FACTORS FOR DEVELOPING MARKETING CONCEPTS

1. Capturing Marketing Insights

- The overall direction must focus on its vision and mission. The organizational
goals and objectives must be directed towards the creation of value to its
customers.
2. Effective Financial Management System
- This system in the procurement of quality and affordable materials for
processing of the product is avital component in effective operation of the
marketing system.
3. The Value of Human Resources
- All business activities need human resources in their operation. The employees
must be committed in the production of quality products and the delivery of
quality service
4. The production Process
- The process must conform to standards in terms of product quality. The race to
economic profitability is the production of products that shall satisfy the
customer’s wants and Needs
5. The Presence of Competitors
- The marketing of products becomes interesting with the presence of
competitors. Marketing outfit must develop strategies in capturing their target
market and develop and sustained patronage.

TRADITIONAL MARKETING
Traditional Concept Marketing is a marketing strategy a company uses to determine if it can
produce a viable product consumer want or need, whether the company can produce enough
products to fill the need and the marketing method by which the need can be filled

Several Distinct Traditional Approaches

1. Production concept
- Focuses on the internal potentials of the company and not based on the desires
and needs of the market
2. Marketing concept
 - A philosophy which states that organization must try hard to find out and satisfy
the needs and wants of consumers while ate the same time accomplishing the
organizational goals.
3. Sales concept
- Refers to the idea that people will buy more goods and services through
personal selling and advertising done aggressively to push them in the market

4. Relationship concept/marketing
- An approach that center on maintaining and improving value-added long-term
relationships with current customers, distributors, dealers, and suppliers.
5. Societal Marketing Concept
- View that organizational must satisfy the needs of consumers in a manner that
gives for society’s benefit

The Goals of Marketing and their Social Effects

1. Maximize the Consumption of Goods
- The aggressive marketing strategies and policies had increased the consumption
of goods and services. The demand of the market is tremendous. Sellers face
many challenges on what products to offer. Buyers want quality products at
reasonable price and the most convenient location
2. Maximize Consumer Satisfaction
- The market demand is varied, the customer satisfaction if the challenge of the
marketing organization. Measurement of the customer satisfaction is difficult. It
embraces careful analysis of the market demand which varies with time and the
social development of society.
3. Maximize Choice of Goods or Services
- Some marketers believe that the goal of marketing is to maximize the variety of
the product in the market and provide consumers a wide assortment of choices.
The main objective if for customers to find the goods that will satisfy their
biological needs as well their emotional and social wants.
4. Maximize the Quality of Life
- The improvement of the quality of life is the target of marketing people. New
hand phones are created to communicate with various sectors of society,
friends, and families. Easy communications access satisfies not only social needs
but also business requirements. Computers and other electronic gadgets bring
pleasures to homes and enjoyment of the comfort of living

MARKETING GOALS
 1. Focusing on the costumer wants and needs to distinguish products from
competition
2. Integrating all the organization’s activities to satisfy customer wants and
needs.
3. Achieving the organization’s long-term goal by satisfying customers wants and
needs

GOALS
Top-level broad goals to show how
the business can benefit from
channels. So, goals are the broad aims
to use to shape strategy. They will
describe how marketing will
contribute to the business in key areas
of growing sales, communicating with
audience and saving money.
OBJECTIVES
Specific SMART objectives to give
clear directions and commercial
targets. Objectives are the SMART
targets for marketing which can be
used to track performance against
target. The SMART mnemonic helps
as a test or filter which the firm can
use to assess the quality of measures

LESSON 1.1

Definition and concept of marketing principles, goals

and approaches.

Key Performance Indicators (KPI’s) are used to check that the marketing activities of a company
are on track.
Definition and Examples
1. A sales team might track NEW REVENUE
2. A customer support team might measure the AVERAGE ON-HOLD TIME for customers
3. A marketing group will look at the contribution of MARKETING GENERATED SALES LEADS
4. Human Resources will look at EMPLOYEE ENGAGEMENT
5. Other area of the business will look at the EFFICIENCY OF PROCESSES

EMAPLE OF NOTEWORTHY MARKETING GOALS:

1. Identifying the target market
 2. Increasing sales and profits
3. Increasing brand awareness
4. Increasing market share
5. Countering competitive strategies
6. Reputation
7. Increasing distribution channels

MARKETING THEORIS AND TYPES

What is TRADITIONAL MARKETING?
Traditional Marketing is an umbrella term that covers the wide array of advertising channels
we see daily. This may include print media, billboard and TV advertising. Flyer and poster
campaigns and radio broadcast advertising.

TRADITIONAL MARKETING THEORY

Ansoff’s Matrix Theory
Traditional Marketing theories include Ansoff’s Matrix, a theory that proposes/services fall into
one of four categories depending on the market and the product released. New Product- New
Market is considered as diversification

Market Penetration Strategy

Market Development
Product Development Strategy
Diversification Strategy

The Marketing Mix

Another marketing theory that is considered to be traditional is the marketing mix. Made up of
the 7 p’s. these include product, place, promotion, price, packaging and positioning. All these
components, when combined, create a solid marketing proposal.
MARKETING MIX 7 p’s

Product

Price

Place

Promotion

People

Process

Physical Environment

CONTEMPORARY MARKETING

Refers to marketing strategies that are consumer focused. Contemproary marketing strategy offers
products and services based on what the target market desires rather than what the company wants
them to have.

