Introduction

In the fast-paced world of business, understanding the intricacies of marketing and promotion is

essential for success. This introduction will delve into key topics such as place mix, advertising, sales

promotion, public relations, salesmanship, direct marketing, strategic planning, MIS (Management

Information Systems), and business buying behavior. Each of these components plays a crucial role in

shaping the overall marketing strategy of a company and influencing consumer behavior.

Place mix refers to the distribution strategy that a company employs to ensure its products or services

reach the target market effectively. This involves decisions related to the selection of distribution

channels, location of retail outlets, and inventory management. A well-thought-out place mix can

enhance the accessibility and availability of products, ultimately leading to increased sales and customer

satisfaction.

Advertising is a powerful tool used by companies to communicate with their target audience and

promote their products or services. Through various mediums such as television, radio, print, and digital

platforms, advertising aims to create brand awareness, generate interest, and drive consumer action.

Effective advertising campaigns can significantly impact consumer perceptions and purchasing decisions.

Sales promotion involves the use of incentives and promotional activities to stimulate sales and

encourage customer loyalty. This can include discounts, coupons, contests, and special offers designed

to attract customers and boost sales. By creating a sense of urgency and excitement around a product or

service, sales promotion can drive immediate sales and increase brand engagement.

Public relations (PR) plays a crucial role in managing a company's reputation and building positive

relationships with stakeholders. PR activities focus on creating favorable publicity through media

relations, event sponsorships, community engagement, and crisis management. A strong PR strategy can
enhance brand credibility, foster trust with customers, and mitigate potential risks to the company's

reputation.

Salesmanship is the art of persuading potential customers to make a purchase through effective

communication and relationship-building skills. Sales professionals use various techniques such as

product demonstrations, objection handling, and closing strategies to influence buying decisions. A

successful salesperson understands the needs and preferences of customers and tailors their approach

to meet those requirements.

Direct marketing involves reaching out to individual consumers directly through channels such as email,

direct mail, telemarketing, and social media. This personalized approach allows companies to target

specific customer segments with tailored messages and offers. Direct marketing campaigns can yield

higher response rates and conversion rates compared to mass marketing efforts.

Strategic planning is the process of setting long-term goals and objectives for a company and developing

a roadmap to achieve them. This involves analyzing market trends, competitive landscape, and internal

capabilities to identify opportunities and threats. By aligning business activities with strategic goals,

companies can make informed decisions and allocate resources effectively to drive growth and

profitability.

Management Information Systems (MIS) are tools and technologies used by organizations to collect,

process, store, and analyze data for decision-making purposes. MIS provide valuable insights into

business operations, customer behavior, and market trends, enabling managers to make informed

decisions based on real-time information. By leveraging MIS effectively, companies can improve

efficiency, productivity, and competitiveness in the marketplace.

Business buying behavior refers to the process through which organizations make purchasing decisions

for goods and services. This involves evaluating suppliers, negotiating contracts, and assessing product

quality and value. Understanding the factors that influence business buying behavior, such as

organizational needs, budget constraints, and vendor relationships, is essential for companies to tailor

their marketing strategies and offerings to meet the needs of business customers

PART 1

A). Place mix

1. Meaning of channels distribution

A distribution channel consists of the set of people and firms involved in the transfer of title to a product

as the product moves from producer to ultimate consumer or business user. A channel of distribution

always includes both the producer and the final customer for the product in its present form, as well as

any middlemen such as retailers and wholesalers. The channel for a product extends only to the last

person or organization that buys it without making any significant change in its form. When its form is

altered and another product emerges, a new channel is started. The channel for the furnished furniture

might be furniture manufacturer - retail furniture store - consumer. Besides the producer, middlemen,

and final customer, other institutions aid the distribution process. Among these intermediaries are

banks, insurance companies, storage firms, and transportation companies.

2. Factors affecting the choice of channel.

If a firm is customer-oriented, consumer-buying market should be the key factor in management's

choice of its channels. The nature of the middlemen, and the company itself. The various factors

affecting choice of channels are as follows:

I) Market Consideration: A logical starting point is to consider the target market - its needs, structure,

and buying behavior.

a) Type of market: because ultimate consumers behave differently than business users, they are reached

through different distribution channels. Retailers, by definition, serve ultimate consumers, so they are

not in channels for business goods.

b) Number of potential customers: A manufacturer with few potential customers (firms or industries)

may use its own sales force to sell directly to ultimate consumers or business users. Le. Boeing uses this

approach in selling its jet aircraft. For a large number of customers, the manufacturer would likely use

middlemen.

c) Geographic concentration of the market: When most of the firm's prospective customers are

concentrated in a few geographic areas, direct sale is practical. When customers are geographically

dispersed, direct sale to likely to be impractical due to high travel costs.

d) Order Size: When either order size or total volume of business is large, direct distribution is

economical. Thus, a food products manufacturer would sell directly to large grocery chains. The same

manufacturer, however, would use wholesalers to reach small grocery stores, whose orders are usually

too small to justify direct sales.

iii) Product Considerations: While there are numerous product-related factors to consider, we will

highlight three:

a) Unit value: The price attached to each unit of a product affects the amount of funds available for

distribution. For example, a company can afford to use its own employees to sell a nuclear reactor part

that costs more than $10,000. But it would not make sense for a company salesperson to call on a

household or a business firm to sell a $2 ballpoint pen.

b) Perishability: Some goods, including many agricultural products, physically deteriorate fairly quickly.

Other goods, such as clothing, perish in a fashion sense. Perishable products require direct or very short

channels.

c) Technical nature of a product: A business product that is highly technical is often distributed directly

to business users. The producer's sales force must provide considerable presale & post-sale service.

Wholesalers normally cannot do this.

ii) Middlemen Consideration: A company may not be able to arrange exactly the channels it desires:

a) Services provided by middlemen: Each producer should select middlemen offering those marketing

services that the producer either is unable to provide or cannot economically perform. For instance,

firms seeking to penetrate business markets abroad commonly utilize industrial distributors because

they furnish needed capabilities such as market coverage, sales contacts, and storage of inventories.

b) Availability of desired middlemen: The middlemen preferred by a producer may not be available.

They may carry competing products and, as a result, not want to add another line.

