SUBJECT – MARKETING. LESSON NOTE 1 CLASS- SS2 SECOND TERM.

WEEK ONE & TWO

TOPIC- WAREHOUSING. WAREHOUSE/ WAREHOUSING

MEANING- WAREHOUSE- A warehouse is a building for storing goods for an extended period of time
that are typically equipped with storage areas, loading docks, conveyors and material- handling
equipment.

Warehouses are usually used by manufacturers, importers, exporters, wholesalers, transporters etc.
that need to temporarily store products in bulk before either shipping them to other location or
individual to end users (CONSUMERS).

Warehouses are usually large plain building in industrial parks on the outskirts of cities, towns or
villages.

Warehouse ensure that goods are stored safely in an organized manner in order to track where goods
are located, the date of arrival, the quantity of the goods, and the time they were stored in the
warehouse.

Storing of goods involves proper arrangement for preserving goods from the time of their production
or purchase till the actual usage.

WAREHOUSING- It refers to the physical activities of storing goods in large scale in a systematic and
orderly manner, making goods available through distribution to end users (CONSUMERS).

Warehousing also refers to the process of physically storing goods in large quantity until they are sold
or distributed to another location. For example, A sugar factory. It needs sugarcane as raw material to
produce sugar. Thus, there is need to store sugarcane in sufficient quantity.

Warehousing is an important aid to commercial activities (TRADE). It creates time utility by bridging
the gap between production and consumption of goods.

Warehousing enables you to store, ship and distribute your goods from one single location to another.
This makes it easy for you to track and manage your inventory efficiently. It can additionally reduce
your transportation cost, increase your flexibility and reduce your staffing needs.

When this storage is done on large scale and in a specified manner it is called WAREHOUSING.

The place where goods are kept or stored is called WAREHOUSE.

The person in charge of warehouse is called WAREHOUSE- KEEPER.

ADVANTAGES OF WAREHOUSE

1. Protection and preservation of goods.

2. Regular flow of goods.

3. Continuity in production.

4. Convenient location.

5. Easy handling of goods.

6. Useful for small businessmen.

7. Creation of employment.

8. Facilitates sales of goods.

9. Availability of finance.

10. Reduce risks of loss.

CHARACTERISTICS OF WAREHOUSE

1. Adequate space to keep goods in proper order.

2. Round the clock security arrangement should be available to avoid theft of goods.

3. Cold storage facility for perishable items like fruits, vegetables, eggs etc.

4. Convenient location.

5. Mechanical appliance for loading and unloading goods.

FACTORS THAT AFFECT THE LOCATION OF WAREHOUSE

Choosing the right warehouse location is a critical factor in the success of any business that requires
storage and distribution facilities.

A strategically located warehouse allows for efficient inventory turnover. By minimizing the time
goods spend in transits, firm can better predict when products will arrive, which in turn aids in
forecasting and inventory management.

The following are factors that affect the location of warehouse:

 1. TRANSPORTATION INFRASTRUCTURE- A warehouse located near a major port or
airport can help to reduce transportation cost and improve supply chain efficiency. It is also
important to consider the quality of the roadways and railway.

2. LABOUR AVAILABILITY- It is important to consider the availability of skilled labour in

the area. This can help to ensure that your warehouse operations are efficient and effective.
Choosing a warehouse location with affordable labour can help to reduce operating costs and
improve profitability.

3. PROXIMITY TO CUSTOMERS- A warehouse located near major population centres can

help to reduce transportation time and costs and improve customer satisfaction.

4. WAREHOUSE CAPACITY- The size and layout of the warehouse can have a significant
impact on your supply chain operations. It is important to consider the type of warehouse.
Different products require different storage conditions, such as temperature and humidity
control. Choosing a warehouse location with the appropriate storage condition can help to
ensure that your products are stored properly and remain in good condition.

5. REGULATORY ENVIRONMENT- When choosing a warehouse location, it is important to

consider the regulatory environment and ensure that your business can comply with all
applicable regulations. This is particularly important for businesses that deal with hazardous
materials or other regulated product. Choosing a warehouse location with appropriate
regulatory support can help to ensure that business operations are compliant and avoid
potential fines or penalties.

