Marketing reviewer o Communicating information to

help customers determine if the

Lesson 1: Marketing Principles and Strategies
product will satisfy their needs
“Marketing is the science and art of exploring,  Marketing Mix
creating, and delivering value to satisfy the needs of o Four Marketing Mix
a target market at a profit. Marketing identifies  Product
unfulfilled needs and desires. It defines, measures  Place
and quantifies the size of the identified market and  Promotion
the profit potential. It pinpoints which segments the  Distribution
company is capable of serving best and it designs o A firm can control to meet the
and promotes the appropriate products and services” needs of customers within its target
(Kotler) market
Figure 1.1 – Components of Strategic Marketing  There is a limit to how much
these variables can be
controlled
 Marketers must…
o Aim to create and maintain the
right mix of elements to satisfy
customers in the target market.
o Collect detailed and up-to-date
information on:
 Their target market
 Consumer preferences
 Competitors in order to
develop the marketing mix
 Product Variable
o Product can be:
 Marketing Focuses on…  Good — a physical entity
 Customers - Purchasers of the products that you can touch.
that organizations develop, promote,  Service — the application of
distribute, and price. Focal point of all human and mechanical
marketing activities efforts to people or objects to
 Target Market - A specific group of provide intangible benefits to
customers on whom an organization customers
focuses its marketing efforts  Idea — concept, philosophy,
 Marketing Mix Variables image, or issue.
 Marketing is more than simply o Product variable includes the
advertising or selling a product creation or modification of brand
 Involves names and packaging
o Developing and managing a  May also include decisions
product regarding warranty and
o Making the product available in repair services
the right place o Product variable decisions and
o Pricing the product at an activities directly impact the
acceptable level for buyers creation of products that meet
customers’ needs and wants
 Distribution Variable
 o Make products available in
quantities desired to as many target
market customers as possible
o While minimizing these three
costs:
 Inventory
 Transportation
 Storage
o To satisfy customers, products
must be available at the right time
and in convenient locations
o Marketing managers may:
 Select/motivate
intermediaries (wholesalers
and retailers)
 Establish/maintain inventory
control procedures
 Develop/manage
transportation and storage
systems
o Internet has dramatically impacted
distribution
 Making it faster and more
wide-spread
 Netflix uses digital
distribution that allows
consumers to stream movies
right off its website.
 Promotion Variable
o Relates to activities used to inform
individuals or groups about the
organization and its products
 Aim to increase public
awareness of the
organization and of new or
existing products
 Educate customers about
product features
 Urge people to take a stance
on a political or social issue
 Help sustain interest in
established products
 Price Variable
o Relates to decisions and actions
associated with establishing
pricing objectives and policies and
determining product prices
Price is a critical component
of the marketing mix as
customers are concerned
about value obtained in an
exchange
 Price is often used as a
competitive tool
 Intense price competition
sometimes leads to price
wars
 Marketing Creates Value
Value is a customer’s subjective
assessment of benefits relative to costs in
determining the worth of a product
o Customer benefits include
anything a buyer receives in an
exchange
o Customer costs include anything a
buyer must give up to obtain the
benefits the product provides
including cost, time, effort, and
risk
 Value is a subjective assessment of
benefits relative to costs
 Marketing has the ability to increase
consumers’ perceptions of a product’s
quality and social approval
 Marketing Builds Relationship
 Exchanges are the provision of transfer
of goods, services, or ideas in return for
something of value
 Figure 1.2
 Relationship with Customer
 For an exchange to take place:
 o Two or more parties must
participate, and each must possess
something of value that the other
party desires
o The exchange should provide a
benefit or satisfaction to both
parties
o Each party must have confidence
in the promise of the something of
value held by the other
o To build trust, the parties to the
exchange must meet expectations
 Relationship with Stakeholders
 Stakeholders are constituents who have a
stake, or claim, in some aspect of a
company’s products, operations,
markets, industry, and outcomes
 Stakeholders include:
o Customers
o Employees
o Investors and shareholders
o Supplies
o Government, communities and
more
 Marketing Environment
 The marketing environment is dynamic
and includes the following forces:
o Competitive
o Economic
o Political
o Legal and regulatory
o Technological
o Sociocultural
 These forces affect a marketer’s ability
to facilitate value-driven exchanges in
three ways:
o Influence customers by affecting
their lifestyle, standards of living,
and preferences and needs for
products
o Help to determine whether and
how a marketing manager can
perform certain marketing
activities
o May affect a marketing manager’s
decisions and actions by
influencing buyers’ reactions to the
firm’s marketing mix
 Effects of these forces on buyers/sellers
can be dramatic and difficult to predict
 Impact on value can be extensive as
market changes can easily impact how
stakeholders perceive certain products
 Unlike marketing mix variables, a firm
has little control over marketing
environment forces
 Understanding Marketing Concept
 According to the marketing concept, an
organization should try to provide
products that satisfy customers’ needs
through a coordinated set of activities
that also allows the organization to
achieve its goals
o A management philosophy guiding
an organization’s overall activities
o A firm must satisfy not only its
customers’ objectives but also its
own objectives
 Evolution of the Marketing Concept
 Production Orientation
o Second half of the 19th century,
the Industrial Revolution improved
speed and efficiency
o As a result of new technology and
new ways of using labor, products
poured into the marketplace, where
demand for manufactured goods
was strong
o Firms were developing the ability
to produce more products, and
competition was becoming more
intense
 Sales Orientation
o During the first half of the 20th
century competition increased and
focus shifted to selling products to
buyers
o Marketers were able to learn that
many products did not meet
consumers’ needs
o Businesses viewed sales and
selling as the main means of
increasing profits
 o Some people incorrectly equate
marketing with a sales orientation
o Some firms still use a sales
orientation
 Marketing Orientation
o Emerged in the mid-20th century
o Market orientation requires an
organization-wide generation of
market intelligence pertaining to:
 Current and future customer
needs
 Dissemination of the
intelligence across
departments
 Organization-wide
responsiveness to it
o New-product innovation by
developing a strategic focus to
explore and develop new products
to serve target markets
 Implementing the Marketing Concept
 Management must first establish an
information system to discover
customers’ real needs and then use the
information to create satisfying products
o An information system is usually
expensive; management must
commit money and time for its
development and maintenance
o Without an adequate information
system, however, an organization
cannot be market oriented
 To satisfy customers’ objectives as well
as its own, a company also must
coordinate all of its activities
 Implementing the marketing concept
demands the support not only of top
management but also of managers and
staff at all levels of the organization
 Customer Relationship Management (CRM)
 Customer relationship management
(CRM) means using information about
customers to create marketing strategies
that develop and sustain desirable
customer relationships
 Achieving the full profit potential of
each customer relationship should be the
fundamental goal of every marketing
strategy
 Profits can be obtained through
relationships in the following ways:
o By acquiring new customers
o By enhancing the profitability of
existing customers
o By extending the duration of
customer relationships
 Implementing the marketing concept
means optimizing the exchange
relationship
 Relationship Marketing
 Relationship marketing:
o Refers to long-term mutually
beneficial buyer/seller relationships
o Focused on value enhancement
through the creation of more
satisfying exchanges
o Continually deepens the buyers trust
o Increases the company’s
understanding of the customer’s
needs
o Through the use of e-marketing,
companies can personalize customer
relationships on a nearly one-on-one
basis
 Customer Lifetime Value
 Customer lifetime value predicts the net
value (profit or loss) for the future
relationship with a customer
o Requires identifying patterns of
buying behavior and using that to
focus on the most promising and
profitable customers
o Intangible asset that can be
augmented by addressing the
customer’s varying needs and
preferences
o May include an individual’s strong
word-of-mouth communication
about the company’s products
 Emphasis changes from share of market
to share of customer
o Most basic application of this idea is
80%of business profits come from
20% of customers
  Calculated by taking the sum of the
customer’s present value contributions to
profit margin over a specific time frame
o Helps determine how best to allocate
resources to marketing strategies to
sustain a customer over a lifetime
 The Importance of Marketing in our Global
Economy
 Costs consume a sizable portion of
Buyer’s dollars
o About ½ of buyer’s dollars goes
toward marketing cost
 Used in non-profit organizations
o Government agencies at all levels
engage in marketing activities to
fulfill their mission and goals
o Private nonprofit organizations
employ marketing activities to
create, price, distribute and promote
programs that benefit particular
segments of society
 Important to business and the economy
o Marketing activities help produce
profits which are essential to the
survival of individual businesses,
help create a successful economy
and contribute to the well-being of
society
 Fuels our global economy
o Advances in technology, falling
political and economic barriers, and
the universal desire for a higher
standard of living, have made
international marketing
commonplace while stimulating
global economic growth
 Knowledge enhances consumer
awareness
o Studying marketing allows us to
understand the importance of
marketing to customers, firms, and
our economy and make better
purchasing decisions
 Connects people through technology
o Technology helps marketers
understand and satisfy more
customers than ever before
o Internet allows marketers to
disseminate information about
products and interact with target
markets
 Can promote the welfare of customers
and stakeholders
o Green marketing—is a strategic
process involving stakeholder
assessment to create long-term
relationships with customers while
maintaining, supporting, and
enhancing the natural environment
o Market orientation combined with
social responsibility improves
business performance
 Offers many exciting career prospects
o 25-33% of civilian workers in the
U.S. perform marketing activities
 What is marketing and its traditional
approaches?
 Marketing Definition according to the
American Marketing Association:
o Marketing is the activity, set of
institutions, and processes for
creating, communicating, delivering,
and exchanging offerings that have
value for customers, clients,
partners, and society at large.
(Approved July 2013)
 The importance of Marketing
o Marketing is of vital importance to
any business. It is the key process of
researching, promoting and selling
products or services to your target
market. The bottom line of any
business is profit. Profit is largely
the result of successful sales.
