Week 1

Melinda Sih, Director of The Etiquette School of Kansas City

MKTG 1Principles of Marketing

Roxanne Tan, MBA, ChE

Intr

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• Bachelor Degree in Chemical Engineering at the University of Santo Tomas in Year 2000

• Masteral Degree in Business Administration at the De La Salle University in Year 2010

• Working at Fairland Knitcraft Co. Inc. as a Garment Export Merchandiser and Marketing Specialist

• Working at Blue Ocean Chemtrade Inc as Business Development Officer for the construction industry

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g• COURSE DESCRIPTION

The Introduction to Marketing, its Philosophies, Strategies and Challenges today. It includes the marketing mix, basics of promotions, advertising, selling and customer satisfaction.

• COURSE OBJECTIVESAt the end of the trimester, the students are expected to understand, appreciate and apply the fundamentals of marketing

Prin

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Quizzes 25%Class Standing 50%Midterm Exam 25%

Midterm Grade 40%Quizzes 10%Class Standing 25%Final Project 25%

*Class StandingRecitation 40%Attendance 30%Quizzes/Assignments 30%

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• Marketing is working with markets attempting to actualize potential exchanges, a human activity directed at satisfying needs and wants through the exchange process. (Kotler)

• Marketing is a complex business process directed towards satisfaction of consumers’ present and future wants through supply of goods and services and in the end would reward those engaged in such activities. (Gomez)

• Marketing is the process in a society by which the demand structure for products and services is anticipated or enlarged and satisfied through the conception, promotion, exchange and physical distribution of such goods and services. (Carman and Uhl)

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• Marketing is a social process which directs and economizes flow of goods and services from producers to consumers in a way which effectively matches supply and demand and accomplishes the objectives of society. It is the performance of activities which seeks to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to consumer or client. (McCarthy and Perreault Jr.)

• Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want-satisfying products and services to present and potential customers. (Stanton)

• Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (Kotler and Armstrong)

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• Marketing is the task of creating, promoting, and delivering goods and services to consumers and businesses

• ProductAnything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

Marketable entities: goods, services, experience, events, persons, places, properties, organizations, informations and ideas

• ExchangeThe act of obtaining a desired object from someone by offering something in return.

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• NeedsAre basic human requirements

• WantsThe form taken by human needs as they are shaped by culture and individual personality

• DemandsHuman wants that are backed up by buying power

• MarketThe set of all actual and potential buyers of a product or service

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The Market Place

• Consumer Market• Determine targeted consumers, what need will

be met, and communicate brand positioning • Much of the brand's strength depends on

developing superior products and packaging and backing it with promotion and reliable service

• Business Market• Business buyers purchase products to make

profits • Business marketers must demonstrate how their

products will help customers achieve higher revenue or lower costs

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The Market Place

• Global Market• Product Standardization or Customization• Decide on what country to enter and how; adapt

communication and services to fit culttural practices of each country

• Nonprofit or Government Market• Need to price carefully as these organizations

have limited purchasing power• Much of the purchases call for bids, with the

lowest bid being favored, in the absence of extenuating factors

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SALES• results from satisfying customer's needs and

wants • for consumer goods determine where

purchase decisions are made, will be at store level or home level

• for direct selling, demand is created by recruiting and retaining sales people; goods are introduced on face-to-face product demonstrations

• business to business, the sales force is the primary source of awareness to introduce products directly to clients

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• New Users• Who uses the product or service?

• Extended Users• Who can still use the product or service?

• New Usage• For what purpose is the product or services

used?

• More Usage• When and in what occasions is the product

used?

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MARKET SHARE

• is the ratio of your brand's sales versus the total sales in your market

• firms must endeavor to improve their market shares profitability in good times and bad

• instead of directly attacking a strong leader in the market, companies usually enter underdeveloped market segment or assume a strong challenger position with in a particular niche

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PROFIT

• is an indispensable component for a firm to continuously satisfy its customers

• is a tangible manifestation of consumer confidence towards your company, your products and services - Konosoke Matsushita of national Panasonic Japan

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t • Defined as the art and science of choosing target markets and getting , keeping, and growing customers through creating, delivering, and communicating superior customer value

• Managing Customer Relationshipso Managing demand means managing customerso Company’s demand comes from two groups:

new customers and repeat customerso Cost to attract new customers (5x)o Losing entire stream of purchases / lifetime

