Downloadable Fundamentals of Marketing

Fundamentals of Marketing
Fundamentals of Marketing presents a model for creating and capturing customer value
to understand consumers. This is relevant to those needing to master key areas of the
business to make value-based choices for consumers.
Click on the "Start course" button above to begin.
MODULE 0: GETTIN G STAR TED
Course Information
MODULE 1: IN ITIATE A MAR KETIN G APPR OACH
Module 1: Initiate a Marketing Approach
01 / 01: Practising Marketing
01 / 02: Market De nition
01 / 03: Market Research
Module 1 : Quiz
MODULE 2: FR OM STR ATEGY TO OPER ATION S
Module 2: From Strategy to Operations

02 / 01: Strategic Marketing
02 / 02: Operational Marketing
Module 2 : Quiz
MODULE 3: FOCUSIN G ON TH E OFFER
Module 3: Focusing on the Offer
03 / 01: Product
03 / 02: Brand
03 / 03: Price
Module 3 : Quiz
MODULE 4: FOCUS ON COMMER CIAL ACTION
Module 4: Focus on Commercial Action
04 / 01: Distribution
04 / 02: Communication
Module 4 : Quiz
CON CLUSION
Fundamentals of Marketing Conclusion

Lesson 1 of 20
Course Information
// Module 00
Course Introduction
Course Welcome
Welcome to the Fundamentals of Marketing course. In this course, we aim to help those who need to
master key areas of the business to make value-based choices for consumers through foundational
marketing principles.
Course Information
This course aims to give you a good grasp of foundational marketing principles to make important
customer-based decisions.
This course aims to give you a brief overview of fundamental marketing information and
practice. It is intended as an introduction to the industry's principles and is by no means
extensive nor exhaustive.
This course is comprised of four modules and several learning components to aid your
learning.
You will encounter several knowledge checks throughout each module to help you self-
assess your understanding.
Each module has a final quiz to assess your understanding of the material. Please
complete the quiz as required to progress to the next module.
Learning Outcomes
The component below will help you understand what you can expect to learn through the course,
including the learning outcomes for each module.
Click each heading below to expand the window.
Course Learning Outcomes

–
The Fundamentals of Marketing course aims to assist those who need to
master key areas of business, to help them understand the basic conditions of
good marketing practice and market conditions. The learning outcomes for this
course are listed below.
Define key marketing strategies.

Understand market segmentation practices.
Recognise different marketing channels.
Classify brand and product characteristics.
Distinguish between marketing products and services.
Estimated time for the course: 4 hours
Module 1 Learning Outcomes

–
In Module 1, we will begin to understand the past, present, and future of
marketing by examining the product, selling, and marketing concepts. The
learning outcomes for this module are listed below.
Understand basic marketing competencies and challenges.
Discern marketing approaches for customers and competitors.
Recognise business vs consumer customers and their behaviours.
Classify market research types and practices.
Estimated time for module: 1 hour

–
Module 2 will help us to understand how markets can be segmented to more
accurately reach the right audience. The learning outcomes are listed below.
Classify market segmentation categories.
Distinguish between business and consumer markets.
Understand how to market services.
Classify product offering strategies.

–
Module 3 will help us to understand the makeup of products, which strategies
to use in communicating a product's value, and how we can determine a
product's pricing. The learning outcomes are listed below.
Recognise product types and lifecycles.
Understand branding strategies.
Classify types of pricing.

–
Module 4 is concerned with the marketing channels through which consumers
receive their purchases. We will outline the differences between receiving
physical products, services, and digital equivalents. The learning outcomes are
listed below.
Recognise and classify distribution channels.
Understand channel integrations.
Determine salesforce importance and how to define it.

Distinguish marketing communication processes.
Differentiate between traditional and digital channels.
Course Navigation
This course is designed for linear navigation. However, you are welcome to freely move through the
course as you require. Use the navigation bar on the left-hand side of your screen to skip units or
modules. Although navigation is not fixed, you are encouraged to complete all the units and modules
to supplement your existing knowledge.
Copyright Notice
All images and other learning materials in this course are

presented under licence and comply with fair use protocols.
Course Credits
Below are the credits for the sources used in this course.
1 Armstrong, G., Kotler, P., & Opresnik, M. (2020). Marketing: An Introduction. Pearson
Education.
2 Brady, M., Goodman, M., Hansen, T., Keller, K., & Kotler, P. (2019). Marketing Management
(4th ed.). Pearson Education.
3 Blythe, J. & Martin, J. (2019). Essentials of Marketing (7th ed.). Pearson Education.
4 Armstrong, G. & Kotler, P. (2020). Principles of Marketing (18th ed.). Pearson Education.
Click Continue to learn how to define marketing.
C O NT I NU E
Marketing Defined
What is marketing? Many people think of marketing as only selling and advertising. However, selling
and advertising are only the tip of the marketing iceberg.
Scroll through the images below by clicking on the arrow buttons to the left and right. Read the
captions for a basic introduction to marketing.
Today, marketing must be understood not in the sense of making
a sale—“telling and selling”—but in the sense of satisfying
customer needs.
If the marketer engages consumers effectively, understands their
needs, develops products that provide superior customer value,
and prices, distributes, and promotes them well, these products
will sell easily.
Selling and advertising are only part of a larger marketing mix. It is
a set of marketing tools that work together to engage customers,
satisfy customer needs, and build customer relationships.
S TA R T C O U R S E
Lesson 2 of 20
// Module 01
Initiate a marketing approach
Module 1: Introduction
Welcome to Module 1: Introduction to Fundamentals of Marketing. In this module, you will be
introduced to the basics of marketing and learn why it is critical to the success of every organization.
In recent years, marketers have assembled a host of new marketing approaches that do more than just
blast out mass messages. Today’s marketers want to enrich customer experiences with their brands. In
this module, we will understand the basis behind marketing practice.
Click to flip the cards below for a short summary of each unit.
We will investigate the
Unit 1 progression of marketing
from past to present.
We will look at measures to

Unit 2 define the market, whether
businesses or customers.
We will explore market

Unit 3 research methods to
understand consumers.
Quiz Module 1 quiz.
1 Understand basic marketing competencies and challenges.
2 Discern marketing approaches for customers and competitors.
3 Recognise business vs consumer customers and their behaviours.
4 Classify market research types and practices.

Click Continue to progress to Unit 1.
C O NT I NU E
Lesson 3 of 20
01 / 01: Practising Marketing
// Module 01/01
practising marketing
The Marketing Process

Marketing, more than any other business function, deals with customers. The simplest definition is
this: Marketing engages customers and manages profitable customer relationships. The two-fold goal
of marketing is to attract new customers by promising superior value and to keep and grow current
customers by delivering value and satisfaction.
Click to flip the cards below and read more about the marketing process.
Understand the marketplace
and customer needs and
wants.
1 of 5
Design a customer value-

driven marketing strategy.
2 of 5
Construct an integrated
Construct an integrated
marketing program that
delivers superior value.
3 of 5
Engage customers, build

profitable relationships, and
create customer delight.
4 of 5
Capture value from

customers to create profits
and customer equity.
5 of 5
This five-step model of the marketing process creates and captures customer value. By creating value
for consumers, companies in turn capture value from consumers in the form of sales, profits, and long-
term customer equity.
The Kodak Case Study
Let us examine Kodak as a case study for the principles

discussed in this unit.
Scroll down to view the full story.

1880
Kodak's Establishment
George Eastman founded Kodak based on a method for dry-plate photography.
1888
The Kodak Camera
Eastman introduced the Kodak camera, which used glass plates for capturing images. Looking to
expand the market, Eastman next developed film and the innovative little Kodak Brownie film
camera.
The 20th Century
Kodak's Success
Although Kodak also developed innovative imaging technologies for industries ranging from
healthcare to publishing, cameras and film remained the company’s massive cash cow.
1975
The Digital Camera Invented
Kodak engineers invented the first digital camera. However, failing to recognise the mass-market
potential of digital photography and fearing that digital technology would cannibalise its precious
film business, Kodak shelved the digital project.
Late 20th Century
Film-Focused Innovation
Company managers simply could not envision a filmless world. So Kodak held fast to film and
focused its innovation and competitive energies on making better film and out-innovating other
film producers.
Present
Competitor Myopia
It wasn’t competing filmmakers that brought Kodak down. It was the competitor Kodak didn’t see
soon enough—digital photography and cameras that used no film at all.
Now that we understand the challenge of being product-focused, rather than market-focused, let us
understand the differences between marketing and selling.
The Evolution of the Company Philosophy: Production,

Selling, Marketing
It is easy to confuse selling and marketing. However, these actions occupy different domains and alter
the product's dissemination focus.
Click on the headings below to learn more.
PR O DU CT IO N S E L L IN G MA R K E T IN G
The Product Concept is a philosophy preoccupied with the technical

characteristics of the offer. Therefore, the organisation should devote its energy
to making continuous product improvements.
The production philosophy indicates that consumers prefer products that are
widely available and inexpensive. Managers of production-orientated at
businesses concentrate on achieving high production efficiency, low costs, and
mass distribution. Marketers use the production concept when they want to
expand the market.
The Selling Concept is preoccupied with the seller’s need to convert his product
into cash. This leads to large-scale selling and promotion effort.
The selling philosophy holds that consumers and businesses won’t buy enough.
It is practised most aggressively with unsought offerings and when firms with
overcapacity aim to sell what they make, rather than make what the market
wants.
The Marketing Concept "is preoccupied with the idea of satisfying the needs of
the customer by means of the product and the whole cluster of things
associated with creating, delivering, and finally consuming it." (Levitt, T. (1960).
Marketing myopia in Harvard Business Review, 50–64.

The marketing philosophy emerged in the mid-1950s as a customer-centred,
sense-and-respond philosophy to achieve customer satisfaction at a profit. The
marketing philosophy holds that achieving organisational goals is being more
effective than competitors in creating, delivering, and communicating superior
customer value to your target market.
Image Accessibility Description
–
No creative process is truly complete until it manifests a tangible reality. Whether your idea is an action
or a physical creation, bringing it to life will likely involve the hard work of iteration, testing, and
refinement.
Just be wary of perfectionism. Push yourself to share your creations with others. By maintaining an open
stance, you’ll be able to learn from their feedback. Consider their responses new material that you can
draw from the next time you’re embarking on a creative endeavor.
Now that we have an understanding of the three basic marketing approaches, let us examine
marketing and selling in more detail.
Selling vs Marketing
Below is a graphic that details the differences between selling and marketing.
Click on the Plus signs (+) below to learn more.
 


The Selling Concept
The selling concept takes an inside-out view that focuses on existing products and heavy selling. The aim is to sell
what the company makes rather than making what the customer wants.

Production
Production is a product-focused process where products are developed for dissemination, rather than the
development of products that deliver customer value. This includes efforts to push products to customers where
those products may not necessarily be desired.

The Aims of Selling
A sales-focused plan will emphasise distribution of products to maximise profits through a higher product sales
rate. The customer's preference is likely not taken into account.

The Marketing Concept
The marketing concept takes an outside-in view that focuses on satisfying customer needs as a path to profits.

The Aims of Marketing
Marketing aims to delight customers through careful consideration of meeting customer and market needs. This
requires putting effort into investigating customer preferences.
The Current Challenges of Marketing

Marketers have certain challenges as a result of recent technological advancements. However, these
advancements create additional opportunities in reaching customers.
Read the introduction below to learn more.

Consumer Capabilities
Technology, globalisation, and social responsibility have dramatically changed the

marketplace, bringing consumers and companies new capabilities.
Click the Start button to learn about consumers' new capabilities.

