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Marketing MGT and Taxation
Marketing MGT and Taxation
Marketing is the performance of activities that are necessary to get the goods or services from
the producer to the customers resulting into satisfaction and realization of profits on the side of
an entrepreneur
Marketing involves a set of business activities designed to produce, use, price, promote and
distribute satisfying goods to customers
A market: Is a situation where buyers and sellers come into contact to exchange a well
defined commodity using a given medium of exchange. A good market is where there are
many people or institutions that are willing and able to buy goods and services at profitable
prices over a long period of time
Selling: Refers to the process by which one accumulates as much information about the needs
of a client as possible and presenting a solution while simultaneously marketing the company
and the product.
Marketing plan: This is a document that outlines the specific actions one intends to carry out to
meet the interest potential customers of the business product and pursue them to buy more of
the product
Marketing mix: This refers the combination of the various marketing elements (inputs) used
to achieve the organization’s market objectives and satisfy the target market
Product: This refers to anything available to be offered to the customers for use or
consumption to satisfy their needs
Promotion: This is any method of promotion and form of communication used to
inform, persuade and remind people about the business’ products by informing them of
the features and benefits of the product to them
Place/distribution: This is where products are sold from and how their products are got
to the customers
Price: This is the monetary value of the product at which the producer is offering it. It
involves the pricing strategies that help one to reach to the target profit margin
Positioning: This element involves targeting a particular group of customers to whom
to sale the product. This can be in terms of the quality of the product in relation to
competitor’s product
Packaging: This refers to the wrapping of products in attractive packaging materials to
add value to the product
Planning: This refers to the process of deciding what, when, and how to produce a
particular product
People: This involves the kind of people we employ, their competencies, attitude and
commitment towards the organization
Market segmentation
This refers to the process of dividing consumers in different groups basing on their purchasing
behaviours and reactions to promotions and communications from the company OR It is the
dividing of the market into small groups of individual markets with similar wants or needs
Generation: This refers to people born in the same period of time, they share many
thing in common. Therefore different generations require different goods
Demographic: Customers are segmented basing on demographic features such as age
and sex since different age groups and sex need different goods
Discussion: Market segmented basing on the discussions are made after deliberations
whether pricing or advertising decisions are made
Geography: Here people with similar social, economic characteristics clustered
together have similar transport and shopping options
Geo-demographic: This aims at identifying groups of small geographic areas that have
similar demographic profiles e.g. ladies from the city visa viz those from rural areas
Benefits sought: It is easy to segment customers basing on terms of quality, price and
brand i.e. what a customer is interested in
Psychographic: This deals with personality, attitude and life style basis for
segmentation
Product usage: Segmentation is done basing on behviours or habit on product usage
e.g. new user or old user
Social economic characteristics, such as education, income, occupation, help to
segment market
Market research is the systematic process of collecting and analyzing information relating to
identification of markets and opinions of the general public about the products of the firm to
enable present and future decision making OR It’s an aid to trade by which producers come to
know what people’s opinions are regarding a particular product.