Marketing is an important business
process where you inform, attract
and convince people that your
products or services are of value to
them.
o Without Marketing, many
businesses would fail to exist. You
could have the most amazing
product or service, but if no one
knows it exists or understands the
 value, you won’t make a single sale.
It’s important that you use
marketing to promote your business,
brand and offerings. Without it, how
will you make those sales?
 Benefits of marketing
o Increases awareness – Most of the
time we see an advertisement, or get
a recommendation, but we don’t
always buy the product or use the
services straight away. By raising
awareness through marketing, you’ll
build an audience of potential
customers who know who you are,
know what you can offer, and know
exactly where to find you when they
are ready to purchase your products
or services.
o Increases Sales – When people
know your business exists, they’re
much more likely to become your
customers. If your marketing
campaigns are doing their job
properly, you’ll start to see an
increase in sales shortly after you
get started.
o Creates trust – People want to buy
from a business that has a
trustworthy reputation. They want to
know that they can trust the business
they are buying from. It takes time
to build the trust and reputation for
your business. Once your business
can establish this trust with your
clients, it creates customer loyalty. If
your clients are happy with your
products or services, they will talk
about your business. Word of mouth
is the most effective type of
marketing, and it’s free.
 Goals of Marketing
 Marketing goals are specific objectives
described in a marketing plan. These
goals can be tasks, quotas, improvements
in KPIs, or other performance-based
benchmarks used to measure marketing
success. When explicitly set, measurable
goals are key for marketers to be
successful.
 Some examples of marketing goals
include:
o Building brand awareness
o Generating a high volume of
qualified leads
o Establishing thought leadership
o Attributing marketing activities to
revenue generation
o Increasing brand engagement
 Measuring your marketing goals
o Once you have your goals, don’t
forget that measurement is key. Do
this yearly, quarterly, weekly, and
get your entire team involved. Set
Key Performance Indicators (KPIs)
which provide metrics to evaluate
success factors enabling you to track
progress.
o You can also create custom goals in
Google Analytics to fit your
company’s unique needs. Tracking
how each marketing campaign or
piece of content contributed to these
custom goals empowers you with
the right data to prove and improve
your marketing strategy.
 Contemporary Approaches to Marketing
 Marketing has most definitely evolved
over the past 5 decades, with new ideas
and theories developing yearly from a
variety of different academic scholars
and strategists alike. For this reason
identifying which tools are best suited
for your marketing message are crucial.
This article seeks to explain which
traditional marketing theories exist and
which contemporary marketing theories
you should consider in the future.
 What is Traditional Marketing?
o Traditional marketing is an umbrella
term that covers the wide array of
advertising channels we see daily.
These may include print media,
billboard and TV advertising, flyer
 and poster campaigns and radio
broadcast advertising.
o These traditional marketing
messages are not necessarily
outdated, however, research has
shown those companies that have
abandoned simply using these
channels, and adopted contemporary
marketing channels proposed in this
article, have remained prosperous
and in fact seen an increase in leads,
sales and traffic to web content.
o Ansoff's Matrix Theory
 Traditional marketing theories
include Ansoff's Matrix, a
theory that proposes
products/services fall into one
of four categories depending on
the market and the product
released. New Product- New
Market is considered as
diversification. This theory
recommends that businesses
should try to diversify their
product portfolio so as to spread
risk amongst their product
range. An example of this
would be when Apple created
the first iPhone released in
2007. This product was new and
introduced into a new market.
Apple soon reaped the benefits
of introducing this hugely
popular phone. Their product
range grew from
accommodating for designers
on the Apple Mac, to mobile
devices, tablet devices, watches
and beyond.
o The Marketing Mix
 Another marketing theory that's
considered to be traditional is
the marketing mix. Made up of
the 7 P's. These include product,
place, promotion, price,
packaging and positioning. All
these components, when
combined, create a solid
marketing proposal. However
this theory as well as Ansoff's,
can be drastically improved
with the use of contemporary
marketing strategies.
o Traditional Marketing seeks to pull
customers to a product, whatever the
cost. It is, for this reason, considered
to be fairly outdated as it does not
consider the customer they are
selling to, more the market that the
company operates within. There are
however channels that have
developed from traditional
marketing, including digital, that
aim for the same goal, however, use
more subtle and approachable
mediums so as to capture their target
audience. This may include Pay-Per-
Click campaigns, social media posts,
search engine optimisation and
email marketing.
 What is Contemporary Marketing?
o Contemporary Marketing refers to
theories that stress the importance of
customer orientation versus the
traditional market orientation. They
are strategies that, when
implemented, offer greater support
for their client base with a product
range that varies depending on what
the target market desires. Rather
than what the company wants them
to have.
o Products including the vast array of
kitchen appliances with built in
failure components attracting their
customer base back to them for
further purchases are an example of
product orientation. Traditional
marketing theories are said to favour
this ideology. Though somewhat
devious, it is most definitely
effective. Attracting customers to
their product range has become
more difficult because consumers
have become more literate in
technology and, therefore, can
 research items before purchase. This
allows them to make a conscious
and informed decision to avoid
companies with this ethos.
o Co-Creation
 Contemporary marketing
theories include Co-Creation.
This theory suggests creating a
bridge between customer and
business through gamification.
A practical example would be
attracting customers through
social media content relevant to
their needs or writing article
blog posts that have useful
information. Research
conducted by Harvard business
school and the London School
for Business found that
businesses that utilised the
contemporary marketing
strategy, incorporating both co-
creative and shared value ideas,
over the long run prospered far
more than those companies who
hadn't chosen this avenue.
o Shared Value
 Another popular contemporary
marketing theory is shared
Lesson 2: Customer Relationship: Customer Service
value. This theory considers the
market that the company is
wanting to penetrate and seeks
to offer perks in said market. A
successful example of this
would be Tesla. They have
invested millions of dollars
building charging stations for
electric cars across North
America, Europe and Asia. The
stations can be used by many
different branded electric cars.
They have actively tried to
improve the market whilst
simultaneously attract more
customers to them. For B2B
companies, this may include
creating events where
companies in the same industry
can be invited and discuss
amongst themselves offers they
can give each other.
 Can These Strategies Be used
eclectically?
o Both traditional and contemporary
have advantages and disadvantages
in their application. The former
works greater for companies who
wish to diversify their product
portfolio, attracting customers to
their product rather than their brand.
Contemporary methods look to build
a trusting relationship with their
customer base through co-creative
strategies and gamifying their
market plan, as well as information
attained through market sensing
research. However, both can be used
in tandem. Contemporary marketing
strategies can be used to build the
relationship with the client. Through
market sensing and identifying
categories for your clientele.
Bridging the gap via the use of
digital inbound marketing
techniques. A tool JDR Group can
help with.
 Strategic Marketing Management
 The process of planning, implementing,
and evaluating the performance of
marketing activities and strategies, both
effectively and efficiently
o Effectiveness is the degree to which
long-term customer relationships
help achieve an organizations
objectives
o Efficiency refers to minimizing the
resources an organization uses to
achieve a specific level of desired
customer relationships
 Strategic Planning Process
 Strategic planning is the process of
establishing an organizational mission
and formulating goals, corporate
 strategy, marketing objectives, and
marketing strategy
o Should be guided by a market
orientation to ensure that a concern
for customer satisfaction is an
integral part of the process and
permeates the entire company
o A market orientation is also
important for the successful
implementation of marketing
strategies
 Figure 2.1 – Components of Strategic
Planning Process
 Corporate Strategies
 Organizational Mission Statement and Goals
 Mission statement is a long-term view,
or vision, of what the organization wants
to become
 The goals of any organization should
derive from its mission statement
 An organization’s mission statement
should answer two questions:
o Who are our customers?
o What is our core competency?
 Corporate Identity
 Companies develop and manage their
corporate identity—their unique
symbols, personalities, and philosophies
—to support all the firm’s activities,
including marketing
 Managing identity requires:
o Broadcasting a company’s mission,
goals, and values
o Sending a consistent image
o Implementing a visual identity with
stakeholders
 Figure 2.2 – Levels of Strategic Planning
 Corporate strategy determines the means
for utilizing resources in the functional
areas of marketing, production, finance,
research and development, and human
resources to reach the organization’s
goals
o The broadest of the three levels of
strategy (corporate, business unit,
and marketing) and should be
developed with the organization’s
overall mission in mind
 Who are our customers? What
is our core competency?
