MARKETING

By Dr. Simon Tembo

Don’t Worry About Your Competition, Let

Them Worry About You.
1
 COURSE OUTLINE
4 Hours Lectures + 3 Hours Lab./Tutorial per Week

1) Management
2) Engineering as Business
3) Planning
4) Organizing & Coordinating
5) Staffing
6) Leading
7) Marketing
8) Monitoring & Controlling Operations

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MARKETING
Honda's Asimo, a walking and talking robot, shows off Milmo, a robotic
lawnmower. Milmo can maneuver itself on slopes. Miimo goes on sale next year
in some regions, and will likely cost up to $3,000. 4
A robot calledPR2 flips a pancake in a lab kitchen of the Institute for Artificial
Intelligence at the Institute of Informatics and Automation of Bremen University
in Bremen, Germany. 5
 MARKETING
Organizing and Coordinating
communication channels,
 MARKETING
Definition and purpose,
Methods of marketing
What is Marketing, anyway?
Marketing: The process
of creating consumer
value in the form of
goods, services, or
ideas that can improve
the consumer’s life.
 The • “Marketing is the process of
planning and executing the
American conception, pricing,
Marketing promotion, and distribution
Association of ideas, goods, and
services to create exchanges
Managerial that satisfy individual and
Definition: organizational objectives.”
 More than selling and advertising

Identifying and satisfying customers needs

and wants

Range of activities (marketing mix - 4P’s)

Learning to make what you can sell vs. selling

what you can make.
The goal of all Organizations is to
gain and retain customers

Innovation and marketing are the

only two ways to achieve the goal

“The rest only adds cost”

Marketing Involves having
the Right Product available
in the Right Place at the
Right Time and making
sure that the customer is
Aware of the Product.
 Price
Place

Product

Customers
Promotion
Product Price

Customers

Place Promotion
The Marketing’s 4 P’s (+2)

People

Product

Price

Place

Promotion

Profits
 Communication

Product/Service

Producer/Seller Money Consumer

Feedback
 Favorable Unfavorable
factors factors

Internal Company
STRENGTHS WEAKNESSES
factors analysis

External Market
OPPORTUNITIES THREATS
factors analysis
COMMUNICATION CHANNELS

 The purpose of an organizational structure is to

provide a framework within which people with
different functional responsibilities can work
together to further the objectives of the business
as a whole.
 Its main characteristics are to make explicit who
reports to whom and the channels of
communication.
 An individual reports through the hierarchy to the
head of his function.
COMMUNICATION CHANNELS

 The flow of information with other functions is up

through the hierarchy and across by
communication between departmental heads.
 It can be seen that this organization structure is
based upon the division of specialist knowledge
where each person has a well defined role.
 All co-ordination between functions is done at
senior management levels.
 MARKETING
 The term market is the root word for the word
marketing.
 Market refers to the location where exchanges between
buyers and sellers occur.
 Marketing pertains to the interactive process that
requires developing, pricing, placing, and promoting
goods, ideas, or services in order to facilitate exchanges
between customers and sellers to satisfy the needs and
wants of consumers.
 Thus, at the very center of the marketing process is
satisfying the needs and wants of customers.
 MARKETING
 Many people believe that marketing is just about advertising or
sales.
 However, marketing is everything a company does to acquire
customers and maintain a relationship with them.
 Even the small tasks like writing thank-you letters, playing golf with
a prospective client, returning calls promptly and meeting with a
past client for coffee can be thought of as marketing.
 It includes advertising, selling and delivering products to people.
 The ultimate goal of marketing is to match a company's products
and services to the people who need and want them, thereby
ensure profitability
“Product" does not refer to individual products alone but this framework can
also be used in general (like pertaining to industry, brand, category, company,
etc) as long as the item you will analyze can be quantified in terms of profit or
total sales.
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 1st stage – Introduction:
 it is a stage where the product enters the market.
 At this stage is where you will spend a lot. Why?
 Here are a few reasons:
 Products at this stage has ZERO awareness.
 Products at this stage DEMANDS time, attention and
resources.
 Products at this stage REQUIRES a market.
 As you can see, one common characteristic of products in this
stage is that it requires a demand from a market segment and
this can only be achieve by letting the product be known to
the target market.
 And how do we do that? By using specific marketing
communication tools for tactical purposes to support the
overall strategy.
 Some questions you might ask at this stage:
 What promotional tools can I use to introduce my
product that is cost-effective and resources-efficient?
 What level of pressure I need to use for each of these
tools?
 Light, Moderate or Heavy use?
 How do I measure success for each tool?
 How much should I allocate per tool?
 When should I stop using it?
 At this stage requires the following:
1. Advertising
2. Sales Promotion
3. Event Marketing
4. Public Relations
TOOL PRESSURE LEVEL SAMPLES

