Certified Marketing Professional

Marketing Concepts
Module 1
M01: Marketing Concepts 1

Marketing Defined
Marketing (management) is the

process of planning and executing
the conception, pricing, promotion,
and distribution of ideas, goods,
services to create exchanges that
satisfy individual and organizational
goals.
The American Marketing Association; AMA

Evolution of The Marketing Concept
The production concepts holds that consumers will prefer products

that are widely available and inexpensive (1930s).
The product concept holds that consumers will favor products

that offer the most quality, performance, or innovative
features.
The selling concept holds that consumers, and businesses, if

left alone, will ordinarily not buy enough of the organizations
products. The organization must, therefore, undertake an
aggressive selling and promotion effort (1940s).
The marketing concept holds that the key to achieving its

organizational goals consists of the company being more effective
than competitors in creating, delivering, and communicating
customer value to its chosen target market (1950s).
Relationship Between Marketing and Selling
The selling concept The marketing concept
Emphasis is on the product Emphasis is on customers wants
Company first determines customers

Company first makes the product wants and then figures out how to make
and then figures out how to sell it and deliver a product to satisfy those
wants
Management is sales-volume
oriented Management is profit-oriented
Planning is short-run, in term of Planning is long-run, in terms of new

todays products and markets products, tomorrows markets, and
future growth
Stresses the needs of seller Stresses wants of the buyers

Scope of Marketing Management
Marketing people typically have four basic objectives to accomplish
Maximize the
sales of existing Develop new
products in markets for
existing markets existing and
new products
Develop and Provide the quality of

sell new service necessary for
products customers to be satisfied
with their transactions and
to continue doing business
with the organization

The Marketing Concept
Starting point Focus Means Ends
Selling and Profits through

Factory Products
Promoting Sales Volume
(a) The Selling Concept
Profits through
Target Customer Integrated
Customer
Market Needs Marketing
Satisfaction
(b) The Marketing Concept

Marketing in the Organizational Context
Marketing can be seen as having two main components when

viewed in the organizational context
of the market situation, competitors, products and

Analysis customers
using the information gained in the analysis to

Activity activate tasks and ensure that the products have
the desired impact on the overall market

The Aims of Marketing
The provision of
superior customer
value The generation of
above average profits

Developing the Marketing Mix for Products and Services

Setting the Scene: The Marketing Mix
How will
people be
How and persuaded to
where are we buy?
selling it? PROMOTION
How much are PLACE
we charging
for it?
PRICE
What are
we offering?
PRODUCT

What is the Marketing Mix?
The 4Ps are
Product
(or service)
Promotion Place
Price

Components of the 4Ps
Product
brand, design, features, packaging, quality, sizes,
services, returns, variety, warranties
Price
allowances, credits terms, discounts, list price,
Sellers view of payment period
the marketing
mix
Promotion
with variables
advertising, direct marketing, sales force, sales
promotion, public relations
Place
assortments, channels, coverage, inventory, locations,
transport

Components of the 4Ps
Integrated marketing and the holistic marketing concepts
Solution
How can I solve my problem?
Sellers view of Information

the marketing Where can I learn more?
mix
with variables
Value
Total sacrifice for solution?
Access
Where can I find it?

Product
Extension strategies
Methods used to Specialised versions

improve or
differentiate the
product and New editions
increase sales or
target sales
more effectively Improvementsreal or otherwise!
to gain a
competitive
advantage e.g. Changed packaging
Technology, etc.

Product/Service
What does the customer want from the product/service? What needs does it satisfy?
What features does it have to meet these needs?

Are there any features you've missed out?
Are you including costly features that the customer won't actually use?
How and where will the customer use it?
What does it look like? How will customers experience it?
What size(s), color(s), and so on, should it be?
What is it to be called?
How is it branded?
How is it differentiated versus your competitors?
What is the most it can cost to provide, and still be sold sufficiently profitably?

Place
The means by which products and

services get from producer to consumer
and where they can be accessed by the
consumer
The more places to buy the product and
the easier it is made to buy it, the better
for the business (and the consumer?)

