Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

ELEMENTS OF MARKETING
FIDELIS QUANSAH (MRS)

Courtesy:
www
...
com

UNDERSTANDING MARKETING IN
CONTEXT
What is Marketing?
• The American Marketing Association defined Marketing
as “the process of planning and executing the
conception, pricing promotion and distribution of ideas,
goods and services to create exchanges that will satisfy
individual and organizational objectives”
...
”
Courtesy:
www
...
com

DEFINING MARKETING
• The American Marketing Association recently
defined Marketing as “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
...


Courtesy:
www
...
com

THE NATURE OF MARKETING
• Marketing has to operate as a system
• Marketing describes a function of business
• Marketing is an umbrella term for a range of
techniques
• Marketing is an ongoing process
• Marketing describes concept
Courtesy:
www
...
com

• It describes concept: the belief that the
customer is of prime importance in business,
that success comes from customer
orientation, seeing every aspect of the
business through the eyes of the customer,
anticipating their needs and supplying what
they want in the way in which they want it;
not simply trying to sell whatever we happen
to produce
...
carlprosper4nugs,yolasite
...
Such must
clearly be directed from a senior level and
take a broad view of the business
...
carlprosper4nugs,yolasite
...

•
Courtesy:
www
...
com

• Marketing is an ongoing process, one that
acts to ‘bring in the business’ by utilizing and
deploying the various techniques on a
continuous basis; and doing so appropriately
and creatively, to make success, nor can it be
applied ‘by rote’- the skill of those in
marketing lies precisely how they act in an
area that rightly is sometimes referred to as
being as much an art as a science
...
carlprosper4nugs,yolasite
...

The marketing system positions the marketing
process within a broader context and links the
organization to the outside world
...

Courtesy:
www
...
com

ASSUMPTIONS ABOUT MARKETING
•

“Marketing is advertising”

Consumers are always bombarded with advertisements
•
•
•
•
•
•

“Marketing is selling”
Marketers are rather concerned with questions like
Whom are we selling to?
-What do they want to be sold?
-How do we know what they want?
-Who else is trying to sell them something similar?

•

“Marketing is getting people to buy products they do not really want”

•

People are made to buy products like electric toothbrush, fridge magnets in the shape of fruits
even though they do not need them
...



...
carlprosper4nugs,yolasite
...

The study of marketing principle can help you become a more productive,
valuable co-worker

...



...

Marketing skills can also help you become a more knowledgeable
consumer, as you will better understand the marketing practices that
influence your purchases
...
carlprosper4nugs,yolasite
...
carlprosper4nugs,yolasite
...
The logistics of physically
moving and storing goods are also part of
distribution planning
...
Certain large retail shops store products
in central warehouses for later
...
carlprosper4nugs,yolasite
...
Business owners mostly obtain loans
from the banks to begin a new business or to
augment an ongoing investment
...
Financing also involves
decisions about whether to offer credit to
customers or not
...
carlprosper4nugs,yolasite
...

Getting the necessary information to make
sound business decisions is known as
Marketing Information Management
...
Companies conduct
marketing research to learn more about their
customer preferences and how to better
market their product
...
carlprosper4nugs,yolasite
...

Most pricing decisions are based on competitive
pricing and determining how much customers are
willing to pay
...
Pricing concept
and strategies are utilized in determining and
adjusting prices to maximize return and meet
customer perceptions of value
Courtesy:
www
...
com

• Product / service management
• This is to obtain, develop, maintain, and
improve a product or a product mix in
response to marketing opportunities
...

Courtesy:
www
...
com

• Promotion
• It is constituted in communicating with potential
customers by informing, persuading or reminding
them about a business product
...
In other
media, promotion is carried out in the form of
print and on line activities
...
carlprosper4nugs,yolasite
...
This includes
selling in a retail market to a customer or selling in the
business to business market to industrial users
...
In
all these functions of marketing the aim is to satisfy the
needs and wants of the customers in order to make
profit
...
carlprosper4nugs,yolasite
...

