MARKETING

INTRODUCTION
 Refers to a process or system of researching into identifying customer needs and applying
suitable prices,
product, place and promotion strategies in order to satisfy those needs profitably
MARKETING OBJECTIVES

OBJECTIVES

Enter into Increase

Market Customer Brand Increase
new website
share satisfaction identity sales
markets traffic
FACTORS INFLUENCING MARKETING OBJECTIVES

Internal External

Competitors Actions: Competitive markets

Financial position can add or limit the
may need more realistic targets or niche
marketing budget
marketing.

Human Resources: Objectives need to take Technological Change: Can change

into account the size and expertise of the objectives, tastes and market access e.g.
workforce Amazon.

Operational Issues: Targets are influenced by Customer’s Taste/Preference: Marketing

whether products can be provided at a low objectives should aim to predict and satisfy
cost/good quality. changes in preference.

Corporate Objectives: Marketing objectives

must be consistent with the corporate goals.
MARKETING OBJECTIVES VS. CORPORATE OBJECTIVES
DEMAND
• Demand is the quantity of a product that the consumers are
willing and able to buy at given price in a time period.

SUPPLY
• Supply is the quantity of a product that the firms are prepared to supply
at a given price in a time period.
DEMAND AND SUPPLY
TYPES OF MARKET

Producer/
Consumer Regional International
Industrial National market
Market Market Market
Market
• a market • deals with • populations in • the national • when sales
when products certain areas market descri are made
individuals bought by that share bes the supply across country
purchase businesses common and demand borders,
products or characteristics for all cultures,
services for and are securities that languages,
their own distinguishabl are traded in a and lifestyles
e from other country.
personal use
regions
 4 CONSUMER MARKETING (B2C) AND INDUSTRIAL
MARKETING (B2B)
 Consumer marketing (B2C): refers to the process of promoting and selling products or services
directly to individual consumers.
o convenience products – purchased frequently, often bought on impulse and sold to a large target market (e.g.
sweets, soft drinks)
o shopping products – usually require some planning and research by consumers before being purchased;
consumers do not buy these frequently (e.g. washing machines)
o specialty products – bought infrequently, often expensive and with strong brand loyalty (e.g. cars and designer
clothing).

 Industrial marketing (B2B): refers to the process of promoting and selling products or services to
other businesses, organizations, or institutions, rather than to individual consumers.
o materials and components – needed for production to take place (e.g. steel and electric motors for washing
machines)
o capital items – equipment, machinery and vehicles (e.g. lathes, IT systems and industrial buildings)
o services and supplies – business services and utilities (e.g. power supplies and IT support/maintenance).
PRODUCT AND CUSTOMER ORIENTATION
Product orientation Market orientation
An inward-looking approach in An outward-looking approach
which businesses aim to produce basing product decisions on
unique products without keeping consumer demand, as
customer needs in mind. established by market research

Flexible to
Saves market change in
research costs tastes and
fashion
Product is
High quality according to
products are customers
produced demands so
success is
Increased sales guaranteed.
due to Products to
innovative survive longer
product in the market.
 KEY TERMS
 Market size: The total level of sales of all producers within a market.
 Market growth: The percentage change in the total size of a market(volume or value) over a
period of time.
 Market share: The percentage of sales in the total market sold by one business.

 Market segmentation – who is the target market?