Step 1
New Consumer Realities
A generation of digital natives exists who are the first generation that grew up with
technology. The internet, mobile technology, and social media are therefore not
something they have had to adapt to.
Step 2
Internet
Consumers use the internet as a powerful interaction, information, and purchasing aid.
Marketing departments need to ensure that their operations can cater for this through
allocating budgets across multiple technologies and contact points.
Step 3
Mobile
Consumers embrace mobile to purchase on the go at any time. They increasingly

integrate smartphones and tablets into their daily lives, with the majority of European
smartphone owners using their devices to research products and make purchases.
Step 4
Social Media
Consumers tap into social media. Beyond the four distinctive roles a consumer plays in
the market place (seeker, buyer, payer, and user), there is a fifth consumer role:
evangeliser. Personal connections and user-generated content thrive on social media
sites.
Step 5
Hostility
Consumers reject marketing practices they find inappropriate. Consumers today can be
less tolerant about undesired marketing practices. Consumers are more marketing-savvy
today, and many are cynical about advertising efforts.
Summary
The previous criteria present marketers with both limitations and opportunities. It is the
marketer's prerogative to identify the means to reach customers in meaningful ways that
boosts the brand's profile.
Company Capabilities
Given these new marketing realities, what philosophy should guide a company’s marketing efforts?
Marketing should be as savvy as its users to determine what drives customer value.
Introduction
–
Technology, globalisation, and social responsibility have generated a new set of
capabilities to help companies cope with and respond to the consumer
challenges.
Internet
–
Companies can use the internet as a powerful information and sales channel
with increased personalisation and customisation.
Mobile
–
Companies embrace mobile and location-dependent information.
Data Analytics
–
Companies use data analytics for richer insights about markets, customers,
prospects, and competitors.
Automation
–
Companies are moving towards increased automation, robotics, and the
Internet of Things (IoT). The Internet of Things (IoT) at its most basic is where
‘things’ communicate with ‘things’, so that data and information is transferred
from product to system to product over the internet without the need for
human intervention.
The Near Future of Marketing
Marketing has evolved from a product-driven era to the current era that is driven by the growth of the
internet. Now, marketing managers rely on technology to achieve data-driven personalisation and
focus on customer-centric marketing.
Now that we understand the current conditions of marketing, let us conduct a short investigation into
the development of digital communication and how marketing will evolve.
Complete the exercise below by matching the internet phase to its

characteristic.
Web 1.0 Static and transactional web

Web 2.0 Social and the mobile web
Web 3.0 Semantic web (read by data)
Web 4.0 The intelligent web (AI, IoT)
Emotional connection between

Web 5.0
humans and the web
SUBMIT
We now understand the history and trajectory of marketing. How do we begin creating a marketing
plan that aligns with customer needs and habits? In the next unit, we will learn about creating a
marketing strategy.
C O NT I NU E
Lesson 4 of 20
01 / 02: Market Definition
// Module 01/02
market definition
Basic Steps of a Marketing Plan

A marketing plan consists of eight distinct components to formulate a basic customer-reaching
strategy.
Click on the headings below to learn about each step of a basic marketing plan.
Executive Summary
–
Presents a brief summary of the main goals and recommendations of the plan
for management review, helping top management find the plan’s major points
quickly.
Current Marketing Situation

–
Describes the target market and the company’s position in it, including
information about the market, product performance, competition, and
distribution.
Threats and Opportunities Analysis

–
Assesses major threats and opportunities that the product might face, helping
management to anticipate important positive or negative developments that
might have an impact on the firm and its strategies.
Objectives and Issues

–
States the marketing objectives that the company would like to attain during the
plan’s term and discusses key issues that will affect their attainment.
Marketing Strategy
–
Outlines the broad marketing logic by which the business unit hopes to engage
customers, create customer value, and build customer relationships, plus the
specifics of target markets, positioning, and marketing expenditure levels.
Action Programs
–
Spells out how marketing strategies will be turned into specific action programs
that answer the following questions: What will be done? When will it be done?
Who will do it? How much will it cost?
Budgets
–
Details a supporting marketing budget that is essentially a projected profit-and-
loss statement. It shows expected revenues and expected costs of production,
distribution, and marketing. The difference is the projected profit. The budget
becomes the basis for materials buying, production scheduling, personnel
planning, and marketing operations.
Controls
–
Outlines the controls that will be used to monitor progress, allow management
to review implementation results, and spot products that are not meeting their
goals. It includes measures of return on marketing investment.
We will discover more about each of these marketing plan components as we progress through the
units and modules of this course.
Current Marketing Situation

Let us investigate the concept of the current marketing situation in more depth. A marketer's efforts
will be spent here to analyse market conditions. This analysis will cascade into related marketing plan
components.
Long-click to drag each statement tile to the correct drop area to understand more about current
market situations.
Market Description
De ne the market De ne the segments
Factors that affect customer

Review customer needs
purchasing
Product Review
Sales Prices
Gross margin Major product lines
Competition
Identify competitors Market position

Distribution
Channel developments Channel partners
Marketers use Several "Lenses"

Customer needs are the guiding force for a good marketing campaign. A marketing campaign consists
of specific strategies for target markets, positioning, the marketing mix of demographics, and
marketing expenditure levels. It outlines how the company intends to engage target customers and
create value in order to capture value in return.
Note that marketing campaigns typically differ between the business to business (B2B) and business to
consumer (B2C) markets.
Continue reading to differentiate between each buyer type.
B2B Versus B2C Marketing: A Model of Business Buyer Behaviour

Business buying decisions are affected by a complex combination of environmental, interpersonal, and
individual influences, but with an extra layer of organisational factors thrown into the mix. The
business marketer must learn who participates in the decision, each participant’s relative influence, and
what evaluation criteria each decision participant uses.
Engage with the activity below to learn more.

Marketing is All About Buyers
How can we understand business buyers through their behaviours and create strategies
to cater to their habits?
Click start below to learn more.

Step 1
The Business Buying Center
The decision-making unit of a buying organisation is called its buying center. It consists
of all the individuals and units that play a role in the business purchase decision-making
process. The buying center concept presents a major marketing challenge.
Step 2
Buying Decision Process
Within the organisation, buying activity consists of two major parts: The buying center,
composed of all the people involved in the buying decision, and the buying decision
process. The model shows that the buying center and the buying decision process are
influenced by internal organisational, interpersonal, and individual factors as well as
external environmental factors.
Step 3
Major Types of Buying Situations
There are three major types of buying situation:
1. Straight rebuy.
2. Modified rebuy
3. New task.
Over the next few screens, we will learn about each buying type's characteristics.
Step 4
Straight Rebuy
A business buying situation in which the buyer routinely reorders something without
modifications.
Step 5
Modified Rebuy
A business buying situation in which the buyer wants to modify product specifications,
prices, terms, or suppliers.
Step 6
New Task
A business buying situation in which the buyer purchases a product or service for the
first time.
Step 7
Systems Selling
Buying a packaged solution to a problem from a single seller, thus avoiding all the
separate decisions involved in a complex buying situation.
Summary
We now understand the conditions for business buyers, and that both the business
center and the buying decision process need to be considered to persuade buying
decisions with many stakeholder decisions.
Continue reading below to understand more.
The Business Buyer Stimuli Graph

The graph below shows a model of business buyer behaviour. In this model, marketing and other
stimuli affect the buying organisation and produce certain buyer responses. To design good marketing
strategies, marketers must understand what happens within the organisation to turn stimuli into
purchase responses.
In some ways, business markets are similar to consumer markets, but there are some major
differences, especially in the nature of the buying unit, the types of decisions made, and the decision
process.
Study the image below to understand more about business buying decisions.
B2B Versus B2C Marketing: A Model of Consumer Buyer Behaviour
Many levels of factors affect our personal buying behaviour—from broad cultural and social influences
to motivations, beliefs, and attitudes lying deep within us.
Marketers can measure the what, where, and when of consumer buying behaviour, but it is difficult to
“see” inside the consumer’s head and figure out the whys of buying behaviour (that’s why it's called the
black box). Marketers use many resources trying to figure out what makes customers tick.
Our buying decisions are affected by an incredibly complex

combination of external and internal influences.
People’s buying decisions reflect and contribute to their lifestyles—their whole pattern of acting and
interacting in the world. Cultural factors exert a broad and deep influence on consumer behaviour.
Marketers need to understand the role played by the buyer’s culture, subculture, and social class.
Long-click to drag the cards to the correct drop area to classify these categories.
Cultural
Culture Subculture
Social class
Social
Groups Social networks

Family Roles
Status
Personal
Age Life cycle stage
Occupation Economic situation

Lifestyle Personality
Self-concept
Psychological
Motivation Perception
Learning Beliefs
Attitudes
We now understand the buying decisions of businesses and customers, including the stimuli that will
affect their choices.
Click Continue to learn more about creating effective buying choices.
C O NT I NU E
Marketing is About Offers

Marketing mix planning begins with building an offering that brings value to target customers. This
offering becomes the basis on which the company builds profitable customer relationships.
Click to flip the cards to learn more.
Anything that can be offered to

a market for attention,
Product acquisition, use, or
consumption that might satisfy
a want or need.
An activity, benefit, or
satisfaction offered for sale
Service that is essentially intangible
and does not result in the
ownership of anything.
A market offering often

includes both tangible goods
Experiences
and services to create and
manage customer experiences.
Marketing is About Competition

Marketers don't make decisions on an empty white page. Today’s competitive market, however, often
dictates that companies reformulate their marketing strategies and offerings several times over.
Economic conditions change, competitors launch new assaults, and buyer interest and requirements
evolve. Different market positions can suggest different market strategies.
Using the market approach, we define competitors as

companies that satisfy the same customer need.
Click through the tabs below to learn more about competitors.
IDE N T IFYIN G CO MPE T IT O R S A N A L YS IN G CO MPE T IT O R S S IZ IN G CO MPE T IT O R S
A company is more likely to be hurt by emerging competitors or new

technologies than by current competitors, since companies tend to be more
alert to known competitors and their market activities.
We can examine competition from both an industry and a market point of view.
An industry is a group of firms that offers a product or class of products that are
close substitutes for one another.
Marketers classify industries according to:
number of sellers,
degree of product differentiation,
the number of new competitors entering the industry,
mobility and exit barriers,
cost structure,
degree of vertical integration between a company and its suppliers and/or
buyers, and
degree of globalisation.
Once a company identifies its primary competitors, it must ascertain their

strategies, objectives, strengths, and weaknesses.
Strategies: A group of firms following the same strategy in a given target market
is a strategic group.
Objectives: It is assumed that each competitor pursues some mix of objectives:

Current profitability, market-share growth, cash flow, technological leadership,
and service leadership.
A company needs to gather information about each competitor’s strengths and

weaknesses.
In general, a company should monitor three variables when analysing

competitors:
1. Share of market: The competitor’s share of the target market.
2. Share of mind: The percentage of customers who named the competitor in

responding to the statement, "Name the first company that comes to mind
in this industry."
3. Share of heart: The percentage of customers who named the competitor

in responding to the statement, "Name the company from which you would
prefer to buy the product."
Types of Market Leaders

Having identified and analysed its competitors, a company will decide on a competitive strategy.
Although marketers assume that well-known brands are distinctive in consumers’ minds, unless a
dominant firm enjoys a legal monopoly, it must maintain constant vigilance.
We can gain further insight into competitive behaviour by classifying firms by the roles they play in the
target market: leader, challenger, follower, or nicher.
Match the market competitor to its market share to understand a

hypothetical market structure.
Market leader 40% of market share
Market challenger 30% of market share

Market follower 20% of market share
Market nicher 10% of market share
SUBMIT
Now that we understand the components of a good marketing strategy, where can we gain the
necessary information to apply the strategy? We will learn more about market research in the next
unit.
C O NT I NU E
Lesson 5 of 20
// Module 01/03
market research
Use Cases of Market Research

In the previous unit, we determined market conditions through different types of buyers, different
types of offers, and different competitors. How can we apply these concepts?
Six Steps of the Market Research Process

Effective marketing research follows six distinct steps. We illustrate them with the situation shown in
the following case.
Click the cards to flip and see each step.
Step 1:
Define the problem and
research objectives.
1 of 6
Step 2:
Develop the research plan.
2 of 6
Step 3:
Collect the information.
3 of 6
Step 4:
Analyse the information.
4 of 6
Step 5:
Present the findings.
5 of 6
Step 6:
Make the decision.
6 of 6
Problem Definition
Defining the problem too broadly or too narrowly is unwise. Unclear collection of customers’ needs will
result in unnecessary information. For instance, information about a customer's willingness to pay a
certain price for a mobile TV service is taking too narrow view.
A good question is: How important is it to be the first mover in the market, and how long can the
company sustain its lead? To help in designing the research, management should first spell out the
decisions it might face and then work backwards:
Should the company offer a mobile TV service?
If so, should the offer be tailored to a specific consumer segment?

What price(s) should be charged for the service?
What types of mobile phones, data cards, etc. should complement the service?
Now management and market researchers are ready to set specific research objectives:
1 What types of customer would respond positively to a mobile TV service?
2 How many customers are likely to sign up for this service at different price levels?
3 How many additional customers might choose their company over competitors because
of this new service?
4 How much long-term goodwill will this service add to the company image?
5 How important is a mobile TV service to consumers relative to other services, such as

video messaging or game playing?
Zoom In or Zoom Out: The Scope of Your Market Research

Not all research projects can be this specific. Some research is exploratory—its goal is to shed light on
the real nature of the problem and to suggest possible solutions or new ideas. Some research is
descriptive—it seeks to quantify demand. Some research is causal—its purpose is to test a cause-and-
effect relationship.
CO N S U ME R
CU L T U R E S O CIA L GR O U PS IN DIV IDU A L
B E H A V IO U R
Research can be conducted at three different levels: Culture, social groups, and
the individual. Consumer behaviour is the study of how individuals or groups
buy, use, and dispose of goods, services, ideas, or experiences to satisfy their
needs and wants.
The needs and wants of consumers often vary across different cultures,
situations, and individual characteristics. The study of consumer behaviour can
be divided into these three interdependent dimensions.
CO N S U ME R
B E H A V IO U R
Culture is the fundamental determinant of a person’s wants and behaviour.

