The document provides an overview of key concepts from a lecture on principles of marketing. It defines marketing and describes the core marketing activities and key elements in a marketing system, including suppliers, companies, competitors, marketing intermediaries, and final consumers. It discusses designing customer-driven marketing strategies through market segmentation, choosing a value proposition, and different marketing management orientations. It also outlines constructing an integrated marketing program using the marketing mix, building profitable customer relationships, and capturing value from customers to create profits and customer equity.
This document provides information about marketing. It defines marketing as identifying, satisfying, and retaining customers profitably. It discusses the marketing mix, also known as the 4Ps - product, price, place, promotion. It expands on this to the 7Ps by including people, processes, and physical evidence. Different types of marketing are described such as mass marketing, direct marketing, and internet marketing. Price is discussed as an important element of the marketing mix that generates revenue. Different pricing strategies like price skimming, penetration pricing, and psychological pricing are also summarized.
This document provides definitions and explanations of key marketing concepts including the marketing mix (7Ps), types of marketing, and marketing definitions. It discusses the marketing mix elements of product, price, place, promotion, people, process, and physical evidence. It provides details on different pricing strategies, types of marketing like mass, direct, and internet marketing. Overall, the document serves as a comprehensive overview of fundamental marketing principles.
E- Marketing Strategies
A marketing strategy refers to a business' overall game plan for reaching prospective consumers and turning them into customers of the products or services the business provides.
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. Fulfillment of wants of the prospects is one the important goals of marketing activities.
The document discusses various marketing concepts including the marketing mix, the 4 Ps of marketing (product, price, place, promotion), relationship marketing, social marketing, customer relationship management, consumer buying behavior, industrial buying processes, and target marketing. It provides definitions and explanations of these key marketing terms and concepts across multiple sections and paragraphs.
MBM_6109_CAT 1_Deliverable_Lamed.docx for coursework submissionahimbisibwelamed
This document contains a student's answers to questions about industrial marketing. For part (a), the student provides a detailed explanation of how the marketing mix applies differently in industrial and consumer market environments. The marketing mix (4Ps and 3 additional Ps) considers factors like product, price, place, and promotion which are applied differently when marketing to businesses versus consumers. For part (b), the student outlines major differences in strategic planning for industrial versus consumer markets, such as industrial strategic planning involving recognizing and responding to marketplace changes to achieve opportunities consistent with business objectives and capabilities. The student also discusses key elements of industrial and consumer market environments.
This document contains a student's answers to questions about industrial marketing.
Part a provides a 3-sentence summary of the marketing mix and how it applies differently in industrial versus consumer environments. It explains the 4Ps of product, price, place and promotion and how they are tailored for business-to-business needs in industrial markets.
Part b outlines the major differences between strategic planning for industrial versus consumer markets, noting industrial markets have fewer, larger volume buyers who seek long-term commitments from suppliers.
This document provides an overview of marketing concepts and the marketing environment. It begins with definitions of marketing from various scholars such as the American Marketing Association, Philip Kotler, and Peter Drucker. It then discusses the types of marketing including traditional, digital, social, and mobile marketing. Next, it explores the internal and external factors that make up the marketing environment, including customers, competitors, public, suppliers, economic conditions, technology, and government regulations. Environmental scanning techniques like SWOT analysis, PEST analysis, and Porter's Five Forces model are also summarized. The document aims to give the reader a high-level understanding of foundational marketing concepts.
Hey guys, this presentation is all about marketing starting with a crisp and clear introduction and this ppt focusses on all important aspects related to marketing whether be it decision making, marketing process, marketig analysis, marketing utilities, marketing management concepts, marketing planning, traditional & modern approaches of marketing, a full coverage of 7 Ps of marketing mix as well as various important marketing strategy techniques along with relevant diagrams & charts & illutrative examples.
This document provides information about marketing. It defines marketing as identifying, satisfying, and retaining customers profitably. It discusses the marketing mix, also known as the 4Ps - product, price, place, promotion. It expands on this to the 7Ps by including people, processes, and physical evidence. Different types of marketing are described such as mass marketing, direct marketing, and internet marketing. Price is discussed as an important element of the marketing mix that generates revenue. Different pricing strategies like price skimming, penetration pricing, and psychological pricing are also summarized.
This document provides definitions and explanations of key marketing concepts including the marketing mix (7Ps), types of marketing, and marketing definitions. It discusses the marketing mix elements of product, price, place, promotion, people, process, and physical evidence. It provides details on different pricing strategies, types of marketing like mass, direct, and internet marketing. Overall, the document serves as a comprehensive overview of fundamental marketing principles.
E- Marketing Strategies
A marketing strategy refers to a business' overall game plan for reaching prospective consumers and turning them into customers of the products or services the business provides.
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. Fulfillment of wants of the prospects is one the important goals of marketing activities.
The document discusses various marketing concepts including the marketing mix, the 4 Ps of marketing (product, price, place, promotion), relationship marketing, social marketing, customer relationship management, consumer buying behavior, industrial buying processes, and target marketing. It provides definitions and explanations of these key marketing terms and concepts across multiple sections and paragraphs.
MBM_6109_CAT 1_Deliverable_Lamed.docx for coursework submissionahimbisibwelamed
This document contains a student's answers to questions about industrial marketing. For part (a), the student provides a detailed explanation of how the marketing mix applies differently in industrial and consumer market environments. The marketing mix (4Ps and 3 additional Ps) considers factors like product, price, place, and promotion which are applied differently when marketing to businesses versus consumers. For part (b), the student outlines major differences in strategic planning for industrial versus consumer markets, such as industrial strategic planning involving recognizing and responding to marketplace changes to achieve opportunities consistent with business objectives and capabilities. The student also discusses key elements of industrial and consumer market environments.
This document contains a student's answers to questions about industrial marketing.
Part a provides a 3-sentence summary of the marketing mix and how it applies differently in industrial versus consumer environments. It explains the 4Ps of product, price, place and promotion and how they are tailored for business-to-business needs in industrial markets.
Part b outlines the major differences between strategic planning for industrial versus consumer markets, noting industrial markets have fewer, larger volume buyers who seek long-term commitments from suppliers.
This document provides an overview of marketing concepts and the marketing environment. It begins with definitions of marketing from various scholars such as the American Marketing Association, Philip Kotler, and Peter Drucker. It then discusses the types of marketing including traditional, digital, social, and mobile marketing. Next, it explores the internal and external factors that make up the marketing environment, including customers, competitors, public, suppliers, economic conditions, technology, and government regulations. Environmental scanning techniques like SWOT analysis, PEST analysis, and Porter's Five Forces model are also summarized. The document aims to give the reader a high-level understanding of foundational marketing concepts.
Hey guys, this presentation is all about marketing starting with a crisp and clear introduction and this ppt focusses on all important aspects related to marketing whether be it decision making, marketing process, marketig analysis, marketing utilities, marketing management concepts, marketing planning, traditional & modern approaches of marketing, a full coverage of 7 Ps of marketing mix as well as various important marketing strategy techniques along with relevant diagrams & charts & illutrative examples.
This document provides an overview of key marketing concepts. It defines marketing as a social process involving the exchange of goods and services to satisfy needs and wants. The core concepts discussed include needs, wants and demand, products and services, customer value, exchange and relationships. It also distinguishes between selling and marketing, and describes the marketing concept orientation which focuses on customer needs rather than production. Key elements of the marketing environment, including internal factors like staff and resources, and micro factors like customers and suppliers, are also summarized.
This document provides an overview of key marketing concepts including definitions of marketing, the three levels of marketing (philosophy, strategy, operations), the marketing mix, segmentation, targeting, positioning, branding, and marketing communications. It defines marketing as a process of identifying customer needs and wants and fulfilling them profitably. Segmentation involves dividing the market into distinct groups with common traits. Targeting selects the most attractive segments and positioning determines how the product will be perceived relative to competitors in the target segment's mind. The marketing mix or 4Ps (product, price, place, promotion) are the tactical elements used to satisfy the target market.
The document discusses how businesses should reassess and adjust their marketing strategies in response to COVID-19 by reviewing the 4Ps of marketing - product, place, price, and promotion. It provides examples of how companies have adapted each P and recommends that marketers 1) consider changes to their product or service offerings to remain relevant, 2) adjust pricing models to increase affordability, 3) ensure customers can still easily access offerings through appropriate channels, and 4) tailor promotional messaging to resonate with audiences experiencing heightened worries during the pandemic. The goal is to understand shifting customer needs and priorities and cut through the confusion, calamity and complexity created by the crisis with targeted marketing responses.
Marketing involves identifying and satisfying customer needs profitably. It encompasses the 7Ps - product, price, place, promotion, people, process, and physical evidence. Developing an effective marketing strategy requires understanding customers and coordinating the 7Ps through a planning process. The strategy is then implemented through a specific action plan that is constantly revised based on ongoing research and progress.
