Marketing Presentation 1st Edition

MARKETING PRESENTAT
PROFESSIONAL CERTIFICATE IN MARKET
VERVIEWING THE MARKETING PROCESS: MARKETING AS AN EXCHANGE PROCES
Consumer
Individua
Costs and benefits
Organization
Slake thirst
Insurance premiums
Medical treatment
Private hospital
Patient
Student
Volunteer
Voter
University
Non-profit
Youth group
Time
Sense of community service
Political party
Vote
Sense of economic/social progress
Public library
Taxes
A good read
ated
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by
Reader
1
Fees
Education
Jude Asongwe
http://www.valuebasedmanagement.net/
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MARKETING PRESENTATION
FOR
PROFESSIONAL CERTIFICATE IN MARKETING
Consumer buying decision making process and its influencing factors:

y
Individual
influences
Personality
Perception
Motivation
Attitude.
Decision-making process
Problem
recognition
Information search
Jude Asongwe
Situational
influences
Sociocultural
Technological
Economic/compe
titive
Political/legal
Information
evaluation/evaluation of
alternatives
Group
influences
Social class
Culture/subcu
lture
Reference
groups
family
Purchase decision
Post-purchase evaluation
Marketing mix
Product
Price
Place
promotion
Summary:
PROFESSIONAL
CERTIFICATE IN MARKETING IS DIVIDED IN TO FOUR PARTS:
Part A: Marketing Fundamentals

Part B: Marketing Environment
Part C: Marketing in Practice
Part D: Customer Communication.
DISTRIBUTION CHANNEL IN CONSUMER MAREKT

Producer
Consumer
Producer
Producer
Producer
Retailer
Wholesaler
Consumer
Retailer
Wholesaler
Agent
Producer
Producer
Retailer
Consumer
Business Customer
Producer
Producer
Consumer
Business distributor
Sales branch
Sales branch
Business Customer
Business customer
Business distributor
Business customer
DISTRIBUTION CHANNEL IN ORGANISATIONAL MARKET
The
CONTENTS of PART A:
Marketing Fundamentals
development of marketing and marketing orientation
Marketing
The
planning and budgeting
marketing mix: Product
The
marketing mix: new product development and portfolio

management
The marketing mix: price
The
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marketing mix: place

The marketing mix: promotion
The marketing mix: People (service and customer care).
Marketing in context
Source: CIM course book
Jude Asongwe
MARKETING FUNDAMENTALS: LEARNING

OBJECTIVES
By the end of this module you should be able to:
Understand the development of marketing and its changing
role within a variety of organizations
Understand the various tools of the marketer and evaluate
their strengths and weaknesses
Recognise the impact achievable through modifying the
marketing mix for (re)positioning the product and service
offerings
Understand the importance of planning in the management of
the marketing activity
Develop an awareness and understanding of thetechnological
advances in marketing and the impact of information
technology on the marketing mix decisions
Understand the importance of customers and their behaviour
relating to marketing decisions
6
Marketing Fundamentals-
The development of marketing and marketing

orientation.
What is marketing?
The marketing concept: marketing orientation.
Factors contributing to the need to be marketing oriented
Marketing as a form of competition: creating customer value
Building a marketing culture
Difficulties in managing the introduction of a customer-oriented culture

Market segmentation
The tools of marketing management: the marketing mix
Overviewing the marketing process: marketing as an exchange process.
The changing role of marketing
What is Marketing?
Marketing is the management process which

identifies, anticipates and satisfies customer
requirements efficiently and profitably. (CIM
definition)
Consists of individual and organizational activities

that facilitate and expedite satisfying exchange
relationships in a dynamic environment through the
creation, distribution, promotion and pricing of
goods, services and ideas ( by Dibb, 2000)
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Marketing Fundamentals.
Jude Asongwe
rketing Fundamentals
Marketing means working with markets to bring about

exchanges for the purpose of satisfying human needs
and wants. It is a process by which individuals and
groups obtain what they need and want creating and
exchanging products and value with others. (Kotler,
2000).
b
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Cre
y
Jude Asongwe
THE MARKETING
CONCEPT ( MARKETING
ORIENTATION).1960s-today
1.
2.
The marketing concept focuses on customers.

A company that adopts the marketing concepts
does the following
Puts customers at the centre of all business
decision-making and planning
Marketing research to better satisfy customers.
10
: Other forms of
orientation.
Production-orientation(1900-1930s)
Product-orientation
Sales-orientation(1930s-1960s)
11
Marketing Fundamentals The
Production Orientation or
concept
The production concept concentrates on production

and distribution economies.
This is based on the notion that customers will choose

lower priced products that are readily available.
12
Marketing OrientationPRODUCT ORIENTATION
13
Marketing
Fundame
ntals: The
orientatio
sales (sel
n.
ling) c
14
oncept or
This is of course based on the notion that

customers need to be persuaded to buy
through aggressive selling and promotion.
MARKETING HISTORY AND BUSINESS

ORIENTATIONS - SUMMARY
15
Marketing fundamentals: Factors
underpinning
the need to be market oriented.
Demand
Average disposable income
General level of education
Mass media/ access to information
Supply/industry capacity
Competition
Broad political, economic,
social,technological, ecological and legal
factors (PESTEL) factors.
16
Marketing as a form of competition:

reating customer value
arketing Fundamentals- :
Marketers are recognizing that it is important to be

competitor as well as customer oriented.
The achievement of organisational and marketing
objectives rests on whether the company can beat the
competition
Provision of value to customers is important
Marketing research will help better satisfy customers
Good customer service and customer care
Market intelligence about competitors.
Reliability of service, speedier delivery, low prices, high
quality; can create superior customer value.
Superior customer value should reflect customers needs.
Source:
17Marketing Fundamentals
Marketing fundamentals-
Building a marketing culture
Thinking about customers through how we view and

define the business is the first step in developing a
marketing culture.
Thinking about customers must permeate all functions
and levels of the organization and not just the
marketing function or even senior management.
Communication among managers and employees
from different function is important
Marketing Research and market intelligence.
Co-ordination between functions based on customer
needs.
Marketing planning
Company-wide communication on customer needs.
Right attitudes, practices throughout the company.
18
ASSESSING THE EXTENT OF

THE MARKETING CULTURE:
An Assessment of the following issues are concerned in order to know the extend to which businesses have been successful or unsuccessful in marketing orientation
1.
2.
3.
4.
5.
6.
7.
8.
9.
Management
Employees
Products
Services
Competitors
Prices
Distribution of products
Market
Strategies
19
Marketing Fundamentals- DIFFICULTIES
IN
MANAGING THE INTRODUCTION OF A
CUSTOMER-ORIENTED CULTURE:
Managers fail to realize or understand the true concept of

market orientation.
Resistance to change
Power struggle between departments.
Separation of the responsibility for marketing strategy and
implementation.
Lack of co-ordination
Lack of technology/inability to use latest technology.
Poor planning
Influence of macro factors (PESTEL Analysis)
Influence of micro factors: Employees, management, suppliers,
distributors, media and competitors.
Inadequate finance
No strategic direction
20
Marketing fundamentals
MARKETING AS A MANAGEMENT
FUNCTION:
1.
2.
3.
4.
5.
21
Marketing is the function of management.

Management has to control, co-ordinate, plan, motivate, analyze and
organize marketing activities:
The marketing manager has to perform the following:
Marketing / market research
Planning
Environmental analysis
Market segmentation, targeting and positioning.
Marketing mix implementation
Marketing is not only the function of the marketing manager.
Marketing should be part and parcel of each and every department of
the company.
The various departments such as Human Resource, Production,
Logistics, Finance, Stock and Technical departments have to corporate
with the marketing department
MARKET
SEGMENTATION
Learning objectives
1.
2.
3.
4.
To understand what is market segmentation

To examine the reasons for segmenting the
market
To examine the bases for segmenting the
market.
To examine the importance of segmenting the
market.

22
Marketing Fundamentals -
MARKET SEGMENTATION
Definition
What is market segmentation?
Market segmentation is the process of identifying and
classifying customers according to their different needs
and
wants.
23
MARKET
SEGMENTATION. Definition continues
It is the division of market in to groups of customers

and using the marketing mix to target customers in
these groups.
It is the splitting up of customers in to segments and
using the marketing mix to target customers.
24
Source:
CIM course book
Marketing fundamentals- MARKET SEGMENTATION
REASONS FOR SEGMENTING THE MARKET
1.
2.
3.
4.
5.
6.
7.
8.
Because of differences that exist among

customers with regards to the following:
Age
Psychology
Sex
Life cycle
Marital status
Life style.
Behaviour
Inadequate finance.
Location
Income
Culture
Social status
25
Source: CIM course
Marketing fundamentalsMARKET SEGMENTATION
THE CRITERIA FOR SEGMENTING THE MARKET
Identifiable
Profitable
Recognisable
Accessible
Actionable
Stable (reliable)
Substantial
Measurable
Affordable
26
Marketing fundamentals- MARKET SEGMENTATION
BASES FOR SEGMENTING THE MARKET IN

CONSUMER MARKET
Demographic: age,gender,income,occupation, marital

status and Life cycle
Geographic: regions, counties, nations, cities, town, villages
and continents.
Geo-demographic: Segmentation according to geography
and demography. This is used by ACORN: The post office
also uses this.
Psychographic: social class and perception of customers.
Behaviour: User status, usage rate, usage occasion, loyalty
status and purchase rate.
27
M1
M2
M3
Targeting
M1
P1
Single segment
target
P2
P3
P1
M1
M2
M1 M2
P1
P2
P3
28
P1
P2
Product specialisation
Multi-segment
target
P3
M3
P3
M3
P2
M2
M1
M2
M3
P1
P2
M3
P3
Market
Specialisation
M=Market and P= Product
Full market coverage
Strategy
Segment 1
MARKETING MIX
Concentrated strategy/marketing
MARKETING MIX 1
Segment 2
Segment 3
Segment 1
MARKETING MIX 2
Segment 2
MARKETING MIX 3
Segment 3
Differentiated strategy/marketing
MARKETING MIX
29
Whole
market
POSITIONING
Positioning means designing a product to occupy a distinct
and valued place in the minds of customers.

