Principles of Marketing


Marketing Mix Level 2 Actual Product: All
cameras capture memories. The
Marketing Mix- The marketing mix aim is to ensure that your potential
principles (also known as the 4 P’s.) are customers purchase your one. The
used by business as tools to assist them in strategy at this level involves
pursuing their objectives organizations branding, adding
features and benefits to ensure that
Extended Marketing Mix their product offers a differential
advantage from their competitors.
• Price
 Level 3: Augmented product:
• Product What additional non tangible
benefits can you offer?
• Place Competition at this level is based
• People around after sales service,
warranties, delivery and so on
• Promotion
We must remember that Marketing is
• Physical Environment fundamentally about providing the correct
bundle of benefits to the end user, hence
• Process the saying ‘Marketing is not about
The marketing mix principles are providing products or services it is
controllable variables, which have to be essentially about providing changing
carefully managed and must meet the benefits to the changing needs and
needs of the defined target group. demands of the customer’ (P.Tailor 7/00)

Marketing mix is apart of the Product Decisions

organizations planning process and  Product design – Will the design
consists of analyzing the following- be the selling point for the
 How will you design, package and organisation as we have seen with
add value to the product. the iMAC, the new VW Beetle or
 What pricing strategy is the Dyson vacuum cleaner.
appropriate to use Price strategies.  Product quality: Quality has to
 Where will the firm locate? Place consistent with other elements of
strategies. the marketing mix. A premium
based pricing strategy has to
 How will the firm promote its
reflect the quality a product offers.
product Promotion strategies.
 Product features: What features
PRODUCT STRATEGIES will you add that may increase the
benefit offered to your target
Kotler suggested that a product should
market? Will the organisation use a
be viewed in three levels.
discriminatory pricing policy for
 Level 1: Core Product. What is offering these additional benefits?
the core benefit your product  Branding: One of the most
offers?. Customers who purchase a important decisions a marketing
camera are buying more then just a manager can make is about
camera they are purchasing branding. The value of brands in
memories. today’s environment is
Principles of Marketing
phenomenal. Brands have the The prices a company sets for its
power of instant sales, they convey product and services must strike a balance
a message of confidence, quality between
and reliability to their target
• gaining acceptance with the target
market.
customers and making a profit for
Product design- Product design can be theorganisation.
defined as the idea generation, concept
development, testing and manufacturing or The first thing which we must define, is
implementation of a physical object or what is meant by price. Price is defined as:
service - “The amount in money for which
Product- Instruments that aim at something is offered for sale."
satisfaction of the prospective exchange A Pricing Strategy is defined as:
party’s needs
- A plan which determines the best
Examples: Product characteristics, options, (at the time of making) pricing
assortments, packaging, guarantees, decision.
quality, features, style, brand name, size &
packaging, services, warranties/guarantees, “The planning of prices, including the
returns & replacements setting of discounts, in considering items
such as the price of competitive products,
Brand Name- The brand name is often manufacturing and distribution costs, the
used interchangeably within "brand", firms growth and profitability, customer
although it is more correctly used to wants, and the elasticity of demand.”
specifically denote written or spoken
linguistic elements of any product. When setting prices we must consider:

- In this context a "brand name" constitutes  Whether to discount or not.

