Contents
Learning Guide
Rationale
Marketing is one of the terms in academia that does not have one commonly agreed upon definition. Even after
a better part of a century the debate continues. In a nutshell it
consists of the social and managerial processes by which products,
services and value are exchanged in order to fulfil individual's
or group's needs and wants. These processes include, but are not
limited to, advertising
Introduction
Learning
hours: 60
NQF
level 4: BTEC Higher National — H1
Description
of unit
This
unit aims to provide learners with an introduction to the fundamental
concepts and principles that underpin the marketing process. In
addition, it examines the role and practice of marketing within
the changing business environment. This broad-based unit will provide
all learners with a concise and contemporary overview of marketing,
and give them the knowledge and skills to underpin further study
in the specialist field of marketing.
Summary
of Learning Outcomes
To
achieve this unit a learner must:
1.
Investigate the concept and process of marketing
2.
Explore the concepts of segmentation, targeting and positioning
3.
Identify and analyse the individual elements of the extended
marketing mix
4.
Apply the extended marketing mix to different marketing segments
and contexts. |
 |
Today's
Videos
Teaching
and Learning Resources
Click
on titles
 |
Concept
and Process of Marketing
Definitions: alternative definitions including those of the Chartered Institute
of Marketing and the American Marketing Association, satisfying
customers’ needs and wants, value and satisfaction, exchange
relationships, the changing emphasis of marketing
Marketing
concept: evolution of marketing, business orientations,
societal issues and emergent philosophies, customer and competitor
orientation, efficiency and effectiveness, limitations of
the marketing concept
Marketing
process overview: marketing audit, integrated marketing,
environmental
analysis, SWOT analysis, marketing objectives, constraints,
options, plans to include target markets and marketing mix,
scope of marketing
Costs
and benefits: benefits of building customer satisfaction,
desired quality, service and customer care, relationship marketing,
customer retention, customer profitability, costs of too narrow
a marketing focus, total quality marketing |
Concept
and Process of Marketing. Marketing
concept. Marketing
process overview. Costs and
Benefits.
Tutorials
Readings
A Marketing
Plan is a written document that details the actions necessary
to achieve a specified marketing objective(s). It can be for a product or service,
a brand,
or a product
line. It can cover one year (referred to as an annual marketing
plan), or cover up to 5 (sometimes referred to as five) years.
A
marketing plan may be part of an overall business
plan. Solid marketing strategy is the foundation of a well-written
marketing plan. While a marketing plan contains a list of actions,
a marketing plan without a sound strategic foundation is of little
use.
Segmentation,
Targeting and Positioning
Macro-environment: environmental scanning, political, legal, economic, socio-cultural,
ecological and technological factors
Micro-environment: stakeholders (organisation's own employees, suppliers, customers,
intermediaries, owners, financiers, local residents, pressure
groups and competitors), direct and indirect competitors,
Porter’s competitive forces
Buyer
behaviour: dimensions of buyer behaviour, environmental
influences, personal variables — demographic, sociological,
psychological — motivation, perception and learning,
social factors, physiological stimuli, attitudes, other lifestyle
and lifecycle variables, consumer and organisational buying
Segmentation: process of market selection, macro and micro segmentation,
bases for segmenting markets ie geographic, demographic, psychographic
and behavioural; multivariable segmentation and typologies, benefits of segmentation,
evaluation of segments and targeting strategies, positioning, segmenting
industrial markets, size, value, standards, industrial classification
Tutorials
Readings
Market
Segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or
have similar needs. Because each segment is fairly homogeneous in their needs and attitudes,
they are likely to respond similarly to a given marketing
strategy. That is, they are likely to have similar feelings
and ideas about a marketing
mix comprised of a given product or service,
sold at a given price, distributed in a certain way, and promoted in a certain way.
Broadly,
markets can be divided according to a number of general criteria,
such as by industry or public versus private sector. Small
segments are often termed niche
markets or specialty
markets. However, all segments fall into either consumer
or industrial markets. Although it has similar objectives
and it overlaps with consumer markets in many ways, the process
of Industrial
market segmentation is quite different.
The
process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment).
The overall intent is to identify groups of similar customers
and potential customers; to prioritise the groups to address;
to understand their behaviour; and to respond with appropriate
marketing strategies that satisfy the different preferences
of each chosen segment.
