Transcript for:
Marketing Management Lecture Notes

welcome again to our tablet a2 we are looking at marketing management marketing management where market management basically involves the management of the marketing function of an organization's through much we've covered in BC 1 1 1 I will sure we all pitch that a business organization can be described as an institution of the free market system that attempts to satisfy the needs and wants of the community while making a profit that's how he defines a business organization entrapped in VEC 1 1 1 a business can also be described as a system that converts inputs into outputs which are basically products and services that can be used for by the community this is also how we define business organizations when we started looking at operations management but now we are looking at marketing management it's important to understand that marketing is also one of the functions that are very important for every business and the marketing function is that aspect of the business that is involved in the marketing process which is the bear which is basically the transfer of products or services to the market in the market in this case our note is not a place but you're talking of the people who are willing to use the products who are also able to pay for the products the marketing process consists of environmental scanning and also it consists of the development of the market offering which is best value the product or the service so it's important to look at the learning outcomes for the course what are we supposed to be able to give lens by the end of this particular chapter so these are the lane outcomes which are projected on the on this button on this slide and this is the chapter outline where we will look at the introduction then the evolution of the marketing thoughts we will also look at the marketing concept defining marketing components of the magnetic process market research we also look at consumer behavior market segmentation target market selection and positioning the marketing instruments product decisions pricing decisions distribution decisions marketing communication decisions then we'll also look at customer service then we will just we have covered what you are supposed to have covered for this particular chapter looking at the evolution of the marketing course where the marketing thoughts evolved from wave come form in weight is Boeing it's always important that it's always important to understand that the marketing taught is evolved over time if you read your textbook times are actually given before the world war before the first world war what was happening after the First World War the Second World War after the Second World War I will not be much invested in those but what I think is very important in this key for purposes of this course is to understand that the evolution of the market in total the maggot entities actually evolved from an operation oriented management to a sales oriented management to a marketing oriented management a consumer oriented market management to a strategic approach to marketing and also to relationship marketing so it's important to also understand that some organizations to practice the operations oriented money a proto oriented management others to practice a sales oriented management while others to practice market team oriented management others choose the consumer-oriented management so it's important for us his students and his prospective marketing managers to also understand the evolution of the marketing part so starting with the operation oriented management operation oriented organizations tried to increase the number in variety of products that we produced so it was mainly focused on the protocol production so according to this approach management should ask questions such as what can we do best so that we can concentrate all our sources in what we can do best that way we'll be able to produce more and more of the products if it's in the case of service organizations management will ask the questions actions which services are most convenient for us to offer which products can we offer without problems so that we can actually make profits or make money for where do our talents lie so that we will be able to offer services we'll be able to offer a products organizations that engage in this approach of operation Orion teams management when organized around product lines so that they will focus more on their production focus more on the products that they offer to the market and produce more so in this case obviously they would focus more on on the transformation processes our best can be produced products how best can we offer our services so if you read you realize that this particular approach it focused on the needs of the market okay or else let me say instead of focusing on the knee of the market management focused on their capabilities or on the capabilities of the organization what is it that the organization can do yet they were actually supposed to be focusing on the needs of the market my understood in Chapter 1 when we saved if you are offering a product that doesn't satisfy any means of the market then you can as well fail as an organization so with the operation oriented management it ignored the needs of the market the needs of the people so looking at sales oriented management if you have to look at those oriented management this was the phase which was characterized by misleading adverts are characterized by an ethic of selling behavior because people will be paid on Commission or being paid on Commission so they would seek anyone so that they do buy but you must also know that you cannot cheat people every time wise people you can only tip them once once they realize they will never buy from you so with this with the source oriented approach they actually say from the production oriented approach the situation gradually changed in top management succeeded in solving most of the present operations problems the new machinery machinery waived steadily and stocks began to accumulate which became a problem so the source oriented approach emanated from the problem of warehousing space and so forth there was shortage of space to keep products that were produced so during the period between 1930 in 1950 management became more self oriented in an attempt to sell those mass-produced products as I said earlier misleading adverts and unethical sales methods we employed the Genting what was to sell products at any costs whether people are cheated or not whether people are misled or not for as long as we get rid of the products that was fine and obviously this was not going to last long this was not good for organizations this was not sustainable although there are companies or organizations that to practice the sales oriented management so this led to the evolution of the marketing-oriented management and with the market or market oriented management this means not only sales message or the price made but the quality of the product the packaging the choice of distribution channels and the methods of informing potential customers about the market offering about the product they also met so the issue of pallet of the products the issue of quality of the service