Faculty of Economics and Business Administration

Academic Year: 2023-2024

Level: 2nd Grade Three – EBM
EBM305: Strategic Marketing |Lecturer: Dr. Aya Tharwat – Teaching Assistant: Donia Ayman
Tutorial (1)

Strategic Marketing Course – Chapter One: Introduction to Strategic Marketing Management

Lec.1 – Part 1 – Recap & Practise

1. What Is Marketing? 4. Marketing as a Value Creation Process

2. The Three Levels of Marketing 5. Strategic Marketing
3. Features of Marketing
What Is Marketing?

Marketing is commonly misunderstood as an ostentatious term for advertising and promotion; in reality, it is
far more than that. This perception isn’t in many ways unreasonable, as advertising and promotion are the
major way in which most people are exposed to marketing. However, the term ‘marketing’ actually covers
everything from company culture and positioning, through market research, new business/product
development, advertising and promotion, PR (public/press relations), and arguably all of the sales and
customer service functions as well. It is a systematic attempt to fulfill human desires by producing goods
and services that people will buy. It is where the cutting edge of human nature meets the versatility of
technology. Marketing-oriented companies help us discover desires we never knew we had, and ways of
fulfilling them we never imagined could be invented.

 The American Marketing Association (AMA) defines marketing as: “The process of planning and
executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational objectives.”
 Philip Kotler defines marketing as: “Marketing is the social process by which individuals and
groups obtain what they need and want through creating and exchanging products and value
with others.”
 The Chartered Institute of Marketing (CIM) defines marketing as: “Marketing is the management
process that identifies, anticipates and satisfies customer requirements profitably.”

The Three Levels of Marketing

1. Marketing as a Business Philosophy

"Marketing today is not a function; it is a way of doing business." Marketing is everything. In
essence, it’s the process by which a company decides what it will sell, to whom, when & how, and then
does it!
2. Marketing as Strategy
This entails understanding the environment the business is operating in; customers, competitors, laws,
regulations, etc., and planning marketing strategy to make the business a success. This second layer
is about segmenting (S) the market, deciding which customers to target (T), and deciding what
messages you want the targets to associate with you; what is called Positioning (P). The overall
process is usually referred to as Segmentation, Targeting, Positioning (STP).

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 3. Day-to-Day Operational Running of Marketing
This encompasses the control of the Marketing Mix and the processes within a business that help
create and deliver that company’s products and services to the customer. This level spans all aspects
of a business and across all customer contact points including:
 A company’s website  How customer contact staff present themselves
 How they answer the phones (in person and on the phone)
 Their marketing and PR campaigns  How a business delivers its services
 Their sales process  How a business “manages” its clients
 How a business solicits feedback from its clients

Features of Marketing

1. Orientation Toward Customer Wishes

Marketing begins with ascertaining the needs and wants of potential customers. It tries to anticipate needs
and then determine what goods and services are to be developed. This includes decisions about product
features, quality, design, packaging, price, credit policies, intermediaries, advertising, sales policies,
after-sales, customer service, warranty, etc.
2. Market Segmentation
Market segmentation involves categorizing customer groups based on various attributes such as income,
age, social relationships, etc. This allows businesses to adapt their offerings to meet the specific needs of
each group and develop “tailored” influencing strategies.
3. Behavior Orientation
Understanding consumer behavior involves economic, psychological, and sociological variables that
influence purchasing decisions. Insights from behavioral science are crucial in both business-to-
consumer and business-to-business marketing.
4. Key Role of Market Research
Market research plays a key role in adapting a company to market conditions. It involves continuous
market observation (e.g., market growth, market share) combined with sporadic, targeted studies (e.g.,
buyer typologies, preference research, advertising effectiveness). Market research not only lays the
foundation for adapting to market conditions but also helps businesses influence and test market
conditions.
5. Innovation Orientation
Innovation is central for businesses that orient their range of goods and services toward rapidly changing
customer wishes. New products or new markets must be developed frequently. Innovations regarding
products, features, advertising, etc., differentiate the product from competitors and offer advantages to
potential buyers.
6. Use of Brands
Brands are essential for distinguishing products in the marketplace. Marketing efforts, especially in
communication policy, rely on clear branding to link emotions with products and convey technical data.
The goal of branding is to raise product awareness and build strong brand identities, particularly in
consumer goods.
7. Medium- to Long-Term Planning
Marketing typically requires medium- to long-term planning. Unlike a sales-oriented approach that focuses
on short-term sales increases, marketing orientation emphasizes sustainable growth through product
development, market penetration, and effective sales and advertising strategies. The typical goal

