The document provides an overview of marketing principles and concepts. It defines key terms like the marketing mix, marketing strategy, and the 4Ps and 7Ps frameworks. It discusses developing a marketing strategy by understanding customers, analyzing the market and competition, defining the marketing mix, and continuously reviewing and revising the strategy. The document also covers topics like global marketing, the internet's impact on marketing, and marketing divisions within companies.

1. Marketing
Principles
Mercy Asaa Asiedu (PhD)

2. Key Learning Objectives of Module
To enable students to:
• Understand the nature of the company’s marketing strategy, and its importance to
marketers.
• Understand the processes involved in identifying and converting marketing
opportunities and threats into competitive advantage

3. Overview
Successful companies always formulate effective marketing strategies by adopting
approaches like;
• Having a strategic focus based on developing and sustaining a profitable customer
base
• Increasing sales and market shares
• Targeting committed and profitable customers
• Benchmarking and targeting competitors
• Focusing on a greater commitment to innovation

4. WHAT IS MARKETING?
• Marketing is a business term that has been defined in different ways by experts.
Even at company level, the term may be perceived differently according to the
nature of business.
• Fundamentally, it is a process of moving goods and services from the concept to
the consumer
• The process includes the following:
Identifying a product
Determining its demand
Deciding on a price
Selecting distribution channels
Creating and implementing a promotional strategy

5. Definitions
• According to the Collins Dictionary,
The term “Marketing is the organization of the sale of a product, for example,
deciding on its price, the areas it should be supplied to, and how it should be
advertised.”
• According to the American Marketing Association,
The term “Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.”

6. Typical marketing divisions
There are many divisions of marketing. Not all companies have the same names for
each one. Below is a list of the most common divisions (Source: London School of
Economics)
• Advertising – this involves the promotion of an idea or product into the marketplace
(placing ads in the media)
• Community Involvement - this means working with the local community. This is
not only good for the company’s standing locally, but it is also great for morale
within the company and this helps to grow customer loyalty, (examples are
sponsoring local events, chairing meetings, volunteering in schools or local youth
centres, and joining local associations)
• Customer Service - this involves providing assistance and advice to people who
purchase the product. In many business, this service is provided to customers before,
during, and after a sale.
Good customer service produces satisfied customers, whose experience meets or exceeds their
expectations. If your competitors have better customer service you may lose market share to them.

7. • Direct Marketing - this involves delivering your message directly to consumers
via leaflets, forms, fliers, catalogues and street promotion.
• Distribution - this is part of the management chain. It involves transporting one
product from storage to a shop or supermarket.
• Market Research – this is the process of gathering and analysing information. The
data will make the company more aware of how people will react to its current and
future products.
Business owners conduct market research all the time by talking to their customers
about their business. Businesses also conduct market research by trying to find out
what their competitors are doing. Good market research can produce a wealth of
data about the business’ products, customers, and the marketplace.

8. • Media planning- this is closely-related to advertising. It is an advertising strategy
we employ to target consumers using a range of informational outlets.
Media planning agencies usually conduct this kind of work. They find the best
media outlets to reach the target market. Examples of media outlets include the
internet, posters, television, radio, newspapers and magazines, etc.
• Product pricing - setting the price, companies take into account how much it costs
to produce and deliver. They also consider how much competitors are selling it
for, its quality, the brand, etc.
Most product prices rarely stay the same for long. Production costs may change,
salaries can rise, or competitors might suddenly offer discounts or raise their
prices. Companies need to be aware of every factor that influences price all the
time.

9. • Public Relations – this is a strategic communication process that builds mutually
beneficial relationships between companies and their publics.
• Sales - this involves formulating a plan as to how to reach potential and existing
customers. It also includes planning and supporting the sales team by pushing
ahead with sales targets. It also Salespeople aim to hit those targets.
• One-to-One Marketing – this involves communicating directly with each
customer. The company then tailors the approach to each customer’s tastes and
preferences.
• Impression Management - this is the process of shaping people’s perception of
things, other people, places and events. This means getting consumers to perceive
your products or services in a good light.

