Marketing Fundamentals: Strategies, Products, and Pricing

1. Perspectives of Marketing

Marketing is viewed through two primary lenses: Philosophy and Technique.

2. The Marketing Mix

The concept of the marketing mix was first introduced by Neil Borden.

3. Marketing Orientation

Not all companies are marketing-oriented; organizations can be either Sales-oriented or Marketing-oriented.

4. The 4 Ps vs. The 4 Cs

From a customer's point of view, the 4 Ps of marketing (Product, Price, Place, Promotion) evolve into the 4 Cs (Customer value, Cost, Convenience, Communication).

5. Sales Management Decisions

Sales management includes the following key areas:

• Strategic decision-making
• Selection and training
• Motivation
• Supervision and compensation of the sales team

6. Marketing Department Structure

Marketing departments are typically organized by:

• Products
• Markets

7. Marketing Strategies

Basic types of marketing strategies include:

• Growth strategies
• Segmentation strategies
• Positioning strategies
• Competitive strategies

Advantages of Segmentation

• Facilitates a comprehensive study of the competition.

Porter’s Strategies

• Cost Strategy
• Differentiation Strategy

Evaluating Marketing Strategy

Strategies are evaluated based on: Adequacy, Validity, Consistency, Feasibility, Vulnerability, and potential results.

8. Product Management

There are two main approaches to product management:

1. Focus on the product itself.
2. Focus on the consumer’s needs.

Product Decisions

1. Current product positioning
2. Brand product positioning
3. Identifying target segment
4. Modifications and changes in products
5. Positioning of product line

Classification of Products

• By Buyer: Consumer products and Industrial products.
• By Duration: Non-durable and Durable consumer goods.

Features of Non-Durable Consumer Goods

• Impulse buying and cash payment
• Price as an important purchase factor
• High stock rotation and low gross margins
• Long distribution processes

Frequency of Purchase

• Convenience goods, Shopping goods, and Specialty goods.

9. Product Attributes (Kotler)

• Formal aspects: Quality, brand, packaging, and design.
• Added aspects: Post-sales service, maintenance, warranties, installation, delivery, and financing.

10. The Total Product (Levitt)

The total product is the sum of four components:

• The generic product
• The expected product
• The augmented product
• The potential product

11. Pricing Factors

Key factors influencing pricing include:

• Legal framework
• Market and competition
• Company objectives
• Interested parties
• Response to demand
• Product lifecycle