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 of marketing is to safeguard old markets or open new ones through medium- and long-term measures,
rather than focusing on short-term sales boosts.

Multiple Choice Questions:

1. What is the definition of marketing according to the American Marketing Association (AMA)?

a) The process of creating advertisements to increase sales.

b) The process of planning and executing the conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual and organizational objectives.
c) The process of producing goods and services only for profit.
d) The function that deals with the sale of products only.

2. According to Philip Kotler, marketing is defined as:

a) A process of selling goods and services to customers.

b) A social process by which individuals and groups obtain what they need and want through creating
and exchanging products and value with others.
c) The process of advertising products to customers.
d) A method to determine pricing strategies.

3. What is meant by "Marketing as a Business Philosophy"?

a) Marketing is just about selling products.

b) Marketing is a function that only deals with advertising.
c) Marketing is a way of doing business, where a company decides what to sell, to whom, when, and how.
d) Marketing is only about public relations and promotions.

4. Which of the following refers to the process of dividing a market into different segments
based on customer needs and characteristics?

a) Market Positioning
b) Market Segmentation
c) Marketing Strategy
d) Market Research

5. What does the "STP" model stand for in marketing?

a) Sales, Target, Profit

b) Segmentation, Targeting, Positioning
c) Strategy, Target, Product
d) Sales, Targeting, Planning

6. Why is market research important in marketing?

a) It helps businesses understand competitors only.

b) It provides the foundation for adapting to market conditions and helps in influencing and testing
market conditions.
c) It focuses solely on customer preferences.
d) It only helps in determining the price of products.

7. Which of the following is a key feature of marketing that involves categorizing customers
based on factors like income, age, and social relationships?

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a) Customer Satisfaction
b) Market Segmentation
c) Consumer Behavior
d) Brand Positioning

8. What is the primary goal of innovation in marketing?

a) To increase short-term sales only.

b) To develop new products or features that differentiate a product from competitors and offer advantages
to potential buyers.
c) To keep customers satisfied without changing products.
d) To reduce the cost of production.

9. Which of the following defines the concept of "Branding" in marketing?

a) The method of selling products directly to customers.

b) The process of creating a distinct identity for a product or company through communication and
emotional connections.
c) A strategy to cut costs and improve profit margins.
d) A marketing strategy focusing only on discounts and promotions.

10. According to the features of marketing, which orientation focuses on understanding

customer behavior through economic, psychological, and sociological variables?

a) Market Segmentation
b) Innovation Orientation
c) Behavior Orientation
d) Medium to Long-Term Planning

11. What is the typical focus of a company with a marketing orientation?

a) Maximizing short-term profits.

b) Safeguarding old markets and opening new ones through medium- and long-term measures.
c) Focusing only on immediate sales boosts.
d) Limiting product development to seasonal trends.