10. Marketing Divisions
MARKETING
One-to one Marketing
Public Relations
Advertising
Media Planning
Market Research
Direct Marketing
Impression Management
Strategy
Product Pricing
Publicity
Branding
Community Involvement Customer Service
Distribution
Sales

11. At the core of marketing is an understanding of what customers need and value and
a determination of whether it is possible to produce it at the right price. It then finds
ways to add value through different approaches:
Business-to-business or B2B marketing. It involves supplying other companies
with products or services.
• Physical products that companies sell to other businesses are ‘industrial
goods.’These may include raw materials for companies that make plastics, yarn
for use in the textile trade, aircraft for airlines and the military.
• B2B services may include legal advice, management consultancy, tax consultancy,
or training provision, IT services and the provision of temporary staff.

12. Marketing directly to consumers
This is referred to as B2C (business to consumers) and targets the
individual people who purchase products and use services. Specifically,
people who buy for their own consumption.
This may include fast-moving consumer goods (FMCG) such as food,
beverages, and toiletries, or durable goods. For example, cars,
televisions, refrigerators and other white goods are durable goods.
‘White goods’ are major appliances that traditionally have had a white
enamel surface

13. B2B + B2C marketing
• Many large corporations have an integrated marketing approach. this means that
they focus on both individual consumers and businesses at the same time.
• For example, The Coca-Cola company, knows that its B2C marketing must
succeed. It therefore has to persuade supermarkets and smaller stores (B2B) to
provide shelf space.
• Most makers of durable goods also have an integrated marketing approach. For
example, The Haier Group which is the world’s largest manufacturer of consumer
electronics and home appliances, focuses on individual consumers (B2C).
However, it also focuses on supermarkets, department stores, and other retail
outlets (B2B).

15. Recruitment marketing
• Recruitment marketing includes all the tools and strategies that employers use to
engage, attract, and eventually hire talented people. The aim is to encourage
people to want to join the organization.
• The practice takes advantage of data analytics, Omni channel communication,
social media platforms, and other digital marketing strategies.
• According to Adrian Cernat, CEO and co-founder of Smart Dreamers,
“Recruitment marketing is the process of trying to attract and hire talented people.
It includes the strategies and tactics that employers use to attract, engage, and
nurture talented personnel before they apply for a job.”

16. Marketing strategy
• Marketing strategy sets the overall road map, structure, direction and step-by-step goals
for marketing. Effective marketing means a clearly defined marketing strategy.
• A company’s marketing strategy combines all its objectives into one integrated and
comprehensive plan. It therefore should not focus on one strategy at the expense of others.
• It uses market research data to create its strategy. The company focuses on the ideal
product mix to reach the optimum profit potential. The right product mix is also crucial to
sustaining the business.
• The best marketing strategy process allows a company to specially target its products and
services to the ideal buyers most likely to buy.”
• An effective and successful marketing plan depends on a good strategy. A company’s
strategy begins with the setting of objectives that supports its overall aims. It then needs
to come up with a strategy that allows it to reach these objectives.

17. Marketing Strategy cont’d
• The strategy of a company must involve research into the development of its
product or service,
• The company must also consider how the product or service will reach the
market (channels) and how the customers will find out about it
(communication).”
• “It will also attempt to define a unique positioning for the product or business
to differentiate it from its competitors.”
• A well-developed marketing strategy empowers you to realise your business
goals and build a strong reputation for your products and services.

18. Why do some businesses thrive while many still continue to struggle?
There are three reasons why this happens:
1. Successful businesses have solved the most important piece of the puzzle when
it comes to effective prospecting. Any company (large or small) which isn’t
getting as much business as they can handle simply means they don’t know how
to consistently get as many prospects as they need.
2. Successful businesses do an exceptional job of differentiating themselves from
all their competitors. They offer a difference which is so unique, they’re
immediately viewed as a “category of one” and the only business buyers or
customers would logically choose to buy from.
3. Successful businesses sell more of their products or services by
actually marketing less. Why? Because by targeting more effectively and
segmenting buyers from time-wasters or “tire-kickers”, means the time and
money they invest in marketing is reduced significantly.