INBOUND MARKETER – CONTEMPORARY MARKETING

OUTBOUND MARKETER – TRADITIONAL MARKETING

The main differnce between the contemporary marketing orientation and Traditional Marketing
orientation is that while ht former if consumer focused, the latter is company focused

Here are some of type of marketing

1. Business to Business - B2B Marketing
2. Business to Consumer – B2C marketing
3. Brand Marketing
4. Cloud Marketing
5. Telemarketing
6. Guerilla Marketing
7. Push Marketing
8. Influencer Marketing
 EMERGING TYPES OF MARKETING AND THEIR APPLICATIONS
1. SEARCH ENGINE OPTIMIZATION
- Is majorly concerned with increasing a business’ visibility and rankings on search
engine results pages.
2. PAY PER CLICK ADVERTISING
- This is advertising presents on search engine result pages or web pages were the
advertiser is only charged based on the number of times someone clicks on the
ads to go to the advertiser’s targeted website.
3. EMAIL MARKERING
- Is a type of marketing based on the distribution of messages through emails.
Email marketing provides direct contact with customers and allows businesses to
create relationship with their customers. Updates, exciting news, and call to
actions can be sent directly to customers.
4. Referral Marketing
- Is a type of marketing where an individual or customer pleased with the results
gotten from a product refers the product to another person.
5. Affiliate Marketing
- Is a prominent types of internet marketing where a third party promotes a
product and earns commissions or a piece of the profit gotten from every sale
made through the referral.
6. Video Marketing
- Videos act as one of the most interactive types of online marketing and can
prove to be a great way to raise awareness about business or product
7. Inbound Marketing
- Is a very powerful contemporary marketing strategy that focuses on different
tactics to draw consumers in and convince them to buy goods. It is one the
result- oriented types of marketing that uses content to drive results

GREEN MARKETING
Refers to the process of selling products and/or services based on their environmental benefits

For green marketing to be effective, there are three things that needs to be done:
1. Being genuine
2. Educating the customers
3. Giving customers an opportunity to participate
Relationship in Marketing
Gilaninia et al (2011)
Relationship marketing involves creating, maintaining and enhancing strong relationships with
customers and other stakeholders

Social
Economic
Legal
Technical

Forbes.com
Relationship marketing is a strategy designed for customer loyalty, interaction and long term
engagement to be fostered.

Serrano
Relationship Marketing includes activities aimed at developing and managing trusting and long
term relationship with larger customers

We can distinguish five different levels of relationship

FIVE LEVELS OF RELATIONSHIP

1. BASIC
- The company salesperson sells the product but does not follow up in any way
2. REACTIVE
- The salesperson sells the product and encourages the customer to call whenever
he or she has any questions or problems.
3. ACCOUNTABLE
 -
The salesperson phones the customer a short time after the sale to check
whether a short time after the sale to check whether the product is meeting the
customer’s expectations. The salesperson also solicits from the customer any
product improvement suggestions and any specific disappointments. This
information helps the company continuously to improve its offering.
4. PROACTIVE
- The salesperson or others in the company phone the customer from time to time
suggestions about improved product use or helpful new products
5. PARTNERSHIP
- The company works continuously with the customers to discover ways to deliver
better value.

Characteristics of Relationship in Marketing

-It focuses on the long term rather than short term
-It focuses on partners and customers rather than on the company’s products
-It put more emphasis on customer retention and growth than on customer
acquisition
-It relies on cross-functional teams rather than on departmental level work
-It relies more on listening and learning than on talking

BENEFITS IN DEVELOPING AND IMPLEMENTING CUSTOMER RELATIONSHIP

1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer Advocate
5. Innovation

SIX MARKET FRAMEWORK OD RELATIONSHIP MARKETING

-Markets are also important as it reflects the competitive aspects of relationship
SIX MARKET FRAMEWORK OD RELATIONSHIP MARKETING
The essence of this framework is that although customer markets are he center of the figure it
is not the only market of importance in terms of relationship marketing the other markets are
as influential as customer markets depending on the situation and context

CONSUMER MARKET
- Many organizations market to trade customers (Intermediaries, distributors or
retailers) and consumers, but their relative power within the supply chain is
likely to determine which relationship are in focus and which are not
REFFERAL MARKETS (WOM)
- Referrals are characterized by their credibility toward the environment of the
relationships or as endorsers of one of the parties involved. Referrals can be
decisive as they posses a high credibility factor. They aren’t gained from
publishing their point of view
INTERNAL MARKETS
- Each and every employee of an organization is responsible for creating and
distributing value to the customers according to BERRY (1984)
RECRUITMENT MARKETS
- Recruiting right employees for the right post in an organization is a very impo
BENEFITS OF RELATIONSHIP MARKETING
1. Understanding customer characteristics
- The company can segregate its customers into groups based on their
characteristic like purchasing power, frequency and volume of sale transaction
2. Delivery and meeting expectations
- If the company knows what its customers need are, it will help reduce wastage
due to trial and error methods.
3. Repeats Business
-Sellers should maintain good attitude to the buyers
4. Prevents negative transition
- trust and loyalty go hand in hand and it is upper beneficial for all business
5. Word-of-mouth marketing
Increasing customer base – satisfied existing customer is 100% more likely to recommend a
product/service to a prospective customer.

6. Reduced marketing cost

- Benefits also include lesser marketing costs and more value creation.
7. Identification with the company
- The benefits are reaped both by the company and the customers
8. Product market Expansion
- The company’s employees must be ready to deliver beyond the company’s
boundaries on customer demand.

CUSTOMER VALUE
Relationship Marketing
- Includes activities aimed at developing managing trusting and long term
relationship with larger customer
Customer Relationship
- Focuses more on long term customer retention than acquiring large numbers of
new and potentially single-transaction customers.

