Marketing Mid-Semester Notes
Lecture 1: Introduction to Marketing and the Marketing Concept
Market: People with the desire and ability to buy a specific product
Marketing: Process of developing, pricing, promoting and distributing goods, services and ideas, to
satisfy the needs of customers
Target Market: Specific group of potential customers towards which an organisation directs is
Evolution of Marketing – 5 Stages
1. Production concept: Assumes consumers favour products that offer the most quality for the
price (risk is too much focus on product and not on consumer)
2. Product concept
3. Selling concept: Producing a product and then trying to persuade customers to purchase it.
In effect, trying to alter consumer demand. It is internally focused
4. Marketing concept: The idea that organisations should strive to satisfy the needs of
consumers while also trying to achieve the organisation's goals.
5. Marketing orientation: Focusing organisational efforts to collect and use information about
customers’ needs to create customer value
Relationship Marketing: Linking the organisation to individual customers, employees, suppliers and
other partners for their mutual long-term benefit
Marketing Program: Plan that integrates the marketing mix to provide a good, service or idea to
Societal marketing concept: The idea that organisations should satisfy the needs of customers in a
way that provides for society's well-being (social responsibility and ethical considerations).
Marketing Mix -Controllable factors
Environmental Forces -Uncontrollable factors:
2. Economic Forces
3. Technological Forces
4. Competitive Forces
5. Regulatory Forces
Christina Meyers BSB 126 Marketing 1 Lecture 2: Introduction to Marketing Growth Strategies and Planning
Organisational Strategy Levels
1. Corporate: managing several business units
2. Business Unit: individual products and markets
3. Functional: focussed strategy within various business
Mission: A statement of the organisation's scope, often identifying its customers, markets, products,
technology and values. It often has an inspirational theme.
Culture: System of shared values, attitudes & behaviours that distinguish organisation from others
Strategic & Marketing Planning Stages
1. Situation Analysis: assesses where a firm/product has been, is now and is headed:
(a) Understanding the marketing environment
iii. Competitive advantage
(b) SWOT – Strength and Weaknesses (internal), Opportunities and Threats (external)
(c) Points of difference – characteristics that make it superior to competitive substitutes
(d) Business Portfolio Analysis – studies a firm’s business units as though they were a
collection of separate investments
i. BCG Analysis: growth-share matrix to identify business units as either:
Stars: high market share, high market growth rate
Cash-Cows: high market share, low market growth rate
Question-Marks: low market share, high growth rate
Dogs: low market share, low market growth rate
ii. Strategies for BCG
Invest to build
Invest to hold
(e) Market-Product Analysis :Four expansion strategies involving products and markets.
i. Market penetration: Expanding in the Current Market with the Current Product
ii. Market development: Expanding in the New Market with a Current Product
iii. Product development: Expanding in the Current Market with a New Product
iv. Diversification: Expanding in a New Market with a New Product.
1. Porters 5 Forces
2. Threat of New Entry
3. Threat of Substitutes
4. Power of Buyers
5. Bargaining Power of Suppliers
Christina Meyers BSB 126 Marketing 2 2. Goals: Targets of performance to be achieved, often by a specific time, for example:
(b) Shareholder value
(d) Customer Satisfaction
(f) Employee Welfare
(g) Social Responsibility
3. Strategies: How goals with be achieved
5. Controls: comparing results with plans to identify deviation
Marketing strategy includes:
3. Marketing Mix
Christina Meyers BSB 126 Marketing 3 Lecture 3: Scanning the Marketing Environment and Service Marketing
Environmental Scanning: Acquiring information on events outside the organisation to identify
External Uncontrollable Forces
1. Social Forces: Demographics and Values/Culture
2. Economic Forces: Income, Expenditures and Resources
3. Technological Forces: Technological Impact and Advances
4. Competitive Forces: Pure Competition, Monopolistic Competition, Oligopoly and Monopoly
5. Regulatory Forces: Laws and Consumer Protection
2. Marketing intermediaries
Fours I’s of Services
1. Intangibility – cannot be touched, seen tasted, heard or felt
2. Inconsistency – less standardized
3. Inseparability – produced and consumed simultaneously
4. Inventory – characteristics of services that prevent them from being stored, warehoused, or
Service continuum: A range from the tangible to the intangible or good-dominant to service-
dominant offerings are available in the marketplace
Product quality evaluation
1. Search qualities – determined pre- purchase
2. Experience qualities – discerned after purchase or during consumption
3. Credence qualities –characteristics hard or impossible to evaluation even after consumption
Internal marketing: Service organisation must focus on its employees before successful programs
can be directed at customers
Capacity management: Integrating the service component of the marketing mix with efforts to
