1

Market versus Marketing

 2

The marketing mix, also referred to as the 4 Ps of marketing, categorizes all the various strategies used in the marketing of goods and services. These categories are
product, promotion, pricing and place. They are important because a business must combine them when designing an effective plan of action or strategy to accomplish
its marketing goals.

However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Description: What are the 4Ps of marketing?

Pricing

Pricing is both a marketing activity and a marketing strategy. As a marketing activity, pricing involves determining the value of a good or service. Importantly, a price

is the monetary value customers are willing to pay for an item. The firm must be willing to sell at that price so that a profit can be made. Consumers make known their

choices and preferences through the price they are willing to pay for commodities, and the price at which producers wish to sell to maximize their profits.

As a marketing strategy, pricing involves setting the price of a product based on established pricing strategies. These strategies may include:

I.Cost-based Pricing
II.Psychological Pricing
III.Penetration Pricing
IV.Price Skimming
V.Predatory Pricing
Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the
marketing mix won't do any good. The product, in the marketing mix, identifies the good(s) or service (s) that should be produced, for example, sports cars or flowers.
It also considers the quantity that should be made, for whom the goods or services should be made, and the design and specification of the product.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place'
strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location'. Place looks at how products are
distributed. Sales are not complete until they are in the hands of the final consumer. Manufacturers must find the most efficient ways of getting the goods manufactured
into the hands of consumers. In distributing goods and services, the producer may choose to use short or long channels of distribution.

Promotion: this refers to all the activities undertaken to make the product or service known to the consumers and trade. The methods used to promote sales include
advertising, sales promotion, personal selling and public relations.

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the business plan for a company and handled right, can give it great success. But handled
wrong and the business could take years to recover. The marketing mix needs a lot of understanding, market research and consultation with several people, from users
to trade manufacturing and several others.

Before most businesspeople create a good or service, they determine a market for it and how to reach that market. Businesspeople often define the characteristics of the consumers who
they think will buy their product. Consumer characteristics like age, gender, geographic area, career, race, etc., are called demographics. Each consumer group a business wants to
reach is called a target market. Further, businesspeople reach their target markets through an advertising medium. Businesspeople wants to ensure the success of a product during its
introduction or life cycle, so they conduct a market research.

Market Research
Market research is the gathering, recording and analyzing of data to address the marketing problems of a business. Market research must be specific to the problem of a business. The
marketing problem must therefore be clearly identified so that the appropriate market research may be conducted.

Types of Market Research

Consumer Research: garner information on consumers’ feelings, thoughts and reactions
towards a company’s good or service.
Product Research: Determines customer acceptance of the product.
Distribution Research: Used to identify the most suitable channel of distribution for particular products.
Advertising Research: Identifies the most suitable media to present the advertising message.
The Marketing Research Process consists of five steps:
1. Identifying or defining the problem.
 3

2. Developing information sources.

3. Collecting the information.
4. Analysing the data by using charts and graphs
5. Presenting the findings.
Reasons for Conducting a Market Research
Market research provides managers with current, relevant, accurate and reliable information concerning competitors, advertising, distribution, potential and existing
consumers’ tastes and behaviour. This information also assists managers in making decisions about packaging, product design, pricing, distribution and advertising.
Packaging refers to designing and producing the container that holds the product. A good package must identify, protect and advertise the product. It must also make
the product convenient to use. Therefore, products such as toothpaste are best packaged in a tube so that it is not squeezed out. Milk must be poured from its container.
Egg containers are so shaped to hold them securely.
A package must also sell the product. It must first attract customer to buy. It must provide information about the product i.e. ingredients, amount of contents, price, the
name and address of the manufacturer and instructions for usage. The brand name is also displayed on the package.
Branding
A brand is any identifiable feature of a product which makes it different from its competitor. A brand may be a name, term, symbol, design or combination of these.
Examples of brand names include Avon and Colgate. National, Sagicor A brand symbol, e.g.:

represents the Nike brand. A brand will increase the value of the product in the eye of the consumer.
Factors that influence Consumer Behaviour
The following factors will cause consumers to either increase or decrease their demand for a product.