This document discusses the nature and scope of marketing. It defines marketing as an economic, legal, social, managerial, and philosophical process. Marketing involves transferring ownership of goods from producers to consumers through business activities. It aims to satisfy customer needs and wants to earn profits. The scope of marketing includes studying consumer behavior, production planning, pricing, distribution, promotion, and ensuring customer satisfaction. Marketing management involves planning, organizing, directing, coordinating, and controlling marketing activities to achieve goals. An effective strategic marketing plan guides a company's operations and decisions. It involves market research, segmentation, and developing promotional strategies to penetrate new markets.
Introduction to marketing management-1.pdfOshadiVindika
This document defines key marketing terms and concepts. It begins by defining market, marketing, and marketing management. It then provides definitions of marketing from the AMA and Philip Kotler. Marketing management is explained as planning and executing ideas, goods, and services to create value for customers. The goals of marketing are to attract new customers and keep current customers. Several marketing philosophies are outlined, including the production, product, selling, marketing, and societal concepts. The marketing process and core concepts around needs, products, value, exchange, and markets are also summarized.
The document discusses various marketing concepts including:
1. Marketing is a form of communication with customers using tools like advertising, promotion, and product design. Selling focuses on short-term goals like market share while marketing considers long-term brand building.
2. The 4Ps of marketing are product, price, place, and promotion. Product positioning involves communicating a product's value relative to competitors. Market segmentation divides broad markets into subsets with common needs.
3. Other concepts covered are USP, CRM, brand equity, the product lifecycle, competitive advantage, and the roles of a marketing manager.
Kurt Wehrle speaks on Marketing and its ObjectivesKurt Wehrle
Kurt Wehrle said Marketing is the process of getting people interested in your company's products or services. Marketing is the process of generating leads or customers who are interested in your products and services. Marketing is the activities that a company conducts to facilitate the purchase or sale of a product, service or product. Marketing is the process of teaching consumers why they should choose your product or service over a competitor's, and is a persuasive form of communication.
https://www.kurtwehrle.com/
https://www.architectmagazine.com/firms/kurt-wehrle
https://www.crunchbase.com/person/kurt-wehrle
https://www.linkedin.com/in/kurtwehrle
https://30seconds.com/KurtWehrle/
The document discusses various definitions and concepts related to marketing. It compares alternative definitions of marketing and examines the exchange process, marketing mix, and functions of marketing. It explores the importance of marketing to companies and society. The document also analyzes old and new marketing concepts, and the impact of modern marketing approaches. It discusses how perspectives have shifted from production-oriented to customer-oriented concepts over time.
The document discusses key concepts in marketing including definitions of marketing, the marketing mix (4Ps), and different marketing concepts. It provides details on the evolution of marketing from a production era focused on efficiency to a selling era to today's customer-focused marketing era. The key aspects of marketing covered include identifying customer needs, developing products and services to meet those needs, determining pricing, distribution channels, and promotional strategies in an integrated marketing mix to achieve organizational goals of profitability and customer satisfaction.
Slides of my session at ITM, Mumbai. Introduction to Marketing. Session 1. Includes:
What is Marketing
Marketing Defined
Core Concepts
Marketing Process
Marketing Philosophies
Towards new marketing assumptions
Functions of Marketing
The Four 4 Ps The Marketing Variables
Market Segmenting
Identify sub-markets within market
Decide which one(s) to pursue (target)
Design marketing mix(es) to be attractive to targeted segment's
Demographics - age, race, sex, income, education
Geographic - country, state, urban/rural, climate
Psychographics -attitudes, values, beliefs, personality traits
Behavioral - benefits, usage.
Market consists of people with both the desire and ability to buy
mbm_6109_cat_one[1] CAT 1.docx Submitted for review CAT 1ahimbisibwelamed
The marketing environment for industrial markets differs from consumer markets in several key ways:
1. The interface level involves key participants like input suppliers, distributors, facilitators, and competitors that directly interact with industrial firms in facilitating production, distribution, and purchases.
2. The publics level includes financial publics, the independent press, public interest groups, the general public, and internal publics that can help or hinder industrial firms' goals.
3. Strategic planning for industrial markets must consider the unique dynamics of the interface level and influence of various publics, unlike strategic planning for consumer markets which focuses more on individual consumers.
The document discusses various aspects of corporate communications and marketing, including marketing communication, integrated marketing communications, and different communication tools. It explains that marketing communication aims to disseminate information about an organization to selected markets in order to induce initial purchases and achieve post-purchase satisfaction. Integrated marketing communications involves blending different communication elements, such as advertising, personal selling, and sales promotion, to communicate consistently with the market. Direct marketing and exhibitions are also discussed as important communication tools.
The document discusses the marketing mix of McKinsey & Company, a global management consulting firm. It describes McKinsey's approach to the traditional 4Ps as well as the extended 7Ps marketing mix. For product, McKinsey offers management consulting services. For price, it uses premium pricing to maximize profits while ensuring client satisfaction. For place, it provides services in clients' offices or its own 127 offices worldwide. For promotion, McKinsey relies on word-of-mouth from past successful projects rather than direct advertising. It emphasizes having the right people and processes to ensure service excellence. The professional workplace and behavior of consultants form the physical evidence of McKinsey's high-quality brand.
Toyota is a popular vehicle manufacturer in Sri Lanka with over 75% market share. The document discusses Toyota's marketing mix strategies, including the 4Ps and 7Ps frameworks. It analyzes Toyota's product offerings, placement and distribution channels, pricing approaches, and promotional activities. Toyota aims to provide safe, efficient mobility through technological innovations like automated driving and connected vehicles. It seeks to contribute to societal progress through open innovation and partnership.
The document discusses the marketing strategy for launching a new product by Mobile Manufacturing Inc. It outlines the key elements of the marketing mix - product, price, place, and promotion. For the product, it recommends a thorough analysis of the lifecycle. For price, it recommends a penetration pricing strategy to gain market share. For promotion, it suggests an integrated approach using various channels. For place, it recommends focusing on youth and early adopters. The marketing strategy aims to aid Mobile Manufacturing in gaining market penetration in overseas markets as well.
This document discusses various aspects of marketing and promotion for community organizations and enterprises. It covers creating an image, advertising, producing a marketing plan, promoting the organization to the community, generating publicity, and selling. Effective marketing requires understanding customer needs, defining the product or service, establishing pricing strategies, and developing promotional strategies. The marketing mix of product, price, place, and promotion must work together. Marketing to both funders and service users is important for community groups.
Welcome to the dynamic world of product marketing! Whether you're a seasoned marketing professional or just stepping into the captivating realm of marketing, understanding the nuances of product marketing is essential. In this article, we're going to take a deep dive into the heart of product marketing and explore what it entails.
Marketing is a system of business activities designed to plan, price, promote, and distribute products and services to target markets. The key aspects of implementing the marketing concept are having a customer orientation focused on customer satisfaction and building long-term relationships, coordinating all marketing activities to create consistent messaging, and aligning organizational objectives around both performance and societal responsibility.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART KALYAN CHART
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This document provides an overview of key marketing concepts. It defines marketing as a social process involving the exchange of goods and services to satisfy needs and wants. The core concepts discussed include needs, wants and demand, products and services, customer value, exchange and relationships. It also distinguishes between selling and marketing, and describes the marketing concept orientation which focuses on customer needs rather than production. Key elements of the marketing environment, including internal factors like staff and resources, and micro factors like customers and suppliers, are also summarized.
This document provides an overview of key marketing concepts including definitions of marketing, the three levels of marketing (philosophy, strategy, operations), the marketing mix, segmentation, targeting, positioning, branding, and marketing communications. It defines marketing as a process of identifying customer needs and wants and fulfilling them profitably. Segmentation involves dividing the market into distinct groups with common traits. Targeting selects the most attractive segments and positioning determines how the product will be perceived relative to competitors in the target segment's mind. The marketing mix or 4Ps (product, price, place, promotion) are the tactical elements used to satisfy the target market.
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Marketing involves identifying and satisfying customer needs profitably. It encompasses the 7Ps - product, price, place, promotion, people, process, and physical evidence. Developing an effective marketing strategy requires understanding customers and coordinating the 7Ps through a planning process. The strategy is then implemented through a specific action plan that is constantly revised based on ongoing research and progress.
This document discusses the nature and scope of marketing. It defines marketing as an economic, legal, social, managerial, and philosophical process. Marketing involves transferring ownership of goods from producers to consumers through business activities. It aims to satisfy customer needs and wants to earn profits. The scope of marketing includes studying consumer behavior, production planning, pricing, distribution, promotion, and ensuring customer satisfaction. Marketing management involves planning, organizing, directing, coordinating, and controlling marketing activities to achieve goals. An effective strategic marketing plan guides a company's operations and decisions. It involves market research, segmentation, and developing promotional strategies to penetrate new markets.
Introduction to marketing management-1.pdfOshadiVindika
This document defines key marketing terms and concepts. It begins by defining market, marketing, and marketing management. It then provides definitions of marketing from the AMA and Philip Kotler. Marketing management is explained as planning and executing ideas, goods, and services to create value for customers. The goals of marketing are to attract new customers and keep current customers. Several marketing philosophies are outlined, including the production, product, selling, marketing, and societal concepts. The marketing process and core concepts around needs, products, value, exchange, and markets are also summarized.
