November 23, 2021

MARKETING ENVIRONMENT The environment can be defined as all the circumstances, people, things and events around all the marketing activities. A business performance is often dependendant on how the enterprise influences and is influenced by its environment. The environment is mainly classified into two main forms; INTERNAL /MICRO/CONTROLLABLE/TASK ENVIRONMENTAL FACTORS It usually consists of forces affecting a business directly and for which a business person can manipulate to suit the objectives of the organization. The variables includes; Customers-all enterprises rely on external customers for survival the customers may be an individual/an institution/government/another firm. The manager must understand customer needs inorder to satisfy them. Suppliers-this are institutions/people who supply materials to the organization they must provide quality inputs at competitive prices and offer fast delivery Employees/H.R-they are also the internal customers of the business who should be satisfied first.they supply labour to the organization and on their part, employees work to meet their own personal, social and economic needs the management must ensure a harmonious working relationship so that employees are satisfied and the organization achieves its objectives. Trade unions- this is a group of employees come together to fight for their rights within an organisation the management must maintain good relationship with unions for effective running of their organization some organisations allow their employees to belong to some unions while others put stringent rules and regulations to bar them from joining this unions. Owners/shareholders-this are technically the owners of the organization through stock ownership those with majority shares have the ability to influence the running of the organization the management must ensure that the shareholders intrests are protected in terms of cutting down of costs and maximizing profits they usually exercise their powers through voting in general meetings. Financial institutions/Resouces-they supply the much needed capital to run the business and include commercial banks, investment banks, insurance firms etc which advance loans, provide investment opportunities and insure business against risks the management must ensure a good working relationship with them. Company policies and objectives-this are rules and regulations necessary to govern business operations the management can change the policies and objectives to suit what it wants to achieve at a particular time. Business structure-this refers to the formal arrangememt of functions and relationships of people and work and is divided towards achievement of the set objectives. Physical resources-these are the tangible facilities which belong to the business e.g. buildings, furniture etc. Personal aspects-this includes things like labour relations, recruitment practices appraisal system etc. EXTERNAL/MACRO/CONTROLLABLE ENVIRONMENTAL FACTORS. This is the environment prevailing outside the organization for which a business can not manipulate but has to try and fit within the prevailing factors.it takes the advantage of opportunities and tries to avoid the threats. Social-cultural factors-relates to changes in the society in terms of beliefs, values, norms ,customs, traditions, religion, literacy, lifestyle differences, changes in consumption pattern, a business person must take care of this factors in order to succeed in business within a particular locality. The advancement in technology has seen so many changes in consumer preferences. Kenyans are no longer buying cassette tapes with the advent of CDs, DVDs, and USBss. (Madura 2007) Demographic factors-this are the characteristics of the population in terms of; age, total population, geographical dispersion, dependency ratio, birth rate, level of education, gender, marital status, religion, occupation, social class, incomea business person must target each group of consumers with the products they like. Ie a growing population creates a wider market for goods and services, better education and jobs for consumers who has improved taste and preference and demanding for high quality goods and services. Legal factors-this relates to changes in the laws and regulations that govern business operations businesses must be careful to keep laws and anticipate ways in which change in this laws will affect their businesses e.g. tobacco law, media bill, mututo law etc. Political factors-this relates to ways in which changes in government and government policies can influence business.in a county with political instability, businesses are threatened business may also influence government actions through lobby groups and in some countries, the business community fund their preferred candidate/party to form the next government ie capitalist/free, command /central/command  and mixed economy. Economic factors-this relates to changes in the wider economy and influences the consumers willingness and ability to buy goods and services a counry’s economy will go through decline, recession ,recovery and boom.a business has also to consider