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BBM3205 Marketing Management
BBM3205 Marketing Management
BBM3205 Marketing Management
Pre-requisites
Purpose: To expose the learner to the fundamentals of strategic marketing management for effective
marketing practice.
Course Objectives
By the end of the course unit the student will be able to:-
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Text Books for further Reading:
________________________________________________________________________________
Course outlines
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
CHAPTER TWO
CHAPTER THREE
CHAPTER FOUR
CHAPTER FIVE
Market segmentation………………………………………………………………….26
CHAPTER SIX
Positioning strategy……………………………………………………………………30
CHAPTER SEVEN
Distribution strategy…………………………………………………………………..34
CHAPTER EIGHT
Pricing strategy………………………………………………………………………..38
CHAPTER NINE
Promotion strategy……………………………………………………………………39
CHAPTER TEN
CHAPTER ELEVEN
Week one
Learning objectives
Definition of marketing
Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.
Exchanges
Marketing management is the planning, organizing, implementing and controlling the marketing
activities to facilitate and expedite exchanges effectively to facilitate highly desirable exchanges
and to minimize the cost of doing so. Effective planning reduces/eliminates daily crises.
Marketing management can be described as carrying out the tasks that achieve desired
exchanges, between the corporation, and its customers.
Production concept Demand for a product is greater than a supply. To increase profit, focus on
production efficiencies knowing all output can be sold. Also useful concept when increasing
production raises economies of scale etc. to reduce price. Henry Fords, word sums up the
concept: "Doesn't matter what color car you want, as long as it is black."...A typical quote during
the production era.
Dominant era: From mid C19th to early C20th, industrial revolution etc.
Product concept focuses on product quality, and performance. The product with quality sells
itself.
Selling concept Demand for a product is equal to supply. Emphasis is needed to sell the product
to increase profits. Focus is on advertising. It is useful for unsought goods, i.e., encyclopedias,
funeral plots. Political candidates, selling important, not post consumer satisfaction.
Marketing Concept- in this case, supply for a product is greater than demand, creating intense
competition among suppliers. Company first determines what the consumer wants, then produces
what the consumer wants, and then sells the consumer what it wants.
Societal marketing concept: it focuses on stakeholders, the business and its customers. It
balances company profits, customer wants and society's interests.
Marketing environment
Marketing does not occur in a vacuum. The marketing environment consists of external forces
that directly and/or indirectly impact the firm. Changes in the environment create opportunities
and threats for the firms.
To track the external forces a firm uses environmental scanning and continual monitoring of
what is going on.
Environmental scanning collects information about external forces. It is conducted through the
Marketing Information System. Environmental analysis determines environmental changes and
predicts future changes in the environment. The marketing manager should be able to determine
possible threats and opportunities from the changing environment. This will help avoid crisis
management.
Environmental forces (macro-environmental): external forces
The environmental forces include: societal, political, legal, economic, technological, natural and
competitive forces.
Societal forces: This consists of pressure to create laws. Since marketing activities are a vital part
of the total business structure, marketers have a responsibility to help provide what members of
society want and to minimize what they don't want. Some of the important considerations are to
understand cultural diversity and population’s age structure (for example, aging population).
Political forces
Some of the considerations to understand are the political stability, government in power,
government’s attitudes towards businesses, fiscal and monetary policies of government, reforms
such as health care, tax and new legislations, including creation and activities of regulatory
agencies.
Legal forces
Legal forces include the laws and regulations that govern businesses at national, county and
municipal levels.
Economic forces
This includes exchange rates, inflation rates, rate of economic growth, rates of inflation,
unemployment rates, and business life cycles.
Consumer demand and spending patterns are affected by the economy and the perception of the
future. It is important to determine consumer buying power, and willingness to purchase.
Technological forces
Consumer’s technological knowledge influences their desires for goods and services.