Advertising Heavy TV, Radio, Print, OOH,

Merchandising (Trade Level,
POP), Guerrilla Marketing

Sales Promotion Heavy Introductory Price, Coupons,

Price Offs, Contests, Raffle,
Buy one Get One

Event Marketing Moderate Brand activations, (village)

events, city events, mall
tours, school tours, trade
shows

Public Relations Moderate Press conference, press

releases, brand ambassadors
or endorsers, community tie-
ups
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28
 Top 25 Car Brand Ranking at July 2012
4,500,000
4,000,000
3,500,000
World`s Car Sales

3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0

Opel
Kia

Wuling

Mercedes

Skoda

Dongfeng
Chevrolet

Suzuki

Peugeot

Citroen
Toyota

Audi

Buick
Hyundai
Ford

Honda

Fiat

BMW
Renault

Chana
Nissan

Mazda

Dodge/Ram
Daihatsu
Volkswagen

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

World`s Sales

29
http://www.focus2move.com/item/223-top25-car-brands-ranking-at-july-2012-toyota-on-top-of-world
 Many people believe that marketing is just about advertising or
sales.
 However, marketing is everything a company does to acquire
customers and maintain a relationship with them.
 Even the small tasks like writing thank-you letters, playing golf with
a prospective client, returning calls promptly and meeting with a
past client for coffee can be thought of as marketing.
 It includes advertising, selling and delivering products to people.
 The ultimate goal of marketing is to match a company's products
and services to the people who need and want them, thereby
ensure profitability
 MARKETING
 People who work in marketing departments of
companies try to get the attention of target audiences by
using slogans, packaging design, celebrity endorsements
and general media exposure.
 The classic components of marketing are the Four Ps:
product, price, place, and promotion
 That is :
 the selection and development of the product,
 determination of price,
 selection and design of distribution channels (place), and
 all aspects of generating or enhancing demand for the
product, including advertising (promotion).
 MARKETING MIX –THE FOUR P'S
 Marketing managers seek to control the four basic elements
of the marketing mix: product, price, place, and promotion,
known as the four P's of marketing.
 Since these four variables are controllable, the best mix of
these elements is determined to reach the selected target
market.
 Product: The first element in the marketing mix is the
product.
 Products can be either tangible or intangible
 Tangible products are products that can be touched;
 intangible products are those that cannot be touched,
such as services.
 MARKETING MIX
 Price is the cost of the product paid by consumers.
 This is the only element in the marketing mix that
generates revenue for firms.
 In order to generate revenue, managers must consider
factors both internal and external to the organization.
 Internal factors take the form of marketing objectives,
the marketing-mix strategy, and production costs.
 External factors to consider are the target market,
product demand, competition, economic conditions, and
government regulations.
 MARKETING MIX
 There are a number of pricing strategies available to
marketing managers: skimming, penetration, quantity, and
psychological.
 With a price-skimming strategy, the price is initially set high,
allowing firms to generate maximum profits from customers
willing to pay the high price. Prices are then gradually
lowered until maximum profit is received from each level of
consumer.
 Penetration pricing is used when firms set low prices in order
to capture a large share of a market quickly.
 A quantity-pricing strategy provides lower prices to
consumers who purchase larger quantities of a product.
 MARKETING MIX
 Psychological pricing tends to focus on consumer
perceptions.
 For example, odd pricing is a common psychological pricing
strategy.
 With odd pricing, the cost of the product may be a few cents
lower than a full-dollar value.
 Consumers tend to focus on the lower-value full-dollar cost
even though it is really priced closer to the next higher full-
dollar amount.
 For example, if a good is priced at $19.95, consumers will
focus on $19 rather than $20.
MARKETING MIX
 Place refers to where and how the products will be distributed
to consumers.
 There are two basic issues involved in getting the products to
consumers: channel management and logistics management.
 Channel management involves the process of selecting and
motivating wholesalers and retailers, sometimes called
middlemen, through the use of incentives.
 Several factors are reviewed by firm management when
determining where to sell their products: distribution
channels, market-coverage strategy, geographic locations,
inventory, and transportation methods.
 The process of moving products from a manufacturer to the
final consumer is often called the channel of distribution.
MARKETING MIX
 Promotion. The last variable in the marketing mix is
promotion.
 Various promotional tools are used to communicate
messages about products, ideas, or services from firms
and their customers.
 The promotional tools available to managers are
advertising, personal selling, sales promotion, and
publicity.
 For the promotional program to be effective, managers
use a blend of the four promotional tools that best
reaches potential customers.
 This blending of promotional tools is sometimes referred
to as the promotional mix.
 The goal of this promotional mix is to communicate to
potential customers the features and benefits of
products.
Interaction between Marketing Strategy
and Corporate Strategy
 Cars
Hybrids

