BBM3205 Marketing Management

DEPARTMENT OF MANAGEMENT
UNIT TITLE: MARKETING MANAGEMENT
UNIT CODE: BBM3205

BBM3205: MARKETING MANAGEMENT
Pre-requisites
Purpose: To expose the learner to the fundamentals of strategic marketing management for effective
marketing practice.
Course Objectives
By the end of the course unit the student will be able to:-
 Apply core concepts of marketing management practice

 Describe the key concepts of strategic marketing management
 Explain the process of strategic marketing management
Course Content
 Understanding marketing management; core concepts of marketing, marketing Management

 Overview of strategic management; key terms in strategic management, states of strategic
management, strategic planning
 The nature of strategic marketing; marketing decisions making, marketing research Process
 Analyzing consumer and organizational buyers; types of buyer behaviour, buyer decision
making, influences on consumer buyers, organizational buyer behavior, influence on
organization buyer, strategic implication of buyer analysis.
 Analyzing the strategic situations and competitions; determinants of marketing strategy
situations, organizational situations, product market situations, competition situation,
environment influence, strategic situation assessment, marketing strategy option, analysis of
competition
 Marketing target strategy; market targeting options, identifying the basis of segmentation,
forming and profiling segment, analysis segmenting alternatives, selecting a market target
strategy
 Marketing programme positioning strategy; setting market objectives, choosing a positioning
strategy, positioning components of the marketing program, making the positioning decision
 Product strategy; the strategic role of product decisions, branding strategy, The strategic
analysis of exiting products, product strategies, new product planning strategy
 Distribution strategy; strategic role of distribution, strategic alternatives, selecting a channel
strategy, strategic trends in distribution
 Price Strategy; strategic role of price, analyzing the précising situations, selection of price
strategy, communication process, promotion components, budgeting and mix strategy,
advertising strategy, public relations strategy, selling and sales promotion strategies
 Implementation evaluation and control; organization for strategy implementation, preparing the
plan and budget, implementing the plan, developing a strategic evaluation program, strategic
marketing audit, performance criteria and information needs, Information analysis and action
Teaching / Learning Methodologies: Lectures and tutorials; group discussion; demonstration; Individual
assignment; Case studies
Instructional Materials and Equipment: Projector; test books; design catalogues; computer laboratory;
design software; simulators
Recommended Text Books:
 Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Text Books for further Reading:
 Saeed Ghose, (1990), Marketing Planning And Control, Anmol Publications

 Kotler P, (2006) Marketing, Management, Analysis, Planning, Implementation and Control 12th
Edition
Other support materials: Various applicable manuals and journals; variety of electronic information
resources as prescribed by the lecturer
________________________________________________________________________________
BBM3205: Marketing Management
Course outlines
- Marketing management definition, exchanges, marketing concepts/philosophies: production,

product, selling, marketing, societal
- Marketing environment – external ( economics, social , technological, legal, cultural, natural) ;
competitive environment , tools of analysis, ; internal environment
- Consumer and organizational behavior – consumer market definition, consumer buying
behavior, types of buying behavior, factors affecting purchase decision; business market –
organizational buying behavior, characteristics of organizational and consumer buying,
organizational buying criteria, organizational buying process
- Marketing planning – framework for marketing planning, strategic marketing planning,
importance of planning, tools of planning, what marketing plan includes
- Market segmentation- definition, selecting target market, undifferentiated approach , market
segmentation approach, concentrated strategy, multi-segment strategy, criteria for
segmentation, variables for segmentation, single-variable, multi-variable segmentation
- Positioning strategy – defining positioning, product positioning process, link of positioning to
segmentation and targeting, positioning strategy and new product development, product
strategy, new product development process, adoption process, diffusion process
- Distribution strategy- forms of distribution channels, importance, factors affecting, distribution
channel strategy
- Pricing strategy – defining price, its importance to a firm, factors influencing pricing decisions,
approaches to pricing – competitor based, value based, cost-based, pricing strategy
- Promotion strategy – elements of promotion mix, developing promotion strategy, advertising,
designing advertising strategy
- Personal selling – personal selling process, sales management process, sales plan formulation;
public Relations strategy, steps to develop public Relations strategy
- Marketing management control and evaluation , control process , approaches to marketing
control and evaluation
Recommended Text Books:
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Text Books for further Reading:
Saeed Ghose, (1990), Marketing Planning And Control, Anmol Publications

Kotler P, (2006) Marketing, Management, Analysis, Planning, Implementation and Control 12th Edition
Other support materials: Various applicable manuals and journals; variety of electronic information
resources as prescribed by the lecturer
Table of Contents
CHAPTER ONE PAGE
Marketing management concepts and marketing environment ……………………….6
CHAPTER TWO
Consumer and organizational buying behavior……………………………………….12
CHAPTER THREE
Marketing Research process…………………………………………………………..16
CHAPTER FOUR
Marketing Planning …………………………………………………………………...22
CHAPTER FIVE
Market segmentation………………………………………………………………….26
CHAPTER SIX
Positioning strategy……………………………………………………………………30
CHAPTER SEVEN
Distribution strategy…………………………………………………………………..34
CHAPTER EIGHT
Pricing strategy………………………………………………………………………..38
CHAPTER NINE
Promotion strategy……………………………………………………………………39
CHAPTER TEN
Personal selling and Public Relations ………………………………………………...43
CHAPTER ELEVEN
Marketing management control and evaluation ………………………………………44

BBM3205: MARKETING MANAGEMENT
PART ONE: WEEK ONE – WEEK SEVEN
(Note: the CAT covers only part one)

CHAPTER ONE
Week one
Learning objectives
By the end of this chapter the learner should be able to:
1. Define marketing management
2. Understand core marketing management concepts
3. Explain the marketing environment
4. Analyze competitive environment using Porter’s model and benchmarking as tools
MARKETING MANAGEMENT CONCEPTS
Definition of marketing
Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.
Exchanges
For an exchange to occur, there
 Must have something of value to exchange

 Need to be able to communicate
 Must be able to exchange
 Must want to exchange
 Must at least 2 people needed for an exchange to occur
Definition of marketing management
Marketing management is the planning, organizing, implementing and controlling the marketing
activities to facilitate and expedite exchanges effectively to facilitate highly desirable exchanges
and to minimize the cost of doing so. Effective planning reduces/eliminates daily crises.
Marketing management can be described as carrying out the tasks that achieve desired
exchanges, between the corporation, and its customers.
Marketing concept/ philosophies

