Introduction to Marketing (MNM1503) Study Notes

Definition: Marketing is the process of meeting customer needs/wants through the exchange of offerings (Product, Price, Place, Promotion) while establishing stakeholder relationships.
Marketing Function: Intertwined with Advertising, Market Research, Product Management, Promotions, Sales, and Relationship Marketing.
Marketing Mix (4Ps):
- Product: Goods/services satisfying a need.
- Price: Value expressed in money; the only income generator.
- Place: Distribution and convenience.
- Promotion: Communication to sell the product.
Exchange Requirements: Minimum of two parties, something of value, ability to communicate/deliver, and freedom to accept/reject.
Gap Bridging: Marketing fills time, space, information, ownership, and value gaps between production and consumption.
Orientations: Customer, Production, Sales, Marketing, Profit, and Societal (Green) orientations.
Management Tasks: Planning (SWOT), Organizing, Implementation, Leading, and Control.

Micro-environment (Internal): Constant control. Includes Strategic Direction (Vision/Mission), Resources, Marketing Mix, and Management.
Market Environment (External): Limited control. Includes Customers, Suppliers, Competitors (Monopoly, Oligopoly, etc.), and Intermediaries.
Macro-environment (External): No control (PESTIN).
- Political/Legal, Economic (Inflation/Interest rates), Social (Lifestyle/Demographics), Technological, International, Natural.
SWOT Analysis: Identifies internal Strengths and Weaknesses; external Opportunities and Threats.
Environmental Scanning: Irregular, periodic, or continuous gathering of external info to promote future-thinking.

Marketing Information System (MIS): People and procedures to assess needs, develop info, and help decision-makers. Includes Intelligence, Internal Reporting, Statistical, and Research subsystems.
Data vs. Information: Data is raw facts; Information is processed data suitable for decisions.
Value Appraisal: (V = B - C) (Value = Benefits - Cost).

Individual Factors: Motivation, Perception (Selective Attention/Distortion), Learning, Attitude, Personality, Lifestyle.
Group Factors: Family, Cultural, Social Class, Reference Groups (Associative, Aspirational, Dissociative).
Decision Process: 1. Need Recognition -> 2. Info Search -> 3. Alternative Evaluation -> 4. Purchase Decision -> 5. Purchase -> 6. Post-purchase Evaluation.
Segmentation Bases:
- Geographic: Region, climate.
- Demographic: Age, gender, income, LSM (Living Standards Measure).
- Psychographic: Lifestyle, personality.
- Behavioural: Usage rate, loyalty, benefits sought.
Targeting Strategies: Undifferentiated (Mass), Differentiated (Multi-segment), Concentrated (Niche).
Positioning: The mental place a brand occupies relative to competitors; visualized via Perceptual Maps.

Product Decisions:
- Layers: Core (benefit), Tangible (features), Augmented (warranty/service), Image.
- Life Cycle (PLC): Introduction (awareness), Growth (sales rise), Maturity (peak), Decline (sales drop).
- New Product Development: 8 steps from Idea Generation to Commercialization.
Distribution (Place):
- Channels: Producer -> Wholesaler -> Retailer -> Consumer.
- Intensity: Intensive (everywhere), Selective (few), Exclusive (one).
- Logistics: Transportation, Warehousing, Inventory (JIT), Order Processing.
Pricing Decisions:
- Objectives: Profit, Sales volume, or Status Quo.
- Methods: Cost-plus, ROI, Prestige, Odd-even, Penetration (low initial), Skimming (high initial).
Promotion Decisions:
- Integrated Marketing Communication (IMC): Unifying Advertising, Personal Selling, Sales Promotion, Direct Marketing, and PR.
- Personal Selling Process: Prospecting, Approach, Presentation, Handling Objections, Closing, Follow-up.