SS1 2ND TERM SCHEME OF WORK

1. What markets do
- Explanation of operations of organizations and individual using organizational chart
- Actions before marketing
- Mobilization of force
- Utilization of feedback
- Production of quality goods and services
- Managing distribution networks
- Advertisement and promotion -
2. Types of Markets
- Meaning of market
- Types of market
- Organizational market
- Consumer market
3. Types of market Cont.
- Types of organizational market
- Industrial
- Reseller
- Government market
4. Consumer behaviour and organizational behaviour
- Consumer behaviour
- Factors influencing consumer behaviour
- Cultural factors
- Social factors
- Personal factors
- psychological factors
5. Consumer behaviour and organizational behaviour Cont.
- consumer decision process
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post purchase behaviour
6. Marketing Planning Process and Research
- Marketing planning process
- Meaning
- Key elements in marketing planning
7. Marketing Planning process and research Cont.
- Importance of marketing plan
- Marketing research
8 Marketing planning process and research
- Reasons for marketing research
- Getting information for planning
9. Pricing
- Definition
- Pricing strategies
- Haggling, cost –plus etc
10 Price determinants
- Ability to pay
- Competition
- Profit maximization
11. Advertising
- Advertising
- Roles of advertising
12. Revision /Examination
WEEK1
WHAT MARKETS DO
INTRODUCTION
The term market consists of all the potential customers sharing a particular need or want
who might be willing and able to engage in exchange to satisfy the need and want. It
comprises or composed people or institutions with sufficient purchasing power, authority,
and willingness to buy. The target market for a product is the specific or segment / group of
customers most likely to procure and patronize a specific product. For example, the target
markets of Joint Admission and Matriculation Board (JAMB) Examination are the Secondary
School leavers who are seeking admission to higher institutions of learning e.g Universities,
Polytechnics and Colleges of Education.
ACTIONS BEFORE MARKETING
Business organizations before identification of the needs and wants of the customer which
is the core of marketing do perform and embark on certain activities in preparation for
business operations. The greatest asset of any business organisation are the staff i.e. the
employees of the organization. The reason is that of all the resources: men, materials,
money, machine, method, men which constitute employees are the only one who the
manipulates the other variables.
For the purpose of this study, the business operational action before marketing would be
examined under the following matters:
1. Mobilisation of work force
This connotes recruitment, or employment of competent and relevant workforce who are
capable enough to discharge their roles and responsibilities efficiently and effectively.
Business organizations recruit employees through several methods and procedures such as
using advertisement to communicate the vacancy, short listing of interested applicants for
interview (oral and written), offer of provisional job before conversion of such to full staff/
permanent employment. It can also be through casual labour. Mobilization of work force
could also be described as equipping employed staff with necessary training programmes
that would enable them to understand the mission and vision among other things that an
organization stands for i.e. why they are in business.
2. Utilisation of feedback
To utilise means to make use of something or to 'consume' or put something into good and
effective use. Utilisation of feedback means to make right use of information which had
been gathered or collected data either by the staff of an organisation who have been
mobilised to collect relevant data on the need and wants of the markets with a view to
channel the resources of the organisation for the manufacturing and production of products
that is needed by the people. (markets). E.g Publishers of schoolbooks produce them
especially the compulsory subjects as a result of utilisation of data collected by their staff on
the need for the products by the students (markets).
 3. Production of quality goods and services
To produce means to manufacture or invent something and quality means standard and
perfection. It connotes excellence, reliability, durability and relative absence of defects.
Business organisation through right mobilisation of productive and efficient workforce to
collect right information and utilisation of feedback with a view to converting this to
produce quality goods and services. For instance, the components of a quality secondary
school textbooks include correctness of facts and figures, updateness of information,
curriculum compliance, use of relevant illustrations and examples, correct use of
punctuation marks, use of good lettering and typography, good binding, sharp printing and
good packaging.
4. Managing distribution networks
To manage is to coordinate, supervise, plan, direct pr and communicate. A distribution
network means the channel or method or the vehicle through which goods and services
produced by a business organization get across to the target markets. And whichever
distribution networks an organisation adopt such must be coordinated, monitored,
supervised, well planned which is the basis of management.
FORMS OF DISTRIBUTION NETWORK
i. From manufacturer → consumer
ii. From manufacturer → retailer→ consumer
iii. From manufacturer → wholesaler →retailer → Consumer
iv. From manufacturer → wholesaler → consumers
For example, students can get textbooks through any of the following channels.
i. Manufacturer (publisher) →consumer (student)i.e., when student approaches
the publisher directly.
ii. From manufacturer (publisher)→retailer (bookshop)。→ consumer (student) i.e.
when student buys from' the bookshop.
iii. From manufacturer (publisher)→wholesaler(agent) retailer (bookshop) →
student.
iv. From manufacturer(publisher)→wholesaler (schools) → consumer (student) i.e.
when publisher promotes to schools and schools sell to students.