12. What does "Positioning" in marketing refer to?

a) The location of the company's office

b) The process of determining how customers view the brand or product in relation to competitors
c) The price at which products are sold
d) The market share of a company

13. Which of the following is NOT typically a part of the marketing mix?

a) Product
b) Price
c) Politics
d) Promotion

14. According to the strategic marketing approach, which of the following is a core
aspect of "Marketing as Strategy"?

a) Creating advertisements to increase brand awareness

b) Understanding the business environment and creating a strategy based on customer, competitor, and legal
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factors
c) Developing new products without considering market conditions
d) Focusing solely on increasing sales in the short-term

15. The "Marketing Mix" includes all of the following except:

a) Product
b) Place
c) Price
d) Packaging

16. What is a key characteristic of a marketing-oriented company?

a) It only focuses on the production process.

b) It continuously seeks ways to understand and fulfill customer desires.
c) It focuses on reducing the quality of products to save costs.
d) It ignores competitor actions in the market.

17. What is a typical benefit of using market segmentation?

a) It leads to a uniform marketing strategy for all customers.

b) It helps in tailoring products and services to meet the specific needs of different customer groups.
c) It increases market share without differentiating the product.
d) It reduces the need for product innovation.

18. What does the term "Behavioral Orientation" focus on in marketing?

a) The financial aspects of market research

b) How to design advertising strategies
c) Understanding the psychological, economic, and social factors that influence consumer behavior
d) Developing cost-cutting strategies for the company

19. Which of the following is a key role of market research in marketing?

a) To assess only the competitors' strategies

b) To gather data and insights that guide decision-making in product development, pricing, and promotional
activities
c) To decrease the advertising budget
d) To reduce the need for customer feedback

20. Why is "Innovation Orientation" important for businesses?

a) It helps companies maintain the same product features without changes.

b) It allows businesses to stay competitive by frequently launching new products or services that
meet changing customer needs.
c) It focuses on making marketing strategies more complicated.
d) It reduces the need for customer feedback.

21. Which marketing orientation requires long-term planning and the creation of
strategies to safeguard existing markets and penetrate new ones?

a) Sales Orientation
b) Production Orientation
c) Marketing Orientation
d) Financial Orientation
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 22. What role do brands play in marketing?

a) They are used only for legal purposes.

b) They help to differentiate products in the market and build emotional connections with customers.
c) They are a form of advertisement for the company only.
d) They only serve as a symbol of the company’s size.

23. Which of the following best describes the concept of "Customer Wishes" in marketing?

a) Marketing focuses only on what the company wants to sell.

b) Marketing tries to understand and anticipate customer needs and desires and then creates products
and services to fulfill them.
c) Marketing only considers the economic status of customers.
d) Marketing is about promoting the cheapest products available.

24. What does the term "Medium- to Long-Term Planning" mean in the context of marketing?

a) Focusing only on increasing sales in the next quarter.

b) Planning strategies for a sustainable business growth over several years, such as product development and
market penetration.
c) Planning strategies for only immediate market expansion.
d) Planning short-term advertising campaigns.

25. How does a business with a "Marketing Orientation" typically differ from a business with a
"Sales Orientation"?

a) A marketing-oriented business focuses on immediate sales growth, while a sales-oriented business

focuses on long-term strategies.
b) A marketing-oriented business focuses on customer needs and long-term growth, while a sales-oriented
business focuses on short-term sales and pushing products.
c) A marketing-oriented business ignores market research, while a sales-oriented business conducts
thorough research.
d) Both business orientations focus exclusively on advertising.

26. Which marketing concept focuses on the continuous observation of market conditions such
as market growth and market share?

a) Market Segmentation
b) Market Research
c) Sales Analysis
d) Competitor Analysis

Case Study: The Journey of "Tasty Bites" – A New Snack Brand

Background:
"Tasty Bites" is a new snack brand that has recently launched in the market. The company produces a variety
of chips and other snack foods. As part of its expansion strategy, "Tasty Bites" aims to understand how to
position itself in a competitive market and how to make its products appealing to various customer groups.
The company is focusing on creating innovative snack products and wants to grow its market share both in
the short and long term.

