Collage of Business and Economics
Department of Management (MBA)
Bonga Ethiopia
2025 G.C
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MARKETING MANAGEMENT
Course Code MBA 641
Credit Hours: 2
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Instructor Name : Dagim Dessalegn
PHD Candidate (Marketing Management)
E-Mail dagib63050@[Link]
[Link] 0913865837
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What is Marketing
What is Management
What is Marketing Management
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Marketing Management
(MBA 751)
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"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." (AMA, 2017).
Marketing is the delivery of customer satisfaction
at a profit.
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Marketing identifies unfulfilled needs and desires.
It defines, measures, and quantifies the size of
the identified market and the profit potential."
(Kotler & Keller, 2016).
"Marketing is the process of getting people
interested in your company’s product or service.
This happens through market research, analysis,
and understanding your ideal customer’s
interests." (HBR, 2020).
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"The goal of marketing is to know and
understand the customer so well that the product
or service fits him and sells itself." (Drucker,
1973).
To attract new customer by promising superior
value, and to keep current customers by
delivering satisfaction.
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Marketing, more than any other business function,
deals with customers.
Creating customer value and satisfaction are at the
very heart of modern marketing thinking and practice.
Some people believe that only large business
organizations operating in highly developed economies
use marketing, but sound marketing is critical to the
success of every organization – whether large or small,
for profit or non – profit, domestic or global.
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Many people think of marketing only as selling and advertising.
Selling and advertising are only the tip of the marketing ice-berg.
Marketing is one of three key core functions that are central to all
organizations.
Marketers act as the customers’ voice within the firm and
marketers are responsible for many more decisions than just
advertising or sales:
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◦ Analyze industries to identify emerging trends.
◦ Determine which national and international markets to enter
or exit.
◦ Conduct research to understand consumer behavior.
◦ Design integrated marketing mixes – products, prices,
channels of distribution, and promotion programs.
Marketing is a social and managerial process by which
individuals and groups obtain what they need and want through
creating and exchanging products and value with others.
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"Marketing is the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit.
Marketing is often referred to as a social and managerial process
because :
it involves both human interactions (social) and
strategic decision-making (managerial) to create and exchange
value. Here’s why:
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Marketing as a Social Process
•Interaction with Society: Marketing is deeply
embedded in society as it focuses on understanding
and satisfying human needs and wants.
•Exchange Relationships: It involves the exchange of
goods, services, and ideas between individuals,
businesses, and institutions.
•Cultural and Behavioral Influence: Consumer
preferences, trends, and behaviors are influenced by
social and cultural factors, making marketing a socially
driven activity.
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Marketing as a Managerial Process
•Planning & Strategy: Marketing involves
systematic planning, market research, and
strategy development to achieve business goals.
•Decision Making: Managers make data-driven
decisions regarding pricing, product positioning,
distribution channels, and promotional tactics.
•Resource Allocation: Budgeting and resource
allocation play a key role in executing marketing
campaigns effectively.
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To explain marketing Concept, we examine the
following important terms :
Core Concept of Marketing
◦ Needs, wants, and demands
◦ Products and services
◦ Value, satisfaction and quality
◦ Exchange, transactions, and relationships
◦ Markets
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Needs:
The most basic concept underlying marketing is that
of human needs.
Human needs are states of felt deprivation.
Human have many complex needs:
◦ Physical needs for food, clothing, warmth, and
safety
◦ Social needs or belonging and affection
◦ Individual needs for knowledge and self – expression
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Wants:
Want are the form taken by human needs as they are shaped by
culture and individual personality.
People have almost unlimited wants but limited resources.
They want to choose products that provide the most value and
satisfaction for their money.
Demands:
When backed by buying power, wants become demands.
Consumers view products as bundles of benefits and choose products
that give them the best bundle for their money.
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Product:
Anything that can be offered to a market to satisfy a need
or want.
The concept of product is not limited to physical objects –
anything capable of satisfying a need can be called a
product.
Services:
In addition to tangible goods, products also include
services, which are activities or benefits offered for sale
that are essentially intangible and do not result in the
ownership of anything.
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Values:
Customer value is the difference between the values the customer gains from
owning and using a product and the costs of obtaining the products.
Customers often do not judge product value and costs accurately or
objectively. They act on perceived value.
Satisfaction:
Customer satisfaction depends on a product’s perceived performance in
delivering value relative to a buyer’s expectation.
If the product’s performance falls short of the customer’s expectations, the
buyer is dissatisfied.
Quality:
Customer satisfaction is closely linked to quality.
Quality has a direct impact on product performance.
Quality can be defined as “freedom from defects”.
TQM programs designed to constantly improve the quality of products,
services, and marketing processes.
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Exchange :
The act of obtaining a desired object from someone by
offering something in return
Transaction :
A trade between two parties that involves at least two things
of value, agreed – upon conditions a time of agreement, and
a place of agreement.
