BA 170 Session 2 – August 20, 2019

Philosophies of marketing  Depends on the market/customers, what does the market prefer?
Helpful to a company so that they would know what would give them the value from customers (loyalty)
- Production: consumers favor high availability and affordability
- Product: favor best quality, performance, features
o Whatever’s better, that will be the one I buy
- Selling: Will buy only after extensive selling and promos
- Marketing: Buy from whoever understands them best
- Social marketing concept: Consider both customers and society

Customer Lifetime value

- Total revenue potential of a customer
- Reason why you calculate: sometimes, you have to spend to get new customers
o Promotions, giveaways and incentives, free credit cards to introduce, etc.
- Customer equity: Total combined customer lifetime values
- End result: long term profitability

Generalized marketing system (see pic)

The Value Creation and delivery system

- Choose the value  STRATEGIC MARKETING
- **STRATEGIC  long term
o Customer segmentation  appealing to a certain customer
o Market selection/focus
o Value positioning
- **TACTICAL MARKETING 
1. provide the value
o Product development
o Service development
o Pricing
o Sourcing/making
o Distributing/servicing
2. Communicating the value
o Sales promotion

TOPIC 2: THE MARKETING INFORMATION SYSTEM

Composed of 3 types of information:

- Internal records: “Results data”
o Proprietary
o Only you have this info
- Marketing intelligence: “Happenings data”
o You don’t know what type of info you will get
o Networking, working in the industry, conferences, reading, etc.
- Market research: “Scientific data”
o You know what you want to find out
 o Finding out through scientific means

Sources of information
- Published sources: periodicals, journals, reports, govt. documents, abstracts, books, directories,
manuals, newspapers, outsourcing information if you don’t have time (e.g. Euromonitor)
- Unpublished sources: customer surveys, market research, speeches at meetings, television
programs, interviews, conversation w stockholders

The Environment
- Macroenvironment  market trends, things you cannot control
o Socio-economic classes
 AB Market, C1 and C2 Market, D Market, E Market
 PH marketers always use these terms
 AB (Upper income): Usually defined through actual income, but studies are kind
of updated regarding using the establish levels as criteria

BA 170 Session 3 – August 22, 2019

The Marketing Information System

- Internal records  Results data
- Marketing intelligence  happenings data
- Marketing research  scientific data
o Quantitative vs qualitative data
o Quantitative
 Establish generalizations for target population
 Requires statistically significant number of respondents
o Qualitative
 Establish indicators for hypothesis testing (insights)
 Produces rich data
 Normally involves small samples, generalizations cannot always be established
 E.g. observational research; answers the question “how, focus group
discussions”