Marketing is key



Marketing is a key management responsibility centered on understanding consumers and directing the firm's resources to satisfying consumer demands. It also shows marketing trend and evolutionary transformation of marketing into modern day of marketing. The objective of this course is to provide an overview of the theory and practice of marketing, and to introduce the strategies employed by marketers. It focuses on the management of the marketing function and marketing strategy development and planning and provides with the conceptual skills necessary to identify and solve marketing problems.



A.)Tracing the marketing evolutionary trend, the subject has transformed from many concepts before the modern day marketing orientation. Identify and explain various orientations before the new era of societal marketing concept.

B.) consumers are often referred to as the king. Explain this statement from notable marketing definitions and concepts.


A.)Every marketing organisation operates in a complex and dynamic business environment. Identify and explain various micro and macro environmental variables affecting marketing companies in United Kingdom.

B.)Understanding any market requires a thorough classification by segments. Identify and explain various basis of market segmentation by proposing segmentation criteria that can be used for products in different markets.


A.)Explain product life cycle with a typical diagram and identify characteristics and essential strategies for the survival at the stage of the life cycle.

B.)Decision of an organisation to embark on either extensive or selective distribution strategy is contingent on some factors. Identify and explain the factors responsible for the choice of a strategy using both industrial and consumer products as examples.


A.)Every organisation is striving to compete in a global market where consumers and needs are standardised. Explain why companies strive to be global concerns rather than being heavy weight.

B.)Prepare marketing mix programme for any consumers' products and hospitality services. Compare and contrast the mix elements for the two.



A.)Tracing the marketing evolutionary trend, the subject has transformed from many concepts before the modern day marketing orientation. Identify and explain various orientations before the new era of societal marketing concept.

The marketing evolutionary trend has transformed from the olden days era of marketing into a modern concepts which makes marketing of products easier by the marketers. The trend of marketing started with subsistence economy i.e. from hand to mouth and later to modern day marketing. The following are the evolutionary trend of marketing:

A subsistence economy is an economy in which enough food is grown, hunted or gathered to provide for the people. A surplus is grown only if a community desires or needs to trade with neighbouring communities. In this economy food are grown locally and sell to the consumer directly.

The Production Concept: The production concept started since the time of industrial revolution and up to 1950's. The main idea of production concepts is that a firm should focus on the products which he can produce most efficiently and it is one of the first marketing concepts because it is generally believe that they will be sold because of the demand for them by the consumer. The following are the factor to be considered by the producing a product

v It is possible to produce the product?

v It is possible to produce enough of it?

The production concepts succeeded and the goods that were enough to require needs and they were able to meet the demand of the people. All the products that were produced are sold by the sales team and their job is to execute buying, selling and determine price by the cost of production. The production concepts lasted for a while into the last 1920's
The Sales Concept: In the early 1960's there was mass production which resulted into competition and demand for products also was increase this was what lead to sales concepts or selling concepts under which companies will not produce a products but they will also persuade customers to buy them. They have to let the customers know by convincing them through advertising and personal selling. The key questions before producing product were:

v How can we sell the product?

v How can we charge enough for it?

The sales concepts did not give much attention if a product is needed or not by the consumer. The objective was to beat the competition to the sale with much effort to customer's satisfaction. Marketing was a function was given much attraction to after the product was developed and produced and many people came to associate marketing with hard selling.

The Product (orientation) concept: The product concept is the producing of goods and services to the final consumers. The concept focuses on the product and the effectiveness. It started in the early 70s till late 80s. When goods are brought to the door step of the final consumer. The development and research was the forth front, it's also important to produce the right thing and be innovative on the product produce.
The Marketing Concept: Marketing concepts started after World War II, the variety of products increased, customers have access to buy different kinds of goods and hard selling no longer could be relied upon to generate sales. With increased discretionary income, customers can then select and buy only those products that precisely met their changing needs, and these needs were not immediately obvious.
The key questions became:

v What are customers want?

v Can we develop new product it while they still want it?

v How can we keep all our customers satisfied?

This brought about marketing concept, which involves:

v Focusing on customer needs and how to satisfy customers before developing the product.

v Coordinating all functions of the company to focus on those needs of the consumers.

v Realizing a profit by satisfying customer needs over the long-term.

When firms first began to adopt the marketing concept, they set up separate marketing departments whose objective it was to satisfy customer needs. They will be in charge of the marketing of the products to the members of the public. Sales departments have so many expanded responsibilities. While this expanded sales department structure can be found in some companies today, many firms have structured themselves into marketing organizations having a company-wide customer focus. Since the entire organization exists to satisfy customer needs, nobody can neglect a customer issue by declaring it a marketing problem. The ultimate concern of the company is customer satisfaction. The marketing concept relies upon marketing research to define market segments, their size, and their needs. To satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix.