Relationship marketing :
The process of creating, maintaining, and enhancing strong,
value – laden relationships with customers and other
stakeholders
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The set of all actual and potential buyers of a
product or service
Communication
Industry Products / Services Market (a collection of
(a collection of sellers) buyers)
Money
Information
A simple marketing system
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Main actors and forces in a modern marketing system
Competitors
Marketing
intermediaries End user market
Suppliers
Company
(marketer)
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The analysis, planning, implementation, and
control of programs designed to create, build,
and maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives.
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Demand Management : The organization has a
desired level of demand for its products. At any point in
time, There may be no demand, adequate demand,
irregular demand, or too much demand, and marketing
management must find ways to deal with these
different demand states.
Building Profitable Customer Relationships :
Beyond designing strategies to attract new customers
and create transactions with them, companies now are
striving to retain current customers and build lasting
customer relationships. 2
The role that marketing plays within a company varies
according to the overall strategy and philosophy of
each firm.
There are five alternative concepts under which
organizations conduct their marketing activities:
◦ Production concept
◦ Product concept
◦ Selling concept
◦ Marketing concept
◦ Societal marketing concepts
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is one of the earliest marketing concepts, based
on the idea that consumers prefer products that
are widely available and affordable.
It assumes that high production efficiency,
low costs, and mass distribution are the key
drivers of success.
This concept is often used in industries where
demand exceeds supply or where cost reduction
is crucial to competitiveness.
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Key Features of the Production Concept:
[Link] on High Production Efficiency – Companies
aim to produce goods at a large scale to minimize costs.
[Link] on Low Costs – Businesses prioritize cost-
cutting through economies of scale.
[Link] Distribution – The goal is to ensure widespread
availability of the product.
[Link] Preference Assumption – Assumes that
customers mainly seek affordability and availability
rather than product quality or customization.
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Example of the Production Concept in Action:
•Henry Ford's Assembly Line (Ford Model T) – Ford
revolutionized the automobile industry by producing cars
at a low cost and making them accessible to the masses.
•Fast-Moving Consumer Goods (FMCG) Companies –
Companies like Coca-Cola and Unilever rely on mass
production and distribution to keep costs low and reach a
broad audience.
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Limitations of the Production Concept:
•It may lead to product quality neglect if the company
focuses too much on efficiency.
•It assumes customer demand is driven purely by
price and availability, ignoring preferences for quality,
features, and branding.
•It is less effective in highly competitive and
differentiated markets where customer satisfaction
and brand loyalty matter.
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is a marketing philosophy that emphasizes product quality,
innovation, and features over mass production or aggressive
selling.
It assumes that consumers will prefer products that offer the best
quality, performance, and unique features.
Companies following this concept invest heavily in research and
development (R&D) to create superior products.
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Key Features of the Product Concept:
[Link] on Quality & Innovation – Companies prioritize
developing high-quality and innovative products.
[Link] Product Improvement – Emphasis is
placed on upgrading features, technology, and design.
[Link] Attraction Through Excellence – Assumes
customers will naturally prefer superior products.
[Link] Emphasis on Price & Availability – The idea is
that customers will pay a premium for better quality.
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Example of the Product Concept in Action:
•Apple (iPhones, MacBooks, etc.) – Apple focuses on
design, technology, and user experience rather than just
affordability.
•Tesla (Electric Vehicles) – Tesla invests in advanced
technology and battery innovation rather than mass-
producing cheap cars.
•Dyson (Vacuum Cleaners & Home Appliances) – Dyson
differentiates itself with cutting-edge engineering and performance.
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Limitations of the Product Concept:
•Marketing Myopia – Companies may focus too
much on product excellence and overlook
changing customer needs.
•High Costs – Investing in R&D and innovation can
make products expensive, limiting market reach.
•Ignoring Customer Preferences – Just because
a product is technically superior doesn’t mean
customers will buy it.
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is a marketing philosophy that assumes
customers will not buy a product unless the
company aggressively promotes and sells it.
This approach focuses on persuasion,
advertising, and sales techniques rather than
customer needs or product quality.
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Key Features of the Selling Concept:
[Link] on Sales & Promotion – Businesses prioritize
aggressive advertising, personal selling, and promotions.
[Link]-Term Focus – The goal is to maximize immediate
sales rather than build long-term customer relationships.
[Link] Persuasion – Assumes that customers need to
be convinced to buy a product, even if they don’t
necessarily need it.
[Link] in Unsought Goods – Often used for products
that people don’t usually think of buying, like insurance, life
coaching, or timeshares.
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Example of the Selling Concept in Action:
•Telemarketing & Door-to-Door Sales – Companies
like insurance agencies or credit card firms use
aggressive sales tactics.
•Car Dealerships – Many car dealerships use heavy
promotions, discounts, and salesperson pressure to
close deals.
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Limitations of the Selling Concept:
•Customer Dissatisfaction – If customers feel
pressured into a purchase, they may regret it and avoid
the brand in the future.