CUSTOMER LOYALTY
“ A deeply held commitment to rebut or repatronize a preferred produvt or service
in the future despite situational influences and marketing efforts having the
potential to cause switching behavior”

CUSTOMER VALUE
- Is the relationship between benefits and the costs including money, stress and
time to sacrifice that is necessary to get those benefits, Or simply stated in a
mathematical equation:

BENEFITS – COST = Customer value

 CUSTOMER PERCEIVED VALUE

TOTAL CUSTOMER BENEFIT TOTAL CUSTOMER COST

Product Benefit Monetary Cost
Services Benefit Time Cost
Personnel Benefit Energy Cost
Image Benefit Psychological Cost

IMPORTANCE OF CUSTOMERS VALUE

1. Designing and proving superior customer value are the keys to successful
business strategy in the 21st century.
2. Value reigns supreme in today’s marketplace and marketplace
3. Customers will not pay more than a product is worth and will reward excellence
4. A customer – centric culture provides focus and direction for the organization,
ensuring that exceptional value will be offered to customers
5. Designing and delivering superior customer value propels organizations to
market leadership position in today’s highly competitive global markets –
absolute advantage.
6. Proving outstanding customer value has become a mandate for management
 9 RELATIONSHIP MARKETING TOOLS STRATEGIES AND TOOLS

1. Networking
- Networking online and off, can be a powerful relationship marketing technique.
This isn’t just for job seekers! Think about the interest that you have a business,
and then join groups that share your affinities
2. Cherish Each Customer
- Not just in the way that every company says that they do. Make sure that every
interaction you have with your customers show them that they are valued.
3. Listen to your customers
- Listen to your customers! Every business says they do, but not all follow through
or apply what they’ve heard
4. Build a Brand Identity
- A memorable will make it easy for customers to find you and your product(s).
Customers will gravitate toward what they find that is memorable.
5. Give Your Customers Free Information
- What’s better than free? Not much. Your customers are seeking information
about your product(s). they have questions. Give them answers! Identify the
topics and interests your customers have
6. Loyalty Rewards
- Loyalty programs encourage shoppers to return to stores where they frequently
make purchases
7. Communicate Often
- Relationship are based on communication. Your customers and users want to
communicate with you, so be sure to communicate with them often.
Relationship marketing works well when you strive to be there for your
customers
8. Special Events
- Holding a special event for your existing or prospective customers is a great way
to build relationship
9. Face-To-Face-Time
- Like a lot of what we’ve been mentioning. It comes back interactions. While
electronic communication is great, and often preferred, having a face-to face
meeting can help the customer feel valued
CUSTOMER SERVICE

- Is the act of taking care of the customer’s needs by providing and delivering professonal,
helpful, high quality service and assistance before, during and after he customer’s
reuqirements are met.

SATISFACTION

- A person’s feeling of pleasure or disappointment that result from comparing a product’s

perceived performance (or outcome) to expectations.

CHARACTERISTICS OF GOOD AND CUSTOMER SERVICE

1. Promptness
- Promises for delivery of products must be on time. Delayes and cancellations of producr
should be avoided
2. Politeness
- Politeness is almost a lost art. Saying “hello” “good afternoon” “sir” and “thank you”
eveyr
3. Professionalism
- All customers should be treated professionally, which means the use of
competence or skill expected of the professional. Professionalism shows the
customer they’re cared for.
4. Personalization
- Using the customer’s name is very effective in producing loyalty. Customers like
the idea that whom they do business with know them on a personal level

LESSON 4
Strategic and Marketing Planning
“The marketing strategy is your approach to achieving your competitive advantage – the
marketing plan contains the activities that will get you there” – Blog.aha.io

A Marketing strategy refers to a business’s overall game plan for reaching prospective
consumers and turning them into customers of their products or services
Marketing Plan – Driven by your strategy, your marketing plan is the execution; the roadmap of
tactical marketing efforts that help you achieve your marketing goals.

STRATEGIC MARKETING AND TACTICAL MARKETING

STRATEGIC – THE DIRECTION / PLAN TO ACHIVE OUR GOAL
TACTICAL – THE STRATEGY / THE EXECUTION OF THE PLAN\

Strategic Planning is a broad process that can address the entire business, or a portion of the
business such as marketing planning is written based from the strategic plans.

STRATEGIC PLANNING
1. Strategy is a plan from reaching a specific goal.
2. In business, a strategy is a broad goal, such as increasing sales or market share or
creating an image for the business
3. When creating marketing plans start with broad strategies and support with the specific
tactics
4. Planning is the process of predicting future events and conditions and of determining
the best way to attain the goals and objectives of the organization
5. Strategic Planning is a management process of creating and maintaining fit between the
objectives and resources of the organization and the changing market opportunities

Companies usually prepare annual plan, long-range plan and strategic plans:
1. The annual plan is a short-term plan that describes the current situation, company,
objectives, and strategy for the year, the action program, budgets and controls.
2. The long-range plan describes the primary factor and forces affecting the
organization during the next several years. It include the long term objectives, the
main marketing strategies used to attain them, and the resources required.
3. The strategic plan involves adapting the firm to take advantage of opportunities in
its constantly changing environment. It is the process of developing and maintaining
a strategic fit between the organization’s goal and capabilities and its changing
marketing opportunities

1. This become the bases of long-term plan used in strategic marketing

2. To accomplish the long-term goal marketers also develop short term action plan and do
tactical marketing
3. Strategic marketing considers the long-term goals of your company such as expanding
your business, exploring new demographics, or creating a new brand. Therefore, it
needs the insight of your financial department who can analyze if you have adequate
fund to realize your goals.
4. Tactical marketing often involves generating leads, building websites, placing ads, and
following up
THE PLANNING PROCESS

ANALYSIS
Planning begins with a complete analysis of the company’s situation. The company must
analyze its environment to find attractive opportunities and to avoid environmental threats

PLANNING
Through strategic planning, the company decides what it wants to do with each business unit.
Marketing planning involves deciding marketing strategies that will help the company attain its
overall strategic objectives. Marketing, product or brand plans are the center of this
IMPLEMENTATION
Turns strategic plans into actions that will achieve the company’s objectives. People in the
organization that work with others both inside and outside the company implements

