19th february 2007 1 first edition 19th february 20072 table of content table of content slide (...

19th February 200719th February 2007 11

FIRST EDITION


TABLE OF CONTENTTABLE OF CONTENT Slide ( 6-10) INTRODUCTION TO MARKETING Slide ( 6-10) INTRODUCTION TO MARKETING

Slide (11-26) MARKETING RESEARCHSlide (11-26) MARKETING RESEARCH

Slide (27-29) MARKETING INFORMATION SYSTEM.Slide (27-29) MARKETING INFORMATION SYSTEM.

Slide (30-31) MARKET FORECASTING TECHNIQUES.Slide (30-31) MARKET FORECASTING TECHNIQUES.

Slide (32-33) THE MARKETING MIXSlide (32-33) THE MARKETING MIX

Slide (34-95) THE MARKETING MIX ( PRODUCT)Slide (34-95) THE MARKETING MIX ( PRODUCT)

Slide (96-104) THE MARKETING MIX ( PRICE)Slide (96-104) THE MARKETING MIX ( PRICE)

Slide (105-109) THE MARKETING MIX (PLACE)Slide (105-109) THE MARKETING MIX (PLACE)

Slide (110-131) THE MARKETING MIX (PROMOTION)Slide (110-131) THE MARKETING MIX (PROMOTION)


TABLE OF CONTENTTABLE OF CONTENT

Slide (132-133) THE MARKETING MIX (PEOPLE, PHYSICAL EVIDENCE AND PROCESS)Slide (132-133) THE MARKETING MIX (PEOPLE, PHYSICAL EVIDENCE AND PROCESS)

Slide (134-138) MARKETING PLANNING AND BUDGETINGSlide (134-138) MARKETING PLANNING AND BUDGETING

Slide (139-146) MARKETING AND BUSINESS STRATEGIESSlide (139-146) MARKETING AND BUSINESS STRATEGIES

Slide (147-163) THE MARKETING ENVIRONMENTSlide (147-163) THE MARKETING ENVIRONMENT

Slide (164-190) MARKET SEGMENTATION, TARGETING AND POSITIONINGSlide (164-190) MARKET SEGMENTATION, TARGETING AND POSITIONING

Slide (191-205) INDIVIDUAL AND ORGANISATIONAL BUYER BEHAVIOURSlide (191-205) INDIVIDUAL AND ORGANISATIONAL BUYER BEHAVIOUR

Slide (206-207) THE MARKETING CONCEPTSlide (206-207) THE MARKETING CONCEPT

Slide (208-220) STAKEHOLDERSSlide (208-220) STAKEHOLDERS

Slide (221-234) THE STRATEGIC MANAGEMENT MODELSlide (221-234) THE STRATEGIC MANAGEMENT MODEL


TABLE OF CONTENTTABLE OF CONTENT

Slide (235-236) THE ROLE OF THE MARKETING MANAGERSlide (235-236) THE ROLE OF THE MARKETING MANAGER

Slide (237-239) MARKETETING INTERMEDIARIES-WHOLESALERS, Slide (237-239) MARKETETING INTERMEDIARIES-WHOLESALERS, RETAILERS, AGENTS.RETAILERS, AGENTS.

Slide (240-251) INTERNATIONAL MARKETING AND INTERNATIONAL Slide (240-251) INTERNATIONAL MARKETING AND INTERNATIONAL MARKET ENTRY STRATEGYMARKET ENTRY STRATEGY

Slide (252-260) ANALYSING COMPETITORSSlide (252-260) ANALYSING COMPETITORS

Slide (261-321 MISCELLANEOUSSlide (261-321 MISCELLANEOUS


PLEASE GO THROUGH THE FOLLOWING PLEASE GO THROUGH THE FOLLOWING QUESTIONS IN PREPARATION FOR YOUR QUESTIONS IN PREPARATION FOR YOUR EXAM – SOME HAVE GOT ANSWERS WHILE EXAM – SOME HAVE GOT ANSWERS WHILE SOME HAV’NT GOT. SHOULD IN CASE YOU SOME HAV’NT GOT. SHOULD IN CASE YOU FACE ANY PROBLEM ANSWERING THE FACE ANY PROBLEM ANSWERING THE QUESTIONS I WILL BE GLAD TO ASSIST YOUQUESTIONS I WILL BE GLAD TO ASSIST YOU

CHEERS.CHEERS.


What is marketing and why What is marketing and why is marketing important?is marketing important?


Examine the recent trends Examine the recent trends in marketing and assess the in marketing and assess the impact it has on a business.impact it has on a business.

New TechnologyNew Technology Business ExpansionBusiness Expansion More regulations and legislationMore regulations and legislation Changes in consumer behaviour.Changes in consumer behaviour. One stop shopping and 24 hour shopping.One stop shopping and 24 hour shopping. CompetitionCompetition Development in advertisingDevelopment in advertising


Explain some of the marketing Explain some of the marketing activities in any organization activities in any organization of your choice.of your choice.


Marketing is the engine that Marketing is the engine that drives business - discussdrives business - discuss


Q1. Explain the stages of Q1. Explain the stages of the marketing research the marketing research processprocessDefine the problem and research objectives

Develop the research plan

Collect the informa-tion

Analyse theinforma-tion

Present the findings.


Q2.Explain the components Q2.Explain the components of a research planof a research plan Outline the problemOutline the problem Define the objectivesDefine the objectives Determine the target to be researchedDetermine the target to be researched Decide how the research is to be carried outDecide how the research is to be carried out Decide who is to carry out the researchDecide who is to carry out the research Determine the timescalesDetermine the timescales Set or agree the budgetSet or agree the budget Implement the planImplement the plan Monitor and controlMonitor and control Reach conclusionsReach conclusions


Q3. Distinguish Q3. Distinguish between between primary and primary and secondary secondary researchresearch


PRIMARY RESEARCHPRIMARY RESEARCH SECONDARY RESEARCHSECONDARY RESEARCH

Field researchField research Desk researchDesk research

New data is gotNew data is got Old data ( already existing)Old data ( already existing)

Data is got from questionnaires,Data is got from questionnaires,

interviews, surveys, group discussionsinterviews, surveys, group discussions

etc.etc.

Data is got from books, internet, Data is got from books, internet, library, databases.library, databases.

Well trusted and reliableWell trusted and reliable Unreliable and can’t be trusted.Unreliable and can’t be trusted.

Original information is got ( InformationOriginal information is got ( Information

from the 'horses mouth’)/ first handfrom the 'horses mouth’)/ first hand

informationinformation

Second hand information is gotSecond hand information is got

Information is up to date - currentInformation is up to date - current Information is outdated Information is outdated

It is more expensive and takes more It is more expensive and takes more timetime

It is less expensive and takes less It is less expensive and takes less time.time.


Explain the advantages and disadvantages of Explain the advantages and disadvantages of primary research:primary research:

AdvantagesAdvantages DisadvantagesDisadvantages


Explain the advantages and disadvantages of Explain the advantages and disadvantages of

secondary research.secondary research. AdvantagesAdvantages DisadvantagesDisadvantages


Explain the difference Explain the difference between open and closed between open and closed ended questionnaires: ended questionnaires: Closed ended questions –Closed ended questions – Respondents’ answers are limited to a fixed set ofRespondents’ answers are limited to a fixed set ofresponses. Most scales are closed ended. Other typesresponses. Most scales are closed ended. Other typesof closed ended questions include: of closed ended questions include: Dichotomous questions - The respondent answers Dichotomous questions - The respondent answers

with a “yes” or a “no”. with a “yes” or a “no”. Multiple choice - The respondent has several option Multiple choice - The respondent has several option

from which to choose. from which to choose.


Open ended questionsOpen ended questions - - No options or predefined categories are suggested. The respondent supplies No options or predefined categories are suggested. The respondent supplies

their own answer without being constrained by a fixed set of possible their own answer without being constrained by a fixed set of possible responses. Examples of types of open ended questions include: responses. Examples of types of open ended questions include:

Completely unstructured - For example, “What is your opinion of Completely unstructured - For example, “What is your opinion of questionnaires?” questionnaires?”

Word association - Words are presented and the respondent mentions the first Word association - Words are presented and the respondent mentions the first word that comes to mind. word that comes to mind.

Sentence completion - Respondents complete an incomplete sentence. For Sentence completion - Respondents complete an incomplete sentence. For example, “The most important consideration in my decision to buy a new example, “The most important consideration in my decision to buy a new house is . . .” house is . . .”

Story completion - Respondents complete an incomplete story. Story completion - Respondents complete an incomplete story.

Picture completion - Respondents fill in an empty conversation balloon. Picture completion - Respondents fill in an empty conversation balloon.

Thematic apperception test - Respondents explain a picture or make up a story Thematic apperception test - Respondents explain a picture or make up a story about what they think is happening in the picture about what they think is happening in the picture


Question sequenceQuestion sequence

Questions should flow logically from one to the next. Questions should flow logically from one to the next.

The researcher must ensure that the answer to a question is not influenced by The researcher must ensure that the answer to a question is not influenced by previous questions. previous questions.

Questions should flow from the more general to the more specific. Questions should flow from the more general to the more specific.

Questions should flow from the least sensitive to the most sensitive. Questions should flow from the least sensitive to the most sensitive.

Questions should flow from factual and behavioural questions to attitudinal and Questions should flow from factual and behavioural questions to attitudinal and opinion questions. opinion questions.

Questions should flow from unaided to aided questions Questions should flow from unaided to aided questions

According to the three stage theory (also called the sandwich theory), initial According to the three stage theory (also called the sandwich theory), initial questions should be screening and rapport questions. Then in the second stage questions should be screening and rapport questions. Then in the second stage you ask all the product specific questions. In the last stage you ask you ask all the product specific questions. In the last stage you ask demographicdemographic questions. questions.


Differentiate between Differentiate between Quantitative and Qualitative Quantitative and Qualitative research research

Qualitative researchQualitative research is one of the two major is one of the two major approaches to approaches to research methodologyresearch methodology in in social sciencessocial sciences. Qualitative research involves an . Qualitative research involves an indepth understanding of indepth understanding of human behaviourhuman behaviour and the and the reasonsreasons that govern human behaviour. Unlike that govern human behaviour. Unlike quantitative researchquantitative research, qualitative research relies on , qualitative research relies on reasons behind various aspects of reasons behind various aspects of behaviourbehaviour. Simply . Simply put, it investigates the put, it investigates the whywhy and and howhow of of decision makingdecision making, as compared to , as compared to whatwhat, , wherewhere, and , and whenwhen of quantitative research. Hence, the need is for of quantitative research. Hence, the need is for smaller but focused smaller but focused samplessamples rather than large rather than large random samplesrandom samples. .


Explain five types of research Explain five types of research which can be carried out by which can be carried out by management to get management to get information about the market: information about the market: Market and MarketingMarket and Marketing Primary and secondaryPrimary and secondary Quantitative and QualitativeQuantitative and Qualitative Survey researchSurvey research Observational researchObservational research Continuous researchContinuous research Conclusive researchConclusive research Descriptive researchDescriptive research Experimental researchExperimental research Exploratory researchExploratory research


Differentiate between the Differentiate between the primary and secondary primary and secondary research methods:research methods:

PRIMARY RESEARCH METHODSPRIMARY RESEARCH METHODS Interviews and discussionsInterviews and discussions ObservationsObservations QuestionnairesQuestionnaires Test marketingTest marketing SamplingSampling Survey/(Intelligence gathering)Survey/(Intelligence gathering)


Secondary methodsSecondary methods

LibraryLibrary InternetInternet DatabasesDatabases TV, Radio, Newspapers, magazines.TV, Radio, Newspapers, magazines. GovernmentGovernment BusinessesBusinesses Internal recordInternal record


WHY IS MARKETING RESEARCH VERY WHY IS MARKETING RESEARCH VERY IMPORTANT TO AN ORGANISATION IMPORTANT TO AN ORGANISATION THAT WANTS TO BE CUSTOMER THAT WANTS TO BE CUSTOMER ORIENTED.ORIENTED.


Differentiate between In-house and Differentiate between In-house and External research and highlight the External research and highlight the advantages and disadvantages of both advantages and disadvantages of both approaches to carrying out researchapproaches to carrying out research


Q1. Explain the components of Q1. Explain the components of the marketing information the marketing information systemsystem

55Sunday, February 18, 2007Sunday, February 18, 2007 By J Asongwe By J Asongwe

The Marketing Information SystemThe Marketing Information System

Internal recordMarketing

intelligence

Information analysis Marketing research

Assessing information

needs

Distributinginformation

Marketing environment

Target Markets

Marketing channels

Competitors

Publics

Microenvironment forces

Marketingmanagers

Planning

Execution

Control

FIGURE 1: The marketing Information System

Marketing Information System

Marketing decisions and communications


Why is there the need for Why is there the need for an information system in an an information system in an organization.organization.


Explain the marketing Explain the marketing forecasting techniques businessesforecasting techniques businesses can use to forecast can use to forecast market demand and sales market demand and sales

Buyer’s intentionBuyer’s intention Composite of sales force opinionsComposite of sales force opinions Expert opinionExpert opinion Test-market methodTest-market method Time-series analysisTime-series analysis Leading indicatorsLeading indicators Statistical demand analysisStatistical demand analysis Information analysisInformation analysis


Q1. Briefly explain the Q1. Briefly explain the components of the marketing components of the marketing mixmix

PRODUCTPRODUCT PRICEPRICE PLACEPLACE PROMOTIONPROMOTION PEOPLEPEOPLE PHYSICAL EVIDENCEPHYSICAL EVIDENCE PROCESSPROCESS


Q1. Explain the concept of the Q1. Explain the concept of the product lifecycle and its product lifecycle and its validity to marketing validity to marketing managers:managers:


PRODUCT LIFE CYCLEPRODUCT LIFE CYCLE

Introduction Growth Maturity Decline

Profit

Loss Loss

Sales & profit

Time (period)


THE PRODUCT LIFE CYCLETHE PRODUCT LIFE CYCLE


Sales

Time

•Low sales•Low profit•High cost of •Promotion•Low market Share•Few Competitors•Informative advertisement•Price-skimming orPenetration pricing

•Increase in sales•Increase in profit•Increase in market share•Increase in the •number of Competitors•Economies of scale

•High profit and sales•More competitors, butLater on they startleaving the market because of more competition•Low growth market•Profit and sales later on declinebecause of high competition and price decline•Increase in promotion

•Decline in sales•Decline in profit•Decline in market share•Competitors leave the marketProduct

Developmentstage

ProfitProfit

Loss

Loss


Q2. Explain how the marketing Q2. Explain how the marketing mix elements changes through mix elements changes through the various stages of the the various stages of the product lifecycle.product lifecycle.


PRODUCT LIFE CYCLEPRODUCT LIFE CYCLE


Profit

Loss Loss

Sales & profit

Time (period)


CHARCTERISTICHARCTERISTICSCS

INTRODUCTIONINTRODUCTION GROWTHGROWTH MATURITYMATURITY DECLINEDECLINE

SalesSales LowLow IncreasingIncreasing High but starts High but starts Slowing Slowing

DecliningDeclining

ProfitsProfits LossLoss PeakingPeaking Increasing to Increasing to DecliningDeclining

Low to ZeroLow to Zero

Cash flowCash flow NegativeNegative ModerateModerate High High LowLow

CustomersCustomers InnovativeInnovative Mass MarketMass Market Mass MarketMass Market LaggardsLaggards

Strategic focusStrategic focus Expanding marketExpanding market Market penetrationMarket penetration Defensive marketingDefensive marketing ProductivityProductivity

MarketingMarketing

expenditureexpenditure

High High High-decliningHigh-declining FallingFalling LowLow

Product planProduct plan Market to innovators, Market to innovators, early adopters; high early adopters; high product failure rate; product failure rate; basic- developingbasic- developing

Expand for early and Expand for early and late majority; less late majority; less product product distinctiveness; distinctiveness; improve models.improve models.

Widen product lines, Widen product lines, rationalize brand; less rationalize brand; less competition; competition; differentiate.differentiate.

Niche marketing; Niche marketing; reinforce brand reinforce brand loyalty; rationalizeloyalty; rationalize

Competitor Competitor reactionreaction

No reactionNo reaction Maximum new Maximum new entrants - highentrants - high

Marginal competitors Marginal competitors exitexit

Competition declinesCompetition declines

Pricing planPricing plan High skimmingHigh skimming Differentiated for each Differentiated for each segmentsegment

Lowest - competitiveLowest - competitive Price cutting rises for Price cutting rises for nichesniches

Distribution planDistribution plan Unstable pattern – widen Unstable pattern – widen channels, seize shelf channels, seize shelf space.space.