Marketing management philosophies guide a marketing effort. There are different marketing
management philosophies or concepts: production, product, selling, marketing and societal
marketing concepts:
Production concept Demand for a product is greater than a supply. To increase profit, focus on
production efficiencies knowing all output can be sold. Also useful concept when increasing
production raises economies of scale etc. to reduce price. Henry Fords, word sums up the
concept: "Doesn't matter what color car you want, as long as it is black."...A typical quote during
the production era.
Dominant era: From mid C19th to early C20th, industrial revolution etc.
Product concept focuses on product quality, and performance. The product with quality sells
itself.
Selling concept Demand for a product is equal to supply. Emphasis is needed to sell the product
to increase profits. Focus is on advertising. It is useful for unsought goods, i.e., encyclopedias,
funeral plots. Political candidates, selling important, not post consumer satisfaction.
Dominant era: 1920's to mid 1930's WWII to early 1950's
Marketing Concept- in this case, supply for a product is greater than demand, creating intense
competition among suppliers. Company first determines what the consumer wants, then produces
what the consumer wants, and then sells the consumer what it wants.
Dominant era: 1930's to WWII 1950's to present.
Societal marketing concept: it focuses on stakeholders, the business and its customers. It
balances company profits, customer wants and society's interests.
Marketing environment
Marketing does not occur in a vacuum. The marketing environment consists of external forces
that directly and/or indirectly impact the firm. Changes in the environment create opportunities
and threats for the firms.
To track the external forces a firm uses environmental scanning and continual monitoring of
what is going on.
Environmental scanning collects information about external forces. It is conducted through the
Marketing Information System. Environmental analysis determines environmental changes and
predicts future changes in the environment. The marketing manager should be able to determine
possible threats and opportunities from the changing environment. This will help avoid crisis
management.
Environmental forces (macro-environmental): external forces
The environmental forces include: societal, political, legal, economic, technological, natural and
competitive forces.
Societal forces: This consists of pressure to create laws. Since marketing activities are a vital part
of the total business structure, marketers have a responsibility to help provide what members of
society want and to minimize what they don't want. Some of the important considerations are to
understand cultural diversity and population’s age structure (for example, aging population).
Political forces
Some of the considerations to understand are the political stability, government in power,
government’s attitudes towards businesses, fiscal and monetary policies of government, reforms
such as health care, tax and new legislations, including creation and activities of regulatory
agencies.
Legal forces
Legal forces include the laws and regulations that govern businesses at national, county and
municipal levels.
Economic forces
This includes exchange rates, inflation rates, rate of economic growth, rates of inflation,
unemployment rates, and business life cycles.
Consumer demand and spending patterns are affected by the economy and the perception of the
future. It is important to determine consumer buying power, and willingness to purchase.
Technological forces
Consumer’s technological knowledge influences their desires for goods and services.
Examples of changing technology :change in transportation methods have enabled the
development of out of town shopping centers; inventory control systems make companies more
efficient, this cost efficiency can be passed onto the consumer. It has helped develop
relationships with suppliers and their supplied; improved standard of living achieved by
increased leisure time; websites, internet, and medicine
Patent protection leads to a barrier to entry, monopoly. Without it firms may be unwilling to
launch new products that incorporate new technologies for fear of copying, therefore nothing is
gained.
Natural force
This includes floods, severe winter and drought
Competitive environment analysis (micro-environment): external forces
A competitive review is important for two reasons.
Firstly, even if the firm knows know what the customers want and as the resources to meet the
customers' demands, it may be that the competitive environment means that it is not worth
pursuing particular parts of the market for a whole range of strategic reasons, such as the threat a
price war, channel conflict, or legal or ethical considerations.
Secondly, the first need to know if its competitors are doing things better than it is doing , or
more dangerously, whether competitors are looking to change the basis of competition in the
market, for instance by moving to a direct sales model, or by introducing some new product or
technology.
Competitive forces
All firms compete for consumer’s money. Here, to consider competitive structure is necessary.
The competitive structure can be monopoly duopoly or oligopoly.
Duopoly: two firms dominate the market
Monopoly: One marketer in the marketplace
Oligopoly: A few marketers (perhaps 3 or 4) dominate the market place
Monopolistic Competition: many marketers competing in the market place
Perfect Competition: all competitors are equal and have equal access to the market place. It is
very uncommon.
Tools of competitive analysis
1. Porter’s the competitive Five-Force Model
The model assists to analyze the threats of new entrants into the industry, threats of substitutes,
bargaining power of buyers, bargaining power of suppliers and competitors’ rivalry.
Porter’s five forces of competition drive competition in an industry. Competitive rivalry is fierce
if there are numerous competitors in an industry, markets are mature, with little differentiation
and innovation.
The threat of new entrants will be high if an industry is attractive, i.e. there are enough
customers, and profit margins are high and set-up costs low.
Substitute products are a threat if they perform the same function as the product or service they
replace. A substitute which provides more or is better value for money is a greater threat.
Buyers generally are powerful if they have the opportunity to shop around for the best deal and
they purchase a significant amount of a product.
Suppliers are powerful if there are few suppliers of a good or service, as the buyer is denied the
opportunity to shop around for other options
2. Benchmarking
Benchmarking is another tool used to ascertain how well a firm is doing against the competition.
Are there areas that a firm can learn from the competition? Are there ideas in markets outside a
firm’s r own that would be worth bringing into a firm’s market to give a firm a competitive
advantage?
Firm’s competitors can also be a source for information about the general market. Their
advertising and marketing is telling a firm something about the messages and approaches that
they think are applicable to a firm’s market. If they have done their research, a firm can learn
from their approaches.
The following also affect the firm’s marketing strategy formulation:
1. Intermediaries such as financial institutions

2. Stockholders
3. consumers
Internal environment
This includes the resources of the firm funds, human resources, intangible assets such as know-
how, brand, reputation, images; it also includes the firm’s mission, overall goals, and objectives.
Chapter review questions
1. identify and explain the main marketing environment both external and internal
2. discuss the marketing management philosophies
3. what are the conditions for exchange to occur
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall , Chapter
1 and Chapter 3
Implementation. New York: Macmillan Publishing Company, Chapter 5 and Chapter 6
CHAPTER TWO
Week two
Learning objectives
1. differentiate consumer market and business market
2. discuss consumer behavior and organizational buying behavior
3. describe the steps in consumer’s behavior in purchase decision making process
4. explain the organizational purchase behavior in purchase decision making proc
CONSUMER AND ORGANIZATIONAL BUYING BEHAVOIR
In studying consumer and organizational buying behavior we divide market into two:
1. consumer market
2. business/ organizational market
Consumer market
Consumer market is all the individuals and households who purchase goods and services for
personal use.
Consumer buying behavior
Consumer behavior is the study of consumers and the processes they use to choose, use and
dispose of products and services. Understanding consumer behavior is critical to use it to
1. Provide value and customer satisfaction

2. Effectively target customers
3. Enhance the value of the company
4. Improve products and services
5. Create a competitive advantage
6. Understand how customers view their products versus their competitors' products
7. Expand the knowledge base in the field of marketing
8. Apply marketing strategies toward a positive affect on society
The consumer buying process
The consumer buying process involves five steps:

