1. Marketing Management
MNM202-Y
MND203-S

2. The nature of marketing
Marketing is the process of planning and executing the conception, pricing, marketing communication and distribution of ideas, products, and services to create exchanges that satisfy individual and organisational goals.
Marketing is about satisfying needs

3. People give up something to receive something they would rather have
The concept of exchange
People give up something to receive something they would rather have
Conditions that must be met for exchange to take place:
At least two parties
Each party must have something of value to the other
Parties must be able to communicate and deliver
Parties must be free to accept or reject the offer
Each party must want to deal with the other

4. The marketing “gaps”
Gaps that exist between production and consumption that are bridged by marketing:
Space gap
Time gap
Information gap
Ownership gap
Value

5. Important concepts
Needs and wants and demands
Products
Value
Satisfaction
Market
Intermediaries

6. Orientation towards markets
Production orientation
What can we do best?
Sales orientation
Sell - no matter what
Marketing orientation
Satisfy the consumer profitably by working together
Societal orientation
Do what we do without harming society

7. 2 1 4 3 The marketing concept - NB Profitability Consumer satisfaction
Satisfy the needs of the consumer and society as a whole, profitably, while working together as an organisation 2
Profitability 1
Consumer satisfaction
Organisational integration
Social responsibility 4 3

8. Relationship marketing
A broader view of the market (long term)
Expansion of the marketing offering (6p’s)
A bigger market

9. The marketing process (Fig 1.3)

10. The marketing environment

11. Marketing research
Process of designing, gathering, analysing and reporting information that may be used to solve a specific marketing issue
Questions to answer:
Who is the market?
How do we segment the market?
What are the wants and needs of the market?
How do we measure the market?
Who are our competitors?
Which model of the product will best suit the market?
What is the best price?
How will we communicate with the customers?

12. The marketing information system
A system for generating and managing a flow of information for marketing decision making
Components:
Internal reporting sub-system
Marketing intelligence sub-system
Statistical sub-system
Marketing research sub-system

13. The marketing research process

14. Data sources

15. Sampling methods
Probability sampling:
Simple random sampling
Stratified random sampling
Cluster sampling
Non-probability sampling
Convenience sampling
Judgment sampling

16. Market potential vs Sales potential
Market potential: The maximum possible sales of a specific product in a specific market over a specific period of time for all sellers in the industry.
Sales potential: The upper limit of sales that a firm could possibly reach for a specific product in a specific market over a specific time period.

17. Market potential and sales forecasting
Levels of market measurement:
Consumer level
Product level
Geographic level
Time level
Relevant markets for measurement:
Total market
Available market
Target market
Penetrated market

18. Market potential and sales forecasting
Methods for estimating market and sales potential:
Breakdown methods
Build up methods
Market forecast: An estimate of the expected sales of a specific product in a specific market over a specific time for all sellers in the industry
Sales forecast: An estimate of the number of units a firm expects to sell of a specific product in a specific market over a specific time

19. Forecasting methods
Sales force surveys
Expert surveys
Time series analysis

20. Consumer behaviour
Types of purchase decisions:
Complex purchase decisions
Dissonance reducing behaviour
Habitual purchasing behaviour
Variety-seeking purchase behaviour
Routine decision making
Impulsive decision making

21. Consumer behaviour

22. Individual Factors Perception Things to remember: Definition
Sensory stimuli
Perceptual defence mechanisms
Motivation
Things to remember:
Definition
Levels of motives
Maslow’s hierarchy of needs
Things to remember:
Definition
Characteristics of attitudes (pg 144)
Attitude
Things to remember:
Definition
Motivation, attention, repetition
Learning ability
Personality
Things to remember:
Definition
Examples (pg 145)
Lifestyle
Things to remember:
Definition
AIO

23. Group Factors Opinion leaders Culture Things to remember: Definition
Refer to diffusion process
Culture
Things to remember:
Definition
Sub-cultures
Reference groups
Things to remember:
Definition
Types of groups
Ways in which groups affect consumers
Family
Things to remember:
Definition
Phases of family life-cycle
Role differentiation in families

24. Market targeting: The process of deciding which segment to pursue
Market segmentation, targeting and positioning
Market segmentation: The process of dividing a heterogeneous market in to homogeneous segments
Market targeting: The process of deciding which segment to pursue
Product positioning: The way customers perceive products relative to the competition

25. Segmentation
Why segment?
Why not segment?
Prerequisites for market segmentation also known as criteria for a segment to be effective:
Measurable
Large enough
Accessible
Actionable
Differentiable

26. Bases for segmentation
Geographic
Demographic
Psychographic
Behavioural

27. Market targeting
Concentrated targeting (one segment)
Differentiated targeting (a few segments)
Undifferentiated targeting (all segments)

28. Product positioning

29. Positioning methods
Attribute positioning
Benefit positioning
Use/application positioning
User positioning
Competitor positioning
Product category positioning
Quality/price positioning

30. Chapter Six – Integrate it all
Product
Promotion
Price
Place