B.) Consumers are often referred to as the king. Explain this statement from notable marketing definitions and concepts.

A consumer is often referred to as the king because the consumers dictate what goods are produced and are generally considered the center of economic activity. Consumer is an individual who has the necessary purchasing power to consume goods and services produce by the manufacturer. The prices of goods and services are dictated by consumers. The consumers buy at different prices depends on the products.

The term marketing has changed and evolved over a long period of time, today marketing is based around providing continual benefits to the customer, these benefits will be provided and a transactional exchange will take place because marketing is all about customer's satisfaction.

The Chartered Institute of Marketing defined marketing as the management process which is responsible for identifying, anticipating and satisfying customer requirements profitably.

If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and competent managers with the appropriate skills to ensure success.

Marketing objectives, goals and targets have to be monitored and met by the marketers, competitor strategies analysed, anticipated and exceeded. Through effective use of market and marketing research an organisation should be able to identify the needs and wants of all the customer and try to delivers benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation as a whole.

Philip Kotler defines marketing as satisfying needs and wants through an exchange process. Also Philip Kotler defined marketing as the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value.

Since marketing is all about customer's satisfaction, consumer is always a king when we are using the four marketing mix: PLACE, PRODUCT, and PROMOTION AND PRICE. It is important to understand your target market, consider how they search and understand which key factors drive their decisions.

According to Philip Kotler, ''Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value. It is the art of helping your customers become better off.

Consumer is always referred to as a King when using the four marketing mix:

PLACE: This is the location where the consumer can buy the products and when citing a location is should be nearest to where consumers will have easy access to the product, the reason for citing the location to the consumer is to allow consumer have access to the product therefore consumer is being considered first before citing a place where they can have easy access to the product. Where all customers can easily have access to the products. It is often referred to as distributive channel.

PRODUCT: The product itself is meant for the consumption of the consumers, therefore the products have satisfied consumer's satisfaction if you want them to buy the product. Since markers always want to satisfy their consumer they give them after sales services, credit facilities, also allow consumers to return the product in case they change their mind after buying the goods. At times they take the delivery of the product to the door step of the consumer and give them instruction on how to make use of the product.

PROMOTION: In order to encourage the consumer to patronise the company again, the marketers do a lot of sale promotion about the product they are selling by giving the consumers incentive to buy the product for instance they can tell the consumer to buy one and take one for free especially when a new product is being introduce into the market for the first time. Promotion takes different form it depend on the company. Promoting a product is all about trying to satisfy consumers need and since they are referred to as the king. It also represents all the communication that a marketer may use in the marketplace. Examples of advertising, Public relations, word of mouth free gift. Etc

PRICE: This is very essential when a new product is being introduce into the market and since the consumer is just know about the product for the first time the price has to be moderate and in other to let the consumers know about the product the price has to be moderate since they are the end user. Price is the amount a customer pays for the product. It is determine by a number of factors which includes market share, competition, material costs, Product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. 18/12/2009 18/12/2009

Kotler, P. (1976), Marketing Management, 3rd ed., Prentice-Hall, Englewood Cliffs, NJ


Every marketing organisation operates in a complex and dynamic business environment. Identify and explain various micro and macro environmental variables affecting marketing companies in United Kingdom.

Marketing organisation operates in a complex and dynamic business environment, the marketing environment is made up of factors and forces outside marketing that affect marketing management. Marketing environment is made up of factors that are affecting marketing companies in the United Kingdom. This could be affect businesses in the United Kingdom both positively and negatively. Micro and Marco environment variables affecting marketing companies in the United Kingdom are:

Micro Environment: This is forces that are close to United Kingdom companies that affect its ability to server it customer which are controllable. Which it can use in order to gain information that will help the company it in its marketing operations, in order to provide fuller satisfaction to the company's customers. Since customers satisfaction is why must businesses are set up.

Macro Environment: This is made up of the immediate external environment and lager societal forces that affect of the companies in the United Kingdom. It could be referred to as uncontrollable.