Culture can be thought of as the blueprint for human behaviour. In a culture,
values and norms are developed that serve as guidelines for that behaviour.
Each culture consists of smaller subcultures that provide more specific
identification and socialisation for their members.
CO N S U ME R
B E H A V IO U R
Social factors such as family and social roles, reference groups, and statuses
affect consumers’ buying behaviour.
A person’s reference groups are all the groups that have a direct (face-to-face)
or indirect influence on their attitudes or behaviour.
The family is the most important consumer buying organisation in society, and
family members constitute the most influential primary reference group.
We can define a person’s position in each group to which he belongs in terms of
role and status. A role consists of the activities a person is expected to
perform. Each role carries a type of status.
CO N S U ME R
B E H A V IO U R
A buyer’s decisions are also influenced by personal characteristics. These include

the buyer’s age and stage in the life cycle, occupation and economic
circumstances, personality and self-concept, and lifestyle and values. Because
many of these characteristics have a direct impact on consumer behaviour, it is
important for marketers to follow them closely.
Develop the Research Plan
The second stage of marketing research is to develop the most efficient plan for gathering the needed
information and what that will cost.
To design a research plan, one needs to make decisions about:
the data sources,
research approaches,
research instruments,
Data Sources
The researcher can gather primary data, secondary data, or both.
Primary data are data freshly gathered for a specific purpose or for a specific research
project, such as identifying Norwegian consumers’ preferences for various supermarket
formats.
Secondary data are data that were collected for another purpose and already exist
somewhere, such as in surveys or market reports from research organisations or
government agencies. Secondary data may also take the form of internal company
information, such as sales records or financial data.
Research Approaches
Marketers collect primary data in five main ways: Observation, focus groups, surveys, behavioural and
big data, and experiments.
Click on the headings below to learn more about each research method.
Observational Research
–
This is when researchers can gather fresh data by observing the relevant actors
and settings, in an unobtrusively way as they shop or as they consume
products.
Focus Group Research

–
This is a gathering of six to ten people carefully selected by researchers based
on certain demographic, psychographic or other considerations and brought
together to discuss at length various topics of interest.
Survey Research
–
This is when companies undertake surveys to learn about people’s knowledge,
beliefs, preferences and satisfaction, and to measure these magnitudes in the
general population.
Behavioural and Big Data

–
This is data left by the customers during their purchasing behaviour in store-
scanning data, catalogue purchases and customer databases. Marketers can
learn much by analysing these data. Actual purchases reflect consumers’
preferences and are often more reliable than statements they offer to market
researchers.
Experimental Research
–
The most scientifically valid research is experimental research, designed to
capture cause-and-effect relationships by eliminating competing explanations of
the observed findings. If the experiment is well designed and executed, research
and marketing managers can have confidence in the conclusions.
Research Instruments
In the previous section you learned about the main research approaches that marketers use to collect
primary data. Depending on the research problem and approach taken, marketing researchers can
choose between a number of research instruments for collecting primary data.
Questionnaires
A questionnaire consists of a set of questions presented to respondents. Because of its flexibility, it is
by far the most common instrument used to collect primary data. Researchers need to carefully
develop, test, and de-bug questionnaires before administering them on a large scale. The form,
wording, and sequence of the question can all influence the response.
Closed questions specify all the possible answers and provide answers that are easier to interpret and
tabulate.
Open-ended questions allow respondents to answer in their own words and often reveal more about
how people think. They are especially useful in exploratory research, where the researcher is looking for
insight into how people think rather than measuring how many people think a certain way.
Now that we understand how to collect information, let us examine the different types of information
needed.
Click the Continue button to learn about qualitative and quantitative research.
C O NT I NU E
Quantitative Versus Qualitative Research

The purpose of research is to collect data to process it into usable information that can be used to
make management decisions. The first stage in any research process is to define the problem and set
objectives.
Introduction
–
There is considerable debate over the term "market research". Many marketers
believe that the term "marketing research" is more appropriate. Market
research is usually considered to be research into customer needs, wants, and
preferences. Marketing research is sometimes used to describe all research
carried out for the purpose of supporting marketing decisions.
Quantitative Research Methods

–
Quantitative research methodology deals with areas that can be expressed in
numbers. It will tell researchers, for example, what proportion of the population
drinks tea in the mornings and what their ages and occupations are. What it will
not do very easily is tell researchers why those people prefer tea to coffee.
Examples of Quantitative Research Methods

–
These are some of the methods used in quantitative research listed below.
Surveys: Surveys can elicit facts about the respondents’ behaviour and

possessions, can find out opinions about issues and ideas and can
sometimes elicit interpretations of the respondents’ actions or opinions.
Sampling: Sampling means choosing whom to ask. It is important to ask

enough of the right type of people to ensure that the data we get are
reasonably representative of the market as a whole.
Quantitative Statistical Methods:
Exponential Smoothing: Detect trends in the data by smoothing out

the peaks and troughs. Gives more weight to recent data.
Regression Analysis: Compares one set of data with another to show
whether a trend in one set relates to a trend in the other.
Correlation: Shows the degree to which one set of data relates to

another.
Factor Analysis: Shows which factors relate to each other by relating

them to a set of (theoretical) extra factors.
Significance Testing: Tests whether the results of a survey can be

relied on or whether they could simply have come about by chance.
Qualitative Research Methods

–
Qualitative research is to do with how people feel about the product,
advertisement, or company. The approach is usually much more probing, thus
time-consuming, than would be the case with quantitative research. Therefore,
the sample size or number of respondents will be much smaller.
Qualitative research will often tell researchers why people behave in the way
they do, but since it usually consists of subjective opinions, it can be difficult to
quantify.
Examples of Qualitative Research Methods
–
These are some of the methods used in qualitative research listed below.
Focus Groups: A group of six or eight people is recruited and invited to talk about the subject.
Observation: The researcher watches the consumers and notes their behaviour.
Video Conferencing: A group discussion conducted over a telecommunications medium.
Depth Interviews: The depth interview uses probing questions to uncover the respondent’s
deepest feelings.
Projective Techniques: Subjects are presented with ambiguous, unstructured situations and
invited to respond.
Word Association: A projective technique in which the respondent is asked to say the first thing
that comes to mind.
Alternative Research Methods
Consumer behaviour is the study of how individuals or groups buy, use and dispose of goods, services,
ideas, or experiences to satisfy their needs and wants. The needs and wants of consumers often vary
across different cultures, situations, and individual characteristics. The study of consumer behaviour
can be divided into three interdependent dimensions.
Social Listening
The internet has had a dramatic impact on how marketing research is conducted. Increasingly,
researchers are collecting primary data through online marketing research, such as the internet, mobile
surveys, online focus groups, consumer tracking, experiments, online panels, and brand communities.
With the advent of social engagement, marketers have had to adopt new methods to investigate
consumer preferences and habits without utilizing sales-driven approaches nor data collected solely for
analytics. Consumer behaviour entails active engagement through qualitative analysis to
empathetically uncover customer needs and pain points.
Sort the statements below into their correct drop areas to classify these types of online marketing
research actions.
Online Marketing Research
Create online panels Conduct online experiments

Set up virtual shopping Questionnaires on web or
environments Social Media Sites
Social Tracking
Listening online and Engaging customers online

responding quickly for valuable insights
Setting up social media

Scanning customer reviews
command centres
Data Analytics
Use online data to target Online-analysis tools to
advertisements conduct deep analysis
Analyse brand-related Mining individual online

comments networking activity
Misuse of Research Findings

Research studies can be powerful persuasion tools. Companies often use study results as claims in
their advertising and promotion. However, many research studies appear to be little more than
vehicles for pitching the sponsor’s products. In fact, in some cases, research surveys appear to have
been designed just to produce the intended effect.
Let us see a case in action. Engage in the following activity below.

Antonio's Research Statements
Meet Antonio. He has to decide how to position his product. Let us
investigate how he communicates his product's value.
CONTINUE
Scene 1 Slide 1
Continue Next Slide
Our insect poison could slowly poison
insects. Those insects then poison other
insects in the nest when it is eaten after
death. What happens next?
1 The other insects survive.
2 The other insects die.
Scene 1 Slide 2
0 Next Slide
1 Next Slide
Our product works every time. Do you
agree that this is the best product on the
market?
1 Yes, the product is the best on the market.
2 The product may not be as effective.
Scene 1 Slide 3
0 Next Slide
1 Scene 1 Slide 1
Antonio's product value communication was quite leading. Let us
speak to Nicole who will explain why.
CONTINUE
Scene 2 Slide 1
Continue Next Slide
Why was Antonio's statement leading?
He conflated the product's efficacy to best market

1
value.
2 He provided no alternative case studies.
Scene 2 Slide 2
0 Next Slide
1 Next Slide
Beware of how products are positioned, or how research findings
can be misleading to influence buyer behaviour.
START OVER

Scene 3 Slide 1
Continue End of Scenario
Now that you have completed this module's learning, click Continue to progress to Module 1 Quiz.
Please revisit any
unclear concepts in
Module 1 to prepare.
01 / 01: Practicing Marketing
UNIT 1
01 / 02: Marketing Definition
UNIT 2
UNIT 3
C O NT I NU E
Lesson 6 of 20
Module 1 : Quiz
Please complete the questions to test your understanding of Module 1's concepts.
No feedback will be provided to you at the end of each question. You can refer to Module
1 at any time to check your understanding of the concepts.
Your score needs to be 90% or higher to pass this quiz.
You can retry this quiz several times.
Once you passed this Quiz, please close the Quiz, come back to this course and click on
the continue button below to study Module 2.
Click on the button to pass the Quiz
MODULE 1 QUIZ
C O NT I NU E
Lesson 7 of 20
// Module 02
from strategy to operations
Welcome to Fundamentals of Marketing Module 2: From Strategy to Operations.
Click the Cards below to flip and see a short summary of each unit.
We will investigate the
Unit 1 strategic marketing
process.
We will look at
Unit 2 operational
marketing.
You will test your

Module 2 Quiz understanding of this
unit's concepts.
The learning outcomes for this module are listed below.
1 Know how to use two conventions matrices: PESTEL and SWOT.
2 Understand how to segment the B2B and B2C markets.
3 Understand how to target key customers.
4 Understand how to position your services or products on the market.
5 Distinguish between strategic and operational marketing decisions.
C O NT I NU E
Lesson 8 of 20
// Module 02/01
strategic marketing
Strategic Marketing and In-Depth Diagnostic Tools

Strategic marketing is an iterative process made of four key steps listed below.
1 Diagnose the market and use two conventional matrices for in-depth analysis: PESTEL and
SWOT.
2 Segment the market.

3 Target key customers.
4 Position your offer in the market.
Diagnosis Tool Focusing on the Context: PESTEL
Managers need to know where they are now if they are to be able to decide where they are going. The
PESTEL analysis is a deeper investigation of market conditions that guide strategic action and
implementation. This analysis will involve examining the internal state of health of the organisation,
and the external environment within which the organisation operates, namely:
Political
Economic
Social
Technological
Environmental
Legal
The table below contains a comprehensive list of factors to consider for each of the six topics in a
PESTEL analysis. These are just examples as a company usually does not face all of these factors.
P E S T E
P E S T E
Government Economic Population Technology

Weather
policy growth growth rate incentives
Political Age Level of

Exchange rates Climate
stability distribution innovation
Career
Corruption Interest rates Automation Environment
attitudes
Foreign Safety Environmental

Inflation rates R&D activity
trade policy emphasis policies
Disposable Health Technological Climate

Tax policy
income consciousness change change
Unemployment Lifestyle Technological Pressures

Labour law
rates attitudes awareness from NGOs
Trade Cultural
restrictions barriers
Test Your Understanding

Test your understanding of the PESTEL matrix below.
Match each term with its respective examples.

Lifestyle expectations, post-
Socio-cultural industrial society, and
demography
Information and mobile

Technological
technology
Boom-and-bust cycle and

Economics
microeconomics
Influence of parties, GDPR, and

Politics
Brexit
Weather, green and ethical

Environmental issues, pollution, waster and
recycling
Regulations and standards,

Legal
employment law
SUBMIT
Illustrations of PESTEL
Scroll down for a description of each item and the factors which affect market conditions.
Political
Influence of political parties, legislation, GDPR, and Brexit have big influences on the market. The
market will show this as it adjusts to the changes of all the variable influences from each of these
factors.
Click to flip each card to learn about political changes.
Influence of Political Parties
1 of 3
Legislation
2 of 3
Brexit
3 of 3
Economical
Macroeconomics is the study of economies at a larger scale. For example, the Boom-and-Bust cycle
shows the variance in economics, and indicates that at approximately eight-year intervals, most
national economies go into recession. This means that the production of goods and services shrinks,
jobs are lost, and businesses become bankrupt.
Microeconomics, on the other hand, is concerned with exchanges and competition. Competitive
activities are the domain of the marketer.
Click to flip each card to learn about economic changes.
Boom-and-Bust Cycle
1 of 2
Microeconomics
2 of 2
Sociocultural
A sociocultural system is a human population viewed in its ecological context and as one of the many
subsystems of a larger ecological system. Traditional class divisions are disappearing, with new ones
rising to take their place. The growth of lifestyle analysis affects the way marketers portray their target
consumers.
Click to flip each card to learn about three sociocultural changes.
Lifestyle Expectations
1 of 3
Post-Industrial Society
2 of 3
Demography
3 of 3
Technological
Information and mobile technology are crucial to good marketing. No serious marketer would consider
not having a corporate website, yet until relatively recently such websites were rare, and were often
merely "presence" sites which directed visitors to a telephone number or address.
Click to flip each card to learn about technological environmental changes.

Information Technology
1 of 2
Mobile Technology
2 of 2
Environmental
Environmental and ecological factors have come to the forefront in the past 30 years or so. In a
marketing environment, firms are having to take into account public views on these issues and are
often subjected to pressure from organised groups as well as individuals, who often define themselves
as 'green' consumers.
Click to flip each card to learn about micro-environmental influences.
Packaging
1 of 3
Recycling
2 of 3
Food Safety
3 of 3
Legal
Laws arise in two ways: Government legislation (laws created by politicians) and case law, which is the
law as interpreted by judges. Politicians can be influenced by petitions and by reasoned argument. This
is called lobbying.
Click to flip each card to learn about legal influences.
General Data Protection

Regulation or GDPR
1 of 3
Legislation
2 of 3
Health and Safety

Regulations
3 of 3
Click Continue to learn more about how companies can diagnose their operations.
C O NT I NU E
Diagnosis Tool Focusing on the

Company: SWOT
At the simplest level, managers can use SWOT analysis to take stock of the firm’s internal position.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and weaknesses are
factors that are specific to the firm; opportunities and threats arise from the external environment.
These factors can be broken down further, as shown in the table below.
Harmful to
Helpful to achieving
achieving the
the objective
objective
Internal Origin
Attributes of the Strengths Weaknesses
organisaton
External Origin
Attributes of the Opportunities Threats
environment
The Model and Its Parameters
Marketing managers would do well to conduct a SWOT analysis, both for market share, the business,
and competition. How do we conduct a SWOT analysis?
Click on each heading below to learn more about the SWOT analysis.
Strengths
–
Internal capabilities that may help a company reach its objectives.
Weaknesses
–
Internal limitations that may interfere with a company's ability to achieve its objectives.
Opportunities
–
External factors that the company may be able to exploit to its advantage.
Threats
–
Current and emerging external factors that may challenge the company's performance.
Conducting a SWOT Analysis
–
The analyser would consider each category's metrics to identify areas of improvement or to strategize
contingency plans if required in future.
Note that a threat might be turned into an opportunity if carefully repositioned and strategised. For
example, a competitor’s new technological breakthrough might lead us to consider a takeover bid, or
new legislation might provide a loophole that we can exploit while our competitors have to abide by
the new rules.
Below is an activity that outlines the SWOT analysis of a company where each statement is analysed
and considered in relation to other categories.
Long-click and drag each statement tile to the correct drop area to distinguish between strengths,
opportunities, threats, and weaknesses.
Strengths
Well-funded research and Experienced and quali ed

development department workforce
Weaknesses
Poor customer service

Outdated technology
response
Opportunities
Create new customer Research industry trends and

feedback collection customer preferences
Threats
Customers consider
Competitor has innovative
competitor product as ideal
technology
solution
Now that we understand how to do a critical analysis of the business, let us learn more about the
different markets for that business.
Click Continue to learn about market segmentation.
C O NT I NU E
Strategic Marketing in Three Steps

Strategic marketing is composed of three steps: Segmenting the market, choosing a core target, and
building a differentiating position in the market.
Step 1: Market Segmentation

Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics.
Step 2: Choosing a Core Target

Many companies select a core target market based on consumer behaviour, demographics, or any
other factors. This is often a strategic decision based on available resources or product-market fit.
Step 3: Market Positioning

Once the company has clearly selected which segment(s) it will focus on, it has to find a way to position
its offer on the market. This is the third and last step.
We will now look into each step in more detail.
Step 1: Market Segmentation

Segmentation of the market indicates that the total market of possible buyers is divided according to
different factors. This division could result in better marketing reach, product-market fit, company to
consumer values, and so forth. Below we distinguish between business market segmentation and
consumer market segmentation.
Segment Business Markets

Business-to-business markets can be divided with the same variables that are used in consumer
markets, such as geography, benefits sought, and usage rate. As it is common to find a one-to-one
relationship between buyer and seller, segmentations are closely fashioned to the needs of individual
organisations.
Below is a list of business market segmentation. Note that this is not a comprehensive list.
1 Demographics: Business characteristics, such as operations size or market niche.
2 Operating Variables: Technological availability and business usage of the technology,

including employee capabilities.
3 Purchasing Approaches: What businesses consider before purchasing products or
services.
4 Personal Characteristics: This pertains to the characteristics of individuals within the

business buying center that may influence their buying decisions and recommendations.
Click and drag and each statement to the correct drop area to determine the factors for each business
segmentation criteria.
Demographic
Industry Company Size
Location
Operating Variables
Technology User or Non-User Status
Customer Capabilities
Purchasing Approaches
Purchasing-Function
Power Structure
Organisation
Nature of Existing
General Purchasing Policies
Relationship
Purchasing Criteria Urgency
Speci c Application Size of Order
Personal Characteristics
Buyer–Seller Similarity Attitude Towards Risk
Loyalty
Segment Consumer Markets
Three broad groups of variables are used to segment consumer markets: demographics, behavioural,
and social class variables. Regardless of which type of segmentation scheme is used, the key is
adjusting the marketing programme to recognise customer differences. Below are some examples to
consider when segmenting the consumer market.
Click on each tabbed heading below to learn more about segmenting consumer markets.
DE MO GR A PH IC B E H A V IO U R A L S O CIA L CL A S S
Age Under 5, 5–10, 11–19, 20–34, 35–49, 50–64, over 65.
How large is the family unit, including children,

Family unit size
parents, grandparents, and so forth?
Is the consumer married or single? Do they have

Family life cycle children? Do they live with parents, roommates, or on
their own?
Income A range of income levels.
The type of profession held and position within their

Occupation
company.
Education Primary, secondary, college, or university.
Baby Boomers, Millenials, or Generation Xers.

Generation
Where the consumer was born. For example, Danish,

Nationality German, or Italian.
Social class
Lower, middle, upper-middle, or aristocrat.
Culture-orientated, outdoor-orientated, or sports-

Psychographic lifestyle
orientated.
Personality Introverted or extroverted.
Benefits sought Quality, service, economy, speed, or value.
Non-user, ex-user, potential user, first-time user, or

User status
regular user.
Usage rate Light, medium, or heavy.
Loyalty status None, medium, strong, or absolute.
Unaware, aware, informed, interested, desirous, or

Readiness stage
intending to buy.
Attitude to market offer Enthusiastic, positive, indifferent, negative, or hostile.

Social class can be classified using macro-criteria such as profession, education, family income, or
property value. Each social class tends to share a mix of common values that has a strong influence on
purchasing decisions.
Naming the Segments: The Examples of

Generation-Based Names
Marketers have classified potential consumers in the following generation groups. The influences that
shaped the marketing groups are incredibly important to marketers because they will shape consumer
and business markets for years to come. The Generation Xers and Millennials will outnumber the post-
Second World War Baby Boomers. They will command an awesome annual spending power and will
probably live (barring any unforeseen catastrophe) well into their eighties and nineties.
Click to flip each card below to view the different generation groups by year.
Silent - 1928 1945

Boomers - 1946 1964
Generation X - 1965 1980

Millennials - 1981 1996
Generation Z - Post 1996
Click Continue to learn more about choosing core targets.
C O NT I NU E
Step 2: Choosing Core Targets

Marketing managers may be strategic about how they select their markets based on a variety of
factors.
Engage with the interaction to learn more.
Selecting The Best Market
This interaction will help you differentiate between generalist and specialist marketing
strategies.
Click on Start below to begin.

Step 1
Generalist Strategy
We saw in Step 1 that companies simplify the market in order to have a simple and clear
view of the abstract demand. Some companies might have the chance to target all the
segments they have identified. These companies are termed generalists.
For example, Coca Cola and McDonalds have a wide demographic and can be classified
as generalist
Step 2
Specialist Strategy
Most companies prefer to avoid serving all market segments they have identified. They
may face a lack of resources in money, time, or competencies. Instead, they may prefer to
focus on key segments that fit their core market values and anticipated strategic
implementation. This type of approach is called a specialist strategy.
For example, Rolex only targets the luxury end of the watch market. Black Up cosmetic
brand is dedicated to people with dark skin.
Summary
We now understand how to differentiate generalists and specialists. Note that the
selection for each case is strategic for long-term implementation to ensure maximum
reach within those targets.
Now that we understand how to differentiate generalist and specialist strategies, continue reading to
understand how each would position themselves to their chosen market segments.
Step 3: Market Positioning

Now that we understand market segmentation and different consumer groups, we need to
understand how companies can position themselves to these different groups.
Positioning means that companies present themselves to consumers in different ways to entice more
business by meeting needs or delivering the company's value proposition. A company's positioning
will differentiate them from competitors on the market and will communicate how the company will
satisfy demand.
Scroll down to the read the case study about RyanAir's positioning strategy.
The Case Study of RyanAir
Ryanair boasts to be "Europe’s first and largest low fares airline". At the heart of the company’s success
has been the ruthless control of costs. This is best typified by Michael O’Leary, the straight-talking chief
executive, who tore into the competition at every opportunity with his no-frills-low-cost message.
The result was incredible growth in passengers. With this rapid growth came problems, as customers
started to want more than cheap fares and punctual flights. The levels of customer service and the
abrasive nature of the airline started to affect performance. Clearly, all was not right and something
had to be done to address a reputation for poor customer service and the negative perceptions of the
travelling public.
Let us examine the repositioning of RyanAir as a case study discussed in this unit. Continue scrolling to
read the case.
2013
A wide range of customer service changes were launched, including reductions in charges, easier
booking, improvements to the website, mobile platforms and an increased social media presence.
Ryanair also appointed its first marketing director.
2014
Launch of the "We are changing" campaign and its first-ever TV ad. Two million customers signed up
for the myRyanair loyalty scheme. One million customers used the mobile app and the launch of a
new business service. The result of these initiatives was a 152% increase in profits.
2015
A move away from price-focused messaging to a quality focus supported by the "Always Getting
Better" campaign, further service improvements were introduced along with 21% increase in
marketing spend. Profits for 2015 rose by 43%.
2016
The simplification of its baggage policy, new-look cabins, extra leg room, further improvements to
its mobile app now being used by eight million customers, and the launch of Ryanair Rooms
accommodation service resulted in Ryanair carrying over 100 million customers.
2017
Ryanair is the first European airline to launch on Amazon Alexa, with further improvements for
carry-on baggage, seat allocation, and the introduction of new slim-line seats that offer more leg
room. By 2017, myRyanair boasted 30 million members and the airline became the first European
airline to carry one billion customers.
Conclusion
Though still in the budget airlines sector, Ryanair has managed to reposition itself by the clever use
of service innovation and its "digital acceleration and innovation".
We have investigated market segmentation and market positioning. We will now move from strategic
marketing to operational marketing.

C O NT I NU E
Lesson 9 of 20
// Module 02/02
operational marketing
Developing an Integrated Marketing Mix

After determining its overall marketing strategy, the company is ready to begin planning the details of
the marketing mix, one of the major concepts in marketing. The marketing mix is the set of tactical
marketing tools that the firm blends to produce the response it wants in the target market.
The marketing mix consists of everything the firm can do to engage consumers and deliver customer
value. Many possibilities can be collected into four groups of variables-the four Ps.
The Notorious 4Ps Model
The marketing mix, or the 4Ps, consists of tactical marketing tools blended into an integrated program
that actually engages target customers and delivers the intended customer value.
Click on each heading below to learn about the notorious 4Ps model.
PR O DU CT PR ICE PL A CE PR O MO T IO N
Product refers to the goods and services offered by a company. These include variety, quality, design,
features, brand name, packaging, and services.
Price refers to the amount of money customers must pay to obtain the product. These include list price,
discounts, allowances, payment period, and credit terms.
Place includes company activities that make the product available to target consumers. These include
supply chains, channel coverage, channel, management, logistics, and transportation.
Promotion refers to activities that communicate the merits of the product and persuade target
customers to buy it. These include advertising, personal selling, sales promotion, public relations, direct
marketing, and digital marketing.
Below is an activity that you will use to test your understanding of the 4Ps. You have to categorise each
statement according to one of the 4Ps mentioned above.
Long-click and drag each statement tile to the correct drop area.
Product
Variety Quality
a ety Qua ty
Design Features
Brand name Packaging
Services
Price
List price Discounts

Allowances Payment period
Credit terms
Place
Supply chains Channel coverage
Channel management Logistics

Transportation
Promotion
Advertising Personal selling
Sales promotions Public relations
Direct and digital marketing

Customer Value-Driven Strategy and
Mix
Services marketing requires more than just traditional external marketing using the 4Ps. Considerable
buy-in is required at multiple fronts to provide customer value-driven services, particularly in tandem
with the salesforce.
Types of Services Marketing

Services marketing requires internal marketing and interactive marketing. Let us distinguish the two
below.
Internal marketing
This means that the service firm must orient and motivate its customer-contact employees and
supporting service people to work as a team to provide customer satisfaction. Marketers must get
everyone in the organization to be customer-centered. In fact, internal marketing must precede
external marketing.
Interactive marketing
This means that service quality depends heavily on the quality of the buyer-seller interaction during
the service encounter. In product marketing, product quality often depends little on how the product
is obtained.
In services marketing, service quality depends on both the service deliverer and the quality of delivery.
Service marketers, therefore, have to master interactive marketing skills. The figure below shows that
services marketing also requires internal marketing and interactive marketing.
Click on the plus signs (+) to learn about the types of service marketing.



Internal Marketing
Orienting and motivating customer-contact employees and supporting service employees to work as a team to
provide customer satisfaction. Service firms must sell customer-contact employees on the importance of
delighting customers.