The document discusses various marketing concepts including:
1. Marketing is a form of communication with customers using tools like advertising, promotion, and product design. Selling focuses on short-term goals like market share while marketing considers long-term brand building.
2. The 4Ps of marketing are product, price, place, and promotion. Product positioning involves communicating a product's value relative to competitors. Market segmentation divides broad markets into subsets with common needs.
3. Other concepts covered are USP, CRM, brand equity, the product lifecycle, competitive advantage, and the roles of a marketing manager.
Kurt Wehrle speaks on Marketing and its ObjectivesKurt Wehrle
Kurt Wehrle said Marketing is the process of getting people interested in your company's products or services. Marketing is the process of generating leads or customers who are interested in your products and services. Marketing is the activities that a company conducts to facilitate the purchase or sale of a product, service or product. Marketing is the process of teaching consumers why they should choose your product or service over a competitor's, and is a persuasive form of communication.
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https://www.architectmagazine.com/firms/kurt-wehrle
https://www.crunchbase.com/person/kurt-wehrle
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https://30seconds.com/KurtWehrle/
The document discusses various definitions and concepts related to marketing. It compares alternative definitions of marketing and examines the exchange process, marketing mix, and functions of marketing. It explores the importance of marketing to companies and society. The document also analyzes old and new marketing concepts, and the impact of modern marketing approaches. It discusses how perspectives have shifted from production-oriented to customer-oriented concepts over time.
The document discusses key concepts in marketing including definitions of marketing, the marketing mix (4Ps), and different marketing concepts. It provides details on the evolution of marketing from a production era focused on efficiency to a selling era to today's customer-focused marketing era. The key aspects of marketing covered include identifying customer needs, developing products and services to meet those needs, determining pricing, distribution channels, and promotional strategies in an integrated marketing mix to achieve organizational goals of profitability and customer satisfaction.
Slides of my session at ITM, Mumbai. Introduction to Marketing. Session 1. Includes:
What is Marketing
Marketing Defined
Core Concepts
Marketing Process
Marketing Philosophies
Towards new marketing assumptions
Functions of Marketing
The Four 4 Ps The Marketing Variables
Market Segmenting
Identify sub-markets within market
Decide which one(s) to pursue (target)
Design marketing mix(es) to be attractive to targeted segment's
Demographics - age, race, sex, income, education
Geographic - country, state, urban/rural, climate
Psychographics -attitudes, values, beliefs, personality traits
Behavioral - benefits, usage.
Market consists of people with both the desire and ability to buy
mbm_6109_cat_one[1] CAT 1.docx Submitted for review CAT 1ahimbisibwelamed
The marketing environment for industrial markets differs from consumer markets in several key ways:
1. The interface level involves key participants like input suppliers, distributors, facilitators, and competitors that directly interact with industrial firms in facilitating production, distribution, and purchases.
2. The publics level includes financial publics, the independent press, public interest groups, the general public, and internal publics that can help or hinder industrial firms' goals.
3. Strategic planning for industrial markets must consider the unique dynamics of the interface level and influence of various publics, unlike strategic planning for consumer markets which focuses more on individual consumers.
The document discusses various aspects of corporate communications and marketing, including marketing communication, integrated marketing communications, and different communication tools. It explains that marketing communication aims to disseminate information about an organization to selected markets in order to induce initial purchases and achieve post-purchase satisfaction. Integrated marketing communications involves blending different communication elements, such as advertising, personal selling, and sales promotion, to communicate consistently with the market. Direct marketing and exhibitions are also discussed as important communication tools.
The document discusses the marketing mix of McKinsey & Company, a global management consulting firm. It describes McKinsey's approach to the traditional 4Ps as well as the extended 7Ps marketing mix. For product, McKinsey offers management consulting services. For price, it uses premium pricing to maximize profits while ensuring client satisfaction. For place, it provides services in clients' offices or its own 127 offices worldwide. For promotion, McKinsey relies on word-of-mouth from past successful projects rather than direct advertising. It emphasizes having the right people and processes to ensure service excellence. The professional workplace and behavior of consultants form the physical evidence of McKinsey's high-quality brand.
Toyota is a popular vehicle manufacturer in Sri Lanka with over 75% market share. The document discusses Toyota's marketing mix strategies, including the 4Ps and 7Ps frameworks. It analyzes Toyota's product offerings, placement and distribution channels, pricing approaches, and promotional activities. Toyota aims to provide safe, efficient mobility through technological innovations like automated driving and connected vehicles. It seeks to contribute to societal progress through open innovation and partnership.
The document discusses the marketing strategy for launching a new product by Mobile Manufacturing Inc. It outlines the key elements of the marketing mix - product, price, place, and promotion. For the product, it recommends a thorough analysis of the lifecycle. For price, it recommends a penetration pricing strategy to gain market share. For promotion, it suggests an integrated approach using various channels. For place, it recommends focusing on youth and early adopters. The marketing strategy aims to aid Mobile Manufacturing in gaining market penetration in overseas markets as well.
This document discusses various aspects of marketing and promotion for community organizations and enterprises. It covers creating an image, advertising, producing a marketing plan, promoting the organization to the community, generating publicity, and selling. Effective marketing requires understanding customer needs, defining the product or service, establishing pricing strategies, and developing promotional strategies. The marketing mix of product, price, place, and promotion must work together. Marketing to both funders and service users is important for community groups.
Welcome to the dynamic world of product marketing! Whether you're a seasoned marketing professional or just stepping into the captivating realm of marketing, understanding the nuances of product marketing is essential. In this article, we're going to take a deep dive into the heart of product marketing and explore what it entails.
Marketing is a system of business activities designed to plan, price, promote, and distribute products and services to target markets. The key aspects of implementing the marketing concept are having a customer orientation focused on customer satisfaction and building long-term relationships, coordinating all marketing activities to create consistent messaging, and aligning organizational objectives around both performance and societal responsibility.
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NOTES_ON_PRINCIPLES_OF_MARKETING_DEFINIT.docx
1. NOTES ON PRINCIPLES OF MARKETING
Week: 1
LECTURE 1:
Lecture Synopsis: Definition of Marketing
DEFINITION OF MARKETING
.
A modernmarketing system
Each party
inthe systemadds
value
Marketingbasicallytalksaboutmanagingmarkettobringaboutprofitable customerrelationships.Itishowevernoteasytocreate such
relationships.Sellersmustsearchforbuyers,identifytheirneeds,designgoodmarketofferings,setpricesforthem,promote them,andstore
and deliverthem. Suchactivitiesasconsumerresearch,productdevelopment,communication,distribution,pricingandservice are core
marketingactivities.
Suppliers
Company
Competitor
s
Marketing
intermediaries
Final
consumers
2. Marketinginnot justdone by sellersare mostpeopleare ledtobelieve,itcanalsobe done by buyers,this isdone throughtheirsearch
for products,interactwithcompaniestoobtaininformationandmake theirpurchases.
The figure above showsthe mainelementsinamarketingsystem.Marketingisnotalwaysasmoothride,butit alsoinvolvesservinga
marketof final customerseveninthe face of ‘aggressive’competitors.The companiesandcompetitors researchthe marketandinteractwith
consumerssotheycan be betterpositionedtounderstandtheirneeds.Thentheycanpackage andsendtheirmarketofferingsandmessagesto
consumers,eitherdirectlyorthroughmarketintermediaries.Itisgoodto note that each partyin the marketingstructure is affectedbymajor
environmental forces(demography,economic,natural,technological,political andsocial/cultural).
Each party alsoadds value forthe nextlevel.The arrowsrepresentrelationshipsthatmustbe developed,maintainedandmanaged.Asa
result,acompany’ssuccessat buildingprofitablerelationshipsdependsnotonlyonitsownactionsbutalso onhowwell the entire system
servesthe needsof final consumers.SierraLeone BottlingCompanyforexamplecanneverbe able toprovide cheapproductsif itssuppliersare
not able andwillingtosupplymerchandiseatlowcost.
Designinga customer-drivenmarketingstrategy:
Afterfullyunderstandingthe marketplaceandthe targetcustomers,the marketingmanager’s nextjobwill be todesign aneffective customer-
drivenmarketingstrategy,alsoknownasmarketingmanagement;anart andscience of choosingtargetmarketsandbuildingprofitable
relationshipwiththem.The desire of everymarketeristofind,attract,keepandgrow targetcustomersby creating,delivering and
communicatingsuperiorcustomervalue.
To designanattractive and winningmarketingstrategy,the marketingmanagermustanswertwomajorquestions; whatcustomerswillwe serve
(targetmarket)?and howcanweserve thesecustomersbest?
(i) SelectingCustomerstoserve:Everycompanymustfirstdecide the setof people itwill serve,thisisachievedbydividingthe market
intosegments –marketsegmentationandthenselectingwhichsegmentof the markettogo after – target marketing.