Place
Where do buyers look for your product or service?
If they look in a store, what kind? A specialist boutique or in a

supermarket, or both? Or online? Or direct, via a catalogue?
How can you access the right distribution channels?
Do you need to use a sales force? Or attend trade fairs? Or make

online submissions? Or send samples to catalogue companies?
What do you competitors do, and how can you learn from that and/or
differentiate?

Price
Pricing strategy
Importance of
knowing the market
elasticity
keeping an eye on rivals

Price
What is the value of the product or service to the buyer?
Are there established price points for products or services in this

area?
Is the customer price sensitive? Will a small decrease in price gain you
extra market share? Or will a small increase be indiscernible, and so
gain you extra profit margin?
What discounts should be offered to trade customers, or to other

specific segments of your market?
How will your price compare with your competitors?

Promotion
Strategies to make
the consumer aware
of the existence of a
product or service NOT just advertising

Promotion
Where and when can you get across your marketing messages to
your target market?
Will you reach your audience by advertising in the press, or on

TV, or radio, or on billboards? By using direct marketing
mailshot? Through PR? On the Internet?
When is the best time to promote? Is there seasonality in the

market? Are there any wider environmental issues that suggest
or dictate the timing of your market launch, or the timing of
subsequent promotions?
How do your competitors do their promotions? And how does

that influence your choice of promotional activity?

Using the 4Ps Marketing Mix Model
The marketing mix model can be used to

help you decide how to take a new offer to
market
It can also be used to test your existing

marketing strategy

Whether you are Start by identifying the

considering a new or product or service that
existing offer, follow you want to analyze
the steps below help Now go through and
you define and answers the 4Ps
improve your questions-as defined in
marketing mix detail above

Try asking "why" and "what if" questions too, to

challenge your offer
For example, ask why your target audience needs a

particular feature. What if you drop your price by 5%?
What if you offer more colors? Why sell through
wholesalers rather than direct channels? What if you
improve PR rather than rely on TV advertising?

Once you have a well-

defined marketing mix, try
"testing" the overall offer
from the customer's
perspective, by asking
customer focused questions
Does it meet their needs?

(product)
Will they find it where they
shop? (place)
Will they consider it's priced
favorably? (price)
And will the marketing
communications reach them?
(promotion)

Keep on asking questions Review you marketing

and making changes to mix regularly, as some
your mix until you are elements will need to
satisfied that you have change as the product or
optimized your service, and its market,
marketing mix, given the grow, mature and adapt
information and facts in an ever-changing
and figures you have competitive
available. environment.

Managing the Marketing Effort
Blend of the mix depends upon
Marketing objectives
Type of product
Target market
Market structure
Rivals behaviour
Global issues culture/religion, etc.
Marketing position
Product portfolio
Product lifecycle
Boston Matrix

Marketing Audit and Planning
Module 2
M02: Marketing Audit and Planning 1

Understanding the Marketing Environment

Various Analysis Techniques
SWOT
analysis

PEDESTL Framework Aids External Analysis (SWOT)
PEDESTL Framework
Political Economic Demographic Environmental

..
Social Technological Legal

Fundamentals of PEDESTL Framework
How will the current/upcoming

political situation affect us?
How will social trends
impact us?
Political
How will the fluctuations in Social
the economy affect us?
How can we benefit from
Economic new technology?
How will changes in the Technological

demography impact us?
How will current legislation
Demographic
and/or potential new laws
How will the focus on HSE affect us?
impact our products or
operations? Legal
Environmental
The Five-forces Model of Competition (M. Porter)
Firms in other industries
offering substitute products
Competitive pressures coming from the attempts of companies outside the industry
to win buyers over to their products
Rivalry among
Suppliers of Competitive competing sellers Competitive
raw materials, pressures Competitive pressure
parts stemming from pressures created by stemming from
components or supplier jockeying for better buyer bargaining Buyers
other Resource bargaining power market position, power and seller-
inputs increased sales and
and supplier seller buyer
market-share and
collaboration competitive collaboration
advantage
Competitive pressures coming from the threat of entry of new rivals
Potential new entrants

Identifying Weaknesses and Competitive Deficiencies
Implement use of best practices throughout company
Eliminate some cost-producing activities altogether by revamping value chain system
Relocate high-cost activities to lower-cost geographic areas
See if high-cost activities can be performed cheaper by outside vendors/suppliers
Invest in cost-saving technology
Innovate around troublesome cost components
Simplify product design
Achieve savings in backward or forward portions of value chain system