Minivans
Allocation of
Resources

Trucks
SUVs
 Top 25 Car Brand Ranking at July 2012
4,500,000
4,000,000
3,500,000
World`s Car Sales

3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0

Opel
Kia

Wuling

Mercedes

Skoda

Dongfeng
Chevrolet

Suzuki

Peugeot

Citroen
Toyota

Audi
Hyundai

Buick
Ford

Honda

Fiat

BMW
Renault

Chana
Nissan

Mazda

Dodge/Ram
Daihatsu
Volkswagen

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

World`s Sales

40
 Mobile Network International
Operations Network
Operations

Allocation of
Resources

Fixed Network Internet Network

Operations Operations
 Corporate versus Marketing Strategy

• Allocation of
resources for an • Defines target
organisation to markets,
achieve the direction and
business direction requirements in
and scope order to create a
Marketing
Corporate specified within defensible
strategy:
strategy: corporate position
objectives. compatible with
• Helps to control the overall
and co-ordinate corporate
the different strategy.
areas of the
organisation.
 Marketing Plans and Programmes

• Turning strategies into implementable actions.

Marketing • A detailed written statement specifying target
markets, marketing programmes,
plan: responsibilities, time scales and resources to be
used within the defined budgets.

• Actions, often tactical, using marketing mix

Marketing variables to gain advantage within target
market.
programmes: • Means of implementing the marketing strategy.
• Normally detailed in the marketing plan.
Developing Growth Strategies
Product/ Market Expansion Grid

Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development

New 2. Market
4. Diversification
Markets Development
Product/ Market Expansion Grid
Market Penetration: increase sales to present customers
with current products. How? Cut prices, increase
advertising, get products into more stores.

Market Development: develop new markets with current

products. How? Identify new demographic or geographic
markets.

Product Development: offering modified or new products to

current customers. How? New styles, flavors, colors, or
modified products.

Diversification: new products for new markets. How? Start

up or buy new businesses.
 Marketing’s Role in Strategic Planning

• Market Segmentation: determining distinct

groups of buyers (segments) with different
Process of needs.
• Market Targeting: evaluating and selecting
Selecting Target which target segments to enter.
Consumers • Market Positioning: products distinctive and
desirable place in the minds of target
segments compared to competing products.

