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Nature of Marketing-What is marketing-Why use it?
Definition: Management process responsible for identifying, aniticpating and satisfying customer
requirements profitably (Chartered Institute of Marketing: 2001)
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Includes coordination of four
elements called the 4 P´s of marketing
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Marketing differs from selling because: Selling concerns itself with the
tricks and techniques of getting people to exchange their cash for your product
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And it does not, as marketing invariable does, view
entire business process as consisting of a tightly integrated effort to discover, create, arouse and
satisfy needs
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Levitt –HarvardBusiness School)
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About giving customers what they want, identifies and anticipates customer
requirements, fulfils customer requirements profitably, offers and exhcanges ideas, goods, and
services
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Need-states of felt deprivation (physical (food, clothing), Social (sense of belonging), Individual
(status, knowledge)
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Demand: wants that are packed
by buying power
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Satisfaction: difference between a product or services perceived
performance and the buyer´s expectations
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Product orientation: focus on goods, only quality matters, aim to make profit,
jsut look at the quality buy it just for that, consumers favour products that are available and
affordable, increase production and reduce cost, achieve scale economy, make profit through
volume, consumers favour products of highest quality, performance and innovative features,
marketing myopia: focusing only on existing wants and losing sight of underlying consumer needs
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Marketing orientation: focus on
customer needs, aim: defining customer needs, make profits, let me find out what you need,
determine needs and wants of target markets, coordinate all marketing activities affecting
customers, make profit by building long-term relationship with customers by offering value and
satisfaction
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Effective marketing mix: matches customer needs, matches corporate resources, creates
competitive advantage, well blended
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PRODUCT SOLUTION TO A PROBLEM
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Building relationships
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Creating problem
and selling you the resolution, pumping out products
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Customer orientation
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Use it to: communicate, deliver, create value to
the customer
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Main focus providing customer satisfaction
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Micro and Macro environmental forces
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Marketing balances internal capabilities and resources with external
opportunities and the nature of the competition
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Environmental factors affect all
elements of the marketing mix
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Micro environment: the company (senior management, finance, R&D, purchasing,
procurement, manufacturing and distribution, accounting and taxation), suppliers (monitor price
changes in raw materials(inputs) build relationship with suppliers, integrating suppliers within
organisational structure), marketing intermediaries (resellers-retailers, online, wholesalers, physical
distribution firms-logistic and transport, marketing services agencies-marketing research, advertising
agencies, affiliates, social media, financial intermediaries-banks, insurance companies) customers
(consumer markets-individual households and consumers, business markets-business and
organisational buyers, reseller markets- wholesalers, retailers, institutional markets- school, hospital,
government, international markets-buyers in other countries), competitors (offer customer value and
satisfaction more than the closes competitors, position offerings in minds of consumers, create and
sustain a competitive advantage), publics (financial-banks, shareholders, lenders, institutions, mediatv, newspapers, social media public relations, government-parliament, political parties, local
government, citizen action-community groups, voluntary organizations, charities, local-public , local
communities, internal-shareholders, unions, employees, incorporates the forces close to the
company that affect its ability to serve its customers-controllable variables
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Political/legal (national and local gov, economic common markets, regulatory bodies, legislation
relating to business and enforcement powers, ethics and social responsibility), Economic (market
structures, economic growth, unemployment, currency fluctuations, gov policy, taxation, interest
rates, trading blocs), Socio-Cultural (demographics (age, income, gender, occupation, household
soze, population, life expectanc) societal structures (family structure, fam unit and size, changing
roles of men women and children), culture, immigration, attitudes ( values, lifestyle choices, fashions,
fads, ethical and moral issues, consumer concerns (health and safety, animal welfare, environment,
sustainability, personal and business ethics
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– PESTEL
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) , bargaining power of supplier (many

buyers and few, differentiation of products, suppliers threaten to integrate forward into the industry,
buyers do not threaten to integrate backward into supplier´s industry, industry is not a key customer
group to the suppliers) , buyer (many sellers and few buyers, standardization of products, buyers
threaten to integrate backwards into the industry, suppliers do not threaten to integrate forwards
into the buyer´s industry, the industry is not a key supplier group for buyers
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) SWOT: structured approach to evaluating the strategic position of a
business by identifying its strengths (Internal and controllable variables), weaknesses, opportunities
and threats (external and uncontrollable variables)(Jobber)
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MICRO ENVIRONMENT / this is what you can control: suppliers
(maintain relationship, prices, distributes, customers (social media), competitors (their products,
activities), publics (factory pollution), Maintaining a very good relationship with suppliers is incredibly
important =website, social media, Reflection = where you can sell, type of materials you need to use,
labour produce it?, quality, what problem is this solving, fashion,
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Fact
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Monopoly buyer – only one – British sugar
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Consumer
buyer behaviour refers to the buying behaviour of final consumers- individuals and households who
buy goods and services for personal consumption (Kotler and Armstrong)
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Consumption: purchase, use, reuse, discard, recycling,
possession, and loss tangible and intangible objects, understanding the person, the activities, and
processes behind how we use objects
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Consumer behaviour model: Individual influences
(consumer resources, motivation, knowledge, attitudes, personality, values, lifestyle) situational
influences, group influences, environmental influences (culture, social class, personal influences,
family, situation), marketing mix= decision making
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) 3) Evaluation of alternatives
screening and filtering the awareness set to produce an evoked set-the set of brands that the
consumer seriously evaluates before making a purchase, this process is based on constructing
performance criteria upon which to judge choices, usually based on: self image, perceived risk, social
factors, hedonistic influences), 4) Purchase decision (varies depending on high involvement and low,

