Table of Contents

Internal Influences on Marketing Objectives...............................................................2

Corporate objectives............................................................................................... 2
Finance.................................................................................................................... 2
Human resources.................................................................................................... 2
Operational issues................................................................................................... 2
Business culture...................................................................................................... 2
External Influences on Marketing Objectives..............................................................2
Economic environment............................................................................................ 2
Competitor actions.................................................................................................. 2
Market dynamics..................................................................................................... 3
Technological change.............................................................................................. 3
Social & political change......................................................................................... 3
7 Functions of Marketing............................................................................................ 3
Pricing..................................................................................................................... 3
Product/Service Management.................................................................................. 3
Distribution.............................................................................................................. 3
Financing................................................................................................................. 3
Marketing-Information Management.......................................................................3
Selling..................................................................................................................... 3
Promotion................................................................................................................ 3

There are many potential internal and external influences which shape and
influence the marketing objectives of a business.
Internal Influences on Marketing Objectives
Corporate objectives
As with all the functional areas, corporate objectives are the most important internal
influence. A marketing objective should not conflict with a corporate objective
Finance
The financial position of the business (profitability, cash flow, liquidity) directly
affects the scope and scale or marketing activities.
Human resources
For a services business in particular, the quality and capacity of the workforce is a
key factor in affecting marketing objectives. A motivated and well-trained workforce
can deliver market-leading customer service and productivity to create a
competitive marketing advantage
Operational issues
Operations has a key role to play in enabling the business to compete on cost
(efficiency / productivity) and quality. Effective capacity management also plays a
part in determining whether a business can achieve its revenue objectives
Business culture
E.g. a marketing-orientated business is constantly looking for ways to meet
customer needs. A production-orientated culture may result in management setting
unrealistic or irrelevant marketing objectives.

External Influences on Marketing Objectives

Economic environment
The key factor in determining demand. E.g. many marketing objectives have been
thwarted or changed as a result of the recession. Factors such as exchange rates
would also impact objectives concerned with international marketing.
Competitor actions
Marketing objectives have to take account of likely / possible competitor response.
E.g. an objective of increasing market share by definition means that competitor
response will not be effective
Market dynamics
The key market dynamics are market size, growth and segmentation. Changes in
any of these undoubtedly influence marketing objectives. A market whose growth
slows is less likely to support an objective of significant revenue growth or new
product development
Technological change
Consumer and other markets are now affected by rapid technological change,
shortening product life cycles and creating great opportunities for innovation. These
have to be taken into account when setting marketing objectives.
Social & political change
Changes to legislation may create or prevent marketing opportunities. Change in
the structure and attitudes of society also have major implications for many
markets.
7 Functions of Marketing

Pricing
Setting and communicating the value of products and services. Setting the price at the right level.

Product/Service Management
Designing,developing,maintaining,improving,and aquiring products and services that meet
consumer needs.

Distribution
Determining the best ways for customers to locate,obtain,and use the products and services of an
organization. Involves moving the product each step from the deign idea to the consumer.

Financing
Budgeting for marketing activities,obtaining the necessary funds needed for
operations,and providing financial assistance to customers so they can purchase the
business products and service.

Marketing-Information Management
Obtaining,managing,and using information about what customers want to improve
business decision making, performance of marketing activities, and determining
what will sell.

Selling
Communicating directly with potential customers to determine and satisfy their needs.

Promotion
Communicating with customers about the product to achieve the desired result--
customer demand for and purchase of the product. Includes advertising, personal
selling, publicity, and public relations.

The Marketing Mix

Marketing decisions generally fall into the following four controllable categories:
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his
1964 article, The Concept of the Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Culliton had described the marketing
manager as a "mixer of ingredients". The ingredients in Borden's marketing mix
included product planning, pricing, branding, distribution channels, personal selling,
advertising, promotions, packaging, display, servicing, physical handling, and fact
finding and analysis. E. Jerome McCarthy later grouped these ingredients into the
four categories that today are known as the 4 P's of marketing, depicted below:
These four P's are the parameters that the marketing manager can control, subject
to the internal and external constraints of the marketing environment. The goal is to
make decisions that center the four P's on the customers in the target market in
order to create perceived value and generate a positive response.
Product Decisions
The term "product" refers to tangible, physical products as well as services. Here
are some examples of the product decisions to be made:
Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services
Price Decisions
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)
Suggested retail price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples of
distribution decisions include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the
product with the goal of generating a positive customer response. Marketing
communication decisions include:
Promotional strategy (push, pull, etc.)
Advertising
Personal selling & sales force
 Sales promotions
Public relations & publicity
Marketing communications budget

