notes

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DIFFERENCES BETWEEN SELLING APPROACH AND MARKETING
APPROACH
SELLING APPROACH MARKETING APPROACH
1 It focuses on the needs of the seller 1 It focuses on the customers(buyers)
2. Pre-occupied with the sellers needs
to convert his productinto cash
only.
2. Pre-occupied with the idea of
satisfying the customer’s needs by
means of the products and the whole
clusters of things associated with the
product.
3. Selling tries to get the customer to
want what the company has.
3 Tries to get the company have what
the customer want.
4. Selling is highly a one way process,
that is it sends outwards from a
company a productit has.
4 It takes a two-way process, that is, it
sends inwards in the company the
information of what exactly the
customers require so that a company
can develop those required for the
customer.
5. The selling conceptonly pushes the
productto the customer.
5. It does however more than pushing a
product. It ensures that a product
offered is satisfying the customer.
MARKETING MIX
The marketing mix is a set of controllable variables that a company puts together
to satisfy a target group. It is a mixture of controllable variables that the firm uses
to pursue the sought levels of sales in the target market. These variables may be

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grouped into 4p’s or 7p’s depending on whether a productis a good or a service
respectively. Marketing decisions generally fall into the following seven
controllable categories:
Marketing mix categorisation
 Product
 Price
 Place (distribution)
 Promotion
 Process
 People
 Physical evidence.
A good is a physical tangible productthat can be stored for future use. A service is
an intangible, perishable, inseparable from the provider and heterogeneous in
nature. The marketing mix is also known as the marketing tactics which means that
the marketer can play around with these variables in order to capture the
customers’ attention and possible sales.
Sub-mixes in the marketing mix
1. Product Decisions/mix
The term "product" refers to tangible, physical products as well as services. It
involves planning the following in order to capture customer attention. Here are
some examples of the productdecisions to be made:
 Acceptable brand name, colour e.t.c
 Acceptable productfeatures.

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 Good productstyling
 Quality
 Safety
 Packaging
 Repairs and Support
 Warranty
 Accessories and necessary services requirement.
 Acceptable productsize.
2. Price Decisions/mix
This involves deciding on the amount of money the customer must pay for the
product. It is the value of a productexpressed in monetary terms. The price must
be seen to reflect the value for the money. Some examples of pricing
decisions/mixes to be made include:
 Pricing strategy (skim, penetration, etc.)
 Suggested retail price
 Volume discounts and wholesale pricing
 Cash and early payment discounts
 Seasonal pricing
 Credit terms
 Payment periods.
 Price discrimination
The marketer can play around with this price version in order to achieve a sale.

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3. Distribution (Place mix) Decisions
This refers to the various activities that make a productaccessible and available to
the target customers. It is about getting the products to the customer. Some
examples of distribution decisions include:
 Channels and channel members e.g wholesalers, agents, retailers etc.
 Market coverage (inclusive, selective, or exclusive distribution)
 Specific channel members
 Inventory management
 Warehousing
 Distribution centres
 Order processing
 Transportation
 Reverse logistics
 Location.
The marketer can use or pass through any of these channels to bring a productto
the customer. Channels refer to the routes through which the products pass from
their point of production to the point of purchase or consumption.
Channel members also refer to the individuals and organization involved in this
physical movement of goods and services with information from the providers. It
involves:
 Ordering process
 Inventory controls
 Transportation services
 Ware housing

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The marketer may need any of these process to deliver the productwhere, when
and by the convenient means.
4. Promotion Decisions/mix
These concerns the communication facilities used by a company to draw the
attention of customer to it’s products. It includes the following variables:
 Advertising
 Personal selling & sales force
 Sales promotions
 Public relations & publicity
 Marketing communications budget
a) Advertising: this is a non-personal form of communication which
aims at informing, persuading and reminding customers about a
product. It is paid for
b) Personnel selling: this is the use of salesmen to reach, persuade and
inform the customers. It is a face to face between a customer and a
sales representative of the company.
c) Sales promotion: these are short term incentives given to customers.
These include- discounts, trade shows, coupons, samples, free trail
etc.
d) Public relations: it involves creating a good image.
In marketing a physical good customer can see what you are selling. Hence
marketers usually rely on the 4p’s (product, price, promotion and place). But in
marketing a service, we have what is called the service marketing mix- the
extended marketing mix (3p’s) –physical evidence, process and people.

