1. SCHOOL FOR HUMAN RESOURCE DEVELOPMENT (SHRD) Department of Entrepreneurship and Procurement DBAM: MARKETING THEORY Prof. Henry M. Bwisa bwihem@yahoo.com www.professorbwisa.com 0722858507

2. PURPOSE To provide an understanding of the theories inherent in the marketing of goods and services in organizations with a view of synthesizing the nature and practice of marketing both locally and internationally

3. Course objectives At the end of the course students should be able to: i)Critically examine the critical body of theoretical, conceptual and empirical knowledge of theories used in marketing today. ii)Critically review the different schools of marketing thought which have been developed during the last one hundred years and evaluate each of the schools iii)Identify and analyze concepts and axioms which are useful in building a general theory of marketing iv)Apply marketing theory in an organization

4. COURSE DESCRIPTION Marketing theory and science and marketing management. Theories of consumer behaviour and buyer behaviour, market segmentation, positioning and targeting, product and product life cycle, pricing distribution and promotion. Theories of competition. Impact and criticism of each marketing theory. The challenges facing the practice of marketing and the new paradigms in this area. Strategies in extended marketing mix of service marketing. Foreign marketing and its inherent challenges.

5. Teaching methodologies Lectures, cooperative teaching, Independent study, group discussions, field study, critiques, success stories Instructional materials/equipment Board, Computers, LCD Projectors and Teaching notes. Assessment Continuous written assessment tests …….. 30 Group presentations ………………. ……….. 30 Individual critique … …. ……… 40 Total marks ………………….……… ……… 100

6. Course textbooks Arndt j. 1995. On making marketing more scientific: Role of orientations, paradigms, metaphors and puzzle-solving. Journal of marketing, vol. 47 Baker, m.j. 1992 marketing strategy and management. Dryden press Howard, j. (1983). Marketing theory of the firm. Journal of marketing, vol. 27 Hunt, s.d. (1991). Modern marketing theory: critical issues of the philosophy of marketing science. South-western Hunt s.d. 2002. foundations of marketing theory: towards a general theory of marketing. M.E sharpe

7. Before I go further …..

8. LET’S SEARCH FOR A DEFINITION FOR PhD 10/06/20168

9. I spotted these street definitions …. P h D Pengine hana Dikri Pull her Down Permanent head Damage HarareGaborone Nairobi 10/06/20169

10. On a more serious note we discovered that a Ph.D. is… 1: A degree signifying expertise – Signifies the capability to conduct research – Some positions (e.g., professor, research scientist, managers at govt labs, etc.) only hire Ph.D.’s – An entry card into a community of experts in some “area” – By the time one graduates with a PhD, one is known and respected as an expert in that area What is an expert? Someone who knows more about some topic than anyone else (in the world!!!!!) 10/06/201610

11. What is a Ph.D? 2: An opportunity for a certain lifestyle – To think for a living – To make a large impact on something – To be your own boss Flexible hours Flexible pace Flexible topic – To travel – To constantly learn and attack new challenges – To make decent money 10/06/201611

12. So, what does PhD entail??? To earn a Ph.D., one must accomplish two things: (1) master a specific subject completely, and (2) extend the body of knowledge about that subject. To master a subject, a student searches the published literature to find and read everything that has been written about the subject. The essence of a Ph.D., the aspect that distinguishes Ph.D. study from other academic work, can be summarized in a single word: research. To extend knowledge, one must explore, investigate and contemplate. 10/06/201612

13. For PhD, Knowledge Production and Dissemination is key…. Individuals with a PhD: produce (research) and disseminate (teach) knowledge. Their pursuit of either may be mainly for the sake of (a) understanding, (b) use, or (c) a combination of (a) and (b). – Whatever the case PhD holders are the knowledge producers ; they are expected to live and work on the cutting edge, the frontiers of our knowledge. 10/06/201613

14. What can one do with a Ph.D.? Academia – Research faculty – Faculty at teaching university/college Industrial research lab National labs (government) Management consulting Start a company E nd of t hinking c apacity 10/06/201614

15. The objective of a PhD program should be to produce scholars who are competently trained in the latest methods of analysis as well being at the forefront of problem solving in the specific area of training 10/06/201615

16. Competently trained … what is competency? It is the ability, skills and/or knowledge that lead to superior performance. Some scholars see "competence" as a combination of knowledge, skills and behavior used to improve performance; or as the state or quality of being adequately or well qualified, having the ability to perform a specific role. We observe that a number of courses and programmes tend to concentrate on the gaining of knowledge and theory and to neglect performance (yet it is performance which essentially characterizes competence)... 10/06/201616

17. In order to achieve the said competencies … I will borrow from some great thinkers and educationists 10/06/201617

18. In 450 BC, Confucius, the great Chinese thinker and philosopher said … I hear and I forget (tell me and I will forget) I see and I remember (show me and I may remember) I do and I understand (involve me and I will understand) 18

19. Module 2 – Slide 19 Message of Confucian philosophy = to enhance learning retention Hear it See it Say it Do it Teach others What I hear, I forget. What I see, I remember. What I do, I understand. Confucius

20. In 1946 a US educationist and professor at Ohio State university, Edgar Dale, developed his most famous model, the cone of learning. Since then it has been globally quoted as the definitive evidence for how learners retain information when delivered in various styles and mediums and this has informed how to design training courses in specific ways

21. Dale’s Cone of Experience* * E. Dale, Audio-visual methods in teaching, 1954 Passive Active Experiential Learning least effective most effective text text word word picture +word picture +word demonstration demonstration experiment experiment project project % = Average retention rate is designated by a nature of involvement !!!