 Marketing mix:
o Product
o Pricing strategy
o Place
o Promotion
 A word of warning: It is not always easy to measure market growth or market share in an
unambiguous way. Different results may be obtained depending on whether the growth and
share rates are measured in volume or value terms.
 For example: If total sales in the market for jeans rose from 24 million pairs at an average
of $32 to 26 million pairs at an average price of $36, then market growth can be measured
in two ways:
o By volume – the market has risen from 24 to 26 million units, an increase of 8.33%.
o By value – the revenue has risen from $768 million to $936 million, an increase of 21.88%.
 Which of these two methods should be used to calculate the changing market share for any
one jeans manufacturer? The manufacturer will use the measure that reflects best on their
own position. It may, therefore, be difficult to compare firms’ changing market shares.
 NICHE MARKETING AND MASS MARKETING
 Niche marketing: Identifying and exploiting a Small firms may be - Businesses are
small segment of a larger market by developing
products to suit it.
able to survive and
thrive in markets
likely to enjoy
substantially lower
M
o Size of a niche market is often small.
dominated by larger
firms.
average costs of
production
A
o Market research is often necessary to establish
- Unexploited - Mass-market
S
customers’ special needs.
markets offer high
prices and profit
strategies run fewer
risks as any change
S
N margins by filling a in consumer buying
niche with exclusive habits could lead to
I products. a rapid decline in
 Mass marketing: Selling the same products to
the whole market with no attempt to target C sales due to a small
-Products can also number of
groups within it. H be used by large consumers. This is a
firms to create particular problem
o High sales levels allow for high levels of production. E status and image for small firms
o Low price is often a key element in selling the operating in only one
product. niche market with
one product.
MARKET SEGMENTATION

 Identifying different segments within a market

and targeting different products or services to
them.
 Markets are segmented on the basis of:
o Geographical
o Demographic
o Psychographic
GEOGRAPHIC SEGMENTATION

Region Size of
• By continent, metropolitan
 When the population is divided on the
country, state area
basis of geographies i.e country, state, • Segmented
village, city, postal code etc. according to
size of
population

Population Climate
density • According to
• Classified as weather
urban, rural patterns
etc common to
certain
geographic
regions
 DEMOGRAPHIC
 Segmenting the market on the basis of
age, gender, income, family size, social
class and ethnic background etc.
PSYCHOGRAPHIC

 Divides the population on the basis of:

o Lifestyle Different working styles; Ready made
meals. Health club timings.
o Social class
o Personality attitudes (attitudes – Early
adopters, vegetarians, brand conscious.)
o Interests
 Based on different expectations customers
have about what a product/service can do to
them
Benefits
• Enables identification of gaps
in market to be successfully Limitations
exploited. • High R&D and production costs may
• Generates greater customer
result from marketing multiple
satisfaction product variations
• Effective allocation of • Tailored promotions for each segment
marketing budget can increase costs and limit
• Price discrimination economies of scale
• Excessive specialization makes the
business vulnerable to changes in
consumer behavior
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
 Using marketing activities to establish
successful customer relationships so that
existing customer loyalty can be
maintained.
 Developing effective long term
relationships can be achieved by;
o Targeted marketing
o Customer service and support
o Providing as much information to the
customers as possible
o Using social media.
- Implementing customer feedback systems
requires IT investment and employee training
- CRM requires an existing customer base to
generate returns; otherwise, costs won't
translate to increased sales.
- Responding to individual customer feedback
can be costly, especially with special request

- CRM is cost-effective for businesses with

existing customers, as increased sales
typically outweigh its costs
- It costs less per customer than trying to
attract new customers.
- Loyal customers can provide free marketing
through word-of-mouth
MARKET RESEARCH

 This is the process of collecting, recording and analyzing data

about customers, competitors and the market.
 Market research can be used to measure customer reactions to:
o new products
o different price levels
o alternative forms of promotion
o new types of packaging
o online distribution.
 Predict
PURPOSE OF MARKET RESEARCH future
demand
changes

Explain
patterns in
Develop an
sales of
existing Purpos effective
marketing
products and
market
trends
e of mix

market
researc
h

Reduce the Identify

risks of new consumer
product characteristi
launches cs
METHODS OF MARKET RESEARCH

The collection of first-hand

data that is directly
related to firm’s needs.

