MKTG101 Lecture Summaries

This report provides comprehensive summaries of lectures from a marketing course (MKTG101). The summaries cover a range of topics including an introduction to marketing, marketing planning, the marketing environment (PESTEL analysis), market analysis (SWOT analysis), market research (primary and secondary data, data mining), consumer behavior, market segmentation, targeting and positioning (STP), product development, the product lifecycle, and branding. Each lecture summary provides a detailed overview of the key concepts and theories discussed, making it a valuable resource for students to review and consolidate their understanding of the subject matter. The summaries are structured logically, making it easy for students to navigate and find specific information. The content is well-organized and clearly written, making it accessible to students of all levels.

MKTG101
Lecture 1 Summary
Introduction to marketing
Marketing planning is all about understanding how we operate in markets in order to deliver a
marketing plan that might drive the strategic direction of the brand into the future.
Where are we today?
Where do we want to be tomorrow?
How are we going to get there?
How are we going to know were successful?
Brief Overview: Learning Outcomes
 Develop an informed understanding of marketing theory and practice.
 Review the external factors influencing an organisation's marketing strategies.
- Competition
- Economy
- Society
- Politics
- Technology
- Consumers/Demographics
 Explain and analyse key marketing objectives and strategies.
 Identify the role of marketing as an organisation-wide philosophy.
 Recognise marketing's role in business and in society
As marketers we must consider:
 All customers have different wants and needs
 All customers change, we all change through the different lifestyle circumstances
 All competitors react
 All resources are limited
Marketing is about the effective allocation of marketing resources.
SWOT:
Strengths – internal to the firm
Weaknesses – internal to the firm
Opportunities – external to the firm
Threats – external to the firm

Components of the Marketing Concept
1. Customer Orientation
- Target Market
- Customer Needs
2. Integrated Marketing Efforts
3. Profitability
Marketing is used by:
 Small businesses and large multinational corporations
 Businesses selling goods and businesses selling services
 For-profit and not-for-profit organisations
 Private and public organisations, including governments.
The Marketing Process
Understanding  Creating  Communicating  Delivering
Marketing Exchange
The mutually beneficial transfer of offerings of value between the buyer and seller.
The triple bottom line
Environmental  Economic  Social
The Marketing Mix
Traditionally known as the 4 Ps:
 Product
 Price
 Promotion
 Place (distribution)

Lecture 2 Summary
Marketing Environment and Market Analysis
The essence of strategy:
Is the process of developing and maintaining a viable match of the organisation’s resources and
capabilities (strengths and weaknesses) to the demands of the changing environment (opportunities
and threats) in pursuit of its objectives. With the aim of achieving of a sustainable differential
advantage in the changed environment.
Differential Advantage:
Refers to a set of unique features, benefits or characteristics of a firm or a business which sets it
apart from its competitors for its target market.
Marketing strategy needs to respond to change by doing the following:
 Collection Information
About the company, customers, competition and the environmental context
 Analysing Information
Developing a deep understanding of the situation
 Identifying Issues and Opportunities
That can guide future strategic marketing decisions
 Applying Creativity
To deliver desirable, differentiated and defensible marketing strategies

PESTEL Model - It’s a tool for auditing the marketing environment. (Macro)
P – Political
Political environment which revolves around the current government in a particular country.
E – Economic
Economic environment is a direct influence on all businesses. (employment levels, inflation, interest
rates, depression. These are all economic factors.)
S – Social Cultural
Social Cultural environment embodies everything which is social and cultural within a nation or
society. (religion, the way you’re educated, your national culture, your local culture, your dialect.
These are all cultural factors.)
T – Technological
Technological factors are multifaceted influences. (smartphones, androids, PC, internet)
E – Environmental
Environmental/Environmentalism are the green issues that surround marketing. Environmental
movement puts pressure on government and businesses.
L – Legal
Legal factors include businesses taking into account laws in the local market. (cars have different
seated driver either right handed and left handed, safety ratings, maximum speed.)
The external environment
The external environment encompasses the people and processes that the organisation cannot
directly control. Marketers can only seem to influence the external environment. The external
environment includes the micro-environment and the macro-environment.
Micro – the micro environment comprises the forces and factors within the industry in which the
market operates and these include customers, partners and competitors.
Macro – the macro environment includes the larger scale forces that influence not only the
organisation and its industry but happen to influence all industries. (PESTEL framework.)
The internal environment
The internal environment describes the organisation and the way it creates and the way it delivers
value. It includes those factors directly controllable by the organisation. (the distinguishing factor
with the internal environment.) Strengths and weaknesses are internal factors that positively and
negatively affect the organisations ability to compete in the marketplace.

Situational Analysis
Identifying the key factors that will be used as a basis for the development of marketing strategy.
Marketing Planning
An ongoing process that combines organisational objectives and situational analyses to formulate
and maintain a marketing plan that moves the organisation from where it currently is to where it
wants to be.
Marketing Plan
Executive Summary  Introduction  Situation Analysis  Objectives SMART  Target Market 
Marketing Mix Strategy  Budget  Implementation  Evaluation  Future Recommendations

Lecture 3 Summary
Market Research
A business activity that discovers information of use in making marketing decisions. Market research
is an essential component of understanding the market. Market research is only of value if the
information it provides can contribute to improved performance.
Data Types
 Secondary Data – Data originally gathered or recorded for a purpose other than to address
the current market research problem, information that is already available. Secondary Data
is cheaper, its more quickly available and more than half the market research comes from
secondary data.
 Primary Data – Data collected specifically for the current market research project. This data
is used to make decisions in product offerings, targeting at different segments, channels of
distribution and introduction of your products. Primary Data is more time consuming, more
expensive and difficult to use.
Data Mining
Data mining is the process of sorting through large data sets to identify patterns and establish
relationships to solve problems through data analysis. Data mining tools allow enterprises to predict
future trends.
Modelling customer satisfaction and loyalty: survey data versus data mining

Typical Marketing Research Projects
 Concept test
 Copy test
 Price responsiveness
 Market share analysis
 Segmentation studies
 Customer service/satisfaction
Market Research Importance
 Market Segmentation
 Sales Performance
 Product
 Distribution
 Promotion
 Pricing
 Attitudes and Behaviours
Market Research Components
Five major components:
 Defining the research problem
 Designing the research methodology
 Collecting data
 Analysing data and drawing conclusions
 Presenting the results and making recommendations
Market Research is an ongoing process and is constantly evolving as new problems arise and new
opportunities present themselves or where we observe shifts in the external environment that we
want to explore the impact on our product or service.
Before undertaking a market research, the following factors should be considered:
 Relevance
 Timing
 Availability of resources
 Need for new information
 Cost-benefit analysis
Market Research Brief
Includes:
 Executive summary
 Introduction
 Background
 Problem definition
 Time and budget
 Reporting schedule

 Appendices
Types of Research
 Exploratory research
 Descriptive research
 Casual/Correlation research
2 Types of Research
 Qualitative research
Useful for:
- Understanding customer needs
- Evaluating potential new products
- Testing promotional campaigns
- Understanding how customers use products
 Quantitative research
Approaches include:
- Experimentation
- Observation
- Surveys
Research Design
 Population
 Sampling
 Sample
Data Collection, Analysis and Reporting
 Data Analysis
 Quantitative Analysis
 Qualitative Analysis
 Conclusions
 Recommendations
Reporting
A written research report should include:
 Cover page and executive summary
 Table of contents
 Introduction or background
 Methodology and findings
 Statements of limitations
 Conclusions and recommendations
 Appendices
Lecture 4 Summary

Consumer Behaviour
The analysis of the behaviour of individuals and households who buy goods and services for personal
consumption. An understanding of consumer behaviour informs marketing decisions including:
 What product attributes will appeal to customers?
 How much value does a product have for customers – therefore, how much will they be
willing to pay?
 What is the likely response to various promotional options?
 What does the consumer expect from dealing with the organisation?
Decision-Making Behaviour
Consumers make decisions along a continuum, from habitual decision-making behaviour at one end
to extended decision-making behaviours at the other.
Influences on Consumer Behaviour
Situational Influences
Circumstances that change the consumers making purchasing decisions are:
 Physical location
 Social interaction
 Time available
 Purchase motivation
 Consumer mood
Culture
The system of knowledge, beliefs, values, rituals and artefacts by which a society or other large
group defines itself. Culture includes tangible elements such as clothing, artworks and food, and
intangible elements such as laws, religious beliefs and customs.
Cultural Influences:
 Power distance
 Uncertainty avoidance
 Individualism

 Masculinity
 Long-term orientation
Social Class
A group compromising individuals of similar rank within the social hierarchy. An individual’s social
class is defined by values and lifestyles, and often indicators such as income, occupation and
education.
Opinion Leaders
A reference group member who provides relevant and influential advice about a specific topic of
interest to group members.
Family
 Family decision-making roles – Who has responsibility for making specific types of decisions
within the family.
 Pester power – the influence of children on their parents’ purchasing decisions.
 Family life cycle – a series of characteristics stages through which most families pass.
Individual Influences: Personal
 The domain of psychology
 Individual factors – personal and psychological factors that influence consumer behaviour
independently of social circumstances.
 Personal characteristics – demographic, lifestyle and personality factors that influence
consumer behaviour.
 Demographic factors – the vital and social characteristics of populations, such as age
education and income.
 Lifestyle – How an individual spends their time and interacts with others.
 Personality – the set of unique psychological characteristics and behavioural tendencies that
characterise an individual, formed through a complex combination of genetics and
experiences.
 Psychological characteristics – internal factors, independent of situational and social
circumstances, that shape thinking, aspirations, expectations and behaviours.
 Motivation – An individual’s internal drive to satisfy unfulfilled needs or achieve goals.
Believes and Attitudes
 Beliefs – descriptive or evaluative thoughts that an individual hold regarding their knowledge
of a person, idea, or product. Beliefs may be based on objective knowledge. Opinions or
faith.
 Attitudes – an individual’s relatively stable and consistent thoughts, feelings and behaviours
towards an object or idea.
Learning Theories
 Behavioural learning theory – stresses the role of experience and repetition of behaviour, as
seen in classical conditioning. Most relevant in low involvement purchases.
 Cognitive learning theory – learning takes place through rational problem solving,
emphasising acquisition and processing of new information, relevant in high involvement
purchasing decisions.

Consumer Decision-Making
Lecture 6 Summary
Markets: Segmentation, Targeting and Positioning (STP)
Target Marketing
Markets can have a variety of characteristics:
 Buyers have common wants, needs and demands
 Buyers have unique wants, needs and demands
 The market contains subgroups
Market Segments
Subgroups within the total market that are relatively similar in regards to certain characteristics.
Market Segmentation and the Marketing Concept
Three premises about the marketing concept have been recognised:
1. Different market segments can exist due to differing needs and wants
2. Customers within segments will tend to choose the product or service of the organisation
that almost closely satisfies their needs and wants.
3. The fundamental task of the organisation is to develop effective marketing programmes to
reach the customers or segments that have been identified by research.
One-to-one marketing
 Providing a unique, customised offering to meet individual customer needs.

 A one-to-one approach often results in higher unit costs and a more restricted market.
 One-to-one conditions typically form the basis for a focus or niche strategy. Small businesses
use this approach.
Product and market specialisation
 Product specialisation: Marketing efforts are concentrated on offering a single product range
to several market segments.
 Market specialisation: marketing efforts are focused on meeting a wide range of needs
within a market segment.
 Product-market specialisation: marketing efforts are concentrated on offering a single
product to a single market segment.
Segmenting consumer markets
The variables for segmenting consumer markets fall into four broad categories:
 Demographic
 Geographic
 Psychological
 Behavioural
Effective segmentation criteria
Involves ensuring:
 Measurability
 Accessibility
 Substantiality
 Practicability
Multivariate Market Segment Profiles
The number of possible segments multiplies with each extra variable.
Market Targeting
Sales Potential
 Market potential
 Sales Revenue
 Market Share
Positioning
Positioning is the process of creating a desired image for a company and its products in the minds of
a chosen user segment.