Week 2

Objective and Principles of

Marketing
 Explain why ‘ Marketing Matters’ to business
 What is Marketing
 List and explain the 4 Ps of Marketing
 Define market segmentation and explain it’s
importance
 Explain the importance of the promotion mix:
Advertising, Publicity, Personal Selling, Sales
Promotion
Put Your Phones, Laptops and
Tablets in your bag

I will give you 5 minutes – and try to

draw the Apple Logo – let’s see if
you can remember it
 A logo is an important part of your company’s brand
and makes a significant impact on a company’s
public perception.
 FACT: Logo is one of the most important branding
investments a business can make
 Marketing: “the activity, set of
institutions, and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society at
large”
 Global Marketing: The scope of activities
outside the home market
How you market your business determines if the company will be
successful or not. It is a tool used to create demand, relevance,
reputation, competition and much more. Without it, your
business is likely to close down due to lack of sales.
Reasons why you need marketing:
1.Marketing is a way to engage customers
2.Helps build and maintain a company’s reputation
3.Helps build a relationship between a business and a
customer
4.Marketing is a communication channel used to inform
customers
5.Helps boost sales
Product
A product is a good or service that a business provides for sale to
their target market. A product should have a design, quality,
packaging, features, after sales service, and customer service
should be considered.
 What does the customer want from the product / service?

 How and where will the customer use it?

 What does it look like?

 What color(s), size(s) should it be?

 How is it branded?

 How is it different versus your competition?

Place
This is when it comes to location, distribution and ways of delivering the product to the
customer. This can include the location of your business, distributors, store front,
internet.
 Where do the buyers look for your product or service?

 If they look in a store – where? A specialist boutique store? A supermarket?

Online? Direct? Via catalog?
 What do your competitors do? How can you learn from them or be different from
them?

Promotion
How you communicate the value and the product benefits to your customers and the market.

 Where and when can you get your marketing messages across to your target
market?
 How will you reach your audience? Advertising online, in the press, TV, on radio,
or on billboards? Social Media? On the internet
 When is the best time to promote? What season?

 How do your competitors do their promotions?

Price
Price is the amount of money that customers have to pay to purchase your product or
service

 What is the value of the product or service to the buyer?

 Is the customer price sensitive? What if you decrease in price – will you
increase market share?
 What discounts should be offered to trade customers, or specific segments of
your market?
 How does your pricing compare with your competitors?
RODUCT
 Pepsi cold drink is the main product of Pepsi Co.
 Pepsi drinks are mainly carbonated beverages, fruit
Juices, snacks, etc.
 Other pop drinks are Mountain Dew & 7up
 Lays, Cheetos
 Lipton Tea and Tropicana Juices
PRICE

 Pepsi products are priced based on the demand of

the customers
 Priced based on competition
PLACE
 Pepsi is worldwide
 Sold in every general or super store, theatres,
restaurants, vending machines, stadiums, etc.
 Distribution – Manufacturer – Wholesaler – Retailer -
Consumer
PROMOTION
 Pepsi mainly targets its food and beverage to the
youth and family
 Promote using famous movie starts – so people can
easily relate
 Use all media channels like TV, print, outdoor, online
 Sponsors of global events like World Cups, Cricket,
Music events, etc.
 They also target – Lipton is marketed to the higher
end customer. Tropicana to the fitness oriented
customers
Michael Jackson – Pepsi

Britney Spears, Beyonce, Pink &

Enrique Inglesias - Pepsi
 20 minutes to come up with the 4P’s of the following
Companies:

 Apple
 Starbucks
 Tim Hortons
 Playstation
Types of segmentation methods
 Demographic segmentation
 Psychographic segmentation
 Behavior segmentation
 Benefit segmentation
Global Market Segmentation
 All customers are not alike
 Target Market: Specific group of people the
product/service is being marketed to
 Hospitality and Travel marketers must aim at
specific markets to achieve higher returns and not
waste marketing dollars and resource's

 TALK ABOUT SALES OFFICE SEGMENTATION

 Based on measurable population characteristics
 Age
 Income
 Gender
 Age distribution
 Education
 Occupation
 Generally, national income is the most important
variable
 PSYCHOGRAPHIC SEGMENTATION
 Based on attitudes, values and lifestyle
 People have different interests, attitudes and traits.
 For example, some people really care about the environment
and some people don’t.
 It occurs when you break your market down along these
interest and attitudes so you can market the appropriate
product to each segment of the market
 Focus on whether people purchase a product or not, how much, and
how often they use it
 User status
 80/2 Rule or Law of Disproportionality or Pareto Principle – 80%
of Sales Come from 20% of clients

7-24
 Based on understanding the problem a product solves, the benefit
it offers, or the issue it addresses
 For example – Toothpaste – Some of the benefits users expect
include reduce sensitivity, teeth whitening, tartar control, cavity
protection and fresh breath.
 The promotional mix is the blend of different ways and tools of
communication that a company uses to present a product or
service to the target customers. EFFECTIVE promotion is very
important part of the marketing mix, as it helps attract the
customers, persuade them to buy and generate loyalty.
 Some techniques in the promotion mix include: advertising,
public relations and personal selling.
 Advertising is often the most expensive part of promotion – as
it is paid messages delivered through media: radio, television,
newspapers, magazines, billboards and the internet.
 Public relations is the efforts to promote through media
exposure, press conferences, news announcements and
community involvement.
 Personal Selling is more interactive and a common practice
when they sell complex or expensive products that require
more assertive persuasion.
 Why marketing matters?
 What is marketing?
 The 4P’s
 Pepsi Co. 4P’s
 Market Segmentation
 The importance of the Promotion Mix – Advertising, Publicity,
Personal Selling, Sales Promotion

1-28