Correcting a Supplier-Related Cost Disadvantage
Pressure suppliers for lower prices
Switch to lower-priced substitutes
Collaborate closely with suppliers to identify mutual cost-saving

opportunities
Arrange for just-in-time deliveries from suppliers to lower inventory

and internal logistics costs
Integrate backward into business

of high-cost suppliers

SWOT Analysis
What Developed by Albert Humphrey in the 60s and 70s
Acronym for Strengths, Weaknesses, Opportunities and

Threats
Tool to capture and analyze the environment of a situation,

project or business
Allows analysis of both internal and external environments
Provides a foundation for strategic planning

Why use SWOT?
Why Allows complex information to be presented systematically
Aligns common purpose and understanding
Associates core capabilities with successes and failures
Identifies opportunities and threats as they arise
Cheap to implement

SWOT Analysis
Environmental
Analysis
Internal External
Environment Environment
Strengths Weaknesses Opportunities Threats

What are the Organizations Internal Strengths?
Company characteristics that
Give us a competitive advantage

over others
Enable us to compete on quality,
cost or both
Should be utilized fully
Examples
Abundant financial reserves

Strong brand equity
Strengths Economies of scale
Superior talent

What are the Organizations Internal Weaknesses?
Company characteristics that
Disadvantage us relative to others

Curtail our ability to attain objectives
Are controllable and should be
minimized or eliminated
Examples
Inefficient distribution
Outdated technology
Poor product image
Weaknesses Under-trained employees

What External Opportunities Exist for the Organization?
External circumstances that allow us to
Increase our sales volume

Increase our sales price
Improve our cost structure
Examples
Rival firms are complacent
Opportunities

Changing customer needs
Economic boom
Government deregulation

What External Threats Loom over the Organization?
External circumstances that
May negatively impact profits

Threaten our existence
Are beyond our control
Examples
New product innovations
Threats

New market entrants
Changing customer needs
Political instability

Team Exercise: SWOT Analysis
AMATOURY 114: Case study
S W
External Analysis
Internal Analysis
Weaknesses
Strengths Weaknesses
O T
Opportunities
Threats
SWOT
Group Exercise: AMATOURY 114
3. How can you

1. Conduct a 2. Conduct a measure the
SWOT analysis TOWS analysis customers
Questions
for AMATOURY for AMATOURY preference vis-
114 114 -vis your
products?

TOWS Analysis
Weaknesses Strengths
W-T STRATEGY S-T STRATEGY

How can we eradicate our How can we use our
Threats weaknesses in order to strengths to combat the
combat the threats? threats?
W-O STRATEGY S-O STRATEGY

How can we eradicate our How can we use our
Opportunities weaknesses to exploit the strengths to exploit the
opportunities? opportunities?

The Marketing Audit
Suggested template for conducting

a full marketing audit exercise

Competitive Analysis
Complete the following chart to determine your competitive strengths and
weaknesses versus those of two of your major competitors
Competitive Factors Versus Competitor A Versus Competitor B
Uniqueness
What do I have that the
competition doesnt have?
Advantages
What do I have that the
competition also has, but ours is
better?
Parity
What do I have that is the same as
the competitions but is still
important to the prospect?
Disadvantages
What does the competition have
that I dont?

1 Competitor 2 Competitor 3 Competitor Own Company
Weight Weight Score Weight SCORE Weight SCORE Weight

Success Score
From X From X FROM X FROM X
Factor from 10
100 Score 10 Score 10 Score 10 Score
1)
2)
3)
4)
5)
6)
7)
8)
TOTAL

Competitor Activity
What are they

What are their doing or
Who are our How do we
strengths and planning to do
competitors? compare?
weaknesses? with the
customer?