Examples of changing technology :change in transportation methods have enabled the
development of out of town shopping centers; inventory control systems make companies more
efficient, this cost efficiency can be passed onto the consumer. It has helped develop
relationships with suppliers and their supplied; improved standard of living achieved by
increased leisure time; websites, internet, and medicine
Patent protection leads to a barrier to entry, monopoly. Without it firms may be unwilling to
launch new products that incorporate new technologies for fear of copying, therefore nothing is
gained.
Natural force
This includes floods, severe winter and drought
Firstly, even if the firm knows know what the customers want and as the resources to meet the
customers' demands, it may be that the competitive environment means that it is not worth
pursuing particular parts of the market for a whole range of strategic reasons, such as the threat a
price war, channel conflict, or legal or ethical considerations.
Secondly, the first need to know if its competitors are doing things better than it is doing , or
more dangerously, whether competitors are looking to change the basis of competition in the
market, for instance by moving to a direct sales model, or by introducing some new product or
technology.
Competitive forces
All firms compete for consumer’s money. Here, to consider competitive structure is necessary.
The competitive structure can be monopoly duopoly or oligopoly.
Perfect Competition: all competitors are equal and have equal access to the market place. It is
very uncommon.
The model assists to analyze the threats of new entrants into the industry, threats of substitutes,
bargaining power of buyers, bargaining power of suppliers and competitors’ rivalry.
Porter’s five forces of competition drive competition in an industry. Competitive rivalry is fierce
if there are numerous competitors in an industry, markets are mature, with little differentiation
and innovation.
The threat of new entrants will be high if an industry is attractive, i.e. there are enough
customers, and profit margins are high and set-up costs low.
Substitute products are a threat if they perform the same function as the product or service they
replace. A substitute which provides more or is better value for money is a greater threat.
Buyers generally are powerful if they have the opportunity to shop around for the best deal and
they purchase a significant amount of a product.
Suppliers are powerful if there are few suppliers of a good or service, as the buyer is denied the
opportunity to shop around for other options
2. Benchmarking
Benchmarking is another tool used to ascertain how well a firm is doing against the competition.
Are there areas that a firm can learn from the competition? Are there ideas in markets outside a
firm’s r own that would be worth bringing into a firm’s market to give a firm a competitive
advantage?
Firm’s competitors can also be a source for information about the general market. Their
advertising and marketing is telling a firm something about the messages and approaches that
they think are applicable to a firm’s market. If they have done their research, a firm can learn
from their approaches.
Internal environment
This includes the resources of the firm funds, human resources, intangible assets such as know-
how, brand, reputation, images; it also includes the firm’s mission, overall goals, and objectives.
Chapter review questions
1. identify and explain the main marketing environment both external and internal
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall , Chapter
1 and Chapter 3
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company, Chapter 5 and Chapter 6
CHAPTER TWO
Week two
Learning objectives
In studying consumer and organizational buying behavior we divide market into two:
1. consumer market
2. business/ organizational market
Consumer market
Consumer market is all the individuals and households who purchase goods and services for
personal use.
Consumer behavior is the study of consumers and the processes they use to choose, use and
dispose of products and services. Understanding consumer behavior is critical to use it to
Factors that affect a consumer making a purchase decision are (1) personal, (2) psychological,
(3) social, and (4) cultural
Personal factors include : age, stages in family life cycle such as being young and single, young
and married, adult with children, old and retired children having left home; occupation, personal
income and life style
Psychological factors include motivation of the consumer and the perceptions of the consumer.
Perception is the process by which an individual selects, organizes, and interprets inputs to create
a meaning picture about the world. This contributes to have selective exposure, selective
distortion and selective retention of information, say, about a product when advertised.
Psychological factors also include learning, beliefs, and attitudes. Learning is change’s in
individual’s behavior arising from experience. Beliefs are descriptive thoughts a person holds
about something. Attitudes are enduring favorable or unfavorable evaluations, emotional feelings
and action tendencies.