a type of trademark, if the brand name  The price that the competition
exclusively identifies the brand owner as charges.
the commercial source of products or  The cost of providing the product
services or service.
 The company’s market position
e.g. is it a market leader.
PRICE STRATEGIES  The type and nature of demand e.g.
if an increase or a decrease in price
Marketing is defined as:
will effect amounts purchased.
“The management process responsible  The market segments we are
for identifying, anticipating and satisfying seeking to attract.
customer requirements profitably.”  It must be remembered, that price
is a key element in the marketing
The key words in the definition in
mix because for a profit motivated
relation to the Pricing Policy are:
company, it relates directly to the
• Customer Requirements. total revenue, and ultimately the
• Profitability. profit of the business
The key determinants of pricing
decisions are:
Principles of Marketing
 Organisational and Marketing
objectives
 Pricing objectives
 Costs
 Other marketing mix variables
 Legal and regulatory issues
 Competition Promotion Strategies:
 Buyers perceptions
A successful product or service means
 Consideration of intermediaries
nothing unless the benefit of such a service
(retailers, wholesalers)
can be communicated clearly to the target
Pricing Strategies: market. An organisations promotional
strategy can consist of:
1. Quantity or Trade Discounts
Quantity discounts: Deductions from • Advertising: Is any non personal
a seller’s list price that are offered to paid form of communication using
encourage customers to buy in bulk any form of mass media.
Trade discounts: Reductions from the • Public relations: Involves
list price offered to buyers in payment developing positive relationships
for marketing functions that they will with the organisation media public.
perform The art of good public relations is
2. Cash Discount: A deduction granted to not only to obtain favorable
buyers for paying by cash or within a publicity within the media, but it is
specified time. They are usually also involves being able to handle
calculated on a net amount due after successfully negative attention.
first deducting trade and quantity • Sales promotion: Commonly used
discounts from the base price. to obtain an increase in sales short
3. Flexible Pricing Strategy: With a term. Could involve using money
flexible – price strategy, similar off coupons or special offers.
customers may each pay a different • Personal selling: Selling a product
price when buying similar quantities of service one to one.
a product. • Direct Mail: Is the sending of
4. Price Lining- Involves selecting a publicity material to a named
limited number of prices at which a person within an organisation.
business will sell related products. There has been a massive growth
5. Leader Pricing- Temporary cutting of in direct mail campaigns over the
prices on a few items to attract last 5 years.
customers
Public Relations- Public relations are
where the communication is not directly
PROMOTION STRATEGIES paid for and includes press releases,
sponsorship deals, exhibitions,
Promotion- Promotion activities are meant
conferences, seminars or trade fairs and
to communicate & persuade the target
events.
market to buy the company’s products
Word of mouth publicity
Principles of Marketing
Word of mouth is a reference to the Point of sales (POS) or checkout refers to
passing of information from person to both a checkout counter in a shop, and the
person. location where a transaction occurs
Originally the term referred specifically Push and Pull Strategy
to oral communication but now includes
Push strategy- A push strategy is where
any type of human communication, such as
the manufacturer concentrates some of
face to face, telephone, email, and text
their marketing effort on promoting their
messaging
product to retailers to convince them to
Word of mouth is any apparently stock the product.
informal communication about the product
A combination of promotional mix
by ordinary individuals, satisfied
strategies are used at this stage aimed at the
customers or people specifically engaged
retailer including personal selling, and
to create word of mouth momentum.
direct mail.
Message Strategy
The product is pushed onto the retailer,
• What message are you trying to hence the name push.
put across to your target audience?
Pull strategy- A pull strategy is based
• How will you deliver that
around the manufacturer promoting their
message? Will it be through the
product amongst the target market to create
appropriate use of branding?
demand.
• Logos or slogan design?
• The message should reinforce the Consumers pull the product through the
benefit of the product and should distribution channel forcing the wholesaler
also help the company in and retailer to stock it, hence the name pull
developing the positioning strategy strategy.
of the product
Organizations tend to use both push and
Media Strategy pull strategies to create demand from
retailers and consumers.
Media strategy refers to how the
organisation is going to deliver their
message.
• What aspects of the promotional
mix will the company use to
deliver their message strategy.
• Where will they promote?
PLACE STRATEGIES
• Clearly the company must take
into account the readership and Place- The fourth “P” in the Marketing
general behaviour of their target Mix has been largely neglected
audience before they select their
media strategy. But this is changing....Marketing Channel
• What newspapers do their target Strategy has Become Critically Important
for Most Businesses
market read?
• What TV programmes do they Marketing Channel Strategy is Growing in
watch? Importance. Why?
Principles of Marketing
Five Reasons: 4. Increasing Role and Usefulness of
Technology
1. Search for Sustainable
 Firms that make effective use of these
Competitive Advantage
technologies in their channel strategy
2. Growing Power of Retailers in
can gain a substantial competitive
Marketing Channels
advantage
3. The Need to Reduce Distribution
5. The New Stress on Growth Strategy
Costs
4. The Increased Role and Power of
Technology
5. The New Stress on Growth