 Corporate strategy planners are
concerned with broad issues such as:
o Corporate culture
o Competition
o Differentiation
o Diversification
 o Interrelationships among business products and overall portfolio
units strategies
o Environmental and social issues
 Match the resources of the organization
with the opportunities and threats in the
environment
 Business – Unit Strategies
 Business-unit strategy should be
consistent with corporate strategy
 Figure 2.3 – Growth Share Matrix
o Strategic business unit (SBU) is a
division, product line, or other profit
center within the parent company
o Each of these units sells a distinct
set of products to an identifiable
group of customers, and each
competes with a well-defined set of
competitors
o The revenues, costs, investments,
and strategic plans of each SBU can
be separated from those of the
parent company and evaluated
 Strategic planners should recognize the
strategic performance capacities of each  Growth Share Matrix
SBU and allocate scarce resources  Stars are products with a dominant share
among those divisions of the market and good prospects for
o A market is a group of individuals growth O
and/or organizations that have needs  Cash cows have a dominant share of the
for products in a product class and market but low prospects for growth O
have the ability, willingness, and  Dogs have a subordinate share of the
authority to purchase those products market and low prospects for growth
o The percentage of a market that  Question marks have a small share of a
actually buys a specific product growing market and generally require a
from a particular company is large amount of cash to build market
referred to as that product’s (or share
business unit’s) market share  Long-term health of an organization
 Market Growth/Market Share Matrix depends on having some products that
 The market growth/market share matrix generate cash and others that use cash to
is a helpful business tool, based on the support growth
philosophy that a product’s market  Assessing Organizational Resources and
growth rate and its market share are Opportunities
important considerations in determining  The strategic planning process begins
its market strategy with an analysis of the marketing
o All the companies SBUs and environment, including a thorough
products should be integrated into a analysis of the industry in which the
single, overall matrix and evaluated company is operating or intends to sell
to determine strategies for individual its products
 o Any strategic planning effort must much as possible, offer organic
assess the organization’s available and hormone-free foods, and
financial and human resources and use less energy than typical
capabilities as well as how the level grocery stores
of these factors is likely to change in
the future

 Core Competences  Figure 2.4 – Competitive Advantage

 Core competencies are things a company
does extremely well, which sometimes
gives it an advantage over its
competition
o Walmart’s core competency, which
is efficiency in supply chain
management, has enabled the chain
to build a strong reputation for low
prices at high quality levels on a
wide variety of goods
 Marketing Opportunities and Strategic
Windows
 Market opportunity is a combination of
circumstances and timing that permits an
organization to take action to reach a
particular target market
 SWOT Analysis
 Strategic windows are temporary periods
 SWOT analysis is a tool marketers use to
of optimal fit between the key
assess an organization’s strengths,
requirements of a market and the
weaknesses, opportunities, and threats
particular capabilities of a company
o Strengths and weaknesses are
competing in that market
internal factors that can influence an
 Competitive Advantage
organization’s ability to satisfy its
 Competitive advantage is the result of a
target market
company matching a core competency to
o Opportunities and threats exist
opportunities it has discovered in the
independently of the company and
marketplace
therefore represent issues to be
o Tesco, a large-scale grocery chain
considered by all organizations,
from the U.K., entered the western
even those that do not compete with
U.S. market with its Fresh & Easy
the company
Neighborhood Markets
 Figure 2.4 – SWOT matrix
 The company seeks competitive
advantage by offering cheap,
healthy food options such as 98-
cent produce packages and
cheap cuts of meat
 The store seeks to source
produce and meats locally as

 Strengths refer to competitive
advantages or core competencies that
give the company an advantage in
meeting the needs of its target market
 Weaknesses refer to any limitations a
company faces in developing or
implementing a marketing strategy
 Opportunities refer to favorable
conditions in the environment that could
produce rewards for the organization if
acted on properly
 Threats refer to conditions or barriers
that may prevent the company from
reaching its objectives
 First Mover Advantage
 First-mover advantage is the ability of an
innovative company to achieve long-
term competitive advantages by being
the first to offer a certain product in the
marketplace
o Build a firm’s reputation as a market
leader
o Market is free of competition
o Establish brand loyalty for the firm
due to its customer’s costs to switch
later on
o Firm can protect its trade secrets or
technology through patents
 First Mover Risks
 Risks of being the first to enter a market:
o High cost associated with creating a
new product from scratch
 Market research, product
development, production, and
marketing or buyer education
costs
o Early sales growth may not be as
high as the company predicted if it
makes mistakes with regard to the
product or its marketing
o Risk that the product will fail due to
market uncertainty, or that the
product might not meet consumers’
expectations or needs
 Last Mover Advantage
 Late-mover advantage is the ability of
later market entrants to achieve long-
term competitive advantages by not
being the first to offer a certain product
in a marketplace
o Learn from first mover’s mistakes
and thus create an updated/improved
product design and marketing
strategy
o Lower initial costs since first mover
has developed an
infrastructure/educated buyers
o More certainty about the success of
the market for the product
 Last Mover Risks
 Disadvantages of being a late mover:
o First mover may have patents on its
technology and trade secrets that
prevent the late mover from reverse
engineering its product or producing
a product that is too similar
o Customers who have already
purchased the first mover’s product
may believe that switching to the
late mover’s product is too
expensive or time-consuming for
them
o Timing of entry to the market is
crucial and can determine the
amount of late-mover advantage that
is actually possible
 Marketing Objective
  A statement of what is to be
accomplished through marketing
activities
o Should:
 Be based on a study of the
SWOT analysis
 Match strengths to opportunities
and/or eliminate weaknesses or
threats
 Be stated in clear, simple terms
 Be accurately measurable
 Specify a time frame for
accomplishment
 Be consistent with business-unit
and corporate strategy
 Marketing Strategy
 A plan of action for identifying and
analysing a target market and developing
a marketing mix to meet the needs of
that market
 Target Market Selection
 Selecting an appropriate target market
may be the most important decision a
company makes in the strategic planning
process
o Identification and analysis of a
target market provide a foundation
on which a company can develop a
marketing mix
o Marketers should also assess
whether the company has the
resources to develop the right
marketing mix to meet the needs of
a particular target market
 Creating Marketing Mix
 Decisions made in creating a marketing
mix are only as good as the
organization’s understanding of its target
market
 Requires:
o In-depth research into the
characteristics of the target market
o Analysis of customer needs,
preferences, and behaviors with
respect to product design, pricing,
distribution, and promotion
 All marketing mix decisions should be:
o Consistent with the business-unit
and corporate strategies
o Flexible to permit the organization
to alter the marketing mix in
response to changes in market
conditions, competition, and
customer needs
 Sustainable Competitive Advantage
 At the marketing mix level, a company
can detail how it will achieve a
competitive advantage
 A sustainable competitive advantage is
one that the competition cannot copy in
the foreseeable future
 How can an organization make its
competitive advantage sustainable over
time?
 Marketing Implementation
 The process of putting marketing
strategies into action
 Depends on:
o Organization of the marketing
department
o Motivating marketing personnel
o Effectively communicating within
the marketing unit
o Coordinating all marketing activities
o Establishing a timetable for the
completion of each marketing
activity
 Organizing the Marketing Unit
 Companies that truly adopt the
marketing concept develop a distinct
organizational culture:
o A culture based on a shared set of
beliefs that makes the customer’s
needs the pivotal point of the
company’s decisions about strategy
and operations
 Centralized organizations
o Authority is concentrated at the top
level
o Very little delegation to lower levels
 Decentralized organizations
o Decision making authority is
delegated as far down the chain of
command as possible
 Motivating Marketing Personnel
o To motivate marketing personnel,
managers must discover their
employees’ needs and then develop
motivational methods that will help
employees satisfy those needs
 Rewards to employees should
be tied to organizational goals
and be fair, ethical, and well
understood by employees
 Selecting effective motivational
tools has become more complex
because of greater differences
among workers in terms of race,
ethnicity, gender, and age
 Communication with the Marketing Unit
o One of the most important types of
communication in marketing is
communication that flows upward
from the frontline of the marketing
unit to higher-level marketing
managers
 Communication is facilitated by
an:
 Effective training program
where employees can
learn, ask questions, and
become accountable for
marketing performance
 Information system within
the marketing unit and
with other departments in
the organization
 Coordinating Marketing Activities
o Marketing managers must work with
other departments to ensure
marketing activities mesh with other
functions of the firm
 Must coordinate the activities of
marketing staff within the firm
and integrate those activities
with the marketing efforts of
external organizations
 Managers can improve
coordination by making each
employee aware of how his or
her job relates to others and
how his or her actions
contribute to achieving
marketing objectives
 Establishing a Timetable for
Implementation
o Establishing an implementation
timetable involves several steps:
 Identifying the activities to be
performed
 Determining the time required
to complete each activity
 Separating the activities to be
performed in sequence from
those to be performed
simultaneously
 Organizing the activities in the
proper order
 Assigning responsibility for
completing each activity to one
or more employees, teams, or
managers
 Evaluating Marketing Strategies
o Strategic performance evaluation
consists of:
 Establishing performance
standards
 Measuring actual performance
 Comparing actual performance
with established standards
 Modifying the marketing
strategy, if needed
 Establishing Performance Standards
o Performance standard is an expected
level of performance against which
actual performance can be compared
 For example, a 20% reduction
in customer complaints, a
monthly sales quota of
$150,000, or a 10% increase per
month in new-customer
accounts O
 Performance standards are
derived from marketing
objectives that are set while
developing marketing strategies
 Analyzing Actual Performance
o Sales analysis uses sales figures to
evaluate a firm’s current
performance
 Most common method of
evaluation because sales data
partially reflect the target
market’s reactions to a
marketing mix and often are
readily available
 Current sales data must be
compared with forecasted sales,
industry sales, specific
competitor’s sales, or the costs
incurred to achieve the sales
volume
o Marketing cost analysis breaks
down and classifies costs to
determine which are associated with
specific marketing efforts
 One way to analyze costs is by
comparing a company’s costs
with industry averages
 When looking at industry
averages, a company
should take into account
its own unique situation
 Company’s costs can
differ from the industry
average for several
reasons, including its own
marketing objectives, cost
structure, geographic
location, types of
customers, and scale of
operations
 Comparing Actual Performance with
Performance Standards
o If actual performance exceeds
performance standards:
 Marketing strategy is viewed as
being effective
 Try to gain an understanding of
why the strategy is effective
o If actual performance does not meet
performance standards:
 Determine why a marketing
strategy was less effective
 Determine whether the
marketing objective, against
which performance is measured,
is realistic or not
 Marketing Plan
 Written document that specifies the
activities to be performed to implement
and control the firm’s marketing
strategies
o The systematic process of:
 Assessing marketing
opportunities and resources
 Determining objectives
 Defining Strategies
 Establishing guidelines for
implementation and control of
the marketing program
o Aligned with corporate/business-
unit strategies and is
accessible/shared with employees
 Table 2.1 – Components of Marketing
Plan

 What is Relationship Marketing?
 Relationship marketing is about forming
long-term relationships with customers.
Rather than trying to encourage a one-
time sale, relationship marketing tries to
foster customer loyalty by providing
exemplary products and services. This is
different than most normal advertising
practices that focus on a single
transaction; watch ad A and buy product
B. Relationship marketing, by contrast,
is usually not linked to a single product
or offer. It involves a company refining
the way they do business in order to
maximize the value of that relationship
for the customer.
Relationship marketing mainly involves
the improvement of internal operations.