5rolesin the buying decision making process: initiator: person who begins the process of considering
a purchase, influencer: person who attempts to persuade others about the decision, decider: person
with the authority and power to make the final decision choice, buyer: who conducts the transaction,
user: the actual consumer/user of the product
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) Buying situation: 1) extended problem
solving: involves a high degree of information search as well as close examination of alternative
solutions using many choice criteria 2) limited problem solving: combination of both internal and
external information search 3) habitual problem solving: when a consumer repeat buys a product
while carrying out little or no evaluation of the alternative
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Perception: what we see, we want to
see, how we see it, what we remember, what we choose to remember (selective attention,
perception, retention)
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Group influences: culture, sub
culture, social class, reference groups, family, roles and status, affects individuals by helping to:
differentiate between essential and non essential purchases, prioritise purchases where resources
are limited, define meaning of a product and its benefits, foresee post purchase implications
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Organisational buyers – could be anyone –
army, uni, hospital etc, Individual buyer – you (get stuff from shops), individual taste, Organisatinal
buyer – big company, school (from other suppliers) 1) INDUSTRIAL CUSTOMER – take the material
and transfer into finished products
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TRENDHUNTER –
website LOOOK UP you lazy f*cker
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Focused on budget, value, money in order to give exactly what you
want
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Decision made by finance department – they decide, there is a budget for everything,
decision making is usually done by finance people BUT influenced too by: economy, tax, analysis,
energy used, how it effects the business, look at the objectives, companies strategy
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marKET research- gathering of information on a particular market for
a product or service
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Marketing
research provides information that: can be a critical strategic asset- knowledge is power, enables

companies to understand consumers better and gain deeper insights about them, enhances
understanding of the larger marketing enironment and shape their marketing strategies and
decisions accordingly, helps managers make more informed and effective marketing decisions
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Types of information can be collected from research: 1) General
market infromation: market trends, current and predicted market demand for a given product or
service, market characteristics
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Marketing research process:
businesses will either commisiion marketing research to be conducted inhouse or they will hire
a professional marketing research firm to carry out market research, collect data gather and analyse
information, and present it to them
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The process has number of stages
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Types of research information can be
gathered: SECONDARY RESEARCH AND INFORMATION: data that has already been collected and
exists as information accessible (government, databases, websites, reports, statistic, trade data,
census, publications) advantages: obtained quickly, less expensive than primary data, disadvantages:
accuracy, currency, relevance and impartialit, PRIMARY RESEARCH AND INFORMAtION: data that is
collected for the express purpose of the research where raw material is gathered first hand, can be
expensive and time consuming
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Types of data gathering/ research methods:
Quantitative research: data collection methods where data is expressed in numerical terms as
statistics, percentages, tables, charts, graphs: survey research: distributing questionnaires and
analysing results and responses, can be done face to face , online, email, phone, experiments: use of
control groups, Quantitative research methods are useful to obtain information about opinions,

feedback, attitudes, ratings, rankings, and also determine casual relationships between two
variables: celebrity edorsement leads to increased sales
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Sampling: small subset of individuals who are
drawn from a wider population amongst whom research can be conducted, data collected and the
results of that data analysis can be generalised to the whole population: conductin a research on
music prefences of 18-21 year old people and carrying out research on a small sample of university
students, census: when population is small, highly variable
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Sampling methods: Probability: random
process, each member in the population has a known, nonzero chance of being included in the
sample, Non probability: non random, subjectie, each member does not have a known, nonzero
chance of being included in the sample
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Research instrumentsqualitative: interviews: can be structured (with a specific set of questions) semi structured ( a bried
outline of interview questions but allowing the interiewee to talk freely and unstructured (no specific
guidelines but encouraging interiewees to talk freely so as to gather insights, meanings
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Other forms of research: researches can be encouraged
to gather data using field notes, photos, ideos, souvenirs, objects, arefacts, samples or simply
observe and feel and experience in order to gather data
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Questionnaire
design: plan what to measure: use secondary data and exploratory research to collect background
information, determine the format and content of each question, use a mix of questions and
question types, determine the question wording-do not ask loades questions, do not project your
own attitudes or opinions on the question wordings, keep the language neutral, determine the
sequencing of questions they need to flow logically from one to another, pre test the questionnaire it
has to be easy to use, read and complete, test the questionnaire on a small sample, identify
problems, amentd the final questionnaire before distribution
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Sequencing and scale of questions: opening questions –simple, basic
information researc focused, explore ideas, explore attributes, opinions, perceptions, feelings,
identify rankings, choices, classification information: respondent demographic profile, scales: likert
scales, semantic differential scales
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Conclusions and
recomodations-implications from research for theory and practice, recommendations for future
research, and limitations (what does it mean, what does it imply, how does it affect, theory, how
does it affect practice, strategies, practice, what can be done in future) executive summary: bried
summary of research project, findings and implications (short, succint brief for the quick reader)
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Market/marketing research is the process of
collecting information about the market and consumers
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Research enables firms to collect consumer insights and tailor their
marketing strategies accordingly
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It involves several stages from formulating the objectives to designing a plan to
specifying methods of collecting information to analysis and presentation
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SEGMENTING TARGETING POSITIONING
Segmentation: dividing a market into distinct groups with distinct needs, characteristics, or
behaviours which might require separate products or marketing mixes
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Marketers understand that they
cannot be all things to all people because buyers are markets are too complex and diverse
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Allows companies
the opportunity to enhance their profits, enables companies to examine growth opportunities and