Marketing • Market-Leader
Strategies for • Market Challenger
Competitive • Market-Follower
Advantage • Market-Nicher
 The Marketing Process

Demographic- Technological-
Economic Marketing Natural
Environment Intermediaries Environment

Product

Suppliers Place Target Price Publics

Consumers

Promotion

Political- Social-
Legal Competitors Cultural
Environment Environment
 Managing the Marketing Effort

Marketing Analysis of Company’s Situation

Marketing Planning Marketing Marketing Control

Implementation Measure
Develop Marketing Results
Strategies to Turn Marketing Plans
Achieve Marketing into Evaluate
Objectives Action Plans Results
to Achieve
Develop Marketing
Marketing Objectives Take
Corrective
Plans & Budget Action
 Elements of a Marketing Plan

Executive Summary
Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
 Marketing Implementation
Marketing Strategy
Decision
and
Reward
Human
Organizational
Resources
Structure
Action Climate and
Programs Culture

Implementation

Marketing Performance
Marketing Control

Set Marketing Goals

Measure
Performance

Evaluate
Performance

Take Corrective
Action
 Marketing Audits

Environment

Function Types Strategy

of Marketing
Audits
Productivity Organization

Systems
THE MARKETING MIX - THE FOUR P’S

53
THE MARKETING MIX - THE FOUR P’S

PRODUCT
Scope of product mix
Depth of product mix
Quality PRICE
Design Price positioning
Packaging Rebates and conditions
of payment
Maintenance
Financing conditions
Service
Warranty of service
Possibility of
PLACE
returning a purchase PROMOTION
Channels of distribution Advertising
Distribution density Public relations
Lead time Personal sale
Stock Sales promotion
Transport Brand policy
MARKETING RESEARCH EXTENDS FROM TOP TO BOTTOM
OUTLINE OF THE PROJECT STRATEGY

Geographical area
Market share
Cost leadership
Differentiation
Market niche
OUTLINE OF THE MARKETING CONCEPT

Dimensions of the marketing

strategy
Product and target group
Marketing aims
Marketing strategy
Dimensions of operative marketing
Marketing mix
Marketing measures
Marketing Budget
OUTLINE OF THE PROJECT STRATEGY
 A project strategy is a set of objectives and principles
defined for a project with a view to determining the
allocation of resources over a period of time representing
the planning horizon chosen for the project
 The formulation of a project idea should include a
description of a preliminary project strategy, such as
 achieving a production cost advantage over
competitors, or
 penetrating an international capital goods market by
co-operating with a foreign partner, or
 specializing in the manufacture of a high-quality
product.
OUTLINE OF THE MARKETING CONCEPT
 The marketing concept comprises the marketing strategy and the
operative measures required to implement the project strategy
and reach the project or corporate objectives.
 When a project strategy has been defined, a suitable marketing
concept can be designed in accordance with the phases below:
 Strategic dimensions of marketing: which marketing strategy is
suitable to achieve the marketing targets within the conditions
defined by the project strategy?
 The marketing strategy to be considered involves the
following:
 Identification of the target groups and of the products likely
to win their favor;
 Determination of competition policies, that is, whether a
low price strategy or a differentiation strategy should be
pursued to defeat competitors.
OUTLINE OF THE MARKETING CONCEPT
 Operative dimensions of marketing
 The marketing mix. A distinction is usually drawn
between four marketing tools, the combination known as
the marketing mix.
 The four components (or the Four Ps), namely:
 Product, Price, Promotion and Place.
 The four components are also referred to as submixes of
the marketing mix
 In this case, for example, it is possible to speak of:
 a product mix,
 a distribution mix,
 a communications mix, and
 a price mix
PRODUCT-MARKET RELATIONS AND BASIC STRATEGIES