1. problem or need recognition, for example, being hungry and recognizing a need for food
2. information search, then looking for suitable food with relevant price, location and time
3. evaluation of alternatives, look at options based on criteria
4. purchase decisions, to select the food to eat based on the criteria and eat the food
5. post purchase behavior, to evaluate the value of the food against cost
Types of consumer buying behavior
1. routine response or programmed behavior : this is used when buying frequently

purchased low cost items such as soap for washing clothes; also it is used when little
search or decision effort is needed
2. limited decision making : this is used when products are occasionally purchased; also
when information is needed about an unfamiliar product in a familiar product category,
such as buying a glass of apple juice from the familiar group of juices such mango,
passion, and avocado
3. Extensive decision making: it is complex high involvement; this is used when product is
unfamiliar and expensive; when a product is infrequently purchased, for example, buying
a car, a home or education.
4. Impulse buying behavior : there is no conscious planning to buy a product
Factors affecting a purchase decision
Factors that affect a consumer making a purchase decision are (1) personal, (2) psychological,
(3) social, and (4) cultural
Personal factors include : age, stages in family life cycle such as being young and single, young
and married, adult with children, old and retired children having left home; occupation, personal
income and life style
Psychological factors include motivation of the consumer and the perceptions of the consumer.
Perception is the process by which an individual selects, organizes, and interprets inputs to create
a meaning picture about the world. This contributes to have selective exposure, selective
distortion and selective retention of information, say, about a product when advertised.
Psychological factors also include learning, beliefs, and attitudes. Learning is change’s in
individual’s behavior arising from experience. Beliefs are descriptive thoughts a person holds
about something. Attitudes are enduring favorable or unfavorable evaluations, emotional feelings
and action tendencies.
Social class factors are relatively homogenous enduring divisions in a society. Social classes are
hierarchically ordered with members sharing similar values, interests and behavior. For example,
in America, the social class consists of upper class, middle class, working class and lower class.
Groups influence also consumer’s purchase decisions, for example, if a consumer belongs to a
sport club or a book reading club. There is a family influence, such as the domination of a
husband or a wife or being equal or the influence of children.
Cultural factors affect the consumer’s purchase decision making. Culture is the accumulated
values, knowledge, beliefs, customs, objectives and concepts that a society uses to cope with its
environment. Within culture, say, a national culture, there can be sub-cultures such as African –
American culture in America.
Business market
Organizational buying behavior
Organizational buyers buy goods and services for production, for their own use or resale.
Examples of organizational buyers: Government agencies, manufacturers, and wholesalers.
Characteristics
In the organizational buying
1. demand is organizational
2. volume is larger
3. customers are few
4. location is concentrated, not dispersed like consumers
5. distribution of the product is more direct
6. the nature of buying is more professional
7. Buying is influenced by multiple actors. There are initiators of the buying; there are gate
keepers who control the flow of information; there are deciders who formal and informal
power to select or approve; there are who have formal authority to buy who are buyers of
a product or services; there are the final users of the product or services.
8. negotiations are more complex
9. promotion is through personal selling
Characteristics of organizational buying
1. market characteristics : few customer typical exist and purchase order are large
2. product and service characteristics : products or services are technical in nature; they are
purchased on the basis of technical specifications; there is a heavy emphasis on delivery
time, technical assistance, and financing assistance
3. buying process characteristics : there exist technically qualified and professional buyers;
it is a requirement to follow established purchasing policies and procedures; buying
objectives are spelled out clearly; there are multiple buying influences – multiple parties
participate in decision-making ; negotiations between the buyer and seller is common;
reciprocal arrangements exist
4. marketing mix characteristics : direct sell to the buyer is the rule; promotion , including,
advertising, is technical in nature; often price is negotiable and often affected by trade
and quantity discounts
Organizational buying criteria
Organizational buying criteria include:
1. ability to meet the buying specifications
2. price
3. ability to meet delivery schedule
4. warrants and claim policies
5. past performance , particularly in previous contract if any
6. production facilities and capacity
Organizational buying process
1. problem recognition : this includes identifying potential applications or use of the product
or services; making a buy-make decisions on a product
2. information search : identifying suppliers; renegotiating on price, quality and delivery

time; appraisal of the design , quality and performance a product
3. alternative evaluation: using criteria to select suppliers; sending a quotation or bid request
4. purchase decision : selecting suppliers; may be further negotiation concerning price,

delivery time and performance of a product
5. post purchase : evaluating suppliers and the product
Review questions
1. discuss the organizational buying behavior

2. identify the steps in consumer’s purchase decision process
3. compare and contrast the consumer and organizational buying behavior
Further Reading
Chapter 6 and Chapter 7
Chapter 7
CHAPTER THREE
Week three
Learning objectives
1. understand the marketing research process
2. explain sources of secondary and primary data
3. know the methods of data collection
4. the limitations of secondary and primary collection methods
MARKETING RRSERACH PROCESS
Marketing research is gathering information about customers and competitors and then analyzing
and reporting the findings.
There are steps in the marketing research process, which should be understood as it is an overall
approach:
1. defining and locating the problem
2. clarify research objectives
3. assess the decision factors, developing resrch question or the hypotheses
4. research design
5. data collection
6. data analysis
7. reporting results, findings
8. recommendations
Let us look at some of these.
1. Defining and locating the problem
Defining and locating the problem needs to probe beneath the superficial symptoms.
2. Clarify research objectives
Research objective specifies what information is needed to solve the problem.
3. Assess the decision factors
Assessing different sets of variables, alternatives and uncertainties assists to combine to give the
outcome of a decision. With the alternatives, the decision maker has control, and with
uncertainties, since these are uncontrollable factors, the decision maker has no control over
them.
Developing research question/hypothesis – hypothesis is an informed guess or assumption about

a certain problem or a set of circumstances. It can be developed from the lesson of previous
research and expected research findings.
4. Data collection
This is step involves collecting the relevant information that aims at addressing the problem
solving.
Methods
There are two methods of data collection.
1. Primary data collection that involves primary data collection
2. Secondary data collection that involves secondary data collection Secondary data collection
secondary data can be collected from internal database data available in the firm. The data
could be related to accounting data, government data, magazines, survey of buying power,
syndicated data services or data related to competitors from official reports. In sum the sources
of secondary data include
1. internal , such as budgets, sales figures, profit and loss statement, all research reports
2. external , such as government reports, census of trade, regular publications; other reports
and research findings
The advantages the secondary data collection method
1. Inexpensive,
2. quick to obtain
3. multiple sources available
4. assist to obtain information that cannot be obtained through primary research
5. independent therefore credible
Disadvantages are
1. maybe incomplete
2. Dated, obsolete
3. Methodology maybe unknown
4. All findings may not be public
5. reliability may be unproven
Primary data collection

This is the original data or information collected to for the purpose of investigation at hand. It is
used when the secondary data collection provides insufficient information for a marketing
decision to be made.
Advantages of primary data collection
1. It fits the objectives of the research

