marketing

1. CHAPTER FIVE
MARKETING

2. Meaning and Definitions of Marketing
It is a process by which companies create value
for customers and build strong customers
relationships in order to capture value from
customers in return.
Marketing is the effort to identify and satisfy
customers’ needs and wants using marketing mix.

3. Marketing answers WH question.
Who are my customers?
People who are buying from you now.
People you hope will buy from you in the future.
 People who stopped buying from you but you hope to get
them back.
What are my customer’s needs and wants?
How can I satisfy my customers’? (via 4ps)
How do I make a profit as I satisfy my
customers? (through 4ps)

4. Core Concepts of Marketing
A. Need: Human Need is a state of deprivation of basic
satisfaction and necessary for survival.
B. Wants: is additional satisfaction and shaped &
reshaped by culture.
E.g, A person needs food but wants spaghetti
C. Demands: Demands are wants for specific products
that are backed by ability and willingness to buy
them.

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Need
•Basic needs are
food,cloth, shelter,
safety and
relationship
Demand
• Wants for
specific products
are backed by
ability and
willingness to
buy.

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Product
•Is anything
that can be
offered to
satisfy a need
or want
Market
• Consists of all
potential
customer who
want to satisfy
their need or
want in exchange
with other
Exchange
• Is the act of
obtaining a desired
product from
someone by offering
in return.

7. E. Value: is the consumer’s estimate of the
product’s overall capacity to satisfy his or
her needs.
F. Satisfaction is the result of the comparison of
perceived (actual) performances and
expectations performance.

8. .
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9. Importance of Marketing
Marketing Creates Utility
Maximize Choice
Maximize Consumer Satisfaction
Marketing is Important to the Firmgoal achievement
Marketing affects standard of living and economic growth
Marketing is Important to the WorldEconomy

10. 1. Marketing Creates Utility
Form Utility: is associated with production: the
change of form of inputs to convert in output that
make a product more valuable.
Information Utility: is created by informing
prospective buyers that a product exists.
Place Utility: utility exists when a product is
readily accessible to potential customers.
Time Utility: utility exist when products are
available to customers, as they want.
Possession Utility: created when a customer buys
the product: ownership is transferred
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11. 2. Marketing is Important to Personal life
Through marketing activates individuals
may get many befits such as knowledge &
how and what to buy that is information
about products, so that can live good
standard of life or save money!
3. Marketing is Important to the Firm
It is still the only revenue-generating
department.
The other functions incur cost.
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12. 4. Marketing affects standard of living and
economic growth
It encourages research and innovation to
better satisfy customers need.
Competition drives price down.
New goods or services to satisfy need in well.
Employment opportunities
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13. 5. Maximize Choice
Marketing Improve items wide range
and customer selection.
This program would enable customers
to find items that satisfy their tastes
exactly.
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14. Marketing Philosophies
There are five competing concepts under which
organizations can choose to conduct their marketing
activities: namely,
1) Production concepts
2) Product concept
3) Selling/sales concept
4) Marketing concept
5) Societal marketing concept and
6) Relationship Marketing Concept.

15. Summary of marketing philosophy

16. Comparison of the selling and marketing concepts
Starting
point
Focus Means Ends
Selling
concept
Factory Existing
products
Promoting
and Selling
Profit
through
sales
volume
Marketing
concept
Market Customer
needs
Integrated
marketing
Profit
through
customer
satisfaction
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17. What is Marketing Mix?
 Marketing Mix are marketing variables that the
marketing manager can manipulate as
controllable variables.
Product
Pricing Marketing mix or 4Ps
Place (channel)
Promotion.

18. Product: is anything capable to satisfy the needs
of the market.
Pricing: refers to the process of setting a price for
a product/service.
price is the amount of money charged for a
product or service
 Place: is a ways of getting your products or
services to your customers through middle man.

19.  Promotion: Refers informing your customers of
your products and services and attracting them
to buy them by
Advertising
Sales promotion
Publicity and
Personal selling

20. What Is Marketing Strategy?
Marketing strategy is a method of focusing an
organization's energies and resources on a course
of action which can lead to increased sales.
Pricing Strategy
Promotion Strategies
Distribution Strategies

21. Pricing Strategy: A company sets no single price rather
pricing structure changes through time as products
pass through their life cycles.
Some of pricing strategies mostly applicable in the real
world scenario like:
 Skimming Pricing
Penetration Pricing
Mark-up Pricing (Cost-plus Pricing)
Competition Oriented Pricing
Odd Pricing(Psychological pricing)

22. Marketing Debate
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Is the Right Price a Fair Price?
Prices are often set to satisfy demand or to reflect
the premium that consumers are willing to pay for
a product or service. Some experts criticize,
however, at the thought of $2 bottles of water,
$150 running shoes and $500 concert tickets.
Take a position: Prices should reflect the value
consumers are willing to pay versus Prices should
reflect only the cost of making a product or a
service.

