TAITA TAVETA UNIVERSITY

Department of Business Studies & Economics

Principles of Marketing
Lecture 1

Marketing overview
By Amina Ndinya
 What is Marketing?
• “The activity, set of institutions, and processes
for creating, communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society at
large.”

By Amina Ndinya
 Creating

Exchanging Value Delivering

Communicating

By Amina Ndinya
 Marketing is a process

Construct and Capture Value

Understand the Design a Build profitable
integrated from customers
market place customer relationships
marketing to create
and customers’ driven and create
program that profits and
needs and Marketing customer
delivers customer
wants Strategy delight
superior value quality

By Amina Ndinya
 Understanding the Market Place and
Customer Needs
• Customer Needs, Wants and Demands:
• Needs- Felt deprivation- basic and not created. Necessities-
include food, clothing, warmth, safety, belonging etc.
• Wants: form of needs shaped by culture and personality- a
Kenyan man needs food but wants Ugali- Sukuma, Ugandan
needs food but wants Matoke with peanut stew. A banker
needs clothing but wants a suit and tie.
• Demands: these are needs backed by buying power.
• Given their wants and resources people demand products
with benefits and add up to the most value and
satisfaction.

By Amina Ndinya
 Why Marketing?
• Helps achieve the company objectives
• Creates products that satisfy Customer needs
• Helps face competition
• It builds brand loyalty and corporate image
• It helps business expansion
• It leads to optimum utilization of resources
• Increases profits and sale
• Develop community through CSR
• Provide information to the market about their offers
• It up-lifts society lifestyle
• Positively influence culture and lifestyle of the society
By Amina Ndinya
Marketing is the role of everyone in the organization

Top
Management –
Mission, Vision
Objectives and
Strategy
Production- Finance-
Making sure the Budgeting and
product is as Funding all the
required by the marketing
customer activities

Marketing Accounting-
IT- Making sure Book keeping
IT required for and financial
marketing are in records of all
good order transaction s
made

Procurement – Human
Making sure the Resource-
material and Staffing,
other logistics motivating and
are in place developing
By Amina Ndinya
 What is Marketed
• Market offer
– Goods
– Services- Banking, medical care, lawyers, accounting
– Experiences- Banking, travelling, holiday package…
– Places- Tourism Destination, Investing sites…
– Persons- Celebrities, politicians…
– Organizations- Safaricom, KCB, EABL etc
– Information: Family Planning, Drugs, Road Safety,
Security issues
– Ideas: every product or service starts as an idea- ipad,

By Amina Ndinya
The Marketing Department Organization

• Designing the organizational structure of

a marketing department can be
challenging given the lines between PR,
advertising, ecommerce, tech,
operations, product, design, sales and
customer service are quickly blurring.

By Amina Ndinya
The Marketing Department Organization

Types of Marketing Organization

• Functional Marketing Structure
• Geographical Marketing Structure
• Product or Brand Marketing Structure
• Market Marketing Structure
• Matrix Marketing Structure
• Corporate Division Marketing Structure

By Amina Ndinya
 Geographic Marketing Organization
Putting Marketing Specialists to different regions to
support the sales effort in high volume regions which
may require different marketing efforts

CMO at the
Headquarters

Marketing
Marketing Marketing Marketing Marketing
Manager S.
Manager- Europe Manager- USA Manager Asia Manager Africa
America

By Amina Ndinya
 Product/ Brand Marketing
Management Structure
• This kind of Marketing Management Structure does not
replace the functional structure but acts as another layer of
management
• The Product Manager supervises the product category
managers, who in turn supervises the specific product
managers.
• Product Management is sometimes characterized hub and
spoke system as demonstrated below.

By Amina Ndinya
Product/ Brand Marketing
Management Structure
Sales force

Marketing
Packaging
Research

Promotion
Product Legal Team
Manager

Media Manufacturing

Distribution

By Amina Ndinya
Functions of a Brand Manager

• Design a long range and competitive strategies for

the product
• Preparing an annual marketing plan and sale
promotion
• Working with advertising and merchandising
agencies
• Support the product on sales and distribution
• Gathering and analyzing product and market
intelligence
• Initiating product improvement to meet the changing
market needs and preferences.

By Amina Ndinya
 Market Management Structure
• Focuses on distinct segments- teams are set around
certain segments.
• A market manager supervises several market managers
also called Markets or Business Development Managers,
Market Specialists, and industry specialists.
• For example in banking we have Markets segmented as:
Corporate Clients, Students Accounts, SMEs, Mortgages
Assets Loans, Salary Accounts, Savings Accounts…each
segment having its own manager.
• Market Managers Develop long range and annual plans
for their markets.
• Market Managers performance is determined by their
markets profitability and growth rate.
By Amina Ndinya
 Market Management Structure

CMO

Market Market Market Market Market

Manager Manager Manager Manager Manager
(Segment 1) (Segment 2) (Segment 3) (Segment 4) (Segment 5)

By Amina Ndinya
Matrix Marketing Management Structure

• Companies combine Specialties to improve in

their marketing implementations.
• Companies can view the functional
experts/managers combined with the Market
managers as main marketing team leaders and
the product managers as the suppliers.

By Amina Ndinya
Matrix Marketing Management Structure

Chief Brand A Brand B Brand C Brand D Brand E

Marketing Manager Manager Manager Manager Manager
Office
R&D
Manager
Promotion
Manager
Sales
Team Members with
Manager two directional
P. R.
Manager reporting
Marketing
Administrati
on Manager

By Amina Ndinya
Matrix Marketing Management Structure

Chief Region A Region B Region C Region D Region E

Marketing Marketin Marketing Marketing Marketing Marketing
Office g Manage Manage Manage Manage Manage
R&D
Manager
Promotion
Manager
Sales
Team Members with
Manager two directional
P. R.
Manager reporting
Marketing
Administrati
on Manager

By Amina Ndinya
 The Various Roles of the Marketing
Department
• Listening to customer needs
• Track trends and monitor competition
• Work on brand values
• Searching for new (and helpful)
marketing' tools
• Coordinate efforts with those of the
marketing partners of the company
By Amina Ndinya
 The Various Roles of the Marketing
Department
• Innovate- surprise customers
• Communicate with the rest of the company-
common goal
• Help improve sales processes and customer
• Manage marketing budgets & Calculate the
ROI (Return Of Investment) of the company’s
actions
• Define strategic marketing plans

By Amina Ndinya
 Marketing Criticism
• Marketing encourages people to purchase what they
did not need-
• Marketers exaggerate product claim-
• Marketing discriminates by segmenting the market-
• Marketing contributes to environmental waste
• Marketing is blamed for cultural pollution
• Marketing impacts negatively on other businesses
• Shoddy unsafe products
• Planned obsolescence.
By Amina Ndinya
 Marketing Challenges
• Ever changing customer needs
• Global Competition
• Media fragmentation
• Informed customers
• Legal requirements and low
• Growing interest groups- environment, human
rights, religion etc
• Cultural differences
By Amina Ndinya