1. The Search for Sustainable

Competitive Advantage
 A competitive advantage that cannot be
quickly and easilycopied by
competitors
 Superior Marketing Channel Strategy
Channels of Distribution
is More Difficult for Competitors to
Copy Because: Channel System may be direct or
 Channel Strategy is Long Term indirect
 Requires a Channel Structure
Some reasons for choosing direct channels:
 Depends on Relationships and
People  Greater control
 Requires Effective  Lower cost
Interorganizational Management  Internet makes direct
2. Growing Power of Retailers in distribution easier
Marketing Channels  Direct contact with customer
Retailers needs
 Quicker response or change in
 Are Growing Larger marketing mix
 Enjoy Substantial Channel Power  Sustainable middlemen not
 Act as Buying Agents for available
Customers
 Often Operate on Low Price / Low Factors related to the use of Direct
Distribution:
 Margin Model
 Operate in Saturated Markets and Direct (producer to customer) distribution
Fight for Market Share is more common when:
• an aggressive personal selling
effort is required and/or when
3. The Need to Reduce Distribution customers need special technical
Costs service
 Distribution Costs Often Account for a • the product is primarily a service
Significant Percentage of the Final rather than a physical good
Price of Products
Principles of Marketing
• when working with middlemen  Administered- Co-ordinates
would make it difficult to maintain distribution activities and Gains
control of the marketing mix market power by dominating a
• the producer can perform channel
marketing functions more  Contractual- Independent
efficiently (economically) by itself producers, wholesalers and
retailers operate on a contract
Indirect Distribution
Horizontal Marketing System
 Goods may move through a set of
intermediaries. Most FMCG  Two or more unrelated companies join
companies follow this route together to pool resources and exploit
 The intermediary has a far better reach an emerging market opportunity
than the company  In-store banking in hotels, big
 The cost of operations of an stores
intermediary like a wholesaler / retailer  Retail outlets in petrol bunks
is shared with many businesses.  Coffee Day outlets in airports

Marketing Channel Systems Multi-channel Distribution

 Vertical:  Company uses different channels to
- Corporate reach / same or different market
- Administered segments
- Contractual  Most FMCG companies have
 Horizontal separate networks for retail market
 Multi-channel and institutions
 Pharma companies may use
Vertical Marketing System different channels to reach doctors,
 Various parties like producers, chemists and hospitals
wholesalers and retailers act as a
unified system to avoid conflicts
 Improves operating efficiency and Swot Analysis
marketing effectiveness
 3 types: How to conduct the SWOT Analysis?
 Corporate:- combine production
and distribute under single 1. Identify the Strengths of an internal
ownership and consumer perspective.
Principles of Marketing
 For examples could include have an overall picture of how
strengths relating to employees, your business runs and what issues
financial resources, business you need to address. You can then
location, cost advantages, and work out what issues are the most
competitiveness. important and what can be dealt
2. Identify the Weaknesses of an with later (i.e., develop four
internal and consumer perspective. prioritized lists).
 This also pertains to the business at
a disadvantage to others.
Weaknesses could include an
absence of new products or clients,
staff absenteeism, a lack of
intellectual property, declining Develop a strategy to address issues in the
market share, and distance to SWOT, such as:
market. Make sure you address the
weaknesses raised in your SWOT  How can we use our strengths to
analysis. The list of weaknesses take advantage of the opportunities
can indicate how your business has identified?
grown over time. When you  How can we use these strengths to
review the SWOT analysis after a overcome the threats identified?
year, you may notice that your  What do we need to do to
weaknesses have been resolved. overcome the identified
While you may find new weaknesses to take advantage of
weaknesses, the fact that the old the opportunities? How will we
ones are gone is a sign of progress. minimize our weaknesses to
3. Identify the Opportunity from an overcome the identified threats?
external perspective.
 Opportunities could include new TOWS Matrix is a way of taking a SWOT
technology, training programs, Analysis further, to provide actionable
partnerships, a diverse links between the different parts of your
marketplace, and government business and environment. It's all about the
change. four key factors, as follows:
4. Identify the Threats from an  Strengths/opportunities (SO): how
external perspective will you use your strengths to
 List external factors that could be a capitalize on your opportunities?
threat or cause a problem for your
 Weaknesses/opportunities (WO):
business. Examples of threats
which weaknesses do you need to
could include rising
overcome to exploit your
unemployment, increasing
opportunities? How will you
competition, higher interest rates,
overcome these weaknesses?
and global markets' uncertainty.
 Strengths/threats (ST): how will
5. Establish the priorities form the
you use your strengths to
SWOT
overcome external threats?
 When you have completed the
 Weaknesses/threats (WT): which
steps above, you will have four
weaknesses are especially
separate lists. Ideally, these lists
vulnerable to threats and need
can be displayed side-by-side to
attention?
Principles of Marketing
3. PESTLE/PESTEL: The acronym  What are the prevailing criteria of
stands for Political, Economic, Social, credit availability, how the credit
Technology, Environment, and Legal criteria affect the business?
 What the prevailing
PESTLE/ PESTEL reveals
unemployment rate? Will it be
opportunities and threats better than
easy to hire the desired staff
SWOT, the direction of business change,
required?
projects that will fail beyond your control,
 You can consider many other
and country, region, and market issues
through helping you create an objective factors according to the
view. The following should be taken into environment.
consideration in the conduct of PESTLE
Analysis
Political factors include government tax
policies and regulation; it may increase the
tax rate in a State and Country that may
affect business.
Government laws on competition in the
marketplace is another political factor, i.e.,
provide incentives to growing businesses
and cut down incentives to regular business Analysis, Planning,
like yours.
Implementation and Control
 Is there any expected Elections on
State and National Level and how
it shifts government policies?
 Who are the upcoming contenders
for power? What is their plan for
Business policy and regulation?
 What is the current and impending
legislative changes?
 What are the other political factors
and when they might change?
Economic Factors

 What is the current disposable Marketing Analysis

income of customer and how it can Managing the marketing function
change it the upcoming years? begins with a complete analysis of the
 Currently, the economy is stable or company's situation in the marketing
not. It is a growing economy, environment. Marketing analysis offers
declining and a stagnating accurate and complete information to each
economy other marketing management
 Whether the exchange rate is
stable or not. What is the tendency functions: planning, implementation, and
of fluctuation? control.
Principles of Marketing
Internal Analysis of Strengths and Marketing implementation is the
Weaknesses process that turns marketing plans into
marketing actions to accomplish strategic
An internal analysis is a thorough
marketing objectives. Whereas marketing
review of the strengths and weaknesses
planning addresses the what and why of
within an organization, usually by
marketing activities, implementation
evaluating the company's culture and
addresses the who, where, when, and how."
image, organizational structure, staff,
(Kotler & Armstrong, 2012: p.54)
operational efficiency and capacity, brand
awareness and financial resources. Marketing Control
Strengths are positive attributes, which can
Because many unexpected "surprises
be tangible or intangible, and are within the
may occur during the implementation of
control of the organization. Weaknesses are
marketing plans, marketers must practice
factors that may hinder the achievement of
constant marketing control-- measuring
desired goals.
and evaluating the results of marketing
External Analysis of Opportunities and strategies and plans and taking corrective
Threats action to ensure that the objectives are
achieved."(Kotler & Armstrong, 2012:
Opportunities and threats are measured
p.56)
as part of an external analysis. Both can
occur when things happen in the external Marketing Audit
environment that may require a change
A marketing audit is a comprehensive,
within the business. These external factors
systematic analysis of the business
may include market trends, supplier or
marketing environment of an organization,
partner changes, customer flows,
both internal and external. It covers the
increasing competition, new technology,
organization's goals, objectives, strategies,
and economic upturns or downturns.
and principles in order to identify any
Opportunities present themselves as problems or areas
attractive factors that can propel or
A marketing audit is an incredibly
positively influence the company in some
useful tool that marketers can use in order
way. Threats are external factors that could
to fully understand the current marketing
place the organization's goals at risk. These
ecosystem at their disposal, formulate a
often are classified by their level of
distinct marketing strategy, and solve
severity and probability of occurrence.
issues that may be revealed through the
Marketing Planning audit process.
Marketing planning involves choosing A marketing audit provides
marketing strategies that will help the management with an in-depth look at the
company attain its overall strategic marking operations of the business, which
objectives. A detailed marketing plan is enables them to evaluate the performance,
needed for each business unit, product, and budget, resources available to the
brand. The authors introduce what a department as a whole.
marketing plan look like and contents of a
A well-conducted marketing audit will
marketing plan.
highlight any areas that are performing
Marketing Implementation well, as well as those that are not up to par.
Principles of Marketing
Ultimately, a marketing audit enables
decision makers within an organization to
make major decisions based on facts,
analysis, and data that will support the
overarching goals of the business.