✔ The price of a commodity: Consumers can afford to buy more of a good when its price falls and less when its price rises.

✔ Price of substitutes and complements: Substitute products are those that can be used alternatively as they satisfy the same need for a consumer. For

example, a weekly shopper may decide to purchase fish instead of chicken because the price of fish has fallen significantly less than the price of chicken. Therefore,
either fish or chicken will be adequate for dinner. If by the next week the price of fish rises and becomes more expensive than chicken then the consumer will opt for
chicken. Complements are goods that are used together e.g. bread and butter. If the price of butter rises then its demand will fall and so will the demand for bread.
Conversely, if the price of butter falls, its demand will rise and so too will the demand for bread.

✔ Income of consumers: As income level rises consumers will demand more goods and services. The reverse is true as income falls consumers will demand

fewer goods and services.

✔ Taste and Preferences: A change in consumers' taste for goods and services will impact their demand. For example, changes in fashion will result in a

drastic decline in demand for outgoing fashion and a rise in demand for what is trendy.

✔ Tradition: Your turn, briefly explain

✔ Quality: Your turn, briefly explain

✔ Brand Loyalty: Brand loyalty will ensure continuous demand for a product regardless of changes in its price or the prices of other goods and services.

✔ Spending Patterns: Consumer spending surveys compile information on consumer spending patterns based on income levels. This informs businesses of

what goods and services are in demand.

 4

Methods of promoting sales

Advertising
The most effective and acclaimed method of the promotional mix listed above is advertising. It is a means of communication and is used to make consumers aware of
the goods and services that producers have to offer. It is also a message that uses words, pictures or sound:

to inform potential buyers of the availability of goods and services

●
to persuade people to buy or to behave in particular way
●

Functions of Advertising

The functions of advertising are therefore as follows:

1. to introduce new products on the market;

2. to increase demand for a good or service so that market share can be increased by persuading the target market;
3. to inform and remind customers about a product so that a personal bond or loyalty can develop;
4. to emphasize particular strong points of a good or service in order to maintain a competitive edge;
5. to bring to the attention of the target market new trends, imported products, sales, promotional events, discounts, changes in business hours, etc.

Forms of Advertising

Informative Advertising gives factual information about a product. It informs potential customers about the benefits and where the product can be found.
❖
For example, some advertisements dealing with medication inform potential customers about the main differences or content of their products. Real estate agents
usually point out the good features of the property and the surrounding in which the property is located.
Persuasive advertising tries to entice the consumer to purchase the product by using emotional and psychological appeals. For example, the sexual
❖
undertones and messages of alcohol and perfume ads.
Comparative advertising compares one product to another. For example, Bahamas’ Tourist Board’s tagline ‘It’s better in Bahamas’
❖
Reminder advertising serves to inform customers that the product is still available. This form of advertising is usually used in areas where there are many
❖
competitions or when the product has reached the maturity stage and new strategies are needed to improve the popularity of the product.

Vehicles of Advertising

There are a wide variety of ways in which an advertisement may reach the public but not all are suitable for every product. There are many media through which
advertising may take place, each of which has a varying degree of effectiveness and cost. Nonetheless, the main vehicles of advertising are categorised into two groups:
direct and indirect advertising.

Direct Advertising includes:

o Circulars – This can be an effective medium but if they are delivered by hand, it is very labour-intensive and costly if they are posted.

o Word of Mouth – Sometimes encouraged by firms carrying out a ‘whispering campaign’ by giving away free samples which they hope the users will talk

about favourably.

Other forms include catalogues and souvenirs.

Indirect Advertising includes:

o Television and radio – This is very expensive but is the most effective method of reaching a large audience
 5

o National Press – The press consists of newspapers, whether locally or internationally. It reaches a wide area, but is expensive and mainly used by large

companies.

o Magazines – These usually have a more limited circulation than newspapers, but reach a selected audience, offer greater scope for colour advertisements

and have a longer life.

o Cinemas – Cinemas reach a relatively small audience but can be effective, particularly in advertising local shops, etc.

o Posters and hoardings – These are eye-catching, high-impact signs sited in public places or on public transport.

o Point of Sale – This is the use of eye-catching shop counter or window displays to influence the consumer to buy on impulse.

o Exhibitions: These attract large numbers of people who already have at least some interest in the product. Exhibitions also enable specialists in a field to

meet and compare products and experiences.