TYPES OF WAREHOUSE

Warehouses come in many different sizes and forms, such as:

1. PRIVATE WAREHOUSES- This type of warehouses are owned and managed by supplies
are resellers to fulfill their distribution activities. Examples of private warehouses are retailers
renting at warehouses to store their goods, wholesalers who stored his goods in order to
supply to retailer in future.

2. PUBLIC WAREHOUSES- These type of warehouses are owned by the Government and
they can be used by private entities or firms to store their goods as long as they can pay rent.
These warehouses can be of assistance to small companies that need storage facilities but
cannot afford to have their own.

3. BONDED WAREHOUSES- This refers to warehouses that are owned and managed by
both the Government and private firm. They are types of warehouses in which owners are
licensed by Government to accept imported goods for storage before payment of customs
duties. Bonded storage ensures that private firms pay their taxes to the Government.
 4. CO-OPERATIVE WAREHOUSES- These are owned by co-operative societies. They are
meant to be accessible storage facilities as the rates they will charge are not as high as other
type of warehouse. Co-operative warehouses are not intended to make profit, but they are to
assist those members who cannot afford to rent warehouses at the usual rate.

5. GOVERNMENT WAREHOUSES- These are owned by the Government. Goods seized by

Government are kept in the warehouse until they are sold. Smuggled and contra-band goods
are kept in the Government warehouse.

ACTIVITIES OF WAREHOUSING

Various activities take place in the warehouses;

1. CONTIGENCES- Warehouse protects or take care of unforeseen wants such as vendor

stock out, strikes, transportation delays, etc.

2. PRESERVATION- Warehouses provides the right temperature to prevent product

spoilage.

3. PAPER WORKS/ RECORDS- Warehouses keep records of goods going in and out by
issuing receipt etc.

4. INVENTORY MANAGEMENT- Efforts are made to match demand with supply.

5. SMOOTHING- Warehouse provides smooth operations or decouple successive stages

in the manufacturing process.

6. SECURITY.

7. MANAGING SPOILAGE.

8. CUSTOMER SERVICES. ETC.

FUNCTIONS OF WAREHOUSING Warehousing performs the following functions:

1. PROVIDES STORAGE FACILITIES- The basic function of warehousing is to store large

stock of goods. These goods are stored safely until the time they are needed for consumption.

2. PROTECTION OF GOODS- A warehouse ensures that all goods are stored in a safe
facility, especially for perishable goods as it ensure that they are stored in appropriate
condition.
 3. TRANSPORTATION- Goods produced in one location can be transported to another
location and stored until they are needed.

4. FINANCING- Warehouses and warehousing are avenues for raising revenue. Owners of
public warehouse can rent them out.

5. PROVISION OF SECURITY- Provision of security for personnel and goods is an integral

part of warehousing.

6. RISK BEARING.

7. PROCESSING.

8. GRADING AND BRANDING.

9. GENERATION OF EMPLOYMENT.

10. PACKAGING FACILITIES.

WEEK THREE

STRUCTURE AND MARKET UNIONS FOR THE SALES OF GOODS

Primary Products

Primary products can be defined as raw materials that are extracted from land and water in their natural
state that has not undergone any form of processing. They include agricultural, forestry, mining and
fishery products.

Secondary Products

Secondary products can be defined as finished or semi-finished goods that has undergone a level of
processing or transformation into a form that is acceptable to the consumer.

Importance of Primary and Secondary Product to a Country

1. Generation of revenue: availability of products in a country helps in generation of revenue

through export charges, taxation, fees and levies, etc.

2. Provision of employment: foreigners and citizens of a country gets employed to extract primary
products and process secondary products into finished and semi- finished goods.

3. Increase in standard of living: when people are giving employment, it brings about increase in
their standard of living.

4. Offer comparative advantage: it gives a country advantage over other countries that do not have
such products.
 5. Encourage development of industries: it provides opportunity to ensure industries are
developed and functioning well in a country to produce products of good quality.

Channels or Structures for Marketing Primary and Secondary Products

This refers to the routes or paths in which products are taken to the final consumer. The channel of
marketing primary or secondary goods depends on the type of goods, whether consumer or industrial
goods. For the purpose of convenience, the channels illustrated below are the major channels of
marketing primary and secondary products. Major Channel of Marketing Secondary Product

Produce Wholesaler Retailer Consumer

Major Channel of Marketing Primary Product

Produce Retailer Consumer

WEEK FOUR

MARKET UNION

Market union can be defined as the coming together of traders who engage in the selling of the same
product in a market to protect the interest of their members. For example, dry fish sellers, yam sellers,
okada riders, etc.