Discuss the
Competitive
Analysis
Matrix

Customer Analysis
Customer
market
Customer
information
business
Buying
plans
decision
Customer
making
background
Contact
information
information

Customer Analysis
Discuss the Measuring Customer Expectation

Benchmark

Marketing Planning
Format and Content

Strategic Planning: Definition
Strategic Planning is the process of

developing and maintaining a strategic fit
between the organizations goals and
capabilities and its changing marketing
opportunities. It involves defining a clear
Company mission, setting supporting
objectives, designing a sound business
portfolio, and coordinating functional
strategies.
American Marketing Association

The Marketing Planning Process
1. Mission
Phase one
Goal Setting
2. Corporate Objectives
3. Marketing Audit
Phase two 4. SWOT analyses

Situation review
5. Assumptions
6. Marketing objectives and strategies
Phase three
7. Estimate expected results
Strategy formulation
8. Identify alternative plans and mixes
9. Budget
Measurement and
Phase four Review
Resource allocation 10. First year detailed implementation program
and monitoring
Source: Marketing Plans Malcolm McDonald, 2002

The Marketing Plan Format
The executive summary
Table of contents
Situational analysis and target market
Marketing objectives
Marketing strategies
Marketing tactics
Schedules and budgets
Financial data and control

Market Segmentation, Targeting and Positioning
Module 3
M03: Market Segmentation, Targeting and Positioning 1

Market Segmentation-Definition
Market Segmentation is the

process of splitting customers,
or potential customers, in
different groups, or segments
(American Marketing Association)

Market Segmentation-Extended Definition
Market segmentation is the process of splitting

customers, or potential customers, in different
groups, or segments, within which customers share
a similar level of interest in the same, or
comparable, set of needs satisfied by a distinct
marketing proposition. (AMA)

Bases for Segmentation (B to C)
Geography
Bases Demographics
used to
segment Psychographics
consumer
markets Benefits Sought
Usage Rate

Geographic Variables
Regional distribution
Statistical reporting areas

Demographic variables
Age
Gender
Occupation and education
Ethnic background
Income
Social class

Psychographic variables
Life cycle
Attitudes and values of the

individual

Behavioristic variables
Information about consumers behavior

towards the product
Information about consumers

knowledge and use of the product

Bases for Segmentation (B to B)
Geographical
Customer type
Bases
used to
segment Product type
business
markets
Buyer behavior

Criteria for B2B Segmentation
Criteria for B2B Segmentation

Organizational characteristics Industry type
Size of firm
Geographic location
Product characteristics End-use benefits

Frequency and scale of purchase
Specification
Buying characteristics Distribution channel

Purchasing function and policy
Buyer characteristics
Lead influence on purchase
Loyalty
Order Size
Usage Pattern
Profiling the Segments : Trade Paint (An Example)
Base Major Contractor Small Decorator Firm

Size of firm 200+ 1-5
Size of purchase Industrial scale, larger pack Domestic scale, smaller pack
size size
Specification Professional From client, usually a

homeowner
Distribution channel Direct from supplier Builders or decorators

merchant
Purchasing function Professional buyer direct to Owner/manager through

supplier merchant
Lead influence on purchase Price and cost analysis Client specification and
decision brand loyalty

Criteria for Successful Segmentation
Substantiality
Identifiability
Criteria
Accessibility
for
market
segments Responsiveness

Criteria for Successful Segmentation
Segment must be large enough to

Substantiality warrant a special marketing mix.
Identifiability Segments must be identifiable and their

Measurability size measurable.
Members of targeted segments must be

Accessibility reachable with marketing mix.
Unless segment responds to a
Responsiveness marketing mix differently, no separate
treatment is needed.

Market Targeting
After a company has defined market segments, it can enter

one or many segments of a given market.
Market targeting is the process of evaluating each Market

segments attractiveness and selecting one or more
segments to enter.
Most companies enter a new market by serving a single

segment, and if this proves successful, they add segments.
Large companies eventually seek full market coverage.
ie: GM says that it makes a car for every person, purse,
personality.
Market Positioning (Positioning)
Developing a specific marketing mix to

influence potential customers overall
perception of a brand, product line, or
organization in general.

Position
The place a product, brand, or group of

products occupies in consumers minds
relative to competing offerings.

Effective Positioning
Assess the positions Determine the

of competing dimensions of Choose an effective
products these positions market position

Positioning Bases
Attribute
Price and Quality
Use or Application
Product user
Positioning
Product class
bases
Competitor

Steps in Market Segmentation, Targeting and Positioning
Market Segmentation Market Targeting Product Positioning
Identify bases Develop Develop

for segmenting measures of product
the market segment positioning for
attractiveness each target
Develop segment
profiles of Select the
resulting target Develop
segments segment(s) marketing mix
for each target
segment

Marketing Communications and Campaigns
Module 4
M04: Marketing Communications and Campaigns 1

Definition of Communication
Is the passing of an idea from a

sender to a receiver by written,
verbal, or nonverbal means.

