RM2-MKM132-8PAGES-MIDTERM PERIOD-PROFESSIONAL SALESMANSHIP

Definition of Marketing:
- Activities, institutions, and processes for creating, communicating, delivering, and exchanging value for customers and society.
- It involves understanding and satisfying customer needs and wants through exchange.
Exchange Concept:
- Obtaining a desired product from someone by offering something in return.
- Involves two parties and leads to a transaction
- Transaction: The basic unit of exchange; trade of values between buyer and seller.
Evolution of Marketing Philosophy:
- Shift from selling to marketing focus since the 1950s.
- Marketing is vital for firm success.
Marketing Concept Principles:
1. Customer orientation in all company planning and operations.
2. Focus on profitable sales volume instead of mere sales volume.
3. Organizational coordination of all marketing activities.

Selling Concept Characteristics:
1. Product emphasis.
2. Firm creates the product and strategizes sales.
3. Short-term, volume-oriented management.
4. Focus on seller's needs.
Marketing Concept Characteristics:
1. Customer wants emphasis.
2. Firm identifies customer wants before production.
3. Long-term, profit-oriented management.
4. Focus on buyer's needs.

Marketing must be the driving factor in both short-range and long-range planning.
Traditional production-centered approach of U.S. businesses is less effective today due to competition.
Marketing Mix:
- Consists of four elements: Product, Price, Distribution (Place), and Promotion.
- Marketing managers must effectively utilize these elements to attract customers.

Goods: Tangible items like radios, houses, and cars.
Services: Intangible actions performed for others (e.g., lawyers, plumbers).
Ideas: Concepts or philosophies (e.g., MADD campaign).
Value-Added Services: Benefits beyond physical attributes; e.g., warranties, special services provided by retailers.

Product: Bundle of tangible and intangible attributes, including packaging and brand reputation.
Consumer Products: Purchased for personal use.
Industrial Products: Used for producing other products.
Price: The value in monetary terms that attracts buyers.

Distribution: The process of moving products from the producer to consumers; must ensure convenience and accessibility.
Customer Groups:
1. Households (individuals buying for personal use).
2. Firms (organizations that produce goods/services).
3. Governments (providers of services and goods).
Promotion: Key to increasing sales through communication.
- Components of Promotion:
  1. Personal Selling: Direct communication to persuade customers.
  2. Advertising: Paid nonpersonal communication.
  3. Public Relations: Unpaid nonpersonal communication in media.
  4. Sales Promotion: Activities aimed at creating sales, including consumer incentives.

Focus on creating customer loyalty through attention to important customers.
Levels of Relationship Marketing:
1. Transaction Selling: One-time sale, no follow-up.
2. Relationship Selling: Contact after sale to ensure customer satisfaction.
3. Partnering: Continual work to improve customer operations, ensuring prosperity for both seller and buyer.
80/20 Principle: 80% of sales come from 20% of customers; organizations focus on key customers.

Helping customers achieve goals with the seller’s products/services.
Collaboration within multifunctional teams enhances sales effectiveness.
Team Selling: Involves coordinated efforts to meet customer needs through multiple resources.
Utilization of technology for e-sales, providing a wide range of information and service capabilities during the sales process.