the purchasing power of consumers inorder to offer affordable products to them and also the nature of demand for their products. Other economic variables to consider include; intrest rates, level of inflation, consumers income, borrowing rates, tax rates, business cycles at particular times this economic factors will help a business to decide when to invest and when not to invest in a business. Technological factors–technology is the level of know how, available for doing specific things managers need to be aware of changes in technology taking place in environment so as to update themselves and their organization technology changes provide opportunities for business to adopt new breakthroughs, innovations, inventions to cut costs and to develop new products. Competitors-this are businesses that offer similar products to what the organization is offering businesses that do not compete effectively are often confronted with a likelihood of being eliminated from business customers are usually the beneficiaries of stiff competition in the industry e.g. Kenyan telephone users are benefiting greatly from competition between safaricom, airtel, orange and yu The competitors issues can be clearly viewed using a model developed by Michael porters five forces model Rivalry among firm-this is where firms come together and rival so as to attain the highest market share. Bargaining power of consumers-this is a case where there are many consumers who have different bargaining powers and thus consumers will buy goods in the places they wish to. Bargaining power of suppliers – this is a case where there are numerous buyers and few suppliers therefore dictating the price to charge e.g. the case of oil. Threat

THE ROLE OF RESEARCH INFORMATION IN MARKETING It provides accurate, effective and useful information that is vital for decision making across the entire organization. The decisions include; Size of the market. Customers and their buying motives. Changing trends in the market. Customer satisfaction /dissatisfaction with a product. It can be used to evaluate the effectiveness of the various elements of the marketing mix such as advertising. It provides feedback to the organization which helps it compare performance before the marketing strategy was put in place and after. MARKETING DECISION SUPPORT SYSTEM. This is the systematic collection of data from the other three systems, the use of tools and techniques with supporting software and hardware by which an organization gathers and interprets relevant information and turns it into a basis for making marketing decisions. The decisions can be classified as; Strategic decisions This are made by top level management and involves establishing objectives for the organization and long term plans for attaining those objectives. Tactical decisions. This are made by middle level management and are concerned with allocation of resources needed to meet organizational objectives. Operational decisions They are made by lower level management and involve executing specific tasks. TOPIC THREE.MARKETING MIX This is a framework which helps to structure the approach to each market. The mix is a bundle of variables offered to the customer. This is a tactical/operational part  of a marketing plan.it is composed of the elements below Product -refers to anything that can be offered to a market for attention, use, or consumption that might satisfy a want or need Price- This is the amount of money charged for a good or service This is the sum of value consumers exchange for the benefit of having or using a good or service. Place- refers to channel of distribution or the route or path followed by a product as it moves from the producer to the consumer/final user. Promotion- Promotion is a function of marketing mix and is a technique used in creating awareness on the companys product as well as the company itself. Process-involves taking into account all elements that translate to satisfaction of customer needs and wants. People-this are the living creatures who are willing and able to transact. Physical evidence-this are elements that can be seen,felt,heard or smelt. Probe-this basically refers to asking questions or carrying out a market research. FACTORS AFFECTING MARKETING MIX ELEMENTS. Finance-the business should consider how much money is to be spent on marketing. Needs of the market-the business should continue to carry out market research as the business grows,as the needs of customers change over time. Competitors-marketing mix can be used as a response of competitors actions in the market Technology-the business may change where goods are bought and sold according to changes in technology e.g. internet. Demand of products-affected by price element as they are inversely related. Nature of the product-affected by the form or physical evidence. IMPORTANCE OF MARKETING MIX ELEMENTS Generally, the specific individual marketing mix elements can be used to elaborate more on the specific marketing mix importance’s. Offerings in the market Helps to target the specific individual groups in the country. Assists in message delivery Value creation to customers.

