What is a business?

Activity of buying, selling goods and

providing services in exchange for money
What are the various levels of Business Local, Regional, National, International,
Global
What are the 3 basic substages of “local Barter economy
business” evolution Village economy
Town economy
What is a barter economy? Consumers gaining good and services through
exchange
What are the characteristics of Barter Money does not exist
economy? Goods exchanged directly
Difficult to find equal value
What are the limitations of barter economy Hard to produce specialized goods
No way to store wealth
Indivisibility of goods (eg: cow cannot be
traded for eggs)
Seasonal product issues

How does regional business differ from local Regional Business

business?  Expands its operations across a larger
area, often including multiple cities or
states. This means it can serve a wider
customer base.
Local Business
 Operates primarily within a specific
community or area. Its customers are
from that local region.

Difference:
 Grows because of the cooperation
between 2 states
 Expands its market reach from local
audiences to state level audiences

What defines national business? Is where the presence of the business felt
nation wide
What led to the emergence of international The need to fulfill the scarcity of resources
business? within the country
What is the concept behind the global Seeing the entire world as one large market,
market? forming a global business perspective
Why is finance essential in a startup? Because they help in funding of labor,
premises, customers, suppliers, and equipment
Moreover, they are the hardest to obtain
Why is labor important for a business? Essential for development of products/
 services
Vital for production and delivery
Who are customers in a business context? They are the people who buy from the
business
Key aspect of success of a business
What roles do suppliers play in a business? They provide raw materials necessary for
production
What factors determine a business's premises Depends on the business activity, can range
and equipment? from a simple office to a large factory
What is a business aim? A goal business wants to achieve
What is a business objective? Detailed steps taken to achieve a stated aim
What does the vision statement provide? A detailed picture about the roadmap for the
future
 Based on its history, current
situation, and the organizations ideal
future position
What is the purpose of the vision statement? Sets out the vision and values
 Helps employees, managers, suppliers,
and customers to understand the
business action
List the benefits of vision statement o Inspires and promotes long term
thinking
o Creates common identity and shared
purpose
o Competitive, unique, and original
What is the purpose of a mission statement? A declaration of purpose distinguishing one
firm from another, covering a core purpose,
strategies, and values
What are the environmental factors that 1. Introduction: Environmental factors
affect business? affecting a business are elements that
can influence the operations and
overall success of a company.
2. Internal environmental factors:
 Factors within the organization that
impacts the business operations
/
 Factors that can be changed according
to the business based on their activity
and scope
3. External environmental factors:
 Factors outside the organization
that the business has limited or no
control over but still affect it.

What major factors fall under the internal 1. Plans & Polices
environments of a business? 2. Relationships
3. Huma resource
4. Cooperate Image
5. Financial resource
6. Plant and machinery
7. Labour Management
8. Organizational Structure
What is microenvironment? Refers to immediate environment
surrounding a business that directly
influences its operations and decision making
What falls under the Microenvironment of a ▫ Suppliers, resellers, customers
business? ▫ The general public and their
expectations
Name some macro environment forces? ▫ Demographics
▫ Economic and natural forces
▫ Technological, political, legal, social,
and cultural forces

What is Macro environment? Refers to the larger external factors that

affect the entire industry or market, which are
generally beyond the control of any single
business.
What are the different business functions? ▫ Sales and marketing
▫ Finance and accounting
▫ Research and development
▫ Production and operation
▫ Customer services
▫ IT & Support
What is the main role of Marketing function  Promotes products/services
in a business?  Conducts market research
 Creates advertising campaigns
 Engages with customers
 Drives sales and brand awareness
/
 The marketing function focuses on
promoting the business's products or
services, conducting market research,
creating advertising campaigns, and
engaging with customers to drive sales
and brand awareness.
What are the key activities of Finance o Manges financial health
functions o Budgets and forecasts
o Financial reporting
o Controls expenses
o Ensures cash flow
What is the Human Resource (HR) ▫ Employee recruitment
functions responsible for? ▫ Training development
▫ Performance managements
▫ Employee relations and payroll
▫ Compliance with labor laws
Describe the role of Operations functions in  Produces goods/services
a business?  Manages productions process
 Overseas quality control
 Handles supply chain management
What does Research and Development (RD)  Innovates new products
function do?  Improves existing products
 Maintain competitive edges
What tasks are included in the IT  Manges technology infrastructure
(Information Technology) functions?  Maintain hardware/software
 Ensures cyber security
 Provides IT support
What are the primary duties of the Sales  Generates revenue
functions?  Engage with customers
 Negotiates and closes details
What are the advantages of being a sole  No formal setup procedures
trader?  Full independence and profit retention
 Direct supervision and personal
contact with customers