being offered it also had an effect in the marketing oriented management but as increasingly competitive matter consumer products became available in the financial position of consumers improved consumer demands also started changing management began to understand the importance the importance of the consumer or the product of the consumer demand in the marketing component it became clear that consumer means preference is media to be considered when product related decisions were meant so in the consumer oriented management instead of focusing mainly on what we are able to produce instead of focusing on the quality of the product that we offered the market well instead of trying get rid of the products it was important for it became important to understand the needs of the consumer in the operations management I remember I said every that an organization plans to offer to the market before they produce a product before they come up with a service that they can offer to the market they must have a consumer in mind the final use of the product why would they want to use that product what means does that particular product satisfy so that was that is it what that was it about the consumer oriented management then from the consumer oriented management we must also know that continual changes in the marketing environment have been occurring in the need to ensure a survival and growth of organization meant meant that management had to concentrate on the is outstanding the environment it on lower long-term issues this is basically understanding now the internal environment of the organization the external environment of the organization without neglecting consumer needs but for survival for long term sustainability of the organization it was important for organizations to develop a strategic approach to marketing to develop a strategic approach to market Asada's what made to the strategic approach to marketing and now there is also what is known as relationship marketing whereby for organizations to survive for businesses to survive managers now understand that they have to build close and long-lasting relationships with their clients or with their customers who will the consumers there is need for long term relationships with the relationship marketing that's when you realize that once the is a meeting any development in in any organization they may actually communicate directly with those that buy from them with those that use their products so it is important for you to actually go back to your textbook a ribbed especially from page 405 4:05 to read and understand the evolution of the method in prod how do these differ how does operations oriented management differ from the rest how did this differ you need to be in a position to compare them and also see why sales oriented management cannot wake nowadays it is very very important we move on to the marketing concept marketing concept is basically the ethical court to which marketing tasks is performed and it is the marketing concept that directs all marketing decisions about product distribution methods marketing communication as well as price determination there are four principles of the marketing concept four principles of the marketing concept which we ought to understand and these principles are other ones that we provided on this slide are the principle of profitability we cannot say your marketing product if that will lead to an organization making losses so marketing should lead to profitability of the organization the same also with consumer orientation marketing should focus on consumers needs expectations of consumers needs and once then there is also the principle of social responsibility as we covered we have the five corporate social responsibility in terms of marketing organizations should also show social responsibility remember the market drivers for corporate social responsibility where we said some actually engage in CSR so that we can increase revenue and also reduce costs so social responsibility is also part of the marketing concept then organizational integration to say they are the entire organization should be working together ensuring that they wake they they satisfy the means of the cusp of the consumers so it's not a matter of the marketing function only but the entire organization merits of the marketing concept why are these principles important for any organization obviously if you satisfy profitability that who is also a opt-in organization to be sustainable in the long term consumer orientation also lead to sustainability in the long term it will also use to profitability of an organization the same applies to social responsibilities once an organization is socially responsible it can actually be in a position to increase revenue and to reduce costs and it's important for an organization of all parts of the organization to act together in harmony for the attainment of the organizational goals so this particular figure which is also in your textbook is figured 13.1 shows those those principles of the marketing concept we also ought to define marketing we defined the marketing function at the beginning when I provided in introduction but now defining marketing marketing consists of management tasks and decisions directed it successfully meeting opportunities and threats in a dynamic environment by effectively developing and transferring amid satisfying market offering to consumers in such a way that the objectives of the business the consumer and society will be achieved remember in Chapter four we looked at opportunities and threats and opportunities we said these are favorable conditions in the external environment these are threats these are unfavorable conditions in the external environment in terms of market offering with speaking of a product or service ah this is basically the components of the marketing process you can also look at this figure and your textbook it's figure thirteen point two you can look at it but basically what it is showing is the process the marketing process we will also look at market research market research is basically important oh it's very important since we meet information to make decisions so management need information to make decision to make decisions so we are saying information is needed in order to manage a business effectively and such information means needs to increase understanding of relevant market segments it also ought to be pertinent to planning and controlling M should europe in decision-making sort information just to have information for the me effect that we need information you should be information that yields for the betterment of the organization the organization must benefit from such information marketing research methodology it can be either marketing research can either be done to solve problems or to identify problems so it can be for problem identification or it can actually be for problem solving so research can be done for those two reasons either problem solving or problem identification in terms of marketing market forecasting how we can focused in terms of sales we can also forecast the profit contribution like we are foretelling for seeing what may happen in the future for in the near future so we can actually focus the sales to say no of sales can be increased by this particular percentage profits can be increased by this particular percentage because of these particular factors are there also the marketing research process is also given in your textbook when you find time you ought to read it to understand all the steps of the marketing process so that it will not be a problem when we move even to marketing the second second year levels others where we look at identifying the problem issues to do with the methodology how the research can be done is it qualitative is it quantitative those particular steps there are steps for the marketing research process which we ought to understand given at this stage so your textbook provides a number of those steps which you ought to understand so that you not have a problem when it comes to explaining the process of marketing research how do managers gain that information okay so we'll move on to consumer behavior consumer behavior these are behavior patterns of decision making units which can be individuals or groups directly involved in the pages and use of products so we're looking at texting used and also disposal of products including the decision making process is proceeding and determining this behavior patterns so consumer behavior consists of avant X your textbook says all read X these are acts that can be observed by people what we booking actually observe one doing and then we are also posit processes these are processes which consumers undergo but you will never see them in your textbook planes covet processes his processes which cannot be seen for example a consumer cannot be seen considering his or her financial position before they buy products so that is a coffee process when someone considers whether they afford a product what they do not have hoarded all of it X we can observe someone picking up a product from the shelves looking at the product we can observe them doing that and proceeding to the tool to pay for the product that is those are of it X we can also observe the peasant picking up a product from the shelf looking at the product thrown at a product and put it back onto the shelf so that is also an audit act but there are certain things that people go through certain processes that people consider that you will never be able to observe for example in the way the advantages or disadvantages of a product when they were even their own financial position so those become profit processes which we cannot see our determinants of consumer behavior there are two main groups of factors which determine consumer behavior which are basically individual factors and group factors individual decision-making is straightforward but now when it comes to the group context it becomes more complex for example in terms of our decision-making for a pest for an individual person its straightforward if a person has a negative attitude towards a product they may not buy it if a person does not see any meat by-product they may not buy it but when it comes to a group situation the example in SME a father may not see the need for a product but for him for as long as a child sees the need for that product the father may be compared to bite the father may or the mother may not see the need for a product but for as long as the father sees the meat the mother may be compelled to use that particular product so decision-making in group setting it can actually be complicated as opposed to in an individual setting so they have a number of factors that determine Bosma behavior LDS can be classified into group vectors and into individual factors in your textbook if you look at page 4 23 from Ted 4:23 you actually see that they are number of factors that influence consumer behavior so if we start with individual factors we are told we see issue of motivation having the need to satisfy so if you ever need to satisfy you are most likely to buy a product you are most likely to use it if you do not have a need to satisfy you are most likely not to buy the product we are also most likely not to use the product then there is also the issue of attitude attitude so if you have a positive attitude towards a product you are most likely to buy it but if you have a negative attitude you are most likely not to buy it then they are there is also consumer perceptions your perception toward the product consumers perceptions determine what they pay attention to and what excites their interest and they say consumers usually hear what they want to hear people usually hear what they want to hear so people's perceptions also affect what they buy what they use then there is also learning ability for someone to understand the advantages what the disadvantages the side effects of a certain product if people are able to learn about the product now they will be able to decide whether they will use a product or they will not use a product they are certain people that who may not use the product simply because they do they are not able to understand the benefits of that particular product then there is also personality or personality traits I'm sure I know people can be described by means of settled traits others can be described as playful others as ambitious others as childish so people use products that I in line with their personalities there is also the issue of lifestyle which was Endymion with personality which we can also not ignore so those are factors or individual factors that influence consumer behavior these they influence on whether a personal by a product whether they will use a product or even dispose of stop using a product then in terms of group vectors are we have the family we also have reference groups other opinion leaders and cultural groups culture is very very key is they're very important the asset and people do not eat certain products who do not use certain product simply because of their culture or their religion some sectors of the Christian faith do not eat pork products because of their religion they set em dressing which may not be tolerated in certain cultural groups so that will also affect on whether a person will use certain facial products or not opinion leaders opinion leaders have an important function in the marketing communication process if they were they act as God between as a go-between in what is known as the two-step flow of communication so usually opinion leaders these are people that when get us one to introduce a product they influenced opinion leaders fests once opinion leaders accept a product the rest of the population are most likely to accept it MDA they normally use celebrities once their product has been accepted by celebrities they know everyone who follows that particular person they are most likely to use that product I know aggressive examples of products that you use not because you know their benefits not because of any other reason but simply because a person that you respect a person that you follow a person that you you hold in high esteem uses that particular product so you would also want to use it then reference groups because of the media affiliation people normally want to belong in a certain group and they there are certain products that people end up using simply because they want to be associated with a certain