Note on Principles of Marketing I.ppt

As described in the above, the bank has designed appropriate micro business banking segment with proper CVP that can increase customer experience through provision of alternative products and customized pricing. Consequently, it has already designed micro business saving and credit product to be availed through the bank’s credit process and mobile money solution to deliver customer tailored product and services for underserved and un-served segment of the society. Besides, it is working to design more customer tailored products and services like start-up financing, women financing, rural farmer financing for financially excluded groups. Serving these segments of the society can create/provide multiple opportunities of the bank like improve customer base, increase wallet share, enhance financial inclusion and avail equal financial service for the society as a large.
Where banks traditionally did not reach populations, the rapid growth of mobile networks and subscriptions has offered a distribution technology for mobile financial services. As therefore, the bank will use digital platform like mobile money and others as an outreach channel to sell its micro saving and credit products. It obvious fact that micro businesses are underserved and un-served segment of an economy by traditional outreach cannels of the banks even though they play a significant role in employment creation and poverty reduction. Availing financial services for micro businesses by using mobile financial services would bring remarkable results for the development of the organizations, financial institutions and the nations. Other traditional outreach channels can play a great role to offer diversified products and services for target customers in which digital platforms are inaccessible and impracticable to do so. However, communicating the product, brand or service to the customers and creating financial and digital awareness for them via various channels is an essential subject to realize the intended objectives. Thus, marketing campaign is highly valuable in business to retain the existed customer and seek the attention of new customers. In stiff business competition environment, it is a challenge to cut through the plethora of messages found in digital and traditional media spaces. By regularly communicating with its target audience, a business can improve its visibility. This communication is primarily achieved through marketing campaigns. It is defined as a strategic sequence of steps and activities that promote company’s product or service with a specific goal in mind. Marketing campaign promotes products through different types of media, such as television, radio, print, and online/digital platforms. As it well known, marketing campaigns can be designed with different goals in mind, including building a brand image, introducing a new product, increasing sales of a product already on the market, or even reducing the impact of negative news.

1. UNIVERSITY OF ABUJA
DEPARTMENT OF BUSINESS ADMINISTRATION
FIRST SEMESTER LECTURES, 2014/2015 SESSION
Course Code: Bus 213
Course Title: Principles of Marketing I
Course Lecturer: Dr. Bello Ayuba,
FCAI, MAOM,MAIB,MNIM,MNIMN
8
th
February, 2015

2. COURSEOUTLINE
Introduction
Thecourseprinciplesofmarketingprovidesa
frameworkforanalyzingrecurrentproblemsin
marketing.Itfocusesonmajordecisions
marketingmanagersfaceintheireffortsto
harmonizetheorganizations’objectives,
capabilitiesandresourceswithmarketplace
needsandopportunities.Itwasdesignedtogive
studentsandmarketingpractitionersaclear
understandingofmarketingprinciples,strategies
andpractices.Topicstobecoveredinclude:

3. Course Outline………………………………….
1.FrameworkofMarketing:
Definition of Marketing
Evolution of Marketing
Basic Concepts of Marketing and
Marketing Functions

4. Course Outline………………………………….
2.MarketingMix:
Product;Meaning,LevelsandClassifications.
Price;Meaning,PricingObjectiveand
Constraints.
Place:meaning,influencingfactorsandtypes
ofdistributionintermediaries.
Promotion;Meaning,Objectives,Needsand
PromotionalTools(Advertizing,Personal
Selling,SalesPromotionandPublicity)
includingFactorsInfluencingPromotionalMix.

5. Course Outline………………………………….
3. Marketing Management
Philosophies:
Meaning
Marketing Management Concepts &
Tools
Managerial Philosophies
Differences Between Selling and
Marketing Concepts

6. Course Outline………………………………….
4. Product Life-Cycle Strategies:
Meaning of Product Life-Cycle
Stages of the Product Life-Cycle (i.e
Strategies at Introductory Stage,
Growth Stage, Maturity and Decline
Stages).