Collection of data from second-

hand sources. Secondary
research data was
originally collected by another
organisation, often for a
different purpose.
SOURCES OF PRIMARY RESEARCH
ADVANTAGES AND DISADVANTAGES OF PRIMARY RESEARCH
SOURCES OF SECONDARY RESEARCH

Trade
organisations often Company reports
produce industry- and accounts (e.g.
specific Market research
Government competitors’ end
publications, for agencies
of year accounts).
example in the
• These are usually hotelare
andnot
car • These are often • These allow
• These
available for free retailing industries. very expensive. analysis of
always available
on the internet. • They are not competitor
for free.
• They may be • Membership of usually updated performance
several years out annually • Detailed,
the trade
of date (e.g. organisation may confidential
population census be needed to information is not
is not annual). obtain detailed available from
data. this source
ADVANTAGES AND DISADVANTAGES OF SECONDARY
RESEARCH
SAMPLING

 In market research, sampling means getting opinions from a number of people, chosen from
a specific group, in order to find out about the whole group.
 NEED FOR SAMPLING:
 It would be expensive and time-consuming to collect data from the whole population of a
market. Therefore, market researchers make extensive of sampling from which, through
careful design and analysis, marketers can draw information about their chosen market.
LIMITATIONS
o If not properly planned, the results obtained will not be reliable.
o Efficient sampling requires the services of qualified, skilled, and experienced person.
o If the sample size is the large proportion of the population size, it may require more time and money.
o In case we want to have information about each and every unit of the population, sampling is useless.
COST EFFECTIVENESS OF MARKET RESEARCH
The Internet and mobile phones have made it much easier to contact a very wide range of
potential consumers than the older methods of street surveys or home visits to interview
people directly. Even small and medium-sized businesses can use electronic means of
contacting large numbers of customers in a short time period. For example:
 Online marketing allows firms to conduct research projects for just a few thousand dollars,
taking advantage of pre-screened access panels with the results coming in within a few
days. Giving people the opportunity to respond conveniently by using their mobile phones
increases the chance that they will respond to a survey request - especially if it is on a
freephone number.
 The mobile (cell) phone method of surveys can use pre-recorded messages and questions
to which people respond by using numbers on the keypad or speaking the answers. These
results are then automatically presented and analyzed electronically.
ANALYSIS OF DATA

the mean
Averages: The
three most
Quantitative the mode
frequently
used are:
the median

tables

Interpretation Pie graphs(or

of information pie charts)
Qualitative: presented in
tables, charts
Line graphs
and graph

Bar charts
 Mean Median Mode
• The mean is the • The median is the • The mode is the
average or the middle item in a value that appears
most common range of ordered most frequently in
value in a data. The median a data set
collection of item may be
numbers. identified by using
the following
formula when the
number of values
is an odd number:
• median = number
 MEAN MEDIAN MODE
• Advantages • Advantages • Advantages
• Includes all of the data in • It is less influenced by • It is easily observed and no
calculation is necessary.
its calculation. extreme results than the • The result is a whole number and
• The most well-known mean. So, it is more easily understood
average; it is widely used appropriate than the mean
and easily understood when there are a few very
high or very low results. • Disadvantages
• It does not consider all of the data,
• Disadvantages • Disadvantages therefore it cannot be used for
• Affected by one or two • Calculation from grouped data further statistical analysis.
• There may be more than one
extreme results. is complicated.
modal result, which could cause
• An even number of results confusion
means the value is
approximated.
• It cannot be used for further
statistical analysis.
TABLES PIE CHARTS
allow easy reference to the data and can are used where data needs to be presented so
be used to present a mass of data in a that the proportions of different sets of data in
precise way. relation to the total are clearly shown
 LINE GRAPHS BAR GRAPHS
Are most commonly used for showing
changes in a variable, such as sales, over use bands of equal width but of
time in time series graphs. It allows easy varying length or height to represent
reference to trends in the data and shows relative values. They allow easy
up seasonal or other fluctuations clearly. comparison over time or between
different items.
 MARKETING MIX

