 Marketing is an exchange activity that

takes place between a business entity and

its customers
 The customers include :
◦ Individual
◦ Other business entity (e.g. wholesaler & retailer)
◦ Support organization (eg. Bank and government
agencies)

 Marketing is critical since it forms the

backbone in achieving a profitable outcome
 Human needs: Basic physologica requirements in
one’s life (eg. Food, drink, clothing,
accomodatyion and security)

 Wants: The different forms of unfuklfilled needs

 Wants are often influenced by one’s culture,

social upbringing, personality and religion
 Example : Rice and fish curry might satisfy the
Asian palate, while Europeans would go for steak
and salad
 The philosophy : All marketing activities
must satisfy customer needs and wants, and
at the same time achieve the targeted profits
 The focus for long term business: customer
satisfaction first and then profit
 Satisfied customers will repeat to buy while
unsatisfied customers will not.
 Activities that are carried out systematically
to encourage and increase sales of
products/services as long as the activities are
in line with religious and ethical practices.
1. A marketbis a phisical placewhere buyers
and sellers exchange goods and services

2. A market is any entity that has purchasing

power to acquire goods and services to
fullfill iits needa and wants
 Category Profiles
Human Being Geographic
Demographic
Psychographic
Government Local Government
State Government
Federal Governmnt
NGOs Environment
Social
Cultural
Business Entity Manufacturer
Wholesaler
Agent/Dealer
Retailer
 Is the group of customers with needs and
wants that can be satisfied by the business
through the supply of goods and/or services

 Marketing efforts should focus on this taget

market to ensure that tey are within the
scope and capabilities of the business
1. Its impractical and almost impossible for a
business to offer a product that can satisfy
the needs and wants of the entire
population

2. Businesses have limited resources in term of

time, money and man power.
1. Identify the product or service to be offered
2. Focus the marketing effort :
i. Identify the market area and business location
ii. Collect information and data of customers
iii. Segmenting the market

3. Determine the target market from identified

market segments
Sales forecast is the expected sales potential
from the selected target market. The sales
forecast is quaoted in units of sales or in RM
per period of time
Segmentation Variables/Bases
1. Geographic District
Residency
Division
State
Contry
Climate
2. Demographic Age
Occupation
Genmder
Eduication
Income
Social Class
Family
Race
Sub culture
3. Pshycographic Personal taste
Status
Preferences
Ego
Hobbies
Political attitude
Sensitivity to price
Motives of purchase
Loyalty to product
1. Determine Market Size
2. Identify the Competitors
3. Estimate Market Share
4. Forecast Sales :
◦ Customer Awareness Of The Existence Of The
Business
◦ Seasonal Factors
◦ Pre-Sales Period
1. Define the product concept
2. Identify the target market
3. Determine marlet size
4. Identify competitiors
5. Determine market share
6. Develop sale forecast
7. Develop marketing strategies
8. Prepare a marketing budget
Four Ps Strategies:
1. Product
2. Price
3. Place (distribution)
4. Promotion
Special attention should be given on :
 Brand
Choose a brand name that is unique and not already in use or
protected by copyright
 Quality:
Can be in terms of performance quality and conformace quality

 Design
 Packaging :
Consider packaging in term of: Protection, ease of use, product
differetiation, attarctive to customer, safety and labelling
 After sales service
1. Cost Based Pricing
Decision based on :
 Average profit margin of the industry
 The number and strenght of competitors
Formula :
Price = Total cost per unit + Mark Up

2. Value-Based Pricing
3. Competition-Based Pricing
1. MANUFACTURER CONSUMER

2. MANUFACTURER RETAILER CONSUMER

3. MANUFACTURER WHOLESALER CONSUMER

4. MANUFACTURER WHOLESALER RETAILER CONSUMER

1. Advertising:
◦ Printed Media
◦ Broadcast
◦ Internet
◦ Outdoor

2. Sales Promotion

1. Public Relations and Publicity

Example Advertising
Example of Promotion
Example of Public Relation/Publicity
 The Gann Chart
No. ACTIVITIES MONTH
1 2 3 4 5 6 7 8 9 10 11 12

1 General briefing to personnel

2 Advertising & promotion launched

3 Departemental coordination

4 Briefing for all distribution channel

5 Sales visits

6 Monitoring & corrective actions

7 Consolidation
The Marketing Budget
ITEMS FIXED ASSETS MONTHLY EXPENSES OTHER EXPENSES
EXPENSES (RM) (RM) (RM)
Signboard 300
Marketing Personnel
• Salary
• Commision 5,000
• EPF/SOCSO 5,000
• Travelling 1,000
Promotion 2,000
Grand Opening 10,000
5,000
Total 300 13,5000 15,000