(ii) ChoosingaValue Proposition:The companymustalsodecide howitwill serve targetcustomers –whichdifferentwillitcreate and
howwell isitreadyto positionitself inthe marketplace.
(iii) MarketingManagementOrientations:Marketingmanagementalwayswantstodesignstrategiesthatare benton buildingprofitable
relationshipswithtargetconsumers. Butwhatare the guidingprinciplesorphilosophiesof suchmarketingstrategies?Howfar
shouldtheygoin consideringthe interestof the customers,the organization,andthatof the society?Oftenatime,these interests
have conflicted.
3. There are basicallyfive alternative conceptsthroughwhichorganizationsdesignandcarryout theirmarketingstrategies,theyare asfollow;
The ProductionConcept
The Product Concept
The SellingConcept
The MarketingConceptand
The Societal MarketingConcept
The ProductionConcept: thisconceptwhichisone of the oldestholdsthatconsumerswill alwaysfavourproductsthatare available andhighly
affordable,asaresult,managementshouldfocusonimprovingproductionanddistributionefficiencyinordertoattract and retainmore
customers.
The Product Concept:This conceptalsoholdsthatconsumerwill favourproductsthatofferthe mostin termsof quality,performance and
innovative features.Goingbythisconcept,producersshouldfocusandstayfocusedonimprovingthe qualityof theirproducts.
The SellingConcept:The sellingconceptisfollowedbymost companies;itstatesthatconsumerswill notbuymuchof a company’sproducts
unlessit’sfullyengagedin sellingandpromotioneffort.
The MarketingConcept: Thisconceptholdsthat organizational goalscanonlybe achievedif the companyhasvastknowledge onthe needsand
wantsof the targetmarketsand doingall itcould todeliverthose marketneedsandwantsbetterthantheircompetitors.
The Societal Marketing Concept:Thisconceptsholdsthat all marketingstrategiesshouldbe gearedtowardsthe deliveringof value tothe target
customersina way that improvesboththe consumer‘s andsociety’swelfare.Inthisdirection,mostbigbusinessesandmarketersare now
preachingthe conceptof sharedvalue,somethingthatrecognizessocietal needsandnotjusteconomicneedsdefine markets.
Construct an integratedmarketingprogramme that deliverssuperiorvalue
The marketingstrategyof everycompanyshouldoutline whichcustomersitwill serveandhowitwill create value forthem.Nexttocreating
value forcustomers,the marketerwill thencome upwithanintegratedmarketingprogramme thatwill actuallydeliverthe intendedvalue to
the target customers.Suchmarketingprogramme shouldbe able toestablishorbuildagoodcustomerrelationshipbytransformingthe
marketingstrategyintoaction.The marketingprogramme consistsof the firm’smarketingmix;thisisaset of marketingtoolsthatfirmsuse to
implementtheirmarketingstrategies.
4. The MarketingMix
Simplyputthe MarketingMix is a tool usedby businessesandMarketerstohelpdetermine aproduct or brandsoffering.The 4P’shave been
associatedwiththe MarketingMix since theircreationby EdmundJerome McCarthy (February20, 1928 – December3,2015) in1960.
Product - The Productshouldfitthe taskconsumerswantit for,it shouldworkandit shouldbe whatthe consumersare expectingto
get.
Place – The productshouldbe available fromwhereyourtargetconsumerfindsiteasiesttoshop.Thismaybe HighStreet,Mail Orderor
the more current optionviae-commerce oranonline shop.
Price – The Productshouldalwaysbe seenasrepresentinggoodvalue formoney.Thisdoesnotnecessarilymeanitshouldbe the
cheapestavailable;one of the maintenetsof the marketingconceptisthatcustomersare usuallyhappytopay a little more for
somethingthatworksreallywellforthem.
Promotion – Advertising,PR,SalesPromotion,Personal Sellingand,inmore recenttimes,Social Mediaare all keycommunicationtools
for an organisation.These toolsshouldbe usedtoputacrossthe organisation’smessage tothe correctaudiences inthe mannerthey
wouldmostlike tohear,whetheritbe informativeorappealingtotheiremotions.
In the late 70’s it was widelyacknowledgedbyMarketersthatthe MarketingMix shouldbe updated.Thisledtothe creationof the Extended
MarketingMix in 1981 by Booms& Bitnerwhichadded3 newelementstothe 4 P’sPrinciple.ThisnowallowedtheextendedMarketingMix to
include productsthatare servicesandnot justphysical things.
Extended7 P’s:
People – All companiesare reliantonthe people whorunthemfromfrontline Salesstaff tothe ManagingDirector.Havingthe right
people isessential because theyare asmucha part of your businessofferingasthe products/servicesyouare offering.
Processes–The deliveryof yourservice isusuallydonewiththe customerpresentsohowthe service isdeliveredisonce againpartof
whatthe consumerispayingfor.
Physical Evidence – Almostall servicesincludesome physical elementsevenif the bulkof whatthe consumerispayingforisintangible.
For example ahairsalonwouldprovide theirclientwithacompletedhairdoandaninsurance companywouldgive theircustomerssome
5. formof printedmaterial.Evenif the material isnotphysicallyprinted(inthe case of PDF’s) theyare still receivinga“physical product”by
thisdefinition.
Thoughin place since the 1980’s the 7 P’sare still widelytaughtdue totheirfundamentallogicbeingsoundinthe marketingenvironmentand
marketersabilitiestoadaptthe Marketing Mix to include changesincommunicationssuchassocial media,updatesinthe placeswhichyoucan
sell aproduct/service orcustomersexpectationsinaconstantlychangingcommercial environment.
Is there an 8th P?
In some spheresof thinking,there are 8 P’sinthe MarketingMix. The final Pis ProductivityandQuality.Thiscame fromthe oldServices
MarketingMix and is foldedintothe ExtendedMarketingMix bysome marketerssowhatdoesitmean?
The 8th P of the Marketing Mix:
Productivity& Quality - ThisP asks“is whatyou’re offeringyourcustomeragooddeal?”Thisis lessaboutyouas a businessimproving
your ownproductivityforcostmanagement,andmore abouthowyourcompanypassesthisontoits customers.
Evenafter31 years (or54 in the case of the original P’s) the MarketingMix isstill verymuchapplicable toamarketer’sdayto daywork.A good
marketerwill learntoadaptthe theoryto fitwithnotonlymoderntimesbuttheirindividual businessmodel.
Buildprofitable relationships and create customerdelight:
The firstthree stepsinthe marketingprocesscombined,leadstothe fourthandmost importantstepof all:buildingandmanagingprofitable
customerrelationships.
CustomerRelationshipManagement:Customerrelationshipmanagement(CRM) isprobablythe mostimportantconceptof modernmarketing.
It has to dowiththe effective managementof detailedinformationabout individual customersandcarefullymanagingcustomertouch-pointsin
orderto maximize customerloyalty.
Most marketershave howevercavedabroadermeaningforthe CRMconcept,to them;CustomerRelationshipManagementisthe overall
processof buildingandmaintainingprofitable customerrelationshipbydeliveringsuperiorcustomervalue andsatisfaction. Itdealswithall
aspectsof acquiring,keepingandgrowingcustomers.
6. The two mainrelationshipbuildingblocksare;
CustomerValue
CustomerSatisfaction
CustomerValue:The majorkeyto buildinglastingcustomerrelationshipistocreate superiorcustomervalue.Attractingandretaining
customersisneveraneasytask. Customersare oftenfacedwithwide range of productsandservicesfromwhich theyare tochoose. Customers
oftenbuy fromfirmsthat offerthe highestcustomer-perceivedvalue.
CustomerSatisfaction: Thistalksabout the product’sperceivedperformanceinrelationsto the buyer’sexpectationsof the product. If the
product’sperformance fallsshortof the expectations,the customerisdissatisfied.Butif itmatchesexpectations,the customerissatisfied.If
performance exceedsexpectations,the customerishighlysatisfiedordelighted.
Capture value from customers to create profitsand customerequity:The firstfourstepsinthe marketingprocessemphasize building
customerrelationshipsbycreating anddeliveringsuperiorcustomervalue.The fifthandfinal stepinvolvescapturingvalue inreturnin
the form of sales,marketshare andprofits.Bybasicallycreatingsuperiorcustomervalue,the firmhassucceededincreatinghighly
satisfiedcustomerswhowithall thingsremainingthe same canstayloyal andbuy more and more of the firm’sproducts.Thiswill
meangreaterlong-runreturnsforthe firm.
Outcomesof Creating CustomerValue.
CustomerLoyalty and Retention
Share of Customers
CustomerEquity
CustomerLoyalty and Retention:A goodcustomerrelationshipmanagementcreatescustomersatisfaction.Asaresult,asatisfiedcustomer
remainsloyal and talkswell toothersaboutthe companyand itsproducts.
GrowingShare of Customer:Way beyondsimplyretaininggoodcustomerstocapture customerlifetimevalue, agoodcustomer
relationshipmanagementcanhelpmarketersincrease theirshare of customers – the share theygetof the customer’spurchasing in
theirproductcategories.