C) Attitude of Middlemen Toward Producer's Policy:

When middlemen are unwilling to join a channel because they consider manufacturer's policies to be

unacceptable, the manufacturer has fewer channel options. Some retailers or wholesalers, for example,

will carry a producer's line only if they receive assurance that no competing middlemen will carry in the

same territory.

iv) Company Consideration:

Before choosing a distribution channel for the product, a company should consider its own situation.
a) Desired for the channel control: some producers establish a direct channel because they want to

control their product's distribution. Even though a direct channel may be more costly than an indirect

channel, by controlling the channels producers can achieve more aggressive promotion and can better

control both the freshness of merchandise stocks and their products' retail prices.

b) Services provided by seller: Some producers make decisions about their channels based on the

distribution functions desired (and occasionally demanded) by middlemen. For instance, numerous retail

chains will not stock a product unless it's heavily advertised by the producer.

c) Ability of management: The marketing experience and managerial capabilities of a producer influence

decisions about which channel to use middlemen.

d) Financial Resources: A business with adequate finance can establish its sales force, grant credit to its

customers, or warehouse its products. Financially weak firms use middlemen to provide these services.

3. Types of Channels for Consumer, Services, and Business :

Diverse distribution channels exist today. The most common channels for consumer goods and services

are described as follows:

I) Consumer Goods:

Five channels are widely used in marketing tangible products to ultimate consumers:

a) Producer - consumers: The shortest, simplest distribution channel for consumer goods involves no

middlemen. The producer may sell from door-to-door or by mail.

b) Producer - retailer - consumer:

Many large retailers buy directly from manufacturers and agricultural producers.

c) Producer - wholesaler - retailer - consumer:

If there is a traditional channel for consumer goods, this is it. Small retailers and manufacturers found

this channel the only economically feasible choice.

d) Producer -> Agent -> Retailer -> Consumer.

Instead of wholesalers, many producers prefer to use agent middlemen to reach the retail market,

especially large-scale retailers.

e) Producer -> Agent -> Wholesaler -> Retailer -> Consumer.

To reach small retailers, producers often use agent middlemen, who in turn call on wholesalers that sell

to large retail chains and/or small retail stores.

ii) Business Goods: A variety of channels are available to reach organizations that incorporate the

products into their manufacturing process or use them in their operations. In the distribution of

business goods, the term industrial distributor and merchant wholesaler are synonymous. The four

common channels for business goods are:

a) Producer -> User: This direct channel accounts for a greater dollar volume of business products than

any other distribution structure. Manufacturers of large installations, such as

airplanes, generators, and heating plants, sell directly to users.

b) Producer -> Industrial Distributor -> User: Producers of operating supplies and small accessory

equipment frequently use industrial distributors to reach their markets. Manufacturers of building
materials and air conditioning equipment are two examples of firms that make heavy use of industrial

distributors.

c) Producer -> Agent -> User: Firms without their own sales departments find this a desirable channel.

Also, a company that wants to introduce a new product or enter a new market may prefer to use agents

rather than their own sales force.

iii) Services

The intangible nature of services creates special distribution requirements. There are only two common

channels for services:

a) Producer-consumer: Because a service is intangible, the production process and/or sales activity often

require personal contact between producer and consumer. Thus, a direct channel is used. Direct

distribution is typical for many professional services, such as healthcare and legal advice, and personal

services (such as hair cutting and weight-loss counseling). However, other services, including travel,

insurance, and entertainment, may also rely on direct distribution.

b) Producer-........agent-....... >consumer

While direct distribution often is necessary for a service to be performed, producer consumer Contact

may not be required for distribution activities. Agents frequently assist a services producer with transfer

of ownership (the sales task) or related tasks. Many services notably travel, lodging; advertising media,

entertainment, and insurance are sold through agents.

4. Meaning of physical Distribution

Physical distribution is a necessary as well as a costly activity. According to one executive at Procter &

Gamble, the average time to move from farm to shelf is four to five months. Although it takes only
about 17 minutes to actually produce a product, the rest of the time is spent in logistical activities -

storage, handling, transportation, packing, and so on. The average time required to move a typical

developed economy's domestic product (GDP) shipment. Water, Truck, Lining. The distribution sector

typically accounts for one-third of the gross costs can account for 25 to 35 percent. Furthermore,

international logistics. Before a company establishes its channels of distribution, it must arrange for the

physical distribution of its products through these channels. Physical distribution, which we use

synonymously with logistics, consists of all the activities concerned with moving the right amount of the

right products to the right place at the right time.The activities comprising physical distribution are:

Inventory location and warehousing; Materials handling; Inventory control; Order processing; and

Transportation.

5. Major Tasks Of physical Distribution.

- Logistics function ;Warehousing: storage, distribution, ; Inventory: when to order, how much

to order, just-in-time; Transportation: water, truck, rail, and pipeline; Costs: minimize costs of

attaining logistic objectives; Order processing: submitted, processed, shipped.

B) Advertising

1. The Promotional Mix Strategy.

Producers aim their promotional mix at both middlemen and end users. A promotional program

aimed primarily at middlemen is called a push strategy, while a promotion program directed

primarily at end users is called a pull strategy.

a) Push Strategy:

Using a push strategy means a channel member directs its promotion primarily at the

middlemen that are the next link forward in the distribution channel. The product is "pushed"

through the channel.

b) Pull Strategies:

With a pull strategy, promotion is directed at end users, usually ultimate consumers. The

intention is to motivate them to ask retailers for the product. The retailers, in return, will

request the product from the wholesalers, and the wholesalers will order it from the producer.

In effect, promotion to consumers is designed to "pull" the product through the channel. This

strategy relies on heavy advertising and various forms of sales promotion such as premiums,

samples.

2. Promotional Budget

Promotional Budgeting is extremely challenging because management establishes standards for

determining how much to spend altogether or, reliable sources for personal selling, and how

much of the total budget to allocate to advertising or promotional mix elements. Rather than

one generally accepted approach to allocating budgets, there are four common promotional

budgeting methods: setting promotion as a percentage of sales; allocating all available funds;

following the competition; and budgeting by task or objective.

a) Percentage of Sales:
The promotional budget may be related in some way to company income, as a percentage of

either past or anticipated sales. A common approach for determining the sales base is to

compute an average between the previous year's actual sales and expected sales for the

coming year. Some businesses prefer to budget a fixed amount of money per unit of past or

expected future sales. The percentage-of-sales method is simple to calculate, and it is probably

the most widely used budgeting method. Moreover, it sets the cost of promotion in relation to

sales income, making it a variable rather than a fixed expense.

b) All Available Funds

A new company or a firm introducing a new product frequently plows all available funds into its

promotional program. The objective is to build sales and market share as rapidly as possible

during those early, critical years. After a time, management generally finds it necessary to

invest into other things, such as new equipment or expanded production capacity, so the

method of setting the promotional budget is changed

c) Following Competition:

A weak method of determining the promotional budget, but one that is used occasionally, is to

match the promotional expenditures of competitors or to spend in proportion to market share.