Companies can position the market in terms of price,
product, quality, brands, promotion, and customer service.
The essence of positioning is to enable the company to have
more competitive advantage over its competitors.
When positioning, the company should identity customers
needs, produce the product targeted at customers.
The product packaging, labelling, styling, branding,
designing, pricing, promotion and distribution should
seriously be analysed.
A good marketing programme such as marketing research,
Marketing mix, segmentation, targeting, new product
development and market expansion will boost the companys
competitive advantage.
30
POSITIONING
Companies need to find out what position they
are
in, in relation to their competitors.
Am I a market leader or a market follower? This is
a question that should be asked by organisations.
Marketing planning, and marketing
strategies should be implemented to enable
the company to have competitive
advantage.
31
POSITIONING
KEYS TO SUCCESSFUL POSITIONING

Consistency
Clarity
Successful positioning
Credibilit
y
Compet
itivenes
s
Source: Principles and practice of marketing- 2nd edition by David Jobber
ated
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Jude Asongwe
POSITIONING
.
.
..
.
POSITIONING MAP OF SUPERMARKETS:

A
High price
C
D
Wide product range
Low price
. ..
G
A PERCEPTUAL MAP OF SUPERMARKETS

Source: Principles and practice of marketing- 2 nd edition by David Jobber
33
F
E
Narrow
product range
BUSINESS TO BUSINESS BUYING

BEHAVIOUR:
Otherwise known as industrial or organisational buyer
behaviour:
Business to business transaction is when

one business transact business with another.
Certain factors influence business to business buyer

behaviour.
1.
Marketing mix: price,product, place , promotion
2.
Environmental influences
3.
Organisational factors
4.
Group influences: reference groups e.g decision
making unit such as users, influencers, deciders,
approvers, gate keepers and buyers.
34
Business
Example of a shoe manufacturer
Hides and skin
producer
Leather
producer
to Business Marketing Business to business buyer
distributor
Shoe
manufacturer
behaviour
Agent
Wholesaler
Retailer
Consumers
Example of cloths manufacturer

Cotton
producer
Distributors
Textile
Industry/manufac
turer
Agents
Producer
Agent
Wholesalers
Retailers
Consumers
Example of biscuit manufacturer

Sugar/flour
Banana p
Distributor
Wholesaler
Retailer
Consumers
Example of bread manufacturer

Flour producer
Distributor
Producer
Agent
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Example of car manufacturer

Iron and steel
Tyre producers
Distributor
Car producer
Example of aircraft manufacturer

Accessories
producer
35
Aircraft
producer e.g
Boeing
Wholesaler
Consumer
Consumers
STRATEGIC MANAGEMENT
Strategic analysis
Strategic
Choice
36
Strategy implementation
A basic model of strategic management process

Source: Exploring Corporate Strategy by Gerry Johnson
Kevan Scholes
STRATEGIC MANAGEMENT
Culture and
stakeholder
expectation
The
environ
ment
Resources
And strategic
capabilities
Strategi
c
analysis
Identifying
Strategic
options
Strategi
c choice
Evaluating
options
Selecting
strategy
37
Strategy
implemen
tation
Managing
Strategic
change
Planning
And
allocating
resources
Organisati
on
structure
and design
CORPORATE SOCIAL RESPONSIBILITY
This is the responsibility that corporate businesses have on the environment. They are
supposed
to produce goods and services under social and environmentally friendly conditions:
CORPORATE SOCIAL RESPONSIBILITY TOUCHES THE FOLLOWING AREAS:
1.
Employees
Suppliers
Retailer
Distributors
2.
Customers
Government
Shareholders
Competitors
3.
Products
Services
Banks
Media
Green
issues
SOCIALEnvironmental
RESPONSIBILITY
4. CORPORATE
Local community
pollution CAN BE VIEWED
FROM TWO ANGLES:

Internal Aspects: This focus on the companys internal structure
E.g Employees, Shareholders, Management, Products, Services, and
Resources.
External Aspects: This focus on the society : For example Pressure
Groups, local community, government, media, suppliers, distributors
and Retailers
38
SWOT ANALYSIS
STRENGTH
WEAKNESSES
High
profit
Sales
Market share
High product quality
Many product lines
High staff morale
High staff motivation
New technology
High managerial ability
Technical expertise
Machinery
Economies of scale
Good mission statement
Good customer service
New product development
Low
OPPORTUNITIES
THREATS
Market
High
expansion
Reduction of taxes
Deregulation or reduction of legislation
New market (emerging markets)
Good economic conditions
Good social conditions
Stable political, social, economic and ecological environment
39
profit
Sales
Market
share
Low product quality
Limited product lines
Low staff morale
Low staff motivation
Lack of technological development
No technical expertise
Insufficient machinery for production
Diseconomies of scale
Poor mission
Poor customer service
competition
Inflation
Legislation
High taxes
Natural disasters e.g Hurricanes, Tsunami, Flood,
Landslide, Earthquakes and Tornadoes
Political instability: wars
High unemployment
High interest rates
THE TOOLS OF MARKETING

MANAGEMENT: THE MARKETING MIX
What is the marketing mix

The components of the marketing mix.
40 Source: CIM course book
The tools of the marketing management:
THE MARKETING MIX - definition
It is the strategic blending of product,

price, place, promotion, people, physical
evidence and processes in order to
achieve marketing objectives
It is a combination of 7ps which marketers
use in order to satisfy the market.
41 Source: CIM course book
The tools of the marketing management:
THE MARKETING MIX definition

Continues
Marketing mix is the tactical toolkit of the

7ps ; namely product, price , place,
promotion, people, physical evidence
and processes.
42Source: CIM course book
THE MARKETING MIX - PRODUCT

We will examine the following issues under product:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
43
Product Definition
Product Classification
Various levels of a product
The Product Mix
The Product Life cycle
Product Packaging
Product Labeling
Product quality
Product lines
Branding
The product adoption process
New Product Development Process
The importance of New Product Development
Portfolio Analysis
Product Pricing
Product Placing
Promotion of product.

PRODUCT CLASSIFICATION:
Consumer Products
1.
Shopping goods: e.g. television, cloths, shoes,
watch & cameras
2.
Unsought goods: e.g life assurance, grave
stones,grave yard,
3.
Convenience goods
4.
Speciality goods
Producer products
1.
2.
3.
44
Materials and parts

Machinery
Services

THE VARIOUS LEVELS OF A PRODUCT:
Potential product
Augmented product
Expected product
Actual/Basic product
Core product
45
Firm infrastructure
Technology development
Human resource management
Procurement
Inbound
Logistics
46
Operations
Outbound
Logistics
Marketing
and sales
Service
46
McKinseys Seven Ss
model
The 7-S Framework of McKinsey is a management model that describes
7 factors to organize a company in an holistic and effective way.
Together these factors determine the way in which a corporation
operates.
Managers should take into account all seven of these factors, to be sure
of successful implementation of a strategy. Large or small.
They're all interdependent, so if you fail to pay proper attention to one
of them, this may effect all others as well. On top of that, the relative
importance of each factor may vary over time.
47
Origin of the 7-S Framework. History

The 7-S Framework was first mentioned in "The Art Of Japanese Management" by
Richard Pascal and Anthony Athos in 1981. They had been investigating how
Japanese industry had been so Successful.
At around the same time that Tom Peters and Robert Waterman were exploring
what
made a company excellent. The Seven S model was
born at a meeting of these four authors in 1978.
It appeared also in "In Search of Excellence" by Peters and Waterman,and was
taken
up as a basic tool by the global management consultancy company McKinsey.
Since
then it is known as their 7-S
model.
48
McKinseys Seven Ss model

Structure
Skills
Systems
Share values
Style
Strategy
Staff
Shared Values (also called Superordinate Goals). The interconnecting center of McKinsey's model is: Shared Values.
What does the organization stands for and what it believes in. Central beliefs and attitudes. Compare: Strategic Intent
Strategy
Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition,
customers.
Structure
The way in which the organization's units relate to each other: centralized, functional divisions (top-down); decentralized;
a matrix, a network, a holding, etc.
49

System
The procedures, processes and routines that characterize how the work should
be done:
financial systems; recruiting, promotion and performance appraisal systems;
information systems.
Staff
Numbers and types of personnel within the organization.
Style
Cultural style of the organization and how key managers behave in achieving
the
organization's goals. Compare: Management Styles.
Skill
Distinctive capabilities of personnel or of the organization as a whole.
Compare: Core Competences.
50

Strengths of the 7-S Model. Benefits
Diagnostic tool for understanding organizations that
are ineffective.
Guides organizational change.
Combines rational and hard elements with emotional
and soft elements.
Managers must act on all Ss in parallel and all Ss are
interrelated.
51
Barriers to Implementation
INTERNAL
Management culture
Leadership skills
Organisational structure
Resources
Attitude to planning
Measurement procedures
Communications
EXTERNAL
Political intervention
Competition
Distributors
Suppliers
Customers
Economic conditions
Change in technology
52
Gilligan and Fifield
Implementation Variables
Senior management involvement
Staff involvement
Successful
implementation will
occur
Staff will struggle

Implementation will be
impeded
Staff are likely to resist Plan resist in all ways

the plan. Implementation Implementation stage
will be impeded
unlikely to succeed.
53
STAKEHOLDERS
Employees
Present and
prospective
competitors
Local
community
Suppliers
The Firms
Stakeholder
Distributors
Management
Shareholders
54
Media
STAKEHOLD
VALUE VALUES
STAKEHOLDER
STAKEHOLDER
AND EXPECTATIONS
ES
EXPECTATION
EXPECTATION FROM
ORGANISATION
Consumers
Purchase
goods
and services thus
raising revenue for
organisations.
Fair
prices
Safe and healthy products
Environmentally friendly products
High quality products
Good customer service and care.
Payment
Employees
They
Good
Commitment
help produce
goods and services.
Management
They
Suppliers
They
Distributors
They
55
help plan,
organise, direct,
control, motivate
and train staff.
supply
logistics needed for
production.
distribute the
products to the
market.
working conditions
Fair wage for a days job/month
Motivation bonuses, allowances,
holidays, promotion, ego and self
actualisation needs.
Equal opportunity in employment,
training and development.
Training and development
Industrial democracy
Empowerment and delegation
Freedom of speech/free flow
communication
for goods and services

Good behaviour from customers
Respect purchasing policies.
from staff
strike action
No absenteeism
Total participation
Respect companys policies
Good morale
No
STAKEHOLDERS
STAKEHOLD
ES
VALUE
Financial
institutions
Provides
Government
Provides
Local community
Purchase
STAKEHOLDER
EXPECTATION
financial products e.g loans,

overdraft and advice.
public and merit goods.
Help investors morally and financially.
organisational products.
Pressure group
Shareholders
Provide
Retailers/wholes
alers/agents
Facilitate
Competitors
Compete
56
shares (business finance)

Put pressure on companies to produce
products under social and environmentally
friendly conditions.
the distribution
Acts as an important link in business supply
chain.
with firms thus making companies
to offer even better services and goods.
EXPECTATION
FROM
ORGANISATION
STAKEHOLDERS
Stakeholders can be divided into three categories

1.
2.
3.
57
Internal Stakeholders: Employees,

Management, shareholders and BOD.
Market place stakeholders: Customers, banks,
media, suppliers, distributors, agents, retailers
and wholesalers and competitors.
External Stakeholders: Government, pressure
groups and the local community
The New Product Development Process

Idea generation
Idea screening
Concept development and testing
Outlining Marketing strategies
Business Analysis
Product development
Test marketing
Commercialisation
Monitoring
Controlling
58
CHARCTERISTICS
PRODUCT INTRODUCTION
LIFE CYCLE
GROWTH
CHARACTERISTICS
MATURITY
DECLINE
Sales
Low
Increasing
Slowing
Declining
Profits
Loss
Peaking
Declining
Low to Zero
Cash flow
Negative
Moderate
High
Low
Customers
Innovative
Mass Market
Mass Market
Laggards
Strategic focus
Expanding market
Market penetration
Defensive
marketing
Productivity
Marketing
expenditur
e
High
High-declining
Falling
Low
Product plan
Market to
innovators, early
adopters; high
product failure
rate; basicdeveloping
Expand for early

and late majority;
less product
distinctiveness;
improve models.
Widen product
lines, rationalize
brand; less
competition;
differentiate.
Niche marketing;
reinforce brand
loyalty; rationalize
Competitor
reaction
No reaction
Maximum new
entrants - high
Marginal
competitors exit
Competition
declines
Pricing plan
High skimming
Differentiated for Lowest each segment

competitive
Price cutting
rises for niches
Distribution plan
Unstable pattern
widen
channels, seize
shelf space.
Increasing
pattern
competitor
activity
Segmented,
fragmented and
localized.
59
Control passing
to fewer firms
COMPETITION
LAYERS OF COMPETITION
Tertiary competitors
Secondary competitors
Immediate
competitors
Technically similar
products
60 Source: Principles and practice of marketing by David Jobber
MICHAEL PORTERS FIVE FORCE