group of people for instance if you are friends there are certain products that you would use so that you would just be acceptable in that particular group so friends people that we associate with sometimes they actually have an influence on the products or services that we end up using or that we will end up not using the family that's a complicated situation in most cases because people play different roles at different times in the same inning in some cases someone may have to leave we need someone may have to decide what should be bought and then the other one we have to pay for it so we cannot ignore the roles of feminists or family members at different times this product was on to show us the decision-making process but I think it is explained it will be explained as we proceed which basically start with awareness of a needle problem then the peasant gathers information evaluate the options that are available then you take the action which in this case would be to buy the product then you do what is known as post-purchase evaluation it is at this post text evaluation where a person will decide on whether they will use the product again or they will stop using the product hi in terms of consumer decision-making the effectors that influence any organization or buying decision these they include the environment the organization itself the buying group the people who are buying and also the individual buyers how the decision making process moves through five phases that we looked at when we looked at figure taken point four which is also in a textbook our first one is basically awareness of an unsatisfied need or problem then phase two is involves gathering information or now best to solve the problem first three FS 3 would be the evaluation of possible submissions which other products can use then first four you decide on the course of action what are you buying and you buy it you buy it use it and after using it you see whether it worked well or you must stop using it okay so now we'll also look at market segmentation now it's important to understand that the total market can be subdivided into the consumer markets will sell directly to where you sell to the final users of the product it can also be categorized into industrial market where you serve those who reuse the product add value to it and then sell a product that they we have developed resale market we're talking of Ursula's retailers in other agencies where the government can also be be the market then steps to follow him segmenting a market I think it's important to also understand what is market segmentation market segmentation is a process in which the total heterogeneous market is divided into smaller more Medina's groups with relatively uniform needs or characteristics so attempts are made to satisfy the needs of different homogeneous groups by developing different market offerings so market segmentation that's a process in which a total at Virginia's market is divided into smaller more Medina's groups with relatively uniform characteristics or uniform means so the steps to follow him segmenting the market when subdividing the market and you need to be able to identify the means then you group the meat into homogeneous subgroups select target markets and then also position the product within market segments so if you are told to position the product after selecting target market the one that you are going to tag it after subdividing the market we must also position a products within a market segment say okay this is the but plus segment that I am going to target and I will be offering product a or product B to this particular segment then the requirements for market force acts living foods market segmentation which means it can also be done in a and meaningful way in a way that doesn't make any sense but we must do it in a meaningful way so the segment must be identifiable it's measurable you must be able to identify a particular segment and also to measure it to determine only that is big enough and also in terms of identifying it you need to be able to actually say which segments that is in terms of targeting it when you want to position your product the segment must be big enough it must be sustainable the segments must also be reachable and must be responsive responsive in terms of price changes those issues of supply and demand and also to add them things that may happen in the market for instance if you put effort in that particular segment it should respond it should be responsive if it is only ones requirements have been met by a segment that this segment can then be selected as a target market which ought to be big enough it ought to be identifiable it ought to be measurable reachable and also responsive criteria for market segmentation segmentation can be Geographic it can also be demographic focus on demographic factors where you subdivide the market in terms of demographic factors it can also be done in terms of psychographic factors such as lifestyle personality class and so forth it can also be BFL where you look at issues all such as pekus occasion where the benefits that people's are seeking the status of the users and also layout status so as we said earlier once segmentation has taken place the marketer must select the segment with the most promising target market abilities and expertise of the business you have to be linked to the characteristics of the consumers in each segment in the competitive situation in each market or in each segment that is chosen must we carefully considered so now if when you have targets a specific segment we are saying you ought to consider the competitive situation in each segment of the market as those may also have an effect then we are moving on to marketing instruments marketing instruments in this for this I think it's very important that you also lived on your page on page 434 of the prescribed textbook there you will learn that marketing management constantly modifies decisions about the for marketing mix instruments and the for marketing mix instruments are basically the product distribution marketing communication and pricing if circumstances change and consumers acceptance of the product gradually increases for example consumers fests you have to be educated to accept an innovation that is an original new product at the same time and exist an existing product that is in a later phase of its life cycle should be actively promoted to prevent consumers from possibly buying a competing product so here we all.we speaking of issues of product place then we also speaking of pricing and the other P is usually the people so some usually speak of the marketing mix as the 14th so look at the product decisions and here we thought you ought to be in a position to know what is the product what does the consumer product consists of so a product is a composition of tangible and intangible needs satisfying utilities that offer to consumers so consumers can take note of them procure them and use them so it's important to also know the components of a consumer product there is a what is known as the core product that can be described in terms of the basic needs met in the technical and physical qualities for example in terms of a stainless - pen that is a