Advantages and Disadvantages of Advertising Vehicles

Medium / Vehicle Advantages Disadvantages

Electronic: Radio, Television, Telemarketing

▪ They build and maintain public and
▪ Telemarketing is very expensive

consumer awareness

▪ There may be legal restrictions, e.g.,

▪ They are a powerful means of

tobacco and alcoholic products
persuading people because they are lively, convey
feelings, colourful and lively
▪ Their effectiveness depends on the time

shown, e.g. most people try to place advertisements

just before news time.

Cinema
▪ Like television, the impact can be made
▪ Competition of the target group is widely

vivid. varied

▪ It can target a specific audience.

▪ There is a limited audience due to

competition from television and radio

Printed Media: Newspapers, Magazines, Periodicals

▪ The printed word is more long-lasting.
▪ There is limited use of colour in
and Professional journals
It can be referred to conveniently. newsprint

▪ The advertisement becomes more

▪ They are very cold and static

credible when printed in a professional journal. presentations

▪ It can accommodate updates and

▪ One cannot be certain that it is read.

changes easily.

▪ It provides a permanent record and

facilitates easy reference.

Other Media: Posters, Billboards, Buses, trains,

▪ They are strategically placed.
▪ They must be constantly updated and
electric and neon signs, handbills and postcards
therefore are expensive to maintain

▪ They create a strong impact, e.g., on

highways, near traffic lights or at street corners.

▪ They can spoil the landscape of the area

where it is strategically placed.

▪ Neon signs have a visual impact after

dark and can be seen from a distance.

▪ They could be a source of distraction.

Public Relations
 6

Public Relations is the creation of a favourable image of the firm in the eyes of the employees, the public, the community and the government. This can be achieved by
way of

a. press releases to draw the public’s attention to the company’s product. The business entertains certain key stakeholders or suppliers, for example, taking
the CEO of another company to lunch or having Christmas parties for distributors or members of staff;
b. offering special awards, for example, a firm may offer scholarships to the children of retrenching workers;
c. offering expense-paid trips to long-service members or employees;
d. sponsorship of regional, national and community events. For example, the Red Stripe Premier League or the Sagicor 5k Sigma Run as the Air Jamaica
Jazz and Blues Festival;
e. the commissioning of work for art exhibitions, musical events and drama production and the promotions of cultural activities.

Sales Promotion

Sales Promotions can be defined as short-term incentives used to encourage the purchase of a good or service. These are usually given to middlemen (wholesalers or
retailers) and customers. It is an expensive exercise and therefore runs for a limited period. It is usually used to support an advertising campaign or for special events
like Christmas, Easter or Carnival. For example, free samples can take the form of mini replicas of the product or a small taster of the product. This may be done at
trade fairs and exhibitions, supermarkets and hypermarkets.
o Coupons are detachable tickets or part of a document that entices the holder of the probability of receiving something. For example, cash or gifts that can

be used as an application form. These coupons are redeemable at special places, for example, supermarkets.
o Price discounts and cash refunds are given away as a form of promotion. A price discount is an amount of money taken off the price of an item, while cash

refunds are repayments given to customers on the return of damaged items. Price discounts are used particularly for special sales, for example, at Christmas
promotions.
o Cash discounts are given for prompt payment of invoices, for example, if a client pays within the credited period the client may receive a percentage off

the total price.

o Buy-one-and-get-one-free is a form of cash discount. This involves getting extra for the price of one. This method of sales is generally used to promote the

product or attract customers to the store or encourage sales on a product that is not selling well.
o Competitions are another way of promoting goods. The customers are enticed to enter competitions for which large sums of money or expensive items are

given as prizes.
o Loss Leader is an item with a huge discount used to attract customers to the store. For example, the sale of special Nike sneakers may woo young men into

the store.