expand their product lines and range, helps companies identify those segments in which they can
msot effectively compete in and helps develop strategies suited for that segment
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Consumers behavioural variables such as benefits sought from the
product and buying patterns, Psychographic Segmentation: lifestyle, personality
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Grouping of people in terms of demogprahic profile variables such as age and
socio economic group so that marketers can communicate to them Segmentation methods:
Organisational criteria: Organizational size, Industry Sector, geographic Location, Choice Criteria,
Purchasing Organization
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Targeting:target marketing refers to the choice of specific segments to serve, and is a key element of
marketing strategy, done by: evaluating target segment on the basis of: segment size, growth,
profitability, segment attractiveness, level ofcompetition, substitute products, power of buyers,
power of suppliers, assessing company objectives and resource
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Target marketing strategies:
undifferentiated Marketing: a market coverage strategy where a company decides to ignore market
segment differences and to develop a single marketing mix for the whole market, Differentiated
Marketing: a market coverage strategy where a company decides to target several market segments
and to develop separate marketing mixes for each, Focused Marketing: a market coverage strategy
where a company decides to target individual customers and to develop separate marketing mixes
for each, Mass Customization: the opposite to mass production, which means that all products
produced are customized to the predetermined needs of a specific customer
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Differentiating industries:
Volume Industries: an industry characterised by few opportunities to create competitive advantages,
each advantage is huge and results in a high pay off (airlines), Stalemate Industries: an industry that
produces commodities and is characterised by few opportunities to create competitive adantages,
with each advantage being small(steel, chemicals), Fragmented Industries: an industry characterised
by many opportunities to create competitive advantages, but each advantage is small (restaurants),
Specialised Industries: an industry where there are many opportunities for firms to create
competitive advantages that are huge and give a high pay off (pharmaceuticals) Positioning:
Formulate a clear, distinctive position in the target consumers mind
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Successful positioning: Clarity:
the idea must be perfectly clear, both in terms of target market and differential advantage
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Creditiblity: the selected differential advantage must be credible in the minds of target
customers
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Perceptual
mapping: useful tool for determining the position of a brand and its competitors in the marketplace,
based on consumer perceptions, its stepr are: identify set of competing brands, identify the
important attributes consumers use when choosing between brands, based on qualitative research,
conduct quantitative marketing research where consumers score each brand on all key attributes,
plot brands on a two-dimensional map
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Individual consumer needs
can be served better by segmenting the market into groups with homogenous needs, a variety of
methods are available to segment consumer and industrial markets, the criteria for successful
segmentation are-effective, measurable, accessible, actionable, profitable, the different methods of
target marketing strategies are-undifferentiated, differentiated, focused and customized, positioning
is the choice of target market and differential advantage and successfull positioning is based onclarity, consistency, creditibility, and competitiveness, repositioning is changing the choice of target
market and/ or differential advantage and can done be done as-iamge, product, tangible, and
intangible repositioning
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Physiographic: lifestyle, personality
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Orientation
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Geographic: where are you from
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Target marketing – mass market products – Cola, decide if you
need to change your product or not
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Product portfolio: product mix
width: numb of product lines a company offers, Products mix depth: numb of products within each
product line, Product mix length: total numb of prod that a company offers (depth x width)
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Honda´s
product line (automobiles, garden power tools etc) has a connection based on the engine
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TAKE PAPER FROM BUSINESS
NOTES
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5% are willing to try new innovations as they are openminded, adventurous, often younger, better educated, and mroe financially secure, try new things
because they like new things
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5% look at new products very differently than
innovators, they consider the social aspect (such as prestige) of being the first to own a product, they
are heavy users of the media and the mroe mainstream groups (the early and late majority) rely on
early adopters for cues on the next big thing
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If early adopters accept
a new innovation then the early majority will begin to purchase, once the early majority has adopted
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Late majority (34%) older and mroe conservative than other groups, they will not adopt a product
that they consider risky, adoption by the late marjotiy will only occur if the product s considered
a necessity or if social pressures are great, Laggard (16%): great followers of tradition and are the last
to adopt an innovation, by the time this group has adopted an innovation the product is often made
obsolete by the next innovation
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Product
Strategies: Ansoff matrix
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Stages in product planning: Idea generation, Idea
screening, Concept development, business analysis, Market testing, Commercialization
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AND
MORE ON THIS
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Concept or Breakthrough
changes are „new to the world“ products that alter everything
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Screening (preliminary assessment): critical decision, fisrt commitment of resources,
inetment decision in the absence of financial information, more a decision „not to reject“ rather than
to „accept“, 4-Part model: does the product fit within the company´s desired ade of activites? Can
the proect be completed using the company´s current or obtainable resources? Qualitative IssuesManagers need to screen the projects against factors that they think are important, projects can be
rated against these factors on a scale of 1-10
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Concept development: stage involves a mroe detailed definiton of the ideas that passed the
preliminary assessment (screening), market research to define the ideal product in the eyes of the
customers, definiton of technical specification, market testing the concept
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Development: usually the most expensie stage: 65% of the budget spent
here (typically)- a prototype is built at this stage (Initial screening, business analysis, development,
testing, lanuch=total
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Launch-Commercialisaton: coordination of activities is important for a strong launch:
advertising, sales promotion, distribution
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Risk brings porduct to market, don´t invest enouch in the researh= higher risk
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Price: exchange value of a product or service in
the marketplace, most closely related element of the marketing mix to revenue as the product, place
and promotion each have a cost assoiated with them, can aslo be the easiest to change since a price
change can literally be implemented over night, should be aligned with the overall marketing
strategy of the brand
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Effects or influence prices market structure(monopoly, oligopoly, pure
competition, monopolistic competition), direct or indirect , effect on distributors/ retailers, more
likely to stock if the margins are attractie, legal factors
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Strategies: pricing strategy: identifies what
a business will charge for its produts or services: develop price objectives: Profitability(setting price
to meet specific profit target), Meet competiton (allows a company to position its product close to
a competitor if price is a key differentiator) Prestige (many brand enjoy perceptions of high quality or
luxury, since price is often used by buyers as a proxy for quality,high prices can help maintain the
desired image), Volume (if a company can reduce its cost through achieving economis of scale and or
the experience curve they may opt to price its products low in order to generate significant volume,
similar to penetration pricing, there are numerous reasons for using this type of strategy: gain
market share to limit competitors from entering, to have an entry point in a crowded market,
nintendo used volme pricing with its Wii game system and wuickly exceeded the sales volume over
Play Station and Xbox
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New product strategy: (penetration)- the product or service
offered at a lower price compared to its competition, the produt may be sufficiently appealing to
command a higher price, a marketer might perfer to set a low price so as to quickly generate sales
volume, market segment peentration, and production scale
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(skimming): prodcut price is set high upon its introduction and then lowered over time, to generate
as much profit as possible before competitors enter the market, innovators and early adopters are
likely to pay a higher price for the latest cool products, key: prices will fall over times as competitors
enter the market: product outperforms others, early adopters value product, demand is inelastic,
expected demand can´t be met, high quality is desired position
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A company can have
three brands in a category and these can be priced at the low end, middle, or high end
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The vehicles they offer range from the low-end
(Chevrolet) to high-end (Cadillac), and all points in between
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Within a brand family it is important that each product is priced in similar
fashion
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Each
of these products are connected to each other via their shared brand name (Johnson’s Baby)
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Other pricing strategy: Storefront pricing: based on brick and mortar
sales, based on the required markup to support a physical location, online retailers do not incur the
same expenses and thus can charge lower prices than traditional merchants
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Tiered pricing: different product at different price points to appeal to