Sometimes only one competitor is followed.

d) Budgeting by Task or Objectives:

The best approach for establishing the promotional budget is to determine the tasks or

objectives the promotional program must accomplish and then decide what they will cost. The
task method forces management to realistically define the goal of its promotional program. In

this method, the promotional budget is built up by adding up the costs of the individual

promotional tasks needed to reach the goal of entering a new territory.

3. Promotional mix- Elements

Advertising, sales promotion, and public relations are the mass communication tools available

to customers. As its name suggests, mass communication uses the same message for everyone

in an audience. The mass communicator trades off the advantage of personal selling, the

opportunity to tailor a message to each prospective customer, for the advantage of reaching

many people at a lower cost per person. Advertising is one of the most common tools

companies use to direct persuasive communication to target buyers and publics. Advertising

can be defined as follows:"Advertising is any paid form of non-personal presentation and

promotion of ideas, goods, or services by an identified sponsor." Advertisers include business

firms but also museums, charitable organizations, and government agencies that advertise to

various target publics. Ads are a cost-effective way to disseminate messages, whether to build

brand preference or to educate a nation's people to avoid hard drugs.

Advertising Objectives:

The purpose of advertising is to sell something - a good, service, idea, person, or event - now or

later. This goal is reached by setting specific objectives that can be expressed in individual

advertisements that are incorporated into an advertising campaign. Thus, the immediate

objective of an advertisement may be more to target customers to the next stage in the

hierarchy, say, from awareness to interest.

Persuasive advertising becomes important in the competitive stage, where a company's

objective is to build selective demand for a particular brand. Some persuasive advertising has

moved into the category of comparative advertising, which seeks to establish the superiority of

one brand through specific comparison of one or more attributes with one or more brands in

the product class.

Reminder Advertising::- A very important form of advertising is reinforcement advertising,

which

seeks to assure related purchasers that they have made the right choice.

4. Major decision in developing advertising program

There are several major decisions involved in developing an advertising program. Some of the

key decisions include:

Setting Advertising Objectives: The first step is to clearly define the objectives of the advertising

campaign. This could be to increase brand awareness, generate leads, drive sales, or change

consumer perceptions.

Target Audience: Identifying the target audience is crucial for developing effective advertising

messages. Understanding the demographics, psychographics, and behaviors of the target

market helps in creating messages that resonate with them.

Budget Allocation: Determining the budget for the advertising campaign is essential. The

budget should align with the advertising objectives and be sufficient to reach the target

audience effectively.
Message and Creative Strategy: Developing the right message and creative strategy is key to

capturing the attention of the target audience. The message should be clear, compelling, and

aligned with the brand positioning.

Media Planning: Selecting the right media channels to reach the target audience is crucial. This

involves choosing between traditional media (TV, radio, print) and digital media (social media,

online advertising) based on where the target audience is most active.

Campaign Execution: Implementing the advertising campaign involves creating and placing ads,

monitoring performance, and making adjustments as needed to optimize results.

Evaluation and Measurement: Tracking and measuring the effectiveness of the advertising

campaign is important to determine if it met the objectives. Key performance indicators (KPIs)

such as reach, engagement, conversions, and return on investment (ROI) should be monitored .

5. Factors determining media selection.

i) Objective of the advertisement:

The purpose of a particular advertisement and the goals of the entire campaign influence which

media to use. For example, if an advertiser wants to induce quick action, newspaper or radio

may be the medium to use.

ii) Audience Coverage:

The audience reached by the medium should match the geographic area in which the product is

distributed. Furthermore, the selected medium should reach the desired types of prospects
with a minimum of wasted coverage. Wasted coverage occurs when an advertisement reaches

people who are not prospects for the product.

iii) Requirements of the message:

The medium should fit the message. For example, food products, floor coverings, and apparel

are best presented visually. If the advertiser can use a very brief message, as is common with

reminder advertising, billboards may be a suitable medium.

iv) Media Cost:

The cost of each medium should be considered in relation to the amount of funds available to

pay for it and its reach or circulation.

6. Types of Advertising media .

i) (Indoor Advertising) Broadcast media:

Indoor advertising includes television, radio, slides, and cinema as media to disseminate

advertising messages. Television combines motion, sound, and special visual effects. Products

can be demonstrated as well as described on it. It offers wide geographic coverage and

flexibility when the message can be presented. However, television is a relatively expensive

medium. Radio is the most effective media that has enjoyed a rebirth as an advertising and

cultural medium. When interest in television increased, radio audiences (especially for national

network radio) declined so dramatically that some people predicted radio's demise. Radio

makes only an audio impression, relying entirely on the listener's ability to retain information

heard and not seen. Also, audience attention is often at a low level because radio is frequently
used as background for working, studying, or some other activity. TV slides and cinemas reach a

relatively small audience but can be effective, particularly in advertising to local shops.

ii) Press advertising

Press advertising includes advertising in newspapers, magazines, trade journals, and business

directories. The newspaper is the most popular form of advertising. It constitutes a valuable

medium for disseminating news and molding public opinions and therefore plays an important

role in social and political life. As an advertising medium, the newspaper is flexible and timely.

Advertising can be inserted or canceled on very short notice, and can vary in size from small

classifieds to multiple pages. Pages can be added or dropped, so newspapers are not limited.

Newspapers can be used to reach an entire city, or, where regional editions are offered,

selected areas.

iii) Direct Mail:

Direct mail, also known as direct marketing, is the most personal and selective of all media.

Printing and postage fees make the cost of direct mail per person reached quite high compared

with other media. However, because direct mail.

iv) Outdoor Advertising:

It will be realized that press advertising is generally read when the subscribed reader are

indoors. As against this, there are other media which are noticed by persons when they are

outdoors. This media includes billboards, posters, vehicular advertising, sky advertising, and

electrical signs. But because it is seen by people "on the go," outdoor advertising is appropriate
only for brief messages. Historically, the cigarette and tobacco industries have been the

heaviest advertisers, in part because they are banned from the broadcast media. However, the

effectiveness of billboards for reminder advertising has also made them attractive to other

industries.