Many customers leave a company not
because they didn't like the product, but
because they were frustrated with the
customer service. If a business
streamlines its internal operations to
satisfy all service needs of their
customers, customers will be happier
even in the face of product problems.
 Technology also plays an important role
in relationship marketing. The Internet
has made it easier for companies to
track, store, analyze and then utilize vast
amounts of information about customers.
Customers are offered personalized ads,
special deals, and expedited service as a
token of appreciation for their loyalty.
 Social media sites allow business to
engage their customers in an informal
and ongoing way. In the past, it would
have been impossible to keep useful
records about every single client, but
technology makes it easy for companies
to automate their marketing efforts. (See
also Analytical Marketing)
 Branding is the final component of
relationship marketing. A company can
form a long-term relationship with a
client if that client feels like the brand
they purchase reflects who they are or
who they want to be. Customers are less
inclined to switch to a different brand if
they think that switch makes a statement
about their identity.
 Who does Relationship Marketing?
 Many types of companies have
something to gain from developing long-
term relationships with their customers.
Smaller businesses often serve a steady
stream of regulars, and make little effort
to draw in new customers. Imagine a
small restaurant that sees a steady stream
of business from the morning commute.
Their daily presence is a large part of the
business that restaurant does every day.
 Larger companies typically invest the
most in carrying out sophisticated
 relationship marketing campaigns. In
some major companies, relationship
marketing is a strategy that affects every
department with a client facing purpose
(sales, customer service, shipping etc).
Industry leaders constantly face
competition from new companies who
claim to provide similar goods with a
higher-quality level of service. Holding
onto their existing customers is the only
way they can maintain their position at
the top of their industry. This is true for
businesses in all industries, from cell
phones to baby food.
 Examples of companies using
relationship marketing:
o Ikea – The Swedish furniture maker
has a worldwide base of intensely
loyal customers. When the company
changed the font in their ubiquitous
catalog, Ikea lovers took to the
Internet to air their complaints.
Rather than alienate their customers
for a trivial reason, Ikea changed the
font back in the next catalog.
o Direct Recruitment – The direct mail
marketing firm sends out
handwritten birthday cards to clients
and associates every year. This
simple, personal touch helps clients
feel like Direct Recruitment cares
about them as people rather than
simply consumers.
o American Airlines – The airline
maintains a comprehensive frequent
flyer program that rewards customer
loyalty with the promise of free
flights, upgrades, and discounts.
o Dell – Dell computers created a
special online store for high volume
corporate customers. By tailoring
the ordering process to the specific
customer's needs, Dell was able to
expedite many of the hassles
corporate technology buyers face.
Providing a higher level of service
leads to increased loyalty.
o Vyvanse – The makers of the
popular ADHD drug created an
extensive online portal that included
videos, forums, expert articles, and
mobile apps to help those who suffer
from ADHD. Rather than relying on
the strength of the product alone, the
drug makers created a place for
users to gather and interact that was
linked back to the company.
 The value of Customers
 A fundamental tenet in customer
relationship management is that
companies win by attracting and keeping
their most valuable customers. This is a
simple concept if you know who your
most valuable customers are. But many
companies take a simplistic view of
measuring customer value. To really
understand what your customers are
worth, you need to think broadly about
the ways in which customers add value
to your company. And you need to create
more sophisticated approaches to
quantifying the value of customer
relationships. Knowing the true value of
your customers will lead to better
decisions about how you deploy your
technology resources in offline and
online sales channels.
 The most common way to measure the
value of a customer is the Customer
Lifetime Value. Customer Lifetime
Value is defined as the net present value
of the revenue stream from a customer
relationship. It measures how much
business the customer is expected to do
with your company during the lifetime of
your relationship. But few large
companies know how much business
they do with a customer today, let alone
how much they expect to do in the
future. Customers may buy several
different products from different
business units within a company, but the
silos that separate divisions don’t allow
for accurate accounting of the total value
of each relationship. For instance,
 Procter & Gamble found that many
households spend almost 50 percent of
their consumer packaged goods dollars
on P&G products. However, P&G
doesn’t know which customers are
buying what because the company is
organized around brands, not customers.
 Know Customer Potential and
Profitability
o By using activity-based costing
approaches to allocate marketing,
sales and support costs to specific
customer accounts, you can create a
more accurate picture of what your
customers are really worth. Once
you know the revenue and the cost
to serve specific customer accounts,
you can align sales-force incentives
around customer profitability, as
opposed to customer revenue. You
can even use this information to
improve customer profitability by
shifting customers who seek lower
prices to online sales and service
channels, where your service costs
might be lower.
 Leverage Early Adopters
o But profits aren’t the only measure
of the value of a customer
relationship. There are customers
you earn from, and there are
customers you learn from.
 Five New Approaches to Customer
Value
o The total value of their relationship
with your company
o The potential value of their
relationship
o The profitability of their relationship
o The insights they can provide your
company
o The influence that they wield over
other customers
 Customer Service Strategies
 Make Sure You Measure
o Have systems in place to measure
everything you do. If you don’t
know how you’re doing, how will
you know if you need to improve?
From cost-effective management to
product price and client service, find
ways to evaluate how you’re doing
business and you’ll know quickly
when and where changes need to be
made to increase your productivity
and client satisfaction.
 Know What Your Clients Want
o Don’t know where to start your
evaluation process? How about
asking your clients? Nothing makes
a customer feel more valued and
appreciated than being asked what
they want and then seeing those
things being delivered. It’s easy to
assume you know what they want,
but asking them is still the best way
to find out. You may be surprised by
the results. How do they really feel
about the service or
 Always Exceed Your Clients’
Expectations
o It is better to promise less and then
exceed your clients’ expectations,
than to promise them the world and
under-deliver. Be careful to promise
only what you can deliver, but make
every effort to exceed their
expectations every time. My friend
is fiercely loyal to a certain
mechanic in town. He’s not the
cheapest, but every time she has her
car repaired she finds it washed,
vacuumed and shined up inside.
She’s paying for a repair, but she’s
getting an added value that has
inspired her loyalty.
 Remember the 80/20 Rule
o Remember, 80% of your business
will come from 20% of your
customers. A successful business is
80% client-focused and 20%
prospect-focused. Don’t lose sight
of this important fact and spend your
time, money and energy nurturing
the clients you already have.
 Empower All of Your Staff to Deal With
Clients
o Nothing frustrates a customer more
than calling with a problem, only to
be told the person on the phone
can’t do anything for them. Every
employee who answers your phone
should be empowered to give the
customer some level of satisfaction.
Even a response like “I’ll look into
it right away and someone will get
back to you before noon” satisfies
the customer’s desire to have
something done without feeling like
he’s being put off.
 Have a Proactive Customer Care
Strategy
o Your marketing strategy should
include a continuous plan of
customer care that has nothing to do
with you and everything to do with
your customers. Regular contact,
client-focused seminars and events,
gifts, invitations to social events,
newsletters, open houses, and
discounts, are just a few ways to
focus on your customers. Do this
and your clients will begin to
develop the kind of loyalty that
keeps them coming back.
 Use Your Imagination to Stand Out in a
Crowd
o Remember when you were starting
your business you had to come up
with a USP that set you apart from
everyone else? Use your
imagination to come up with ways
to make your business stand out
again. Offer your customers a spring
or fall discount, invite your best
customers to a special event, or send
a gift at Easter or Thanksgiving for
instance. Connect your marketing
Lesson 3: Market Opportunity Analysis and
with your product or service. Are
Consumer Analysis
you a realtor? Leave a package of
flower seeds with your flyers. Do
you sell a product? Have a local
chocolatier create a mold of your
product and leave it with every
estimate or purchase. A bit of
money, for the benefit of getting
your clients to remember you, is
worth the cost.
 The Customer is Still Always Right
o Ask any consumer and they’ll tell
you how hard it is to find good
service. Few businesses are standing
behind this principle. Be the
business that always says YES. If
you can do it, do it well. If you can’t
do it, find someone who can do it
for them.
 Old Fashioned Values Still Work
o Showing politeness and respect is
not a lost art. Last week I was at a
department store looking for a
specific cleaning product. When I
located a clerk she rolled her eyes,
pointed to where I had just been
looking and said “Aisle 10”. Across
the street at another store, I asked a
clerk where I could find the same
product. She smiled and made
friendly small talk as she took me to
the right aisle. Where do you think
I’ll shop from now on?
 Establish a Strategy to Maintain Regular
Contact
o The more regular and frequent your
contact with your clients, the more
solid your relationship will become.
Some ideas… Get your client’s
address or email and send them
things you think might interest them
about one of their hobbies, a
relevant web site or a newspaper
clipping. Distribute a monthly or
quarterly newsletter. Fix problems
quickly every time - don’t let
anyone fall through the cracks.

