MARKETING

- Marketing is often referred to as the

“lifeblood” of every business.
- Is a form of communicating or promoting value
of a product, service, or brand to the
consumers.
- The “by word of mouth” marketing may
be the simplest, oldest, and most natural way
of marketing a service or a product for profit
and non profit purposes.
*The American Marketing Association defines
marketing as “ the activity, set of institutions, and
process for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.”
*The Philippine Marketing Association defines
marketing as a “science and a profession guided
principally by the universal principles of ethics,
corporate citizenship, and corporate
responsibility.”
 GOALS OF MARKETING
1.) Understand the market it’s consumers,
and satisfy their changing needs and wants.
2.) Introduce and innovate products and
services that improve human condition and
the quality of life.
3.)Design and implement effective customer-
driven marketing strategies.
4.)Develop marketing programs that deliver
superior value to consumers.
 GOALS OF MARKETING
5.)Build and maintain mutually beneficial
and profitable customer relationships.
6.)Capture customer value to create
profits.
7.) Promote value transactions with full
regard to society’s well being.
 The Marketing Process
The Situation Analysis Marketing Strategy
• Microenvironmental Formulation
• Macroenvironmental • Market Segmentation
• The Market • Target Market Selection
• Customers • Value Proposition
• Competition • Product Positioning
• Strengths, weaknesses,
opportunities, and
threats

Implementation and Control Marketing Mix Decisions

• Implementation • Product
• Monitoring • Place
• Marketing Mix Adjustments • Price
• Promotion
Marketing Products
Products or goods are physically tangible items. As such, they are
generally perceivable by the human senses and can, therefore, be
inspected prior to purchase.

Product Levels Formal Product

- Features Price - Price
- Styling - Color
-Others

Core or Generic Product

Augmented Product
-Credit Terms -Warranty
-Installment Returns -Service
-Installation -Repairs and Maintenance
-Others
Core or Generic Products
It can be defined as the purpose for which product was
created. For example, the core or generic function of
wristwatch would be “to tell time.”
Formal Product
The Second Level of Products includes factors that could
effectively differentiate automobiles manufactured by
one company over those manufactured by others with
the same core or generic function.
Augmented Product
This types of products/goods, particularly those that are
very expensive and have long service lives.
 CLASSIFICATIONS OF PRODUCTS/GOODS
ACCORDING TO USE
Consumer Goods are goods that are purchased from
consumptions.
Industrial Goods are purchased in order to make other
goods to serve as a raw material or input in the production
of other goods.
ACCORDING TO DIFFERENTIATION
Undifferentiated goods are products whose physical
characteristics are so identical, that it would be difficult, if
not possible.
Differentiated Products are varied in their characteristics
and features that they are readily distinguishable from one
another.
ACCORDING TO DURABILITY
Consumables is a product whose benefit can be
only used by a consumer for only a short period
of time, sometimes on a few minutes.
Semi-Durable provides benefits to the consumers
for a longer period of time, usually spanning
several months.
Durables are products that are manufactured to
last a long time. They are capable of providing
consumers with years of beneficial use.
ACCORDING TO TYPE
Convenience goods are products that purchased
frequently, are usuallly inexpensive ,and do not require
much purchase effort and evaluation.
Shopping goods, on the other hand, are purchased less
frequently than convenience foods, are relatively more
expensive, and require some amount of information
search and evaluation prior to purchase.
Specialty goods, are goods that require unusually large
effort on the part of consumers to acquire.
Unsought goods, are goods that consumers seldom
actively look, rather than desire.
Marketing Services
Services are generally considered more difficult to market due to it’s
four major attributes.
• Intangibility - Physical products are tangible. As such, they
can be inspected by consumer prior to purchase. On the
other hand, services are intangible. It would, therefore not
be possible to “sample” a lawyer’s legal skill or a doctor’s
ability to handle a surgical operation. This is the first reason
that makes the marketing of service difficult.
• Variability – Because service are performed by human
beings, no service provider can render the same service
exactly the same way every single time. An OB-Gyne
likewise can’t perform ceasarian both sessions. If physical
products were variable, it is certain that a disturbing level
of purchase anxiety would be experienced by customers.
• Inseparability- Because service are rendered by
people, the service must be present each and every
time the service is provided. Services are rendered
and consumed and simultaneously. “consumed” by a
client. As a lawyer gives legal advice to a client, legal
service are being “produced” and simultaneously
“consumed”.
• Perishability- Unconsumed services can’t be sored or
warehouse. When a 40 rooms boutique hotel with a
restaurant on it’s ground floor operates in a particular
day, unconsumed or unused ingredients for food
production, unsold bottle of soda, or unused coffee
beans can be stored, available for use or sale the
following day.
 NEEDS, WANTS, and DEMANDS
Needs are defined as physiological necessities required
for human survival.
Wants, are more psychological, indicating preferences
that can improve the consumer’s life condition.

