Prof. DR. Nihaya A. AL-Telbani

Amani A. Abu Mandeel

Marketing Management (EBU2303)

3rd.Nov.2016

Marketing Management: A survey for the material in mid-term exam.

1

1 .Define Marketing ? In your opinion which is the best definition ? Why?There are many definitions for Marketing:

1.Meeting needs of customers profitably. "This definition is the basic definition."

2.The American Marketing Association " AMA ", offered a formal definition : " Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customers relationships in ways that benefit

the organization and its stake holders" .

3 .Social definition: " Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering,

and freely exchanging products and services of value with others".

)b ( In my opinion, the third definition, which is " Social definition " is the best one ; because it focuses on the concept of social responsibility.

2".Exchange and transaction"

( A) What are the ways of obtaining a product?

1.Self-produce, such as, fishing, hunting, making bread . 2.Using force, such as, hold up, burglary.

3.Begging. 4.Exchange.

(B) What are the conditions for the exchange process to exist?

We have FIVE conditions:

1.There are at least two parties.2.Each party has something that might be of value to the

other party.3.Each party is capable of communication and delivery.

4.Each party is free to accept or reject the exchange offer.2

5.Each party believes it is appropriate or desirable to deal with the other party.

(C) Define " Exchange."

A process of obtaining a desired product/ service from someone by offering something in return.

(D) What is " Transaction " and " Transfer?"

Transaction: It is a trade of values between two or more parties " traded values could be money or Goods or services. Transfer: ( A ) gives ( x ) to ( B ) and does not receive anything tangible for return.So, ( x ) is as a gift.

3".What is Marketed"? 1.Goods: such as, cars, refrigerators, television sets, machines…

2.Services: Airlines, hotels, car rental firms, barbers and beauticians, maintenance, doctors, software, programs.

3.Events: major trade shows, artistic, performance, company anniversaries, Olympics, World Cup.

4.Experiences: by orchestrating several services and goods. For example: paying to conduct the Chicago Symphony Orchestra for five minutes. OR, Climbing Mount Everest.

5.Persons: Madonna, Oprah winfery, the Rolling Stores, Aerosmith, Michael Jordan.6.places: Cities, states, regions, and whole nations compete; to attract tourists.

7.properties: are Intangible Right.Investment companies and bank are involved in marketing securities to both institutional and individuals investors.

8.Organization: they actively work to build a strong, favorable, and unique image in the minds of the target publics.

9.Information: produced by schools and university to their students, partners, and communities.

10.Ideas: from the political parties.

3

4.Who Markets? Everyone does Marketing.Marketer: is someone who seeks a response ( attention, purchase, a vote, a donation ).

(A) What are possible demand states that the marketer may face?

1.Negative demand: Consumers dislike the product and may even pay a price to avoid it.2.Nonexistent demand: Consumers may be unaware or uninterested in the product.

3.Latent demand: Consumers may share a strong need that cannot be satisfied by an existing product.

4.Declining demand: Consumers begin to buy the product less frequently or not at all.5.Irregular demand: Consumers purchases vary on a seasonal, monthly, weekly, daily, or

even hourly basis.6.Full demand: Consumer are adequately buying all products put into the marketplace.

7.Overfull demand: More consumers would like to buy the product than can be satisfied.8.Unwholesome demand: consumers may be attracted to products that have undesirable

social consequences.

What is required as a result ?)) B In each case, marketers must identify the problems of demand state and then determine a plan for action to shift the demand to a more desired state.

5.How Business and Marketing are changing? OR / Explain the following as changes in the Business and Marketing?

There are TEN changes which is:

1 .changing technology: the industrial age was characterized with inventory. Much of today's business is carried on over electronic networks, internet extranets, and internet.

2.Globailzation: It's easier for companies to market in other countries and easier for consumers to buy products and services from marketers in other countries.Such as, electronic market, shopping .

4

3.Deregulation: Many countries have deregulated industries to create greater completion and growth opportunities.

4.Privatization: Many countries have converted public companies to private ownership and management to increase their efficiency.

"Efficiency : reach targets with less possible cost" . "Effectiveness : achieve objectives" .

5.Customer empowerment :*Customers increasingly expect higher quality and service and some

customization.*They perceive fewer real product differences and show less brand loyalty.

*Consumers shop more intelligently.*They are showing greater price sensitivity in their search for value.

"Empowerment happened as a result of ending Monopoly, and create competition among producers".

6.Customization: The company is able to produce individually differentiated good whether ordered in person, on the phone, or online; because items are cut to order, the company does not have to keep as much inventory around.

7.Hegihtened competition: Brand manufactured are facing intense( fear ) competition from domestic ( local, internal ) and foreign ( global, external, international ) brands,

which is resulting in rising promotion costs and shrinking profit margins .8.Industry convergence: New opportunities lie at the intersection of two or more

industries. Such as, -pharmaceutical companies, at one time essentially chemical companies, are now adding

biogenetic research capacities in order to formulate new drugs. -New cosmetics ( cosmoneuticals ).