 Definition: The marketing mix is made up of four inter-related decision – The 4Ps. These are;
o Product: Consumers require the right product. This might be an existing product, an update to an
existing product or a newly developed one.
o Price: Setting the right price is vital, as a price that's too low can affect customer’s trust in a product's
quality, while a price that's too high can put it out of reach for many consumer
o Promotion: must be effective, telling consumers about the product’s availability and convincing them, if
possible, that the brand is the one to choose
o Place: refers to how the product is distributed to the consumer through distribution channels
MARKETING MIX - PRODUCT

 The term “Product” includes consumer and industrial goods and services. Goods have a
physical existence such as washing machines and chocolate bars. Services have no
physical existence, but they satisfy customers needs in other ways such as hairdressing,
car repairs, child-minding, and banking.
 Brand: An identifying symbol, name, image or trademark that distinguishes a product from
its competitors.
 Intangible attributes of a product: Subjective opinions of customers about a product that cannot be
measured or compared easily. For example, What color of car and which engine size does a
customer like
 Tangible attributes of a product: Measurable features of a product that can easily be compared with
other product.
 Product: The end result of the production process sold on the market to satisfy a customer’s need.
NEW PRODUCT DEVELOPMENT
Changing
consumer
I tastes and
preferences
New product development
(NPD): refers to the process of M New
.

creating and launching a new

product, service, or feature that
P opportuniti
es for
Increasing
competition
meets the needs and wants of O growth

customers.
R
T
A Use of
Technologic
al
N excess
capacity
advanceme
nt.
C
Risk
E diversificati
on.
 PRODUCT DIFFERENTIATION AND UNIQUE SELLING POINT
(USP)

 Product Differentiation refers to the process of creating and highlighting the unique
features, benefits, and characteristics of a product or service that set it apart from
competitors and make it more attractive to customers
 Ways to achieve product differentiation:
o Advertising and marketing campaigns to make the product stand out e.g Nike
o Branding and packaging e.g Coca Cola
o After sale services and guarantees
o New design
 Unique Selling Point / Unique Selling Proposition: is a factor that differentiates a
product from its competitors, such as the lowest cost, the highest quality or the first-ever
product of its kind.
BENEFIT 1. Opportunities to charge higher prices due to exclusive and
unique features, design or customer service – higher prices should
S OF lead to higher profit margins

USP 2. Free publicity from media reporting on the USP of the product

3. Higher sales compared to undifferentiated products

4. Customers being more willing to be identified with the brand

because it is different.
PRODUCT PORTFOLIO ANALYSIS

 Analyzing the range of existing products of a business to help allocate resources effectively
between them.
 Knowing when to launch a new product or to update an existing one can give a business a
crucial advantage
 The two product portfolio analysis techniques to be considered are:
o Product life cycle
o Boston Matrix analysis.
 PRODUCT LIFE CYCLE

 It describes the stages a product goes through

from when it was first thought of until it finally is
removed from the market.
 Not all products reach this final stage. Some
continue to grow and others rise and fall.
 Introduction:
o Low sales
o High cost per customer
o Financial losses
 Growth:
o Increasing sales
o Cost per customer falls
o More number of competitors
 Maturity
o Peak sales
o High profits
o High competition
 Decline:
o Falling sales
o Profits fall
• Business withdraws the product or works on extension strategies.
LINK B/W PRODUCT LIFECYLE AND MARKETING MIX
DECISIONS
Product Price Promotion Place Product
life cycle (distribution)
stage
Introduction May be high High levels of Restricted outlets. Basic model
(skimming) or low informative If price skimming is with few
(penetration) advertising adopted, then high variations.
compared to class outlets.
competitors’ prices.

