Marketing exam
Chapter1
Marketing definition
It is the process by which companies create value for customers and build strong customer relationships to capture
value from customers in return
Market
Set of current and potential buyers having needs, wants, and demands.
Value proposition/ Offer
set of benefits or values a company promises to deliver to customers to satisfy their needs
it is through market mix:
 Product
 Price
 Place
 Promotion: advertising, selling, publicity
Exchange is obtaining a desired object from someone by offering something in return
It happens when buyer is convinced of offer
Relationship is actions to build and maintain desirable relationships
Differences between marketing and related activities
Marketing is umbrella of other activities
Marketing orientations: 5 types
 Production concept:
mass output regardless of market demands. It is useful at monopoly, after wars or highest demand as bread,
electricity and gas.
Examples: Egypt textiles, Nasr Cars and military factories

Product concept:
quality, design and performance to attract buyer. technical aspect by Engineer
there is no marketing effort.
Examples: Swiss watches, England motorcycles

Selling concept: large sales effort to convince of quality (hard sell).
It uses direct marketing, telesales and tele-marketing
Quality product with little care of customer demand.
It focuses on creating sales transaction rather than building long term customer relationships.
Examples: Time Share, home appliances, telemarketing, credit cards

Market concept: taste and fashion. customer-driven. quality and taste. Customer is the inspirer
know the needs and wants of the target markets and deliver desired satisfactions better than competitors do
coordination with production, purchasing, selling, customer service
achieve long term customer satisfaction hence long term profit
Examples: DHL, MS, Mc

Societal concept
As marketing beside considering long term society interests.
It keeps balance between 3c's, company, consumer, and community
Example: avoid pollution as paper instead of plastic packages
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Application: 3
*3. The following is a number of activities which are related to the marketing mix.
Read each activity
carefully, and then determine the marketing mix element to which it pertains.
a.
Selling three pieces of toilet soap at the price of two.
Sales Promotion (Promotion)
b. Sending a qualified marketer to a university to persuade its decision markers to buy computers
produced by his company.
Personal Selling (Promotion)
c.
Redesigning a refrigerator in order to consume less electricity.
Quality (Product)
d. Home-delivery of dairy products.
Service (Product: Augmented)
e.
A grocery store opens 24 hours/day.
Distribution (Place)
Case: Arab Organization
Production then Product then Selling
The Arab Organization for Industrialization*
The Arab Organization for Industrialization (AOI) was established in Egypt in the mid 1970's by four Arab
countries (Egypt, U.A.E., Kingdom of Saudi Arabia and Quarter). Its main objective has been to satisfy the
Arab Countries’ needs and seek their common interests. AOI includes a number of factories which primarily
manufacture military products as well as a very limited number of civil products at a small scale.
AOI’s performance was excellent until the late 1970's, when the demand for its military products sharply
declined. As a result, the organization’s management has concluded that it has to expand its civil products.
Otherwise, the rate of utilization of its factories production capacity as well as other resources available
would be too low, causing its costs to go up, and its profits to go down.
The organization has started to manufacture civil products such as: television sets, gas cylinders, plastic
products, and office and home furniture. AOI's concern was what its factories could produce of these
products at a high quality level by which it is known.
As a result of the nature and characteristics of the labor force (highly skilled) as well as the machines and
equipment (more expensive than equivalent equipment used by similar businesses) used by AOI in military
products, its production costs have been higher than other competing industrial companies. Consequently,
its prices are always higher than its competitors’ prices. This has caused AOI to face difficulties in marketing
its products despite the fact that their quality is much higher than the quality of the competing products
and AOI’s good reputation that is very well known.
The AOI marketing people have been trying hard to persuade customers to buy their factories’ products
emphasizing such factors as: AOI’s quality, product features, and minor price reductions. However, the
results of such efforts have not been as desired.
Marketing people made extraordinary effort to persuade AOI’s personnel who are in charge of setting the
prices of the organization’s products, to change the pricing method used, which was basically a total cost
*
The data included in this case concerning civil products were valid for a relatively long period of time
since the early 1980's. However, recently, several changes have been made in this area and the
situation has been improving.
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plus a profit margin. Changing from the total-cost plus pricing method to another method would result in
more flexibility in pricing the organization’s products. However, this was impossible, since the cost
accounting system could not be changed and, as a result, the pricing method could not be changed either.
Marketing people were blamed for not being able to sell AOI’s products. They were told by other
non-marketing personnel that a good marketer can sell anything to customers in the market. In contrast,
marketing people complained that what was done by other non-marketing personnel and departments led
to complications in their marketing tasks.
The end result was that AOI did not succeed in marketing most of its civil products. This negatively
affected its revenues and profits. The organization’s capacity utilization rate was low, and there was an
excessive inventory of some products.
Questions for Discussion:
1- What was (were) the orientation(s) / philosophy (ies) of AOI? What indicators can be used to identify
such an orientation(s) /philosophy (ies) in the case?
Production / Product / Selling
2- In your opinion, what should AOI do in order to successfully market its products?
Cost-plus to market-based pricing method
Questions:
 Scope of marketing: definition & aspects
 Market orientations
 Market mix components
Chapter7
Marketing Segmentation
What is target segment and how to design plan for it?
What / Definition
It is to divide a whole market to smaller markets to serve each one with different marketing mix
Why / Purpose
 exploit emerging opportunities in the market place as organic food and ready food
 achieve better allocation of resources to get better profit
 differentiate in the market place
 improve company image and reputation
 prepare effective market plan
how / Methods
According to purchase behavior factor:

geographic
different zones as counties, regions, …..
example:
o multinational companies as for drugs and cars: make gulf specifications for Toyota cars
o cloth shops

demographic
different groups according to human aspects as gender, age, religion, income, occupation, education

psychographic
social class
life style: Pepsi generation, fast food, residential compounds
personality traits: adventurers, achievers, religious
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
behavioral
knowledge, attitudes, usage rate, occasions as Ramadan
application: 1 page 204
sports cars:
Product
geographic demographic
Sports cars
Income
soft drinks
Age
personal computers
Occupation, education
fast food
Countries
Income
Mobiles
Income
visa card
Income
psychographic Behavioral
Life style
Life style
Benefit
Life style
Life style
Q
basis of segmentation:
does the company use the proper way for segmentation or not?
Chapter8
Product definition
anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or
want
product types
1- physical
2- intangible: service
3- place: as for tourism
4- idea
5- experience
6- information
7- people: foot players
8- property
9- events
10- organizations
Levels of Product and Services
 Core benefits represent what the buyer is really buying: water for drink, washer for washing, cinema for films.
It is not useful for marketing as all instances provide the same benefit
 Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer
Specification used in comparison between providers.
Example: car safety, fuel economy, price
 Augmented product represents additional services or benefits of the actual product
Example: car guarantee, washing
Consumer products are products and services for personal consumption. Classified by how consumers buy them
• Convenience product
customer usually buys frequently, immediately, and with a minimum comparison and buying effort as Newspapers,
Candy, Fast food
•
Shopping products
customer compares carefully on suitability, quality, price, and style as Furniture, Cars, Appliances
•
Specialty products
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with unique characteristics or brand identification for which a significant group of buyers is willing to make a special
purchase effort as Medical services, Designer clothes, High-end electronics
•
Unsought products
consumer does not know about or knows about but does not normally think of buying as Life insurance, Funeral
services, Blood donations
Product and Service Classifications
Convenience
Effort
Limited
Price
Low
Turnover
High
Margin
Low
Advertising Mass Advertising
Distribution Intensive
Shopping
Relatively high
Relatively high
Average
Relatively high
Personal selling
Selective
Specialty
Very high
Very high
Very high
Very high
Direct marketing
Exclusive
Q
Product levels
Types of consumer products
Application: 4
*4.
The following is a number of consumer products. Indicate to which product category
(convenience-shopping- specialty and unsought products) each of these products belongs, and
why?
a. Insurance against fire.
-Un Sought (Un willing to buy)
b. Milk
d. Cars
-Shopping (Competition)
e. Expensive and famous sports-ware
-convenience: Price low - Effect less- Turn over high
-Margin Intensive – Distribution high
-Promotion advertising
c. Newspapers (Convenience)
-Specialty (used by high income segment)
-Turn over high - margin exclusive- price high
-effect high
- Distribution -Promotion
f. Soft drinks (Convenience)
-Price low - Effect less- Turn over high
-Price low - Effect less- Turn over high
-Margin Intensive – Distribution high
-Margin Intensive – Distribution high
-Promotion advertising
-Promotion advertising
Case: The Generic Products*
In the late 1970's, a new type of consumer products was marketed in a number of states in U.S.A., one of
which was Arizona. These products were referred to as generic/ unbranded products.
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The generic/unbranded products include such consumer goods like canned food products (e.g., beans,
tomato sauce, tuna fish, jams and preservatives) as well as other consumer products like macaroni and rice.
The prices of such products were much less than the prices of similar branded products (whether
distributor’s or manufacturer’s brands). They were sold at an average price which was lower by more than
35% of the price of the branded products. These products met the minimum requirements set by the law
and various concerned agencies (e.g., the Federal Trade Commission of U.S.A.), most of which were even
produced by well-known companies. However, for some products, the generic product was not exactly
similar to the product that has a brand in quality or specifications. Therefore, their manufacturers’ costs
were lower than similar branded products, whether produced by the same manufacturer (of both generic
and branded products) or produced by other manufacturers who produced only branded products.
In addition, since the promotional expenses of these products were minimal, advertised primarily on
newspapers as a group of products rather than advertising each product, their marketing costs were less
than similar branded products.
To make these products easy to locate by consumers at the supermarkets, most supermarkets allocated a
certain place where all these products were displayed in an attractive way.
A pilot study was conducted to determine the reasons these products were not bought by a certain
segment of consumers. The data collected revealed that these reasons were related to such variables like
taste, which was not as good as the branded products, quality and features.
To measure whether consumers were able to differentiate between generic food products and similar
brands of food products, a field experiment was conducted at one of Fry’s supermarket stores in the
Tempe-Phoenix area of Arizona. It utilized peanut butter, as one of the popular food products sold in
grocery stores and a representative sample of female consumers in the supermarket.
The experiment was basically a blind-folded taste test of three samples of three different peanut butters.
The samples were: generic/unbranded, distributor’s (own/ private) brand, and a national brand peanut
butter. Before asking the subject to taste, a short questionnaire was used to collect data about the subject,
including, her preferred type of peanut butter that she bought, reasons for that, as well as some personal
data. Most subjects tended to prefer, buy and use the national peanut butter brand for such reasons as
better taste, features and quality, compared to other products (generic or other non-national brands).
Then, every subject was asked to taste each of the three samples of peanut butter. The three samples were
randomly rotated every time a new subject was about to taste the peanut butter. The subject was asked to
take a sip of a neutral soft drink between tasting one sample and tasting the second one in order to remove
the effect of the taste of one sample on the other.
After tasting the three samples of peanut butters, the subject was asked to indicate which one tasted
better. Surprisingly, the peanut butter chosen by most subjects as the one that tasted best was the
generic/unbranded product. When the subjects were told that the product chosen and preferred was the
generic product, they were astonished and could not believe it. They indicated that they would switch form
their usual brands to it, since it tasted better and the price was much lower than other products’.
At the end of the experiment and after collecting the required data, the subjects were thanked by the
researchers for their participation in the experiment. To show that the researchers appreciated the
subjects’ participation, they were taken to a corner where jars of the three types of peanut butter were
available, and they were told that they could choose any jar and take it as a gift. Almost all the subjects
chose the national brand to take as a gift.
Questions for Discussion
1. How can you evaluate the generic/unbranded products from a marketing viewpoint?
As a marketer point of view my evaluation is the generic products attract the market segment by a generic
offer with low prices, That prices of such products were much less than the prices of similar branded
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products (whether distributor’s or manufacturer’s brands). They were sold at an average price which was
lower by more than 35% of the price of the branded products)
2.
3.
What are the conclusions which can be reached based on the experiment conducted and the data
collected before and after collecting them?

Before setting strategy you should study the market

You cannot satisfy all needs by one product

Branded products are psychologically influencing a great market segment, because in spite of the
low price and good taste of the generic products they preferred to have the brand product as a gift
cause they used to buy it, as they satisfy their needs.