C. Sales promotion.

1. Meaning of sales promotion.

Sales promotion is a key ingredient in a marketing campaign. It can be defined as follows:

"Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed

to stimulate quicker and/or greater purchase of particular products by consumers or the trade."

In other words, sales promotion is a demand-stimulating device designed to supplement

advertising and facilitate personal selling.

2. Types of Sales promotion

- Cash rebates Common sales promotion techniques used by a company based on the target

audience are as follows:

i) Business users or households:

For business users, the most common sales promotion is a trade discount in the form of a

reduced price or free merchandise. Some other common promotion techniques used are:

Coupons, premium, free samples, contests, point of purchase displays product

demonstrations ,trade exhibitions ,advertising specialties etc.

ii) Middlemen:

Trade associations in industries as diverse as shoes, travel, and furniture organize trade shows

that are open only to wholesalers and retailers. Many producers sponsor and spend

considerable time and money to train the sales force of their wholesalers and retailers.

D. Public Relations

1. Meaning of public relation.

Public is any group that has an actual or potential interest in or impact on a company's ability to

achieve its objectives. Public relations (PR) involve a variety of programs designed to promote

and/or protect a company's image or its individual products.

Public relations are a management tool designed to favorably influence attitudes toward an

organization, its products, and its policies. It is an often-overlooked form of promotion.

2. Activities of public relations.

Planning, implementing, and evaluating should be applied to their performance the same way

it is applied to advertising, sales promotion, and personal selling. Publicity is any

communication about an organization, its products, or through the media that is not paid for by

the organization. Publicity usually the form of a news story appearing in a mass medium or an

endorsement provided by an individual, either informally or in a speech or interview. There are

means for gaining good publicity:

i) Prepare a story (called a news release) and circulate it to the media. The intention is for the

selected newspapers, television stations, or other media to report the information as news.

ii) Personal communication with a group. A press conference will draw media representatives if

they feel the subject or speaker has news value. Company tours and speeches to civic or

professional groups are other forms of individual to group communications.

iii) One on one personal communication often called lobbying. Companies lobby legislators or

other powerful people in an attempt to influence their opinions, and subsequently their

decisions. Publicity can help to accomplish any communication objective. It can be used to

announce new products, publicize new policies, or report financial performance; if the

message, person, or group, or event is viewed by the media as news worthy. Public relation

departments perform the following five activities, not all of which support marketing objectives.

- Press relations: Presenting news and information about the organization in the most positive

light.

- Product publicity: Sponsoring various efforts to publicize specific products.

- Corporate Communication: Promoting understanding of the organization with internal and

external communications.

- Dealing with legislators and government officials to promote or lobby for beneficial legislation

and regulation.
- Counseling: Advising management about public issues and company positions and image. This

includes advising in the event of a product mishap when public confidence in a product is

shaken.

E. Salesmanship/ Personal selling.

1. Meaning of personal selling .

Personal selling is the individual, personal communication of information, in contrast to the

mass, impersonal communication of advertising, sales promotion, and other promotional tools.

This means that personal selling is more flexible than these other tools. Salespeople can tailor

their presentation to fit the needs and behavior of individual customers. Salespeople can see

their customer's reaction to a particular sales approach and make adjustments on the spot.

Types of Salesman.

The types of selling jobs and the activities involved in them cover a wide range. One way of

classifying sales jobs is based on the creative selling skills required, from simple to complex.

Robert McCurry classified sales jobs as follows:

1.Driver Salesperson: In this job, the salesperson primarily delivers the product, for example,

soft drinks or fuel oil. The selling responsibilities are secondary; few of these people originate

sales.

2. Inside Order Taker: This is a position in which the salesperson takes orders at the seller's

place of business, for example, a retail clerk standing behind the counter or a telephone

representative at a catalog retailer.

3.Missionary Salesperson:

This type of sales job is intended to build goodwill, perform promotional activities, and provide

information and other services for customers. This salesperson is not expected to solicit an

order.

4. Sales Engineer:

In this position, the major emphasis is on the salesperson's ability to explain products to a

prospective customer and also to adapt the product to the particular needs. The products

involved here typically are complex, technically sophisticated items. A sales engineer usually

provides technical support and works with another sales representative who calls regularly on a

given account.

5.Creative Salesperson - An Order Getter:

This involves the creative selling of goods and intangibles, primarily services but also social

causes and ideas (e.g., anti-drug campaigns, smoking cessation programs, obeying speed limits,

etc.). This category contains the most complex, difficult selling jobs, especially the creative

selling of intangibles because you can't see, touch, taste, or smell them.

b) Changing pattern in personal selling.

Traditionally, personal selling is a face-to face, one -on-one situation between a sales person

and a buyer. This situation is existed both in retail sales involving ultimate consumers and also

in business-to-business transaction. In recent years, however, some very different selling

patterns have emerged. These new pattern reflect a growing purchasing expertise among
consumers and business buyers, which, in turn, has fostered a growing professionalism in

personal selling;

i) Setting Centers- Team setting

To match the expertise on the buying side, especially in business markets, a growing number of

firms on the selling side have adapted the organizational concept of a selling center. A selling

center is a group of people representing a sales department as well as other functional areas in

a firm such as finance' Team selling is expensive, and is used there is a potential for high sales

volume and profit.

{i) system setting

Concept of systems selling means selling a total package of related goods and a system- to solve

a customer's problem. The idea is that the system-the total package of goods and services —

will satisfy the buyer's needs more effectively than selling individual products separately.

iii) Relationship setting

Developing a mutually beneficial relationship with selected customers over time is relationship

selling. It may be an extension of team selling, or it may be developed by individual's sales

representative in their dealings with customers.

The following behavioral traits in selling can be effective trust builder .

• Candor Be truthful in what you say

• Dependability Behave in a reliable manner

• Competence- Display your ability, knowledge and resources

• Customer orientation — Place you customers' needs and interest on a par with your own.

• Liability — Seek a similarity of personality between you and the customers, and commonality

of interest and goals.

iv) Telemarketing

The telemarketing is the innovative use of telecommunications equipment and systems as part

of the "going to customer category of personal selling.