Market Assessment is the process of collecting and analyzing market information leading to
identification of market opportunities and problems OR It is the process of determining
markets for the product of a business
Selecting a product; i.e this involves identifying a product for which market assessment
is to be done so as to avoid poor conclusions
Identifying the market area; i.e. this involves finding out the area or where the
assessment of a given product is going to be done
Deciding the approach; i.e this involves selecting the appropriate approach or method to
be used in market assessment .g. Observation
Collecting of data; i.e. this involves obtaining of information or data on the product
about the 5p’s of market assessment
Analyzing the data; i.e. this stage involves drawing an anaylsis on the information got
so as to get its meaning
Analyzing the market strategy; i.e. this involves identifying the possible solution to the
areas that needed improvement as per the customers response
Assessing the feasibility and viability of the product; i.e. identifying the ability with
which the selected product can easily be produced
To find out the type and nature of the products preferred by customers t a given time so
that to meet their needs
To determine the quantity/volume of the products to be purchased or put on the market
i.e. how much is likely to be bought now and in future
To find out the quality of products customers desires to buy since customers point of
view has an influence on the quality of a given product
To identify changing market trends that may affect the business’ sales and profit levels
presently and in the future
To find out reactions on the prevailing prices of a given product so as to determine the
adjustments to be made if any
To increase sales or turnover of a firm since this helps in attracting a new set of
customers which improves on the market share of the business
To determine the best channel of distribution of goods and services for possible areas
where the direct channel is not most appropriate
To find out and follow up the effectiveness of advertising and sales promotion
strategies of a particular product and this through interviewing
To assess the level of competition with rival firms e.g. Crown bottlers may carryout
market research to determine how its products are competiting with those of century
bottling company
To determine the information which can used as a basis for making future decisions
To establish more quickly the customers likes and dislikes and their buying patterns or
habits
To help the business in analyzing it SWOT position in the market
To determine the level of profitability of the product by establishing the income level of
the customers
To find out the possibility of expanding the business i.e. studying the scope of the
future demand of the product (market share)
To easily establish the locations of the customers and this shall help in approaching and
having direct contacts with the customers
NB: For the advantages just modify the above objectives by applying the qualifier words such
as; it helps ……, it enables ……., it facilitates …….. etc.
Language difference which make researchers to sometimes miss the information they
desire to get due to inability to communicate in the languages understood by the
different respondents
There is a challenge of getting information from biased sample/wrong sources which
results into poor findings hence affecting business decision
There is a challenge of insecurity/hostility in some areas which hinders effective data
collection as many respondents may not be willing to reveal facts
There is a challenge of competitors who always sabotage effective data collection in a
way of influencing the customer’s response to the inquiries
There is a challenge of demographic factors like population changes, age, sex etc all of
which affects the findings during market assessment
There is a challenge of inadequate or insufficient capital / funds. His is because it is
very expensive to carryout market assessment especially to small firms with limited
capital which leaves them with no information for decision making
There is a challenge of inadequate skills to handle data collection and this is due to
limited skilled man power to effectively and efficiently handle market research
Inadequate communication facilities is yet another challenge faced during market
research since it makes accessibility of some areas of the country difficult due to poor
road networks
There is a challenge of inadequate cooperation from the customers or public where by
some people refuse to answer the questions, others give wrong information while others
chase away the researchers
Questionnaire
Greetings from Kamu – kamu bakery enterprise. You are requested to fill for us this
questionnaire to help us in our market research programme
1.Name: ……………………………………………………………Sex: Male Female:
2.Location and address: …………………………………………………………………………….
3.How regular do u buy our bakery products?
…………………………………………………………………
4.In what quantities do you normally buy? Small: Medium: Large:
5.How did u come to know about Kamu – kamu bakery enterprise?
Sales Agent: Customers: media:
6.What attracts you to buy our product? Quality: Colour: Price:
7.How do you find our price? Low: Modarate: High:
8. Is the quality good? Yes: No:
9. How do you compare our bakery product with those of ure competitors?
Poor: Better: Ver good:
10. Where do you often buy our products?
Ratial out lets: Ratialers: Wholeslers: Company :
11. Is the place convinient for you? Yes: No:
10.What aspects of the product an operational methods deserve improvement?
…………………………………………………………………………………………………………………………………
How should we improve it?....………………………………………………………………………………….
…………………………………………………………………………………………………………………………………
Please thank you for sapring your time to answer our questionaire
Prepared by:
MARKETING STRATEGIES USED IN BUSINESS
A strategy refers to a method or plan chosen to bring a desired future, such s achievement of a
goal or solution to a problem.
Advertising: This involves the creating of awareness about the availability of the
product through different Medias like radios, TV and the press
Networking: This tool involves sharing information and services among individuals
and groups having a common interest
Giving free information: This tool involves giving information about business
products to customers at a free cost e.g. where to find the product, their price and
sometimes ways of handling the product
Offering a guarantees/warrantee: This is an assurance given to customers about the
value of the product so as to win confidence e.g. a long warrantee periods creates
loyalty in minds of the customers
Cold calling: This tool involves sending of anonymous/ various messages to customers
of whom may or may not be known to the business
Using referrals: This is where old customers refer other customers to the business or
business to other customers usually by word of mouth.