Interactive Marketing
Training service employees in the fine art of interacting with customers to satisfy their needs. Then service firms
must help employees master the art of interacting with customers.
Operational Marketing Conclusion

You will now complete a quiz to assess your understanding of operational marketing. The quiz will be
graded and counts towards your final mark for the course.
Please revisit any
unclear concepts in
Module 2 to prepare.
UNIT 1
UNIT 2
Click Continue to progress to Module 2's quiz.
C O NT I NU E
Lesson 10 of 20
Module 2 : Quiz
MODULE 2 QUIZ
C O NT I NU E
Lesson 11 of 20
Module 3: Focusing on the Offer
// Module 03
focusing on the offer
Welcome to Fundamentals of Marketing Module 3: Focusing on the Offer.
Click to flip the cards below to see a short summary of each unit.
We will look at brands, what
Unit 1 a brand is, and a related
case study.
We will look at the terms

product and market
offering. We will
Unit 2
investigate a company’s
positioning and
differentiation strategy.
We will look at pricing

strategies, customer,
value-based pricing, cost-
based pricing,
Unit 3
competition-based
pricing, key elements of
Quiz Module 3 quiz
1 Recognise product types and life cycles.
2 Understand branding strategies.
3 Classify types of pricing.
C O NT I NU E
Lesson 12 of 20
03 / 01: Product
// Module 03/01
product
Product Life Cycle: From Conception to Recycling

The traditional term product can lead to confusion, as buyers’ market conditions normally require
companies to offer a package of tangible (traditional product attributes and benefits) and supportive
intangible (traditional service attributes and benefits) to meet the standard of continued process
verification (CPV) requirements and expectations.
This is why the term "market offering" is used, which embodies the tangible and intangible
components of this newly defined "product". Thus, the terms "product" and "market offering" are
interchangeable.
A company’s positioning and differentiation strategy must change as the product/market offering,
market and competitors change over the product life cycle (PLC). To say that a product (market
offering) has a life cycle is to assert four life cycles.
Click to flip each card to find out why the concept of "Product Life Cycle" is important for marketers.
Products (market offerings)

have a limited life.
1 of 4
Sales pass through

distinct stages, each
posing different
challenges, opportunities,
and problems to the
seller.
2 of 4
Profits rise and fall at

different stages of the
product life cycle.
3 of 4
Market offerings require

different marketing,
financial, manufacturing,
purchasing, and human
resource strategies in
each life cycle stage.
4 of 4
Now that we have understood why the product life cycle is important for marketers, we will look at the
four different stages of a product: from its introduction to its decline.
Click Continue to learn more about product life cycle patterns.
C O NT I NU E
Common Product Life Cycle Patterns

The PLC concept can be applied to analyse a product category (alcohol), a product form (white alcohol),
a product (vodka), or a brand (Absolut). Not all products exhibit a bell-shaped PLC.
Click each heading below to learn more about the four product life cycles.
IN T R O DU CT IO N GR O W T H MA T U R IT Y DE CL IN E
This is a period of slow sales growth as the product (market offering) is

introduced into the market. Profits are low or absent because of heavy expenses
associated with the
market introduction.
This is the period of rapid market acceptance and substantial profit

improvement.
This represents the slowdown in sales growth because the product (market
offering) has achieved acceptance by most potential buyers. Profits stabilise or
decline because of increased competition.
This is when sales show a downward drift and profits decline.

Plotting Product Life Cycles
Below is a series of graphs that demonstrate common PLC trends. Figure 1 illustrates the common
trend for most PLCs. However, some variations occur according to the type of product offering.
Continue scrolling to view each.
Figure 1
A. Introduction | 10
B. Growth | 30
C. Maturity | 70
D. Decline | 50
Figure 2 shows the characteristics of small kitchen appliances, such as handheld mixers and bread-
makers. Sales grow rapidly when the item is first introduced and then falls to a residual level that is
sustained by late adopters buying for the first time and early adopters replacing it.
Figure 2
A. | 30
B. | 80
C. | 40
D. | 35
Cycle-Recycle Pattern
Figure 3 describes the sales of new pharmaceutical drugs. The pharmaceutical company aggressively
promotes its new drug, which results in the initial surge of sales. Later, sales start declining and the
company responds by triggering another marketing communication push, which produces a second
cycle of sales (usually of smaller magnitude and duration than
the first).
Figure 3
A. |0
B. | 65
C. Primary Cycle | 85
D. | 50
E. | 45
F. Recycle | 65
G. | 55
H. | 45
I. | 40
Scalloped Pattern
Another common pattern is the scalloped PLC. Here, sales pass through a succession of life cycles
based on the discovery of new market offering characteristics, uses, or users.
Figure 4
A. |0
B. | 10
C. | 15
D. | 30
E. | 33
F. | 50
G. | 53
Style, Fashion, and Fad Life Cycles

Three special categories of (PLC) can be distinguished: styles, fashions, and fads. Figures 5, 6, and 7
show the rise and fall of each life cycle of the product.
Style
A style is a basic and distinctive mode of expression. Styles appear in homes (French, Italian,
Scandinavian, and Spanish), clothing (formal, casual), and art (realist, surrealist, and abstract). A style
can last for generations and go in or out of vogue.
Figure 5
Sales
Time
A. |0
B. | 40
C. | 50
D. | 40
E. | 30
F. | 40
G. | 50
H. | 40
I. | 30
Fashion
Fashion is a currently accepted or popular style in a given field. Fashions pass through four stages:
Distinctiveness, emulation, mass fashion, and decline. The length of a fashion cycle
is hard to predict.
Figure 6
Sales
S
Time
A. |0
B. | 40
C. | 50
D. | 40
E. | 20
Fad
Fads are fashions that come quickly into public view, are adopted with great zeal, peak early, and
decline quickly. Generally speaking, fads are characterised by a short life cycle and tend to attract only a
limited following. Fads fail to survive because they do not normally satisfy a
strong need.
Figure 7
Sales
Time
A. |0
B. | 60
C. |0
The marketing winners are those who recognise fads early and leverage them into market offerings
with staying power.
Click Continue to understand product differentiation.
C O NT I NU E
Offer Differentiation
Branding enables market offerings to be positively differentiated. Companies often offer a portfolio of
market offerings to cover many market segments.
Company offerings can be differentiated by developing a rich mix of customer-perceived benefit

attributes. These can include such attributes and benefits as form, features, customisation,
performance quality, conformance quality, durability, reliability, repairability, and style. Over the last
decade, design has also become an increasingly important means of differentiation.
Click on the headings below to learn about the form, features, and customisation of a product.
Form
–
Many market offerings can be differentiated in form-the size, shape, or physical
structure of an offering. Consider the many possible forms taken by items such
as aspirin. Although aspirin is essentially a commodity, it can be differentiated
by dosage size shape, color, coating, or action time.
Features
–
Most market offerings can be marketed with varying attributes and benefits that
supplement their basic function. A company can identify and select appropriate
new attributes by surveying recent buyers and then assessing the package of
customer benefits versus company cost for each potential featured value
attribute.

The company should also consider how many people want each attribute
feature, how long it would take to introduce it, and whether competitors could
easily copy it. To avoid "feature fatigue", the company must also be careful to
prioritise those attributes that are included and find unobtrusive ways to
provide information about how consumers can use and benefit from them.
Companies must also think in terms of several product bundles or packages.
Cosmetics firms such as Estée Lauder offer beauty packs at several CPV price
levels. Each company must decide in which market segment to compete and use
market research techniques to discover the appropriate value-offering
specifications.
Customisation
–
Marketers can differentiate product offerings through customisation i.e. the
ability of a company to meet each customer’s unique requirements of that
product or service and and/or to deliver individually designed products,
services, programs, and communications.
As companies have grown proficient at gathering information about individual

customers and business partners (suppliers, distributors, retailers), and as their
factories are being designed more flexibly, they have increased their ability to
individualise offers, messages, and media so as to meet customer’s specific
needs and interests.
Although Levi’s and Lands’ End were among the first clothing manufacturers to
introduce customised denim jeans, many other companies have since
introduced mass customisation into their markets. Honda offers vehicle
customisation across its European market while LEGO has customised its
product from inception.
Product Mix
A company’s product mix has four important dimensions: Width, length, depth, and consistency.
Product mix width refers to the number of different product lines the company carries and offers for
sale. The product mix dimensions enable the company to expand its business in four ways.
The company can add new product lines, thus widening its product mix. It can lengthen each line by
adding more products within the same use category. It can add more variants to each product and
deepen its product mix. To make these product and brand decisions, it is useful to conduct product
line analyses.
Click to flip each card below to learn about the product mix for Nivea Sun Care.
Protection Light-Feeling Sun Lotion
1 of 4
Children's Protection Baby Sun Lotion 501
2 of 4
After Sun Cooling After Sun Spray
3 of 4
Quick and Easy Self Tan

Sun Touch - Self Tan
Spray (Fair Skin)
4 of 4
Now that we understand how companies can have a mix of products to cater to different audiences,
let us discuss how companies can package those products.
Click Continue to learn more about packaging.

C O NT I NU E
Product Packaging
Packaging is traditionally defined as all the activities of designing and producing the container or
presentation pack for a market offering. Packages might include up to three levels of material-beer
comes in a bottle or can (primary package), in a cardboard box (secondary package), and in a palette
box (shipping package).
Click Start below to learn about the basic notions of packaging.

Packaging
Well-designed packages can build brand equity and drive sales. The package is the
customers’ first encounter with the item and could either impress or disinterest them.
Packaging also affects consumers’ later product experiences—good packaging, for
example, protects the item after first opening and keeps it in good condition for
subsequent use.
Click Start to continue reading.

Step 1
Identify The Brand
Packaging must identify the brand in an attractive way.

Step 2
Convey Descriptive and Persuasive Information
Packaging must convey descriptive and persuasive information.

Step 3
Provide Protection
Packaging must provide protection to facilitate transportation.

Step 4
Home Storage
Packaging must assist at-home storage.

Step 5
Product Consumption
Packaging must aid product consumption.

Step 6
Environment Friendly
Packaging must be environmentally friendly on disposal.

Summary
From the perspective of both the firm and consumers, packaging must achieve these six
objectives.
We now understand more about product life cycles, a company's product mix to reach wider
audiences, and packaging. Now we turn our attention to branding the product.
C O NT I NU E
Lesson 13 of 20
03 / 02: Brand
// Module 03/02
brand
What is a Brand?
A brand is a name, symbol, logo, design, image, or any combination of these, which is used to identify a
product or service and distinguish it from those of competitors. A brand is an entity that offers
customers (and other relevant parties) added value over and above its functional performance.
A successful brand is augmented in such a way that the buyer or user perceives relevant unique,
sustained added value that matches their needs most closely
Click to flip each card below to see examples of well-known brands.
Branding can be in the form

a product, such as the BMW
X5 series.
1 of 7
Branding can be in the form

of a service rendered to the
consumer, such as France
Telecom.
2 of 7
A brand can refer to a shop
or an art gallery, such as the
well-esteemed shop Les
Galeries Lafayette.
3 of 7
A person can also be a

brand, such as Jamie Oliver.
4 of 7
A brand could be a well-

A brand could be a well
known place, such as Paris.
5 of 7
A brand can be an
organisation that holds
certain values.
6 of 7
A brand can be an idea for a

certain cause.
7 of 7
Brand Management
After a brand has been established, new products are developed. The firm will usually give products a
brand name. A brand name is a term, symbol, or design that distinguishes one seller’s product from its
competitors. The strategic considerations for brand naming are detailed below.
Click on each heading below to learn about the strategic considerations for brand naming.
Marketing Objectives
–
The brand name should fit the overall marketing objectives of the firm: for
example, a firm intending to enter the youth market will need to develop brand
names that appeal to a young audience.
Brand Audit
–
This speaks of an estimate of the internal and external forces such as critical
success factor (also known as the unique selling proposition).
Brand Objectives
–
As with the marketing objectives, the overall intentions about the brand need to
be specified.
Brand Strategy Alternatives
–
The other ways of achieving the brand’s objectives and the other factors
involved in its success have a bearing on the choice of brand name.
The Case of Stew Leonard
Good customer relationship management creates customer satisfaction. In turn, satisfied customers
remain loyal and talk favorably to others about the company and its products. Studies show big
differences in loyalty between satisfied and dissatisfied customers. Even slight dissatisfaction can
create an enormous drop in loyalty.
Click on each tab below to learn more about the case study of Stew Leonard. It links brand
management and customer satisfaction.
IN T R O DU CT IO N CU S T O ME R L IFE T IME V A L U E B U IL DIN G CU S T O ME R E Q U IT Y
Stew Leonard, who operates a highly profitable four-store supermarket in

Connecticut and New York, once said that he saw $50,000 flying out of his store
every time he saw a sulking customer.
Why is that? If this customer had an unhappy experience and switched to

another supermarket, Stew Leonard’s lost $50,000 in lifetime revenue.
Stew Leonard calculated the customer lifetime value by looking at the average
customer that came into the store. He realised that each customer spent about
$100 a week, shopped 50 weeks a year, and remained in that area for about 10
years. The loss of one customer would result in $50,000 walking out the door.
The loss could be much greater than $50,000 if the disappointed customer
decided to share their bad experience with other customers. This could caused
them to defect as well.
To keep customers coming back, Stew Leonard created what has been called the
"Disneyland of Dairy Stores", complete with costumed characters, scheduled
entertainment, a petting zoo, and animatronics throughout the store.
From its humble beginnings as a small dairy store in 1969, Stew Leonard’s has
grown at an amazing pace. It has built 30 additions onto the original store, which
now serves more than 300,000 customers each week.
This legion of loyal shoppers is largely a result of the store’s passionate

approach to customer service. “Rule #1: The customer is always right. Rule #2: If
the customer is ever wrong, reread Rule #1.”
Click Continue to apply your understanding to branded communities.
C O NT I NU E
Brand Communities
Creating a strong, tight connection with customers is the key to the long-term marketing success of a
brand. Companies that want to form strong customer bonds need to attend to a number of different
considerations. One set of researchers sees retention-building activities as adding financial benefits,
social benefits or structural ties.
Let us look at the following two well-known brands and how each brand illustrate important types of
marketing activities to improve customer loyalty and customer retention.
Click the headings below to study the cases of Apple and Harley Davidson's branded communities.
A PPL E H A R L E Y DA V IDS O N
Apple encourages owners of its computers to form local Apple-user groups that
range in size from fewer than 20 members to over 1,000 members.
The user groups provide Apple owners with opportunities to learn more about
their computers, share ideas and get product discounts. They sponsor special
activities and events and perform a community service.
A PPL E H A R L E Y DA V IDS O N
The world-famous motorcycle company sponsors the Harley Owners Group

