Lecture01.docx

MARKETING  Marketing is the activity, set of institutions, and processes for creating communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (AMA)  The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.(Kotler)  Marketing is the process of determining the needs and wants of consumers and being able to deliver products that satisfy those needs and wants.

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 Marketing is the delivery of customer satisfaction at a profit.

MARKETING PROCESS

Understanding the Marketplace and Customer Needs FIVE CORE CUSTOMER AND MARKETPLACE CONCEPTS: (1) needs, wants, and demands; (2) market offerings (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets. Needs - states of felt deprivation. Wants - the form human needs take as they are shaped by culture and individual personality.

Demands - human wants that are backed by buying power. Market offerings - Some combination of products, services, information, or experiences offered to a market to satisfy a need or want Marketing myopia - The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Customer Value and Satisfaction • Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly. • Satisfied customers buy again and tell others about their good experiences. • Dissatisfied customers often switch to competitors and disparage the product to others. Exchange is the act of obtaining a desired object from someone by offering something in return. Marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences involving a product, service, idea, or other object. Beyond simply attracting new customers and creating transactions, companies want to retain customers and grow their businesses. Marketers want to build strong relationships by consistently delivering superior customer value. Market - The set of all actual and potential buyers of a product or service. Designing a Customer-Driven Marketing Strategy Marketing management - The art and science of choosing target markets and building profitable relationships with them. What customers will we serve (what’s our target market)? How can we serve these customers best (what’s our value proposition)? ROLE OD MARKETING 1. As a career, a profession -advertising -marketing research

-personal selling -wholesaling Marketing Research - is the function that links the consumer, customer, and public to the marketer through information--information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyses the results, and communicates the findings and their implications. (Approved October 2004) Personal Selling - Is where businesses use people (the "sales force") to sell the product after meeting face-to-face with the customer. The sellers promote the product through their attitude, appearance and specialist product knowledge. They aim to inform and encourage the customer to buy, or at least trial the product. Wholesaling - is the activity of buying or selling goods in large amounts, especially in order to sell them in shops or supermarkets. Compare retailing. RETAILING retail means that you, the product manufacturer or producer, sell your product directly to the consumer. Selling wholesale means you typically sell your product in bulk quantities to a “middle man” who in turn sells it to the consumer (i.e. other retailers). 2. Standard of Living -by bringing efficiency, convenience, technology, within our reach. 3. Economic Stability -more sales, more profit move the wheels of economy-production, employment, capital 4. Employment GOALS OF MARKETING 1. building brand awareness

Marketing primary influences what the product or service is trying to project in the minds of the consumers and how they can relate to the brand. It increases the retention of the brand and the product, resulting in brand awareness. BRAND – a symbol, logo, words or a combination of these elements that a company uses to distinguish its product or services from others. BRAND AWARENESS – is the extent to which a brand is recognized by potential customers and is correctly associated with a particular product or service 2. Supporting high sales lead volume LEAD VOLUME – is the number of sales leads that ultimately be converted into customers. SALES LEAD – is a potential customer who is interested in the product. 3. Establishing thought leadership Joel Kutzman defined Thought Leadership as a person who has “new important ideas that are worth sharing and that have real application” These fresh ideas can be in the form of new product or new method of teaching. 4. Boosting sales Production efforts by conducting marketing strategies will increase sales and profitability. 5. Increasing brand engagement The ultimate goal of marketing to build and maintain lasting relationship with customers. Effective brand management is evident when customers feel guilty when they switch to another brand. MARKETING APPROACHES Traditional Marketing  Traditional marketing is an umbrella term that covers the wide array of advertising channels we see daily. These may include print

media, billboard and TV advertising, flyer and poster campaigns and radio broadcast advertising. Contemporary Marketing  Contemporary marketing theories include Co-Creation. This theory suggests creating a bridge between customer and business through gamification. A practical example would be attracting customers through social media content relevant to their needs or writing article blog posts that have useful information.  -It is usually associated with for-profit business organizations like San Miguel Beer, Jollibee, Mang Inasal, Smart, Nokia, BPI and Robinsons. Co-Creation  It is the process where brands and consumers work together to create, better ideas, products.  While brands steer product innovation, customers are at the head of the table. MARKETING PHILOSOPHIES 1. Product concept or Philosophy- if product performance is given priority. 2. Production philosophy- The company value the importance of the availability of products at all times with a reasonable price. 3. Selling Philosophy- where firms hire marketers or sales people to do aggressive marketing for the firms product or services. 4. Societal Marketing Concept- firms look first into the welfare of society in general and deliver their offering in a way that satisfies their market. 5. Marketing Concept- firms determine the needs and wants of their potential market. TRADITIONAL APPROACHES I. PRODUCT OR COMMODITY APPROACH - Process on how to market a product, group of products or service

II. INSTITU-TIONAL APPROACH - Provides a useful analysis of the nature of operations, evaluation and function of a particular institution such as producers, wholesalers, retailers, and various agencies. III. FUNCTIONAL APPROACH - Consists of activities as research product planning, development, pricing, advertising, sales promotion, standardization, distribution and others CONTEMPORARY APPROACHES I. MARKETING MIX (4P’S) Marketing success= desirable product + acceptable price + effective promotion + right place II. CONCEPTUAL APPROACH - Studies ideas of marketing rather than activities Consumer is King III. HOLISTIC APPROACH - Based upon the understanding that activities or processes are interdependent upon other activities or processes Functional, commodity, institutional, managerial, social, comparative, 4P’s, conceptual approaches into one comprehensive whole IV. MARKETING MANAGEMENT - Defines it as analysis, planning, implementation, and control of programs designed to bring changes in the target market for the purpose of achieving organizational objectives. 1. Conventional Task - - tries to change people’s wants rather than serve their wants 2. Stimulating Marketing - trying to create a liking for something of which he has no knowledge 3. Develop Marketing - persuading consumers that new product is a substitute for something 4. Remarketing - rebuilding interests in the stock market in the face of a tight money situation.

5. Synchromarketing - changing in the pattern of demand to match the time pattern of supply 6. Maintenance marketing - maintaining sales against the erosive forces of competition 7. Demarketing - trying to reduce demand in a temporary or permanent basis 8. Countermarketing - trying to destroy the demand or interest in a particular product or service V. MACRO-MARKETING - Looks at the economy’s entire marketing system to see how efficient and fair it is VI. MICRO-MARKETING - Examines the individual firm within the economic system: its operations, objectives, functions and problems VII. SOCIAL CONCEPT - Depicts marketing as a social institution rather than merely as a business activity or economic process VIII. COMPARATIVE MARKETING SYSTEM - - Recognizes existing environmental differences, marketing within different countries and between them Other names: World marketing international marketing international trade national marketing foreign marketing