Social class factors are relatively homogenous enduring divisions in a society. Social classes are
hierarchically ordered with members sharing similar values, interests and behavior. For example,
in America, the social class consists of upper class, middle class, working class and lower class.
Groups influence also consumer’s purchase decisions, for example, if a consumer belongs to a
sport club or a book reading club. There is a family influence, such as the domination of a
husband or a wife or being equal or the influence of children.
Cultural factors affect the consumer’s purchase decision making. Culture is the accumulated
values, knowledge, beliefs, customs, objectives and concepts that a society uses to cope with its
environment. Within culture, say, a national culture, there can be sub-cultures such as African –
American culture in America.
Business market
Organizational buyers buy goods and services for production, for their own use or resale.
Characteristics
1. demand is organizational
2. volume is larger
7. Buying is influenced by multiple actors. There are initiators of the buying; there are gate
keepers who control the flow of information; there are deciders who formal and informal
power to select or approve; there are who have formal authority to buy who are buyers of
a product or services; there are the final users of the product or services.
1. market characteristics : few customer typical exist and purchase order are large
2. product and service characteristics : products or services are technical in nature; they are
purchased on the basis of technical specifications; there is a heavy emphasis on delivery
time, technical assistance, and financing assistance
3. buying process characteristics : there exist technically qualified and professional buyers;
it is a requirement to follow established purchasing policies and procedures; buying
objectives are spelled out clearly; there are multiple buying influences – multiple parties
participate in decision-making ; negotiations between the buyer and seller is common;
reciprocal arrangements exist
4. marketing mix characteristics : direct sell to the buyer is the rule; promotion , including,
advertising, is technical in nature; often price is negotiable and often affected by trade
and quantity discounts
2. price
1. problem recognition : this includes identifying potential applications or use of the product
or services; making a buy-make decisions on a product
3. alternative evaluation: using criteria to select suppliers; sending a quotation or bid request
Review questions
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 7
CHAPTER THREE
Week three
Learning objectives
Marketing research is gathering information about customers and competitors and then analyzing
and reporting the findings.
There are steps in the marketing research process, which should be understood as it is an overall
approach:
1. defining and locating the problem
2. clarify research objectives
3. assess the decision factors, developing resrch question or the hypotheses
4. research design
5. data collection
6. data analysis
7. reporting results, findings
8. recommendations
Defining and locating the problem needs to probe beneath the superficial symptoms.
Assessing different sets of variables, alternatives and uncertainties assists to combine to give the
outcome of a decision. With the alternatives, the decision maker has control, and with
uncertainties, since these are uncontrollable factors, the decision maker has no control over
them.
4. Data collection
This is step involves collecting the relevant information that aims at addressing the problem
solving.
Methods
2. Secondary data collection that involves secondary data collection Secondary data collection
secondary data can be collected from internal database data available in the firm. The data
could be related to accounting data, government data, magazines, survey of buying power,
syndicated data services or data related to competitors from official reports. In sum the sources
of secondary data include
1. internal , such as budgets, sales figures, profit and loss statement, all research reports
2. external , such as government reports, census of trade, regular publications; other reports
and research findings
1. Inexpensive,
2. quick to obtain
3. multiple sources available
4. assist to obtain information that cannot be obtained through primary research
5. independent therefore credible
Disadvantages are
1. maybe incomplete
2. Dated, obsolete
3. Methodology maybe unknown
4. All findings may not be public
5. reliability may be unproven
1. Time consuming
2. Costly
3. Some information cannot be collected
5. Research design
Research design is the frame work for a study that guides the collection and analysis of data, it
includes: the population of the study, the sample size, the unit of analysis, sampling procedures,
sampling instruments and data analysis methods. It asks and answers for, for example, who
collects the data; what should be collected; what technique of data collection should be used.
Collecting data
Sampling assists to select representative units from a total population. A population is all
elements, units or individuals that are of interest to researchers for a specific study.