Brand gives Easy selection, quality guarantee, strong advertising, brand associations
Do you expect that this type of products- the generic/unbranded products - would succeed in your
country’s market and why?
-Yes these products will succeed in my country market because the un branded products will serve the major
segment of our consumers because the generic products specifications are low price and a good quality.
Chapter10
Pricing definition
It is the amount of money charged for a product or service.
It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service.
It is the only element in the marketing mix that produces revenue; all other elements represent costs
Pricing Importance
It is dynamic to change
It defends against fake product for trade marks
Pricing methods / approaches (Pricing Ways ):1) Cost – based price
approach)
2) Market – based price
approach)
Cost + Margin = Price --- Cost plus (production oriented
Price – Cost = Profit --- Market based (Market oriented
(The price that can be accepted by the market – Cost = Profit )
3) Competition – based price
Price >=< Major competitors
Differences : ---- Location , Price , Image , Style
4) Value – based price
Price = Perceived value --(Pure market)
Pricing Methods
Cost-based pricing
involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for
its effort and risk
Price = total cost + profit margin
Market-based
It considers market as competitors
Price – cost = profit
Sugar and cement co
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Competitor-based
As mobile co, fast food, ready foods
It prevents price wars
Value-based
Price = Perceived value
For brands: cars, mobiles,
New product pricing
Skimming
Unique product - High income segment - Inelastic demand
Penetration
Start with low then gets high
New-Product Pricing Strategies
Pricing Strategies
Market skimming pricing
Is a strategy with high initial prices to “skim” revenue layers from the market .
• Product quality and image must support the price
• Buyers must want the product at the price
• Costs of producing the product in small volume should not cancel the advantage
of higher prices
• Competitors should not be able to enter the market easily
Setting high prices, then decrease conditions (eg. Nokia ,Microsoft)

