Definition of Marketing

“The management process responsible for identifying anticipating and satisfying

customers’ needs profitably.”
CIM
“Marketing is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchange and
satisfy individual and organisational objectives.”
American Marketing Association
Includes: “Facilitating a mutually beneficial exchange of value between sellers and
customers - repeatedly.”

Kotler on Marketing
“The marketer’s job is to research new opportunities for the company and carefully
apply segmentation, targeting and positioning (STP) to point a new business in the
right direction.
Then marketers are supposed to flesh out the 4 Ps – Product, Price, Place and
Promotion – making sure that they are consistent with each other and with the STP
strategy.
Then marketers are supposed to implement the plan and monitor the results.”
Consumer Behaviour

Brain Functions
LEFT BRAIN FUNCTIONS
 uses logic
 detail oriented
 facts rule
 words and language
 present and past
 math and science
 can comprehend
 Knowing Acknowledges
 order/pattern perception
 knows object name
 reality based
 forms strategies
 Practical
 safe

RIGHT BRAIN FUNCTIONS

 uses feeling
 "big picture" oriented
 imagination rules
 symbols and images
 present and future
 philosophy & religion
 can "get it" (i.e. meaning)
 Believes
 Appreciates
 spatial perception
 knows object function
 fantasy based
 presents possibilities
 Impetuous risk taking
Kotler’s Model
 Need Recognition
 Hunger, Thirst, Low Social Esteem
 Information Search
o Sources:
 Personal Commercial Public Experiential
 Options when Presented with Information

o Get People to Modify Brand Choice

o Alter Beliefs about Brand
o Alter Beliefs about Competition
Segmentation, Targeting & Positioning
Key Elements of Mission
Statements
Not just the mission as a "wish".
Purpose and values of the
organization Which business the
organization wants to be in
(products or services, market) or who
are the organizations primary
"clients" (stakeholders)
Which are the responsibilities of the
organization towards these "clients"
What are the main objectives which
support the company in
accomplishing its mission

Mission vs. Vision

A Mission statement : tells you what
the company is now. It concentrates
on the present; it defines the
customer(s), critical processes and it
informs you about the desired level of
performance.
A Vision statement : outlines what a
company wants to be. It concentrates
on the future; it is a source of
inspiration; it provides clear
decisionmaking criteria.
Ansoff’s Growth Matrix
Approaches to developing sustainable competitive advantage

o Superior product benefit

o Perceived advantage
o Low-cost operations
o Legal advantage
o Superior contacts
o Superior knowledge
o Scale advantages
o Offensive advantages

Barriers to implementation

o Culture
o Power and politics
o Analysis, not action
o Resource issues
o Skills
 STAR – Lots of sales, competitve market, and good cashflow. Strategy = Defend Market
Share

 CASH COW – Lots of sales, little competition as no market growth. Strategy = Milk it to fund
other products.

 DOG – Low sales, low costs, little competition and low market share. Strategy = Divest.
  QUESTION MARK – Low sales, high costs due to competitive market. Strategy = Build market
share or Divest

LIMITATIONS OF THE BCG MATRIX

 Written for Conglomorates

 Small companies will have lots of Dog products and few, if any, market leaders.

 Definition of the market? The model on says ‘one’ market.

BCG Question

 Company A makes the following desserts with the following product info:-

◦ Cheesecake Toffee-cake Muffins Apple-pies

Sales £500k £200k £750k £1m

LCS £400k £1.2m £1.1m £750k

MG 15% 2% 12% 5%

Q – Calculate where these products are on the BCG

Promotion & Communication
Strategies

Advertising
“Non- personal paid for communications targeted through mass media with the
purpose of achieving set objectives such as creating awareness or encouraging trial.
It is a means of reaching large audiences in a cost effective manner”
Public Relations

Personal Selling
Place & Price
Marketing Research, Feedback & Control

A feedback control system