C). Process of personal selling.

The personal selling process is a logical sequence of four steps that a salesperson takes in

dealing with prospective buyers. This process leads, hopefully, to some desired customer action

and ends with a follow-up to ensure customer satisfaction. The desired action usually is to get

the customer to buy a good or a service. The four-step process may be illustrated as follows:

A) Prospecting

The first step in the personal selling process is called prospecting. It consists of first identifying

potential customers and then qualifying them—that is, determining whether they have the

necessary purchasing power, authority, and willingness to buy.

Identifying prospective customers:

A representative may start the identification process by drawing up a profile of the ideal

prospect. Records of past and current customers can help determine characteristics of an ideal

prospect. From this profile, a seller can start a list of potential customers.

Qualifying the prospect:

After identifying prospective customers, a seller should qualify them—that is, determine

whether they have the necessary willingness, purchasing power, and authority to buy. To

determine willingness to buy, a seller can seek information about a prospect's relationship with

its present suppliers. To determine a prospect's financial ability to buy, a seller can refer to

credit ratings. For household consumers or small businesses in an area, a seller can get

information from a local credit bureau.

B) Pre-approach to Individual Prospects

Before calling on prospects, salespeople should learn all they can about the persons or

companies to whom they hope to sell. This pre-approach in selling might include finding out

what products the prospects are now using and their

reaction to these products.

C) Presenting the Sates Message

With the appropriate Pre approach information, a sales person can design a sales presentation

that will attract the prospect's attention. The sales person will then try to hold the prospects

interest while building a desire for the product, and when the time is right, attempt to stimulate

action by closing the sale. Attract Attention –The Approach The first task in a sales presentation
is to attract the prospect's attention generate curiosity .In cases when the prospect is aware of

a need and is seeking solution; simply stating the seller's company and product will be enough

However, more creativity often is required Hold interest and Arouse desire . After attraction

the prospect's attention, the sales representative can hold it and stimulate a desire for the

product with a sales talk; there is no common pattern here.

D) Meet Objections and Close the Sate

After exploring the product and its benefits, a sales person should try to closes the sale-that is,

obtain the customer's agreement to buy, (Achieving the desired action). A sales person should

encourage buyers to state their objections.

E) Post Sale Services

An effective selling job does not end when the order is written up. The final stage Of a selling

process is a series of Post sale activities. That can build customer good will and lay the

groundwork for future business.

F. Direct Marketing.

1. Meaning of direct marketing.

Direct marketing occurs when the "producer" connects with the end user. The end user may be

a consumer or a business. Direct marketing applies to product and service-oriented businesses,

and to nonprofit organizations. In all situations, there is no intermediary involved. Direct

marketing describes this interactive communication with the end user.

2. Types of direct marketing.

I). Internet Marketing

The Internet has revolutionized direct marketing for promoting the sale of products and

services to targeted audiences. Access to the Internet provides users with services in four basic

areas: The Internet makes direct marketing easier, more targeted, more responsive, more

affordable, and potentially more profitable than ever.

II) Face-to-Face Selling

The most traditional direct marketing involves the in-house sales force personally contacting

potential and established consumers.

III) Direct Mail

Direct mail is described as sending information about a special offer, product or sale

announcement, service reminder, or some other type of communication to a person at a

particular street or electronic address. Historically direct mail has existed in the form of printed

materials, but CDs, audio tapes, video tapes, fax mail, email, and voice mail are also used in

direct mail campaigns.

IV) Catalogs

Product catalogs are another version of direct mail where the catalogs are the communication

tool. The most common use of this approach involves featuring a variety of products that target

the needs of a specific audience who have shown a propensity to order from catalogs
V) Telemarketing

The process of contacting people on a qualified list to sell services over the phone has grown in

popularity to the point that the average household receives 19 telemarketing calls each year.

Successful telemarketing campaigns depend on a good coll.

VI) Direct-Response Advertising

Direct-response advertising is communicating with potential buyers 6.8 through television,

radio, magazines, and newspapers. The prospective consumer watches, hears, or reads about

the product or service and initiates a call to a toll-free number to place their order.

VII) Kiosk Marketing

Customer order machines, versus vending machines that actually provide products, are another

form of direct marketing. Examples are:

Your bank's automatic teller machines (ATMs) placed in convenient and high traffic areas are

another example of kiosk marketing. A combination of these direct marketing techniques may

offer the optimal revenue generating solution.

G. Meaning of Strategic Planning.

It is an organization's process of defining its strategy or direction, and making decisions on allocating its

resources to attain strategic goals. Furthermore, it may also extend to control mechanisms for guiding

the implementation of the strategy. Strategic planning became prominent in corporations during the

1960s and remains an important aspect of strategic management.

A . Strategic Planning Process

A. Clarify your vision, mission, and values. The first step of the strategic planning process is

understanding your organization’s core elements: vision, mission, and values.

B. conduct an environmental scan: this involves a long-term SWOT analysis, evaluating

your organization’s strengths, weaknesses, opportunities, and threats.

C. define strategic priorities: our organization’s mission, vision, values, and environmental

scan serve as a lens to identify top priorities

D. develop goals and metrics

Next, you establish goals and metrics to reflect your strategic priorities. Purpose-driven, long-

term, actionable strategic planning goals should flow down through the organization, with

lower-level goals contributing to higher-level ones.

E. Derive a strategic plan

The next step of the strategic planning process gets down to the nitty-gritty “how” —

developing a clear, practical strategic plan for bridging the gap between now and the future.

Write and communicate your strategic plan

Writing and communicating your strategic plan involves everyone, ensuring each team is on the

same page.

F. implement, monitor, and revise performance

Finally, it’s time to implement your strategic plan, making sure it's up to date, creating a

persistent, always-on strategy that doesn't lag behind.

B. Strategic marketing planning process

The success of your business depends on your marketing plan. This plan establishes your marketing

strategy, and depending on the needs of your business, this plan will change over time

1. Set goals and objectives. Before you create a marketing plan, you must have a purpose for it. This

purpose is based on the long-term goals that guide all of your efforts.

2. Analyze your situation. A Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis can give

you a snapshot of the situations you face as you market your business.

3. Map your messages. Your messaging is part of your marketing strategy and your brand. To create a

message map, start by writing an XYZ statement or boilerplate that contains basic information about

your business.

