MARKETING

HTU/CIMG/GOIL MARKETING TRAINING

Purpose of Training

The purpose of this training is to give shortlisted students of the HTU/CIMG/GOIL

awards deep insight about marketing as a discipline and the key marketing components. It
is also hoped that this would enhance their technical competence and help them grow
their businesses whiles also creating employment for the youth.
To achieve its purpose, the training will focus on the following areas:
•The Marketing Concept
•The Marketing Mix
•Segmentation Targeting and Position
•Marketing Strategies
•Marketing Planning/Marketing Plan
Learning Outcome

•Understand key marketing concepts

•To explain the concept of segmentation targeting and position
•Identify and describe the individual elements and tools of the marketing mix
•Explain the context of the process for marketing planning and budgeting
•To develop a marketing plan for key areas identified
Outline of programme

•Self Introduction, background of participants and outline of prog

•What is marketing (definition, marketing concept)
•The Planning Process
•Marketing Plan
What is Marketing

•Marketing creates demand for a product, which in turn drives revenue. Greater demand
creates need for companies to hire new workers, while revenue (top line) contributes to a
company’s bottom line (profits), which allow the company to be more fully engaged in
socially responsible activities.

•Marketing is both an art and science. The art involves creativity whilst the science is that of
performance and result/research. This involves the studying, and understanding, of
relationships and exchanges between buyers and sellers
•What is marketed?
•……………………………
•…………………………..
Definition of Marketing

•Various definitions of "Marketing" have been proposed by practitioners of marketing:

 
•"Marketing is a human activity directed at satisfying needs and wants" (Kotler).
 
•"The management process responsible for identifying, anticipating and satisfying customer requirements
profitably" (CIM)
 
•“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of
ideas, goods and services to create exchange and satisfy individual and organisational objectives (American
Marketing Association)

•Selling is a personal exchange between a host organisation and a potential purchaser of its products/services
which results in a business transaction.
Marketing Concepts

Five Distinct marketing concepts are:

•Production
•Product
•Selling
•Marketing
•Holistic
 
Marketing Concepts

•Production – Mass produce and to distribute them on a side scale

•Product – Consumers prefer products that have high quality, performance, or are more innovative.
Attention is paid on the product but this does not equal success
•Selling – companies use aggressive selling approach to increase demand because they think
customers will not purchase on their own
•Marketing – focuses on the customer with a “sense-and-respond” attitude. Companies that have
embraced the marketing concept have been shown to achieve superior performance than
competitors.
•Holistic concept - takes a philosophy that everything matter in marketing. sees itself as integrating
the value exploration, value creation, and value delivery activities with the purpose of building long-
term, mutually satisfying relationships and co-prosperity among key stakeholders
 The Marketing Planning Process

• combines the organisation's overall marketing strategy with fundamental analyses of

trends in the marketing environment; company strengths, weaknesses, opportunities
and threats, competitive strategies; and identification of target market segments.
Ultimately the process leads to the formulation of market programmes or marketing
mixes which facilitate the implementation of the organisation's strategies and plan's.
(Dibb, Simkin, Pride & Ferrell.)
 Marketing Process

• MARKETING MISSION STATEMENT

• THE MARKETING AUDIT

a) external analysis
b) competitor and customer analysis
c) Internal analysis
d) Swot analysis

• DEFINING MARKETING OBJECTIVES

• SEGMENTATION AND ANALYSIS

• EVALUATION OF STRATEGIC CHOICE

 Marketing Audit

An audit of the organisation’s marketing activities provides information on

the internal environment

• According to Schuchman, marketing audit is a systematic, critical and

impartial review and appraisal of a total marketing operation which
include the basic objectives and policies, procedures and methods and
the organisation employed to implement the policies and achieve the
objectives 
 Marketing Audit

• According to Philip Kotler the marketing Audit is a

comprehensive systematic, independent and periodic
examination of a company’s or a business unit marketing
environment objectives, strategies and activities with a view to
determining problem areas and opportunities and
recommending a plan of action to improve the company’s
performance
 Marketing Audit Issues