Growth If successful, an more advertising Expanding into new Product

Initial penetration and promotion to locations where improvements
pricing strategy create brand consumer demand and
could now lead loyalty is strongest, with a developments
to rising prices. growing number of
outlets to meet
increasing
customer needs.
 PRICE PROMOTION PLACE PRODUCT
Maturity As competitors persuasive Highest New models,
enter the market, adverting to stress geographical colours,
prices for the on the positive Spread including accessories as
product need to difference with new distribution part of extension
stay at competitive competitors’ channels. strategies.
levels products

Decline Lower prices Limited advertising Unprofitable Slowly withdraw

may be needed to and may just be outlets for the product from
sell off used to inform of product are certain markets
inventory lower eliminated and prepare to
prices. launch new
products.
EXTENSION STRATEGIES
 Uses of Product Life-Cycle
o Assists in planning marketing mix decisions
o Identifying how cash-flow might depend on the cycle
o Recognizing the need for a balanced product portfolio.

 Limitations:
o Uses past to predict the future.
o Every product has a different plc.
o Dependent on the quality of market research
BOSTON MATRIX ANALYSIS

The four categories can be described as

follows:

 Stars are high growth products competing in

markets where they are strong compared with
the competition. Often Stars need heavy
investment to sustain growth. Eventually
growth will slow and, assuming they keep their
market share, Stars will become Cash Cows
• Cash cows are low-growth products with a high
market share. These are mature, successful
products with relatively little need for
investment. They need to be managed for
continued profit - so that they continue to
generate the strong cash flows that the
company needs for its Stars
 Question marks are products with low market share operating in high growth markets.
This break-even, but they are rarely, if ever, worth investing in. Dogs suggests that they
have potential, but may need substantial investment to grow market share at the
expense of larger competitors. Management have to think hard about “Question Marks" -
which ones should they invest in? Which ones should they allow to fail or shrink?
 Unsurprisingly, the term “dogs" refers to products that have a low market share in
unattractive, low-growth markets. Dogs may generate enough cash to re usually sold or
closed.
MARKETING DECISIONS TAKEN FROM BOSTON MATRIX
ANALYSIS

 Building – supporting question mark products with additional advertising or further

distribution outlets. The finance for this could be obtained from the established cash cow
products.
 Holding – continuing support for star products so that they maintain their good market
position. Work may be needed to freshen the product in the eyes of the consumers so that
high sales growth can be sustained.
 Milking – taking the positive cash flow from established products and investing it in other
products in the portfolio.
 Divesting – identifying the worst-performing dogs and stopping the production and supply
of these products.
LIMITATIONS-BCG MATRIX

 Market growth rate is not an accurate measure of a market’s attractiveness to a business.

 Market share doesn’t actually predict how much cash a product generates. For example,
dogs can be profitable, and stars can have a high market share and high growth but be
operating in an extremely low margin industry and therefore never be particularly
profitable.
 It does not account for external factors, known as environmental factors. These factors
include such things as the emergence of new technologies or potential changes in tax laws.
To analyze external factors you can use a PEST Analysis.
MARKETING MIX - PRICE

 Price is the amount paid by customers for a product.

 Determining the pricing decisions
o Costs of production.
o Competitive conditions in the market.
o Competitor’s prices .
o Business and marketing objectives.
o Price elasticity of demand.
 Cost-based
methods of
pricing

Price
Competitiv
discriminati
e pricing
on

Pricing
Psychologic
metho Dynamic
al Pricing
ds pricing

Price Penetration
skimming pricing
PRICING METHODS
 Cost-based methods of pricing Companies assess their costs of producing or supplying each
unit, and then add an amount for profit to the calculated cost. Methods include:

1. Mark-up pricing: often used by retailers. They add a percentage mark-up to the unit cost of each
item bought from the producer or wholesaler
2. Cost-plus pricing is often used by manufacturers. The business calculates or estimates the total
cost per unit. The price is then this cost plus a fixed profit mark-up.
3. Contribution-cost (or marginal-cost) pricing: the business calculates a variable cost per unit of
the product. It then adds an extra amount, which is known as a contribution towards fixed costs and
profit. Fixed cost is not