Improved
segmentation can lead to significantly improved marketing
effectiveness. With the right segmentation, the right
lists can be purchased, advertising results can be improved
and customer satisfaction can be increased. |
 |
Competition is the act of striving against others for the purpose of achieving
dominance or attaining a goal. It is a term that is commonly used
in numerous fields, including business, ecology, economics, music, politics,
and sports.
Competition may be between two or more forces, organisms, systems,
individuals, or groups, depending on the context in which the term
is used.
Competition
may yield various results to the participants, including both intrinsic
and extrinsic rewards. Some results, such as resources or territory,
may be biologically motivated because they provide survival advantages.
Others, such as competition in business and politics, are learned
aspects of human culture. Additionally, extrinsic symbols such as
trophies, plaques, ribbons, prizes, or laudations may be given to
the winner. Such symbolic rewards are commonly used in human sporting
and academic competitions.
The
Latin root for the verb "to compete" is "competere" which means
"to seek together" or "to strive together." [1]
Workshop
Extended
Marketing Mix
Product: products and brands — features, advantages and benefits,
the total product
concept, product mix, product life-cycle and its effect on other
elements of the marketing mix, product strategy, new product development,
adoption process
Place: customer convenience and availability, definition of channels,
types and functions of intermediaries, channel selection, integration
and distribution systems, franchising, physical distribution management
and logistics, ethical issues
Price: perceived value, pricing context and process, pricing strategies,
demand elasticity, competition, costs, psychological, discriminatory,
ethical issues
Promotion: awareness and image, effective communication, integrated communication
process — (SOSTT + 4Ms), promotional mix elements, push and
pull strategies, advertising above and below the line including
packaging, public relations and sponsorship, sales promotion, direct
marketing and personal selling, branding, internet and online marketing
The
Shift from the 4Ps to the 7Ps: product-service continuum,
concept of the extended marketing mix, the significance of the soft
elements of marketing — people, physical evidence and process
management
Tutorials
Readings
The Marketing
Mix approach to marketing is a model of crafting and implementing marketing
strategies. It stresses the "mixing" or blending of various
factors in such a way that both organisational and consumer
(target markets) objectives are attained. The model was developed
by Neil Borden (Borden, N. 1964) who first started using the
phrase in 1949. Borden claims the phrase came to him while
reading James Culliton's description of the activities of
a business executive:
- (An
executive is) "a mixer of ingredients, who sometimes follows
a recipe as he goes along, sometimes adapts a recipe to
the ingredients immediately available, and sometimes experiments
with or invents ingredients no one else has tried." (Culliton,
J. 1948)
|
Larger
Map |
|
When
blending the mix elements, marketer(s) must consider their target
market. They must understand the wants and needs (see Maslow)
of the market (customer) then use these mix elements in constructing
(formulating) appropriate marketing strategies and plans that will satisfy these wants. The mix must also meet or exceed
the objectives of the organisation. As Borden put it,"When building
a marketing program to fit the needs of his firm, the marketing
manager has to weigh the behavioural forces and then juggle
marketing elements in his mix with a keen eye on the resources
with which he has to work." (Borden, N. 1964 pg 365). A separate
marketing mix is usually crafted for each product
offering or for each market
segment, depending on the organisational structure of the
firm. Borden goes on to suggest a procedure for developing a
marketing mix. He claims that you need two sets of information;
a list of important elements that go into the mix, and a list
of forces that influence these decision variables. |
External
links
- What
is 7-S Model?
The 7-S model is a tool for managerial analysis and action that
provides a structure with which to consider a company as a whole,
so that the organization's problems may be diagnosed and a strategy
may be developed and implemented. The Seven-Ss is a framework
for analyzing organizations and their effectiveness. It looks
at the seven key elements that make the organizations successful,
or not: strategy; structure; systems; style; skills; staff; and
shared values.
Product
Management is an organizational function
within a company dealing with the product planning or product marketing
of a product or products at all stages of the product
lifecycle.
Product Management is also a collective term used to describe the
broad sum of diverse activities performed in the interest of delivering
a particular product to market.
From a practical perspective, product management is an occupational
domain which hold two professional disciplines: product
planning and product
marketing. This is because the product's functionality is created
for the user via product
planning efforts, and product value is presented to the buyer via product
marketing activities.
Product
planning and product marketing are very different but due to the
collaborative nature of these two disciplines, some companies erroneously
perceive them as being one discipline, which they call product management.
Done carefully, it is very possible to functionally divide the product
management domain into product planning and product marketing, yet
retain the required synergy between the two disciplines.
