FIVE STAGES OF MARKETING EVOLUTION

1. SIMPLE TRADE ERA – A TIME WHEN FAMILIES TRADED OR SOLD

THEIR SURPLUS OUTPUT TO LOCAL MIDDLEMEN.
2. PRODUCTION ERA – A TIME WHEN A COMPANY FOCUSES ON
PRODUCTION OF A EW SPECIFIC PRODUCTS – PERHAPS BECAUSE
FEW OF THESE PRODUCTS ARE AVAILABLE IN THE MARKET.
3. SALES ERA – IS A TIME WHEN A COMPANY EMPHASIZES SELLING
BECAUSE OF INCREASED COMPETITION.
4. MARKETING DEPARTMENT ERA – IS A TIME WHEN ALL
MARKETING ACTIVITIES ARE BROUGHT UNDER THE CONTROL O
ONE DEPARTMENT TO IMPROVE SHORT-RUN POLICY PLANNING
AND TO TRY TO INTEGRATE THE FIRM’S ACTIVITIES.
5. MARKETING COMPANY ERA – IS A TIME WHEN, IN ADDITION TO
SHORT-RUN MARKETING PLANNING, MARKETING PEOPLE
DEVELOP A LONG-RANGE PLANS – SOMETIMES 10 OR MORE
YEARS AHEAD.

MARKETING CONCEPT MEANS THAT AN ORGANIZATION AIMS ALL ITS

EFFORTS AT SATISFYING ITS CUSTOMERS – AT A PROFIT.

ACTIVITIES OF BUSINESS INCLUDES THE FOLLOWING;

SALES, INVENTORY CONTROL, SALES PROMOTION, R AND D ,

WAREHOUSING, PERSONNEL, ACCOUNTING, PURCHASING,
PRODUCTION, ADVERTISING, SHIPPING, FINANCE.

STRATEGY DECISION AREAS ORGANIZAED BY THE 4 P’S

PRODUCT PLACE PROMOTION

PRICE
Physical good objectives objectives
objectives
Services channel type promotion blend
flexibility
Flexibility market exposure salespeople
geographic
Quality level
Accessories
Installation
Instructions
Warranty
Product
Packaging
Branding

MARKETING PLAN IS A WRITTEN STATEMENT OF A MARKETING

STRATEGY AND THE TIME-RELATED DETAILS FOR CARRYING OUT THE
STRATEGY. It includes the marketing mix to be offered, company resources
needed, what results are needed.

LAW OF DIMINISHING DEMAND- WHICH SAYS THAT if the price of a

product is raised, a smaller quantity will be demanded and if the price of a product
is lowered , a greater quantity will be demanded.

RELATIONSHIP BETWEEN ECONOMICS AND MARKETING

ECONOMICS is sometimes called the dismal science because it says that most
customers have a limited income and simply cannot buy everything they want.
They must balance their needs and the price of various products.

OPPURTUNITIES WITH MARKET SEGMENTATION

COMPETITIVE ADVANTAGE - MEANS that a firm has a marketing mix that

the target market sees as better than a competitor’s mix. A competitive advantage
may result from efforts in different areas of the firm – cost-cutting in production,
innovative R and D , more effective purchasing of needed components, or financing
for a new distribution facility.

MARKET PENETRATION – means trying to increase sales of a firm’s present

product in present markets – probably through a more aggressive marketing mix.
The firm may try to increase the customers’ rate of use or attract competitors’
customers.
MARKET DEVELOPMENT – means trying to increase sales by selling present
products in new markets. Firms may try advertising in different media to reach
new target customer.

PRODUCT DEVELOPMENT – means offering new or improved products for

present markets.

DIVERSIFICATION - means moving into totally different lines of business–

perhaps entirely unfamiliar products, markets or even levels in the production-
marketing system.

MARKET SEGMENTATION – is a two-step process of naming broad product

markets and segmenting these broad product-markets in order to select target
markets and develop suitable marketing mixes.

SEGMENTING – as an aggregating process- clustering people with similar needs

into a market segment

STEPS TO SEGMENTING PRODUCT-MARKETS

1. NAME THE BROAD PRODUCT-MARKET

2. LIST POTENTIAL CUSOMERS’ NEEDS
3. FORM HOMOGENOEUS SUBMARKETS
4. IDENTIFY THE DETERMINING DIMENSIONS
5. NAME THE POSSIBLE PRODUCT-MAKETS
6. EVALUATE WHY PRODUCT-MARKET SEGMENTS BEHAVE AS
THEY DO
7. MAKE A ROUGH ESTIMATE OF THE SIZE O EACH PRODUCT-
MARKET SEGMENT