Micro environmental variables affecting marketing companies in the United Kingdom are:

THE MARKETING MIX: The ‘four Ps' stands for:

1. Product

2. Price

3. Place and

4. Promotion

v PRODUCT: A product can be defined as intangible service that is mass produced or manufactured on a large scale with a specific volume of units. What the business will be decided to give out to the customers is referred to as a product. It is very essential that a product must e guaranteed. A company determine which products to sell or market at any point in time. A good product sells itself. In the United Kingdom a packaging of a product is very essential because we have a very strive competition.

v PRICE: The price the amount a customer pays for a product. This is determined by number of factor in the United Kingdom, this could be as a result of Government Tax, market shares, competition, and product identity. Since business in United Kingdom is comprises of different products that is why increase or decrease in price of product is determined by the strive competition in the UK economy. The price is very important in the competitive environment because price determine whether customer will buy or not, when determining price of a product so many things should be put into consideration in order to convince the buyers or customer. The pricing strategy that will be use is very important in a business.

v PLACE: It is very important when citing a business. It represent where a product can be located, where customer can have easy access to a product at their convenient. In the United Kingdom shops are located where customers can have easy access to what they are buying because of strive competition because there is so many store selling the same product at cheaper price and also customers can buy any product through the internet and it will be delivered to them at their door step so place is very crucial when citing a business because of easy accessibility. Therefore a place is where your customers is located where they can easily locate the business.

v PROMOTION: This means represent ways in which marketers in the United Kingdom used in communicating to the public to let them be aware of their products. In order to let the public know the value of what they are paying for and how the products look like, in UK promotion is carried out through different means to let the public be aware of a product especially when a product is just being introduce into the market. Promotion could be through

ü TV, Radio, internet, newspapers, yellow pages

ü Public News Media, TV AND Radio

ü Free Buy one and take one free

ü Sales Promotion. E.g. Coupons, premiums, post of purchase.(POP), Display

ü Through word of Town crier

In conclusion from the above diagram it is noticed that the marketing mix is center around market and all the marketing mix are important to a business and environment. They help the business in the United Kingdom to pursue their objectives. Most business in the United Kingdom uses it in organisation planning processes.

v EMPLOYEES: This is made up of the employees of the companies; they are the staff of a company. They are employed to carry out their contractual duties and are paid according to the numbers of hours in which they worked depend on the company in which they are employed especially in the UK. They are very important in any business environment because without them a business will not function very well. Employees and job applicants in the United Kingdom are selected, trained, and promoted without discrimination to race, gender, sexual orientation, age or disability. The company in the United Kingdom promotes their employees based on their relevant skill, talents, and performance. The government of United Kingdom is strictly against discrimination when it comes for selecting people for jobs.

v SHAREHOLDERS: They are the owners of public limited company, they have contributed their capital to invest in the company, and the profits are shared according to the ratio in which they contribute their capital. They also make fundamental decision concerning the company. They have the right to vote during the election of board of directors and also the have the right to the company's asset when the company's is winding up i.e. during liquidation. In the United Kingdom shareholder campaign to protect the right of other and they improved the standards of corporate governance.

v MANAGEMENT: This are the top directors of company, they are in charge of the affairs and decision concerning the management of the company, they in charge of recruitment and selection of employees, they are accountable to give to profit and loss of any business. They determine the success of any business since they are the risk bearer in any organisation.

v COMPANY POLICIES: This is the objectives and guide line in which the company's is being funded. They are the lay down rules and objectives of the company which they must follow to achieve the lay down rules. This is very effective in United Kingdom especially which choosing people for a job.

Marco environmental variable affecting companies in the United Kingdom are:

v CUSTOMERS: They are very important to the business and they are always referred to as the king. It is because of their needs, wants and desires that makes them patronises business to buy goods and services. In the United Kingdom customers are always given special preference because they determine the sales and profit that companies make, customers can return goods they are bought in case they change their minds about the good. Since they determine the success of any company they are given incentive like sales promotion in order to encourage them to come back to buy goods.

v COMPETITORS: Businesses exist in a competitive environment. For example, supermarkets are in fierce competition with each other to provide the best possible value for money goods. This is made up companies that are in the same line of business that are competing with them self in order to increase sales, the management of companies must be alert of the treat of another company that are marketing similar product. It very essential for marketing management should understand the good understanding of the competitive forces. They should know who their competitors are and the benefit they are offering the market in order to survive in the competitive market especially in the United Kingdom where we have various companies producing similar product.

v GOVERNMENT: The United Kingdom government policy could be one of the variable affecting marketing companies. When government make policy it could either affect business positively or negatively. The United Kingdom government can enact a law or regulations which might be uncontrollable to the business environment which might affect the business environment.

v SUPPLIERS AND CREDITORS: The suppliers of the companies will affect the business negatively especially if they decided not to supply the companies again, this will affect the production of goods and service. Also creditors of a business too play important role in the business, without them a business will not be able to exit of function.

