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Module 1: The Value of

At the end of the module 1, students are expected
to explained:
 the meaning of marketing;
 the basic concepts of marketing;
 the importance of marketing;
 how the different marketing philosophies vary;
 the importance of planning in an organization;
 how the strategic planning differs from marketing
Jollibee VS McDonalds
Chapter 1 An Overview of Marketing
All over the world, a huge multinational company reigns supreme in
the fast food industry, but in the Phl., it is the visionary & highly
esteemed company called Jollibee that is dominant.
Filipino United Laboratories, better known as UNILAB, owner of
Biogesic, Neozep, Alaxan has a market share of 20% of the pharma
In processed meat, its Purefoods, in ice cream, its selecta
Happee toothpaste, owned by Cecilio Pedro, has survived in the
toothpaste industry
In the banana catsup, its UFC
Procter and Gamble’s Safeguard soap, Nestle’s Bear Brand milk and
of course San Miguel Beer
All these brand are number one in their own industry, why? Because
of marketing.
The Value of Marketing
Creating customer value and
 satisfaction

2 goals of Marketing:
1.To attract new customers
2.To retain and grow current customers by
delivering satisfaction
Customer Value


The relationship
between benefits
and the sacrifice
necessary to obtain
those benefits.

Customer Value Requirements

 Offer products that perform

 Earn trust
 Avoid unrealistic pricing
 Give the buyer facts
 Offer organization-wide commitment in
service and after-sales support
 Co-Creation

Customer Satisfaction

The customers’
evaluation of a good or
service in terms of
whether it has met their
needs and expectations.

Building Relationships

A strategy that focuses
on keeping and
Relationships with
current customers.

Building Relationships

 Customer-oriented personnel

 Employee training programs

 Empowered employees

 Teamwork

Why do we need to learn
Marketing ?
Can you sell these products Easily ?
How about these products?
How about them ?
Can you Market them?
How about Their films ?
Why Study Marketing?
 Plays an important role in society

 Vital to business survival, profits

and growth

 Offers career opportunities

 Affects your life every day

Why Study Marketing?

“Marketing is too important

to be left to the
marketing department.”

---David Packard
Why Study Marketing?
• Professional Selling
 Everything must be • Marketing Research
made as simple as
possible but not one • Advertising
bit simpler • Retail Buying
--- Albert Einstein • Distribution
 Fastest route up the • Product Management
corporate ladder • Product Development
• Wholesaling
What is Marketing?
What is Marketing?
 Personal Selling?

 Advertising?

 Making products available in stores?

 Maintaining inventories?

All of the above plus more

What is Marketing?

A Philosophy A Set of Activities,

An Attitude
A Perspective
A Management
Orientation Promotion

Chapter 1 Version 3e 22
Evolving Views of
Marketing’s Role



The customer as the controlling function and

marketing as the integrative function
What is Marketing?

Kotler and Armstrong (2001)

Marketing is a social and managerial process

whereby individuals and groups obtain what they
need and want through creating and exchanging
products and value with others.
What is Marketing?

Pagoso and Dela Cruz (2000)

Marketing is a total system of business activities

designed to plan, price, promote, and distribute
want – satisfying products, services, and ideas to
target market in order to achieve organizational
What is Marketing?

Josiah Go and Chiqui Escareal

Marketing is a process of continuously and

profitably satisfying the target customer’s needs,
wants, and expectations superior than
The Basic Concepts of Marketing

 Human Needs – required by human,

situations in which something is missing and
has to be satisfied
 Human Wants – unfulfilled needs, preferred
products of an individual that will satisfy his
The Basic Concepts of Marketing
The Basic Concepts of Marketing

Demand It involves one’s need or want for

products backed up by his capacity to
purchase products.

Exchange Involves getting something in return

Presence of terms and conditions,

Transaction transaction date, place of transaction,
amount involved and other agreed
upon conditions.
The Concept of Exchange
At Least Two
Parties Something of

Necessary Ability to
Conditions Offer
for Exchange
Freedom to
Accept or Reject
Desire to Deal
With Other Party
The Basic Concepts of Marketing
Refers to people patronizing or
already using the company’s products
or availing its various services. Also
include future users of the product.
Consumer market – purchases
products for its own personal

Industrial market – purchases products

in order to produce another product
The Basic Concepts of Marketing
Anything that a buyer buys. Anything
that a company offers to satisfy the
market’s needs or wants.

Tangible products – physical products

Services– any activity or benefit that

one party can offer to another that is
essentially intangible and does not
result in the ownership of anything.
The Basic Concepts of Marketing
Marketing Mix Product

Promotion 4P’s Price

Marketing Requires
Product, Price, Place, Place
and Promotion
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Mix
 Internal environment that a firm can directly manipulate
and control
 Variables that the firms blend together to produce the
response it wants in the target market
 Includes product, price, place, promotion and people.