9.Retail transformation: Store-based retails are facing growing competition from catalog houses, direct-mail firms, newspaper, magazines, and TV direct-to-customer ads; home shopping TV, and e-commerce.So, they began building entertainment into stores with coffee bars, lectures, demonstrations, and performance.

10 .was deleted.

6.Explain the different concept of marketing?

A. The Production Concept :

*It's one of the oldest concept in business.

5

*It holds that consumers will prefer products that are widely available and expensive.*Managers of production-oriented business concentrate on achieving high production efficiency.

B. The Product Concept :

*It holds that consumers will favor those products, that offer the most quality, performance, or innovative features.

*A new or improved product will not necessarily be successful unless the product is priced, distributed, advertised, and sold properly.

C. The Selling Concept :

*It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products.

*The organization must, therefore , undertake an aggressive selling and promotion effort.

*The selling concept is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as , insurance, encyclopedias, and funeral plots.

D. The Marketing Concept :

*It has emerged in the mid-1950s.*Instead of a product-centered, " make-and-sell " philosophy, business,

shifted to customer centered, " sense-and-respond " philosophy.*Instead of " hunting ", marketing is " gardening. "

*The job is not to find the right customers for your products, but the rights products for your customers.

*Selling focuses on the needs of the seller; marketing on the needs of buyers .

E. The Holistic Marketing Concept :

I am going to discuss it in the next question.

7 ".The Holistic Marketing Concept"

(A ) What forces called for a new marketing practice?

6

1.Companies need fresh thinking about how to operate and compete in a new marketing environment.

2.Marketers in the twenty-first century are increasingly recognizing the need to have a more complete, cohesive approach that goes beyond traditional applications of the marketing concept.

(B ) What developed as a result?

The Holistic Marketing Concept.

(C) List the main components of the suggested solution in " B? "

1.Relationship marketing. 2.Integrated marketing.3.Internal marketing. 4.Social responsibility marketing.

8.Explain the components of the Holistic Marketing Concept ?

A. Relationship marketing :

*It has the aim of building mutually satisfying Long-Term relationships with key parties( shareholders )—customers, suppliers, distributors, and other marketing partners; in order to earn and retains their business.

*It builds strong economics, technical, and social ties among the parties.

*It involves cultivating the right kind of relationships with the right constituent groups.

*Marketing must not only do Customer Relationship Management ( CRM ), but also Partner Relationship Management ( PRM ).

B. Integrated Marketing:

*Marketing activities is in terms of the marketing mix, which has been defined as: The set of marketing tools the firm uses to pursue its marketing objectives.

*McCarthy classified these tools into four broad groups, which he called the four Ps of marketing : product, price, place, and promotion.

*Marketing-mix decisions must be made for influencing the trade channel as well as the final consumers.

7

*The four Ps represent the sellers' view of the marketing tools available for influencing buyers. From a buyer's point of view, each marketing tool is designed to deliver a customer.

C. Internal Marketing :

I am going to discuss it in next question.

9 " .Internal Marketing"

(A) Define " internal marketing :"

It is the task of hiring, training, and motivating able employees who want to serve customers well. Smart marketers recognize that marketing activities within the company can be as important as, or even more so than, marketing activities directed outside the company. It makes no sense to promise excellent service before the company's staff is ready to provide it.

(B) Explain the different levels of internal marketing?

Internal marketing must take place on two levels:1.The various marketing functions—sales force, advertising, customer service, product

management, marketing research, must work together. ( means in marketing department ).

2.Marketing must be embraced by the other departments, they must also " think customer." Marketing is not a department so much as a company orientation. Marketing

thinking must be pervasive throughout the company.

D. Social Responsibility Marketing:8

*Holistic marketing incorporates " social responsibility " in marketing and understanding broader concerns, as the ethical, environmental, legal and social context of marketing activities and programs.

*The cause and effects of marketing clearly extend beyond the company and the customer to society as a whole.

*Social responsibility also, requires that marketers carefully consider the role that theyAre playing and could play in terms of social welfare.and products that are not environmentally friendly. These problems were solved by adding healthier items, such as, salad , and lightweight recycled boxes.

9.Shifts ) trends ( in Marketing Management: NOTE ! This part just for True & False.

1.From marketing does the marketing to everyone does the marketing: Agreed with Holistic Marketing Concept , internal marketing and who markets.

2.From organizing by product units to organizing by customer segments:Agreed with The Marketing Concept.

-Some companies are now switching from being solely product-centered with product managers and product divisions to manage them to being more customer-segment-centered.

3.From making everything to buying more goods and services from outside:Agreed with Globalization.More companies are choosing to own brands rather than physical assets.

4.From using suppliers to working with fewer suppliers in " partnership" :Agreed with the Relationship Marketing."