7. Course Outline………………………………….
5. Marketing Environment:
Meaning of Marketing Environment,
Macro-Environmental Variables
Micro-Environmental Variables
Analysis of the Variables

8. Course Outline………………………………….
6. Marketing and Society:
Relationships Between Marketing and
Society
Contributions of Marketing to the Society
Societal Problems of Marketing
Marketing Responses to Societal Criticisms
Consumerism
Marketing Ethics (Ethical and Un-ethical
Marketing Practices).
Social Responsibility

9. Course Outline………………………………….
7. Consumer Behaviour:
Definition of Consumer Behaviour
Factors Influencing Consumer Buying
Behaviours
Consumer Buying Decision Process
Types of Consumer Buying
Behaviours
The Buying Roles

10. Course Outline………………………………….
8. Organizational Buying Behaviour:
Meaning of Organizational Buying
Characteristics of Organizational Buyer
Organizational Buying Procedures

11. Course Outline………………………………….
9. Recommended Texts:
Kotler, Philip (2006),Principle of
Marketing, Prentice Hall, New York.
David, Jobber (1998),Marketing,
McGraw Hill, London.
Ayuba, Bello (2008),Marketing:
Principles and Management,Shukrah
Printers, Kaduna.

12. DEFINITION OF MARKETING
Kotler (1991)defined Marketing as a social
and managerial process by which individuals
and groups obtain what they need and want
through creating and exchanging products
and value with others.
Peter Drucker(1973) defined Marketing as
the whole business seen from the point of
view of its final result, customer satisfaction.
Ryamsees marketing as a bridge between
production and consumption.

13. Definition of marketing Continues……..
TheAmericanMarketingAssociation(1935)
assertedthat,Marketingconsistsofthoseactivities
involvedintheflowofgoodsandservicesfrom
thepointofproductiontothepointof
consumption.
TheamendedAMA(2004)definitionthusread:
“Marketingisanorganizationalfunctionandaset
ofprocessesforcreating,communicating,and
deliveringvaluetocustomersandformanaging
customerrelationshipsinwaysthatbenefitthe
organizationanditsstakeholders”.

14. THE BASIC CONCEPTS OF
MARKETING
Needs, Wants and Intentions Demand
Products or Services
Utility, Value and Satisfaction
Exchange Transactions and
Relationships (Market, Marketers, and
Marketing)

15. MARKETING FUNCTIONS
For a marketing system to be effective, there are
three general types of functions which it must
provide.
Exchange functions which comprise buying,
selling and pricing.
Physical functions which comprises assembling,
transport and handling, storage, processing and
packaging, grading and standardization.
Facilitating Functions which comprises financing
and risk bearing, market Information, demand
and supply creation, market research.

16. Marketing functions……………………..
Identification of Customers Needs or Markets
Designing the Products or Services to Satisfy the
Needs
Communicating Information about the Products or
Services
Making the Products or Services Available
Applying an Appropriate Pricing Strategy
Market Information
Storage Function
Financing
Making the Necessary Service Follow-up

17. MARKETING MIX
It is the term used to describe the combination of
the four inputs that constitute the core of a
company’s marketing system i.e.
Product
Price
Placeand
Promotion
Some authors have extended its usefulness by
proposing a seven P’s, such as People, Process
and Physical Evidence (Kotler, 1999).

18. Product
Stanton(1964)definedproductasasetof
tangibleandintangibleattributesincluding
packaging,colourtest,price,manufacturer’s
prestige,retailer’sprestige,aswellas
manufacturers’andretailerserviceswhichthe
buyermayacceptasofferingwants
satisfaction.
Aproductisanythingofferedforattention,
acquisition,useorconsumptionthatmight
satisfyawantorneed.Productscanbephysical
objects,service,persons,organizationsand
ideas.

19. Price
AccordingtoMarsh(1988:87),“pricingis
averyimportantelementinthemarketing
mix,asitistheonlyelementofthe
marketingmixwhichproducesrevenue.
Alltheotherpartsofthemarketingmix
arecost-driven”.Priceisthetermbeing
usedtodescribemoneyvalueofanitem;
itisthetermexpressedinanymonetary
mediumwherebytheexchangeoccurs.

