Marketing Principles & Organizational Behavior
Course Overview
These notes integrate two core business disciplines:
Marketing Principles: Focuses on creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.
Organizational Behavior (OB): Focuses on the systematic study and application of
knowledge about how individuals and groups act within the organizations where they work.
The synergy between these fields is critical: Marketing delivers external value (to customers), while
OB builds the internal capability (the organization, people, and culture) to create and deliver that
value sustainably.
PART 1: MARKETING PRINCIPLES
1.1 The Core Concept: The Marketing Mix (The 4 Ps)
The marketing mix is the foundational tactical toolkit for achieving marketing objectives. It
represents the set of controllable, tactical marketing tools that a firm blends to produce the
response it wants from its target market.
1.1.1 Product
The product is anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need.
Three Levels of Product:
Level Description Example (iPhone)
The fundamental benefit the customer
Core Product Mobile communication, app ecosystem,
receives
Actual Product Tangible features, design, branding, packaging Hardware, iOS, minimalist design, Apple
Augmented AppleCare+, iCloud, Genius Bar support,
Additional services and benefits
Product warranty
Product Life Cycle (PLC):
Products progress through four distinct stages, each requiring different marketing strategies:
,Stage Characteristics Marketing Strategy
Low sales, negative or low profits, few Build awareness and trial; invest heavily in prom
Introduction
competitors selective distribution
Rapidly rising sales, rising profits, increasing Maximize market share; improve product; expan
Growth
competition distribution
Peak sales, stable or declining profits, Defend market share; extend product life; differe
Maturity
intense competition from competitors
Decline Declining sales and profits, competitors exit Harvest (reduce investment) or divest (discontinu
1.1.2 Price
Price is the amount of money charged for a product or service. It is the only element in the
marketing mix that produces revenue; all others represent costs.
Major Pricing Strategies:
Strategy Definition Example
Construction contractors: cost of mater
Cost-Plus Pricing Adding a standard markup to product cost
20%
Setting price based on perceived customer
Value-Based Pricing Rolex watches, luxury handbags
value
Penetration Pricing Low initial price to gain rapid market share Netflix initial $7.99/month subscription
Price Skimming High initial price for innovators, then lowering New iPhone releases, gaming consoles
Psychological
Setting price to influence perception $9.99 instead of $10.00
Pricing
1.1.3 Place (Distribution)
Place involves activities that make the product available to target consumers.
Distribution Channel Types:
, Channel Type Structure Example
Tesla selling directly via company-owned
Direct (D2C) Producer → Consumer
showrooms
Indirect Producer → Retailer → Consumer Most consumer goods sold through retaile
Complex Producer → Wholesaler → Retailer →
Coca-Cola distributed through wholesalers
Indirect Consumer
Distribution Intensity Strategies:
Intensity Definition Example
Intensive Placing products in as many outlets as possible Soft drinks, snacks
Selective Using a limited number of outlets Electronics, mid-range apparel
Exclusive Using only one or a few outlets in a region Luxury cars, high-end designer goods
Omnichannel Distribution: A seamless customer experience across all channels (online, mobile,
physical store) where each channel works together rather than in silos.
1.1.4 Promotion
Promotion encompasses all activities that communicate the merits of the product and persuade
target customers to buy it.
The Promotional Mix:
Element Definition Examples
Any paid form of non-personal
Advertising TV commercials, billboards, social media ads, print
presentation
Building good relations with various Press releases, sponsorships, crisis management, th
Public Relations
publics leadership
Sales Short-term incentives to encourage
Coupons, discounts, contests, samples, loyalty prog
Promotion purchase
Personal Selling Personal interaction with customers Sales presentations, trade shows, account managem
Course Overview
These notes integrate two core business disciplines:
Marketing Principles: Focuses on creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.
Organizational Behavior (OB): Focuses on the systematic study and application of
knowledge about how individuals and groups act within the organizations where they work.
The synergy between these fields is critical: Marketing delivers external value (to customers), while
OB builds the internal capability (the organization, people, and culture) to create and deliver that
value sustainably.
PART 1: MARKETING PRINCIPLES
1.1 The Core Concept: The Marketing Mix (The 4 Ps)
The marketing mix is the foundational tactical toolkit for achieving marketing objectives. It
represents the set of controllable, tactical marketing tools that a firm blends to produce the
response it wants from its target market.
1.1.1 Product
The product is anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need.
Three Levels of Product:
Level Description Example (iPhone)
The fundamental benefit the customer
Core Product Mobile communication, app ecosystem,
receives
Actual Product Tangible features, design, branding, packaging Hardware, iOS, minimalist design, Apple
Augmented AppleCare+, iCloud, Genius Bar support,
Additional services and benefits
Product warranty
Product Life Cycle (PLC):
Products progress through four distinct stages, each requiring different marketing strategies:
,Stage Characteristics Marketing Strategy
Low sales, negative or low profits, few Build awareness and trial; invest heavily in prom
Introduction
competitors selective distribution
Rapidly rising sales, rising profits, increasing Maximize market share; improve product; expan
Growth
competition distribution
Peak sales, stable or declining profits, Defend market share; extend product life; differe
Maturity
intense competition from competitors
Decline Declining sales and profits, competitors exit Harvest (reduce investment) or divest (discontinu
1.1.2 Price
Price is the amount of money charged for a product or service. It is the only element in the
marketing mix that produces revenue; all others represent costs.
Major Pricing Strategies:
Strategy Definition Example
Construction contractors: cost of mater
Cost-Plus Pricing Adding a standard markup to product cost
20%
Setting price based on perceived customer
Value-Based Pricing Rolex watches, luxury handbags
value
Penetration Pricing Low initial price to gain rapid market share Netflix initial $7.99/month subscription
Price Skimming High initial price for innovators, then lowering New iPhone releases, gaming consoles
Psychological
Setting price to influence perception $9.99 instead of $10.00
Pricing
1.1.3 Place (Distribution)
Place involves activities that make the product available to target consumers.
Distribution Channel Types:
, Channel Type Structure Example
Tesla selling directly via company-owned
Direct (D2C) Producer → Consumer
showrooms
Indirect Producer → Retailer → Consumer Most consumer goods sold through retaile
Complex Producer → Wholesaler → Retailer →
Coca-Cola distributed through wholesalers
Indirect Consumer
Distribution Intensity Strategies:
Intensity Definition Example
Intensive Placing products in as many outlets as possible Soft drinks, snacks
Selective Using a limited number of outlets Electronics, mid-range apparel
Exclusive Using only one or a few outlets in a region Luxury cars, high-end designer goods
Omnichannel Distribution: A seamless customer experience across all channels (online, mobile,
physical store) where each channel works together rather than in silos.
1.1.4 Promotion
Promotion encompasses all activities that communicate the merits of the product and persuade
target customers to buy it.
The Promotional Mix:
Element Definition Examples
Any paid form of non-personal
Advertising TV commercials, billboards, social media ads, print
presentation
Building good relations with various Press releases, sponsorships, crisis management, th
Public Relations
publics leadership
Sales Short-term incentives to encourage
Coupons, discounts, contests, samples, loyalty prog
Promotion purchase
Personal Selling Personal interaction with customers Sales presentations, trade shows, account managem