MARKETINGINFORMATIONSYSTEMS. The marketing environment is changing at a very fast rate hence there is need for real time and up to date market information. In today’s information based society, companies with superior information enjoy a competitive advantage. MKIS- is a system that consists of people equipment and procedures that are used to gather, sort, analyse, evaluate and distribute needed timely and accurate information to marketing decision makers.it helps managers to analyse, plan, implement and control various activities in the organization. ROLE OF MARKETING INFORMATION SYSTEM/EXPALAIN THE BENEFITS  A FIRM SHOULD DERIVE FROM HAVING EFFICIENT MARKETING INFORMATION SYSTEM Access information needs-a good mkis should balance the information that managers require against what they really need and what is viable to offer given the organizations resources.ie how much information is needed, cost of obtaining the information given organization resources and benefits of having the information. Developing needed information-this involves gathering information as many sources as possible Carrying out information analysis-this involves using statistical and mathematical models to analyze information collected and its interpretation Distributing the information-the mkis distributes information to various decision COMPONENTS OF MARKETING INFORMATION  SYSTEM. INTERNAL RECORD SYSTEM. This consists of information gathered from sources within the company which helps to evaluate the marketing performance and identity marketing problems and opportunities. The  records include; Profit and loss statement. Balance sheet. Sales record Employee record. Cash flow statement. This information is used for; Day to day planning implementation and control. To evaluate the performance of a company. To detect problems. To create new marketing opportunities and ideas. MARKETING INTELLIGENCE SYSTEM. This is a set of procedures and sources used by managers to obtain every day information about development in marketing environment. Sources of marketing intelligence include; Reading books and newspapers Trade publications Meeting with other company managers. Exhibitions and conferences. Sales persons. STEPS USED TO IMPROVE QUALITY OF MARKETING INTELLIGENCE. Training and motivating the sales force to identify and report new developments. Motivating retailers and distributors to report important intelligence. Monitoring competitors activities Setting up a customer’s advisory panel made up of representative customers or the company’s largest customers so that a company can gain valuable information about customer needs and feelings. Purchasing information from outside suppliers ie research firms outside the company eg synovate. Establish a marketing information centre to collect and circulate marketing intelligence. MARKETING RESEARCH. This is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. There is a design of an interview guide and a questionnaire. Marketing research is based on specific and opportunities that the company would like to pursue. It therefore requires; A market survey. Product preference tests –why; improvements etc Sales forecasts based on various regions Advertising evaluation-ie are you effective?. SOURCES OF INFORMATION. Primary sources-this is fresh research ie information being collected for the first time to solve a particular problem or gain insight into a particular event. This information is collected through questionnaires,interviews,observation,fieldsurveys,opinioncalls,experimentation,aptitude tests etc. Secondary sources-this is information stored in some records and hence it is not an original information source. It can either be from internal or external sources. Internal sources-these are sources of information that already exists within the organization. The information could have been collected for other uses but can be used for the current research eg company magazine and the internal records system. External sources-they are sources outside the organization and include the: internet, ministry of trade and industry newspaper, libraries etc.

HISTORICAL DEVELOPMENT OF MARKETING Societies have moved from agriculture and individual self sufficient to an economy built around division of labour and specialization, urbanization and industrialization. It should however be noted that production for individual self sufficiency is not marketing because there is no exchange going on hence exchange or trade laid the foundation of marketing and is the corner stone of marketing. This is clearly shown by the following orientation stages; THE PRODUCTION ORIENTATION STAGE. Here, the production process was a simple one with the main emphasis laid on production, which was believed to be in short supply, and the economy was characterized  by shortages little or no attention was devoted to marketing and production processes were very local ie within neighbouring areas the function of a sales department in an organization was simply to sell the copanys output at a price(this was a period of up to 1930.) SALES ORIENTATION STAGE. At this stage the small producers began to manufacturer their goods in larger quantities in anticipation of future orders further division of labour occurred and a type of business developed to help sell the increased output ie intermediaries/middlemen.to facilitate communication and buying and selling, the various interested parties tended to settle near each other hence the formation of trading centers the main idea at this stage was to sell whatever was produced and this called for heavy/substantial promotional effort to be expended unfortunately, this was the period that the concepts of selling acquired its bad reputation(this was the age of hard selling ie the period up to 1950). MARKETING ORIENTATION STAGE. Modern marketing was born with the industrial revolution where there was growth of urban centers and declining rural population resulting in rural-urban migration. The emphasis here was on the growth of manufacturing enterprises because the market demand exceeded the available supply (demand greater than supply)but this has changed and supply has now exceeded demand shifting the emphasis from production to marketing. The marketers must now embrace the concept of integrated/coordinated marketing management,directed towards the twin goal of customer-orientation and profitable sales volume.emphasis here is on marketing rather than selling.but,how well the companies have embraced the marketing is still questionable. SOCIAL RESPONSIBILITY AND HUMAN ORIENTATION STAGE. The conditions of the 1970s led to this fourth stage, which was characterized by the concern for the society the emphasis here is on social responsibility on the part of the marketers for their survival in the industries marketers must therefore be concerned with creating and delivering a better quality of life rather than only a material standard of living. The rise in social responsibility as a concept for business was highly influenced by the rise in consumerism movement. CONCEPTS OF MARKETING/MARKETING PHILOSOPHIES/MARKETING PRINCIPLES. Marketing concept-this refers