4. Live out your mission. Your business has a set of values that guides it. Creating a mission statement

outlines these values and ensures that the people who interact with your business are aware of them.

5. Outline your tactics. A successful marketing strategy is made up of many different tactics, including

both online and offline options. Your goals, target audience, and industry factor into this decision.

6. Make a timeline. Based on the goals and objectives you’ve set for your business, create a timeline

that will determine what will be completed and when.

7. Mind your budget. Creating a budget for your marketing strategies can inform your efforts by

determining what you can and can’t afford.

8. Divide and conquer. Once you’ve created a timeline for the creation and distribution of your

marketing materials, assign these tasks to members of your staff.

9. Measure up. Measuring the effectiveness of your marketing strategies will inform your current plan

and your future efforts.

10. Stay current. Your marketing goals and needs will change over time. Ideally, you should revisit your

marketing plan once a year and make adjustments as necessary.

C.Ansoff’s Product/Market Expansion Grid .

The Ansoff matrix is a strategic planning tool that provides a framework to help executives, senior

managers, and marketers devise strategies for future business growth.

The Product Market Expansion Grid contain four main suggested strategies: Market Penetration,

Market Development, Product Development, and Diversification.

Market penetration.

Using a market penetration strategy, the organization tries to grow using its existing offerings

(products and services) in existing markets. In other words, it tries to increase its market share

in current market scenario.

Market development.
In a market development strategy, a firm tries to expand into new markets (geographies,

countries etc.) using its existing offerings and also, with minimal product/services development.

Product development

In a product development strategy, a company tries to create new products and services targeted

at its existing markets to achieve growth. This involves extending the product range available to

the firm's existing markets.

Diversification.

In diversification an organization tries to grow its market share by introducing new offerings in

new markets. It is the most risky strategy because both product and market development is

required.

D. Porter's generic strategies .

Describe how a company pursues competitive advantage across its chosen market scope. There

are three/four generic strategies, either lower cost, differentiated, or focus. A company chooses

to pursue one of two types of competitive advantage, either via lower costs than its competition

or by differentiating itself along dimensions valued by customers to command a higher price. A

company also chooses one of two types of scope, either focus (offering its products to selected

segments of the market) or industry-wide, offering its product across many market segments.

The generic strategy reflects the choices made regarding both the type of competitive
advantage and the scope. These are known as Porter's three generic strategies and can be

applied to any size or form of business.

Cost Leadership Strategy.

This strategy involves the firm winning market share by appealing to cost-conscious or price-

sensitive customers. This is achieved by having the lowest prices in the target market segment,

or at least the lowest price to value ratio (price compared to what customers receive).

Differentiate strategy

Differentiate the products/services in some way in order to compete successfully. A

differentiation strategy is appropriate where the target customer segment is not price-sensitive,

the market is competitive or saturated, customers have very specific needs which are possibly

under-served, and the firm has unique resources and capabilities which enable it to satisfy

these needs in ways that are difficult to copy.

Focus strategy

This dimension is not a separate strategy for big companies due to small market conditions. Big

companies which chose applying differentiation strategies may also choose to apply in

conjunction with focus strategies (either cost or differentiation). n the other hand, this is

definitely an appropriate strategy for small companies especially for those wanting to avoid

competition with big ones.

E. Boston Consulting Group

The Boston Consulting Group is a global management consulting firm and the world's leading

advisor on business strategy. We partner with clients from the private, public, and not-for-profit

sectors in all regions to identify their highest-value opportunities, address their most critical

challenges, and transform their enterprises. Founded in 1963, BCG is a private company with

more than 80 offices in 45 countries.

We seek to be agents of change—for our clients, our people, and society overall.

We are committed to: Creating competitive advantage through unique solutions, Building

capabilities and mobilizing organizations, Driving sustainable impact , Providing unparalleled

opportunities for personal growth , Succeeding together with passion and trust.

H. Meaning of MIS.

A marketing information system (MIS) is a management information system (MIS)

designed to support marketing decision making. It is as a "system in which marketing data

is formally gathered, stored, analyzed and distributed to managers in accordance with

their informational needs on a regular basis.

A). Components of MIS

The components of the marketing information system are an interconnected framework; that

interact with one another to continuously feed the marketing information system. So, they are

essential for the proper functioning of the marketing information system. And they are as

follows.
Internal Intelligence System:

This component of the marketing information system provides information to marketers from

the internal records of the company. Every information gathered by a company in its daily

operation is handy for the marketers.

Market Intelligence System.

This informs marketers about the current sitrep of the market. Hence, using this sitrep they will

know the necessary adjustment to make.

Marketing Research.

This component of marketing information involves more activeness than the aforementioned.

So, in an attempt to garner more details about a marketing environment or solve a brand

problem in the market.

Marketing Decision Support System.

These are applications that enable marketers to analyze the big data they have gathered from

other components of the marketing information system.

B). Process of Marketing Research

The basic steps used to conduct marketing research are :

Step 1: Define the Problem (or Opportunity)

There’s a saying in marketing research that a problem half defined is a problem half solved.
Step 2: Design the Research

The next step in the marketing research process is to do a research design. The research design

is your “plan of attack.” It outlines what data you are going to gather and from whom, how and

when you will collect the data, and how you will analyze it once it’s been obtained.

Step 3: Design the Data-Collection Forms

If the behavior of buyers is being formally observed, and a number of different researchers are

conducting observations, the data obviously need to be recorded on a standardized data-

collection form that’s either paper or electronic.

Step 4: Specify the Sample

A sample is a subset of potential buyers that are representative of your entire target market, or

population being studied.

Step 5: Collect the Data

As we have explained, primary marketing research data can be gathered in a number of ways.

Surveys, taking physical measurements, and observing people are just three of the ways

Step 6: Analyze the Data

This step involves analyzing the data to ensure it’s as accurate as possible. Once all the data is

collected, the researchers begin the data cleaning, which is the process of removing data that

have accidentally been duplicated (entered twice into the computer) or correcting data that

have obviously been recorded wrong.

Stage 7: Write the Research Report and Present Its Findings.

If you end up becoming a marketing professional and conducting a research study after you

graduate, hopefully you will do a great job putting the study together. You will have defined the

problem correctly, chosen the right sample, collected the data accurately, analyzed it, and your

findings will be sound.