ANALYSIS OF THE COMPETITIVE
STRUCTURE
Potential entrants
Threat of
entrants
Bargaining
Suppliers
Power
Competitive
Rivalry
Bargaining
Buyers
Power
Threat of
substitutes
Substitutes
61
Source: Exploring Corporate Strategy by Garry Johnson and Kevan Scholes

Adapted from M. Porter, Competitive Strategy, Free Press,
1980, p. 4.
THE IMPORTANCE OF THE

PRODUCT LIFECYCLE:
The product life cycle is important in planning

and control
Strategic formulation, implementation and
analysis
Advertising strategy
Product management
Targeting and positioning
62
PORTFOLIO ANALYSIS
Business Portfolio: The collection of businesses and products
that make up the company.
Portfolio analysis: A tool by which management
identifies and evaluates the various businesses that
make up the company
Strategic business unit (SBU): A unit of the company that has
a separate mission and objectives and that can be planned
independently from other company businesses. A SBU can be
a company division, a product line within a division, or
sometimes a single product or brand.
63
PORTFOLIO
ANALYSIS GROUP MATRIX
BOSTON CONSULTING
Market growth
High 20
Low
64
Framework of the BCG Matrix
10
0
10x
1x
Market share
0.1x
Stars
PORTFOLIO ANALYSIS
High growth
High market share (High-share businesses)
Products often require heavy investment to finance their rapid growth
High profit and high sales
Cash cows
Low-growth
High-share businesses or products
Established and successful units that generate cash that the company uses
to pay its bills and support other business units that need investment
Profit and sales are high but later decline because of competition
Question marks
Low-share business units in high-growth markets
Low profits and sales.
Dogs
Low growth
Low market share
Low profit
Low sales
65
BCG MATRIX : BCG CLASSIFICATION OF

PRODUCTS
High 20
Question marks
Market growth
Stars
Low
66
10
Dogs
Cash cows
0
10x
1x
0.1x
BCG MATRIX- CASH POSITION FOR

PRODUCTS
Stars
Question marks
Revenue
+++
Investment - - 0
Revenue
Cash cows
Dogs
Revenue + + +
Investment
++
Revenue +
Investment
0
67
+ +
Investment - - -
PORTFOLIO STRATEGIES
Build
Hold
Harvest
Divest
68
GENERAL ELECTRIC MATRIX
69
THE GENERAL ELECTRIC

MATRIX BY MCKINSEY
The GE matrix / McKinsey matrix is a model to perform

a business portfolio analysis on the Strategic
Business Units of a corporation.
A business portfolio is the collection of Strategic

Business Units that make up a corporation. The optimal
business portfolio is one that fits perfectly to the
company's strengths and helps to exploit the most
attractive industries or markets. A Strategic Business Unit
(SBU) can either be an entire mid-size company or a
division of a large corporation, that formulates its own
business level strategy and has separate objectives from
the parent company.
70
THE GENERAL ELECTRIC

MATRIX BY MCKINSEY
The aim of a portfolio analysis is to:

1) Analyze its current business portfolio and decide which
SBU's should receive more or less investment, and
2) Develop growth strategies for adding new products
and businesses to the portfolio
3) Decide which businesses or products should no longer
be retained.
The BCG Matrix (Boston Consulting Group Matrix) is the
best-known portfolio planning framework. The GE /
McKinsey Matrix is a later and more advanced form of
the BCG Matrix.
71
THE GENERAL ELECTRIC MATRIX BY

MCKINSEY
Typical (external) factors that affect Market Attractiveness:

- Market size
- Market growth rate
- Market profitability
- Pricing trends
- Competitive intensity / rivalry
- Overall risk of returns in the industry- Entry barriers
- Opportunity to differentiate products and services- Demand variability
- Segmentation
- Distribution structure- Technology development
Typical (internal) factors that affect Competitive Strength of a Strategic Business

Unit:
- Strength of assets and competencies
- Relative brand strength (marketing)
- Market share- Market share growth
- Customer loyalty
- Relative cost position (cost structure compared with competitors)- Relative profit
margins (compared to competitors)
- Distribution strength and production capacity
- Record of technological or other innovation- Quality
- Access to financial and other investment resources- Management strength
72
A six-step approach to implementation of portfolio analysis

(using the GE / McKinsey Matrix) could look like this:
1. Specify drivers of each dimension. The corporation must carefully
determine those factors that are important to its overall strategy
2. Weight drivers. The corporation must assign relative importance
weights to the drivers
3. Score SBU's each driver
4. Multiply weights times scores for each SBU
5. View resulting graph and interpret it
6. Perform a review/sensitivity analysis using adjusted other weights
(there may be no consensus) and scores.
73
74
Some important limitations of the GE

matrix / McKinsey Matrix are:
- Valuation of the realization of the various
factors
- Aggregation of the indicators is difficult
- Core competencies are not represented
- Interactions between Strategic Business
Units are not considered
CHANGES IN PRODUCT/STRATEGIC
BUSINESS POSITION
75
CONCLUSION
76
GENERAL ELECTRIC BUSINESS

SCREEN (GE)
77
PRODUCT LINE
A
Television
Panasonic
Sharp
Sony
LG
Technics
Samsung
Product
Line
length
Laptops
HP
Packard bell
Microsoft
Dell
PC world
Sony
Cars
Mobile
Watches
Jaguar
Mercedes
Rover
Vauxhall
Corolla
Nissan
Audi
Ferrari
Opel
BMW
Honda
Pajero
Toyota
Camri
Nokia
Motorola
Samsung
LG
Siemens
Sargem
Sony E
Rolex
Seiko
Seconda
14
78
Product line width
7
Product
Line
Length
NATONAL INCOME STATISTICS
79
GDP STATISTICS
80
PRICE
PRICING STRATEGIES:
Cost-based pricing or cost-oriented pricing:
a)
Full cost pricing
b)
Direct cost pricing
2. Competitor-based pricing or competitor orientated pricing
a)
Going-rate pricing
b)
Competitive bidding
3. Market-oriented pricing
4. Product line pricing
5. Me too pricing
6. Product bundling pricing
7. Seasonal pricing
8. Psychological pricing
1.
Source: Principles and practice of marketing 2nd Edition by David Jobber
81
PRICE
FACTORS THAT DETERMINE THE PRICE OF PRODUCTS:
MACRO FACTORS
Political
Economic
Social
Technological
Ecological
Legal
1.
2.
3.
4.
5.
6.
MICRO FACTORS
7.
8.
9.
10.
11.
12.
82
Customers (demand & market segment)

Competitors
Suppliers
Distributors
Media
Company: production costs, objective and mission.
RESEARCH STUDIES
83
WHAT IS RESEARCH
Research
is the gathering, recording, analysing and reporting of all facts relating to the
transfer and sale of goods and services from producers to consumers. It is usually based
on statistical probability theory and always uses scientific methods.
Research is the
Gathering
Analysis
Storage
Retrieval
and
Dissemination of information to aid in decision making:
84
Source: Association of business executives
WHY RESEARCH
1.
2.
3.
4.
5.
6.
7.
8.
85
To find out cost involved in advertising

To find out what customers want to buy
To determine which distribution methods are
more efficient
To analyze what competitors are doing
To reduce risk
To help in planning and forecasting results
To aid mix decisions
To improve decision-making capabilities
INTERNATIONAL MARKETING RESEARCH AND ANALYSIS

THE MARKETING RESEARCH PROCESS
MARKETING RESEARCH
MARKETING RESEARCH
THE MARKETING RESEARCH PROCESS
Defining the
research
QUESTION
AND
objectives
Developing
The research plan
For collecting
information
Implementing the
Research planCollecting and
Analysing the
data
Interpreting and
Reporting the
findings
FIGURE 2: The Marketing Research Process.
Sunday, February 19, 2006
86
By J Asongwe
Source: Principles of marketing by Philip Kotler
The research process

The process of research describes the steps taken
in the research activity:
Gathering
Analysis
Storage
Retrieval
Dissemination
87
Source: Association of business executives
THE MARKETING RESEARCH PLAN: (WH QUESTIONS)

The research plan includes objectives, strategies and programmes and above all it
should be logical and
structured.
1.
What are the research problems? ( outline the research problems)
2.
What are the research objectives?( outline the research objectives)
3.
Determine the target to be researched : crucial to the research plan.
4.
Which research methodology are you using? Determine how the research is to be
carried out:
5.
Who will be responsible for carrying out the research? In-house or external
agency.
6.
How will data be collected?
7.
When will the research be carried out? Determine
8.
How long will the research take. (set time frame or limit)? time scale is important.
9.
How much budget have you set aside for the research? Set or agree the budget:
10.
Where will the research be carried out?
11.
Start carrying out the research : Implement the plan
12.
Gather and record the information
13.
Monitor and control
14.
Reach conclusions: Report the information and take action.
15.
Store the information to be retrieved in future.
88
RESEARCH PROPOSAL
The research proposal defines what the marketing research promises to do for its
client, and how
much it will cost.
Like the research brief, the proposal should be written to avoid misunderstandings.
A client should expect the following to be included.
1.
A statement of objectives: to demonstrate an understanding of the clients
marketing and research problems
2.
What will be done: an unambiguous description of the research design including
the survey method, the type of sample, the sample size, and how the fieldwork will
be controlled.
3.
Timetable: if and when a report will be produced.
4.
Costs: how much the research will cost and what specifically is/is not being
included in those costs.
89
TYPES OF RESEARCH
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
90
Primary (field) research

Secondary (desk) research
Exploratory research
Conclusive research
Market research: This is focused on the size, composition, trends, structure of the market,
competitors and the environmental factors affecting the market.
Marketing research: Research which is focused on the marketing mix elements: Product,
price, place, promotion, people, physical evidence and process.
Experimental research:
Quantitative research:Quantitative comes from quantity meaning numbers. Results can be
in the form of numbers or percentages. This type of research is used to assess trends,
potential and actual growth or decline of a market or product consumption.
Qualitative research: Its about ideas and opinions, likes and dislikes: Likert scale or semantic
differential scale is normally used in qualitative research, which allows responses to be
quantified.
Observational research:
Survey research:
Descriptive research : Survey research may be undertaken to describe customers beliefs,
attitudes, preferences, behaviour, etc. For example, a survey into advertising effectiveness
might measure awareness of the brand, recall of the advertisement, and knowledge about its
content.
RESEARCH METHODS
PRIMARY RESEARCH METHOD
91
Interviews and discussions

Observations
Questionnaires
Test marketing
Sampling
Survey/(Intelligence gathering)
USING EXTERNAL RESEARCH