22. Cone of Learning Learners retain: 10% of what they read 20% of what they hear 30% of what they see 50% of what they see and hear together 70% of what they say or repeat 90% of what they say, while doing what they are talking about. (remember the Hear, See, Say, Do, Teach others)

23. I HEAR AND I FORGET I SEE AND I REMEMBER I DO AND I UNDERSTAND 23

24. In 1984 American educationist, David Kolb published his learning styles model in his book 'Experiential Learning: Experience As The Source Of Learning And Development‘. Kolb's learning styles model and experiential learning theory are today globally acknowledged by academics, teachers, managers and trainers as truly seminal works. David A. Kolb believes “learning is the process whereby knowledge is created through the transformation of experience” (1984, p. 38). The theory presents a cyclical model of learning, consisting of four stages shown below. One may begin at any stage, but must follow each other in the sequence.

25. concrete experience (or “DO”) reflective observation (or “OBSERVE”) abstract conceptualization (or “THINK”) active experimentation (or “PLAN”). Kolb’s Experiential Learning Cycle

26. The ExperientialLearning Cycle Kolb’s four stages operationalized

27. The ExperientialLearning Cycle

28. Experiencing Perform; do it Provide a concrete experience that: – Can be an individual or group experience, but involves doing. – Most likely will be unfamiliar to the learners – a first-time activity. – Pushes the learner beyond previous performance levels. – May be “uncomfortable” to the learner (The “Groan Zone”). – Includes the risk of failure.

29. The ExperientialLearning Cycle

30. Sharing Results; reactions; observations Get the participants to talk about their experience. Share reactions and observations. Discuss feelings generated by the experience. Let the group (or individual) talk freely and acknowledge the ideas they generate.

31. The ExperientialLearning Cycle

32. Processing Discussing; analyzing; and reflecting on the experience Discuss how the experience was carried out. Discuss how themes, problems, and issues are brought out by the experience. Discuss how specific problems or issues were addressed. Discuss personal experiences of members. Encourage the group to look for recurring themes.

33. The ExperientialLearning Cycle

34. Generalizing Connecting the experience with real world examples Find general trends or common truths in the experience. Identify “real life” principles that surfaced. List key terms that capture the learning.

35. The ExperientialLearning Cycle

36. Applying Apply what was learned to a similar or different situation Discuss how new learning can be applied to other situations. Discuss how issues raised can be useful in the future. Discuss how more effective behaviors can develop from the new learnings. Help each individual feel a sense of ownership for what was learned.

37. The ExperientialLearning Cycle

38. Evaluation of learning

39. In 1956, Benjamin Bloom developed a taxonomy of learning that has come to be known as Bloom’s taxonomy (Bloom & Krathwohl, 1956). It is a hierarchical structure representing six levels of thinking and learning skills that range from basic learning objectives such as knowledge of content through higher-order learning such as synthesis, evaluation, and creativity. Bloom’s taxonomy formed the basis for early work on the development of instructional objectives for classes and curricula. Recently, emphasis has shifted from instructional objectives, which describe what instructors do and the content of material presented during classroom instruction, to student learning outcomes, which describe what students can do as a result of their educational experiences. Instructional objectives were typically described as things (knowledge, understanding, content, facts) that could be delivered during a lecture or presented in written text. In contrast, student learning outcomes are described using concrete verbs (behaviors that can be observed in the student) rather than nouns. Whereas passive activities such as lecturing are efficient methods for transmitting basic facts and knowledge, active learning strategies that engage students in learning do encourage the development of higher-order

40. Creating Evaluating Analysing Applying Understanding Remembering BLOOM’S REVISED TAXONOMY Creating Generating new ideas, products, or ways of viewing things Designing, constructing, planning, producing, inventing. Evaluating Justifying a decision or course of action Checking, hypothesising, critiquing, experimenting, judging Analysing Breaking information into parts to explore understandings and relationships Comparing, organising, deconstructing, interrogating, finding Applying Using information in another familiar situation Implementing, carrying out, using, executing Understanding Explaining ideas or concepts Interpreting, summarising, paraphrasing, classifying, explaining Remembering Recalling information Recognising, listing, describing, retrieving, naming, finding

41. * B. Bloom, Taxonomy of Educational Objectives, 1956 L. Anderson & D. Krathwohl, Bloom’s Revised Taxonomy, 2001 ** Edorigami Wiki, Bloom’s Digital Taxonomy Bloom’s Taxonomy of Educational Objectives* Collaborating 21 st Century Essential !!! Collaborating 21 st Century Essential !!! **CreatingEvaluating Analysing Applying Understanding Remembering interpreting, restating in your own words High Order Thinking Skills Medium OTS Low OTS executing, using, implementing finding, integrating, comparing monitoring, checking, eksperimenting constructing, designing inventing remembering main concepts, not fully understanding whole material order of knowledge/skills acquisition order of knowledge/skills acquisition

42. Remembering The learner is able to recall, restate and remember learned information. – Recognising – Listing – Describing – Identifying – Retrieving – Naming – Locating – Finding Can you recall information?