I. Business Buying behavior

A) . Meaning and types of business buying behavior .

The business market consists of all business users, organization that buys goods and services for

one of the following purposes. To make other goods and services To resell to other business

users or to consumers and To conduct the organizations operations In the business market we

deal with both consumer products and business products.

Types of Buying behavior.

Searchers in organizational buying behavior have identified three classes of business buying

situations. The three buy classes are new-task buying; straight re buy, and modified re buy.

i) New-task buying: are involved in new task This is the most difficult and complex buying

situation because it is a first-time purchase of a major product. Typically more people buying

than in the other two situations because the risk is great. Information needs are high and the

evaluation of alternative is difficult because the decision makers have little experience with the

product.
ii) Straight re-buy: This is a routine, low involvement purchase with minimal information

needs and no great considerations of alternatives. These buying decision are made in the

purchasing department, usually from a predetermined list of acceptable suppliers.

iii) Modified re-buy: This buying situation is somewhere between the other two in terms of

time and people involved, information needed, and alternative considered.

b). Characteristics of business buying.

Buying behavior in the business market differs significantly from consumer behavior in several

ways. These differences stem from the producers, markets, and buyer ~ seller relationship in

business markets,

i) Direct Purchase: In the consumer market, consumers rarely buy directly from the producer

except in the case of services. In the business market, however, direct purchase by the business

user from the producer is quite common even for goods. This is especially when the order is

large and the buyer needs much technical assistance. From a seller's point of view, direct sale in

the business market is reasonable, especially when there are relatively few potential buyers,

they are big, or they are geographically concentrated.

ii) Nature of the relationship

Many business marketers take a broad view of exchanges. Rather than focus only on the

immediate customer they approach marketing as a value chain. roles of suppliers, producers,
distributors, and end value to the final product. This perspective leads to be all parties involved

in successfully bringing analyses on building and maintaining relationships.

iil) Frequency of purchase

In the business market, firms buy certain products very infrequently. Large installations are

purchased only once in many year. Small parts and materials to be used in the manufacture of a

product may be ordered on long term contracts, so that a selling opportunity exists as seldom

as once a year. Even standard operating supplies, such as office supplies or cleaning products,

may be bought only once in a month.

iii) Frequency of purchase

In the business market, firms buy certain products very infrequently. Large installations are

purchased only once in many year. Small parts and materials to be used in the manufacture of a

product may be ordered on long term contracts, so that a selling opportunity exists as seldom

as once a year. Even standard operating supplies, such as office supplies or cleaning products,

may be bought only once in a month.

iv) Size of order

The average business order is considerably larger than its counterpart in the consumer market.

This fact, coupled with the infrequency of purchase, spotlights the importance of each sale in

the business market.

v) Length of Negotiation in a business sale is usually much longer than in a consumer

transaction. Some reasons for extended negotiation are:

• Several executives participate in the buying decision

• The sale involves a large amount of money

• The business product is made to order and considerable discussion is required to establish the

specifications.

vi) Reciprocity Arrangements

Highly controversial business buying practice is reciprocity. The policy of "Ill buy from you if you

will buy from me". Traditionally, reciprocity was common among firms marketing homogeneous

basic business products (oil, steel, rubber, paper products, and chemicals).

vii) Demand for service

The user's desire for excellent service is a strong business buying motive that may determine

buying patterns. Frequently a firm's only differentiating features is its service because the

product itself is so standardized that it can be purchased from.

viii) Dependability of supply

Another business buying patterns is the user's insistence on an adequate quantity of uniform-

quality products. Variations on the quality of materials going into finished products can cause

considerable trouble for manufacturers. They may be faced with costly disruptions in their

production processes if the imperfections exceeds quality control limits. Adequate quantities

are as important as good quality.

ix) Leasing instead of buying a growing tendency among firms in the businesses market is

leasing business goods instead of buying them. In the past this practice was limited to large

equipment, packaging equipment and heavy construction equipment. Presently, industrial firms

are expanding leasing arrangements to include delivery trucks, automobile used by sales

people, machine tools, and other items that are generally less expensive than major

installations.

C. Buying Center: The Buying center one of the biggest challenges in business marketing is to

determine which individuals in the organizations play the various buying roles. That is, who

influences the buying decision, who determines product specifications, and who makes the

buying decision? In the business market these activities typically involve several people. In

other words, there are multiple buying influences, particularly in medium-sized and large firms.

Understanding the concept of a buying center is helpful in identifying the multiple buying

influences and understanding the buying process in business organizations.

PART II GROUP ASSIGNMENT

Lifebuoy soap product .

Marketing tries to meet and satisfy customer needs and wants. Consumer behavior studies how

individuals and groups select, buy, use and dispose goods, services, ideas and experiences to

satisfy needs. Customers (Earlier on) could be understood through daily experience of selling to

them Today, direct control with customers is limited.

Hence, marketing manager’s may rely on 7 O’s Framework A framework is developed to

understand consumer behavior by addressing various issues involved in a consumer behavior.

This frame work is popularly known as 7o’s framework and is used for basic understanding of

consumer behavior.

1.Occupation

Who is the Consumer?: This questions makes it easier to know about the consumer’s overall

profile in relation to geographic, psychographic ,demographic and factors. The geographic

factors

State the particular area to which the consumer belongs; Rural mostly but cater urban as well

Psychographic factors: Lead to the understanding of the consumer’s lifestyle often reflected in

their interest, activities and opinions of the consumer. Lifebuoy soap is being segmented based

on social class ( middle lower ,upper lowers, middle classes and upper classes). Demographic

factors

Enable the understanding of consumer’s age, income, sex, education, and occupation.

2. Object of purchase

What does the Consumer Buy?): It determines the product proposition which the consumer

purchases, i.e. the brand, product or product form.

Further, it will also identify the specification, color, size, type, variant, etc. that the

customer seeks to buy .

Brand name LIFEBUOY SOAP is a very strong brand of UNILEVER actual product.

In all varieties of soap, lifebuoys logo is of red color and lifebuoy is written in white color in its

logo

Lifebuoy total

Pack is of red color in which soap bar color is red with package size120 gm and 80gm

Lifebuoy nature

pack is of green color in which soap bar is also green color with package size120 gm and 90 gm

Lifebuoy care

pack is of blue color in which soap bar color is white with package size 120 gm and 90gm

Lifebuoy active fresh

pack is of yellow color and soap bar color is1 yellow with package size 90 gm Augmented

product

Lifebuoy body wash care

Lifebuoy body wash total

Lifebuoy hand wash care, classic, fresh and nature Lifebuoy uses all these colors to give a

correct impression of the product in the minds of the consumer.