(HOG), which now numbers 650,000 members in over 1,200 chapters. The first-
time buyer of a Harley-Davidson motorcycle gets a free one-year HOG
membership.
HOG benefits include a magazine called Hog Tales, a touring handbook,

emergency road service, a specially designed insurance programme, a theft
reward service, discount hotel rates and a Fly & Ride programme enabling
members to rent Harley bikes while on vacation.
We now understand the importance of creating branded identities and establishing communities that
enjoy the benefits of those brands.
Click Continue to progress to Unit 3 to understand product pricing.
C O NT I NU E
Lesson 14 of 20
03 / 03: Price
// Module 03/03
price
Pricing Strategies
Setting the right price is one of the marketer’s most difficult tasks. Finding and implementing the right
pricing strategy is critical to success.
Cost-Based Pricing
Costs set the floor for price, but the goal is not always to minimize costs. In fact, many firms invest in
higher costs so that they can claim higher prices and margins. The key is to manage the spread
between costs and prices—how much the company makes for the customer value it delivers.
Although costs are an important consideration in setting prices, cost-based pricing is often product-
driven:
1 Design a good product.
2 Determine product costs.
3 Set price based on costs.
4 Convince buyers of the product's value.
Engage with the activity below to understand more about cost-based pricing.
Introduction
Customer value perceptions set the floor and ceiling price that a company can charge for
its products. How does a company price according to customer preferences?
Click on Start below to learn more.

Step 1
Cost-Based Pricing
Customer value-based pricing uses buyers’ perceptions of value as the key to pricing.
Value-based pricing means that marketers cannot design a product and marketing
program and then set the price. They must consider price along with all other marketing
mix variables before they set a marketing program.
Step 2
Types of Costs
A company’s costs take two forms: fixed and variable.
Fixed costs (also known as overhead) are costs that do not vary with production or sales
level.
Variable costs vary directly with the level of production.
Total costs are the sum of the fixed and variable costs for any given level of production.
Management wants to charge a price that will at least cover the total production costs at
a given level of production.
Step 3
Costs at Different Levels
To price wisely, management needs to know how its costs vary with different levels of
production. For example, suppose a company built a plant to produce 1,000 tablet
computers per day. They can try to produce more than 1,000 tablets per day, but
average costs will increase because the plant becomes inefficient.
Step 4
Costs as a Function
Costs as a function of production experience talk about the following. Suppose the
company runs a plant that produces 3,000 tablets per day. As they gain experience in
producing tablets, it learns how to do it better. Workers learn shortcuts and become
more familiar with their equipment. With practice, the work becomes better organized,
and the company finds better equipment and production processes.
With higher volume, the company becomes more efficient and gains economies of scale.
As a result, the average cost tends to decrease with accumulated production experience.
Step 5
Cost-Plus Pricing
The simplest pricing method is cost-plus pricing (or markup pricing) or adding a
standard markup to the cost of the product.
Construction companies, for example, submit job bids by estimating the total project cost
and adding a standard markup for profit.
Step 6
Break-Even Analysis
Another cost-oriented pricing approach is break-even pricing (or a variation called target
return pricing). The firm sets a price at which it will break even or make the target return
on the costs of making and marketing a product
Target return pricing uses the concept of a break-even chart, which shows the total cost
and total revenue expected at different sales volume levels.
Summary
Cost-based pricing involves setting prices based on the costs of producing, distributing,
and selling the product plus a fair rate of return for the company’s effort and risk. A
company’s costs may be an important element in its pricing strategy.
Value-Based Pricing
Value-based pricing reverses the process of cost-based pricing. The company first assesses customer
needs and value perceptions. It then sets its target price based on customer perceptions of value. The
targeted value and price drive decisions about what costs can be incurred and the resulting product
design. As a result, pricing begins with analyzing consumer needs and value perceptions, and the price
is set to match perceived value. The process is summarised below.
1 Assess customer needs and value perceptions.
2 Set target price to match customer-perceived value.
3 Determine costs that can be incurred.
4 Design a product to deliver desired value at target price.

Click on each heading below to learn more about customer value-based pricing.
CU S T O ME R V A L U E -B A S E D B U YE R S ’ PE R CE PT IO N S O F
CU S T O ME R -O R IE N T E D PR ICIN G
PR ICIN G V ALUE
Customer value-based pricing talks about the buying customer that will usually
decide whether a product’s price is right. Pricing decisions, like other marketing
mix decisions, must start with customer value.
CU S T O ME R V A L U E -B A S E D CU S T O ME R -O R IE N T E D B U YE R S ’ PE R CE PT IO N S O F
PR ICIN G PR ICIN G V ALUE
When customers buy a product, they exchange something of value (the price) to
get something of value (the benefits of having or using the product). Effective
customer-oriented pricing involves understanding how much value consumers
place on the benefits they receive from the product and setting a price that
captures that value.
CU S T O ME R V A L U E -B A S E D CU S T O ME R -O R IE N T E D B U YE R S ’ PE R CE PT IO N S O F
PR ICIN G PR ICIN G V ALUE
Customer value-based pricing uses buyers’ perceptions of value as the key to

pricing. Value-based pricing means that marketers cannot design a product and
marketing program and then set the price. They must consider price along with
all other marketing mix variables before they set a marketing program.
Competition-Based Pricing
Now that we understand how companies can price their own products, how can they compare their
strategic pricing to competitors?
Click on each heading below to learn more.
A S S E S S IN G CU R R E N T
CO MPE T IT IO N -B A S E D
CO MPE T IT O R S ’ CO MPE T IT O R S GO A L
PR ICIN G
PR ICIN G S T R E N GT H
This involves setting prices based on competitors’ strategies, costs, prices, and
market offerings. Consumers will base their judgments of a product’s value on
the prices that competitors charge for similar products.
PR ICIN G
In assessing competitors’ pricing strategies, a company should ask several

questions. First, how does the company’s market offering compare with
competitors’ offerings in terms of
customer value?
If consumers perceive that the company’s product or service provides greater

value, the company can charge a higher price. If consumers perceive less value
relative to competing products, the company must either charge a lower price
or change customer perceptions to justify a higher price.
PR ICIN G CO MPE T IT O R S ’ CO MPE T IT O R S GO A L
Next, how strong are current competitors, and what are their current pricing
strategies? If the company faces a host of smaller competitors charging high
prices relative to the value they deliver, it might charge lower prices to drive
weaker competitors from the market.
If the market is dominated by larger, lower-priced competitors, a company may

decide to target unserved market niches by offering value-added products and
services at higher prices.
PR ICIN G
Importantly, the goal is not to match or beat competitors’ prices. Rather, the
goal is to set prices according to relative value. If a company creates greater
value for customers, higher prices are justified.
The Key Elements of Price Setting

Price setting can be complex if it is difficult to identify the closest competitors, but it should be borne in
mind that no product is entirely without competition; there is almost always another way in which
customers can meet the need supplied by the product.
Also, different customers have different needs and therefore will have differing views on what
constitutes value for money, this is why markets need to be segmented carefully to ensure that the
right price is being charged in each segment. As in any question of marketing, it is wise to begin with the
customer. We will look at eight stages of price setting to help us understand how to set the correct
price.
Click Start to learn about the eight stages of price setting.

Setting Prices
Price setting can be complex if it is difficult to identify the closest competitors, but it
should be borne in mind that no product is entirely without competition. There is almost
always another way in which customers can meet the need supplied by the product.
Click Start below to continue reading.

Step 1
Develop Pricing Objectives
The pricing objectives derive from the organisation’s overall objectives. Does the firm
seek to maximise market share or maximise profits?
Step 2
Assess the Target Market
Buyers tend to be more sensitive to food prices in supermarkets than to drinks prices in
bars and restaurants. A buyer’s income and availability of credit directly affect the ability
to buy the product at all.
Step 3
Determine Demand
For most products, demand falls as price rises. This is not necessarily a straight-line
relationship, nor is the line necessarily at a different angle.
For some products even a small price rise results in a sharp fall in demand, whereas for
other products even a large price rise hardly affects demand at all.
Step 4
Analysis of Demand
The firm needs to analyse the costs of producing the item against the price that the
market will bear, taking into account the profit needed.
The cost calculation will include both the fixed costs and the unit costs for making a given
quantity of the product. This quantity will be determined by the market and will relate to
the selling price.
Step 5
Evaluation of Competitors’ Prices
This will involve a survey of the prices currently being charged, but will also have to
consider the possible entry of new competitors. Prices may be pitched higher than those
of competitors to give an impression of exclusivity or higher quality. This is common in
the perfume market and in services such as restaurants and hairdressing.
Step 6
Pricing Policy
The pricing policy needs to be set in accordance with the factors listed earlier in this
unit, and the remaining criteria to ensure it meets customer expectations for maximum
value delivery.
Step 7
Develop a Pricing Method
Here the producer develops a simple mechanism for determining prices in the future.
The simplest method is to use cost-plus or mark-up pricing. However, these do not take
account of customers, so something a little more sophisticated should be used if
possible.
Step 8
Determine a Specific Price
If the previous steps have been carried out in a thorough manner, determining the
actual price should be a simple matter.
Summary
Value for money is a subjective concept. Each person has a differing view of what
represents value for money, and this means that different market segments will have
differing views on whether a given price is appropriate.
Marketing is about encouraging trade so that customers and manufacturers can

maximise the satisfaction gained from their activities. To this end, marketers always try
to make exchanges easier and more pleasant for customers.
Now that we understand how to set prices and the factors influencing pricing, how can we determine
specific prices for certain conditions?
Click Continue to learn more.
C O NT I NU E
Specific Pricing
Most companies adjust their basic price to reward customers for certain responses, such as paying bills
early, volume purchases, and off-season buying. These price adjustments, or discounts and allowances,
can take many forms.
Match each definition below to the correct statement.
Reducing prices to reward

Discount and allowance customer responses such as
pricing volume purchases or paying
early.
Adjusting prices to allow for

Segmented pricing differences in customers,
products, or locations.
Adjusting prices for psychological

Psychological pricing
effect.
Temporarily reducing prices to

Promotional pricing
spur short-run sales.
Adjusting prices to account for

Geographical pricing the geographic location of
customers.
Adjusting prices continually to

Dynamic and
meet the characteristics and
personalized pricing
needs of individual customers
Adjusting prices for international
International pricing
markets.
SUBMIT
Price Discrimination
Price discrimination occurs when a company sells a product or service at two or more prices that do
not reflect a proportional difference in costs. In first-degree price discrimination, the seller charges a
separate price to each customer depending on the intensity of his or her demand. In second-degree
price discrimination, the seller charges less to buyers who buy a larger volume. In third-degree price
discrimination, the seller charges different amounts to different classes of buyers.
Click on each tabbed heading below to learn more about the different types of pricing parameters
Customer-Segment
–
Different customer groups pay different prices for the same product or service.
For example, museums often charge a lower admission fee to students and
senior citizens.
Product-Form
–
Different versions of the product are priced differently, but not proportionately
to their costs. For example, Evian prices a 48-ounce bottle of its mineral water
at €1.50. It takes the same water and packages 1.7 ounces in a moisturiser
spray for €4.00.
Through product-form pricing, Evian manages to charge €2.50 an ounce in one

form and about €0.03 an ounce in another.
Image
–
Some companies price the same product at two different levels based on image
differences. A perfume manufacturer can put the perfume in one bottle, give it a
name and image, and price it at €10. It can put the same perfume in another
bottle with a different name and image and price it at €30.
Channel
–
Coca-Cola carries a different price depending on whether the consumer
purchases it in a fine restaurant, a fast-food restaurant, or a vending machine.
Location
–
The same product is priced differently at different locations even though the
cost of offering it at each location is the same. A theatre varies its seat prices
according to audience preferences for different locations.
Time
–
Different types of pricing are varied by season, day, or hour. Public utilities vary
energy rates to commercial users by time of day and weekend versus weekday.
Restaurants charge less to "early bird" customers, and some hotels charge less
on weekends.
Now that you have completed this module's learning, you will test your understanding of the material
discussed.
Please revisit any unclear

concepts in Module 3 to
prepare.
03 / 01: Product
UNIT 1
03 / 02: Brand
UNIT 2
03 / 03: Price
UNIT 3
Click Continue to progress to the quiz.
C O NT I NU E
Lesson 15 of 20
Module 3 : Quiz
MODULE 3 QUIZ
C O NT I NU E
Lesson 16 of 20
// Module 04
focus on commercial action
Welcome to Module 4: Focus on Commercial Action of Fundamentals of Marketing. In this module, we
will explore marketing distribution channels and what those entail. We will understand the difference
between marketing and selling, and how the salesforce could be leveraged as an extension of
marketing. Thereafter, we will understand different communication strategies in the marketing milieu.
Click to flip the flashcards below for a brief summary of each unit.
We will understand market
Unit 1 distribution channels and
the sales force.
We will investigate different

Unit 2 marketing communication
strategies and processes.
You will test your

Module 4 Quiz understanding of this
module's concepts.
The learning outcomes for this module are listed below.
1 Recognize and classify distribution channels.
2 Understand channel integrations.
3 Determine salesforce importance and how to define it.
4 Distinguish marketing communication processes.
5 Differentiate between traditional and digital channels.
C O NT I NU E
Lesson 17 of 20
04 / 01: Distribution
// Module 04/01
distribution
Introduction to Marketing Channels

Consider how a product reaches a consumer once it is produced. It may first have to be stored in a
factory, then be shipped to a central retailer where the product is sold for mass consumption. This is
the distribution channel or pathway from the factory to the product. Each layer of marketing
intermediaries that performs some work in bringing the product and its ownership closer to the final
buyer is a channel level.
Channels are made up of more than just boxes and arrows on paper. They are behavioral systems
consisting of real companies and people who interact to accomplish their individual and collective
goals. Like groups of people, sometimes they work well together and sometimes they don’t.
Click on the plus signs (+) below to learn more about direct and indirect marketing channels.
  