What are the disadvantages of being Sole ♦ Limited resource and life span
trader? ♦ Unlimited liability and limited capital
♦ High risk with limited ability to adjust
What is partnership in business? Business with two or more owners
Can be formal or informal, used for large or
small operations
List the contents of Deed of partnership ▫ Capital contribution per partner
▫ Profit/loss division
▫ Voting rights
▫ Rules for new partners and dissolution
What are the advantages of partnerships
 Shared risk and workload
 Pooling of resources and skills
 Increased credibility with customers
and suppliers

What are the disadvantages of partnerships?  Shared profit

 Reduce individual control
 Potential for disputes and direction
conflicts
What is limited liability company (LLC)? Business with limited liability for shareholders
 Investors can only lose their initial
investments
Differentiate between a private limited Private Limited-
company and public limited company 1. Can’t issue shares publicly
2. Minimum one member to start
Public Limited-
1. Can issue shares publicly
2. Minimum share holders
What is a Franchise?  Business model where a sole
proprietor buys a right to a business
model using the franchisors name
 Franchisor sells right and may run its
own business
 Franchisee pays profit percentage to
the franchisor regularly
What are the advantages of setting up a  Supporting from franchisor
franchisee? (marketing, retailing)
 National advertising and established
brand
 Less expertise needed; lower risk
 Proven business model; less startup
investments
What are the disadvantages of setting up a  High cost to buy a franchise
franchisee?  Must pay a percentage of revenue to
franchisor
 Limited flexibility in operation (eg;
pricing, advertising, staff)
What are the key characteristics of an a. Motivation
entrepreneur? b. Creativity and persuasive
c. Versatility
d. Superb business skills
e. Risk tolerance
f. Drive
g. Vision
h. Flexibility and open minded
i. Decisiveness
Who are the types of stakeholders I. Internal stakeholders (employees,
managers)
II. Connected stake holders
(shareholders, suppliers,
customers)
III. External stakeholders (government,
interest/pressure groups,
professional bodies)
What are the goals and potential response of  Employees: Job security, satisfaction;
connected internal stakeholders may resign or join trade union
  Managers: Promotions, benefits; may
refuse location
What are the goals and potential response of  Shareholders: Increase wealth; may
connected stakeholders sell shares or remove management
 Suppliers: Profitable sales; may refuse
credit, pursue legal action
 Customers: Reliable products, may
switch brands, lodge complaints
What are the goals and potential response of  Government: Collect taxes,
connected stakeholders ensures regulations, may impose
taxes or legal actions
 Interest groups: Focus on
environment/human rights, may
protest or create publicity
 Professional bodies: Maintain
standard; may impose ethical
guidelines
What are corporate social responsibilities  Ethical obligations of a business to
(CSR)? benefit society
 Creates positive images, builds
communications, differentiates
brands
What is an organizational structure? o Hierarchical arrangements of authority
and duties
o Determines roles, power,
communication flow
What are common types of organizational  Functional Structures: Grouped by
structures? hierarchy, clear authority
 Divisional Structure: grouped by
product type/market workflow
What are the advantages of tall structures?  More promotional opportunities
 Clear progression
 Close supervision
What are the disadvantages of tall structures?  Slower decision-making
 Higher managements costs
 Potential coordination issue
What are the advantages of flat structures?  More delegation
 Low management cost
 High level of employee
engagement
What are the disadvantages of flat structures? § Fewer promotional opportunities
§ Higher risk if promotions fail
What do ‘chain of command’ and ‘span of Chain of command: Line for passing
control’ mean? orders from top to bottom
Span of control: Number of
subordinates a manger supervises
What is social responsibility and why do Definitions:
companies engage in it? Ethical obligations for a business to act
in a way that benefits the society
Reasons for Involvements:
 Build positive public image
 Strengthen community and legal
relationships
 Differntiate brand in the market.
 Eg: Environmental programs,
charitable donations, ethical labor
practices
What is matrix organizational structures? o Combines functional and divisional
structures
o Employee report to multiple managers
(project & department head)
Advantages:
o Flexible, promotes collaborations
Disadvantages:
o Can cause confusion with dual
reporting lines
What are the advantages and disadvantages Wide span:
of wide and narrow span of control Advantages:
 Forces delegation, improves
efficiency
Disadvantages:
 Potential for overwhelmed
managers, reduced supervision
Narrow span:
Advantages:
 Close supervision, better
control
Disadvantages:
 High management costs, lower
decision making
What are the additional differences between Tall structures:
tall and flat organization?  More layers of Hierarchy
Advantages:
 More personal contacts between
levels, smooth progression
Disadvantages:
 Slower communication, higher
management cost
Flat structures:
 Fewer hierarchical layers
Advantages:
 Faster communication, low
 management cost
Disadvantages:
 Limited promotional
opportunities, lower delegations
How do different stakeholders respond to 1. Employee: Join union or strike if
risks? job satisfaction is low
2. Shareholders: Sell shares or
pressure management if it
decreases
3. Suppliers: Demand payment terms
or take legal actions of payments
are delayed
4. Customers: Switch to competitors
if product quality drops
5. Government: Impose stricter
regulations or take legal actions of
law is violated
How can business growth be achieved Top line growth: Increase revenue
through higher sales or new products