AGENCIES
92
In-house or External
Finding, selecting and recruiting an
agency
Briefing
Controlling
DATA COLLECTION
Primary source
Secondary sources
Source: Principles and practice of marketing 2 nd Edition by David Jobber
93
SAMPLING
THE SAMPLING PROCESS:
1. Simple random sampling
2. Stratified random sampling
3. Quota sampling
4. Sample size
94
SURVEY RESEARCH
THE SURVEY METHOD
Face-to-face interviews
Telephone interviews
Mail surveys
95
QUESTIONNAIRE DESIGN
PLANNING STAGE
DESIGN STAGE
1.
Ordering of topics : it should have a logical flow
2.
Types of questions: Closed end questions and open
end questions.
3.
Wording and instructions
4.
Layout
5.
Scaling
6.
Probes and prompts
7.
Coding
96
QUESTIONNAIRE
PILOT STAGE
97
DATA ANALYSIS AND

INTERPRETATION
98
REPORT WRITING AND

PRESENTATION
Source: Principles and practice of marketing 2 nd Edition by David Jobber
99
SOURCES OF INFORMATION
There are four main sources of information
1. Internal Sources
2. Government publications
3. Other publications
4. Commercial data
100
SOURCES OF INFORMATION
PRIMARY DATA:
Original
data . Data from the

horses mouth.
It takes time and it is expensive
SECONDARY DATA:
Existing data
Takes less time
It is not expensive
There is a possibility of getting obsolete data
101
MARKETING INFORMATION
SYSTEM:
The Marketing Information System
Marketing Information System
Marketing
environment
Marketing
managers
Planning
Assessing
information
needs
Internal record
Marketing
intelligence
Target
Markets
Marketing
channels
Execution
Competitors
Control
Distributing
information
Information analysis
Marketing research
Publics
Microenviron
ment forces
Marketing decisions and communications

FIGURE 1: The marketing Information
102
System
Tuesday,
December 20,
2005
By J Asongwe
BUSINESS AND MARKETING STRATEGIES

BUSINESS STRATEGY
1. Ansoff Matrix
2. Porters generic strategy
103
MARKETING STRATEGIES
PORTERS GENERIC STRATEGY MODEL
Differentiation
Stuck with no
clear strategy
Cost
leadership
104
Focus
STRATEGIES
ANSOFF MATRIX
Existing
Existing MARKET
PENETRATION
MARKET
DEVELOPMENT
New
105
New
PRODUCT
DEVELOPMENT
DIVERSIFICATION
MARKETING Strategies
Segment 1
MARKETING MIX
Concentrated strategy/marketing
MARKETING MIX 1
Segment 2
Segment 3
Segment 1
MARKETING MIX 2
Segment 2
MARKETING MIX 3
Segment 3
Differentiated strategy/marketing
MARKETING MIX
106
Whole
market
CORPORATE STRATEGIES
ATTACH STRATEGIES
1. Direct challenge differential advantage
2. Direct attack distinctive competence
3. Direct attack market share
4. Flank attack
5. Encirclement
6. Bypass
7. Guerrilla
107
1.
2.
3.
4.
5.
6.
7.
MARKETING STRATEGY
DEFENCE STRATEGIES
Position defence
Pre-emptive defence
Counter-offensive
Mobile defence
Flanking defence
Contraction defence
By-pass
108
OVERVIEWING THE
MARKETING PROCESS: MARKETING AS
AN EXCHANGE PROCESS
109
MARKETING
110
THE CHANGING ROLE OF
Marketing fundamentals -
UNIT 2: MARKETING
PLANNING AND
BUDGETING
LEARNING OBJECTIVES:
To understand what is the marketing planning process.

To understand the importance of the marketing planning process
To examine the structure and components of the marketing plan.
The marketing planning process.
The concept of marketing audit
The value of marketing research and information in developing marketing plans.
To understand the importance and approaches to objective setting.
To understand the importance and process of segmentation, targeting and
positioning
Appreciate the range of tools and techniques to satisfy customer requirements
and compete
The process of setting marketing budgets
To understand the various management structures for implementing marketing

plans and the importance of monitoring and control of marketing activities.
Appreciate the range of tools and techniques available to satisfy customer

requirements and compete.
111
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
112
COMPONENTS OF A MARKETING PLAN
EXECUTIVE SUMMARY
BUSINESS MISSION
MARKTING AUDITING
SWOT ANALYSIS
MARKETING OBJECTIVES
BUSINESS OBJECTIVES
MARKETING STRATEGIES
BUSINESS STRATEGIES
MARKETING MIX
IMPLEMENTATION
EXPECTED RESULT
MONITORING
CONTROLLING
UNIT 2:
MARKETING PLANNING
Definition
Marketing planning is deciding at present what to do in future.
Marketing planning involves the various steps which marketers have to follow
before achieving their overall objectives

113
UNIT 2: MARKETING PLANNING AND
BUDGETING
The marketing planning process

1.
2.
3.
Business Mission/corporate objectives

Marketing audit
SWOT analysis
4.
Business Objectives
5.
Marketing objectives
6.
Marketing strategies
7.
Marketing tactics / marketing mix decisions
8.
Implementation
9.
Monitoring and control

114
MARKETING PLAN
Environmental scanning
Business Mission
Objectives
Strategies
Marketing Mix
Product
Price
Place
Promotion
People
Implementation
Monitoring
115
Control
Physical
evidence
Processes
MARKETING PLANNING
STRATEGY AND PLANNING
Initial environmental and business analysis
Develop the mission statement
CORPORATE
Detailed marketing audit
Corporate objectives and strategy formulation
Marketing objectives and strategy formulation
BUSINESS
Estimate expected results

Identify alternative plans and mixes
Implementation
Review
116
FUNCTIONAL
STRATEGY AND PLANNING
Corporate or visionary planning that provides

a mission and structure for evaluating and
allocating resources to business
Business planning which involves long-range
planning for positioning the company and its
products to best serve its target markets
Functional planning including marketing
planning which is generally annual planning
involving specific goals and plans over one
year.
117
CORPORATE STRATEGY
Strategies are formulated as a response to the
various
factors in the companys environment- and these
may
come from both external and internal sources:
a) External
b) Internal
118
Organizational Stance and

Positioning
119
Leaders
Followers
Nichers
BUDGETING
THE BUSINESS MISSION

Learning Objectives
What is a Mission Statement.

What are the components of a mission statement.
What is the importance of a mission
statemement.
What are the characteristics of a Mission
Statement
Examples of Mission Statements: M&S, Asda,
Tesco, Sainsbury, BT & Npower.
120
BUDGETING
The Marketing Audit

Learning Objective
What is the marketing audit

What are its components
What is the importance of the marketing audit.
121
BUDGETING
THE SWOT ANALYSIS

Learning Objectives
122
What is the SWOT Analysis

What is the importance of carrying out a
SWOT Analysis.
Marketing planning and

budgeting.
123
Content OF PART B: Marketing

Environment:
The nature of the organization and the impact of its

environment
The micro-environment
Analysis of the competitive environment
The macro-environment
The demographic, social and cultural environment
The economic and international environment
The political and legislative environment
The technical/information environments
Environmental information systems-coping with the

challenge of environmental change.
Marketing Environment.

124
Marketing Environment:
LEARNING OBJECTIVES
Understand the nature of the marketing environment
and its relevance for the organisation and marketing
practice.
Examine the various types of organisation, their
objectives and the interface between marketing,
internal functions and external influences.
Recognise the importance of building relationships
with relevant stakeholders.
Identify and interpret the marketing implications of
significant changes in an organization's wider
environment.
Understand the complex, dynamic and uncertain
nature of the external environment and how it might
be best managed in marketing terms.
125
Unit 1: The nature of the organization and the impact of its
environment
The importance of the marketing environment

Business classifications
The formal and informal economy
The legal form of trading organizations
Vision and the organizations mission
General organizational objectives
How are goals established?
What causes the goals to change?
The organization as an open system
The interface between marketing and other functions.
Managing the marketing environment: a contingency approach.
Marketing Environment.
126
environment
LEARNING OBJECTIVES
1. To explain the classification of private, public and voluntary organizations, their
legal status and operational characteristics.
2. Assess comparative strengths and weaknesses of small/medium and large/global
sized organizations.
3. State the meaning and importance of an organizations mission and explain the
nature and significance of the objectives pursued.
4. Identify the internal and external influences on the formation of objectives and
specify the likely drivers for organizational change.
5. Explain the nature of open systems responding to changing environmental
conditions.
6. Represent the organization as an open system responding to changing
environmental conditions
7. Distinguish between the types of organizations with the public, private and
voluntary sectors
8. Understand the diversity of organizational objectives and influences upon them
9. Understand the nature of organizations as open systems and the environmental
influences that affect them.
127
Unit 1: The nature of the organization and the impact of its environment
The formal economy
The public sector

The private sector.
The Informal economy

Hidden
Voluntary
Household
128

environment
The formal economy
The public sector

State industries
Public/private partnership
Quangos
Municipal/local authority services
129
Unit 1: The nature of the organization and the impact of
its environment
The formal economy
The private sector.

Sole traders
Partnerships
Private limited companies; e.g. small/medium
businesses.
Cooperatives; e.g agricultural
Franchises; e.g McDonalds
Public limited companies; e.g Unilever plc
Multinationals: e.g BP, Coca-Cola Inc, Nestle, Cadbury.
130
environment
The Legal form of trading organizations:

Sole Trader:
Characteristics
Oldest type, simplest to form self-employment
Unincorporated
Ownership and control by a single person
Individuals assume all rights/duties
No separate legal existence: the business= the individual
No disclosure of information bar to tax authorities
No limit on employees: may employ >100
Farming/personal services/building/retail
May originate in the hidden economy.
131
Source:
CIM course book
The marketing environment: Unit 1: The nature of the organization and the impact
of its environment
SOLE TRADER:
MERITS
DEMERITS
Minimum formalities
Complete control/no consultation
Raising capital is difficult
Favorable tax treatment
Specialized and risky
Highly motivated/single-minded
Jack of all trades
Least costly to form
May lack continuity
Close to customers/employees
Self-exploitation
Flexible/attend to detail
Competition from large/small
Niches where limit to market
Lack management skills
Exemption from certain legislation
No one to share burden
Personal satisfactions-status
132
Unlimited liability for any debts

,unincorporated,
no legal entity.
The marketing environment: Unit
1: The nature of the

organization and the impact of its environment
PARTNERSHIP
CHARACTERISTICS
133
Unincorporated
Two or more in common with a view to profit
No more than a legally specified maximum number (e.g
20), bar certain professions.
Form an agreement or bound by legislation
Unlimited liability and jointly liable
Share management/profits/losses
No legal personality.