Lifebuoy soaps classic hard red brick shape has been replaced with anew signature lifebuoy

shape. The new shape makes the bar easier to grip and use.

3. Objective

Why is Consumer Buying?): this answers the reason ‘why’ of buying and explains what benefits

the consumer expects the product or service to serve. This also explains what benefits the

consumer is seeking? It gives reason for the purchase of the product by the customer, in terms

of the needs satisfied or benefits expected from the product. Affordable and accessible hygiene

and health solution

Lifebuoy satisfies Safety needs ( as it removes germs from hands and saves us from spreading

the number of diseases) and the

Social needs as one cannot go to work having dirty hands or lack of overall personal hygiene, so

one use soap to wash his hands and clean them.

4 . Occasion

When do they buy / how often do they buy and use. This explains the buying frequency (how

often) and the occasion on which the customer tend to buy the product or services for the

desired benefit.

Customers buy and use lifebuoy repetitively because it is common Washing with soaps before

breakfast, lunch and dinner, after going to toilet and whilst having a bath or shower.
Health condition ( like a period of corona virus and any other disease related to bacteria and

germ ); Gifts for adult and children.

5. Outlet (Where do they Buy?)

It identifies the types and the nature of outlet from where the customers makes a choice. The

type of outlet can be it a retail shop, wholesaler’s shop, grocery store, online platform i.e. app

or website, departmental store or any other location from where the customer makes the

buying decision.

Lifebuoy soap is available at almost every departmental and general store .The distribution is

very good and it occupies a prominent shelf space at store.

Unilever is focusing on the indirect marketing channels where they sell lifebuoy soap through

distributor to wholesaler’s, forwarded to retailers, and finally to the end user and also use

media and other trade incentives to promote its product.

6. Operations (How do they Buy?):

It determines the background information which the consumer collects from various

sources, before making the purchase Social missions like: hand washing behavior change

programs

skill development and partnership; advocacy

Lifebuoy employees goes to the rural area and there they educate the rural people about the

effects of hygiene on the health.

Provide family and personal hygiene through public education program

Global Hand washing Day let the Lifebuoy built the internal relationship with the potential

customers and restore its brand name and creditability as “high class

7. Organization

(Who is Involved?): It determines the management of the sources of information which

influence the buying decision of the consumer; advertising , sales people ; Individuals, entire

family, clinics ,pharmacies , Executive director, home and personal care

Executive director, supply chain . Organizations: UNICEF ,health centers Thus, marketers try to

understand consumer psychology with respect to their purchase decisions and identify

the factors influencing consumer behavior.

PART III GROUP ASSIGNMENT

Marketing begin and end with the consumers ” means that the entire process of

marketing, from the initial stage of identifying consumer needs and preferences to the

final stage of delivering products or services to meet those needs, is ultimately focused

on the consumer. It emphasizes the importance of understanding and meeting the

needs of the target audience throughout the marketing process, from product

development and promotion to sales and customer satisfaction. This approach places

the consumer at the center of all marketing efforts, highlighting the significance of

building and maintaining strong relationships with customers.

Marketing is an activity in which a company or business are making people aware of their

products and making sure that the products are available to be bought. It is the starting point of

a business in promoting their goods and services to the consumers. There are plenty of aspects

to be considered before a company produce a good or service. But as what the title says, we

can conclude that consumer is the most important matter to be considered in the marketing

process. Why? These are the following reasons. First, consumers are the one who

will be the beneficiaries of the products and services accompany is promoting.

Marketing’s purpose is to catch the attention of customers by providing products which are

very beneficial to them. Second, the type of product the company will produce depends

upon the necessities and choices of the consumers have different perspective when it

comes to buying products. They may have set of qualities and prices to consider before buying

a product, so a company’s role is to produce a product that can be patronized by all consumers

in terms of quality and price. Third, there are many businesses that promote goods

and services using different marketing strategies that might attract the consumers to buy

their product. A company should know the different marketing strategies and techniques to

attract consumers and make them choose the product they are selling instead of other

business’ products. After considering the needs and perspectives of consumers, the marketing

process will move on to the next level, which is creating a product that fits the overall

characteristics the consumers are looking for. The company will produce a product using the

information they have found out, may it be on the quality of materials to be used that also fits

the price the consumers also consider and the number of products to be produced depending

upon the length of time the consumers will need the product. During the process, the company
can add more enticing features and qualities for the product to be more

attractive. After the production, the next level is to have a trial to check the finish

product’s durability and quality. Other company promotes their new product by having free

tastes when it is a food product, and freebies when they are objects and other

tangible products. Lastly, when the product is effectively promoted, the consumers cannot buy

the new products that completely fits their needs, tastes, perspectives and choices.

All in all, marketing is a process that really focuses on the consumers’ choices and the

statement, marketing really begins and ends with the consumers.

Summary

The introduction to key marketing topics covers essential components such as place mix,

advertising, sales promotion, public relations, salesmanship, direct marketing, strategic

planning, MIS (Management Information Systems), and business buying behavior. Each of these

elements plays a crucial role in shaping a company's marketing strategy and influencing

consumer behavior. Understanding these concepts is vital for businesses to effectively reach

their target market, promote their products or services, stimulate sales, manage their

reputation, persuade customers to make purchases, engage in direct marketing efforts, plan

strategically, utilize data for decision-making, and cater to the needs of business customers. By

mastering these topics, companies can develop successful marketing strategies that drive

growth and competitiveness in the marketplace.

 Reference :1. Tewodros Wuhib Principle of Marketing Book ( 2010 ).

Principles of Marketing Eighteen Edition Philip Kotler Gary Armystrong .

Marketing management .

ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

Course Title : Principle of Marketing .

Group Assignment .

Country :London

Product :Life Buoy .

Member’s Name : ID NO.

1 Abdisa Mohamed -------------

2.Abdurahman Tofiq.-----------

3. Ayano Bado ---------------

4. Ashenaf Fetensa -----------

5. Beshir Gishe .-----------------

Submitted to : Dr. Tewodros Wuhib .

Submitted date :April 11,2024.