Lesson One Marketing

KENYATTA UNIVERSITY
FACULTY OF COMMERCE
MASTERS IN BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
COURSE OUTLINE
Course facilitator-Ms.ANNE MUCHEMI CONTACT: 0721353578
1. Meaning of marketing
2. Core concepts of marketing
3. Marketing Management philosophies
4. Market segmentation
5. Marketing environment
6. Consumer behavior
7. Marketing research
8. Marketing Planning and Control
9. Marketing Mix
 Price Decisions
 Product decisions
 Placing Decisions
 Promotion Decisions
2. Extended Marketing Mix
Evaluation
Continuous assessment test 10 %
Term Paper 15 %
Group Work 15 %
Final Examination 60 %
RERERENCES
Baker, M. J. (1992) Marketing Strategy and Management, 2nd Edt, MacMillan Press,
London.
Kibera, F.N. and Waruingi, B.C. (1998).Fundamentals of Marketing, An African
Perspective, Kenya Literature Bureau, Nairobi.
Kotler, P.and Amstrong, 2002.Principles of Marketing. Pearson Education, Asia, 9th
Edition.
Kotler, P. (2000).Marketing Management: Analysis, Planning and Control, Prentice Hall,
New Delhi.
McCarthy, .J. (1981).Basic Marketing: A Managerial Approach, Richard D.Irwin,
Homewood.
By Wambui Muchemi
MARKETING MANAGEMENT PHILOSOPHIES

INTRODUCTION
Marketers need guidance regarding their conduct in the market place. This is because
conflicts are bound to arise between the needs of the society. Customers and the
company. This guidance is known as the marketing principles, rules, concepts or
philosophies. There are five competing concepts that may govern the operations of
companies, namely;
1. The production concept
2. The product concept
3. The selling concept
4. The marketing concept and
5. The societal marketing concept.
THE PRODUCTION CONCEPT

This concept holds that .consumers will favor those products that are widely available
and low in cost. Management focuses on high production efficiency and wider
distribution coverage.
This concept makes sense under the following circumstances;

1. When the product is a basic necessity
2. The customers are low income earners
3. When the production costs are high and have to be brought down through high
production efficiency
4. When the market is highly price sensitive.
5. When demand for the product exceeds the supply and some other means have to be
used to allocate the products to the customers.
Examples of companies guided by this concept include,
1. City Council primary schools
2. Unilever- for its basic foodstuff
3. City Council health services.
This concept ensures product availability to the consumers. However, product quality is
compromised.
THE PRODUCT CONCEPT

The product concept holds that .consumers favor those products that offer the most
Quality, performance and features. Marketers assume that consumers will buy those
products of high quality and shun those products of inferior quality. Management focuses
on producing high quality products and improves on them over time.
This concept may apply under the following conditions;

1. When the market is not price sensitive
2. In the case of conspicuous goods
3. Where the customers are well-off financially.
The concept has been criticized on the following grounds:

1. The idea of a good product is defined from the company’s end but not the consumer’s.
The concept thus leads to marketing myopia [shortsightedness]. There is undue
concentration on the product rather than the needs of the consumer.
2. A company may end up producing goods that may not have demand.
3. The concept ignores the needs of the society
Examples of firms practicing this concept are;

1. Those selling jewelleries,
2. Private schools and
3. Private hospitals
THE SELLING CONCEPT
This concept holds that consumers, if left alone, will ordinarily not buy a lot of a
company’s products. The organization must therefore undertake aggressive selling and
promotion effort. That is, a company must focus on hard selling. Under hard selling,
consumers are not willing to buy such products easily.
Examples of products sold under this concept are;

1. Life insurance policies
2. Political campaigns
3. Fund raisings
4. New products
5. Encyclopedias
6. Funeral plots
7. Coffins.
The concept may work under the following circumstances;

1. Where the company is operating under excess capacity and wishes to fully utilize its
resources with no regard to the products demand
2. Where the product is new in the market
3. Where the firm has adequate machinery for effective promotion
4. Where the products are obsolete or are slow moving
The selling concept has some limitations. Namely:

1. Consumers may be forced to buy products that they do not have real need for
2. It is an expensive concept as it requires a lot of resources, both human and financial.
THE MARKETING CONCEPT
The marketing concept holds that .the key to achieving organizational goals lies in
determining the needs and wants of the target market and delivering the desired
satisfaction more effectively and efficiently than competitors. This concept has been
expressed in many colorful ways;
The concept rests on five main pillars;
MARKET FOCUS
The company must define the boundaries of its market. It should know those customers
that are members of their market. This can be done through a process known as
segmentation.
CUSTOMER FOCUS
The company should determine the needs and wants of the customers from the customers.
point of view but not the company’s. Customer’s needs must be identified and satisfied as
these results into customer loyalty which is a source of Co goodwill.
INTEGRATED OR COORDINATED MARKETING

When all company Departments work together to achieve the consumers interest, the
result is integrated marketing
It takes place at two levels;

The marketing function
The various marketing functions. Advertising, marketing research, sales, branding, e.t.c.
must work together. They must be well coordinated from the customer’s point of view.
Company-wide orientation
Marketing must be embraced by other departments. They must think customer.
Marketing is not a department but much of a Co-wide orientation. Teamwork must be
fostered among all departments. This requires the practice of internal as well as external
marketing. Whereas the latter is directed at people outside the firm, the former is the task
of hiring, training and motivating employees to serve customers well. Internal marketing
must external marketing. Managers must consider customers as the true profit centers
hence adopt a modern organizational chart.
PROFITABILITY
The ultimate purpose of the marketing concept is to help organizations achieve their
objectives. In the case of private firms, the major one is profit. However, they should aim
for profits through customer satisfaction.
COMPETITION
The concept recognizes the existence of competition. However a Co should offer superior
customer value. It should serve customers better than competitors.
Circumstances under which the marketing concept may be practiced by companies.
Most companies do not embrace the marketing concept until driven to it by

circumstances. Various events forcing companies to adopt the marketing concept
includes:-
Sales decline: - when sales fall, companies panic and look for ways of increasing sales.
Slow growth in sales forces some companies to search for new markets. They realize they
need marketing skills to identify new opportunities.
Changing buying patterns

Most companies operate in markets characterized by rapidly customer ways such
companies need more marketing know-how if they are to track buyers changing values.
Increasing competition
Complacent companies may suddenly be attacked by powerful competitors, e.g. Kenya
Breweries
Increased market expenditures
SOCIETAL MARKETING CONCEPT

Some people have questioned whether the marketing concept is an appropriate
philosophy in the age of:
Environmental deterioration
Resource shortages
Explosure population growth.
World hunger and poverty
Neglected social services
I.e. are companies that do the excellent job of satisfying customer needs necessarily
getting in the best long-run interest of consumers and society? The marketing concept
sidesteps the potential conflicts among consumers.
Wants
Interests and
Long-run societal welfare
The societal marketing concept holds that Organizations task is to determine the needs
wants and interests of the target markets and to deliver the desired satisfactions, more
effectively and efficiently than competitors in a way that preserves or enhances the
consumers and the society’s well being.
The societal marketing concept calls upon marketers to build Social and Ethical
considerations into their marketing practices .They must balance the conflict criteria of
Company profits, Consumer needs and Public interests

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KENYATTA UNIVERSITY

MARKETING MANAGEMENT PHILOSOPHIES

THE PRODUCTION CONCEPT

This concept makes sense under the following circumstances;

THE PRODUCT CONCEPT

This concept may apply under the following conditions;

The concept has been criticized on the following grounds:

Examples of firms practicing this concept are;

Examples of products sold under this concept are;

The concept may work under the following circumstances;

The selling concept has some limitations. Namely:

The concept rests on five main pillars;

INTEGRATED OR COORDINATED MARKETING

It takes place at two levels;

Circumstances under which the marketing concept may be practiced by companies.

Most companies do not embrace the marketing concept until driven to it by

Changing buying patterns

Increased market expenditures

SOCIETAL MARKETING CONCEPT

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