stainless steel casing with the fountain pointed tip with the mint to communicate there is also a former product which in addition to the core product may also include include a specific feature specific features such as tire quality brand and packaging there is they meet satisfying product compliance where the mill satisfying utilities such as guarantees repair services and so forth then there is also what is known as the product image which gives the product symbolic value by means of the type for marketing message pricing choice distribution outlet and so forth then the total product comprised of for the above-mentioned components all the other components they add up to the total product classification of consumer products consumer products are intended for immediate use by all sorts or by consumers the final users of the product base need to distinguish between durable and durable product durable products are those that last longer and durable products they do not last long consumer products can be classified according to consumer buying habits how consumers biased so on page 426 of the of your textbook you will also realize that we have what are known is consumer convenience products shopping products and specialty products in terms of convenience product disappered products which should be within is reach of the consumer it should be easier for them to reach them examples are given milk sweets magazines et Cie then shopping products are products for which the consumer wants to compare suitability quality price style before they can buy them special products our products with we with unique characteristics for which consumers who make a special purchasing effort and examples are also given such as expensive cameras larger items such as your cars and so forth there are lots of those examples in the textbook are we are also moving onto brand decisions branding brand decisions what is a brand for the meaning of brand a brand is a Mac that is unique to the product to the product items or ranges produced and marketed by a particular business and that is chosen to distinguish them from similar competing products brand name is just a web it can be a letter to a group of words that I used half a product of a service our brands offer many advantages to both the consumers in the market as so there are main advantages of brands are the consumer into the marketers so I think it is important to look at why branding is important for consumers assuming you want to buy a product without a name but you just know that the product look looks like this I think it will be very difficult to actually buy from a shop we try to describe it and describe it but still those assistants and shops may not understand it so well-known brands offer the following advantages to consumers one are they facilitate the identification of products when the consumers purchasing they also ask you a consumers of a quality standard that they can count on like you know that this particular product with this particular name weights in this particular way and people can also offer you other people can also give in their own recommendations because they'd used the product if they are able to identify it we are also able to identify it they also offer a certain degree of protection to consumers because branded products can be identified with a specific producer who produced it if there is a brief if a product is branded you can be able to trace the produce of that product and if there are any problems you can attach them to the produce they also facilitate decision-making gospel simha's can easily recognize the brands that they usually buy so it will not take a lot of time for you to identify which particular product you want to buy they also serve as a warning against products that will not meet requirements set by the consumers so these are some of the advantages of using brands to consumers however brands also give some advantages to the marketers one of those advantages is that they make price comparison with competing products more difficult to a certain extent that president extent protect the retailer game is self-destructive price wars if the consumer wants only to buy a certain brand for example you will not easily buy a cheaper so the of advantage also to marketers there was a the foundation stone of the marketing communication strategy where the message indicates precisely which product should be bought by the customer our brands also facilitate the expansion of existing product ranges consumers tend to accept new additions on existing ranges but if you read one page one in 40 you find many of disadvantages to the marketers our brand loyalty brand layout or case when consumers show loyalty a certain brand that we only want that particular planet they want that particular brand it is usually a result of good product quality proven Musa fulness and repeated marketing communication that a person who they know say I will only buy this particular brand so consumers move through three phases of layout the first one being brand recognition where consumers recognize the brand and know much extensible they just know they are able to recognize it so they can buy it simply because they're able to recognize it and they know what it stands for then the second phase is brand preference in terms of brand preference consumers prefer the brand to other competing brands so give them the option to choose they would buy the one that they prevail then there's another phase which is known as brand insistence when they insist on a particular brand so consumers insist on the specific brand and refuse to accept any substitute they refuse to accept any substitute are there different types of brands is given a manufacturer brands Gillibrand generic brands individual brands and there's also family brands I have embers also what is known as packaging our packaging basically this is a group of activities concerned with the design manufacturing and filling of a container or wrapper with the product so it can be protected stored transported identified and marketed so packaging also plays a key role in terms of ensuring that the product can be identified and it also makes it easier for marketers to communicate their message about the product to the consumers there are different kinds of packaging that can be identified we have stay short packaging reusable packaging and same in the packaging these are different you will also need to read them or to read about them either clearly explained on page 442 of you prescribed textbook and there is nothing that can actually be a difficult day in terms of family packaging for the products in the range are pegged more or less identically more or less the same then in terms of speciality packaging this gives an image of exclusivity to the product normally used for perfumes jewelery and so forth Thembi is reusable packaging this creates an impression that consumers receives a free container if he or she buys the product so you need to read more about those harde mb is also differentiation our differentiation is important because as a marketer you ought to be in a position to differentiate your product from those of competitors packaging plays a role presently zero then we are many other factors that