2. information is current
3. methodology is controlled and known
4. Available to firm and secret from competitors
5. no conflicting data from different sources
6. reliability can be determined
7. the only way to fill a gap
It also has disadvantages:
1. Time consuming
2. Costly
3. Some information cannot be collected
5. Research design
Research design is the frame work for a study that guides the collection and analysis of data, it
includes: the population of the study, the sample size, the unit of analysis, sampling procedures,
sampling instruments and data analysis methods. It asks and answers for, for example, who
collects the data; what should be collected; what technique of data collection should be used.
Collecting data
Sampling techniques or procedures
Sampling assists to select representative units from a total population. A population is all
elements, units or individuals that are of interest to researchers for a specific study.
Sampling procedures are used in studying the likelihood of events based on assumptions about
the future. The following are some of the sampling procedures:
1. Random sampling, equal chance for each member of the population

2. Stratified sampling, population divided into groups based on a common characteristic,
random sample each group
3. Area sampling, as above using areas
4. Quota sampling, judgmental, sampling error cannot be measured statistically, mainly
used in exploratory studies to develop a hypothesis
Data collection instruments: survey methods

To collect data, various methods can be used that can be structure questionnaires, semi-
structured questionnaires or unstructured questionnaires. The following are some of the methods
to collect data”
1. Mail: this needs incentive to return the questionnaire Mail. Must include a cover letter to
explain survey
2. Telephone: this has speed, immediate reaction can be negative
3. Personal interviews: it has flexibility, increased information, non-response can be
explored. Most favored method among those surveyed
4. Email
5. Internet : this involves real – time interactions online
Questionnaire construction
Questionnaires are designed to elicit information that meets the studies requirements. Questions
should be clear, easy to understand, directed towards meeting an objective and unbiased.
The basic types of questions are:
1. Open ended
2. Dichotomous , such as Yes/No
3. Multiple choice
4. Scaled
Data collection instruments: observation methods

This aids to record overt behavior, note physical conditions and events. Observation avoids the
central problem of survey methods, motivating respondents to state their true feelings or
opinions. If this is the only method, then there is no data indicating the causal relationships.

1. What is marketing research process
2. Why firms need marketing research
3. Explain the secondary and primary data collection methods
4. What are the advantages and disadvantages of using the secondary data source
Further Reading
Chapter 4
Chapter 4
CHAPTER FOUR
Week four
Learning objectives
1. Describe marketing planning
2. Distinguish corporate strategy and marketing planning
3. Explain what a marketing plan is and what the main components of marketing plan
4. Understand and discuss the marketing planning process
MARKETING PLANNING
Let us deal first briefly with a concept of market and then to try having a framework that have
components of marketing planning.
Market is an aggregate of people who, as individuals or organizations, have needs for products
in a product class and who have the ability, willingness and authority to purchase such products.
Framework for marketing planning
In his book the marketing plan: how to prepare and implement it, William M, Luther, proposed
the following seven components for marketing planning:
1. analyze market economics, competition, the firm itself, customers: this boils down
approximately to analysis of external and internal environment , both the controllable
and uncontrollable forces by the firm
2. strategic and/or business plan : selecting market with good profit potential and isolating
critical business strengths needed to become competitive
3. operational plan : developing business strengths that can deliver a competitive business,
products , or services
4. positioning statement: determining how a firm wants business strengths to be perceived

perspective customers
5. marketing plan : translating the positioning statement recognizable and preferred brands
6. action plans: detailed execution of strategies

7. feedback : using controls and marketing research to monitor existing and future
conditions
The framework can aid in considering critical issues when developing marketing strategy.
Strategic marketing planning
A strategic marketing plan is an outline of the methods and resources required to achieve
organizational goals within a specific target market. It describes the direction an organization
will pursue within its chosen environment and guides the allocation of resources and effort.
Strategic planning requires a general marketing orientation rather than a narrow functional
orientation. All functional areas must include marketing and must be coordinated to reach
organizational goals. It is a hierarchal process, from company wide to marketing specific.
Strategic business unit (SBU) specific

A firm can be broken down into several strategic business units. Each SBU is a division, product
line, or other profit center within the parent company. An SBU has its own strategic plan and can
be considered a separate business entity competing with other SBU's for corporate resources.
Importance of strategic plan
A strategic plan:
1. Gives direction and better enables the company to understand market

2. Makes sure that each division has clear integrated goals
3. Through it , different functional areas are encouraged to coordinate
4. Assesses strength, weakness, opportunity and threat
5. Assesses alternative actions
6. It is a basis for allocating company resources
7. It is a procedure to assess company performance
Strategic planning process
The strategic planning process may include the following, although this differs from one
organization to another:
 Develop a Strength, Weakness, Opportunity and Threat (SWOT) analysis

 Develop mission statement that evolves from the SWOT analysis
 Develop corporate objectives that are consistent with the organization's mission
statement.
 Develop corporate strategy to achieve the organization's objectives
 Marketing (and other functional objectives) must be designed to achieve the corporate
objectives
 Marketing strategy, designed to achieve the marketing objectives.
The strategic market planning process is based on the establishment of organizational goals and
it must stay within the broader limits of the organizations mission that is developed taking into
consideration the environmental opportunities and threats and the companies resources and
distinct competencies.
A firm can then assess its opportunities and develop a corporate strategy. Marketing objectives
must be designed so that they can be accomplished through efficient use of the firm’s resources.
Corporate strategy is concerned with issues such as diversification, competition, differentiation,

interrelationships between business units and environmental issues. It attempts to match the
resources of the organization with the opportunities and risks of the environment (SWOT).
Corporate strategy is also concerned with defining the scope and roles of the SBU's of the firm
so that they are coordinated to reach the ends desired.
Corporate Strategy’s issues include: (1) scope of business: what business the firm is in? (2)
Resource deployment----How the firm is going to use its resources? (3) Competitive advantage:
what are the firm’s competitive advantages? (4) Coordination of production, marketing,
personnel etc., and (5) coordination process
Tools for strategic marketing planning
The following are some of the many tools that are used in developing corporate strategy; they are
supplements not substitutes for management's own judgment. Use of ( 1) BCG product portfolio
management that assists to investigates if the product in the portfolio is star, cash cow, problem
child /question marks or dog. The investigations aim at developing the appropriate strategy; (2)
use of SWOT analysis; and, (3) product life cycle.
If there are many SBU under a firm, a separate strategy is needed for each SBU, which includes:
Intense Growth involves market penetration/development, product development in related

markets.
Market penetration refers to more products to the same market; market development refers to
same product to new markets, and product development refers to new products to same market.
Diversified Growth involves new products new markets Horizontal (unrelated products to current
markets)/Concentric
Integrated growth: this can be forward/backward/horizontal integration which may involve