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5. Physicalevidence:
This is the material/ tangible part of a service. This includes the surroundings of
the selling points. It includes all those elements in the surroundings of the
exchange point for instance the office environment matters.
Physical include:
- Office appearance (inside)
- Building appearance(cleanness)
- Compound appearance such as flowers
- Parking spaceavailability
- Shades, trees in the compound etc.
6. Process:
This refers to the manner in which various activities have got to be performed
so as to deliver the service to the customer. we could consider process as an
activity which the customer has to take part in. for instance, withdrawing
money from the bank would involve the customer going to the bank, may be
queuing and filling out money withdrawal forms.
It deals with the stages which a productpasses through before it is consumed.
The process tends to take place at a point of sell. This is why some goods don’t
need further processing other than what was done in the factory.
The service however, cannot be supplied without processing it to separate it fro
it’s providers. The provider should not be consumed together with the service.
7. People:

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This element is commonly important in service marketing. The people involved
include the service provider (salesmen) and the service receiver (customer). The
salesmen must portray a good image of the organization it’s self.
The salesman must be good personal selling since the service is inseparable
from the provider. The salesman qualities should be persuasive enough to lead
to a sale.
The other element of people mix is a customer. The customer must be the actual
one with purchasing power to buy the service.
Since the service is produced and consumed simultaneously, both the service
provider and the service consumer must be physically present for this exchange
to take place.
The service mix also gives prominence to the people/staff that a company uses
to deliver the service. You will recall the adage that a company is as good as the
people it employs. Appearance, attitude, commitment, behavior, skills of the
people are therefore the most important element of any service or experience.
Services tend to be produced and consumed at the same moment with the
human presence and involvement of both the provider and customer. We recall
that people buy from people that they like, so the attitude, skills and appearance
of all staff must take this reality into account.

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MARKETING ENVIRONMENT
Marketing environment refers to the factors that affect a firm's business. It
consists of the actors and forces outside marketing that affect marketing
management’s ability to develop and maintain successful transactions with its
target customers. Market environment is a marketing term and refers to factors
and forces that affect a firm’s ability to build and maintain successful relationships
with customers.
Environmental factors affect organizations and organizations affect their
environment. The marketing environment offers both opportunities and threats.
Companies must use their marketing research and intelligence systems to watch the
changing environment and must adapt their marketing strategies to environmental
trends and developments.
The marketing environment consists of a micro and macro environment. The micro
environment consists of the forces close to the company that affects its ability to
serve its customers. These factors include, suppliers, marketing intermediaries,
customers, the company its self, competitors and publics. The macro environment

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consists of a external macro forces that include economic, social/cultural ,
political/legal, technology, natural and demographic forces.
The macro environmental factors
Macro-Environment factors influencing the business of organization are out of
control of the firm. They are largely uncontrollable forces that directly and/or
indirectly impact the firm. Environmental changes are inevitable. Changes in the
environment create opportunities and threats for the firm. They include the
following:
1. The economic factors:
The economic environment consists of factors that affect consumer purchasing
power and spending patterns. It is a significant force that affects the marketing
system of any organization. Factors to consider under the economic environment
include:
a) Inflation: it is the general rise in prices that people must pay for goods and
services. Prices of goods and services keep increasing to high levels. And
when price rise at a higher rate than the people’s incomes, this can lead to a
reduction in consumer buying power. Inflation also means that there is too
much money chasing too few goods. This is a situation in market that is not
desirable.
b) Interest rates: when interest rate is high, consumer purchases are affected by
whether they think interest rates increase or not. With high interest rate,
borrowing is limited to lower levels.
c) Unemployment: when the levels of unemployment are high, this leads to
low saving, then to low level of investment and consequently to the vicious
circle of poverty. Unemployment affects marketers because it reduces buying

