PRINCIPLES OF

MARKETING
MANAGEMENT
BY: MR. MANGENI DAVID
Course Objectives
The objectives of this course are to impart knowledge to students to
enable them to;
1) Explain the development of marketing and the ways it can benefit
business and organizations
2) Explain the concept of marketing planning and budgeting
3) Explain the concept of segmentation and its application
4) Identify the tools of marketing mix
5) Identify the basic differences in application of the marketing mix
involved in marketing products and services with in different
marketing contexts
Course Learning Outcomes:
By the end of the course the learners should be able to:
1) Explain the development of marketing and the ways it can benefit
business and organizations
2) Explain the concept of marketing planning and budgeting
3) Explain the concept of segmentation and its application
4) Identify the tools of marketing mix
5) Identify the basic differences in application of the marketing mix
involved in marketing products and services within different
marketing contexts.
Detailed Course Outline
Chapter 1: Marketing – An Overview / Introduction
Chapter 2: Marketing Environment
Chapter 3: Marketing Mix
Chapter 4: Marketing Planning and Strategies
Chapter 5: Product Related Decisions
Chapter 6: Introduction to Branding
Chapter 7: Pricing Decisions
Chapter 8: Distribution Strategy
Chapter 9: Promotion Mix
Chapter 10: Market Segmentation, Targeting and Positioning
Chapter 11: Services Marketing
Chapter 12: Recent Trends in Marketing
References:
Kotler, P. and Gary A.(2010) Principles of Marketing, 13th edition.
New Jersey: Prentice-Hall Publishing.
Kotler, P. and Keller, K.(2009) Marketing Management, 13th
Edition, Pearson
Tull, D. (2005) Research for Marketing Decisions
Kotler, P. (2001) Principles of Marketing
Chapter 1: Marketing – An Overview / Introduction
Chapter outline
1.0.Introduction
1.1 Meaning and Definition of Marketing
1.2 Marketing Concepts/ Philosophies
1.3 Importance of Marketing, Functions of Marketing
1.4 Difference between Marketing and Selling
1.0.Introduction/ Overview
Today, Marketing is typically seen as the task of creating,
promoting, and delivering goods and services to consumers and
businesses.
Marketers are skilled in stimulating demand for a company's
products, but this is too limited views of the tasks marketers
perform.
Just as production and logistics professionals are responsible for
supply management, marketers are responsible for demand
management.
Marketing managers seek to influence the level, timing and
composition of demand to meet the organization's objectives.

You will note that marketing executives today are involved in

marketing ten (10) types of entities which include: goods, services,
experiences, events, persons, places, properties, organizations,
information and ideas.

Goods and services contribute to the bulk of most country’s

production and marketing effort.
1.1 DEFINITION OF MARKETING
Marketing primarily refers to a total system of business activities
designed to plan, price, promote and distribute goods and services
to the present and potential customers. Thus, it covers the functions
of product planning and development, pricing, advertising and
distribution.

According to Kotler & Keller (2006),Marketing is a social process

by which individuals and groups obtain what they need and want
through creating, offering, and freely exchanging products and
services of value with others.
1.2 Marketing Concepts
A marketing concept is a philosophy that drives what type
of marketing tools are used by a company. The marketing concept a
business adopts influences the type of marketing it employs.
Core Concepts of Marketing
Core concepts include the following:
1) Need
A human need is state of felt deprivation. These needs fall in different
categories which changes from basic needs such as food, clothing, and
shelter to needs for survival, need for belongingness and self
actualization needs.
2) Wants: These are objects that will satisfy the needs e.g. a thirsty
person is deprived to drink that is, water, tea, milk etc.
3) Demand: They are wants backed by willingness and ability to pay
for them. The marketing function does not consider how many people
may want a given product but also how many will be able to buy.
4) Product: Anything that can be offered to a market to satisfy a need
or want. It covers both physical products which are goods and non-
physical products which are services and ideas.
Goods and services are not demanded for their own sake but because
of benefits they provide to the consumer.
5.Service
This is an offer made that is essentially intangible and does not result
in the ownership of anything.
A service is characterized by;
 Non- ownership
 Inseparability with provider
 Highly perishable
 Variability according to service provider
6.Customer value
This is the difference between the values a customer gains from
owning and using a product and the cost of obtaining the product.
7. Customer satisfaction
This depends on a products perceived performance in delivery value
relating to these perceptions to the buyers expectations. If the
products performance falls short of customer expectations, the buyer is
dissatisfied and vise versa.
8. Exchange
It is the act of obtaining a desired product from someone by offering
something in return.
9. Market
It is a collection of actual and potential buyers having similar needs
and they share common wants.
10. Relationship marketing
It is an act of building, maintaining and enhancing value
relationships between an organization and its stake holders
(customer; common in service marketing and business to business)
11. Idea
A concept, philosophy, image or issue
12. Marketing management
It is a process of planning, organizing, implementing and controlling
marketing activities to facilitate and expedite exchange effectively
and efficiently.
13. Marketing mix
The tactical ‘tool kit’ of product, distribution, promotion, price and
people that an organization can control in order to facilitate
Types of Marketing Concepts/ Philosophies
The five marketing concepts are production, product, selling,
marketing, and societal. The below list provides further details about
each type.
1.Production - The focus is on producing large amounts of a product
with this marketing concept. It also focuses on the product being
readily available to the customer at a low cost. The thought process
of the buyer could be, ''It's right here and it's affordable, so why not
buy it?''
2. Product - In this concept, the emphasis is on updating and
improving the quality of the product. These actions, along with
providing features that are useful and appeal strongly to customers,
allow for the product to be offered at a higher price. The thought
3.Selling - This concept relies on strong persuasion or even
aggressive selling to convince as many customers as possible to buy.
There is less emphasis on the needs of the purchaser and more
emphasis on making the sale. The thought process of the consumer
might be, ''Ok, ok! You've convinced me. I'll buy it.''
4.Marketing - This concept focuses on the needs and desires of the
customer.
The goal is to deliver a high-value product that satisfies the
consumer. The thought process of the purchaser might be, ''It's just
what I need and want! I'm pleased to buy it.''
5.Societal Marketing emphasizes social responsibilities and suggests
that to sustain long-term success, the company should develop a
marketing strategy to provide value to the customers to maintain and
improve both the customers’ and society’s well-being better than the
competitors.
The societal marketing concept has developed from the conflict
between individual consumers’ short-term needs and society’s long-run
well-being.
1.3 Importance of Marketing, Functions of Marketing
Marketing functions are the foundation for the work that marketing
professionals do. Each function comprises a set of responsibilities and
tasks for a marketing team to design, organize and execute a successful
campaign. There are seven widely accepted marketing functions that
contribute to the overall work of marketers. These functions are:
1) Promotion
2) Selling
3) Product management
4) Pricing
5) Marketing information management
6) Financing
7) Distribution
1. Promotion
Promotion fosters brand awareness while educating target audiences
on a brand's products or services.
It emphasizes introducing potential consumers to your brand. This
function of marketing varies in form, and marketing professionals tailor
each form to relate to a particular product, brand or target audience.
May include any of the following strategies:
1) Email marketing
2) Social media advertisements
3) Public relations
4) Digital or print advertising
5) Content marketing
 Brand partnerships
 Influencer marketing
 Events
Each of these methods attempts to generate conversation and
excitement about a product or service.
However, the promotion itself often requires the support of other
marketing functions to be successful.
2. Selling
Selling is a function of marketing that comprises communicating with
potential customers and pursuing sales leads.
It's important for marketing professionals to pursue sales leads with
subtlety, which helps them build relationships with potential customers.
As communication with a potential customer progresses, successful
marketers may introduce their product and answer questions customers
may have.
Effective selling techniques can help you distinguish your brand from
competitors.
Marketers and sales people may collaborate to determine how to best
position their product within their market and sell it to potential
customers.
3. Product management
Product management includes the development, design and
improvement of products or services.