wider market audience, used most noticeably with telecommunications companies through offering
various levels of services or plans that cover a wide range of pricing
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Auction: Forward auction pricing, Reverse auction pricing: Forward auction are where a buyer
announces their desire to purchase a certain product and a merchant responses with the price they
are willing to sell the product for
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Reverse
auctions are similar to forward auctions except that the buyer also states the price they are willing to
pay
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com
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Trade in: receiving cash value for trading in an old item for a
new purchase, applies to more than just automobiles
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Psychological pricing: 39
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Promotional pricing 20 p off or 10%
extra free, Buy 1 get 1 free, reference pricing, captive pricing, pricing below costs, concessions,
obsolete stock
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WRITE MORE ON THIS
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Value
(what is important to who) vs Worth (impacts price, numerical number)
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Pricing – only P which brings in revenue
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Marketing channel is a network of all parties involved in moving products or
services from producers to consumers or business customers, important for: gathering infor, develop
communications, negotiate prices, place orders, store and transport, provide credit, make salesfunctions must be performed by some member of the channel, the manufacturer must take on all of
these funcitons, reaping the financial benefits, and also assuming all costs
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Customer want the product to be: available in the most conveinet
location, at the right time, right quantities, with supporting services (pre sales, sales, after sales)
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Industrial Distribution Channels: Produces Industrial customer, P- Agent- IC, P- Distributor-IC, PAgent-D-IC
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Retailers and wholesalers
role in the supply chain: W: sorting, storing, reselling products to retailers and businesses, R: sale of
products or services to consumers
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Retailer types: speciality store (Sports authority), Department store (John Lewis), Supermarket
(Waitrose), Convenience store (Circle K), Discount store (Poundland), Off price retailer (Primark),
Superstore (ASDA, Morisons), Online retailer (amazon)
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Logistic decisions: many companies will undertake these activities