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power. Marketers need to be aware of the following predominant economic
trends.
d) Income distribution and changes in purchasing power: when consumer
purchasing power reduces as in an economic recession, value-for-money
becomes a key purchasing factor. Marketers must pursue value-based
marketing to capture and retain price conscious customers during declining
economic times, unlike boom periods when consumers become addicted to
personal consumption.
e) Changing consumer spending patterns: changes in chief economic
variables such as income, cost of living, interest rates, savings and borrowing
patterns have a large impact on the market place.
2. social-cultural factors: culture is a set of beliefs, values, preferences and tastes
handed down from one generation to another. The cultural environment is made up
of institutions and other forces that affect society’s values, perceptions, preferences
and behaviors. More to this, culture implies a totally learned and handed down way
of life. It includes the way people behave, the way they eat and what they eat,
sexual relationships, way of dressing is culturally determined.
Therefore , culture is defined as the sum total of beliefs, knowledge, attitudes of
mind and custom to which people are exposed in their social conditioning.
Culture keeps on changing from time to time. Culture is exemplified in language,
religions, customs, value systems, education, and aesthetics. Different cultures
have different ways of doing business which means that people from different
cultures have different expectations of meetings.
Culture embraces the following aspects:

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a) Beliefs and Values: beliefs are perceived states of knowing or cognition.
Values are the comparatively few key beliefs. Beliefs and values are
relatively enduring and are fairly widely accepted as a guide to culturally
appropriate behavior. Beliefs affect desires for goods and services, meaning
for colours, symbols and words, and the perception of the appropriate style.
b) Customs: These are modes of behavior which represent culturally approved
ways of responding to given situations. There are various types of social
behavioral norms. These include folkways, conventions, etc.
- Morals:these are significant social norms and these include moral
imperative and taboos.
- Laws:the formal recognition of the morals considered necessary in the
interest of the society as a whole, with imposed sanctions of violation.
c) Artifacts: culture embraces many aspects including all the physical tools
designed by human beings for their physical and psychological well-being.
this includes the works of art, technology, products, building etc.
d) Rituals: this is defined as a type of activity which takes on symbolic
meaning, consisting of a fixed sequence of behavior repeated over time.
Ritualized behavior tends to be public, elaborate, formal and ceremonial like
religious services, marriage ceremonies, court procedures, sporting events.
e) Language and symbols: language is an important element of culture which
makes learning and sharing of culture possible. In order to have a shared
meaning in communication, there is a need to have a common language. The
messages can be sent from one party to another using different types of
communication methods and this can be verbal, non-verbal and written
communication.
Symbols carry different meanings and associations for different people. This
is because symbols are an important aspect of language and culture. For

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example black colour in Uganda symbolizes mourning when someone has
died, white symbolizes purity. it is usually used by brides at wedding
ceremonies.
f) Religion: religion is also an important factor which influences culture and
consequently affecting marketing of goods and services. Religion can affect
market entry especially if there are religious conflicts based on different
beliefs. This is common in areas of dressing codes, types of foods sold e.g.
selling pork and alcohol in a moslem dominated market, the images shown
in promotions for example if the ladies promoting products are dressed in
miniskirts, this would be indecent to the moslem community.
3 political and legalfactors:
Politicalforces: Marketing decisions are strongly affected by developments
in the political environment. The political forces have an impact on the
businesses in the environments. Before establishing the business, the company
must first find out about the following:
a) The political stability of the government: rapid changes or political unrest
make it difficult to estimate reactions to an importer or a foreign business.
b) The ideology of the government and its role in the economy will affect the
way in which the company will be allowed to trade, and this may be
embodied in legislation.
c) In case of international markets, the government’s attitude to the firm’s
home government or country may affect trading relations. More to this, the
nature of the goods or services being offered may affect the degree of
interest which a government takes in a particular trading deal. The more

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important the goods to the economy of a certain government, the more
interest will be taken.
d) Political risk is common especially with reference to the overseas
investors. It refers to factors as far as wars, nationalism and arguments
between governments. In some cases, government opposition can claim
that the government is selling the businesses to international investors.
Legal forces:
Successful business markets operate in the system where there is respect of the
law. This can be fairly easy when it is in the domestic markets. Contracts are
signed when making business deals, and this has to bring out clearly the products
or services on offer, the price offered, the terms of selling. Etc. this only becomes
meaningful when there is rule of the law. It becomes meaningless when the
contract is made and there is no rule of the law to implement what is agreed on.
The legal environment are the rules and regulations that govern doing business in
the particular country. Most of them are set by the national government. These
rules may favorably or unfavorably influence business within that country.
For instance, the law of ownership- who owns what type of business in a given
country? This affects the type of business you will set up.
4. Technological factors:
Technology refers to how people modify the natural world to suit their own
purposes. Technology is looked at in terms of apparatus or tools, techniques in
organizations. The level of technological development in a country is important in
the marketing for various products. The importance of how to use the products,
support services for the products, the distribution network, communications, etc.