•Short-Term Gains, No Loyalty – Sales-focused
approaches may boost revenue quickly but don’t build
long-term customer relationships.
•Potential for Ethical Issues – Some businesses may
exaggerate claims or manipulate customers into buying
something they don’t need.
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The marketing management philosophy that
holds that achieving organizational goals
depends on determining the needs and wants
of target markets and delivering the desired
satisfactions more effectively and efficiently
than competitors do.
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is a business philosophy that prioritizes customer
needs and wants over just production or
aggressive selling.
It assumes that the key to business success is
understanding and satisfying customer demands
better than competitors.
Instead of focusing only on selling what a
company produces, the marketing concept starts
with the customer and works backward to
create products that fulfill their needs.
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Key Features of the Marketing Concept:
1. Customer-Centric Approach – The focus is on identifying and meeting
customer needs.
2. Long-Term Customer Relationships – Businesses aim to build loyalty
and trust rather than just making immediate sales.
3. Market Research & Consumer Insights – Companies invest in research
to understand customer preferences.
4. Profit Through Customer Satisfaction – Profits come from happy,
returning customers rather than just high sales volume.
5. Integrated Marketing Efforts – All departments (R&D, production, sales,
and marketing) work together to create value for customers.
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Example of the Marketing Concept in Action:
•Amazon – Uses customer data and feedback to enhance
services like fast delivery and personalized
recommendations.
•Nike – Creates products and campaigns that align with
customer preferences, such as sustainability efforts and
athlete endorsements.
•McDonald's – Adapts its menu to suit local tastes (e.g.,
McSpicy Paneer in India, Teriyaki Burger in Japan).
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Benefits of the Marketing Concept:
✔ Stronger Customer Loyalty – Satisfied customers
return and recommend the brand.
✔ Better Brand Reputation – Businesses that listen to
customers build trust.
✔ More Sustainable Growth – By focusing on long-
term value rather than short-term sales, companies stay
competitive.
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Builds on the Marketing Concept but adds a
critical element: social responsibility.
It emphasizes that businesses should not only
focus on customer needs and profits but also
consider the well-being of society and the
environment.
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Key Principles of the Societal Marketing
Concept:
[Link] Satisfaction – Products must meet
customer needs effectively.
[Link]-Term Societal Welfare – Businesses should
ensure their practices benefit society, such as promoting
sustainability or ethical labor practices.
[Link] – The company must still achieve financial
success, but without harming people or the environment.
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Example of the Societal Marketing Concept in Action:
•Tesla – Prioritizes sustainability by producing electric vehicles that reduce
carbon emissions.
•The Body Shop – Promotes cruelty-free cosmetics and ethical sourcing.
•Patagonia – Encourages environmental conservation and even asks
customers to buy fewer products to reduce waste.
•McDonald’s Sustainable Packaging – Uses eco-friendly materials to
reduce plastic waste.
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The selling and Marketing Concepts Contrasted
Feature Selling Concept Marketing Concept
Selling & promoting Understanding and meeting
Focus
products customer needs
Market research & customer
Starting Point Company’s existing products
preferences
Aggressive advertising & Customer-driven product
Approach
sales development
Long-term customer
Goal Short-term profits
satisfaction & loyalty
Active (business listens &
Customer Role Passive (must be persuaded)
responds)
"Make what customers
Philosophy "Sell what you make"
want"
Insurance sales, Apple, Amazon, Nike
Example
Telemarketing (customer-focused brands)
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Marketing Challenges into the New Century
1. Digital Transformation & Technology Adoption
•Keeping up with rapidly evolving digital tools and platforms.
•Leveraging AI, big data, and automation for personalized marketing.
•Adapting to voice search, chatbots, and other AI-driven consumer
interactions.
2. Increased Competition & Market Saturation
•Globalization has intensified competition across industries.
•Differentiating products and services in highly saturated markets.
•Competing with e-commerce giants like Amazon and Alibaba.
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3. Changing Consumer Behavior
•Growing preference for online shopping and mobile commerce.
•Increased demand for convenience, speed, and instant gratification.
•Consumers expecting personalized and relevant marketing
experiences.
4. Data Privacy & Security Issues
•Stricter data protection regulations (GDPR, CCPA, etc.).
•Balancing personalization with privacy concerns.
•Gaining consumer trust in data collection and usage.
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5. Content Overload & Attention Scarcity
•Consumers are bombarded with advertisements and content daily.
•Creating engaging, high-quality content that captures attention.
•The rise of ad blockers and declining effectiveness of traditional ads.
6. Social Media & Reputation Management
•Handling customer complaints and negative reviews on social media.
•Keeping up with trends across multiple platforms (TikTok, Instagram,
LinkedIn, etc.).
•Dealing with misinformation and brand perception issues.
7. Sustainability & Ethical Marketing
•Consumers demand eco-friendly and socially responsible brands.
•Avoiding "greenwashing" (false sustainability claims).
•Ethical sourcing, fair trade, and corporate social responsibility (CSR).
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