Marketing Strategy
Marketing Implementation
 Marketing implementation is the
process of executing the marketing
strategy by creating and performing
specific actions that will ensure the
achievement of the firm’s marketing
objectives.
 Strategic planning without effective
implementation can produce
unintended consequences that result in
customer dissatisfaction and feelings
of frustration within the firm.
Likewise, poor implementation will
most likely result in the firm’s failure
Principles of Marketing
to reach its organizational and  Separation
marketing objectives.
Interdependency
Strategic Issues in Marketing
Implementation - Although it is true that the content of
the marketing plan determines how it
The Link Between Planning and will be implemented, it is also true that
Implementation how the marketing strategy is to be
implemented determines the content of
 Interdependency the marketing plan.
 Evolution
 Separation Evolution
The Elements of Marketing - Because planning and implementation
Implementation are intertwined, both must constantly
evolve to fit the other. The process is
 Shared Goals and Values never static because environmental
 Marketing Structure changes require shifts in strategy,
 Systems and Processes which require changes in
 Resources implementation, which require shifts in
 People (Human Resources) strategy, and so on.
 Employee Selection and Training
 Employee Evaluation and Separation
Compensation
 Employee Motivation, Top executives often fall into a trap of
Satisfaction, and Commitment. believing that a good marketing strategy
 Leadership will implement itself.