Internal Environment
 
• · Marketing strategy – what are the organisations marketing objectives and how do they
relate to overall objectives. Are enough resources being committed to marketing to enable the
objectives to be achieved: is the division of costs between products, areas etc satisfactory?
• · Marketing organisation - does the organisation have the structural capability to implement
the plan? How effective is the structure of the marketing department? How does it interact
with other departments?
• · Marketing systems – What are the procedures for gathering information, formulating
marketing plans and exercising control over these plans?
• · Marketing productivity – How profitable and cost effective is the marketing programme?
• · Marketing function – review of the effectiveness of the elements of the marketing mix.
 Marketing Audit

Micro Environment

• Supplies – The availability of resources, selling policies

• Distribution – the channels of distribution, their efficiency and potential for
growth
• Markets – Major development, the market growth, and changes in turnover and
profits. Performance of different types of customers
• Customers – Customers views on price quality
• Competitor – Their objectives and strategies, market share, and strength and
weaknesses
• Stakeholders/publics – important groups and how they have been dealt
 Marketing Audit

MARKETING AUDIT ADVANTAGES

1.It should reduce the need for crisis management

2. It should identify information needs
3. A formal process forces people to think
 SWOT ANALYSIS

• enables an organisation to plan how to match its strength to

available opportunities and/or to convert its weaknesses into
strengths or its threats into opportunities
 SWOT Analysis

1. Strength: Distinctive competences/resources that will help the organisation achieve

objectives (e.g. well-developed customer relationships).
 
2. Weakness: Any aspect which may hinder or contain the organisation in achieving its
objectives (e.g. lack of innovation skills).
 SWOT Analysis

3. Opportunity: Any feature of the external environment which creates

positive potential for the organisation to achieve objectives (e.g. opening
up of new markets through internet).

4.Threat: Any external development that may hinder the organisation in

achieving objectives (e.g. emerging local skill shortages).
 Environmental Scanning

• Environmental scanning means keeping one’s eye and ears open to what
is going on generally in the market place, especially with respect to
competitors, and more widely in the technological, social, economic and
political.
 
• The information or results or environmental scanning is market
intelligence.
 Environmental Scanning

Sources includes:

• Financial newspapers, especially the Financial Times and the Wall Street Journal
• General business magazines, such as the Economist and Business Week
• Trade journals, such as Harvard Business Review
• Attending conferences, exhibitions, courses and trade fairs
• Salesforce feedback
• Watching competitors
• Developing and making use of a network of personal contacts in the trade
 
 Marketing Environment

• According to Philip Kotler, the company’s marketing environment is

made up of the sectors and forces outside the firms marketing function
which infringe upon the ability of marketing management to develop and
maintain a successful relationship with the firms target group
 Macro Environment

• consists of the broader set of forces that have a bearing upon the
company. This includes economic, demographic, technological, political-
legal and social factors.

• PEST (SLEPT, PESTLE) is a way of organising information about the

macro or external environment in which the organisation operates.
 
 Political/Legal Factors

• This part of the environment is compose of laws, pressure group and government
agencies all of which exert some sought of influence and constraints on organisations
and individuals in society.

• This also looks at the political situation of the country whether is stable or unstable.
Government policies relating to trade are also looked at.
• Legislation is designed to achieve a number of purposes including:
 
• 1. Protecting company’s from each other
• 2. Protecting consumers from unfair business
• 3. Protecting society at large from irresponsible business behaviour.
 Economic Factors

• The economic environment is typically seen as a constraint for small and medium
size firms. Large company’s and particularly multinational corporations (MNC) have
the ability to cope with a change in the economic environment since they are often
able to shift investment and marketing pattern from one market to another.
• More specifically, however, the sort of changes that are currently taking place in the
economic environment can be identified as

• a. Slow down in real income growth

• b. Continuing inflationary pressures
• c. Changes in consumer expenditure patterns
• d. The level of economic growth
 Social Factors

• The social environment discloses trends in culture, lifestyle,

demography and attitudes. The following trends can be identified

• 1. A growth in the number of one person household.

SSWD=Single, separated, widows and Divorced
• 2. The growth at the population rate
• 3. The nature demographic (age)
• 4. Changes in family structure
 Technological Factors

• Technological changes needs to be seen as a force for creative destruction in the

sense that the development of new products or concepts has a fatal knock out effect
often on existing product. For e.g, the introduction of photocopy process destroyed
the market for carbon paper, while the development of cars damaged the demand
for railways.
• The following basic trends can be identified in the technological environment.
 
