Module 1: Marketing Principles and Strategies Flashcards
The concept of marketing became fully developed during the Industrial Revolution in the
18th and 19th centuries
who define marketing
Kotler and Armstrong (2013)
“managing the customers profitably.”
marketing
“managing the customers profitably.”
marketing
meaning of marketing in its practical sense
without customers, marketing will be impossible.
Marketing is also the process of
CCDPS
conceptualizing
creating
developing
promoting
sustaining products and services
Following the process, marketers acquire
“desirable customers”
Another definition of marketing from The American Marketing Association
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.
should try to determine what buyers need or want,
Sellers
Another important definition of marketing that we need to remember:
“Marketing is the process of continuously and profitably satisfying target customer’s needs, wants and expectations superior to competition.”
Core Concepts in Marketing
- Customer Needs, Wants and Demand
- Market Offerings (Physical Products, Services and Experiences)
- Customer Value and Satisfaction
- Exchanges, Transactions and Relationships
- Markets
pertains to a feeling of deprivation. It includes basic physical
NEEDS
described in terms of objects that will satisfy needs, it refers to a particular preference of the person.
WANTS
it exists if the need or want is supported by the person’s purchasing power
DEMANDS
Market Offerings
-PRODUCTS
-PHYSICAL PRODUCTS
-SERVICES
anything that can be offered to a market for attention
PRODUCTS
any tangible products
PHYSICAL PRODUCTS
any activities or benefits that one party can offer
SERVICES
Aside from the tangible and intangible offering of many companies, they also focused on the marketing of
experiences
Customer Value and Satisfaction
CUSTOMER VALUE
PERCEIVED VALUE
CUSTOMER SATISFACTION
the difference between the values the customer gains from owning and using a product and the costs of obtaining the product.
CUSTOMER VALUE
customer choose product based on their perception about the product.
PERCEIVED VALUE
the extent to which a product’s perceived performance matches a buyer’s expectations.
CUSTOMER SATISFACTION
Exchanges, Transactions and Relationships
EXCHANGE
TRANSACTION
the act of obtaining a desired object from someone by offering something in return
EXCHANGE
a trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement and a place of agreement.
TRANSACTION
2 TYPES OF TRANSACTIONS
- Monetary transaction
- Barter transaction
Buying or selling goods and services using money as payment.
Monetary Transaction
Exchanging goods or services directly without using money.
Barter Transaction
the process of creating, maintaining and enhancing strong good relationships with customers and other stakeholders.
RELATIONSHIP MARKETING
composed of all people who buy the product, as well as those who could potentially purchase the product.
Markets
For marketing to occur, an _____ must happen
exchange
five eras of marketing
Production
Product
Sales
Marketing
Societal
Production era
prior to 1920s, Pile them high and sell them cheap
Product era
prior to 1950s, innovation is key to survival
sales era
prior to 1970s, creating advertisement and selling will overcome consumers’ resistance and convince them to buy
marketing era
since 1970s, Consumer is king
Societal era
Began in 1980s, long term survival only possible through social responsibility and ethics
production orientation—this approach requires a company to embark on mass production and distribution.
Production Era
Production era was perfected by
Ford Motor Company in the early 1950s
marketed one model design and made the car affordable for the majority of customers.
manufactures only one product in large quantities and fails to identify the number of customers who are willing to buy them ends up with surplus products.
marketing myopia (marketing short sightedness)
is the failure of managers to recognize the scope of their business
marketing myopia
product orientation – this approach is focuses on the product and its innovation
Product Era
best example for product era
Apple, iphone evolve since 2007
sales/selling orientation—a business philosophy assuming that consumers will resist purchasing nonessential goods if not convinced by the company’s sales force.
Sales Era
“creative advertising and personal selling are required to overcome consumer resistance and convince them to buy.”
Sales Era
marketing orientation – the customers’ preferences, needs and wants are prioritized. This approach is also known as
customer-centric approach.
Marketing Era
Attitude toward marketing is
consumer is king
societal marketing orientation – this is similar to marketing orientation except that concern for society’s well-being and the environment’s sustainability is prioritized as much as the customer’s preferences.
Societal Marketing Era
long-term survival is only possible through social responsibility and ethics
Societal Marketing Era
Societal This approach is also called
green marketing and the product is called green product
marketing is a process of
CCPD
Creating
Communicating
Pricing
Distributing
4 P’s in marketing
Product
Price
Place
Promotion
It refers to the physical good, a service, an idea, or experience that is intended to satisfy a consumer need or want
Product
It refers to the value placed by the customer, as well as the value the company gets as represented by the amount of money that is exchanged to obtain the product
Price
It relates to how and where the product can be obtained by the consumer and also called as distribution which involves the logistics of making the product available to the target market.