20. Place
Place is an element of the marketing
mix which deals with how
manufacturers distribute products to
the consumers. The movement of
goods and services from the
manufacturer to the consumer is
known as distribution.

21. Promotion
Promotionisanyeffortwhosefunctionisto
informcustomersabouttheexistenceofa
productorserviceswithaviewtoinduce
themeithertostartorcontinuebuyingthe
productorservices.
Promotionisoneofthemajorformsof
marketingcommunications,whichinclude
advertising,personalselling,salespromotion,
andpublicrelations(Kotler,1991).Theseare
thereforereferredtoasthepromotionalmix.

22. Three Levels of Product
CoreProduct:Benefits.Forinstancethepurchase
ofdrillis“buyingholes:ahotelguestisbuying
“restandsleep”.Thus,Marketersmustsee
themselvesasbenefitproviders.
ActualorTangibleProduct:Thisinclude
productfeaturessuchasquality,styling,branding,
packaging,labelingetc.
Augmentedproduct:Thisconsistsof
installations,delivery,credit,warranty,andafter
salesservices.Consumerstendtoseeproductas
complexbundlesofbenefitsthatsatisfiestheir
needs.

23. Products Classification
Classification Based On Durability and Tangibility
NonDurableGoods:Thesearetangiblegoods
thatarenormallyconsumedinoneortwousese.g.
Soap,beerandsoon.
DurableGoods:Thesearetangiblegoodsthat
survivedmanyusese.g.refrigerators,clothing,
radio,television,chairse.t.c.
Services:theseareintangible,inseparable,
variableandperishableasaresult;theynormally
requiredmorequalitycontrol,suppliercredibility
andadaptability.

24. Products Classification Continues…..
A.ConsumerGoods
Armstrongdefinedconsumergoodsasproducts
boughtbythefinalconsumerforpersonal
consumption.Itisanygoodsthatisboughtfor
householdusee.g.Cars,food,etc.Consumer
goodscanfurtherbesubdividedintothe
following:
1.ConvenienceGoods:consumershaveadequate
knowledge,theyarefrequentlypurchasedwitha
minimumofeffort,inexpensiveandreadily
availablewhencustomersneedthem.

25. Products Classification Continues…..
Conveniencegoodsarefurthersub-dividedinto:
StapleGoods:Thesearegoodsthatconsumers
purchaseonaregularbasise.g.Toothpaste,Soap,
milk,sugar,oiletc.
ImpulseGoods:Thesearegoodsthatconsumers
havenointentionofbuyingbutmaydecidetobuy
duetotheimpulseorhowthegoodsaredisplayed.
E.g.Magazines,Newspapers,Ice-Creametc.
EmergencyGoods:Thesetypeofgoodsare
purchasedwhenaneedisurgentandthecostis
usuallyhighbecauseoftheurgencye.g.Drugs
Umbrelladuringrainfall.

26. Products Classification Continues…..
2.ShoppingGoods:LessfrequentlyPurchased,
consumersmakescomparisononquality,Price
andstyleinbuying.E.g.Furniture,Clothing
etc.Thisissub-dividedinto:
HomogeneousGoods:Goodsthataresimilar
inqualitybutdifferentenoughinpriceto
justifyshoppingcomparisons.
HeterogeneousGoods:-Goodsthatare
differentwithfeaturesareoftenmoreimportant
totheconsumerthantheprice.

27. Products Classification Continues…..
3.SpecialtyGoods:Theseareconsumergoodswith
uniquecharacteristicand/orbrandidentification
forwhichasignificantgroupofbuyersis
habituallywillingtomakeaspecialpurchasing
effort.
4.UnsoughtGoods:Theseareconsumerproducts
thattheconsumersdonotknowaboutorknows
aboutbutdoesnotnormallythinkofbuying.Most
majorunsoughtgoodsarenotknownuntilthe
consumersbecomeawareofthemthrough
advertising.E.gLifeinsurance,encyclopediasetc.