20. Developing your Market Strategy
• Develop a marketing strategy which is key for your business success. Note that the
best marketing strategy is simple, yet empowers you to define your Vision, Mission
and Goals.
• Identify your business goals, so that you can then define a set of marketing goals to
support them.
• Your business goals would include:
• Increasing awareness of your products and services
• Selling more products from a certain supplier
• Reaching new customer segments
• State your marketing goals

21. MARKETING STRATEGY PROCESS
• Marketing Strategy Process is the process of anticipating future events and
determining strategies to achieve organizational objectives in the future.
1. Understand Customer - Develop a clear picture of your target customer using
market research and analysis. Use your market research to develop a profile of the
customers you are targeting and identify their needs. The profile will reveal their
buying pattern- how they buy, where they buy and what they buy.
2. Analyse Market - Some basic market research should allow you to find market
data such as total available market, market growth, market trends, etc. Again,
regularly review trends so you don’t miss out on new opportunities or become
irrelevant with your marketing message. While you try to find new customers,
make sure your marketing strategy also allows you to maintain relationships with
your existing customers.

22. 3. Analyse Competition - Analyse what other choices your target customers have to solve their needs. As
part of your marketing strategy you must profile your competitors to understand their products, supply
chains, delivery system, pricing and marketing tactics being used. Use this to differentiate and set your
business apart from your competitors. Identify the strengths and weaknesses of your internal processes
to improve your competitive advantages and performance compared with your competition.
4. Research Distribution- Define what is the best way to distribute your products or service to the target
customers. This will impact your sales strategy
5. Define Marketing Mix - Develop a clear picture of your Marketing Mix i.e. product, price, place and
promotion. Outline the steps you need to take to achieve these goals, which are developed to structure
your unique selling position (USP) and role of your products and services in your market.
6. Financial Analysis – Put together your marketing budget and evaluate projected marketing ROI,
customer acquisition costs, etc.
7. Review and Revise - Continuously evaluate the effectiveness of your marketing strategy and revise or
extend as needed.

23. The Internet and marketing
• With the advent of the Internet and ad-blocking software, inbound marketing has
become increasingly popular. It involves using content – newsletters, blogs,
podcasts, review, etc. – that online users like, to lure them in.
• In the past, company’s sales personnel used to be the experts. However, now the
experts are the consumers.
• Internet marketing specialists use the term ”bounce rate” to refer to the
percentage of people who leave the website after visiting a page.
• In other words, instead of going to another page within the same site, they leave –
they bounce out. The lower the bounce rate the better for the seller/marketer.

24. Global Marketing
• Global marketing refers to the planning, creating, placing, and promoting a
business’ products or services in the worldwide market. It is a specialized skill.
Executives who manage to implement an effective strategy, can take their business
to the global level.
• During the 1960s and 1970s, many Japanese business practices emerged, which
later spread across the world. In some cases, engineering and marketing
overlapped. For example, Kansei Engineering is engineering that is based on
human emotions. Not only do Kansei developers focus on what products can do,
but also on how they make consumers feel.

25. Marketing principles
• Marketing principles or Principles of marketing are agreed-upon marketing
ideas used by companies for an effective marketing strategy.
• They are the principles upon which product promotion strategies are built.
Marketing principles are used for the effective promotion of goods or services.
• Some companies follow the 4Ps Strategy of product, price, promotion and
place. Also referred to it as the 4P Marketing Mix or 4P Marketing Matrix
• On the other hand, others may have built up their own marketing principles. In
most cases, they are the same as or vary slightly from the 4P strategy
• Other companies follow the 7Ps Strategy of product, price, promotion, place,
people, packaging and positioning.

