A Broad Overview of Qualifications and Distinguishing Features

of Roots International Schools

What is marketing?
• A business philosophy which supports the idea that that
businesses prosper by satisfying consumers demand. In a
dynamic economy this requires being responsive to changing
demand
• Marketing is a management process of identifying,
anticipating and satisfying the requirements of customers
profitably by getting the right product at the right price to the
right place at the right time Wants, Needs, Value and
Satisfaction
• Needs: “Human needs are basic requirements (physical) like
food, shelter, clothing; and emotional requirements like self-
esteem, affection, security etc.”
• Wants: Refers to the goods and services that fulfill the
individual needs of consumers. E.g. pizza to fulfill the need
for hunger.
• Value and Satisfaction: A consumer will consider a product
to be of good value if it offers satisfaction at what the
consumer considers to be a reasonable price.
Definition of Market • Conventional definition: “Market is the place or mechanism by which
buyers and sellers meet to engage in exchange.” • In the context of the Marketing management
process: “Market refers to the group of consumers that is interested in a product and permitted
by law to purchase it.” • Potential Market for a product is the total population interested in the
product. • Target Market is the segment of the available market the business decides to serve
by directing the product towards it.”
Consumer Markets and Industrial Markets • Consumer Markets: “Markets for goods and
services which are purchased by the final user.” • Industrial Markets: Markets for goods and
services which are bought by businesses which will then be used to produce other goods and
services. The marketing mix used in each market is likely to be tailored to the distinct needs of
each market type.
Local, Regional, National and International Markets • Local Markets: Selling goods or services
in the area where the business is located. • Regional Markets: When the market covers a larger
geographical area, like a town, county, province. • National Markets: Country wide market for a
product or service • International Markets: Cross border market for a product or service
Plan (generic definition): • Where we are at present (Situation Analysis) •
Where we want to go (Objectives) • How are we going to get there (Strategies
and Tactics.) • Mechanism for evaluating whether or not the organization has
succeeded.
Strategy: • are the broad outlines of the methods used to achieve long term
objectives. • long term focus • Marketing strategies will specify a target market
(the group of customers whom the company wishes to target) and the
marketing mix the company puts together.

Tactic: • are specific programs of action. • short term focus • Marketing tactics
are also expressed in terms of the marketing mix.
Marketing Plan: Steps
1. Corporate Objectives
2. Marketing Audit
3. Analysis
4. Assumptions
5. Marketing Objectives
6. Marketing Strategies
7. Marketing Tactics and Budget
8. Monitoring and Control
Market Segmentation
Market Segment: A sub group of the whole market in which
the consumers have similar characteristics.
Market Segmentation: Identifying different market
segments in the market and targeting different products and
services to them. Consumer Profile: A quantified picture of
consumers of a firms products, showing proportions of age
groups, income levels, location, gender, socio-economic
class.
Demographic Segmentation methods: (demography is the
study of population data)
Socio-economic classification used in UK • A- upper middle
class, higher managerial, administrative and professional ,
e.g. directors of big firms, successful lawyers. • B- middle
class, middle managerial staff, admin or professional e.g.
teachers • C1- lower middle class, supervisory, clerical, junior
managerial,. • C2- skilled manual workers • D- working class,
semi skilled and unskilled manual workers. • E- subsistence
level, casual, part time workers and unemployed.
Market Segmentation: targeting segments
• Undifferentiated Marketing: (Same for everyone) Compare it to
a shotgun. Ignores existence of different segments and offers a
single mix to the whole market.(e.g Gasoline, Soft drinks, White
bread etc)
• Concentrated Marketing (Niche Marketing): A particular
segment is targeted and the marketing mix is tailored to that
segment.
• Differentiated Marketing: Different market segments are
targeted and a separate marketing mix is developed for each
segment. Costly.
Industrial customers will be fewer in number, larger in size, take
detailed decisions and involve more than one person. Typical
segmentation of industrial customers may be based on:
• Location: transport costs are significant for industrial buyers and
markets may be segmented according to location of the customer.
• Company Type: segmented according to company size, industry
features, purchasing criteria, etc.
• Behavioral Characteristics: usage rate, first time or regular
customer, purchasing procedure
Market Size: the total level of sales of ALL producers in a given market.
This can be measured by the volume of sales (no. of units sold) or The value of sales (Price x Quantity = Sales Revenue)
This calculation is useful to the marketing manager because:
• The size of the market can be gauged and the benefit of entering the market can be determined.
• The firms own market share can be determined only if the market size is known.
• Any changes in the market size can be monitored. Is the market static, growing or shrinking?
Market Growth: the percentage change in the total size of the market (volume or value) over time.
This pace of growth is affected by factors like:
• General economic growth
• Changes in consumer income
• Development of new markets
• Development of new products
• Changes in consumer tastes
• Technological change and innovation
• Whether the market is saturated or not