 Marketing Environment
 Environmental Scanning
o The process of collecting
information about forces in the
marketing environment
 Environmental Analysis
o The process of assessing and
interpreting the information
gathered through environmental
scanning
o How you deal with the information
collected during scanning
 Responding to Environment Forces
 Marketers take two approaches to
environmental forces:
o Passive – Accepting them as
uncontrollable
o Proactive – Attempting to influence
and shape them
 No best way to react
 Depends on the organization,
management, and the situation
 Competitive Forces
 Competition – Other organizations that
market products that are similar to or can
be substituted for a marketer’s products
in the same geographic area
o Most firms have competition
o When marketing managers define
the target market(s) their firm will
serve, they establish a set of
competitors
o Marketing managers must consider
the type of competitive structure in
which the firm operates
 Type of Competitors
o Brand Competitors – Firms that
market products with similar
features and benefits to the same
customers at similar prices
o Product Competitors – Firms that
compete in the same product class
but market products with different
features, benefits, and prices
o Generic Competitors – Firms that
provide very different products that
solve the same problem or satisfy
the same basic customer need
o Total Budget Competitors – Firms
that compete for the limited
financial resources of the same
customers
 Competitive Structures
o Monopoly
 A competitive structure in
which an organization offers a
product that has no close
substitutes, making that
organization the sole source of
supply
o Oligopoly
 A competitive structure in
which a few sellers control the
supply of a large proportion of a
product
o Monopolistic Competition
 A competitive structure in
which a firm has many potential
competitors and tries to develop
a marketing strategy to
differentiate its product
o Pure Competition
 A market structure
characterized by an extremely
large number of sellers, none
strong enough to significantly
influence price or supply
  Does not exist in the real world,
although some industries come
close
 The Business Cycle
 A pattern of economic fluctuations that
has four stages:
 Buying Power and Income
 Monitoring Competition
o Helps determine competitor’s
strategies and their effects on firm’s
own strategies
 Guides development of
competitive advantage and
adjusting firm’s strategy
 Provides ongoing information
about competitors
 Information about competitors
allows marketing managers to
assess the performance of their
own marketing efforts and to
recognize the strengths and
weaknesses in their own
marketing strategies
o Prosperity – Low unemployment
and relatively high total income,
which together ensure high buying
power (provided the inflation rate
stays low)
o Recession – Unemployment rises
and total buying power declines,
stifling both consumer and business
spending
o Depression – Unemployment is
extremely high, wages are very low,
total disposable income is at a
minimum, and consumers lack
confidence in the economy
o Recovery – The economy moves
from depression or recession to
prosperity
 Difficult to ascertain how
quickly and to what level
prosperity will return
 Maintain as much flexibility in
marketing strategies as possible
to allow for any needed
adjustments
o Buying Power – Resources, such as
money, goods, and services, that can
be traded in an exchange
o Income – For an individual, the
amount of money received through
wages, rents, investments, pensions,
and subsidy payments for a given
period
o Disposable Income – After-tax
income
o Discretionary Income – Disposable
income available for spending and
saving after an individual has
 purchased the basic necessities of
food, clothing, and shelter
 Credit
o Credit enables people to spend
future income now or in the near
future
o Credit increases current buying
power at the expense of future
buying power
o Factors affecting credit use:
 Must be available
 Interest rates
 Credit terms (such as size of
down payment and amount and
number of monthly payments)
 Willingness to Spend
o An inclination to buy because of
expected satisfaction from a product,
influenced by the ability to buy and  Legislation
numerous psychological and social o Procompetitive Legislation
forces  Preserves competition
 Factors that affect consumers’  Laws have been created to
general willingness to spend: prevent businesses from gaining
 Expectations about future an unfair advantage through
employment bribery
 Income levels o Consumer Protection Legislation
 Prices  Protects people from harm
 Family size  Prohibits hazardous products
 General economic  Requires information disclosure
conditions  Aimed at particular marketing
 Political Forces activities
 Enactment of legislation  Table 3,2 – Laws that affect marketing
 Legal decisions interpreted by courts decisions
through civil and criminal cases
 Influence of regulatory agencies
 Marketers may:
o View political forces as beyond their
control and simply adjust to
conditions that arise
o Influence the process through
contributions and lobbying
 Legal and Regulatory Forces
 Figure 3.1 – L&R Forces
 Encouraging compliance with Law
o Current trend is away from legally-
based organizational compliance
programs
 Emphasis on providing
incentives to create ethical and
responsible corporate cultures
o Regulatory agencies monitor
marketing activities and may
enforce some laws
o Table 3.3 – Major Federal
Regulatory Agencies

o Table 3.4 – Self Regulatory Issues

in Marketing
  Intellectual property protection
issues
 Adoption and Use of Technology
o Firms must keep up with technology
to maintain their status as market
leaders
 Must ensure that their
technology is not easily copied
o Use a technological assessment to
learn about and attempt to foresee
the effects of new products and
processes
 Estimate whether benefits of
adopting a specific technology
 Technological Forces outweigh costs
 Sociocultural Forces

 Technology
o The application of knowledge and
tools to solve problems and perform
tasks more efficiently
o Impacts of technology:  The influences in a society and its
 Dynamic change culture(s) that change people’s:
 Ability to reach customers o Attitudes
 Self-sustaining in nature; spurs o Beliefs
more development o Norms
o Rapid technological growth and o Customs
change are expected to accelerate o Lifestyles
 Impact of Technology  Determine what, where, how, and when
o Mobile devices and consumers’ people buy products
increasing use of the Internet have  Demographic and Diversity
changed: Characteristics
 How people communicate o Changes in a population’s
 How marketers reach demographic characteristics lead to
consumers changes in how people live and
o Can improve productivity and consume products
opportunities for e-commerce  Increasing market of retired
o Negative impacts include: Baby Boomers
 Concerns over privacy  Generation Y
  Growing Hispanic/Latino
market in the U.S.
o A more diverse customer base
means marketing practices must be
modified and diversified to meet
changing needs
 Cultural Values
o Changes in cultural values alter
people’s needs/desires for products
 Health, nutrition, and exercise
growing in importance (sales of
organic foods, herbal remedies,
and vitamins have escalated)
 Definition of family is changing
 Children continue to be very
important
 Trend towards eat-out and take-
out meals
 Green marketing helps establish
long-term consumer
 Both strategy and tactics require a broad
relationships by maintaining,
understanding of the target audience,
supporting, and enhancing the
their taste and preference and motivation
natural environment
to buy products apart from
 Strategic marketing vs Tactical marketing
understanding the status of the industry,
 In simple terms, strategy marketing is a
the company’s status and that of the
plan to achieve a target or a goal – it
competitors.
could be achieving more sales volume in
o Market share and strength of the
rural areas, it could be getting more
company:
women votes in the Assembly election or
 How much of the market share
it could be emerging number one in
you have in the industry and
cosmetics market and so on.
how you fare against the
 How you execute the plan is called
competition is vital for making
tactic. To gain women votes, politicians
a marketing plan.
may distribute shares for free in an area,
 A comprehensive SWOT
to emerge the leader in cosmetics
analysis (Strength, Weaknesses,
industry, a company may spend heavily
Opportunities and Threats ) are
on mass media campaigns and
required to do a situation
sponsoring beauty pageants.
analysis.
 According to Jim Joseph, marketing  Market strength refers to
expert and author, tactics are important number of your brands in top
in the sense that it connects with the five selling category, weakness
customers and motivates them to buy. could be a saturated market or a
lack of experienced people in
marketing and sales.
 Opportunities could include
legislative changes, new
markets opening up or the
 disintegration of a market
leader.
 The product needs to be
positioned in the market- entry,
mid or premium. It depends on
your competition, which all
buyers are likely to buy the
product and at what price.
o Identify the target audience:
 A marketer should be able to
clearly identify the target
audience for its products and
services. It should be defined in
terms of demographics age, sex,
family, income, lifestyle levels
among others.
 Are they conservative or
traditional, do they have higher
disposable incomes and
motivated to spend more? Are
they business class, salaried and
at marginal income levels?
 Long term marketing goal
should be defined:
 A marketing goal can be
attain number one
position in geography or
with respect to a particular
brand or it could be to
achieve more sales.But it
is very important to
specify in quantitative
terms, say 10 or 25%
increase in sales.
o Marketing Communication strategy
to be developed:
 Once the product has been
developed and target audience
have been defined, the next step
is to devise marketing
communication strategies to
reach the target and persuade
them to act.
 It could be through mass media
advertisements, social media
campaigns (Twitter, FaceBook,
Pinterest, Reddit).Then
marcomm strategy outlines the
tactics to be undertaken to
achieve the objectives and the
execution of the tactic brings
the desired impact on the
product and in the market.
o Create a Marketing Budget:
 At the outset whether it is a
start-up or an established,
creating annual marketing
budgets is of paramount
importance. A mix of
newspaper, television, social
media, hoardings and banners
may be required to develop the
brand and achieve more sales.
 It is very important to keep the
margin on sales as a barometer
of how much should be spent on
advertising promotion. In
industries with thin margins,
spending too much on
advertising may not be the
desired tactic.
 On the other in industries such
as drinking cola where the
production costs are low
compared to selling price,
companies can afford to raise
the marketing budget to get
increased market share.
 Effort should be taken to keep
marketing costs within the
budgeted costs or else it may be
difficult to get finance approval.
o Tactics-Everything revolves around
the 4 P’s
 It was once believed that if you
knew the four P’s of marketing
you knew everything- Product,
Pricing, Place and Promotion.
However, market involves
much more complexities and
not easily understood by
common man.
 Strategic marketing involves
adjusting the price of your price
position, place of marketing and
perhaps the product itself. For
 example, Maruti Suzuki Ltd, the
leading seller of passenger cars
in India re-launched its
premium brands that didn’t
succeed in the market through
design changes and re-
positioning the models in a new
showroom called Nexa.
 And results are to be seen the S-
Cross premium cross over brand
clocked sales of 50,000 in six
months after relaunch,
according to Suzuki.
o Pricing the basic tactic
 Pricing is the basic tactic
adopted by the companies to
attain their objectives. However,
it is also the most complex of
the tactics to be pursued by
marketers.
 Too high a price could dissuade
buyers away from the product
and get attracted to competitive
offers while a price that may be
perceived as too low may cause
buyers to doubt its quality and
value.
 Contrary to popular perception,
price is not calculated on the
basis of cost plus a reasonable
profit. It is based on the brand
image created in the consumer
minds and a level the market is
willing to bear.
 According to experts, pricing as
a marketing instrument is
difficult to leverage effectively
as it involves decision making
horizontally and vertically
within an organization.
 Pricing tactics are usually made
on the basis of supply and
demand, its elasticity and other
parameters. Price elasticity
refers to a percentage change in
quantity demanded in response
to a change in price upward or
downward.
 Pricing has a greater leverage
on products that have high
elasticity of demand as it can
cause significant increase or
decrease in revenue. There are
two types of pricing –strategic
Marketing and tactical pricing.