CONTROL
Control consist of measuring and evaluating the results of plans and activities and taking
corrective action to make sure objectives are being achieved. Analysis provides information and
evaluation needed for all the other activities

MARKETING ENVIRONMENT
The Marketing Environment of a company is composed of the people, institutions, and forces
outside marketing that influencer marketing management’s ability to develop and maintain a
successful relationship with its target customer
“A company’s marketing environment consists of the internal factor & forces, which affect the
company’s ability to develop & maintain successful transactions & relationship with the
company’s target customer” – PHILIP KOTLER

“The marketing environment consists of external forces that directly or indirectly influence an
organization’s acquisition of inputs and generation of outputs” - PRIDE & FERREL
MARCO ENVIRONMENT FORCES
- It consists of external forces. These external factors influence the company’s
marketing strategy is a great length.
The external environment factors are uncontrollable and the company finds it hard to tackle
the external factors.
1. DEMOGRAPHIC FORCES
- Different market segments are typically impacted by common demographic
forces, including country/region; age; ethnicity; education level; household
lifestyle; cultural characteristic and movements.

2. ECONOMIC FACTOR
- The economic environment can impact both the organization’s production and
the consumer’s decisions making process.

3. NATURAL/PHYSICAL FORCES
- The Earth’s renewal of its natural resources such as forest, agricultural products,
marine products, etc. must be taken into account. There are also natural non-
renewable resources such as oil, coal, minerals, etc. that may also impact the
organization’s production.

4. TECHNOLOGICAL FACTORS
- The skills and knowledge applied to the production, and the technology and
materials needed for the production of products and services can also impact the
smooth running of the business and must be considered

5. POLITICAL AND LEGAL FORCES

- Sound marketing decisions should always take into account political and/or legal
developments relating to the organization and its markets.

6. SOCIAL AND CULTURAL FORCES

- The impact the products and services your organizations bring to market have on
society must be considered. Any elements of the production process or any
products/services that are harmful to society should be eliminated to show your
organization is taking social responsibility.
MICRO ENVIRONMENT OF MARKETING

The micro-environment refers to the forces that are close to the company and affect
its ability to serve its customers. It influences the organization directly.

5 components of the micro environment of marketing are;

1. INTERNAL ORGANIZATIONAL ENVIRONMENT

- The first organization’s internal environment – its several departments and
management levels as it affects marketing management’s decision making.

2. MARKETING CHANNEL
- The second component includes the marketing channel firms that cooperate to
create value: the suppliers and marketing intermediaries (middlemen, physical
distribution firms, marketing-service agencies, financial intermediaries)

3.TYPES OF MARKET
- the third component consists of the five types of market in which the organization
can sell: THE CONSUMER, PRODUCER, RESELLER, GOVERNMENT, AND
INTERNATIONAL MARKETS.

4.COMPETITION
- The fourth component consist of the competitors facing the organization.

5.ORGANIZATION OBJECTIVES
- The fifth component consists of all the public’s that have an actual or potential
interest in or impact on the organization’s ability to achieve its objectives: financial,
media, government, citizen action, and local, general, and internal publics.
 DIFFERENCE BETWEEN MACRO AND MICRO ENVIRONMENT OF MARKETING

Affecting the consumer decision process

1. Economic Process
play an important role in consumer buying behavior decisions. It also directly affects the
purchasing power of consumers. If consumer’s purchasing power is weak, they cannot
decide to buy goods or services even if they like very much. But, if
 they have purchasing power, they can take a prompt decision to buy good or services
they like
2. Technological factors
Technological forces are perhaps the most dramatic forces which are changing customer
habit by introducing a new products for the customer
3. Cultural Factors
Cultural is crucial when it comes to understanding the need and behaviors of an
individual.
4. Demographic factors
Demography is the study of human populations in terms of size, destinyz location, age,
gender, race, occupation and other statistics.

Principle of marketing
MASS – MARKETING
- A strategy that presumes there is one undifferentiated market and that one
product will appeal to all consumers in that market
Advantages
- lower cost
- one advertising campaign is needed
- one marketing strategy is developed
- Usually only one standardized product is developed
Disadvantage
- It only works if all consumers have the same needs, wants, desires, and the same
background, education and experience

Marketing matching strategy

 - Today, mass marketing has largely been replaced by a three-step market matching
strategy
Marketing Matching
1. Segmentation – Act of dissecting the marketplace into submarkets that require different
marketing mixes
2. Targeting – Process of reviewing market segments and deciding which one’s to pursue
3. Positioning – Establishing a differentiating image for a product or service in relation to
its competition
Market Segmentation Variable
- The process of dividing a market into distinct subsets (segment) of consumers with
common needs or characteristics and selecting one or more to target with a distinct
marketing mix
 Geographic
- Division of the market based on the location of the target market
- People living in the same are have similar needs and wants that differ from those
living in other areas
- Climate
- Population density
- Taste
- Micromarketing

 Demographic
- Partitioning of the market based on factors such as:
Age – Product needs and interests often vary with consumer’s age
Gender – Occurrences due to chronological age. Gender is frequently a
distinguish variable. Changes in the family and growth
Marital status – Based on the idea that people hold onto the interest they
learned to appreciate growing up
- Single
- Divorced
- Single Parents
- Dual income married couples
- They then market product specifically designed for one or more groups
Income
Occupation
Education
Ethnicity
 Geodemographic
 - A hybrid segmentation scheme
- Based on notion that people who live close to one another are likely to have similar
financial means, tastes, preferences, lifestyles and consumption habits.
- Market research firms specialize in producing computer – generated
geodemographic market “cluster” of consumers
- They have clustered the notion’s > 250,000 neighborhoods into lifestyle groupings
based on postal zip codes
- Marketers use the cluster data for mail campaigns to select retails sites and
merchandise mixes to locate banks and restaurants, etc.
- “You are where you live”
 Psychographic Segmentation
- Partitioning of the market based on lifestyle and personality characteristics
- Marketers use it to further refine a target market
 Behavioral
- Partitioning of the market based on attitudes toward or reactions to a product and
to its promotional appeals
- Behavioral segmentation can be done on the basis of:
1. Usage rate
- Differentiate between, heavy users, medium users, light users, nousers.
- In general, a relatively small number of heavy users
2. Benefits sought from a product
3. Loyalty to a brand or a store
AIO Inventories
- AIO research seeks consumers’ responses to a large number of statements that
measure
- Activities
- Interests
- Opinions