26. Background
• The marketing mix was originally defined as the “4 Ps” in the 1960s – Product,
Price, Promotion, and Place.
• For service businesses, a fifth “P” – People was later added.
• Then, in the 1980s, there were 7 Ps - product, place, price, promotion, people,
physical environment, and process. Marketing principles are always evolving.
• Still more recently, two additional important categories of strategic marketing
analysis were added to the marketing mix: Packaging and Positioning.

27. 4Ps Marketing Mix
• The principle of the 4P Marketing Mix or Matrix is that marketing decisions tend
to fall into four categories – product, price, promotion and place,. They are
referred to as ‘controllable’ categories because our efforts affect them or their
outcomes.
• Government policy or rules and regulations, on the other hand, are
‘uncontrollable’ categories – our efforts do not influence their outcomes.
• The 4P Matrix can help you define your marketing options, whether you’re
planning to launch a new product or you’re evaluating an existing one. Most
frequently used marketing matrix because it’s simple and it works.
• A good marketing executive will carefully position the company’s product in each
category. The strategy will subsequently generate the greatest response from the
target market.

28. • Product - Ask critical questions such as, “Is your current product or service, or mix
of products and services, appropriate and suitable for the market and the customers of
today?”
• Price - Develop the habit of continually examining and re-examining the prices of
the products and services you sell to make sure they’re still appropriate to the realities
of the current market. Sometimes you need to lower your prices. At other times, it
may be appropriate to raise your prices.
• Promotion – this includes all the ways in which you tell your customers about your
products or services and how you then market and sell to them.
• Place – This refers to the place where your product or service is actually sold.
Develop the habit of reviewing and reflecting upon the exact location where the
customer meets the salesperson. Sometimes a change in place can lead to a rapid
increase in sales.
(If you are starting a new business, finding the right location can be a key marketing tactic).

29. 7 Ps Marketing Mix
• Once the marketing strategy is developed, the 7 Ps Formula is used
to continually evaluate and re-evaluate business activities.
• These seven are: product, price, promotion, place, people,
packaging and positioning.
• As products, markets, customers and needs change rapidly, you must
continually revisit these 7 Ps to make sure you’re on track and
achieving the maximum results possible for you in the marketplace.

30. • People - Refers to the staff and salespeople who work for your business, including
yourself. Develop the habit of thinking in terms of the people inside and outside of
your business who are responsible for every element of your sales and marketing
strategy and activities.
• When you provide excellent customer service, you create a positive experience for
your customers, and in doing so market your brand to them.
• In turn, existing customers may want to refer other people they know and spread
the word about your excellent service, basically how you can win referrals.

31. • Packaging - Develop the habit of standing back and looking at every visual element in
the packaging of your product or service through the eyes of a critical prospect.
Remember, people form their first impression about you the first time of seeing you or
your company. Small improvements in the packaging or external appearance of your
product or service can often lead to completely different reactions from your customers.
Packaging refers to the way your product or service appears from the outside. Packaging
also refers to your people and how they dress and groom. It refers to your offices, your
waiting rooms, your brochures, your correspondence and every single visual element
about your company. Everything counts. Everything helps or hurts. Everything affects
your customer’s confidence about dealing with you.
• Positioning - Develop the habit of thinking about how you are positioned in the hearts
and minds of your customers. How do people think and talk about you when you’re not
present? How do people think and talk about your company? What positioning do you
have in your market, in terms of the specific words people use when they describe you
and your offerings to others?

32. Differences in Marketing & Sales
• Marketing and sales are fundamentally trying to achieve the same thing.
• They are both trying to get more customers and revenues. However, they look at
things slightly differently.
• Marketing focuses on the market, while sales focuses on the product.
• Sales also focuses on how to persuade consumers to like it and buy it. Some sales
managers disagree with the image above, insisting that sales does continue after
the sale of the product.