SALES &

MARKETING
MODULE 4
BASIC MARKETING
CONCEPT

NEEDS

DESIRES

DEMAND
MARKETING

Marketing covers not only all these techniques,

but also the process of planning and managing
marketing operations.

Marketing serves to promote everything from

products, services, ideas, candidates for election, and celeb rities
to social causes. Consequently, it applies to both for-prof it
businesses and non-profit organizations,
in both the domestic market and foreign markets, and fo r sellin g
to individual, industrial and organizational customers.
 MARKETING DEFINITATION
“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.” (AMA 2013) MARKETING
ORIENTATION

SALES
ORIENTATION

PRODUCT
ORIENTATION

PRODUCTION
ORIENTATION
DEVELOPMENT OF
MARKETING
Production orientation
Focuses on production eciency that will lead to high quality products.

Product orientation
Assume that consumers are completely informed about everything available on
the market and that their purchases are always “rational,” in the economic sense
of the term.

Sales orientation
These people overlook the consumer’s needs and presume that they can convince
the consumer to buy their product by skillfully applying one of the components
of their marketing strategy.

Marketing orientation
To satisfy the customer while keeping the company’s goals in mind.
 TYPES OF BUSINESS STRATEGIES
• COMPETITIVE STRATEGIES
Leader strategies
Is often a point of reference that rival companies strive to attack, imitate or avoid..
The leader is the one that sets the pace of the market; it is watched constantly by all competing companies..

Challenger strategies
Openly uses offensive strategies intended to make it the market leader
It can try to confront the leader directly by using the leader’s own methods without attempting to take advantage of its weaknesses..

Follower strategies
develops strategies aimed primarily at retaining its market share instead of attempting to increase it considerably.

Specialist (or nicher) strategies

focuses on a relatively distinctive market segment. Therefore its strategies are developed to seek a niche that distinguishes the company
from its competitors and then focus exclusively on that niche.
 TYPES OF BUSINESS STRATEGIES
• DEVELOPMENT STRATEGIES
Market penetration
A company seeks to increase the sales of its existing products in existing markets by using dierent methods.

Market development
A company seeks to increase its sales by introducing existing products on new markets.

Product development
A business seeks to increase sales by using its existing markets to launch entirely new products, or “new” products developed by
modifying existing ones.

Diversification
Aims to increase its sales by developing new products for new markets
Strategy aims to increase its sales by developing new products for new markets. is strategy is riskier than the three preceding ones
because it combines two new and completely unknown parameters: products and markets..
MARKETING
PLANNING
 MARKETING
PLANNING

• Where are we and where are we going? (Situation analysis)

• Where do we want to go? (Formulating business strategies)
• What eorts should we invest in this? (Resource allocation)
• How do we want to get there? (Strategy and marketing mix)
• What should we do? (Implementation)
• How do we know if we’re going in the right direction? (Control)
MARKETING PLANNING PROCESS