Elements of the Communication Process
Medium
6
Noise
5
1 Delivery 2
Sender Receiver
4
Message
Response

The Sender and Receiver
1 2
Sender Receiver
Attitudes Values Culture Education
Experience Level Gender Expectations

Barriers to Effective Communication
Language
Wrong Medium
Too Many Levels of People
The message Poor Listening The message

as envisioned Jargon as interpreted
by sender by receiver
Distractions
No Feedback
Psychological Barriers
Values/Cultures

Advertising
Advertising is any paid form of non-

personal presentation and promotion
of ideas, goods, or services by an
identified sponsor
Marketing management must make

four decisions when developing an
advertising program

Identifying the Goals of the Promotion
Create awareness: we can not buy a product if we are not aware of it, especially a new
product and brand. Using MarCom is important in creating awareness in order to stimulate
trial purchases.
Build positive images: Positive images can create value for customers by adding meaning to
products.
Identify prospects: modern technology makes information gathering much more practical.
Web sites are used to gather information about prospects. Supermarkets use POS terminals.
Build channel relationships: when producers use MarCom to generate awareness, they are
helping the retailers who carry the product. Producers may also arrange with retailers to
distribute coupons, set up special displays, or hold promotional events in their stores.
Retain customers: it costs far more to attract a new customer than to retain an existing
customer. MarCom can support efforts to create value for existing customers. They can
provide customers with information about product usage and new products being
developed. They can also gather information from them about what they want as well as
their experiences using the products.

Steps in Creating an Advertising Campaign
Determine the
advertising objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.

Goals and Tasks of Promotion
Informing Reminding
Target
audience
Persuading

Informative objective
Increase awareness
Explain how product works
Suggest new uses
Build company image

Persuasion objective
Encourage brand switching
Change customers perception of
product attributes
Influence buying decision
Persuade customers to call

Reminder objective
Remind customers that product
may be needed
Remind customers where to buy
product
Maintain customer awareness

The AIDA Concept
Model that outlines the process for

achieving promotional goals in terms of
stages of consumer involvement with the
message.
Attention
Interest
Desire
Action

The AIDA Concept
Action
Desire
Interest
Attention

Setting the Advertising Budget
Affordable method
Percentage-of-sales method
Competitive-parity method
Objective-and-task method

Creative Decisions
Identify
product benefits
Develop and evaluate

Components advertising appeals
of
creative
Execute
decisions the message
Evaluate the
campaigns effectiveness

Advertising Appeal
Reason for a person

to buy a product.

Common Advertising Appeals
Profit Product saves, makes, or protects money
Health Appeals to body-conscious or health seekers
Love or romance Used in selling cosmetics and perfumes
Fear Social embarrassment, old age, losing health
Admiration Reason for use of celebrity spokespeople
Convenience Used for fast foods and microwave foods
Fun and pleasure Key to advertising vacations, beer, parks
Vanity and egotism Used for expensive or conspicuous items

Environmental
Centers around environmental protection
consciousness
Executing the Message
Scientific Slice-of-life
Musical Lifestyle
Demon-
Common Spokes-
person/
stration executional Testimonial
styles
Mood or
Fantasy
image Real/
animated
Humorous
product
symbols
Media Types
Newspapers
Magazines
Radio
Television
Major types Outdoor

of
advertising Internet
media
Alternative Media

Advantages and Disadvantages of the Various Media Types
Now that you are aware of

the various Media Types List
the advantages and
disadvantages for each of
mentioned media types

Media Selection Considerations
Cost per contact
Factors Reach
influencing
media mix
decisions Frequency
Audience selectivity

Media Selection Considerations
Cost per The cost of reaching one

contact member of the target market.
The number of target consumers exposed to a

Reach commercial at least once during a time period.
The number of times an individual is exposed to

Frequency a message during a time period.
Audience The ability of an advertising medium to reach a

selectivity precisely defined market.

