UNDERSTANDING MARKETING and CORE CONCEPTS

Presented by: Meshaal Alkhuzeem PCU MANILA March 20, 2012

Introduction
Marketing is all around us Businesses have two functions: innovation and marketing

Marketing
Is the process of planning and executing the conception,pricing,promotion,and distribution of ideas,goods,services to create exchanges that satisfy individual and organizational goals

Marketing Management
The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organization objectives

Reason why the need to study marketing management

- Bottom line is to understand the consumer given present condition

Key objectives in Marketing Management

Collection Targets Sales Forecast Production Forecasts Market Growth Targets Direct Contribution / Net Profit Targets Product Movement Governments Marketing Mix Targets

Key Marketing planning and activities

Establishing sales and marketing objectives Establishing financial objectives Formulating policies, procedures, plans and programs Firming up staffing/manpower deployment Providing for capital conditions and contingencies

Key objectives in marketing management

Establishing sales and marketing objectives Establishing financial objectives Formulating policies, procedures, plans and programs Firming up staffing/manpower deployment Providing for capital conditions and contingencies

Several Ways to differentiate marketing and selling

Marketing Concept Holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired expectations more effectively and more efficiently than competitors

Several Ways to differentiate marketing and selling

Selling Concept Holds that consumers will not buy enough of the organizations products unless the organization undertakes a large selling and promotions efforts. The selling concept is practiced hardest with unsought goods such as insurance, encyclopedias and funeral lots.

Marketing vs. Selling

SELLING MARKETING Emphasis on the product (goods Emphasis on customers wants and services). (desires, intentions, expectations). Company first makes the product Company first determines and figures out how to sell it (To customers wants and then figures target groups or segments). out how to make and deliver the product to satisfy those wants. Management is sales volume Management is profit oriented. oriented. Planning is short-run oriented in Planning is long-run oriented in terms of todays products and terms of new products, markets tomorrows market and the future. Stresses needs of sellers. Stresses needs of buyers.

9 Core concepts of Marketing

NEEDS WANTS DEMANDS VALUE & COST EXCHANGE TRANSACTION RELATIONSHIP PRODUCTS MARKETS

Need vs. Want

Need To be in want of; ought to have; be unable to do without; to be unnecessary; something that has to be a necessity; requirement; the lack of the useful or desired things Want To require; to wish to see; speak or use; something desired the condition of being without something desired; lack; to feel that one would like to have; wish for.

Human Need vs. Human Want

Human need is a state of felt deprivation of some basic satisfaction. Human wants are desires or intentions or expectations for specific satisfiers of human needs. These are the expression of needs and are shaped and attributed by ones culture, individual personality and such social and environmental forces as: schools, business firms, and communities, families, religion, socio-civic organization

Different types of human needs

Illustrative Category of Need/Want Example

NEED PRODUCT WANT *Generic or branded products *Local or imported products * Packaging: Foil, blister, loose, tetra packs, bottled or canned *Taste: Bitter, sour, sweet or salty. *Size: Pint, gallon, liter, ounce, ml, or cc, mg, g, small, medium, large. *Color: blue, black or red or combination *Scent: Ilang-ilang, champaca, waling-waling, gumamela, denbrobium or Vanda Sanderiana

Practical example of needs and wants

Particular Need Want

Hunger

Food

Chinese: Noodles, siomai, tikoy butchi Americans: Fries, hamburgers, muffins Japanese: Sushi, sashimi, tempura, teriyaki Filipinos: Rice-intensive meals: kare-kare with bagoong: Bicol Express

Demands
Demands
are wants for specific products that are backed up by an ability to pay and willingness to buy them. Wants become demands when supported by purchasing power authority; to ask to know or to be told; a claim; a desire and an ability to buy; the quantity of a commodity wanted at a particular price.

Demand is to ask for as a right, to ask for with

Value & Cost Value is the desirable worth of a thing; intrinsic

worth; utility; the rate at which a commodity is potentially exchangeable for others; a fair return of service, goods, etc; the ratio of utility to price; market price; attributed or assumed valuation.

Cost

is the equivalent amount to obtain the product. The intended buyer will consider the products value and price before making a choice

Exchange
Exchange is the act of obtaining a desired product from someone by offering something in return. - The exchange process is work. - Sellers have to search for buyers ; identify their needs and wants and satisfy them

5 ways to satisfy the exchange process

1. There are at least two parties; the buyer & the seller. 2. Each party has something that might be of value to the other party 3. Each party is capable of communication, commitment and delivery 4. Each party is free to accept or reject the offer partly or completely. 5. Each party believes it is appropriate or desirable to deal with the other party , any place and any time.

Transaction
1. When an agreement is arrived at, transaction takes place. 2. The basic unit of exchange and consists of a trade of values between two parties , and there are contracts to support and enforce compliance of the transactions 3. Involves several dimensions 4. The carrying on of any kind of business; any event or situation that is determined by a persons perception or impression or participation rather than external factors ; a record is kept of ever transaction of the firm

Transaction (.continued)
5. Something transacted, especially a business deal; to do business; to carry through; to accomplish 6. The doing of any business affair ; proceedings; reports of proceedings of societies. 7. When producers sell or transact business with distributors, dealers, wholesalers, retailers, then to final consumers. In all these, there are mutual agreements reached between two parties 8. The transaction functions involve buying products and reselling them to customers, as well as incurring risks of stocking these products in inventory

Relationship Marketing
Smart marketers try to build up long-term, trusting , win-win relationships with valued customers, distributors, dealers, and suppliers , accomplished by promising and delivering high quality products, good service, and fair prices to the other parties over time.

Products
People satisfy their needs and wants with goods and services. Thus, a product is anything that can be offered to a clientele to satisfy a need or a want offering, satisfiers or resources that are capable of delivering satisfaction of a want or a need.

Types of Products
1. 2. 3. 4. 5. 6. 7. Physical Objects Places Activities Persons Organization Idea Service

The 5 levels of a Product

1. 2. 3. 4. 5. The core benefit Generic Product Expected Product Augmented Product The Potential Product

3 Groups of Products
1. Non-durable Goods 2. Durable Goods 3. Services

Market
A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange t]o satisfy that needs and wants.

THE NEW MARKETING MIX

The 4 Ps & 4Cs
Marketing Mix Place

Product

Customer Solution

Convenience
Price Promotion

Customer Cost

Communication

Key Elements of the Marketing Mix

SATISFYING OUR CUSTOMERS DELIGHTING OUR CUSTOMERS SURPRISING OUR CUSTOMERS

Marketing Plan
Business Plans Master Action Plan OPLAN Marketing Battle Plan Game Plan Business Bible Corporate Plan Master Blue Print in business

9 Expectations of planning in marketing:

1. A basic managerial function 2. Precedes all other functions 3. Involves anticipation of many threats and opportunities 4. Dynamic process of thinking 5. Must be S.M.A.R.T 6. Can be arranged in an hierarchy 7. Involves several steps 8. Simplifies the work of managers & supervisors 9. Act as yardsticks of performance evaluation

Hierarchy of plans
MISSION/PURPOSE OJECTIVES STRATEGIES

POLICIES PROCEDURES & RULES

MARKETING PLAN

Key Considerations in Marketing Planning

S.M.A.R.T

Marketing
INTERNAL FACTORS
Objectives Strategies Programs Courses of Action

EXTERNAL FACTORS

TARGET MARKET

The Market Audit Planning Guideline

1. Where are we? 2. Why are we there? 3. Where do we want to be 4. When do we want to achieve these goals? 5. How do we get there? 6. Who will do what? 7. What resources will it take? 8. Can we do it? 9. Are we getting there?

4 Reasons for Planning

1. To ensure early achievement of objectives at least cost 2. To offset uncertainty 3. To emphasize well-defined objectives 4. To allow managers enough rope to hang themselves (Freedom to check progress along the way).

3 levels of goals
1. Strategic Goals 2. Tactical Goals 3. Operational Goals

8 major areas of strategic goals

1. 2. 3. 4. 5. 6. 7. 8. Market standing Innovation Human Resources Physical Resources Financial Resource Productivity Social Responsibility Profit Requirements

3 types of Goals
1. Business Goals 2. Improvement/ Problem Special Project Goals 3. Training goals

The most important thing about a goal is HAVING ONE!!!