 

Indirect Channels
Using indirect channels, the company uses one or more levels of intermediaries to help bring its products to final
buyers.
Intermediaries here represent the wholesaler and retailer. However, there are other intermediaries to consider,
such as re-sellers, promoters, and so forth.

Multiple Channels
The success of individual channel members depends on the overall channel’s success. Channels should
understand and accept their roles, coordinate their activities, and cooperate to attain overall channel goals.

Wholesaler and Retailer Channels
The wholesaler and the retailer in this instance act as intermediary channels, or the method in which products
reach their intended customers. Each channel member plays a specialized role in the channel.

Direct Channels
Direct channels forego intermediaries such as the retailer or wholesaler. In simple terms, the product reaches the
consumer quickly from the producer without having to be distributed or managed by third parties.

Consumer-Direct Channels
Direct producer-to-consumer channels are typical of personal services such as hairdressing where use of
intermediaries would be impossible, and of major capital purchases such as houses or home improvements.
Functions of Channel Members

Now that we understand the different channel types, let us investigate the role that each channel
intermediary plays in the channel.
Click to flip the cards below to learn more.
Separating out
heterogeneous deliveries
into homogeneous ones.
Sorting out
Sorting out
For example separating
produce for resale or
processing into juices or
pre-cooked meals.
1 of 4
Aggregating small
production batches into
amounts big enough to be
Accumulation
worth shipping, such as
the case of large shipping
containers.
2 of 4
Separating large
shipments into smaller
Allocation units for distribution to
different centers. This is
also called bulk breaking.
3 of 4
Combining collections of
products that will appeal
to groups of buyers,
especially for
Assorting
multipurpose stores like
Asda or Walmart where
produce, appliances, and
pet food are sold at the
4 of 4
Now that we understand how products reach consumers through different channels like wholesalers
and retailers, let us continue to investigate the retail channel.
Retailing Trends and Developments

Retailers operate in a harsh and fast-changing environment, which offers threats as well as
opportunities. To be successful, retailers need to choose target segments carefully and position
themselves strongly. New retail forms continue to emerge to meet new situations and consumer
needs, but the life cycle of new retail forms is getting shorter. To remain successful, they must keep
adapting.
Click the arrows to the left or right of the images below to learn more about retailing trends.
Value Propositioning
More consumers are becoming frugal spenders, which some
businesses leverage to provide more value for money.
New Retail Forms

The retail life cycle is shortening to encourage flash buying
behaviours, usually via online shopping methods to create
consumer buzz for a limited period.
The Rise of Megaretailers
These large superstores cater to a variety of needs and tastes
with a huge variety of products on offer. These megaretailers
often corner the market from smaller retailers.
Green Retailing
Corporations aim for sustainable product sourcing and promote
greener practices through their procurement strategies that
appeal to consumer values.
The Growing Importance of Retail Technology

As digital and omni-channel shopping become the norm, retail technologies have become critically
important as competitive tools that include software systems to produce better forecasts, control
inventory costs, and digital interaction with suppliers. They have adopted sophisticated systems for
checkout scanning, RFID inventory tracking, merchandise handling, information sharing, and customer
interactions.
Click Continue to learn more about channel integrations.
C O NT I NU E
Channel Integration and Systems

A conventional distribution channel consists of an independent producer, wholesaler(s), and retailer(s).
Each is a separate business seeking to maximise its own profits, even if this goal reduces profit for the
system as a whole. No channel member has complete or substantial control over other members.
However, there are a variety of channel systems. We will discuss vertical and horizontal distribution
channel systems.
Engage in the activity below to learn more about vertical marketing systems (VMSs).
Introduction to Vertical Marketing Systems
A vertical marketing system encompasses a variety of channels in a unified system. This

entails different channels working in tandem for the benefit of all at the exclusion of
market competitors.
Click Start to learn more.

Step 1
Corporate VMS
A corporate VMS combines successive stages of production and distribution under single
ownership. In grocery shops in Europe, own-label brands account for as much as 40% of
the items sold.
Step 2
Administered VMS
An administered VMS coordinates successive stages of production and distribution

through the size and power of one of the members. Manufacturers of dominant brands
can secure strong trade cooperation and support from resellers. They can command high
levels of cooperation from their resellers in connection with displays, shelf space,
promotions, and price policies.
Step 3
Contractual VMS
A contractual VMS consists of independent firms at different levels of production and

distribution integrating their programme on a contractual basis to obtain more
economies or sales impact than they could achieve alone.
Step 4
Value-Added Partnerships
Contractual VMSs are known as Value-Adding Partnerships (VAPs). They can be

categorised in three types:
1. Wholesaler-Sponsored Voluntary Chains: Wholesalers organise independent

retailers to standardise their selling practices reduce market competition.
2. Retailer Cooperatives: Retailers organise a new business entity to carry on

wholesaling and possibly some production. Profits pass back to members in
proportion to their purchases.
3. Franchise Organisations: A franchisor receives a licence to conduct business under

a trademark to sell products and services while enjoying the operating system's use,
brand, and support.
Step 5
Horizontal Marketing System
A horizontal marketing system differs to a vertical marketing system in that two or more
unrelated companies put together resources or programmes to exploit an emerging
marketing opportunity. Each company lacks the capital, know-how, production or
marketing resources to venture alone, or is afraid of the risk. The companies might work
together on a temporary or permanent basis, or create a joint-venture company.
Summary
VMSs can be beneficial to the channel system, but it relies on each channel
understanding its role to cooperate with the larger system. Marketers must understand
the unique makeup of each VMS to create a strategy that accounts for each consumer
touchpoint within the system to deliver value by catering to needs.
Click Continue to progress to a case study to apply your understanding.
C O NT I NU E
Supply Chains and the Value Delivery Networks

A company must work within a system of partners to create customer value. Individual companies and
brands do not compete with each other. Rather, their value delivery networks compete for market
share. Let us understand this through the case of Toyota.

Chain Relationships
–
Producing and distributing a product or service require building relationships
with customers, key suppliers, and resellers in the company’s supply chain. This
supply chain consists of upstream and downstream partners. Upstream here
entails the raw materials, components, and parts of the product. Downstream
here entails marketing channel partners and cosumers.
Value Delivery Networks

–
A value delivery network is made up of different channels, including the
company, suppliers, distributors, and, ultimately, customers who “partner” with
each other to improve the performance of the entire system.
The Case of Toyota

–
Toyota makes great cars, but must manage a huge network of people within the
company, from marketing managers to operations coordinators. The company
also orchestrates thousands of suppliers, dealers, advertising agencies, and
other marketing service firms. The entire network must function together to
create customer value and establish the brand’s “Let’s Go Places” positioning.
From Supply to Demand Chain
–
The term "supply chain" may be too limited, as it takes a make-and-sell view of
the business. Most large companies today are engaged in building and
managing a complex, continuously evolving value delivery network. A better
term would be "demand chain" because it suggests a sense-and-respond view of
the market.
Now that we understand the significance of the demand chain, how can we create buy-in from
downstream partners? Let us explore the realm of the salesforce.
The Importance of the Salesforce

Some companies treat sales and marketing as separate functions. Ideally, the salesforce and other
marketing functions, such as marketing planners, brand managers, marketing content managers, and
researchers should work together closely to jointly create value for customers.
The company wants to build a skilled and motivated sales team that will help to create customer value,
engage customers, and build strong customer relationships. This will help to present a unified front
with marketing efforts.
Click to flip the flashcards below to see how companies could accomplish this.
Design a salesforce strategy

and structure to deliver
customer value.
1 of 6
Recruit and select

salespeople who understand
the value of customer
engagement.
2 of 6
Train salespeople to
understand how to resolve
sales queries.
3 of 6
Incentivise the salesforce to

achieve targets beyond
marketing campaigns.
4 of 6
Supervise the salesforce

process to detect
inefficiencies or areas for
improvement.
5 of 6
Regularly evaluate the

salesperson for performance
enhancement and coaching
opportunities.
6 of 6
The Salesforce Structure

Marketing managers face several sales force strategy and design questions, such as how salespeople
and their tasks should be structured, the salesforce cohort size, and whether salespeople should
operate independently or within a team structure. These decisions include whether sales methods
should be direct or indirect, conducted over the phone or social media, or adopt a traditional cold-call
sales approach.
Click the headings below to see three salesforce structures.
T E R R IT O R IA L S A L E S FO R CE PR O DU CT S A L E S FO R CE CU S T O ME R S A L E S FO R CE
A territorial sales organisation is often supported by many levels of sales

management positions. A salesforce organisation assigns each salesperson to
an exclusive geographic territory in which that salesperson sells the company’s
full line.
Each salesperson’s job is clearly defined with and fixed accountability. The
salesperson is incentivised to build local customer relationships that improve
selling effectiveness.
If a company has numerous and complex products, it can adopt a product salesforce structure, in which
the sales force specialises along product lines. For instance, if a company has an extensive product
range, no single salesperson can become expert in all of these product categories. Therefore, product
specialisation is required and each salesperson becomes well-versed in their product's niche.
A sales force organisation in which salespeople specialize in selling only to certain customers or
industries. Separate salesforces may be set up for different industries, serving current customers versus
finding new ones, and serving major accounts versus regular accounts.
We now have a better understanding of the different marketing channels, including the partners that
function within those channels to deliver value to both customers and related channel partners.
C O NT I NU E
Lesson 18 of 20
// Module 04/02
communication
The Promotional Mix

Marketing managers aim to communicate a company's brand, value, or product information to
consumers. However, it is worthwhile spending time and effort to ensure that the message is
comprehensible to the target audience.
We understand this further by investigating the "promotional mix". The promotional mix is like a
recipe, in which the ingredients must be added at the right times and in the right quantities for the
promotion to be effective. Messages from the company about its products and itself are transmitted
via the elements of the promotional mix to the consumers, employees, pressure groups and other
publics.
Let us first distinguish types of message, the mediums to receive messages, and types of intended
audiences.
Long-click and drag each tile to the correct drop area.
Messages
Information about products Information about the

and brands company
Transmitters
Advertising Sales promotions

Personal selling Public relations
Receivers
Consumers Employees
Pressure groups Other public members
A theoretical view of the Communication Process

Integrated marketing communications involves identifying the target audience and shaping a well-
coordinated promotional program to obtain the desired audience response. Marketers are moving
toward viewing communications as managing ongoing customer engagement and relationships with
the company and its brands.
How can we contextualise the image above? Let us understand this graphic via the case study of Coca-
Cola
Click to flip the flashcards below to learn more.
The party (Coca-Cola)

sending the message to
Sender
another party (the
audience).
1 of 8
Putting thought into

symbolic form. Coca-Cola
assembles words, sounds,
Encoding
and graphics into an
advertisement to relay its
message.
2 of 8
The set of symbols that the

sender transmits. In this
Message
case, the actual Coca-Cola
advertisement.
3 of 8
The communication
channels through which the
Media message moves from the
sender to the receiver. In this
case, television.
4 of 8
The receiver assigns meaning

to the symbols encoded by
the sender. The consumer
Decoding
watches advertisement and
interprets the words and
images.
5 of 8
The audience receives the
Receiver message from the
advertisement.
6 of 8
The reactions of the

audience after being
exposed to the
Response advertisement. Do they
purchase the product,
recommend it, or post
feedback to Coca-Cola?
7 of 8
The part of the receiver’s

response communicated
Feedback back to the sender which
could influence future
advertising.
g
8 of 8
Promotional Mix Strategies

We understand how marketers can encode meaningful messages to receivers or audiences. A further
layer of intention can be overlaid on each message to further entice audiences. Marketers can choose
from two basic promotion mix strategies: push promotion or pull promotion.
Click on the headings below to learn more about push and pull promotions.
PU S H S T R A T E GY PU L L S T R A T E GY PU S H A N D PU L L MIX
A push strategy involves “pushing” the product through marketing channels to

final consumers. The producer directs its marketing activities toward channel
members to induce them to carry the product and promote it to final
consumers. A hardware store would act as a partner channel to "push" products
to customers.
Using a pull strategy, the producer directs its marketing activities toward final
consumers to induce them to engage with and buy the product. If the pull
strategy is effective, consumers will then demand the brand from retailers. Thus,
under a pull strategy, consumer demand “pulls” the product through the
channels.
Having set the promotion budget and mix, the company must now take steps to
see that each promotion mix element is smoothly integrated.
To achieve an integrated promotion mix, all of the firm’s functions must

cooperate to jointly plan communications efforts. Scattered or disjointed
promotional activities across the company can result in diluted marketing
communications impact and confused positioning.
Let us understand the "push" and "pull" methodologies more by engaging with the image below.
Click on the plus signs (+) to learn more.


