Learning Objectives

EDS 311 The learning objectives is to ;

• Definition of the marketing and selling concept
• Understanding of the Marketing philosophy and

MARKETING
• Marketing mix

AND SELLING
Prepared by Dr. ALAKE Oluwakemi
 • Marketing goes beyond selling

Marketing • Marketing makes products and services suit

customers needs and sells itself.
defined

• American Institute of Marketing defined

marketing as the process of creating,
communicating, delivering and exchanging
offerings that have value for customers,
clients, partners and the society at large.
 Marketing This is otherwise called marketing concepts.

Philosophy/ There are five management concepts that

organisations use in the development of
Concepts products or services.
In selecting these concepts, marketers must
answer two important questions.
1. What philosophy or concept is best for
setting the marketing strategy?
2. What aspect of the organisation,
customers and society is important.
Production • This is the oldest management orientation that
guides sellers.
concept • The focus is on operations, minimizing production
cost to increase production efficiency.
Consumers will
favour products that • Management focuses on improving production
are affordable and and distribution efficiency.
• This is seen when the demand for a product
available. exceeds supply. It occurs in markets that are
highly price sensitive and budget conscious.
• Where production cost is high, customers are
discouraged from buying products. Hence, all
efforts is put into building production volume
using improved technology to reduce cost.
Example: amazon and pep clothing store.
 • During the first three decades of the twentieth
century, more and more industries were adopting
Product mass production technique as the supply of product

Concept • Prior to this era, manufacturers were facing excess

exceeded demand.

production capacity and competition for consumers.

• The marketing strategy used here focuses on making
Consumers will
continuous product improvements.
favour products that
offer most quality, • Advocates of this concept think that consumers
performance and favour well made products.
innovative features. • It is believed that product design and improvement
aspect are better understood by their engineers or
designers than by the customers.
• Example: improvement of floppy disk to USB flash
drive, memory cards.
 • Sales transaction is promoted rather than
Selling profitable customer relationships.

concept • Sales of the companies product is set above

the customers wants and needs.
• Aggressive selling method is used.
Consumers will not
buy enough of the • Typically the selling concept is practiced with
forms product unless unsought goods such as insurance/ blood
it undertakes a large donations.
scale selling and
promotion effort. • Cigarettes, soft drinks and soda drinks
company ads are examples of selling
concepts.
 • This concept hangs on the philosophy that
Marketing achieving organisational goals relays on the
needs and wants of the target markets to
Concept better its competitors.
Understands • Here, a “customer first” approach is
consumers needs and practiced.
delivers satisfaction
better than • customer focus and value are the routes to
competitors achieving sales and profits.
• The marketing concept is customer centered.
• This concept suggest that marketing starts
with the consumer and goes back to
production in the right amount and
specification. R and
D
 • It calls for a sustainable marketing both
Societal socially and environmentally. Present
business and customers needs are met while
marketing also preserving and enhancing future
concept generation ability to meet this needs.
Deliver value to • This concept puts human welfare on top
customers in a way before profits and satisfaction of wants.
that maintains or • Balance between company profit, customer
improves both the
satisfaction and public interest.
consumer’s and
society’s well being. • An example of this are campaigns held by
organisation for a cause or creating
awareness about a particular cause.
• Companies corporate social responsibility.
Entrepreneurial Marketing.
Marketing is a vital process for entrepreneurs
because no venture can become established and
grow without a customer market.
Marketing
Mix
 • Here, the customer only cares about one thing. What

Product Mix • Priority is made on producing the best product. This

a company’s product or service can do for them.

approach is called the product led marketing.

• The mix involves every aspect of marketing intended
for sales which has evolved to content marketing.
 Design
 Quality
 Features
 Options
 Packaging
 Pricing mix • Several factors make up the pricing
model
Brands may price their product higher
than competitors or lesser than
competitors to gain entrance into the
market or increase its market share.
Various types of pricing exist:
 Skimming pricing :pricing strategy that sets new product prices high and
subsequently lowers them as competitors enter the market.
Skim pricing is the opposite of penetration pricing.

 Penetration pricing :prices newly launched products low to build a big customer
base at the outset.This strategy is applied in the cases where
products are substitutes of each other i.e. can replace each
other and can be used almost alternatively

 Premium pricing :Premium pricing is an approach used by businesses to increase the

perceived quality of products and build a luxury brand image by
LLP technique in which the products are priced low to escalate the sale (revenue/profit) of other goods offered by the pricing them higher than the market average.
same entity. mostly applied in the situation where products are complements in nature i.e. you have to have
complete set of products to make the unit work.
 Loss leader pricing :A loss leader strategy involves selling a product or service at
a price that is not profitable but is sold to attract new
customers or to sell additional products and services to those
customers.
 • This is the first marketing mix that attracts the
Promotional customers. It includes television and media

mix adverts, email marketing, digital strategies.

• For example:
• A customer sees an in-store promotion and
uses their phone to check prices and read
reviews.
• Brands website can be viewed which focuses
on the unique features of the product.
• Brands have solicited reviews which addresses
that feature.
• Automation thank you messages are sent.
 • This refers to where the product will be sold.
Place mix With the advancement in technology, this
goes beyond physical location.
• Where is your product needed
• Will patronage increase by direct marketing
from company’s e-commerce website or via
third party market place.
• Do you want to converse directly with
customers as they purchase or do you want a
third party to resolve customer service issues.
 • This refers to anyone who comes in contact
People mix with your customer, even indirectly not just
in customer service and sales force.
• Key insight to the people mix
Brand personality
Hiring professionals to design and develop
products and services
Customer relationship marketing which
inspires loyalty
 • Packaging draws the attention of new buyers in a
Packaging crowded marketplace and reinforces value to
returning customers.
mix • Packaging helps achieve three things
• Design for differentiation. A good design helps
customers as well as potential customers recognise a
brand at a glance. For instance a customer knows the
colour bands of various or preferred beverage drinks.
• Provide valuable information: a product package is
the perfect place for product education or brand
reinforcement.
• Add more value: exceeding expectation. Such as,
relaxers coming with hair comb or morning fresh
soap coming with soup spoons.
Process mix • This refers to processes as it relates to
customer experience.
An example of this is
• Scheduling and delivery logistics of the
company
• Required amount of staff
• Do items ship reliably from the website
• Quick response time
 Marketing • Make a short video on product or service marketing
and selling.

and selling You have become CEO of a 25 billion dollar company. One
of your goal is to increase your market share by creating

project more awareness and sales for your product.

You handed over the task to each department to help
achieve this goal. As a marketing director, come up with a
strategy using video presentations to achieve this goal.
Each program is to do a graded presentation next week.