CLOSING MARKET SEGMENTS TO TARGET

- Once an organization has identified its most promising market segments, it must
decide whether to target one segment or several segments.

Market Targeting Strategy

1. Undifferentiated strategy
 - A strategy that ignores differences between groups within a market and offers a
single marketing mix to the entire market
- It works when a product is new to the market and there is minimal or no
competition

2. Multi-segment or Differentiated Strategy

- Targeting two or more segments with different marketing mixes for each

3. Concentration/Niche Marketing Strategy

- Focus on one sub market

Positioning
- Deciding how the firm wants the company and its brands to be perceived and
evaluated by target markets
- Positioning complements and is an integral of the company’s segmentation strategy
and selection of target markets
- The same product can be positioned differently to different market segments
- The results of successful positioning is a distinctive brand image

Perceptual Mapping
- A spatial picture of how consumers view products or brands within a market
- Allow marketers to determine how their product appears in relation to competitive
brands
- Enables them to see gaps in positioning of all product class to identify areas in which
consumer needs are not being met.
Repositioning
- Marketers may be force to a reposition products due to competition or a changing
environment
- Modifying an existing brand
- Targeting it to a new market segment
- Emphasizing new product uses and benefits
- Stressing different features with the intention of boosting sales

The Product lesson 7

Product
 - Is anything that can be offered to a market to satisfy a want or need including
physical goods services experiences events person place properties
Product Classification

Business products
- Products that are used to manufacture other products
Customer Products
- Products purchased for personal used
- Consumer products referred to all those products that were meant for personal use
or direct consumption by the customer

Convenience Goods
- Products that often purchased by the consumer and do not need much forethought
or effort on the part of consumers are called as Convenience Goods
- Fruits, tissue, drinks

Shopping Goods
- These products are planned purchases where a consumer evaluates various brands –
based on price, features offered and other traits – and then makes the decision
- cabinets

Specialty Goods
- These are goods which consumers need to make the considerable effort before
making the purchase.
- Cellphone, cars

Unsought Goods
- These are products that the consumer is unaware of and thus has no intention of
buying it.
- Life insurance, newspaper

BUSINESS GOODS
- These are products that are used to manufacture other products

Materials and parts

 As the name suggest these goods are used as raw materials for the production of
goods or enter the business as manufactured material or as component parts.

Capital Items
- These are long-lasting goods that assist developing or managing the finished product
- Land, machine

Supplies and business services

- These are products that facilitate developing or managing the finished product
supplies.
- School supplies

Brand
“a brand is a name, term, design, symbol, or any other feature that identifies one seller’s good
or service as distinct from thos of other seelers” (American Marketing Association)
“Branding is endowing products and services with the power of abrand” (Kotler & Keller, 2015)

Brand
1. Design
2. Value
3. Strategy
4. Logo
5. Marketing
6. Advertising
7. Identity
8. Trust
PACKAGING
- The wrapping material around a consumer item that serves to contain, identify,
describe, protect, display, promote and otherwise make the product marketable and
keep it clean
THE PRODUCTION LIFE CYCLE
- The product life cycle is a model that predicts the general trend that most successful
products or services will follow during their lifetime. This life cycle can be reviewed
across an entire category, or in the context of an individual company’s product. It is
a strategy tools that helps companies plan for new product development and refine
existing products.

Tools to create and shape a brand:

These are 4 stages to the life cycle process shown in the table below.
Introduction
 - Low sales
- High costs
- No profits
Growth
- Increasing sales
- Reducing Costs
- Some Profits
Maturity
- Constant Sales
- Reducing Costs
- Increasing Profits
Decline
- Reducing sale
- Constant Costs
- Reducing Profits

What do the PLC stages mean?

The Price
Price is the value measured in money term in the part of the transaction between two parties
where the buyer has to give something up (the price) to gain something offered by the other
party or the seller

Setting the price

When does a firm set prices?
A firm must set a price for the first time when it develops a new product, when it introduces its
regular product into a new distribution channel or geographical area, and when it enter bids on
new contract work
Organization proceed
1. Identify the target market segment for the product or service and decide what share of
it is desired and how quickly
2. Establish the price range that would be acceptable to occupants of this segment
3. Examine the prices (and costs if possible) of potential or actual competitors
4. Examine the range of possible prices within different combinations of the marketing mix
5. Determine whether the product can be sold profitably at each price based upon
anticipated sales levels
6. If only a modest profit is expected it may be below the threshold figure demanded by an
organization for all its activities

An organization goes through the following steps in setting its pricing policy

1. Selecting the Pricing Objective

- A company can pursue any of five major objectives through pricing: survival,
maximum current profit, maximum market share, maximum market skimming or
product quality leadership
2. Determining the Demand
- In the normal case, demand and price are inversely related: the higher the price the
lower the demand
3. Estimating cost
- A company charge a price that cover its cost of producing, distribution and selling
the product including a fair return for its effort
4. Analyzing competitor’s Cost, prices and offers
- While demand set a ceiling and cost set a floor to pricing, competitors’ prices an in
between point you must consider in setting the prices
5. Selecting a pricing method
- Determine best approach for the product
6. Selecting the final price
 - Adopt the chosen pricing strategy

Price is the amount of money that your customers have to pay in exchange for your
product or service. Determining the right price for your product can be a bit tricky

Your pricing strategy should reflect to your product’s positioning in the market and
the resulting price should cover the cost per item and the profit margin.