production, marketing, and Personnel and etc.
Marketing Planning
Marketing plans vary by (1) duration, (2) scope, and (3) method of development, whether it is
bottom up or top down.
Objective of marketing planning is to create a marketing plan. A marketing plan is a plan for
each marketing strategy developed.
Marketing strategy encompasses selecting and analyzing the target market and creating and
maintaining an appropriate marketing mix that satisfies the target market and company. A
Marketing strategy articulates a plan for the best use of the organizations resources and tactics to
meet its objectives. Marketing strategy ensures not to pursue a project that is outside the firm’s
objectives or that stretches the firm’s resources.
What marketing plan includes
Marketing plan includes:
1. Executive summary
2. Situation analysis
3. Environmental analysis
4. Company resources
5. Marketing objectives
6. Marketing strategies that include target market, and a marketing mix ( product, price,
promotion and place/distribution channels)
7. Financial projections
8. Controls and evaluations. Marketing control process consists of establishing performance
standards, evaluating the actual performance by comparing it with the actual standards,
Chapter review
1. Describe the steps of marketing planning
2. List the main components of a marketing plan
3. Distinguish between corporate strategy, business unit strategy and marketing planning
Further Reading
Chapter 2
Chapter 3
CHAPTER FIVE
Week five
Learning objectives
1. Describe the concept market segmentation
2. Understand the criteria of market segmenting
3. Use the major variables of segmentation for analysis
4. Discuss concentrated marketing strategy, multi-level segmentation strategy
MARKET SEGMENTATION
Developing a target market strategy has three phases:
1. Analyzing consumer demand

2. Targeting the market:
 undifferentiated
 concentrated
 multi-segmented
3. Developing the marketing strategy
Selecting target market (analyzing demand)
Selecting target market refers to the need to aggregate consumers with similar needs by asking
such questions as , do all potential customers have similar needs/desires or are there clusters?
Types of demand patterns are:
Homogeneous Demand-uniform, everyone demands the product for the same reason(s).
Clustered Demand-consumer demand classified in two or more identifiable clusters, for

examples, cheap , sporty and spacious car
Diffused Demand-Product differentiation more costly and more difficult to communicate, for
example, cosmetic market, need to offer hundreds of shades of lipstick
Undifferentiated approach (total market approach)

This is a single marketing mix for the entire market. In this case, all consumers have similar
needs for a specific kind of product. Homogeneous market or demand is so diffused it is not
worthwhile to differentiate, try to make demand more homogeneous. The single marketing mix
consists of 1 pricing strategy, 1 promotional program aimed at everybody, 1 type of product with
little/no variation and 1 distribution system aimed at entire market. The elements of the
marketing mix do not change for different consumers; all elements are developed for all
consumers. Examples include staple foods such as sugar and salt and farm produce. The
undifferentiated approach was popular when large scale production began. Not so popular now
due to competition, improved marketing research capabilities, and total production and
marketing costs can be reduced by segmentation.
Market segmentation approach
Individuals with diverse product needs have heterogeneous needs. Market segmentation is the
process of dividing a total market into market groups consisting of people who have relatively
similar product needs, there are clusters of needs.
The purpose is to design a marketing mix that more precisely matches the needs of individuals in
a selected market segment.
A market segment consists of individuals, groups or organizations with one or more

characteristics that cause them to have relatively similar product needs.
There are two market segmentation strategies: (1) concentration strategy, and ( 2) multi- segment
strategy.
Concentration Strategy
This is a single market segment with one marketing mix.
Its advantages are
1. It allows a firm to specialize

2. can focus all energies on satisfying one group's needs
3. A firm with limited resources can compete with larger organizations.
Its disadvantage is it,
1. Puts all eggs in one basket

2. Small shift in the population or consumer tastes can greatly effect the firm
3. May have trouble expanding into new markets (especially up-market
The objective is not to maximize sales, it is efficiency, attracting a large portion of one section
while controlling costs.
Multi-segment strategy
Two or more segments are sought with a marketing mix for each segment, different marketing
plan for each segment. This approach combines the best attributes of undifferentiated marketing
and concentrated marketing.
Its advantages are
1. Shift excess production capacity

2. Can achieve same market coverage as with mass marketing.
3. Price differentials among different brands can be maintained
4. Consumers in each segment may be willing to pay a premium for the tailor-made product
5. Less risk, not relying on one market
But, it has disadvantages:
1. Demands a greater number of production processes

2. Costs and resources and increased marketing costs through selling through different
channels and promoting more brands, using different packaging etc.
3. Must be careful to maintain the product distinctiveness in each consumer group and
guard its overall image
Criteria for segmentation
For segmentation to occur:
1. Segments must have enough profit potential to justify developing and maintaining a
marketing mix
2. Consumer must have heterogeneous (different) needs for the product
3. Segmented consumer needs must be homogeneous or unique
4. A firm must able to reach a segment with a marketing mix
5. A segment must be stable relatively , not that shrinks or disappears before recouping
investment and making profit
6. Must be able to measure characteristics & needs of consumers to establish groups
Variables to segment markets
There are variables that assist to distinguish one marketing segments from other segments.
1. Segmentation variables should be related to consumer needs for, and uses of or behavior
toward the product
2. Segmentation variable must be measurable. Selecting inappropriate variable limits the
chances of success.
Variables for consumer market

Variables for segmenting consumer markets include:
Demographic - age, sex, fertility rates, migration patterns, and mortality rates, ethnicity, income,
Geographic -Climate, terrain, natural resources, population density, sub-cultural values, different
population growths in different areas, city size, market density , the number f potential customers
within a unit of land
Psychographic - personality characteristics, motives and lifestyles
Behavioral Variables - Regular users-potential users-non users Heavy/moderate/light users
It is more expensive (it is claimed to be five times) to attract a new customer, than to satisfy the
current customers
Benefits segmentation- it focuses on benefits rather than on features of the product.
Single variable and multi-variable segmentation
Single variable segmentation is achieved by using only one variable to segment
Multi-variable segmentation is achieved by more than one characteristic to divide market. It

provides more information about segment. It is able to satisfy customers more precisely. More
variables create more segments reducing the sales potential in each segment.
Review questions
1. What is the difference between single variable and multi-variable segmentation