Bottom line growth: Improve

profitability by reducing costs and
optimizing operations
How are the entrepreneurial characteristics i. Motivation: Setting ambitious
applied in real-life scenarios? business goals and achieving them
besides the challenges
ii. Creativity: Innovating new
products or marketing strategies
iii. Flexibility: Adapting to market
changes
iv. Vision: Forecasting industry trends
and planning for future growth
What are the responsibilities of different a. CEO: Overall strategies direction,
managerial roles in an organization? decision-making
b. Marketing manager: Oversees
marketing campaigns, develops
strategies
c. HR Manager: Manges recruitment,
training and employees' relations
d. Finance Manager: Handles budgets,
financial reporting
e. Production Manager: Supervises
manufacturing process, ensures quality
control
f. Production Managers: Supervises
manufacturing process, ensures quality
 control
What do authority, responsibility, and power 1) Authority: Right to give orders and
mean in an organization? expect them to be followed
2) Responsibility: Obligation to
complete assigned tasks
3) Power: Ability to influence
decisions and control outcomes.

MANAGE HUMAN RECORDS

Define HRM A strategic approach to managing
people effectively in an organization
to help the business gain a
competitive advantage. It focuses on
policies and systems that ensure the
efficient management of human
resources.
What are the responsibilities of a line Line managers:
manager compared to an HR manager?  Manages employee decisions
 Ensures team productivity
 Provides on the job training
 Evaluates employee performance

HR Manager:
 Develops and enforces the HR
policies
 Oversees recruitment process and
selection
 Manages training and development
 Handles employee relations and
benefits