v COMMUNITIES: This variable is very important in marketing companies, without a communities a business will not be able to exit, they

Also we can have a general external variable affecting marketing companies in the United Kingdom. They are referred to as PEST, which is diagrammatically illustrated:





POLITICAL AND LEGAL FACTORS: Political considerations are likely to be an important concern to marketing environment. Marketing companies involved in international operations are faced with the additional and several challenges. If the political situation of United Kingdom is not stable, this will affect the marketing companies negatively. Marketing firms operating in such volatile conditions clearly have to give serious attention to, the local political situation very carefully. Many of the legal, economic and social developments, in our own society and in others, are the direct result of political decisions put into practice, for example the privatization of state industries or the control of inflation. In conclusion whatever industry the marketing firm is involved fin, changes in the political and legal environments at both the domestic and international levels can affect the company negatively and serious attention need to put in place. In conclusion political has to do with the United Kingdom and business, which has strong impact on the growth of the business.

ECONOMIC FACTORS: Economic factors are of concern to marketing firms because they are likely to influence, among other things, demand, costs, prices and profits. These economic factors are largely outside the control of the individual firm, but their effects on individual enterprises can be profound. Another factor is Inflation, the persistence rise in prices of goods are affect the economy which will reduces the amount of goods that are bought by customers because of the rise in prices, Also economic recession is affecting most countries in the world and many companies are closed down because they can sustain in the management of the company again. In the United Kingdom another factors that can affect the marketing companies is the Exchange rate at which the pounds is rated with other currency in the world which can affect the purchasing power of the people living in the United Kingdom. Lastly the population of the United Kingdom enable the government to plan for entire country, it will allow the government to plan for different kind of age group of people and what to produce for it citizen. It has to do with activities that generate an income in the United Kingdom

SOCIAL AND CULTURAL FACTORS: This is the most difficult element of the macro-environment to promote; it has to do with behaviour and changing priorities. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Geographical differences of individual too can affect their thinking towards their environment.

v DEMOGRAHIC ASPECTS: Population size, age distribution and changing family patterns.

v BEHAVIOURAL ASPECTS: Cultural values, aesthetic values.

TECHNOLOGICAL FACTORS: Technology has made the world to turn into a global village. Marketing firms themselves play a part in technological progress, many having their own research institute in order to carry out latest technology and improve on their marketing strategies in order to make thing easier for their customers. Technological change has affected marketing activities is in the developed country like United Kingdom, customers can buy their goods via internet and it will be delivered to them at home. This has made marketing easier because the customers can stay in their various houses and shop online for any products of their choice. Also the use of computer, make sales and payment easier, the buyer can make payment with his debit card without consulting anybody, this make payment faster and easier to the consumers. environments...2%3Amarketing

A.)Understanding any market requires a thorough classification by segments. Identify and explain various basis of market segmentation by proposing segmentation criteria that can be used for two products in different markets.

Marketing segmentation is defined as a process which entails the breaking down the market into different homogenous groups and serving the market with different marketing mix (i.e. PRODUCT, PRICE, PLACE AND PROMOTION) that meet the needs of various groups. The basis of market segmentation of the two products LAPTOPS AND BABIES PAMPERS are classify as follows:

GEOGRAPHIC SEGMENTATION: is base on regional variables such as region, climate, and population growth rate. Laptops and baby's pampers can be found in all region, climate and because of increase in population growth rates people are buying laptops in all the countries has increased because of population growth rate likewise because of increase in birth rate throughout the world people are giving birth everyday which results into increase in the number of mothers buying pampers every day, the more birthday rate the more people buy pampers. The market will experienced increase in profit because of increase in population will lead to increase in the number of people buying laptops and babies pampers.

DEMOGRAHIC SEGMENTATION: is base on variables such as age, gender, ethnicity, education, occupation, income, and family status. Laptops are usually purchase by the adult and which results that adult between the age of 18 and above can acquire one for themselves especially students. Laptop has nothing to do with gender, both male and female can buy for themselves. Also people from different ethnics can acquire one, it has nothing to do with ethnicity. Only those that are educated can buy a laptop therefore we can segment those that are educated on the basis of demographic using education as our basis. Also those that have regular job and income will be able to afford a Laptop we can use demographic segmentation to segment those that have regular income that can afford a Laptop. We can use Demographic segmentation to know that number of mothers that are buying pampers for their babies using Age to know that numbers of babies that are using babies pampers.