Courtesy:
www
...
com

Construct in
integrated
marketing program
that deliver
superior value

Building profitable
relationship and
create customer
delight

Understanding the Marketplace and
Customer Needs
• Customer Needs, Wants, and Demands
• Market Offerings-Products, Services, and
Experiences

• Customer value and satisfaction
• Exchanges and Relationships

• Markets
Courtesy:
www
...
com

Designing A Customer-Driven Strategy
• To design a winning marketing strategy, the marketing manager
must answer two important questions:
• What customers will we serve?
• How can we serve these customers best?
• The company must decide who it will serve by first dividing the
market into segments of customers since the market out there is
large and select which segment to go after (target marketing)
...

• For marketing managers to design strategies that will build
profitable relationships with target buyers, it should be guided by
some philosophies(production, product, selling, marketing
philosophies)

Courtesy:
www
...
com

• Preparing an Integrated Marketing plan and
Program
Next, the marketer develops an Integrated
Marketing program that will actually deliver the
intended value to target the customers
...

It consists of the firms marketing mix, the set of
marketing tools the firm uses to implement its
marketing strategy
...
carlprosper4nugs,yolasite
...

Customer Relationship (CRM) is the overall process
of building and maintaining profitable customer
relationship by deliver superior customer value and
satisfaction
...


Courtesy:
www
...
com

• Capturing Value from Customers
The final step involves capturing value in return,
in the form of current and future sales, market
share, and profits
...
This in turn,
means greater long-run returns for the firm
...
carlprosper4nugs,yolasite
...

The marketing mix may have many facets, but its
elements can be placed in four basic
categories:
product, place (distribution),
promotion, and price (The Four Ps)

Courtesy:
www
...
com

FOUR PS OF MARKETING
• Product: The term product refers to what the
business or nonprofit organization offers to its
prospective customers or clients
...
Transportation, storage, materials
handling, and the like are physical distribution
activities
...
carlprosper4nugs,yolasite
...
)
• Promotion: Marketers need to communicate
with consumers
...

• Price: The amount of money, or sometimes
goods or services, given in exchange for
something is its price
...
carlprosper4nugs,yolasite
...

The extra three P’s are:
• People
• Physical evidence
• Process
Courtesy:
www
...
com

• People
The importance of people within the organization has
already been touched on (the marketing culture)
...

For instance, individual people- a waiter in the hotel or
restaurant, for instance- can be a major influence, and
can almost be considered part of the product or service
...

Courtesy:
www
...
com

• Physical evidence
This describes the tangible aspects of the delivery of products
to its customers
...
Other examples are the premises
used by organizations offering services
...
A person considering which estate agent to
instruct for the sale of a house may be influenced by the
general appearance and décor of the agent’s premises and the
displays of houses for sale- the physical evidence of the
service they expect to receive
...
carlprosper4nugs,yolasite
...
For example, a person
deciding to book an eye test will probably go through a number of
processes, starting with a telephone call to book a convenient
appointment
...

Part of the process might involve help and advice in choosing suitable
frames, answering questions, dealing with payment and booking a
follow- up appointment
...


Courtesy:
www
...
com

MICRO MARKETING
It is the practice of tailoring products and
marketing programs to suit the tastes of
specific individuals and locations
...
carlprosper4nugs,yolasite
...
Thus, IKEA customizes
each store merchandize and promotions to
match its local clientele
...
carlprosper4nugs,yolasite
...
It can drive up
manufacturing and marketing cost by reducing the
economics of scale
...
And brands overall
image may be diluted if the product and message vary in
different localities
...

•
Courtesy:
www
...
com

• Advantages
Local marketing helps a company to market
more effectively in the face of pronounced
regional and local differences in community
demographics and lifestyles
...
It
maintains local variety and color, but at a cost
...
carlprosper4nugs,yolasite
...
Individual
marketing has also been labeled’ market-ofone marketing’, ‘customized marketing’ and
‘one-on-one’ marketing
Courtesy:
www
...
com

MACRO MARKETING
It is a social process that directs an economy’s
flow of goods and services from producers to
the consumers in a way that effectively
matches
supply
and
demand
and
accomplishes the objectives of the society
...
carlprosper4nugs,yolasite
...
However, the emphasis with macro
marketing is not on the activities of individual
...
This includes looking at how
marketing affects society and vice versa
...
carlprosper4nugs,yolasite
...
Obviously, all nations do not share the
same objectives
...
Goods and services are fairly
and evenly distributed among Swedish population
...