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The world has experienced a lot of technological forces and these have an effect on
the organisation’s product/service decisions. There are a lot of increasing advances
in technology and these are causing shorter and shorter product life cycles. This
means that the organizations must always be on the alert, carry on a lot of research
to ensure that the products are continuously updated modified and some new
products put on the market in order to keep on the market.
Every new technology replaces an older technology. Organizations that are not
embracing new technology stand chances of being out of the business. New
technologies create new markets and opportunities. The marketer should watch the
following trends in technology:
- fast paceof technological change
- Higher research and development budgets
- Concentration on minor improvement
- Impact of the internet.
A product can be improved by changing the shape of the package, improving on
the quality, presenting it as something new in the adverts depending on what is
prevailing on the market. With globalization and the opening up of the common
markets, this means that the companies must be highly advanced in technology in
terms of improving product quality, promotions in various media, use of internet to
market the product and to continuously be in touch with the market updating them
on what is on offer, what the company has done, what it is planning to do in the
near future and how it has advanced in technology operations. For instance,
international marketing may require payment on line and full time access of
internet to be able to give an immediate response to the global market.

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The growth of internet is expanding in the developing countries, but is very slow in
developed countries. In order for e-commerce to be successful, there is a need for
the marketers to ask fundamental questions. These include:
a) Who are our customers?
b) What do customers want to buy from us? How often do they buy from us?
c) What business should we be in?
d) What kind of partner might we need?
e) What categories of customer do we want to attract and retain?
In order for the organization to visualize the necessary changes at interconnected
levels, the simple introduction of new technology to connect electronically with
employees, customers and suppliers can be done using intranet, extranet or
website.
The technological environment is perhaps one of the fastest changing factors in the
macro-environment. This includes all developments from antibiotics and surgery to
nuclear missiles and chemical weapons to automobiles and credit cards. As these
markets develop it can create new markets and new uses for products. It also
requires a company to stay ahead of others and update their own technology as it
becomes outdated. They must stay informed of trends so they can be part of the
next big thing, rather than becoming outdated and suffering the consequences
financially.
5. The natural environment: the natural environment involves the natural
resources needed as inputs by marketers. Marketers need to be aware of the latest
trends in the natural environment such as the shortage of raw materials, the
increased cost of energy, the increased levels of pollution and the changing role of
governments.

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Also the climatic conditions may offer opportunities or threats. High temperatures
may lead to increased demand for beer or holidays, drought may lead to a high
demand of bottled water, and a volcanic explosion may increase the interest in
“disaster movies”.
The protection of the environment is one of the major issues in this century, the
formation of ecology movements proves that people have become more sensitive
to the environment and they will take action towards saving it.
It includes the natural resources that a company uses as inputs that affect their
marketing activities. The concern in this area is the increased pollution, shortages
of raw materials and increased governmental intervention. As raw materials
become increasingly scarcer, the ability to create a company’s product gets much
harder. Also, pollution can go as far as negatively affecting a company’s reputation
if they are known for damaging the environment. The last concern, government
intervention can make it increasingly harder for a company to fulfill their goals as
requirements get more stringent.
ANALYSING THE MICRO-ENVIRONMENT
Micro-Environment influences the firm directly. The micro environment refers to
the business itself and to all the challenges that come from inside the business.
Businesses can therefore take control over all the challenges and influences in the
micro environment. Sometimes, the micro environment is also known as the
internal environment. The micro environment refers to the forces that are close to
the company and affect its ability to serve its customers. It includes the suppliers,
distributors, and consumers, competitors, marketing intermediaries, publics and
local stakeholders whose every step significantly affects the business of the firm. It
is the internal environment or the parameters that are crucial for a firm are all