23. Promotion Strategies is choosing a target market and
formulating the most appropriate promotion mix to
influence it.
An organization’s promotional strategy can consist:
i) Advertising: Any paid form of non-personal
presentation and promotion of ideas, goods or services
by an identified sponsor.
Print
Radio and television broadcast
Outdoor and other forms.

24. i) Personal selling: This is the two-way flow of
communication between a buyer and seller,
designed to influence a person’s or group’s
purchase decision.
Tools;
Sales presentations,
fairs and trade shows,
door –to – door presentation

25. Public relations: Building good relations with the
company’s various publics to build a good
‘corporate image’.
Tools:
sponsoring social events,
participating in mega projects
 Sales promotion: involves a short term incentives
of value such as discounts, free samples, and
prizes.

26. Distribution Strategies
Channel is the path or route along which goods
move from producers or manufacturers to ultimate
consumers.
Direct channels: In this type of channel,
producers and end users directly interact.
Indirect channels: Intermediaries include
wholesalers, retailers, dealers, agents, brokers
and manufacturer’s branches and offices.

27. Factors of Distribution Strategies
 The following factors to be considered to select the best
channel using best distribution strategy.
Company Factors: financial, human and technological
capabilities of a company to do its business activities.
Market Characteristics: Geography, market density,
market size, target market
Product Attributes: perishability, value and sophistication
of the product
Environmental Forces: forces that affect the business like
competition, technology and culture

28. Marketing Information Systems
 Every firm must organize the flow of information to its
marketing managers
Companies are studying their manager’s information
needs and designing marketing information system to
meet these needs.
 A marketing information system consists of people,
equipment and procedure to gather, sort, analyze,
evaluate and distribute needed timely and accurate
information to marketing decision makers.

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The needed information used for decision making
developed through: -
Marketing Research
Marketing Intelligence
Competitive Analysis
Internal Records
Marketing Decision Support Analysis

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5.6
Marketing Research
Marketing research is the systematic identification,
collection, analysis, and dissemination of information for
the purpose of assisting management in decision
making.
Role of Marketing Research
Gathering and presentation of facts.
Analysis and Explanation of facts
Estimate/predict the results.

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5.6 Components of Marketing Research
 Your marketing research deals with many aspects of marketing includes.
•How many numbers units sold to the market in the given Period
Market Size
•Your market share in contrast with the whole market
Market Share
•It is a marketing strategies to show how can enter/penetrate the
market
Market Penetration
•The research shows how consumers view and perceive about your
brand
Brand Equity Research
•This research shows what the factors/motives the people to buy
Buyer Decision Process Research

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5.6 Process of Marketing Research
 The following systematic process must be accomplished during marketing research.
•State purpose and objective of the
study
Develop a Research
Objective
•Methods of data collection, analysis,
Sampling
Research Design
Formulation
•Collected data from newspaper,
articles or other
Secondary Data
Collection
•Collected through observation,
survey, interview
Primary data collection
•Gives meaning to the raw facts, or
change it to information
Data Analysis
•State your finding, conclusion and
recommendation
Report Presentation

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5.6 Competitive Analysis
Competitive analysis refers to identifying the strengths and
weaknesses of competitors and designing ways to take
opportunities or tackle threats posed by competitors.
A strategic business owner not only knows who its competitor is
but also understands the best way to position ahead of its
competitor
It helps:
 To understand the competitive advantage/disadvantage relative to
competitors.
 To know the competitors’ past, present and future strategies.
 To develop a strategies based on competitors movement.

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5.6
Steps of competitive Analysis:
• May be local
and
international
competitors
Identify your
competitors
• Observe and see the
competitors web
site, magazines and
other source
Gather info. about
competitors
• Compare
competitors
performance with
you.
• How can compute
them
Analyzing the
competition

35. Customer Service
Service: refers to any activity undertaken to fulfill
customer’s needs. It is intangibility,
inseparability, variability, non ownership and
perishability as opposed to goods.
Customer is a person or organization that buys a
product or service either for use or for resale.

36. Customer Handling and Satisfaction: is a key for
successful organizations.
Managers and employees should work hand-in-
hand to improve their service delivery programs
via:
Considering Customers as Valuable Asset
Reducing Customer Complaints
Place Yourself in The Customer’s Shoes

37. Marketing Debate
Are Great Salespeople Born or Made?
Some observers maintain the best salespeople
are born and are effective due to their
personalities and interpersonal skills developed
over a lifetime. Others oppose that application
of innovative sales techniques can make
practically and a brilliant salesman through
training.
Take a position: The key to developing an effective
sales force is selection versus the key to developing
a effective sales force is training (education).
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