to the ways of business thinking that have evolved over time and they include; Production concept-this is the oldest philosophy that has guided the sellers.it can be traced to the industrial revolution. Organizations produced in large quantities the belief being that consumers will favor products that are either available or were affordable. Manufacturers therefore focused on improving production and distribution efficiency. This philosophy is applicable when the following conditions exists. When demand for a product exceeds the supply. When the price of a product is too high and can only be brought down with increased productivity. Product concept-this was a belief system adopted by business men before 1920.the belief was that consumers will favour products that offer the most quality(design ) performance and features to them. If u design a product in a way that looks attractive,consumers will have to buy the product. Selling and sales concept/”hard sell”. this belief was developed between 1925-1950 and was commonly referred to as hard sell concept(companies using adverts to become the best ie out do the others)and it prescribes that consumers will not buy enough of organisations products unless it undertakes a lot of selling and promotional effort organisations must therefore advertise their products and employ sales persons to communicate with consumers with the aim of convincing them to buy the products this theory is applicable for unsought goods i.e insurance, microwave etc.ie it aims at informing, communicating and promoting a companys product. Marketing concept.-this is a business philosophy that was adopted after 1950 and the philosophy holds that achievement of business goals depends on determining the needs of customers  and delivering the desired level of satisfaction to consumers more effectively and efficiently than the competitors the marketing concept stands on the following pillars/highlights/considerations. Market focus/targeting-the firm must concentrate on one or a few key segments of the market and satisfy their needs.ie marketers usualy target the innovators as opposed to laggards in a market. Customer orientation-the firm must carefully define customer needs from the customers point of view this is important because a satisfied customer: Will buy the product again. Will talk favourably to others about the firms product. Will pay less attention to competing brands in the market. Is likely to buy other products that the company may add to its line. integrated marketing-this means that the various marketing functions must pull together inorder to satisfy the customer e.g. well trained and motivated employees, good and efficient suppliers e.t.c. profitability-the job of a marketer is to satisfy consumer needs at a profit.

IMPORTANCE/ROLES  OF MARKETING TO THE SOCIETY TODAY Creates utility-this is the ability to satisfy a need ie form utility-this occurs mainly when we have a change in state place utility-this mainly occurs in transportation time utility-this arises in all retail outlets and poscession utility-arises when we have ownership of  goods. Employment creation-this arises when one gets task of designing bill boards, website designers, retailers, wholesalers, warehousing, communications as well as doctors and lawyers indirectly a good example is in the  united states where between ¼ and 1/3 of civilian labour force is engaged in marketing activities and projections indicate that future employment in marketing will remain strong. Creates revenue to the government due to the taxes that are levied to the marketers. Earns a country foreign exchange mainly through international marketing. Entertains consumers e.g. some tv adverts. Consumers get informed about products that are prevailing in the markets-people are able to consume what they would not have consumed as there is accessibility to products due to cross-border trade, international trade etc. Widens the markets-this is mainly through advertisements, sales promotion and distribution.it is also through marketing that goods and services find their way into the trading blocks thereby increasing sales e.g. PTA.COMESA and European markets. Helps to develop brand loyalty-this arises due to the repeat purchase by existing customers and favourable accommodators by existing customers to friends, neighbours and others. Helps to introduce new products in the market therefore raising the standard of living for most people e.g. shopping at internet It generates consumers enthusiasim (become interested in something eagerly) for goods and services. Has a strong impact on beleifs and lifestyles of people-marketers are criticized as developing materialistic attitudes . Helps to improve the quality of life as well as preservation of the environment- marketers encourage firms to make safer products ie low-tar cigarettes, create public messages on energy conservation, cure disaeses (e.g. usage of Dettol),driver safety ie don’t drink and drive, abuse alcohol and other topics. MARKETING /SALES MANAGERS  FUNCTIONS/TASKS/ROLES Environmental analysis and  marketing research-this usually involves monitoring and adapting to external factors that affect successs or failure such as the economy and competition and  collecting data to resolve specific marketing issues. Broadening  an organizations/individuals scope-this involves deciding on the emphasis to place as well as the approach to take on societal issues and international marketing. Consumer analysis-this involves examining and evaluating consumer characteristic needs and purchase processes; and selecting the group(s) of consumers at which to aim marketing efforts. Product planning-this includes goods, services, organisations, people, places, and ideas-developing and maintaining products, product assortments(a set o  all products and items that a particular seller offers for sale to buyers),product images, brands, packaging and optional features and deleting faltering products. Distribution planning-this involves forming relations with distribution intermediaries, physical distribution, inventory management, warehousing, transportation, the allocation of goods and services, wholesailing and retailing. Promotion planning-this involves communicating with customers, the general public and others through some form of advertising, public relations, personal seling and or sales promotion. Price planning-this involves determining price level and ranges, pricing techniques, terms of purchase, price adjustments and the use of price as a active or passive factor. Marketing management-this involve planning, implementing, and controlling the marketing program(stategy) and individual marketing functions; appraising the risks and benefits in decision making; and focusing on total quality. CHALLENGES  FACING TH EMARKETRS TODAY. Global economy. Changes in technology Income gap Environmental imperative and social responsibilities Aging population Later marriages More divorce Single and smaller families Emergence of distinct ethnic consumer groups. Proliferation of more varied lifestyles. Stringent government policies Poor infrastructure. Inadequate finances.