Roles of Market Union in the Marketing of Primary and Secondary Product

1. Settle disputes: market union helps to settle disputes among members to ensure unity and
progress.

2. Promotes co-operation: members cooperate to ensure unity in the association.

3. Encourage joint-purchase: members are always encouraged to join their resources together to
purchase more product for resale which will provide opportunity for discount.

4. Standardize product prices: market union to some extend ensures that members sell their
product at uniform prices.

5. Educates members: it provides members adequate knowledge on their product and how best to
trade.

6. Offers financial assistance to members: members of market union are provided credit facilities
and loans where necessary based on their constitution or regulations.

7. Draw up rules and regulation: it creates rules and regulations that will guide the operations and
activities of the association.
 8. Promotes the delivery of information: it promotes the delivery of important information
between the market union and its members.

9. Mandate the supply of quality product: it ensures that producers offer quality product to the
market to satisfy the needs of customers thereby increasing sales.

WEEK FIVE

TOPIC- FACILITATOR.

A facilitator is a person who helps a group of people to understand their common objectives and
provide assistance for them to plan towards the achievement of their objectives.

A market facilitator could be individual, a firm or group of people. A firm or a marketer could decide
to use the services of a market facilitator rather than employing a full-time staff in order to save cost.

A market facilitator facilitates the movement of the products from the firm to final consumer.

TYPES OF FACILITATORS

1. Transport market facilitator.

2. Banking market facilitator.

3. Consultants.

4. Advertising market consultants.

5. Farm market inspectors e.g farm inspector.

ROLES OF FACILITATORS IN-

A. FOOD PROCESSING INDUSTRIES-

1. ATTRACT DOMESTICS AND FOREIGN INVESTMENT- Facilitators in food processing

industries liaise with both local and foreign investors to attract opportunities to the sector.

2. ENCOURAGE RESEARCH AND DEVELOPMENT- Facilitators carry out research and

findings which could lead to the development of their sector.

3. PROVIDE TECHNICAL GUIDANCE- Facilitators in food processing industries help to

provide technical guidance and advice.

4. ENSURE PROVISION OF CONDUSIVE ENVIRONMENT- They facilitate the creation of

conducive environment for growth in their sector.
 5. PROMOTION CREATION OF CRITICAL INFRASTRUCTURE- They help attracts critical
infrastructure and machineries for production.

B. BANKS-

1. IDENTIFY OPPORTUNITY FOR BANKS- They engage in series of activities to attract

opportunities for banks.

2. CONSULT STAKEHOLDERS- Facilitators help in consulting stakeholders in banking

sector to determine their interest.

3. LIASE WITH DEVELOPMENT PARTNERS- They communicate and maintain regular

contact with development partners.

4. GUIDE AND STRUCTURE FINANCIAL PROCESS- A facilitator help to layout appropriate

guide for financial process.

C. BASINS AND BOARDS-

Board is an organization created by many producers to try to market their product and increase
consumption and thus prices.

Basin Board means a formally organized joint powers organization representing the management.

1. TRANSFER OF INFORMATION BETWEEN BASINS- Facilitators ensures transfer of

information between basins.

2. EDUCATE PEOPLE ON MAINTENANCE OF DAMS WELLS AND

BOREHOLES- Facilitators ensure proper maintenance of water facilities.

3. ADVOCATE DEVELOPMENT OF IRRIGATION SYSTEM- Facilitators encourage the

development of irrigation systems for agricultural purposes through advocacy.

4. PROMOTE CRUSADE FOR CLEAN WATER- Facilitators participate in the crusade for
clean water use.

D. CO-OPERATIVE SOCIETIES-

1. IDENTIFY PROMISING ENTERPREUER- Facilitators in co-operative societies help to

identify reliable and promising entrepreneurs and nurture them to maturity.
 2. EDUCATE STAKEHOLDERS- Facilitators give adequate education to the stakeholders in
co-operative societies on the best method of production and provision of service.

3. BUILDING RELATIONSHIP WITH KEY PERSONS OR GROUP- Facilitators link the society
with the personalities in a locality to build on good image for the business.

