A REVIEW OF

THE MARKETING CONCEPTS

1
 WHAT IS THE BUSINESS ?

The
Owners of
Capital/
Resources
RETURN The
On The Business Transaction/
INVEST-
MENT
INVEST
INPUTS Processes Exchanges
•Men OUTPUTS
•Money •Products TARGET
The •Materials THROUGHPUTS
Firms
•Goods MARKET
•Machine •Services
•Moments
(Time)

THE
RETURNS

Copyright Rahim Jabbar /2002

2
 WHAT IS THE ESSENCE/NATURE OF
THE TRANSACTION PROCESS?

PRODUCTS THAT PROVIDES VALUES TO THE CONSUMERS/

/ CUSTOMERS
SERVICES
ID ES/
ES
OV UC

SATISFACTION
PR OD
PR

TRANSACTION

THE THE
THE
FIRM OFFERING MONEY
S

THE EXCHANGE
PROCESS

INCOME/
EARNING
Marketing is tasked
to manage the economic
transactions with the
customers/consumers
Copyright Rahim Jabbar/1999
3
MAIN POINTS OF THE MARKETING CONCEPTS (1)

1. Marketing is a major element of the core business

processes of creating value added through inducing
and stimulating transactions/exchanges

2. Business transaction can only be realized through

offering product/service (=the offer) as a means of
exchanging values between the
consumers/customers/clients and the
firms/companies.

3. Consumers/customers/clients will consider any offer

(be it product or service) as bringing values to them
if the offer helps them achieve their goals , satisfy
their wants and fulfill their needs

4
MAIN POINTS OF THE MARKETING CONCEPTS (2)

4. Values, therefore can be seen as special meanings

attached to a
particular consumption occasion of using or
consuming a
product or the event of receiving a particular service.
(This is a pragmatic/utilitarian use of the word “value”)

5. At this point, marketers have two options:

 go with the product as a commodity
 wrap the values offered by the product through
branding

6. Branding is a strategic option for marketing a product

or
service. Branding is a means of wrapping the values
surrounding the product or service. 5
 MAIN POINTS OF THE MARKETING CONCEPTS (3)

7. The task of marketing function is to find and create

consumers/ customers/clients by transforming individual
persons or groups of people from being “lay people in
the streets” into obtaining some added values at
consuming the offers/using the product or becoming
recipients of the services ( to become consumers/
customers/clients).

8. After this transformation, the task is to manage the

relationship
(Customer/Consumer Relationship Management).

9. Managerially, the marketing process consists of

development, creation, and activation of the marketing
mix for the offer (product or service) destined for a
specific target in mind. 6
MAIN POINTS OF THE MARKETING CONCEPTS (4)

10. These days rarely do we find a single product for a

single market (a single product-market category). The
overwhelming majority of categories comprise of multi-
products targeted at a variety of different groups of
consumers/customers/clients. (Each group is
conveniently called a segment of the market).

11. Due to the above reasons, the development of any offer

(be it
product or service) should go through the process of
S.T.P.
(Segmentation, Targeting and Positioning)

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MAIN POINTS OF THE MARKETING CONCEPTS (5)

12. Segmentation is the way you partition the market

based on
certain approach. Segmenting the market would
facilitate in
choosing the specific part of the market you want to
target.

13. Targeting is the process matching your product/offer

to
specific part of the market.

14. Positioning is the way you differentiate your

product/offer
from same product category targeted to the same
8
segment.
 A REVIEW OF
BRAND FUNDAMENTALS

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 KEY POINTS OF BRAND
FUNDAMENTALS
THE ORIGIN OF BRANDS

•Business is about creating value added through

economic
transactions.

•Marketing is tasked to manage the economic transaction

between a business with its
consumers/customers/clients.

•As far back as four millennia ago, craftsmen from Persia,

China
and India – in marketing their products – used their
signatures
or symbols as the marks to identify and differentiate
their
products.
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•As marketing became a stronger – now the strongest –
KEY POINTS OF BRAND FUNDAMENTALS
(Continued-1)

THE DEFINITION OF BRAND

•Brand is defined as a name, symbol or design, or

combination of
those elements used to identify and differentiate a
product or
service of a company and those of competitors. 
Brand is a
competitive weaponry.

THE BENEFITS OF BRANDS

•Brands bring benefits to both the business and the

consumers:
Brands facilitate consumer decision making and choice.
Brands
transform consumption experiences. For the business, 11
brands
KEY POINTS OF BRAND FUNDAMENTALS
(Continued-2)
THE COMPONENTS OF A BRAND
•A product or service is the basis for a brand. The second
component of a brand is its name and logo that become
the
identifiers of the brand. The third component is its
packaging
that functions as its external presenter. The fourth
component is
the messages or stories created around the brand that
play the
roles of its narrator or purveyor. The fifth component is
its price
which is the proxy of its value. All components should
be in
harmony to each other.

THE POSITION FOR A BRAND

•As a brand is the identifier and differentiator for a 12
 KEY POINTS OF BRAND
FUNDAMENTALS
(Continued-3)
POSITIONING A BRAND

•So, positioning a brand is what you do to the mind of the

prospective consumers. Positioning is about finding the
best
for the product/service and the most appropriate for the
target
market. (It is all in the consumers’ mind!)

•The process of developing a competitive position for a

brand
starts with the segmentation of the market, followed by
targeting ( selecting a particular segment) to whom a
brand is
to be positioned (positioning).

•In order to explore competitive values to be wrapped in

the 13
KEY POINTS OF BRAND FUNDAMENTALS
(Continued-4)
POSITIONING A BRAND (Continued)

•Therefore, positioning a brand is about identifying the

optimal
place within the competitive set in the consumer minds.
The
positioning statement should draw on the strongest
benefits
offered by the brand.

•Positioning statement should clarify what the brand is all

about.
It should clearly state the brand’s uniqueness and point-
of-
difference (P.O.D.) . The statement should also explain
why the
consumers should BUY and USE the brand:
•Who are you going to give this positioning to? 14
 KEY POINTS (Continued-5)
MANAGING THE BRAND
•Managing a brand covers : developing, rejuvenating,
extending,
and marketing the brand (that includes distributing and
advertising it to the target market).

•Managing a brand also means managing the process of

consumer-brand linkage form being unaware to become
loyal
users (maximizing switchers-in and minimizing out-
switchers)

•The objective of brand management is to develop,

create and
and strengthen the equity of the brand.

•Brand equity is the ability of a brand to gain market

share , 15