• 1. There is an accelerating pace of technological change for e.g. there has been
significant technological advancement in telecommunications computer industry
and automobile industry.
 
 Micro Environment

Is made up of those elements which are closest to the company and which
exert the greatest and most direct influence over the company ability to
deal with its market.
 Micro Environment

The micro environment comprises all those individuals and organisations that affect the
operations of a business on a day-to-day basis.
 
The following are the elements of the micro environment

• Customers
• Suppliers
• Intermediaries
• Competitors
• Employees
• Shareholders
 Competitor Analysis

 Competitor Analysis is Becoming Increasingly Important.

– Executive education in competitive intelligence gathering is a key training
topic.
– Some universities offer certification programs in competitive intelligence
programs.
 Competitive Intelligence Activities have an Unsavory Reputation due to Ethical
Lapses by Some Companies.
 The Competitor Analysis Framework Consists of Four Key Phases of Analysis.
Competitor Analysis Framework
 Competitor analysis

 Key stages:
 Objectives
 Strategy
 Strengths and Weaknesses
 Match Up

 Competitors’ objectives offer insight into future strategies.

– Are they pursuing growth (sales volume, market share) or profit related
objectives?

 Ownership status (public, private, government) should be considered when

assessing objectives.
 Competitor analysis

 Customer and competitor targets

 Product features
 Core strategies
 Supporting marketing mix:
– Price
– Distribution
– Product
– Communications.
 Industry Environment

Porter’s Competitive forces

• Competitive forces are ‘the structural determinants of the intensity of competition’

which collectively determine the profit (i.e. long-run return on capital) potential of
the industry as whole.

• According Michael Porter, there are five basic competitive forces, which influence
the state of competition in an industry. Michael’s forces include the following:
 
 Porter’s Five Forces

• The threat of new entrant to the industry

• The threat of substitute products or services
• The bargaining power of customers
• The bargaining power of suppliers
• The rivalry amongst current competitors in the
 Marketing Objectives

Defining Marketing Objectives

 
•Gilligan et al, in Strategic Marketing Management (1992) present two published
viewpoints of researchers who have identified possible marketing objectives:
 
•a. Mckay (1972) - The authors state that Mckay suggested that there were only
three possible marketing objectives:

•- to enlarge the market

•- to increase market share
•- to improve profitability
 Marketing Objectives

•b. Gultinan and Paul (1988)

•They also tell us that Gultinan and Paul argued that six objectives should be given consideration:
 
•- market share growth
•- market share maintenance
•- cash flow maximisation
•- sustaining profitability
•- harvesting
•- establishing an initial market position

a. Ansoff (1968)
 
•Ansoff argued that marketing objectives can only ever be about:
• 
•- products, and
•- markets and that products and markets are either
• 
•- existing, or
•- new.
 Marketing Objectives

The process of setting objectives

Objectives should be SMART

•Specific - (what has to be achieved) e.g. we would like 30 percent of respondents to
name our brand in an unaided recall test
 
•Measurable (what is the criteria for success) we will be commission a market research
organization to carry out the recall test
 
•Quantified, so that you can tell if the objective has been achieved. If you were aiming
for a 10% market share and gained a 15% market share you can tell you have achieved
your objective
 Marketing Objectives

•Achievable (realistic given the context, resources) our campaign last year resulted in
20 percent unaided recall, so this campaign should be able to improve on that

•Relevant (relating to any higher objectives) 30 percent unaided recall is well within
what other brands in our portfolio have achieved, and we would expect this brand to
achieve this if it is to remain in the portfolio
• 
•Time (realistic timescale for achievement) we are allowing a three-month time-frame
for the campaign to have its effect.
 Marketing strategy

2 main areas:
• Segmentation, Targeting and Positioning (STP) and 7 P’s (Product, Price,
Promotion, Place, Process, People, Physical Evidence
 Segmentation

Marketing segmentation involves: ‘the subdividing of a market

into distinct and increasingly homogeneous subgroups of
customers, where any subgroup can conceivably be selected as a
target to be met with a distinct marketing mix. (Cannon, 1980).
 Segmentation

A. GEOGRAPHY AND GEODEMOGRAPHIC:

Geographic: region, climate, population density
Geodemographic: eg. ACORN Classification

B. DEMOGRAPHIC
Age, sex, education, occupation, religion, race, nationality, family size and family lifecycle.
 
C. BEHAVIOURAL
Atitudes, knowledge, benefit, use status, usage rate, readiness to buy, occasions.
 
D. PSHYCHOGRAPHIC
Personality, lifestyle, opinions and interest etc
E. BENEFIT SEGMENTATION:
Benefits
 
 Targeting

• Targeting involves selecting one or more customer groups (segments) and satisfying
them with a tailored marketing mix.

