CHAPTER 5: MARKETING
Chapter Objectives:
By the end of this module, learners will be able to:
Define marketing concepts.
Analyze marketing philosophies.
Describe the role of marketing in achieving the goals of a business enterprise.
Assist in conducting marketing research.
Make competitive analysis
Implement marketing intelligence in their organization,
Apply the various marketing mixes and strategies in their businesses.
Understand and implement selling and customer service skills.
Meaning and Definitions of Marketing
• Marketing activities are targeted at market consisting of product
purchasers and also individuals and groups that influence the success
of an organization.
• Marketing is a social and managerial process by which an individual or group
obtain what they need and want through creating, offering and exchanging of
product of values with others.
• Marketing is designed to plan, price, promote and distribute want satisfying
products to target market to achieve organizational goal.
• It is the process of planning and executing, the conception, pricing, promoting and
distributing of ideas, goods and services to create an exchange that satisfy individual or group
objectives
• Marketing is the effort to identify and satisfy customers’ needs and wants.
Cont’d……..
Marketing answers the following questions:
Who are my customers?- people or other businesses
What are my customer’s needs and wants?
How can I satisfy my customers’?
How do I make a profit as I satisfy my customers?
Core Concepts of Marketing
• Need: - Human Need is a state of deprivation of some basic
satisfaction. People require food, clothing, shelter, safety and
belongingness and esteem.
• Wants: - Wants are desires for specific satisfiers of needs. Eg.
A person needs food but wants spaghetti or Kitfo.
• Demands: - Demands are wants for specific products that are
backed by ability and willingness to buy them.
• Product: - is anything that can be offered to satisfy a need or
want. Products broadly classify as tangibility and intangibility
features.
Cont’d…
• Value: - is the consumer’s estimate of the products overall capacity to satisfy
his or her needs.
• Cost: - is the amount of money that are going to be expended or already
incurred to acquire a product.
Exchange: - is the act of obtaining a desired product from someone by offering
something in return.
Market: - consists of all the actual and potential customers sharing a particular
need or want who might be willing and able to engage in exchange to satisfy
their need or want
Marketing Philosophies
1. The Production Concept
It is one of the oldest concepts in business.
The production concept holds that consumers will favor products that are widely available and
low in cost.
Managers of production-oriented organization concentrate on achieving high production
efficiency and wide distribution.
The assumption is that consumers are primarily interested in product availability and low price
2. The Product Concept
It holds that consumers will favor those products that offer the most quality, performance or innovative features.
Managers in product oriented organization focus their energy on making superior products and improving them over time.
Under the concept, mangers assume that buyers admire well-made products and can appraise product quality and performance.
Customers are ready to pay high prices for products having extra features.
Cont’d…..
3. The Selling Concept/Sales Concept
• If left alone, customers will normally not buy enough of the
organization’s product.
• Organizations must undertake an aggressive selling and promotion
effort.
• This concept assumes that consumers typically show buying inertia or
resistance and must be coaxed/persuaded into buying.
• The selling concept is practiced more aggressively with unsought
goods, those goods that buyers normally do not think of buying, such
as insurance.
• The aim here is to sell what they make rather than make what the market
wants.
Cont’d….
4. The Marketing Concept
•It holds that the key to achieving organizational goals is being more
effective than competitors in integrating marketing activities toward
determining and satisfying the needs and wants of target markets.
•The marketing concept has been expressed in many colorful ways:
• “Meeting needs profitably”
• “Find wants and fills them”
• “Love the customers, not the product etc.”
Cont’d……
5. The Societal Marketing Concept
Organizations should deliver the desired satisfactions more effectively and
efficiently than competitors in a way that maintains or improves the consumers
and the society’s well-being.
Satisfying customers’ needs in a way that preserves or enhances the
consumers and the society’s wellbeing.
6. Relationship Marketing
• Relationship marketing is the practice of building long term
satisfying relations with key parties-customers, suppliers,
distributors etc.
• Ultimate outcome- building of a unique company asset called
a marketing network.
Marketing Information Systems
• A marketing information system consists of
people, equipment and procedures to gather, sort,
analyze, evaluate and distribute accurate
information to marketing decision makers.
• Marketing information system is developed through
internal company records, marketing intelligence
activities, marketing research, and marketing decision
support analysis.