Increasing pattern – Increasing pattern – competitor activity competitor activity increasing.increasing.

Control passing to Control passing to fewer firmsfewer firms

Segmented, Segmented, fragmented and fragmented and localized.localized.

Promotional planPromotional plan Informative Informative advertisement and advertisement and promotionpromotion

Advertising increases Advertising increases because of increase in because of increase in competitioncompetition

High sales promotion High sales promotion because of more because of more competitioncompetition

Sales promotion to Sales promotion to cope with the decliine cope with the decliine in salesin sales

Source: Association of business executives

The product life cycle characteristics


THE PLC THE PLC AND AND THE MARKETING MIX THE MARKETING MIX

Marketing Marketing mix elementsmix elements

IntroductionIntroduction Growth Growth Maturity Maturity DeclineDecline

PRODUCTPRODUCT

PRICEPRICE

PLACEPLACE

PROMOTIONPROMOTION

PEOPLEPEOPLE

PHYSICAL PHYSICAL EVIDENCE & EVIDENCE & PROCESSPROCESS


Q3. Explain the importance of the Q3. Explain the importance of the product lifecycle to marketing product lifecycle to marketing managementmanagement The product lifecycle helps in The product lifecycle helps in 1.1. Strategic planning and forecastingStrategic planning and forecasting2.2. BudgetingBudgeting3.3. Strategic analysis, choice and implementationStrategic analysis, choice and implementation4.4. Marketing mix implementationMarketing mix implementation5.5. Advertising and promotion strategyAdvertising and promotion strategy6.6. Segmentation, targeting and positioningSegmentation, targeting and positioning7.7. Market research and developmentMarket research and development8.8. Setting objectives Setting objectives 9.9. Business reengineeringBusiness reengineering10.10. Decision MakingDecision Making


Explain the strategies that Explain the strategies that can be used at each stage can be used at each stage of the product life cycle: of the product life cycle:


Explain the product Explain the product adoption process:adoption process:


Write short notes on the Write short notes on the following: following:

PackagingPackaging LabellingLabelling BrandingBranding Product qualityProduct quality Augmented product.Augmented product.


Explain the significance of Explain the significance of branding productsbranding products


Q4. With the aid of examples, Q4. With the aid of examples, explain what is a product line.explain what is a product line.


PRODUCT LINEPRODUCT LINE

Television Laptops Cars Mobile WatchesPanasonicSharpSonyLGTechnicsSamsung

HPPackard bellMicrosoftDellPC worldSony

NokiaMotorolaSamsungLGSiemensSargemSony E

RolexSeikoSeconda

ProductLine length

Product line width

JaguarMercedesRoverVauxhallCorollaNissanAudiFerrariOpelBMWHondaPajeroToyotaCamri

ProductLine Length

A B C D E

6 6

14

7

3


THE PRODUCT LINE OF ASDA SUPERMARKETTHE PRODUCT LINE OF ASDA SUPERMARKET

ProductLine length

Product line width

ProductLine Length

AB D E

6 6

14

7

3

CElectronics

Clothing & Shoes Beverages Food Cosmetic

Homeproducts Pharmacy Jewelery


THE PRODUCT LINE OF TESCO SUPERMARKETTHE PRODUCT LINE OF TESCO SUPERMARKET

Television Laptops Mobile WatchesPanasonicSharpSonyLGTechnicsSamsung

HPPackard bellMicrosoftDellPC worldSony

NokiaMotorolaSamsungLGSiemensSargemSony E

RolexSeikoSeconda

ProductLine length

Product line width

ProductLine Length

A B C D E

6 6

14

7

3


Explain the New ProductExplain the New Product Development Development Process that an organisation Process that an organisation should follow when deciding toshould follow when deciding to produce a new product: produce a new product:


The New Product Development ProcessThe New Product Development Process

Idea generationIdea generation

Idea screeningIdea screening

Concept development and testingConcept development and testing

Outlining Marketing strategiesOutlining Marketing strategies

Business AnalysisBusiness Analysis

Product developmentProduct development

Test marketingTest marketing

CommercialisationCommercialisation

MonitoringMonitoring

ControllingControlling


Distinguish between consumer Distinguish between consumer and producer goods and and producer goods and explain the various types of explain the various types of consumer goodsconsumer goods


Explain the various types of Explain the various types of consumer products consumer products highlighting the differences highlighting the differences from producer goodsfrom producer goods


THE MARKETING MIX - PRODUCTTHE MARKETING MIX - PRODUCT

Types of consumer product - Marketing considerations for consumer products

Marketing Marketing considerationconsideration

ConvenienceConvenience ShoppingShopping SpecialitySpeciality UnsoughtUnsought

Customer buying Customer buying behaviourbehaviour

Frequent purchase, little Frequent purchase, little planning, little planning, little comparison or shopping comparison or shopping effort, low customer effort, low customer involvementinvolvement

Less frequent purchase, Less frequent purchase, much planning and much planning and shopping effort, shopping effort, comparison of brands comparison of brands on price, quality, styleon price, quality, style

Strong brand Strong brand preference and loyalty, preference and loyalty, special purchase effort, special purchase effort, little comparison of little comparison of brands, low price brands, low price sensitivity.sensitivity.

Little product Little product awareness or awareness or knowledge; if aware, knowledge; if aware, little or even negative little or even negative interest.interest.

PricePrice Low priceLow price Higher priceHigher price High priceHigh price VariesVaries

DistributionDistribution Widespread distribution, Widespread distribution, convenient locationsconvenient locations

Selective distribution in Selective distribution in fewer outletsfewer outlets

Exclusive distribution in Exclusive distribution in only one or a few only one or a few outlets per market areaoutlets per market area

VariesVaries

PromotionPromotion Mass promotion by the Mass promotion by the producerproducer

Advertising and Advertising and personal selling by both personal selling by both producer and resellersproducer and resellers

More carefully targeted More carefully targeted promotion by both promotion by both producer and resellers.producer and resellers.

Aggressive advertising Aggressive advertising and personal selling by and personal selling by producer and resellersproducer and resellers

ExamplesExamples Toothpaste, magazines, Toothpaste, magazines, laundry detergentlaundry detergent

Major appliances, Major appliances, televisions, furniture, televisions, furniture, clothing.clothing.

Luxury goods, such as Luxury goods, such as Rolex watches or fine Rolex watches or fine crystal.crystal.

Life insurance, blood Life insurance, blood donations, grave stones donations, grave stones etc.etc.



PRODUCT CLASSIFICATION:PRODUCT CLASSIFICATION:CONSUMER GOODS CLASSIFICATIONCONSUMER GOODS CLASSIFICATIONConsumer ProductsConsumer Products1.1. Convenience goods:Convenience goods: e.g.e.g. bread, milk, toilet tissue, cigarette, bread, milk, toilet tissue, cigarette,

newspapers, toothpaste, sweets, meat, fish, butter etc. These are mostly newspapers, toothpaste, sweets, meat, fish, butter etc. These are mostly Perishable goods: goods that will deteriorate quickly even without use. Perishable goods: goods that will deteriorate quickly even without use. There are also Non durable/consumption/consumable goods: goods that There are also Non durable/consumption/consumable goods: goods that are used up in one occasion. Convenience goods are conveniently are used up in one occasion. Convenience goods are conveniently located. They are not expensive and are consumed regularly. The buyer located. They are not expensive and are consumed regularly. The buyer most often have a good knowledge of the price for such products and less most often have a good knowledge of the price for such products and less time is spend in the purchase decision because of product and price time is spend in the purchase decision because of product and price awareness. Convenience goods are needed almost on a daily basis awareness. Convenience goods are needed almost on a daily basis (demanded regularly). Most of these products have a short shelf life. The (demanded regularly). Most of these products have a short shelf life. The distribution of these products is more intensive because of the demand distribution of these products is more intensive because of the demand and the necessity for such products. Consumers can’t do without these and the necessity for such products. Consumers can’t do without these products.products.


2. Shopping goods2. Shopping goods: e.g. television, cloths, shoes, watch & cameras. They are more : e.g. television, cloths, shoes, watch & cameras. They are more expensive than convenience goods. They are selectively expensive than convenience goods. They are selectively located. They are non perishables and can be kept for very located. They are non perishables and can be kept for very long time. Consumers often compare prices and quality long time. Consumers often compare prices and quality before making their purchase decision. These products are before making their purchase decision. These products are available at selective locations. available at selective locations.

3. Speciality goods: 3. Speciality goods: designer goods for e.g.designer goods for e.g. designer suit, designer suit, watch, shoes, cars, etc. There are more expensive than watch, shoes, cars, etc. There are more expensive than convenience and shopping goods. Most of them are convenience and shopping goods. Most of them are exclusively located and some are selectively located. exclusively located and some are selectively located. There are non perishables and durable consumer goods. There are non perishables and durable consumer goods. Most of the products are targeted at wealthy consumers Most of the products are targeted at wealthy consumers (high income earners). There is also comparison of prices (high income earners). There is also comparison of prices and quality before the purchase decision is made. and quality before the purchase decision is made.

4. Unsought goods4. Unsought goods: e.g. life assurance, grave stones, grave : e.g. life assurance, grave stones, grave yard; these are goods which consumers know they exist yard; these are goods which consumers know they exist but are not thinking of consuming such products at the but are not thinking of consuming such products at the moment.moment.


Unsought goodsUnsought goods

Unsought goods: e.g., cemetery plots, insurance. These are products that we Unsought goods: e.g., cemetery plots, insurance. These are products that we need butneed but

which we do not actively seek out to buy. They usually require a hard sell which we do not actively seek out to buy. They usually require a hard sell approach byapproach by

the seller. Example "what will happen to your family if you die and do not have the seller. Example "what will happen to your family if you die and do not have lifelife

assurance?". The fear of leaving the family destitute makes us buy almost assurance?". The fear of leaving the family destitute makes us buy almost against ouragainst our

will, even though we know that it is the intelligent thing to do. Certain legal will, even though we know that it is the intelligent thing to do. Certain legal services suchservices such

As drawing up a will, will also fall into this category. As drawing up a will, will also fall into this category.


Producer products classificationProducer products classificationMaterials and parts: goodsMaterials and parts: goods that go into a finished product: e.g. that go into a finished product: e.g.

cocoa, rubber, banana, iron ore, copper, gold, diamond, etc.cocoa, rubber, banana, iron ore, copper, gold, diamond, etc.Machinery/Machinery/Capital goods: installations, equipment, and Capital goods: installations, equipment, and

buildings buildings Services: Services: Business services such as financial, transportation, Business services such as financial, transportation,

consultancy, insurance, etc.consultancy, insurance, etc.


Write short notes on the Write short notes on the followingfollowing

PackagingPackaging LabellingLabelling BrandingBranding QualityQuality


PRODUCT PACKAGING AND LABELLINGPRODUCT PACKAGING AND LABELLING

NUMEROUS FACTORS HAVE CONTRIBUTED TO THE INCREASED NUMEROUS FACTORS HAVE CONTRIBUTED TO THE INCREASED USE OFUSE OF

PACKAGING AS AN IMPORTANT MARKETING TOOL:PACKAGING AS AN IMPORTANT MARKETING TOOL:

Self serviceSelf service Consumer affluenceConsumer affluence: Rising consumer affluence means that consumers : Rising consumer affluence means that consumers

are willing to pay a little more for the convenience, appearance, are willing to pay a little more for the convenience, appearance, dependability and prestige of better packages.dependability and prestige of better packages.

Company and brand imageCompany and brand image Innovational opportunityInnovational opportunity


Product packaging and labellingProduct packaging and labelling

Packaging is the activities of designing and producing the container or Packaging is the activities of designing and producing the container or wrapper for a product. The container or wrapper is called the packagewrapper for a product. The container or wrapper is called the package . .

Packaging is the enclosing of a physical object, typically a Packaging is the enclosing of a physical object, typically a productproduct that that requires protection from tampering. requires protection from tampering.

Labeling refers to any written or graphic communications on the packaging Labeling refers to any written or graphic communications on the packaging or on a separate but associated label.or on a separate but associated label.


The purpose of packaging and labellingThe purpose of packaging and labelling

Packaging and labeling have seven objectives:Packaging and labeling have seven objectives:

1. Protection against physical impact on object1. Protection against physical impact on object - The objects enclosed in - The objects enclosed in thethe

package may require protection from, among other things, damage caused bypackage may require protection from, among other things, damage caused byphysical force, rain, heat, cold, sunlight, pressure, airborne contamination,physical force, rain, heat, cold, sunlight, pressure, airborne contamination,automated handling devices, or any combination of one or more of these. automated handling devices, or any combination of one or more of these.


2. 2. Protection against dust and dirtProtection against dust and dirt - In a modern supply chain products are subject - In a modern supply chain products are subject

to different environments. They are packed in boxes and stacked on a pallet. Into different environments. They are packed in boxes and stacked on a pallet. Inabout 80% the products end up in a distribution center for commissioning and fineabout 80% the products end up in a distribution center for commissioning and finedistribution to the store where the product will be sold. During this period thedistribution to the store where the product will be sold. During this period thephysical protection also applies to dust and dirt that can easily settle on thephysical protection also applies to dust and dirt that can easily settle on theconsumer packaging. Especially products packed in plastic containers likeconsumer packaging. Especially products packed in plastic containers likeshampoos, detergents and ketchups due to static charging easily attract dust andshampoos, detergents and ketchups due to static charging easily attract dust anddirt. As a consumer we don't want to get dirty hands when picking up a product fromdirt. As a consumer we don't want to get dirty hands when picking up a product fromthe shelf. Transportation packaging keeps our products clean and neat till the shelfthe shelf. Transportation packaging keeps our products clean and neat till the shelfand so helps cut cleaning costs on the shop floor. and so helps cut cleaning costs on the shop floor.



3. Agglomeration3. Agglomeration - Small objects are typically grouped together in one - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Alternatively, bulk requires less physical handling than 1000 single pencils. Alternatively, bulk commodities (such as salt) can be divided into packages that are a more commodities (such as salt) can be divided into packages that are a more suitable size for individual households. suitable size for individual households.

4. Information transmission4. Information transmission - Information on how to use, transport, or dispose - Information on how to use, transport, or dispose of the product is often contained on the package or label. An example is of the product is often contained on the package or label. An example is pharmaceutical products, where some types of information are pharmaceutical products, where some types of information are requiredrequired by by governments. governments.

5. Marketing5. Marketing - The packaging and labels can be used by - The packaging and labels can be used by marketersmarketers to to encourage potential buyers to purchase the product. Package design has encourage potential buyers to purchase the product. Package design has been an important and constantly evolving phenomenon for dozens of been an important and constantly evolving phenomenon for dozens of years. years.


6. 6. Reducing theftReducing theft - Some packages are made larger than they - Some packages are made larger than they need to be so as to make theft more difficult. An example is need to be so as to make theft more difficult. An example is software packages that typically contain only a single disc even software packages that typically contain only a single disc even though they are large enough to contain dozens of discs. These though they are large enough to contain dozens of discs. These packages may also be deliberately difficult to open, to hamper packages may also be deliberately difficult to open, to hamper thieves from removing their contents without drawing notice. thieves from removing their contents without drawing notice. Packages also provide opportunities to include anti-theft Packages also provide opportunities to include anti-theft devices, such as dye-packs or devices, such as dye-packs or electronic article surveillanceelectronic article surveillance tags, that can be activated or detected by devices at exit points tags, that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in and require specialized tools to deactivate. Using packaging in this way is a common tactic for this way is a common tactic for loss preventionloss prevention. .



7. Prevention of pilferage and tampering7. Prevention of pilferage and tampering - Products are exposed to many - Products are exposed to many contacts in the supply chain. Persons handling could steal products contacts in the supply chain. Persons handling could steal products (pilferage), replace full products with empty ones or add constituents to the (pilferage), replace full products with empty ones or add constituents to the contents (tampering). Packaging that cannot be reclosed or gets physically contents (tampering). Packaging that cannot be reclosed or gets physically damaged (shows signs of opening) is very helpfull in the prevention of these damaged (shows signs of opening) is very helpfull in the prevention of these acts. The flaps of corrugated and cardboard boxes are therefore glued in acts. The flaps of corrugated and cardboard boxes are therefore glued in such a way that illegal opening becomes visible. such a way that illegal opening becomes visible.