Types of Pricing Strategies

1. Penetration pricing
2. Skimming pricing
3. Competition pricing
4. Product line pricing
5. Psychological pricing
6. Cost plus pricing
7. Cost based pricing
8. Optional pricing
9. Premium pricing
10. Bundle pricing

The penetration pricing strategy

- A low price is set by the company y to build up sales and market share. This may be
done to establish position in market with preexisting similar products on offer. Once
a position is created, the prices may be raised. A satellite channel provider may offer
an introductory price and then increase as business grows
Skimming Pricing
- Here, the initial price is set high and may slowly be brought down. This allow the
company to introduce the product step by step to different layers of the market.
Electronic and tech gadgets often start at a very high price which is subsequently
lowered with the lowest point reached right before a new model is launched.
Competition Pricing
- When trying to go head to head with the competitors offering similar benefits, a
company may decide to:
a. Price higher to create a higher quality perception or to target a niche market
b. Price the same to show more benefits for the same price
c. Price lower to try gain a wider customer base
Product Line pricing
 - Here, different products in the same range may be set at different prices. Television
sets are priced differently depending on whether they are HD or not, whether they
have Wi-Fi features of not and whether they are 3D or not.
Psychological Pricing
- Often a company will make small changes to prices to make a customer think the
item is priced lower than it is. This is often seen in prices ending in 99. For example,
an item market 199 will be perceived as closer in price to 100 than 200
Cost Plus pricing
- A percentage is added to the costs as a profit margin to determine final price
Premium Pricing
- A high price is set to establish an exclusive product of high quality. Designer cars and
premium brand stores are good example of this type of pricing
Optional Pricing
- A company may add optional extra items within the price to increase a product’s
attractiveness. For example, car sellers may offer car insurance for the first year.
Cost Based Pricing
- Simply, a company may determine the exact cost of producing and selling an
objective, add a markup that may be desirable for profits and price accordingly. This
method may be used in changing industry where even costs production are
unpredictable.

PLACE: DISTRIBUTION STRATEGIES

Distribution channels
- Cover all the activities needed to transfer the ownership of goods and move them
from the point of production to the point of consumption
These activities include:
- Production flow
- Negotiation flow
- Ownership flow
- Information flow
- Promotion flow
Channel partners
- The producer of the product a craftsman, manufacturer, farmer, or the other
producer
- The user of the product: an individual, household, business buyer, institution, o
government
- Middlemen at the wholesale and/or retail level
Channel structures
While channels can be very complex, there is a set of channel structures that can be identified
in most transactions:
- Direct channel
- Indirect Channel
- Dual distribution channel/wholesale
- Agent channel
Supply Chain vs Marketing chain
The supply chain and marketing chain can be differentiated in the following ways:
- The supply chain is broader than marketing channels
- Marketing channels are purely customer facing
- Marketing channels are part of the marketing mix
Channel Management: analyze the consumer
- First, to whom shall we sell this merchandise immediately? Second, who are our
ultimate users and buyers?

Channel Objectives
- Growth in sales by reaching new markets and/or increasing sales in existing markets
- Maintenance or improvement of market share
 - Achieve a pattern of distribution by a certain time, place, and form
- Reduce costs or increase profits by creating an efficient channel
Channel Function
- TRANSACTIONAL FUNCTIONS: buying, selling, and risk assumption
- LOGISTICAL FUNCTIONS: assembly, storage, sorting, and transportation
- FACILITATING FUNCTIONS: post purchase service and maintenance, financing,
information, dissemination, and channel coordination or leadership
Specify Distribution Tasks
What functions does the channel need to perform
Examples:
Store inventory
Deliver goods
Provide credit
Handle product returns

Evaluate and select channel alternatives

There are four considerations for channel alternatives:
1. Number of levels
2. Intensity at the various levels
3. Types of intermediaries at each level
4. Application of selection criteria to channel alternatives. In addition, it is important to
decide who will be in charge of the selected channels
Evaluate Channel Member performance
- It is important to evaluate the performance level of the channel members, but
channel members are independent business firms, rather than employees and
activities under its control, these firms may be reluctant to change their practices.
Approaches to support third party sales success
- Understand and align incentives
- Provide exceptional sales support
- Create demand for your product
Common service outputs
- Spacial convenience – Can I get the product at or near the location where I want it?
- Timing of availability – Do I need the product immediately or am I willing to wait?
- Quantity – Am I willing to buy in bulk or buy multiple items?
- Assortment and variety – Do I have a very particular need or a flexible need? Am I
looking for one or many options?
- Service – Do I require assistance or support through the purchase process?
- Information – Do I need information to make a purchase
RETAIL
- Retailing involves all activities required to market consumer goods and services to
ultimate consumer who are purchasing for individual or family needs
Types of Retail
- Online
- Catalog
- Franchise
- Supermarket
- Malls and shopping centers
- Chain store
- Department store
- Warehouse store
- Non-store (right)
Retailers create a shopping experience through presentation and personnel
Supply Chain Management
- Supply chain management activities maximize customer value and allow the
company to gain competitive advantage.
- The supply chain includes everything from product development, sourcing of
materials, actual production and transportation logistics.
Integrated Supply Chain Management
- With the supply chain organization planning, inventory planning, warehousing,
logistics, and order-fulfillment functions must work together.
Lesson 10:
Promotion: Integrated Marketing Communication

The Promotion Mix

- There are many different marketing communication methods that can be used in the
promotion mix.

