PRINCIPLES OF BUSINESS

Quote of the day

Follow your dream. Take one step at a time and don’t

settle for less, just continue to climb. Just continue to
climb. Follow your dream. If you stumble, don’t stop
and lose sight of your goal. Press to the top. For only
on top can we see the whole view, can we see what
we’ve done and what we can do; can we then have the
vision to seek something new, press on. Follow your
dream.
 Specific Objectives

At the end of the lesson students should be able to:

⚫ Explain the content of market and marketing
⚫ Explain the marketing activities
Do you know what a market is?
 Definition of a market
A market is a
medium/situation that
allows buyers and sellers
of a specific goods or
service to interact in order
to facilitate an exchange.
This type of market may
either be a physical place
such as a shop or a virtual
market or over the
internet.
⚫ Types of market
include:
⚫ money market/capital
market [e.g. banks, unit
trust ]
⚫ commodity market [e.g.
sells tea, sugar, coffee]
⚫ consumer market [retail
and wholesale shops]
What then would you say marketing is,
is it the same as a market?
 DEFINITION OF MARKETING
⚫ Marketing is the
business process of
creating relationships
with and satisfying
customers. Marketing
focuses on the customer.
These include activities
such as market
research, packaging
and distribution eg.
social media marketing
and integrated
marketing.
 Specific objective number 2

⚫ Explain marketing activities.

⚫ Do you know what marketing activities involve?
 Definition of Marketing Activities

⚫ Marketing activities
involve identifying,
creating, communication
and delivering value to
consumers in order to
generate sales and
profits.
 TYPES OF MARKETING ACTIVITIES

⚫ Market research
⚫ Pricing
⚫ Packaging
⚫ Branding
⚫ Sales promotion
⚫ Advertising
⚫ Distribution
 MARKETING ACTIVITIES

⚫ Market research – A
market research is the
collection and analysis of
data about the consumer’s
preference and
competitors. It is
important to research any
new market you are moving
into to avoid wasting time
and money on failed
projects.
IMPORTANCE OF MARKET RESEARCH

⚫ WHY DO YOU BELIEVE MARKET RESEARCH IS

IMPORTANT TO BUSINESS?
 TYPES OF MARKET RESEARCH

⚫ Consumer Taste ⚫ Competitor

A consumer’s taste refers to
the products and services
that consumer’s choose over
others.
⚫ Market research helps to
identify the consumer’s
taste, this will assist the
firm in making better
decisions about the
products/services offered.
Market research helps a firm
to obtain information about
their competitor in order to
make better designs, offer
competitive prices, and
becoming more effective.
 TYPES OF MARKET RESEARCH CONT’D
⚫ Consumer Behaviour
and spending pattern
⚫ Consumer behaviour is a
study of the public
reactions towards a
product.
⚫ Market research helps a
firm to understand what
prompts a consumer to
purchase a particular
product and what stops
him from buying it.
 PRICING

⚫ LET US TALK ABOUT PRICE.

⚫ What is price?
⚫ How important it is to arrive at the right price?
 PRICE

⚫ PRICE
⚫ The price is the monetary value of a good/service or
the amount asked for the product/service
⚫ Pricing strategy is a way of finding a competitive
price of a product or a service. This strategy is
combined with other factors such as 4 ‘P’s, demand
and supply, and competition.
 PRICING STRATEGIES

⚫ Cost plus pricing

⚫ Penetration pricing
⚫ Price skimming
⚫ Psychological pricing
⚫ Loss leader pricing
⚫ Competition-based pricing
⚫ Price discrimination

⚫ Make short notes on each.

 Marketing activities - Packaging

⚫ LET US TALK AGAIN.

⚫ What is packaging and how important is it to choose

a suitable package?
 Marketing activities - Packaging

⚫ PACKAGING
⚫ Packaging is the way in
which a saleable product
is wrapped/displayed or
presented to the
customer.
⚫ Labelling is an important
part of packaging this
may be a small tag
attached to the product.
 FORMS OF PACKAGING

⚫ GIVE ME SOME FORMS OF PACKAGING

 Marketing activities - Packaging

⚫ Presentation/Benefits of Packaging
⚫ The package should look bright, attractive and different
from its competitor
⚫ The package should provide some measure of safety i.e.
wrapped to protect the product
⚫ The package should give information about the product
e.g. description of the content
⚫ It should be suitable for easy handling and transportation
⚫ The package carries the firm’s logo and brand name to
allow customers to identify the product
 Marketing activities - Packaging

⚫ HOMEWORK
⚫ OUTLINE THREE FUNCTIONS OF PACKAGING
 Marketing activities – Brand

What is a brand?
Are you loyal to a particular brand?
 BRANDING

Branding is the name,

term, sign, symbol or
design that differentiates
the product of a company
from that of its
competitors.
WHAT ARE SOME OF THE REASONS FOR
BRANDING?
 REASONS FOR BRANDING

⚫ To be able to promote the product more easily,

through advertising.
⚫ To promote the firms image by using the name of the
company as the brand.
⚫ It helps to create customer loyalty, that is the
faithfulness of a customer to buy a particular brand
regularly
⚫ To provide legal protection for ownership rights.
 Marketing activities – Distribution
and Sales Promotion
Place [Distribution]
⚫ This is concerned with how products pass from the
manufacturer to the final consumer.
⚫ There are different channels of distribution e.g. producer
sells to the retailer and the retailer sells to the consumer.

Sales Promotion
⚫ Promotion is a method that a firm uses to make the
consumer aware of the product.
⚫ It helps to inform the customer about a product, create
an image about the product or encourage existing
customers.
⚫ This can be done through advertising, personal selling
and free samples
END OF PRESENTATION