5. Advertisement and Promotion

This connotes the channels of communicating the benefits and potentials of an
organizations' products over the rival or competing products. Advertisement is a paid for,
non-personal presentation of message or idea through a mass medium to heterogeneous
audience. The channels are radio, television, magazines, newspapers etc. Promotion means
to make known the availability of product to the end users.
for example: Publishers of textbooks promote their book products to schools and colleges
using various promotional techniques such as publicity, sales canvassing, sponsorship of
school events, donations of library books, sales representatives, advertisement on radio and
television etc.
ORGANISATIONAL CHART/ OGANOGRAM
Organizational chart could be regarded as business or establishment structure. It connotes
orderliness, roles and responsibilities, leadership and followership, connotes line of
command and authority.
For example, organisational chart or structure of a well-established Secondary School is as
below:

A TYPICAL PUBLISHER ORGANISATIONAL STRUCTURE

ROLES OF MAEKETING IN THE SOCIETY

1. Understanding of the consumer needs and wants.
2. Production of goods and services needed by th people.
3. Satisfaction of consumer needs and wants.
4. Harnessing the available resources for production goods and services.
5. Generate money/income for the company.
6. Creation of market extension and expansion.
7. It pruned down the im-profitable products.
8. Provision of necessary information required about the market.
9. Principal contribution to the profit growth about the market etc.
10. It generates employment for many people.

TYPICAL DEPARTMENTS IN AN ORGANISATION

1. Finance/Accounts department.
2. Personnel/Human Resource department.
3. Production department.
4. Marketing department.
5. Transport.
6. Research and Development.
FUNCTIONS AND RESPONSIBILITIES
i. Finance department
• Preparation of vouchers for the payment of salaries and wages.
• Making payments to creditors or supplier of raw materials.
• Preparation of financial report/annual accounts.
• Raising of funds.
II. Personnel/Human Resource Department
• Recruitment/employment of competent and reliable/relevant staff.
• Organizing human development training and workshops
• Performance appraisal/evaluation of staff.
• Enforcement of discipline, rules/regulations/code of conducts.
• Wage and salary determination/administration.
• Staff welfare, etc.
II. Production Department

• ·Production of goods and services with required quality and quantity.

 • Sourcing for quality raw materials for production activities.
• Ensuring that the cost of production is within reach.
• Assist in the maintenance of machine and production equipment.
• Planning for new methods of products.
• Adaption to technological innovations and inventions.
• Assist the company to meet set goals and objectives.

III. Marketing Department

• Identification of customers and needs in the market.
• Promoting the availability of goods and services to
• the consumers.
• Convincing prospective buyers to buy a company's products.
• Ensuring two-way communication through feedback mechanism.
• Taking of stock.

v. Purchasing Department
• Ensuring that the required raw materials are procured.
• Taking of goods custody and care of raw material. Monitoring of market
prices.
• Provision of vital information
• Issuing of goods to customers.
• Record keeping and maintenance of such.

Week2:

MEANING OF MARKET

Marketing activities include buying, pricing, selling, packaging, promoting, storing, financing,
obtaining market information. The essence of marketing is the exchange process in which two or
more parties give something of value to each other to satisfy felt needs.

Marketing is also used as a term that involves analysing customer needs, securing information
needed to design and produce goods or services that match buyer expectations and creating /
maintaining relationships with customers and suppliers.