 Price discrimination: This pricing method is often used in markets where it is possible to charge
different groups of consumers different prices for the same product.
1. An example of price discrimination would be bus or train companies charging lower prices for the
elderly than they do for other adults, for the same journey.
2. In order to charge price discrimination, business must make sure that:
3. different price elasticities of demand exists
4. There are different groups of consumers, where the business is able to avoid resale between the
groups and when it does not cost too much to keep the consumer groups separate.
• Dynamic pricing is a pricing strategy that involves adjusting the price of a product or service in real-
time based on changing market conditions, demand

• Penetration pricing is a pricing strategy where a business sets a low initial price for a new product
or service to
o attract a large number of customers
o Gain market share quickly
o Encourage word-of-mouth and build brand awareness

• Price skimming: is a pricing strategy where a company sets a high initial price for a new product or
service to maximize profits before competition increases. This pricing strategy also helps to create an
exclusive image for the new product.

• Promotional Pricing –Involves the use of a lower and normal price either to launch a new product or to
periodically boost sales of existing products.

• Psychological Pricing: setting a price at just below a whole number e.g $99,99, making
customers feel they are paying much less than $2.00, so they more likely to buy than if the
price were $2.00
Methods Advantages Disadvantages

Cost-plus pricing • The price set covers all • It does not take
costs of production. market/competitive
• Easy to calculate conditions into account
• suitable for businesses that • inflexible (e.g. there might
are price-makers due to be opportunities to increase
market dominance. price even higher).
• inaccurate for businesses
with several products

Contribution-cost • All variable costs are • Fixed costs may not be

(marginal-cost) covered by the price and a covered.
pricing contribution is made to • If prices vary too much, due
fixed costs. to the flexibility advantage,
• It is suitable for firms then regular customers
producing several products might be annoyed.
and fixed costs do not have
to be allocated.
Competitor pricing • This is almost essential for • The price set may not cover
firms with little market all the costs of production.
power – price takers. • The price may have to vary
• It can be flexible to reflect frequently due to changing
market and competitive market and competitive
conditions. conditions.
Price Discrimination • This uses price elasticity to • There are administrative
charge different prices to costs of having different
increase total revenue. pricing levels.
• Customers may switch to
lower priced markets.
• Consumers paying higher
prices may object and look
for alternatives.
MARKETING MIX – PROMOTION

Promotion is the marketing activity that communicates to customers in order to

change their attitudes or buying behaviour. It is an attempt to draw attention of the
customer to the product.

Factors
Types of
Objectives affecting Branding
promotion
promotion
MARKETING MIX – PROMOTION

 Objectives of Promotion
o To increase customer awareness
o To reach targeted audience which might be geographically dispersed
o To remind customers about the existing product and its quality
o To show the superiority of a product over its competitors
o To increase sales
o To give information about the product and the company
TYPES OF PROMOTION
TYPES OF PROMOTION

 Above-the-line promotion: A form of promotion that is

undertaken by a business by paying for communication
with consumers.
o Persuasive advertising - this tries to entice the customer to
buy the product by informing them of the product benefit
o Informative advertising - this gives the customer
information. Mostly done by the government (e.g. health
campaigns, new welfare benefits)
 Below-the-line promotion: Promotion that is not a
directly paid- for means of communication, but based
on short-term incentives to purchase.
ADVERTISING METHODS: WHICH ONE TO USE?

When deciding which type of advertising to use – known as an advertising medium – a business needs to consider
the following factors:
 Reach of the media – national or local; number of potential customers it could reach; how long before the
message is seen
 Nature of the product – the media needs to reflect the image of the product; a recruitment ad would be placed
in a trade magazine or newspaper but a lipstick ad would be shown on TV or women's magazines
 Position in product life cycle – launch stage will need different advertising from products undergoing
extension strategies
 Cost of medium & size of advertising budget – e.g. local newspaper advertising is cheaper than radio, which
in turn is cheaper than TV. But the business will also want to consider cost per head if reaching a larger audience
 Online or offline – there has been substantial growth in businesses that advertise online as they swap some
(sometimes all) of their advertising budgets to reach Internet users. The rapid growth of Google, YouTube,
Facebook and Twitter advertising revenues in this is an illustration of how powerful online advertising has
become, particularly through social media channels.
 PROMOTION MIX
 They include all of the marketing tools that can be used to communicate with consumers.
These include:

Advertising
promotion

Informative
Persuasive
advertising –
advertising –
adverts that
adverts trying
give
to create a
information
distinct image
about a
or brand
product to
identity for the
potential
product
purchasers.
 Advertising agencies: These are specialists that advise businesses on the most effective way to
promote products.
 Digital advertising
 Sales promotion methods: aims to achieve short-term increases in sales. They include:
o price offers – temporary reductions in price, such as 10% reduction for one week only
o loyalty reward programmes consumers collect points, air miles or credits for purchases and redeem
them for rewards
o money-off coupons – redeemed when the consumer buys the product
o point-of-sale displays in shops
o BOGOF
MARKETING MIX – PROMOTION

 Personal selling: A member of the sales staff communicates with one consumer with the
aim of selling the product and establishing a long-term relationship between company and
consumer.
 Branding: The strategy of differentiating products from those of competitors by creating an
identifiable image and clear expectations about a product. The aims of branding products
include:
o Aiding consumer recognition
o Making the product distinctive from competitors
o Giving the product an identity or personality that consumers can related to
DIRECT PROMOTION METHODS

These methods do not use a paid-for medium, unlike advertising

 Direct mail
 Direct mail is sent out by post.

 Telemarketing
 This includes all marketing activities conducted over the telephone (often from customer
call centres), including selling, market researching and promoting products.

 Personal selling
 With this method, a salesperson is employed to sell to each individual customer.
DIGITAL PROMOTIONAL METHODS

 Social media marketing: Social media is not just a marketing channel but also a way for people to keep in
touch with friends and family, read the latest news or follow topics they are interested in. There are many
social media platforms businesses can choose to use eg. Facebook, Twitter, Instagram and other platforms.
 Email marketing: It connects with customers within their own mailboxes. It is a well-established method of
increasing brand loyalty and selling more products to existing customers
 Online advertising: Displaying pop-up banners or advertisements on other websites aiming at the same
niche is the most common form of online advertising.
 Smartphone marketing
 Search engine optimization (SEO): Businesses that use e-commerce locate their websites on search
engines such as Google, Bing, Yahoo and Baidu (China). They need to use SEO to make sure that their
content appears among the first results of a search.
 Viral marketing: is a business strategy that uses existing social networks to promote a product mainly on
various social media platforms
MARKETING MIX – BRANDING
 THE ROLE OF PACKAGING IN PROMOTION
 The quality, design and colour of materials used in packaging can have an important
supportive role to play in the promotion of a product. Packaging can perform the following
functions:
give information –
depending on the
protect and contain the
product – to consumers
product, both during
about the contents,
transportation and in
ingredients, cooking
stores
instructions, assembly
instructions and so on

support the brand make the product

image of the product attractive and help the
created by promotional consumer to recognise
campaigns it.
MARKETING MIX - PLACE

 Channel of distribution: this refers to the

chain of intermediaries a product passes
through from producer to final consumer.
 CHANNELS OF DISTRIBUTION

METHODS ADVANTAGES DISADVANTAGES

Direct selling: • No mark-up or profit margin is taken • All storage and inventory costs have
• direct route from manufacturer to by intermediaries. to be paid by the producer.
consumer • The producer has complete control • There are no retail outlets so
• also referred to as the zero- over the marketing mix. consumers cannot see and try
intermediary channel. • It is quicker than other channels so before they buy.
may lead to fresher food products. • No after-sales service is offered by
• Direct contact with consumers shops.
offers useful market research. • expensive to deliver each item to
consumers.

