UNIVERSITY : Course name: PRINCIPLES OF MARKETING Course code: Student name/Group members: Course Instructor: RESEARCHED, TESTED AND VERIFIED LECTURES CONCERNING MARKETING & ITS STRATEGIES (NOTES FOR REVISION during class assignments, CATS and exams)  W

UNIVERSITY : Course name: PRINCIPLES OF MARKETING Course code: Student name/Group members: Course Instructor: RESEARCHED, TESTED AND VERIFIED LECTURES CONCERNING MARKETING & ITS STRATEGIES (NOTES FOR REVISION during class assignments, CATS and exams)  Well elaborated notes  Examined questions after every topic/lecture  Simple and student or scholars friendly content TABLE OF CONTENTS Lecture One Overview of Marketing..................................................... 1.1 Introduction.............................................................................. 1.2 Objectives.............................................................................. 1.3 Definitions of Marketing............................................................ 1.4 Marketing and Selling............................................................... 1.5 Core Concepts of Marketing........................................................ 1.6 Marketing Management Philosophies............................................. 1.6.1 The Production Concept....................................................... 1.6.2 The Product Concept............................................................ 1.6.3 The Selling Concept............................................................... 1.6.4 The Marketing Concept........................................................ 1.6.5 The Societal Marketing Concept............................................... 1.6.6 Importance of Marketing to the Society 1.7 Summary.............................................................................. 1.8 Reference................................................................................ Lecture Two: Marketing Environment................................................. 2.1 Introduction............................................................................. 2.2 Objectives.............................................................................. 2.3 Definition of Marketing Environment................................................ 2.3.1 The company's Micro-Environment 2.3.2 Macro Environment Forces 2.4 Responding to the Marketing Environment......................................... 2.5 Summary.................................................................................... 2.6 References.............................................................................. Lecture Three: Marketing Research, Marketing Information Systems and Marketing Intelligence................................................... 3.1 Introduction............................................................................. 3.2 Objectives............................................................................... 3.3 Importance of Marketing Research................................................... 3.4 Definitions of Key Concepts......................................................... 3.4.1 Marketing Research............................................................ 3.4.2 Marketing Information System (MIS)...................................... 3.4.3 Marketing Intelligence......................................................... 3.4.4 Market Research.............................................................. 3.5 Types of Marketing Research........................................................ 3.6 Marketing Research Process.......................................................... 3.7 Summary................................................................................ 3.8 References.............................................................................. Lecture Four: Consumer Behaviour............................................. 4.1 Introduction............................................................................. 4.2 Objectives............................................................................... 4.3 Definition of Consumer Behaviour.................................................. 4.4 Importance of Analyzing Consumer Behaviour of Marketers................... 4.5 The Model of Consumer Behaviour................................................. 4.6 Factors Influencing Consumer Behaviour.......................................... 4.6.1 Factors Influencing Consumer Behaviour.................................. 4.6.2 Social Factors................................................................... 4.6.3 Personal Factors................................................................ 4.6.4 Psychological Factors......................................................... 4.7 The Buyer Decision Process......................................................... 4.7.1 Problem Recognition......................................................... 4.7.2 Information Search........................................................... 4.7.3 Evaluation of Alternatives................................................... 4.7.4 Purchase Decision............................................................ 4.7.5 Post Purchase Behaviour..................................................... 4.8 Types of Buying Decision Behaviour.............................................. 4.8.1 Complex Buying Behaviour................................................ 4.8.2 Dissonance - Reducing Buying Behaviour............................... 4.8.3 Habitat Buying Behaviour................................................... 4.8.4 Variety-seeking Buying Behaviour....................................... 4.9 Summary................................................................................ 4.10References.............................................................................. Lecture Five: Market Segmentation, Targeting and Positioning for Competitive Advantage................................................... 5.1 Introduction............................................................................. 5.2 Objectives.............................................................................. 5.3 Definitions of Key Words or Concepts............................................. 5.4 Levels of Market Segmentation..................................................... 5.5 Bases for Segmenting Consumer Markets.......................................... 5.6 Requirements for Effective Segmentation.......................................... 5.7 Market Targeting...................................................................... 5.7.1 Selecting Market Segments................................................... 5.7.2 Choosing a Market Coverage Strategy...................................... 5.7.3 Choosing a Market Coverage Strategy....................................... 5.8 Positioning for Competitive Advantage............................................ 5.8.1 Choosing a Positioning Strategy............................................. 5.8.2 Identifying Possible Competitive Advantage.............................. 5.8.3 Choosing the Right Competitive Advantage............................... 5.8.4 Selecting an Overall Positioning Strategy................................. 5.8.5 Communicating and Delivering the Chosen Position.................... 5.9 Summary................................................................................ 5.10Reference................................................................................ Lecture Six Product Decisions.............................................................. 6.1 Introduction............................................................................. 6.2 Objectives............................................................................... 6.3 Definition of a Product............................................................... 