TYPES OF MARKET

Markets can be classified or grouped into two types; these are:

1. Consumer market

2. Organisational market
 a. Consumer Market:

Consumer markets can be described as people or institutions with sufficient purchasing power who
procured a product for immediate consumption. Or people who convert their procured products
into personal or immediate use.

b. organisational Market:

Organisational markets / products can be described as markets/ products created or converted for
further production and manufacturing of goods and services. This type of market is also known as
business-to-business markets/products. And they refer to products procured by organisations to be
used in producing other products or in operating other business. Categories of organisational market
include: installations, accessories, raw materials, component parts/materials, supplies etc

Week3:

Types of organisational markets

This would be considered under the following division: industrial market, reseller market and
government market.

i. Industrial Market:

This connotes group of buyers with purchasing power or products that are produced for other
business rather than household consumers/consumption. They can also be described as set of
organisations that buy products for the purposes of using them in the production process to make
profits or achieve other goals or motives. E.g. publishers buy papers to produce books.

ii. Reseller Market:

This is the group of business organisations that buy products in order to resell them for profit. e.g.
bookshops buy textbooks from publishers at a discounted price with a view to make a little profit.

Government Markets:

This is the set or group of government agencies or parastatals that procure products for the purpose
of producing public services and or convert these products to other categories of the public who
need them. E.g. Water Corporation procure chlorine chemical to purify tap water for public
consumption.

COMPETITORS

Competitors according to. Hill and O'Sullivan (1996) “...competitors are organization's trying to
satisfy similar customer needs and producing products that customers see as being alternatives for
satisfying their needs.'

TYPES OF COMPETITORS.

i. Desire competitors: This refers to immediate desires that consumer might want to buy.
ii. Generic competition: This refers to other basic ways in which the buyer can satisfy a
particular desire.
WEEK 4

CONSUMER BEHAVIOUR AND ORGANIZATIONAL BEHAVIOUR

INTRODUCTION

Consumer / organisational behaviour is a concept that relates to why people buy one product and
not another and why they patronise the activities of some business services and neglect the other.
There are some underlying factors that influence consumer behaviour such as culture, socio-
economic, personal/ psychological. And also, the decision to finally procure a particular product
passes through a process which are: problem recognition, information search, evaluation of
alternatives, purchase decision and post purchase behaviour.

consumer behaviour definition and meaning

Consumer/ buyer behaviour is a term that covers both individual consumers who buy goods and
services for their personal consumption and organisational behaviour for their business
consumption.

Consumer behaviour can be described and defined as the process through which the ultimate buyer
makes purchase decisions. It could also be seen as the mental and physical activity undertaken by
household and business consumer that result in decisions and actions to pay for, purchase and use a
particular product.

FACTORS INFLUENCING CONSUMER BEHAVIOUR

i. Cultural factors
ii. social factors
iii. Personal factors
iv. psychological factors
v. Others include: group influence, taste and preference, economy, opinion
leaders, family life cycle, technology and technical expertise, self-image
perception etc.
i. Cultural Factors: First and foremost, the term culture can be defined as set of values, beliefs,
preferences and tastes handed down or pass-across from one generation to another. The
culture where an individual comes or is raised up may have a direct/indirect impact and
influence on his/her consumption or buying behaviour.
ii. Social Factors: This relates to group or societal class. Every consumer belongs to several
social groups. The word social could be described as relationship, fellowship or interaction
between people. For instance, senior secondary school students are a class of social group.
iii. Personal Factors: These relate to taste, preference and choice that an individual has for a
particular product/item. Personal factors do influence consumption pattern of consumer. It
can be as a result of religious belief, educational attainment, exposure, taste etc. for
instance, some people could not be influenced to eat a particular kind of meat or food due
to personal policy or decision or religious belief.
iv. Psychological Factors: These include attitudes, perception, learning, motivation and
personality (self-image) which have direct or indirect Influence on consumer buying
behaviour.
v. Economic: The nation's and the consumer economic conditions do also influence
consumption pattern and consumer behaviour. Inflation (ie. persistent and consistent rise in
price of products) and taxes on personal economic situation is another determinant.
 vi. Influence of Opinion Leaders: These are people whose opinions are sought on certain
specific products. They most often belong to the same social class as against those they
influence. They are knowledgeable, creative, extroverts, friendly, command respect,
cosmopolitan, expose to mass media, opinion moulders, authoritative, influential. etc.
vii. Family Life Cycle: Naturally, people do follow a certain pattern of living known as the family
life cycle. This ordinarily means that consumption pattern of people changes at a particular
level of growth and development which invariably influences consuming behaviour.