 Strategic Marketing pricing
takes into account long-term
profit objectives of the
organization while tactical
pricing is about achieving short
term objectives such as festival
offer, end-of-season sale at 50%
off and so on.
o Product Dynamic
 Sometimes the product may
have to be altered or abandoned
and a new product developed in
view of the competition.
Musquito repellents in India
were initially smoke coils which
caused breathing problems for
many people and also littered
the place with the ash.
 Thereafter, companies started to
develop liquid repellents that
worked on electric current by
slowly discharging the liquid
and smell driving away
mosquitoes.
o Place and Geographic Targeting:
 Most products are sensitive to
geographies and cultural
differences. What sells in the
rural market may not appeal to
the urban market.
 Low priced cars may be more
suitable for emerging markets
than developed markets while
places with extreme cold,
humidity and hot conditions
require different kinds of
products specifically for that
region.
o Promotions and the changing
technologies
  Marketing promotion involves
communicating the brand
message to the consumer
through mass media, email
campaigns, social media,
hoardings, banners, taking part
in events, trade fairs.
 Marketing communication
activities are part of the
marketing strategy to achieve
certain long term objectives of
branding, achieving more sales,
more market share, or related
objectives.
o (market share), developing
 The millennials were those born
in the US between 1980 and
2000 have a different mindset
towards buying, spending and
consumption patterns. They
comprise 79 million people with
a purchasing power of $170 bn
a year.
 This group are more disposed
online, social media and mobile
technologies. Therefore, more
effort needs to be taken to
address this target group. What
sets apart Millennials from
boomers and Gen Xers are they
tend to share everything with
friends online.
 Therefore, brands can capitalize
on that behavior by giving
Millennials positive customer
experiences to share a tweet
about the company or let others
know they have bought your
product.
 Conclusion
o Changing market dynamics requires
change in marketing strategies and
tactics.
o Sometimes a refusal to change with
the changing times can cost a
product dear
o According to Mikal E Belicove,
GSOT- goal, strategy. Objective and
tactics are the best ways to
conceptualise a marketing plan. A
goal is a broad primary outcome
while strategy is the plan, objective
is the measurable step and tactics are
the tools and techniques used to
implement the strategy.
o Any marketing strategy will not help
unless both strategic marketing and
tactical marketing are employed in
combination.
o The pre-requisites for a successful
campaign are knowing the status of
the company vis-as-vis competition
marketing communication and
understanding the target audience.
o With a proper understanding of all
the above factors any campaign may
end up to be a failure not able to
achieve the objectives.
o Strategic marketing is vital for
achieving long term goals of the
company and those only adopting
tactical marketing on an adhoc basis
risk the possibility of not able to
convert potential leads.
o Disruptive technologies,
recessionary market conditions, new
competition from other industry
verticals and competition within the
industry are all factors that could
impact the fortunes of brands and
hence marketers need to be
constantly on their toes to stay
ahead.
o No marketer would be wise enough
to ignore the inbound marketing
strategies now in vogue thanks to
rise in internet penetration, websites,
blogging and search engine
optimization (SEO) techniques.
 The Marketing Environment
 SWOT Analysis
o SWOT analysis is a tool for auditing
an organization and its environment.
It is the first stage of planning and
 helps marketers to focus on key today, and where it could be in
issues. SWOT stands for strengths, the future.
weaknesses, opportunities, and  It should always be specific.
threats. Strengths and weaknesses Avoid grey areas.
are internal factors. Opportunities  Always apply the tool in
and threats are external factors. A relation to your competition i.e.
strength is a positive internal factor. better than or worse than your
A weakness is a negative internal competition.
factor. An opportunity is a positive  Keep your audit short and
external factor. A threat is a negative simple. Avoid complexity and
external factor. over analysis
 It is subjective.
o Strengths and weaknesses are
internal factors.
 Examples
 Your specialist marketing
expertise.
 A new, innovative product
or service.
 Location of your business.
 Quality processes and
o We should aim to turn our procedures.
 Any other aspect of your
weaknesses into strengths, and our
business that adds value to
threats into opportunities. Then
your product or service.
finally, SWOT will give managers
 A weakness could be:
options to match internal strengths
 Lack of marketing
with external opportunities. The
expertise.
outcome should be an increase in
 Undifferentiated products
‘value’ for customers – which
or services (i.e. in relation
hopefully will improve our
to your competitors).
competitive advantage.
 Location of your business.
o The main purpose of the analysis
 Poor quality goods or
has to be to add value to our
services.
products and services so that we can
 Damaged reputation.
recruit new customers, retain loyal
o Opportunities and threats are
customers, and extend products and
external factors.
services to customer segments over
 Examples
the long-term. If undertaken
 A developing market such
successfully, we can then increase
as the Internet.
our Return On Investment (ROI).
 Mergers, joint ventures or
o Tips in making SWOT
strategic alliances.
 Be realistic about the strengths
 Moving into new market
and weaknesses of your
segments that offer
organization.
improved profits.
 It should distinguish between
 A new international
where your organization is
market.
  A market vacated by an
ineffective competitor.
 A threat could be:
 A new competitor in your
home market.
 Price wars with
competitors.
 A competitor has a new,
innovative product or
service.
 Competitors have superior
access to channels of
distribution.
 Taxation is introduced on
your product or service.
 PESTEL Analysis
o A PESTEL analysis is an acronym
for a tool used to identify the macro
(external) forces facing an
organisation. The letters stand for
Political, Economic, Social,
Technological, Environmental and
Legal. Depending on the
organisation, it can be reduced to
PEST or some areas can be added
i.e. International.
o Political Factors:
 These determine the extent to
which government and
government policy may impact
on an organisation or a specific
industry. This would include
political policy and stability as
well as trade, fiscal and taxation
policies too.
o Economic Factors:
 These factors impact on the
economy and its performance,
which in turn directly impacts
on the organisation and its
profitability. Factors include
interest rates, employment or
unemployment rates, raw
material costs and foreign
exchange rates.
o Social Factors:
 These factors focus on the
social environment and identify
emerging trends. This helps a
marketer to further understand
their customers’ needs and
wants. Factors include changing
family demographics, education
levels, cultural trends, attitude
changes and changes in
lifestyles
o Technological Factors:
 These factors consider the rate
of technological innovation and
development that could affect a
market or industry. Factors
could include changes in digital
or mobile technology,
automation, research and
development. There is often a
tendency to focus on
developments only in digital
technology, but consideration
must also be given to new
methods of distribution,
manufacturing and also
logistics.
o Environmental Factors:
 These factors relate to the
influence of the surrounding
environment and the impact of
ecological aspects. With the rise
 in importance of CSR
(Corporate Sustainability
Responsibility), this element is
becoming more important.
Factors include climate,
recycling procedures, carbon
footprint, waste disposal and
sustainability
o Legal Factors:
 An organisation must
understand what is legal and
allowed within the territories
they operate in. They also must
be aware of any change in
legislation and the impact this
may have on business
operations. Factors include
employment legislation,
consumer law, healthy and
safety, international as well as
trade regulation and restrictions.
 Political factors do cross over
with legal factors; however, the
key difference is that political
factors are led by government
policy, whereas legal factors
must be complied with.
o Why do we need PESTLE Analysis?
 A PESTEL analysis helps an
organisation identify the
external forces that could
impact their market and analyse
how they could directly impact
their business. It’s important
when undertaking such an
analysis that the factors
affecting the organisation are
not just identified but are also
assessed – for example, what
impact might they have on the
organisation? The outcomes of
a PESTEL analysis can then be
used to populate the
opportunities and threats in a
SWOT analysis.
 Conclusion
o What is the difference between
PESTLE and SWOT?
 The major difference between
SWOT and PESTEL analysis is
that PESTEL is used to analyse
a company’s external
environment while SWOT can
be used for both internal as well
as external evaluations.
 SWOT Analyses can be used to
identify the current market
position of the company while
PESTEL is used to identify the
impact of external
environmental factors which
may affect the business
operations, especially when
expanding the business
operations into various other
regions.
 Marketing Research
 Market research is a critical component
when you’re launching a product, try to
improve your existing service, or when
you’re just looking to be a step ahead of
your competitors. It will provide you
with all the information you need to
make a better business decision.
o It is crucial for a better
understanding of your customers
 Who will buy your product?
Who are your ideal customer
personas? How often will they
buy? What do they need? What
do they want, expect?
 The more answers you have the
more understanding you’ll get.
This will result directly in
meeting the customer’s needs
better than your competitors.
 Market research will help you
map out the full profile of your
ideal customer. Knowledge of
your customers will help you
determine the market size and
what triggers them to buy.
You’ll gain valuable insights
like their age, location, gender
& income, which will help you
in creating effectively tailored
 marketing and pricing
campaigns.
o 2. Knowledge about your
competitors, and how they approach
the market
 The competitors are taking
away your customers and win in
the marketplace. That’s because
they’ve done their research
ahead of you. And now, you
need to do the same if you want
to stay in the game.
 Market research will help assess
the market to identify both key
players and those on the rise.
Furthermore, it will help you
find the weaknesses in your
competitor’s approach. These
are gaps that you can utilize to
gain more customers. You can
also learn what performed the
best for the competition. In turn,
you will be able to think more
creatively while modeling your
new strategy.
 Knowing as much as you can
for your competition will be
pivotal to the success of your
business.
o Testing your product before launch
 Testing is a very important part
of learning what works before
jumping into the business
world. Every business decision
should be tested before fully
exposing to your target
audience. By market testing
your idea or product, you will
save yourself from additional
expenses and most importantly,
from delivering a bad product to
the marketplace.
 You can never be 100% sure
that your product will instantly
connect with your potential
customer. With market research,
you’ll find out what approach
you should take when
marketing the product. You’ll
also find the key message that
resonates with clients.
o You won’t go out of business
 “It is not the strongest or the
most intelligent who will
survive but those who can best
manage change.” — Charles
Darwin
 We’re not exactly sure if
Darwin did some market
research in his free time. But,
his words are so important and
still echoing today in possibly
the most innovative era in the
history of mankind.