43. Classroom Roles for Remembering Teacher roles Directs Tells Shows Examines Questions Evaluates Student roles Responds Absorbs Remembers Recognises Memorises Defines Describes Retells Passive recipient

44. Creating The learner creates new ideas and information using what has been previously learned. – Designing – Constructing – Planning – Producing – Inventing – Devising – Making Can you generate new products, ideas, or ways of viewing things?

45. Classroom Roles for Creating Teacher roles Facilitates Extends Reflects Analyses Evaluates Student roles Designs Formulates Plans Takes risks Modifies Creates Proposes Active participant

46. Some researcher superimposed Benjamin Bloom’s taxonomy on Edgar Dale’s cone of learning

47. Oakland Unified School District Technology Learning Center http://tlc.ousd.k12.ca.us/tlc/sitetech/agendas/documents_81202/Dale's%20Cone.pdf http://tlc.ousd.k12.ca.us/tlc/sitetech/agendas/documents_81202/Dale's%20Cone.pdf

48. Silesian University of Technology – Poland – 2010 Recent research INNOVATION IN THE LEARNING PROCESS IN THE SILESIAN UNIVERSITY OF TECHNOLOGY - ELECTRIC CIRCUIT THEORY CASE STUDY J.Rutkowski Silesian University of Technology – Poland – 2010 http://rutkowski.iele.polsl.pl http://rutkowski.iele.polsl.pl

49. Dale’s Cone - Bloom’s Taxonomy Plane Lecture e-slides ReadingHearingLooking + HWatchingParticipatingDoing Remembering Understanding Applying Analysing Evaluating Creating Textbook Laboratory Discussion forum f2f & online Classes f2f Quizzes online Project Lecture blended video podcasts discussion forum online f2f Obligatory Not effective Assessment Program Lecture f2f laptop ppt Lecture f2f (tablet PC) + video podcasts online Lecture f2f (tablet PC) (animations, simulations) Lecture f2f chalk+blackb. Learning Content Thinking skills Experience s

50. Let’s look at all the four: Confucius, Edgar, Kolb and Bloom together

51. Kolb’s Experiential learning cycle REMEMBER CREATE BLOOM’S TAXONOMY I HEAR I FORGET I SEE I REMEMBER I DO I UNDERSTAND Confucian philosophy

52. Marketing theory and science and marketing management. Theories of consumer behaviour and buyer behaviour, market segmentation, positioning and targeting, product and product life cycle, pricing distribution and promotion. Theories of competition. Impact and criticism of each marketing theory. The challenges facing the practice of marketing and the new paradigms in this area. Strategies in extended marketing mix of service marketing. Foreign marketing and its inherent challenges.

53. Wk ContentLearning domainEvaluation 1 Marketing theory and science and marketing management. Theories of consumer behaviour and buyer behaviour, Cognitive (thinking) Passive teacher centered lectures I HEAR I FORGET; TEACHING ABOUT Abstract conceptualization Formative through Questioning oral quizzes, 2 market segmentation, positioning and targeting, product and product life cycle, pricing distribution and promotion. 3 Theories of competition. Impact and criticism of each marketing theory. The challenges facing the practice of marketing and the new paradigms in this area. 4 Strategies in extended marketing mix of service marketing. Foreign marketing and its inherent challenges. 5- 11 group field work relating theory to real world of marketing Affective ; group work - I SEE I REMEMBER; Reflective observation, Concrete experiencing None 12- Seminarian group presentationsPsychomotor presentations, I DO I UNDERSTAND;Active experimentation Summative project 14 Examination COURSE STRUCTURE 6/10/201653H.M. Bwisa

54. LECTURE NOTES

55. Week 1 - OBJECTIVE 1 Critically examine the critical body of theoretical, conceptual and empirical knowledge of theories used in marketing today.

56. Theory Theories are constructed in order to explain, predict and master phenomena (e.g. relationships, events, or the behavior). In many instances we are constructing models of reality. A theory makes generalizations about observations and consists of an interrelated, coherent set of ideas and models.

57. Formulating the Theoretical Framework The theoretical framework of the study is a structure that can hold or support a theory of a research work. It presents the theory which explains why the problem under study exists. Thus, the theoretical framework is but a theory that serves as a basis for conducting research.

58. Formulating the Theoretical Framework Purpose: It helps the researcher see clearly the variables of the study; It can provide him with a general framework for data analysis; It is essential in preparing a research proposal using descriptive and experimental methods.

