THE FIRST CULTURE 

  Chapter 1   
Marketing Culture and Orientation

the whole business seen 
from the customer’s 
point of view.” 
Peter Drucker

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THE STRATEGIC ORIENTATION OF BUSINESS 

 Customer Orientation
 Organization Integration
 Mutually Profitable Exchange

 
 
 
 
 
 
 

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Chapter 2 
Markets and the Marketing Environment
THE CONCEPT OF THE MARKETING ENVIRONMENT
 the external environment – known as the macro environment
 the Internal environment – known as the micro environment

Macro Environment

Operating Environment
Marketing Environment

Tariffs / Incentives
Market Estimation

Technological
Economic

Markets / Segments
Customers
Competitors
Gap Analysis
Intermediaries
Macro Environment

Suppliers Workforce
Business Practices

Political Social
Legal

Figure: The macro and micro marketing Environment

 PESTEL / STEEPLE / SWOT / TOWS / 5C / Porter Five Force

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Organizational
Markets

Resellers
Industrial
Government

Consumers International

Company
Figure: Types of Market
THE MARKETING MIX

The Seven Ps & Kotler’s Seven Cs

Seven Ps Seven Cs

Product Customer Value

Price Cost

Place Convenience

Promotion Communication

People Consideration
Coordination and
Processes
Concern
Physical Evidence Confirmation

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Four Basic or Main Components

of
Marketing Information System ( MIS )

Internal Marketing Marketing Marketing Decision

Records Intelligence Research(MR) Support System

Provides Collects Is used to Are tools which

reliable information solve specific helps marketing
internal or from the marketing managers to analyze
inside external problems of data & take better
information of sources the company marketing decisions?
the company

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Marketing Audit
It is a review or evaluation or  It compares the marketing 
examination of the marketing  plans of a company with its 
activities of a company.  actual marketing 

External Marketing  Internal Marketing  Evaluation of 

Current Marketing 
Environment  Environment 
Strategy 

Marketing 
Marketing  Marketing 
Environment Audit
Functions Audit  Strategy Audit

Types of Marketing 
Audit

Marketing  Marketing 
Productivity Audit  Marketing  Organization Audit
Systems Audit 

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Chapter 3 
Marketing Strategies
Organizational Stance and Positioning
Stance Positioning
1. Innovation 1. Leaders
2. Fortification 2. Followers
3. Confrontation 3. Niche Marketer
4. Harassment
CORPORATE STRATEGY

Attack Strategies Defense Strategies

1- Direct Challenge (Differential Advantage) 1- Position Defense
2- Direct Attack (Distinctive Competence) 2- Pre-emptive
3- Direct Attack (Market Share) 3- Counter- Offensive
4- Flank Attack 4- Mobile Defense
5- Encirclement 5- Flanking Defense
6- Bypass 6- Contraction Defense
7- Guerrilla
Types of Marking Strategy
a. Undifferentiated Marketing

Entire
FIRM Market

b. Differentiated Marketing

Segment A

FIRM Segment B
Marketing mix

Segment C
c. Concentrated Marketing

Segment A

Segment B
FIRM

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MODELS FOR FORMULATING MARKETING STRATEGIES 
Ansoff

Product
Existing New
Existing

MARKET PRODUCT
Market

PENTRATION DEVELOPMENT

MARKET
DIVERSIFICATION
New

DEVELOPMENT

Figure: Ansoff Matrix

Strategy 1: Market Penetration (same product/ same market)

Strategy 2: Market Development (same product/ new market)
Strategy 3: Product Development (new product/ existing market)
Strategy 4: Diversification (new products/ new market)
Porter’s Generic Strategy Model

Powerful and rich

Differentiation - Unique selling (Service)/ Proposition/
(USP)
- Competitors do not have
- Brand/ product loyal
- Price not important buyers
Cost Leadership Stuck
Powerful and rich With No
Clear
- produce large Strategy Focus
quantities
- lowest cost/ lowest Smaller firm
price
Very select market sectors /higher
- economies of scale
price /offer special (USP2)/
- attract price-sensitive
Key product for specific targets/
buyers
Specialist can simply attack/
Figure: Porter’s Generic Strategy Model (Ignored by the competition)
Niche marketers
Strategy 1: Cost leadership
Strategy 2: Differentiation
Strategy 3: Focus

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BCG Matrix

Figure: Boston Consultancy Group Matrix

QUESTION MARKS STARS
   
Low Market Share  High Market Share 
and  and 
High Market Growth  High Market Growth 
   
Don’t know what to do with  Doing well,  
opportunities;  great opportunities. 
decide whether to increase   
investment. 

DOGS  CASH COWS 
   
Low Market Share  High Market Share 
and  and 
Low Market Growth  Low Market Growth 
   
Weak in market,   Doing well in no growth market 
difficult to make profit.  with limited opportunities. 

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General Electric Business Screen (GE)

Business Unit Strength
Market Attractiveness 

Business Strength Strategic Options Industry Attractiveness

Differential advantages Market size (number/value)

Share (number / value)
Sale (volume/growth)
Breadth of product line
Mix effectiveness
Innovativeness environment
Industry Attractiveness
High
Business Strength
Market diversity
Growth rate (total/ segment)
Profitability (Total/ unit)
Competitors
Social/ Legal/ Environment
Innovation/ product line extension
Product / brand advertising
Medium low
Intensive distribution / good price margin

  

High

  
     

Medium
  

Minimize marketing
Select than whole
Low Close down or deleting an SBU
Profit- harvested
         Investment -minimal

Figure: General Electric Matrix Strategies

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Chapter 4 
Marketing Plans

Repositioning
- From one position to another
Re-launching
- Efficient promotion
- Improved retention
- Improved services level
- More effective production
- Higher price
- More focus new product development

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5C Analysis
INTERNAL

  • Strengths and weaknesses

• Goals and Objectives
Company  • Culture
• Resources, including technology, experience and skills

  • Market size, segments

• Purchasing habits, trends and buying process
Customers  • Overall customer satisfaction
• Perceived value by customers
EXTERNAL

  • Current and Prospective

• Strengths and weaknesses
Competitors  • Opportunities and threats
• Products and market share

  • Suppliers
Collaborators  • Distributors
• Alliances and Partners

  • Regulations and government oversight 
Climate  • Social and cultural 
( environment )  • Business cycle, information and other economic factors 
• Legal 
• Technology

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MARKETING PLANNING PROCESS

Mission Statement
Mission  Corporate Objectives

Identify Opportunities

Situation  5C Analysis
Analysis  SWOT Analysis

PESTEL , STEEPLE Analysis

Define Your Target Audience

Marketing  Set Measurable Goals
Strategy  Develop Budget

Product Development

Marketing  Pricing
Mix  Promotion

Place and Distribution

Put Plan into Action
Implementation and Control
Monitor Results

- There are four factors of critical importance for successful positioning.

1. Credence
2. Competitiveness
3. Consistency
4. Clarity

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Chapter 5 
Research for Marketing
INTRODUCTION
The Role of Information in Decision-making
THE RESEARCH PROCESS
What is Research?

RESEARCH

is the
GATHERING
- An open boat and a net wide enough
- Entered gathered
ANALYSIS
- Throw back (no use)
- Store (could use)
STORAGE
- If enough , would stop
- If not, again and repeat the processes
RETRIEVAL
- Met immediate meet stop
- Retrieval(store), use required purpose
And

DISSEMINATION
of information to aid decision- Making
Figure: The Process of Research

Why Research?
Confidence comes from knowledge
Knowledge comes from investigating
Investigating means research
Information is gathered, and addressed
- Reduce risks
- Help in planning and forecasting results
- Aid ‘mix decisions’
- Improve decision making capabilities

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The Research Plan

The key elements are:
1. Outline the problem 1. (New market, buying patterns, market size)
2. Define the objective 2. Obviously based on what the problem
3. Determine the target to be researched 3. Crucial in a research plan
4. Decide HOW the research is to be carried out 4. Questionnaires, panels, etc.
5. Decide WHO is to carry out the research 5. In house or external agency
6. Determine the timescales 6.
7. Set or agree the budget 7.
8. Implement the plan 8. Set everything in motion
9. Monitor and control 9. Activities / Time / Targets, etc.
10. Reach conclusions 10. Report action

Cost / accuracy / Time / Security

TYPES OF RESEARCH

Research Based on  Basic Research Preliminary

Purpose Applied Research  Conclusive
Performance
Marketing   Research Based on  Primary Research 
Research   Source of Data Secondary Research 

Research Based on Data  Qualitative Research  
Collection Method Quantitative Research  