 We all saw how giant brands
like now-bankrupt Blockbuster
and Nokia that still struggles to
get back in the mobile game
failed in their market
predictions and are nearly
forgotten by consumers today.
 Netflix and Apple did their
market research right prior to
any other competitors and
utilized every open gap in the
movie shows and mobile phone
segments.
 So, in order to remain in
business and stay relevant, you
should not only anticipate
change, but you need to be able
to predict change too. That’s
how good your market research
needs to be!
o Business growth
 Market research helps you
comprehend the demands of
your customers, detect more
business opportunities, plan the
perfect marketing campaign,
minimize losses, and keep track
of the competition. It allows
organizations to classify their
objectives while following the
current trends and take
 advantage by reaching out to
their target audience.
 Identifying problems before
they happen is crucial if you
want to grow. Effective market
research will not only help you
predict some of the pitfalls that
can occur but also it will save
you a lot of money too. Your
solution may look like a proper
market fit, but if it’s not the
case, you’re in big trouble.
 The process of market research
itself is designed to reduce the
risk and to make the marketing
strategy cost-effective for your
business.
 Conclusion.
o To conclude, market research
provides you with important
information that will help you
identify and analyze the market
needs, your customers, and your
competitors.
 Consumer and Business Markets
 Business Markets in Comparison to
Consumer Markets:
o Market Structure:
 i. Business markets have fewer
sellers and buyers in any market
segment than do consumer
markets.
 ii. Customers in consumer
markets initiate a direct demand
with their purchases. The
demand for business products or
services depends on the level of
activity that the buying
organization can create in its
own markets. Thus business
demand is derived. This derived
demand would not exist if the
buyer organization could not
find customers for its own
products or services.
 iii. The business buyer may buy
an equipment to produce five
hundred units a day. A second
equipment will be required only
if sales are expected to exceed
five hundred units. But as soon
as the business buyer’s sale
exceeds five hundred units, he
will buy another equipment,
increasing the sale of business
marketer’s product by hundred
per cent. As a result, there is no
direct one-to-one relationship
between the business buyer’s
sales fluctuations and the
business marketer’s sales. This
makes the sales to business
buyers more volatile than
changes of demand experienced
in consumer markets by a
retailer.
 iv. When business buyers see
prices starting to decline, they
may postpone buying in the
expectation of obtaining an
even lower price later. The
opposite happens if the business
buyer anticipates continuing
price increases.
 In this case, when prices began
to rise, more volume than is
immediately needed is
purchased to avoid paying even
higher prices later. Such reverse
price elasticity of demand is
rare in consumer markets.
 v. Business markets include the
various early, value-adding
stages of manufacturing and
distributing consumer goods,
and also the sales of business
goods and services to
manufacturing, processing,
commercial, institutional and
government organizations. The
business market is significantly
larger than the consumer
market.
 vi. The organizational buying
unit called decision-making unit
involves several individuals
 because various departments of
an organization are affected by
the purchase. The purchase of
an equipment may affect the
quality control department, the
plant manager’s budget, the
operator’s productivity and the
purchase department.
 vii. Businesses tend to
concentrate geographically
because of the availability of
natural resources or of skilled
work force, the distribution
advantages, or the desire to be
close to customers. Thus,
business markets tend to be
geographically concentrated and
business marketers have to
travel long distances from one
cluster of customers to another.
Consumer markets are more
diffuse
o Marketing Perspective:
 i. Consumer marketers use
demographic variables like age,
income, location and socio-
psychological variables like
attitudes, preferences,
personality and lifestyle to
segment their markets. Business
marketers are segmented on the
basis of industry, end market
served, level of technology,
ownership and characteristics of
the buying unit.
 ii. Business markets have higher
investments in capital
equipment’s and R&D.
Consumer marketers’
investments are directed more
toward marketing activities like
researching their huge customer
base and promoting to mass
markets.
 iii. Consumer marketers seek
regional or national markets
because their products are
created to appeal to local tastes.
Business goods are less
dependent on regional tastes
and preferences. Also, their
specialized technologies and
limited applications require that
customers be sought outside
home markets to achieve
economic production volumes
and to justify high R&D costs
and capital investments.
Therefore business marketers
must have more global
perspectives of markets, in
terms of both customers and
competitors.
 iv. Most consumer marketers
seek market share and sales
volumes. Business marketers
are more likely to have a
sizeable share of highly
segmented, smaller, specialized
markets, resulting in more
restricted sales volumes. Thus
business marketers focus on
improving profits in the short
run.
 v. In consumer markets,
innovation involves greater
emphasis on style and
incremental changes to products
that can justify model changes.
Innovation tends to be more of
demand-pull type, i.e., new
products are developed as a
result of research of customer
needs. Innovation in business
markets is characterized by
R&D inspired technological
push and radical-breakthroughs
that may revolutionize the entire
industry. Such innovations
would not come by trying to
identify with unsatisfied
customer needs.
 vi. Business marketers deal with
smaller number of customers,
frequently on a face-to-face
basis. They are more sensitive
 and responsive to their
customers’ requirements. Thus
business marketers are far more
customer oriented than
consumer marketers. Consumer
marketers’ relations are
distanced by long, indirect
channels of distribution and are
reduced to a mass of indifferent
transactions. Business buyers
and sellers usually enter stable,
long-term relationships in which
each party depends on the other
for continuing business success.
Thus strong loyalty is
developed between buyer and
seller in business markets.
Consumer marketers are
desperately trying to engender
loyalty among their customers.
They have not been much
successful. Loyalty in business
markets is the result of
dependence that buyers and
sellers have on each other.
Unless the state of such
dependence is replicated in
consumer markets, customers of
consumer products will remain
fickle-minded.
 vii. In business markets, two
organizations can be buyers of
each other’s products. An
automobile manufacturer may
require computers for its
employees and the computer
manufacturer may require
automobiles for its employees.
In such situations reciprocity
may be practiced i.e., they
decide to buy from each other.
Reciprocity is rarely possible in
consumer markets.
 viii. Among the customers of
business marketers there are
some customers whose business
is so important that its loss
would seriously erode the
marketer’s sales volume and
profitability. These important
customers are called key
accounts. The marketer must
maintain close contact with
these important customers to
retain its business with them. A
similar situation is absent in
consumer markets. A small set
of customers will not be able to
affect the sales of a consumer
product severely because the
number of customers is very
large.
 ix. For many business marketers
educating their customers is an
important task. Business
marketers send their technical
and other staff to the facility of
the buyer for long periods.
Employees of the buyer and
seller organizations work
together to solve problems.
Business goods like
equipment’s have more
complete instruction manuals,
specification sheets and
maintenance books than
consumer equipment’s.
o Customer Behaviour:
 i. Because their number of
customers is small and there is
frequent face-to-face contact,
business marketers are closer to
customers and more in tune
with customers’ buying
behavior.
 ii. The number of customers in
business markets are small, but
their per order size is normally
high. They buy to keep in
inventory so that the item can
be used in future. They buy in
bulk because they want to
minimize transportation cost
and the cost incurred in placing
an order. They also buy in bulk
and keep inventory to minimize
 chances of disruption in their
work if a supplier failed to
supply on time. Business buyers
may have contracts to purchase
items for a year with a supplier.
Long-term contracts lasting for
the life-time of the component
are becoming common in
business markets. Buyers and
sellers become interested in
each other’s operations in many
ways. Such intrusive
relationships are not very
frequent in consumer markets.
 iii. The purchasing motives of
business buying are maintaining
and furthering organizational
goals. These motives are
rational, economic, objective
and profit or efficiency oriented.
Business buyers are technically
qualified purchasing specialists.
They may have taken
specialized training. In large
companies they may be
specializing in certain type of
products. A purchaser may be
responsible for buying paints
only. Emotions and self-
gratifying motives underlie
most consumer purchases.
 iv. Business buyers may impose
substantial penalties for non-
performance by suppliers. Such
penalties may be built in the
contracts with the suppliers. A
contract may specify that a
supplier pay a certain amount
for every day’s delay in delivery
of an order or in the completion
of equipment installation in a
plant. Such penalties have not
yet become part of consumer
markets.
 v. If a business marketer’s plant
is running under capacity, or a
customer’s order today has the
potential of significant follow-
on business in the future, or if
the order represents a sizeable
portion of the marketer’s
business, the customer can exert
a strong influence on the
business marketer’s price,
product design, delivery and
other dimensions of the
supplier’s operations. The
aggressive use of buying power
by a buyer organization to
persuade a supplier to make a
product that more closely meets
the buyer’s requirement is
called reverse marketing. Such
buying power does not exist in
consumer markets.
 vi. Business buyers show strong
loyalty to their current supplier.
Such supplier loyalty is an
outcome of the strong
interdependence between
business buyers and their
suppliers. The business buyers
who change suppliers face high
switching costs, such as the
costs of training a new supplier
in the intricacies of the buyer’s
business, the possible loss of
confidential trade secrets if the
supplier is abandoned, and the
high cost of identifying an
alternative supplier. In
consumer markets, customer
loyalty to retailers or brands is
weak and the consequence of
supplier or brand switching is
not severe to customers.
 vii. The business buyer’s
involvement in a purchase is
much greater than that of a
customer in consumer market.
The business buyer must plan
his requirements and specify
technical and delivery
requirements of the purchase,
often with the assistance of the
supplier. The business buyer
 may help the supplier to
develop the capability needed to
supply the item. Negotiations
may go on for a long time about
specifications, quality and price.