• According to the 'CIM' Targeting is 'the use of market segmentation to select and
address a key group of potential purchasers'.

Targeting strategies
• There are three broad approaches to target marketing as illustrated below.
 Targeting

• UNDIFFERENTIATED - Produce a single product and hope to get as many customers as possible to
buy it; that is, ignore segmentation entirely. (This is not common now. An early example was the Ford
Model T car.)

• DIFFERENTIATION MARKETING - The Company attempts to introduce several product

versions, each aimed at a differentiated market segment (for example, one company producing
several different brands of washing powder or cereal).

• CONCENTRATED MARKETING OR SEGMENTATION - Attempt to produce the ideal

product for a single segment of the market (e.g. Rolls Royce cars, Mother and baby shops).
Company’s producing Pianos have been exceedingly successful with concentrated e.g of leading
company Steinway.
 Positioning

•Product/brand positioning refers to the market’s perception of the

characteristics of a brand in relation to other bands.

•Positioning is how a product appears (how it is perceived by the market)

in relation to other products in the market.

•Is the process of designing an image and value so that, customers within
the target segment understand what the brand or the company stand for in
relation to its competitors.
 Positioning

•In general, the process of positioning involves 3 steps

 
1. Identifying the organisations or brands possible competitive advantages.
2. Deciding on those that are to be emphasised.
3. Implementing the positioning concept.

•Positioning characteristics (Wind, 1981)

 
• Specific product features, e.g. price, speed, ease of use, softness/strength (in the case of toilet tissue)
• Benefits, problems, solutions, or needs
• Specific usage occasions
• User category, eg age, gender
• Against another product, eg comparison with a market leader
• Product class disassociation (‘stand-out’ features from the general mass of products), e.g. organic food, lead-free
petrol, hypo-allergenic cosmetics
• Hybrid basis: a combination of any of the above (e.g. position a band of toilet tissue according to perceptions of
softness and strength, by female/male users, compared to competing brands
 Marketing Tactics/Action Plan

Is produce after having set targets and made forecast

 Who is going to do what and when?
 How long must each activity be sustained?
 How often should it happen?
 How much will it all cost?

Kiplings 6 Serving Men: who, what, when, why, where and how
 7 P’s

Products
 Range and depth, packaging, presentation and sales messages
 
Prices  
Objectives
Survive, maximise profit, growth (penetration), maximum skimming (high prices),
product-quality leadership (high price)
Method
cost-plus pricing , mark-up pricing, going rate, perceived value (buyers perception of
value), value pricing (fairly low price for high quality offering-lexus and Mercedes
benze price,
• Price
 Strategies
Geographical Pricing (how to price products to different customers in different locations and countries
Price discount and allowances (cash, quantity, functional discount to to channel members for storing,
selling and record keeping.
Promotional pricing – techniques to stimulate early purchase (special event, psychological discounting
(high price on product and offering it at substantial savings eg. Was $359, now $299
Discriminatory pricing – modify basic price to accommodate differences in customers, products, location
and so on (customer-segment pricing, product-form different versions are priced differently but not
proportionate to their respective cost – special ice prices 500ml bottle of water at ghc2. the same water
packaged differently for ghc6, image, location, time
Things to take into account to help you decide
 image, production capacity, profit margins, current and future levels of competition, flexibility to alter
price
 7P’s
Place
Wholesalers
Retail Stores
Distributors
Agents
Internet and mail odrder
Door to Door selling
Telephone selling
 7 P’s
Place
 Location, distribution, communication, premises, mobility
Promotion
 Advertising: Tv, radio, newspapers, magazines, internet, poster and trade press
 Direct marketing: faxing, phoning, mailing leafleting, coupon response ads
 Social Media: Wasapp, facebook, twitter
 Merchandising: window and in-store display or layout
 Exhibition: reputable and relevant events
 Public press relations: media coverage, events, sponsorship
 Face to face selling: appointments
 Internet: email, website, e-commerce
People, Process, Physical evidence
 7 P’s