What are the primary goals and objective of o Optimize employee performance
HRM? o Attract and retain talent
o Develop a positive work culture
o Align HR strategies with business
goals
What are the main functions and activities of 1. Recruitment and Selection: Attract
HRM? and hire talent.
2. Training and Development: Enhance
employee skills.
3. Performance Management: Monitor
and evaluate performance.
4. Compensation and Benefits: Manage
pay and incentives.
 5. Employee Relations: Address issues
and improve engagement.
6. Compliance: Ensure legal and
regulatory adherence.
What is HRM Planning?  Analyze and forecasts HR needs
 Assess workforce demand and supply
 Develops strategies to address
workforce gaps
How do you forecast workforce gaps?  Analyze current staffing levels
 Review future business objectives
 Consider employee turnover and
retirements
 Anticipate industry trends and skill
requirements
How can workforce gaps be filled?  Promote or transfer internal staff
 Retrain and upskill current employees
 Hire externally for new talent
 Outsource roles as needed
Define Recruitment and Selection  Recruitment: Process of attracting
job candidates
 Selection: Process of evaluating and
choosing the right candidate
What are the differences between internal and Internal Recruitment
external recruitment?  Promotes current employees
 Faster onboarding
 Boosts employee morale

External Recruitment
 Hires candidates from outside
 Brings new perspective
 May require longer on boarding
What is involved in the selection process, and Process:
what tools are used? ▫ Resume screening
▫ Conducting interviews
▫ Administering test
▫ Background checks
▫ Reference verification
Tools:
▫ Structured interviews
▫ Psychometric testing
▫ Assessment centers
What are some theories and models? 1. Maslow’s Hierarchy of needs:
suggest employees are motivated by a
hierarchy of needs, from basic
(psychological) to complex (self-
actualization)
 2. Herzberg's Two-Factor Theory:
Identifies motivators (eg: recognition)
and hygiene factors (eg: salary) as key
to job satisfaction
3. Expectancy Theory (Vroom):
Motivation depends on three factors
 Expectancy: Belief that effort leads to
performance
 Instrumentality: Belief that
performance will result in reward
 Valence: Value of the reward to the
individuals
4. Strategic HRM (SHRM) Theory:
 Aligns HRM practices with
organizational goals
 Focuses on long-term planning to
ensure HR contributes business
success
 Involves integrating HR policies
with overall strategy (eg:
workforce development to meet
future market needs)
4. Infusion Theory in HRM:
 Focuses on embedding HR
practices across all organizational
functions
 Aims to make HR everyone’s
responsibility, not just the HR
department’s
 Encourages collaboration between
HR and line managers for
seamless HR integration
5. Diversity in HRM Theory:
 Recognizes the value of diverse
workforces in fostering innovation and
creativity
 Focuses on creating inclusive policies
and practices that respect differences
(eg: gender, ethnicity, age)
 Promotes equal opportunities and
combats workplace discrimination
Provide examples of HRM strategies in action  Performance appraisal: Companies
like google use peer reviews and 360-
degree feedback for comprehensive
performance evaluation
 Training Programs: Amazon’s
 upskilling programs helps employees
gain new tech skills
 Employee Engagement: Adobe
eliminated formal performance
reviews and implemented regular
“check-ins” to boost engagement
Define performance management  Ongoing process of evaluating and
improves employee's performance
 Aligns individual goals with
organizational objectives
 Involves regular feedback, goal
setting, and development plans
What are the benefits of performance For Employees:
management?  Clear understanding of job
expectations
 Opportunities for career growth and
skill development
 Increased motivation through
recognition
For Employes:
 Improved productivity and efficiency
 Identification of high-performing
employees for promotion
 Early detection of performance issues
 Better alignment of workforce efforts
with organizational goals
What are the key components of performance 1. Goal setting: Establishing clear,
management? measurable objectives
2. Performance appraisals: Regular
reviews of employee performance
3. Feedback and coaching: Providing
constructive feedback and guidance
4. Training and development: Offering
resources to build skills
5. Reward and Recognition:
Acknowledging and rewarding
achievements
6. Performance Improvements Plans
(PIPs): Addressing underperformance
with specific action plans
Define employee relations § Managing relationships between
employers and employees
§ Ensures a positive and productive
work environment
§ Includes addressing concerns,
resolving conflicts and fostering
 engagement
What are the benefits of positive employee For Employees:
relations?  Increased job satisfaction and morale
 Improve trust and communication
with managements
 Reduced workplace stress and
conflicts
For Employers:
 Higher employee retention rates
 Enhanced team collaboration and
productivity
 Stronger company reputation
What are strategies to improve employee a. Promotes open communication
relations? through regular meeting and feedback
session
b. Foster and inclusive workplace culture
c. Recognize and reward employee
contribution
d. Provide training and career
development opportunities
e. Address grievances promptly and
fairly
What strategies can be used for conflict I. Identify the Root Cause: Understand
resolution in the workplace? the issue and perspective involved
II. Encourages Open Dialogue: Allow
all parties to express their views
III. Active Listening: Show empathy and
listen without interrupting
IV. Collaborative Problem-Solving:
Focusing on finding mutually
beneficial solutions
V. Mediation: Involve a neutral third
party if necessary
VI. Policy Adherence: Follow
organizational policies for consistent
conflict resolution

