1. Unit 2: Marketing Essentials
Unit code :R/508/0486
Unit type: Core
Unit level :4
Credit value :15
Lecture 02
2. By the end of this unit a student will be able to:
2
1. Explain the role of marketing and how it interrelates with other functional
units of an organization
2. Compare ways in which organizations use elements of the marketing
mix (7Ps) to achieve overall business objectives
3. develop and evaluate a basic marketing plan.
3. 3
Pass and merit and distinction criteria For this section
P2 Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives.
M2 Evaluate different tactics applied by organisations to demonstrate how business objectives
have been achieved.
D1 Critically analyse and evaluate the key elements of the marketing function and how they
interrelate with other functional units of an organisation.
4. 2.2 Achieving overall business objectives
2.2.1 The shift from the 4P’s to the 7P’s and the significance of the
extended marketing mix
2.2.2 An overview of the marketing planning process (Analysis,
Planning, Implementation and Control) and marketing strategy
5. 2.2.1 The shift from the 4P’s to the 7P’s and the
significance of the extended marketing mix
7. Product VS. Service Marketing Mix
• The Service Marketing Mix involves Product, Price, Place, Promotion,
People, Process and Physical Evidence.
• Firms marketing a service need to get each of these elements correct.
• The marketing mix for a service has additional elements because the
characteristics of a service are different to the characteristics of a
product. The Characteristics of a service are:
• Lack of ownership
• Intangibility
• Inseparability
• Perishability
• Heterogeneity.
8. Marketing Mix Adaptation for Service Marketing
Product
Price
Place
In this instance our product and service are pretty much the same. However the
service is intangible etc. One-way dealing with this is to consider that: service = product
+ process. So need to focus upon the process.
Pricing needs to take into account two factors in relation to services. The first issue is
what is the unit which we are pricing? Secondly if a price is based upon a bundle of
sub services then how do you price it as a whole?
Where you consume the service is a central part of the services marketing mix. With
the place element the marketer considers convenience, location, footfall, number of
outlets, and timing.
Ex:
• If you have a food trailer which sells organic salads to the public you need to make
sure that you are actually booked at the event, that people will walk past your
trailer and be able to stop and queue, and that you are able to sell to the people
when they want to eat. Simply scale this up for businesses like Pizza Express.
9. Marketing Mix Adaptation for Service Marketing
Promotion
Obviously services are more difficult to assess in terms of attributes in comparison to
tangible products. The marketer needs to be more innovative and clear when it
comes to the benefits to the target market of his or her service. The marketer can try
a number of techniques which include:
• Emphasizing any tangible cues
• Exploiting celebrity to provide information about the service
• Branding is everything to service
Process
The actual procedures, mechanisms, and flow of activities by which the service is
delivered – this service delivery and operating systems.
Processes essentially have inputs, throughputs and outputs (or outcomes). Marketing
adds value to each of the stage of the Value Chain
10. Marketing Mix Adaptation for Service Marketing
People
Physical Evidence
All human actors who play a part in service delivery and thus influence the buyers’
perceptions; namely, the firm’s personnel, the customer, and other customers in the
service environment.
People are the most important element of any service or experience. Services tend to
be produced and consumed at the same moment, and aspects of the customer
experience are altered to meet the individual needs of the person consuming it.
The environment in which the service is delivered, and where the firm and customer
interact, and any tangible components that facilitate performance or communication
of the service.
Physical Evidence is the material part of a service. Strictly speaking there are no
physical attributes to a service, so a consumer tends to rely on material cues. There
are many examples of physical evidence, including some of the following buildings,
equipment, signs and logos, annual accounts and business reports, brochures, your
website, and even your business cards
11. 2.2.2 An overview of the marketing planning process
(Analysis, Planning, Implementation and Control) and
marketing strategy
12. Overview of the marketing planning process
Develop
Corporate
strategy
Develop
Marketing
strategy
Develop
Marketing Plan
13. Cooperate Strategy
• The overall purpose and direction of the organization that is
established is the light of the challenges and opportunities found in
the environment as well as available organizational resources
14. Stages in formulating a strategy foe the company as a whole
Analyze market
and
environmental
opportunities and
threats
Analyze business
strength and
weaknesses
Generate
objectives and
strategy
Evaluate
objectives and
strategy
Plan
implementation
and control
programs
Develop marketing strategy and strategies for other functions of the business
15. Organizational mission /vision and Marketing Strategy
• Organizational mission and vision
• Mission- Your mission statement is a
formal commitment and focus for the
business. It should explain to
customers concisely what the nature
of your business is and where you are
going, and also provide a motivational
tool for employees.
• Vision - A vision statement is a more
long term, ideal-world statement
which outlines where you would like
to take the business in the long run.
• Marketing strategy
• A strategy that focuses on developing
a unique long-run competitive
position in the market by assessing
consumer needs and the firm’s
potential for gaining competitive
advantage
16. The strategic marketing planning process
• Input from corporate strategies
• Situation Analysis
• Marketing Objectives and Strategies
• Marketing Plan
17. Situation Analysis
• Considering the internal circumstances of the organization or product,
the external environment, competitive activity, and characteristics of
the customer that may be relevant to the marketing plan
20. Marketing objectives and strategy
• Flow from the situation analysis. They are a statement of what the
organization intendeds to accomplish with its marketing program and
general approach it will take
27. Marketing plan
• A specific detailed statement of how the marketing mix will be used
to realize the marketing strategy
28. Implementation and Control
• Consist of putting the marketing plan into action as well as doing
ongoing monitoring and gathering feedback on how well the plan is
accomplishing the stated marketing program
• Continuous Analysis
• Measurement
• Reporting
• Budgeting
• Project Management