People
• Quality
• Customer service
• Competitive advantage
 7 P’s

Process
• Review your processes
• How does the product get to the customer?
• Are there any delays?
• Are there any opportunities for improved customer care
• Are there any efficiencies?
Physical Evidence
• Company image
• How is your product presented
• How is it perceived in the marketplace?
 Budgets

THE MARKETING BUDGET

A marketing budget sets out how much the organisation intends to spend in carrying out
its marketing plan

• PERCENTAGE OF SALES: This is the commonly used method of determining a marketing

budget because
• COMPETITIVE PARITY: In order to obtain a certain market share competitors advertising spend
are match in order to compete and also get a percent of the market.
• ALL-YOU-CAN-AFFORD: This often applies to a new company starting up or to an existing
company advertising for the first time. As a new entrant or existing company the decision has to be
taken to forgo investment in another area or to forgo profit.
• OBJECTIVE/TASK METHOD: This is probably the one which is most logical and appropriate
method. It sets the marketing objective, identify tasks required to meet objectives and determine the
cost of cash element.

 
 Control/Feedback

• To control is to measure results against target set and take any action necessary to
adjust performance
All planning should have a control element along the following lines
(a)Formulation of standards and goals
(b)Measurement of actual performance against those standards
(c)Procedures for taking corrective action, either by changing the marketing
programme, the personnel involved or even adjusting the standards for the future
 Control

What standards should be adopted?

Corporate objectives
Corporate objectives include matters of financial performance
 Profit
 Return on capital
 Cash flow
 Earnings per share
 Control

Marketing objectives
Standards for local marketing activities
 Market research (number and types of studies)
 Sales volume (by product line/quarter/year etc)
 Product (quality control standards)
 Distribution (market coverage, dealer support)
 Pricing (levels, margins and rigidity or flexibility)
 Marketing Plan Outline

1. Executive Summary – This is a summary of the major point in the plan to enable the reader to
actually know what is containing in the plan. This is very important in circumstances where the report
is lengthy.
 
2. Mission Statement; corporate objectives – The internal context of the plan: where the organisation
is trying to get to after conducting a marketing audit.
 
3. Situation analysis/marketing audit – Is used to provide the context for the marketing planning and
requires a study of the broad trends within the economy and society, as well as the detailed analysis of
the markets, consumers and competitors. It looks at
• a. macro environment eg the PEST factor analysis.
 Marketing Plan Outline

b. Micro environment audit comprising the internal systems/culture, competitor analysis, customer
analysis, market/product/price research including product life cycle analysis, market share analysis.
 
4. SWOT analysis – Appraisal of internal strengths and weaknesses, and external opportunities and
threats.
 
5. Marketing objectives – What the marketing plan is intended to achieve (in the light of elements 2-
4 above).
 
 Marketing Plan Outline

6. Marketing strategies – How the marketing objectives will be achieved

 
· Matching or conversion? - Suggested by SWOT analysis
 
· Competitive Strategies? - Suggested by competitor/market/product analysis
 
· Growth strategies? - Suggested by product/market analysis eg Ansoff matrix
 
· Market segmentation/targeting? - Identifying target able sub-sections of the market or customer
population.

· Product/brand positioning? – Determining how product/brand should be perceived by the

relevant target market/segment.
 
 Marketing Plan Outline
 
7. Marketing tactics – (product/pricing/distribution/promotion plans) –Action plans for each of the
elements of the (extended), marketing mix, to implement marketing strategies.
 
8. Marketing budget – Quantified monetary plans: sales/revenue forecast, costs/expenditure budgets,
forecast profit and loss statement
 
9. Timetables – Detailed timescales for implementation of plans.
 
10. Monitoring and control – How progress and results will be monitored, review and measured
against objectives/budget

11. Summary/conclusion (if needed)

12. Appendices – Supporting documents and figures that are used in the plan but which because of its
detailed nature was not included in the text