1. Product – refers to the tangible commodity or

intangible services that the company offers for sale to
the consumers. Includes the warranty attached to the
2. Price – refers to the amount of money customer must
pay to obtain the product. Also included are the
discounts, allowances and credit terms attached to the
product. Ronald Reagan T. Alonzo
2/22/2018 Principles of Marketing 34
The Marketing Mix cont….
3. Place - includes company activities that make the
product available to the target market and this can be
done thru the use of channels of distribution that
provides physical link bet the seller and the buyer,
4. Promotion – activities that communicate the merits,
features and advantages of the product and persuade
that target market to buy it.
3 ways
 Personal Selling – face to face thru the use of salesman
 Mass Selling – persuasion of a large numbers of buyers to buy
the firm’s products, this is nonpersonal presentation of the firms
products thru advertising and publicity
 Sales Promotion – incentive given to buyers for buying eg. 30%
discount, buy one, take one
Ronald Reagan T. Alonzo
2/22/2018 Principles of Marketing 35



Marketing Philosophies
Philosophy Key Ideas

Product Produce the product and find interested buyers.

Product performance is given priority.

Production Value the importance of the availability of products at

all times with a reasonable price

Focus on aggressive techniques for

Selling overcoming customer resistance (inside – out concept )

Focus on satisfying customer needs and wants

Marketing (outside – in concept)

Focus on satisfying customer needs and

Societal wants while enhancing individual and
societal well-being
Benefits of Marketing
Creates employment
Helps develop more and better products
Provides better profit

Improves the quality of life

Produces more entrepreneurs

Contributes to economic development

Planning the Business Enterprise
Considerations in Business Planning

1.What business to enter

2.Who will be the target market
3.How to beat competitors
4.Where to get the capital needed
5.To purchase or not to purchase
6.How to better serve its market
Importance of Business Planning
Through planning one can:
1. Apply for a loan
2. Determine the needed capital
3. Evaluate actual performance against set targets
4. Lessen impact of business failure
5. Lessen risk of doing business
6. Minimize mistakes
7. Minimize or eliminate
8. Result in better preparedness for sudden
9. Lead to better coordination among different
departments in the company
10.Program activities in advance
Strategic Planning and Marketing
A process of developing and maintaining a
Strategic Planning strategic fit between the organization's goals
and capabilities and its changing marketing

1. Mission Statement – stipulates what the firm values and its

reason for existence. This is cascaded down to all the employees
and will serve as their guide in the performance of their tasks.
2. Mission statement is converted into quantifiable set of
objectives for the different management levels to achieve.
3. Business portfolio – collection of businesses and products that
make up the company. Includes the current business collection
and is the basis for deciding which among the products offered
by the company will be phased out or will receive assistance in
terms of investment.
Strategic Planning Vs Marketing Plan

Involves deciding on
Strategic marketing strategies that
Planning will help a company achieve
its overall strategic

Includes the executive summary,

Marketing Plan current market situation ,
environmental analysis,
marketing objectives, marketing
strategies, action programs,
budgets, and controls.
Parts of a Marketing Plan
1.Executive Summary
2.Current marketing situation
3.Environmental analysis
5.Marketing Strategies
6.Action programs
Process of Strategic Planning
1. Defining the Company’s Mission

Mission – the company’s statement of purpose. It describes the company’s

reason of being or what the company wants to achieve.
- is a reminder of the kind of business the company has, the
customers the company is serving, and what the company business should

Characteristics of Good Mission Statement:

1. Market oriented
2. Based on distinctive competence
3. Motivating
4. Fits the market environment
Process of Strategic Planning
2. Setting of Company’s Objective
Consists of detailed supporting statements or objectives intended for the
different management levels to achieve.

Different management levels, as their effort or way of supporting the

objectives that were already set, must develop marketing strategies.

Characteristics of Objectives:
1. S-Smart
2. M-Measurable
3. A-Attainable
4. R-Realistic
5. T-Time bound
Process of Strategic Planning
3. Designing the Company’s Business Portfolio
2 ways to assess business portfolio

1. Analysis of the current portfolio of the company –

identification of the various businesses that make up
the company classified as strategic business unit

Is a single business or collection

of businesses that has a distinct
mission, a responsible manager
and its own competitors and
that is relatively independent of
other business units.
Process of Strategic Planning
3. Designing the Company’s Business Portfolio
2 ways to assess business portfolio
1. Current business portfolio Analysis
Process of Strategic Planning
3. Designing the Company’s Business Portfolio
2 ways to assess business portfolio

2. Development of the company’s growth strategy

- there is a need for the company to determine
which among the SBUs will be given support and to
what extent.

- a company can evaluate its current products or

portfolio with he growth-share matrix or also known as
the Boston Consulting Group (BCG Matrix).
Process of Strategic Planning
3. Designing the Company’s Business Portfolio
2 ways to assess business portfolio
Process of Strategic Planning
3. Designing the Company’s Business Portfolio
Growth Strategies - Product / market expansion grid
Product/ market expansion grid is portfolio-
planning tool for identifying company growth
opportunities through market penetration, market
development, product development or diversification
Process of Strategic Planning
3. Designing the Company’s Business Portfolio
Growth Strategies - Product / market expansion grid
Process of Strategic Planning
4. Coordinating Activities to Different
Functional Areas

The main focus here is to coordinate the marketing

resources and activities to different departments
within the company to achieve the set objectives and
strategies of the firm.