Product
planning typically deals with these activities:
|
Product
marketing typically deals with these activities:
- Product
positioning and outbound messaging
- Promoting
the product externally with press, customers, and partners
- Bringing
new products to market
Product
management typically deals with these closely-related functions:
|
 |
See
also
External
links
Pricing is one of the four
p's of the marketing
mix. The other three aspects are product
management, promotion,
and place.
It is also a key variable in microeconomic price allocation theory.
Pricing
is the manual or automatic process of applying prices to purchase
and sales orders, based on factors such as: a fixed amount, quantity
break, promotion or sales campaign, specific vendor quote, price
prevailing on entry, shipment or invoice date, combination of multiple
orders or lines, and many others. Automated systems require more
setup and maintenance but may prevent pricing errors.
Promotion is one of the four aspects of marketing.
The other three parts of the marketing
mix are product
management, pricing,
and distribution.
Promotion involves disseminating information about a product, product
line, brand,
or company.
Promotion
is comprised of subcategories:
The
specification of these four variables creates a promotional
mix or promotional plan. A promotional mix specifies how much
attention to pay to each of the four subcategories, and how much
money to budget for each. A promotional plan can have a wide range
of objectives, including: sales increases, new product acceptance,
creation of brand
equity, positioning,
competitive retaliations, or creation of a corporate
image.
An
example of a fully integrated, long-term, large-scale promotion
is Pepsi
Stuff.
See
also
Distribution is one of the four aspects of marketing.
A distributor is the middleman between the manufacturer and retailer. After a product is manufactured
it is typically shipped (and typically sold) to a distributor. The
distributor then sells the product to retailers or customers.
The
other three parts of the marketing
mix are product
management, pricing,
and promotion.
Image
from http://www.isem.it/convegni/corpo.html
Different
Marketing Segments and Contexts
Consumer
markets: fast-moving
consumer goods, consumer
durables, co-ordinated
marketing mix to achieve objectives
Organisational
markets: differences from consumer markets, adding value
through service; industrial, non-profit making, government, re-seller
Services: nature and characteristics of service products — intangibility,
ownership,
inseparability, perishability, variability, heterogeneity —
the 7Ps, strategies, service quality, elements of physical product
marketing, tangible and intangible benefits
International
Markets: globalisation, standardisation
versus adaptation, the EU, benefits and risks,
market
attractiveness, international marketing mix strategies
Tutorials
Readings
Fast
Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that have a quick turnover,
and relatively low cost. Consumers generally put less thought into
the purchase of FMCG than they do for other products. Though the
absolute profit made on FMCG products is relatively small, they
generally sell in large numbers and so the cumulative profit on
such products can be large.
Examples
of FMCG generally includes a wide range of frequently purchased
consumer products such as toiletries, soap, cosmetics, teeth cleaning
products, shaving products and detergents, as well as other non-durables
such as glassware, bulbs, batteries, paper products and plastic
goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products and drinks, although these are often categorized
separately.
FMCG
products can be thought of in contrast with consumer durables, which
are generally replaced less than once a year (e.g. kitchen appliances).
Three
of the largest and best known examples of Fast Moving Consumer Goods
companies are Nestlé, Unilever and Procter
& Gamble. Examples of FMCGs are soft
drinks, tissue
paper, and chocolate
bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and the Mars
Bar.
A
subset of FMCGs are Fast Moving Consumer Electronics which contain innovative electronic products such as mobile phones, MP3
players, digital
cameras, GPS Systems and Laptops,
which are replaced more frequently than other electronic products.
White
goods in FMCG refers to house hold electronic items such as Refrigerator,
T.V, Music Systems etc.
FMCG
industry is innovative, full of rich experience, reaches world wide,
people working with FMCG may get frequent opportunity to travel
meet new culture, gets experience very quickly and chances to rise
in status is much easier.
Unlike
other sectors FMCG shares float in a steady manner irrespective
of market dip world wide. somebody correctly said people will eat,
bath, brush everyday.
In economics,
a Durable
Good or a Hard Good is a good which does not quickly wear out, or more specifically, it yields services or utility over time rather than being completely used up when used once. Most
goods are therefore durable goods to a certain degree. Perfectly
durable goods never wear out.
Examples
of durable goods include cars, appliances, business equipment, electronic
equipment, home furnishings and fixtures, houseware and accessories,
photographic equipment, recreational goods, sporting goods, toys
and games.