Advantages Disadvantages

Customers can examine the quality of the product It is a very expensive exercise that increases the cost of the product

Through sampling new products, a psychological bond is created. It may not realize the type of profits anticipated

It increases customer awareness

It increases loyalty

Personal Selling

Personal Selling is still common in urban and rural districts in most Caribbean territories. It involves the salesperson moving from community to community, selling his
or her wares. In this practice, the salesperson has direct contact with customers and thus receives immediate feedback. Telemarketing: can be considered part of
personal selling. Banks use this approach to sell their services. Customers are encouraged to purchase goods and services from reputable firms and therefore image is a
crucial factor for all organisations. The firm must engage in activities that would promote the firm.
Techniques of Selling
Personal Selling: This is the use of salespersons to present and sell goods and services of a firm. Salespersons promote a firm’s goods directly to a specific consumer.
They locate new customers, provide display services, demonstrate the use of products, deliver goods, collect payments and provide the firm with feedback.
Merchandising: Merchandising refers to self-service methods of sale. This is used in supermarkets and department stores. It allows for a better display of goods and
creates a more comfortable shopping environment.

Methods of retailing
o Community Shops and Convenient Stores: These locations tend to serve a particular community. Opening hours include all weekend days, holidays and

very late in the evenings. Costs for some commodities that are not government-controlled tend to be higher than other types of retail outlets. Community shops in
particular cut and shape products to suit customers and offer credit.
o Department Stores: These stores carry several lines of goods under one roof. A department store may feature a clothing department, household items,

stationery, hardware etc. It provides convenience to customers who can pick up several items in one place, and allows the businessman the cost-effectiveness of
operating several business entities in one location.
 7

o Mail Order: Companies that retail through mail order benefit from a reduced operational cost of location and staff. Since display areas are not required

only an office and storage facility are necessary for the operation of this business. Orders are made from catalogues and goods are delivered by courier or mailed to
customers. This saves time and effort as consumers would not have to visit shopping locations.
o E-commerce: Orders are made by customers over the internet from the websites of businesses. Payments are also made over the internet. Packages are

delivered by mail or courier.

o Tele-Marketing: Telemarketers introduce the company’s goods and try to obtain orders via the telephone.
o Vending Machines: These self-service machines are placed at various locations by their owners. Customers are required to place the required funds inside

these machines and are then instructed on how to make their choice. The machine then dispenses the product. This type of business is very cost-effective as owners
may only pay a fee for locating the vending machine.

Terms of Sale
A business establishment may offer its customers various terms to settle accounts.
Cash: This is preferable by most businesses and therefore customers are encouraged to make cash payments. They are usually offered a lower payment amount for
goods bought for cash.
Credit: Customers can pay at intervals over a short- term, usually one to three months to settle outstanding balances.
Hire Purchase: Hire-purchase is a long-term payment plan e.g. 24 – 36 months. Interest is charged to the customer increasing the amount owed.
Cash Discount: A cash discount is a reduction in the price of a good that is paid for immediately or over a short period of time by a customer. For example, if an
appliance store offers a 5% discount on items bought for cash then 5% of the sale price would be deducted from the actual bill
Trade Discount: A trade discount is a reduction in the price of a good given by a manufacturer or a wholesaler to a retailer to allow the retailer to make a profit or to
encourage bulk buying. Thus if an appliance manufacturer offers a 10% trade discount to retailers then 10% of the catalogue price or the quoted price would be
deducted from the retailers’ actual bill.

Consumerism
This is defined as the education and protection of consumers to prevent their exploitation. Consumer exploitation includes overcharging, offering poor quality goods
and services as well as short measurements and weights
Consumerism practiced by the government
This is done through various government agencies. These include
1. The Consumer Affairs Commission - This institution was set up to disseminate information about consumer rights and responsibilities as well as provide consumers
with an avenue for redress if they are exploited.
Consumer Rights
Consumers have a right to

SAFETY AND PROTECTION from hazardous goods or services

BE INFORMED against fraudulent, deceitful or misleading information and to have access to accurate information and facts needed to make informed choices and
decisions.