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sMarketing activities should be carried out under well-thought-out-philosophy of efficiency, effectiveness and social responsibility

The PRODUCTION CONCEPT• This concept holds that consumers will

prefer products that are widely available and inexpensive

• Focus on achieving high production efficiency, low costs and mass-distribution

• This makes sense in developing countries where consumers are more interested in obtaining the product than its features

• It is used when the company wants to expand the market

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The PRODUCT CONCEPT• This concept holds that consumers will

prefer those poducts that offer the most quality, performance, or innnovative features

• Focus on making superior products and improving them over time

• The draw back is creating a Marketing Myopia which may overlook the growing competition

• Organizations may be looking into a mirror instead of looking out of the window

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The SELLING CONCEPT• This concept holds that consumers and

businesses, if left alone, will ordinarily not buy enough of the organization's products

• This concept assumes that consumers typically show buying inertia or resistance and must be coaxed into buying

• This assumes that organizations must undertake an aggressive buying and promotion effort to stimulate more buying

• "The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit." Sergio Zyman Coca-cola former vice president for marketing

• Often practiced by companies when they have over capacity

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The MARKETING CONCEPT• This concept holds that the key to

achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets

• Customer-centered, sense-and-respond philosophy; instead of hunting, marketing is gardening

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The MARKETING CONCEPT• Theodore Levitt of Harvard drew a perspective contrast

between selling and marketing• Selling focuses on the needs of the seller; marketing on

the needs of the buyer; • Selling is preoccupied with the seller's need to convert

product into cash; marketing with the idea of satisfying the needs of the customer

• Selling concept takes an inside-out perspective: starts with the factory, focuses on existing products and calls for heavy selling and promotion to produce profitable sales

• Marketing concept takes an outside-in perspective: starts with a well-defined market, focuses on customer needs, calls for coordinating activities that will affect customers, and produces profits by satisfying customers

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sThe 4 Pillars of the MARKETING CONCEPT

• TARGET MARKETo Market segmentation

• Make product offerings based on examining the demographic, psychographic, and behacioral differences among buyers

• CUSTOMER NEEDSo Responsive marketer

• find a need and fills ito Anticipative marketer

• looks ahead into what need customers may have in the near future

o Creative marketer • discovers and produces solutions

customers did not ask for but to which they enthusiastically respond

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s The 4 Pillars of the MARKETING CONCEPT

• INTEGRATED MARKETINGo Various marketing functions -Sales force,

advertising, customer service, product management, marketing research must work together

o Marketing must be embraced by other departments who must also "think customer“ External marketing - marketing directed at

people outside the company Internal Marketing – is the task of hiring, training

and motivating able employees who want to serve customers well

• PROFITABILITYo the ultimate purpose of marketing is to help the

organization achieve their objectiveso for private firms, the major objective is long-run

profitability o for nonprofit and public organizations, the major

objective is surviving and attracting enoug funds to perform useful work

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The CUSTOMER CONCEPT

• The organization collect information on each customer's past transactions, demographics and preferences to capture the larger share of each customer's expenditures and build high customer loyalty and focus on customer lifetime value

• This works best for companies that carry a lot of products that can be cross-sold, carry products that need periodic replacement or upgrading, and sell products of high value

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The SOCIETAL MARKETING CONCEPT

• This concept holds that the organization's task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the customer's and the society's well-being

• Calls upon marketers to build social and ethical considerations into their marketing practices

• Cause-related marketing is an activity by which a

company with an image, product or service to market builds a relationship or partnership with a "cause" or a number or "causes", for mutual benefit

Marketing Challenges Today

Customer Values and Orientation

Economic Stagnation

Environmental Decline

Increased Global Competition

Host of economic, political and social problems

Key Trends and Forces

Growth of nonprofit marketing

Colleges, hospitals, museums, churches and government organizations

Customers and employees


Rapid Globalization

Economy

Technical advances

Expand geographical coverage, purchasing and manufacturing

Sell and Buy

Global Networks/ Merging

Cultural Differences


The Call for more Ethics and Social Responsibility

Corporate ethics

Environmental developments


The new Marketing Landscape

E-business

B2C; B2B, C2C; C2B

Websites

Placing ads and building a profit model

Customer Relationship Marketing (CRM)

End of Day 1 Thank you . . . . .