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Questions:

1. "Tasty Bites" has launched a series of new snacks and needs to make sure they are appealing
to various customer groups. Which of the following marketing strategies would be best for this?

a) Focus only on creating a product that is the cheapest in the market.

b) Use market segmentation to target different customer groups based on income, age, and preferences.
c) Focus on mass marketing and produce a single snack flavor for everyone.
d) Ignore customer preferences and focus on mass production.

2. To ensure its products reach the right people and achieve success, "Tasty Bites" wants to make
sure customers see their products as unique. What should they focus on?

a) Pricing their snacks lower than all competitors.

b) Positioning their snacks as high-quality, healthy options for health-conscious individuals.
c) Creating a wide range of low-cost snacks without any emphasis on quality.
d) Focusing only on making as many products as possible without considering customer needs.

3. "Tasty Bites" wants to understand how its customers make decisions when choosing snacks,
including their behavior and preferences. What should the company focus on?

a) Focusing solely on increasing production.

b) Understanding customer behavior through economic, psychological, and social factors to guide
product development.
c) Ignoring customer behavior and focusing only on sales figures.
d) Focusing only on creating flashy advertisements without understanding customer behavior.

4. "Tasty Bites" has realized that in order to keep up with market changes, it needs to
frequently innovate. What is the importance of innovation for their business?

a) Innovation allows the company to introduce new products that meet changing customer needs and helps
differentiate them from competitors.
b) Innovation is unnecessary, as their current products are good enough.
c) Innovation leads to higher costs and should be avoided.
d) Innovation is only important for large corporations, not small brands like "Tasty Bites."

5. "Tasty Bites" wants to gather information about customer preferences and market trends
before launching new products. What role does market research play in this process?

a) Market research helps "Tasty Bites" understand customer needs and preferences, guiding
product development and marketing strategies.
b) Market research is unnecessary; they should focus on pushing products out quickly.
c) Market research is only useful for large companies and irrelevant for new snack brands.
d) Market research only helps with advertising campaigns and not product development.

6. "Tasty Bites" is planning to introduce a new range of organic snacks. This is a long-term strategy to
ensure the brand remains relevant and grows. Which marketing concept does this approach align
with?

a) Sales Orientation – Focus on short-term sales.

b) Marketing Orientation – Focus on long-term customer satisfaction and market growth.
c) Production Orientation – Focus on producing as many snacks as possible.
d) Price Orientation – Focus on reducing prices to attract customers.

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7. To ensure that their customers recognize the uniqueness of their product, "Tasty Bites" decides
to create a strong identity through branding. Which of the following is the best reason to focus on
branding?

a) Branding helps the company differentiate its products and build emotional connections with consumers,
leading to stronger customer loyalty.
b) Branding is only useful for luxury products.
c) Branding is unnecessary as long as the product tastes good.
d) Branding will increase the production costs of the company significantly.

8. "Tasty Bites" has identified its target market and created products that appeal to them. To
stay competitive, the company must continuously monitor market conditions like growth,
customer preferences, and competitor activities. What is the best approach to achieving this?

a) Relying only on sales reports without considering market changes.

b) Continuously observing the market and conducting targeted market research to adapt the marketing
strategies.
c) Ignoring competitors and focusing solely on internal product development.
d) Focusing only on online marketing and ignoring traditional methods of market research.

1. Market Segmentation: Dividing customers into groups to tailor marketing efforts.

2. Positioning: Creating a distinct image of the product in the customers' minds.
3. Understanding Customer Behavior: Using psychological, economic, and social factors to influence
purchasing decisions.
4. Innovation: Introducing new products or improvements to meet changing customer needs and stay
ahead of competitors.
5. Market Research: Collecting data to understand customer preferences and guide marketing
decisions.
6. Marketing Orientation: Focusing on long-term strategies for customer satisfaction and growth,
rather than just short-term sales.
7. Branding: Building an identity for the product to create strong emotional connections and
differentiate it from competitors.
8. Continuous Market Observation: Regularly tracking market changes to adapt marketing strategies
accordingly.

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