Courtesy:
www
...
com

TYPES OF PRODUCTS
Marketers normally classify products into
specific categories
...


Courtesy:
www
...
com

Goods and Services
• Goods are physical products such as cars, golf
clubs, soft drinks or other concrete entities
...


Courtesy:
www
...
com

Goods and Service Strategy
Although the tangibility, perishability, seperability,
and variability characteristics differentiate many
products and services, new technological
development are blurring some of these
differences
...
For example, on-line
databases are services, but the information
provided is tangible, it can be stored until a
customer needs it, the provider of the services is
separated from the user, and there is little service
variability
...
carlprosper4nugs,yolasite
...
The
soft drink is a good
...
The
restaurant can stockpile cases of Coca- Cola to
serve when needed
...
Finally, the quality of the Coke is
expected to be the same from can to can,
because the manufacturing process is
standardized
...
carlprosper4nugs,yolasite
...
The activity of serving the coke is not
tangible; it cannot be touched
...
The waiter’s service cannot be separated from
the restaurant, and it is performed in the presence of
the customer
...
And finally the service
provided by the same waiter to different customers, or
by different waiters, is likely to vary in quality
...
carlprosper4nugs,yolasite
...
Goodwrench;

models

of

building prepared by architects
Perishable

Mange demand to utilize Reduced prices for afternoon
supply

movies; lower prices for offseasons accommodations at
tourist attractions

Inseparable

Capitalize on advantages of Motivate
person

providing

service

the through

service

providers

compensation

recognition
continual

and

programs;
training

of

all

customer contact personnel
Variable

Standardize service delivery Use of technologies, such as
as much as possible

automated teller machines to
provide
implementation

service;
of

improvement programs

Courtesy:
www
...
com

quality

CONSUMER AND BUSINESS
PRODUCTS
• Consumer products are those purchased by
consumers for their personal use
...


Courtesy:
www
...
com

CUSTOMERS VS
...

• Customers buy the product
...


Courtesy:
www
...
com

• UNIQUE SELLING PROPOSITION (USP)
• As well as the support of an appropriate marketing
mix, the one key factor that is necessary for success in
the marketplace is the ability to differentiate one
product from all the others that are available
...

• The differentiating factor, often called the Unique
Selling Point or Unique Selling Proposition (USP), can
be real or imagined
...
carlprosper4nugs,yolasite
...
Unfortunately, for many
producers, however, there is little that modern
technology is unable to imitate closely, even when
direct copying is illegal
...
carlprosper4nugs,yolasite
...
Effective advertising can give a
product an image that appeals to a certain market
segment, either by using carefully chosen imagery, by
association with other items or a well-known
personality
...

Courtesy:
www
...
com

• For a firm, the keys to marketing success in competitive market are;
• To ensure that consumers are able to distinguish its product from all
the others
• To ensure that the product is supported by a coherent and consistent
marketing mix
• To ensure sufficient flexibility to be able to change the mix as and
when external factors change
• To ensure quality in all aspects of the business
...
carlprosper4nugs,yolasite
...
carlprosper4nugs,yolasite
...
But
what philosophy should guide these marketing strategies?
What weight should be given to the interests of customers,
the organization, and society? Often these interest conflict
...

Courtesy:
www
...
com

The Production Concept
The production concept holds that consumers
will favor products that are available and
highly affordable
...


Courtesy:
www
...
com

The product concept
The product concept holds that consumers will
favor products that offer the most in quality,
performance, and innovative features
...


Courtesy:
www
...
com

The Selling Concept
Many companies follow the selling concept, which

holds that consumers will not buy enough of the
firm’s products unless it undertakes a large-scale
selling and promotion effort
...

Courtesy:
www
...
com

The Marketing Concept
The marketing concept holds that achieving
organizational goals depends on knowing the
needs and wants of target market and
delivering the desired satisfaction better than
competitors do
...
carlprosper4nugs,yolasite
...
Emphasis is on product

1
...
Company first makes the product and 2
...

1
...
management is profit oriented

1
...
Planning is long- run in terms of new
today’s product and markets
...