Media Scheduling
Continuous media schedule
Flighted media schedule
Pulsing media schedule

Types of
media schedules Seasonal media schedule

Media Scheduling
Continuous Advertising is run steadily throughout the

media schedule period.
Flighted Advertising is run heavily every other month or

media schedule every two weeks.
Pulsing Advertising combines continuous scheduling

media schedule with flighting.
Seasonal Advertising is run only when the product is

media schedule likely to be used.

Evaluating Promotional Campaigns
Comparing past sales with past advertising expenditures
Measure after the ad, how the ad affected consumer recall

or product awareness, knowledge, and preference
(as compared to previous measures before the ad)
Experiments

The Product Life Cycle: A Strategic Approach
Module 5
M05: The PLC: A Strategic Approach 1

Introducing the Product Life Cycle Concept

The Product Life Cycle (PLC)
A concept that provides a way

to trace the stages of a
products acceptance,
from its introduction (birth)
to its decline (death).

The Product Life Cycle (PLC)
Introductory Growth Maturity Decline

Stage Stage Stage Stage Product
Category
Sales
Dollars
Product
Category
Profits
Time

Extending the PLC
Change product
Change product use
Change product image
Change product positioning

Introductory Stage
Full-scale launch
High failure rates of new products
Little competition
Frequent product modification
Limited distribution
High marketing and production costs
Negative profits
Promotion focuses on awareness and information
Intensive personal selling to channels

Growth Stage
Offered in more sizes,

Increasing rate of sales flavors, options
Entrance of competitors
Market consolidation
Initial healthy profits
Promotion emphasizes brand ads
Goal is wider distribution
Prices normally fall
Development costs are recovered

Maturity Stage
Many consumer
Declining sales growth products are in maturity
Saturated markets
Extending product line
Stylistic product changes
Heavy promotions to dealers and consumers
Marginal competitors drop out
Prices and profits fall
Niche marketers emerge

Maturity Stage
Rate of decline depends

on change in tastes or
adoption of substitute
Long-run drop in sales products
Large inventories of unsold items
Elimination of all nonessential marketing expenses

Marketing Strategies for PLC
Introduction Growth Maturity Decline
Product
Strategy
Distribution
Strategy
Promotion
Strategy
Pricing
Strategy

The Promotion Mix and Marketing Objectives

The Promotion Mix and the Marketing Efforts
Overall Marketing Promotional Mix

Objectives
Advertising
Public Relations
Marketing Mix Personal Selling
Product Sales Promotion
Distribution
Promotion
Price
Target Market Promotion Plan

Differential Advantage
High product quality
Rapid delivery
Features
that provide
differential Low prices
advantage
Excellent service
Unique features

Promotional Mix
Combination of promotion tools used to

reach the target market and fulfill the
organizations overall goals.
Advertising
Public Relations
Personal Selling
Sales Promotion

Promotional Mix
Advertising
Elements Public Relations

of the
Promotional
Mix Personal Selling
Sales Promotion

Advertising
Impersonal, one-way mass communication

about a product or organization that is paid
for by a marketer.

Advertising Media
Traditional Electronic
Advertising Media Advertising Media
Television Internet
Radio Computer modems
Newspapers Fax machines
Magazines
Books
Direct mail
Billboards
Transit cards

Public Relations
The marketing function that evaluates public

attitudes, identifies areas within the organization
that the public may be interested in, and executes a
program of action to earn public understanding and
acceptance.

Public Relations
Identifies
areas
Evaluates of public
public interest
attitudes
Executes
programs
to win
public
Functions of
Public Relations
Sales Promotion
Marketing activities--other than personal selling,

advertising, and public relations--that stimulate
consumer buying and dealer effectiveness.

Sales Promotion
Trade
End Customers
Consumers
Company
Employees
Sales Promotion
Targets
Sales Promotion
Free samples
Contests
Premiums
Trade shows
Popular tools
for Vacation giveaways
consumer sales
Promotion Coupons

Personal Selling
Planned presentation to one or more prospective

buyers for the purpose of making a sale.