Sampling procedures are used in studying the likelihood of events based on assumptions about
the future. The following are some of the sampling procedures:
1. Mail: this needs incentive to return the questionnaire Mail. Must include a cover letter to
explain survey
2. Telephone: this has speed, immediate reaction can be negative
3. Personal interviews: it has flexibility, increased information, non-response can be
explored. Most favored method among those surveyed
4. Email
5. Internet : this involves real – time interactions online
Questionnaire construction
Questionnaires are designed to elicit information that meets the studies requirements. Questions
should be clear, easy to understand, directed towards meeting an objective and unbiased.
1. Open ended
2. Dichotomous , such as Yes/No
3. Multiple choice
4. Scaled
4. What are the advantages and disadvantages of using the secondary data source
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 4
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 4
CHAPTER FOUR
Week four
Learning objectives
3. Explain what a marketing plan is and what the main components of marketing plan
MARKETING PLANNING
Let us deal first briefly with a concept of market and then to try having a framework that have
components of marketing planning.
Market is an aggregate of people who, as individuals or organizations, have needs for products
in a product class and who have the ability, willingness and authority to purchase such products.
In his book the marketing plan: how to prepare and implement it, William M, Luther, proposed
the following seven components for marketing planning:
1. analyze market economics, competition, the firm itself, customers: this boils down
approximately to analysis of external and internal environment , both the controllable
and uncontrollable forces by the firm
2. strategic and/or business plan : selecting market with good profit potential and isolating
critical business strengths needed to become competitive
3. operational plan : developing business strengths that can deliver a competitive business,
products , or services
5. marketing plan : translating the positioning statement recognizable and preferred brands
The framework can aid in considering critical issues when developing marketing strategy.
A strategic marketing plan is an outline of the methods and resources required to achieve
organizational goals within a specific target market. It describes the direction an organization
will pursue within its chosen environment and guides the allocation of resources and effort.
Strategic planning requires a general marketing orientation rather than a narrow functional
orientation. All functional areas must include marketing and must be coordinated to reach
organizational goals. It is a hierarchal process, from company wide to marketing specific.
A strategic plan:
The strategic planning process may include the following, although this differs from one
organization to another:
A firm can then assess its opportunities and develop a corporate strategy. Marketing objectives
must be designed so that they can be accomplished through efficient use of the firm’s resources.
Corporate Strategy’s issues include: (1) scope of business: what business the firm is in? (2)
Resource deployment----How the firm is going to use its resources? (3) Competitive advantage:
what are the firm’s competitive advantages? (4) Coordination of production, marketing,
personnel etc., and (5) coordination process
The following are some of the many tools that are used in developing corporate strategy; they are
supplements not substitutes for management's own judgment. Use of ( 1) BCG product portfolio
management that assists to investigates if the product in the portfolio is star, cash cow, problem
child /question marks or dog. The investigations aim at developing the appropriate strategy; (2)
use of SWOT analysis; and, (3) product life cycle.
If there are many SBU under a firm, a separate strategy is needed for each SBU, which includes:
Market penetration refers to more products to the same market; market development refers to
same product to new markets, and product development refers to new products to same market.
Diversified Growth involves new products new markets Horizontal (unrelated products to current
markets)/Concentric
Marketing Planning
Marketing plans vary by (1) duration, (2) scope, and (3) method of development, whether it is
bottom up or top down.
Objective of marketing planning is to create a marketing plan. A marketing plan is a plan for
each marketing strategy developed.
Marketing strategy encompasses selecting and analyzing the target market and creating and
maintaining an appropriate marketing mix that satisfies the target market and company. A
Marketing strategy articulates a plan for the best use of the organizations resources and tactics to
meet its objectives. Marketing strategy ensures not to pursue a project that is outside the firm’s
objectives or that stretches the firm’s resources.