FUNDAMENTALS OF BUSINESS ECONOMICS

What are the key principles of Business  Economics is the study of how
Economics? individuals and societies allocate
limited resources
 Focuses on production, distribution,
and consumption of goods services
 Explores choices under conditions of
scarcity
  Aims to solve problems of resource
allocation
What does Economics do? o Helps to understand how resources are
allocated efficiently
o Analyze human behavior in decision-
making
o Guides policies to address economic
problems
o Aids in planning for sustainable
development
What is Economic Scarcity?  Scarcity means limited resources vs
unlimited wants
 Central problem in economics
 Requires choices about economic
allocation
 Leads to trade-off and opportunity
costs
What are the resources in Scarcity? 1. Land: Natural Resources
2. Labour: Human effort
3. Entrepreneurship: Risk taking and
innovation
4. Capital: Tools and machinery

What are the factors of Production? I. Land: Natural Resources

II. Labour: Human effort
III. Entrepreneurship: Risk taking and
innovation
IV. Capital: Tools and machinery

What are the Basic Economic Concepts a. Scarcity: Limited Resources vs

Unlimited needs
b. Opportunity cost: Value of the next
best alternative
c. Choice: Decision making due to
Scarcity
d. Supply and Demand: Relationship
between the availability and desire for
the goods
e. Marginal analysis: Assessment of
additional cost and benefits
What are Trade-offs and Opportunity costs? i. Trade-offs: Sacrificing one option for
another due to limited resources
ii. Opportunity Cost: The value of next
best alternative given up
What is Micro-Economics?  Study of individual economic unit
 Focuses on resource allocation and
 decision making
 Examines price determination and
market mechanisms
 Explores factors influencing consumer
and producer behavior
What are the determines of Demand? o Price of the good
o Income of consumers
o Prices of related goods (substitutes
and compliments)
o Tastes and Preferences
o Expectations of future prices
What are the determinants of Supply? ♦ Cost of production
♦ Technological advancements
♦ Taxes and subsidies
♦ Prices of related goods in production
♦ Market expectations
What is the Law of Demand?  When a price of a good decreases,
demand increases, vice versa
 Assuming when the other factors
remain constant (other determinants of
demand)
Example of Law of Demand: If the price of
coffee decrease from $5 to $3 more people
might buy coffee
What is the Law of Supply?  When a price of a good increase,
demand increases, vice versa
 Assuming the other factors
remains constant (other
determinants of supply)
What is Market Equilibrium? ▫ Point where quantity demanded equals
the quantity supplied
▫ Markets clear with no surplus or
shortage
What are types of Market Structures? i. Perfect competition: Many buyers
and sellers, identical sellers
ii. Monopoly: Single seller,
dominates the market
iii. Oligopoly: Few large firms control
the market
iv. Monopolistic competition: Many
sellers offering differentiated
products
What are the types of Markets? 1. Goods market: Exchange of physical
goods
2. Service market: Exchange of services
 3. Labor market: Hiring of workers
4. Financial market: Exchange financial
instruments (e.g.: stocks, bonds)
What is the Circular Flow of income?  Illustrate how many flows through
the economy
 Household provides factors of
product to firms (e.g.: labor)
 Firms provide good and services to
households
 Includes Government, Financial
and International Sectors
What is Macro-Economics?  Study of the economy as a whole
 Analyze aggregate indicators like
GDP, Inflation and
Unemployment
 Focuses on National income and
Output
 Deals with fiscal and monetary
policies to stabilize the economy
What are the key concepts of Macro- 1) Gross domestic product
Economics? (GDP): Total value of goods
and services
2) Inflation: General increases in
price
3) Unemployment: Percentage of
workforce that isn’t employed
4) Fiscal Policy: Government
spending and taxation
5) Monetary Policy: Central bank
regulation of money supply
and interest rates
6) Price level: Average level of
prices in the economy
7) Economic growth: Increase in
the output of goods and
services over time
8) Growth rate: Percentage
change in economic output
over a period.
9) Real vs Nominal value: Real
values are adjusted for
inflation and Nominal value
are not