WEEK 5:

CONSUMER DECISION PROCESS

Consumers complete a-step-by step-process to make purchasing decisions. The length of time,
period and level of effort they devote to a particular purchasing decision depend on the importance
of the desired goods or service to the consumer. Consumer decision process connotes a choice on
what to buy, how much to spend, what alternative to acquire and where to purchase it. Consumer
decision process passes through the following stages.

1. Problem recognition/recognition of unsatisfied need: An unsatisfied need of consumer may

create inner tension which may lead to problem recognition. At this stage of decision
process, consumer becomes aware of a significant discrepancy between the existing
situation and a desired situation. Problem recognition simply means a realisation by the
consumer that he/she needs to buy something to get back to the normal state of comfort.
2. Information Search: This refers to information gathering/data collection. Once a need has
been recognised by a consumer, he/she begins to search for relevant and reliable
information about various alternative ways of solving the problem. Sources of information
include: the internet, the mass media, radio, television and print media (newspaper and
magazines) friends and acquaintances, consumer reports or product manual/catalogues,
visit to shops, interview etc
3. Evaluation of Alternatives: Immediately consumer identified a reasonable alternative, the
consumer must evaluate each one in preparation to making a purchasing decision. Past
experience, attitude towards various brands of products, opinion of family members and
groups are used as components of evaluation guide which consumers used to evaluate
alternatives.
4. Purchase Decision: Once the consumer has evaluated the alternatives, then, he/she must
make a purchase decision. If the decision is to buy, he or she must also make decisions on
the brand, price, store, colour etc. marketers can influence decision making process of
consumers even at this level as most consumers find it very hard and difficult to make
decision. Some consumers choose the convenience of in-home shopping via telephone or
mail order rather than travelling to complete transactions in retail stores.
5. Post Purchase Decision: It must be noted that the consumer's decision process does not end
with the purchase decision. However, the experience of buying and using the product
provides information that the consumer will use in future decision-making. After a consumer
makes an important choice decision, he/she may be reasoning out the wisdom or what led
to the purchase decision. Therefore, a marketer must know that post purchase behaviour
can influence repeat sales and affect (positive/ negative) what the consumer tells others
about the product or services of a particular organisation or firm.
MODEL OF CONSUMER BUYING BEHAVIOUR

Problem recognition → Information search → Evaluation of alternatives → Purchase decision → Post

purchase decision.

ORGANISATIONAL BUYING BEHAVIOR

Organisational buying behaviour also known as business buying process that takes place within a
formal organisations with its budget, cost and profit expectations.

Model of organisational buying behaviour

WEEK 6

MARKETING PLANNING PROCESS

Marketing planning can be described as a systematic way of identifying a range of options with a
view to choosing one or more of them and then to schedule and cost out what must be done to
achieve the objectives.

Marketing planning is the process of anticipating future events and conditions and determining
courses of action for meeting organizational goals and objectives.

Planning in marketing is a continuous process that involves identifying specific objectives and
developing action to meeting them. It also imply implementing planning activities devoted to
achieving marketing objectives such as determining product lines, making pricing decisions, selection
of appropriate distribution channels, decisions on promotional campaign strategies among others.

KEY ELEMENTS IN MARKETING PLANNING

The following are the basic key elements in marketing planning:

i. situation analysis.
ii. determination of objectives.
iii. selection of strategies and tactics;
iv. execution and evaluation.
i. Situation analysis: This involves a thorough overview of corporate objectives, an
examination of the company's existing situation such as knowledge market, competitors,
the product/services, the distribution channel and promotional campaigns.
Determination of objectives: This involves goal setting and a clear description of the goals,
objectives and what an organisation stands for or represents. It connotes the mission; vision,
philosophy and beliefs which an organisation wants the publics to identify the company with.