1. Executive summary
2. Situation analysis
3. Environmental analysis
4. Company resources
5. Marketing objectives
6. Marketing strategies that include target market, and a marketing mix ( product, price,
promotion and place/distribution channels)
7. Financial projections
8. Controls and evaluations. Marketing control process consists of establishing performance
standards, evaluating the actual performance by comparing it with the actual standards,
Chapter review
3. Distinguish between corporate strategy, business unit strategy and marketing planning
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 2
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 3
CHAPTER FIVE
Week five
Learning objectives
MARKET SEGMENTATION
undifferentiated
concentrated
multi-segmented
Selecting target market refers to the need to aggregate consumers with similar needs by asking
such questions as , do all potential customers have similar needs/desires or are there clusters?
Types of demand patterns are:
Homogeneous Demand-uniform, everyone demands the product for the same reason(s).
Diffused Demand-Product differentiation more costly and more difficult to communicate, for
example, cosmetic market, need to offer hundreds of shades of lipstick
Individuals with diverse product needs have heterogeneous needs. Market segmentation is the
process of dividing a total market into market groups consisting of people who have relatively
similar product needs, there are clusters of needs.
The purpose is to design a marketing mix that more precisely matches the needs of individuals in
a selected market segment.
There are two market segmentation strategies: (1) concentration strategy, and ( 2) multi- segment
strategy.
Concentration Strategy
The objective is not to maximize sales, it is efficiency, attracting a large portion of one section
while controlling costs.
Multi-segment strategy
Two or more segments are sought with a marketing mix for each segment, different marketing
plan for each segment. This approach combines the best attributes of undifferentiated marketing
and concentrated marketing.
1. Segments must have enough profit potential to justify developing and maintaining a
marketing mix
2. Consumer must have heterogeneous (different) needs for the product
3. Segmented consumer needs must be homogeneous or unique
4. A firm must able to reach a segment with a marketing mix
5. A segment must be stable relatively , not that shrinks or disappears before recouping
investment and making profit
6. Must be able to measure characteristics & needs of consumers to establish groups
There are variables that assist to distinguish one marketing segments from other segments.
1. Segmentation variables should be related to consumer needs for, and uses of or behavior
toward the product
2. Segmentation variable must be measurable. Selecting inappropriate variable limits the
chances of success.
Demographic - age, sex, fertility rates, migration patterns, and mortality rates, ethnicity, income,
Geographic -Climate, terrain, natural resources, population density, sub-cultural values, different
population growths in different areas, city size, market density , the number f potential customers
within a unit of land
It is more expensive (it is claimed to be five times) to attract a new customer, than to satisfy the
current customers
Review questions
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 8
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 13
CHAPTER SIX
Week six
Learning objectives
2. Understand the link and difference among segmentation, targeting and positioning
POSTIONING STRATEGY
Positioning is a perception that happens in the minds of the target market. Positioning is a
perceptual location.
The concept of positioning is often used together with the terms segmentation and targeting. The
three elements work together closely when determining which way to offer a product or a service
.They relate to each other as follows:
Positioning understands customer perceptions; it positions products in the mind of the customers.
It is used as a competitive strategy
Targeting decides on targeting strategy; it decides which and how many segments should be
targeted.
Product positioning process involves defining the market in which the relevant buyers are;
identifying the attributes of the product; collecting information from a sample of customers about
their perceptions of each product on the relevant attributes; determining each product's share in
mind; determining the target market’s preferred combination of attributes.
1. Pricing : is the product seen as a luxury item, somewhere in the middle, or cheap
2. Quality: are controls are in place to assure consistency of a product?
3. Service: Does a firm offer the added value of customer service and support? Is a form’s
product customized and personalized?
4. Distribution: How do customers obtain a firm’s product? The channel or distribution is
part of positioning.
5. Packaging: Packaging makes a strong statement. Does packaging deliver the message a
firm intends
One of the key elements of positioning strategy is a firm’s value proposition. There are three
essential types of value: operational excellence, product leadership and customer intimacy.