FUNDAMENTALS OF BUSINESS MARKETING

What is marketing? The process of identifying, anticipating and
satisfying the customer's needs profitably
Why is marketing important?  Creates values
 Builds relationships
 Drives business growth
What are the 4Ps of marketing? o Product
o Price
o Promotion
o Place
What are the core marketing concepts? 1. Needs: Basic human requirements (eg:
Food, Water)
2. Wants: Needs shaped by culture and
personality
3. Demand: Wants backed by the
purchasing power
4. Goods: Tangible products that fulfils
customers' needs and wants
5. Services: Intangible offerings that
provides value (eg: education and
transport)
6. Satisfaction: meeting or exceeding
customers expectation
7. Exchange: Act of obtaining a desired
product by offering in something in
return
8. Transaction: a trade between 2 parties
that often consist of money, goods or
services
9. Relationships: Building long-term
trust with customers
What is a Target Market?  A specific group of consumers a
business aims to serve
 Identified based on shared preferences
and characteristics
How can target markets be specified? I. Demographic Characteristics
 Age, gender, income, education,
occupation and marital status
II. Psychographic Characteristics
 Lifestyle, values, personality
traits, interests, attitudes
III. Behavioral Characteristics
 Purchase behavior, usage rate,
brand loyalty, benefits sought
How do organizations do marketing to satisfy  Conduct market research and
customers? understand customer need
 Segment markets and understand
 customer needs
 Develop products/ services tailored to
customer preferences
 Use promotional strategies to create
awareness
What is a market? § A place where buyers and sellers meet
§ A collection of buyers with needs and
wants
§ Can be physical or virtual
§ Involves the exchange of good,
services or ideas
What is marketing management?  The process of planning,
implementing, and controlling
marketing activities
 Focuses on achieving organizational
goals through customer satisfaction
 Includes product developments,
pricing, promotion and distribution
strategies
What is the classification of marketing ▫ Product management
management? ▫ Sales management
▫ Advertising and sales management
▫ Distribution and logistics management
▫ Customer relationship management
What is demand management?  The process of forecasting and
influencing customer demand
 Ensures supply aligns with demand
 Involves pricing advertising and
inventory management
 Helps in avoiding overproduction and
shortages
What is customer relationship management?  Strategies to build and maintain a
long-term relationship with customers
 Focuses on understanding customers
need and behaviors
 Utilizes data and technology to
improve customer interaction
 Aims to enhance customer satisfaction
and loyalty
What are the marketing management
philosophies?  Production Concept: Focus on
production efficiency and
affordability.
 Product Concept: Emphasis on
product quality and innovation.
 Selling Concept: Aggressive
 promotion and sales tactics.
 Marketing Concept: Prioritize
customer needs and satisfaction.
 Societal Marketing Concept:
Balance customer satisfaction with
societal well-being.

What are the classification of markets based  Local Markets

on geographical areas?  Regional Markets
 National Markets
 International Markets
What are the classification of markets based  Short-term Markets
on time?  Long-term Markets
 Seasonal Markets
What are the classification of markets o Primary Markets
according to the position of sellers? o Secondary Markets
o Tertiary Markets
What are the classification of markets based  Commodity Markets
on subject matter?  Capital Markets
 Consumer goods Markets
 Service Markets
What is consumer buying behavior?  The decision-making process and
actions of consumer when
purchasing goods or services
 Includes what, when, where and
how consumers buy
influenced by cultural, social,
personal and psychological factors
What are the 5 stages of the buyer decision 1. Problem recognition: realizing a
process? need or want
2. Information search: gathering
information about products or
services
 Pros: access to a variety of
options, better decision-
making, potential cost savings
 Cons: time consuming, risk if
information overload
3. Evaluation of alternatives:
comparing options based on
features, price and benefits
 Evaluation tips: consider
quality, reviews and personal
priorities
4. Purchase decision: choosing and
 buying the product
5. Post-purchase behavior:
Assessing satisfaction and
potential loyalty.
 Includes feedback, complaints, or
word of mouth promotion
What factors influencing consumer behavior? i. Cultural factors: culture,
subculture, social class
ii. Social factors: family, roles,
status, reference group
iii. Personal factors: age, occupation,
lifestyle, economic situation
iv. Psychological factors:
motivation, perception, beliefs,
attitudes
What are the types of consumer behavior? A. Complex buying behavior: High
involvement, significant
differences between brands
B. Dissonance-reducing buying
behavior: High involvement, few
differences between brands
C. Habitual buying behavior: Low
involvement, few difference
between brands
D. Variety-seeking buying
behavior: Low involvement,
significant differences between
brands
What are the consumer buying roles? i. Initiator: Proposes or suggests the
idea of purchase
ii. Influencer: Affects decision with
opinions or advise
iii. Decider: Makes the final decision
to purchase
iv. Buyer: Makes the actual purchase
v. User: Uses the product or service
What is marketing mix? 1. Product: Proposes or suggest the idea
of purchase
2. Price: The cost consumers pay
3. Place: Distribution channels
4. Promotion: Communication
strategies to inform and persuade
What is a Product?  A tangible or intangible item
offered to satisfy a need or want
 Includes physical goods, services,
ideas or experiences
What are the classifications of Products? I. Consumer products:
Convenience, shopping, specialty,
unsought
II. Industrial products: materials,
parts, capital items, supplies
What are the levels of Products? i. Core products: The
fundamental of benefits or
services the consumer buying
 Example: Buying a car for
transportation
ii. Actual products: The
tangible features, and quality,
design
 Example: Brand, model or
feature of the car
iii. Expected products: The set of
attributes or conditions that a
buyer expects when purchasing
a product
 Example: A car with air
conditioning power
steering, or safety features
iv. Augmented product:
Additional services or benefits
offered
 Example: warranty, after-
sales, or free delivery
v. Potential products: All
possible transformations or
future enhancements a product
might undergo
 Example: Electric car
innovations or self-driving
features in future models
What are the types of consumer behavior? a. Complex buying behavior:
 Occurs when the product is
expensive or infrequently
purchased
 High consumer involvement
and significant brand
differences
 Examples: Buying a car or
house
b. Dissonance- reducing buying
behavior:
 High involvement, few
 differences between brands
 Consumers focus on
minimizing post-purchase
regret
c. Habitual buying behavior:
 Low involvement, few
differences between brands
d. Variety- seeking buying
behavior:
 Low involvements, significant
differences between brands
 Examples: trying different
snacks and beverages
What is the product life cycle (PLC)? 1. Introduction: Launch, high costs,
low sales
2. Growth: Increasing sales, profit
rises
3. Maturity: Sales peak, market
saturation
4. Decline: Sales decline, reduced
profit
What is Price in marketing? ♦ The value exchanged for a
products or services
♦ Determines revenue and
profitability
What are pricing approaches? 1. Cost- based pricing: Adding a
markup to costs