28. Products Classification Continues…..
B.IndustrialProducts
Thesearethoseproductsthatarepurchasedfor
furtherprocessingorforuseinconductinga
business.E.g.Acarboughtforbusiness
purpose.Thesegroupsofindustrialproducts
are:
MaterialsandParts
CapitalItems
SuppliersandBusinessServices

29. Products Classification Continues…..
MaterialsandParts:
RawMaterials:(wheat,cotton,livestock,fruits,
Vegetables,fish,crudeoil,ironoreetc).
FarmProducts:(Juice:Chivita,fivealive,Corn
beefetc)whichrequiresassembly,grading,
storage,transportationandsellingservice.Their
perishabilityandseasonalnaturegivesriseto
specialmarketingpractices.
NaturalProducts:arehighlylimitedinsupply.
Theyareusuallyveryexpensiveandhavelowunit
valueandrequiresubstantialtransportation.

30. Products Classification Continues…..
ManufacturedMaterialsandParts
Componentsmaterials:whichincludesIron,
Cement,Wiresetctheyareusually
fabricatedfurther.Examplecementin
buildinghouse
Componentspartsincludesmallmotors,seat
belts,bulbsetc.Theseenterthefinished
productcompletelywithnofurtherchanges
informs,asseatbeltsareputinCars.

31. Products Classification Continues…..
CapitalItemsCapitalitemsarelonglastinggoods,
theyareoftwogroups:
Installations:whichconsistofBuilding(factories
andoffices)andfixedequipments(generators,
elevators,largeComputersystem,drillpresses)
AccessoryEquipment:Theyarelessexpensiveand
haveshorterlife’sthaninstallationThisconsistsof:
(i)Portablefactoryequipmentsandtools(e.g.hand
tools,lifttrucks)
(ii)Officeequipments(e.g.Calculator,Cluck,
personalComputersdesks)

32. Products Classification Continues…..
3. Supplies and Business Services:-
This is short lasting goods and services that are
equivalent to convenience goods in the industrial
field; they are usually purchased with a minimum
effort on a straight re-buy basis, they are normally
marketed through intermediaries because of their
low unit value and the great number and
geographical dispersion of customers. This
include; (i) Operating Supplies: Lubricants, coal,
writing paper, panels, stationary etc. (ii)
Maintenance and repair items (paint nail, brooms).

33. Pricing Objectives
The Pricing objectives of any Marketing
Company are:
Price Stability
Returns on Investment
Profit Motive
Maintain or Improve Market Share
Prevent Competition

34. Pricing Problems
There are several problems that are
commonly encountered which conspire to
prevent the objectives of pricing being
achieved, these include:
A given price, while acceptable in one
sector of the market, may be too high or
low elsewhere
The price may be viewed by sections of the
market as exploitative and the company
consequently seen as untrustworthy

35. Pricing Problems Continues……
Price differentials across the product line may
be illogical
The price may destabilize a previously stable
market
The price may lead to a degree of confusion
in the market
The price may damage or inhibit brand
loyalty
The strategy may well lead to an increase in
buyers’ price sensitivity

36. Place
Placeinvolvesthosemanagementtaskconcerned
withmakingtheproductavailableandaccessibleto
buyersandpotentialbuyers(Distribution).
WhatIsDistribution?
Distributionisdefinedasthemovementofproducts
fromthepointofproductiontothepointof
consumption.Itcansimplybedefinedasthe
transferofgoodsfromproducerstoconsumers.
Distributioninvolvesphysicalactivitiessuchasthe
useofmiddlemen,transportingandstoringof
goodsinordertoprovidetargetcustomerswith
time,placeandpossessionutilities.

37. Place Continues……….
TherearetwoaspectsofDistribution:
PhysicalDistribution
InstitutionalDistribution
PhysicalDistributiondealswiththephysical
transportationormovementsofgoodsand
servicesfromthepointoftheproductionline
tothepointofuse.
InstitutionalDistributiondealswiththe
enterprisesandindividualssuchas
wholesalers,retailers,Agents,supermarkets
andmarketstores.

38. Major Activities of Physical Distribution
Themajor decisions issues involved in physical
distribution activities include:
Inventory Control-(Control of Inventories,
Production Schedule).
Materials Handling-(Loading and Unloading
Trucks, Conveyors and Containers, Packaging,
Labeling).
Order Processing-(Processing Customers orders)
Transportation-(Moving Goods to Places)
Storage Function-(Ownership of Warehousing
Facilities)

39. Channels of Distribution
TheChannelsofDistributionarethemeans
employedbymanufacturersandsellerstoget
theirproductstomarketandintothehandsof
users.(Manufacturer------Wholesaler-----Retailer---Agent-----Consumer).
Itisthecombinationofinstitutionswhichdirect
thecompany’sproducttoconsumers.Channels
aremanagementtoolsusedtomovegoodsfrom
productiontoconsumption;bywhichthetitleto
goodsistransferredfromsellertobuyer.In
essencetherefore,Channelsaretoolshiredtodo
thejobofgettinggoodsfromfactoryorplaceof
productionintothehandsoftheultimateuser.

40. Channels of Distribution Continues…
There is a variety of intermediaries that may get
involved before a product gets to the final user:
Retailers-(operate outlets trade directly)
Wholesalers (usually specialize in particular
products.
Distributors and Dealers:they often sell onto the
end user. They provides after-sales service.
Franchises:Franchisesare independent businesses
that operate a branded product (usually a service) in
exchange for a license fee and a share of sales.
Agents:Operate on Commission

41. Functions of Distribution Channel
MainFunction:Providealinkbetween
productionandconsumption.Themanykey
functionsare:
Information:marketingintelligencegathering
Promotion:communicatinginformationabout
theproductorservices.
Contact:Findingandcommunicatingwith
prospectivebuyers
Matching:Adjustingtheoffertofitabuyer’s
needs,includinggrading,


42. Functions of Distribution Channel Continues…
Negotiation: Reaching agreement on price,
assembling and packaging.
Physical Distribution: Transporting and Storage
Financing:Acquiring and using funds to cover the
cost of the distribution
Risk Taking: Assuming some commercial risks by
operating the channel (e.g. holding stock)
All of the above functions need to be undertaken
and of importance is who performs them and how
many levels there need to be in the distribution
channel in order to make its cost effective?

43. PROMOTION
Promotionisoneofthebasicelementsof
theMarketingmix.Whenproductis
launchednewlyintothemarket,
aggressivepromotionalefforthastobe
embarkedupontocreatetheawareness
inpotentialcustomers.Inthislecture,we
shallattempttoevaluatetheobjectivesof
promotion,needsforpromotion,
promotionalmixelementsandthefactors
influencingpromotion.

44. Objectives of Promotion
The objectives of promotion are as
follows:
Behaviour Modification
Informing
Persuasion
Reminder promotion

45. Needs for Promotion
1.Thisdistancebetweenproducersandconsumers
2.Thenumberofpotentialconsumersgrowsdaily
3.TheMobilityofconsumer’sfromplacetoplace.
4.Thecommunicationnetworkbetweenthe
manufacturer,themarketingintermediaryand
thepotentialcustomers.
5.Theintensecompetitionamongfirms.
6.Competitionbetweenindividualfirmswithinan
industry.

46. Needs for Promotion
7.Abundantwantsatisfaction.Customersare
becomingmoreselectiveintheirbuying
choices.
8.Duringperiodofshortages,advertisingcan
stressproductconservationandefficientuses
oftheproduct.
9.Promotionalactivitiescanbeusedtoaid
consumersin“makingdo”andincidentally,
helpbuildthecompanyimage.
10.Promotionisneededtomaintainthehigh
materialstandardofliving.

