Business Marketing Notes

Chapter 4
4.1 Role of Marketing
What is Marketing?
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Meeting and creating the needs and wants of the customers

o Delivering value to the public
Managing the relationship between company and public to the
benefit of the business and its stakeholders

The Market
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Generally a physical market with a buyer and seller

o B2B- Selling from business to business
o B2C- selling from business to consumer
o C2C- selling from consumer to consumer

Market Size
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Refers to the number of buyer and seller of a product or service

in a individual market
Once market is identified, knowing the opportunity of sales and

analyzing competitors is key

Large Market= Large # of buyers and sellers

Market Share
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Calculated by the sales of the company compared to the total

number of sales in its market= Market Share Value= Total Company
Sales/Total Sales in the Market x100/1 = Market Share

Can have lots of revenue but not be a huge player in the market

due to its share

Increase in Market share= Increase in sales revenue
Specific Qualifications:
o Market share is best judged against the biggest
rivals/competitors rather than whole market
o Decline in market share may mean anew company has
entered the market, no less worse than before
o Drops in market share can be deliberate
o Seasonal changes and sales cause fluctuations of the
market share

Marketing Goods/Services
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Products=anything that fulfills the need and wants of the

consumer
Classifications
o i. Nondurables=(food) consumed quickly and repeatedly
o ii. Durable Goods= (Cars and Clothes) are used repeatedly
o iii. Service= (Haircut or teaching)
Business will try to market purely the strengths of their product
Will the company create a product and hope for it to be liked, or
research the market and produce a product that will satisfy the

market wants and needs

Asset-lead=Product lead orientated business. Assets lead the

productivity
Product Orientated= Build product, sell to market. Usually higher

quality and affordability

Market Orientated Product= Primarily focuses on the market
needs and wants= reactive and proactive

Social Marketing

Marketing done by the GOV or NPO by focusing on the positive

and deflecting the negative aspects on society or among the

world
Designed to change life of individuals (poster that cause and
effect on the viewer to change habits, values, and promote

certain concepts)
Value based marketing
Continue to be promoted by the GOV and keep promoting
beneficial services of goods

Asset-Lead Marketing
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Usually successful in developing countries where expansion is

the goal
Companies may have the qualitative products, but the pricing,
distribution and marketing of the products is the challenge

NPO Marketing
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Services such as hospitals, military, police, postal service (of the

GOV sector that is public)

The little private sector section promotes what the government is

not promoting i.e Environmental objectives

Marketing campaigns can be very expensive
o Associating icons is a key way to promote more sales

4.2 Marketing Mix

- Products= 4, Ps= Price, Place, Promotion, Product
- Service Ps=People, Process, Physical Evidence and Packaging

- Product
This aspect represents any element of the product that may be
improved or changed including quality, design, variety, accessories,
branding, or packaging among others.
-Place
In sales the more points of sale available to the consumers the more
likely sales will occur. It also critical to remember the place does not
only represent a physical location. Therefore, place includes an Internet
website, telephone or postal orders. Place also invariable implies
distribution channels.
-Price
Pricing strategies imply all the methods available to the seller to
convince the consumer that the value proposition is attractive. If a
product is priced right, we are inclined to agree with the value
proposition. Therefore, list prices, discounts, credit terms are tools
used in pricing the value proposition.
-Promotion
The difference between advertising and promotion is that advertising
builds your awareness of the product, while promotion gives you the
reason to buy. In the marketing mix promotion includes advertising,
sales promotion and public relations.
-People
As you can imagine, for services client contact is the most vital part of
the transaction. Therefore, the training, qualifications and competence
of the people or labor is critical.
-Process
How the service is delivered refers to the process. In MacDonald
outlets the drive-through is part of the process as is the self-service at
the counter. Some restaurants will deliver your food dressed in
traditional representative clothes or even on roller skates!
-Physical evidence

Although a service does not imply there being a physical product, there
is however always some evidence that the delivery took place. Once
you graduate from your educational institution a diploma is evidence of
the teaching service lecturers have delivered.
-Packaging
Packaging of physical products would imply presentation. Consider a
meal in a gourmet restaurant or the impressive and artful packaging of
Apple products
Ethics in Marketing
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consumer evaluate the positive and negative brand beliefs by

order of importance
For this, companies are always on the look out for market trends
CSR is a huge practice in companies current day (Global Value)
Market research in cultural backgrounds are key as possible
backlash or company Lies in marketing will result in harm to
the brand beliefs

Marketing Audit
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Examination of a companies objectives, environment, marketing

strategies and activities

Periodical process to access the positive and negative impacts
The goals is to correct any identified flaws in the system, if none

reinforce the positive

AS A BUSINESS TOOL
o Exposes the weakness and strengths
o Leads to evaluation of internal practices and can bring
efficiency back as a staple of the business

Marketing Objectives
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Must be definable and quantifiable so there is a target to focus

on

Objective= staff motivation, common ground for goal, elaborate

the clear focus of the business
SMART
o S-pecific
o M-easurable
o A-ttainable
o R-ealistic
o T-imley
Internal and external restraints must be known
Internal= finance or resource related
External= suppliers, competition or the economy