59. Theories What is a theory? –Orderly set of ideas which describe, explain, and predict behavior. Why are theories important? –To give meaning to what we observe. –As a basis for action -- finding ways to improve the lives and education of children.

60. Theory As Schools of Thought Theory and research work together to develop schools of thought (multiple theories). Over time, social work has recognized that no single theory, whether narrow (psychodynamic) or grand (general systems theory) can guide practice. Generalist practice represents a paradigm shift to open assessment and consideration of multiple theories. The profession has gone from a paucity of theory to a plurality of theory.

61. The Scientific Method 1.Observe an event. 2.Develop a model (or hypothesis) which makes a prediction. 3.Test the prediction. 4.Observe the result. 5.Revise the hypothesis. 6.Repeat as needed. 7.A successful hypothesis becomes a Scientific Theory. model test

62. Everyday Science Scientific MethodCar Repair ObservationEngine won’t turn over. Hypothesis (prediction)Predict battery is dead. TestReplace battery. Observe resultEngine now turns over. Revise hypothesis?Not needed. New test?Not needed. Scientific TheoryCars won’t work without a fully charged battery.

63. Everyday Science Scientific MethodMaking Spaghetti Sauce ObservationSpaghetti sauce should be red. Hypothesis (prediction) Try a tomato sauce. TestHeat pot of tomato sauce. Observe resultTaste the sauce - bland. Revise hypothesis?Use tomato sauce and garlic! New test?Add garlic, taste - not so bland. Scientific TheoryThe Final Recipe.

64. CONCEPT Concept has been variously defined by sources. Philosophers generally agree that a concept is an idea formed from inference; A general idea derived or inferred from specific instances or occurrences; Something formed in the mind; a thought or notion.

65. Concept After formulating the theoretical framework, the researcher has to develop the conceptual framework of the study. A concept is an image or symbolic representation of an abstract idea. Chinn and Kramer (1999) define a concept as a “complex mental formulation of experience”. While the theoretical framework is the theory on which the study is based, the conceptual framework is the operationalization of the theory.

66. Conceptual framework It is the researcher’s own position on the problem and gives direction to the study. It may be an adaptation of a model used in a previous study, with modifications to suit the inquiry. Aside from showing the direction of the study, through the conceptual framework, the researcher can be able to show the relationships of the different constructs that he wants to investigate.

67. What is a conceptual framework? A written or visual presentation that: – “explains either graphically, or in narrative form, the main things to be studied – the key factors, concepts or variables - – and the presumed relationship among them”.

68. where the conceptual framework fits in a proposal Research problem: Paradigm: Aims and objectives: Literature review: Conceptual framework: Research questions: Data collection and analysis: Interpretation of the results: Evaluation of the research: The issue of theoretical or practical interest. The philosophical assumptions about the nature of the world and how we understand it - positivism. What we want to know and how the answer may be built up. A critical and evaluative review of the thoughts and experiences of others. Provides the structure/content for the whole study based on literature and personal experience Specific questions that require answers. Methodology, methods and analysis. Making sense of the results. Revisit conceptual framework.

69. Concept versus Construct Concept 1.Term (nominal definition) that represents an idea that you wish to study; 2.Represents collections of seemingly related observations and/or experiences Concepts as Constructs – We refer to concepts as constructs to recognize their social construction.

70. Conceptualization 1.The process of conceptualization includes coming to some agreement about the meaning of the concept 2.In practice you often move back and forth between loose ideas of what you are trying to study and searching for a word that best describes it. 3.Sometimes you have to “make up” a name to encompass your concept. If you are interested in studying the extent to which people exhibit behaviors that bring together groups, you might come up with the nominal definition “bridge maker.” 4.As you form the aspects of a concept, you begin to see the dimensions; terms that define subgroups of a concept. 5.With each dimension, you must decide on indicators; signs of the presence or absence of that dimension. (Dimensions are usually concepts themselves).

71. Operationalizing Choices The process of creating a definition(s) for a concept that can be observed and measured The development of specific research procedures that will result in empirical observations Examples – SES is defined as a combination of income and education and I will measure each by… – The development of questions (or characteristics of data in qualitative work) that will indicate a concept See example about ‘looking for work’ on page 125

72. Marketing concept Marketing concept according to kotler (1996) is a marketing philosophy, which sees the consumer or client as the central focus of all the activities of an organization because no organization can survive without the continue patronage of its consumers. This philosophy regards a genuine concern for consumer welfare (Consumer Orientation) and the adequate fulfillment of his needs (consumer satisfaction) as the most dependence paths to the realization of an organization short and long term goals

73. Sales concept A marketing idea that is based only on the selling of goods or services, rather than on whether or not they are actually needed. Operating under the sales concept, a business would produce goods that it anticipated a profitable return from and then attempt to persuade consumers to purchase them by using advertising and other sales techniques. Also called the selling concept.

