Reviewer in Marketing

Marketing- set of institutions, and processes for creating, communicating, delivering

and exchanging offerings that have value customers, clients, partners and society.

-Not merely focused on selling or promoting a product

- Focuses on the value that their products can provide to the customers involved.
- Marketing is managing profitable customer relationships.

Goals of Marketing

1. Determine the needs and wants of the customers.

2. Satisfy these needs and wants.

Five Core Concepts of Marketing

1. Customer Needs, Wants, Demands

a) Need- pertains to a feeling of deprivation.

b) Want- particular preference of the person, as shaped by one’s personality and
knowledge.
c) Demand- exists if the needs and wants is supported by the person’s purchasing
power.

2. Market Offerings- serve to fulfill customers’ needs and wants.

a) Physical Products- tangible products

b) Services- intangible products
c) Experiences- provide fun and family bonding.

3. Customer Value and Satisfaction- a satisfied customer who finds value in a product
are likely to patronize it.

4. Exchange and Relationships- For marketing to occur, and exchange must happen.

P.S. the point of exchange is to foster a relationship.

5. Market- composed of all the people who buy the product as well as those who could
potentially purchase the product.

Target Market- a particular segment of the market.

II. Approaches to Marketing

1. Production Era- products would sell themselves; the firm’s task is to focus on
production efficiencies and distribution.

2. Sales Era- competition became more intense; firms started to use more aggressive
approaches; and sales become an important function of the company.

3. Marketing Concept Era- discovering what customers need, and then develop the
product to address this need.

4. Customer Relationship Era- more focused on consistently satisfying the consumer

need and wants of their target. Customers is considered the central to all of the
company’s marketing efforts.

Marketing Management and Orientations

1. Production Orientation – focus on production and distribution efficiencies.

2. Product Orientation - customers are more interested in products that have high
quality, provide the best performance, and have innovative features. (focus on
continuous product development).

3. Selling Orientation – apply on the products that are unsought in nature. More
aggressive selling and promotional activities are required.

4. Marketing Orientation- importance of understanding the customers need and wants.

~ satisfy these needs or wants in a way that customers should find superior to other
products.

5. Societal Marketing Orientation- increasing awareness of sustainability and the

fragility of the earth’s environment.

Satisfy the needs and wants without harming the environment.

Marketing Mix: Thr Four Ps (considered as controllable factors)

1. Product - can be a physical good, a service, an idea, or experience that is intended

to satisfy a consumer need and want.

2. Price – the value placed by the customers.

It may also refer to the cost of availing of the product such as time spent, distance
traveled, or the inconvenience entailed.

3. Place – how and where the product can be obtained.

4. Promotion – communications developed by the marketer.

CHAPTER 2: CUSTOMER RELATIONSHIPS: RELATIONSHIP MARKETING

I. Customer Value, Satisfaction and Relationships

1. Customer Value – the unique combination of benefits received by targeted

buyers.

Value Proposition – seen as the brand’s promise to the customers to provide a set of
benefits that would satisfy their needs or wants.

1.1 Alternative Ways for Creating Value

A. Increasing the Benefits

- adding something to the product that customers would find meaningful, important,
useful and unique.

 Best Price – cater to price-sensitive markets.

- would appeal to customers that have to work within a budget and
choices are limited because of financial considerations.
- Example: PureGold and Cebu Pacific
 Best Product – cater customers who are more selective in terms of what they
look for and have the financial sources to satisfy their discriminating tastes.
- Believes that the quality of the product is important.
- Example: Apple and Rustan’s
 Best Service – cater customers would like to be well taken care of.
- Find value in services that cater to their special needs.
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B. Reducing the Sacrifice – making it easier for the customers to enjoy the benefits that
the product would provide. (ex: on – time home deliveries, installment payment
schemes and pop – up stores)

2. Customer Satisfaction – the customer is delighted with the purchase if the

product’s perceived performance meets or exceeds expectations.

3. Customer Relationship - marketers even try their best to go beyond just

loyalty and work hard to earn the love of their existing customers.

II. What is Relationship Marketing?

- The development of a marketing program with the right marketing

mix that seeks to establish closer links with the customers.
Two Key Elements of Relationship Marketing:

1. Promise

2, Trust

Types of Relationship Marketing

1. Experiential Marketing – allows customers to experience the brand,

usually by utilizing touch points and targeting multiple senses.

- combination of brand education and entertainment.

- Example: special events, contests, samplings, online activities

2. Permission Marketing – encourages the consumers to be a part of a

long term marketing campaign.

- Companies must provide the consumers with the option to discontinue

participation at any time by unsubscribing to the program.

3. One-to-One Marketing – focuses on the individual consumer with the

company customizing their products and services for that individual.

Customer Relationship Management – process of identifying

prospective buyers, understanding them intimately, and developing
favorable long-term perceptions of the organization and its offerings.