Market Research
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The process of collecting reliable data that can be assessed that

relate to the business objectives

Online profiling through credit cards and consumer profiles (GREY
AREA ETHICALLY) will become more apparent as tech grows and
dependency increases

Role of Market Research

-

generally 1-2% OF THE COMPANIES SALES

external hiring for market research can be done as most

companies have their own market research

designed to define the challenges and find realistic solution for
them

Methods of Market Research

-

Primary and Secondary Research

o Primary Data is recently gathered or just been gathered
(Surveys and questionars) (Focus group testing)
o Secondary Data is data that has already existed or is
commonly known

Usually to broad and unrepresentative

Less expensive than primary data, it may be out
dated= unreliability

Sampling
o Errors will arise due to poor planning and application
o Problem is poorly defined or reliant on one approach, error
is eminent
o Make sure to account for error, best thing to do is have
many approaches and samples to have less error
o VARIETY IN SAMPLING

Market Segmentation and Consumer Profile

-

Market Segment= distinct group of costumers with similar

characteristics (age, gender) and similar wants and needs
o Helps target and divide a market to focus on specific
groups of people and max out on marketing to the

individual groups
Targeting
o Each individual market segment having their own
marketing mix
o Targeting refers to choosing a specific segment in the

market and the decision

1) Measurable; whereby a qualities of the groups can be
measures if not by size, then by income.
2) Substantial; whereby the group is large enough to
attract the attention and interest of business
3) Accessible: whereby the target group can be effectively
reached
4) Differentiable; whereby the segment is distinct in
purchasing habits or needs.

5) and actionable.; whereby marketing campaigns can be

devised to influence the group.
o Target groups a prone to change and shifts
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Positioning
o When a business has placed a identifiable place for the
product in the mind of the consumer
o Ex. Product being used in a popular movie
o Brand Positioning= companies pay for their products to be
placed under the eyes of the mass medias (movies=higher

payroll=more competitive positioning)

Corporate Image
o Public relation image, very broad
o To sustain a positive image to the public,
Publicaitns of websites, magazine, annual and
quarterly reports (remain a focus of attention)
Sponsorships as well
Perception Map on Positioning
o Visually displaying products in two different variables =
PErcep. Map
o Reveals wholes and/or openings that can be resolve with
action

Unique Selling Point

-

Used to differentiate from other competitors allowing for an

advantage
Branding is distinction between products
o Price point can make or break a products value to the
public
Too cheap may result as seen as less quality

Too expensive= only a specific segment targeting,

possible lack in sales when targeting a preferred
smaller market segment

Product
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Prodcut Life Cycle

Boston Matrix
Product Portfolio (assess the product life cycle) BALANCE
Branding
o Differentiation
Loyalty and premium price
Brand equity=value of the brand
Brand Image= Beliefs consumer have for the brand
Brand Extension= creation of new product based off

a previous branded product (APPLE)

Product line and MIX (IPhone, Ipads)
Product mix can have many product lines
QUALITY= back to core beliefs=higher market share
and sales
Internal Marketing
Having the entire business know the values of
the brand

Price
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Elasticity
%change in quantity/ % changein price= #
Vlaue is less than 1= demand is sensitive to price= changes in
price= huge changes in demand Price Elastic

Bigger than 1= less reactive to price and demand, little

changes= Price Inelastic
=1 price is unitary to demand
0= perfectly inelastic
Demand and Supply
o Demand = need= more sale at higher profit margins
o Low Demand= no one wants the product
o Price will fluctioute depending on the demand for the
product

Promotion
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Communicating messags ot the market to have the consumer

want to buy the product
Ad campaign, branding, slaes promotion and raising publicity
Inform
Persuade
Remind
Above the lIne Promotion
o Paid promotional technique through media
Below the Line
o All type sof ads that are non-media pbased
o Business has full control of these
o Sale promotion- deals, free samples etc
o Where buyer buy, there are products their- point of sale
promotion
Pull
o
Push
o
Promotional Mix
o B. Tool to effectively communicate message to public
o AIDA
o Attention- raise awareness of product
o Interest-keep customer interested
o Desire-desire or need for the product
o Action-encourage customer to take aciton
Promo Mix Elements
o Advertisting
Used ot shape up awareness, perception and attitude

 Informative and/or persuasive

o Personal Selling
Sales representative directly communicating to the
buyers, persuading them to buy the product
Tailored to the individuals needs of the customer
o Public Relations
Aimed to protect and establish the image of the
company
Good press coverage
o Sales Promotion
Short term incentives
Short term competitive action
Encourage customer loyalty
Rid of excess stock

International Marketing
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diferent market have different needs

Exporting- selling ot overseas buyer
Direct Investment- setting up production of distributon center n

new location= costly

Ecommerce- Via INterent
Joint Venture= 2 or more companies invet in project
o Strategic alliance= dealing with cost and issues together to
avoid individual failure or loss