5.From relying on old market positions to uncovering new ones in highly competitive market place:

Agreed with Globalization + deregulation.

6.From emphasizing tangible assets to emphasizing intangible assets:

9

Intangible assets, such as, values, brands, intellectual capital.

7.From building brands through advertising to building brands through performance and integrated communication:

Agreed with The Product Concept.

8.From attracting customers through stores and salespeople to making products available online:

Agreed with Changing Technology and Retail transformation.

9.From selling to everyone to trying to be the best firm to serving well-defined target markets. ( segmentation )

10 .From focusing on profitable transactions to focusing on customer life time value.

11 .From a focus on gaining market share to a focus on building customer share.

12.From being local to being " GLOCAL "—Both global and local firms:Agreed with Globalization.

13.From focusing on the financial scorecard to focusing on the marketing scorecard.

14.From focusing on shareholders " stockholders / investors " to focusing on stakeholders.

10.Explain the following tasks of Marketing Management :

)A( Capturing Marketing Insights.

*Company needs a reliable marketing information system.*Company needs a dependable marketing research system.

10

)B( Building Strong Brands.

*The company must understand the strengths and weaknesses of the product brand with customers.

*Product's strategy will need modification at the different stages in the product life cycle: introduction, growth, maturity, and decline.

*The company must also pay close attention to competitors.

-Nicher: part of the segment .

)C( Communicating Value.

*The company has to set mass communication programs consisting of advertising, sales promotion, events, and public relations. It also has to set up more personal communications in the form of direct and interactive marketing and must also hire, train, and motivate salespeople.

)D( Creating Long – Term Growth.

*The company must initiate new-product development testing, and launching. The strategy also will have to take into account changing global opportunities and challenges.

*The company will need feedback and control.

NOTE!

The rest of this points for True & False

In " Connecting with customers* :" The company will not want to market to all possible customers. Modern marketing practice calls for dividing the market into major markets segments. ( T ).

True Or False , And Correct The Wrong Statement :

1.In the second definition of Marketing " AMA", focuses on customer relationships which was later, developed into a concept called partnership. ( T ).

2.The basic definition of Marketing is " AMA " definition.( F ).First definition.3.Marketing should give attention to stock and stake holders. ( T ).

11

4.press, government, unions are examples of stock holders. ( F ). Stake.

5.There are three main definitions for Marketing, the best one is the " AMA " definition, which is focuses on social responsibility. ( F ).the social definition.

6.The " AMA " definition focuses on building a relationship with the customer. It's published by The American Management Association.( F).Marketing.

7.Fishing, hunting, making a bread at home are examples of Self-produce as a way of obtaining a product.( T ).

8.Exchange is a process of obtaining a desired product / services from someone by not offering something in return.( F ). Transfer.

9.Television, machines, and car rentals, are examples of marketing goods.( F ). Car itself.

10.school, university, encyclopedias, are examples of marketing organization.(F). Information.

11.Political parties can market many things. The most important is marketing experiences.( F ). Ideas.

12.The first step of shift demand to the desired state, is develop a plan of action. ( F ). Identify the problem / diagnosing.

13.The marketer may face many demand states. In each case, the marketer should diagnose the problem, then develop an action plan.( T ).

14.The Negative demand state is where consumers may be unaware or uninterested in the product.( T ).Nonexistent demand.

15.Coffee bars, lectures, and demonstrations are examples of how companies faced privatization.( F ).Retail transformation.

16.There are competing marketing concept, the latest concept is called " Holistic Marketing Concept ".( T ).

17.In the selling concept, customers will favor the products that offer the most quality, performance, and innovation.( F ).The product concept.

12

18.The selling concept is practiced with unsought product such as, insurance, and encyclopedias.( T ).

19.The marketing concept, shifted the focus from product to customer and from make-and-sell to sense-and-response.( T ).

20. "CRM" stands for Consumer Relationship Marketing.( F ).Management.

21.One of the marketing shifts ( trends ) is shifting from using fewer suppliers to using many suppliers.( F ). Opposite is the correct.

22.One of the shifts in marketing management is from marketing does the marketing to everyone does the marketing.( T ).

23.The shifts from product unit to consumer segment is linked to one of dimensions of holistic marketing concept.( F ). The Marketing Concept.

24.One of the shifts ( trends ) in marketing management is shifting from focusing on stockholders to focusing on stakeholders.( T ).

25.At personal communication action creating Long-Term growth as marketing trend means new product development, global opportunities, and feedback and control.(F).Task.

26.Capturing marketing insights means having reliable "MIS" and dependable financial system.( F). Marketing research.

27.The third Marketing concept, which states that if customers are left alone, they will not buy the product.( F ). Selling

*Abbreviation:AMA: American Marketing Association.MIS: Marketing Information system.CRM: Customer Relationship Management.PRM: Partner Relationship Management.

Best WishesAmani A.Abu Mandeel

13