74. Marketing and Sales Concepts Contrasted

75. Ways of Knowing There are three basic ways of knowing: 1. Faith- knowing based on theological or religious beliefs. 2. Reason-knowing based on rational discourse; logic, argument, philosophical proof. 3. Science- knowing based on empirical evidence; assumptions of linearity, probability, & ability to measure an objective reality

76. Science As a Way of Knowing Scientific knowing differs from knowing based on animal instincts and belief in ideology or magic. The scientific paradigm is based on trust in reason (rules of discourse), logic, rigorous research methodology, a belief in progress (new knowledge builds on previous knowledge) and academic freedom (pursuit of truth). Science adheres to standards against which comparative evaluation occurs.

77. Science As A Way of Knowing Continued Science holds that a large part of reality is measurable and therefore capable of being known. Science produces knowledge stated in such a way as: (a) to make it comparative, (b) to prove or disprove it, (c) to integrate it, (d) to generate and test new knowledge. Knowledge is a set of ideas whose acceptability is determined by the criteria of science.

78. Empirical knowledge Knowledge that relies on or is derived from observation or experiment: empirical results that supported the hypothesis. Knowledge verifiable or provable by means of observation or experiment: empirical laws. Knowledge guided by practical experience and not theory, especially in medicine.

79. Week 2

81. Needs - A human need is a state of felt deprivation. Ex: physical needs, social needs, individual needs Wants - As human needs are shaped by culture and individual personality, these take the form of human wants. - Wants are described in terms of objects that will satisfy the needs. Ex: Need – Food Want –??? American will want a burger for food. A Luhya will want Ingokho and ugali for food. Needs vs. Wants Some sellers confuse wants and needs. Consider this... “A customer does not need a drill bit; rather he needs a hole.”

82. Demands When backed by buying power, wants become demands. Consider this... “Unlimited wants. Limited resources.” Consumers view products as bundles of benefits. They choose products that give them the best bundle for their money. Differentiate the perceived bundle of benefits given by these products. Shirts: Bench, Lacoste / Soap: Safeguard, Neutrogena / Shampoo: Pantene, Palmolive

83. Various States of Demand (1) Negative Demand (2) No Demand (3) Latent Demand (4) Falling Demand (5) Irregular Demand (6) Full Demand (7) Overfull Demand

84. (1) Negative Demand: A major part of the market dislikes the product and may even pay to avoid it. Ex: vaccinations, dental work, seat belts Challenge: Marketers must analyze why the market dislikes the product, and whether product redesign, lower prices, or more positive promotion can change consumer attitudes. (2) No Demand: Target consumers may be uninterested in the product. Ex: Farmers may not want new farming method; students may not care for foreign language courses Challenge: Marketer must find ways to connect the product's benefits with the market's needs and interests.

85. (3) Latent Demand: Consumers have a want that is not satisfied by any existing product or service. Ex: Nonharmful cigarettes, biodegradable packs Challenge: Marketer must measure the size of the potential market and develop effective goods and services that will satisfy demand. (4) Falling Demand: Sooner or later, every organization faces falling demand for one of its products. Ex: churches face membership decline, fewer applicants to colleges Challenge: Marketer must find causes of market decline and re-stimulate demand by finding new markets, changing product features, or creating more effective communications.

86. (5) Irregular Demand: Demand varies on a seasonal, daily, or even hourly basis, causing problems of idle or overworked capacity. Ex: school uniforms Challenge: Marketer must find ways to change the time pattern of demand through flexible pricing, promotion, and other incentives.

87. (6) Full Demand: The organization has just the amount of demand it wants and can handle. Challenge: Marketer works to maintain the current level of demand in the face of changing consumer preferences and increasing competition. An organization maintains quality and continually monitors consumer satisfaction.

88. (7) Overfull Demand: Demand is higher than the company can or wants to handle. Ex: Overcrowding at parks, overloading of buses or ferries Challenge: The marketing task, called demarketing, is to find ways to reduce the demand temporarily or permanently. E.g. raising prices and reducing promotions. Aim is not to destroy demand but to reduce it.

89. Products A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a need or want. A product may be goods, services, persons, places, organizations, activities, ideas... anything capable of satisfying a need. Exchange Exchange is the act of obtaining a desired object from someone by offering something in return. Exchange is not the only means a person can obtain a desired object. Consider these... hunting, stealing and begging. Advantages of Exchange: - No need to prey on other or beg from others - No need to possess all skills to produce every necessity for himself “Exchange is the core concept of marketing.”

90. Transactions If exchange is the core concept of marketing, a transaction is marketing's unit of measurement. A transaction consists of a trade of values between two parties. “Monetary transaction vs. Barter transaction” Markets A market is the set of actual and potential buyers of a product. 3 Kinds of Market (1) Self-sufficiency (2) Decentralized Exchange (3) Centralized Exchange

91. Marketing Management Philosophies (1) Production Concept (2) Product Concept (3) Selling Concept (4) Marketing Concept (5) Societal Marketing Concept

92. (1) Production Concept The production concept holds that consumers favour products that are available and highly affordable. Management should therefore focus on improving production and distribution efficiency. - Useful in 2 types of situations: (1) When demand for a product exceeds the supply (2) When the product's cost is too high and improved productivity is needed to bring it down (2) Product Concept The product concept holds that consumers favour products that offer the most quality, performance, and features. Organizations should devote energy to making continuous product improvements. - can lead to marketing myopia