2. What it the importance of market segmentation
3. Discuss the major variables of market segmentation
4. What is a target marketing
Further Reading
Chapter 8
Chapter 13
CHAPTER SIX
Week six
Learning objectives
1. Describe positioning strategy
2. Understand the link and difference among segmentation, targeting and positioning
3. Explain product positioning process
4. Identify the primary elements of positioning
5. Have knowledge of positioning strategy
POSTIONING STRATEGY
Positioning refers to a place a product offering occupies in consumers' minds on important

attributes, relative to competing offerings.
Positioning is a perception that happens in the minds of the target market. Positioning is a
perceptual location.
The concept of positioning is often used together with the terms segmentation and targeting. The
three elements work together closely when determining which way to offer a product or a service
.They relate to each other as follows:
Segmentation considers variables for segmenting market; segmentation looks at profile of

emerging segments; and validates the emerging segments
Positioning understands customer perceptions; it positions products in the mind of the customers.
It is used as a competitive strategy
Targeting decides on targeting strategy; it decides which and how many segments should be
targeted.
Product positioning process
Product positioning process involves defining the market in which the relevant buyers are;
identifying the attributes of the product; collecting information from a sample of customers about
their perceptions of each product on the relevant attributes; determining each product's share in
mind; determining the target market’s preferred combination of attributes.
The primary elements of positioning
The primary elements of positioning include:
1. Pricing : is the product seen as a luxury item, somewhere in the middle, or cheap
2. Quality: are controls are in place to assure consistency of a product?
3. Service: Does a firm offer the added value of customer service and support? Is a form’s
product customized and personalized?
4. Distribution: How do customers obtain a firm’s product? The channel or distribution is
part of positioning.
5. Packaging: Packaging makes a strong statement. Does packaging deliver the message a
firm intends
One of the key elements of positioning strategy is a firm’s value proposition. There are three
essential types of value: operational excellence, product leadership and customer intimacy.
Positioning strategy and new product development
1. When developing a new product, a firm should identify all the features that are offered
by all its major competitors
2. Identify important features and benefits used in making purchase decisions
3. Determine the overall ranking of features by importance and relate the importance of
each feature to its uniqueness.
Product strategy
Product strategy refers to a strategy in which a firm maintains an even combination of new,
growing and mature products.
Product Strategy is the important function of a company. It takes in account the capabilities
existing in the company or of time to acquire them by hiring or by mergers. It evaluates the
customers’ expectations at the time of delivery. It estimates the competition, including new
entrants, probable moves to enter the same market.
Developing product strategy review market and considers corporate strategy.
Developing product strategy needs making clear:
1. The target segment market to serve

2. The benefits of a product to the segment market
3. How to position a product in the market
4. The unique or differential advantage of a product as compared to the competitor’s
A clear understanding of the concept of the three levels of a product assists to develop product
strategy. The three levels of a product are (1) core benefits of a product, (2) the actual product
that includes features, packaging and branding to offer a differential advantages, and ( 3)
augmented product offers a peace of mind to a customer with , for examples, after sale services,
warranties, and delivery.
Generally, for product strategy, the product decisions involving the following are critical for the
success of the strategy:
1. Product design
2. Product quality
3. Product features
4. Branding
New product development process
The new product development process has the following stages:
1. Idea generation: ideas are gathered various tools , including SWOT analysis
2. Idea screening : this involves eliminating unsound ideas
3. Concept development and testing : it involves determining marketing and engineering
details
4. Business analysis: it involves analysis of selling price, sales volumes, market size and
profitability
5. Market testing : it involves testing the product and making adjustments
6. New product development : this is the technical implementation
7. Commercialization of the new product
Buyer’s new product adoption process
There are five steps in the new product adoption process:
1. Awareness: buyers become aware of the product

2. Interest: buyers seek information and is receptive to learning about product
3. Evaluation: buyers consider product benefits and determines whether to try it
4. Trial: buyers examine, test or try the product to determine usefulness relative to needs
5. Adoption: buyers purchase the product and can be expected to use it when the need for
the general type of product arises
New product diffusion process
Diffusion process is the manner in which different members of the target market often accept and
purchase a product. The new product diffusion process indicates the different time that various
consumers need to adopt a new product. This has an implication to the new product strategy.
Based on the timing of going through adoption process, adopters of new product are classified as
1. Innovators: the first customer to buy and adopt a product
2. Early Adopters: they adopt new products but use discretion
3. Early Majority: they are the first part of the majority who buy a product
4. Late Majority: they are the second part of the majority who buy a product
5. Laggards: they are suspicious of change; they do not adopt until a product has reached
maturity
1. What is positioning strategy
2. Explain the elements of positioning strategy
3. How do you develop a positioning strategy
Further Reading
Chapter 1 0 and Chapter 11
Chapter 11 and Chapter 12
CHAPTER SEVEN
Week seven
Learning objectives
1. Describe the concept distribution channel
2. Clearly explain the short and long distribution channels
3. Discuss the characteristics of short and long channels
4. Understand the importance of distribution channel
5. Recognize the factors affecting distribution strategy
DISTRIBUTION STRATEGY
A distribution channel is a set of interdependent organizations that help make a product available
for use or consumption by the consumer or business user. Channel intermediaries are firms or
individuals such as wholesalers, agents, brokers, or retailers who help move a product from the
producer to the consumer or business user. The firm’s sales force and communications decisions
depend on how much persuasion, training, motivation, and support its channel partners need.
Whether a company develops or acquires certain new products may depend on how well those
products fit the capabilities of its channel members.
Functions of distribution channels
1. Breaking bulk , that is, breaking the bulk of quantity of goods by making going through
wholesalers and retailers
2. Providing a variety of products in one location, that is creating assortments
3. Facilitating functions , that is , the function of purchasing goods
Types of distribution channels
Distribution channel can be described as short or long. It is short, for example, if the producer
directly sells to the consumer. It is long, if the producer goes through agent, wholesalers and
retailers to reach the consumer.
Distribution channels, examples, for consumer goods:
1. Producer …consumer
2. Producer…retailer…consumer
3. Producer…wholesaler…retailer…consumer
Distribution channels, examples, for business goods:
1. Producer…business user
2. Producer…agent or broker…business user
3. Producer…wholesaler…business user
4. Producer…agent or broker…wholesaler…business user
Example of distribution channel for services:
1. Service provider…consumer or business user
2. Service provider…agent or broker…consumer or business user
Characteristics of short channels
1. Often they are business users
2. High technical knowledge required
3. Geographically concentrated
4. Involves large orders
5. Products are perishable, complex and expensive
6. Producers has resources to perform the function of channels
7. Channel control is important
Characteristics of long channels
1. The users are consumers

2. Geographically dispersed
3. Little technical knowledge required
4. Small orders
5. Products are durable, standardized and inexpensive
6. Producer lacks resources to perform the channels’ function
7. Channel control not important
Factors influencing distribution channel strategy
There are factors that influence distribution strategy, including
1. Characteristics of the channel
2. Market , such as , the user of the product, and geography
3. Product, such as, being complex, perishable or standardized
4. Producer, for example , having resources or lacking resources
5. Competitors
Distribution channel strategy
Distribution channel strategy considers
First, marketing channel selection
Second, distribution intensity for this assist to determine to choose the intensive distribution
strategy or selective distribution strategy or exclusive distribution channel strategy
Third, channel conflict
Fourth, physical distribution

Review questions
1. Identify factors considered in distribution channel strategy
2. Discuss four factors that affect distribution channel strategy
3. Give three reasons for importance of having intermediaries
4. Differentiate the characteristics of short and long distribution channel
Further Reading
Chapter 16
Chapter 17
PART TWO
CHAPTER EIGHT
Week eight
Learning objectives
1. Understand the three approach to pricing strategy : cost-based, competition-based and

valued-based pricing strategy
2. Explain penetration pricing strategy and skimming price strategy
3. Understand the importance of pricing
4. Discuss factors influencing pricing decisions
PRICING STRATEGY
Price is the value placed on what is exchanged.
Importance of price from the perspective of a firm
1. Often the only element the marketer can change quickly in response to demand shifts
2. Relates directly to total revenue and profits
3. Can be used symbolically to emphasize quality or bargain
4. Due to deflationary pressures, consumers very price conscious
Factors affecting pricing decisions
1. Organizational and marketing objectives: price is expected to be consistent with

objectives of the organization
2. Types of pricing objectives: the pricing objectives can be profit, market share, cash flow,
keeping the status quo, or survival and therefore is used to serve these objectives
3. Buyers perceptions: this requires understanding the importance of price to the target
market
4. Costs: this refers to taking into account all costs associated with product
5. Other marketing mix variables: this is related to considering the type of distribution
channels to be used, type of promotion and the quality status
6. Channel member expectations, for example, to receive a profit for services
Determining price level: pricing strategy

Determining the pricing strategy is selecting an approximate price level.
The pricing strategy can be developed by considering the following approaches:
First, the demand for the product (value-based or demand-based pricing)
Second, the cost associated with product (cost-based pricing) ; mark-up pricing and cost-plus
pricing is used
Third, competitors’ price (competition-based pricing)
Pricing strategy can take any of these forms
Skimming pricing: to charge highest price possible that buyer who most desires the product will
pay
Penetration pricing: reducing price compared to competitors to penetrate into markets to increase
sales
psychological pricing: this is odd-even pricing, end prices with certain number, such as 59, 299
Price bundling: to offer a product, options, and customer service for one total price
Prestige pricing: price is used as a measure of quality
Discount pricing: this is where flexible pricing strategy is used depending on trade, quantity
purchased, cash, seasonal purchase, and allowances.
Review questions
1. Distinguish these pricing strategies : skimming and penetration

2. Explain the factors that affect pricing strategy
3. Discuss briefly three approaches to pricing strategy
4. Explain the importance of pricing strategy
Further Reading
Chapter 14
Chapter 16
CHAPTER NINE
Week nine
Learning objectives
1. Understand the objectives of promotion
2. Identify clearly the four elements of promotion mix
3. Know the steps in developing promotion strategy
4. Discuss advertising strategy
PROMTION STRATEGY
Promotion is the communication link between sellers and buyers for the purpose of influencing,
informing, or persuading a potential buyer's purchasing decision.
Objectives of promotion: the objectives of promotion are to present information to consumers

and other stakeholders; to stimulate demand for the product; to differentiate a product from the
competitors’.
Elements of promotion mix
There are four tools of promotion which also known as elements of promotion mix.
There are four elements of promotion mix:
1. Personal selling
2. Advertising
3. Sales promotion
4. Publicity/public relations
Developing promotion strategy
The following steps are critical to develop promotion strategy:
1. Establish clearly the identity of a firm that promotes a product

2. Decide on a product with a theme
3. Decide on the target buyer to attract – identify target audience
4. Establish the objectives of promotion strategy: the objectives should identify who to
reach; state the change the firm wants to accomplish through promotion; state how much
time it will take to accomplish the objectives and what the firm wants people to do
because of the firm’s promotion
5. Get the promotion across – develop the content of the promotion strategy
6. Develop how to say it – develop message structure
7. Decide how to present it- develop message format
8. Take message to the audience – choose the delivery system
9. Evaluate the implementation of the promotion strategy
Advertising
Advertising is a paid form of non personal communication about an organization or its products
that is transmitted to a target audience through a medium.
Advertisement is important for standardized products; products aimed at large markets; products
that have easily communicated features; products low in price; and products sold through
independent channel members and/or are new products.
Use of advertising is for promoting products or organizations; stimulating primary and selective
demand; offsetting competitor advertising; making salespersons more effective; increasing use of
product; reminding and reinforcing customers; and, reducing sales fluctuations.
Designing advertising strategy
To design advertising strategy
1. Identify and analyze the advertising Target : the people for which the advertisement is
aimed at
2. Defining objectives of the advertising : make clear what a firm seeks to accomplish from
the advertising
3. Determine the advertising appropriation : this is planning the budget for advertising for
the specific period
4. Creating an advertising message that clarifies the product’s feature, use and benefits.
Advertising makes the target people to go through the following stages :
1. Awareness
2. Interest
3. Desire
4. Action
5. Developing a media plan: this is setting forth the media vehicles, such TV, Radio,
magazines, newspapers, websites, outdoor, direct mail,
Factors affecting media choice
The factors that affect media choice are location, demographics, content of message to
present, cost of media, reach, frequency, efficiency and clutter.
6. Executing the strategy

7. Evaluating the effectiveness of the advertising strategy
Review questions
1. Describe promotion
2. Identify elements of promotion mix
3. Explain how to develop promotion strategy
4. Explain the designing of advertising strategy
Further Reading
Chapter 18
Chapter 19
CHAPTER TEN
Week ten
Learning objectives
1. Clearly understand the concept of personal selling
2. Explain the personal selling process
3. Discuss the sales management process
4. Understand the basis of sales plan formulation
5. Have knowledge about the public relations strategy
PERSONAL SELLING
Personal selling is a persuasive communication between a representative of a firm and one or

more potential buyer for a sale. It is a face to face communication with an aim to sell a product.
The advantages of personal selling are freedom to adjust a message to satisfy customers
informational needs, dynamic; precision, enabling marketers to focus on most promising leads;
give more information; two way flow of information, interactivity; Discover the strengths and
weaknesses of new products and pass this information on to the marketing department. Its minus
is high cost.
Forms of personal selling (types of sales persons): These are the types of sales persons: order
taker seeks to have repeat sales; order getter identifies potential customers who will buy a
product;
Personal selling process
1. Prospecting - search for and quality a customer

2. Pre-approach – gather information how to approach the prospect
3. Approach – get prospect’s attention; stimulate interests
4. Presentation – begin converting a prospect into a customer
5. Handling objections – acknowledge and convert the objection
6. Closing – obtain a purchase commitment
7. Follow-up – ensure the customer is satisfied
The sales management process

1. Sales plan formulation – setting the objectives; organizing sales force
2. Sales plan implementation – sales force recruitment, selection, training , motivation and
compensation
3. Evaluation and control of the sales force , including quantitative and behavioral
assessment
Sales plan formulation
1. Setting objectives – this is specifying what to achieve

2. Organizing the sales force – taking into consideration various organizing structure :
geographical structure, customer structure, product structure,
PUBLIC RELATIONS STRATEGY
Public relations refer to the practice of conveying messages to the public through the media on
behalf of a client, with the intention of changing the public's actions by influencing their
opinions. To achieve its objectives, public relations make use of methods that include the press
conference, press release, event sponsorships, publicity event, letter to editor, media tours,
articles
Steps to develop public relations strategy, to
1. Define objectives for publicity and media plan