47. Promotional Mix
Promotionalmixiscommunicationalin
nature,theyaretoolsnormallyclassified
underpromotion,andtheyarecalled
promotools.Thisincludesadvertising,
personalselling,salespromotion,publicity,
packaging,salesaids(catalogues,
literatures,films),tradingstamps,
premiums,freesamples,couponsetc.The
fourpromotionaltoolsaretobeexplained
asfollows:

48. Promotional Mix
Advertisingthisisanypaidformofnon-personal
presentationandpromotionofideas,goodsor
servicesbyanidentifiedsponsor.
Personalsellingthisinvolvesoralpresentation
inaconversationwithoneormoreprospective
purchasersforthepurposeofmakingsales.
Salespromotionthisisashort-termincentiveto
encouragepurchaseorsalesofaproductor
service.
Publicitythisisanotherformofmassselling.Itis
anyunpaidformofnon-personalpresentationof
ideas,goodsorservices.

49. Advertising
P.Kotlerdefinedadvertisingasanypaidform
ofnon-personalpresentationandpromotionof
ideas,goodsandservicesthroughmassmedia
suchasnewspapers,magazines,televisionor
radiobyanidentifiedsponsor.Before
advertisementiscarriedoutthefollowing
decisionsmustbemade:
1.Iftheorganizationisgoingtomakeuseof
anadvertisingagencyorperformingthe
entirefunctioninternallyandthecriteriaby
whichsuchanagencywouldbeselected.

50. Advertising
1.Howmuchtheorganizationisgoingtospend
onadvertisingthatwillreflectapercentageof
anticipatedsales?
2.Theorganizationshouldalsodecideonwhen
theadvertisingbudgetshouldbespent.Ifit
shouldbespentevenlyintheyearorwhen
salesarenormallylowest.
3.Themediaatwhichtheorganizationwilluseto
advertiseinreachingitstargetedcustomers,as
wellasdecisionsonhowtoselectthevarious
mediaorganizationsfortheadvertplacement.

51. Reasons for Advertising
1.Tocreateawareness,customerinterestordesire.
2.Toboostsales.
3.Tobuildbrandloyalty(ortomaintainitatthe
existinglevel).
4.Tolaunchanewproduct.
5.Tochangecustomerattitudes–perhapstryingto
moveaproductmore“upmarket”ortodispel
somewidelyheldperceptionsabouttheproduct.
6.Tosupporttheactivitiesofthedistribution
channel(e.g.supportinga“pull”strategy).

52. Reasons for Advertising
7.Tobuildthecompanyorbrandimage.
8.Toremindandreassurecustomers
9.Tooffsetcompetitoradvertising–businessmay
defendmarketsharebyrespondingto
competitors’campaignswiththeirown
advertising.
10.Toboostpublicstanding:companiescanboost
theirpublicstandingwithadvertisementsthat
linkthemwithgenerallyapprovedcampaigns.
11.Tosupportthesalesforce.

53. Factors Influencing Promotional Mix.
Fourfactorsthatshouldbetakeninto
accountindecidingonthepromotional
mixare:
FundsAvailable
Thenatureofthemarket
Thenatureoftheproductand
Thestagesoftheproductlifecycle.

54. MARKETING MANAGEMENT
Introduction
Marketingmanagementprovidesthe
frameworkforanalyzingrecurrentproblemsin
marketing.Itfocusesonthemajordecisions
marketingmanagersandtopmanagementfaces
intheireffortstoharmonizetheorganizations
objectives,capabilitiesandresourcewithmarket
placeneedsandopportunities.Itis
comprehensiveasitgivesclearguideto
managersonhowtocarryoutstrategic,tactical
andadministrativemarketing.

55. Marketing Management Continues……..
Marketingmanagementiscrucialtothesurvival
ofanymarketingorganizationintoday’s
competitivebusinessworld.Asorganizations
continuestoexpand,throughmarketpenetration,
productdevelopment,marketdevelopmentand
diversification,coordinationofeffortsbecomes
morecomplexandstrategicandthus,managers
findmarketingmanagementwhichinvolves
properanalysis,planning,implementationand
controlofprogramsasanimportantingredient
forthesuccessofanymarketingactivity.