Marketing Research
• Marketing research is the systematic and
objective identification, collection, analysis, and
dissemination of marketing information.
• It attempts to provide accurate, impartial
information to support marketing decisions.
Marketing Research Components
Marketing researchers deal with many aspects of a market including the following:
Market size: this deals with the number or value of units sold to a market in a given period.
Market Share: a specific corporation’s share of the market out of the whole market of a product or
products of the same purpose.
Market penetration: this is a marketing strategy which is used to know when a company
enters/penetrates a market with current products to get better market share by lowering the price of a
product.
Brand equity research – this research is conducted to know how favorably consumers view the
company’s brand.
Buyer decision processes research – is used to determine what motivates people to buy and what
decision-making process they use.
Marketing Research Process
• Step 1: Define the research purpose or objectives
• Step 2: Research Design Formulation
• Step 3: Gather primary and secondary data,
• Step 4: Data Processing and Analysis
• Step 5: Report Preparations and Presentation
Marketing Intelligence
Market intelligence is the systematic process of gathering,
analyzing, supplying and applying information about the external
market environment.
Marketing intelligence is used to determine:
Current and future market needs,
Changes in the business environment that may affect the size and
nature of the market in the future.
The Importance of Marketing Intelligence
Marketing intelligence provides the following benefits;
Market and customer orientation – promote external focus.
Identification of new opportunities.
Smart segmentation.
Early warning of competitor moves.
Minimizing investment risks.
Quicker, more efficient and cost-effective information.
Competitive Analysis
• Competitive analysis refers to determining the strengths and weaknesses of
competitors and designing ways to take opportunities or tackle threats posed
by competitors.
Uses of Competitive Analysis
To understand competitive advantages/ disadvantages relative to competitors.
To understand competitors’ past, present (and most importantly) future strategies.
It provides a basis to develop strategies to achieve competitive advantage in the
future.
It helps forecast the returns that may be made from future investments.
Steps of Competitive Analysis
1)Identify your competitors: Determine both local and international
competitors
2)Gather information about competitors-
3)Analysing the Competition- How are you going to compete with
that company?
4)Develop a pricing approach-develop a pricing model
The goal of your competitive analysis is to identify and expand upon
your competitive advantage.
To make your competitive analysis effective, transfer the weaknesses
of your competitors into potential strengths for your business.
The Marketing Mix and Marketing Strategies
• Marketing mix are marketing variables that the marketing manager
can manipulate as controllable variables.
Product: refers to goods/services produced for sale
Pricing: refers to the process of setting a price for a product/service.
Place/distribution: means the different ways of getting your
products or services to your customers.
Promotion:- informing your customers of your products and
services and attracting them to buy. Promotion includes advertising,
sales promotion, publicity and personal selling.
Marketing management entails making decisions about these 4Ps.
Marketing Strategy
• Marketing strategy is a method of focusing an organization's energies and
resources on a course of action which can lead to increased sales and
dominance of a targeted market.
• A marketing strategy combines product development, promotion,
distribution, pricing, relationship management and other elements.
• Marketing strategy determines the choice of target market segments,
positioning, marketing mix, and allocation of resources.
• It is a deliberate plan about the four marketing mix elements namely:
Product, Price, Promotion, and Place/distribution
Customer Service
• Service refers to any activity undertaken to fulfil
customer’s needs.
• It is any act or performance that one party can offer to
another that is essentially intangible and does not
result in the ownership of anything.
• Good customer service helps to get customer loyalty.
Strategic Activities needed for Quality Customer Service Delivery
1. Establishing a clear customer service strategy.
2. Ensuring that correct people are in place, with the correct skills to deliver
outstanding personal service.
3. Establishing clear material service delivery processes.
4. Improving in terms of process improvement, quality monitoring and recovery
continuously.
5. Participatory Management.
Customer Handling and Satisfaction
• Customer handling and satisfaction is a key for successful organizations.
• Managers and employees should work hand-in-hand to improve their
service delivery programs.
• Existing customers must be satisfied with the existing service.
• Existing customers are also means of attracting potential customers.
The major reasons to lose customers are:
o Poor service,
o Poor quality and
o Rude behaviour.
Cont’d…
Issues to focus on;
Considering Customers as an invaluable Asset
Reducing Customer Complaints
Place Yourself in The Customer’s Shoes
The End!
