This is for HND Business programme

1. HIGHER NATIONAL DIPLOMA IN
BUSINESS
Unit 2: Marketing Essentials
By: Oguchi Martins Egbujor 1

2. The Aim
The aim of Marketing Essentials is to guide
students to understand and acquire the
principles of marketing that enable them to
develop a basic marketing plan and to employ
elements of the marketing mix to achieve
results, and with the underpinning theories and
frameworks, they will also learn to be able to
relate these to real-world examples, including
products/services that they may encounter in
their own daily lives.
By: Oguchi Martins Egbujor 2

3. Learning Outcomes
LO1: Explain the role of marketing and how it
interrelates with other functional units of an
organisation.
LO2: Compare ways in which organisations use
elements of the marketing mix (7Ps) to achieve
overall business objectives.
LO3: Develop and evaluate a basic marketing
plan
By: Oguchi Martins Egbujor 3

4. LO1
Explain the role of marketing and
how it interrelates with other
functional units of an organisation
By: Oguchi Martins Egbujor 4

5. What Is Marketing?
Marketing is the management process
responsible for identifying, anticipating, and
satisfying customer requirements profitably.
(CIM, 2001)
By: Oguchi Martins Egbujor 5

6. What Is Marketing?
Marketing is the process of planning and
executing the conception, pricing, promotion
and distribution of ideas, goods and services to
create exchange and satisfy individual and
organisational objectives.
(AMA, 1985)
By: Oguchi Martins Egbujor 6

7. Marketing Concept
Marketing concept is the philosophy
that firms should analyse the needs
of their customers and then make
decisions to satisfy those needs,
better than competitors
By: Oguchi Martins Egbujor 7

8. The Role of Marketing
The role of marketing involves the process of
analysing and planning for the current needs
and future trends of customers’ needs and
wants, and the external environments that may
impact on the organisation’s ability and
capability to meet them with the aims of
satisfying their customers, and at the same time,
making a profit for the organisation.
By: Oguchi Martins Egbujor 8

9. Two Types of Marketing
Some Organisations, especially manufacturers,
wholesalers and distributors have two sets of
customers:
• B2B (Business to business)
• B2C (Business to customer)
By: Oguchi Martins Egbujor 9

10. Marketing Strategic Planning
• Generic Strategy
• Ansoff Matrix
• BCG Matrix
• Product Life Cycle
Different business organisations use different
marketing strategies to plan, promote and sell their
products and services. The focus is always on the
product meeting customer satisfaction. Strategic
analysis and application is based on marketing
concept.
By: Oguchi Martins Egbujor 10

11. BCG Matrix
The Star Question
Mark
Cash Cow Dogs
By: Oguchi Martins Egbujor 11

12. Ansoff Matrix
Product
Existing
Market
Existing
New
New
Market
penetration
strategy
Product
development
strategy
Market
development
strategy
Diversification
strategy
By: Oguchi Martins Egbujor 12

13. Product Life Cycle
Product Sales
Introduction Growth Maturity Decline
By: Oguchi Martins Egbujor 13

14. Marketing Mix
Marketing Mix is the use of the traditional 4Ps to
anticipate the sale of organisation’s product and
or services to their target customer:
• Product
• Price
• Promotion
• Place
By: Oguchi Martins Egbujor 14

15. Marketing Interrelationship
With Functional Units
Units/Departments
• Production
• Sales Department
• Warehousing Department
• Finance Department
• Operations
• Logistics Department
• Customer Services
By: Oguchi Martins Egbujor 15

16. Value Chain Analysis
The Value Chain framework is a model designed
by Michael Porter to help organisations analyse
specific activities involving their product and its
delivery to customers. The image of an
organisation and meeting their customers’
satisfaction depend on the creation of values
and competitive advantage through the
combined activities of all functional units, hence
it is termed value chain.
By: Oguchi Martins Egbujor 16

17. Value Chain Framework
Marketing interrelates with other functional units within an
organisation to create value and achieve the objectives
Firm Infrastructure
Human Resource Management
Technology
Procurement
Inbound
Logistics
Operations Outbound
Logistics
Marketing
and Sales
Services
Margin
Primary Activities
Supporting
Activities
By: Oguchi Martins Egbujor 17

18. LO2
Compare ways in which organisations
use elements of the marketing mix
(7Ps) to achieve overall business
objectives
By: Oguchi Martins Egbujor 18

19. Marketing 7Ps
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
By: Oguchi Martins Egbujor 19

20. Marketing 7Ps
Price
The Product should always be seen as representing
good value for money. This does not necessarily
mean it should be the cheapest available; one of the
main tenets of the marketing concept is that
customers are usually happy to pay a little more for
something that works really well for them
Place
The product should be available from where your
target consumer finds it easiest to shop. This may be
High Street, Mail Order or the more current option
via e-commerce or an online shop
Promotion
Advertising, PR, Sales Promotion, Personal Selling and,
in more recent times, Social Media are all key
communication tools for an organisation. These tools
should be used to put across the organisation’s
message to the correct audiences in the manner they
would most like to hear, whether it be informative or
appealing to their emotions
People
All companies are reliant on the people who run them
from front line Sales staff to the Managing Director.
Having the right people is essential because they are
as much a part of your business offering as the
products/services you are offering
Processes
The customer is usually present when the delivery of
your product is carried out. It is important to
demonstrate quality service.
Physical Evidence
Almost all services include some physical elements even if the bulk
of what the consumer is paying for is intangible. For example a hair
salon would provide their client with a completed hairdo and an
insurance company would give their customers some form of printed
material. Even if the material is not physically printed (in the case of
Product
The Product should meet customers’ requirements. It should be according to
consumers’ expectations. There should be value. It must meet customers’ taste
By: Oguchi Martins Egbujor 20