93. (3) Selling Concept The selling concept holds that consumers will not buy enough of the organization's products unless it undertakes a large selling and promotion effort. - Practiced with unsought goods – those which buyers do not normally think of buying (e.g. encyclopaedias, funeral plots) ‏ - Also practiced in the non-profit area (e.g. political candidates). (4) Marketing Concept The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. - adopted by IBM, McDonald's, Disney

94. (5) Societal Marketing Concept This concept holds that the organization should determine the needs, wants, and interests of target markets. It should deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and the society's well-being. - questions whether the pure marketing concept is adequate in an age of environmental problems, resource shortages, rapid population growth, worldwide inflation, and neglected social services - claims the pure marketing concept overlooks possible conflicts between short-run consumer wants and long-run consumer welfare

95. Week 3 - OBJECTIVE 2 Critically review the different schools of marketing thought which have been developed during the last one hundred years and evaluate each of the schools

96. Evolution of Marketing Thought How marketing has become “marketing” as we understand it and apply its practices today?

97. Marketing Management Philosophies Philosophy Key Ideas Production Sales Market Societal Focus on efficiency of internal operations Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being Focus on aggressive techniques for overcoming customer resistance

98. Four Eras in the History of Marketing Production Era Production Era – Prior to 1920s – Production orientation – Business success often defined solely in terms of production victories Sales Era Sales Era – Prior to 1950s – Customers resist nonessential goods and services – Personal selling and advertising’s task is to convince them to buy

99. Marketing Era Marketing Era – Since 1950s Marketing Concept Emerges – Shift from seller’s to buyer’s market – Consumer orientation Marketing Concept Marketing Concept – Company–wide consumer orientation – Objective of achieving long–run success

100. The Marketing Concept The idea that the social and economic justification for an organization’s existence is the satisfaction of consumer wants and needs while meeting organizational objectives. – TM & customer needs: Focus to distinguish from competitors – Integration: Integration of all activities to satisfy customer wants/needs – Profits: Achieve long term goals by satisfying customer wants/needs

101. Relationship Era Relationship Era – Began in 1990s – Carried customer orientation even further – Focuses on establishing and maintaining relationships with both customers and suppliers – Involves long–term, value–added relationships

102. 1800 – 1930 Product orientation stage Demand exceeds supply, focus on engineering and generating output, 1930 – 1950 Sales orientation Supply exceeds demand, focus on promotion and pricing, hard sell techniques create stereotype of pushy annoying salesperson 1950 – 2010 Market oriented stage Variety in markets, variety in products, full marketing mix, focus on customer needs and profitability not volume 2010 + Service dominant logic Service industries gain more importance, ideas generated in service industry spread to other sectors, intangible product features MAKE ALL YOU CAN SELL SELL ALL YOU CAN MAKE MAKE WHAT YOU CAN SELL MAKE IT TOGETHER WITH THE CUSTOMER To market (matter in motion) Market to (management of customer & market) Market with (collaborate with customers and partners for sustainable value)

103. OBJECTIVE 3 Identify and analyze concepts and axioms which are useful in building a general theory of marketing

104. 1-104 Marketing has Core Concepts Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment

105. 105 Marketing is about people The nature of people – Outdated marketing assumptions – A more modern philosophy Brains, brands and messages Network effects Happiness and well-being – The critical linking strand – A more unified model The Wildfire™ model Case histories Latest learnings

106. 106 The nature of people Marketing, advertising and research use implicit assumptions and beliefs about – – How advertising works – How people respond to marketing communications – How people relate to brands – How brands are stored in the brain – How people make buying decisions – How people respond to our questions

107. Axioms about consumers A predominant axiom is that – “consumers” make rational brand-buying decisions Acting on learnt marketing information Understood and recalled cognitively Evaluated according to utility theory – to get maximum benefit – People can recall and report back accurately all of this Within the limitations of memory loss

109. Why Marketers are Concerned about How Consumers Learn Marketers want to “teach” consumers about their products – product attributes – where to buy them – how to use and dispose of them They want to know how effective they have been in communicating with the consumer – directly, through advertisements – Indirectly, through product appearance, packaging, price and distribution channels

110. What is Learning? Generally, learning is a process by which changes occur in the content or organization of an individual’s long-term memory From a marketing standpoint, learning can be thought of as the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior

111. Range of Learning Situations Learning occurs at various levels of consumer involvement Low-level involvement: consumers have little or no motivation to process the information High-involvement learning: consumers are highly motivated to process the information

112. Week four

113. Learning Theories There are many theories about how people learn They fall into two general categories: 1.Behavioral learning theories 2.Cognitive theories

114. Behavioral Learning Theories Are also referred to as stimulus-response theories because based on premise that observable responses to specific external stimuli signal learning has taken place When a person responds in a predictable way to a known stimulus, he or she is said to have learned There are two behavioral theories with relevance to marketing: 1.Classical conditioning 2.Instrumental/operant conditioning