Existence ‫ وجود‬of market segments can afford buying ‫تسطتيع الشراء‬


(Luxurious target market )
Differentiated product ‫منتج متميز‬
After absorbing target segment , decrease prices to absorb new segments .
Market penetration pricing ‫ التمكن من السوق‬، ‫ امتصاص‬، ‫اختراق‬
sets a low initial price in order to penetrate the market quickly and deeply to attract
a large number of buyers quickly to gain market share
• Price sensitive market
• Inverse relationship of production and distribution cost to sales growth
• Low prices must keep competition out of the market
) Setting low prices to attract very large no. of consumers & prevent potential
competition )
Conditions: * No elastic demand
* No differentiated products
eg. Chinese products , Etisalat , HP
When product is well established increase prices .
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nitial Price ‫السعر األولى‬
oduct ( R & D )
emand elasticity
cope of market ‫حجم السوق‬
end Price ‫اتجاه السعر‬
* When we have a new product *
Skimming Pricing
Penetration Pricing
High / very high
Low
Common/generic/less differentiated
Differentiated
Low
High
Small
Big
High to Low
Low to High
Q
Value based pricing
Value-based pricing
uses the buyers’ perceptions of value, not the seller’s cost, as the
Price is considered before the marketing program is set.
• Value-based pricing is customer driven
•
key to pricing.
Cost-based pricing is product driven
Value based price --- ( Price = Perception of value )
*Value-based --- buyers not seller’s perception )‫(تصور‬
* Customer perceptions of value set the upper limit for prices (value) , and costs set the
lower limit
* The price ceiling is determined by demand factor like price elasticity and price points .
* The price floor is determined by production factors like costs .
Value-based pricing
• Good-value pricing
• Value-added pricing
--- built in the product )‫(قيمة جيدة للتسعير‬
--- ( Delivery , guarantee ,etc..))‫(قيمة مضافة للتسعير‬
Good-value pricing offers the right combination of quality and good service to fair price
)‫(السعر العادل‬
Application: 2 page 334
A company is about to introduce a new product to the market. Its marketing research department provided
several data that might be used to make a decision concerning its price. These data are summarized as
follows :
a. Newness of the product : almost new
b. Target market : middle class consumers
c. R & D costs
: $ / K.D/... 1000,000
d. Likelihood of success (in market) : 0.75
e. Projected elasticity of demand : 0.80
f. Production and marketing costs : Moderate
Questions
Do you recommend to use market penetration pricing strategy or market skimming pricing strategy
? Why ?
Penetration
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Demand elasticity: high
Middle class (scope of marketing: big)
Budget research and development: low
Product moderate: common or generic
Case: shop and save
Shop & Save*
Shop & Save Company was established in Jordan more than ten years ago. The company owns and
runs a number of supermarkets located in several places in Jordan. The company entered and has been
known in the Jordanian market as a retailer which sells at the wholesale prices, where it prices the products
in which it deals through its supermarkets at a price level that is very close to the wholesale prices, but it
sells as a retailer to consumers.
The rationale for using this pricing method is that everybody knows that the wholesale prices are
somewhat less than retail prices. However, consumers cannot usually buy from a wholesaler for one reason
or another. Among these reasons are : the wholesaler’s policy which does not allow selling to ultimate
consumers since selling is only to retailers and/or the quantity which has to be bought in order to pay a
wholesale price is not suitable at all for consumers (e.g., buying a box of twenty margarine jars, 2.5 kg each,
which means that the box contains 50 kg of margarine).
The company was successful in the market because it used such a pricing method for several reasons
: (a) attracting a large number of consumers to deal with Shop & Save supermarkets, especially consumers
who are price-sensitive, (b) selling large quantities of products which leads to increasing sales revenues,
thus, the company can earn reasonable profits despite the fact that its profit margin is small since the large
volume of sales compensates the limited profit margin per unit of the product sold, (c) this pricing method
helps the company compete with other companies which deal in the same product assortments, but don’t
use that method, and (d) the company is perceived as a good citizen that is satisfied with a limited profit
and is socially responsible, which positively affects its image in the market.
However, about two years ago, the company’s marketing performance started to decline. That was
due to competition from other supermarkets, which entered the Jordanian market for the first time with
the same pricing method of the Shop and Save company or those which were already in the market but
started to use such a method, i.e., retailing at the wholesale price, along with providing consumers with
better services compared to the service usually offered by Shop & Save Company.
Mr. Nawaf, the company’s marketing manager, was upset about what was happening to the
company. He contacted some of his friends who work as marketing managers at similar companies outside
Jordan as well as recalling what he learned in marketing classes and training courses and what he observed
in the U.S.A. where he received his bachelor’s degree in marketing ten years before joining the Shop & Save
Company.
After going through all this, he reached a conclusion that there are two pricing alternatives which
can be put in action, either one of them or a combination of both. These alternatives are unit pricing and
less price group of products.
Unit pricing refers to stating the unit price of the product marketed aside from the package size. For
example, suppose that the company sells a washing-machine detergent in three different package sizes (5
kg., 3 kg. and 2 kg.). Using this method means that instead of stating the total price of the package, the unit