CHOOSE and have access to a variety of products and services at fair and competitive prices

BE HEARD, such as to express their concerns and receive representation for their interests while making economic and political decisions.

REDRESS and to be compensated for misrepresentation, shoddy goods or unsatisfactory services.

CONSUMER EDUCATION and to become a skilled and informed consumer capable of functioning effectively in the marketplace

A HEALTHY ENVIRONMENT that will enhance the quality of life and provide protection from environmental problems for present and future generations.

Consumer Responsibility
o The Responsibility to be aware of the quality and safety of goods and services before purchasing.

o The Responsibility to gather all the information and facts available about a product or service as well as to keep abreast of changes and innovations in

the marketplace.

o The Responsibility to Think Independently and make choices about well-considered needs and wants.

o The Responsibility to Speak Out, to inform manufacturers and governments of needs and wants.

o The Responsibility to Complain and inform businesses and other consumers of dissatisfaction with a product or service in a fair and honest manner.

o The Responsibility to be an Ethical Consumer and to be fair by not engaging in dishonest practices which cost all consumers money.
 8

o The Responsibility to Respect the Environment and avoid waste, littering and contribution to pollution.

2. The Fair Trading Commission: This agency was set up to administer the Fair Trading Act (1993). It is concerned with matters such as; Tied selling (marrying of
goods), misleading advertising (untruths about goods and services presented for sale), untrue sale (an announced sale for which the price of items remains the
same).and the use of market dominance to squeeze firms out of the industry (for example, large firms may drop the price of their goods so low that small firms are
unable to compete with them. This is called dumping)
3. The Bureau of Standards Jamaica: The bureau carries out regular checks on business enterprises to ensure that goods and services offered for sale meet the standards
stipulated by this institution.
4. The Ombudsman: The Ombudsman is a government official who protects the rights of citizens who may suffer any kind of injustice from dealing with a government
agency or a government official. For example, the Ombudsman will investigate the death of a loved one due to the negligence of a public hospital.
Consumer Affairs Commission
Consumerism practised by private Institutions
Local consumer groups
❖
Radio talk show hosts listens to consumers’ complaints
❖
Consumerism practised by private firms
Offering warranty/guarantees on items sold
❖
Labels carry information on ingredients, nutritional content and health risks that may be associated with the product.
❖
Role of Customer Service
Core responsibility of customer service is answering any simple issues that a customer may have. Customer service provides reactive support and is the one to respond
when an issue suddenly pops up. Customer service acts as the frontline of defence and takes care of as many issues as possible. The majority of questions a company
receives are quick and easy to answer. Customer service fits well with the Pareto principle, or 20/80 rule. This states that 20% of the work produces 80% of the results.
Conversely, 80% of the work produces 20% of the results. Customer support acts to weed out the 80% of simple concerns before forwarding it to the specialists.

Forms of Customer Service

After Sales Services: Customers are entitled to these services once they have made a purchase. They include delivery, installation and warranty. These services are
free and usually encourage consumers to buy.
Good Customer Relations: Building good relationships with customers ensures customer satisfaction, repeat customers and recommendation to new customers. The
sales staff must be trained in the principles of good customer relations. This entails, listening to customers being helpful and polite.

Warranty (Investopedia.com)

A warranty is a type of guarantee that a manufacturer or similar party makes regarding the condition of its product. It also refers to the terms and situations in which
repairs or exchanges will be made in the event that the product does not function as originally described or intended.

Customer feedback can provide extremely valuable insight for your business and products. After every one of my company's events for entrepreneurs, we send out a
short survey to the folks who came asking for their feedback on the event. A few days later, we review the feedback, both positive and negative. This feedback directly
influences what changes we make for the next event, what aspects we want to highlight more, and what parts need to stay exactly the same. This feedback is invaluable
to us, and it doesn’t cost us anything to get.

There are three reasons you should ask for customer feedback.