PARTNERSHIP
MERITS
DEMERITS
Able to raise more capital
Unlimited liability unless limited- still

must be at least one partner fully liable.
Pool expertise/mutual support funds
Lack of legal identity-dissolves if

death/disagreement
More chance to specialize
Potential disagreements
No company tax on business
Frozen investment
Unincorporated
No separate legal entity
134
1: The nature of the organization and

the impact of its environment
REGISTERED COMPANY: PLC & Private LC
CHARACTERISTICS
Incorporated, separate legal entity enter contracts,
etc.
Formed under relevant legislations, e.g 1985
Companies Act
Confers various rights and duties
Members contribute capital and own shares.
Dominant form
Liability limited to amount invested or guaranteed.
135

For example, in Britain:
Public Limited Company

(PLC)
Private Limited Company

(Ltd)
Two or more members
Minimum two/100 authorized capital
50 000 and two directors
One director plus a secretary
Offer shares to the public
Offence to offer shares to public
Requires business certificate before

trading/borrowing
Trade once incorporation certificate is

received
Similar legislation elsewhere.
Typical family business

Raising additional bank funds easier
136
1: The nature of the organization

and the impact of its environment
For example, in Britain:
A registered company has a number of duties and must also submit to the
Registrar of Companies:
Memorandum of Association: It contains the external

rules and regulations
Articles of Association: It contains the internal rules and
regulations.
Statutory declaration of compliance with the relevant Act
Independently audited annual accounts and directors
report.
137

REGISTERED COMPANY: PLC & Private LC
MERIT
Separate
DEMERIT
legal entity
Special
and double taxation
Limited
liability of owners
Complex/costly
Greater
financial capability
Disclosure
Easy
transfer of ownership
requirements
Government
regulations
Able
to fund innovation/new product

development
Inflexibility
Customers
Impersonality.
feel reassured.
Economies of scale:Internal and External.
to form
of size

138
e marketing environment: Unit

e impact of its environment
OOPERATIVE
CHARACTERISTICS
Pioneered in mid-nineteenth century-most prevalent in agriculture and

retailing
Governed by relevant legislation
Worker ownership/control but falling numbers/mergers
Limited liability but one member one vote
Self-help not profit maximizing via management committee
Equitable distribution of dividend if a surplus is made.
139

FRANCHISING
CHARACTERISTICS
Franchisor sells the right to market a product under its name to a

franchisee.
Separate entities but interdependence businesses.
Rapid growth especially retailing McDonalds the Body shop.
Ready-made opportunity for an entrepreneur with capital wishing to
minimize risks of a new venture (90 per cent survive beyond three
years).
140

AGREEMENT BETWEEN THE FRANCHISOR AND
THE FRANCHISEE:
Franchisor agrees to
Pay an initial sum to

franchisor
Provide business format/initial

training
Pay a percentage of profit to

franchisor
Supply product and quality control
Buy supplies of product from

franchisor
Extend promotional support (e.g.)

advertising
Maintain standards laid down.
141

THE PUBLIC SECTOR

Local Authorities:
Services provided by local government

Examples include, among others, fire and police,
road maintenance, consumer protection,
recreation, environmental health, education and
airports.
They are managed by elected councillors through
full time professional officers.

142

THE PUBLIC SECTOR

STATE INDUSTRIES
143

THE PUBLIC SECTOR

PUBLIC PRIVATE PARTNERSHIP
144

THE PUBLIC SECTOR

QUANGOS (State Agents)
145

THE PUBLIC SECTOR AND THE PRIVATE
SECTOR COMPARED:
PUBLIC SECTOR
PRIVATE SECTOR

146

NATIONALISATION AND DENATIONALISATION OR
PRIVATISATION COMPARED:
NATIONALISATION
PRIVATISATION
Management and control of state owned

industries by the government
Transfer of ownership and control of state owned

industries from government to individuals.
147

The regulated PLC:
The bulk of nationalized industries were
privatized in the 1980s and 1990s.
They were sold directly to the public:
management/employee buyouts or to other
companies.
Examples of privatized industries in the UK
includes : BT, Royal Mail, London Underground)
148

THE ARGUMENTS FOR PRIVATISATION:
POLITICAL ARGUMENTS
ECONOMIC ARGUMENTS
Reduced
Achieve
role of the state
Deregulation
of the economy
efficiency improvements
Increased
Encourage
shareholding democracy
among customers
Pressure
Enable
Improve
Provide
worker share-ownership
competition and choice
on management to
become marketing oriented
industrial relations
freedom to manage
Exploit
new opportunities
Cut
borrowing(PSBR)and taxes
Supply
side rises in productivity.
Cut
costs
149

VISION AND THE ORGANIZATIONS MISSION:
VISION
Components of a vision statement
Characteristics of vision statements
The importance of a vision statement
From Vision to Mission.

150

HE ORGANIZATONS MISSION
Component of a Mission Statement

Characteristics of a Mission Statement
The importance of a Mission Statement
151

the impact of its environment
THE ORGANIZATONS MISSION
Examples of Mission and Vision Statements

THE MISSION STATEMENT OF ASDA Superstore.
152

THE MISSION STATEMENT OF TESCO
153

THE MISSION STATEMENT OF Marks & Spencer
154
Source: Strategic Marketing Management by R.M.S Wilson

The Mission Statement of NPOWER
155

The Mission Statement of British Gas
156

THE MISSION STATEMENT OF DEBENHAMS:
We will be the leading countrywide speciality store, the first
choice for fashion on card which employees
157
1: The nature of the organization

and the impact of its environment
The Mission Statement of Sainsbury
To discharge the responsibility as leaders in our trade by acting

with complete integrity, by carrying out our work to the highest
standards, and by contributing to the public good and to the
quality of life in the community.
To provide unrivalled value to our customers in the quality of the
goods we sell, in the competitiveness of our prices and in the
range of choice we offer.
In our stores, to achieve the highest standards of cleanliness
and hygiene, efficiency of operation, convenience and customer
service, and thereby create as attractive and friendly a shopping
environment as possible.
To offer our staff outstanding opportunities in terms of personal
career development and in remuneration relative to other
companies in the same market, practising always a concern for
the welfare of every individual.
To generate sufficient profit to finance continual improvement
and growth of the business whilst providing out shareholders
with an excellent return on their investment.
1.
2.
3.
4.
5.
158

THE MISSION STATEMENT OF BT:
To provide world class telecommunications and information products

and services
To develop and exploit our networks at home and overseas so that

we can
1.
Meet the requirements of our customers
2.
Sustain growth in the earnings of the group on behalf of our
shareholders
3.
Make a fitting contribution to the community in which we conduct our
business.
BTS CORE VALUES
We put our customers first
We are professional
We respect each other
We work as one team
We are committed to continuous improvement.
159

The Mission Statement of Argos
160
Learning objectives what you

should know by the end of the lesson
161
The nature of the organization and the impact of its

environment
The micro-environment
Analysis of the competitive environment
The macro-environment
The demographic, social and cultural environment
The economic and international environment
The political and legislative environment
The technical/information environments
Environmental information systems-coping with

the challenge of environmental change.
THE MARKETING ENVIRONMENT

MACRO ENVIRONMENT
Political
Government policies
Rules and regulations
Laws, taxes, political stability/instability,regime in government
MICRO ENVIRONMENT
Company
Management/BOD
Shareholders
Employees
Customers
Financial Intermediaries
Social
THE COMPANY
Banks
Economic
Credit Institutions
AND ITS
Demographic
Social Class
Inflation,
Building Societies
ENVIRONMENT
Reference groups
Employment,
Insurance companies
GDP,GNP,NI,
Local community Health
Marketing Intermediaries
Education
Unemployment,
Pressure
groups
Communication
wages,
Suppliers
Culture
Interest rates,
Distributors/transporters
Tax,
Think-tank consultancy
deflation,
Media
Ecological
trade cycle,
Law firm
Retailers
exchange
Polusion
Wholesalers
rates,
Climate change
Energy prices
Scarcity of oil
Agents/brokers
economic growth
Per Capita Income,
competitors
Technological
Internet, digital, ATM
EPSS, mobile, SMS,
162
Natural disasters
Recycling
Legal
Polusion law ,Alcohol law,consumer protection law
Employment law, product safety law
Human rights law, Business law
THE BUSINESS ENVIRONMENT PEST FACTORS
Political
Government policies
Rules and regulations
Laws, taxes, political stability/instability,regime in government
Economic
Inflation,
Employment,
GDP,GNP,NI,
Social
Unemployment,
wages,
Interest rates,
Tax,
deflation,
trade cycle,
exchange
rates,
Energy prices
economic growth
Per Capita Income,
competitors
Technological
Internet, digital, ATM
APSS, mobile, SMS,
163
ENVIRONMENTAL
FACTORS
Demographic
Social Class
Reference groups
Health
Education
Communication
Culture
Ecological
Polusion
Climate change
Scarcity of oil
Natural disasters
Legal
Recycling
Polusion law ,Alcohol law,consumer protection law

Employment law, product safety law
Human rights law, Business law
ANALYSIS OF THE MACRO ENVIRONMENT

PESTEL FACTORS
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICAL
ECOLOGICAL
LEGAL
164
ANALYSIS OF THE MACRO ENVIRONMEN
POLITICAL
The
political environment
Political uncertainties/instability
International political environment
165
ECONOMIC
Employment/unemployment
Inflation/deflation
Government
economic objectives
NI,GDP,&GNP
The Business Cycle
BOP & BOT
Trade & exchange rate policy
The impact of international trade
Interest rate
Prices
Competition
Demand
166
SOCIAL
Demographic:
This is the study of the composition of a countrys population in
terms of age, gender, sex, occupation.
Population
Age composition
Gender composition
Marital status and household structure
Income
Migration: Immigration & Emigration (Net migration)
Birth rate & Death rate
Fertility rate.
Trends in population
The dependency ratio
World population
Aggregate population
Population structure
Regional distribution of population
Ethnic groups
Occupational structure
The workforce in employment: some important trends
The changing role of women in work and society
167
Demographic studies and

marketing
POPULATION:
WORLD POPULATION
168
Source:
http://esa.un.org/unpp/
distribution
Europe and the New Independent
States
Source
169
http://www.overpopulation.com/faq/basic_information/age_distribution/europe.html
World population:
6000,000,000
The most highly populated countries in the world:
Country:
Population:
Density
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
CHINA
INDIA
UNITED STATES OF AMERICA
INDONESIA
BRAZIL
PAKISTAN
BANGLADESH
RUSSIA
NIGERIA
JAPAN
1,306,313,812
1,103,600,000
293,655,404
241,973,879
186,112,794
162,419,946
144,319,628
143,420,309
128,771,988
127,417,244
Source: http://en.wikipedia.org/wiki/World_population
http://en.wikipedia.org/wiki/Population
170
136
328
30
126
21
202
1,002
8
139
337
Gender composition:
171
MARITAL STATUS AND HOUSEHOLD

STRUCTURE
172
INCOME DISTRIBUTION
173
BIRTH RATE/ FERTILITY RATE
174
DEATH RATE
175
MIGRATION:
Immigration/Emigration
176
TRENDS IN POPULATION
177
REGIONAL DISTRIBUTION OF POPULATION
178
OCCUPATIONAL STRUCTURE:
179
SOCIAL
Social class
Culture
Reference groups
The family
Lifestyle
Education
Health
Communication
180

TECHNOLOGICAL
181

ECOLOGICAL
182

LEGAL
Legislation imposed by governments
The legal framework
Role and objective of legislation
Fair trading and the consumer
Protecting the consumer
Implications to the marketer.
183
INTERNATIONAL MARKETING:
1.
2.
3.
4.
184
What is international marketing

International marketing environment
International market entry strategy
International marketing mix
INTERNATIONAL MARKETING
DIFFERENCES IN CULTURE
What is culture
Culture is sum total of belief, rituals, custom, tradition,

norms etc;
that characterizes a particular group of people, society, or
organization.
The sum total of learned beliefs, values and custom that serve to direct
customer behaviour
in a particular country market
Components of culture.
185
Differences in culture:
1.
2.
3.
4.
5.
6.
186
There exist cultural differences in different

continents across the world with respect to the
following:
Language
Aesthetics
Norms
Values
Rituals
Custom and tradition
CHAPTER 4: INTERNATIONAL TRADE

