Introduction to Marketing (MC4050)

Lecture Week 1Module outline and Brief introduction

to Marketing

Staff details and contacts• Rajan Thapa• MBA from Kaplan Financial, London affiliated to

Liverpool John Moores University

• ACCA from Kaplan Financial

• Email: rajan.thapa@islingtoncollege.edu.np

Contents

• Module aims and objectives• Module outline• Reading list• Teaching & learning methods• Module assessment• Brief introduction to marketing

Aims and Objectives

• To introduce marketing definitions, theories, concepts and tools in so far as they affect business organisations

• To relate the marketing function to the business environment and the overall corporate objectives

Aims and Objectives• To understand how customers behave, particularly

when they are involved in decisions to buy products and services

• To recognise the importance of information to an organisation and the role the information plays in effective marketing decision making

• To examine how business and consumer markets can be broken down into smaller, more manageable groups of similar customers and explore the effects of the marketing mix of pursuing specific segments

Module Outline

1. Module introduction

2. What is Marketing?

3. The Marketing Mix

4. The Marketing Environment

5. The Marketing Planning Process

6. Consultancy on Report – Assignment

7. Buyer Behaviour

8. Marketing Segmentation

9. Marketing Information Systems

10. Revision session

11. Personal Revision

12. Examination

Reading and Case StudiesWeek 2 - What is Marketing?B&P - Chapter 1, K – Chapter 1 (Case Study 1.1 – Innocence, p40, B&P)Week 3 - The Marketing MixB&P – Chapter 1, K – p33-35(Case Study 1.2 – Tween Queens, p42, B&P)Week 4 - The Marketing EnvironmentB&P – Chapter 2, K – Chapter 3(Case Study 2.1 – Does the Muffin herald a new

Ice Age, p91, B&P)

Reading and Case StudiesWeek 5 -The Marketing Planning ProcessB&P – Chapter 21, K – Chapter 2(Case Studies – 20.1 and 21.2 Prudential A and B, p 985 and p 1046, B&P)Week 7 - Buyer BehaviourB&P – Chapters 3/4, K – Chapters 5 & 7(Case Study – 3.1 Euroteens, p 138 B&P)

Reading and Case StudiesWeek 8 - Marketing SegmentationB&P – Chapter 5, K – Ch 10(Case Study – 5.2 Pink Pound, p 223, B&P)

Week 9 - Marketing Information SystemsB&P – Chapter 6, K – Ch 9(Case Study – 6.1 SMA, p277, B&P)

Reading listRequired:

• Principles of Marketing, 4th Edition-Media EnhancedBrassington & PettitFT Pearson 2007

Recommended:• Principles of Marketing

4th European EditionKotler, Armstrong, Saunders & WongFT Prentice Hall 2010

Teaching & Learning Methods• The theme of student focused learning that runs

throughout the marketing pathway is established within this module

– class activities - 45 hours– directed learning - 25 hours– self managed - 80 hours

• TOTAL OF NEARLY 9 HOURS PER WEEK!

Teaching & Learning Methods• The module consists of a combination of

lectures, class discussions, directed learning, videos and independent study

• There will be a rich mix of theory and practical case study examples

Assessment• Group report and presentation -

50%• Examination

- 50%TOTAL

100%

Reports will be submitted in Week 8 – 03/04/15, Friday by 3 PMExamination will be in Week 12, 13 or 14Consultancy for report in Weeks 6Revision for exam in Weeks 10 and 11

Course work - Group• A group report that analyses the marketing

environment of a given organisation• It should be approximately 3000 words• It should be referenced and include a detailed

bibliography• Organisations will be allocated to students in

Week 3

Course work• Groups will be either 5 or 6 students• You must select your group carefully, bearing in

mind work styles, aspirations and availability to work on project

• All groups must be approved by the module tutor BEFORE you commence

• No changes are allowed once group is confirmed by module tutor

Course work– An environmental audit or scan examines each and all of the forces

within both the macro and micro environments– The audit or scan enables you to complete a SWOT analysis on your

organisation

Macro:• the larger societal forces that affect the whole microenvironment• demographic, economic, natural, technological, political and cultural forces

Micro:• the forces close to the organisation that affect its ability to serve its

customers• the company, market channel firms, customer markets, competitors and

publics

Coursework : Allocation of marks• The assessment criteria for the report will

include the following:• Review of Macro environment 10• Review of Micro environment 10• SWOT analysis 10• Conclusion

6• Quality of research 10• Bibliography

4– Total

50

Plagiarism• Be very careful to avoid plagiarism, please look at the

regulations at the website: www.londonmet.ac.uk/student-handbook/regulations• Do not rely on receiving information from your chosen

company, you must do your own research and use your eyes and ears• Do not fill your essay with extracts from Mintel, Keynote

or other reports• We want your analysis, in your words

Assessment : Unseen exam• An examination that will require you to answer

a selection of questions in short form sentences relating to all of the topics covered in the module outline

• It will require you to answer 5 questions in 90 minutes

Course work - Criteria 1• In order to achieve a pass grade, you need to:– demonstrate use of secondary research– utilise the marketing analysis framework– actively contribute to the presentation and report– submit a management style report– achieve 75% registered attendance

Course work - Criteria 2• In order to achieve better grades, you need to:– gather secondary data from a wide range of sources,

applying creativity and resolve– demonstrate an ability to analyse and draw accurate

conclusions from the data– show evidence of well developed presentation skills– submit a ‘professional’ style report

INTRODUCTION TO MARKETING

• WHAT IS MARKETING

• MARKETING PROCESS

What comes into mind when you hear the word marketing

Products and

services Sale promotio

n

Advertisement

Marketing research

Selling products

to customer

Target market

What is marketing?

Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships on ways that benefit the organization and its stakeholders.

Marketing functions

Marketing activities can be organized into seven functions. Each function occurs every time a product or service is developed and sold.

1. Product and service management is designing, developing, maintaining, improving and acquiring products and services that meet consumer needs.

2. Distribution involves determining the best ways for customers to locate, obtain and use the products and services of an organization including shipping, handing and storing of products.

3. Selling is communicating directly with potential customers to determine and satisfy their needs. It can be face-to-face, via telephone, via internet, etc.

4. Marketing-information management is obtaining, managing and using market information to improve business decision-making and the performance of marketing activities. E.g. marketing research and the development of database.

Marketing functions

5. Financial analysis is budgeting for marketing activities, obtaining the necessary funds needed for operations and providing financial assistance to customers so they can purchase products and services.

6. Pricing is setting and communicating the value of products and services. Customers must be able to easily identify the price of items that interest them or they will move on to another choice.

7. Promotion is communicating information about products and services to potential customers. Advertising and other promotional methods are used to encourage consumers to buy.

Marketing functions

What is marketing strategy?

Marketing strategy is a company’s plan that identifies how it will use marketing to achieve its goals.

Marketing is aimed at satisfying customer needs better than competitors do.

Marketing strategy

Developing marketing strategy is a two-step process.

(1) Selection and analysis of a target market

(2) Creation and maintenance of an appropriate marketing mix, a combination of product, price, distribution and promotion developed to satisfy a particular target market

Identify a target market

Target market is a specific group of consumers who have similar wants and needs.

Focusing on a target market makes it easier to develop products and services that specific groups of customers want.

Identify a target market

In selecting a target market, marketing managers . . .

(1) Examine potential market for their possible effects on the firm’s sales, costs and profits.

(2) Determine whether the firm has the resources to produce a marketing mix that meets the needs of a particular target market.

(3) Analyze the strengths and numbers of competitors already marketing to people in this target market

Identify a target market

Target market example – Rolls-Royce

Rolls-Royce targets its automobiles toward a small, very exclusive market: wealthy people who wants the ultimate in prestige in an automobile.

Identify a target market

When selecting a target market, marketing managers generally take either one of these two approaches.

1. Undifferentiated approach: a company designs a single marketing mix and directs it at the entire market for a particular product.

This approach assumes that customers have similar needs and that the organization there can satisfy most customers with a single marketing mix.

Products that can be marketed successfully with this approach include essential food items, such as sugar and salt and certain kinds of farm produce.

Identify a target market

2. Market segmentation approach: a company designs multiple marketing mixes and to serve different market segments.

Market segment is a group of individuals or organizations within the market that shares one or more common characteristics. The process of dividing a market into segments is called market segmentation.

For example, Thai airways launch “Nok air”, a low-cost airline for budgeted travellers. Marketing mix used for Nok air is totally different from the one applied for Thai airways customers.

Identify a target market

2. Market segmentation approach:

Examples of market segmentation approach• An airlines company opens new low-cost airlines under different

brand to serve budgeted travelers.• An automobile company launches different types of car for

different groups of customers e.g. sport, luxury, family, economy, etc.

• A cosmetic company launches cosmetic product line for MEN e.g. Men deodorant, Men facial cream, etc.

Identify a target market

Market segmentation can be done through different criteria

Demographic Psychographic Geographic Behaviouristic

Age Personality Region Volume usage

Gender Lifestyles Urban, rural Brand loyalty

Race Market density Price sensitivity

Ethnicity Climate Purchase behaviour

Income Terrain

Education City size

Occupation Country size

Family size State size

Religion

Social class

Create a marketing mix

A marketing mix is the blending of four marketing elements – product, place, price and promotion; also known as 4Ps.

A successful marketing mix satisfies the wants and needs of the target market.

Create a marketing mix

Create a marketing mix

The product ingredient of the marketing mix includes decisions about the product’s design, brand name, packaging, warranties and the like.

The pricing ingredient is concerned with both base prices and discounts of various kinds. Pricing decisions are intended to achieve particular goals such as to maximize profit or even to make room for new models.

The distribution ingredient involves not only transportation and storage but also the selection of intermediaries. Overall process of how the product is delivered to the customers.

The promotion ingredient focuses on providing information to target markets. The major forms of promotion are advertising, personal selling and sales promotion.

Create a marketing mix - Example

Product

Place

Price

Promotion

Services are activities that are consumed at the same time they are produced e.g. banking services, hairdressing, hospitality, etc.

Service is a special category of product

Characteristics of Services

Service are intangible.• have no physical form• marketing mixes need to be

adjusted to apply for each specific services

Service are inseparable.• they are consumed at the

same time they are produced.• Production and personnel must

be ready at the time customers want it.

Service are perishable.• the availability of a service

must match the demand for that service at a specific time.• E.g. if all seats at the concert

are filled, no more people will be able to hear the singings.

Service are heterogeneous.• there will be differences in the

type and quality of service provided.• As it produced at the time it

consumed; control over quality is more difficult than a product.

Pricing factors• Supply and demand• Uniqueness• Season• Complexity• Convenience

MARKETING PROCESS

• Understand the market place and customer needs and wants• Design a customer driven marketing strategy• Construct an integrated marketing program that delivers

superior value• Build profitable relationships and create customer delight• Capture value from customer to create profits and customer

equity