ONE NATURE AND SCOPE OF MARKETING;OVERVIEW OF MARKETING Marketing is the management process responsible for identifying, anticipating and satisfying consumer needs profitably. It is also the performance of business activities that direct the flow of goods and services from producer or seller to the consumer/buyer. It is also a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products of value with the others. Marketing management refers to the overall process of planning, implementing, controlling the marketing program (strategy) and individual marketing functions; appraising the risks and benefits in decision making and focusing on total quality. Sales/selling on the other hand is the transfer of ownership and possession of goods to the purchasers. APPLICATION AREAS OF MARKETING. Profit making enterprises. Government institutions Nonprofit making organizations. ELEMENTS/ENTITIES BEING MARKETED TODAY Goods-phones, shoes, soaps, detergents Services; hotel, hair dress Events-trade shows, world cup, valentine, Persons-rudisha, oliech winfrey. Places-city or state. Organisations-airtel, safcom, bidco, equity. Ideas-this is mainly encountered by many social marketers i.e.  don’t drive and drink. Experiences –e.g. a trip to Mount Kilimanjaro, lake turkana etc. Information-this is usually the knowledge created and disseminated by universities and colleges through teaching and publications mainly in media. Properties-mainly real estates as well as financial instruments. RELATIONSHIP BETWEEN SALES AND MARKETING. Sales and marketing always have had a close relationship, so close that many people have confused the two being the same. Marketing is a method of bringing customers to a business as well as making others aware of the business product and brand. Sales is selling the product the company offers.it can be achieved through phone, interaction as well as web page. 2.Marketing sells the idea of product and services to everyone whereas sales sells the actual product one on one through personal interaction. 3.Marketing generates interest but sales brings in money. 4.Marketing does everything it can to reach and persuade prospective buyers while sales does everything it can to close the sale and get assigned an agreement/contract. 5.Marketing responsibility is selling the idea while selling has a responsibility of selling the product and can be achieved through sales making. Selling is only a part of firm marketing activities and refers to personal communication of information to persuade a prospective buyer to buy something. 7.Marketing refers to the process of planning, exchanging, the process, concept/idea, pricing, promotion and distribution of goods and services and ideas to satisfy companies or individuals sales excludes all this. 8.Marketing has led to the emergence of marketing concepts(philosophies that aim at satisfying customer needs) while selling has led to the emergence of selling concepts(a philosophy that encourage organizations to undertake a large scale selling promotion effect. 9.Sales people usually sells to customers the products while the marketing meets  the organization with customers, the major objectives of sales department is responsible for activities like promotion, marketing ignores all this. CORE MARKETING CONCEPTS. Need-this is a state of felt deprivation most of which is inborn and many can not do without eg need for food,shelter and clothing. Want –they are specific satisfaction for particular needs and are insatiable ie one can never fully satisfy them. Exchange-this is the act of obtaining a desired product from someone by offering something else in return. Product-this is anything that can be offered to someone to satisfy a need or want and can be a good/services(doctors,hair cut),tangible or intangible. Demand-This are human wants that are backed by the purchasing power of an individual. Customer value-this is the difference between the value the customer gains from owning and using a product and the cost of obtaining the product. Customer Satisfaction – this depends on the customers perceived performance in delivering value relative to the buyers expectation.  Quality-customer satisfaction is closely linked to quality of products and services.many marketers have now adopted Total Quality Management programmes assigned to constantly improve the quality of their offers and marketing processes.TQM can narrowly be defined as freedom from defects. Exchange-this is the act of obtaining a desired object from someone by offering something in return. Transaction and relationships-this are created mainly through satisfaction of consumers needs and wants. Market-the concept of exchange and relationships led to the concept of a market these buyers share a particular need or want that can be satisfied through exchange relationships.