 


 

The Push Strategy
The company "pushes" the product to resellers, who in turn "push" it to customers.

Push and Pull Mix
Most companies use a mix of push and pull strategies to maximise the product's reach.

Producer Marketing Activities
These are activities the producer undertakes to "push" the product to retailers and wholesalers, including:
Personal selling.
Trade promotion.
Other activities that may yield results.


Reseller Marketing Activities
These are activities the reseller undertakes to "push" the product to customers, including:
Personal selling.
Advertising.
Sales promotions.


Producer Pull Tactics
The producer will engage in a variety of activities to increase the product's demand or "pull" from customers,
including:
Advertising.
Sales promotions.
Online marketing.
Social media.


The Pull Strategy
The company promotes directly to customers, creating a demand vacuum that "pulls" the product through the
channel.

Pull and Push Integration
Communications at each customer touch point must deliver consistent marketing content and positioning.
We have a greater understanding of different methods to expose customers to products through

channel partners.
Click Continue below to learn more about creating a communication plan.
C O NT I NU E
Communication Plan Development

Now that we understand how communication works, let us use the promotion mix elements to create
a marketing communications program. We now examine the steps in developing an effective
integrated communications and promotion program.
Engage with the activity below to learn more.

Introduction
At this stage, marketers conduct market analysis of the intended audience and its habits
through a series of steps.
Click Start below to begin.

Step 1
Identifying the Target Audience
A marketing communicator starts with a clear target audience in mind. The target
audience will affect the communicator’s decisions on what will be said, how it will be
said, when it will be said, where it will be said, and who will say it.
Step 2
Determining the Communication Objectives
Once the target audience has been defined, marketers must determine the desired
response. Of course, in many cases, they will seek a purchase response. However,
purchase decisions are only part of a broader customer journey. Customers will have
ongoing experiences with a brand.
Marketers often must first build active awareness and engagement, then move
consumers to purchase and advocacy.
Step 3
Designing a Message
Having defined the desired audience response, the communicator then turns to
developing an effective message. When putting a message together, the marketing
communicator must decide what to say (message content) and how to say it (message
structure and format).
Message Content: What is the product's appeal or theme? These could be rational,
emotional, or moral.
Message Structure: Is the message presented as a one-sided or two-sided

argument? Is the message favourable to the brand?
Message Format: Will the message be delivered via television, radio, print, or social
media, and why is that format preferable?
Step 4
Choosing Communication Channels and Media
The communicator must now select the channels of communication. There are two broad
types of communication channels: personal and nonpersonal.
In personal communication channels, two or more people communicate directly with

each other. These channels are effective because they allow for personal addressing and
feedback.
Nonpersonal communication channels are media that carry messages without personal
contact or feedback. They include major media, atmospheres (or designed
environments), and events.
Summary
These stages in the communication strategy should be planned and strategised carefully
to cater for audience needs. Can you think of more steps needed for a communication
strategy?
Online Marketing
The communication strategy detailed above briefly mentions social media and online marketing.
However, this simple yet powerful communication medium requires more in-depth investigation.
Online Marketing Introduction

–
Online marketing refers to marketing via the internet using company websites,
online advertising and promotions, email marketing, online video, and blogs.
Social media and mobile marketing also take place online and must be closely
coordinated with other forms of digital marketing. However, because of their
special characteristics, we discuss social media and mobile marketing
approaches in separate sections.
Websites and Branded Web Communities
–
For most companies, the first step in conducting online marketing is to create a
website. Websites vary greatly in purpose and content. Some websites are
primarily marketing websites, designed to engage customers and move them
closer to a direct purchase or other marketing outcome.
In contrast, a brand community website's purpose is to present branded

content that engages consumers and creates customer-brand communities.
Such sites typically offer a rich variety of brand information, videos, blogs,
activities, and other features that build closer customer relationships and
generate engagement with and between the brand and its customers.
Online Advertising
–
As consumers spend more and more time online, companies are shifting more
of their marketing dollars to online advertising to build brand sales or attract
visitors to their internet, mobile, and social media sites. Online advertising has
become a major promotional medium. The main forms of online advertising are
display ads and search-related ads.
Email Marketing
–
Email marketing remains an important and growing digital marketing tool. Given
its low costs and targetability, email can yield a very high return on investment.
When used properly, email can be the ultimate direct marketing medium. Email
lets marketers send highly targeted, tightly personalized, relationship-building
messages.
Most legitimate marketers now practice permission-based email marketing,

sending email pitches only to customers who “opt in.” Many companies use
configurable email systems that let customers choose what they want to get.
Online Videos
–
Another form of online marketing is posting digital video content on brand
websites or on social media. Some videos are ads that a company makes
primarily for TV or other media but posts online before or after an advertising
campaign to extend their reach and impact.
Other videos are made specifically for the web and social media. Such videos
range from “how-to” instructional videos and public relations pieces to brand
promotions and brand-related entertainment.
Blogs and Other Online Forums

–
Brands also conduct online marketing through various digital forums that
appeal to specific special-interest groups and brand communities. Blogs are
online forums where people and companies post their thoughts and other
content, usually related to narrowly-defined topics.
Beyond their own brand blogs, many marketers use third-party blogs to help
get their messages out. As a marketing tool, blogs offer some advantages. They
can offer a fresh, original, personal, and cheap way to enter into consumer
online and social media conversations. However, the blogosphere is cluttered
and difficult to control.
Note that influencer marketing will differ to each consumer
type. Business to consumer (B2C) marketing may emphasize
social media influencers, whereas business to business (B2B)
marketing may prefer experts to influence buying decisions.

Let us determine your understanding of traditional and digital marketing methods. Below are
statements that could be classified as either traditional or digital marketing.
Long-click on each statement and drag it to the correct drop area.
Digital Marketing
Online marketing Websites

Online advertising Email
Blogs Online videos
Social media marketing Mobile marketing
Traditional Direct Marketing
Face-to-face selling Direct-mail marketing

Catalog marketing Telemarketing
Kiosk marketing Direct-response TV marketing
Now that we understand more about progressive and digital marketing, how can we leverage those
strategies?
Click Continue to learn more about content marketing.
C O NT I NU E
Content Marketing
Many advertisers and marketers now view themselves more broadly as content marketing managers
who create, inspire, share, and curate marketing content—both their own content and that created by
consumers and others.
Rather than using traditional media breakdowns, they subscribe to a new framework that builds on
how and by whom marketing content is created, controlled, and distributed. The new classification
identifies four major types of media: paid, owned, earned, and shared.
Match the statements below to understand more about content
classifications.
Promotional channels paid for by

Paid Media the marketer (traditional and
digital).
Promotional channels owned and

Owned Media
controlled by the company.
PR media channels, such as TV,

Earned Media newspapers, blogs, online video
sites, and other media.
Media shared by consumers with

Shared Media other consumers, such as social
media and blogs.
SUBMIT
Mobile Media
Mobile marketing features marketing messages, promotions, and other marketing content delivered to
on-the-go consumers through their mobile devices. Marketers use mobile marketing to engage
customers anywhere, anytime during the buying and relationship-building processes. The widespread
adoption of mobile devices and the surge in mobile web traffic have made mobile marketing a must for
most brands.
Click the headings below to learn more.
MA R K E T PE N E T R A T IO N L E V E R A GE MO B IL E U S A GE FU T U R E O F MO B IL E
With the recent proliferation of mobile phones, smartphones, and tablets,

mobile device penetration is now greater than 100% in the United States as
many people possess more than one mobile device. The mobile apps market,
little more than a decade old, has exploded globally: There are millions of apps
available, and the average smartphone owner uses nine apps a day.
For consumers, a smartphone or tablet can be a handy shopping companion. It

can provide on-the-go product information, price comparisons, advice and
reviews from other consumers, access to instant deals, and fast and convenient
avenues to purchase.
Mobile provides a rich platform for engaging consumers more deeply as they
move through the buying process with tools ranging from mobile ads, coupons,
texts to apps, and mobile websites.
For consumers, a smartphone or tablet can be a handy shopping companion. As

a result, mobile advertising spending is surging.
Marketers are increasingly connecting with customers through mobile

marketing. Marketing their products and sharing information with customers
through simple and easy-to-use digital platforms like mobile apps can greatly
enhance customer experience.
Companies must carefully integrate communication channels to deliver a clear, consistent,

and compelling brand message.
Integrated Marketing Communications
Today's customers are bombarded by brand content from all directions. Integrated marketing
communications means that companies must carefully coordinate all of these customer touchpoints
to ensure clear brand messages.
Click the image to the left to enlarge it.
Communication Conclusion
Devising a communication strategy relies on careful understanding of the target audience. Discern
which medium and content type is applicable to your audience by catering to audience habits and
preferences. Aim for a mix of strategies to broaden the message's reach while maintaining the
personalisation needed for each type.
You will now test your understanding of this module's content via a quiz.
Please revisit any unclear concepts in Module 4 to

prepare.
o4 / 01: Distribution
UNIT 1
UNIT 2
Click Continue to progress to Module 4's quiz.
C O NT I NU E
Lesson 19 of 20
Module 4 : Quiz
the continue button below to read the conclusion of the course.
MODULE 4 QUIZ
C O NT I NU E
Lesson 20 of 20
Fundamentals of Marketing Conclusion
Course Conclusion
Well done for completing the Fundamentals of Marketing course. Below is a list of the learning
outcomes you have achieved.
1 Define key marketing strategies.
2 Understand market segmentation practices.
3 Recognise different marketing channels.
4 Classify brand and product characteristics.
5 Distinguish between marketing products and services.
Module Review
You may revisit any modules to refresh your understanding.
Click to return to any module.

MODULE 1
MODULE 2
Module 3: Focusing on the Offer
MODULE 3
MODULE 4
Course Resources
Below is the downloadable version of this course and the credits for sources referenced in the course.
Please click to download the document below.
Course Summary
Downloadable Fundamentals of Marketing.pdf
10.5 MB
Course Credits
Armstrong, G., Kotler, P., & Opresnik, M. (2020). Marketing: An

Introduction. Pearson Education.
Brady, M., Goodman, M., Hansen, T., Keller, K., & Kotler, P.
(2019). Marketing Management (4th ed.). Pearson Education.
Blythe, J. & Martin, J. (2019). Essentials of Marketing (7th ed.).

Pearson Education.
Armstrong, G. & Kotler, P. (2020). Principles of Marketing (18th ed.).
Pearson Education.
You may now exit this course. Enjoy your learning in a real-life context!

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Fundamentals of Marketing

Click on the "Start course" button above to begin.

MODULE 0: GETTIN G STAR TED

MODULE 1: IN ITIATE A MAR KETIN G APPR OACH

Module 1: Initiate a Marketing Approach

01 / 01: Practising Marketing

01 / 02: Market De nition

01 / 03: Market Research

MODULE 2: FR OM STR ATEGY TO OPER ATION S

Module 2: From Strategy to Operations

02 / 02: Operational Marketing

MODULE 3: FOCUSIN G ON TH E OFFER

Module 3: Focusing on the Offer

MODULE 4: FOCUS ON COMMER CIAL ACTION

Module 4: Focus on Commercial Action

Fundamentals of Marketing Conclusion

Click each heading below to expand the window.

Course Learning Outcomes

Deﬁne key marketing strategies.

Recognise diﬀerent marketing channels.

Classify brand and product characteristics.

Distinguish between marketing products and services.

Estimated time for the course: 4 hours

Module 1 Learning Outcomes

Understand basic marketing competencies and challenges.

Discern marketing approaches for customers and competitors.

Recognise business vs consumer customers and their behaviours.

Classify market research types and practices.

Estimated time for module: 1 hour

Classify market segmentation categories.

Distinguish between business and consumer markets.

Understand how to market services.

Classify product oﬀering strategies.

Estimated time for module: 1 hour

Module 3 Learning Outcomes

Recognise product types and lifecycles.

Understand branding strategies.

Classify types of pricing.

Estimated time for module: 1 hour

Module 4 Learning Outcomes

Recognise and classify distribution channels.

Understand channel integrations.

Determine salesforce importance and how to deﬁne it.

Diﬀerentiate between traditional and digital channels.

Estimated time for module: 1 hour

All images and other learning materials in this course are

4 Armstrong, G. & Kotler, P. (2020). Principles of Marketing (18th ed.). Pearson Education.

Click Continue to learn how to deﬁne marketing.

Module 1: Initiate a Marketing Approach

Initiate a marketing approach

We will look at measures to

We will explore market

Quiz Module 1 quiz.

Module 1 Learning Outcomes

1 Understand basic marketing competencies and challenges.

2 Discern marketing approaches for customers and competitors.

3 Recognise business vs consumer customers and their behaviours.

4 Classify market research types and practices.

01 / 01: Practising Marketing

The Marketing Process