56. What Is Marketing Management?
Americamarketingassociation(1985)defines
marketingmanagementas“theprocessof
planningandexecutingtheconception,pricing,
promotionanddistributionofideas,goodsand
servicestocreateexchangesthatsatisfy
individualandorganizationalobjectives.
P.Kotler(1991)definesmarketingmanagement
as“theanalysis,planning,implementationand
controlofprogramsdesignedtobringabout
desiredexchangewithtargetmarketsforthe
purposeofachievingorganizationalobjectives.

57. IMPORTANCE OF MARKETING MANAGEMENT
Theimportanceofmarketingmanagementcannever
beoveremphasizedasit’s:
Providestheunderstandingyouneedaboutthe
economicstructureofyourindustry.
Helpsinidentifyingsegmentswithinyourmarket.
Identifythemarketingstrategy,whichbestfits,
yourcompany.
Identifyingyourtargetmarket.
Helpsinconductingmarketingresearch

58. Importance of Marketing Management
Understandyourcompetitorsandtheirproducts
Developnewproducts
Establishenvironment-scanningmechanism
Understandyourcoystrengthandweakness.
Audityourcustomer’sexperienceofyourbrand
Developmarketingstrategiesforyourproducts
Createasustainablecompetitiveadvantage.
Understandwhereyouwantyourbrandstobein
thefuture,andwritemarketingPlans.
Setupfeedbacksystem

59. MARKETING MANAGEMENT
PHILOSOPHIES
Marketingmanagementphilosophyisa
consumerorientedphilosophyaimedat
identifyingandsatisfyingtheconsumer’s
needsandwantsmoreefficientlyand
effectivelyinamannerthatorganizational
goalsareachieved.Therearesixcompeting
conceptsunderwhichanorganization
conductsmarketingactivities.This
philosophyrevolvesaroundthefollowing
concepts;

60. Marketing Management Philosophies
1.TheProductionConcept
2.TheProductConcept
3.TheSellingConcept
4.TheMarketingConcept
5.TheSocietalMarketingConcept

61. MARKETING ENVIRONMENT
Introduction
Thislecturedealswithhowmarketingmanagers
respondtoenvironmentalchangesinthemarketing
environment.Marketerstakethemajor
responsibilityofidentifyingsignificantchangesin
theenvironment.Marketersmustbetrendtrackers
andopportunityseekers.Acompanyor
organization’smarketingenvironmentconsistsof
theactorsandforcesoutsidemarketingthataffect
marketingmanagement’sabilitytodevelopand
maintainsuccessfultransactionswithitstarget
customers.

62. Marketing Environment Continues…..
The marketing environment consists of a micro
environment and a macro environment:
The Micro –environment of an organization can
best be understood as comprising all those other
organizations and individuals who directly or
indirectly affect the activities of the organization.
The Macro-environment comprises general trends
and forces which may not immediately affect the
relationships that a company has with its customers,
suppliers and intermediaries, but sooner or later,
macro environmental changes will alter the nature of
these relationships.

63. External Environmental Factors
1.DemographicEnvironment
2.EconomicEnvironment
3.Socio-culturalEnvironment
4.PoliticalEnvironment
5.TechnologicalEnvironment
6.CompetitiveEnvironment
7.InternationalEnvironment

64. MARKETING AND SOCIETY
Introduction
Marketingreliedheavilyonthesocietyforits
successpostwhilethesocietyalsoowesits
qualityoflifetomarketing.Generally,
marketingmakesdemandsonthesocietyand
thesocietymakesdemandonmarketing.In
thislecture,weshallidentifytheunderlying
relationshipsbetweenmarketingandsociety,
andthecontributionofmarketingtothe
society,aswellastheunethicalmarketing
practices.

65. Marketing and Society Continues…..
Environmental Relationship
Marketingoperatesinanenvironmentthatis
externaltothefirm;itreactstoitsenvironmentand
is,inturn,acteduponbyit.Theenvironmental
relationshipsincludethosewithcustomers,
employees,government,vendors,andthesocietyas
awhole.Externalrelationshipsformthebasisof
thesocietalissuesconfrontingmarketing.Firms
marketingrelationshiptoitsexternalenvironment
hasasignificanteffectonthedegreeofsuccessit
achieves.Marketersmustalwaysfindnewwaysto
dealwithsocialissuesfacingmarketing.