1
...
carlprosper4nugs,yolasite
...
stresses needs of buyers

Holistic Marketing Concept
The holistic marketing concept is based on the
development, design, and implementation of
marketing programs, processes, and activities that
recognizes their breadth and interdependencies
...
carlprosper4nugs,yolasite
...
Four key constituents for

relationship

marketing

are;

customers,

employees, marketing partners and members

of financial community
Courtesy:
www
...
com

Integrated Marketing
The marketer’s task is to devise marketing
activities

and

assemble

fully

integrated

marketing programs to create, communicate,
and deliver value for customers
...
carlprosper4nugs,yolasite
...

Internal marketing is the task of hiring, training,
and motivating able employees who want to
serve customers well
...
carlprosper4nugs,yolasite
...

Courtesy:
www
...
com

LECTURE THREE
• MARKETING IN DIFFERENT
ORGANIZATIONS

Courtesy:
www
...
com

INTRODUCTION
• Private sector/ commercial organizations: all
commercial companies have three basic
functions – though in a well-directed company
they do not operate in isolation from each ,
and two major sources, capital labour
...

Marketing
Courtesy:
www
...
com

MARKETING IN DIFFERENT ORGANIZATIONS
(Cont
...
It may include involvement
in engineering; the product might be machine
tools or products necessary to use them (from
spare parts to specialized oil), as well as a whole
range of components: items bought to become
part of whatever product the purchasing
organization makes and sells
...
carlprosper4nugs,yolasite
...
)
• The business – to – business market : this has
much in common with the industrial market
...
The
difference is primarily that this category omits
the heavy end of industrial marketing
...
carlprosper4nugs,yolasite
...
The products include telephones
and telephone systems, office furniture,
paperclips, computer disks, technical journals,
stationery, business books, and cupboards (on
the basis that even the business which has
everything needs somewhere to keep it!)
...
carlprosper4nugs,yolasite
...
)
• Service organizations: These organizations sell
services, for example, dry cleaning, tax-free
savings accounts and firm processing to the
consumer market, or industrial design,
contract ploughing and staff training to the
business market
...

Courtesy:
www
...
com

MARKETING IN DIFFERENT ORGANIZATIONS
(Cont
...
Although some small businesses are very
aware of the importance of marketing, often the owner is
focused mainly on the product or service he is offering and
may see marketing as an unnecessary or ‘extra’ and has
neither time, energy nor money to embrace
...
carlprosper4nugs,yolasite
...
)
• Government: both local and national
government have marketing operations
...

• Quasi-government and others: this category
overlaps into a whole range of other bodies:
government agencies, trade organizations (like
the Wool Marketing Board), educational
establishment and professional bodies
Courtesy:
www
...
com

LECTURE FOUR
• MARKETING ENVIRONMENT

Courtesy:
www
...
com

Courtesy:
www
...
com

BRANDING
A brand is a name, sign, symbol, or design, or a
combination of these, that identifies the
maker or seller of the product or service
...
carlprosper4nugs,yolasite
...
A customer can
order a product by name instead of description
...

• The firm responsible for the product is known
...

• Price comparisons are reduced when customers
perceive distinct brands
...

Courtesy:
www
...
com

• 1 Importance of Branding
• Products identification is eased
...

• Customers are assured that a good or service has a
certain level of quality if the same brand is recorded
...
The
producer of the items cannot be as directly identified
...
This is most likely if special
attributes are linked to different brands
...
carlprosper4nugs,yolasite
...
This
aids the customers in forming brand images, which are the
perceptions a person has of particular brands
...

• People feel less risk when buying a brand with which they
are familiar and for which they have a favorable attitude
...

• Branding helps segment markets by creating tailored
images
...

• A brand may help enter a new product category
Courtesy:
www
...
com

•
•
•
•
•
•
•
•
•

Advantages of branding
The advantages of branding for an organization are as follows:
It helps to differentiate its product(s) from competitors
...

It allows for premium pricing
...

The advantages of branding to customers are:
It can act as a guarantee of a certain level of quality
...

• Haagen Dazs ice-cream is a good example of clever branding
...
It was
given a made-up name that sounded foreign and conveyed the
impression of quality
Courtesy:
www
...
com

Approaches to Branding
• There are two main branding strategies for an
organization with a number of products
...
carlprosper4nugs,yolasite
...
It has two main variations:
• Use of the company name on all products, often with
more descriptive, individual product names e
...