THEORY
Demand and supply
Tariffs
Quotas
BOP
TOT
IMPORTS & EXPORTS
INTERNATIONAL CURRENCIES
TRADE RESTRICTIONS
BORDER CONTROL
EXCHANGE RATE
INTEREST RATE
NATIONAL INCOME.
BUDGET
187
ENVIRONMENTAL INFLUENCES ON
INTERNATIONAL MARKETING
Socio/Cultural
Language
Religion
Aesthetics
Values and attributes
Social organisation
Material culture
Health
Communication/transport.
Economic
Developed economies
Emerging economies
Less developed economies
Currency movements
188
Legal
Local domestic laws
International law
Home domestic law
Environmental
Influences on
International
Marketing
Ecological
Political
Operational restrictions
Discriminatory restrictions
Physical actions
Technological
Satellite Communications
ISDN
Internet
WWW
The Electronic
Superhighway
INTERNATIONAL MARKET ENTRY

STRATEGY
189
Content of PART C: Marketing in

practice
An overview of the marketing system

The context of marketing
The integrated marketing mix: product
The marketing mix: price
The marketing mix: place
The marketing mix: promotion
The integrated marketing mix service extension (people,
physical evidence and process)
The management of marketing information
Skills for the marketer
Bringing it all together: the marketing plan
Source:
190 CIM course book
THE LEARNING OBJECTIVES IN Marketing

in practice
Collect relevant data from a variety of secondary information

sources
Analyse and interpret written, visual and graphical data
Devise appropriate visual and graphical means to present

marketing data
Make recommendations based on information obtained from

multiple sources
Evaluate and select media and promotional activities appropriate

to the organisation's objectives and status and to its marketing
context
Calculate and justify budgets for marketing mix decisions
Develop relationships inside and outside the organisation
Apply planning techniques to a range of marketing tasks and

activities
Undertake basic marketing activities and within an agreed plan

and monitor and report on progress
Gather information for, and evaluate marketing results against,

financial and other criteria
191
Content of PART D Customer

Communication
The importance of the Customer

Buying behaviour
The communication process
The communication mix
The role of information communication technology in
customer communications
Effective communications
Communicating in meetings, interviews and
negotiations
Using statistical data and visual information
Written communication formats.
192
Source: CIM course

book
LEARNING OBJECTIVES
OF
Customer
Communication
Recognise organisations as open systems and explain the

importance of relationships between the organisation and its
suppliers, intermediaries, customers and other key stakeholders in a
changing environment
Explain why it is important for marketers to understand consumer

and industrial buying behaviour for marketing decisions
Explain the elements of the promotional mix and its fit with the
marketing planning process
Explain the advantages and disadvantages of the range of

communications tools available to an organisation
Develop internal and external communications using appropriate

tools to suit a variety of target audiences and using an
understanding of customer behaviour and customer information
Select appropriate verbal and non-verbal communications with

people inside and outside the organisation
Demonstrate the importance of customers and customer service and

apply customer care principles to create positive relationships with
customers in a variety of contexts
193
Content of PART D Customer Communication
Unit 1: The importance of the Customer

Who are customers?
Why are customers important?
Why do people communicate in business?
So who are your customers?
Who are an organizations customers?
Internal Customers
Internal Marketing
Improving customer communications.
194
Why do people communicate in Business:

1.
2.
3.
4.
5.
6.
7.
8.
9.
195
To build relationships internally and externally with individuals and

groups
To give specific instructions to others on a range of business matters,
both procedural and strategic.
To disseminate information on a range of corporate matters such as the
mission statement, policy issues or, in the case of the external market,
on price changes or new promotional initiatives
To share ideas and values on work-related issues or procedural tasks
To negotiate matters of policy as a joint venture or merger
To discuss or negotiate on personal or professional matters such as
remuneration and other higher and lower level hygiene factors
To motivate, interest and stimulate employees for commitment and
loyalty to the firm
To create an awareness of the organization, its products or services and
persuade the external market, for example, to make a purchase
decision or to request further information
To receive feedback in order to monitor whether the communication was
understood and the reaction of the recipient to the message.
UNIT 2: BUYING BEHAVIOUR

The purpose of communication
Communications and marketing
Relating customer behaviour to external communications
Communication objectives and buying process
How the buying process relates to communications
Understanding organizational buying behaviour
Bibliography.
196
UNIT 3: THE COMMUNICATION PROCESS:

The purpose of communication
The communication chain
Barriers to successful communication
Avoiding barriers to communication
Effective communicators
Planning the business message
How the PASS framework can help in planning messages.

197
UNIT 4: THE COMMUNICATIONS MIX:

The communications mix or promotions mix
Integrated Marketing Communications
Above-the-line promotional activity
Below-the-line promotional activity
Corporate image
Brand image
Logos
Packaging
Point of sale display and Merchandising.
Sales promotion
Exhibition
Sponsorship
Public relations
Direct Marketing
Evaluating the effect pf advertising
The role of the brief.

198
Above-the-line communication methods:
Advertisement
Definition: This is any paid form of non-personal presentation and promotion of ideas, goods or
services by
an identified sponsor
Advertisement can be done through the following means: Above-the-line advertisement.
Radio
Television
Newspaper: Local, national and international newspapers; E.G The times, financial times, daily
mirrow, express and star and the sun.
Internet
Magazine
Outdoor
Cinema
199 Philip Kotler(Principles of Marketing), CIM course book.
Sources:

ADVERTISMENT:
This is any paid form of non-personal presentation and promotion of ideas, goods or
services by
an identified sponsor
200
Sources: Philip Kotler(Principles of Marketing-4th European Edition) and CIM course book.
ADVERTISMENT:
Main Advertising Decisions
Advertising strategy
Objectives
setting
Communicati
on
Objectives
Budget decisions
Affordable approach
Percentage of sales
Competitive parity
Message
decision
Media
decision
Reach, frequency,
Message strategy Impact
Message execution Main media types
Specific media
vehicles
Objective and task
Sales
Objectives
201
Media timing
Campaign
evaluation
Communication
Impact
Sales impact
ADVERTISMENT:
Important decisions in advertising:
Setting advertising objectives:
The first step is to set advertising objectives.

Advertising objective is a specific communication task to be accomplished
with a specific target audience during a specific period of time.
202
ADVERTISMENT:
Possible Advertising Objectives:
Informative advertising
Telling
the market about a new product

services
Suggesting new uses for a product
impressions
Informing the market of a price change
Explaining how the product works
Persuasive advertising
Building
brand preference
switching to your brand
Changing customer perceptions of product attributes
Persuading customers to purchase now
Persuading customer to receive a sales call
Encouraging
Reminder advertising
Reminding
203
customers that the product may be needed in the near future

Reminding customers where to buy the product
Keeping the product in customers minds during off-seasons
Maintaining top-of-mind product awareness.
Describing available
Correcting false
Reducing customers fears
Building a company image.
ADVERTISMENT:
Setting the advertising budget
After determining its objectives, the company
next sets its advertising budget for each
product.
Four methods for determining promotion
budget
204
ADVERTISMENT:
Specific factors that should be

considered when setting the
advertising budget:
1.
Stage in the product life-cycle:

Market share
Competition and Clutter
Advertising frequency
Product differentiation
2.
3.
4.
5.
205
ADVERTISMENT:
Developing Advertising Strategy:
Creating the advertising message:

No matter how big the budget, advertising can
succeed
only if commercials gain attention and
communicate
well.
206
ADVERTISMENT:
The changing message environment
207
ADVERTISMENT:
Message strategy:
208
ADVERTISMENT:
Message Execution
Any message can be presented in different
execution styles such as the following:
Slice of life
Lifestyle
Fantasy
Mood or image
Musical
Personality symbol
Technical expertise
Scientific evidence.
Testimonial evidence or endorsement
209
ADVERTISMENT:
Selecting advertising media
Deciding on reach, frequency and impact
Choosing among chief media types
210
ADVERTISMENT:
Choosing among chief media
types
Medium
Advantages
Limitations
Newspape
rs
Flexibility;timeliness; local market

coverage;broad acceptance; high
believability
Short life; poor reproduction quality; small passalong audience.
Television
Good mass-market coverage; low

cost per exposure; combines
sight, sound and motion;
appealing to the senses.
High absolute cost; high clutter; fleeting exposure;

less audience selectivity.
Radio
Good local acceptance; high

geographic and demographic
selectivity; low cost.
Audio presentation only; low attention ( the halfheard medium); fleeting exposure; fragmented
audience
Magazines
High geographic and

demographic selectivity; credibility
and prestige; high-quality
reproduction; long life; good passalong readership.
Long ad purchase lead time; high cost; some waste

circulation; no guarantee of position.
Direct mail
High audience selectivity;

flexibility; no ad competition within
the same medium; allows
personalization.
Relatively high cost per exposure;

Junk mail image.
Outdoor
Flexibility; high repeat exposure;

low cost; low message
competition; good positional
selectivity.
No audience selectivity; creative limitations.
211
ADVERTISMENT:
Selecting Specific Media Vehicles
Deciding on Media timing
212
ADVERTISMENT:
EVALUATING ADVERTISING:
213
Repeat
Trial
Intention
Preference
Attitude
Aware
214
Unaware
ADVERTISMENT:
Other advertising considerations:
Organizing for advertising
215
ADVERTISMENT:
International advertising decisions
Standardisation or differentiation
Centralisation and decentralisation
216
ADVERTISMENT:
Worldwide advertising media:
217
ADVERTISMENT:
Media planning, buying and costs
International advertising regulations
218
UNIT 4: THE COMMUNICATIONS MIX

Below the line communication:
Corporate image
Brand image
Logos
Packaging
Point of sale display and Merchandising.
Sales promotion
Trade fairs and Exhibition
Sponsorship
Public relations
Direct Marketing
Direct Mail
Evaluating the effect of advertising
Source: Priciples of Marketing by Philip Kotler and CIM course book.
219
UNIT 4: THE COMMUNICATIONS MIX