6.4 Levels of a Product..................................................................... 6.5 Unique Characteristics of Services.................................................. 6.6 Product Classifications................................................................ 6.6.1 Consumer Goods Classification............................................. 6.5.2 Industrial Goods Classification............................................. 6.6.3 Consumer Goods Classification............................................. 6.6.4 Industrial Goods Classification............................................. 6.7 Individual Products Decisions........................................................ 6.7.1 Consumer Goods Classification............................................. 6.7.2 Branding........................................................................ 6.7.3 Brand Equity................................................................... 6.7.4 Major Branding Decisions................................................... 6.7.5 Brand Strategy................................................................. 6.7.6 Packaging...................................................................... 6.7.7 Labeling........................................................................ 6.7.8 Product Support Services.................................................... 6.7.9 Product Support Services 6.8 Product Mix or Assortment............................................................ 6.8.1 Dimensions of Product Mix.................................................... 6.8.3 Product Line Lengthening Decision.......................................... 6.9 Product Life Cycle..................................................................... 6.9.1 Introducing Stage............................................................... 6.9.2 Growth Stage.................................................................... 6.9.3 Maturity Stage.................................................................. 6.9.4 Decline Stage.................................................................... 6.10Benefits and Weakness of PLC...................................................... 6.11New Products and New Product Development Process........................... 6.11.1 What is a New Product? 6.11.2 New Product Development Process........................................ 6.12The Consumer Adoption Process.................................................... 6.13Adopter Categories.................................................................... 6.14Summary.............................................................................. 6.15References.............................................................................. Lecture Seven: Distribution Decisions................................................. 7.1 Introduction............................................................................. 7.2 Objectives............................................................................... 7.3 Meaning of Channel of Distribution................................................. 7.4 Types of Channel of Distribution.................................................... 7.5 Functions Performed by Market Intermediaries or Middlemen.................. 7.6 Intensity of Distribution Decision................................................... 7.7 Summary................................................................................. 7.8 References.............................................................................. Lecture Eight: Promotion Decisions..................................................... 8.1 Introduction............................................................................. 8.2 Objectives............................................................................... 8.3 Meaning of Promotion................................................................. 8.4 Promotion Methods.................................................................... 8.4.1 Personal Selling............................................................... 8.4.2 Advertising..................................................................... 8.4.3 Sales Promotion............................................................... 8.4.4 Public Relation................................................................ 8.4.5 Publicity........................................................................ 8.5 Communication Process and Promotion............................................ 8.6 Purposes of Promotion................................................................ 8.7 Determining and Managing the Promotion Mix................................... 8.7.1 Setting Objectives for Communication...................................... 8.7.2 Factors Influencing the Choice of the Promotion Mix..................... 8.7.3 Setting the Total Promotion Budget.......................................... 8.7.4 Evaluating and Controlling Promotion Program........................... 8.8 Advertising, Personal Selling, Sales Promotion Public Relations and Publicity................................................................................. 8.8.1 Advertising...................................................................... 8.8.2 Personal Selling................................................................. 8.8.3 Sales Promotion................................................................. 8.8.3.1 Consumer-Oriented Sales Promotion Techniques........................ 8.8.4 Publicity......................................................................... 8.9 Summary................................................................................. 8.10References.............................................................................. Lecture Nine: Pricing Products/Decisions.............................................. Introduction............................................................................ Objectives............................................................................... Meaning of Pricing.................................................................... Importance of Pricing................................................................. 9.4.1 In the Economic............................................................... 9.4.2 To the Individual Firm........................................................ 9.4.3 To the Individual Consumer................................................. 9.5 Pricing Objectives..................................................................... 9.5.1 Status Quo Objectives........................................................ 9.5.2 Profit Objectives............................................................... 9.5.3 Sales Objectives............................................................... 9.6 Factors to Consider in Price Determination........................................ 9.6.1 Marketing Objectives......................................................... 9.6.2 Marketing Mix Variables.................................................... 9.6.3 Cost.............................................................................. 9.6.4 The Market and The Demand................................................ 9.6.5 Consumer Perceptions of Price and Value................................. 9.6.6 Competitors..................................................................... 9.6.7 Ethical Considerations....................................................... 9.6.8 Government.................................................................... 9.7 Product Mix Pricing Strategies...................................................... 9.7.1 Product Line Pricing........................................................... 9.7.2 Optional - Product Pricing.................................................... 9.7.3 Captive - Product Pricing...................................................... 