PRODUCT PRODUCT
MARKET OLD NEW
OLD Market Product
penetration development
NEW Market Diversification
development
PRODUCT-MARKET RELATIONS AND BASIC STRATEGIES
 The selected product-market relation determines the
strategic dimensions of the marketing concept.
 Four different types of marketing strategy are reflected in the
below:
 Marketing penetration strategy: The enterprise, operating
on a specific market aims at intensifying its market
efforts.
 The main means are advertising and selling, and the focus
is on existing products.
 A variation of an existing product is called a “relaunch”.
 Another tool of the market penetration strategy is the
“unbundling” of existing products into unbundled
components
PRODUCT-MARKET RELATIONS AND BASIC STRATEGIES
 Marketing development strategy: With existing
products the enterprise aims at new geographical
areas, new customer segments, increasing sales
through new distribution channels etc.
 Product development strategy: The enterprise
aims at developing its products and finding new
solutions for future customers.
 Diversification: The enterprise aims at succeeding
on new markets with new products
COMPETITION AND MARKET EXPANSION STRATEGY
 Any increase of the market share can arise either from a gain
at the expense of competitors, if the total market volume is
stable or decreasing, or from an expanding market.
 Competition strategy: A competition strategy must describe
how market shares are to be won from competitors.
 This strategy may be chosen when it is not advisable to plan
for an enlargement of the total market volume, which would
be the case, for example, when the market has reached
saturation or maturity.
 Market expansion strategy: A market development strategy
implies that the means of the marketing mix of an enterprise
are primarily geared towards the creation of a new market or
the enlargement of the existing market volume.
COMPETITION AND MARKET EXPANSION STRATEGY

Competition strategy
Market Volume

Market share of the enterprise

COMPETITION AND MARKET EXPANSION STRATEGY

Market expansion strategy

Market Volume

Market share of the enterprise

 TOP 5 MISTAKES MADE IN MARKETING
BY LAURA LAKE, ABOUT.COM GUIDE
 A properly developed marketing campaign can not only connect
you with the right prospects, but it gets everyone talking about
your company, your product, or your service.
 However, marketing mistakes can just as easily cost your
business thousands of dollars.
 Here is a checklist of 5 mistakes commonly made in marketing.
 1. Lack of Research and Testing
 Research and testing should be done to determine the
performance of every marketing effort.
 This takes the guesswork out of what your potential
customer or client wants.
 Always make sure you have done your due diligence when it
comes to testing different offers, prices, and packages. Get
the input of your customers.
 TOP 5 MISTAKES MADE IN MARKETING
BY LAURA LAKE, ABOUT.COMGUIDE
 2. Improper Focus and Positioning
 Don't market to build up the company, but approach
marketing to demand an immediate response from the
recipient.
 3. Marketing without a USP
 Your USP is your unique selling proposition.
 It is the one single statement that will single you out amongst
the competition.
 It should be used in every piece of marketing material.
 Think of your USP as the philosophical foundation of your
business. Don't market without it!
 TOP 5 MISTAKES MADE IN MARKETING
BY LAURA LAKE, ABOUT.COM GUIDE
 4. Failing to Capture Repeat Customers
 Keep in mind that when marketing 80% of your business
comes from existing customers and 20% comes from new
customers.
 Failing to resell to your current customer base could have
a detrimental effect on your profits.
 It will cost you 5 times the expense to sell to a new
customer than to sell to an existing customer.
 TOP 5 MISTAKES MADE IN MARKETING
BY LAURA LAKE, ABOUT.COM GUIDE
 5. Lack of Focus on Potential Customer's Needs
 Do you really know what your potential customers need
and want?
 If so you are ahead of the ballgame
 Truth is very few businesses have a good grasp of what it
is that their customer needs from them.
 The secret to avoiding this common error is to find a
need you can fill and then fill that need better than
anyone else.
69