115. Classical Conditioning The theory that conditioned learning results when a stimulus that is paired with a stimulus that elicits a known response serves to produce the same response when used alone

116. Classical Conditioning Schematic Presentation of Classical Conditioning Conditioned Stimulus (CS) Unconditioned Stimulus (US) Unconditioned Response (UR) Elicits Comes to Elicit

117. The use of a well-known, admired individual to advertise a product can condition consumers to have positive feelings about the product “Cause marketing”

118. Strategic Applications of Classical Conditioning Three basic concepts derive from classical conditioning 1.Repetition 2.Stimulus generalization 3.Stimulus discrimination

119. Increases the strength of the association between a conditioned stimulus and an unconditioned stimulus (learning) It is used by advertisers when scheduling media exposure for an advertising campaign Too much repetition can lead to advertising wearout Consumers may become annoyed with repetitive ads and develop a negative image of the product as a result 1. Repetition

120. 2. Stimulus Generalization Learning relies not only on repetition, but on peoples’ ability to generalize--that is, respond in the same way to slightly different stimuli Explains why some manufacturers try to make their generic/store brands similar in appearance to name brands

121. Marketers use this principle to take advantage of a well-known and trusted brand in a number of ways 1.Product line extensions 2.Product form extension 3.Product category extension Referred to as the halo effect

122. 3. Stimulus Discrimination Opposite of stimulus generalization Results in the selection of a specific stimulus from among similar stimuli Forms the basis for marketers’ positioning strategy Permits marketers to differentiate their product from competitors’ (through, e.g. different features, colors, ingredients, etc.)

123. Operant (Instrumental) Conditioning B.F. Skinner Learning occurs through trial and error Habits are formed as a result of rewards for certain behaviors Consumers who try different brands, models, styles until they find the one that “fits” are engaged in instrumental learning

124. Operant Conditioning Specific Behavior Reinforcement or Punishment Increased or Decreased Probability of Response Schematic Presentation of Operant Conditioning

125. Reinforcement A reward given to acknowledge a desired behavior and increase the probability it will be repeated 1.Positive reinforcement – Events that strengthen the likelihood of a specific response 2.Negative reinforcement – A negative outcome that also serves to encourage a specific behavior – Fear appeals

126. Punishment Punishment discourages behavior as opposed to encouraging behavior to avoid a negative result

127. Extinction When a learned response is no longer reinforced, it diminishes to the point of extinction—i.e., there is no longer a link between the stimulus and the expected reward

128. Strategic Applications of Instrumental Conditioning Customer Satisfaction In order to keep its customers, a marketer or business must maximize positive reinforcement This can be done through the product itself Can also be done with other elements of the purchase situation

129. Reinforcement Schedules The pattern in which reinforcements are given Marketers have found that while product quality needs to remain high to satisfy consumers, non-product positive reinforcement does not have to be offered every time

130. Three types of reinforcement schedules: 1.Continuous/total (every time) 2.Systematic/fixed ratio (every “nth” time) 3.Random/variable ratio

131. Time Behavior Maintenance Reinforcement Schedules & Forgetting Forgetting occurs more quickly Forgetting occurs gradually over time and the residual effects of learning persist Continuous ReinforcementIntermittent Reinforcement

132. Cognitive Learning Theory Learning based on mental activity (i.e. thinking and problem-solving) Unlike simpler organisms, we learn not only by trial and error, but by – searching for information – evaluating the information, and – making a decision about what is best for us

133. Marketing Implications of Cognitive Learning Theory Primary implication is to emphasize the importance of providing information to consumers Providing information can be a promotional strategy as well

134. Cognitive Associative Learning Also called Neo-Pavlovian theory Learning involves not only the acquisition of new reflexes; it is the acquisition of new knowledge about the world Under this theory, consumers are viewed as information seekers who use logical and perceptual relations among events, along with their own preconceptions, to form a sophisticated representation of the world

135. Implications for Marketers Marketers draw on both cognitive and operant conditioning theories Providing information about a product (e.g., eggs are OK to eat) draws on cognitive theory Providing rewards (e.g., frequent flyer miles, coupons, etc.) draws on classical conditioning theory

136. Vicarious (Observational) Learning The process through which individuals learn behavior by observing the behavior of others and the consequences of such behavior Role models tend to be people consumers admire because of traits such as appearance, accomplishment, skill, or social class

137. Another alternative form of observational learning involves representation of negative consequences of not using the advertised product

138. Brand Loyalty A consumer’s consistent preference for and purchase of a specific brand 1.In high-involvement purchases (e.g., a car) it reduces risk and facilitates selection 2.In low-involvement purchases (e.g., tissues) it saves time and effort Brand loyalty generally results from consistent positive experiences with a company and/or its products

139. There has been a recent decline in brand loyalty 1.Boredom or dissatisfaction with the products 2.Variety-seeking 3.Increased concern with price To counter these actions, marketers have adopted a number of programs (e.g., frequent flyer) that reward brand loyalty

140. Evolution of Marketing Thought To Market (Matter in Motion) Market To (Management of Customers & Markets ) Market With (Collaborate with Customers & Partners to Create & Sustain Value) Through 1950 1950-2010 2010+