CustomerEquity: The ultimate goal of customerrelationshipmanagementistoproduce highcustomerequity.Thisisthe total
combinedcustomerlifetime value of all of the company’scurrentandpotential customers.
7. Week: 3
LECTURE 3:
The changing MarketingLandscape
-the changingeconomicEnvironment,the digital Age
THE CHANGING MARKETING LANDSCAPE.
There isa popularlyheldviewthatthe onlypermanentthinginlife is‘change’,toa verylarge extent,thissayingistrue.
As inmanyotherspheres of life,dramaticchangeskeep occurringona dailybasisinthe marketplace.AsRichardLove of HP putit ‘The
pace of change is sorapid that the abilitytochange has nowbecome acompetitive advantage.’Yogi Berra,the legendaryNew York
Yankeescatcherand manageralsosaid,‘The future ain’twhatit usedtobe.’As the marketplace keepschanging,somustthose who
operate init.
Under thistopic,we will examine five majordevelopmentsthathave changedandkeepchangingthe marketplace:
the changing economicenvironment
the digital age
the growth of not-for-profitmarketing
rapid globalizationand
the call for more ethics and social responsibility
8. The changing economicenvironment:Asrecentas in2008, the UnitedStatesexperiencedaGreatRecession,a terribleeconomicmeltdown,
the firstof itskindsince the Great Depressioninthe 1930s. The stock marketcrushedand trillionsof dollarsof marketvalue simply
evaporated.The financial crisisleftconsumersshortof bothmoneyandconfidence inthe financial system.
The Recessioncausedmostconsumerstosettheirspendingprioritiesrightandcutdownon theirbuying.Afteryearsof overspending,
consumerswere tightenedtheirpursescutbackon theirspending.
The Digital Age:The explosivegrowthindigital technologyhasfundamentallychangedthe marketplace.Ithaschangedthe waywe live,
think,communicate, shop,share information,accessinformationetc.Thishashada major impacton the waycompaniesbringvaluesto
theircustomers.Be thatas itmay,technologyhasbecome anintegerandnecessarypartof us.
The growth of not-for-profitmarketing:inrecenttimes,the act of marketinghasbecome a majorpart of the strategiesof manynot-for-
profitorganizations,suchas colleges,Universities, hospitals,museums,zoosetc.These not-for-profitsface stiff competitionforsupportand
membership.A soundmarketingstrategycanhelpthemattract not only membershipbutfundsandsupport.
Rapid globalization:Asmarketersare redefiningtheircustomerrelationships,theyare alsotakingafreshlookat the waysinwhichthey
relate withthe broaderworldaroundthem.In the worldtoday,everycompany,large orsmall,istouchedinone wayor the otherby global
competition.
The call for more ethicsand social responsibility:Marketersare alsorapidlyrethinkingtheirrelationshipswithsocial valuesand
responsibilitiesandwiththe veryenvironmentinwhichtheyare operating. Today,marketersare calledupontodevelopsustainableand
environmentallyfriendlymarketingstrategies. Inmostcompanies,corporate ethicsandsocial responsibilityhave becomeahottopic for
discussion.Everycompany’sactioncanaffectcustomerrelationships.Mostcustomersaroundthe worldtodayexpectcompaniestodeliver
value ina sociallyandenvironmentallyresponsible way.
9. Week: 4
LECTURE 4: The Global Market place
Lecture Synopsis: Looking at the global marketing environment,
Deciding whether to go global,
Deciding of which market place to enter,
Deciding how to enter the market
LOOKING AT THE GLOBAL MARKET ENVIRONMENT
Previously,mostcompaniespaidlittle ornoattentionatall tointernational trade.Managersdidnotneedtolearnotherlanguages,
deal withstrange changingcurrencies,face political aswell aslegaluncertainties,orevenadapttheirproductstodifferentcustomer
needs expectations. Today however with globalization taking its toll on human activities, the situation has changed dramatically.
Most organizations have now taken a global dimension and have gone global.
But before deciding to go global, a company must understand the international marketing environment. That environment have
over the years gone through a great deal of changes creating both new opportunities and problems.
The International Trade System:
Firmsthatwantto global muststartbyunderstandingthe internationaltrade system.Whensellingtoanothercountry,afirmmay
be faced with series of restrictions. Governments may charge tariffs, taxes on certain imported products in their bid to raise
revenue orprotectdomesticfirms.Mostgovernmentsaroundthe worlduse tariff toforce favourable trade behaviousfromother
nations.
10. Countriesmayalsosetquotasor limitsonthe amountof foreignimportsthattheywill acceptincertainproductscategories.This
is often done to conserve the foreign exchange and protect local industries and employment. Firms may also be faced with
challengesfromexchange controls – thislimitsthe amount of foreignexchange andthe exchange rate againstother currencies.
There could also be some nontariff trade barriers,suchas biasesagainstits bids,restrictive productstandardsorexcessivehost-
country regulations or enforcements.
However, there are still established institutions around the world that can help facilitate easier trade between nations of the
world. Example, World Trade Organization (WTO) and various regional free trade agreements.
-The WorldTrade Organization: The General AgreementonTariffsand Trade (GATT),establishedin1947 and modifiedin 1994,
was designed to promote world trade by reducing tariffs and other international trade barriers. Thisbody was later replaced by
the WorldTrade Organization in1995 andnowcarries outthe functionsonce dedicatedtoGATT.Previously,GATTandnowWTO
members,currentlyconstitutingof 153 nations,have at leastroundsof negotiationstoreassesstrade barriersandestablishnew
rulesfor international trade.The WTOalso has powerto impose international trade sanctionandmediate global trade disputes.
The WTO has so far been very successful, in its first seven round negotiations, it succeeded in reducing the average worldwide
tariff on manufactured goods from 45% to just 5%.
-Regional Free Trade Zone: Certain countries have formed Free Trade Zones or Economic Communities.These are groups of
nations organized to work toward common goals in the regulation of international trade. Such as the Economic Community of
West African States (ECOWAS) - 1975, European Union (EU) – 1957. Both set out to create a single economic zone for their
individual regions byreducingbarriersto the free flowof products,services,finances,andlabouramong membercountriesand
developing policies on trade with member countries.
The Economic Environment:
The international marketershave the dutyof studyingthe economyof eachcountry.Two basiceconomicfactorsmake a country
attractive as a market: its industrial structure and its income distribution.
INDUSTRIAL STRUCTURE
The country’s industrial structure shapes its product and service needs, income levels, and employment levels. There are four
main types of industrial structures:
Subsistence economies: In a subsistence economy, the vast majority of the people engage in simple agriculture. They
consume most of their output and barter the rest for simple goods and services. This sort of economy offers very few
market opportunities. Many African countries fall into this category.
11. Raw material exporting economy: These are rich economies in one or more natural resources but poor in other ways.
Much of their revenue comes from exporting these resources. These countries are also good markets for large
equipment, tools and supplies and trucks.
Emergingeconomies(industrializingeconomies): Inthissortof economy,fastgrowthinthe manufacturingresultsinrapid
overall economicgrowth.Asmanufacturingincreasesinsuchcountries,thereisalsoanincreasingneedforimportedraw
materials.
Industrialeconomies: Theyare majorexportersof manufacturedgoods,servicesandinvestmentfunds.Theytrade goods
among themselves and also export them to other types of economies for raw materials and semi-finished goods.
INCOME DISTRIBUTION
This is the second economic factor that attracts a state as a market to international firms.Industrialized nations may have
low,medium,andhigh-income households.Incontrast,countrieswithsubsistence economiesconsistmostlyof households
withverylow familyincomes.Butothercountriesmaystill have householdswitheitherverylowor very highincome.Even
poor or emerging economies may be attractive markets for all kinds of goods. These days, companies in a wide range of
industries are increasingly becoming interested in even low and middle income consumers in emerging economies.
Political-Legal Environment:
Every country in the world has its own political-legal system,and largely differs from state to state. In considering therefore
whether to do business in a particular country, a company should consider factors such as the country’s attitudes toward
international buying, government bureaucracy, political stability and monetary regulations.
Cultural Environment:
Each country has its own culture, tradition, norms and taboos. In strategizing for a global marketing venture, companies must
understand how culture affects consumer reactions in each of its world markets. In turn, they must also understand how their
strategies affect local cultures.
DECIDING WHETHER TO GO GLOBAL
Notall companiesneedtoventureintointernationalmarketstosurvive.Forexample,mostlocal businessesneedtotrade wellonly
in theirlocal marketplaces.Most often,operating domesticallyiseasierandsafer.Operatingwithintheircountries,companiesdo
not need to learn another country’s language and laws. They also do not have to deal with unstable currencies, face political and
legal uncertainties, andredesign theirproductstosuitdifferentcustomerexpectations.However,companiesoperatinginthe global
12. industries,where their strategic positions inspecific markets are affectedstronglyby their overall global positions,must compete
on a regional or worldwide basis to succeed.