Selection of strategies and tactics: This involves analysis and identification of techniques, methods
and strategies with which the organisation proposes to achieve the objectives. The system or
operational procedure put in place for business growth, expansion, continuity and survival.

Execution and evaluation: This involve a feedback mechanism, report analysis, implementation of
programmes/activities and assessment of the failure or success recorded. It involves weigh and
measuring results against set goals and objectives. And periodically, organisations are expected to
be measuring results of set goals and objectives.

Procedurally, a marketing plan supposed to contain a summation or summary of all the principal
external environments (macro environments) which affects the company's marketing performance
along with a statement policy otherwise known as the SWOT analysis.

SWOT analysis could be described as below:

S = Strength i.e., the competitive advantage of an organisation over rivals.

W = Weakness i.e. the areas which an organization lacks strength and stamina

O = Opportunities i.e. the business potential available to an organisation

T= Threat i.e. variables that serve as 'Enemy' to the business growth and expansion.

WEEK 7

IMPORTANCE OF MARKETING PLAN

The benefits of marketing plan include the following:

1. It promotes orderly flow of activities.

2. It enhances discharge of duties and performance of responsibilities.
3. It helps in evaluation of performance objectives and goal setting.
4. It helps in making reasonable assumptions and forecasts about the business future.
5. It helps in taking calculable business risks such as family, financial and personal risks.
6. It helps to strengthen rationality required to bring optimum compromise.
7. It promotes and enhances coordinated activities.
8. It assures better communication and mutual relationship among staff.
9. Helps organisation to have greater control over the business and less vulnerability.
10. It stiffens challenges and competitions.
11. It brings about highly motivated employees.
12. It leads to high level of actionable market information etc.

MARKETING RESEARCH

Marketing research according to Kotler is the systematic design, collection, analysis and reporting of
data and findings, relevant to a specific situation facing an organisation.

The aim of marketing research is to find out reasons or effects of a specific problems and
opportunities. It tends to stress the collection of past data to solve problems. Marketing research is
involved primarily with handling external factors. Organisations collect primary and secondary data
as raw materials for marketing research. Methods of marketing research include: survey such as
interview, focus group discussion, questionnaire, content analysis such as product catalogue, sales
figure, customers database etc.

Marketing research activities can be divided into three main categories:

i. scanning,
ii. risk assessment and
iii. monitoring.

Scanning activities search for opportunities and challenges in an organisation' environment.

Risk assessment activities are geared towards evaluating the likelihood of commercial success
by linking proposal actions to feedback from customer in real or stimulated conditions.
Monitoring activities aim to assess current events.

WEEK 8

REASONS FOR MARKETING RESEARCH

Organisations embark on marketing research due to the following reasons:

1. To solve a specific problem.
2. To identify the causes of a problem in an organisation.
3. To find out the need of the consumer.
4. To find out the environment of an organisation populace and public.
5. To help in appropriate project management.
6. To help and assist the management in decision making.
7. To assist an organisation in marketing planning.
8. To equip an organisation in meeting challenges
9. To gather relevant data for organisational effectiveness.
10. To prevent an avoidable crisis or conflict etc.

GETTING INFORMATION FOR PLANNING

Marketing Information for planning is the managerial system or function which involves interacting,
continuing, future oriented structure of people, equipment and procedures designed to generate
and process information flow to aid managerial decision-making. Information is vital and essential to
the success of an organisation.

The system concept which applied to getting information for planning relates to:

i. determine the nature of data needed for decision-making,

ii. generate or gather the appropriate and relevant data /information.
iii. process the data with the help of quantitative analytical techniques;
iv. provide for storage and retrieval of the data.

Information can help the management to monitor the performance of products, markets, sales,
people and other marketing units. The major information system used by marketing executive is the
internal report which include: reports on order, sales report, inventory levels, receivables, payables.
WEEK 9

PRICING

Price could be described as the exchange value of a good or service. Price is more than the addition
of cost and profit. It is influenced by several factors among which are competition among sellers,
competition among buyers, size of the order, economic situation, buyers stipulation regarding
delivery period, market forces (interaction between demand and supply), inflation

Price is the most sensitive factors of the 4Ps of the marketing mix (product, price promotion, place)
because it is the most reacted to by consumer. It influences consumer behaviour. It has a significant
bearing on an organization's revenues and net profit.

PRICING STRATEGIES

The following among others are the basic pricing strategies

i. a rapid skimming strategy.

ii. a slow skimming strategy.

iii. a rapid penetration strategy.

iv. a slow penetration strategy.

V. haggling.

vi. cost-plus.

1. A rapid skimming strategy: This is defined as a strategy of high prices with a high promotion
level. This strategy makes an organisation to place high prices on goods and services in order
to recover as much gross profit per unit as possible.
2. A low skimming strategy: is a strategy when a new product is launched at a high price and
low promotion. The essence of the high price is to recover as much gross profit per unit as
possible and the low level of promotion keeps marketing expenses down.
3. A rapid penetration strategy involves launching a product at a low price and spending
heavily on promotion. The strategy brings about the fastest market penetration and the
largest market share
4. A slow penetration: consists of launching the new product at a low price and low level of
promotion. The low price will encourage rapid product acceptance and the company keeps
its promotional costs down in order to realize more net profit.
5. Haggling: is the act of bargain persistently, especially over the cost of a product
6. Cost-plus pricing: is also known as markup pricing. It's a pricing method where a fixed
percentage is added on top of the cost it takes to produce one unit of a product.

WEEK 10

PRICE DETERMINANT

Organisations' do often take the following factors into consideration when they are to determine
price for their products, goods and services:

• the competitive setting,

• demand and supply,
• expected rate of return and expected costs,
 • ability of customers to pay,
• competition,
• profit maximization.

It is essential that marketers must conduct consumer research on such issues as price elasticity,
consumer price expectations, sizes of specific target market segments, and perceptions of buyers to
strength and weaknesses of competing products.

In Economics term, price is determined as:

Price = Total cost of production = e.g

Quantity Produced

P = 5000

N500 = N50

WEEK 11

ADVERTISING

“Advertising is a marketing tool whose aim is to build preferences for advertised brands and
services” Chris Doghudje (1985):

APCON (Advertising Practitioner Council of Nigeria)

defined advertisement as "a communication in the media paid for by an identifiable sponsor and
directed at a target audience with the aim of imparting information about a product, service, idea or
opinion.” Media in this case may include newspaper, magazine, radio ,television, outdoor, cinema,
internet and direct mail.

ELEMENTS/COMPONENTS OF ADVERTISEMENT

Whichever definitions given to advertisement; the following elements must not be missed out:

(i) It is persuasive in intent.

(ii) Its essence is to communicate.

(iii) It must be paid for.

(iv) The (payee) sponsor must be identified.

(v) It is mass communication in nature.

(vi) It must have business transaction motive.

(vii) It must be produced by a professional or practitioner.

ROLES OF ADVERTISEMENT

Functions/roles of advertisement would be examined using AIDCA model:

A - Attention

I - Interest

D - Desire

C - Conviction

A - Action

i. It serves as a medium of attracting the attention of the prospective audience or targeted

publics.
ii. It builds their interest in the message it presents.
iii. It arouses the desire of the customers to patronise the message.
iv. It builds their confidence and conviction to (v) influence their buying behaviour.
v. It makes them to take action by buying the product.

Other functions include:

1. It informs the public about the existence of a product.

2. It educates the public about the benefits of a product.
3. It entertains the public in its presentation and packaging.
4. It orientates and re-orientates the public about a mis-informal opinion.
5. It creates job for many communication and non-communication experts among other skilled
personnel.
6. It builds brand preference.
7. It promotes the good image of an organization.

PRINCIPLES THAT GUIDE THE SELECTION OF ADVERTISING MESSAGE

The following principles guide the selection of advertising message:

1. The message must be clear.

2. The message must not be ambiguous.
3. The message must be brief and not too lengthy.
4. The message must communicate and convincing.
5. The message must not be misleading.
6. The message must be believable by the target audience.
7. The message must be of human interest.
8. The message must be precise.
9. The message must be able to sell.
10. The message must be objective and not to destroy rival products.
11. The message of advertisement must not create fear in the public.
12. Technical words or professional jargons should be used in a correct sense.

WEEK 12

REVISION AND EXAMINATION