CHAPTER 1

Marketing

- Is to satisfy the needs and wants of the customer.

- To build a long-term relationship with the customer
- Before marketing is all about selling and advertising : ex door to door selling
- Today’s marketing is all about telling and selling ; ex: networking
o The new sense
 Understand the customer needs

Aim of marketing “selling is unnecessary”

Twofold of Marketing

- To attract new customer by promising superior value.

- To keep and grow current customers by delivering satisfaction.

Sound marketing

- It is critical to the success of every organization

THE MARKETING PROCESS

1. Understand the market place and the customer needs.

 Needs, wants and demand
 Needs – state of felt depreciation, include the basic needs
 Wants – the form human needs take as shaped by culture and individual
personality
 Demand – human wants that are backed by buying power.
What will satisfy consumer’s needs and wants?
Product- anything that can be offer to a market for
attention; tangible
Services- activities or benefits offered for sales; intangible;
haircut, airlines
 Market offering - combination of product, services, information, or experience
offered to a market to satisfy a needs or want
 Marketing myopia- the mistake of paying more attention to the specific
product a company offers than to the benefits and experienced produced
by these product.
 Value and satisfaction- marketers must be careful to set the right level of
expectation. This is the key building blocks for developing and managing
customer relationship.
How do consumers choose among products and services?
Customer value- benefits that the consumer gain using the
product.
Customer satisfaction- it link to total quality management
 Exchanges and relationships
 Exchange- is the act of obtaining a desired object from someone
by offering something in return.
 Transaction- usually involves money.
 Market- is the set of all actual and potential buyers of a product or service.
2. Designing a customer-driven Marketing strategy
Marketing Management - The art and science of choosing target markets and
building profitable relationships with them.
 Selecting customer to serve (Market segmentation: target marketing)
 Choosing a value proposition (differentiate and position)
  Marketing Management orientation
THE 5 ALTERNATIVE CONCEPTS
o Production Concept- one of the oldest orientations that guides seller.
o Product Concept- it is the idea of consumers will favour products that
offer the most quality.
o Selling Concept- it is the idea that the consumer will not buy enough of
the firm’s products unless it undertakes a large-scale selling and
promotion effort
o Marketing concept- holds that achieving organizational goals depends on
knowing the needs and wants of target market and delivering the desired
satisfactions better than competitors do.
o Societal Marketing Concept- the idea that a company’s marketing
decision should consider consumers’ wants the company’s requirements.

3. Preparing an integrated Marketing plan and program.

4P”s of Marketing

o Product- something you want to buy

o Price- amount of money must pay for the product
o Place- how it will make the offering available to target consumer
o Promotion- it must communicate with target customers about the offering

 Rapid Globalization ( Global competition)

PRODUCT

Product which is stands for the “goods or services” combination the company offers the

intended market segment or subsegment, in whatever business or industry, either in the domestic

or international setting. Product is particularly anything tangible or intangible that can be offered

to an individual, group of individuals, firms or organizations, or entities, for profit or otherwise

for use, consumption, acquisition, sale, exchange, barter, for the purpose of obtaining value or

benefits in order to satisfy, delight, and surprise target customers.

8 Types of Product

 Product as physical objects in the marketplace in our homes and offices, in mass

merchandise outlets and anywhere in our environment.

Ex: drugs and medicines, cosmetics, personal care, furniture, machines, equipments, raw

materials

 Product as person requires maximum visibility and clarity of credentials for

marketability.

Ex: sports, job applicants, artists, academe

  Product as place it could be tourist spot and vacation resort

Ex: Boracay, Palawan, Baguio, Tagaytay

 Product as services requires credibility, adaptability, quality assurance, and warranties.

Ex: school, educational training center, manpower, hospital, bank

 Product as idea requires creativity, logic, rational communications and marketing effort.

Ex: feasibility study, term paper, thesis

 Product as organization are clearly spelled out to target audiences in clear precise

marketing communications, undoubtedly, support and cooperation from everyone are

readily realized

Ex: Philippine Marketing Association, Association of Marketing Educators

 Product as activities requires massive information campaigns to ensure participation and

involvement from all concerned

Ex: medical mission project, marketing seminar or workshop, school intramurals

Product as information could be well determine the trends and possible outcomes of

organization success relative to the industry and competition.

PRICE

Price is the amount of money charge for a product. The values place on goods and

services. Price is the equivalent amount in whatever currency that you have to pay for any kind

of product bought or availed in the marketplace.

Pricing is an art

 To optimize profit

 To reduce losses

 To maintain market shares

This is done primarily to achieve the short or long range objectives for the specific product line

Pricing is a guessing game

 how market will react to the price changes

o ex: a price decrease may lead to increase demand

 how competitors will react to the price change

o wait for other companies to move price

Factors influencing price decision

 market appeal
  market characteristics

 market demand expansibility

 income distribution pattern

Pricing Strategies

 Selling Below Cost

o When the product is expiring.

o Loss leader in retailing.

o When marketing cost are insignificant.

o During increase in volume.

o The product is not selling expected resulting to an overstocked situation or excess

inventory.

 Competitive Selling

o Following the leader price policy. ex: gasoline

o Launching or introduce specialty product.

 Pricing Above Competition

o Additional product features

o More quality

o Warranties

o Quality control

o Flexible and capacity or product line

 Psychological Pricing

o Small difference in price ex. Php0.05, Php99.99 Php99.95,

 Promotional Pricing Strategy

o From low cost it dramatically increase

o Especially in some occasions

 Market Skimming Pricing Strategy

o The price starts at high then it become lower.

 Product- Bundle Strategy

o if u buy the big one snack you can get a free drinks

o in resort they for the entrance of the 4 person and then 4 free person. Qubo

Qubana
  Discount Pricing

o seasonal discount 50% off

 Bonus-Pack Pricing Strategy

o in medicines enervon-c x 34’s at the price of 30 you save 4 capsules

 Piggyback Pricing Strategy

o if you buy family size of toothpaste you can get a free toothbrush

 Brand Loyalty Pricing

o even though it is expensive you still buy it

 Clean Plate, No Left-Over Buffet

o if there no left-over’s food after you eat you can get a 50% discount. NO TAKE-

OUT, NO SHARING BUFFET

 Value For Money Pricing Concept

o Value meals life in MCDO, JOLLIBEE

 Product Line Pricing

o ex : The 500ml of perfume cost Php850.00,The 750ml of perfume cost

Php959.00, and the 950ml of perfume cost Php1050.00.

PROMOTION

Promotion is the design and management of a marketing mix element to inform,

persuade, and remind present and potential customers of the organization.

Promotion mix the combination of personal selling, advertising, sales promotion that

help the organization to achieve its marketing objectives.

5 Major Tools in the Promotion Mix

 advertising

 direct marketing

 sales promotion

 publicity

 personal selling

4. Building Customer Relationship

Customer relationship management- is the overall process of building and

maintaining profitable customer relationships by delivering superior customer value
and satisfaction.
 Customer Satisfaction- depends on the product’s perceived performance relative to a
buyer’s expectation.

Consumer-generated marketing- marketing messages, ads, and other brand

exchanges created by consumers themselves both invited and uninvited.

5. Capturing value from customer

o Creating customer loyalty and retention
Four Customer relationships Group
o Butterflies- potentially profitable but not loyal
o True friend- are both profitable and loyal
o Barnacle – are very highly loyal but not very profitable
o Stranger – lowest profit potential

THE CHANGING MARKETING LANDSCAPE

 The digital age (internet)