can be used to differentiate products so business distinguishes its products physically or psychologically from essentially identical competing products so that the product is is different by consumers in a specific target marketing so in a specific target market kinds of differentiation that can be pursued or that can be used by marketers this include differentiation by packaging and also differentiation by the brand the brand is normally printed on packaging so that's why we are saying different agent by means of packaging and brand differentiation can also be done by advertising appeals it can also be done in terms of pricing or in terms of distribution outlets they also need for us to speak a bit about product or some obsolescence that a sample that can become absolute absolute they can lose value so this refers to a situation where a product may intentionally be made technically in a psychologically absolute in order to compute consumers to make repeat purchases for example the in the cellular industry so phone industry where a model or a set em cell phone maybe we can use Simpson that it can actually offer you a certain model of their cell phone then within a period of time they release another one which will compare other consumers to buy the latest one the multi may they live another beta model also L that will compare other people to buy that latest one so they normally do it so that people continue to buy from them in that way they continue to gain repeated Pegasus which would translate to increasing revenues increase in profits and so forth our members also multi product decisions marketers must also decisions about the composition of product of the product offering the product offering usually consists of a product range or a diversified variety of product items and ranges multi product items in total product offering reduced risk of failure and also the risk of financial loss new product decisions I fell face first phase is after development of product ideas what should we offer to the market how should you offer it to the market then those ideas will need to be screened so the stage 2 involves screaming of product ideas according to financial criteria then phase 3 are involved elimination of fir that idea that do not appear to be viable if is not profitable I keep it do away with it then first for its physical product development by the production division during which a prototype is manufactured then phase 5 is the development of a marketing strategy that marketing strategy need to be tested so test marketing in a specific small segment of the market then phase 7 will be the introduction of the port product our to the market we are also supposed to look for purposes of this course and the nature of the products life cycle so a saying best value the product life cycle illustrates the cave of a product sells or profits over a period of time so as a module just introduced a product today he'll give high sales and it doesn't mean that if he advisors today you will always have myself there are lots of things that happen in the market and we cannot ignore those so we have four fill the four phases that can be identified in a product life cycle which we watch to understand it stage so this fair this indicates time this axis and this axis indicates both sales or profits so the profit curve is the one that is the dotted line the sales curve is the one that is involved I saw all the other steps they may have taken place before the product would be offered to the market so we can start looking at it here when the product is introduced to the market you will see that the cells they may be very low but they will be gradually increasing at the introduction phase when cells tapped that's not when the company starts also to enjoy the profits profits they will start a little bit later but you also see that they were also big gradually increasing so when the product is offered to the market it takes time for people to know it to recognize it and to understand its benefits so the LFO of acceptance who determine the level at which they will also be buying the product so once people start to accept the product you know the product they will also start to buy it so when it's introduced to the market what the prophets themselves they may be long but they may actually be increasing then at the growth stage or at the growth phase in this phase people will be we have known the product they will now if understood out the product quick so they may up also starts to buy the product and use the product so in terms of costs in the introduction phase and in the growth phase there is needful a lot of advertising and promotion so that people can buy and you know the product but it sells broth and profit growth cannot grow and to forever it to come a point when saturation of belief and these who need to start either growing in at the same level or they may actually need to start going down especially when they have reached everyone in the markets and also when the product starts to make sure so in the maturity stage resellers who also start to drop but the level of dropping it will be they will not be dropping rapidly known but the drop can actually be noticed then after match the maturity stage there is what is known as the declining stage where sales and profits who start what to decline and there is need actually at this stage added at maturity stage to rejuvenate the product so that this calcium starts to go up again but for purposes of this course we will look at the introductory phase growth phase maturity phase and the decline phase so marketing strategy during the product life cycle hopefully you remember where this particular life cycle is removed for each phase of the product life cycle is specific implications for the product and the marketing of the product our integrated marketing strategy needs to be adapted to adjust the changing conditions at each phase it is also important to remember that not all products if I didn't take our life cycles so each problem in a product that the same life cycles they may differ I we also need to look at pricing decisions what is price I don't think I need to be defining that but basically this is the exchange value of a product or a service it it is closely linked to the benefit in value of the product price can also be defined as the value of a product or service which is determined by its benefit to the consumer and the sacrifice required in terms of money and effort to obtain the product so pricing price decisions the price determination process with looking at four steps where you determine the cost price then you determine the market price you determine the target price and finally you determine the final price so our final prices are determined okay Nomad M so it's known that the cost prices if you want to make profits the final price should be higher than the cost price so that you make the profit adaptations of the final product these are different these are different we have what are known as skimming pricing strategies market penetration pricing market price level leader prices odd prices bed prices so the pricing our strategies are very different and we need to be in a position to explain how this differ how did all this differ how do this particular present certainly differ from the other it is very very important for us to know so I'm sure we all know what a skimming pricing if you move to page 451 of the prescribe textbook you will see how this differ so in terms of skimming they say if the product is an innovation and therefore a unique product the final price may have a much higher profit margin some consumers are prepared to pay a high price because such innovations usually have a prestige value so in fact if the price is said too low consumers may possibly doubt the new products usefulness so in terms of steaming pricing when the product is introduced into the market its introduced to the market meet a higher price so that people assume or we have that perception that it is of high quality it is a new innovation then they will buy it they will accept it so that will be skimming pricing so as competition increases they may actually start to reduce the price but people already have accepted the product because of the pricing strategy that we have been used then we also have what are known what is known as market penetration pricing where when you want to offer a product to the market you introduce it at a lower price so that people will be able to afford it once the product has been used and people have seen that Italy has many benefits it is of good quality you can then start to increase the price so that those people we have the learning abilities those people have learnt the benefits of that product they can continue to buy it even if the prices increase then we also have market price level this strategy is followed if they kill competition in numerous products numerous similar products so you just adopt the market price what others are selling it so you ought to ensure that the cola cost is lower than the market price then they are also what unknown is leave the prices leader pricing concerns special offers this so-called special specials are are used by retailers to lure consumers through their shops Pecha suspicious a low priced specials as well as many other products with a higher profit margin so you doing that I won't buy from this shop because the prices are low but they will be low for certain products not for all products so when you buy those products on special they know that you also buy other products that are not on special in the organization of benefit you were thinking that she has benefited but it is the organization that we have benefited then we also have what are known is fourth prices which most people know about they indicate what prices indicates that the final prices of a product gave port numbers so even numbers for example sixty I product to say its place tonight 800 hundred sixty hundred two hundred runs they are half we did it products are rather marked it let's say a product for six hundreds and they'll say it's costing five hundred in ninety nine land if someone who actually think that it is cheaper than six hundred ten or it cannot even be a five hundred Amanda mainland ninety nine cents so someone who buys simply put they think that it is cheaper than six hundred times are we have seen people buying products for name lands 99 avoiding products for Timberland if the Apes every to do not get that one st. change so those are old pricing strategies then we also have our bait prices bait prices they are displayed is an epic on so they say page places are and if we go and therefore they are avoided by honest retailers my base price item is a particularly low price in is widely advertised when coming to buy it purchases are encouraged to buy a far more expensive item the retailer has not really intend to sell the bait price item most of the time it is not even in stock or only one item is available if they know plans so they just used it to attract people so that you come and buy it in the moment you come you may not find the product that is cheaper and you'll be encouraged to buy a more expensive product because of your ego you will not just want to go empty-handed you'll end up just buying a product to save you a step that's so honest retailers they avoid it but some retailers they use it I will move on to distribution decisions a description of distribution basically our distribution decisions involve activities that have to be carried out to direct the flow of products and services from the product from the business to the consumer in such a way as to satisfy the primal objective of the business and to meet the needs of the consumer so in as much as what meet the middle of the consumer we must tell the difference remain profitable and our image must remain and untainted it entails decision-making about the type of distribution channel to be utilized in the decree of market coverage in quiet so there are various distribution channels are we have the direct one way from manufacturer we just go straight to reach the final use of the product in some cases we will need to from a manufacturer we allow retailers to buy them they sell to consumers for its manufacturer the research wholesalers in waterless sell directly to consumers in some cases we may actually this is a manufacturer suit was Ella's who them sell to tell us in retailers who sell to the consumers in other cases who may have as sub s manufacturers without resident for sale illusio to another or saleable so to another to a retailer in the retailer will sell to the consumer so those are the ioan above distribution channels that can be followed by organizations in terms of channel leadership when we speak of channel leadership typically this is a business that controls or dominates the channel I they are known as channel captains I am in most cases channel captains are Aida manufacturers or they can also be retailers market coverage we look at the NAP of intermediaries in the channel how so they may be intensive market coverage where they are in am a lot of intermediaries or exclusive market coverage with few intermediaries or we can actually have selective market coverage where we choose whether to skip other intermediaries and include others there is also physical distribution of the products or services and these include activities that take place to ensure the product is available to the final consumer they have three main components of physical distribution I one being selecting of warehouses the second one being the selection of the most suitable mode of transport and selection of optimal infants rewarding levels wherever we have to keep stopped we must also think of how much stop we must keep I'm using the word stock in place of inventory because those terms can be used interchangeably the most effective performance of physical distribution activities ensure that for insurers time as a label deliverer of others adequate update inventory and also carefully an end link of infantry to eliminate damages when we look at purchasing and supply management the issue of infant management we will revisit it and you also discuss advantages and disadvantages of Orden stock in in addition we'll also discuss the optimum optimum level of stop email organization then we must also look at marketing communication decisions and market in communication decisions these can be regarded if the process of informing persuading and reminding the consumer marketing communication comprises six elements that can be used in a specific combination to communicate with consumers all these elements are the ones that you provided on the slide is advertising personal selling direct marketing sales promotion publicity and public relations I will look at each of those so in terms of advertising this is controlled in paid for non personal marketing communication related to a need satisfying product in directed by a marketer at a specific target audience our advice can be run on televisions big screens movie theaters they can also be run on radios in magazines in newspapers and in many other channels which may be available there is also what is known as personal selling person with personal selling our verbal presentation of a product service or idea to one or more potential buyers is done in order to conclude a transaction sales representatives can also be used to inform buyers about product and to persuade buyers through face-to-face communication to buy the products then we also have what is known as direct marketing Direct Marketing uses advertising media to communicate information of a product or service to consumers pro to customers who can then respond by Pettis in the product or service via email telephone or even the Internet focus of direct marketing is to obtain an immediate response sales promotion for marketing communication methods this sauce promotion involves marketing communication methods that are not normally classified as advertising or personal selling or direct marketing or publicity but that complement the other elements in trying to influence consumer behavior they are often short term in nature such is to introduce a new product to the market so a product can be sold okay here's some free products may be given so that people may know about them people can actually the test them use them for free so that they may know about those products then in terms of publicity publicity this is non personal stimulation of the demand for a product or service of a business by making its actual current news value available to the mass media to obtain a favorable and free media is view of the business and its products then there is also public relations which entails decision making to your organization's ability to listen to to appreciate and to respond appropriately to those persons or groups who's much wallack beneficial relationships beneficial relationships the organization needs to foster as it strives to achieve its mission and decision these are elements of public relations obviously thought to be a planned activity sustained activity deliberate activity and there is need for communication process it deals with publix both internal and external the media that can be used it can be the internet especially since I can use sight and sound the printed media or even the spoken web so move on to customer service customer service customer service can be described as the value added to products and services in the eyes of the consumer the value added to product and services in the eyes of the consumer employees form an integral part of the total customer experience which can directly affect the success of the business customer types we have external customers external customers are those people who purchase the products in third basic needs of external customers are basically the service the price which is supposed to be lower while it supposed to be higher action and appreciation are then they are also internal customers are those people in the company with whom marketers wake on a regular basis benefits of good internal service obviously leads to big better teamwork and cooperation it's a greater motivator positive impact on employee and company growth and it proposal provides a sense of belonging satisfaction and fulfillment to employees the importance of excellent customer service these we can discuss in details but they are straightforward that excellent customer service is important for any organization and enough of potential rewards of excellent customer services available so delivering good service is fundamental to the success of the organization and service is the essential element of the total product offering and customer experience remember in operations management when we looked at the clients means for customers needs there is also a greater level of service a greater level of service the place of customer service in the marketing strategy customer service must be embedded in all four aspects of the marketing strategy and the main focus of the main focus point of marketing action is to establish and maintain the relationships even relationship marketing customer knowledge or customer relationship management every customized scene is is seen as a segment of one you must focus on each and every customer to provide exceptional service a company must do the following one make a great first impression they usually say first impressions last project a positive attitude towards your customers even towards the organization itself also communicate effectively know what you want to talk about communicated effectively build and maintain relationships very very important customer service is also important in terms of customer service it is also important to manage the expectations of customers because for customers to be satisfied one must EF exceeded their expectations so expectations are personal or a personal vision of the outcome of an experience which may be positive or negative so if you do not exceed people's expectations or clients expectations of you their satisfaction of the Zarrillo but if you exceeded it will be high or positive two basic levels of expectations okay expect Asian can be primary they can also be secondary in an ascending customer cetera expectations and perceptions are crucial to the survival of the business you must know what is it that customers expect from us as an organization that way we may be able to actually satisfy them women will be able to satisfy them managing custom expectations are the primer dimensions to customer perception issues of reliability if we are reliable and we improve that year label our customers will be satisfied responsiveness if we are able to respond to their needs our assurance impacted show empathy and also to be tangible we can actually be able to manage their expectations so basically and so I understood the elements of the marketing process market driven organization consumer is consumer oriented not production oriented that also marketing is a key function of any organization to go seek and produce your products stay with them in the organization you would not make profits but if you are able to produce your products and take them to the market we can then start to speak of profits in our product decisions could also consist of pricing distribution communication and promotion so I'm expecting a lot of questions on our blackboard discussions please ask questions so that we can continue to interact thank you so much we will cover other chapters also and they will be posted on blackboard so that we can continue interacting and you may also continue to interact with your learning material thank you so much thank you so much