MODULE 1

MARKETING

• is managing profitable customer relationships

• Attracting new customers

• Retaining and growing current customers

• It is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (Philip Kotler)

MARKETING ACCORDIING TO PETER DRUCKER:

• There will always be a need for some selling. 

• The aim of marketing is to make selling superfluous. 

• The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. 

• Ideally, marketing should result in a customer who is ready to buy. 

• All that should be needed is to make the product or service available.

MARKETING MANAGEMENT

• is “the art and science of choosing target markets and building profitable relationships with them.”

• Creating, delivering and communicating superior customer value is key.

CUSTOMER MANAGEMENT

Marketers select customers that can be served well and profitably.

DEMAND MANAGEMENT

Marketers must deal with different demand states ranging from no demand to too much demand.

NEGATIVE DEMAND

Consumers dislike the product and may even pay to avoid it. (Condoms, Pills, etc.)

NONEXISTENT DEMAND

Consumers may be unaware of or uninterested in the product.

LATENT DEMAND

Consumers may share a strong need that cannot be satisfied by an existing product. (Rent-to-own, Uber)

DECLINING DEMAND

Consumers begin to buy the product less frequently or not at all. (Nokia, CD/DVDs)

IRREGULAR DEMAND

Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

FULL DEMAND

consumers are adequately buying all products put into the marketplace. (basic needs like rice)

OVERFULL DEMAND

More consumers would like to buy the product than can be satisfied. (Concerts, PS5)

• mas marami yung gustong bumili kesa dun sa dami ng product na available sa market.

UNWHOLESOME DEMAND

Consumers may be attracted to products that have undesirable social consequences. (Cigarettes, Alcohol)

RADICAL MARKETING

• The strategy of the company that implements bypassing all traditional marketing laws and this is why good results achieved sales and positioning. 

• To be radical in marketing is to innovate, to transgress, to do something special that others do not do.

• Creativity + Authenticity (Angkas)

TRADITIONAL MARKETING

• This is the old-school, structured approach. It works best for big companies with resources.

• is safe, professional, and broad. It’s about reaching as many people as possible, but it’s expensive.

MARKET

in marketing, buyers ONLY. In economics, it’s the buyers and sellers.

TARGET MARKET

homogenous group which has similar likes and common interest

CUSTOMER

buying or availing the product

CONSUMER

who uses the product

CLIENT

arrangement of their picked schedule and location

CLIENTELE

group of clients

DEMAND

needs and wants of customer

PROSPECTS

potential customers

GOODS

Tangible items that can be bought, sold, or owned.

SERVICE

Activities or benefits offered to satisfy needs or wants.

EXPERIENCES

Memorable events or activities created for customers.

EVENTS

Occasions or happenings organized to attract an audience.

PERSONS

Individuals promoted to build reputation or public image.

PLACES

Locations marketed to attract visitors, residents, or investors.

PROPERTIES

Physical assets like land or buildings that can be sold or leased.

ORGANIZATIONS

Groups promoted to gain support, members, or customers.

INFORMATION

Data or knowledge marketed for awareness or decision-making.

IDEAS 

Concepts or beliefs shared to influence people’s thoughts or behavior.

MARKETERS

is someone who seeks a response– attention, a purchase, a vote, a donation—from another party, called the prospect.

3CS CONCEPT

• Customer

• Company

• Competition

KEY RESULTS AREA

it is called to the output of 3Cs (Sales, Profit, and Market Share)

New USERS

Who uses the product or service?

Extended USERS

Who can still use the product or service?

New USAGE

For what purpose is the product or service used?

More USAGE

When and on what occasions is the product or service used?

NEEDS

• are the basic reason or the minimum requirements consumers look for in a product or service. 

• They are called the qualifying or the “gatekeeper” dimension in a purchase.  (Physical, Social and Individual)

WANTS

are the determining dimensions among many choices. They are the motivating attribute.

EXPECTATIONS

are values or intangibles associated with a product or service. They are actually part of “wants”.

FEATURES

• are simply product attributes offered by a company. 

• They are proof of a benefit. 

• Advertising agencies call these “reasons why”.

ADVANTAGES

are what these features can do.

BENEFITS

• are advantages that meet the explicit needs and wants of the customers. 

• They are the favorable results that customers will get in using the product or service. 

• “What’s in it for me?”

GOALS OF MARKETING

1. Awareness

2. Availability

3. Trial

4. Repeat Purchase

PRODUCTION CONCEPT

internal capabilities (manpower, machines, money, equipments)

• Nakafocus ang kumpanya sa paggawa ng marami at murang produkto

PRODUCT CONCEPT

innovation, quality of the product, KAIZEN

• Nakafocus sa pagpapaganda ng produkto

SELLING CONCEPT

aggressive sales techniques, salesperson at sales method

• Nakafocus sa pagbebenta at panghihikayat gamit ang salesperson, ads, o promos para mapabili ang customer.

MARKETING CONCEPT

company plus customer

• Nakafocus sa pangangailangan ng customers habang kumikita ang company.

SOCIETAL-MARKETING CONCEPT

company plus customer plus the society

• Tulad ng marketing concept pero isinasaalang-alang din ang kapakanan ng lipunan o kalikasan.

PRODUCT

To satisfy the needs and wants of the target market.

PRICE

To make the product affordable to the target market and reflect the value of benefits provided.

PLACE

To make the product conveniently available to the target market.

PROMOTION

To build and improve consumer demand.

ADVERTISING

To effectively inform, persuade and remind the target market.

PUBLIC RELATIONS

To offer a positive image of the company and the brand.

SALES PROMOTIONS

To convince customers to buy immediately.

SELLING

To get the customer to buy.

STRATEGIC PLANNING

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

BUSINESS PORTFOLIO

• is a combination of various products, services and business units that make up a business. 

• By observing this portfolio and each business unit individually, managers can take strategic business level decisions for the whole portfolio. 

• Each unit within the portfolio can also be treated as an asset.

STARS

HIGH MARKET GROWTH + HIGH RELATIVE MARKET SHARE

QUESTION MARKS/PROBLEM CHILD

HIGH MARKET GROWTH + LOW RELATIVE MARKET SHARE

CASH FLOWS

LOW MARKET GROWTH + HIGH RELATIVE MARKET SHARE

DOGS

LOW MARKET GROWTH + LOW RELATIVE MARKET SHARE

MARKET PENETRATION

Existing Product + Existing Market

PRODUCT DEVELOPMENT

New Product + Existing Market

MARKET DEVELOPMENT

Existing Product + New Market

DIVERSIFICATION

New Product + New Market

DIGITALIZATION AND CREATIVY

• The flow of digital information requires connectivity

• Intranets, Extranets, and the Internet.

THE INTERNET EXPLOSION

key driver of the new economy.

E-BUSINESS

uses electronic means and platforms to conduct business.

E-COMMERCE

• Facilitates the sales of products and services by electronic means.

• refers to buying and selling online, while e-business encompasses all business conducted online.

E-MARKETING

Includes efforts that inform, communicate, promote, and sell products and services over the Internet.

B2C

Initiated by business → Targeted to consumers

B2B

Initiated by business → Targeted to businesses

C2C

Initiated by consumer → Targeted to consumers

C2B

Initiated by consumer → Targeted to businesses

MARKETING ENVIRONMENT

- The actors and forces that affect a firm’s ability to build and maintain successful relationships with customers.

- Aspects of the marketing environment:

• Microenvironment (internal)

• Macroenvironment (external)

SWOT ANALYSIS

analysis is a framework used to evaluate a company's competitive position and to develop strategic planning.