4. CREATE ACCESS FOR GRANTING LOAN- Facilitators open ways for potential
prospective persons to secure loan facilities from cooperative society.

E. MICRO FINANCE CPOMPANIES-

Micro finance also called micro credit is a type of banking service provided to unemployed or low-
income individuals or groups with no other access to financial services.

1. Facilitators equipped the market of the company to build up a large customer base.

2. They help in educating the customer about all they need to know about the company.

3. Facilitators help the company to achieve the objective goal with the aid of a series of
meetings.

4. Facilitators recognize individual strength and efforts to change things for better.

5. Facilitators are always been neutral and positive in the company.

ASSIGNMENT- List out 7 industries that require facilitators.

WEEK SIX AND SEVEN

MARKETING OF MINERAL PRODUCTS

Mineral products can be defined as those industrial products that are in their natural state without any
human effort on them. They include gold, iron ore, crude oil, tin, limestone, zinc, etc.

The difference between mineral products and primary products are:

Mineral Products Primary Products

 1. They are only industrial 1. They include both industrial
products products and consumer products

2. They cannot be consumables 2. They can be consumables

3. They cannot be distributed 3. They can be distributed using

using direct distribution channel direct distribution channel

4. Agricultural products cannot be 4. All agricultural products are

mineral products primary products.

Oil and Non-oil Mineral Products

Oil products are thick liquid that are found underground in their natural state like crude oil. Non-oil
products are solid mineral products that are found on or under the surface of the earth in their natural
state like coal, tin, gold, lead, zinc, etc.

Channels of Marketing Mineral Products

Mineral products are classified as cash products and property of the government since they are naturally
available on or under the earth surface without any human effort. The government has sole ownership
and oversees any business relating to mineral products. Below is the channel of marketing mineral
products:

PRODUCERS/GOVERNMENT

Agent

Merchant Wholesalers(Industrial Distributors) Merchant Wholesalers(Industrial Distributors)

Consumer/Industrial Users Consumer/Industrial Users

Marketing of Non-Mineral Product

Marketing of non-mineral products are done by individuals or organization through the use of both
business and consumer goods channel of distribution, while marketing of mineral product is done by
government through the use of only business channel of distribution.

Importance of Oil and Non-Oil Mineral Products to Nigerian Economy

 1. Source of foreign exchange earnings: through the exportation of products like crude oil, coal,
tin, or zinc, the government earns foreign exchange.

2. Employment opportunities: extraction and refining of mineral products provides jobs to the
masses such as miners, drillers, evaluators, agents, etc.

3. Raw materials for industries: it provides raw materials for the production of finished and semi-
finished goods by industries. For example, gold are used to produce jewelries and crude oil is used to
produce petrol.

4. Source of infrastructural development: availability of mineral products facilitates the

development of infrastructure such as good roads, electricity and pipe borne water in such area.

5. Source of fuel: mineral products such as coal, natural gas and crude oil provide power and
energy for industrial and domestic use.

6. Construction purposes: non-oil mineral products such as zinc, iron and aluminium are used for
construction of roads, bridges and buildings.

7. Sources of ornamentals: mineral products like gold, silver, bronze and copperare used in
decorative and beautification purposes to make jewelries and body, offices and home accessories.

WEEK EIGHT

MARKET SEGMENTATION

Definition

Market segmentation is a method of dividing a large market into smaller groupings of consumers or
organisations in which each segment has a common characteristic such as needs or behaviour.

Market segmentation is the sub-dividing of market into homogeneous sub-sections of customers, where
any sub-section may conceivably be selected as a market target to be reached with a distinct marketing
mix.

-Philip Kotler

Market segmentation consists of taking the total heterogeneous market for a product and dividing it
into several submarkets or segments, each of which tends to be homogeneous in all significant aspects.

W.J. Stanton

BASES FOR MARKET SEGMENTATION

Markets may be segmented on the basis of geographic, demographic, socio-economic, psychographic

and buyer behaviour variables. The common bases of marketing segmentation are as follows:

 Geographic Segmentation

 Demographic Segmentation
  Economic Segmentation

 Psychographic Segmentation

 Buyer Behaviour Segmentation

 Volume Segmentation

 Benefit Segmentation

(i) Geographic Segmentation

Here, a marketer divides the target market into different geographical units such as nations, states and
regions. He may decide to operate in one or more than one geographical areas. Example: A particular
brand may be popular only in North India, then the North Indian market can be divided on the bases of
zones, villages, cities, climate, etc. A classic example of geographic segmentation is Amul which was
initially marketed only in Gujarat.