EMERGING TRENDS AND ISSUES IN MARKETING MANAGEMENT Use of advanced technolog1y-computers;ict advancement Emergence of customer care services department to handle financial matters only. Tele marketing. Globalization-this is a process whereby different systems and parts of a related trade, function as a closely-knit system at the international level. Communication and transport have vastly improved and affects many aspects of marketing from competition policy to monetary policy and agricultural policy. Mergers and joint ventures of institutions so as to increase the institutions capital base. HIV aids and drug abuse menace. Pollution Corruption . Tight budget and allocating, spending and measuring of ROI is a running battle in marketing departments. Social media grow up. Games-marketers already have been adding games to their sites and doing product placement deals with sites and doing product placement deals with sites and using games to more customers along the decision making path they are shaping their websites with questions, tasks and rewards designed to keep customers engaged with all kinds of brands, from insurance to cars. Bar codes-recent adoption including snap tags including brand logo with most of smart phones now capable of scanning the codes, and advertisers are using them to link in store shoppers to manufacturers website or connect to a nearest store. Tv talks-interactive tv advertising by use of satellite and cable companies fitted with set-top boxes. Digital wallet-electronic payment and couponing systems with electronic payment systems coming up e.g. mpesa,airtel money and equitel. Intrapreneurialism grows-being highly agile and flexible. Metrics mature-this is the ability to measure every click ,tweet and page view and is both a blessing and a curse and is used to gage a companys performance. Emergence of consumerism movements-this is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers Emergence of environmentalism movement-this is an organized movement of concerned citizens and government agencies to protect and improve peoples current and future living environment. Cloud computing. Adoption of new marketing strategies e.g. e-marketing to search for more customers. Competitors coming up with new improved product. New government polices i.e. media bill. Emergence of fraudsters producing counter fake products. Changing customer basis and needs. Emergence of new product life cycle stages ie fads ,fashions and style products. CHALLENGES POSED BY THIS TRENDS. Some trends and issues require more resources inorder to meet the new trends and issues e.g. more funding. Government policy which might really affect the new trend/issue. New/more competitors coming into market. Changing market needs and wants. Coverage of wide market area-due to globalization aspect. Changing the approach to get more customers or maintain the existing ones. WAYS OF COPING UP WITH CHALLENGES. Adopting new marketing strategies. Employing more resources in marketing teams. Coming up with legal measure to deal with fraudsters. Reaching a wide market to stay relevant. Coming up with model or design that would move customers. Using update technology to reach wide markets to make the market efficient.