66. Marketing and Society Continues…..
ContributionsofMarketingtotheSociety:
Improvementonthestandardofliving
MassiveproductionofYstomeetsocietaldemand
Specializationofskills
Creationofjobopportunities
PromotionofSocialcauses
GrowthofGrossNationalProduct(GNP)
Improvementofbilateralrelationshipbetween
differentcountriesthroughinternationaltrade.
Educationoftheconsumersinthesociety.

67. Marketing and Society Continues…..
SocietalProblemsofMarketing:
Inthecourseofachievingsocietalneed
(satisfaction),someunwantedoutputand
activitiesaregeneratedconsciouslyor
unconsciously.Alltheunwantedoutputposes
aseriousproblemtothesociety.
Encouragementofmaterialism
Environmentalpollution
Problemsofimplementingmarketingmix

68. Marketing and Society Continues…..
MarketingEthics
ShelbyD.Hunt(1986)definesmarketingethics
asboththestudyofmoralevaluationof
marketingandthestandardappliedinjudgment
ofmarketingdecisions,behaviorand
instructionsasmorallyrightorwrong.
O.C.Ferrelldefinesitasthestudyofrightand
wrongwithrespecttomarketingpolicies,
practicesandsystems.Thatitcomprises
principlesandstandardsthatguideappropriate
conductinorganization.

69. Marketing and Society Continues…..
UnethicalMarketingPractices
Un-ethicalmarketingpracticesarethekindof
practicesthataredeceptive,exploitativeand
dangeroustohumanlife.Unethicalmarketing
alsomeanscriticismsofmarketing.The
varioussocialcriticismofmarketingcanbe
classifiedintothoseallegedtohurtindividual
consumers,societyasawholeandother
businessfirms.TheAreasofun-ethical
MarketingpracticesinNigeriaInclude:

70. Marketing and Society Continues…..
Areas of Un-ethical Practices:
Un-ethical Marketing Practices Related to
Product
Un-ethical Marketing Practices Related to
Price
Un-ethical Marketing Practices Related to
Distribution
Un-ethical Marketing Practices Related to
Promotion

71. ORGANIZATIONAL BUYER BEHAVIOR
Introduction
Businessorganizationsnotonlysell,buttheyalso
buyvastquantitiesofrawmaterials,manufactured
parts,installations,accessoryequipment’ssupplies
andbusinessservices.
Governmentagenciesandinstitutionsalikealso
buyoneproduct,serviceortheother,inthistopic,
wearegoingtoconsiderbusinessorganizationsand
governmentandinstitutionsasanothersegmentof
buyers-theorganizationalbuyer.Themodeof
buyingbytheseinstitutionswillalsobeanalyzed.

72. Meaning of OrganisationalBuyer Behaviour
Whiletherearemorehouseholdsconsumersthan
organizationalbuyers,thereareaconsiderable
numberofpeoplemakingbuyingdecisionsfortheir
organizations.However,thereisavastamountof
organizationalbuyingthatmustbedoneinorder
theyultimatelyreachthehouseholdconsumers.
Organizationalbuyinghasbeendefinedas
decision-makingprocessbywhichformal
organizationsestablishtheneedtopurchase
productsandservicesandidentify,evaluateand
chooseamongalternativebrandsandsuppliers.

73. CHARACTERISTIC OF INDUSTRIAL MARKET
Fewer Buyers
Larger Buyers
Close Supplier -Customer Relationship
Geographic concentration of buyers.
Derived demand
Inelastic demand
Fluctuating demand
Several Buying Influences

74. TYPES OF ORGANISATIONAL BUYERS
Therearethreedifferenttypesoforganizational
buyers,theseare:
1.Theindustrialmarketalsocalledproduceror
commercialmarket.
2.Thesellerorinstitutionalmarketand
3.ThegovernmentMarket.