Nondurable
goods or soft goods are the opposite of durable goods.
They may be defined either as goods that are used up when used once,
or that have a lifespan of less than 3 years.
Examples
of nondurable goods include cosmetics, food, cleaning products,
office supplies, packaging and containers, paper and paper products,
personal products, rubber, plastics, textiles, clothing, footwear
and most services.
Durable
goods, nondurable goods and services together constitute the consumption of an economy.
See
also
Industrial
Organization is the field of economics that studies the strategic behavior of firms, the structure of markets and their interactions. It is also referred to as "Industrial Economics",
but perhaps a most appropriate term is the "Economics of Imperfect
Competition".
Theoretical
analysis in the field is heavily based on game
theory. It should not be confused with the related psychological
area, Industrial
and organizational psychology.
The
common market
structures studied in this field are the following:
Industrial
organization investigates the outcomes of these market structures
in environments with
The
subject has a theoretical side and a practical side. According to
one text book: "On one plane the field is abstract, a set of analytical
concepts about competition and monopoly. On a second plane the topic
is about real markets, teeming with the excitement and drama of
struggles among real firms" (Shepherd, W.; 1985; 1).
Given
that it was the first field that used game theory in economics,
industrial organization has become the natural exporter of methodological
tools to other branches of microeconomics,
such as organization
economics, corporate
finance, information
economics. Industrial organization has also had a siginificant
impact on antitrust
law and competition
policy.
See
also
Growth/share
are replaced by competitive position and market attractiveness.
The point is that successful SBU's will go and do well in attractive
markets because they add value that customers will pay for. So weak
companies do badly for the opposite reasons. To help break down
decision-making further, you then consider a number of sub-criteria:
For market attractiveness:
- Size
of market.
- Market
rate of growth.
- The
nature of competition and its diversity.
- Profit
margin.
- Impact
of technology, the law, and energy efficiency.
- Environmental
impact.
.
. . and for competitive position:
- Market
share.
- Management
profile.
- R
& D.
- Quality
of products and services.
- Branding
and promotions success.
- Place
(or distribution).
- Efficiency.
- Cost
reduction.
|
 |
Globalization,
also globalisation, refers to a process of increasing
integration between units around the world, including nation-states, households/individuals corporations and other organizations. It is an umbrella
term, covering economic,
trade, social, technological, cultural and political aspects, and is the opposite of deglobalization. Theodore
Levitt is usually credited with globalization's first use in
an economic context.[1]
A KFC franchise in Kuwait.
Today,
a proactive form of globalization is emerging, spawning from a drive
by international corporations to loosen trade restrictions. It is
the global financial firms that have been the most eager proponents
of this expansion. A group of advocates from different parts of
the world had been pushing for an integrated global society as envisioned
in The Globalist Manifesto which is the foundation of globalism
ideology.
Activities
Recommended
Texts
 |
Principles
of Marketing 9th Edition
Phil Kotler and Gary Armstrong
It
offers important new thinking and expanded coverage on:
- Connecting
with customers: connecting more selectively, more directly,
and for life.
- Relationship
marketing - finding, keeping, and growing profitable customers
and capturing customer lifetime value by building value-laden
customer relationships.
Check
the availability and buy your books from our Bookshop.
|
 |
Essentials
of Marketing
Jane
Summers — University of Southern Queensland
Michael Gardiner — University of Southern Queensland
Charles Lamb — Texas Christian University
Joseph Hair — Louisiana State University
Carl McDaniel — University of Texas
Check
the availability and buy your books from our Bookshop.
|
 |
Rethinking
the Sales Force: Redefining Selling to Create and Capture Customer
Value
"In
today's markets, success no longer depends on communicating
the value of products or services. It rests on the crucial
ability to create value for customers. Sales forces need to
retool current strategies by recognizing the customer's dominant
power in today's economy and what that means for those who
sell. Capitalizing on research into the practices of cutting
edge companies, the authors show how the successful sales
force breaks away from traditionalthinking and transforms
themselves into complex business processes with multiple sales
approaches and selling models that meet the demands of today's
sophisticated customers."
Check
the availability and buy your books from our Bookshop.
|
Resources
Case
Studies
 |
Strategy:
Analysis and Practice
John McGee, Warwick Business School
Howard Thomas, Warwick Business School
David Wilson, Warwick Business School
Check
the availability and buy your books from our Bookshop.
|
|