Kellogg’s Cornflakes, Kellogg’s Frosties, Kellogg’s Rice
Crispies, Kellogg’s Fruit ‘n’ Fibre, etc
...
g
...

Courtesy:
www
...
com

• The main advantage of this branding approach
for a company is that marketing costs are
lower both for established products and when
introducing new products, as the umbrella
brand name is already well known
...
carlprosper4nugs,yolasite
...
It has two main variations:
• Different brands for products in different markets; for
example, Reckitt & Coleman markets both Veuve de
Vernay sparkling wine and Harpic toilet cleaner
...

Courtesy:
www
...
com

• Different brands in competition in the same
market, for example Procter and Gamble owns
Ariel, Daz and Bold washing liquids
...
The
organization can also aim different products at
slightly different markets and if one product is
not doing well or receiving bad publicity, it will
not affect the image or reputation of the other
brands
...
carlprosper4nugs,yolasite
...
carlprosper4nugs,yolasite
...
These may include:
• Under brand extension, an existing name is applied to a new
product
...
E
...

sankofa rice
...

–
–
–
–
–

Initials (e
...
HBO, BMW)
Invented name (e
...
Exxon)
Numbers (e
...
Boeing 777, DC 10)
Personal name (e
...
Ford)
Foreign word (e
...
Nestle)

• Combination of words, initials, numbers etc (e
...
Head and
shoulders shampoo)
...

Courtesy:
www
...
com

Characteristics of Effective Brand
Names
• Be easy to pronounce, recognize and remember
...

• Suggest something about a producer’s use of
attributes
...

• Be applied to a whole line of products (Calvin Klein
clothing)
...

• Convey a different advantage (Savings plus)
...
carlprosper4nugs,yolasite
...

• Introduction is a period of slow sales growth as the
product is introduced in the market
...

• Maturity is a period of slowdown in a sales growth
because the product has achieved acceptance by
most potential buyers
...

Courtesy:
www
...
com

STRATEGIES FOR COMPETITIVE
MARKETING
SWOT-Analysis: the overall evaluation of a
company’s strengths, weaknesses, opportunities,
and threats is called SWOT analysis
...
carlprosper4nugs,yolasite
...
carlprosper4nugs,yolasite
...
carlprosper4nugs,yolasite
...
These policies should cover
distributor’s relations, advertising standards,
customer’s
service,
pricing,
product
development, and general ethical standards
...
carlprosper4nugs,yolasite
...


Courtesy:
www
...
com

Bases for Organizational Market
Segmentation
• Programmed buyers
• Relationship buyers

• Transaction buyers
• Bargain hunters

Courtesy:
www
...
com

Bases for International Market
Segmentation
Just as companies do in their domestic markets,
international firms would need to group their
world markets into segments with distinct
buying needs and behaviours
...
carlprosper4nugs,yolasite
...
)
The following are how the segmentation can be
done:
• They can segment by geographic location,
grouping countries
• Some world markets segment on economic
factors
• Political and legal factors
• Cultural factors
• Many companies also use what is known as intermarket segmentation
Courtesy:
www
...
com

TARGETING THE SEGMENT
Market segmentation lets a firm tailor or
develop products and strategies to appeal to
the preferences and unique needs of specific
groups of customers
...


Courtesy:
www
...
com

Criteria for Effective Segmentation
• Measurable
• Accessible
• Substantial
• Differentiable
• Actionable
Courtesy:
www
...
com

Segmentation Strategies
• Undifferentiated Marketing
• Differentiated Marketing
• Concentrated Marketing

Courtesy:
www
...
com

THE MARKETING ENVIROMENT AND
THE MARKETING SYSTEM
• Microenvironment : Marketing management’s
job is to build relationships with customers by
creating customers value and satisfaction
...

Courtesy:
www
...
com

THE MARKETING ENVIROMENT AND
THE MARKETING SYSTEM (Cont
...

The
physical
environment,
socio-cultural
forces,
demographic factors, economic factors,
scientific and technical knowledge, and
political knowledge, and political and legal
factors
are
components
of
the
macroenvironment
...
carlprosper4nugs,yolasite

---