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Lab Studies

Experimental Field Studies
Primary 
Research  Non experimental
Surveys
 
Market  Focus Groups
Research 
Observation

Internal
Secondary
Research 
External

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RESEARCH METHODS
Interviews and Discussion
Observation
Questionnaires
Test Marketing
Sampling

USING EXTERNAL RESEARCH AGENCY

In-house or External ?
In –house Research

Advantages Disadvantage
Time away from normal
Knowledge of Personnel
duties
Tighter Possible biased views
Instant access to
Lack of research skills
information
Can be less expensive

Agency Research

Advantages Disadvantage

Research Skills possible lack of control

Lack of Knowledge of
Access to target sector(s)
Product
Brings objective Agency dynamics may cause
viewpoint bias
Cost

 Finding Selecting and Recruiting an Agency

 Briefing
 Controlling

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Chapter 6 
Understanding Consumers and Consumer Behavior
THE BUYING PROCESS

Rational Decision-marketing Model

Definition of problem

Setting objectives

Identification of alternative courses

Of action

Evaluation of alternatives

Selection of appropriate alternative

Implementation of selected alternative

Review, evaluation and feedback

Who Buys?
The Decision-marketing unit
 Initiator
 Influencer
 Decider
 Buyer
 User
 Gatekeeper (prevent)
Types of Purchasing
 New-buy Decisions
 Repeat-buy Decisions

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Degree of Buyer Involvement in the Purchase

low High
Few

Habitual buying Dissonance reducing

Significant
behaviour behaviour
Differences
e.g. basic foods e.g. furniture
Between
Brands

Variety seeking
Complex buying
behaviour
Many behaviour
e.g. chocolate bars,
e.g. computers
breakfast cereals

Figure: Four types of buying behavior (from Assael)

Influences on Individual Buying Behaviour

CULTURAL PERSONAL

The Buying
Consumer

PSYCHOLOGICAL
SOCIAL

Personality and Environmental

Personal Group

Family Work

Education Leisure

Residential area Hobbies

Acquired knowledge Protest groups

Likes/dislikes Support groups

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CLASSICFICATIONS OF CONSUMERS

Socio-economic Groupings (Class)

The Family Life Cycle

Sagacity

Geographic/ Residential Group

Life –style Groupings

Geographic / Residential Groups

A. Modern family housing for manual workers

B. Modern family housing for high incomes

C. Older housing of intermediate status

D. Very poor quality older terraced housing

E. Rural areas

F. Urban local authority housing

G. Housing with most cover crowding

H. Low-income areas with immigrants

I. Student and high-status non-family area

J. Traditional high-status suburbia

K. Area of elderly people

Other lifestyle group

(a) Yaks (young, adventures keen and single) 18-24
(b) Ewes (experts with expensive styles) 24-35
(c) Bats (babies add the sparkle) 24-35
(d) Clams (close cheek against money spent) 35-44
(e) Mice (Money is coming easier) 44-55
(f) Owls (older with less stress) 55+

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Table; Organizational versus consumer buying

Dimension business Purchases Consumer Purchases

Product More technical; greater Less technical and more
Quantities purchased; focus on standardized; smaller
services offered with product quantities purchased

Price Frequent competitive bidding; Generally buy on basis of list

list prices on standard items. prices.

Promotion Rely on information from sales Relatively greater emphasis on

personnel and trade
magazines.
Place Short channels; often
purchased directly from
manufacturers
Customer relations More enduring; complex focus
on establishing relationships.
advertising.
Longer distribution channels;
most frequently purchase from
retail stores or mail-order
companies.
Often transaction specific and
quite simple; frequently no
long-term relationship formed.

Buying decision Involvement of more people in Fewer people involved in

process organization with diverse sets process; buying process
of needs; use more structured frequently unsaturated.
decision-making process.

Table Buying Stages of Organizations

Stage 1 Anticipation of a problem and/or recognition of a problem
Stage 2 Identification of the characteristics and quantity of the needed product
Stage 3 Development of a description of the characteristics and quantity of the product
Stage 4 Search for qualification of possible supplies.
Stage 5 Acquisition of and the evaluation of alternate proposals,
Stage 6 Selection of suppliers based upon careful use of choice rules.
Stage 7 Selection and negotiation of how the order will be made.
Stage 8 Evaluation of the performance of the supplier.