price in each package is stated too. Thus, instead of just stating the price as JD 10.00, JD 6.75 and JD 5.00 for
the 5 kg., 3 kg., and 2 kg. packages, respectively, it is stated also in terms of unit price in each package as JD
*
Shop & Save Company is a hypothetical case. However, some of the data included in the case reflect
real pricing practices by supermarkets in Arab countries (e.g., Egypt) or in foreign countries (e.g.,
U.S.A).
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2.00, JD 2.25, and JD 2.5 for the 5 kg., 3 kg., and 2 kg. packages, respectively. Consequently, the consumer
can easily compare the three packages in terms of price. Therefore, he/she can determine whether the
price difference between a certain package and a larger package (e.g., the price difference between a 3 kg.
package and 5 kg. package) justifies buying a larger package or not.
The less-price group of products method is used to prove that the supermarket prices are definitely
less than the prices of the competing supermarkets. When using such a method, the supermarket does not
just claim that its prices are lower than its competitors’, it also asks consumers to prove that and make sure
of it by themselves. According to this method, the supermarket in question asks the consumer to buy a
relatively small number of product items--about ten items--and calculate their total price paid then
compare that total price with the total price of the same number of items-ten items in this case-and the
same items (e.g., same product, brand, package,….etc.) bought from any other supermarket. When the
consumer does that, he/she would definitely find out that the total price of the first supermarket is less
than the total price of the second supermarket (i.e., the other competing supermarket).
This method could be successful in the price competition between the Shop & Save Company and its
competitors for reasons such as : (a) providing the proof or evidence of lower prices, whereas other
companies do not provide it, (b) the fact that the company appears decisive and quite sure of its lower
prices, and asking the consumer to make sure of that by himself/herself and suggesting an acceptable and
reasonable way to do that makes the consumer feel that the company’s prices are lower, and leads them to
trusting it which would positively be reflected on consumers who deal with it, and (c) many consumers
might not try what the company asks them to do. Thus, the likelihood of making the comparison and
reaching a conclusion which contradicts what the company claims becomes very small. Such consumers
would conclude without making the comparison that unless the company is quite sure of itself in this
respect, it wouldn’t take the risk by asking them to do so, consequently, the desired effect concerning
persuasion that this company’s prices are in general less than its competitors takes place.
Questions for Discussion
1.
Do you agree with the company concerning the pricing method it used when entering the
Jordanian market for the first time? Why?
-Agree on Penetration price:
It reflects added value for consumer
It improves sales and image
Untraditional methods of pricing that attract large number of consumers
2.
In your opinion, why has the company’s marketing performance been deteriorating in the last
couple of years ?
-Because they didn’t concern the competition price from other supermarkets, which entered the
Jordanian market for the first time with the same pricing method of the Shop and Save company or
those which were already in the market but started to use such a method, i.e., retailing at the
wholesale price,
-Along with providing consumers with better services compared to the service usually offered by Shop
& Save Company
3.
If you were in Nawaf’s position, which of the two pricing alternatives would you use? Why?
-Unit price is useful for the consumer for the less price and for the company increase the profit by
increase the selling of the product unit
- The less-price group of products method compares its price to the sum of separate prices of the ten items
Chapter12
11
Supply chain is companies that produce and market specific product
Value delivery network
the firm’s suppliers, distributors, and ultimately customers who partner with each other to improve the performance of
the entire system
Distribution functions / importance
What is marketing channel
is a set of independent organizations that help make a product or service available for use or consumption by the
consumer or business users
How to design marketing channel
How channel members add value: time, place, possession
by bridging the major time, place, and possession gaps that separate goods and services from those who would use
them
Nature and importance of marketing channel
Q
Functions of intermediaries
 intermediaries create greater efficiency in making goods available to target markets.
 offer the firm more than it can achieve on its own through their contacts, experience, specialization, and scale of
operations
 transform the assortment of products into assortments wanted by consumers
Chapter14
What is definition, elements and importance of Promotion / integrated marketing communication (result in promotion
mix)
promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the
company uses to persuasively communicate customer value and build customer relationships
elements / Major Promotion Tools
• Advertising
paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor as
Broadcast, Print, Internet, Outdoor
•
Sales promotion
short-term incentives to encourage the purchase or sale of a product or service as Discounts, Coupons, Displays,
Demonstrations
•
Public relations
building good relations with the company’s various publics by obtaining favorable publicity, building up a good
corporate image, and handling or heading off unfavorable rumors, stories, and events as Press releases,
Sponsorships, Special events, Web pages
•
Personal selling
personal presentation by the firm’s sales force for the purpose of making sales and building customer
relationships as Sales presentations, Trade shows, Incentive programs
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•
Direct marketing