Before goingglobal,acompanymustweighseveral risksandanswermanyquestionsaboutitsabilitytooperate inthe global arena;
- Can the company learn to understand the preferences and buyer behavior of consumers in other countries?
- Can it offer competitively attractive products?
- Will it be able to adapt to other countries’ business cultures and deal effectively with foreign nationals?
- Do the company’s managers have the necessary international experience?
- Has management considered the impact of regulations and the political environments of other countries?
DECIDING WHICH MARKET(S) TO ENTER
Before going abroad, the company should try to define its international marketing objectives and policies. It should decide what
volume of foreign sales it wants. Most companies start small when they go abroad. Some even decide to stay small, viewing
international salesasa small part of theirbusiness.Othercompanieshave biggerplans,however,seeinginternational businessas
equal to or even more important than their domestic business. In deciding which marketsto enter, the company must decide on
the following;
- The company needstodecide onhow manycountriesit wantsto market.Companiesmustbe verycareful not to spread
themselves too thin or expand beyond their capabilities by operating in too many countries too soon.
- The companyneedstodecide onthe typesof countriesto enter.Howattracta countryislargelydependsonthe product,
geographical factors, income and population, political climate, and other considerations.
- After listing possible international markets, the company must carefully evaluate each one.
Possible global marketsshouldbe rankedon several factors,includingmarketsize,marketgrowth,the costof doingbusiness,competitive
advantage, and risk level. This is to be able to determine the potential of each market.
DECIDING HOW TO ENTER THE MARKET
As long as a company has to sell in a foreign country, it must determine the best mode of entry. Its choices are exporting, joint venturing, and direct
investment.
Exporting:
The simplest way to enter a foreign market is through exporting. The company may passivelyexport its surpluses from time to
time,orit maymake an active commitmenttoexpandexportstoa particularmarket.Ineithercase,the companyproducesall its
goods in its home country. It may or may not modify them for its export market.
Joint Venturing:
13. This is the second methodexposedtocompaniesforenteringthe foreignmarket;Joiningwithforeigncompaniestoproduce or
marketproductsor services. Jointventure is differentfromexportinginthat,ina jointventure,the companyjoinswithahostof
country partnersto sell ormarket abroad.It also differsfromdirectinvestmentinthatan associationisformedwithsomeonein
the foreigncountry.There are basicallyfourtypesof jointventures;Licensing,ContractManufacturing,ManagementContracting,
and Joint Ownership.
- Licensing: This is a simple way for a manufacturer to enter the international market. The company enters into an
agreement with a licensee in the foreign market. For a fee or royalty payments, the licensee buys the right to use the
company’s manufacturing process, trademark, patent, trade secret, or other items of value.
- Contract Manufacturing: Another option is contract manufacturing, this is a situation in which the company makes
agreementswithmanufacturers inthe foreignmarketto produce its productsor provide itsservices.The disadvantages
of this type of joint venture are decreased control over the manufacturing process and loss of potential profits on
manufacturing.The benefitshoweverare the chance tostartfaster,withlessrisk,andthe lateropportunityeithertoform
a partnership with or buy out the local manufacturer.
- ManagementContracting:Underthistype of venture,thedomesticfirmprovidesthemanagementknow-howtoaforeign
companythat suppliesthe capital. Orbetterstill,the domesticfirmexportsmanagement services rather than products.
- Joint Ownership: Here, one company joins forces with foreign investors to create a local business in which they share
possessionandcontrol.A companymaybuyaninterestinalocal firm,orthetwopartiesmayformanewbusinessventure.
Sometimes this sort of venture is needed economic and political reasons.
Direct Investment:
Thisis the biggestformof investmentina foreignmarket.Thishasto do withthe companydevelopingaforeign-basedassembly
or manufacturingfacilities. Fordforexample hasmade several directinvestmentsinmostAsiancountriesoverthe pastdecades.
14. Week: 5
LECTURE 5: Product, Services and Brands
Lecture Synopsis: Definition of Product
Product and services decision
Services Marketing
PRODUCTS, SERVICES AND BRANDS:
In orderfor marketerstosuccessfullyestablishandmaintainaverygoodcustomerrelationship,amongotherthings,theymustalso
developandmanage productsandbrandsthat connectwithcustomers.Butfirstly,we will take alookatsome keydefinitions;Products,
Servicesand Experiences
Product: Product couldbe definedasanythingtangible orintangible thatcanbe offeredtoa marketfor attention,acquisition,use or
consumptionthathasthe abilitytosatisfyawantor need.
Services:Broadlydefined,are aset of productsthat constitute activities,benefits,andevensatisfactionsofferedforsale thatare
essentiallyintangibleanddonot resultinthe ownershipof anything.
Experiences:experienceshave alwaysbeenaveryimportantpartof marketingforthe most companiesaroundthe world.Today,itis
importantto note thatall mannerof firmsare recastingtheirtraditional goodsandservicestocreate experiences.Companiesthat
marketexperiences have realizedthatcustomersare reallybuyingwhatthose offerswill doforthem.A recentBMW ad puts itthis
way:‘We realizedalongtime agothat whatyou make people feel isjustasimportantaswhat youmake.’
Levelsof Product and Services
15. Productplannersneedtothinkaboutproductsand servicesonthree levels.Eachlevel of productaddsmore customervalues.The mostbasic
level isthe core customervalue,anditaddressesthe question:What isthe buyerreallybuying?Anytimeamarketerwantstodesignaproduct,
theyshouldfirstdefinethe core,orproblem-solvingbenefitsorservicesthatthe productissetto renderinrelationtowhatthe target
consumersare seeking.
At the secondlevel,productplannersmustturnthe core benefitintoanactual product.Theyneedat thisstage to developproductandservice
features,adesign,aqualitylevel,abrandname and packaging.
Lastly,productplannersmustbuildanaugmentedproductaroundthe core benefitandactual productby offeringadditional customerservices
and benefits. Forexample,the iPadismore thanjusta digital device,itprovidescustomerswithacomplete connectivitysolutions.
In a nut shell,whendevelopingaproduct,marketersmustfirstidentifythe core customervalue thatconsumersseekfromthe product.Then
designthe actual product,and finallyfindwaystoaugmentittocreate thiscustomervalue andthe most satisfyingbrandexperience.
Product and Service Classification
Productsare broadlyclassifiedintotwomaincategories; ConsumerandIndustrial Products.
ConsumerProducts: Theyare those goodsand servicesthatare boughtby final consumersforpersonal use orconsumption.
Industrial Products: these are goodsand servicesboughtbyindividuals and/ororganizations forfurtherprocessingoruse inconductinga
business.
PRODUCT AND SERVICE DECISIONS
Marketershave the responsibilityof makingdecisionswhenitcomestoproductand service inthe industryandsuchdecisions are made atthree
basiclevels;
Individual product and service decision
Product line decision
Product mix decision
Individual Product and Service Decision:Thisis basicallywithimportantdecisionstakeninthe developmentandmarketingof individual
productsand services.Itrangesfromdecisionabout productattribute,branding, packaging, labelingrightthroughto product support services.
16. . Product and Service Attributes:Developingaproductlargelyinvolvestakingcrucial decisiononthe benefitsthatproductwill offerorthe
problemsitissetto solve.Suchbenefitsare communicatedbythe attributesof the product,suchas quality,features and style and design.
i. Product quality:Thisisone major tool inthe handsof the marketer.Qualityaffectsproductorservice performance,itistherefore
closelylinkedtocustomervalue andsatisfaction.Siemensdefinesqualityas ‘qualityiswhenourcustomerscome backandour
productsdon’t.’
ii. Product Features: A product can be offeredwithvaryingfeatures. Featuresare acompetitive tool of differentiatingthe company’s
productsfrom those of itscompetitors.A companycan be able to decide onwhatand whatfeaturestoadd on itsproductsby
conductinga regularsurveyamongitscustomersandsuch questionsas;howdoyou like the product?Whichspecificfeaturesdo
youlike moston the product?Whichfeaturescouldwe addto improve the product? Couldbe putto them,answerstosuch
questionscouldprovidethe companywithrichlistof productfeatures ideas.
iii. Product Style andDesign: Thisisanotherway bywhichmarketerscan addcustomervaluestotheirproductto distinguishthem
fromthose of theircompetitorsandattractcustomers.Style anddesignare howeverslightlydifferent,whereasstyle describesthe
appearance of a product.It can be eye catching;a sensational stylemaygrabattentionandproduce pleasingaesthetics,butdoes
not necessarilymake the productperformbetter.Designismore thanskin deep;itgoestothe veryheartof the product.A good
designaddsto the product’susefulnessaswell astoitslooks.
. Product Branding: One of the most outstandingskillsof professional marketingistheirabilitytodesignandmanage abrand.Brand isa name,
term,sign,symbol,ordesign,ora combinationof all these,thatidentifiesthe productsservicesof one company,sellerorgroupof sellersand
differentiatesthemfromthose of competitors.