1. When developing a new product, a firm should identify all the features that are offered
by all its major competitors
2. Identify important features and benefits used in making purchase decisions
3. Determine the overall ranking of features by importance and relate the importance of
each feature to its uniqueness.
Product strategy
Product strategy refers to a strategy in which a firm maintains an even combination of new,
growing and mature products.
Product Strategy is the important function of a company. It takes in account the capabilities
existing in the company or of time to acquire them by hiring or by mergers. It evaluates the
customers’ expectations at the time of delivery. It estimates the competition, including new
entrants, probable moves to enter the same market.
Generally, for product strategy, the product decisions involving the following are critical for the
success of the strategy:
1. Product design
2. Product quality
3. Product features
4. Branding
1. Idea generation: ideas are gathered various tools , including SWOT analysis
2. Idea screening : this involves eliminating unsound ideas
3. Concept development and testing : it involves determining marketing and engineering
details
4. Business analysis: it involves analysis of selling price, sales volumes, market size and
profitability
5. Market testing : it involves testing the product and making adjustments
6. New product development : this is the technical implementation
7. Commercialization of the new product
Diffusion process is the manner in which different members of the target market often accept and
purchase a product. The new product diffusion process indicates the different time that various
consumers need to adopt a new product. This has an implication to the new product strategy.
Based on the timing of going through adoption process, adopters of new product are classified as
1. Innovators: the first customer to buy and adopt a product
2. Early Adopters: they adopt new products but use discretion
3. Early Majority: they are the first part of the majority who buy a product
4. Late Majority: they are the second part of the majority who buy a product
5. Laggards: they are suspicious of change; they do not adopt until a product has reached
maturity
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 11 and Chapter 12
CHAPTER SEVEN
Week seven
Learning objectives
DISTRIBUTION STRATEGY
A distribution channel is a set of interdependent organizations that help make a product available
for use or consumption by the consumer or business user. Channel intermediaries are firms or
individuals such as wholesalers, agents, brokers, or retailers who help move a product from the
producer to the consumer or business user. The firm’s sales force and communications decisions
depend on how much persuasion, training, motivation, and support its channel partners need.
Whether a company develops or acquires certain new products may depend on how well those
products fit the capabilities of its channel members.
1. Breaking bulk , that is, breaking the bulk of quantity of goods by making going through
wholesalers and retailers
Distribution channel can be described as short or long. It is short, for example, if the producer
directly sells to the consumer. It is long, if the producer goes through agent, wholesalers and
retailers to reach the consumer.
Distribution channels, examples, for consumer goods:
1. Producer …consumer
2. Producer…retailer…consumer
3. Producer…wholesaler…retailer…consumer
1. Producer…business user
3. Producer…wholesaler…business user
3. Geographically concentrated
4. Small orders
5. Competitors
Second, distribution intensity for this assist to determine to choose the intensive distribution
strategy or selective distribution strategy or exclusive distribution channel strategy
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 16
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 17
PART TWO
CHAPTER EIGHT
Week eight
Learning objectives
PRICING STRATEGY
1. Often the only element the marketer can change quickly in response to demand shifts
2. Relates directly to total revenue and profits
3. Can be used symbolically to emphasize quality or bargain
4. Due to deflationary pressures, consumers very price conscious
Second, the cost associated with product (cost-based pricing) ; mark-up pricing and cost-plus
pricing is used
Skimming pricing: to charge highest price possible that buyer who most desires the product will
pay
Penetration pricing: reducing price compared to competitors to penetrate into markets to increase
sales
psychological pricing: this is odd-even pricing, end prices with certain number, such as 59, 299
Price bundling: to offer a product, options, and customer service for one total price
Discount pricing: this is where flexible pricing strategy is used depending on trade, quantity
purchased, cash, seasonal purchase, and allowances.
Review questions
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 14
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 16
CHAPTER NINE
Week nine
Learning objectives
PROMTION STRATEGY
Promotion is the communication link between sellers and buyers for the purpose of influencing,
informing, or persuading a potential buyer's purchasing decision.