making direct connections with carefully targeted individual consumers to both obtain an immediate response
and cultivate lasting customer relationships—by using direct mail, telephone, direct-response television, e-mail,
and the Internet to communicate directly with specific consumers as Catalog, Telemarketing, Kiosks
Q
marketing communication mix / promotion mix
methods of sales promotion
discounts – coupons – demonstrations - displays
application: 1 page 363
The following is a number of promotional activities. For each one, determine the promotional element
to which it pertains (i.e., advertising, personal selling, publicity or sales promotion).
1.
a.
A company representative visits grocery stores to promote a new dairy product
Personal Selling
b. A TV program covering the Prime Minister's visit to a textile factory
Publicity: unpaid
c.
An actress appearing on TV introduces a new baby food product of a certain
company, pinpointing the nutritional value of the product as well as its appealing
taste
Advertising
d. A TV ad directed to consumers of a certain brand of jams asking them to keep the
empty jam containers and wait for the company's representative to stop by their
homes. He/she will ask the consumer to provide him/her with a certain number of
empty containers. If what the consumer has matches that number, he/she would
win a prize.
Sales Promotion
e.
A newspaper ad of a brand of toilet soap urges consumers to buy more units of such
a brand, since there is an offer as follows “buys two pieces of (x) brand of soap for
the price of one."
Sales Promotion
f.
g.
A T-shirt worn by a football team players on which a certain brand name of soft drinks
is printed
Sponsorship (Advertising)
One of a certain company’s employees makes a telephone call to a housewife to
present a certain brand of house cleaners and persuade her to try it
Tele-selling (Direct Marketing)
case
KFC Promotion in Egypt*
Kentucky Fried Chicken (K.F.C) in Egypt uses promotion intensively to achieve such objectives as
informing audiences of any new product (e.g., a new type of sandwich or a new chicken meal) and persuade
*
This case is developed based on the author’s - of this book - observation and his acquaintance with
promotion in the Egyptian market.
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them to buy it, persuading consumers to prefer KFC meals and sandwiches over other fast food
restaurants’, assuring whoever buys from KFC that he/she gets the best in terms of value, price, flavor, and
enjoyment.
KFC advertises heavily on several channels on Egyptian television, especially during times where
people usually feel hungry. The TV ads (i.e., TV commercials) utilize different approaches and appeals. In
some ads, humor is used, in others the family or friends are utilized, and in a number of ads certain
occasions are shown in association with KFC’s meals and/or sandwiches. Both rational and irrational
(emotional) appeals are used in such commercials.
In addition to TV commercials, KFC advertises in national newspapers, especially Al-Ahram which is
characterized by a huge number of issues distributed everyday. Usually, the ad is designed in color, and
printed separate from the newspaper on high quality-fancy paper, then it is attached to the newspaper
which is distributed in certain areas of the country. On the first page of the newspaper, the ad is briefly
referred to (e.g., this issue contains a KFC ad). This helps bring the reader’s attention to the fact that there
is a KFC ad included in the paper. Usually, these ads contain special offers on KFC meals and/or sandwiches
for a certain period of time. Most ads are directed to children and young people.
From time to time, KFC sponsors certain events, along with other sponsors.
KFC restaurants usually use posters which are fixed on walls inside them or on their restaurants’
front glass, whether to announce special offers and discounts on meals/sandwiches or just to advertise the
products in an appealing manner using colors, characters, and unique designs.
In certain occasions and/or from time to time, KFC offers certain gifts (e.g., mugs, purses, hats,
umbrellas) to buyers of certain meals or of certain value of money. These gifts carry the KFC brand name. In
addition, KFC offers children some free toys, most of which are carrying their favorite characters.
The in-restaurant salespersons are well and cleanly dressed, treat customers nicely and with a smile,
answer their questions and give them the information they might need, and act in a certain manner which
conveys the message that they do care about customers and do their best to properly serve them. KFC’s instore personnel are always aware of the ads that run on TV or in other advertising media.
Usually, children and young people have favorable attitudes towards KFC and its products and prefer
to buy them. Moreover, most of them prefer to eat such meals, sandwiches and side items (e.g., cole slaw,
rice, and desserts) rather than eating any meal which is fixed at their homes.
Questions for Discussion
1. What are the characteristics of KFC’s promotion mix in Egypt ? How can you evaluate this promotion
mix ?
-KFC is using all the promotion mix (Advertising-sales promotion-public relation-personal selling) Except
Direct Marketing
Qualitative Evaluation:
survey on focus group to find out the benefits that the customers have got from the promotion
Quantitative Evaluation:
measure difference between sales amount before and after the promotion to decide if it was good or not
2. Are there any other promotional tools/activities which KFC can use/perform to promote its product ?
If yes, what are they ? And how can they be used ?
Yes such as e-marketing, mobile selling, taste displays, organization events as birthdays
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-They can use the direct marketing by making a survey with the customer to evaluate the successful of the
promotion and measure the sales and the shape of the advertising and the color of the advertising like we
can use the interest of the tasty display or the mobile selling advertising and use the publicity with all type
can use .
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