. Product Packaging: Packagingsimplymeansdesigningthe containerorwrapperforthe product. The major ideabehindpackagingwastohold
and protectthe product.This has howeverchangedoverthe yearsaspackaginghas become animportantmarketingtool aswell.Asone
packagingexpertputit;‘Noteveryconsumerseesabrand’sadvertisingorisexposedtothe excitingsocial mediathatyour brandis doing.Butall
of the consumerswhobuyyourproductsdo interactwith yourhumble package.’
Companieshave largelybecome aware of the powerof goodpackagingtocreate immediate consumerrecognitionof abrand.
.Product Labeling:This range fromsimple tagsattachedto productsto complex graphicsthatare part of the packaging.Labelingperforms
several functionsonaproduct.At least,the label identifiesthe productorbrand.Labelsmightalsodescribe several thingsaboutthe product –
whomade it, itscontents,howitisto be usedandhow touse itsafe.
17. . Product Support Services:Thisalsoknownas customerservice isanotherelementof productstrategy.A company’sofferusuallyconstitutes
some supportservices,whichcanbe incorporatedasminoror major part of the total offering. Supportservicesmaysuchhelptocustomersas,
droppingordersat theirhomes,cleaninguptheircarsas theyshopin yourstore,helpthemcarry theirluggage aftershop, etc.
Product line decisions:Besidesdecidingwhattoproduce as a company,productstrategyalsocallsfor buildingaproductline.A ProductLine isa
range of similarorcloselyrelatedproductsproducedbythe same company,functioninasimilarmanner,soldtothe same customergroups,
theyare marketedthroughthe same typesoutletsorfall withinagivenprice ranges. Forexample,the SierraLeone BottlingCompanyproduces
wide range of softdrinks.
Product mix decisions:Anorganizationwithseveral productlinesissaidtohave a Product Mix.A ProductMix (ProductPortfolio) istherefore
made up of all the productline anditemsthata particularselleroffersforsale.
Exercise One:Please think of a company within Sierra Leone that has a Product Mix.
SERVICES MARKETING
In recentyears,serviceshave undergone adramaticincrease andare nowresponsibleforawhopping65% of the US GDP forexample.Service
industriesvaryalot.Governmentsaroundthe worldforexample renderservicesthroughcourts,employment services,hospitals,military
services,policeandfire departments,etc.Private not-for-profitorganizationsofferservicesthroughcharities,Churches,Universities,Colleges,
Foundations,etc.BusinessOrganizationsdoitthroughairlines,hotels,insurance companies,etc.
The Nature and Characteristics ofa Service:
In designingamarketingprogramme companiesmustconsiderfourbasiccharacteristicsof service:intangibility,inseparability,variability,and
perishability.
Service Intangibility:thissimplymeansthatservice cannotbe perceivedbyanyof the five senses,ie itcannotbe seen,tasted,heard,
felt,orsmelledbefore theyare bought.However,toreduce the levelof uncertainty,buyusuallylookforsignals of servicequality.They
oftendrawconclusionsaboutqualityfromthe place,people,price,equipmentandcommunicationthattheycansee.Asa result,the
service providerhasthe taskof makingthe service tangible inone ormore waysand sendsthe rightsignal aboutthe quality of the
service.
Service Inseparability:Thismeansthatyou cannotseparate servicesfrom theirproviders,whetherthe service providersare people or
machines.
18. Service Variability:Thismeansthat the qualityof a particularservice dependsonwhoprovidesit,when,where andhowitisprovided.
Service Perishability:Thismeansthatservicescannotbe storedforlatersale or use.
Marketing Strategiesfor service Firms:
Like manufacturingcompanies,service firmsalsouse marketingstrategiestopositionthemselveswellinthe marketplace.Mostoften,theydoit
throughtraditional marketingmix activities.However,becauseservicesdifferfromtangible products,theyoftenrequire additional marketing
approaches.
The Service ProfitChain:
In the service business,the front-line service employees andthe customerofteninteracttoco-create the service.However,sucheffective
interactionlargelydependsonthe skillsof the front-line service employeesandthe supportprocessesbackingthe employees.Therefore,
mostservice companiesfocustheir attentionsonboththeiremployee andtheircustomer.Theybasicallyunderstandthe service profitchain
whichservesasa linkbetweenthe service firmprofitsandwithemployeeandcustomersatisfaction.The service profitchainconsistsof five
linkswitheachpreviouslinkleadingtoa newone:
Internal Service Quality: Superioremployee selectionandtraining,aconducive workenvironment,andstrongsupportforthose
dealingdirectlywithcustomers. Thisleadsto…
Satisfiedand Productive Service Employees:more satisfied,loyal andhardworkingemployees.Thisresultsin….
GreaterService Value:More effective andefficientcustomervalue creationandservicedelivery,whichresultsin…
Satisfiedand Loyal customers: a satisfiedcustomermayremain loyal,make repeatedpurchasesandevenreferothercustomersto
the service,thiscanresultin…
Healthy Service profitsand growth: superiorservice firmperformance.
Service marketingrequiresmuchmore thanjustthe traditional external marketingusingthe 4Ps,italsorequireswhatisknownas Internal
Marketing.Internal marketingrequiresthatservice firmsmustorientate andmotivate itscustomer-contactemployeesandsupportingservice
people toworkas a teamto provide customersatisfaction.Marketersmustgeteveryoneinthe firmtobe customercentered.
Interactive Marketing whichalsomeansthatservice qualitylargelydependsonthe quality of buyer-sellerinteractionduringthe service
encounterisalsoa veryimportantservice marketingtool tobe engaged.
19. In today’smarketplace,ascompetitionandcostsincrease,andasproductivityandqualitydecrease, thereisanincreasingneedforservice
marketingsophisticationisneeded.Service companies are facedwiththree majormarketingtasks:Theywantto increase their service
differentiation,service quality,andservice productivity.
(i) Managing Service Differentiation:Inthe currentprevailingmarketplacewith intense price competition,service marketersoften
complainaboutthe difficulttaskof differentiatingtheirservicesfromthose of competitors.Toan extentthatevencustomersfindit
difficulttodifferentiatebetweenservicesprovidedbydifferentservice provider,infactmostof themcare lessaboutthe provider
than theydothe price.The solutiontosuchprice competitionis todevelopadifferentiatedoffer,delivery,andimage.
(ii) Managing Service Quality: Ina tensedcompetitivemarketplace like ourstoday,aservice firmcandifferentiateitself bydelivering
consistentlyhigherqualitythanitscompetitors canoffer.
(iii) Managing Service Productivity:withtheirhighrisingcost,service firmsare underhighpressure toincrease serviceproductivity.And
thiscan be done inseveral ways.Constanttraininganddevelopment(T&D) of employeesorhire newones whowill workharderand
more skillfully.Orbetterstill improve the quantityof theirservice bygivingupsome quality.
20. WEEK: 6
LECTURE 6:
PRICING:UNDERSTANDING AND CAPTURING CUSTOMER VALUE
-Definition of price, Major Price strategies, Factors affecting pricing decision
WHAT IS A PRICE?
Price isbasicallythe amountof moneychargedfora productor service.Ina broadersense however,we candefine price asthe sumtotal of all
the valuesa customerisable,willingandreadytogive upto gain the benefitsof havingorusingaproduct or service.Price hasalwaysbeenthe
majorfactor affectingthe buyerchoice.Butinthe recentpast,non-price factorshave gainedincreasing importance.
Of all the marketingmix,price isthe onlyone thatproducesrevenue andit’sthe mostflexible,all othersrepresentcosts. Atthe same time,
pricingisone of the majorproblemsfacedbymarketingexecutivesandsadto saythat many companiesdonothandle pricingwell.
Major Pricing Strategies:Pricesof commoditiesandservicesare oftensetbetween twoextremes;eithertoolowto produce a profitor
too highto produce anydemand.Insettinga price ceilinghowever,customer’sperceptionof the product’svalue formsthe basis. Onthe
one hand,whencustomersperceivethatthe product’sprice isgreaterthan itsvalue,theymaywithdrawentirelyfrombuyingit.Onthe
otherhand,if the company’ssetprice isbelowitscost,the company’sprofitwill suffer.Therefore,insettingitsprice betweenthese two
extremes,the companymustconsiderthe followinginternal aswell asexternal factors;competitors’strategiesandprices,the overall
marketingstrategyandmix,andthe nature of the marketand demand.
As a resulttherefore,there are three majorpricingstrategies:customervalue-basedpricing,cost-basedpricingandcompetition-based
pricing.
21. (ii) CustomerValue-BasedPricing:The consumerisalwaysthe lastpersontodecide whetheraproduct’sprice isright.Thusin
makingdecisionaboutpricing,customervalue mustbe stronglyconsidered.Anytime,acustomerbuys a product,they
exchange somethingof value (price) togetsomethingof value (thebenefitsof havingorusingthe product).Effective
customer-orientationpricingtherefore involvesunderstandinghowmuchvalue consumersplace onthe benefitsthey
receive fromthe productandsettinga price that capturesthat value.
(iii) Cost-BasedPricing: Thisinvolvessettingpricesbasedonthe costof production,distributionanda fairrate of returnfor its
effortandrisks.For some companies,their costof productionisoftenanimportantelementinitspricingstrategy.
Companieswithlowercostof production,oftensetlowerpricesthatresultinsmallermarginsbutgreatersalesandprofits.
There are twomajor typesof cost; fixedandvariable cost.
- FixedCost: A company’sfixedcosts,alsoknownasoverheadcostsare the costs that donot change withchange in
productionorsaleslevel.Forinstant,regardlessof acompany’soutput,itmustpay bills,interestrate,salariesetc.
- Variable Cost: These sortsof costsvary directlywiththe levelof production.Theyare calledvariablesbecause the total
varieswiththe numberof unitsproduced.These twocombinedisknownasthe total cost at everylevel of production.
(iv) Competition-BasedPricing: Thisbasicallyinvolvessettingupaprice basedon competitor’sstrategies,costs,prices,and
marketofferings.Here,consumersbase theirjudgmentsof aproduct’svalue onthe pricesthat competitorscharge for
similarproducts.
In assessingacompetitor’spricingstrategies,the companyshouldaskseveral questions.Firstly,howdoesthe company’s
marketofferingcompare withcompetitors’offeringsintermsof customervalue?If consumersperceive thatthe company’s
productor service providesgreatervalue,the companycancharge a higherprice.If consumersperceive lessvaluerelative
to competitors’products,the companymusteithercharge alowerprice orchange customerperceptionstojustifyahigher
price.Secondly,howstrongare currentcompetitorsandwhatare theircurrentpricingstrategies?If the companyisfaced
witha host of smallercompetitorscharginghigherpricesrelative tothe value theydeliver,itmightcharge lowerpricesto
drive weakercompetitorsfromthe market.Inthe similarvein,if the marketisdominatedbylarger,lower-price competitors,
the companymay decide totargetunservedmarketnicheswithvalue addedproductsathigherprices.
FACTORS AFFECTING PRICE DECISIONS.
22. Factor affectingprice decisionscanbe broadly dividedintoInternal andExternal factors. Internal Factors affectingprice decisioninclude the
company’soverall marketingstrategy,objectives,andmarketingmix,aswellasotherorganizational considerations. External Factorsinclude the
nature of the marketand demandandotherenvironmental factors.
- Overall marketing strategy, objectives,andmarketing mix
Price isonlyone elementof the company’sbroadermarketingstrategy. Therefore,before settingupanyprice,the companymustdecide onits
overall marketingstrategyforthe productorservice.
There are timeswhenthe company’soverall marketingstrategyisestablishedaroundprice andvalue history.Forinstance,if acompanyselects
a particulartarget marketand positioningverycarefully, thenitsmarketingmix includingprice,willbe fairlystraightforward.Pricingcanplaykey
role inhelpingafirmaccomplishitsobjectivesatmanylevels.A firm forexample cansetpricestoretainexistingcustomersandattractnew
ones.Itcan evensetpriceslowtopreventcompetitorsfromenteringthe marketorsetit at competitors’ level tostabilize the market.Itcan set
price to keepthe loyaltyandsupportof resellersandtopreventoravoidgovernmentintervention.Firmscanalsoset price forcreate excitement
for newproductsand/orbrands.Or a particularproduct can be pricedto helpthe salesof otherproductsinthe company’sline.
Price decisiontherefore shouldbe properlycoordinatedwithproductdesign,distribution,andpromotiondecisiontoforma consistentand
effectiveintegratedmarketingmix programme.
-Organizational Considerations
At organizational level,managementshoulddecide whosetsprices.Companieshandle pricinginvariousways.Insmallerfirms,pricesare often
setat topmanagementlevelsinsteadof bythe marketingorsalesdepartments.Inlarge companies,pricinginhandledbydivisional orproduct
managers. Inthe industrial market,salespeoplemaybe allowedtonegotiate withcustomerwithincertainprice ranges,butevenso,top
managementsetsthe pricingobjectivesandpolicies,andoftenapprovesthe pricesproposedbylower-level managementorsalespeople.
-The Market and Demand
As statedearlier,goodpricingbeginswithaverygoodunderstandingof howcustomers’perceptionsof value affectthe pricestheyare willingto
pay.Both consumerandindustrial buyersbalance the price of aproductsor service againstthe benefitsof owningit.Therefore,beforesettinga
price,the marketermusthave a properunderstandingof the relationshipbetweenprice anddemandforcompany’sproduct.
Belowisan analysisof the price-demandrelationshipandhowitvariesfordifferenttypesof markets.
23. Pricingin Different Types ofMarkets
The level of freedom thatsellershave overpricingvariesaspermarket.Economistsrecognize fourtypesof marketswitheachpresentinga
differentapricingchallenge.(i) Underpure competition, (ii) Undermonopolisticcompetition(iii) Underoligopolisticcompetition(iv)Underpure
monopoly.
(i) Underpure competition:Thismarketconsistsof manybuyersand sellerswhotrade inauniformcommodity,suchassugar,
wheat,copper,orfinancial security.Inthissortof market,no single buyerorsellerhasmucheffectonthe goingmarket
price.Also,inthissortof market,marketingresearch,productdevelopment,pricing,advertising,andsalespromotionplay
little ornorole.Therefore,sellersdonotspend muchresource onmarketingstrategy.
(ii) UnderMonopolisticCompetition:The marketismade up of many buyersaswell assellerswhotrade overa range of prices
rather thana single marketprice.Differentpricesare oftensetupinthe marketbecause sellerscandifferentiate theiroffers
to buyers.Because there are series of competitors, eachfirminthe marketplace is lessaffectedbycompetitors’pricing
strategiesthantheywouldinanoligopolisticmarket. Sellerstryhardto developdifferentiatedoffersfordifferentcustomer
segmentsand,inadditiontoprice,freelyuse branding,advertisingandpersonal sellingtosettheiroffersapart.
(iii) UnderOligopolisticCompetition:Here the marketismade upof justa fewlarge sellers.Forinstant,onlytwocompanies
(Airtel andAfricel) control over80%of the SierraLeone mobile networkservice providermarket.Becausethere are veryfew
sellersinthismarket,eachsellerisalertandveryresponsivetocompetitors’pricingstrategiesandmarketingmoves.
(iv) Undera Pure Monopoly: Thismarketisbasicallydominatedbyasingle seller.Thissingle sellermaybe agovernment
monopoly(EDSA,SLPOST),aprivate regulatedmonopoly(supersport),ora private unregulatedmonopoly.Ineachof these
cases,pricingishandleddifferently.
An analysisofthe Price-DemandRelationship
Each time a companymakesany change in itsprices,itwill leadtoa differentlevel of demand.The relationshipbetweenthe price
changedand the resultingdemandlevel isshowninthe demandcurve below.
24. Price 𝑃2 𝑃12
𝑃1 𝑃11
𝑄2 𝑄1 𝑄12 𝑄11
Quantitydemandedperperiod Quantitydemandedper period
A. Inelasticdemand B. Elastic demand
The above demandcurve showsthe numberof unitsthe marketwill buyina givenperiodatdifferentpricesthatmightbe changed.Invery
normal situations,demandandprice are inverselyrelated,ie,the higherthe price,the lowerthe quantitydemanded.Therefore,the company
wouldsell lessif itraiseditsprice from 𝑃1to𝑃2. In short,consumerswithlimitedresource willprobablybuylessof somethingif itsprice istoo
high.
A goodunderstandingof abrand’sprice-demandcurve isverycrucial togoodpricingdecisions.
Price Elasticity of Demand
Lookingat the two demandcurvesabove,infigure A,aprice shift(increase) from𝑃1to𝑃2 leadstoa relativelysmalldropindemandfrom 𝑄1to
𝑄2. In figure B,however,the same price increase leadstoa large dropin demandfrom𝑄1to 𝑄2. If demand hardlychangeswithasmall change in
price, we say thatthe demandisinelastic.If onthe otherhand,the demandchangesgreatly,inthatcase the demandinelastic.The price
elasticityof demandisgiveninthe followingformula:
Price elasticityof demand=
%𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑑𝑒𝑚𝑎𝑛𝑑𝑒𝑑
%𝑐ℎ𝑎𝑛𝑔𝑒𝑖𝑛 𝑝𝑟𝑖𝑐𝑒
-The Economy
The economicconditionscanhave a verystrongimpact onthe firm’spricingstrategies.Economicfactorlike growthorrecession,inflation,and
interestratesaffectpricingdecisionsbecause theyaffectconsumerspending,consumerperceptionsof the product’sprice andvalue,andthe
company’scostsof producingandselling the product.
-OtherExternal Factors
25. Beyondthe marketandthe economy,the companymustconsiderseveralotherfactorsinitsenvironmentwhensettingprices. The firmmustbe
able to knowwhicheffectitspriceswillhave onotherpartiesinitsenvironment.Howwillresellersreacttovariousprices?Companiesshould
therefore setpricesthatgive resellersafairprofit,encourage theirsupport,andhelpthemtosell the producteffectively.