for themselves, a large majority will enlist the services of third party logistics (3PL) firms, these firms
can perform logistic tasks much more efficiently and for a lower costs by capitalizing on economies of
scale, can also help keep costs lower for their clients by offering just-in-time (JIT)delivery of key
components, in which parts of materials are delivered at hte precise time they are needed for
a manufacturing process
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Outbound logistics: movement of products from company to
customer (car buyer)
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Reverse logistics is the methods that are used to move products backward through the
supply chain for return or repair
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The car buyer will return to their contact point, the car dealership, who in turn will take possession of
the tire and work it back through the channel to the tire manufacturer
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(SONY is a good example) Wholesalers- RetailersConsumer
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Most important channel-strategy decisions:
distribution type: direct distribution-via adverts, direct mail, catalogues, internet, advantage:
convenience for customers, low cost os establishing customer contact, disadvantage: response to
adverts can be low, suppliers cannot demosntrate porduct, not suitable for some products ( face to
face selling: common in industrial markets, but not consumer, advantage: control over customer
service and quality of salesforce, disadvantage: cost,, direct marketing), distribution via independent
middlemen: advantage: overall distribution efficiency, sorting-middlemen hold a variety of products,
storage- helps both customers and suppliers, market acces-establishep middlemen can help new
suppliers enter markets quickly, disadvantages: less control over customer service, diluted selling
effort, barrier for new product launches: retailers want „track record“, retailers might stock
competing product already, distribution via owner operated middlemen
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Large retailers manage their own idstributon systems, even collecting from
manufacturers (tesco, ikea), growing due to: expansion in size of retailing groups, restrictions on
traffic near towns, centralised buying, potential for lower stockholding, efficiency, cheaper storaage
in out of town warehouses
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Can have multi channel too, common
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Other channel questions: custoemr service what level? (depends on customer
expectation), Order processing (how? Increasingly automated), Inventory control (how much, IKEA?
JIT), Warehousing (where, how many? Balance between cost and custoemr service), Transporation?
How? Conflict in Channel Management: Sources of channel conflict: different goals (profit vs
volume), differences in desired product line (competing products, own label), Multiple distribution

channels (clarks shoes), inadequancies in performance
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Ethical issues in distribution: Slotting allowances: fee paid to retailer for shelf
space, discriminates against small suppliers,Grey markets: parallel importing perfumes, branded
clothes, Exclusivedealing: powerful suppliers restrict distributors- beer markets, (pepsi,
coke),Restrictions in supply: distributors refuse to stock goods from small suppliers (France 10% of
shelf space has to be given, by law, to small suppliers), Fair trading: small suppliers have to accept
very low prices
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(Kotler, Armstrong, Wong nd Saunders)
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Characteristics of services – IHIP: Itangibility(not possible to touch or feel), Heterogenity (precise
standardisation is difficult) Inseparability (cannot be separated from the provider) Perishability
(cannot be stored, hotel rooms), Ownership ( doesn´t result in a property transfer)
...
USA, Europe, Australia about 75% of GDP accounted for by
services sector
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Marketing challenges: 8 common differences: most service products cannot be
inventoried, itangible elements usually dominate value creation, IHIP factors, serices are often
difficult to visualize and understand, customers may be involed in co-production, people may be part
of the service experience, operational inputs and outputs tend ti vary more widely, the time factor
often assumes great importance, distribution may take place through nonphysical channels
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, emphasis as much on
processes as outcomes, can only be evaluated after it has been consumed, services purchases may
be perceied as more risky than goods- Role of marketing involes the provision of tangible evidence
and brand building
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Marketing may seek to standardise the encounter throscripting or
machine delivery or tailor the service to individual requirements
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Perishability: services cannot be stored, capacity is not used, that
time to sell is lost forever, marketing must carefully manage supply and demand to smooth out oeaks
and troughs
...
) Marketing´s job is to
provide tangible evidence of a satisfactory experience
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Implications: customers may be turned away, harder to evaulate service and distinguish
from competitors, greater risk and uncertainty perceived, interaction between customer and