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Packaging typesAseptic packages Bags Bales Blister packs Bottles Boxes Cans Cartons Envelopes Molded Pulp Pallets Wrappers There are also special containers that combine different technologies for maximum durability:Bags-In-Boxes (used for soft drink syrup and other liquid *Wine box (used for wine) products) PN


Product labellingProduct labelling

Information found on the packaging material include the followingInformation found on the packaging material include the following

1.1. Product nameProduct name2.2. Production/expiry dateProduction/expiry date3.3. Country of originCountry of origin4.4. Ingredients/ composition of the productIngredients/ composition of the product5.5. Nutritional informationNutritional information6.6. Logos, trademark or and company nameLogos, trademark or and company name7.7. Advise on how to use the product and any precaution to take Advise on how to use the product and any precaution to take

when using the product.when using the product.8.8. Bar codeBar code9.9. Price tagPrice tag10.10. Graphic design/product descriptionGraphic design/product description11.11. Contact details of the company / helpline.Contact details of the company / helpline.12.12. Promotional material – slogans etc.Promotional material – slogans etc.


PRODUCT LABELLINGPRODUCT LABELLING

The The lawlaw in the UK on in the UK on food food labellinglabelling is multifaceted and is spread over many is multifaceted and is spread over many reforms and reforms and parliamentary actsparliamentary acts, making the subject complex. However, , making the subject complex. However, there are general laws which should be implied on any food product:there are general laws which should be implied on any food product:

NameName – This must also inform the customer the nature of the product. It may – This must also inform the customer the nature of the product. It may also be necessary to attach a description to the product name. However, also be necessary to attach a description to the product name. However, there are certain generic names which must be only used for their there are certain generic names which must be only used for their conventional uses, for example: Muesli, Coffee, prawns. conventional uses, for example: Muesli, Coffee, prawns.

IngredientsIngredients – All – All ingredientsingredients of the food must be stated under the heading of the food must be stated under the heading Ingredients and must be stated in descending weight. Moreover, certain Ingredients and must be stated in descending weight. Moreover, certain ingredients must be identified by a specific name, such as ingredients must be identified by a specific name, such as preservativespreservatives must be identified as ‘Preservatives’, and then identified by its standardised must be identified as ‘Preservatives’, and then identified by its standardised European serial number, e.g. sodium nitrate or E250. European serial number, e.g. sodium nitrate or E250.


Nutritional InformationNutritional Information – Although it is not a legal requirement to – Although it is not a legal requirement to declare declare Nutritional InformationNutritional Information on the product, if the manufacturer on the product, if the manufacturer makes claims that the product is ‘Low in Sugar’, it must be makes claims that the product is ‘Low in Sugar’, it must be supported with nutritional information (normally in tabulated form). supported with nutritional information (normally in tabulated form). However, as a rule it is recommended to declare nutritional However, as a rule it is recommended to declare nutritional information as consumers more than ever are investgating this information as consumers more than ever are investgating this information before making a purchase. Moreover, there are two information before making a purchase. Moreover, there are two European nutritional labelling standards which must be adhered to European nutritional labelling standards which must be adhered to if nutritional information is shown. if nutritional information is shown.

Medicinal or Nutritional ClaimsMedicinal or Nutritional Claims – Medicinal and Nutritional – Medicinal and Nutritional claims are tightly regulated, some are only allowed under certain claims are tightly regulated, some are only allowed under certain conditions while others are not authorised at all. For example, conditions while others are not authorised at all. For example, presenting claims the food product can treat, prevent or cure presenting claims the food product can treat, prevent or cure diseases or other ‘adverse conditions’ are prohibited. While diseases or other ‘adverse conditions’ are prohibited. While claiming the food is reduced in fat or rich in vitamins require the claiming the food is reduced in fat or rich in vitamins require the food to meet compulsory standards and grades, in addition, the food to meet compulsory standards and grades, in addition, the terms must be used in a form specified in regulations. terms must be used in a form specified in regulations.


PRODUCT LABELLINGPRODUCT LABELLING

Date TaggingDate Tagging – There are two types of date tagging: – There are two types of date tagging: Use by DateUse by Date – ‘ – ‘Use by DateUse by Date’ must be followed by a day or/and month which ’ must be followed by a day or/and month which

the product must be consumed by. To be employed on perishable foods that the product must be consumed by. To be employed on perishable foods that usually would be kept cold, for example, fish, meat, dairy products and usually would be kept cold, for example, fish, meat, dairy products and ‘ready to eat’ salads. ‘ready to eat’ salads.

Best Before DateBest Before Date – ' – 'Best Before DateBest Before Date is used as an indicator of when the is used as an indicator of when the product will begin to degrade from optimal quality: this includes when the product will begin to degrade from optimal quality: this includes when the food becomes stale, begins to taste ‘off’ or decays, rots or goes mouldy. food becomes stale, begins to taste ‘off’ or decays, rots or goes mouldy. There are also regulations on which type of best before date must be There are also regulations on which type of best before date must be applied: applied: Best before + Day for foods with a shelf life of up to 3 months. Best before + Day for foods with a shelf life of up to 3 months. Best before end + Month for foods with more than a 3 month shelf life. Best before end + Month for foods with more than a 3 month shelf life. Best before end + Year for food with more than an 18 month shelf life. Best before end + Year for food with more than an 18 month shelf life.


Storage ConditionsStorage Conditions – If there are any particular storage conditions for – If there are any particular storage conditions for the product to maintain its shelf life, these must be pointed out. However, the product to maintain its shelf life, these must be pointed out. However, as a rule it is recommended to always describe the necessary storage as a rule it is recommended to always describe the necessary storage conditions for a food product. conditions for a food product.

Business Name and AddressBusiness Name and Address – In addition to the business name and – In addition to the business name and address, it is necessary to indicate the manufacturer or packager, if address, it is necessary to indicate the manufacturer or packager, if independent to the main business and the seller established within the independent to the main business and the seller established within the European UnionEuropean Union. .

Place of OriginPlace of Origin – The food is required to specify its place of origin, – The food is required to specify its place of origin, especially if the name or trademark is misleading - such as if the product especially if the name or trademark is misleading - such as if the product is called ‘English Brie Cheese’ when the it is produced in France. is called ‘English Brie Cheese’ when the it is produced in France.

Instruction for UseInstruction for Use – This is only necessary if it is not obvious how to – This is only necessary if it is not obvious how to use or prepare the product, in which case the consumer's own initiative use or prepare the product, in which case the consumer's own initiative must be used. must be used.

PresentationPresentation – The label must be legible and easy to read, also it must – The label must be legible and easy to read, also it must be written in English, however, the manufacturer may also include other be written in English, however, the manufacturer may also include other languages. languages.


PRODUCT LABELLLING- LEGISLATIONPRODUCT LABELLLING- LEGISLATION

Lot Mark or Batch CodeLot Mark or Batch Code – It must be possible to identify individual batches – It must be possible to identify individual batches with a lot mark or batch code - the code must be prefixed with the letter ‘L’ if with a lot mark or batch code - the code must be prefixed with the letter ‘L’ if it can not be distinguish from other codes, however, the date mark can be it can not be distinguish from other codes, however, the date mark can be used as a lot mark. Manufacturers must bear in mind that the smaller the used as a lot mark. Manufacturers must bear in mind that the smaller the size of a batch, the smaller financial consequences in the case of a product size of a batch, the smaller financial consequences in the case of a product recall. recall.

SectioningSectioning – All of the following must be in the same field of vision: – All of the following must be in the same field of vision: Product name Product name Date mark Date mark Weight Weight Quantity Quantity Alcohol strength (if applicable). Alcohol strength (if applicable).

However, there are many other Laws and European regulations for different However, there are many other Laws and European regulations for different types of food products.types of food products.


BrandingBranding

A A brandbrand is a collection of feelings toward an economic producer; more is a collection of feelings toward an economic producer; more specifically, it refers to the concrete symbols for the brand, such as a name specifically, it refers to the concrete symbols for the brand, such as a name and design scheme.and design scheme.

Feelings are created by the accumulation of experiences with the brand, Feelings are created by the accumulation of experiences with the brand, both directly relating to its use, and through the influence of both directly relating to its use, and through the influence of advertisingadvertising, , designdesign, and media commentary. A brand is a , and media commentary. A brand is a symbolicsymbolic embodiment of all the embodiment of all the information connected to a company, information connected to a company, productproduct or or serviceservice..

A brand serves to create associations and A brand serves to create associations and expectationsexpectations among products among products made by a made by a producerproducer. A brand often includes an explicit . A brand often includes an explicit logologo, fonts, , fonts, color schemescolor schemes, , symbolssymbols, which are developed to represent implicit , which are developed to represent implicit valuesvalues, , ideasideas, and even , and even personalitypersonality..The brand, and "branding" and The brand, and "branding" and brand equitybrand equity have become increasingly have become increasingly massive components of massive components of cultureculture and the and the economyeconomy, now being described as , now being described as "cultural accessories and personal philosophies" "cultural accessories and personal philosophies"

NNOBNNOB


BrandingBrandingA BRAND – A BRAND – A brand can be a name, term, sign,A brand can be a name, term, sign,

symbol, or a collection used by businesses to distinguishsymbol, or a collection used by businesses to distinguish

their products from other businesses. their products from other businesses.

Examples of brands: Nike, addidas, Tesco, Asda,Examples of brands: Nike, addidas, Tesco, Asda,

Motorola, Mercedes etcMotorola, Mercedes etc

TRADE MARK / LOGOTRADE MARK / LOGO – It is a mark or a sign used by – It is a mark or a sign used by

businesses to distinguish their products from otherbusinesses to distinguish their products from other

competitors.competitors.


Examples of Brands:Examples of Brands:


TRADE MARK / LOGOTRADE MARK / LOGO

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BrandingBranding

Some marketers distinguish the psychological aspect of a brand from Some marketers distinguish the psychological aspect of a brand from the experiential aspect. The experiential aspect consists of the sum of the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the all points of contact with the brand and is known as the brand brand experienceexperience. The psychological aspect, sometimes referred to as the . The psychological aspect, sometimes referred to as the brand imagebrand image, is a symbolic construct created within the minds of people , is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a and consists of all the information and expectations associated with a product or service. product or service.

•Marketers seek to develop or align the expectations comprising the brand experience through branding, so that a brand carries the "promise" that a product or service has a certain quality or characteristic which make it special or unique. A brand image may be developed by attributing a "personality" to or associating an "image" with a product or service, whereby the personality or image is "branded" into the consciousness of consumers. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. You're creating the story.


BrandingBranding A brand which is widely known in the marketplace acquires A brand which is widely known in the marketplace acquires brand brand

recognitionrecognition. Where brand recognition builds up to a point where a brand . Where brand recognition builds up to a point where a brand enjoys a mass of positive sentiment in the marketplace, it is said to have enjoys a mass of positive sentiment in the marketplace, it is said to have achieved achieved brand franchisebrand franchise. One goal in brand recognition is the . One goal in brand recognition is the identification of a brand without the name of the company present. identification of a brand without the name of the company present. DisneyDisney has been successful at branding with their particular script font (originally has been successful at branding with their particular script font (originally Walt Disney's signature, but later translated to go.com).Walt Disney's signature, but later translated to go.com).

Brand equity Brand equity measures the total value of the brand to the brand owner, and measures the total value of the brand to the brand owner, and reflects the extent of brand franchise. The term brand name is often used reflects the extent of brand franchise. The term brand name is often used interchangeably with "brand", although it is more correctly used to interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of a brand. In this specifically denote written or spoken linguistic elements of a brand. In this context a "brand name" constitutes a type of context a "brand name" constitutes a type of trademarktrademark, if the brand name , if the brand name exclusively identifies the brand owner as the commercial source of products exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect or services. A brand owner may seek to protect proprietaryproprietary rights in relation rights in relation to a brand name through trademark registration. to a brand name through trademark registration.


The act of associating a product or service with a brand has become part The act of associating a product or service with a brand has become part of of pop culturepop culture. Most products have some kind of brand identity, from . Most products have some kind of brand identity, from common common table salttable salt to to designerdesigner clothes. In non-commercial contexts, the clothes. In non-commercial contexts, the marketing of entities which supply ideas or promises rather than product marketing of entities which supply ideas or promises rather than product and services (eg. and services (eg. political partiespolitical parties or religious organizations) may also be or religious organizations) may also be known as "branding".known as "branding".

Consumers may look on branding as an important Consumers may look on branding as an important value addedvalue added aspect of aspect of products or services, as it often serves to denote a certain attractive products or services, as it often serves to denote a certain attractive quality or characteristic. From the perspective of brand owners, branded quality or characteristic. From the perspective of brand owners, branded products or services also command higher prices. Where two products products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding resemble each other, but one of the products has no associated branding (such as a (such as a genericgeneric, store-branded product), people may often select the , store-branded product), people may often select the more expensive branded product on the basis of the quality of the brand more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.or the reputation of the brand owner.

Advertising spokespersons have also become part of some brands, for Advertising spokespersons have also become part of some brands, for example: example: Mr. WhippleMr. Whipple of of CharminCharmin toilet tissue and toilet tissue and Tony the TigerTony the Tiger of of KelloggKellogg’s.’s.


Brand monopolyBrand monopoly Brand MonopolyBrand Monopoly

In economic terms the "brand" is, in effect, a device to create a "monopoly" In economic terms the "brand" is, in effect, a device to create a "monopoly" - or at least some- or at least some

form of "imperfect competition" - so that the brand owner can obtain some form of "imperfect competition" - so that the brand owner can obtain some of the benefitsof the benefits

which accrue to a monopoly, particularly those related to decreased price which accrue to a monopoly, particularly those related to decreased price competition. In thiscompetition. In this

context, most "branding" is established by promotional means. However,context, most "branding" is established by promotional means. However,

there is also a legalthere is also a legal

dimension, for it is essential that the brand names and trademarks aredimension, for it is essential that the brand names and trademarks are

protected by all meansprotected by all means

available. available.


The monopoly may also be extended, or even created, by patent, The monopoly may also be extended, or even created, by patent, copyright andcopyright and

other sui generis intellectual property regimes (eg: Plant Varieties Act, other sui generis intellectual property regimes (eg: Plant Varieties Act, Design Act, confidentialDesign Act, confidential

means of manufacture (secret recipe) etc).means of manufacture (secret recipe) etc).

In all these contexts, retailers' "own label" brands can be just as In all these contexts, retailers' "own label" brands can be just as powerful. The "brand",powerful. The "brand",

whatever its derivation, is a very important investment for any whatever its derivation, is a very important investment for any organization. organization. RHMRHM (Rank Hovis (Rank Hovis

McDougall), for example, have valued their international brands at McDougall), for example, have valued their international brands at anything up to twenty timesanything up to twenty times

their annual earnings.their annual earnings.


Branding policiesBranding policies

There are a number of possible policies.There are a number of possible policies.

Company nameCompany name Often, especially in the industrial sector, it is just the company's name Often, especially in the industrial sector, it is just the company's name

which is promoted (leading to one of the most powerful statements of which is promoted (leading to one of the most powerful statements of "branding"; the saying, before the company's downgrading, "No-one "branding"; the saying, before the company's downgrading, "No-one ever got fired for buying IBM").ever got fired for buying IBM").

Family brandingFamily branding is a is a marketingmarketing strategy that involves selling several strategy that involves selling several related related productsproducts under one under one brand namebrand name. It is contrasted with . It is contrasted with individual brandingindividual branding in which each product in a in which each product in a portfolioportfolio is given a unique is given a unique identity and brand name.identity and brand name.

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There are often There are often economies of scopeeconomies of scope associated with family associated with family branding since several products can efficiently be branding since several products can efficiently be promotedpromoted with a with a single advertisement or campaign. Family branding facilitates single advertisement or campaign. Family branding facilitates new product introductionsnew product introductions by providing a 'foot-in-the-door' in by providing a 'foot-in-the-door' in potential customers' evoked set. When considering purchasing a potential customers' evoked set. When considering purchasing a new type of product, potential customers will tend to evoke in their new type of product, potential customers will tend to evoke in their minds a product with a familiar brand name. Being a part of this minds a product with a familiar brand name. Being a part of this evoked set could lead to trial purchase, product acceptance, or evoked set could lead to trial purchase, product acceptance, or other advantages.other advantages.

Family branding imposes on the brand owner a greater burden to Family branding imposes on the brand owner a greater burden to maintain consistent quality and maintain consistent quality and brand equitybrand equity. If the quality of one . If the quality of one product in the brand family is compromised, it could reduce sales of product in the brand family is compromised, it could reduce sales of all the others. Family branding should only be done when a all the others. Family branding should only be done when a product lineproduct line consists of products of similar quality. consists of products of similar quality.