Approaches to Marketing - Because there is distance between

Implementation executives and the day-to-day
activities at the frontline of the firm,
 Implementation by Command they often do not understand the
unique problems associated with
 Implementation Through Change implementing marketing strategy.
 Implementation Through Conversely, frontline employees—who
Consensus do understand the challenges and
hurdles of implementation—usually
 Implementation as Organizational have a limited voice in planning the
Culture strategy.
Internal Marketing and Marketing
- Another trap that top executives often
Implementation
fall into is believing that frontline
 The Internal Marketing Approach managers and employees will be
 The Internal Marketing Process excited about the marketing strategy
and motivated to implement it.
Evaluating and Controlling Marketing However, because they are separated
Activities from the planning process, these
managers and employees often fail to
identify with the firm’s goals and
THE LINK BETWEEN PLANNING AND objectives, and thus fail to fully
IMPLEMENTATION understand the marketing strategy.
- It is unrealistic for top executives to
 Interdependency expect frontline managers and
 Evolution employees to be committed to a
Principles of Marketing
strategy they had no voice in - Although creating shared goals and
developing, or to a strategy that they values is a difficult process, the
do not understand or feel is rewards are worth the effort. Some
inappropriate. experts have argued that creating
shared goals and values is the single
most important element of
implementation because it stimulates
organizational commitment where
employees become more motivated to
implement the marketing strategy, to
achieve the firm’s goals and objectives,
and to serve more fully the needs of
the firm’s customers
Marketing Structure
THE ELEMENTS OF MARKETING
IMPLEMENTATION - Marketing structure refers to the
methods of organizing a firm’s
 Shared Goals and Values marketing activities. It establishes
 Marketing Structure formal lines of authority, as well as
 Systems and Processes the division of labor within the
 Resources marketing function.
 People (Human Resources) - In a centralized marketing
 Employee Selection and Training structure, the top of the marketing
 Employee Evaluation and hierarchy coordinates and manages
Compensation all marketing activities and
 Employee Motivation, decisions.
Satisfaction, and Commitment. - Conversely, in a decentralized
 Leadership marketing structure, the frontline
of the firm coordinates and
manages marketing activities and
decisions. Typically,
decentralization means that
frontline marketing managers have
the responsibility of making day-
to-day marketing decisions.
- Both centralized and
decentralized marketing structures
have advantages.
- Centralized structures are very
cost-efficient and effective in
ensuring standardization within the
marketing program. These
advantages can be particularly
Shared Goals and Values critical to firms whose
competitiveness depends upon
- Shared goals and values among all maintaining a tight control over
employees within the firm are the marketing activities and expenses.
“glue” of successful implementation - Decentralized marketing
because they bind the entire structures have the important
organization together as a single, advantage of placing marketing
functioning unit. decisions closer to the frontline
Principles of Marketing
where serving customers is the or break the implementation of the
number one priority. By marketing strategy.
decentralizing marketing
decisions, frontline managers can - In fact, the marketing departments of
be creative and flexible, allowing many firms have taken over the human
them to adapt to changing market resources function to ensure that
conditions. employees have a correct match to
required marketing activities.
Systems and Processes
- Organizational systems and processes - A number of human resource
are collections of work activities that activities are vitally important to
absorb a variety of inputs to create marketing implementation:
information and communication -Employee Selection and
outputs that ensure the consistent day- Training
to-day operation of the firm. -Employee Evaluation and
- Examples include information Compensation
systems, strategic planning, capital -Employee Motivation,
budgeting, procurement, order Satisfaction, and Commitment.
fulfilment, manufacturing, quality Leadership — often called the art of
control, and performance managing people — includes how
measurement. managers communicate with employees, as
Resources well as how they motivate their people to
implement the marketing strategy.
- A firm’s resources can include a wide
variety of assets that can be brought Marketing implementation is more
together during marketing successful when leaders create an
implementation. organizational culture characterized by
- Tangible resources include financial open communication between employees
resources, manufacturing capacity, and managers. In this way, employees are
facilities, and equipment. free to discuss their opinions and ideas
- Although not quite as obvious, about the marketing strategy and
intangible resources such as marketing implementation activities.
expertise, customer loyalty, brand This type of leadership also creates a
equity, corporate goodwill, and climate where managers and employees
external relationships/strategic have full confidence and trust in each other
alliances are equally important.
- Regardless of the type of resource,
the number of resources available can
make or break a marketing strategy. APPROACHES TO MARKETING
- A critical and honest evaluation of IMPLEMENTATION
available resources during the planning  Implementation by Command
phase can help ensure that the  Implementation Through Change
marketing strategy and marketing  Implementation Through
implementation are within the realm of Consensus
possibility.  Implementation as Organizational
People (Human Resources) Culture