Using newsletters: This tool involves writing periodical reports giving news or
information about the firm’s products to special groups of customers so as to attract
their attentions
Marketing decision making: This involves making the right decision on how to
market and distribute the products e.g. the use of direct channel or long channel
Effective communication: This is an activity which takes place when a message sent
from one party to another has been fully understood and acted upon. Communication
can be done orally or in writing e.g Airtime sold here
Attractive display: This involves making items of the entrepreneur known by
strategically putting and arranging them in certain positions so as to attract the
attentions and arouse the interests of the viewers
Promotion and advertising: This refers to means used to get the message about ones
products reach the intended customers. If properly done, it boosts the sales of the
business products
Offering price reductions: This is the deliberate attempt by the entrepreneurs to
slightly lower the prices of his /her products to encourage customers to buy. However
this is done for a specific period
Negotiations: This involves the bargaining with customers on how best the business
products can be sold and distributed. Negotiation is important in any trading situation as
it helps to reach a mutual understanding between the two parties
Personal selling: This involves sending a team /a group of individuals/salesmen to visit
customers in their homes offices and discuss with the about the new product sold by the
firm. This techniques is important as it involves direct interaction between the
customers and salesmen
Favourable pricing strategies and policies: This helps the entrepreneur to capture a
wider market as well as obtaining more profits from his sales. E.g. a low price but
profitable can be charged to enable the business product penetrate the market
Quality improvement: This helps an entrepreneur to meet the needs of the market and
therefore attain a bigger market share which results into increased sales
Early cash recovery: This is where an entrepreneur sets a price that will lead to quick
cash recovery either because of cash needs or because of future uncertain
Market penetration objectives: This is where an entrepreneur sets a price that is
relatively low so as to stimulate growth of the market and to increase the market share
Market skimming objective: This is where a higher price may be set by the
entrepreneur to take advantage of the existence of buyers who attach a high
prestige/value to his product and are willing to pay a high price for the product
Product line promotion objective: This is where the entrepreneur sets a price that
would promote his sales of a particular product and the entire product line. E.g. popular
product may be priced lower or even less so as to attract the buyers
Satisfying objective. This where an entrepreneur sets a price that satisfies his
marketing objectives and at the same time results in realization of profits
This refers to the activity that involves attaching of monetary value to goods and services at
which the entrepreneur is to offer his products. Pricing is an important activity in an enterprise
as it influences the profits of an entrepreneur and it determines the consuers purchasing power
Marketing objectives. In this case the price set should be in line with the specific
marketing objectives of the firm that would led to overall organizational goals
Cost of production. The higher the cost of production incurred to produce a particular
product the higher would be the price set and vice versa
Price of the competitor. If a product has close substitute then the entrepreneur should
charge similar price or even lower than those of other entrepreneurs so as to compete
favourably
Elasticity of demand for a given product. The entrepreneur shall charge relatively
low prices for commodities whose price elasticity of demand is elastic and relatively
higher prices for commodities with inelastic demand
Quantity a particular customer wants to buy. When customers are able and willing
to buy in large quantities the entrepreneur shall charge low prices so as to maximize
sales and vice versa
Nature of the product. Seasonal products like rain coats success cards and x–mass
cards are usually sold at higher prices in their season than products which are not
seasonal like soap, sugar and salt etc.
Level of competition. Stiff competition calls for low prices so as to be able to compete
favourably
Organization objective. For organizations with an objective of sales maximization a
lower price shall be set than when the objective is profit maximization where a higher
price shall be set
Government policy on pricing. Under this, one has to mind about the government set
prices for some products especially the essential so as to avoid contradicting with the
government in prices
Customer care refers to the process by which an organization delivers its services to customers
in a way that allows the customer to access them in the most efficient fair cost effective and
humanly satisfying manner. This may refer to the system in the business project that will
maximize your customers’ satisfaction with your business product OR it is the process of
constantly and consistently meeting customers’ needs in such a way those customers feel
wanted and appreciated
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