Place
It refers to communications developed by the marketer in order for consumers to get to know more about the product and be persuaded to buy it.
Promotion
the marketer should now determine the means of communicating the
product message
5 components of promotion
advertising
Public relations
selling
sales promotion
merchandising
to effectively inform and persuade the target market.
Advertising
to offer a positive image of the company and the brand, as well as promote an advocacy
Public Relations
to get the customers to buy
Selling
to convince customers to buy immediately
Sales Promotion
aims to extend advertising messages at the Point of Purchase (POP) by generating superior presence within the store.
Examples are store signs, posters, price tags, shelf takers and island displays.
Merchandising
To make the product affordable to the target market and reflect the value of benefits provided.
Price
Additional 3Ps for Service
Physical environment
Process
People
Place where service is performed; includes all touch points leading to the place (also tangibles such as parking, fire exits, even neighbor’s frontage or intangibles like smell, ambiance or status.)
Physical Environment
Procedures, flow of activities
Process
Members of the team who contribute to the delivery of the service
People
One of the key elements of a successful company is having a clear
vision
are aspirations that every company would like to pursue or the general direction that it wants to take.
main purpose
Goals
are statements of what results the company wants to achieve with its marketing efforts.
Marketing Goals
Characteristics of Effective Marketing Goals
CICA
Consistency
Intangibility
Comprehensiveness
Attainability
goals must be realistic
Attainability
management should exert to set goals that are consistent with one another
Consistency
the process of goal-setting must be _____. Simply it means that each functional area must be able to formulate its own goals
comprehensive
planners often confuse goals with strategies, objectives and even tactics. A goal is not an action the firm can take; it is an outcome of the organization wishes to realize.
intangibility
Reasons in Developing Marketing Goals
- Identifying the target market
- Increasing sales and profits
- Increasing brand awareness
- Increasing market share
- Countering competitive strategies
- Reputation of the company
- Increasing distribution channels
Common Marketing Goals
- To develop and maintain a profitable base of loyal customers.
- To develop products and services which contribute to the quality of life and promote environmental conservation.
- To understand customer’s behavior and communicate to them the marketing offerings.
- To support the other functional areas of business in achieving the company or corporate goals.
refer to the specific goals that can be measured in the short term
Objectives
are a brand’s defined goals. They outline the intentions of the marketing team
Marketing Objectives
who defined the 4 roles of marketing
Comstock, Gulati, and Liguori (2010)
four roles of a marketer
- Instigator
- Innovator
- Integrator
- Implementer
marketers serve as strategists who analyze current market trends
“think outside the box”
Instigator
marketers are tasked with researching the kind of product the customers need and ensure that the product developed not only meet customers’ expectations but also exceeds them.
Innovator
the marketer mediates between the interests of the company and the needs of the consumers
Integrator
The marketer ensures that the marketing strategy for the developed product is in place and implemented effectively.
Implementer
difference between old-generation customers and new-generation customers
Old-generation customers tend to be loyal to traditional products and it would take time for them to adopt new products associated with technology.
New-generation customers are younger and more open to new products and technologies.
the following contemporary marketing approaches
- Digital Marketing
- E-Marketing or Online Marketing
- Social Media Marketing
- Outdoor Promotion
- Mobile Promotion
- Telemarketing
- Events Marketing
- Sachet Marketing
DOSSMEET
it involves the use of digital technologies in presenting the product or service offerings of a company. For example, large screen monitors
Digital Marketing
this contemporary marketing approach utilizes the Internet to boost promotional and marketing efforts. This usually takes the form of company websites where promotional materials
E-Marketing or Online Marketing
specific use of social networking websites and relevant applications in promoting a company’s products and services.
Social Media Marketing
it involves displaying promotional materials for products and services outdoors.
billboards
Outdoor Promotion
it is a mobile advertising that uses signs and ads mounted atop taxicabs, product logos painted on the sides of buses or vans,
Mobile Promotion
it involves the promotion of products or services through unsolicited telephone calls to identified potential customers.
Telemarketing
it involves the hosting of a themed event that is especially tailored for the product.
Events Marketing
it is adopted to appeal to consumers who are cost-conscious and cannot afford to buy products in large quantities. The products are repacked in smaller sizes
Sachet Marketing
