This document provides an overview of marketing. It defines marketing as not just advertising, selling, or promotion, but as ensuring businesses can sell products to achieve objectives. The marketing mix, also called the 4Ps, involves product, price, place, and promotion strategies. It discusses elements of each P, like product features, pricing strategies, distribution channels, and promotional activities. The marketing mix evolves over the product lifecycle as businesses test strategies and demand changes.

1. Marketing...Marketing...
By
Sai Dhatri Arige

2. About
Marketing

3. WHY

4. WhatWhat isis marketing?marketing?
Marketing…
◦ is not ADVERTISING
◦ is not SELLING
◦ is not PROMOTION
“The aim of marketing is to make
selling unnecessary.” Peter Drucker
(1973)

5. What is marketing?What is marketing?
Businesses need to sell products if
they are to achieve their objectives.
Marketing is about ensuring that
businesses can sell as many products
as possible in order to make profits.

6. What does it involve?What does it involve?
Marketing is a very complex concept.
It involves:
◦ Research
◦ Product design
◦ Setting prices
◦ Making sure the customer knows about
products
◦ Choosing how and where to sell products

7. Why is it needed?Why is it needed?
Each year millions of new products are
launched:
Without careful
marketing these
products would
fail

8. “Marketing is the science and art of exploring,
creating and delivering value to satisfy the needs
and wants of a target market maintaining loyalty
at a profit.”
Professor Philip Kotler

9. MarketingMarketing mixmix
The marketing mix is the combination of variables
that a business uses to carry out its marketing
strategy and meet customer needs.
The marketing mix is often called the 4Ps:
Product
Price
Place
Promotion

10. ProductProduct
‘Product’ refers to the functions and features
of a good or service
Should satisfy the needs of the customer
May have a Unique Selling Proposition (USP)
‘Product’ also includes a range of factors such as
packaging, quality, warranties, after-sales
service and branding

11. Product lifecycleProduct lifecycle
The product lifecycle looks at the sales of a
product over time

12. Stages of product lifecycleStages of product lifecycle
Development – high costs but no sales
Launch – high expenditure on promotion and
product development, low sales
Growth – sales increase and product should break-
even
Maturity – sales stabilise, less expenditure on
promotion needed, revenue & profit should be high
Decline – sales decline, extension strategies can be
adopted or the product withdrawn

13. Extension strategiesExtension strategies
Extension strategies should maintain or
increase sales. They include:
Modifying the product
Reducing the price
Adding a feature
Promoting to a
different market
sector

14. PricePrice
The price of a product will depend on:
The cost to make it
The amount of profit desired
Other objectives of the business
The price competitors charge
The price customers are willing to pay
◦ Is there a high demand?
◦ Is demand sensitive to changes in price?

15. Price leaders and takersPrice leaders and takers
Price leader – businesses that dominate the
market can often dictate the price charged
for a product. Other businesses follow this
lead.
Price taker – businesses have to charge the
market price. This is often the case where
there are many small firms competing
against each other.

16. Pricing strategies & tacticsPricing strategies & tactics
Skimming Launching with a high price when there is little
competition, then reducing the price later. Often used
with technology.
Penetration Low price charged initially to penetrate the market
and build brand loyalty; prrice is then increased e.g.
introductory offers on magazines.
Competitive A similar price is charged to that of competitors’
products.
Loss leader Products may be sold at a price lower than the cost to
produce it. Often used by supermarkets to encourage
people into the store where it is hoped they will buy
other products.
Psychological A price is set which customers perceive as lower than
it is e.g. £39.99 instead of £40.

17. PlacePlace
Products should be conveniently available
for customers to buy
‘Places’ include:
◦ Stores
◦ Mail order
◦ Telesales
◦ Internet
The use of
e-commerce (promoting
and selling on the internet)
has grown massively over
the last few years

18. Channels of distributionChannels of distribution
Manufacturers
Wholesaler
Retailer
Consumer

19. PromotionPromotion
The aims of promotion are to:
Raise awareness
Encourage sales
Create or change a brand image
Maintain market share

20. PromotionPromotion
Above-the-line promotion
This uses advertising media over which a firm
has no direct control e.g. television, radio
and newspapers
Below-the-line promotion
This uses promotional media which the firm
can control e.g. direct mail, sales promotions
and sponsorship

21. Promotional activitiesPromotional activities
Advertising e.g. TV, billboards and internet.
Sales promotions e.g. Loyalty cards, BOGOF,
discounts & free gifts
Sponsorship – a business pays to be associated
with another firm, event or cause
Direct mailing – promotional material is sent to
potential customers by post/email
Public relations – building the relationship
between the firm and the public by enhancing its
reputation

22. Promotional mixPromotional mix
Most businesses use a combination of different
promotional activities.
The chosen promotional mix will depend on:
Cost
Target market
Product
Competitors

23. The promotional message should
Grab Attention
Stimulate Interest
Create Desire
Promote Action

24. How the marketing mix evolves overHow the marketing mix evolves over
timetime
The marketing mix will evolve over time. For
example:
The product portfolio may grow as a business
becomes more established
More expensive promotional activities may be
adopted as a firm’s revenue increases
More outlets may be opened, or products sold via
the internet
Price may increase as demand grows