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Types of Industrial Purchases

 Straight re-buy; simply repeat purchasing without changes of any kind
 Modified re-buy
 New buy

Influences on Organizational Buying

(a) They have multiple objectives/needs
(b) A lot of people may be involved in the purchasing decision
(c) Buying patterns maybe formally set by the organization
(d) The value of the purchase is often high
i. Market
ii. Organizational
iii. Personal

Segmentation and targeting in Business-to-Business Markets

 Background company characteristics
 Industry type
 Company size
 Customer location
 Company technology
 Customer capabilities
 Purchasing organization
 Power structures
 Purchasing policies
 Product application

Attitudinal characteristics
Behavioral characteristics
 Buyer-seller similarity
 Buyer motivation
 Buyer risk perceptions

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Chapter 7 
Product Management and Development
NATURE OF PRODUCTS AND SERVICES
Classifications of products
(a) Consumer products
 Convenience
 Shopping
 Specialty
 Unsought
(b) Industrial products
 Raw materials and components
 Equipment/plant
 Supplies
PRODUCT MANAGEMENT
Main concerns of Product Management
(a) Maintenance of Existing products
(b) Development and introduction of new products
(c) Product positioning
(d) Improving customer loyalty

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Negative cash Flow

Research into successful new product launches indicates that, to be successful, there

must be:

 An Innovative culture within the organization

 Encouragement from senior levels

 Committed development teams/personnel who will “champion” the product

 Close cooperation between all functional areas of the organization

 Adequate resources invested in the development processes

 Good understanding of the target market

 Confident decision-markets

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Recent research has shown the failure in NPD can be caused by:

 Poor/inadequate actions at the test marketing stage

 Lack of research into the needs of the target market

 Time taken to get to market

 Inadequate investment in promotional aspects

 Risk-aversive management teams.

Functions
of
Packaging

Protect Communicate Provide Promote

The Product Symbolically Customer The Product
Convenience

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Point of Difference  Brand Trademark 

  When a product can be  When a Letter, Name, Sign, 
1. Meaning  identified through the  Picture or Design or a mix of 
medium of trademark, word,  all, is registered under law. 
name & design. 

  All brand are not Trademark. All Trademark are brands.
2. Nature
  Objective of a brand is to  Trademark’s objective is to 
3. Objective help the identification of  stop product’s duplication or 
product & provide it  copy. 
difference & specialty. 

Brand Registration is not  Trademark Registration is 
4. Registration compulsory.  compulsory. 

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Chapter 8 
Pricing Policies and Price Setting
THE PRICING DECISION
Pricing Plan
Pricing Policies
(a) Cost-oriented Policies
(b) Demand-oriented Policies
(c) Competitor-oriented Policies
Influences on Pricing Decisions

COMPANY
OBJECTIVES
COSTS CUSTOMERS

COMPANY EXISTING
MARKET STANCE COMPETITOR

PRICE

NEW
MANAGEMENT COMPETITOR
CULTURE
DISTRIBUTION
SUPPLIER LEGAL &
POLITICAL

Figure: Influence on pricing decisions

(a) Organizational Factors (b) Customer Factors (c) Market Factors

(1) Corporate Objectives
1. Demand 1. Competition Quality
(2) Product Life Cycle
2. Customer Benefit 2. Environment
(3) Product Line
3. Perceived Value
(4) Segmentation/ Positioning

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Pricing Strategies
- Penetration Pricing (Low Prices)
- Skimming Pricing (High Prices)
- Early Cash Return
- Satisfactory Rate of Return
- Differential Pricing
- Competitive Pricing
 Volume discounts
 Menu pricing
 Promotional pricing
(a) Money off current purchase
(b) Money off next purchase
(c) Cash back offers
(d) More product for the same price
(e) Discounts on multiple purchases

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Changing Prices
 Competitive activity
 Leadership strategy
(a) Price reductions  Excess production
 Trade
 Falling brand share
 Quantity (b) Discounts  Low quality tranches image
 Cash
 recession
 Promotional (c) Price increases
 Individual
 Psychological
 Inflation
 Increased taxes
 Currency exchange rate changes
 Excess demand
 Increased quality/buyer benefits

Margin = the difference between the cost price and the selling price

Revenue

Total cost

Variable cost

Fixed Cost
Quantity

Factors Influencing the Elasticity of Demand

(a) The availability of substitute products
(b) When complementary goods exist
(c) Purchasing power and income
(d) Importance of purchases within budget

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Definition of Price Elasticity

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Chapter 9 
Distribution Policy and Management
THE IMPORTANCE OF THE PLACE ELEMENT
The ‘place’ element of the marketing mix does not only relate to the actual location where
a buyer can obtain a product; it is also concerned with the entire process of distribution
management.