PSYCHOGRAPHIC SEGMENTATION: is base on variables such as values, attitudes and lifestyles. We can use lifestyle of people to know the number of people that are buying expensive laptop compared to those that are not expensive using psychographic segmentation. The number of women using an expensive pampers for their babies we can know it by their lifestyles, because they will preferred to buy expensive pampers for their babies because of their lifestyles. That means the market for pampers is only targeted for women. THE PSYCHOGRAPHIC SEGMENTATION OF DIFFERENT HOUSEHOLD IN UNIKED KINGDOM:







Higher managerial, administrative or professional.




Intermediate managerial ,administrative or professional




Supervisor or clerical, junior managerial, administrative or professional




Semi manual workers




Semiskilled and unskilled worker




Pensioners, widows, casual or lower –grade workers


The diagram above shows the psychological segmentation of different households in the United Kingdom, The shows the households in the United Kingdom according to their social class, life styles and personality. The diagram above shows that the lower middle class has the highest number of occupation which is made up of the supervisor, clerical, junior managers and skilled workers which is made up of manual workers, the upper class has the least number of occupations which is made of professional. Therefore we can group people into different social status to know there psychological segmentation i.e. to know their lifestyle, values and attitudes.

BEHAVIORAL SEGMENTATION: is base on variables such usage rate and patterns, price and sensitivity, brand loyalty and benefits sought. We can use behavioural segmentation to segment the market price and differentiate the people that are buying different brand of Laptop and know that brand that are selling most in the market and the brand that has low patronage of consumers. Also we can use behavioural segmentation to know the different kind of pampers that baby mother are buying most in the market, since there are different kind of pampers in the market we can know the one that mother are buying most using price and brand loyalty.

The following are the criteria for segmentation that can be used for two products in market:

ACCESSIBLE: The segment must be accessible to and customers must have easy access to all the products through communication and distribution channels.

IDENTIFIABLE: The product must have some common characteristics. A product must also display some common characteristic. E.g. Doctors, Lawyer, Teachers, Bankers. Etc.

RECOGNISABLE: The product must be known and the products have been differentiated from another similar product. It should have it own brand name and it should be easily recognise by the buyer.

SUBSTANCIAL: The product must be dependable. The consumer must be satisfied with the product whenever they make use of it.

PROFITABLE: The product must be profitable in term of getting benefit from product and it must achieve the desire objectives.

MEASURABLE: The product must be able to measure with the segment to be able to manage it and to know the amount of quantity that is required.

SUSTAINABLE: The product must happen all the time. E.g. yearly. The organization must be able to sever the segment in a long term. 18/12/2009 18/12/2009


A.)Explain product life cycle with a typical diagram and identify characteristics and essential strategies for the survival at the stage of the life cycle.

A product is defined as anything that is capable of satisfying customer needs. This definition includes both physical products (e.g. cars, washing machines, DVD players) as well as services (e.g. insurance, banking, private health care). Businesses should manage their products carefully over time to ensure that they deliver products that continue to meet customer wants. The stages through which individual products develop over time are called PRODUCT LIFE CYCLE.

The diagram below illustrates a product life cycle, at the introduction stage the awareness and development of a market for the product is set in motion.

PRODUCT DEVELOPMENT: In the diagram above the development stage is the when a company finds and develops new products. This required adequate information about the new product. When a new product is being introduce it involves a lot of time money and it required money for marketing because adequate information about the newly product must be passed to the member of the public about the products.

INTRODUCTION STAGE: The Introduction stage of a product is the stage where by a firm build a product awareness and develop a market for the product and this is the time when the product or service is new in the market i.e. when a product is new in the market and a high degree of marketing will be needed such as promotions, publicity and advertising to increase commercial awareness. During this stage, sale will be low because the product is still very new in the market that is why promotions and advertisement is very necessary at this stage. The distribution arrangement of a new product has to be effective so that there will not be shortage of products in the targeted market. Pricing is also very important at this stage; the first customers will pay a lot since the product is new and later the price of the product will be reduced, this demand a very good knowledge of the market and what a customer is willing to pay for newly introduced products.

GROWTH STAGE: The Growth Stage is made up by rapid growth in sales and profits. Profits arise due to an increase in output (economies of scale) and possibly better prices. At this stage, it is cheaper for businesses to invest in increasing their market share as well as enjoying the overall growth of the market. At this stage customers are advice to try the product so that they can know the value of what they are buying. The intensive market strategy is at the stage, the public should be informed about the products. Therefore a sale volume is increased at the stage. In the diagram above market share tend to stabilizes.