influence consumer demand
Christina Meyers BSB 126 Marketing 4 Competitive Forces
Types of Competition
1. Pure competition: many sellers with nearly identical products
2. Monopolistic competition: many sellers competing with similar products
3. Oligopoly: common industry structure, occurs when just a few companies control the
majority of industry sales
4. Monopoly: only one firm sells the product, it is regulated by the state/federal government
1. Market Sharing: Dividing the market between sellers.
2. Misuse of Market Power: Taking advantage of market power in any way.
3. Exclusive Dealing: When suppliers refuse to supply goods unless the re-seller accepts their
4. Price Discrimination: Granting discounts to buyers if they meet certain conditions.
5. Predatory Pricing: Lowering prices so much that competitors cannot compete.
6. Price Fixing: Arranging between sellers to fix a price excessively high.
7. Resale Price Maintenance: Requiring a re-seller to sell products at a specific price.
Christina Meyers BSB 126 Marketing 5 Lecture 4: Consumer Behaviour
Consumer Decision Making Process
1. Need Recognition
2. Information Search
i. Personal sources
ii. Public sources
iii. Marketer-dominated sources
3. Evaluation of Alternative
(a) Analyse product attributes and rank by importance (evaluative criteria)
(b) Evoked set: Group of brands that a consumer would consider acceptable form among
all the brands in the product class of which they are aware
5. Post-purchase behaviour: Value in consumption or use. Comparing the product to your
expectations, and be either satisfied or dissatisfied.
(a) Cognitive dissonance: a feeling of guilt associated with doubts about the advisability of
a purchase decision that one experiences after making an expensive purchase
Types of Consumer Buying Decisions
Routine: The purchase process is virtually habit, such as salt or bread.
Limited: Little thought is put into the decision, such as what to eat for dinner or which kettle to buy.
Extended: Considerable time and effort is spent on information search, and identifying alternatives,
such as for a car, house, or financial investment.
Situational Influences on Customer Behaviour
1. Purchase Task: Why did I engage in this decision?
2. Social Surroundings: Who is present when the decision is made?
3. Physical Surroundings: Décor, music and crowding in shops.
4. Temporal Effects: Time of day or amount of time available.
5. Antecedent States: Mood or amount of cash on hand.
Psychological Influences on Customer Behaviour
1. Motivation: Energising force that stimulates behaviour to satisfy a need
2. Perception: Select, organise and interpret information to create a picture of the world
3. Lifestyle: A way of living identified by activities, interests and opinions
4. Personality: Consistent behaviour or response to recurring situation
Christina Meyers BSB 126 Marketing 6 Psychoanalytic theory: Markers must appeal to buyers’ dreams, hopes and fears. Yet at the same
time must provided buyers with socially acceptable rationalisation for many purchases
Maslow’s Hierarchy of Needs
1. Physiological: Basic to survival
2. Safety: Self-preservation and physical wellbeing
3. Social: Love and friendship
4. Personal: Need for achievement, status, prestige and self-respect
5. Self-actualisation: Personal fulfilment
Selective Perception: Filtering information so that only some of it is understood or remembered by
the conscious mind
Selective Exposure: Where people pay attention to messages that are consistent with their current
attitudes and beliefs
Learning: Behaviours that result from repeated experience or reasoning.
Cognitive Learning: Learning without direct experiences, though thinking, reasoning and mental
Values, beliefs and attitudes: Tendency to respond to something in a consistently favourable or