An umbrella brand/FAMILY BRANDAn umbrella brand/FAMILY BRAND

Umbrella brandUmbrella brandAn An umbrella brandumbrella brand is a is a brandbrand that covers diverse kinds of products which that covers diverse kinds of products which

are more or less related.are more or less related. It applies also to any company that is identified only by its brand and It applies also to any company that is identified only by its brand and

history. Such a company now only acts as designer and distributor.history. Such a company now only acts as designer and distributor. A company under the umbrella brand designation no longer A company under the umbrella brand designation no longer

manufactures its own product, but its licenses and designs are sold to manufactures its own product, but its licenses and designs are sold to other manufacturers. The most common products to be rebranded are other manufacturers. The most common products to be rebranded are televisions, video cassette recorders, DVD players/recorders, and televisions, video cassette recorders, DVD players/recorders, and portable CD players.portable CD players.

Along similar lines, an umbrella place brand is a brand used by a locality Along similar lines, an umbrella place brand is a brand used by a locality to attract the attention of different kinds of audiences, e.g. incoming to attract the attention of different kinds of audiences, e.g. incoming tourists, investors, students or settlers. tourists, investors, students or settlers.

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Individual brandingIndividual branding

Individual brandingIndividual branding, also called , also called MultiBrandingMultiBranding is the marketing strategy of is the marketing strategy of giving eachgiving each

productproduct in a product in a product portfolioportfolio its own unique its own unique brand namebrand name. This is contrasted . This is contrasted with with familyfamily

brandingbranding in which the products in a in which the products in a product lineproduct line are given the same brand are given the same brand name. Thename. The

advantage of individual branding is that each product has an image and identity advantage of individual branding is that each product has an image and identity that isthat is

unique. This facilitates the unique. This facilitates the positioningpositioning process. That means that there are less process. That means that there are less HaloHalo

effects and one can position all products differently without making trade-offs. effects and one can position all products differently without making trade-offs.

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Derived brandsDerived brands

Derived BrandsDerived Brands

In this case the supplier of a key component, used by a number of suppliers In this case the supplier of a key component, used by a number of suppliers of theof the

end-product, may wish to guarantee its own position by promoting that end-product, may wish to guarantee its own position by promoting that component ascomponent as

a brand in its own right. The most frequently quoted example is Intel (in the a brand in its own right. The most frequently quoted example is Intel (in the PCPC

market, with the slogan 'Intel Inside'), but the sweetener Aspartame used market, with the slogan 'Intel Inside'), but the sweetener Aspartame used much themuch the

same approach (to lock in the soft drinks manufacturers who represented a same approach (to lock in the soft drinks manufacturers who represented a majormajor

market for the product).market for the product).

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Brand developmentBrand development

Brand DevelopmentBrand Development In terms of existing products, brands may be developed in a number of In terms of existing products, brands may be developed in a number of

ways:ways: Brand extensionBrand extensionThe existing strong brand name can be used as a vehicle for new or modified The existing strong brand name can be used as a vehicle for new or modified

products;products;for example, after many years of running just one brand, Coca-Cola launched for example, after many years of running just one brand, Coca-Cola launched

"Diet Coke“"Diet Coke“and "Cherry Coke"; although its subsequent change to its main brand and theand "Cherry Coke"; although its subsequent change to its main brand and theretrenchment to 'Classic Coke' demonstrated some of the problems this may retrenchment to 'Classic Coke' demonstrated some of the problems this may

cause!cause!Procter & Gamble (P&G), in particular, has made regular use of this device, Procter & Gamble (P&G), in particular, has made regular use of this device,

extending itsextending itsstrongest brand names (such as Fairy Soap) into new markets (the very strongest brand names (such as Fairy Soap) into new markets (the very

successful Fairysuccessful FairyLiquid, and more recently Fairy Automatic).Liquid, and more recently Fairy Automatic).

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Multi brandsMulti brands

MultibrandsMultibrands Alternatively, in a market that is fragmented amongst a number of Alternatively, in a market that is fragmented amongst a number of

brands a supplier can choose deliberately to launch totally new brands brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering brand in competition with its first, in order to pre-empt others entering the market.the market.

Individual brand names naturally allow greater flexibility by permitting a Individual brand names naturally allow greater flexibility by permitting a variety of different products, of differing quality, to be sold without variety of different products, of differing quality, to be sold without confusing the consumer's perception of what business the company is confusing the consumer's perception of what business the company is in or diluting higher quality products.in or diluting higher quality products.

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BrandingBranding

Once again, Procter & Gamble is a leading exponent of this philosophy, running Once again, Procter & Gamble is a leading exponent of this philosophy, running as many as ten detergent brands in the US market. This also increases the as many as ten detergent brands in the US market. This also increases the total number of "facings" it receives on supermarket shelves. Sara Lee, on the total number of "facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses it to keep the very different parts of the business separate --other hand, uses it to keep the very different parts of the business separate --from Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel from Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for its budget chain (and business, Marriott uses the name Fairfield Inns for its budget chain (and Ramada uses Rodeway for its own cheaper hotels).Ramada uses Rodeway for its own cheaper hotels).

Cannibalism is a particular problem of a "multibrand" approach, in which the Cannibalism is a particular problem of a "multibrand" approach, in which the new brand takes business away from an established one which the new brand takes business away from an established one which the organization also owns. This may be acceptable (indeed to be expected) if organization also owns. This may be acceptable (indeed to be expected) if there is a net gain overall. Alternatively, it may be the price the organization is there is a net gain overall. Alternatively, it may be the price the organization is willing to pay for shifting its position in the market; the new product being one willing to pay for shifting its position in the market; the new product being one stage in this process.stage in this process.


Critically examine the various Critically examine the various levels of a product and its levels of a product and its componentscomponents



THE VARIOUS LEVELS OF A PRODUCT: - (Adapted from the Chattered THE VARIOUS LEVELS OF A PRODUCT: - (Adapted from the Chattered Institute of Marketing (CIM) - Institute of Marketing (CIM) -

Core product

Actual/Basic product

Expected product

Augmented product

Potential product

PackagingLabellingBrandingStylingQuality

After sales services e.g. Advise, guaranteeRepairs, installation

Any future augmentation

Intangible product: ideas

Tangible product

What customers Expect to find from The product


Levels of a product –Levels of a product – Adpapted from Philiip Kotler – Principles Adpapted from Philiip Kotler – Principles of marketing – 4of marketing – 4thth European Edition European Edition

An alternative way of looking at the levels of a product.An alternative way of looking at the levels of a product.

Core benefit or service

Packaging

DeliveryAnd credit

After saleservice

Quality

Brandname

features

Styling

Installation

Warranty

Core product

Tangibleproduct

Augmentedproduct


The higher the price the The higher the price the lower the demand and the lower the demand and the lower the price the higher lower the price the higher the demand – discuss:the demand – discuss:


Price determines revenue and Price determines revenue and revenue determines price revenue determines price discussdiscuss


Distinguish between price-Distinguish between price-skimming and market skimming and market penetration pricing strategies:penetration pricing strategies:


Write short notes on the Write short notes on the following pricing strategies: following pricing strategies:

Cost based pricingCost based pricing Market based pricingMarket based pricing Competitor based pricingCompetitor based pricing Mark-up/mark-down pricingMark-up/mark-down pricing Promotional pricingPromotional pricing


Price is the most important Price is the most important element of the marketing element of the marketing mix - discuss: mix - discuss:


Explain the factors affecting Explain the factors affecting the pricing of an the pricing of an organisation’s products:organisation’s products:


Explain the factors influencing the pricing Explain the factors influencing the pricing decisions of the marketing management.decisions of the marketing management.


Q1. Explain five pricing Q1. Explain five pricing strategies that can be used by strategies that can be used by the marketing manager to the marketing manager to price products.price products. Competitor-based pricingCompetitor-based pricing Market or demand based pricingMarket or demand based pricing Cost-based pricingCost-based pricing Penetration pricingPenetration pricing Price-skimming.Price-skimming.Other pricing strategies includes:Other pricing strategies includes:psychological, Product-bundle, Captive product, Mark-psychological, Product-bundle, Captive product, Mark-

up/down pricing among others.up/down pricing among others.


Explain the distributionExplain the distribution channel in consumer channel in consumer and industrial markets: and industrial markets:


Producer

Producer

RetailerProducer

Retailer

Consumer

Consumer

Wholesaler

Agent

Consumer

Producer Wholesaler Retailer Consumer

Producer Business Customer

Producer Business distributor Business Customer

Producer Sales branch Business customer

Producer Sales branch Business distributor Business customer

DISTRIBUTION CHANNEL IN ORGANISATIONAL MARKET

DISTRIBUTION CHANNEL IN CONSUMER MAREKT


Explain what is supply chain Explain what is supply chain management with the help of management with the help of an example from any an example from any organisation:organisation:


Cotton producer

DistributorsTextile

Industry/manufacturer

Agents Wholesalers Retailers

Sugar/flourBanana p

Distributor Producer Agent Wholesaler Retailer

Hides and skinproducer

Leatherproducer

distributor Shoe manufacturer Wholesaler Retailer

Accessories producer

Aircraft producer e.g

BoeingWholesaler Consumer

Iron and steelTyre producers

Distributor Car producer Wholesaler Retailer Consumers

Flour producer Distributor Producer Agent Wholesaler Retailer

Example of a shoe manufacturer

Example of cloths manufacturer

Example of biscuit manufacturer

Example of bread manufacturer

Example of car manufacturer

Example of aircraft manufacturer

ConsumersAgent

Consumers

Consumers

Consumer


Q1. Explain the elements of the promotional Q1. Explain the elements of the promotional mix available to marketing managers for mix available to marketing managers for the effective promotion of their products the effective promotion of their products and services:and services:


THE Promotion MixTHE Promotion Mix KEY ELEMENTS OF THE PROMOTIONAL KEY ELEMENTS OF THE PROMOTIONAL

MIXMIX

Advertising

Sales promotion

Public relations

Direct Marketing

Promotional mix Integrated in a campaign


Q2. Explain the advantages Q2. Explain the advantages and disadvantages of the and disadvantages of the various methods of promotion various methods of promotion and advertisementand advertisement


Above the line advertAbove the line advert AdvantagesAdvantages DisadvantagesDisadvantages

TelevisionTelevision: Terrestrial, satellite, : Terrestrial, satellite, cable and interactive: Local, cable and interactive: Local, national and International.national and International.

Can provide movement/colour/sound and Can provide movement/colour/sound and emotion.emotion.It is an intrusive medium.It is an intrusive medium.Viewers can identify with situations in adverts.Viewers can identify with situations in adverts.Mass, regional or specific coverage available.Mass, regional or specific coverage available.

Short time of adverts restricts Short time of adverts restricts information-passing.information-passing.Can be repetitive which will Can be repetitive which will result in boredom for viewer.result in boredom for viewer.Costly/time consuming to Costly/time consuming to produce live advertsproduce live advertsAdverts shown when many Adverts shown when many supply points are closed.supply points are closed.Adverts not retained for Adverts not retained for review(consider home videos)review(consider home videos)Can be difficult for viewer to Can be difficult for viewer to respond(consider tele-respond(consider tele-marketing)marketing)

Radio:Radio: Local, national and Local, national and international.international.

Airtime is not very expensive.Airtime is not very expensive.Offers sound effects and emotion.Offers sound effects and emotion.Versatile in location (Portable)Versatile in location (Portable)It is intrusive.It is intrusive.

Non-visualNon-visualTransmit only non complex infoTransmit only non complex infoNeeds repetitive advert to Needs repetitive advert to ensure coverage.ensure coverage.High risk of listener intolerance High risk of listener intolerance due to repetition. due to repetition.

Press AdvertisingPress Advertising: It covers all : It covers all printed papers; Newspapers, printed papers; Newspapers, Magazines and directories. It may be Magazines and directories. It may be national, regional, specialist, trade national, regional, specialist, trade or general publications.or general publications.

High circulation with good opportunity to High circulation with good opportunity to see(OTS).see(OTS).Audience can be easily identifiedAudience can be easily identifiedInformation can be saved and retrievedInformation can be saved and retrievedAdvantages can include response coupons.Advantages can include response coupons.Relatively low costs involved(both preparation Relatively low costs involved(both preparation and advert space)and advert space)

No sound and MovementNo sound and MovementIf too many adverts, some will If too many adverts, some will be missed.be missed.Magazines require long lead Magazines require long lead time.time.Printing only as good as the Printing only as good as the staff involved.staff involved.


MediumMedium AdvantagesAdvantages Limitations/disadvantagesLimitations/disadvantages

NewspaperNewspaperss

Flexibility;timeliness; local market Flexibility;timeliness; local market coverage;broad acceptance; high coverage;broad acceptance; high believabilitybelievability

Short life; poor reproduction quality; small pass-along Short life; poor reproduction quality; small pass-along audience.audience.

TelevisionTelevision Good mass-market coverage; low Good mass-market coverage; low cost per exposure; combines sight, cost per exposure; combines sight, sound and motion; appealing to the sound and motion; appealing to the senses.senses.

High absolute cost; high clutter; fleeting exposure; less High absolute cost; high clutter; fleeting exposure; less audience selectivity.audience selectivity.

RadioRadio Good local acceptance; high Good local acceptance; high geographic and demographic geographic and demographic selectivity; low cost.selectivity; low cost.

Audio presentation only; low attention ( the ‘half-heard’ Audio presentation only; low attention ( the ‘half-heard’ medium); fleeting exposure; fragmented audiencemedium); fleeting exposure; fragmented audience

MagazinesMagazines High geographic and demographic High geographic and demographic selectivity; credibility and prestige; selectivity; credibility and prestige; high-quality reproduction; long life; high-quality reproduction; long life; good pass-along readership.good pass-along readership.

Long ad purchase lead time; high cost; some waste Long ad purchase lead time; high cost; some waste circulation; no guarantee of position.circulation; no guarantee of position.

Direct mailDirect mail High audience selectivity; flexibility; High audience selectivity; flexibility; no ad competition within the same no ad competition within the same medium; allows personalization.medium; allows personalization.

Relatively high cost per exposure; Relatively high cost per exposure;

‘‘Junk mail’ image.Junk mail’ image.

OutdoorOutdoor Flexibility; high repeat exposure; Flexibility; high repeat exposure; low cost; low message competition; low cost; low message competition; good positional selectivity.good positional selectivity.

No audience selectivity; creative limitations.No audience selectivity; creative limitations.

InternetInternet High selectivity; low cost; High selectivity; low cost; immediacy; interactive capabilities.immediacy; interactive capabilities.

Small, demographically skewed audience; relatively Small, demographically skewed audience; relatively low impact; audience controls exposure.low impact; audience controls exposure.


Q3. Explain what is sales Q3. Explain what is sales promotion and discuss the promotion and discuss the various consumer sales various consumer sales promotion tools that can be promotion tools that can be used by marketing used by marketing management to target management to target consumers.consumers.


SALES PROMOTION:SALES PROMOTION: It is a short-term incentive to encourage purchase or sales of a product or service.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 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. 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 Whereas advertising offers reasons to buy a product or service, sales promotion offers

reasons that would achieve immediate sales.reasons that would achieve immediate sales. Sales promotion seeks to motivate the customer to buy now.Sales promotion seeks to motivate the customer to buy now. Sales promotion includes a wide variety of promotion tools designed to stimulate earlier Sales promotion includes a wide variety of promotion tools designed to stimulate earlier

or stronger market response. or stronger market response. These tools are used by many organizations-manufacturers, distributors, retailers, trade These tools are used by many organizations-manufacturers, distributors, retailers, trade

associations and non-profit institutions-and may be targeted towards the consumer or associations and non-profit institutions-and may be targeted towards the consumer or final buyer, business customers, the trade or retailer and the company’s sales force.final buyer, business customers, the trade or retailer and the company’s sales force.

Consumer promotionConsumer promotion include money-off, coupons, premiums, contests and others. include money-off, coupons, premiums, contests and others. Trade promotionTrade promotion range from special discounts, free goods and loyalty bonuses to range from special discounts, free goods and loyalty bonuses to

training.training. Business promotion Business promotion include many of the same tools used for consumer or trade include many of the same tools used for consumer or trade

promotions such as conventions and trade shows, as well as sales contests.promotions such as conventions and trade shows, as well as sales contests. Sales force promotions include bonuses, commissions, free gifts and competitions.Sales force promotions include bonuses, commissions, free gifts and competitions.


SALES PROMOTIONSALES PROMOTIONMAJOR SALES PROMOTION TOOLS:MAJOR SALES PROMOTION TOOLS:

CONSUMER PROMOTION TOOLS:CONSUMER PROMOTION TOOLS:1.1. Samples:Samples: Offers to consumers of a trial amount of a product Offers to consumers of a trial amount of a product

2.2. Coupons:Coupons: Certificates that give buyers a saving when they purchase a product Certificates that give buyers a saving when they purchase a product

3.3. Cash refund offers (rebates):Cash refund offers (rebates): Offers to refund part of the purchase price of a Offers to refund part of the purchase price of a product to consumers who send a ‘proof of purchase’ to the manufacturerproduct to consumers who send a ‘proof of purchase’ to the manufacturer

4.4. Price packs: Price packs: Reduced prices that are marked by the producer directly on the Reduced prices that are marked by the producer directly on the label or packagelabel or package

5.5. Premiums: Premiums: Goods offered either free or at low cost as an incentive to buy a Goods offered either free or at low cost as an incentive to buy a product.product.

6.6. Advertising specialities: Advertising specialities: Useful articles imprinted with an advertiser’s name, Useful articles imprinted with an advertiser’s name, given as gifts to consumers.given as gifts to consumers.

7.7. Patronage rewards: Patronage rewards: Cash or other awards for the regular use of a certain Cash or other awards for the regular use of a certain company’s products or services.company’s products or services.

8.8. Point-of-purchase (POP) promotions: Point-of-purchase (POP) promotions: Displays and demonstrations that take Displays and demonstrations that take place at the point of purchase or sale.place at the point of purchase or sale.

9.9. Competitions, sweepstakes, lotteries and games: Competitions, sweepstakes, lotteries and games: promotions that offer promotions that offer customers the chance to win something – cash, goods or trips – by luck or extra customers the chance to win something – cash, goods or trips – by luck or extra effort.effort.


Q4. Explain the importance of Q4. Explain the importance of public relations activities to public relations activities to any organisation of your any organisation of your choice.choice.


What is public relations and What is public relations and what are some of the public what are some of the public relations activities an relations activities an organisation can use to organisation can use to maintain good relation with maintain good relation with the publicthe public


PUBLIC RELATIONSPUBLIC RELATIONS1.This is a planned, sustained and deliberate effort by an1.This is a planned, sustained and deliberate effort by an

organization to maintain a good relationship with the public.organization to maintain a good relationship with the public.

2.Public relations means building good relations with the2.Public relations means building good relations with the

company’s various publics by obtaining favorable Publicity,company’s various publics by obtaining favorable Publicity,

building up a good ‘corporate image’, handling or heading offbuilding up a good ‘corporate image’, handling or heading off

unfavorable rumours, Stories and events. Major PR tools includeunfavorable rumours, Stories and events. Major PR tools include

press relations, product publicity, corporate communications,press relations, product publicity, corporate communications,

lobbying and counselling:lobbying and counselling:


Public relations is another mass-promotion technique. This concernsPublic relations is another mass-promotion technique. This concerns

Building good relations with the company’s various publics by obtainingBuilding good relations with the company’s various publics by obtaining

Favourable publicity, building up a good ‘corporate image' and handlingFavourable publicity, building up a good ‘corporate image' and handling

or heading off unfavourable rumours, stories and events. Public relationsor heading off unfavourable rumours, stories and events. Public relations

(PR) departments(PR) departments

Perform any or all of the following functions:Perform any or all of the following functions:

1.1. Press relations or press agency: Creating and placing newsworthy Press relations or press agency: Creating and placing newsworthy information in the news media to attract attention to a person, product or information in the news media to attract attention to a person, product or service.service.

2.2. Product publicity: Publicising specific productsProduct publicity: Publicising specific products

3.3. Public affairs: Building and maintaining local, national and international Public affairs: Building and maintaining local, national and international relations.relations.

4.4. Lobbying: Building and maintaining relations with legislators and Lobbying: Building and maintaining relations with legislators and government officials to influence legislation and regulation.government officials to influence legislation and regulation.

5.5. Investor relations: Maintaining relationships with shareholders and others Investor relations: Maintaining relationships with shareholders and others in the financial community.in the financial community.

6.6. Development: Public relations with donors or members of non-profit Development: Public relations with donors or members of non-profit organisations to gain financial or volunteer support.organisations to gain financial or volunteer support.


Public relations is used to promote products, people, places, ideas, Public relations is used to promote products, people, places, ideas, activities, organisations and even nations.activities, organisations and even nations.

Trade associations have used public relations to rebuild interest in decliningTrade associations have used public relations to rebuild interest in declining

commodities. Nations use public relations to attract more tourists, foreigncommodities. Nations use public relations to attract more tourists, foreign

Investment and international support.Investment and international support. The government uses public relations to sensitize the public about the The government uses public relations to sensitize the public about the

consumptionconsumption

of dangerous products such as cigarettes and alcohol.of dangerous products such as cigarettes and alcohol. The government also uses public relations to make the public to protectThe government also uses public relations to make the public to protect

them selvesthem selves

from diseases e.g. from diseases e.g. AIDSAIDS. Steal in this light, the government uses PR to educate . Steal in this light, the government uses PR to educate the public about precautionary measures to take in so far as the public about precautionary measures to take in so far as Bird Flu VirusBird Flu Virus is concerned.is concerned.

Pressure groups such as the Pressure groups such as the Food Standards AgencyFood Standards Agency also uses the PR to also uses the PR to inform customers about those harmful products which can damage their inform customers about those harmful products which can damage their health.health.


PUBLIC RELATIONSPUBLIC RELATIONSMAJOR PUBLIC RELATIONS TOOLS: MAJOR PUBLIC RELATIONS TOOLS:

PR professionals use several tools. One essential tool is PR professionals use several tools. One essential tool is newsnews . . PR professionals find or create favourable newsPR professionals find or create favourable news

about the company and its products or people. Sometimes news about the company and its products or people. Sometimes news stories occur naturally. At other times, the PR person canstories occur naturally. At other times, the PR person can

suggest events or activities that would create news.suggest events or activities that would create news. Speeches also create product and company publicity. Speeches also create product and company publicity.

Increasingly, company executives must field questions from the Increasingly, company executives must field questions from the media or give talks at trade associations or sales meetings. media or give talks at trade associations or sales meetings. These events can either build or hurt the company’s image.These events can either build or hurt the company’s image.

Another common PR tool is special news, ranging from news Another common PR tool is special news, ranging from news conferences, press tours, grand openings and firework displays conferences, press tours, grand openings and firework displays to laser shows, hot-air balloon releases, multimedia to laser shows, hot-air balloon releases, multimedia presentations and star-studded spectaculars, or educational presentations and star-studded spectaculars, or educational programmes designed to reach and interest target publics.programmes designed to reach and interest target publics.


Public relations people also prepare written material to reach and influence Public relations people also prepare written material to reach and influence their target markets. These materials include annual reports, brochures, their target markets. These materials include annual reports, brochures, articles and company newsletter and magazines.articles and company newsletter and magazines.

Audiovisual materials such as films, slide-and-sound programmes and video Audiovisual materials such as films, slide-and-sound programmes and video and audio cassettes, are being used increasingly as communication tools.and audio cassettes, are being used increasingly as communication tools.

Corporate-identity materials also help create a corporate identity that the Corporate-identity materials also help create a corporate identity that the public immediately recognises. Logos, stationery, brochures, signs, business public immediately recognises. Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms and even company cars and trucks forms, business cards, buildings, uniforms and even company cars and trucks make effective marketing tools when they are attractive, distinctive and make effective marketing tools when they are attractive, distinctive and memorable.memorable.

Finally, companies might improve goodwill by contributing money and time to Finally, companies might improve goodwill by contributing money and time to public service activities: campaigns to raise funds for worthy causes- for public service activities: campaigns to raise funds for worthy causes- for example, to fight illiteracy, AIDS, Bird Flu, Tuberculosis, cancer; support the 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 work of a charity, or assist the aged and handicapped- help to raise public recognition.recognition.

Sponsorship is any vehicle through which corporations gain public relations Sponsorship is any vehicle through which corporations gain public relations exposure. Corporate sponsorships have become an important promotional exposure. Corporate sponsorships have become an important promotional tool for companies looking to lift their brand image, or introduce new product tool for companies looking to lift their brand image, or introduce new product lines or services. Worldwide spending on sponsorships totalled $24bn in 2002, lines or services. Worldwide spending on sponsorships totalled $24bn in 2002, an annual increase of 3.4 percent according to a Chicago based research an annual increase of 3.4 percent according to a Chicago based research company (IEG).company (IEG).


Explain the meaning of Direct Explain the meaning of Direct marketing, its role and marketing, its role and importance of direct importance of direct marketing in the promotional marketing in the promotional mix of a company:mix of a company:

Direct marketing can be defined as directDirect marketing can be defined as direct

communications with carefully targetedcommunications with carefully targeted

individual customers to obtain an immediateindividual customers to obtain an immediate

response.response.


DIRECT MARKETINGDIRECT MARKETINGTHE BENEFITS OF DIRECT MARKETING TOTHE BENEFITS OF DIRECT MARKETING TO

THE SELLER: THE SELLER: Direct marketing also yields many benefits to sellers: Direct marketing also yields many benefits to sellers:

1.1. Direct marketing is a powerful tool for customer relationship building: Direct marketing is a powerful tool for customer relationship building:

2.2. Direct marketing gives sellers access to buyers that they could not reach Direct marketing gives sellers access to buyers that they could not reach through other channels. For example, the internet provides access to global through other channels. For example, the internet provides access to global markets that might otherwise be out of reach.markets that might otherwise be out of reach.

3.3. Finally, direct marketing can offer sellers a low-cost, fast and efficient Finally, direct marketing can offer sellers a low-cost, fast and efficient alternative for reaching their markets. For example, direct marketing has alternative for reaching their markets. For example, direct marketing has grown rapidly in B2B marketing, partly in response to the ever-increasing grown rapidly in B2B marketing, partly in response to the ever-increasing costs of marketing through the sales force.costs of marketing through the sales force.


DIRECT MARKETINGDIRECT MARKETINGFORMS OF DIRECT MARKETINGFORMS OF DIRECT MARKETING

Telephone marketingTelephone marketing

Direct-mail marketingDirect-mail marketing

Catalogue marketingCatalogue marketing

Direct-response television marketing Direct-response television marketing

Integrated direct marketingIntegrated direct marketing


THE BENEFITS OF DIRECT MARKETING TO THETHE BENEFITS OF DIRECT MARKETING TO THECONSUMERCONSUMERDirect marketing benefits buyers in many ways:Direct marketing benefits buyers in many ways:1.1. First it is convenientFirst it is convenient: from the comfort of their homes or offices, customers can: from the comfort of their homes or offices, customers canbrowse mail catalogues or sellers’ websites at any time of the day or night. Buying is easybrowse mail catalogues or sellers’ websites at any time of the day or night. Buying is easyand private. Customer confront fewer buying hassles and do not have to face salespeopleand private. Customer confront fewer buying hassles and do not have to face salespeopleor open themselves up to persuasion and emotional pitches. Business Customers can learnor open themselves up to persuasion and emotional pitches. Business Customers can learnabout available products and services without waiting for and tying up time with salesabout available products and services without waiting for and tying up time with salespeople.people.2. 2. Direct Marketing often gives shoppers greater product access and selection:Direct Marketing often gives shoppers greater product access and selection: For example, For example,the world the limit for web. Cyber stores such as Amazon, CDNow and others can offer anthe world the limit for web. Cyber stores such as Amazon, CDNow and others can offer analmost unlimited selection compared to the more meagre assortments of counterparts in thealmost unlimited selection compared to the more meagre assortments of counterparts in thebricks- and –mortar world. Beyond a broader selection of sellers and products, online andbricks- and –mortar world. Beyond a broader selection of sellers and products, online andInternet channels also give buyers access to a wealth of comparative information,Internet channels also give buyers access to a wealth of comparative information,information about companies, products and competitors, at home and around the globe.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 mostGood websites often provide more information in more useful forms than even the mostSolicitous salesclerk can. Amazon. COM and CDNow, for example, offer best-seller lists andSolicitous salesclerk can. Amazon. COM and CDNow, for example, offer best-seller lists andreviews:reviews:3. 3. Finally, direct marketing- especially online buyingFinally, direct marketing- especially online buying – is interactive and immediate. – is interactive and immediate.Customers can often Interact with the sellers by phone or on the seller’s website to createCustomers can often Interact with the sellers by phone or on the seller’s website to createexactly the configuration of information, products or services they desire, then order themexactly the configuration of information, products or services they desire, then order themon the spot. Furthermore, the internet and other forms of direct marketing giveon the spot. Furthermore, the internet and other forms of direct marketing givecustomers a greater measure and sense of control. For example, a rising proportion of carcustomers a greater measure and sense of control. For example, a rising proportion of carbuyers ‘shop online’, arming themselves with information about car models and dealerbuyers ‘shop online’, arming themselves with information about car models and dealercosts before showing up at a dealership.costs before showing up at a dealership.


Q5. Explain the main Q5. Explain the main advertising decisions the advertising decisions the marketing manager will have marketing manager will have to make before advertising. to make before advertising.


Main Advertising DecisionsMain Advertising Decisions

Objectives setting

Communication

Objectives

Sales Objectives

Budget decisions

Advertising strategy

Campaignevaluation

Messagedecision

Media decision

Affordable approach

Percentage of sales

Competitive parity

Objective and task

Message strategy

Message execution

Reach, frequency,Impact

Main media types

Specific media vehicles

Media timing

CommunicationImpact

Sales impact


Explain the soft elements of Explain the soft elements of the marketing mix and their the marketing mix and their validity in making marketing validity in making marketing programmes successfulprogrammes successful


Discuss the stages of the Discuss the stages of the marketing planning process:marketing planning process: Business Mission/corporate objectivesBusiness Mission/corporate objectives

Marketing auditMarketing audit

SWOT analysisSWOT analysis

Business ObjectivesBusiness Objectives

Marketing objectivesMarketing objectives

Marketing strategiesMarketing strategies

Marketing tactics / marketing mix decisionsMarketing tactics / marketing mix decisions

ImplementationImplementation

Monitoring and controlMonitoring and control


Explain the components of Explain the components of a marketing plana marketing plan1.1. EXECUTIVE SUMMARYEXECUTIVE SUMMARY2.2. BUSINESS MISSIONBUSINESS MISSION3.3. MARKTING AUDITINGMARKTING AUDITING4.4. SWOT ANALYSISSWOT ANALYSIS5.5. MARKETING OBJECTIVESMARKETING OBJECTIVES6.6. BUSINESS OBJECTIVESBUSINESS OBJECTIVES7.7. MARKETING STRATEGIESMARKETING STRATEGIES8.8. BUSINESS STRATEGIESBUSINESS STRATEGIES9.9. MARKETING MIX MARKETING MIX 10.10. IMPLEMENTATION IMPLEMENTATION 11.11. EXPECTED RESULTEXPECTED RESULT12.12. MONITORING & CONTROLLINGMONITORING & CONTROLLING


With the help of examples With the help of examples from any organisation of your from any organisation of your choice explain the SWOT choice explain the SWOT analysisanalysis


SWOT ANALYSIS of Company XSWOT ANALYSIS of Company X

STRENGTHSTRENGTHHigh profitHigh profitHigh SalesHigh SalesHigh Market shareHigh Market shareHigh product qualityHigh product qualityMany product linesMany product linesHigh staff moraleHigh staff moraleHigh staff motivationHigh staff motivationNew technologyNew technologyHigh managerial abilityHigh managerial abilityTechnical expertiseTechnical expertiseMachineryMachineryEconomies of scaleEconomies of scaleGood mission statementGood mission statementGood customer serviceGood customer serviceNew product developmentNew product development

WEAKNESSESWEAKNESSESLow profitLow profitLow SalesLow SalesLow Market shareLow Market shareLow product qualityLow product qualityLimited product linesLimited product linesLow staff moraleLow staff moraleLow staff motivationLow staff motivationLack of technological developmentLack of technological developmentNo technical expertiseNo technical expertiseInsufficient machinery for productionInsufficient machinery for productionDiseconomies of scaleDiseconomies of scalePoor missionPoor missionPoor customer servicePoor customer service

OPPORTUNITIESOPPORTUNITIESMarket expansionMarket expansionReduction of taxesReduction of taxesDeregulation or reduction of legislationDeregulation or reduction of legislationNew market (emerging markets)New market (emerging markets)Good economic conditionsGood economic conditionsGood social conditionsGood social conditionsStable political, social, economic and ecological environmentStable political, social, economic and ecological environmentDecline in competitionDecline in competition

THREATSTHREATSHigh competitionHigh competitionInflationInflationLegislationLegislationHigh taxesHigh taxesNatural disasters e.g Hurricanes, Tsunami, Flood, Natural disasters e.g Hurricanes, Tsunami, Flood, Landslide, Earthquakes and TornadoesLandslide, Earthquakes and TornadoesPolitical instability: warsPolitical instability: warsHigh unemploymentHigh unemploymentHigh interest ratesHigh interest rates


Explain the marketing Explain the marketing and Business and Businessstrategies available for usagestrategies available for usage by marketing managers by marketing managers


MARKETING STRATEGIESMARKETING STRATEGIESPORTERS GENERIC STRATEGY MODELPORTERS GENERIC STRATEGY MODEL

Stuck with no clear strategy

Differentiation

Cost leadership

Focus


STRATEGIESSTRATEGIESANSOFF MATRIXANSOFF MATRIX

MARKET MARKET PENETRATIONPENETRATION

PRODUCT PRODUCT DEVELOPMENTDEVELOPMENT

MARKET MARKET DEVELOPMENTDEVELOPMENT

DIVERSIFICATIONDIVERSIFICATION

Existing New

Existing

New


MARKETING StrategiesMARKETING Strategies

MARKETING MIX

Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3

MARKETING MIX Whole market

MARKETING MIX 2

MARKETING MIX 1

MARKETING MIX 3

Concentrated strategy/marketing

Differentiated strategy/marketing

Undifferentiated strategy/marketing


Marketing mix strategiesMarketing mix strategies

Product strategiesProduct strategies Pricing strategiesPricing strategies Placing strategiesPlacing strategies Promotion strategiesPromotion strategies


ATTACK STRATEGIESATTACK STRATEGIES

Direct challenge – differential advantage Direct attack – distinctive competence Direct attack – market share Flank attack Encirclement Bypass Guerrilla


DEFENSE STRATEGIESDEFENSE STRATEGIES

Position defense Pre-emptive defense Counter-offensive Mobile defense Flanking defense Contraction defense By-pass


Explain the Explain the marketing environmental marketing environmental factors affecting businessesfactors affecting businesses


‘‘The marketing environment is made up of the actors The marketing environment is made up of the actors and forces external to the marketing management and forces external to the marketing management function of the firm that impinge on the marketing function of the firm that impinge on the marketing management’s ability to develop and maintain management’s ability to develop and maintain successful transactions with its customers’.successful transactions with its customers’.

The environment is made up of the factors that affects The environment is made up of the factors that affects business ability to produce and sell goods and service.business ability to produce and sell goods and service.

The environment affects businessesThe environment affects businesses All business whether large or small are affected by the All business whether large or small are affected by the

environment.environment. The environmental factors are known as the PESTEL The environmental factors are known as the PESTEL

or PEST some call it the SLEPT or LEPEST analysis.or PEST some call it the SLEPT or LEPEST analysis.


THE MARKETING ENVIRONMENTTHE MARKETING ENVIRONMENT

THE COMPANY AND ITS

ENVIRONMENT

MICRO ENVIRONMENT

MACRO ENVIRONMENT

CompanyManagement/BODShareholdersEmployees

Marketing IntermediariesSuppliersDistributors/transportersMediaRetailersWholesalersAgents/brokers

Financial IntermediariesBanksCredit InstitutionsBuilding SocietiesInsurance companies

Customers

Local communityPressure groups

Think-tank consultancy

Political

Economic Social DemographicSocial ClassReference groupsHealthEducationCommunicationCulture

Technological

Ecological

Legal

Unemployment, wages, Interest rates, Tax, deflation, trade cycle, exchange rates, Energy prices economic growth Per Capita Income, competitors

GDP,GNP,NI,Employment,

Inflation,

PolusionClimate changeScarcity of oil

Natural disasters

Recycling

Polusion law ,Alcohol law,consumer protection lawEmployment law, product safety law Human rights law, Business law

Internet, digital, ATM EPSS, mobile, SMS,

Government policies Rules and regulationsLaws, taxes, political stability/instability,regime in government

Law firm


The micro-environment is that part of the The micro-environment is that part of the environment which impacts directly on a environment which impacts directly on a company, such as suppliers and distributors. company, such as suppliers and distributors. A company may deal directly with some of A company may deal directly with some of these (e.g. its current customers and these (e.g. its current customers and suppliers), while others exist with whom there suppliers), while others exist with whom there is currently no direct contact, but could is currently no direct contact, but could nevertheless influence its policies (e.g. nevertheless influence its policies (e.g. potential customers, government regulators, potential customers, government regulators, and potential competitors). Similarly, an and potential competitors). Similarly, an organisation’s competitors could have a direct organisation’s competitors could have a direct effect on its market position and form part of effect on its market position and form part of the micro environment.the micro environment.


THE ENVIRONMENTTHE ENVIRONMENT

ENVIRONMENTAL FACTORS

Political

Economic Social•Demographic•Social Class•Reference groups•Health•Education•Communication•Culture

Technological

EcologicalLegal

• Unemployment, • wages,• Interest rates,• Tax,• deflation,• trade cycle, • exchange rates, • Energy prices • economic growth• Per Capita Income,• competitors•Industries

•GDP,GNP,NI,•Employment,

•Inflation,

•Pollution•Climate change•Scarcity of oil

•Natural disasters•Recycling

•Alcohol law,•consumer protection law•Employment law,• product safety law •Human rights law, •Business law•Environmental protection law (Pollution law)•Equal opportunity law•Law of contract.•Common/statute law

•Internet, •digital, •ATM• APSS, •mobile,• SMS,•New tech

• Government policies• Rules and regulations•taxes,• political stability/instability,•regime in government

THE MACRO--- ENVIRONMENT PESTEL


Critically examine the Critically examine the influence of the Demographic influence of the Demographic factor to the implementation factor to the implementation of the marketing strategy:of the marketing strategy:


Explain how the environment Explain how the environment influence marketing strategy:influence marketing strategy:


Explain the significance of Explain the significance of understanding cultural understanding cultural differences in the marketing of differences in the marketing of products:products:


Explain how education, health Explain how education, health and communication can affect and communication can affect marketing activities: marketing activities:


With the help of examples, With the help of examples, explain how political/legal explain how political/legal factors can affect marketing factors can affect marketing acitivities:acitivities:


Explain how inflation and Explain how inflation and unemployment can affect unemployment can affect marketing activities:marketing activities:


Explain how the outbreak of Explain how the outbreak of an epidermic might hinder an epidermic might hinder marketing activities:marketing activities:


Explain how the cultural Explain how the cultural environment can affect environment can affect businessesbusinesses


With the aid of examples, With the aid of examples, explain how the Demographic explain how the Demographic environment can affect environment can affect businesses.businesses.


Explain the internal Explain the internal environment and how its environment and how its vital in an organizationvital in an organization


Explain the micro Explain the micro environmental factors and environmental factors and show how it affects show how it affects businesses.businesses.


With the aid of With the aid of examples explain the methods examples explain the methods businesses can use to segmentbusinesses can use to segment the market: the market:


Demographic:Demographic: age,gender,income,occupation, age,gender,income,occupation, marital status and Life cyclemarital status and Life cycle

GeographicGeographic:: regions, counties, nations, cities, town, regions, counties, nations, cities, town, villages and continents.villages and continents.

Geo-demographicGeo-demographic:: Segmentation according to Segmentation according to geography and demography. This is used by geography and demography. This is used by ACORN:ACORN: The post office also uses this.The post office also uses this.

Psychographic:Psychographic: social class and perception of social class and perception of customers.customers.

Behaviour:Behaviour: User status, usage rate, usage occasion, User status, usage rate, usage occasion, loyalty status and purchase rate.loyalty status and purchase rate.


Market SegmentationMarket Segmentation

Male

(0-5years)

Male ( 6-18years)

Male(19-45 years)

Male(45-65years)

Male(66+)

Female (0-5years)

Female(6-18years)

Female(19-45years)

Segment 1 Segment 2Segm

ent 3

Segm

ent 4

Segment 5

Segment 6

Segment 7

Segm

ent 8


Market segmentationMarket segmentation

Upper class

Middle class

Lower class

High income

Moderate income

Low income

Regions(West Midlands)

Africa

Cities

London

TownsDudley

Single

Dependent

Married

Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3

Segment 1

Segment 2

Segment 3


Examples of how businesses Examples of how businesses can segment the market:can segment the market:

Example of how current accounts can be segmented by BARCLAYS BANK----PLUS other segmentation methods

NEXT SLIDE


Account type 1

Account type 2

Account type 3

Account type 4

Account type 5

Account type 6

Account type 7

Account type 8

Student Account

Children’s account (7-19 years)

Joint Account Business Account

Young worker Account

Young Adult account(20-45)

Older adult account (46-65)

Pensioners account

Savings Account type 1








Student Savings Account

Children’s Savings account (7-19 years)

Joint Savings Account

Business Savings Account

Young worker Savings Account

Young Adult Savings account(20-45)

Older adult Savings account (46-65)

Pensioners savings account

Home and leisure department

Jewellery department

Luxury department

Electronics /Technology departments

Food and Beverage department

Health care department

Financial department

Entertainment (music, DVD) department

Sports department

Furniture department

Clothing and shoes department

Beauty (cosmetic) department

Digital department

Flower department

Fruits and Vegetable department

Stationery department


Luxury cars- High price, high quality

Sports cars – High price high quality

Executive cars- High price high quality

Sports cars- Low price low quality

Low price brands low quality brands

Moderate price brands moderate quality

Industrial cars

Family cars


Clothing for ( 0-12monts) MALE

Clothing for 1-5year old MALE





Clothing for 65 and over MALE

Clothing for ( 0-12monts) FEMALE

Clothing for 1-5year old FEMALE





Clothing for 65 and over FEMALE

Clothing for (0-12months) (male & female)

Clothing for 1-5year old) (male & female)

Clothing for (6-18) (male & female)




Clothing for (66 and above) (male & female)

First class seats Business class seats Second class seats

Very Expensive Slightly expensive Less expensive

Tickets for students Tickets for non students

Reserved tickets

Tickets for pensioners

Tickets for family

Low price High price Low price Low price Low price


First class rooms/service Second class rooms

Very Expensive (High price) Less expensive (low price)

CNN – USA

CNN - AFRICA

CNN- EUROPE

CNN – ASIA

CNN – MIDDLE EAST

CNN – AUSTRALIA

CNN NORHT AMERICA

CNN- SOUTH AMERICA

Program A USA Report

Program B Inside Africa

Program C Your World today

Program D Inside Asia

Program E Inside Middle east

Program F World News

Program G Your world today

Program H Design 360

Organic Food

Organic Food

Inorganic Food

Inorganic Food

SMART PRICE BRANDS

Luxury brands

Moderate quality

First class brands

High price Low price Low price High price Very low price

Very High price

Moderate price

High price

Organic drinks

Organic drinks

Inorganic drink

Inorganic drink

SMART PRICE BRANDS

Luxury brands

Moderate quality

First class brands

High price Low price Low price Low price Very low price Very High price

Moderate price

First class brands


Food for new born babies (0-9months)

Food for children (1-10years)

Food for adult

Food for the old

Organic food

Inorganic food

Confectionaries Food for animals

Spirit Wine Champagne Beer

Water Juice drink

Soft drink – Fanta, coke, J2O

Vitamin/Energy drink

Yogurt drink


HOME INSURANCE

CAR INSURANCE

HEALTH INSURANCE

GENERAL PROPERTY INSURANCE

BUSINESS INSURANCE

TRAVEL INSURANCE

Kindergarten education

Primary Education

Secondary Education

High school education

University Education

Professional Education

Children’s music

Adult music

Religious music

Love music

Traditional African music

Western music


Explain the conditions to Explain the conditions to effective market effective market segmentation:segmentation: IdentifiableIdentifiable MeasurableMeasurable RecognizableRecognizable ProfitableProfitable AccessibleAccessible Reliable or stableReliable or stable ActionableActionable SubstantialSubstantial AffordableAffordable DifferentiableDifferentiable AchievableAchievable RealisticRealistic


Explain how industrial Explain how industrial markets can be segmentedmarkets can be segmented


Explain why some Explain why some businesses decide not to businesses decide not to segment the market.segment the market.


What advise can you give What advise can you give an organization wishing to an organization wishing to segment its marketsegment its market


Explain what is market Explain what is market segmentation, the reasons segmentation, the reasons why businesses should why businesses should segment the market and the segment the market and the criteria they should follow criteria they should follow before segmenting the before segmenting the market:market:


What is market segmentation?What is market segmentation?

Market segmentation is the process of identifying andMarket segmentation is the process of identifying and

classifying customers according to their different needs classifying customers according to their different needs andand

wants.wants.


It is the division of market in to groups of customers It is the division of market in to groups of customers and using the marketing mix to target customers in and using the marketing mix to target customers in these groups.these groups.

It is the splitting up of customers in to segments and It is the splitting up of customers in to segments and using the marketing mix to target customers.using the marketing mix to target customers.


Businesses segment their market because of Businesses segment their market because of differences that exist among customers with regards differences that exist among customers with regards to the following:to the following:

1.1. Age 9. PsychologyAge 9. Psychology2.2. Sex 10.Life cycleSex 10.Life cycle3.3. Marital status 11.Life style.Marital status 11.Life style.4.4. BehaviourBehaviour5.5. LocationLocation6.6. IncomeIncome7.7. CultureCulture8.8. Social statusSocial statusBusinesses also segment their market because of Businesses also segment their market because of

inadequate finance to go for the entire marketinadequate finance to go for the entire market


THE CRITERIA FOR SEGMENTING THE MARKETTHE CRITERIA FOR SEGMENTING THE MARKET

IdentifiableIdentifiable ProfitableProfitable RecognisableRecognisable AccessibleAccessible ActionableActionable Stable (reliable)Stable (reliable) SubstantialSubstantial MeasurableMeasurable AffordableAffordable


What is positioning and with What is positioning and with the aid of an example (s) the aid of an example (s) explain the positioning map of explain the positioning map of any organisation of your any organisation of your choicechoice


Positioning means designing a product to occupy a Positioning means designing a product to occupy a distinct and valued place in the minds of customers.distinct and valued place in the minds of customers.

Companies can position the market in terms of price, Companies can position the market in terms of price, product, quality, brands, promotion, and customer service.product, quality, brands, promotion, and customer service.

The essence of positioning is to enable the company to The essence of positioning is to enable the company to have more competitive advantage over its competitors.have more competitive advantage over its competitors.

When positioning, the company should identity customers When positioning, the company should identity customers needs, produce the product targeted at customers.needs, produce the product targeted at customers.

The product packaging, labelling, styling, branding, The product packaging, labelling, styling, branding, designing, pricing, promotion and distribution should designing, pricing, promotion and distribution should seriously be analysed. seriously be analysed.

A good marketing programme such as marketing research, A good marketing programme such as marketing research, Marketing mix, segmentation, targeting, new productMarketing mix, segmentation, targeting, new productdevelopment and market expansion will boost the company’sdevelopment and market expansion will boost the company’scompetitive advantage. competitive advantage.


POSITIONINGPOSITIONING Companies need to find out what position they areCompanies need to find out what position they are

in, in relation to their competitors.in, in relation to their competitors.

Am I a market leader or a market follower? This is a Am I a market leader or a market follower? This is a question that should be asked by organisations.question that should be asked by organisations.

Marketing planning, and marketingMarketing planning, and marketing

strategies should be implemented to enablestrategies should be implemented to enable

the company to have competitivethe company to have competitive

advantage.advantage.


POSITIONINGPOSITIONINGKEYS TO SUCCESSFUL POSITIONINGKEYS TO SUCCESSFUL POSITIONING

Source: Principles and practice of marketing- 2Source: Principles and practice of marketing- 2ndnd edition by David Jobber edition by David Jobber

Successful positioning

ClarityConsistency

Credibility Compet

itiveness


POSITIONINGPOSITIONINGPOSITIONING MAP OF SUPERMARKETS: POSITIONING MAP OF SUPERMARKETS:

Source: Principles and practice of marketing- 2Source: Principles and practice of marketing- 2ndnd edition by David Jobber edition by David Jobber

High price

Wide product range

Low price

Narrow product range

.. . .

. . ..A PERCEPTUAL MAP OF SUPERMARKETS

D

CB

A

X

GF

E


Explain what is targeting and Explain what is targeting and discuss the targeting discuss the targeting strategies businesses can use strategies businesses can use to targetto target the market. the market.

Marketing Mix 2

Marketing Mix

Marketing Mix

Segment 1

Segment 2

Segment 3

Whole Market

Segment 1

Segment 2

Segment 3

Marketing Mix 3

Marketing Mix 1

Differentiated targeting

Concentrated targeting

Undifferentiated targeting


Identify and explain the DMU Identify and explain the DMU in consumer and industrial in consumer and industrial marketsmarkets

DMU IN CONSUMER MARKETSDMU IN CONSUMER MARKETS InitiatorsInitiators InfluencersInfluencers DecidersDeciders BuyersBuyers UsersUsers


DMU IN BUSINESS MARKETSDMU IN BUSINESS MARKETS

Initiators:Initiators: Individuals and people who bring up the purchase Individuals and people who bring up the purchase idea.idea.

