Marketing is the process of planning and executing the conception, pricing, promotion and

distribution of ideas, goods and services to create and exchange value, and satisfy individual
and organisational objectives. 2

Product Price Place Promotion

Benefits List price Channels Advertising
Feautures Discounts Logistics Public relations
Options Credit terms Inventory Sponsorship
Quality Payment periods Transport Brand activation
Design incentives Assortments Direct Marketing
Branding Locations Point of Purchase
Packaging Exhibitions and Trade
Fairs
Services Personal Selling
Warranties Electronic
Communication

Integrated marketing communications a concept of marketing communication planning that recognizes

the added value of a comprehensive plan that evaluates the strategic roles of a variety of
communication disciplines,
e.g., general advertising, direct response, sales promotion and public relations – and combines
these disciplines to provide clarity, consistency and maximum communication impact.

Th e American Marketing Association defines a brand as ‘a name, term, sign, symbol or design,
or a combination of these, intended to identify the goods or services of one seller or group
of sellers, and to differentiate them from those of a competitor’

Brand names, as well as other brand elements such as logos, URLs, symbols, characters,
spokespeople, jingles, packages and signages, should be memorable, meaningful, likable,
adaptable, transferable and protectable. 3 A good brand name is easy for custom ers to say, spell
and recall.

Three categories of brands can be distinguished:

1. Manufacturer brands are developed and marketed by manufacturers of the product.
2. Own-label brands (also called private label brands , store or dealer brands) are developed
and marketed by wholesalers or retailers. Retailers develop own-label brands to gain more
power

3. Generics are in fact brandless products. They are usually sold at the lowest prices

The Loyalty Pyramid

Committed Buyer

Likes the Brand-considers it a friend

Satisfied buyer with switching costs

Satisfied/habitual buyer who has no reason to change

Switchers/price sensitive –indifferent-no brand loyalty

Market segmentation is the process of dividing consumers into homogeneous groups, i.e.
groups that share needs or react in a comparable way to marketing and communications
efforts.

Requirements for Effective Segmentation

Attainable

Different

Measurable

Large Enough

Positioning means taking into account a complicated set of perceptions, feelings and impressions that a
consumer has about a brand or product. Positioning a brand or product is diff erentiating it from
competitors in the minds of consumers

Positioning Strategies

Product attributes or benefits

Price/quality
Use or application
Product class
Product user
Competitor
Cultural symbols

Stages in the development of a positioning strategy

􀁺 Identification of competitors
􀁺 Assessment of the consumers’ perception of competitors
􀁺 Determination of positions of competitors
􀁺 Analysis of consumers’ preferences
􀁺 The positioning decision
􀁺 Implementation of the positioning
􀁺 Monitoring the position

Marketing communications objectives

1. The reach goal of communicating is to reach the target groups in an effective and efficient way.

2. Process goals are conditions which should be established before any communications can be
effective.
 3. Effectiveness goals are the most important ones, since reach goals only assure sufficient
exposure, and process goals only ensure enough processing of the message to make the
effectiveness goals possible.

Brand loyalty is defined as the mental commitment or relation between a consumer and a
brand.

1.Advertising can be defined as any paid, non-personal communications through various media
by an identified company, non-profit organization or individual. 1 Advertising is a good marketing
communications tool to inform and persuade people, irrespective of whether a product (Nestlé’s
Fitnesse keeps you slim), a service (Avis: We try harder) or an idea (Come up against cancer) is
promoted.

2 Public Relation- is the planned and sustained effort to establish and maintain good relationships,
mutual understanding, sympathy and goodwill with publics , audiences or stakeholders.
Sponsorship can be defined as an investment in cash or kind in an activity, in return for
access to the exploitable commercial potential associated with this activity.

3.Telemarketing is any measurable activity using the phone to help find, get, keep and develop
customers. Media plan can be defined as a document specifying which media and vehicles will be
purchased when, at what price and with what expected results.

Steps in Media Planning

Assess the communications environment

Describe the target audience
Set the media objectives
Select the media mix
Buy media

Material handling= the function dealing with the preparation, placing and positioning of materials to
facilitate their movement or storage.

Production and Operation Management Functions

1. Location of facilities.
2. Plant layouts and Material Handling.
3. Product Design.
4. Process Design.
5. Production and Planning Control.
6. Quality Control.
7. Materials Management.
8. Maintenance Management.