provider but poor execution can affect satisfaction, Marketing related tasks: use pricing, promotion,
reservations to smooth demand, work with ops to manage capacity, emphasize physical clues,
employ metaphors and vividimages in advertising, educate customers on making good choices, offer
guarantees, develop user friendly equipment, facilities and systems, train customers, provide good
support
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ProcessesProcedures (form filling), Information (webpage), Policies(Argos 28 days), Capacity levels(easyjet),
Mechanisation (package holidays),Speed/timing(trains), Queuing(one in front), Accessibility
(cashpoints)
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Physical Evidence: Environment (furnishings, colour, ambience),
Facilities(vans/aircraft), uniforms, paperwor) Tangible Evidence (labels, tickets, packaging)
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Gaps Model of
Service Quality: Customer Gap-Expected Service- Perceived Service- Serice Delivery, Customer Driven
Service Designs and Standards, CompanyPerceptions of Consumer Expectations-External
Communications to Customers
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Key facors
leading to gap between customer-driven service designs and standards and management
perceptions of customer expectations: Poor service design: unsystematic new service development
process, vague, undefined service designs, failure to connect service design to service positioning,
Absence of customer driven standards- lack of customer driven service standards, absence of process
management to focus on customer requirements,absence of formal process for setting service
quality goals, Inappropriate physcial eidence and services scape: failure to develop tangibles in line
with customer expectations, service escape design that does not meet customer and employee
needs, inadequate maintenance and updating of the service scape
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Key factors leading to gap between service delivery and external communications
to customers: Lack of integrated services marketing communications –tendency to view each
external communication as independent, not including interactive marketing in communications
plan, absence of strong internal marketing program, Ineffective management of customer
expectations: absence of customer expectation management through all forms of communication,
lack of adequate education for customer, Overpromising-in advertising, in personal selling, through
physical evidence cues, Inadequate horizontal communications-insufficient communication between
sales and operations, advertising and operations, differencies in policies and procedures across
branches or units
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Adertisements: tv, radio, poster, cinema, magazine, internet,
advertisement, university prospectus, bumper sticker, phone, card, in elevators, public coneiences,
automated teller machines, underground escalators, backs of supermarket, receipts, direct mail,
political manifesto, film trailer, manufacturer´s label sewn on the outside of clothes, shop name on
carrier bag, BBC logo in the corner of a videoclip
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Models of response: Aida
Model: attention-interest-desire-action
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Innovation Adoption Model: Awareness-Interest-Evaluation-TrialAdoption
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Developing an advertising strategy: marketin strategy-identify and understand target
audience-Define advertisin objectives-Set the advertising budget-message decisions,media decisionsexecute campaign-evaluate advertising effectiveness
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Positionin using advertising:
can be based on: product characteristics and customer benefits, price, product use, product user,
product class, symbols, competition
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Message options: contentrational, emotional moral, Structure-draw conclusions, type of argument, Format- layout, words,
body language, Source- expertise, trustworthiness, congruity, Remember: selective,
attention,sleective distortion and retention
...
Rach and Frequency: rach numbe of different target users/ potential users who are
exposed to a messae at least once during a specific period of time, Frequency: number of times an
individual is exposed to a given message during a specific period of time, Cost per contact: cost of
reaching one member of the target market (allows comparions across marketing communications
options)
...
Setting the advertising
budget: Percentage of Sales, Affordability, Matching Competition, Objective and Task
...
80% are

more likely to buy soemthing if recommended by friends ors family, 67%purchases influenced by
word of mouth (mc Kinsey), 50% actively seek out the advice of friends before buyin a new product,
79% concerned about the decline in community, 67% regular surfers see the internet as the first
place to look for information (TGI)
...
Levels of control and creditibility: the level of control
varies with each communication tool
...
Direct marketing offers
greater control of the message, but has low creditibility
...
Sales promotion objectives: fast sales boost (meet revenue
targets), encourage trial (introductory offers), Ecnourage repeat purchase (build relationships),
Stimulate purchase of larger packs (deplet stocks), Gain distribution and self space (building brand)
...
Consumer promotions: bonus pack, free sample, prize
promotion, loyalty card, premium, money off
...
Sponsorship: business relationship between provider of funds, resources
or services and individual event or organization that offers in return some right and association that
may be used for commercial advantage, TO: gain publicity- creating entertainment opportunities(for
commercial advantage), fostering favourable brand and company associations (develop a strong
brand), Improving community relations (good corporate citizen), creating promotional
opportunities(sales), types: sports, arts, community activities, teams, tournaments, individual
personalities or events, competitions, fairs and shows, fashion (face of h and m)
...
World expo:
huge impact (comparable to the Olympics and the FiFA world cup), since 1851 (London), National
Building, Technoloy, industrial, horticulture, cultural exchanes, opportunities after the exhibition, the
previous way Yeouse, South Korea – The living ocen and Coast,next is Milan, Italy- Feeding the
planet- energy for life
...
PR vs
Publicity: PR: management of communications and relationships establish goodwill and mutual
understanding between an organization and its public
...
PR achieve for firms: prestige and reputation, promotion of products, dealing with issues
and opportunities, goodwill of customers/employees, overcoming misconceptions, goodwill of
suppliers and dsitributors, goodwill of government, dealing with unfavorable publicity, attracting and

keep good employees
...
Characteristics of
publicity: high credibility (sometimes), no direct media costs, lose control of publicaton, content and
timing
...

MARKETING STRATEGY AND PLANNING
Planning: process by which businesses analyze the environment and their capabilities, decide upon
the course of marketing action and implement those decisions (Jobber and Fahy), Strategic
Marketing Planning is strategic fit between the organization´s goals and capabilities and its changing
marketing opportunities
...
Steps: defining the purpose and mission, setting objectives
and goals, carrying out the strategic audits, designing the business portfolio, developing detailed
marketing plans
...
Business mission: organization´s purpose,,
usually setting out its competitive domain, that distinguishes the business from others of its typeenduring and specific to the organization (chemical processing firm (technology centric),
manufacture furniture (product centric), connect individual buyers and sellers in the world´s online
market place (ebay), help people experience the emotion of competition, winning and crushing
competitors (nike)
...
Marketing audit: systematic examination of a business´s marketing
environment, objectives, strategies, and activities, with a view to identifying a key strategic issues,
problem areas and opportunities
...
Design Business Portfolio:
collection of businesses and products that make up the company, deciding which products should be
sold in which markets: Ansoff Matrix (market penetration or expansion, product development,
market development, diversification), deciding the future of individual products and brands relative
to their profitability and market share (BCG MATrix (stars, dogs, cash cows, problem children),
deciding competitive position in the market (Porter competitive strategies)
...
Organization and
implementation: carry out the plan, design action strategies, plan budgets, plan timescales
...
Always have a sensible plan, only depart of the whole business which makes money is
marketing, deciding what are your capabilities, figures out the action “What can I do, what I’m
capable to achieve” Figure out where are the opportunities, prioritize resources Steps in the process:
Purpose (mission) – who you are? VERY IMPORTANT, a mission statement, what business am I in?
Not about what you make, what you do, more likely VISION, PURPOSE, DEFINE, have to have an
abstract expression who the company is
...
Strategy: ties together with planning,
carried out by senior management, answers: what business do we want to be in, where are we now,
how do we get there? Examines long term overall business direction, tactical planning is done by
middle and operational management and focuses on functional goals
...
Competitive
strategies: choosing the correct competitive s is fundamental to success, firms need to understand
how and where best they can compete in the marketplace and the overall industry, tools such as
porter will help a firm understand the nature and intensity of competition in a given industry and the
potential risks and rewards of market attractiveness in the industry, swot exercise will highlight
potential for the firm to organise its activities
...
Types of generic strategies: 4
types: Cost leadership s: firm strives to be the lowest cost supplier and thus achieve superior
profitability from an above average price-cost margin, Product Differentiation S- firm strives to
differentiate its product (or service) from rival´s product such that it can raise price more than the
cost of differentiating and thereby achieve superior profitability, Focus S- firm concentrates on a
particular segment of the market and applies either a cost leadership or a differentiation strategy
...
Stuck in the middle-caught between cost
leadership and differentiation: worst strategic error, or to try simultaneously to pursue all the
strategies, because it would mean that a firm is not able to achieve any of them because of their
inherent contradictions
...
Sources of competitive advantage: conducting a value chain
analysis-assessing all the activities of a firm and categorizing them into primary and support activities
in order to locate superior skills and resources, sources: superiors skills, resources, core
competencies
...
Create and maintain cost leadership: firms have to identify and understand the key
cost drivers-separate factors that affect costs of the firm, example: economies of scale,
manufacturing, location, capacity utilization, labour costs, government regulations, firms will have to
manage these cost drivers for effective maintain of cost leadership
...
Ansoff Matrix: simplifies company´s
competitive situation into 2 simple variables products and markets helps companies decide their
strategic thrust
...
Resource based strategies: strategies
draw from an organization´s internal resources and capabilities where: resources are tradable and
non specific to a firm, capabilities are specific to a firm, helps a firm decide between strategy as Fit
Strategy as Stretch, Fit: traditional way- s is compromise between organizational capabilities and
environmental opportunities, Stretch: innovative way-examining resources and resourcefulness,
ways of making innovative use of resources, also called Leverage-concentrating resources to
establish and achieve Strategic Intent, Examining far beyond present possibilities and look at
potential possibilities
...
GLOBAL STRATEGIES – How to enter the foreign market? Export strategies (indirect),
contractual strategies (franchising, licensing), investment strategies, INVESTMENT STRATEGIES – 1
Solve venture 2) Join venture Solve venture – new establishment, acquisition Join venture – new
establishment, acquisition SWOT ANALYSIS – based on data! Numbers result: how to create
marketing
strategy
...