DIRECT MARKETING This are direct communications with carefully  targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships the new direct marketing models include: advances in direct marketing include emergence of catalog companies, direct mailers and telemarketers. BENEFITS  AND GROWTH OF DIRECT MARKETING BENEFITS TO BUYERS; Easier to know the current models in the market as per ones needs Convenient Wealth of comparative information is allowed. Interaction and immediate feedback is possible Privacy is enhanced. Enhances greater product access and selection. BENEFITS TO SELLERS; It is a tool for customer relationship buildings ,better targeting and customerization It can be timed to reach prospects at just right moment. Higher readership and response is enhanced. There are numerous internet and online benefits which one enjoys ranging from, Reduce costs and increased speed and efficiency. Avoids expenses of rent,insurance utilities(owning a store). Improve efficiency of channel and logistic functions. Costs less than communicating on paper through the mail Greater flexibility is enhanced in terms of production quotas and the needs of customers. It is usually a global medium-ie across all nations. CUSTOMER DATABASE AND DIRECT MARKETING Customer database-this is  an organized collection of comprehensive data about individual customers or prospects including geographic,demographic,psychographic and behavioural data. Database marketing-this is the process of building and maintaining customers data for the purpose of contacting and transacting with the customers.it is commonly used in  B2B  and service retailing(hotels,banks and airlines). It makes use of a customers mailing list – a set of names,addresses,telephone numbers etc and customer database-contains much more information e.g. past purchases,personal information,family information etc. The database kept by the firm assists in, Identifying the prospects. Deciding which customer should receive a particular offer. Deepening customer loyalty(ie information, gifts etc). Reactivating customer purchases(knowledge of past purchase is kept, certificates and promotion. FORMS OF DIRECT MARKETING. Face to face selling. Tele marketing-using phones to sell directly to customers. Direct mail-letters, ads, samples, fold outs are used the media used here include; voice mail, email, fax mail and physical mail. Catalog marketing-this is mainly through print, video or electronic catalogs. Direct response television marketing-this is direct marketing via television, including direct response television advertising or  commercial home shopping channels. Kiosk marketing- refers to information and ordering machines placed in stores and airports.it is different from vending machines because a kiosk  does not dispense the actual product. Internet/online marketing-this is marketing conducted through interactive online computer systems which link consumers with sellers electronically ie internet and commercial online services. TOPIC NINE SERVICE MARKETING. Service refers to any act/performance that one party offers to another that is essentially intangible and does not result in the ownership of anything. SPECIAL CHARACTERISTICS OF SERVICES. Intangibility-services can not be seen, tasted, felt, heard or smelt. Inseparability-services are produced and consumed simultaneously. Heterogeneity(heterogeneous)-services are variable since they depend on the provider. Perishability-services can not be stored e.g. medical care. Ownership-services do not result in ownership of anything.   CHARACTERISTICS OF GOOD SERVICE QUALITY. Should have support services ie it should augment the actual product. Should be well labelled. Should be well packaged. Should have a brand that identifies it with the maker. SERVICE CONCEPT. This  is based on the idea that actual service offering can be broken down into a number of levels relating to customer need satisfaction, benefits and features. Three levels can be identified. Core benefit service-This relates specifically to the customers needs. The core benefit satisfies the need or solves the problem. Expected service-this relates to customers’ expectations of what kinds of services are available to satisfy their need. The expected service reflects standards required or expected by customers to satisfy their needs.eg in a bank one expects that polite language is used, professional knowledge is applied by the staff etc. Augmented service-this means making the service better in some way and it is the means by which service providers differentiate their offering in an attempt to influence customer choice. Extra features over and above the expected service can be added to make the service more attractive to prospective customers. Innovation is the key to make a service stand out from the competition.eg in the banking sector, we have the corporate section where we have corporate customers who are usually served differently according to class. ELEMENTS OF THE SERVICE MIX. Service-this involves superior quality, a well known and trusted brand image, unique features and extended guarantees. Price-involves added value, special discounts and preferential credit terms(free for a new customer brought). Promotion-this involves innovative advertising campgains, loyalty promotions(points) added, special offer,public relations e.g. sponsorship e.g K.CB in terms of safari rally, safaricom, equity etc. Place-This involves extensive availability(in many parts g. equity bank),innovative methods e.g. telephone banking, agents and careful selection of quality channels(mpesa). People-This involves highly trained staff, better customer care, greater efficiency, personal attention and specialized skills. Process-This involves advanced technology e.g. for counting money, efficiency systems e.g. introduction of ATMs to avoid queing in banks and fast response Physical evidence-This involves comfortable surrounding,superior décor(decoration) e.g. for wedding organisers they gather in hotels,schools,banks.Qualifications and evidence of professional standing(e.g. certificates being placed on walls) and a strong recognizable corporate image(similar uniform) and supporting documentation. WAYS OF DEVELOPING BRAND STRATEGIES FOR SERVICES Line extension(existing brand, existing service category)-this is using a successful brand name to introduce additional items in a given service category under the same brand name such as new flavours, forms, colours, added ingredients as well as different packaging sizes in respect to a product. Brand extension(existing brand, new service category)-using a successful brand name to launch a new service in a new category. Multibrands-(new brand, existing product category) ie offering new band in same category. New brands-(new brand, new service category) may be appropriate if none of the existing brands is appropriate for a new service entering new market. Mega brand strategies-this focuses on marketing dollars only in brand that can achieve number one or number two market share in their categories.