SALES PROMOTION:
It is a short-term incentive to encourage purchase or sales of a product or service.
It consists of short-term incentives, in addition to the basic benefits offered by the
product or service, to encourage the purchase or sale of a product or service.
Whereas advertising offers reasons to buy a product or service, sales promotion
offers reasons that would achieve immediate sales.
Sales promotion seeks to motivate the customer to buy now.
Sales promotion includes a wide variety of promotion tools designed to stimulate
earlier or stronger market response.
These tools are used by many organizations-manufacturers, distributors, retailers,
trade associations and non-profit institutions-and may be targeted towards the
consumer or final buyer, business customers, the trade or retailer and the companys
sales force.
Consumer promotion include money-off, coupons, premiums, contests and others.
Trade promotion range from special discounts, free goods and loyalty bonuses to
training.
Business promotion include many of the same tools used for consumer or trade
promotions such as conventions and trade shows, as well as sales contests.
Sales force promotions include bonuses, commissions, free gifts and competitions.
220
SALES PROMOTION:
Consumer promotion
Sales promotion designed to stimulate consumer purchasing, including

samples, coupons, rebates, price-offs, premiums, patronage rewards,
displays, and contests and sweepstakes.
Trade (or retailer promotion)
Sales promotion designed to gain reseller support and to improve reseller

selling efforts, including discounts, allowances, free goods, cooperative
advertising, push money, and conventions and trade shows.
Business promotion
Sales promotion designed to generate business leads, stimulate purchase,

reward business customers and motivate the salesforce.
Sales force promotion
Sales promotion designed to motivate the sales force and make sales force
selling efforts more effective, including bonuses, contests and sales rallies.
221
SALES PROMOTION
MAJOR SALES PROMOTION TOOLS:
CONSUMER PROMOTION TOOLS:
Samples: Offers to consumers of a trial amount of a product
Coupons: Certificates that give buyers a saving when they purchase a
product
Cash refund offers (rebates): Offers to refund part of the purchase price of a
product to consumers who send a proof of purchase to the manufacturer
Price packs: Reduced prices that are marked by the producer directly on the
label or package
Premiums: Goods offered either free or at low cost as an incentive to buy a
product.
Advertising specialities: Useful articles imprinted with an advertisers name,
given as gifts to consumers.
Patronage rewards: Cash or other awards for the regular use of a certain
companys products or services.
Point-of-purchase (POP) promotions: Displays and demonstrations that take
place at the point of purchase or sale.
Competitions, sweepstakes, lotteries and games: promotions that offer
customers the chance to win something cash, goods or trips by luck or
extra effort.
1.
2.
3.
4.
5.
6.
7.
8.
9.
222
STAKEHOLDERS
Staff
Govern
ment
Owners
Custo
mers
Supplier
Distribu
tors
Financial
Institu
tions
Community
Competitors
223
Pressure
groups
Stakehol
ders
Manage
ment
Media
SALES PROMOTION
TRADE PROMOTION TOOLS:
DISCOUNT: A straight reduction in price on

purchases during a stated period of time
ALLOWANCE: (1)Reduction in price on
damaged goods.
(2) Promotional money paid by manufacturers to
retailers in return for an agreement to feature
the manufacturers product in some way.
224
SALES PROMOTION
BUSINESS PROMOTION TOOLS

1. Conventions and trade shows
2. Sales contests
225
SALES PROMOTION
RAPID GROWTH OF SALES PROMOTION
226
SALES PROMOTION
SETTING SALES PROMOTION
OBJECTIVES
227
SALES PROMOTION-consumer market

MAJOR SALES PROMOTION TOOLS
Samples
Offers to consumers of a trial amount a product
Coupons
Certificates that give a saving when they purchase a product
Cash refund offers (rebates)

Offers to refund part of the purchase price of the purchase price of a product to consumers
who send a proof of purchase to the manufacturer
Price packs
Reduced prices that are marked by the producer directly on the label or package
Premiums
Goods offered either free or at low cost as an incentive to buy a product
Advertising specialties
Useful articles imprinted with an advertisers name, given as gifts to consumers.
Patronage rewards
Cash or other awards for the regular use of a certain companys products or services.
Point-of-purchase (POP) promotions

Displays and demonstrations that take place at the point of purchase or sale
Competitions, Sweepstakes, lotteries and games

Promotions that offer customers the chance to win something cash, goods or trips by luck or
extra effort.
228
PUBLIC RELATIONS
1.This is a planned, sustained and deliberate effort by an
organization
to maintain a good relationship with the public.
2.Public relations means building good relations with the
companys
various publics by obtaining favorable Publicity, building up a good
corporate image, handling or heading off unfavourable rumours,
Stories and events. Major PR tools include press relations,
product
publicity, corporate communications, lobbying and counselling:
229
PUBLIC RELATIONS
Public relations is another mass-promotion technique. This concerns building good
relations with the
companys various publics by obtaining favourable publicity, building up a good corporate
image' and
handling or heading off unfavourable rumours, stories and events. Public relations (PR)
departments
Perform any or all of the following functions:
Press relations or press agency: Creating and placing newsworthy information in the
news media to attract attention to a person, product or service.
Product publicity: Publicising specific products
Public affairs: Building and maintaining local, national and international relations.
Lobbying: Building and maintaining relations with legislators and government officials
to influence legislation and regulation.
Investor relations: Maintaining relationships with shareholders and others in the
financial community.
Development: Public relations with donors or members of non-profit organisations to
gain financial or volunteer support.
1.
2.
3.
4.
5.
6.
230
PUBLIC RELATIONS
Public relations is used to promote products, people, places, ideas, activities,
organisations and even nations.
Trade associations have used public relations to rebuild interest in declining
commodities. Nations use public relations to attract more tourists, foreign
investment
and international support.
The government uses public relations to sensitize the public about the
consumption
of dangerous products such as cigarettes and alcohol.
The government also uses public relations to make the public to protect them
selves
from diseases e.g. AIDS. Steal in this light, the government uses PR to educate
the
public about precautionary measures to take in so far as Bird Flu Virus is
concerned.
Pressure groups such as the Food Standards Agency also uses the PR to
inform customers about those harmful products which can damage their
health.
231
PUBLIC RELATIONS
MAJOR PUBLIC RELATIONS TOOLS:
PR professionals use several tools. One essential tool is news . PR professionals find or create favourable news
about the company and its products or people. Sometimes news stories occur naturally. At other times, the PR person can
suggest events or activities that would create news.
Speeches also create product and company publicity. Increasingly, company executives must field questions
from the media or give talks at trade associations or sales meetings. These events can either build or hurt the
companys image.
Another common PR tool is special news, ranging from news conferences, press tours, grand openings and
firework displays to laser shows, hot-air balloon releases, multimedia presentations and star-studded
spectaculars, or educational programmes designed to reach and interest target publics.
Public relations people also prepare written material to reach and influence their target markets. These materials
include annual reports, brochures, articles and company newsletter and magazines.
Audiovisual materials such as films, slide-and-sound programmes and video and audio cassettes, are being used
increasingly as communication tools.
Corporate-identity materials also help create a corporate identity that the public immediately recognises. Logos,
stationery, brochures, signs, business forms, business cards, buildings, uniforms and even company cars and
trucks make effective marketing tools when they are attractive, distinctive and memorable.
Finally, companies might improve goodwill by contributing money and time to public service activities: campaigns
to raise funds for worthy causes- for example, to fight illiteracy, AIDS, Bird Flu, Tuberculosis, cancer; support the
work of a charity, or assist the aged and handicapped- help to raise public recognition.
Sponsorship is any vehicle through which corporations gain public relations exposure. Corporate sponsorships
have become an important promotional tool for companies looking to lift their brand image, or introduce new
product lines or services. Worldwide spending on sponsorships totalled $24bn in 2002, an annual increase of 3.4
percent according to a Chicago based research company (IEG).
232
PUBLIC RELATIONS
MAIN PUBLIC RELATIONS DECISIONS
233
PUBLIC RELATIONS
SETTING PUBLIC RELATIONS OBJECTIVES
234
PUBLIC RELATIONS
CHOOSING PUBLIC RELATIONS MESSAGES

AND VEHICLES
235
PUBLIC RELATIONS
IMPLEMENTING THE PUBLIC RELATIONS
PLAN
236
PUBLIC RELATIONS
EVALUATING PUBLIC RELATION RESULTS
237

DIRECT MARKETING
It is direct communications with carefully targeted
individual customers to obtain an immediate
response.
238
DIRECT MARKETING
THE BENEFITS OF DIRECT MARKETING TO THE
CONSUMER
Direct marketing benefits buyers in many ways:
1.
First it is convenient: from the comfort of their homes or offices, customers can browse mail
catalogues or sellers websites at any time of the day or night. Buying is easy and private. Customer
confront fewer buying hassles and do not have to face salespeople or open themselves up to persuasion and
emotional pitches. Business Customers can learn about available products and services without waiting for
and tying up time with sales people.
2. Direct Marketing often gives shoppers greater product access and selection: For example, the worlds the
limit for web. Cyberstores such as Amazon, CDNow and others can offer an almost unlimited selection
compared to the more meagre assortments of counterparts in the bricks- and mortar world. Beyond a
broader selection of sellers and products, online and Internet channels also give buyers access to a wealth of
comparative information, information about companies, products and competitors, at home and around the
globe. Good websites often provide more information in more useful forms than even the most solicitous
salesclerk can. Amazon. COM and CDNow, for example, offer best-seller lists and reviews:
3. Finally, direct marketing- especially online buying is interactive and immediate. Customers can often interact
with the sellers by phone or on the sellers website to create exactly the configuration of information, products or
services they desire, then order them on the spot. Furthermore, the internet and other forms of direct marketing
give
customers a greater measure and sense of control. For example, a rising proportion of car buyers shop online,
arming themselves with information about car models and dealer costs before showing up at a dealership.
239
DIRECT MARKETING
THE BENEFITS OF DIRECT MARKETING TO
THE SELLER:
Direct marketing also yields many benefits to sellers:
1.
Direct marketing is a powerful tool for customer relationship building:
2.
Direct marketing gives sellers access to buyers that they could not reach
through other channels. For example, the internet provides access to global
markets that might otherwise be out of reach.
3.
Finally, direct marketing can offer sellers a low-cost, fast and efficient
alternative for reaching their markets. For example, direct marketing has
grown rapidly in B2B marketing, partly in response to the ever-increasing
costs of marketing through the sales force.
240
DIRECT MARKETING
FORMS OF DIERCT MARKETING
Telephone marketing
Direct-mail marketing
Catalogue marketing
Direct-response television marketing
Integrated direct marketing
241

UNIT 4: THE COMMUNICATIONS MIX: Sources: Philip Kotler(Priciples of Marketing
Below the line

advert
Corporate image
Brand image
Logos
Packaging
POSDM
Sales promotion
Exhibitions
Sponsorship
Public relations
Direct
242 marketing
Advantages
Disadvantages

Above the line advert
Advantages
Disadvantages
Television: Terrestrial, satellite,

cable and interactive: Local,
national and International.
Can
provide movement/colour/sound
and emotion.
It is an intrusive medium.
Viewers can identify with situations in
adverts.
Mass, regional or specific coverage
available.
Short
Radio: Local, national and

international.
Airtime
is not very expensive.

Offers sound effects and emotion.
Versatile in location (Portable)
It is intrusive.
Non-visual
High
No
Press Advertising: It covers all

printed papers; Newspapers,
Magazines and directories. It may
be national, regional, specialist,
trade or general publications.
243
circulation with good opportunity

to see(OTS).
Audience can be easily identified
Information can be saved and retrieved
Advantages can include response
coupons.
Relatively low costs involved(both
preparation and advert space)
time of adverts
restricts informationpassing.
Can be repetitive which will
result in boredom for viewer.
Costly/time consuming to
produce live adverts
Adverts shown when many
supply points are closed.
Adverts not retained for
review(consider home
videos)
Can be difficult for viewer
to respond(consider telemarketing)
Transmit
only non complex
info
Needs repetitive advert to
ensure coverage.
High risk of listener
intolerance due to repetition.
sound and Movement
If too many adverts, some
will be missed.
Magazines require long
lead time.
Printing only as good as
the staff involved.
Above the line advert
Cinema
Internet
Outdoor
244
Advantages
Disadvantages
UNIT 5: THE ROLE OF INFORMATION COMMUNICATION

TECHNOLOGY IN CUSTOMER RELATIONSHIPS:
How communications with customers is changing
The evolution of e-business
Using ICT to improve customer communications.
The Internet
Websites
Electronic Mail
Intranet
Extranet
E-Commerce
E-Business
E-Marketing
Signposts for the future
Telecommunications
Digital technology
245
UNIT 6: EFFECTIVE COMMUNICATIONS

Communication skills in marketing.
Verbal communication
Non-verbal communication
Using and interpreting non-verbal communication
Listening skills
Using the telephone
Planning telephone calls
Guidelines for making effective telephone calls
Guidelines for receiving calls
Conference calls
Presentation skills

246

UNIT 7: COMMUNICATING IN MEETINGS, INTERVIEWS AND NEGOTIATIONS:
Meetings
Reasons for meeting
Types of meetings.
Managing meetings
Constituting a formal meeting
Terminology of meetings
Meeting documents
The role of interview and negotiations
Purpose of interview
Types of interview
Planning the interviews
The interview process
Types of questions
Negotiations

247

UNIT 8 : USING STATISTICAL DATA AND VISUAL INFORMATION:
Why is data relevant to marketing?
Interpreting, selecting and summarizing information
Why use visual information?
How to present visual information?
Problems with distorting information.