- The quality, diversity, and skill of a Implementation by Command

firm’s human resources can also make - Under this approach, the firm's top
executives develop and select the
Principles of Marketing
marketing strategies, which are - Despite these advantages,
transmitted to lower levels where implementation through change still
frontline managers and employees suffers from the separation of planning
implement them. and implementation.
Implementation by command has two  By clinging to this power-at-the-
advantages: top philosophy, employee
(1) it makes decision making much easier, motivation often remains an issue
and  Likewise, the changes called for in
this approach often take a great
(2) it reduces uncertainty as to what is to deal of time to design and
be done to implement the marketing implement This can create a
strategy. situation where the firm becomes
stagnant while waiting on the
strategy to take hold. As a result,
the firm can become vulnerable to
changes in the marketing
Unfortunately, this approach suffers from environment.
several disadvantages.
Implementation Through Consensus
(1) The approach places less emphasis on
the feasibility of implementing the - Upper- and lower-level managers work
marketing strategy. together to evaluate and develop
marketing strategies in the consensus
(2) It also divides the firm into strategists approach to implementation.
and implementers: - The underlying premise of this
(3) Executives who develop the marketing approach is that managers from
strategy are often far removed from the different areas and levels in the firm
targeted customers it is intended to attract. come together as a team to collaborate
and develop the strategy. Each
- For these reasons, implementation by participant has different opinions as
command can create employee well as different perceptions of the
motivation problems. Many employees marketing environment. The role of the
do not have motivation to implement top manager is that of a coordinator,
strategies in which they have little pulling different opinions together to
confidence. ensure the development of the best
overall marketing strategy. Through
Implementation Through Change this collective decision-making
- Implementation through change is process, the firm agrees upon a
similar to the command approach marketing strategy and reaches a
except that it focuses explicitly on consensus as to the overall direction of
implementation. the firm.
- The basic goal of implementation Implementation through consensus is more
through change is to modify the firm in advantageous than the first two
ways that will ensure the successful approaches:
implementation of the chosen
marketing strategy. (1) It moves some of the decision-making
- The approach achieves a good authority closer to the front line of the
balance between command and firm.
consensus, and its successes are quite
evident in business today. (2) This approach is based on the simple
truth that lower-level employees have a
Principles of Marketing
unique perspective on the marketing strong organizational culture and a
activities necessary to implement the firm's shared corporate vision ensure that
strategy These employees are also more empowered employees make the right
sensitive to the needs and wants of the decisions.
firm’s customers. In addition, because they - Although creating a strong culture
are involved in the strategic process, these does not happen overnight, it is
employees often have a stronger absolutely necessary before employees
motivation and commitment to the strategy can be empowered to make decisions.
to see that it is properly implemented. Employees must be trained and
socialized to accept the firm's mission
(3) Implementation through consensus and to become a part of the firm’s
tends to work best in complex, uncertain, culture.
and highly unstable environments. The - Despite the enormous amount of time
collective strategy-making approach works involved in developing and using this
well in this environment because it brings approach to implementation, its
multiple viewpoints to the table. rewards of increased effectiveness,
However, implementation through efficiency, and increased employee
consensus often retains the barrier between commitment and morale are often well
strategists and implementers. worth the investment.