Personal Selling
Traditional Relationship
selling selling

Characteristics of PR, Personal Selling, Advertising, and Sales Promotion

Characteristics of Advertising
Advertising
Communication mode Indirect and non-personal

Communication control Low
Feedback amount Little
Feedback speed Delayed
Message flow direction One-way
Message content control Yes
Sponsor identification Yes
Reaching large audience Fast
Message flexibility Same message to all audiences

Characteristics of Public Relations
Public Relations
Communication mode Usually indirect, non-personal

Communication control Moderate to low
Feedback amount Little
Feedback speed Delayed
Message flow direction One-way
Message content control No
Sponsor identification No
Reaching large audience Usually fast
Message flexibility Usually no direct control

Characteristics of Sales Promotion
Sales Promotion
Communication mode Usually indirect, non-personal

Communication control Moderate to low
Feedback amount Little to moderate
Feedback speed Varies
Message flow direction Mostly one-way
Reaching large audience Fast
Message flexibility Same message to varied target

Characteristics of Personal Selling
Personal Selling
Communication mode Direct and face-to-face

Communication control High
Feedback amount Much
Feedback speed Immediate
Message flow direction Two-way
Reaching large audience Slow
Message flexibility Tailored to prospect

AIDA and the Promotional Mix
Awareness Interest Desire Action
Very Very Somewhat Not

Advertising effective effective effective effective
Public Very Very Very Not

Relations effective effective effective effective
Sales Somewhat Somewhat Very Very

Promotion effective effective effective effective
Personal Somewhat Very Very Somewhat

Selling effective effective effective effective

Factors Affecting the Promotional Mix
Nature of product
Stage in PLC
Target market factors
Factors Type of buying decision

affecting
choice of Promotion funds
promotional mix
Push or Pull strategy

Team Exercise
Identify the major Promotional

Mix elements in each of the
PLC stages

Promotion Mix Strategies Across the PLC
Maturity
Sales ($)
Introduction Growth Decline
Time
Light Heavy use of Advertising, Ads decrease. AD/PR

Advertising, advertising, PR, Brand Sales decrease
pre- PR for loyalty Promotion, Limited
introduction awareness; Personal Personal Selling Sales
Publicity sales Selling for Reminder & Promotion,
promotion distribution Persuasive Personal
for trial Selling for
distribution

Type of Buying Decision
Advertising
Routine
Sales Promotion
Type of
buying decision Advertising
affects Not routine
promotional or complex Public Relations
mix choice
Complex Personal Selling

Push and Pull Strategies
Push Strategy
Manufacturer Wholesaler Retailer Consumer
promotes to promotes to promotes to buys from
wholesaler retailer consumer retailer
Orders to manufacturer
Pull Strategy
Consumer Retailer Wholesaler
Manufacturer
demands demands demands
promotes to
product product product from
consumer
from retailer from wholesaler manufacturer
Orders to manufacturer

Marketing Research
Module 6
M06: Marketing Research 1

Marketing Research Defined
The process of planning, collecting, and

analyzing data relevant to a marketing
decision.

Management Uses of Marketing Research
Improve the quality of decision making
Trace problems
Focus on keeping existing consumers
Understand the ever-changing

marketplace

The Marketing Research Process
Define
problem
Plan design/ Specify
primary data sampling
procedure
Collect
data
Analyze
data
Prepare/
present
report
Follow up

Marketing Research
Determining what information is

Marketing research
needed and how that information can
problem be obtained efficiently and effectively.
The specific information needed to

Marketing research solve a marketing research problem; the
objective objective should provide insightful
decision-making information.
A broad-based problem that requires

Management
marketing research in order for
decision problem managers to take proper actions.

When Should Marketing Research be Conducted?
Where there is a high level of

uncertainty
When value of research information

exceeds the cost of generating the
information

Types and Sources of Data

Secondary Data
Data previously collected for

any purpose other than the
one at hand.

Sources of Secondary Data
Internal corporate information
Government agencies
Trade and industry associations
Marketing research firms
Commercial publications
News media

Advantages of Secondary Data
Saves time and money if on target
Aids in determining direction for primary

data collection
Pinpoints the kinds of people to approach
Serves as a basis of comparison for other

data

The New Age of Secondary Information
The Internet
Search engines and Directories
Sites of interest to marketing researchers
Discussion groups
Periodical, newspaper, and book databases

Research Design (Primary Data)
Specifies which research

questions must be
answered, how and when
the data will be gathered,
and how the data will be
analyzed.