MATURITY STAGE: The Maturity Stage is, perhaps, the most common stage for all markets. It is in this stage that competition is most intense as companies fight to maintain their standard the products is fully saturated at the market, the member of the public are already aware about the product. At this stage the products is known in the market and prices may need to be lower because of new competition. Increase in distribution should intensive because the product is already known in the market. Promotion should not stop at the stage because in order to make more sales for instance you can introduce buy one and take one free since the product is in saturation. In the diagram above it shows that the product is well known in the market there will not be need for advertisement.

DECLINE STAGE: In the Decline Stage, the market is shrinking and sales are reducing drastically. At this stage, the product has to be manage carefully and if possible maintain the products. It may be possible to take out some production cost, to transfer production to a cheaper facility, sell the product into other, cheaper markets. The amount of stocks of the product should be control and price of the product should reduce at this stage. Finally, depending on whether the product remains profitable, a company may decide to end the product. The strategy to be use about the products will be determine at this stage i.e. if the products. This can be illustrated in the above diagram.



















Mass marketing

Mass marketing

Very low








More awareness




Expanding market

Market penetration

Defensive marketing




High declining



SALES: The above break down shows that sales will be very low at the introduction level i.e. when the product is first lunch into the market. There will increase in growth and slow maturity of the product because the product is new in the market. The product will be declining at the decline stage.

PROFITS: There will not be profit at the introduction stage because the product is still new in the market, at the growth stage the profit will be peaking up because people are getting to know about the market. At the maturity stage the product will be declining and at the decline stage profits will be low because the product is still new in the market.

CUSTOMERS: At the introduction stage, customers should be given innovative about the products, customers should be introduced to the products, how to use the products, the benefits of using the products generally awareness about the new products to all the customers. Also at the growth stage and maturity stage there should be mass marketing in order to reach all the potential customers. There will not be too much customers since the products is still new in the market.

CASH FLOW: There will be low cash flow at the introduction stage since the product is still new in the market. At the growth stage cash flow will be moderate since customers are just getting to know the products in the market. At maturity stage there will be high cash flow because the product is know in the market and sales would have been improved at the stage. At decline stage cash flow will be low since the products is no more new in the market, promotion and advertisement should be introduced this stage in order to improve sales.

FREE PROMOTION: At the introduction stage there should be serious awareness about the products since the products is newly introduced i.e. advertisement and sales promotion. At the growth stage there should be more awareness about the product since there might be competitors in the market. At maturity stage promotion should be withdraw because the product might have been fully known in the market. The product should be ceased at the decline stage to know the next step to take.

STRATEGIC PRODUCT: The next step of action should be taken at the introduction stage by expanding the market since the products is already known in the market. How to penetrate the whole market is the major concerns at the growth stage, then at the maturity stage plan should be drawn on defensive market because of competitors in the market. Decline stage how productivity of the products will take place should be the born of contention.

MARKETING: At the introduction stage marketing of the products should be high the entire market should know about the new products. Marketing at the growth stage will be high declining because if marketing is not constant it will drop at the same time. Marketing will fall at the maturity stage since product is known in the whole market and finally marketing will be low at the decline stage because the products is not new again and marketing strategy has stopped at this stage.

B.)Decision of an organisation to embark on either extensive or selective distribution strategy is contingent on some factors. Identify and explain the factors responsible for the choice of a strategy using both industrial and consumer products as examples.

The following are distribution channel in an organisation are:

INTENSIVE DISTRIBUTION: This is commonly used to distribute low priced product and impulse purchase product. Intensive distribution is usually required where customers have a range of acceptable brands to choose from. In other words, if one brand is not available, a customer will simply choose another. E.g. soft drinks, chocolates, beers etc. In case of industrial products like motor vehicle, it can only be purchase from the dealers or directly from the manufacturer.

EXCLUSIVE DISTRIBUTION: This requires limiting distribution to a single outlet.

It is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area. This is usually common to industrial products like motor vehicle, there are some cars that are made for only temperate region and also there are some car that are made for other region like Africa.

SELECTIVE DISTRIBUTION: This is when a producer use limited number of outlets that are in the geographical area to sell it products. A producer gain a lot from this because the producer can choose the most appropriate or best performing outlets and focus effort and training for effective selling of the products. Selective distribution always work best when a consumer have the free will to shop around on the own. They have the free will for preference for a particular brand or price and they have the opportunities search out the outlets that supply.

The following factors are responsible for the choice of a strategy using both industrial and consumer products as examples:

CONSUMER FACTORS: In distribution of consumer's products within a geographical area like perishable products like vegetables, tomatoes etc. The product has to be distributed to the final consumer within a stated period of time to keep the product safe for consumption. The product must be brought to the close contact of the final consumer as soon as the product is ready for consumption since they are perishable product they need to be consumed immediately by the consumers.