Single-intermediary channel • Retailers incur the cost of holding • The intermediary takes a profit
• refers to a distribution or sales inventories. mark-up, making the product more
channel where a single intermediary • Retailers display the products and expensive to consumers.
(e.g., a distributor, wholesaler, or offer after-sales service. • Producers lose control over the
retailer) stands between the • Retailers should be in locations that marketing mix.
manufacturer and the end are convenient to consumers. • Producers pass on delivery costs to
consumer retailers.
METHOD ADVANTAGES DISADVANTAGES

Two-intermediary • Wholesalers hold the goods • Another intermediary takes a

Channel and buy in bulk from producers profit mark-up, making the
• manufacturer sells products to • It reduces producers’ inventory product more expensive to
wholesalers, who then sell them to costs. consumers.
retailers, and finally, the retailers • Wholesalers pay for the costs • Producers lose further control
sell them to consumers.
of transport to retailers. over the marketing mix.
• Wholesalers buy in large • It slows down the distribution
quantities and sell in small chain.
quantities
FACTORS INFLUENCING THE CHOICE OF DISTRIBUTION
CHANNEL

Unit Value of the Product:

• when the product is very costly it is best to use small distribution

channel.
Perishability

• A manufacturer should choose minimum or no middlemen as channel

of distribution for such an item or product which is of highly perishable
nature
Technical Nature

• If a product is of a technical nature, then it is better to supply it

directly to the consumer. This will help the user to know the
necessary technicalities of the product
MARKETING MIX - PLACE

 The internet and 4c’s: It is not an exaggeration to state that the Internet is transforming
the ways in which businesses market their products and manage relationships with
customers.
 Internet (online) marketing: refers to advertising and marketing activities that use the
internet, email and mobile communications to encourage direct sales via electronic
commerce.
 E-commerce: the buying and selling of goods and services by businesses and consumers
through an electronic medium.
ONLINE MARKETING (E-COMMERCE)
Benefits Limitations
It is relatively inexpensive if the cost is Some countries have low-speed internet
compared to the number of consumers connections and, in poorer countries, computer
reached. ownership is not widespread

Selling products on the internet involves lower The cost and unreliability of postal services in
fixed costs than traditional retail stores some countries may reduce the cost advantage
of internet selling.

Dynamic pricing – charging different prices to Websites must be kept up-to-date and user-friendly, and
different consumers – is easier good websites can be expensive
to develop

Businesses can keep accurate records on the Consumers cannot touch, smell, feel or try on
number of clicks or visitors, and quickly tangible goods before buying, which may limit
measure the success rate of different web their willingness to buy certain products
promotions. online.
MARKETING MIX - PLACE

 Marketing over the Internet can involve several different marketing functions which impact on the
4Cs:
 Selling of goods directly to consume (B2C) or other businesses(B2B) as order are placed online
through the company website or through an online retailer such as Amazon. This is known as e-
commerce (convenience).
 Online and mobile advertising by using the company’s own website, by placing a banner advert
or ‘pop-up’ on another firm’s website and by using social media. Adverts can be targeted at
potential consumers and can lead to viral marketing – see below (communication).
 Sales contacts are established by visitors to a site leaving their details and then the company
emails them or calls on them to attempt to make a sale (communication).
 Collecting market research data by encouraging visitors to the website to answer questions that
can provide important consumer data to aid the development of new products (consumer
solution).
 Dynamic pricing – using online data about consumers to charge different prices to different
consumers over the internet, often these prices are much lower than those charged by traditional
retailers (cost to costumer).
 Integrated marketing mix: The key marketing decisions complement each other and
work together to give customers a consistent message about the product.
 It is important for all the Ps of the marketing mix to be well integrated with each to make it
work
DIGITAL AND PHYSICAL DISTRIBUTION

 Digital distribution involves delivering digital products or services through online platforms, such as:
o Software downloads
o E-books and digital publications
o Music and video streaming
o Online courses and educational resources
 The processes involved in digital distribution include streaming and downloading of content.
 Physical Distribution: involves delivering tangible products through physical channels, such as:
o Retail stores
o Warehouses and logistics centers
o Transportation networks (e.g., trucks, ships, planes)
o Wholesale and distribution centers