Planning the Research Design
Which research How and when

questions will data be
must be answered? gathered?
?
How will
the data
be analyzed?

Primary Data
Information collected for the first time. Can

be used for solving the particular problem
under investigation.

Advantages of Primary Data
Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained

Questionnaire Design
An interview question that encourages

Open-ended
an answer phrased in respondents own
question words.
An interview question that asks the

Closed-ended
respondent to make a selection from a
question limited list of responses.
A closed-ended question designed to

Scaled-response
measure the intensity of a respondents
question answer.

Questionnaire Design
Clear and concise
No ambiguous language
Unbiased
Qualities
of good
questionnaires
Reasonable terminology

Team Exercise
You are the store Manager of an electronics shop.
You have just been promoted to this position and you need to
assess the stores Customer Satisfaction Rating .
You need to build a Customer Survey questionnaire to do the job.
Your findings will be important for future action plans and

improvements.
Work
Prepare 15-20 questions to evaluate your customers perceptions on
your overall
Marketing Mix.
Take a sample of 10 persons to conduct the questionnaire.
Present the findings and recommend the necessary actions.

Types of Research
Observation, Mystery Shopper, Surveys

Observation Research
A research method that relies on three types of observation
People watching people
People watching an activity
Machines watching people

Observation Research
People Mystery shoppers

watching
People One-way mirrors
Types of People
observation watching Audits
research an activity
Machines Traffic counters

watching
people Passive people meter

Mystery Shoppers
Researchers posing as
customers who gather
observational data about a store
and collect data about
customer/employee
interactions.

Survey Research
The most popular technique for

gathering primary data in which
a researcher interacts with
people to obtain facts, opinions,
and attitudes.

Forms of Survey Research
In-home interviews Mail surveys
Mall intercept interviews Executive interviews
Telephone interviews Focus groups

(Home and central location)
Observation
Observation

Field Service Firms
Provide
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Retail audits

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Marketing Concepts

M01: Marketing Concepts 1

Marketing (management) is the

M01: Marketing Concepts 2

The production concepts holds that consumers will prefer products

The product concept holds that consumers will favor products

The selling concept holds that consumers, and businesses, if

The marketing concept holds that the key to achieving its

The selling concept The marketing concept

Emphasis is on the product Emphasis is on customers wants

Company first determines customers

Planning is short-run, in term of Planning is long-run, in terms of new

Stresses the needs of seller Stresses wants of the buyers

M01: Marketing Concepts 4

Marketing people typically have four basic objectives to accomplish

Develop and Provide the quality of

M01: Marketing Concepts 5

Starting point Focus Means Ends

Selling and Profits through

(a) The Selling Concept

(b) The Marketing Concept

M01: Marketing Concepts 6

Marketing can be seen as having two main components when

of the market situation, competitors, products and

using the information gained in the analysis to

M01: Marketing Concepts 7

M01: Marketing Concepts 8

M01: Marketing Concepts 9

M01: Marketing Concepts 10

The 4Ps are

M01: Marketing Concepts 11

M01: Marketing Concepts 12

Integrated marketing and the holistic marketing concepts

Sellers view of Information

M01: Marketing Concepts 13

Methods used to Specialised versions

M01: Marketing Concepts 14

What features does it have to meet these needs?

What does it look like? How will customers experience it?

What size(s), color(s), and so on, should it be?

How is it differentiated versus your competitors?

M01: Marketing Concepts 15

The means by which products and

M01: Marketing Concepts 16

Where do buyers look for your product or service?

If they look in a store, what kind? A specialist boutique or in a

How can you access the right distribution channels?

Do you need to use a sales force? Or attend trade fairs? Or make

M01: Marketing Concepts 17

M01: Marketing Concepts 18

What is the value of the product or service to the buyer?

Are there established price points for products or services in this

What discounts should be offered to trade customers, or to other

How will your price compare with your competitors?

M01: Marketing Concepts 19

M01: Marketing Concepts 20

Will you reach your audience by advertising in the press, or on

When is the best time to promote? Is there seasonality in the

How do your competitors do their promotions? And how does

M01: Marketing Concepts 21

The marketing mix model can be used to

It can also be used to test your existing

M01: Marketing Concepts 22

Whether you are Start by identifying the