Market and Market Demand

Market is defines as a group of individual and
organizational customers who have both the willingness
and financial capability to purchase particular product
or service.
Market Demand is the total demand of all potential
customers to a specific product or service over a specific
period in a specific market.
Measuring Market Demand
Primary Demand refers to the total demand of all brands
of a particular service or product.
Selective Demand is the demand for a specific brand of a
product or service.
Potential, Latent, and Current Demand
Potential Demand is defined when there is no demand yet
for a particular product or service but there a exist a
market with sufficient financial capability to purchase.
Latent Demand results when a customers in a market are
unable to satisfy specific desires because there exist no
product/service in the market that can satisfy them.
Current Demand is defined as the number of people of a
particular market at present that would actually purchased
the product or service offered.
 Utility, Value, and Satisfaction

Utility refers to the total satisfaction consumers

can receive from the consumption of a product or
a service.
Value refers to the value customers place on a
product or service.
Satisfaction is the measure of how well customer
expectations from a purchased product or service
have been met.
Customer-Perceived Value
Quantitative difference between the expected benefits
and costs of a particular comparison to a similar product
or service.
Customer Value Proposition
Comparison of the benefits offered by a company’s
product to it’s customers in relation in the amount it is
asking to pay. Customers always ask question: “Pangit
ba ako? Kapalit-palit ba ako?Charr “what’s in it for
me?”
Competition
A competitor is any company in an industry or a similar
industry that offers a similar product or service.
 Levels of Competition
Desire Competitors “What desire I want to satisfy?
- Eat - Read
- Text - Drink
Generic Competitors “What do I want to eat?”
- Sandwich - Pasta
- Dimsum - Chicken
Form Competitors “What kind of sandwich?”
-Chicken - Cheese
-Hotdog - Hamburger
Brand Competitors “What kind of Hamburger
sandwich?”
-Wendy’s -McDonald’s
-Jolibee - Burger King
The Concept of Market Share
Market Share, expressed in percentage, is the
share of a company’s revenues in the total
revenues of it’s industry in a particular year.
Market share can be calculated using the following
area:

Company A’s market share= Company A’s annual revenue x 100

Total revenue of Company A’s industry
 Traditional Approaches to Marketing
1.) The Production Concept
Product concept assumes that customers prefer
products that are inexpensive, affordable, and
widely available.
2.) The Product Concept
Product concept assumes that customers will
always prefer and patronize products of high
quality.
3.) The Selling Concept
Selling concept emphasizes aggressive selling
and promotional efforts.
 Contemporary Approaches To Marketing
1.) The Marketing Concept
It considers the needs of both the customer and the
product offered.
2.) The Relationship of Marketing Concept
It believes that all marketing activities are for the
purpose of establishing, maintaining, and
strengthening meaningful long-term relationships with
customers.
3.) The Social Marketing Concept
It is similar to the marketing concept. It goes further
to include considerations that protect the customer’s
well being and interest.
 END 
-Think about what
could go right <3