(ii) Demographic Segmentation

In demographic segmentation, a marketer divides the market on the bases of demographic factors like
age, sex, family size, marital status, religion and language. For example: Cosmetic manufacturers and
food manufacturers particularly keep in mind the age-categories.

(iii) Economic Segmentation

Market segmentation on the basis of income levels is used by most of the marketers of consumer goods.
Most of marketing research activities and studies of consumer behaviour are also based on the income
levels of the consumers. Example: Proctor & Gamble and HLL Products.

(iv) Psychographic Segmentation

It involves developing sub-group identification on the basis of psychological characteristics. For example,
perceptions, attitudes, opinions, interests or a combination of these.

(v) Buyer Behaviour Segmentation

In the case of buyer behaviour segmentation, the market is divided on the basis of purchase decisions
made by various groups.

(vi) Volume Segmentation

In the case of volume segmentation, quantity purchased is the basis for segmentation. For example, bulk
buyers, small-scale buyers, regular buyers and one-time buyers.

(vii) Benefit Segmentation

Benefit segmentation involves classifying buyers according to the benefits they get from the product.

Market Targeting

Once the firm has identified its market-segment opportunities, it has to decide how many and which
ones to target.
Evaluating and Selecting the Market Segments

In evaluating different market segments, the firm must look at two factors: the segment's overall
attractiveness and the company's objectives and resources. Does a potential segment have
characteristics that make it generally attractive, such as size, growth, profitability, scale economies, and
low risk? Does investing in the segment make sense given the firm's objectives, competencies, and
resources? Some attractive segments may not mesh with the company's long-run objectives, or the
company may lack one or more necessary competencies to offer superior value.

Having evaluated different segments, the company can consider five patterns of target market selection.

SINGLE-SEGMENT CONCENTRATION

Volkswagen concentrates on the small-car market and Porsche on the sports car market. Through
concentrated marketing, the firm gains a strong knowledge of the segment's needs and achieves a
strong market presence. Furthermore, the firm enjoys operating economies through specializing its pro-
duction, distribution, and promotion. If it captures segment leadership, the firm can earn a high return
on its investment.

However, concentrated marketing involves risks. A particular market segment can turn sour. When
young women suddenly stopped buying sportswear, Bobbie Brooks's earnings fell sharply; or a
competitor may invade the segment. For these reasons, many companies prefer to operate in more
than one segment.

SELECTIVE SPECIALIZATION

The firm selects a number of segments, each objectively attractive and appropriate. There may be little
or no synergy among the segments, but each promises to be a moneymaker. This multisegment strategy
has the advantage of diversifying the firm's risk.

Consider a radio broadcaster that wants to appeal to both younger and older listeners. Emmis
Broadcasting owns New York's KISS-FM, which describes itself as "smooth R&B [Rhythm and blues] and
classic soul" and appeals to older listeners, and WQHT-FM ("Hot 97”), which plays hip-hop (urban street
music) for listeners in the under-25 crowd.'

PRODUCT SPECIALIZATION

The firm makes a certain product that it sells to several segments. An example would be a
microscope manufacturer who sells to university, government, and commercial laboratories. The firm
makes different microscopes for the different customer groups and builds a strong reputation in the
specific product area. The downside risk is that the product may be supplanted by an entirely new
technology.

MARKET SPECIALIZATION

The firm concentrates on serving many needs of a particular customer group. An example would
be a firm that sells an assortment of products only to university laboratories. The firm gains a strong
reputation in serving this customer group and becomes a channel for additional products the customer
group can use. The downside risk is that the customer group may suffer budget cuts.
FULL MARKET COVERAGE

The firm attempts to serve all customer groups with all products they might need. Only very large firms
such as IBM (computer market), General Motors (vehicle market), and Coca-Cola (drink market) can
undertake a full market coverage strategy. Large firms can cover a whole market in two broad ways:
through undifferentiated marketing or differentiated marketing.