The role of a marketer in product management is to ensure that a

finished product meets customer needs.

This includes examining the overall visual of the product, its

usefulness and how it's delivered. Some product management
strategies include:
Analyzing competitors: Researching and analyzing your
competitors equips you with information to develop a product that
rivals or surpasses theirs.
4. Communicating with customers: This strategy provides helpful
insight into ways to improve your products before they reach the
market.
Implementing feedback: It's important for marketing professionals to
gather feedback from several areas—both inside and outside their
organization—to improve their production processes.
Conducting market research: Researching similar products helps a
marketing team determine what customers want and how to satisfy
them.
Coordinating with other departments: Collaborating with other
teams in your organization prepares your entire company to release a
product, generate ideas for distribution and deliver products
seamlessly.
5. Pricing
Establishing a price for a product incorporates several factors of cost
and value.
It can be challenging to determine a price for your product, but using
in-depth market research can help you make an informed decision.
Whatever price you choose for your product, it's important for your
promotions and branding to match its price.
For example, if you sell a handbag for $1,000, you might market it as a
luxury item.
This emphasizes your product's value, which could convince customers
to purchase your item.
6. Marketing information management
You can optimize your marketing strategies when you focus on data
and information.
It's important to collect and store data, such as customer preferences
and demographics. Often, this data directly relates to your target
audience for your products and services.
You can gather relevant information from various marketing tools,
such as:
1) Surveys
2) Online reviews
3) Social media engagements
4) Market research reports
Each marketing tool provides unique data and feedback, so choosing
the right one depends on your specific needs.
For example, if your team wants to measure the effectiveness of your
last social media campaign, you could research the number of followers
that your brand's accounts gained during the campaign.
This can help you determine whether your efforts succeeded in
increasing social media engagement.
6. Financing
Financing is a marketing function that involves securing funding—
either internally or externally—to create marketing campaigns.
 It's important for marketing teams to secure enough availability in
their annual budget to improve previous marketing campaigns and
remain updated with industry trends.
 A marketing team can demonstrate its added value to its
company if revenue continues to increase due to high-quality
marketing campaigns.
 This upward trajectory might also allow that team to secure future
funding, as they can demonstrate a quantifiable positive return on
their investment.
7. Distribution
Distribution is the process of transporting your company's products
or services to your customers.
There are several physical and digital methods of distribution,
including:
1) Online stores
2) Catalogs or magazines
3) Sales calls
4) Retail stores
5) Wholesalers
Marketers often choose the channel of distribution that best fits a
particular product, brand or target audience.

It's important to choose a location to sell your product that your

target audience often visits.

Distribution is a function of marketing that requires collaboration

across departments to ensure that each product reaches your
consumers in its intended fashion.
1.4 Difference between Marketing and Selling
Key Differences
Sales and marketing are both critical to the success of a business.
They are both responsible for generating revenue and growth.
However, they are two distinct functions with different goals and tools.
Marketing creates awareness and demand for a company's products or
services. This can be done through various marketing concepts and
channels, such as paid advertising, email marketing, social media, and
content marketing. Marketing refers to finding and generating leads
that can be passed on to the sales function.
The sales function is responsible for converting leads into customers.
They do this through direct interaction with potential customers.
They use tools such as emails, newsletters, and personal relationships
to close deals.

NB. Both marketing and sales are important, but they serve different
purposes.
Adopting a holistic approach that incorporates both functions will help
ensure success.
END