Steps in Advertising in Banks

1. Determining the objective of Advertisement
2. Determining the available budget
3. Estimating the return on Investment
4. Developing the contents of Ad
5. Media selection
6. Scheduling and Campaign Execution
7. Measurement

New-Product Pricing Strategies

Market-Skimming Pricing
Setting a high price for a new product to skim maximum revenues layer by layer
from the segments willing to pay the high price; the company makes fewer but
more profitable sales.

Market skimming makes sense only under certain conditions. First, the products
quality and image must support its higher price, and enough buyers must want the
product at that price. Second, the costs of producing a smaller volume cannot be so
high that they cancel the advantage of charging more. Finally, competitors should
not be able to enter the market easily and undercut the high price.

Market-Penetration Pricing
Setting a low price for a new product to attract a large number of buyers and a large
market share.

Several conditions must be met for this low-price strategy to work. First, the market
must be highly price sensitive so that a low price produces more market growth.
Second, production and distribution costs must decrease as sales volume increases.
Finally, the low price must help keep out the competition, and the penetration pricer
must maintain its low price position. Otherwise, the price advantage may be only
temporary.
Product Life Cycle Stages
As consumers, we buy millions of products every year. And just like us, these
products have a life cycle. Older, long-established products eventually become less
popular, while in contrast, the demand for new, more modern goods usually
increases quite rapidly after they are launched.

Because most companies understand the different product life cycle stages, and
that the products they sell all have a limited lifespan, the majority of them will
invest heavily in new product development in order to make sure that their
businesses continue to grow.

Product Life Cycle Stages Explained

The product life cycle has 4 very clearly defined stages, each with its own
characteristics that mean different things for business that are trying to manage the
life cycle of their particular products.

Introduction Stage
This stage of the cycle could be the most expensive for a company launching a new
product. The size of the market for the product is small, which means sales are low,
although they will be increasing. On the other hand, the cost of things like research
and development, consumer testing, and the marketing needed to launch
the product can be very high, especially if its a competitive sector.

Growth Stage
The growth stage is typically characterized by a strong growth in sales and profits,
and because the company can start to benefit from economies of scale in
production, the profit margins, as well as the overall amount of profit, will increase.
This makes it possible for businesses to invest more money in the promotional
activity to maximize the potential of this growth stage.

Maturity Stage
During the maturity stage, the product is established and the aim for the
manufacturer is now to maintain the market share they have built up. This is
probably the most competitive time for most products and businesses need to
invest wisely in any marketing they undertake. They also need to consider any
product modifications or improvements to the production process which might give
them a competitive advantage.

Decline Stage
Eventually, the market for a product will start to shrink, and this is whats known as
the decline stage. This shrinkage could be due to the market becoming saturated
(i.e. all the customers who will buy the product have already purchased it), or
because the consumers are switching to a different type of product. While this
decline may be inevitable, it may still be possible for companies to make some
profit by switching to less-expensive production methods and cheaper markets.
Product Life Cycle Examples
Its possible to provide examples of various products to illustrate the different
stages of the product life cycle more clearly. Here is the example of watching
recorded television and the various stages of each method:

Introduction 3D TVs
Growth Blueray discs/DVR
Maturity DVD
Decline Video cassette
The idea of the product life cycle has been around for some time, and it is an
important principle manufacturers need to understand in order to make a profit and
stay in business.

However, the key to successful manufacturing is not just understanding this life
cycle, but also proactively managing products throughout their lifetime, applying
the appropriate resources and sales and marketing strategies, depending on what
stage products are at in the cycle.

Difference between Product and Services

1. Meaning
2. Nature
3. Transfer of ownership
4. Evaluation
5. Return
6. Separable
7. Variability
8. Storage
9. Production and consumption

Differentiate between Retail Banking and Wholesale

Banking
1. Target Customers
2. Size of Loans
3. Example of Loans
4. Monitoring and Recovery
5. Cost of Deposit
6. Operational Costs