Channel Structures
- While channels can be very complex, there is a set of channel structures that can be
identified in most transactions:
a. Direct channel
b. Retail channel
c. Wholesale channel
d. Agent channel

Key Messages Should:

- Express the main idea you want people to understand and remember about your
offering
- Resonate with the audience you are targeting
- Articulate clearly and concisely what you need to communicate about
Traits of Good key messages
1. Concise
2. Simple
3. Strategic
4. Convincing
5. Relevant
6. Memorable
7. Tailored
Refine your message
1. Alignment
2. Hearts and Minds
3. Strategy
4. Differentiation
5. Tone
6. Clarity
7. Inspiration

Standard Marketing Campaign Planning Steps

1. Determine the target market
2. Determine purpose and objectives for the IMC campaign
3. Set S.M.A.R.T goals (specific, measurable, achievable, relevant, and time-based goals.)
4. Define the messages
5. Select marketing communications methods and tools
6. Determine the promotional mix: which tools to use, when, and how much
7. Execute the campaign
 8. Measure results and refine approach, as needed.

The AIDA Model

A – represents attention or awareness, and the ability to attract the attention of the customers
I – represents and points to the ability to raise the interest of consumers by focusing on and
demonstrating advantages and benefits (instead of focusing on features, as in traditional
advertising)
D – Represents desire. The advertisement convinces consumers that they want and desire the
product or service because it will satisfy their needs
A – is action. Consumer are led to take action by purchasing the product or services
Push strategy
- A push strategy placed the product in front of the customer, to make sure the
consumer is aware of the existence of the product
- Push strategies also create incentives for retailers to stock products and put them in
front of the customer.
a. Point-of-sale displays that make a product highly visible to consumers
b. Retailer incentives to stock and sell products, such as discounted bulk pricing
Pull Strategy
- A pull strategy stimulates demand and motives customer to actively seek out specific
product.
Examples:
- Mass-media advertising and promotion of a product
- Marketing communications with existing customers to make them aware of new
products that will fill a specific need
- Referrals and word-of-mouth recommendations from existing customers
Engagement strategies

Smart Goals
 Call to action strategy
- Each touch point should include a call to action aligned with the campaign strategy
and goals

Considerations in Selecting Marketing Communication Methods

- Budgets: what is budget for the marketing campaign, and what resources are
available to execute it?
- Timing: Some IMC methods and tactics require a longer lead time than others
- Audience: Effective IMC methods meet audiences where they are
- Existing assets and organization strength
ADVERTISING
- Is any paid of communication from an identified sponsor or source that draws
attention to ideas, goods, services or the sponsor itself
PUBLIC RELATIONS
- Public relations (PR) is the process of maintaining a favorable image and building
beneficial relationships between an organization and the public communities,
groups, and people it serves.
- Unlike advertising, public relations does not pay for attention and publicity
Public Relations Techniques
1. Media Relations – Generate positive coverage about the organization, its products,
services, people, and activities
2. Influencer/Analyst – Maintain strong, beneficial relationships with individuals who are
though leaders for a market or segment
PERSONAL SELLING
- Personal selling uses in-person interaction to sell products and services
Sales promotion
DIRECT MARKETING
- Direct Marketing activities bypass intermediaries and communicate directly with the
individual consumer
DIGITAL MARKETING
- Digital marketing is an umbrella term for using a digital tools to promote and market
products, services, organizations and brands. Email and mobile marketing overlaps
with direct marketing
SOCIAL MEDIA MARKETING
- Social media marketing is the use of online applications, networks, blogs, wikis, and
other collaborative media for communicating brand messaging, conductiong
marketing, public relations, and lead generation
Social Media Tools
GUERILLA MARKETING
- Guerilla marketing is a relatively new marketing strategy that relies on
unconventional, often low-cost tactics to create awareness of and goodwill toward a
brand, product, service, or even
a company
 Guerilla Marketing Tactics

Tools of Marketing and AIDA stages

- AVERTISING is particularly well-suited to awareness-building
- PUBLIC RELATIONS activities often focus on generate interest, educating prospective
customers and sharing stories that create desire for a product. Similarly, experiential
events can create memorable opportunities to interact with product, brands and
people
- PERSONAL SELLING typically focuses at the later stages of the model solidifying
desire and stimulating action
- Tools for any stage of AIDA: SALES PROMOTIONS, DIRECT MARKETING, DIGITAL
MARKETING, GUERRILLA MARKETING
THE SALES PROCESS
PARALLEL PROCESSES: BUYING AND SELLING
IMC SUPPORT FOR THE SALES PROCESS

CRM – Customer Relationship Management

The Goals of CRM system
1. Capture new leads and move them through the sales process
2. Support and manage relationship with current customers to maximize their lifetime
value to the company
3. Boost productivity and lower the overall cost of marketing, sales, and account
management

Key performance Indicators

Some examples of KPIs
Campaign Plan Components
1. Promotional mix
2. Resource and budget requirement
3. Timing
4. Ownership
5. Measurement
Example: Promotional mix budget template
Anticipate Risk and Threats
1. People: can you count on key individuals?
2. Technology: Will technology work effectively?
3. Funding: is there enough money to support the campaign? How can the campaign stay
on budget?
4. Innovation: Anything new and untested represents risk
5. Competition: How might competitors gain advantages over, attack, or undermine you
business?
6. Economy: what if an economic downturn creates uncertainty and lower spending?
7. Communication: how can you inform stakeholders and coordinate the campaign?
8. Acts of God: what will you do in case of a natural disaster
9. Weaknesses from the organization’s SWOT Analysis

Create Contingency Plans

Which threats are significant?
Create contingency plans for anything that is of particular concern

Practice Question
Why is it important to make a plan for a marketing campaign

Lesson 11: MANAGING MARKETING: Analysis, Planning, Implementation, and Control

Marketing Analysis
Managing the marketing function begins with a complete analysis of the company’s situation in
the marketing environment. Marketing analysis offers accurate and complete information to
each other marketing management function: planning, implementation, and control
SWOT ANALYSIS

Internal Analysis of Strengths and Weaknesses

Strengths are positive attributes, which can be tangible or intangible, and are within the control
of the organization. Weaknesses are factors that may hinder the achievement of desired goals

External Analysis of Opportunities and Threats

Opportunities present themselves as attractive factors that can propel or positively influence
the company in some way. Threats are external factors that could place the organization’s goals
at risk. These often are classified by their level of severity and probability of occurrence
Marketing Planning
- Involves choosing marketing strategies that will help the company attain its overall
strategic objectives. A detailed marketing plan is needed for each business unit,
product and brand. The authors introduce what a marketing plan look like and
contents of a marketing plan.
Marketing Implementation
- Is the process that turns marketing plan into marketing actions to accomplish
strategic marketing objectives. Whereas marketing planning addresses the what and
why of marketing activities, implementation addresses the who, when, and how
(Kotler and Armstrong 2012 p.54)
Marketing Control
- Because many unexpected’ surprises may occur during the implementation of
marketing plans, marketers must practice constant marketing control measuring and
evaluation the results of marketing strategies and plan taking corrective action to
ensure that the objectives are achieved (Kotler and Armstrong 2012 p 56)
Marketing Audit
- Is a comprehensive, systematic analysis of the business marketing environment of an
organization, both internal and external. It covers the organization’s goals,
objectives, strategies, and principles in order to identify any problems or areas of
business organization.
 MARKETING PLAN
Marketing exists in order to support an organization in an organization in achieving strategic goals – for growth,
profitability, revenue, influence, and so on. The role of marketing is to identify, satisfy, and retain customers.

Marketing plan is the guiding document usetd by marketing managers and teams to lay out the objectives that
marketing efforts will focus on the actions they will take to achieve these objectives

Elements of Marketing Plan

Executive Summary

What is this plan about? Summary of key point from the marketing plan what it will accomplish. An at a glance
over for a manager who may not have time to look over the whole thing

Note: this may be the most important part. It can often be wise to write it last, but not at the last minute

 Companies’ description
 Brief description of organization
 Problem
 Target segment
 Competitive Advantage
 Positioning Statement
 Marketing plan objectives

Company Profile

What organization are you marketing?

Basic information about the organization, its offerings, and competitive set.

 Company Name:
 Industry:
 Location:
 Year Founded:
 The number of employees:
 Annual revenue (estimated)
 Major products and/or services
 Target Customers:
 Key competitors
 Website:

Market Segmentation and Targeting

Who is your target audience?

Description of the market for the product or service in question, segments in this market, and targeting strategy
marketing plan will address
  What problem does your product or service solve?
 Describe the total market for your solution: who are potential customers?
 What are the key segments within this market?
 Identify and briefly describe 1-3 segments that this company serves
 Which segment does this marketing plan focus on, and why? Why do you believe this segment will offer
growth and profit opportunities?

Situation and Company Analysis

What is your strategy, and why is it the right approach?

SWOT analysis of the external marketing environment and the internal company environment and marketing goals
aligned with the company mission and objectives.

Situation and Company Analysis

Discuss factors that involving:

 Economic Environment
 Technical Environment
 Technical Environment
 Industry Environment
 Competitive Environment
 Political Environment
 Mission, Objectives and Goals

Ethics and Social Responsibility

How will you demonstrate good corporate citizenship?

Recommendations for how to address any issues around ethics, social, responsibility, and sustainability

Marketing Information and Research

What information do you need to be successful, and how will you get it?

Discussion of key questions that need to be answered, the information needed and recommendations for how
marketing research can provide answers

Customer Decision-Making People

Who is your target customer, and what influences their buying decision?

Profile of the primary buyers targeted in the marketing plan and factors that impact their choices
Positioning and Differentiation

What do you want to be known for?

List of competitive advantages, positioning recommendations and how to convince the market you are different
and better

a. Competitive Advantages
b. Market Niche and Positioning Strategy
c. Positioning Statement

“To [target audience], [product/service/organization name] is the only [category

or frame of reference] that [points of differentiation/benefits delivered] because
[reasons to believe].“To [target audience], [product/service/organization name] is
the only [category or frame of reference] that [points of differentiation/benefits
delivered] because [reasons to believe].

Branding

What is the brand you are building?

Brand platform describing the brand: promise, voice, personality, positioning, and strategic recommendations for
building the brand

Marketing Mix

How will you impact your target market?

This question is addressed by the strategic recommendations around each of the four P’s below:

 Product strategy. Description of the product or service being marketed

 Pricing Strategy. How is your product or service priced? And why this approach makes sense
 Place. Distribution strategy: Recommendations on distribution strategy and channel partners and
explanations of why this approach makes sense.
 Promotion. What promotional or engagement strategies will you use? Explain reason for chosen approach

Measurement and KPIS

How will you measure the impact you’re making?

Identification of key performance indicators (kps) and other to monitor effectiveness of marketing campaign
activities and provide clues about when to adjust course

Measurement (KPI’s – Key performance indicators)

How will you measure the success of the campaign? Select 3-6 KPIs (key performance indicators) that you will
measure. Briefly explain why each KPI you select will be a good indicator of whether your campaign is successful

Budgets

How much will this cost?

List of resources required to execute the marketing plan, how much they will cost, and how to stay within the
allocated budget

Action Plan

What will it take to make this happen?

A detailed, step-by-step plan about what needs to happen, when, and who’s responsible for each step to execute
the marketing campaign