MARKET FACTOR: In selective distribution, market factor are the factors that affect the demand and the price of good are services. It also show the buyer behaviour, how will the consumer want to purchase the product, will they buy from the retailer, or buy from wholesaler or buy directly from the buyer and finally buy via internet. The means which a consumer will buy a product and how the product will get to the final consumers are the strategy that the producer will use to let the product get to the final consumer. Also buyer needs specific assistance before they buy the product, i.e. information about the product.

PRODUCT FACTOR: Product factor in selective distribution is the colour, shapes of the product. It is always used to represent market response and how the consumers are able to recognise the products. The products characteristics enable the consumers to identify the product with the colours, shape and sizes which makes them to be different from other products. Product that are large are supplied to the consumer directly e.g. hospital equipment while perishable product like bread, food, tomatoes require short distributive channel to the final consumer.

MANUFACTURER FACTORS: Manufacturer product are in industrial is the process whereby many manufacturer come together to meet the demand of the final consumer. When manufacturer come together to meet the demand of the consumer makes the consumers have easy access and availability of the product to the final consumer. In manufacturing of cars, the manufacturer might depend on other manufacturer to produce some of part in assembling the car which makes it easy for the manufacturer. The manufacturer also maintain how, where and what price a product will be sold. If a manufacturer is selling through the retailer they will not have the control over price of the product. Direct distribution gives the manufacturer control over the price of the product.


A.)Every organisation is striving to compete in a global market where consumers and needs are standardised. Explain why companies strive to be global concerns rather than being heavy weight.

The following are the reasons why companies strive to be global concerns rather than being heavy weight:

GLOBALIZATION: The term globalization encompasses a range of social, political, and economic changes. Defining Globalization of markets represents not only opportunities for domestic producers to earn revenue from overseas but also threats to domestic producers from overseas competition. Globalization involves developing marketing strategy in which the world is in a single entity where a standardised product is the same way everywhere. Globalised organisations employ standardised products, promotional campaigns, prices and distribution channel of all markets

v EXPANSION OF TRADE AND CUSTOMERS: Goods and services are increasingly traded between economies in order to exploit the concept of comparative cost advantage i.e. an economy will export those goods and services that it is particularly well suited to producing and import those where another country has an advantage. Also customers can trade with themselves from any part of the world.

v RISK DIVERSIFICATION: Since many people are involved in trading with one another, this makes this risk to spread within some many people. The company's investment is spread in order to reduce risk

v INTERNATIONAL TRADE: The removal of many restrictions on international trade has allowed countries to exploit their comparative cost advantages. Nevertheless, restrictions on trade remain, especially for trade services. Countries can trade with one another especially countries that has excess can export to another countries which earn them foreign exchange. I.e. Nigeria is one of the producers of oil in African, Nigeria export crude oil to other countries in the world which ear them foreign exchange.

v IMPROVED COMMUNICATION: Improved communication in the world allows people to communicate effectively and trade with one another. People can communicate with one another and trade with themselves via internet and payment will be made online which makes trade to be flexible. Cultural convergence that has resulted from improved communications and increasing levels of overseas travel has led to a homogenisation of international market segments.

v GLOBAL BRAND NAME: Global brand name of some products like NIKE, ADIDDAS, and PHILIPHS allow trade to be flexible because customers can buy the products any part of the world.

v LARGE MARKET: Expansion of customer's base increase their turnover, increase in the number of customers result into high turnover which a company will make since it will increase their sale and capital.

B.)Prepare marketing mix programme for any consumers' products and hospitality services. Compare and contrast the mix elements for the two.

Analysing the marketing mix of Coca Cola and British Airways by using the 7PS: The diagram below illustrate the different kind of marketing mix. Coca cola and British Airway make use of the marketing mix to define their marketing elements for successful positioning. It will let both Coca cola and British Airway know strategy, techniques and plans that they will use when writing out their businesses plans. The marketing mix will also help Coca cola and British Airway know the targeted consumer and also it will enable the two companies to achieve it organisational objectives.


Marketing Services

v PRODUCT: features, quality and quantity.

v PLACE: Location, wholesale.

v PRICE: Strategy, determinants and levels.

v PROMOTION: sales promotion, advertising and public relations.

v PEOPLE: promotion, quality, quantity and training.

v PROCESS: control procedure, automation.

v PHYSICAL ENVIRONMENT: cleanliness, decoration, environment and surrounding influence.