Framework for Decision Making

Defining the problem.
1. Establish the decision criteria.
2. Formulation of a model.
3. Generating alternatives .
4. Evaluation of the alternatives.
5. Implementation and monitoring.

Forecasting- provide information

that can assist managers in guiding future activities toward organizational goals.

Materials management -is a function, which aims for integrated approach towards the management
of materials in an industrial undertaking.

Functions of Material Management

1. Material Planning and Control - scientific technique of determining in advance the requirements of
raw materials, ancillary parts and components, spares etc. as directed by the production programme
2. Purchasing – means buying of equipments, materials, tools, parts etc. required for industry.
3. Stores Management
4. Inventory Control or Management
5. Standardization
6. Simplification
7. Value Analysis

8. Ergonomics

9. Just-in-Time (JIT)

Different Kinds of Auction

1. First Price Sealed Bid Auction- each bidder submits a sealed bid to the seller (that is hidden
from other bidders). The high bidder wins and pays his bid for the good
This type of auction is used for refinancing credit and foreign exchange

2. Second Price Sealed Bid Auction- Bidders submit written bids without knowing the bid of the
other people in the auction. The highest bidder wins but the price paid is the second-highest
bid.

3. English Auction- an individual bidder will obtain a positive income from participating if and only
if she can win the auction with a bid that is less than her valuation of the object. Therefore, a
bidder drops out only when the bid "on the floor" exceeds her valuation. Therefore, the bidder
with the highest valuation wins the auction and pays an amount slightly higher than the value of
the second highest bidder.

4. Dutch Auction- is a type of auction in which the auctioneer begins with a high asking price which
is lowered until some participant is willing to accept the auctioneer's price, or a predetermined
reserve price (the seller's minimum acceptable price) is reached. The winning participant pays
the last announced price.
THE MARKETING MIX

Simply put the Marketing Mix is a tool used by businesses and Marketers to help determine a product or
brands offering. The 4 P’s have been associated with the Marketing Mix since their creation by E. Jerome
McCarthy in 1960 (You can see why there may have been some need to update the theory).

The Marketing Mix 4 P’s:

 Product - The Product should fit the task consumers want it for, it should work and it should be
what the consumers are expecting to get.

 Place – The product should be available from where your target consumer finds it easiest to
shop. This may be High Street, Mail Order or the more current option via e-commerce or an
online shop.

 Price – The Product should always be seen as representing good value for money. This does not
necessarily mean it should be the cheapest available; one of the main tenets of the marketing
concept is that customers are usually happy to pay a little more for something that works really
well for them.

 Promotion – Advertising, PR, Sales Promotion, Personal Selling and, in more recent times, Social
Media are all key communication tools for an organisation. These tools should be used to put
across the organisation’s message to the correct audiences  in the manner they would most like
to hear, whether it be informative or appealing to their emotions.

In the late 70’s it was widely acknowledged by Marketers that the Marketing Mix should be updated.
This led to the creation of the Extended Marketing Mix in 1981 by Booms & Bitner which added 3 new
elements to the 4 P’s Principle. This now allowed the extended Marketing Mix to include products that
are services and not just physical things.

The extended 7 P’s:

 People – All companies are reliant on the people who run them from front line Sales staff to the
Managing Director. Having the right people is essential because they are as much a part of your
business offering as the products/services you are offering.

 Processes –The delivery of your service is usually done with the customer present so how the
service is delivered is once again part of what the consumer is paying for.

 Physical Evidence – Almost all services include some physical elements even if the bulk of what
the consumer is paying for is intangible. For example a hair salon would provide their client with
a completed hairdo and an insurance company would give their customers some form of printed
material. Even if the material is not physically printed (in the case of PDF’s) they are still
receiving a “physical product” by this definition.
Though in place since the 1980’s the 7 P’s are still widely taught due to their fundamental logic being
sound in the marketing environment and marketers abilities to adapt the Marketing Mix to include
changes in communications such as social media, updates in the places which you can sell a
product/service or customers expectations in a constantly changing commercial environment.

Is there an 8th P?

In some spheres of thinking, there are 8 P’s in the Marketing Mix. The final P is Productivity and Quality.
This came from the old Services Marketing Mix and is folded in to the Extended Marketing Mix by some
marketers so what does it mean?

The 8th P of the Marketing Mix:

 Productivity & Quality - This P asks “is what you’re offering your customer a good deal?” This is
less about you as a business improving your own productivity for cost management, and more
about how your company passes this onto its customers.