mktg1 Chap2

PREPARED BY:
MARK JOSEPH D. PILIIN

PRINCIPLES OF MARKETING
1
Principles
of
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Principles of Marketing
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FRUIT CAKE
_F _R _U _I T_ C_ _A _K _E
T E N F K A ?
R H C I B A U
Prepared By: Mark Joseph D. Piliin

LEVEL 1
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P R O D U C T
T C A D G I ?
O E R K U N P
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P R I C E
E Y P S R D ?
F C I R H K U
LEVEL 3
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P L A C E
C I C K E H ?
K P A P O R L
LEVEL 4
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P R O M O T I O N
R E P C O N ?
I A T O M L O
LEVEL 5
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M A R K E T I N G
N H E S R M ?
T A B I N K G
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9
Chapter 2
Company and Marketing Strategy
Partnering to build Customer
Relationships
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10
Companywide Strategic Planning
•Strategic planning is the process of
developing and maintaining a strategic fit
between the organization’s goals and
capabilities and its changing marketing
opportunities.
Steps in Strategic planning
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Companywide Strategic Planning 11
• The Mission statement is the organization’s
purpose, what it wants to accomplish in the
larger environment
• Market-oriented mission statement defines
the business in terms of satisfying basic
customer needs.
• A Vision statement is an aspirational
description of what an organization would
like to achieve or accomplish in the mid-term
or long-term future.
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•The business portfolio is the collection of

businesses and products that make up the
company.
•Portfolio analysis is a major activity in
strategic planning whereby management
evaluates the products and businesses that
make up the company.
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•Product/market expansion grid is a tool for

identifying company growth opportunities
through market penetration, market
development, product development, or
diversification.
1. Market penetration is a growth strategy

increasing sales to current market segments
without changing the product.
2. Market development is a growth strategy that
identifies and develops new market segments for
current products.
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3. Product development is a growth strategy

that offers new or modified products to existing
market segments.
4. Diversification is a growth strategy through

starting up or acquiring businesses outside the
company’s current products and markets.
•Downsizing is the reduction of the business

portfolio by eliminating products or business
units that are not profitable or that no longer fit
the company’s overall strategy.
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Planning Marketing 15
Partnering to Build Customer Relationship
•Value chain is a series of departments that
carry out value-creating activities to design,
produce, market, deliver, and support a firm’s
products.
•Value delivery network is made up of the
company, suppliers, distributors, and ultimately
customers who partner with each other to
improve performance of the entire system.
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STP Process & Marketing Mix 16
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STP Process 17
•Market segmentation is the division of a market into
distinct groups of buyers who have different needs,
characteristics, or behavior and who might require
separate products or marketing mixes.
Market segment is a group of consumers who
respond in a similar way to a given set of
marketing efforts.
•Market targeting is the process of evaluating each
market segment’s attractiveness and selecting one or
more segments to enter.
•Market positioning is the arranging for a product to
occupy a clear, distinctive, and desirable place relative
to competing products in the minds of the target
consumer.
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Marketing Mix 18
Marketing mix is the set of controllable tactical

marketing tools—product, price, place, and
promotion—that the firm blends to produce the
response it wants in the target market.
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Marketing Mix 19
Integrated Marketing Mix
PRODUCT PRICE PLACE PROMOTION
Variety List Price Channels Advertising

Quality Discounts Coverage Sales Promotion
Design Allowances Assortments Personal Selling
Features Payment Period Location Public Relation
Brand Credit Terms Inventory
Packaging Transportation
Services Logistics
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Managing the Marketing Effort 20
Marketing Analysis – SWOT Analysis

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Managing the Marketing Effort 21
•Marketing Implementation is the process

that turns marketing plans into marketing
actions to accomplish strategic marketing
objectives.
•Marketing Control is the measurement and
evaluation of results and the taking of corrective
action as needed to ensure the objectives are
achieved.
•Return on marketing investment(Marketing ROI)
is the net return from a marketing investment
divided by the costs of the marketing
investment.
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PREPARED BY:

MARK JOSEPH D. PILIIN

Prepared By: Mark Joseph D. Piliin

•The business portfolio is the collection of

•Product/market expansion grid is a tool for

1. Market penetration is a growth strategy

3. Product development is a growth strategy

4. Diversification is a growth strategy through

•Downsizing is the reduction of the business

Marketing mix is the set of controllable tactical

Integrated Marketing Mix

PRODUCT PRICE PLACE PROMOTION

Variety List Price Channels Advertising

Marketing Analysis – SWOT Analysis

•Marketing Implementation is the process

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