Chapter 4

Session 4

Marketing in Business enterprises

By Beza M.

1
THE MARKETING
PERSPECTIVE
Definition of Market:
Market is a group of potential customers having needs to
satisfy, ability to buy & willingness to pay in order to
satisfy these needs.
OR
A social & managerial process by which individuals &
groups obtain what they need & want through creating &
exchanging products & value with others.
2
The main concepts of marketing
Marketing activities are integrated
Organizations are market oriented
Marketing focuses on selected markets
Customer satisfaction is the core of marketing
Marketing is greater than selling
 Marketing starts early before production & continues
after selling…T/F…why?
3
THE MARKETING MIX
 A marketing organization has to concentrate on four
important aspects known as the 4P’s of marketing.
 The marketing manager has to combine these 4 P’s
(PRODUCT, PRICE, PROMOTION and PLACE.) in
such a way that the combination provides satisfaction to
the customer and profit to the manufacturer.
 When these elements (4 P’s) are combined together they
are called as “The Marketing Mix”.
4
1.The product mix: Includes: 3. Place mix (Physical
Product planning and development distribution mix):
Branding Packaging Labeling Channels of distribution
Transportation
2.The price mix: Includes Warehousing
 Price polices
Skimming pricing (Pricing above the 4. Promotion mix: Includes
market) Advertising
Penetration pricing (Pricing below the Personal selling
market) Sales promotion
Premium pricing (Pricing with the
Publicity
market)
 Discounts
Quantity discount Seasonal discount
Trade discount Cash discount
 Credits
5
I. THE PRODUCT MIX
 Product: Is any commodity that satisfies the needs & wants of customer.
 It is a bundle of tangible & intangible attributes, which satisfy the needs,

& wants of customers.
In today market, a product can be
o A person (soccer players), Organization (privatized
firms),
o Places (leased land), Objects (items),
o Idea (business plans or project proposal),
o Services (medication or barber), or mixes of these elements.
 So, a product can be defined as anything, which comprises of benefits in
forms of physical, service, and symbolic attributes to maximize buyers’
want satisfaction.
6
1.Product planning and development
Product planning includes three major types of decisions:

Development and introduction of new products
Modifications of existing products in keeping with the
changing tastes and preferences of the target customers
and
Elimination of unprofitable or obsolete products
7
2. Branding
• Brand name: the part of a brand, which consists of word, letters
and/or numbers, which can be vocalized. … identification to the
product Eg. OMO, Coke
 Brand mark: the part of a brand that can be recognized but is not
utterable/complete. It can appear in the form of symbol, design,
distinctive coloring or lettering.
 Trademark: a brand or part of a brand that has been given legal
protection so that the owner has exclusive rights to its use. After
companies identify their trademark, they entail a term “™” or “®”
Trade Name: Trade name is the name of the business

organization. A trade name may also be used as a brand name.
In such a case it performs a dual function. It gives
8
identification to the product as well as the manufacturer
Branding…
 A modern example of a brand is Coca Cola which belongs to the
Coca-Cola Company. The Coca-Cola logo is an example of a
widely-recognized trademark and global brand.
Examples of global brands include Facebook, Apple, Pepsi,
McDonald's, Mastercard, Gap, Sony, Nike, Adidas and Kangoo
Jumps.
BRAND refers to names, logos and slogans.
for example COKE, NIKE, CALVIN KLEIN
it is what makes a product or service different from its competitors
 TRADEMARK is something you can do to brands. If you trademark
a brand, then you own the "intellectual property" of that brand and
you are the only person allowed to use that Brand name, slogan etc.
If others want to use that brand, they must ask your permission or pay some money.
The logo for this website, Wikipedia®, which is a registered
trademark of Wikimedia Foundation, Inc.
9
Importance of a brand
 The brand makes it easier for the seller to process orders and
track down problems.
 The seller’s brand name and trademark provide legal protection
of unique product features.
 Branding gives the seller the opportunity to attract a loyal
profitable set of customers and helps to increase the control and
share of the market.
 Branding helps the seller to segment markets and expand the
product mix.
 Good brand help to build the corporate image because it
advertises the quality and size of the company.
 Brands make it easy for customers to identify products or
services.
10
Requirements of a good brand
 Be easy to pronounce, recognize and remember
 Be distinctive.
 Suggest something about the product’s benefits or
characteristics
 Suggest about the product qualities such as action or use.
 Be large enough to be applicable to new products that may be
added to the product line.
 Have a possibility of registration and legal protection.
11
3.Packaging
 Packaging is a marketing process concerned with the
design and production of the container or wrapper for a
product.
 The container or wrapper or covering is called the
package.
Importance of packaging
1. Packaging serves several safety and utilitarian purposes

2. Packaging may implement a company’s marketing
program.
3. Well-packaged products may increase profit possibilities
in that it stimulates customers to pay more just to get the
12 special package.
4.Labeling
1. Brand label: simply the brand alone applied to the product or

to the package.
2. Grade label: a label, which identifies the quality with, a
letter, number or word.
3. Descriptive label: it gives objective information about the
use, construction, care, performance or other features of the
product. Sometimes it is called informative label.
Eg. medicines
13
II. THE PRICE MIX
WHAT IS PRICE?
Is the amount of money consumers have to pay to obtain
the product.
Price has operated as the major determinant of user choice
traditionally.
Although non-price factors have become more important
in recent decades price still remains one of the most
important element determining market share and
profitability.
Different companies set the price haphazardly/arbitrarily
14 as based on cost.
METHODS OF PRICING
1.Cost plus pricing/ Mark Up pricing/…cost+profit=price

2. Skimming pricing
The following conditions should be satisfied
1. A sufficient number of buyers have a high current demand.
2. The high initial prices do not attract more competition to
the market.
3. The high price communicates the image of a superior
product.
3.Penetration pricing: below market price
4. Premium pricing: with market
1. Which one do you think is better for new start-up business?
15
The major objectives of pricing are:
Achievement of target return
Maximization of profit
Increase of sales volume
Maintenance or increase of market share
Stabilization of prices &
Meeting competition
16
17
Direct channel
1.Door-to-door selling
2.Manufacturers’ sales branches
3.Direct mail
Indirect channel
1. Merchant Middlemen:-
• Whole seller:- Eg. Petram PLC and East Africa Trading are
wholesalers of consumer products.
• Retailer:- Eg. Hadiya supermarket, and several Kiosks are found
closer to sell the items to residential houses.
2. Agent Middlemen
 Commission agent, Brokers, Selling agents,
 Eg. -Sony Glorious, is an agent to Sony Electronics products,
-Equatorial business is agent to Samsung.
18
Channel levels
Zero-level One-level Two-level Three-level

Manufacture Manufacture Manufacture Manufacture
r r r r
Agent
Wholesale
Wholesale
r
r
Retailer Retailer Retailer
Consumer Consumer Consumer Consumer

19
IV. PROMOTION MIX
Is sometimes known as marketing communication.
Means activities that communicate the merits of the

product & persuade target customers to buy it.
Promotional objectives:
Informing the product
Increasing sales
Stabilizing sales / profit
Positioning the product
20
The promotional mix consists of four major tools
 Advertising: such as informative Ad, Persuasive Ad and Reminder Ad
 Personal selling – Oral presentation in conversation with one / more

consumers for the purpose of making sale
 Sales promotion – Includes: gifts, games, sampling, coupons, and

window displays.
 Publicity – Any information about the organization, its personnel or its

products that appears in any medium on a non - paid basis. E.g. Piece
of papers given at streets which contains info about the company
21
MARKET SEGMENTATION
Market segment is a group of individuals or organizations within a
market that share one or more common characteristics.
 The process of dividing a market in to segments is called market
segmentation. Qn. Why segmentation?
Bases for market segmentation

1.Geographic segmentation:- Region Urban, Suburban, Rural, Market
density, Climate, Terrain (land, topography), City size, Country size, State
size
2.Demographic segmentation:- Age, Gender, Race, Ethnicity, Income,

Education, Occupation, Family size, Family life cycle, Religion, Social class
3.Psycho graphic segmentation:- Personality, Attributes, Motives, Lifestyles
4.Behavioral segmentation:- Volume usage, End use, Benefit, Expectations,

22 Brand loyalty, Price sensitivity
MARKET RESEARCH
1.Marketing research is the systematic recording and

analysis of data about problems relating to marketing.
American Marketing Association
2.Marketing research is the application of scientific method

to the solution of marketing problems.
Luck, Wales, Taylor
It is important for any business to conduct it before
established ,ongoing business and futurity….
23

Chapter 4

Uploaded by

Copyright:

Available Formats

Chapter 4

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 4

Uploaded by

Copyright:

Available Formats

Session 4

Marketing in Business enterprises

 It is a bundle of tangible & intangible attributes, which satisfy the needs,

Product planning includes three major types of decisions:

Trade Name: Trade name is the name of the business

1. Packaging serves several safety and utilitarian purposes

1. Brand label: simply the brand alone applied to the product or

1.Cost plus pricing/ Mark Up pricing/…cost+profit=price

Zero-level One-level Two-level Three-level

Consumer Consumer Consumer Consumer

Means activities that communicate the merits of the

 Advertising: such as informative Ad, Persuasive Ad and Reminder Ad

 Personal selling – Oral presentation in conversation with one / more

 Sales promotion – Includes: gifts, games, sampling, coupons, and

 Publicity – Any information about the organization, its personnel or its

Bases for market segmentation

2.Demographic segmentation:- Age, Gender, Race, Ethnicity, Income,

3.Psycho graphic segmentation:- Personality, Attributes, Motives, Lifestyles

4.Behavioral segmentation:- Volume usage, End use, Benefit, Expectations,

1.Marketing research is the systematic recording and

American Marketing Association

2.Marketing research is the application of scientific method

You might also like