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internal or within the firm. The five pillars around which internal marketing
environment revolves are the five M's, these are:
Men
Machines
Money
Material
Markets
managing internal factors is essential for a firm to perform at its peak. It has to be
understood more than external control, improvement in any internal plans can be
made easily, if the firm works hard to improve its efficiency. The micro
environment can be explained as follows:
Marketing intermediaries: Marketing intermediaries includes resellers, physical
distribution firms, middlemen, marketing services agencies, and financial
intermediaries. These are the people/firms that help the company promote, sell, and
distribute its products to final buyers.
Resellers are those that hold and sell the company’s product. They match the
distribution to the customers.
Distribution firms are places such as warehouses that store and transport the
company’s product from its origin to its destination.
Marketing services agencies are companies that offer services such as conducting
marketing research, advertising, and consulting.
Financial intermediaries are institutions such as banks, credit companies and
insurance companies

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Middlemen are distribution channels that help the company find customers or
make sales to them. These include wholesalers and retailers who buy and resell
merchandise.
Customers: customers are the life blood of the company and satisfying needs of
customer is the basic objective. The company must study its customer market(s)
closely. Customer markets consist of consumer markets, business markets,
government markets, international markets, and reseller markets.
The consumer market is made up of individuals who buy goods and services for
their own personal use or use in their household.
Business markets include those that buy goods and services for use in producing
their own products to sell. This is different from the reseller market which includes
businesses that purchase goods to resell as is for a profit. These are the same
companies mentioned as market intermediaries.
The government market consists of government agencies that buy goods to
produce public services or transfer goods to others who need them.
International markets include buyers in other countries and includes customers
from the previous categories.
Each market type has special characteristics that call for careful study by the seller.
At any point in time, the firm may deal with one or more customer markets.
Competitors are also a factor in the micro-environment and include companies
with similar offerings for goods and services. To remain competitive a company
must consider who their biggest competitors are while considering its own size and

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position in the industry. The company should develop a strategic advantage over
their competitors
To establish and maintain a competitive advantage means to be superior or
different from competitors in some way. More efficient production, lower price,
better quality, e.t.c can all be the basis of the competitive advantage
Publics: The Company’s marketing environment also includes various publics. A
public is any group that has an actual or potential interest or impact on an
organization’s ability to achieve its objectives. For example:
Financial publics can hinder a company’s ability to obtain funds affecting the level
of credit a company has. Banks, investment houses and stockholders are the
principal financial publics.
Media publics include newspapers and magazines that can publish articles of
interest regarding the company and editorials that may influence customers’
opinions.
Government publics can affect the company by passing legislation and laws that
put restrictions on the company’s actions. Marketers must often consult the
company’s lawyers on issues of product safety, truth-in –advertising and other
matters.
Citizen-action publics include environmental groups and minority groups and can
question the actions of a company and put them in the public spotlight. It is publics
relations department that can help it stay in touch with consumer and citizen
groups.

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Local publics are neighborhood and community organizations and will also
question a company’s impact on the local area and the level of responsibility of
their actions. Large companies usually appoint a community-relations officer to
deal with the community, attend meeting, answer questions and contribute to
worthwhile causes.
The general public can greatly affect the company as any change in their attitude,
whether positive or negative, can cause sales to go up or down because the general
public is often the company’s customer base. Thus, many large corporate invest
huge sums of money to promote and build a healthy corporate image.
Internal publics: include its workers, managers and the board of directors. It is
those who are employed within the company and deal with the organization and
construction of the company’s product. Large companies use newsletters and other
means to inform and motivate their internal publics
Suppliers: suppliers are firms and individuals that provide the resources needed
by the company to produce its goods and services. Suppliers’ developments can
seriously affect marketing. Marketing managers must therefore watch supply
availability. Supply shortages or delays, labour strikes and other events can cost
sales in the short run and damage customer good will in the long run.
The organization: the organization need to consider its internal environment, its
other functional areas (departments), the relationship with the marketing
department, their own individual objectives and strategies and their implications on
marketing planning.
Every marketer must work with others within the organization. Managers must be
flexible and dynamic, often taking an entrepreneurial role. An entrepreneur is

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someone willing to undertake a venture to create something new. Within large
companies, this spirit is called entrepreneurial spirit.