Product and Service Marketing SS3 Book Keeping Lesson Note

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Define marketing
2. State the functions of marketing
3. Discuss the importance of marketing
4. Outline the types of market
5. Define Marketing concept
6. Discuss the components of the marketing concept
7. Explain what a product and product mix is

INSTRUCTIONAL TECHNIQUES: 

• Identification, 
• explanation, 
• questions and answers, 
• demonstration, 
• videos from source

INSTRUCTIONAL MATERIALS: 

• Videos, 
• loudspeaker, 
• textbook, 
• pictures

NOTE

INTRODUCTION TO MARKETING

Marketing is the activity, set of institutions, and processes for creating,communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

 FUNCTIONS OF MARKETING

1. Promotion
2. Selling
3. Product management
4. marketing information management
5. Pricing
6. financing
7. Distribution

 IMPORTANCE OF MARKETING

1. Increase brand awareness.
2. Generate high-quality leads.
3. Acquire new customers.
4. Increase website traffic.
5. Establish industry authority.
6. Increase customer value.
7. Boost brand engagement.
8. Increase revenue.
9. Improve internal brand.

MARKETING CONCEPT

The marketing concept is the use of marketing data to focus on the needs and wants of customers to develop marketing strategies that not only satisfy the needs of the customers but also accomplish the goals of the organisation.

MARKET

A market is defined as the total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities. The value, cost and price of items traded are as per forces of supply and demand in a market.

 TYPES OF MARKETS

1. Physical Markets. Any physical market is a place where buyers and sellers physically meet that involves both parties in a transaction in exchange for money.  A few good examples are departmental stores, shopping malls and retail stores.
2. Virtual Markets / Internet Markets. In today’s business environment, such types of markets are increasing on a fast track. It is a place where the seller offers goods and services via online platforms i.e. internet. Buyers and sellers are not required to physically meet or interact. Examples are Freelancer.com, Amazon.com etc.
3. Auction Market. An auction market is a place where sellers and buyers indicate the lowest and highest prices they are willing to exchange. This exchange takes place when both the sellers and buyers agree on a price. A good example is the New York Stock Exchange (NYSE), The Nigeria Stock Exchange(NSE) etc.
4. Consumer Markets. This market type means the marketing of consumer goods and services for personal and family consumption.

         Consumer market examples are

• fast-moving consumer goods are ready to cock meals and newspapers, magazines etc.,
• consumer durables goods are fridges, televisions, and personal computers etc.,
• soft goods are shoes and clothes and services include hoteling, hairdressing, schools and colleges etc

5 . Industrial Markets. The industrial market involves business-to-business sales of goods and services. These marketers do not target consumer markets. Some examples of the industrial market include

• Finish goods like office furniture,
• Selling raw materials for businesses i.e. gases and chemicals
• Offering services to business 2 business for example security agencies, auditing and legal services etc.

6. Black Market. Just like black money, the black market deals in illegal drugs and weapons. 

7. Market for Intermediate Goods. These markets deal in selling raw materials that need further processing to produce finished goods.

8. Financial Market. This is a broad market known as a financial market. This is a place for dealing with liquid assets for example shares, bonds etc. 

MARKETING MIX

The marketing mix describes the specific combination of marketing elements used to achieve the marketing objectives and satisfy the target market. It is the term that is used to describe the combination of the four inputs that constitute the core of a company’s marketing system, the product, the price, the promotional activities and the distribution system.

In his book, Basic Marketing, a managerial approach, Mc. Cathy refers to four key variables in marketing as “the four Ps”. These are the four key marketing programs, which can create demand and increase the sales of products.

THESE VARIABLES ARE PRICE, PRODUCT, PROMOTION AND PLACE.

1. Product

This represents an item or service designed to satisfy customer needs and wants. To effectively market a product or service, it’s important to identify what differentiates it from competing products or services. It’s also important to determine if other products or services can be marketed in conjunction with it. 

2. Price

The sale price of the product reflects what consumers are willing to pay for

• Marketing professionals need to consider costs related to research and development, manufacturing, marketing, and distribution—otherwise known as cost-based pricing. Pricing based primarily on consumers’ perceived quality or value is known as value-based pricing. Value-based pricing plays a key role in products that are considered to be status symbols

3. Place

When determining areas of distribution, it’s important to consider the type of product sold. Basic consumer products, such as paper goods, often are readily available in many stores. Premium consumer products, however, typically are available only in select stores.

 4. Promotion

Joint marketing campaigns are called a promotional mix. Activities might include advertising, sales promotion, personal selling, and public relations. One key consideration is the budget assigned to the marketing mix. Marketing professionals carefully construct a message that often incorporates details from the other three Ps when trying to reach their target audience. Determination of the best mediums to communicate the message and decisions about the frequency of the communication also are important. 

PRODUCT MIX

A product is a set of tangible physical attributes assembled in an identifiable form, which the buyer may account as offering want for satisfaction e.g. shoes. Product mix is a marketing decision on a product which emphasizes quality, style, brand name, packaging and durability to boost sales.

 EVALUATION:   

1. Define marketing
2. State the functions of marketing
3. Discuss the importance of marketing
4. Outline the types of market
5. Define Marketing concept
6. Discuss the components of the marketing concept
7. Explain what a product and product mix is

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively