Marketing

🟢 Lite — Quick Review (1h–1d)

Rapid summary for last-minute revision before your exam.

Marketing — Key Facts for Sri Lanka A/L Examination

The 4 Ps of Marketing Mix:

Element	Description	Example
Product	Goods or services offered	Sri Lankan tea, garment products
Price	Amount charged	Competitive pricing, psychological pricing
Place	Distribution channels	Supermarkets, online, agents
Promotion	Communication efforts	TV ads, social media, point of sale

Marketing vs. Selling:

• Marketing: Focus on consumer needs → then produce what can be sold
• Selling: Focus on product → then find customers

Market Segmentation: Dividing the market into distinct groups with similar needs:

• Geographic (region, climate, urban/rural)
• Demographic (age, gender, income, education)
• Psychographic (lifestyle, personality)
• Behavioral (usage rate, brand loyalty)

⚡ A/L Exam Tip: The difference between marketing and selling, and understanding the 4 Ps, are the most frequently tested concepts in A/L Marketing!

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🟡 Standard — Regular Study (2d–2mo)

Standard content for students with a few days to months.

Marketing — Detailed Study Guide

Marketing Concepts

Need vs. Want vs. Demand:

Concept	Definition	Sri Lankan Example
Need	Basic requirement (food, shelter)	Need for affordable food
Want	Specific way to satisfy a need	Want for rice and curry vs. pizza
Demand	Want backed by ability to pay	Demand for branded rice vs. bulk rice

Core Marketing Concepts:

1. Exchange: Trading something of value with another party
2. Markets: Set of actual and potential buyers
3. Marketing Myopia: When sellers focus on product rather than customer needs (Solly’s ice cream focusing only on product, missing the experience market)
4. Value and Satisfaction: Customer’s evaluation of product vs. expectations

Value Proposition:

Total Customer Value - Total Customer Cost = Customer Value

Example - Choosing a mobile phone:
| Component | Phone A | Phone B |
|-----------|---------|---------|
| Product features | High | Medium |
| Service quality | Medium | High |
| Brand image | High | Medium |
| Price | High | Medium |
| Effort to buy | Low | Low |

Customer chooses based on perceived value

The Marketing Environment

Micro Environment (immediate forces):

Factor	Description	Sri Lankan Example
Company	Internal resources, departments	Ceylon Tea Gardens marketing division
Suppliers	提供原材料者	Tea leaf suppliers to factories
Marketing Intermediaries	Help distribute/sell	Tea auctions, distributors
Markets	Customers	International tea buyers
Competitors	Rival sellers	Kenya, India tea competition
Publics	Groups affected	Environmental groups vs. garment factories

Macro Environment (broader forces - use PESTEL):

Factor	Description	Sri Lankan Context
Political	Government policies	Export incentives, political instability
Economic	Economic conditions	Inflation, exchange rate, interest rates
Social	Cultural norms, demographics	Health consciousness, religious considerations
Technological	Innovation, automation	E-commerce, digital marketing
Environmental	Ecological issues	Plastic waste, sustainability
Legal	Laws and regulations	Consumer protection, fair trading

PESTEL Example - Sri Lankan Tea Industry:

Factor	Impact on Tea
Political	Political instability affects investor confidence
Economic	Exchange rate changes affect export earnings
Social	Growing health awareness increases tea demand
Technological	Processing innovations improve quality
Environmental	Climate change affects tea growing regions
Legal	EU regulations on pesticide residues

Market Segmentation and Targeting

Bases for Segmentation in Sri Lanka:

Geographic Segmentation:

Region	Characteristics
Colombo metro	Higher income, modern retail, price-insensitive
Rural areas	Traditional retail, price-sensitive
Hill country	Plantation economy, specific consumer profile
Dry zone	Different climate needs, food preferences

Demographic Segmentation:

Age: 18-25 (youth), 26-40 (young adults), 41-60 (middle-aged), 60+ (seniors)
Gender: Male/female specific products
Income: Low (under Rs. 30,000), Middle (Rs. 30,000-100,000), High (above Rs. 100,000)
Education: Affects product choice, information processing
Family life cycle: Single, newly married, married with children, empty nesters

Psychographic Segmentation (VALS or similar):

Lifestyle	Marketing Approach
Achievers	Status symbols, premium products
Strivers	Aspirational, affordable premium
Mainstream	Value for money, practicality
Survivors	Basic needs, low price

Behavioral Segmentation:

Usage rate: Heavy users, light users, non-users
Loyalty status: Brand loyal, outlet loyal, no loyalty
 Readiness to buy: unaware, aware, informed, intent to buy, trial

Market Targeting Strategies:

Strategy	Description	Suitability
Undifferentiated	Mass marketing, one product for all	Salt, sugar, basic rice
Concentrated	Focus on one segment	Specialty stores, boutique hotels
Multi-segment	Target multiple segments	Banks (retail, corporate, SME)

Selecting Target Segments:

Criteria for attractiveness:
1. Size: Large enough to be profitable
2. Growth: Is the segment growing or declining?
3. Competition: Is the market saturated?
4. Accessibility: Can we reach this segment?
5. Alignment: Does this fit our capabilities?

The Marketing Mix (4 Ps) Deep Dive

Product Strategy:

Product Levels (augmented product concept):

Level	Description	Example - Coffee Shop
Core benefit	Fundamental benefit sought	Energy, social space
Generic product	Basic product version	Black coffee
Expected product	Minimum expectations	Coffee, chair, cup
Augmented product	Extra benefits beyond expectation	Free WiFi, loyalty points, cozy atmosphere
Potential product	Future potential additions	Coffee tasting events, home delivery

Product Classification:

Type	Durability	Tangibility	Examples
Non-durable	Short life	Tangible	Soap, biscuits, batteries
Durable	Long life	Tangible	Furniture, electronics
Service	Perishable	Intangible	Banking, transport, education

Branding:

Concept	Description
Brand	Name, term, sign, symbol distinguishing seller
Brand mark	Visual element (logo, colour)
Trademark	Legally registered brand
Brand equity	Value brand adds beyond product function

Sri Lankan Brand Examples:

Brand	Product	Brand Equity Element
Dilmah	Tea	Premium, single-origin, quality
Mlesna	Tea	Premium health positioning
Hemas	Healthcare, retail	Trust, accessibility
ODEL	Fashion	Local fashion identity
Keells	Convenience stores	neighbourhood convenience

Price Strategy:

Pricing Methods:

Method	How it works	Sri Lankan Example
Cost-plus	Cost + Margin	Small retailers, traditional trade
Competitive	Match competitors	Standardised products (sugar, rice)
Penetration	Low initial price	New smartphone brands entering SL
Skimming	High initial price	New luxury products, innovative tech
Psychological	Price ending in 9	Rs. 999 vs. Rs. 1,000
Value-based	Based on perceived value	Branded organic food

Factors Affecting Price:

Internal: Marketing objectives, costs, organisation considerations
External: Market demand, competition, legal constraints, economic conditions

Place/Distribution Strategy:

Channel Types:

Channel	Description	Sri Lankan Example
Zero level (D2C)	Manufacturer → Consumer	Factory outlets, door-to-door
One level	Manufacturer → Retailer → Consumer	Most consumer goods
Two level	Manufacturer → Wholesaler → Retailer → Consumer	Traditional trade
Three level	Manufacturer → Distributor → Wholesaler → Retailer → Consumer	Rural markets

Types of Retailers in Sri Lanka:

Type	Example	Trend
Supermarkets	Keells, Food City, Arpico	Growing fast in urban areas
Department stores	Luvle, Fashion Bug	Moderate growth
Convenience stores	Keells Mini, Laugfs	Growing
Traditional shops	Boutique and api	Still dominant in rural areas
Open markets	Pettah, Dailymarket	Price competitive
E-commerce	Wow.lk, Kapruka	Growing with internet penetration

Promotion Strategy:

Promotion Mix Elements:

Element	Description	Sri Lankan Example
Advertising	Paid mass communication	TV commercial during drama time
Personal selling	Face-to-face interaction	Unilever field sales reps
Sales promotion	Short-term incentives	”Buy 2 get 1 free” on rice
Public relations	Unpaid communication	Tea brand sponsoring a cultural event
Direct marketing	Direct to consumer	SMS offers from mobile operators

AIDA Model (Promotion effectiveness):

A - Attention (Awareness): Making the customer aware
I - Interest: Generating interest in the product
D - Desire: Creating desire to own the product
A - Action: Prompting purchase action

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🔴 Extended — Deep Study (3mo+)

Comprehensive coverage for students on a longer study timeline.

Marketing — Complete Notes for A/L Sri Lanka

Extended Marketing Mix (7 Ps)

Additional 3 Ps for Services:

Element	Description	Sri Lankan Service Example
People	Employees who deliver service	Bank staff at Peoples Bank
Process	Delivery mechanism	Queue management at NSB
Physical Evidence	Tangible cues	Clean premises, staff uniform at Galaxy

Why 7 Ps for Services?:

• Services are intangible (can’t see/try before buying)
• Inseparable from provider (service = provider)
• Perishable (can’t be stored)
• Variable (quality fluctuates)

Services Marketing Triangle:

External Marketing | Internal Marketing | Interactive Marketing
(Promises made      | (Training staff     | (Delivering service
 to customer)       | to deliver)         | as promised)

Consumer Behaviour

Consumer Decision Process:

Problem Recognition → Information Search → Evaluation of Alternatives
→ Purchase Decision → Post-Purchase Behaviour

Problem Recognition:

Trigger	Sri Lankan Example
Running out	No milk at home
Dissatisfaction	Old phone battery drains quickly
New need	Baby arriving, need cot and clothes
Marketing stimulus	See advertisement for new car

Information Search:

Internal sources: Memory, past experience
External sources:
- Personal: Family, friends, neighbours
- Commercial: Ads, salespeople, packaging
- Public: News, reviews, social media
- Experiential: Trying product

Evaluation Criteria (used by Sri Lankan consumers):

Factor	Importance	Note
Price	Very High	Price-sensitive market
Quality	High	But may compromise for price
Brand reputation	Moderate	Trust-based decisions
After-sales service	Growing	Especially for electronics
Availability	High	Easy access important

Post-Purchase Behaviour:

Satisfaction = Performance - Expectation

If Performance > Expectation → Satisfaction
If Performance = Expectation → Neutral
If Performance < Expectation → Dissatisfaction

Cognitive Dissonance: "Buyer's remorse" - post-purchase anxiety
  - More common with expensive, infrequently purchased items
  - Mitigation: Good after-sales service, warranty, positive reinforcement

Market Research

Types of Research:

Type	Purpose	Sri Lankan Example
Exploratory	Initial understanding	”Why has tea consumption changed?”
Descriptive	Document characteristics	”Who buys organic vegetables in Colombo?”
Causal	Test cause-effect	”Does lowering price increase sales?”