There are four tools of promotion which also known as elements of promotion mix.
1. Personal selling
2. Advertising
3. Sales promotion
4. Publicity/public relations
Advertising
Advertising is a paid form of non personal communication about an organization or its products
that is transmitted to a target audience through a medium.
Advertisement is important for standardized products; products aimed at large markets; products
that have easily communicated features; products low in price; and products sold through
independent channel members and/or are new products.
Use of advertising is for promoting products or organizations; stimulating primary and selective
demand; offsetting competitor advertising; making salespersons more effective; increasing use of
product; reminding and reinforcing customers; and, reducing sales fluctuations.
1. Identify and analyze the advertising Target : the people for which the advertisement is
aimed at
2. Defining objectives of the advertising : make clear what a firm seeks to accomplish from
the advertising
3. Determine the advertising appropriation : this is planning the budget for advertising for
the specific period
4. Creating an advertising message that clarifies the product’s feature, use and benefits.
Advertising makes the target people to go through the following stages :
1. Awareness
2. Interest
3. Desire
4. Action
5. Developing a media plan: this is setting forth the media vehicles, such TV, Radio,
magazines, newspapers, websites, outdoor, direct mail,
The factors that affect media choice are location, demographics, content of message to
present, cost of media, reach, frequency, efficiency and clutter.
1. Describe promotion
2. Identify elements of promotion mix
3. Explain how to develop promotion strategy
4. Explain the designing of advertising strategy
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 18
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 19
CHAPTER TEN
Week ten
Learning objectives
PERSONAL SELLING
The advantages of personal selling are freedom to adjust a message to satisfy customers
informational needs, dynamic; precision, enabling marketers to focus on most promising leads;
give more information; two way flow of information, interactivity; Discover the strengths and
weaknesses of new products and pass this information on to the marketing department. Its minus
is high cost.
Forms of personal selling (types of sales persons): These are the types of sales persons: order
taker seeks to have repeat sales; order getter identifies potential customers who will buy a
product;
Public relations refer to the practice of conveying messages to the public through the media on
behalf of a client, with the intention of changing the public's actions by influencing their
opinions. To achieve its objectives, public relations make use of methods that include the press
conference, press release, event sponsorships, publicity event, letter to editor, media tours,
articles
Review questions
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 18
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 20
CHAPTER ELEVEN
Week eleven
Learning objectives
There is no need to have marketing planning and its implementation, if there is no marketing
control and evaluation. Without control and evaluation, it is difficult to tell whether the
organizational and marketing objectives are achieved.
Marketing control is the process of monitoring the proposed plans as they proceed and adjusting
where necessary. Control tells if the right strategy was used, the right marketing mix adhered to
and the objectives are achieved.
1. Marketing objectives
2. Performance standards/ marketing plan that is based on organizational and marketing
objectives
3. Compares results with the standards, marketing plan
4. Corrections and alternations
Approaches to marketing control and evaluation include market share analysis, sales analysis,
feedback from customer satisfaction survey, marketing information system, marketing research,
performance of promotional activities and market reach acceptance by pricing strategy.
Further Reading
Philip Kotler, and Kevin Lane Keller (2006), Marketing Management 12th Edition, Prentice Hall
Chapter 22
William A. Cohen (1987), The Practice of Marketing Management: Analysis, Planning, and
Implementation. New York: Macmillan Publishing Company
Chapter 21
Sample exam Questions (1)
Question 1
c) Discuss positioning strategy and its link to segmentation and target marketing ( 6 marks )
d) Explain how marketing environment could influence the marketing decision making process ( 5
marks )
Question 2
Question 3
Question 4
Question 5
Question 1
b) Explain the differences between sales management process and personal selling process ( 10)
marks )
Question 2
Question 3
a) Explain the relationship between organizational objectives and marketing planning ( 10 marks )
Question 5
b) Distinguish between skimming pricing strategy and penetration pricing strategy ( 4 marks )