A product developed to satisfy consumers need. Reasonable research has been done to know the consumers need. Coca cola has various products which are consume by their customers all over the world. Examples of Coca cola product are Coke, Fanta, Schweppes, Five alive, Coca cola zero ETC. In the above diagram the features, quality and quantity of coca cola is the same throughout the world.

The product of British Airways is the flight seat that passengers seat on whenever they board a plane. We have different types of flight class e.g. First class, Business /club, Premium Economy and Economy. In the diagram above the features, quality and packaging of British Airways is the same and is to offer best services for their customers the entire world.


Temporary market will be developed mostly around strategic end to meet the demand of their customers. New retailer and old retailers will be encouraged to stock product to ensure it is available and visible to everywhere. Coca cola can be purchase by customers at any store or gas station. Coca cola can also be bought at Vending machine or corner stores. In the diagram above Coca cola can be bought on retail, wholesale and through their outlet which makes it available to all their customers.

Flight ticket can be purchase via internet, agent to book flight. Ticket can also be purchase at the airport. In the above diagram British Airways customers all over the world can purchase ticket via internet, agent etc which make it easier for all their customers all over the world. Customers can book for flight via internet and also check in online which make it convenient for them without going to British Airways office to book for flight.


Introducing price with low price in order to appeal to lots of people. Coca cola can introduce a new product to the market and in order to enable their customers aware about the product, they can give discount to encourage the customer to buy the newly introduce products. In understanding the targeted market in the above diagram Coca cola can use any of the means, Strategy, determinants and skimming levels to determine the price of Coca cola


Promotion is communication with customers. Advertising on the T.V, newspapers. The T.V will be viewed by a lot of people. The advert should be done in the evening when most people we be home to view it. Coca cola might decide to promote a new product that is just new in the market by giving free bottle to all the consumers to enable them know about the new products. Coca cola promotes it products by sponsoring football matches i.e. world cup in order to promote its products. In the above diagram Coca cola can use any of the means of promotion to promote it products. E.g. sale promotion or advertisement.

The price for flight ticket is seasonal and expensive during the festive period and also the airline might decide to give discount especially during off peak period. British Airways can use any strategies and skimming to determine the price of flight tickets

British Airways promote its sales on internet, poster, TV, magazine, royalty card and also third party with other air lines. They also sponsor events to promote themselves and what they offer to the public. In the above diagram British Airway can use any of the means of promotion to promote it products on TV, Magazine and also through sale promotion.


People are the staff, employees and customers of the company. Its vey essential to use the appropriate staff and people. Coca cola improve their service and sales they send their marketers on training so that they can improve their skills. In the diagram above Coca cola can improve their services by sending their employees on training and given necessary assistance to all their customers in order to improve their services.

British Airways have temporary and permanent staff. They hire the best staff and also provide training for their staff in order to provide quality service to the public. In the diagram above British Airways can send their staff for training and seminar and also their pilots in order to give them training and train them on new safety methods.


Refer to the process which company used to deliver good service. Process is all about the procedure, mechanisms and flow of activities by which services are consumed

Coca cola set a target for themselves to meet the demand of their customers all over the world by engaging themselves in various marketing strategies to meet the demand of its customers. In the diagram above Coca Cola can set a standard procedure to improve their services in order to get the customers best services throughout the world.

In order to improve their service British Airway allow their customers to buy ticket online via internet and also passenger can check in online in order to make thing easier for their customers. In the diagram above the process that British Airways will use is centred on the market and how to give better services to their customers.


Physical environment is the material part of service. It is the element of service mix which allows the consumer to make judgements on the organisation.

Coca cola will make sure that they operate in a clean and neat environment and also they will make sure that they kept their bottles clean and customers must not complain about their product. In the diagram above there are various way in which Coca Cola set aside various ways to make sure that they give the best to their customers by keeping their environment clean and safe all the time.

British Airways must make sure that customers enjoy the value of what they have paid for by giving customers food and so many packages in order to encourage them to patronise them again and customers on the first class have enough room to lie down and given special treatment for the money they paid for by providing all the basic facilities. In the diagram above British Airways can give best services to their customers by giving them good customers services when never they board their plan which will make them patronise them again, Since they enjoy their services.


Kotler, P. (1976), Marketing Management, 3rd ed., Prentice-Hall, Englewood Cliffs, NJ

Gray Armstrong and kotler P. (2006), an introduction to Marketing.

BIBLIOGRAPHY 18/12/2009 environments...2%3Amarketing 18/12/2009

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!