9.7.4 By-Product Pricing............................................................. 9.7.5 Product Bundle Changes...................................................... 9.8 Initiating Price Changes............................................................... 9.8.1 Initiating Price Cuts............................................................ 9.8.2 Initiating Price Increases...................................................... 9.9 Responding to Price Changes......................................................... 9.10Psychological Pricing.................................................................. 9.10.1 Reference Price................................................................. 9.10.2 Odd-Even Pricing.............................................................. 9.11Promotional Pricing.................................................................... 9.11.1 Weakness of Promotional Pricing.......................................... 9.12Price Discrimination/Segmented Pricing........................................... 9.13Geographical Pricing.................................................................. 9.13.1 Uniform........................................................................ 9.13.2 Zone Pricing................................................................... 9.13.3 Basing-Point Pricing........................................................... 9.13.4 Freight-Absorption Pricing................................................... 9.13.5 International Pricing.......................................................... 9.14Summary................................................................................. 9.15References.............................................................................. LECTURE 1: OVERVIEW OF MARKETING 1.1 Introduction 1.2 Definitions of Marketing 1.3 Marketing and Selling 1.4 Core Concepts of Marketing 1.5 Marketing Management Philosophies 1.5.1 The Production Concept 1.5.2 The Product Concept 1.5.3 The Selling Concept 1.5.4 The Marketing Concept 1.5.5 The Societal Marketing Concept 1.1 Introduction During this first lecture of principles of marketing you will be learning, how different authors have defined the term marketing, the difference between marketing and selling, core concepts of marketing and philosophies of marketing management. 1.2 Objectives After completing this lecture, you should be able to; a) Define the term marketing b) Distinguish between marketing and selling c) Describe core concepts of marketing) Explain marketing management philosophies that can guide marketing activities. e) Identify challenges facing marketing today. f) Evaluate marketing in terms of its importance to the society. It is important for you to note at this initial stage of the course that different writers and practitioners have defined marketing in different ways, for the purpose of this lecture we will focus on four definitions. Definition 1 Marketing refers to the performance of business activities that direct the flow of goods and services from the producer or seller to the consumer or user Definition 2 Marketing involves the satisfaction of human needs and wants through exchange process. Definition 3 Marketing comprises a system of business activities designed to plan, price, promote and distribute want - satisfying products and services to present and potential consumer segment. Definition 4 Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. 1.3 Marketing and selling Many people think of marketing only as selling and advertising. And no wonder every day we are exposed to television commercials, newspapers ads and sales calls. It is surprising to learn that selling and advertising are two of many marketing functions and often not the most important ones. Today marketing must be understood in the new sense of satisfying customer needs. If the marketers does a good job of understanding consumer needs, develop products that provides superior value and prices, distribute and promotes them effectively these products will sell very easily. Therefore, selling and advertising are only two of the many marketing activities, as we will learn latter in more details in preceding lectures. 1.4 Core concepts of marketing These definitions bring us to the core concepts of marketing, which you need to understand at this level because they will be used throughout the course. They are; Needs, wants, demands, products /services, customer, consumer, customer value, customer satisfaction, total quality management, exchange, transactions, relationship marketing and markets. Let us now discuss each concept briefly. Needs Human need is the most basic concept underlying marketing. It is a state of felt deprivation or a real lack of something that people consider necessary and desirable. Human needs include: Physical needs for food, clothing, warmth and safety. Social needs for belonging and affection, esteem needs for recognition, status and achievement, individual needs for knowledge and self-expression. Human needs are not invented by marketers; they are basic part of the human make-up or nature, when a need is not satisfied a person will try to look for an object that will satisfy it. Want A want is the form taken by human need as it is shaped by culture and individual personality, wants are also described in terms of objects that will satisfy human needs. For example an individual to satisfy need for food may want to eat fish and chips. Another individual may want to eat beef stew and rice etc. Demand Human want that is backed by buying power/purchasing power Product A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, place, organizations and ideas. Service Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Customer The buyer of a product, often someone with whom a seller deals with on a regular basis. Consumer An individual who buy products for his / her own consumption or household use or the user of the product. Customer Value It is what the product or service offer in comparison with the price or the difference between the values the customer gains from owing and using a product and the costs of obtaining the product. Mathematically the value equation is as follows: Customer Satisfaction The extent to which a product perceived performance matches a buyer's expectation. If the products performance falls short of expectation s, the buyer is dissatisfied. If the performance matches or exceeds expectations, the buyer is satisfied or delighted. Customer satisfaction is very important in marketing due to the following reasons;  A satisfied customer buys again or will make repeat purchase  A satisfied customer talks favorably about the company  A satisfied customer pays less attention to competing brands and advertising  A satisfied customer buys other products that the company later adds to its line Total Quality Management Programs designed to constantly improve the quality of products, services and marketing processes. In the narrowest sense, quality can be defined as "freedom from defects". Most customer-centered companies go beyond this narrow definition of quality. Instead they define quality in terms of customer satisfaction. Exchange Marketing occurs when people decide to satisfy needs and wants through exchange. Exchange is the act of obtaining a desired object from someone by offering something in return. Exchange is the core concept of marketing, for exchange to take place the following conditions must be satisfied: 1. Two parties must participate 2. Each must have something to offer of value to the other 3. Each party must want to deal with the other party 4. Each party must be free to accept pr reject the others offer 5. Each party must be able to communicate and deliver the offer Transaction A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement and a place of agreement