141. THEORIES OF MARKETING STRATEGY – CENTRAL PREMISES To achieve competitive advantage and, thereby, superior financial performance, firms should … … for market orientation strategy: (1) systematically gather information on present and potential customers and competitors, and (2) use such information in a coordinated way to guide strategy recognition, understanding, creation, selection, implementation, and modification. … for market segmentation strategy: (1) identify segments of industry demand, (2) target specific segments of demand, and (3) develop specific marketing “mixes” for each targeted market segment. … for relationship marketing strategy: identify, develop, and nurture an efficiency-enhancing, effectiveness-enhancing portfolio of relationships. … for brand equity strategy: acquire, develop, nurture, and leverage an effectiveness-enhancing portfolio of high-equity brands.

142. Week 5-12

143. YOUR GROUP ASSIGNMENT-CUM-CAT IN A GROUP OF NOT MORE THAN THREE SELECT A MARKETING SCHOOL OF THOUGHT AND DISCUSS ITS EVOLUTION, STRONG AND WEAK POINTS AND ITS APPLICABILITY IN THE KENYAN SITUATION. You may be guided by the following abstracts

144. Throughout the evolution of marketing as a discipline, there have evolved many different schools of thought. Sheth et al. (1988) tried to label, categorize and score these schools of thought in an effort to improve the understanding of marketing’s evolution. They identified 12 different schools and four different categories. Some of these appear to be very straightforward, while the validity of others is questionable. In times gone by, one could easily start a debate in the marketing community by taking the position that one school of thought was superior to that of another in a published article.

145. The intent of this assignment is to provide a review of marketing schools of thought e.g. commodity, managerial, buyer behaviour and social exchange schools. Concepts such as product categorization (i.e. convenience, preference, shopping and specialty), marketing myopia, the marketing mix, market segmentation, consumer behaviour and exchange can be traced to these four schools of thought. (A Review of the Four Prominent Marketing Schools of Thought: www.trial.warc.com/fulltext/HAT/76304.htm - United Kingdom. by RF Wright) -

146. A history of schools of marketing thought Eric H. Shaw and D. G.Brian Jones mtq.sagepub.com/content/5/3/239.abstract

147. Marketing has been thought about and practiced since ancient times. Yet, it is only in the 20th century that marketing ideas evolved into an academic discipline in its own right. Most concepts, issues and problems of marketing thought have coalesced into one of several marketing schools of thought. An evolution of 10 such schools can be traced. At the turn of the 20th century, the study of functions, commodities, and institutions emerged as complementary modes of thinking about subject matter and became known collectively as the ‘traditional approaches’ to studying marketing; shortly thereafter the interregional trade approach emerged.

148. About mid-century, there was a ‘paradigm shift’ in marketing thought eclipsing the traditional approaches as a number of newer schools came up: marketing management, marketing systems, consumer behavior, macromarketing, exchange, and marketing history. During the mid 1970s, three of the modern schools - marketing management, consumer behavior, and exchange - underwent a ‘paradigm broadening’. The broadened paradigm has bifurcated marketing thought from the conventional domain of business behavior to the much broader domain of all human social behavior. Thus, at the beginning of the 21st century marketing thought is at a crossroads.

149. END OF SEMESTER PROJECT IDENTIFY AN UNSUCCESSFUL (OR RELATIVELY SUCCESSFUL) MARKETING THEORY BEING PRACTICED IN KENYA BY A GIVEN ORGANIZATION. TRACE ITS EVOLUTION, PROVIDE A CONSIDERED OPINION ABOUT WHY IT IS NOT (OR ONLY RELATIVELY) SUCCESSFUL. PROPOSE VALUE ADDITION PROPOSALS TO ENHANCE THE THEORY CONSIDERING THE KENYAN ENVIRONMENT.

150. RULES FOR THE END OF SEMESTER EXAMINATION YOU MAY WORK IN GROUPS BUT THE END PROJECT MUST BE INDIVIDUAL PROJECTS FOUND TO BE SIMILAR WILL BE CONSIDERED AN EXAMINATION IRREGULARITY (CHEATING) AND MARKED OUT OF ZERO PERCENT A SOFT COPY OF THE PROJECT MUST BE SUBMITTED TO bwihem@yahoo.com LATEST A DAY BEFORE THE OFFICIAL UNIVERSITY EXAMINATION DATE bwihem@yahoo.com A HARD COPY MUST BE SUBMITTED (NO PRESENTATIONS) IN PERSON ON THE OFFICIAL UNIVERSITY EXAMINATION DAY EVERY STUDENT WILL SIGN THE EXAMINATION ROLL CALL ON SUBMISSION OF THE HARD COPY FAILURE TO SUBMIT BY THE SAID DEADLINES WILL BE DEEMED AN EXAMINATION FAILURE I.E. A ZERO MARK WILL BE AWARDED

151. This is the end - Thank You for being good guys! Visit www.professorbwisa.com www.mukmik.comwww.professorbwisa.comwww.mukmik.com