2. Define the specific, measurable, actionable, realistic and time-bound objectives
3. Determine the target audience
4. Develop a schedule for public relations campaign
5. Develop plan of “attack”
6. Put to measure to track the results of the campaign
Review questions
1. What is personal selling

2. Give reasons for using personal selling
3. Explain briefly the personal selling process
Further Reading
Chapter 18
Chapter 20
CHAPTER ELEVEN
Week eleven
Learning objectives
1. Link organizational and marketing objectives as well as marketing plan to marketing

control and evaluation
2. Describe the concept marketing control
3. Know what involves in the marketing control process
MARKETING MANAGEMENT CONTROL AND EVALUATION
There is no need to have marketing planning and its implementation, if there is no marketing
control and evaluation. Without control and evaluation, it is difficult to tell whether the
organizational and marketing objectives are achieved.
Marketing control is the process of monitoring the proposed plans as they proceed and adjusting
where necessary. Control tells if the right strategy was used, the right marketing mix adhered to
and the objectives are achieved.
The marketing control process involves
1. Marketing objectives
2. Performance standards/ marketing plan that is based on organizational and marketing
objectives
3. Compares results with the standards, marketing plan
4. Corrections and alternations
Approaches to marketing control and evaluation include market share analysis, sales analysis,
feedback from customer satisfaction survey, marketing information system, marketing research,
performance of promotional activities and market reach acceptance by pricing strategy.
Types of marketing control are
1. Annual plan control – whether planned plan is achieved

2. Profitability control – if the firm is making or losing money
3. Efficiency control such as advertising, sales promotion efficiency , distribution efficiency or
operational efficiency
4. Strategic control such as the marketing effectiveness , marketing audit
Review questions
1. Identify some of the approaches used in marketing control and evaluation

2. What is a marketing control
3. Explain the link between marketing planning and marketing control
4. Explain the types of marketing control
Further Reading
Chapter 22
Chapter 21
Sample exam Questions (1)
MOUNT KENYA UNIVERSITY
Exam Year 2010
Exam Duration: 2 Hours
Instruction: Answer Question 1 and any other three questions.
Question 1
a) Discuss the marketing planning process ( 10 marks )
b) Briefly explain the types of marketing controls ( 9 Marks )
c) Discuss positioning strategy and its link to segmentation and target marketing ( 6 marks )
d) Explain how marketing environment could influence the marketing decision making process ( 5
marks )
Question 2
a) Discuss four major variables of market segmentation ( 10 marks)
b) Explain reasons why market segmentation is needed ( 10 marks)
Question 3
a) What is marketing research ( 2 marks )
b) Explain the marketing research process ( 8 marks )

c) Explain two methods of the marketing data collection ( 10 marks )
Question 4
a) Explain the forms of distribution channels ( 8 marks )
b) Discuss the characteristics of organizational buying ( 6 marks )
c) Explain how consumer buying differs from organizational buying ( 6 marks )
Question 5
a) Explain the characteristics of services marketing (12 marks )
b) Define the concept ‘service’ ( 3 marks )
c) Identify the marketing mix of services ( 5 marks)

Sample exam Questions (2)
MOUNT KENYA UNIVERSITY
Exam Year 2010
Exam Duration: 2 Hours
Instruction: Answer Question 1 and any other three questions.
Question 1
a) Define the concept ‘personal selling’ ( 2 marks)
b) Explain the differences between sales management process and personal selling process ( 10)
marks )
c) Briefly explain the external and internal marketing environment ( 8 marks )
d) Differentiate product strategy and pricing strategy (5 marks )
e) Explain the types of marketing control ( 5 marks )
Question 2
a) Distinguish between advertising and promotion ( 3 marks )
b) Discuss four elements of promotion mix ( 17 marks )
Question 3
a) Explain the relationship between organizational objectives and marketing planning ( 10 marks )
b) Explain the marketing planning process ( 10 marks

Question 4
a) Explain promotion strategy ( 8 marks )
b) Discuss product strategy ( 12 marks )
Question 5
a) Explain three approaches to pricing strategy ( 9 marks )
b) Distinguish between skimming pricing strategy and penetration pricing strategy ( 4 marks )
c) Briefly explain the new product adoption stages by a consumer ( 7 marks )

BBM3205 Marketing Management

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DEPARTMENT OF MANAGEMENT

UNIT TITLE: MARKETING MANAGEMENT

UNIT CODE: BBM3205

 Apply core concepts of marketing management practice

 Understanding marketing management; core concepts of marketing, marketing Management

Recommended Text Books:

 Saeed Ghose, (1990), Marketing Planning And Control, Anmol Publications

BBM3205: Marketing Management

- Marketing management definition, exchanges, marketing concepts/philosophies: production,

Recommended Text Books:

Text Books for further Reading:

Saeed Ghose, (1990), Marketing Planning And Control, Anmol Publications

CHAPTER ONE PAGE

Marketing management concepts and marketing environment ……………………….6

Consumer and organizational buying behavior……………………………………….12

Marketing Research process…………………………………………………………..16

Marketing Planning …………………………………………………………………...22

Personal selling and Public Relations ………………………………………………...43

Marketing management control and evaluation ………………………………………44

PART ONE: WEEK ONE – WEEK SEVEN

(Note: the CAT covers only part one)

By the end of this chapter the learner should be able to:

1. Define marketing management

2. Understand core marketing management concepts

3. Explain the marketing environment

4. Analyze competitive environment using Porter’s model and benchmarking as tools

MARKETING MANAGEMENT CONCEPTS

For an exchange to occur, there

 Must have something of value to exchange

Definition of marketing management

Marketing concept/ philosophies

Dominant era: 1920's to mid 1930's WWII to early 1950's

Dominant era: 1930's to WWII 1950's to present.

Competitive environment analysis (micro-environment): external forces

A competitive review is important for two reasons.

Duopoly: two firms dominate the market

Monopoly: One marketer in the marketplace

Oligopoly: A few marketers (perhaps 3 or 4) dominate the market place

Monopolistic Competition: many marketers competing in the market place

Tools of competitive analysis

1. Porter’s the competitive Five-Force Model

The following also affect the firm’s marketing strategy formulation:

1. Intermediaries such as financial institutions

2. discuss the marketing management philosophies

3. what are the conditions for exchange to occur

By the end of this chapter the learner should be able to:

1. differentiate consumer market and business market

2. discuss consumer behavior and organizational buying behavior

3. describe the steps in consumer’s behavior in purchase decision making process

4. explain the organizational purchase behavior in purchase decision making proc

CONSUMER AND ORGANIZATIONAL BUYING BEHAVOIR

Consumer buying behavior

1. Provide value and customer satisfaction

The consumer buying process

The consumer buying process involves five steps:

Types of consumer buying behavior

1. routine response or programmed behavior : this is used when buying frequently

Factors affecting a purchase decision

Organizational buying behavior

Examples of organizational buyers: Government agencies, manufacturers, and wholesalers.

In the organizational buying

3. customers are few