In undifferentiated marketing, the firm ignores segment differences and goes after the whole market
with one offer. It designs a product and a marketing program that will appeal to the broadest number of
buyers. It relies on mass-distribution and mass-advertising. It aims to endow the product with a superior
image in people’s minds. Undifferentiated marketing is "the marketing counterpart to standardization
and mass production in manufacturing." The narrow product line keeps down cost of research and
development, production, inventory, transportation, marketing research, advertising, and product
management. The undifferentiated advertising program keeps down advertising costs. Presumably, the
company can turn its lower costs into lower prices to win the price-sensitive segment of the market.

In differentiated marketing, the firm operates in several market segments and designs different
products for each segment. General Motors does this when it says that it produces a car for every
"purse, purpose, and personality." IBM offers many hardware and software packages for different
segments in the computer market.

Single segment concentration Selective Specialisation

M1 M2 M3 M1 M2 M3

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Product Specialisation
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Market Specialisation
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M1 M2 M3 M1 M2 M3

P1
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P2
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Full Market Coverage

 M1 M2 M3

P1
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P2
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ADVANTAGES OF SEGMENTATION

The main advantage of market segmentation lies in a better understanding of the consumer needs and
behaviour so that a marketer can plan accordingly. In brief, market segmentation helps:

1. Understand potential customers;

2. Pay proper attention to particular areas;

3. Formulate marketing programmes;

4. Select channels of distribution;

5. Understand competition;

6. Use marketing resources efficiently;

7. Advertise the products and launch sales promotion programmes; and

8. Design marketing mix-product, price, place and promotion.

WEEK NINE AND TEN

TOPIC- PUBLIC RELATION AND CUSTOMER SERVICES

MEANING- PUBLIC RELATION- refers to the maintenance of a positive image and reputation of a
company or organization through effective communication and interaction with the public.

Public relation is also a subset of marketing that focuses on building relationships with the public in
order to create a positive public image for companies.
CUSTOMER SERVICE- is the provision of assistance and support to customers in a way that meets their
needs and exceeds their expectation.

It is also the supportive assistance provided to customers before, during and after the purchase of a
product or service.

Customer service focuses on the proactive steps taking to engage customers and improve the
customer experience.

Both public relation and customer service are all about building and maintaining positive relationships
with customers, which are essential for the success and growth of any business.

PUBLIC RELATION MEDIA

This is the process of communicating and building relationships with the public through various media
channels, such as Newspapers, Magazines, Television, Radio, and Social media. It involves managing
and shaping the public perception of a company or brand.

TYPES OF PUBLIC RELATION MEDIA

1. Press release.

2. Interviews.

3. Media pitches.

4. Events.

5. Sponsorships.

6. Social media.

7. Campaigns.

8. Influencer marketing.

ROLE OF PUBLIC RELATIONS

Public relation plays a vital role in the success of any business by;

1. Generating positive publicity.

2. Managing crises.

3. Building a brand’s reputation.

4. Acts as intermediaries between the organization and it customers.

5. Conducting research and insights.

PRESALE SERVICE- It means guiding your product/service buyers through buying journey and
proactively anticipating challenges that may occur. AFTERSALE SERVICE- It refers to the ongoing
support and assistance that a business provides to customers after they have purchased a product or
services.

IMPORTANCE OF PUBLIC RELATION

1. Establish positive reputation.

2. Gain recognition.

3. Create good image.

4. Increase brand visibility.

5. Enhance credibility.

6. Improve customer relationship.

IMPORTANCE OF CUSTOMER SERVICE

1. CUSTOMER SATISFACTION- Providing excellent customer service ensures that

customers are happy and satisfied with their experience.

2. DIFFERENTIATION- it helps a business to stand out from its competitors.

3. PROBLEM RESOLUTION- It help quickly and efficiently resolve customer inquiries,

concerns, and complaints.

4. COMPETITIVE ADVANTAGES- It gives a business a competitive advantage over its

rivals.

5. EMPLOYEE SATISFACTION- Positively impact employee satisfaction and morale.

6. BRAND REPUTATION- Positive customer service- positive customer service

experiences can lead to positive reviews and recommendation, which can significantly
impact a company’s image and attract new customers.

ASSIGMENT- Narrate your experience with customer service in any organization.

WEEK ELEVEN REVISION

WEEK TWELVE EXAMINATION