2. Value- based pricing: Based on
perceived value
3. Competition- based pricing:
Based on competitor's prices
4. Dynamic pricing: Adjust based
on market demand
What is Place in the marketing mix? § Refers to the distribution of
products to consumers
§ Ensures availability at the right
location and time
What are marketing channels?  Pathways through which goods
and services flow form procedures
to consumers
 Includes wholesalers, retailers,
distributors and agents
1. Information gathering: About
What are the functions of marketing market trends
channels? 2. Promotion: Communicating
offers to consumers
 3. Matching: Customizing products
to consumer needs
4. Physical distribution:
Transporting and storing goods
5. Financing: Help with funding for
transactions
6. Risk- taking: Bearing risks
related to operations
How to select proper marketing channels? i. Understand target audiences needs
ii. Assess products type and features
iii. Consider cost efficiency
iv. Evaluate channels member
capabilities
v. Analyze market size and location
What is the purpose of promotion in o Increase brand awareness
marketing? o Attract new customers
o Retain existing customers
o Boost sales and revenue
o Differentiate form competitors
What are the key elements of promotional  Advertising
strategy?  Public relations
 Sales promotions
 Direct marketing
 Personal selling
What are the main types of promotion 1. Advertising: TV, radio, online
mechanisms? ads, print media
▫ Paid, non-personal
communication to reach large
audience
2. Sales promotions: Discounts,
coupons, loyalty programs
▫ Short-term incentives to boost
sales
3. Public relations: Press releases,
events, sponsorships
▫ Building a positive image and
managing communication with
the public
4. Direct marketing: Email
campaigns, SMS & direct mail
▫ Personalized communication
targeting specific audiences
5. Personal selling: Face-to-face
interaction between salesperson
and customer
▫ Tailored to address specific
 customer needs and builds
relationships
What are the types of personal selling? i. Order takers: Process routine and
reorders
ii. Order getters: Actively seek out
customers, identify needs and
persuade them to buy
iii. Support personnel: Provide technical
support and assist in customer service
What is the personal selling process? A. Prospecting: Identifying potential
customers
B. Pre-approach: Reseach and
planning
C. Approach: Making initial contact
D. Presentation: Demonstrating
product value
E. Handling Objections: Addressing
customer concerns
F. Closing: Securing the sale
G. Follow-up: Ensuring customer
satisfaction
What is Integrated Marketing Communiations  Coordination of all marketing
(IMC)? tools and channels
 Ensures a consistent message
across platforms
 Maximizes communication impact
 Aligns with overall marketing
strategy
What are the reasons for using IMC? o Provides a unified brand message
o Enhances customer trust and
loyalty
o Increases marketing efficiency by
reducing duplication
o Leverage multiple channels for
better reach
o Adapts to changing consumer
behaviors and media consumption
What are the benefits of IMC? ♦ Clear and consistent brand
message
♦ Improved customer experience
♦ Cost efficiency through synergy
♦ Stronger brand recognition and
loyalty
What is push strategy? ▫ Focuses on taking the product to
the customers
 ▫ Uses trade promotion, discounts,
and retailer incentives
▫ Examples: Promoting product to
retailers for shelf placement
What is pull strategy?  Focuses on creating demand
among consumers
 Encourages customers to actively
seek the product
 Example: social media campaigns
targeting end-users
What are the main characteristics of services? a. Intangibility: Cannot be touched
or stored
b. Inseparability: Production and
consumptions occur
simultaneously
c. Perishability: Cannot be stored
for later use
d. Variability: Quality depends on
who provides the service
e. Customer participants:
Involvement of the customers in
the service process
How are services classified? 1. By Industry: Healthcare,
education, hospitality, IT
2. By Target Market: Consumer
services, business services
3. By Nature of Services: People-
based (eg: haircuts), equipment-
based (eg: ATMs)
4. By Delivery: Online services,
face-to-face services
5. By Customization: Standardized
services, customized services
What is service marketing?  Focused on promoting and selling
intangible services
 Involves building trust and
relationships with customers
 Highlights the value and benefits
of the services
 Uses strategies tailored to the
unique characteristics of services
(eg- intangibility, insperability)