Data Collection Methods:

Primary Data (collected fresh):

Method	Advantages	Disadvantages
Surveys	Large sample, quantitative	Social desirability bias
Interviews	In-depth, qualitative	Expensive, time-consuming
Observation	Accurate, no recall bias	Only external behaviour
Focus groups	Rich insights	Groupthink, small sample

Secondary Data (already exists):

Source	Sri Lankan Examples
Government	Department of Census and Statistics, Central Bank reports
Trade associations	Ceylon Chamber of Commerce, SLTea Board
Academic	University research publications
Commercial	Nielsen, IMS health data

Sample Size Determination:

For descriptive research:
n = Z² × p × (1-p) / e²

Where:
Z = Z-score for confidence level (1.96 for 95%)
p = Expected proportion (0.5 if unknown = maximum sample)
e = Acceptable error margin (0.05 = ±5%)

n = (1.96)² × 0.5 × 0.5 / (0.05)²
  = 3.8416 × 0.25 / 0.0025
  = 0.9604 / 0.0025 = 384.16 ≈ 385 respondents

Digital Marketing and Modern Trends

Digital Marketing Channels:

Channel	Sri Lankan Context	Effectiveness
Social media (Facebook, Instagram, TikTok)	High mobile penetration (~70%)	Growing rapidly
Search engine (Google)	Used for product research	High for upper income
E-commerce platforms	Wow.lk, Daraz, Kapruka	Growing post-COVID
SMS marketing	Direct, permission-based	High open rates
WhatsApp Business	Small business marketing	Very effective for SMEs

Sri Lanka Digital Marketing Statistics:

• Internet penetration: ~70% of population
• Active social media users: ~8 million
• Mobile connections: More than population (multi-SIM)
• Most popular platforms: Facebook, WhatsApp, Instagram, TikTok

Social Media Marketing:

Content Strategy:
- Educational (product usage tips)
- Entertainment (humour, cultural content)
- Engagement (polls, questions, contests)
- Transactional (offers, new product launches)

Metrics:
- Reach (how many see it)
- Engagement (likes, comments, shares)
- Click-through (website visits)
- Conversion (actual sales)

E-commerce in Sri Lanka:

Platform	Strength	Target
Wow.lk	Wide variety, reliable delivery	Upper/middle income
Daraz	Deals, promotions	Price-sensitive
Kapruka	Gift-focused	Special occasion buyers
Facebook Marketplace	Peer-to-peer, local	Used goods, informal

Challenges for Digital Marketing in Sri Lanka:

1. Digital payment adoption (cash on delivery dominant)
2. Logistics outside Colombo (last-mile delivery)
3. Trust issues (online fraud concerns)
4. Digital literacy gaps
5. English content vs. Sinhala/Tamil language needs

Marketing Planning and Strategy

SWOT Analysis:

STRENGTHS                  WEAKNESSES
- Internal advantages     - Internal limitations
- Resources, capabilities  - Gaps, limitations

OPPORTUNITIES             THREATS
- External favourable      - External challenges
- Market trends            - Competition, regulations

SWOT Example - Sri Lankan Organic Food Brand:

STRENGTHS: WEAKNESSES:
- Genuine organic sourcing - Higher price point
- Strong brand story      - Limited distribution
- Good social media       - Small production capacity

OPPORTUNITIES: THREATS:
- Growing health awareness- Conventional brands competing
- Export potential to EU  - Certification costs
- Premium market segment   - Economic slowdown affecting premium buys

BCG Matrix (Portfolio Analysis):

Category	Description	Sri Lankan Example
Stars	High growth, high market share	New health food product line
Cash Cows	Low growth, high market share	Established tea brand
Question Marks	High growth, low market share	New milk alternatives
Dogs	Low growth, low market share	Legacy soft drink brand

Porter’s Five Forces (Industry Analysis):

Force	Description	Impact
Competitive rivalry	Intensity of competition	High in Sri Lankan retail
Threat of new entrants	Barriers to entry	Medium (regulation, capital)
Threat of substitutes	Alternative products	High for many products
Buyer power	Customer bargaining power	High (many choices)
Supplier power	Supplier bargaining power	Medium (depends on scarcity)

⚡ A/L Exam Tip: Porter’s Five Forces and SWOT are frequently asked in A/L essays. Be prepared to draw and explain the frameworks with Sri Lankan examples — e.g., using the Sri Lankan tea or garment industry.

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