PIGGY
–
BACKING
ELECTRONIC AND DIGITAL MARKETING
▪

E-businesses: use any form of electronic and digital technology in their operations, e
marketing is a subset of the broader concept of e business and denotes electronic marketing
or marketing activities carried out through electronic and digital mediums, internet and or
web marketing is one of the many ways by which e marketing is practiced and it indicates
that a significant part of the business is conducted over the internet world wide web, the
fundamental rules of business providing customer value better than the competition, making
profits, and creating and sustaining competitive advantage, remain unchanged for e
marketing
...
Typical stages of an
online shopping process: Orientation (triggers from social media, chat rooms, social
networks, online mentions, chats, microblogging sites-driving people to the website,
Research Information-search engines, rankingws with AdWords, mentioned in portals,
marketplaces, affiliates, superstitials, sponsored pages, Communication-action uest book,
user groups, social networks, own user groups, own websites within social networks, Action-

quick buying buy now links, affiliates, direct buying possibilities QR codes
...
Limitations: delivery times, information
overload, access to technology, security and safety, cost implications, impersonal experience
...
History of internet applications: Internet Applications
have evolved over different generationsCurrently between third and fourth generation –
Web 3
...
0Commonly used applications such as email and websites which
developed on Web 1
...
Email applications are the oldest on the
internet: Web 1
...
0 email methods moved to more responsible approaches –
Permission Based – but were still comparatively ineffective due to poor segmentation and
weak personalisation methods and development of spam filters Web 3
...
Websites are also among the oldest
applications:Web 1
...
0
sites became more attractive and paid attention to features like graphics, colours, usability,
navigability, information , and e-commerceWeb 3
...
0 EWOM worked
largely on email and developed through the use of portals, discussion boards, chatrooms etc,
later moving to video sharing networks like Youtube Web 2
...
0 EWOM will be even more
interactive and pervasive
...
Email types: (emails and newsletters)
outbound, inbound (customer feedback), can be used for cold calling, sending promotional
offers, keeping in touch with customers, emails can be generated via mailing lists,
accumulated in internal databases and can also be through co branded emails, third party
newsletters, and in house mailing lists, creative use of email design can bypass spam filters

and pique customer interest, still one of the most cost effective methods of marketing and
their effectiveness can be measured through metrics such as bounce rates or non delivery
rates, open rates, click through rates, and response rates
...
It is important for websites to cater to the expectations and needs of different
types of web visitors, be compatible with multiple platforms, links, access devices,
bandwidths, speeds, and OS, have no difficulties with the loading and downloading of
graphics and flash images, and cater to multiple language and access (disability) formats
Websites must be attractive with appropriate use of design, colours, copy, font size,
navigability, page links, and search functions
...
Types of websites: Transactional or E commerce (etailing
– providing products for online purchase), Services Oriented Relationship Building
(information to stimulate purchase and build relationships), Brand Building (Extends brand
experiences online), Portal or Media (intermediaries aggregating news and information,
acting as a gateway to a range of services), Search (providing search facilities, customising
searches), Intermediaries (expert service provision), Social Media Networks (sharing,
communication, user generated, content, ratings, reviews)
...
e
...
It needs ‘seeding’ and ‘tracking’
...
It exploits common human motivations and behaviours, utilizes existing
communication networks, and takes advantage of other’s resources Spreads primarily
through email but has transformed with the development of Web 2
...

Social Media: Primarily a Web 2
...
It involves building communities and networks online and
encouraging participation and widespread engagement Social media is meant for purposes
of communication, information sharing, entertainment and facilitating transactions and
enables multiple methods of direct personal communication – individual, one-to-one,
groups, public or private networks, online groups Social media networks and sites can be
private or public, and oriented towards information or interaction or personalised or based
on themes Social media platforms can be networks, publishing and news sites, blogs,
communities, customer service sites, bookmarking, search, or social commerce
...
Other tools include virtual learning

networks, market research, online communities, idea-based communities, brand
communities, gaming and virtual communities Social media is a critical element of marketing
communications online and can be important for businesses for purposes of customer
engagement, managing brand reputation, driving traffic to the website and using customers
for opinions, feedback, insights, collaboration, research, etc
...
0 applications
...

The growth of Web 3
...
It is a convergence of time, place,
location, technology, devices, and social media The biggest development has been in areas
of mobile phones or specifically smartphones which is the convergence of infrastructure,
technology, networks and supplier services Technologies such as RFID are widely used in
inventory and asset management, distribution of goods and services, access control, tracking
and tracing assets, promotions, in-store management, barcode technology, QR codes etc
Location based services are also used in NFD (near field communication devices), geofencing, and other contactless systems
...
g
...
Online marketing functions: Developments in technology transform
not only the four Ps of the marketing mix but also other operational functions Technology
enables businesses to gather ever-more accurate and detailed information about customer
behaviour online and use that for more accurate customer profiling, market segmentation,
targeting Consumer insights can be tapped into for market research information and
consumer behaviour online can be tracked for behavioural preferences Customer
information is gathered in databases and information repositories
...
Analytics: Sophisticated data analytical techniques can be used to analyse
a variety of customer behaviours online
...
Rapid developments in technology, and
changes in both hardware and software devices offer both challenges and opportunities to
marketers Electronic and digital technologies are now a vital business function and whole
businesses need to be built and developed around the idea of technology and harnessing its

potential Technological developments are making dramatic changes to not only the 4Ps of
the marketing mix but also changing other marketing functions such as tracking and profiling
customer behaviour, segmentation and target marketing, market research functions, and
gathering customer data The developments in non-computing devices and technologies
means that marketers will have to understand their potential in seeking greater business
opportunities

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