The end result of this barrier is that the SUMMARY

full potential of the firm's human resources
- To summarize, firms and their
is not realized.
managers can use any one of these four
Thus, for implementation through approaches to implement marketing
consensus to be truly effective, managers at strategy. Each approach has advantages
all levels must communicate openly about and disadvantages as outlined in
strategy on an ongoing, rather than an Exhibit 9.3
occasional, basis. - The choice of an approach will
depend heavily on the firm's resources,
Implementation as Organizational its current culture, and the manager’s
Culture own personal preferences.
- Under this approach, marketing
strategy and its implementation - Many managers don’t want to give up
become extensions of the firm's control over decision making. For
mission, vision, and organizational these managers, connecting
culture. implementation and culture may be out
- With a strong organizational culture of the question.
and an overriding corporate vision, the - Regardless of the approach taken, one
task of implementing marketing of the most important issues that a
strategy is about 90 percent complete. manager must face is how to deal with
- This occurs because all employees the people who have responsibility for
adopt the firm's culture so completely implementing the marketing strategy.
that they instinctively know what their - To examine this issue, we now turn
role is in implementing the marketing our attention to internal marketing—an
strategy. increasingly popular approach to
- This extreme form of decentralization marketing implementation.
is often called empowerment.
Empowering employees means
allowing them to make decisions on INTERNAL MARKETING AND
how to best perform their jobs. The MARKETING IMPLEMENTATION
Principles of Marketing
 The Internal Marketing Approach responsibility for implementing the
 The Internal Marketing Process marketing strategy.
Internal Marketing The Internal Marketing Process
- Internal marketing refers to the use of - The process of internal marketing is
a marketing-like approach to motivate, straightforward and rests on many of
coordinate, and integrate employees the same principles used in traditional
toward the implementation of the external marketing.
firm’s marketing strategy. - As shown in Exhibit 9.4, internal
marketing is an output of and input to
The goals of internal marketing are to: both marketing implementation and the
(1) help all employees understand and external marketing program. That is,
accept their roles in implementing the neither the marketing strategy nor its
marketing strategy, implementation can be designed
without a consideration for the internal
(2) create motivated and customer-oriented marketing program.
employees, and - The product, price, distribution, and
promotion elements of the internal
(3) deliver external customer satisfaction.
marketing program are similar to the
Note that internal marketing explicitly elements in the external marketing
recognizes that external customer program.
satisfaction depends on the actions of the - Internal products refer generally to
firm's internal customers—its employees. marketing strategies that must be
“sold” internally. More specifically,
The Internal Marketing Approach however, internal products refer to any
- If the internal customers do not employee tasks, behaviors, attitudes, or
receive proper information and training values necessary to ensure
about the strategy and are not implementation of the marketing
motivated to implement it, then it is strategy.
unlikely that the external customers - Implementation of a marketing
will be satisfied completely. strategy, particularly a new strategy,
typically requires changes on the part
- This same pattern of internal and of employees. They may have to work
external customers takes place harder, change job assignments, or
throughout all levels of the firm. Even even change their attitudes and expand
the CEO is responsible for serving the their abilities. The increased effort and
needs of his or her internal and changes that employees must exhibit in
external customers. implementing the strategy are
- Thus, unlike traditional equivalent to internal prices.
implementation approaches where the Employees pay these prices through
responsibility for implementation rests what they must do, change, or give up
with the frontline of the firm, the when implementing the marketing
internal marketing approach places this strategy.
responsibility on all employees
regardless of their level within the
firm.
- In the end, successful marketing
implementation comes from an
accumulation of individual actions
where all employees have
Principles of Marketing
obtain insights into how we respond to
products, brands, and advertisement.
From this, marketers hope to unserstand
the subtle nuances that distinguish a dud
pitch from a successful campaign. (Mucha,
2005)
There are two main reasons for this trend.
First, the possibility that neuroimaging will
become cheaper and faster than other
marketing methods. Second, the hope that
neuroimaging will provide marketers with
information that is not obtainable through
conventional marketing methods.

Neuromarketing There is growing evidence that may

provide hidden information about the
Customer Satisfaction consumer experience.

• Customer satisfaction and business Linking Science and Marketing:

success • Overconsumption and compulsive
• "The key to customer retention is shopping can be traced back to a
customer satisfaction" (Kotler) dysfunction of the orbitofrontal cortex.
• Impu;sive buying decisions are based
Consumer's Mind on the emotional state of the buyer,
rational buying decisions are processed
Marketing and environment stimuli enter in the frontal cortex.
the consumer's consciousness or • Memory retention is processed in the
subconsciousness. A set of psychological amygdale and ventromedial lobes
processes combine with certain customer • Irrational buying is associated with the
characteristics to result in decision autonomic nervous system.
processes and purchase decision.
Potential benefits of Neuromarketing:
The marketer's task is to understand what
happens in the customer's consciousness • Product development:
between the arrival of the marketing  Flavor
stimuli and the ultimate purchase decision.  Smell
 Colour
The main objective of marketing is to  Health/fashion trends
help match products with people.  Identifying new target groups
Marketing serves the dual goals of: • Product packaging/design:
1. Guiding the design and presentation of  Logo
products such that they are more  Colour scheme
compatible with consumer preferences.  Packaging materials
2. Facilitating the choice process for the  Packaging size
consumer  Limited editions
 Smell
Neuromarketing • Advertisment designs:
 Poster/billboards
By studying activity in the brain,
- size, slogan/message, sports person,
neuromarketing combines the techniques
information, colour arrangement
of neuroscience and clinical psychology to
 TV Advertisment
Principles of Marketing
- balance information, length, product
focus, colour arrangement,
voice/music, image
 Radio promotion:
- balance, length, voice, music
• Promotion campaigns:
 Poster/billboards
- location, duration
 TV/radio adverts
- channels/stations, time slots
 Freebies/extras
- location, product choice
 Sponsoring
- celebrities, events
 Web adverts
- duration, contents
• Distribution:
 shelving
 product grouping
 special offers
 smell
 music
 general atmosphere
 availability