21. Communication Mix
The Marketing Communications Mix is the
specific mix of advertising, personal selling, sales
promotion, public relations, and direct
marketing a company uses to pursue its
advertising and marketing objectives
By: Oguchi Martins Egbujor 21

22. Elements of Communication Mix
Advertising Any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor.
Personal selling Personal presentation by the firm’s sales force for the purpose of
making sales and building customer relationships.
Sales promotion Short-term incentives to encourage the purchase or sale of a
product or service.
Public relations Building good relationships with the company’s various publics by
obtaining favourable publicity, building up a good "corporate
image", and handling or heading off unfavourable rumours, stories,
and events.
Direct marketing Direct communications with carefully targeted individual
consumers to obtain an
immediate response and cultivate lasting customer relationships
By: Oguchi Martins Egbujor 22

23. Generic Strategies
Porter’s Generic Strategies are used by business
organisations to fix the prices of their products
and services:
• Cost Leadership
• Differentiation
• Focused
• Hybrid
By: Oguchi Martins Egbujor 23

24. Competitive Advantage
Lower Cost (1) Cost Leadership
This is a strategy where a firms sells
standard or no-frills product at low-cost
and reaps benefits through economies of
scale (small profit quick turnover), eg.
Sainsbury, Tesco, Asda, etc
Differentiation (2) Differentiation
This is a price strategy where firms decide to add
value to their products and services and sell at a
premium price, eg. Debenham’s, Marks & Spencer,
John Lewis, etc.
(3A) Cost Focus
This is a price strategy adopted by firms in
niche market. It is based on a segmented
(narrow) market where firms focus on low
price for a standard product or service, eg.
Zoo,
(3B) Differentiation Focus
This is a price strategy for a niche market where firms
specialised in a segmented (narrow) market, add
value and sell premium price, eg Harold’s, Sarah,
House of Frazer, etc
By: Oguchi Martins Egbujor 24

25. LO3
Develop and evaluate a basic
marketing plan
By: Oguchi Martins Egbujor 25

26. Marketing Plan
• Importance of Marketing plan
• The Value of Marketing plan
• Marketing Objectives
• Marketing Strategy
• Evaluating and Monitoring Marketing Plan
• Market Share Analysis
• Efficiency Ratio
• Cost-Profitability Analysis
By: Oguchi Martins Egbujor 26

27. Structure and Development
of Marketing Plan
• Market Segmentation
• Target Market Selection
• Setting Goals and Objectives
• Situational Analysis Tools and Techniques
• Creating the Marketing Strategy
• Allocation of Resources
• Monitoring and Control Measures
By: Oguchi Martins Egbujor 27

28. Marketing Planning Processes
Goal Setting
Analysing the current
situation
Creating the Marketing
strategy
Allocating Marketing
Resources and Monitoring
• (1) Mission and (2)
Objectives
• (3) Marketing Audit (4)
SWOT Analysis (5)
Marketing Assumptions
• (6) Marketing Objectives
& Strategies (7) Forecast
of Expected Results (8)
Create Alternative Plans
• (9) Marketing Budget (10)
Detailed Action Plan
(Tutor2u)
By: Oguchi Martins Egbujor 28

29. Component Description
Mission State A meaningful statement of the purpose and
the direction of the business
Corporate
Objectives
The overall business objectives that shape the
marketing plan
Marketing Audit Assesses the situation of marketing in the
business – the products, resources,
distribution methods, market shares,
competitors, etc
Market Analysis The markets the business is in (and targets) –
size, structure, growth
SWOT Analysis An assessment the firm’s current position,
showing the strengths & weaknesses (internal
factors) and opportunities & threats (external
factors)
The Main Market Planning Stages
By: Oguchi Martins Egbujor 29

30. Marketing Objectives
and Strategies
What the marketing function wants to
achieve (consistent with corporate
objectives) and how it intends to do it (eg.
Ansoff, Porter, etc)
Marketing Budge Usually a detailed budget for the next next
and an outlined budget for next 2-3 years
Action Plan The detailed implementation plan
http://www.tutor2u.net/business/referenc
e/marketing-planning-overview
(Tutor2u)
Main Planning Stages Continued
By: Oguchi Martins Egbujor 30

31. Market Segmentation
Market segmentation splits up a market into
different types (segments) to enable a business
to better target its products to the relevant
customers
(Tutor2u)
By: Oguchi Martins Egbujor 31

32. Market Segmentation
The process of defining and subdividing a large
homogenous market into clearly identifiable
segments having similar needs, wants, or demand
characteristics. Its objective is to design a marketing
mix that precisely matches the expectations of
customers in the targeted segment
(Business Dictionary)
By: Oguchi Martins Egbujor 32

33. Efficiency Ratio
The efficiency ratio is a ratio that is typically
used to analySe how well a company uses its
assets and liabilities internally. Efficiency Ratios
can calculate the turnover of receivables, the
repayment of liabilities, the quantity and usage
of equity and the general use of inventory and
machinery.
(INVESTOPEDIA)
By: Oguchi Martins Egbujor 33

34. Porter’s 5 Forces
Threats of entrants
Bargaining Power Bargaining Power
Threats of Substitutes
Potential
entrants
Suppliers Buyers
Substitutes
COMPETITIVE
RIVALRY
By: Oguchi Martins Egbujor 34