Influencers:Influencers: People who affect the buying decision. They often People who affect the buying decision. They often help define specifications and provide information for evaluating help define specifications and provide information for evaluating alternatives. Technical personnel are particularly important alternatives. Technical personnel are particularly important influencers.influencers.

DecidersDeciders:: People who have formal formal or informal power to People who have formal formal or informal power to select or approve the final suppliers. In routine buying, the select or approve the final suppliers. In routine buying, the buyers are often the deciders or at least the approvers. buyers are often the deciders or at least the approvers.

Buyers:Buyers: People with formal authority to select the supplier and People with formal authority to select the supplier and arrange terms of purchase. Buyers may help shape product arrange terms of purchase. Buyers may help shape product specifications, but they play their most important role in specifications, but they play their most important role in selecting vendors and in negotiating. In more complex selecting vendors and in negotiating. In more complex purchases, buyers might include high-level officers participating purchases, buyers might include high-level officers participating in the negotiationsin the negotiations..


Gate keepers:Gate keepers: People who control the flow of People who control the flow of information to others. For example, purchasing information to others. For example, purchasing agents often have authority to prevent agents often have authority to prevent salespersons from seeing users or deciders. salespersons from seeing users or deciders. Other gatekeepers include technical personnel Other gatekeepers include technical personnel and even personal secretaries.and even personal secretaries.

Users:Users: Members of the organisation who will Members of the organisation who will use the product or service. In many cases, use the product or service. In many cases, users initiate the buying proposal and help users initiate the buying proposal and help define product specifications.define product specifications.

Buying centre:Buying centre: All the individuals and units All the individuals and units that participate in the business buying-decision that participate in the business buying-decision process.process.


Differentiate between Differentiate between consumer buying consumer buying behaviour and Organisational behaviour and Organisational buying behaviour buying behaviour


Discuss the major influences on consumer Discuss the major influences on consumer buying behaviour and identify the roles buying behaviour and identify the roles assumed by consumersassumed by consumers

Individual /personal influences

•Personality•Perception•Motivation•Attitude.

•Demographic

Group influences

•Social class•Culture/

subculture•Reference

groups •family

Environmental influences

•Political/legal•Economic

•Socio-cultural•Technological

Marketing mix•Product

•Price•Place

•promotion


Explain the consumer buying Explain the consumer buying decision making process and decision making process and the factors influencing the factors influencing consumer buying behaviourconsumer buying behaviour


Consumer buying decision making process and its Consumer buying decision making process and its influencing factors: influencing factors:

Individual /personal influences

•Personality•Perception•Motivation•Attitude.

•Demographic

Group influences

•Social class•Culture/

subculture•Reference

groups •family

Environmental influences

•Political/legal•Economic

•Socio-cultural•Technological

Marketing mix•Product

•Price•Place

•promotion

Problem recognition

Information search

Information evaluation/evaluation of

alternatives

Purchase decision

Post-purchase evaluation

Decision-making process


Explain the organisationalExplain the organisational buying process buying process and and its influencing factors its influencing factors The business or organisational decision-making The business or organisational decision-making

process is the process by which business process is the process by which business buyers establish the need for purchased buyers establish the need for purchased products and services, and identify, evaluate products and services, and identify, evaluate and choose among alternative brands and and choose among alternative brands and suppliers.suppliers.

The business buying process can be seen in The business buying process can be seen in the next slide. the next slide.


The organisational The organisational buying processbuying process

Need/problem recognitionNeed/problem recognition General need descriptionGeneral need description Purchase specificationPurchase specification Supplier searchSupplier search Proposal solicitationProposal solicitation Supplier selectionSupplier selection Order routine specificationOrder routine specification Performance reviewPerformance review


The influencing factors in The influencing factors in organisational buyingorganisational buying

Marketing Mix factors:Marketing Mix factors: Product, price, place, promotion, Product, price, place, promotion, people, physical evidence and process.people, physical evidence and process.

Environmental factors:Environmental factors: Political/legal, Economic, Social, Political/legal, Economic, Social, Technological & ecologicalTechnological & ecological

Rate of Demand:Rate of Demand: The higher the demand by producers and The higher the demand by producers and consumers the more businesses have to buy in order to consumers the more businesses have to buy in order to produce.produce.

Financial availability:Financial availability: Business buying just as individual Business buying just as individual buying depends on financial availability. However, business buying depends on financial availability. However, business can purchase now and pay later which makes it easier to can purchase now and pay later which makes it easier to purchase not necessarily without having money, but financial purchase not necessarily without having money, but financial availability is vital in determining the amount and frequency of availability is vital in determining the amount and frequency of purchase.purchase.


Size of the market:Size of the market: The larger the market, the more The larger the market, the more businesses have to purchase in order to produce and satisfy businesses have to purchase in order to produce and satisfy the market.the market.

Business Objective:Business Objective: Some businesses aim at mass Some businesses aim at mass production in order to achieve economies of scale and reduce production in order to achieve economies of scale and reduce prices. If that is the objective of the business, then purchasing prices. If that is the objective of the business, then purchasing will be much more bulky and vice versa.will be much more bulky and vice versa.

Managerial decision:Managerial decision: At the end of the day, the manager’s At the end of the day, the manager’s decision is final. The management has to decide when to buy, decision is final. The management has to decide when to buy, where to buy, how much to spend in buying, what to buy, how where to buy, how much to spend in buying, what to buy, how often they have to buy, which suppliers should be chosen etc.often they have to buy, which suppliers should be chosen etc.

Interpersonal and individual influencesInterpersonal and individual influences

Organisational influencesOrganisational influences


Explain the differences Explain the differences between individual buying between individual buying and organizational buying and organizational buying behaviourbehaviour


Explain the similarities Explain the similarities between individual buying and between individual buying and business business buying.business business buying.


Why is it important to study Why is it important to study consumer behaviourconsumer behaviour


Explain the marketing Explain the marketing management philosophies or management philosophies or conceptsconcepts

These are the philosophies you need toThese are the philosophies you need to

explain:explain: The Marketing philosophy/conceptThe Marketing philosophy/concept The Production philosophy/conceptThe Production philosophy/concept The Product philosophy/conceptThe Product philosophy/concept The Sales philosophy/conceptThe Sales philosophy/concept The Societal Marketing Philosophy/conceptThe Societal Marketing Philosophy/concept


Explain the importance of Explain the importance of stakeholders in stakeholders in organisations:organisations:


Explain the expectations of Explain the expectations of stakeholders stakeholders


Distinguish between Distinguish between internal, marketplace and internal, marketplace and external stakeholders:external stakeholders:


Distinguish between direct Distinguish between direct and indirect stakeholders:and indirect stakeholders:


Analyze the expectations of Analyze the expectations of stakeholders.stakeholders.


Explain how stakeholder Explain how stakeholder objectives may clash and how objectives may clash and how it can be dealt with by it can be dealt with by managementmanagement


Why is it necessary for an Why is it necessary for an organization maintain a good organization maintain a good and long lasting relation with and long lasting relation with its stakeholdersits stakeholders


Who are stakeholders and Who are stakeholders and explain the role of explain the role of stakeholders in an stakeholders in an organisationorganisation

The various stakeholders can The various stakeholders can be seen in the next slidebe seen in the next slide


Management

Shareholders

Distributors

Suppliers

Media Banks

Localcommunity

Pressuregroups

Competitors

Employees

Customers

Stakeholders


STAKEHOLDESTAKEHOLDESS

VALUEVALUE STAKEHOLDER STAKEHOLDER EXPECTATIONEXPECTATION

EXPECTATION FROM EXPECTATION FROM ORGANISATIONORGANISATION

ConsumersConsumers Purchase goods Purchase goods and services thus and services thus raising revenue for raising revenue for organisations.organisations.

Fair pricesFair pricesSafe and healthy productsSafe and healthy productsEnvironmentally friendly productsEnvironmentally friendly productsHigh quality productsHigh quality productsGood customer service and care.Good customer service and care.

Payment for goods and servicesPayment for goods and servicesGood behaviour from customersGood behaviour from customersRespect purchasing policies.Respect purchasing policies.

EmployeesEmployees They help produce They help produce goods and services.goods and services.

Good working conditionsGood working conditionsFair wage for a days job/monthFair wage for a days job/monthMotivation – bonuses, allowances, Motivation – bonuses, allowances, holidays, promotion, ego and self holidays, promotion, ego and self actualisation needs.actualisation needs.Equal opportunity in employment, Equal opportunity in employment, training and development.training and development.Training and developmentTraining and developmentIndustrial democracyIndustrial democracyEmpowerment and delegationEmpowerment and delegationFreedom of speech/free flow Freedom of speech/free flow communicationcommunication

Commitment from staffCommitment from staffNo strike actionNo strike actionNo absenteeismNo absenteeismTotal participation Total participation Respect company’s policiesRespect company’s policiesGood moraleGood morale

ManagementManagement They help plan, They help plan, organise, direct, organise, direct, control, motivate control, motivate and train staff.and train staff.

SuppliersSuppliers They supply They supply logistics needed for logistics needed for production.production.

DistributorsDistributors They distribute the They distribute the products to the products to the market. market.

MediaMedia Advertising Advertising products. products.


STAKEHOLDSTAKEHOLDESES

VALUEVALUE STAKEHOLDER STAKEHOLDER EXPECTATIONEXPECTATION

EXPECTATION EXPECTATION FROM FROM ORGANISATIONORGANISATION

Financial Financial institutionsinstitutions

Provides financial products e.g loans, Provides financial products e.g loans, overdraft and advice.overdraft and advice.

GovernmentGovernment Provides public and merit goods.Provides public and merit goods.Help investors morally and financially.Help investors morally and financially.

Local communityLocal community Purchase organisational products.Purchase organisational products.

Pressure groupPressure group

ShareholdersShareholders Provide shares (business finance)Provide shares (business finance)Put pressure on companies to produce Put pressure on companies to produce products under social and environmentally products under social and environmentally friendly conditions.friendly conditions.

Retailers/Retailers/wholesalers/wholesalers/agentsagents

Facilitate the distributionFacilitate the distributionActs as an important link in business supply Acts as an important link in business supply chain.chain.

CompetitorsCompetitors Compete with firms thus making companies Compete with firms thus making companies to offer even better services and goods.to offer even better services and goods.


STAKEHOLDERSSTAKEHOLDERSStakeholders can be divided into three categoriesStakeholders can be divided into three categories

1.1. Internal Stakeholders:Internal Stakeholders: Employees, Employees, Management, shareholders and BOD.Management, shareholders and BOD.

2.2. Market place stakeholdersMarket place stakeholders: Customers, banks, : Customers, banks, media, suppliers, distributors, agents, retailers media, suppliers, distributors, agents, retailers and wholesalers and competitors.and wholesalers and competitors.

3.3. External StakeholdersExternal Stakeholders: Government, pressure : Government, pressure groups and the local communitygroups and the local community


Explain the strategic Explain the strategic management model: management model:


STRATEGIC MANAGEMENTSTRATEGIC MANAGEMENT Strategic analysisStrategic analysis

Strategic Choice

Strategy implementation

A basic model of strategic management processSource: Exploring Corporate Strategy by Gerry Johnson Kevan Scholes


STRATEGIC MANAGEMENTSTRATEGIC MANAGEMENT

Strategic

analysis

Strategic choice

Strategy implemen

tation

The environ

ment

Culture and stakeholder expectation Resources

And strategic capabilities

IdentifyingStrategic options

Evaluating options

Selecting

strategy

Planning And

allocating resources

Organisation

structure and design

Managing Strategic change


Explain the components of a Explain the components of a strategic management modelstrategic management model


Write short notes on the Write short notes on the following:following:

Strategic AnalysisStrategic Analysis Strategic choiceStrategic choice Strategic ImplementationStrategic Implementation


Explain the factors to Explain the factors to consider when deciding to consider when deciding to choose a strategy.choose a strategy.


What factors should you What factors should you consider when deciding to consider when deciding to imnplement a strategyimnplement a strategy


Explain the value of Explain the value of resources in strategic resources in strategic implementationimplementation


Explain strategic decisions Explain strategic decisions which businesses have to which businesses have to make prior to the make prior to the implementation of a implementation of a strategy.strategy.


Explain how an Explain how an organizational structure is organizational structure is vital to strategic vital to strategic implementationimplementation


Why is environmental Why is environmental scanning vital in strategic scanning vital in strategic analysis choice and analysis choice and implementationimplementation


What can lead to the failure What can lead to the failure and success of a strategyand success of a strategy


How vital is it to motivate How vital is it to motivate the workforce in so far as the workforce in so far as the strategy is concernedthe strategy is concerned


Explain the role of the Explain the role of the marketing manager in an marketing manager in an organisation of your choice:organisation of your choice: Marketing is the function of management.Marketing is the function of management. Management has to control, co-ordinate, plan, motivate, analyze and Management has to control, co-ordinate, plan, motivate, analyze and

organize marketing activities:organize marketing activities: The marketing managerThe marketing manager has to perform the following: has to perform the following: 1.1. Marketing / market researchMarketing / market research2.2. PlanningPlanning3.3. Environmental analysisEnvironmental analysis4.4. Market segmentation, targeting and positioning.Market segmentation, targeting and positioning.5.5. Marketing mix implementationMarketing mix implementation Marketing is not only the function of the marketing manager. Marketing is not only the function of the marketing manager. Marketing should be part and parcel of each and every department of the Marketing should be part and parcel of each and every department of the

company.company. The various departments such as Human Resource, Production, The various departments such as Human Resource, Production,

Logistics, Finance, Stock and Technical departments have to corporate Logistics, Finance, Stock and Technical departments have to corporate with the marketing departmentwith the marketing department


Explain the role played by Explain the role played by marketing intermediaries in marketing intermediaries in the supply chain of the supply chain of production:production:


Distinguish with the aid of Distinguish with the aid of examples wholesalers and examples wholesalers and retialersretialers


Explain the strategies Explain the strategies businesses can use to enter businesses can use to enter foreign markets:foreign markets:The strategies can be divided into twoThe strategies can be divided into twocategories:categories: Direct entryDirect entry1.1. Direct distribution channelDirect distribution channel2.2. Joint venture, merger or amalgamationJoint venture, merger or amalgamation3.3. TakeoverTakeover4.4. AcquisitionAcquisition5.5. IntegrationIntegration6.6. Direct exporting abroad.Direct exporting abroad. Indirect entryIndirect entry1.1. Piggy- backingPiggy- backing


What advise can you give What advise can you give Domestic businesses wishing Domestic businesses wishing to enter foreign markets:to enter foreign markets:


Are there any risks associated Are there any risks associated with entering international with entering international markets? If yes, justify your markets? If yes, justify your point:point:


Explain how culture influence Explain how culture influence international marketinginternational marketing


Explain the advantages and Explain the advantages and disadvantages of becoming a disadvantages of becoming a multinationalmultinational


Explain the value of marketing Explain the value of marketing research to any international research to any international business of your choice.business of your choice.


Explain how the international Explain how the international market can be segmented:market can be segmented:


Explain how the marketing mix Explain how the marketing mix elements and its application elements and its application can vary as a domestic can vary as a domestic company becomes company becomes international international


Examine the differences Examine the differences between domestic and between domestic and international businessesinternational businesses


Explain the main decisions in Explain the main decisions in international marketing which international marketing which businesses have to make.businesses have to make.


MAIN INTERNATIONAL MAIN INTERNATIONAL MARKETING DECISIONSMARKETING DECISIONS

Looking at the global marketing environment

Deciding whether to go international

Deciding which markets to enter

Deciding how to enter the market

Deciding on the global marketing programme

Deciding on the global marketing organisation


Explain how a business can Explain how a business can fight its competitors.fight its competitors.


Explain the various Explain the various different layers of different layers of competitorscompetitors


COMPETITIONCOMPETITION

LAYERS OF COMPETITION

Immediate competitors – Technically similar

products

Source: Principles and practice of marketing by David Jobber

Secondary competitors

Tertiary competitors


Explain the porter’s five Explain the porter’s five force analysis of the force analysis of the competitive structure: competitive structure:


MICHAEL PORTER’S FIVE FORCE ANALYSIS MICHAEL PORTER’S FIVE FORCE ANALYSIS OF THE COMPETITIVE STRUCTUREOF THE COMPETITIVE STRUCTURE

Competitive Rivalry

Potential entrants

Suppliers Buyers

Substitutes

Bargaining

Power

Threat of entrants

Bargaining

Power

Threat of substitutes

Source: Exploring Corporate Strategy by Garry Johnson and Kevan ScholesAdapted from M. Porter, Competitive Strategy, Free Press,1980, p. 4.

1

2

34

5


Explain why it is vital to Explain why it is vital to study competitors.study competitors.