1. Learn what your customers like and don’t like. When you ask your customers to give you feedback on your product and or service, you’re going to
learn what they like and don’t like about it. This information is extremely useful. If you know what’s working for your customers and what isn’t, you can tweak things
to better serve your customers. For example, we’ve learned consistently that people love the intimate atmosphere at our events. But after one event, we learned that
people felt the lobby for networking was too small and uncomfortable. We fixed that by choosing a venue for the next event with a much bigger area for networking,
and our attendees liked that.
2. Make customers feel important and involved. By asking for your customers to provide you with feedback, you’re communicating that you value their
opinion, and you care about what they have to say. Your customers feel important because you’re treating them as such and they feel involved in shaping your product.
3. Constantly improve. You can consistently improve your products or services, and keep them being the best they can be. If you’re consistently listening
and seeking feedback, you always have a pulse on what’s working for your customers and what’s not. Ultimately, this will lead to better business, better sales, and a
better customer experience

Online chat

Live Chat is cost efficient because of these 3 main reasons:

● It increases efficiency by allowing live chat agents handle multiple chats simultaneously, thus you don’t need to hire more agents. Intelligent live chat

software such as Live Agent allows multiple options for chat distribution and utilization.
 9

● It increases the average order value, since customers get real time advice and answers to any questions they might have. It saves „product return“ expenses

as a live chat representative can help you pick the right product or service, which suits the customer best, thus he or she will be satisfied with it and won’t need to return
it back.

● It reduces overall helpdesk centre costs by lowering the waiting queue time when compared to a call centre.

Toll-free numbers are telephone numbers with distinct three-digit codes that can be dialed from landlines with no charge to the person placing the call. Such numbers
allow callers to reach businesses and/or individuals out of the area without being charged a long-distance fee for the call.

Toll-free numbers are particularly common for customer-service calling. Toll-free service has traditionally provided potential customers and others with a free and
convenient way to contact businesses. Wireless callers, however, will be charged for the airtime minutes used during a toll-free call unless they have an “unlimited
calling” plan.

Suggestion box

A suggestion box is a device for obtaining additional comments, questions, and requests. In its most basic and traditional form, it is a receptacle with an opening, like a
voting box. The suggestion box is used for collecting slips of paper with input from customers and patrons of a particular organization.

A Survey is defined as a research method used for collecting data from a pre-defined group of respondents to gain information and insights on various topics of
interest. Surveys have a variety of purposes and can be carried out in many ways depending on the methodology chosen and the objectives to be achieved.

The data is usually obtained through the use of standardized procedures whose purpose is to ensure that each respondent is able to answer the questions at a level
playing field to avoid biased opinions that could influence the outcome of the research or study. A survey involves asking people for information through a
questionnaire, which can be distributed on paper, although with the arrival of new technologies it is more common to distribute them using digital media such as social
networks, email, QR codes or URLs.

The difference between survey and questionnaire is that the latter includes any written set of questions; while the former is both the set of questions and the process of
collecting, aggregating, and analyzing the responses from those questions. In other words, “questionnaire” describes content, while “survey” is a broader term that
describes content, method, and analysis.

Intellectual Property Rights

A right that is had by a person or by a company to have exclusive rights to use its own plans, ideas, or other intangible assets without the worry of competition, at least
for a specific period of time. These rights can include copyrights, patents, trademarks, and trade secrets. These rights may be enforced by a court via a lawsuit. The
reasoning for intellectual property is to encourage innovation without the fear that a competitor will steal the idea and/or take credit for it.

(http://www.businessdictionary.com/definition/intellectual-property-rights.html)

Copyright, Patent, Trademark & Industrial Design

Copyright is a form of intellectual property right that legally protects the creators and innovators of original works. Copyright protects creators’ expressions such as
music, painting, movie, photograph, writings etc. Individuals who wish to use works that are copyrighted must request permission from their creator. Copyright law
allows creators of original work to be paid for them. Other forms of intellectual property rights are patents and trademarks.
A patent protects innovation. It excludes others from making and selling that invention for several years.
Trademark: legally protects brand names. It gives the seller exclusive rights to use a brand name.
Industrial design: the process of designing the shape, features, etc. of manufactured products: