Basic

Background and
Seeing
Marketing
Differently
Mukhtar Halliru

Bayero University Kano

Marketing Defined...

 Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,
goods and services to create exchanges that satisfy
individual and organizational objectives.
 What functions does marketing involve? “planning and
executing”
 What areas does marketing cover? “conception, pricing,
promotion, and distribution”
 What types of endeavors use marketing? “goods,
services, experiences, persons, events, places,
properties, organizations, information and ideas”
 Why do we do marketing? “to satisfy individual and
organizational objectives”
 What is Marketing?
Marketing is...
Concepts (products)
Goods
Planning Services
Experiences
Pricing Persons
Events
Places
Properties
Executing
Promotion Organizations
Ideas

Distribution (place)
...to create exchanges!
Exchange and Marketing

Marketing is based around the concept of

creating exchanges to satisfy wants and needs.
The premise is that someone wants something
you have (e.g., a product or service), and you
want something this person has (e.g., money).
Exchange and Marketing…

 Everything we do in marketing is based around

creating exchanges:
 What products and benefits do people want, and why?
 Where do I find customers for our products?
 How do we communicate to customers about the
benefits of our products/services?
 What price is appropriate to trigger an exchange?

You can explain much of human behaviour through

the concept of exchange
 Utility
– Exchanges occur to create satisfaction on the part
of both parties. In economic terms, this
satisfaction is referred to as utility.
Form Utility: Minced meat for meat pie Time Utility: I was able to buy
(how I want it). airtime at 2am today through my
bank – enabled me make an
emergency call (when I want it)

Place Utility: Numerous

delivery services arising from Possession Utility: My hair is now long and
post COVID lockdown (where I silky – thanks to Dark and Lovely Hair
want it) Relaxer (what I want/need)
Quick Questions to Ask
– What makes a business idea work?
– Does it only take money?
– Why are some products a huge success and some
others fail?
– How was Silver Bird (Lagos and Abuja) able to launch
its successful cinema component while Film House
Cinema (Ado Bayero Mall, Kano) had to struggle to
remain afloat?
 Answer

– Successful marketing MUST take cognizance

of the culture and environment in order to
better understand the concept of value
proposition and delivery
– This is consistent with the main thrust of
marketing theory – customer orientation
 Summary of AMA Definition of Marketing
– Marketing is about creating, communicating, delivering and exchanging

– Creating: collaborating with suppliers and customers to

create offerings that have value.
– Communicating: Broadly, describing those offerings, as well
as learning from customers.
– Delivering: Getting those offerings to the consumer in a
way that optimizes value.
– Exchanging: Trading value for those offerings.
 Marketing

 Arguably the most vital aspect of business because it is required to get

off the ground
 It is required to increase market share so as to justify your investment
 You must ask three critical questions: Where are we now; Where are
we going; and how do we get there – Strategy
 Need to run test regarding market, competition and customers in
order to determine appropriate strategies to deploy
 Everyone in an organization must have a marketing mind set -
everyone needs to be on board and moving in the same direction for
synergy
 Summary of AMA Definition of Marketing
– Marketing is about creating, communicating, delivering and exchanging

– Creating: collaborating with suppliers and customers to

create offerings that have value.
– Communicating: Broadly, describing those offerings, as well
as learning from customers.
– Delivering: Getting those offerings to the consumer in a
way that optimizes value.
– Exchanging: Trading value for those offerings.
Marketing Mix (4 P’s)
– To create utilities, we utilize four variables

Place
Product
(distribution)

Price Promotion

These four variables are called the

marketing mix, or the 4 P’s of marketing.
 Traditional Way of Viewing the Components of Marketing

– Product: Goods and services (creating offerings).

– Promotion: Communication.
– Place: Getting the product to a point at which the
customer can purchase it (delivering).
– Price: The monetary amount charged for the product
(exchange).
– Traditionally referred to as the marketing mix. By implication, marketing plan is
a mix of these 4 components
 The Point of Difference
The 4 components are nouns and do not really explain what marketing
professionals do.
– For example, exchanging requires mechanisms for a transaction, which consist
of more than simply a price or place. There is transfer of ownership like in car
purchase or house. This is part of the exchange process.
– The term product is limited. Does the product include services that come with
your new car purchase (such as free maintenance for a certain period of time
on some models)?
– In essence, none of the 4 Ps describes particularly well what marketing people
do. CREATING VALUE
Why Do We Study Marketing?

 Marketing plays an important role in society.

 Marketing is important to businesses.
 “Marketing is too important to be left to the marketing
department.” –David Packard
 Marketing offers sound career opportunities.
 Marketing affects your life every day
 Nations with developed marketing systems
usually have higher standards of living.
 Explosion of Choice
– 5 private universities in Nigeria in – 79 private Universities in Nigeria in
2000 2020
– Brands of Car Tyres in the Nigerian – Brands of Car Tyres in the Nigerian
market as at 1980? market as at 2020?
– Hotels in Kano/Kaduna in 1980? – Hotels in Kano/Kaduna in 2020?
– Local Airlines in Nigeria in 1980? – Local Airlines in Nigeria in 2020?
– Brands of Cocoa Based Beverage in – Brands of Cocoa Based Beverage in
Nigeria as at 1980? Nigeria as at 2020?
 Concept of Value
The rule of thumb is to avoid a one-size fits all approach in
conceptualizing value.

Value is relative and it is the capacity of a product or service

to provide anticipated benefit!!

In essence, this would vary within sectors and for individuals.

How would you conceptualize value for the following?

 Restaurant
 Bank
 Telecommunication Company
 School
 Hospital
 Airline
 Synonyms and Effect on Mindset

 Subscriber  Patient
 Client  Shopper
 Purchaser  Passenger
 Buyer  User / End User
 Student  Concessioner
 Pupil  Customer