Explain how competitor Explain how competitor intelligence may be carried intelligence may be carried out.out.


Explain what is Explain what is benchmarking and discuss benchmarking and discuss how the benchmarking how the benchmarking exercise can be carried out.exercise can be carried out.


Explain the Explain the marketing management marketing management process: process:

ANALYSIS

PLANNING

IMPLEMENTATION

CONTROL


Marketing is an exchange Marketing is an exchange process discussprocess discuss


MARKETING AS AN EXCHANGE PROCESS:MARKETING AS AN EXCHANGE PROCESS:

Consumer Costs and benefits Organization

Individual

Patient

Student

Volunteer

Voter

Reader

Source: Principles of marketing by Dr. Frances Brassington & Dr Stephen Pettitt; chp 1 pg 7

Slake thirstInsurance premiums

Medical treatment

FeesEducation

TimeSense of community service

VoteSense of economic/social progress

TaxesA good read

HPrivate hospital

University

Non-profit Youth group

Political party

Public library

Coca colaPayment for coke


What is the business What is the business portfolio portfolio and and with the aid of models and with the aid of models and examples examples explain the application explain the application of of business portfolio in a business portfolio in a modern day organisation modern day organisation


PORTFOLIO ANALYSISPORTFOLIO ANALYSISBusiness Portfolio:Business Portfolio: The collection of businesses and products The collection of businesses and products

that make up the company.that make up the company.

Portfolio analysis:Portfolio analysis: A tool by which management A tool by which managementidentifies and evaluates the various businesses thatidentifies and evaluates the various businesses thatmake up the companymake up the company

Strategic business unit (SBU):Strategic business unit (SBU): A unit of the company that has A unit of the company that hasa separate mission and objectives and that can be planneda separate mission and objectives and that can be plannedindependently from other company businesses. A SBU can beindependently from other company businesses. A SBU can bea company division, a product line within a division, ora company division, a product line within a division, orsometimes a single product or brand.sometimes a single product or brand.


PORTFOLIO ANALYSISPORTFOLIO ANALYSISBOSTON CONSULTING GROUP MATRIXBOSTON CONSULTING GROUP MATRIX

Framework of the BCG MatrixFramework of the BCG Matrix

Market share

Mar

ket g

row

th

Low

High

0.1x1x10x0

10

20


PORTFOLIO ANALYSISPORTFOLIO ANALYSISStarsStars

Cash cowsCash cowsLow-growthLow-growthHigh-share businesses or productsHigh-share businesses or productsEstablished and successful units that generate cash that the company usesEstablished and successful units that generate cash that the company usesto pay its bills and support other business units that need investmentto pay its bills and support other business units that need investment

Question marksQuestion marksLow-share business units in high-growth marketsLow-share business units in high-growth marketsLow sales and profitLow sales and profitLow marketing shareLow marketing share

DogsDogs

High –growth High market share (High-share businesses)Products often require heavy investment to finance their rapid growth


BCG MATRIX : BCG CLASSIFICATION OF BCG MATRIX : BCG CLASSIFICATION OF PRODUCTSPRODUCTS

DogsDogs

Market share

Mar

ket g

row

th

Low

High

0.1x1x10x0

10

20

StarsQuestion marks

Cash cows


BCG BCG MATRIX- CASH POSITION FOR MATRIX- CASH POSITION FOR PRODUCTSPRODUCTS

StarsStars

Revenue + + + Revenue + + +

Investment - - -Investment - - -

00

Question marksQuestion marks

Revenue Revenue + + + +

Investment - - -Investment - - -

--

Cash cowsCash cows

Revenue + + +Revenue + + +

Investment –Investment –

+ ++ +

DogsDogs

Revenue +Revenue +

Investment –Investment –

00


PORTFOLIO STRATEGIESPORTFOLIO STRATEGIES

Build Build

Hold Hold

HarvestHarvest

DivestDivest


GENERAL ELECTRIC MATRIXGENERAL ELECTRIC MATRIX


THE GENERAL ELECTRIC THE GENERAL ELECTRIC MATRIX BY MCKINSEYMATRIX BY MCKINSEY

The The GE matrix / McKinsey matrixGE matrix / McKinsey matrix is a model to is a model to perform a perform a business portfolio analysisbusiness portfolio analysis on the on the Strategic Business UnitsStrategic Business Units of a corporation. of a corporation.

A A business portfoliobusiness portfolio is the collection of Strategic is the collection of Strategic

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


THE GENERAL ELECTRIC THE GENERAL ELECTRIC MATRIX BY MCKINSEYMATRIX BY MCKINSEY

The aim of a portfolio analysis is to:The aim of a portfolio analysis is to: 1) Analyze its current business portfolio and decide 1) Analyze its current business portfolio and decide

which SBU's should receive more or less investment, which SBU's should receive more or less investment, andand2) Develop growth strategies for adding new products 2) Develop growth strategies for adding new products and businesses to the portfolioand businesses to the portfolio

3) Decide which businesses or products should no 3) Decide which businesses or products should no longer be retained.longer be retained.

The The BCG MatrixBCG Matrix (Boston Consulting Group Matrix) is the (Boston Consulting Group Matrix) is the best-known portfolio planning framework. The GE / best-known portfolio planning framework. The GE / McKinsey Matrix is a later and more advanced form of McKinsey Matrix is a later and more advanced form of the BCG Matrix. the BCG Matrix.


THE GENERAL ELECTRIC MATRIX BY THE GENERAL ELECTRIC MATRIX BY MCKINSEYMCKINSEYTypical (external) factors that affect Typical (external) factors that affect Market AttractivenessMarket Attractiveness::

- Market size- Market size- Market growth rate- Market growth rate- Market profitability - Market profitability - Pricing trends - Pricing trends - Competitive intensity / rivalry - Competitive intensity / rivalry - Overall risk of returns in the industry- Entry barriers - Overall risk of returns in the industry- Entry barriers - Opportunity to differentiate products and services- Demand variability- Opportunity to differentiate products and services- Demand variability- Segmentation - Segmentation - Distribution structure- Technology development - Distribution structure- Technology development

Typical (internal) factors that affect Typical (internal) factors that affect Competitive StrengthCompetitive Strength of a Strategic of a Strategic Business Unit:Business Unit:- Strength of assets and competencies- Strength of assets and competencies- Relative brand strength (marketing)- Relative brand strength (marketing)- Market share- Market share growth- Market share- Market share growth- Customer loyalty- Customer loyalty- Relative cost position (cost structure compared with competitors)- Relative profit - Relative cost position (cost structure compared with competitors)- Relative profit margins (compared to competitors)margins (compared to competitors)- Distribution strength and production capacity- Distribution strength and production capacity- Record of technological or other innovation- Quality- Record of technological or other innovation- Quality- Access to financial and other investment resources- Management strength - Access to financial and other investment resources- Management strength


A A six-step approach to implementation of portfolio analysissix-step approach to implementation of portfolio analysis (using the GE / McKinsey Matrix) could look like this: (using the GE / McKinsey Matrix) could look like this:

1. Specify drivers of each dimension. The corporation must 1. Specify drivers of each dimension. The corporation must carefully determine those factors that are important to its overall carefully determine those factors that are important to its overall strategystrategy2. Weight drivers. The corporation must assign relative 2. Weight drivers. The corporation must assign relative importance weights to the drivers importance weights to the drivers 3. Score SBU's each driver3. Score SBU's each driver4. Multiply weights times scores for each SBU4. Multiply weights times scores for each SBU5. View resulting graph and interpret it 5. View resulting graph and interpret it 6. Perform a review/sensitivity analysis using adjusted other 6. Perform a review/sensitivity analysis using adjusted other weights (there may be no consensus) and scores. weights (there may be no consensus) and scores.


Some important Some important limitations limitations of the of the GE GE matrix / McKinsey Matrixmatrix / McKinsey Matrix are: are:

- Valuation of the realization of the - Valuation of the realization of the various factorsvarious factors

- Aggregation of the indicators is difficult- Aggregation of the indicators is difficult - - Core competenciesCore competencies are not represented are not represented - Interactions between Strategic Business - Interactions between Strategic Business

Units are not consideredUnits are not considered


With the aid of a diagram With the aid of a diagram explain the communication explain the communication cycle and its componentscycle and its components


Explain the value of the Explain the value of the internet in marketinginternet in marketing


Explain what is Corporate Explain what is Corporate Social Responsibility and Social Responsibility and explain how businesses can be explain how businesses can be socially responsible:socially responsible:


a)a) What is marketing ethics What is marketing ethics and how can businesses be and how can businesses be ethical.ethical.


Distinguish between ethical Distinguish between ethical and unethical Marketingand unethical Marketingpractices.practices.


Explain why it is necessary for Explain why it is necessary for the marketing department to the marketing department to cooperate with the other cooperate with the other functional departments of an functional departments of an organisation?organisation?


What is consumerism and What is consumerism and what has led to the growth of what has led to the growth of consumerism and how does it consumerism and how does it affect marketing activities:affect marketing activities:


Explain what is marketing Explain what is marketing and discuss the factors and discuss the factors underpinning the need to underpinning the need to be market oriented:be market oriented:


What is marketing? What is marketing? Marketing is ‘the management process which Marketing is ‘the management process which

identifies, anticipates and satisfies customer identifies, anticipates and satisfies customer requirements efficiently and profitably. (CIM definition)requirements efficiently and profitably. (CIM definition)

Marketing Consists of individual and organizational Marketing Consists of individual and organizational activities that facilitate and expedite satisfying activities that facilitate and expedite satisfying exchange relationships in a dynamic environment exchange relationships in a dynamic environment through the creation, distribution, promotion and through the creation, distribution, promotion and pricing of goods, services and ideas ( by Dibb, 2000)pricing of goods, services and ideas ( by Dibb, 2000)


Marketing means working with markets to bring Marketing means working with markets to bring about exchanges for the purpose of satisfying about exchanges for the purpose of satisfying human needs and wants. It is a process by human needs and wants. It is a process by which individuals and groups obtain what they which individuals and groups obtain what they need and want creating and exchanging need and want creating and exchanging products and value with others. (Kotler, 2000).products and value with others. (Kotler, 2000).


Factors underpinning the Factors underpinning the need to be market oriented:need to be market oriented:

DemandDemand Average disposable incomeAverage disposable income General level of educationGeneral level of education Mass media/ access to informationMass media/ access to information Supply/industry capacitySupply/industry capacity CompetitionCompetition Broad political, economic, social, technological, Broad political, economic, social, technological,

ecological and legal factors (PESTEL) factors.ecological and legal factors (PESTEL) factors.


EXPLAINTHE DIFFICULTIES IN MANAGING EXPLAINTHE DIFFICULTIES IN MANAGING THE INTRODUCTION OF A CUSTOMER-THE INTRODUCTION OF A CUSTOMER-ORIENTED CULTURE:ORIENTED CULTURE:

Managers fail to realize or understand the true concept of Managers fail to realize or understand the true concept of market orientation.market orientation.

Resistance to changeResistance to change Power struggle between departments.Power struggle between departments. Separation of the responsibility for marketing strategy and Separation of the responsibility for marketing strategy and

implementation.implementation. Lack of co-ordinationLack of co-ordination Lack of technology/inability to use latest technology.Lack of technology/inability to use latest technology. Poor planningPoor planning Influence of macro factors (PESTEL Analysis)Influence of macro factors (PESTEL Analysis) Influence of micro factors: Employees, management, Influence of micro factors: Employees, management,

suppliers, distributors, media and competitors. suppliers, distributors, media and competitors. Inadequate financeInadequate finance No strategic directionNo strategic direction


Marketing should not only Marketing should not only be the task of the be the task of the marketing manager but marketing manager but also that of all the other also that of all the other managers in an managers in an organisation -- Discussorganisation -- Discuss



Product specialisationProduct specialisation Market specialisationMarket specialisation Full market coverageFull market coverage Single segment targetSingle segment target Multi segment targetMulti segment target


TargetingTargeting

Single segment target

Multi-segment target

M1 M2 M3

P1

P3

P2 Market Specialisation

M1 M2 M3P1

P2

P3

M1 M2 M3

P1

P2

P3

M=Market and P= Product

M1 M2 M3

P1

P2

P3

M1 M2 M3P1

P2

P3

Product specialisation

Full market coverage


Briefly explain what is Briefly explain what is corporate social corporate social responsibility: responsibility:


CORPORATE SOCIAL RESPONSIBILITYCORPORATE SOCIAL RESPONSIBILITY

This is the responsibility that corporate businesses have on the environment. They are This is the responsibility that corporate businesses have on the environment. They are supposedsupposed

to produce goods and services under social and environmentally friendly conditions: to produce goods and services under social and environmentally friendly conditions:

CORPORATE SOCIAL RESPONSIBILITY TOUCHES THE FOLLOWING AREAS:CORPORATE SOCIAL RESPONSIBILITY TOUCHES THE FOLLOWING AREAS:

1.1. Employees Suppliers Retailer DistributorsEmployees Suppliers Retailer Distributors

2.2. Customers Government Shareholders CompetitorsCustomers Government Shareholders Competitors

3.3. Products Services Banks Media Green Products Services Banks Media Green issuesissues

4.4. Local community Environmental pollutionLocal community Environmental pollution

CORPORATE SOCIAL RESPONSIBILITY CAN BE VIEWED FROM TWO ANGLES:

Internal Aspects: This focus on the company’s internal structureE.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


Explain what is a mission Explain what is a mission statement and briefly state its statement and briefly state its components and its components and its importance:importance:


Explain the communication Explain the communication processprocess

SENDER MESSAGE ENCODING CHANNEL

DECODING

RECEIVER

NOISE

RESPONSE AND FEEDBACK


Examine the importance of Examine the importance of Information Communication Information Communication Technology (ICT) in Marketing:Technology (ICT) in Marketing:


Examine the reasons for the Examine the reasons for the growth in marketing activitiesgrowth in marketing activities



WholesalersWholesalers RetailersRetailers AgentsAgents BrokersBrokers



Intensive distributionIntensive distribution Selective distributionSelective distribution Exclusive distributionExclusive distribution


Write short notes on any Write short notes on any four of the following:four of the following:

Public RelationsPublic Relations Sales promotionSales promotion Direct marketingDirect marketing AdvertisingAdvertising Marketing strategiesMarketing strategies Environmental scanningEnvironmental scanning


How can businesses enter How can businesses enter foreign marketsforeign markets


What advantages and What advantages and disadvantages can businesses disadvantages can businesses get when they enter foreign get when they enter foreign marketsmarkets


Examine the importance of Examine the importance of marketing planning in any marketing planning in any organization of your choice.organization of your choice.


Compare the distribution Compare the distribution channel in consumer markets channel in consumer markets to that in organizational to that in organizational markets.markets.


Examine the factors you will Examine the factors you will consider when selecting an consider when selecting an intermediary.intermediary.


Critically examine the Critically examine the promotion mix strategies.promotion mix strategies.


Examine the product line of Examine the product line of any organization of your any organization of your choice:choice:


Explain how you can measure Explain how you can measure and forecast market demandand forecast market demand


Why is it important to have Why is it important to have a marketing information a marketing information system in an organization.system in an organization.


What is a mission What is a mission statement and why is it statement and why is it necessary for an necessary for an organization to have oneorganization to have one


Examine the components of Examine the components of a mission statement.a mission statement.


What are objectives.What are objectives.Explain with examples, the Explain with examples, the difference between short, difference between short, medium and longterm medium and longterm objectives.objectives.


Explain the critical role of Explain the critical role of marketing organization – are marketing organization – are there any negative there any negative consequences of marketing to consequences of marketing to the society.the society.


Explain the difference Explain the difference between ‘push’ and ‘pull’ between ‘push’ and ‘pull’ promotion strategy.promotion strategy.


Explain the advantages and Explain the advantages and disadvantages of primary disadvantages of primary and secondary research:and secondary research:


Marketing activities are Marketing activities are important to business important to business success and survival – success and survival – discuss the validity of this discuss the validity of this statement with the aid of statement with the aid of examples from any examples from any organization of your choice.organization of your choice.


Make a case for and against Make a case for and against marketing activities.marketing activities.


IN CASE OF ANY QUERIES IN CASE OF ANY QUERIES ABOUT THIS ABOUT THIS PRESENTATION AND ITS PRESENTATION AND ITS CONTENT CONTENT PLEASE CONTACT PLEASE CONTACT THE PRODUCER THE PRODUCER

JUDE. AJUDE. A

EM: EM: [email protected]@yahoo.co.ukM: 07828224631M: 07828224631H: 01902448412H: 01902448412 GOODLUCK IN YOUR EXAMINATION GOODLUCK IN YOUR EXAMINATION

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