

Creating
Customer
Value

Capturing
Customer
Value

Delivering
Customer
Value

The Process View

Sustaining
Customer
Value

Understanding Customer
Value
Value is defined as
The perceived worth in monetary units
of the Set of
Economic, Functional ,Technical and
Psychological Benefits
Received By The Customer
In Exchange
For The Price Paid
For a Product Offering
Taking into consideration
The Available Offerings and Prices

Understanding Customer Value

Psychological

Functional

Economi
c

Plea From an Anonymous

Customer
Dont Sell me Clothes, Sell me a sharp appearance,
.style and attractiveness
Dont Sell me a House, Sell me comfort,
contentment, a good investment and a pride of
.ownership
Dont Sell me Toys, Sell my children happy
.moments
Dont Sell me Insurance, Sell me peace of mind, and
.a great future for my family and me
Dont Sell me Books, Sell me pleasant hours and
.the profits of knowledge
Dont Sell me Computers, Sell me the pleasure and
.profits of the miracles of modern technology

..The Moral is
Dont Sell me THINGS,
THINGS Sell me Ideas, Feelings,
.Self-respect, Home, Life and Happiness

PLEASE DONT SELL ME

THINGS

A successful differentiation
strategy should

Generate
Customer
Value

Provide
Perceived
Value

Be Difficult
to Copy

Different companies may emphasize

different conceptual approaches to
marketing

Production Orientation:
The Belief Behind It :
Consumers prefer products that are widely
available and inexpensive.
Company Focus:
High production efficiency, low costs, and
mass distribution of product

Different companies may emphasize

different conceptual approaches to
marketing

Selling Orientation:

The Belief Behind It :

We have to sell our products
aggressively, because consumers
won't buy enough of them on their
own.
Company Focus:
Using a battery of selling and
promotional tools to coax
consumers into buying, especially
unsought goods (such as insurance)

Different companies may emphasize

different conceptual approaches to
marketing
Marketing Orientation:

The Belief Behind It :

The key to achieving our goals is our
ability to be more effective than our
rivals in creating, delivering, and
communicating value to our target
customers.

Company Focus:
Target markets, customer needs,
coordination of all company functions
from the target customer's point of view

Different companies may emphasize

different conceptual approaches to
marketing
Societal Marketing Orientation:
The Belief Behind It :
Our task is to determine our target
customers' needs, wants, and interests
and to satisfy them better than our rivals
do, but in ways that preserve or enhance
customers' and society's well-being.
Company Focus:
Building social and ethical considerations
into marketing practices; balancing profits,
consumer satisfaction, and public interest

Building Customer
Relationships

Customer relationship management

(CRM): The overall process of building and
maintaining profitable customer relationships
by delivering superior customer value and
.satisfaction

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Building Customer Relationships

Partner Relationship Management
Partner relationship management
involves working closely with partners in
other company departments and outside the
company to jointly bring greater value to
.customers

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Capturing Value from Customers

Creating Customer Loyalty and Retention

Customer lifetime value is the value of

the entire stream of purchases that the
customer would make over a lifetime of
.patronage

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Capturing Value from

Customers
Growing Share of Customer
Share of Customer
is the portion of the customers purchasing
that a company gets in its product
.categories

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Capturing Value from

Customers
Building Customer Equity
Customer equity
is the total combined customer lifetime
.values of all of the companys customers

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Capturing Value from

Customers
Building Customer Equity
Building the right relationships with the
right customers involves treating customers
as assets that need to be managed and
maximized.
Different types of customers require
different relationship management
strategies.
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