The Distribution Plan

 Requirements of the Product
 Requirements of the Buyer
 Kind of Transport Required/ Available
 Requirements of the Seller
CHANNELS OF DISTRUBUTION

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Direct and Indirect Channel

Direct (Shorter) Indirect (Longer)

Industrial products Consumer products

Services Tangible products

Few, more concentrated customer Larger numbers of customers,

groupings geographically dispersed

More control required, e.g. quality

Control less important
installation, after-sales service

Customer purchases in large amounts at Customer purchases frequently but in small

frequent intervals amounts

Products which are bulky, expensive to

Less bulky, cheaper, standardized, non-
handle, custom-built, high unit value or
perishable products
perishable

Factors Affecting Channel Choice

(a) Market Characteristics
(b) Product Characteristics
(c) Characteristics of Intermediaries
(d) Characteristics of Competitors
(e) Company Characteristics
(f) Legal Aspects

DISTRIBUTION MANAGEMENT
Benefits of logistics  Transportation
(a) Customer Service Needs  Materials handling
(b) Present Performance- Competitor and Ourselves  Warehousing and delivery
(c) Maximizing profits  Inventory
(d) Specific Performance levels  Location
(e) Plan, Implement and Control  Processing
Using Availability as a Competitive Advantage  Cost control
 Guaranteed Delivery  Policy formulation
 Customer Satisfaction
 Service Elasticity

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Chapter 10 
Marketing Communications
Strategic Approach to Promotion

Integrated Communications Planning

Marketing Communications Strategies
(a) Type of Campaign
(b) Media Selection
Budget Allocation
 A percentage of sales (past of future)
 Last year’s spend plus (or minus) a percentage
 Equal to (or more) than what the competition are spending
 Enough for the job
The elements of the communications mix are used to:
 Attract and remind buyers – advertising
 Attract and interest buyers – sales promotion
 Help buyers and to close the sale – personal selling
 Build images and feel-good factors – public relations

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Chapter 11 
Digital marketing

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PUBLISH
ARTICLES
AND GAIN
BACKLINKS

INFLUENCER
MARKETING
& SOCIAL
JOURNALIST, MEDIA
BLOGGER & SHOUT OUTS
CONTENT WRITER
NETWORKING

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Digital Marketing

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Marketers
have 
gravitated 
their 
marketing  Direct 
Newspapers  Mails 
budgets 
Radio 
toward 
online 
marketing 
channels.  TV 
Flyers
s

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IDEAS, CONCEPT & TOOLS OF

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Chapter 12 
ADVERTISING
Why Advertise?
The purpose or reasons for advertising can be many and varied. For example, the
purpose might be to.
- Announce a new product
- Announce a modification
(price change, special offer, etc.)
- Challenge the competition
- Maintain sales
- Remind people to purchase
- the product again
- Educate users and buyers
- Retrieve lost sales
- Keep retailers/distributors
(satisfied and/or motivated)
- Catch new customers
[entering the market for the first time.]
(a) The changing needs of the target audience
(b) Products being updated and improved
(c) The increased sophistication of advertising
(d) The competitive nature of the marketplace.

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Other types of advertisements:

 Institutional advertising: Promotes organizational images, ideas and political issues

 Advocacy advertising: Promotes a company’s position on a public issues

 Product advertising: Promotes products’ uses, features, and benefits

 Pointer advertising: Tries to stimulate demand for a product category with

information about the product

 Competitive advertising : Tries to stimulate demand for product with information

about product’s advantages

 Financial Advertising: When public limited companies invite the general public to

subscribe to the share capital of the company, it is called financial advertising.

 Cooperative Advertising: Sharing is the key component here. Two parties share

their advertising costs in this type of advertising.

 Direct-Mail Advertising: Emails, catalogues, flyers, letters, and postcards are just

a few of the direct-mail advertising options available. A lot of personal details are
required to be known for this type of advertising.

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Advertising Media

Media selection will, broadly speaking, be based on three factors:

(a) Cost Involved
(b) Characteristics
(c) Audience

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