248

UNIT 9: WRITTEN COMMUNICATION FORMATS
Why study communication formats?
Written communications skills in marketing
When to use letters
The layout of a business letter
Types of letters
Memoranda
E-MAIL
Notices
Reports
Articles.

249
WRITTEN COMMUNICATION FORMAT

(a)
Blocked layout
(b) Semi-blocked layout
Letter head
----------------------
Letterhead
------------------------
-----------------------
-------------------------
------------------------------------------------------------
------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
---------------------------------------------
250
Layouts for business letters: (a) blocked; (b) semi-blocked
-----------------------------------------------

LETTERHEAD
Letter references
Date
Inside address of recipient
Attention letter
Salutation
Subject heading
Body
Complimentary Close
Signature
Name
Position
Enclosure reference.
251
A template for a business letter
Midshire Bank Plc

High Street
Assington
Berkshire AS 1 6EL
Mr Joe Davies
17 Goldthorpe Way
Assbury
Berkshire AS2 4WQ
12 April 200X
Dear Mr Davies
At Midshire Bank we try to provide banking facilities of the highest quality in order to accurately meet our
customers needs. To do this ti is essential that we listen to what our customers hafe to say. Wwe would
like you to help uus by giving us your opiinion of Midshrie Banks services.
We are asking an independent market research company. TMI Limited to interview a number of customers
over the next few weeks. TMI Limited is a reputabnle company and your individual responses will be
completely confidential to them, according to the Market Research Societys Code of conduct.
They will be co ducting the interviews by telephone and so an interviewer may telephone you at some point
over the next few weeks.
Because TMI Limited will choose who to overview, you might not be contacted in this instance. Ift yhour are,
we wouold vallue your contribution and hope you wil be able to help use if asked.
Yours Sincerely
Signature
Charles Gowers
Branch Manager.
252
A sample customer letter

MAKE-IT BUILDING SUPPLIERS
Churchyard Grove
Pickwick
Lancashire LU1 5TF
Tel: 0123 668791
Our ref: HBJ/abc
October 1st 20XX
The Timber Merchants Ltd
Station Road
Ripon
Yorkshire YU8 TR3
For the attention of Deborah Jones
Dear Ms Jones,
Account Number: 5690 Special order under invoice 123
Further to our last order, would you supply the following additional items:
1
20 metres to extra hard-wearing timber for fencing.
5.95 per metre excl.VAT=119
2
5 litres of creosote liquid in natural colour.
2.75 per litres excl.VAT=13.75
3
24 litres of indoor wood varnish in antique pine.
1.44 per litres excl VAT= 34.56
Balance
167.31
VAT on items
29.28
Total balance
196.59
The balance should be started on the above invoice and charged to our existing account. I would appreciate
delivery by November 15th, latest.
Yours sincerely,
Sign
Harold Jenkins
Purchasing Manager.
253
An order letter.

ULTIMATE COMPUTER COMPANY Ltd
3 THE Gateway
Hounslow
Middlesex TW15 6TU
Tel: 0181 967 6345
TRJ/abc
October 1st 20XX
Mr Andrew Collins
Marketing Communications Consultants
The Nook
Twinkle Lane
Beaconsfield
BUCKS DU18 74R
Dear Mr Collins
Ref: Computers of the World Exhibition, London, 20XX
I had the pleasure of using your professional services in helping us to prepare and
present at the above last year.
We are now in the process of planning to exhibit our new product range again this year and would like to know
whether you would offer us your services. I am pleased to enclose our latest catalogue.
Please contact me at the end of next week to arrange for a meeting at our offices.
I look forward to hearing from you.
Yours sincerely,
Timothy R. Jones
Marketing Manager
Enc. Catalogue of product range X.
254
A letter of enquiry.

BEAUTY POTIONS LTD
2-6 Staines Road
Windsor
Berkshire BK7 9LE
Tel: 01753 576423
JK/abc
October 1st 20XX
Variety Fragrances
10 Harrow Road
Wembley
Middlesex 8TU 65R
For the attention of Mr Gardiner
Dear Mr Gardiner,
On September 5th 20XX, we received your order 1112, together with the invoice, 2224.
You will note that the first item on the invoice is listed as 50. Fragance Irresistible, but unfortunately we received 50. Fragrance
Uncontrollable. A copy of the invoice is attached.
Please be kind enough to collect the wrong items and have them replaced by 50. Fragrance Irresistible at the same time.
I look forward to receiving the correct order by November 1st 20XX.
Sincerely,
Joanna Kemp
Sales and Purchasing Manager
Enc. Copy of invoice 2224
255
A letter of complaint

CATERING WHOLESALERS LTD
35 Redruth Avenue
Tunbridge
Kent TN15 UCI
T el: 01932 57311
HB/abc
October 1st 20XX
Mr R.Anderson
The Manager
The Restaurant
76 Sevenoaks Road
Sevenoaks
KENT
Dear Mr Anderson,
Thank you very much for your recent application for credit. I am pleased to inform you that this has been
approved.
Our terms and conditions are as follows:
A credit limit of 2000 is available for your establishment.
Invoices must be settled within 15days of the date of issue, after which an interest charge of 5%
will be levied on outstanding balances.
Yours sincerely,
Harry Bains
Credit Manager.
256
A letter approving credit

FINANCE and INSURANCE Co
The Causeway
Newcastle upon Tyne NN4 65T
Tel: 0191 35202
SB/abc
October 1st 20XX
The Membership Secretary
Chartered Institute of Marketing
Moor Hall
Cookham
Berks
Dear Sir/Madam,
Re: Caroline Taylor
I am pleased to support Ms Taylors application for membership of the Chartered Institute
of Marketing
Ms Taylor has been in our employment for 6 years working in the area of Direct Marketing.
I understand that she passed all her CIM examinations and will be pleased to receive
further benefit as a member of the CIM
Yours faithfully,l
Sheila Brown
Marketing Director.
257
A letter of recommendation
MEMO
Medical Software Ltd
To: Carole Francis(Sales and Marketing Director)
From: Clare White (Marketing Manager)
Copy to: Hannah Craven (secretary)
Subject: Software 20XX Exhibition, Amsterdam, December 1st 3rd
Date: October 1st 20XX
We have 8 weeks before the exhibition takes place and need to finalize the
details
of the follow-up campaign, particularly the role of our sales force.
Further to our meeting last week, we also need to discuss the sales promotion
initiatives to push our products following the exhibition.
Please confirm that a meeting on October 5th at 3pm in my office will be
convenient.
258
A memo
kasongwe
F0000000
2f07b5c3
Send now
Message Composition
Quote
Attach
Address
Stop
Subject: Click here to enter the subject: exhibition material

Addressing
Attachments
Mail To: asonjude

yahoo.co.uk
Cc: Click here to enter carbon copy recipientsJohn.brown@apt.co.uk
Dear Jane
Thanks for the opportunity to quote for the exhibition material job. I have produced some costings and draft
timescale based on our requirements. Please see the attachment. Ring me if you have any queries. I amount of the
office until Monday but I will ring you then to see if you want me to proceed with the
work.
Regards
Alex Kelly
259
An example of an email message.
SAFETY FIRST!
A Special First-AID Course designed to give You basic introduction
will be available free To all employees on the following dates.
October 1st 5-6pm
November 1st5-6pm
December 1st 5-6pm
The number of places is limited to 20 per class so early booking is
advisable.
Contact: Jane Slater, ext. 123
A notice
260
REPORT
TO: Denise Wood, Marketing Manager
FROM: Amy Mills, Marketing Assistant
DATE: 6 December 2005
GO EASY- THE CASE FOR A WEBSITE & ON-LINE BOOKING SERVICE
1.Introduction
2.Findings
3. Conclusions
261
An example of a formal report
PRINTMAN PRINTING COMPANY

Report on Office Telecommunications Facilities
To: Mark Scrivens, Managing Director
From: Jo Goodwin, Sales and Marketing Manager
Date: 2 December 2005
Introduction
Findings
Arguments for
1.
Arguments against
1.
Conclusions.
Recommendation
262
An example of an informal report

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MARKETING PRESENTAT

PROFESSIONAL CERTIFICATE IN MARKET

VERVIEWING THE MARKETING PROCESS: MARKETING AS AN EXCHANGE PROCES

Costs and benefits

Consumer buying decision making process and its influencing factors:

Part A: Marketing Fundamentals

DISTRIBUTION CHANNEL IN CONSUMER MAREKT

DISTRIBUTION CHANNEL IN ORGANISATIONAL MARKET

development of marketing and marketing orientation

planning and budgeting

marketing mix: Product

marketing mix: new product development and portfolio

marketing mix: place

Source: CIM course book

MARKETING FUNDAMENTALS: LEARNING

The development of marketing and marketing

The marketing concept: marketing orientation.

Factors contributing to the need to be marketing oriented

Marketing as a form of competition: creating customer value

Building a marketing culture

Difficulties in managing the introduction of a customer-oriented culture

The tools of marketing management: the marketing mix

Overviewing the marketing process: marketing as an exchange process.

The changing role of marketing

Source: CIM course book

Marketing is the management process which

Consists of individual and organizational activities

Source: CIM course book

Marketing means working with markets to bring about

Source: CIM course book

The marketing concept focuses on customers.

Source: CIM course book

Source: CIM course book

Marketing Fundamentals The

The production concept concentrates on production

This is based on the notion that customers will choose

Source: CIM course book

Marketing OrientationPRODUCT ORIENTATION

Source: CIM course book

This is of course based on the notion that

Source: CIM course book

MARKETING HISTORY AND BUSINESS

Marketing fundamentals: Factors

Source: CIM course book

Marketing as a form of competition:

Marketers are recognizing that it is important to be

Source: CIM course book

Building a marketing culture

Thinking about customers through how we view and

ASSESSING THE EXTENT OF

Source: CIM course book

Marketing Fundamentals- DIFFICULTIES

Managers fail to realize or understand the true concept of

Source: CIM course book

Marketing is the function of management.

Source: CIM course book

To understand what is market segmentation

Source: CIM course book

It is the division of market in to groups of customers

Marketing fundamentals- MARKET SEGMENTATION

REASONS FOR SEGMENTING THE MARKET

Because of differences that exist among

Source: CIM course