The buyer monitors supplier
performance over the life of
contract.
 viii. The business buying
decision process is complex and
involves several functional
areas of the buying
organization. Each function
may have a different point of
view and interest in the
purchase. Committees discuss a
purchase using documented
data, proposals, specifications
and supplier analysis. Business
buyers often have the option of
making the product themselves
instead of buying it. The
business decision making
process is observable and
moves through distinctive
stages. The decision making
process for major supplies may
take a long time. In the
consumer markets the customer
decision making process is
comparatively simple and short.
It takes place in the buyer’s
mind and cannot be observed.
The option of making the
product himself is generally not
available with the customer
 ix. The business buyer’s risk
can be very high. It is greatest
in the new-task situation, in
which the buyer has not
encountered such a buying
situation. Risk is least in the
straight-rebuy situation, in
which the item just has to be
reordered. But even in straight
rebuy there are risks such as the
item not being delivered on
time. Performance risk is
reduced by purchasing from
large, well-known and reputable
suppliers and by continuing to
buy from the same supplier. In
consumer markets the risks to
customers are less.
 Marketing Segmentation, Market Targeting,
and Market Positioning (STP)
 How to use Segmentation, Targeting and
Positioning (STP) to develop marketing
strategies
o Today, Segmentation, Targeting and
Positioning (STP) is a familiar
strategic approach in Modern
Marketing. It is one of the most
commonly applied marketing
models in practice. In our poll
asking about the most popular
marketing model it is the second
most popular, only beaten by the
venerable SWOT / TOWs matrix.
This popularity is relatively recent
since previously, marketing
approaches were based more around
products rather than customers. In
the 1950s, for example, the main
marketing strategy was 'product
differentiation'.
o The STP model is useful when
creating marketing communications
plans since it helps marketers to
prioritise propositions and then
develop and deliver personalised
and relevant messages to engage
with different audiences.
 o The needs of each segment are the
same, so marketing messages should
be designed for each segment to
emphasize relevant benefits and
features required rather than one size
fits all for all customer types. This
approach is more efficient,
delivering the right mix to the same
group of people, rather than a
scattergun approach.
o Well known ways to segment your
audience include:
 Demographics
 Breakdown by any
combination: age, gender,
income, education,
ethnicity, marital status,
education, household (or
business), size, length of
residence, type of
residence or even
 Applying Segmentation, Targeting and profession/Occupation.
Positioning to digital communications  Psychographics
o STP is relevant to digital marketing  This refers to 'personality
too at a more tactical and emotions' based on
communications level. For example, behaviour, linked to
applying marketing personas can purchase choices,
help develop more relevant digital including attitudes,
communications as shown by these lifestyle, hobbies, risk
alternative tactical email customer aversion, personality and
segmentation approaches. leadership traits.
magazines read and TV.
While demographics
explain 'who' your buyer
is, psychographics inform
you 'why' your customer
buys.
 Lifestyle
 This refers to Hobbies,
recreational pursuits,
entertainment, vacations,
and other non-work time
pursuits.
 Belief and Values
 Refers to Religious,
political, nationalistic and
cultural beliefs and
 How to use STP values.
  Life Stages  In the example here, I’ve taken
 Life Stages is the some cars available in the UK.
Chronological This isn’t a detailed product
benchmarking of people’s position map, more of an
lives at different stages. illustration. If there were no
 Geography cars in one segment it could
 Drill down by Country, indicate a market opportunity.
region, area, metropolitan
or rural location,
population density or even
climate.
 Behaviour
 Refers to the nature of the
purchase, brand loyalty,
usage level, benefits
sought, distribution
channels used, reaction to
marketing factors.
 Benefit
 Benefit is the use and
satisfaction gained by the
consumer.
o Market Targeting
 Criteria Size: The market must
be large enough to justify Lesson 4: Developing Marketing Mix
segmenting. If the market is  Marketing Research
small, it may make it smaller.  The systematic design, collection,
 Difference: Measurable interpretation, and reporting of
differences must exist between information to help marketers solve
segments. specific marketing problems or take
 Money: Anticipated profits advantage of marketing opportunities
must exceed the costs of o It is a process for gathering
additional marketing plans and
information that is not currently
other changes.
available to decision makers
 Accessible: Each segment must
o Purpose is to inform an organization
be accessible to your team and
about:
the segment must be able to
 Customers’ needs and desires
receive your marketing
 Marketing opportunities for
messages
particular goods and services
 Focus on different benefits:
 Changing attitudes and purchase
Different segments must need
patterns of customers
different benefits.
o The importance of Marketing
o Product Positioning
Research
 Positioning maps are the last
 Facilitates strategic planning
element of the STP process. For
 Assesses opportunities/threats
this to work, you need two
 Ascertains potential for success
variables to illustrate the market
overview.
 Helps determine feasibility of a
strategy
 Improves marketer’s ability to
make decisions
o Types of Research
 Marketing research can involve
two forms of data:
 Qualitative data yields
descriptive non-numerical
information
 Quantitative data yields
empirical information that
can be communicated
through numbers
 Marketers conduct either
exploratory research or
conclusive research
 Exploratory Research
 Research conducted to
gather more information
about a problem or to
make a tentative
hypothesis more specific
 To better understand a
problem or situation
and/or to help identify
additional data needs or
decision alternatives
 Customer advisory boards
 Small groups of
actual customers who
serve as sounding
boards for new-
product ideas and
offer insights into
their feelings and
attitudes toward a
firm’s products and
other elements of its
marketing strategy
 Focus group
 A study in which a
small group of 8-12
people are
interviewed often
informally, without a o Marketing Research Process
structured
questionnaire, to
observe interaction
when members are
exposed to an idea or
a concept
 Conclusive Research
 Research designed to
verify insights through
objective procedures and
to help marketers in
making decisions
 What percentage of
consumers will
consider an electric
car purchase?
 Used when the marketer
has one or more
alternatives in mind and
needs assistance in the
final stages of decision
making
 Descriptive Research –
Research conducted to
clarify the characteristics
of certain phenomena to
solve a particular problem
 Demands prior
knowledge
 Assumes problem is
clearly defined
 May require
statistical analysis
 Experimental Research –
Research that allows
marketers to make causal
inferences about
relationships
 Provides strong
evidence of cause and
effect
 Need a dependent
variable and
independent
variable(s) in order to
set-up research
project

 Step 1: Locating and Defining
problems
 Focus on uncovering the
nature and boundaries of a
situation
 The first sign of a
problem is a
departure from
normal or expected
results
 Define the problem
 Marketers must
define the nature and
scope of the situation
in order to pin down
the pr  Step 3: Collecting Data
 Determine precisely
what is the aim of
research O
 Researchers and
decision makers
should remain in the
problem or issue
definition stage until
they have determined
precisely what they
want from marketing
research and how
they will use it
 Research will often be in-
depth
 Step 2: Designing Research
Project
 Research Design
 An overall plan for
obtaining the
information needed to
address a research
problem or issue
 Hypothesis
 An informed guess or
assumption about a
certain problem or set
of circumstances
 Accepted or rejected
hypotheses act as
conclusions for the
research effort
 Reliability and Validity
 Reliability – A
condition that exists
when a research
technique produces
almost identical
results in repeated
trials
 Validity – A
condition that exists
when a research
method measures
what it is supposed to
measure
 Primary Data
 Data observed and
recorded or collected
directly from
respondents
 Is collected to address
a specific problem
that cannot be
answered by
secondary data alone
 Secondary Data
 Data compiled both
inside and outside the
organization for some
purpose other than
the current
investigation
 Methods of Collecting
Data
 Population – All the
elements, units, or
individuals of interest
to researchers for a
specific study
 Sample – A limited
number of units
chosen to represent
the characteristics of
a total population
  Sampling – The to calculate the
process of selecting likelihood that a
representative units specific element of
from a total the population being
population studied will be
chosen
- Quota – in which
researchers divide
the population
into groups and
then arbitrarily
choose
participants from
each group
 Survey Methods
 Mail survey – A
 Sampling research method in
 Probability Sampling which respondents
– A type of sampling answer a
in which every questionnaire sent
element in the through the mail
population being  Telephone survey – A
studied has a known research method in
chance of being which respondents’
selected for study answers to a
- Random – All questionnaire are
units in a recorded by an
population have interviewer on the
an equal chance phone
of appearing in - Telephone depth
the sample, and interview – An
the various events interview that
that occur have an combines the
equal or known traditional focus
chance of taking group’s ability to
place probe with the
- Stratified – The confidentiality
population is provided by
divided into telephone surveys
groups with a  Personal interview
common attribute survey – A research
and a random method in which
sample is chosen participants respond
within each group to survey questions
 Non-probability face-to-face
Sampling – A - In-home (door-to-
sampling technique in door) interview –
which there is no way A personal
 interview that
takes place in the
respondent’s
home
 Shopping mall
intercept interview –
A research method
that involves
interviewing a
percentage of
individuals passing
by “intercept” points
in a mall
- On-site computer
interview – A
variation in which
respondents
complete a self-
administered
questionnaire
displayed on a
computer monitor
 Online survey – A
research method in
which respondents
answer a
questionnaire via e-
mail or on a website
- Marketers can use
digital media
forums such as  Products vs Services
chat rooms, blogs,  Goods are basically objects or products
newsgroups,
social networks,
and research  Services on the other hand are output of
communities to
identify trends in
interests and
consumption
patterns
 Step 4: Interpreting Findings
 The first step in drawing
conclusions from most
research is displaying the
data in table format
 The data must be analyzed
next:
 Statistical
interpretation –
Analysis of what is
typical and what
deviates from the
average
 Data requires careful
interpretation
 Managers must
understand the research
results and relate them to
a context that permits
effective decision making
 Step 5: Reporting Findings
 Prepare a formal, written
document
 Determine level of detail
 Clear and objective
presentation
 Consider the intended
audience
 Point out deficiencies in
the data
 Researchers often give
their summary and
recommendations first
 For decision makers
who do not have time
to study how the
result were obtained
which have to be manufactured, stored,
transported, marketed and sold.
individuals and they can be a collective
or individualistic action or performance
by an individual
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