o The process of creating, distributing, promoting, o Grading- products are assorted in different and pricing food services and ideas to facilitate categories from quality to quantity. It is for the exchange of relationships of customers and to efficient storage and display. develop and maintain favorable relationships with o Financing- money budget; arrangement of the stakeholders in a dynamic environment. company with the suppliers and for customers to Customers pay enterprise products. o The purchasers of organization’s products. o Risk-Taking- the changing minds of customers. o The focal point of all marketing. Developing Marketing Information Target Market o Communication o Specific group of customers or whom an o Promotion organization focuses its marketing effort. o Data Collection Ultimate Goal (of all Marketing/Marketers) Marketing As a Field of Study o Increase in customers Importance to People o Increase in production o career opportunities an offer better opportunities o Increase in profit and advancement o Stability Products- to satisfy needs and wants of every o Increase in Sales consumer/customers. Evolution of Marketing Importance to Companies o Early Stages- self-sufficient o Accounting and Financing Department o The Centralized Marketing- finished products are o Marketing Department delivered to one market. o Production Department o Enter Money Intermediaries- pricing system o Gives job opportunities. (money). Importance to Society Barter o Product driven economy o exchange of goods or services o Market as the major course in creating mass Travel production. o inadequacies and inefficiencies o Mass markets PHILOSOPHIES/CONCEPTS o Mass Distribution Production Philosophy o Increase investment opportunity o Focus on the making and distributing products in o High employment. sufficient quantities to meet great demands. (mass production). Stakeholders o Manufacturers produce products based on the o Includes those constituents who stake or claim is demands. some aspect of a company’s product outcome, Sales Philosophy operation, markets and industry outcome. o If the demand is high, sales is big Customer Relationship Management (CRM) Marketing Philosophy o Focuses on using information about customers. o relying to the needs of the customers o 1. by acquiring new customers o 2. by enhancing their profitability of existing Societal Marketing customers o relying to the needs and welfare of the customer o 3. by extending the duration of customer and the society relationship Selling Philosophy Manufacturers (middle man) o Their goal is to generate profit by selling the o to build and develop good relationship with products to the customers. stakeholders Product Philosophy o Making products affordable for everybody. There are variations from sizes and prices. MARKETING FUNCTIONS Marketing Mix Exchange Function o Orchestrations of marketing tools that marketing o The process by which two or more parties give executives contribute to satisfy customer’s something of value to one another to satisfy one’s company objectives. demands. o associated with 4 P’s of marketing o Selling- activity made by the seller; Product wholesaler/dealer. o Anything tangible and intangible offer for attention, o Final/End Consumers- the one who uses the acquisition, use or consumption that is capable of product. satisfying needs. Physical Distribution Function o quality, brand name, service warranty, packaging o Transportation Price Strategic Planning o A pay for product influences the product’s image o The process of establishing an organizational and likelihood of purchase. mission and incorporating/ formulating goals, Promotion corporating strategy, marketing objectives, and o To persuade; are programs designed to persuade marketing strategies. o personal selling, advertising, media advertising, o Through process of strategic planning a company newspaper, television, motivation, sales talk accomplishes a mission. Place Mission Statement o Refers to where the product is made available to o A long-term view/vision of what an organization market members and covered with two areas. wants to become. o Channel of Distribution- wholesalers and retailers Corporate Strategy handing product between the producers and o A strategy that determines the means for utilizing consumers “target market”. resources in the various functional areas to reach o Physical Distribution- transportation and the organization’s goals. warehousing. Areas Goal of Marketing Mix and 4 P’s o Marketing- conducts experimental research o To meet the needs and satisfaction o Production, Finance, Research & Development, Marketing Creates Value Human Resources o Value-a customer’s subjective assessment of Strategic Business Unit (SBU) benefits relative to costs in determining the worth o A division or product line or other profit center of a product within the parent company. o – important element of managing customer What is Market? relationships and implementing the marketing o A group of individuals and or organizations that concepts. have needs for products in a product class and have the ability, willingness & authority to Customer Value= customer benefits – customer purchase these products. costs Market Share o The percentage of a market that actually buys the Customer Benefits specific product from a particular company. o Includes anything a buyer/customer receives in an o Refers to a company’s portion of sales within the exchange. entire market in which it operates. Value Driven Marketing Market Growth/Market Growth Matrix o Value (quality) of a product at a premium price. o Business-tool based on philosophy of a product’s Relationship Marketing market growth rate and its market share are o Refers to long-term mutually beneficial important considerations in determining its arrangement in which both buyer and seller focus marketing strategy. on value enhancement through the creation of o more satisfying exchanges. Marketing Opportunity o Combination of circumstances and timing that Planning, Implementing and Evaluating Marketing permits an organization to take action to reach a Strategies particular target market. 1. Strategic Marketing Management Growth Share Matrix 2. Strategic Planning o Star- High Growth, High Market Share 3. Mission Statement o Question Marks – problems; Low Growth, Low 4. Corporate Strategy Market 5. Business Unit Strategy o Cash Cow- Low, High Market Share o Dog- Low Growth, Low Market Share Strategic Marketing Management Core Competencies o It is the process of planning, implementing and o Things a company does extremely well which evaluating the performance of marketing activities sometimes give it an advantage over its and strategies both effectively and efficiently. competitors. Effectiveness SWOT Analysis o The degree to which long-term customer o Assesses an organization’s strengths, relationships help achieve an organization’s weaknesses, opportunities and threats. objectives. Strength Efficiency o Refer to competitive advantages, or core o Refers to minimizing the resources, an competencies, that give the company an organization uses to achieve a specific level of advantage. desired customer relationships. o money, men, material o Presence of skilled manpower, available financial Managing Marketing Implementation resources, new and modern 1. Motivating Personnel- Reward system, promotion technology/equipment. 2. Effective Communication Weaknesses 3. Employing Good Coordination Efforts- work closely with o Limitations a company faces in developing or the management implementing a marketing strategy. 4. Setting Reasonable Attainable Time Tables o Lack of reliable suppliers, limited managerial expertise, limited service capability. Upward/Downward Communication Opportunities o Transparency; ensure that everybody are aware of o Situations that exist but must be exploited for the all the activities of the company. company to benefit from them. Establishing A Time Table o Increase in consumption patterns, increasing 1. Identifying the activities to be performed disposable income, increasing population. 2. Determining the time acquired to complete each activity Threats 3. Separating the activities to be performed in sequence from o Refers to barriers that could prevent the company those to be performed simultaneously from reaching its objectives. 4. Organizing activities in proper order o Competitors, Value Added Tax 5. Assigning responsibility for completing each activity to one o Change in taste and preferences, decreasing or more employees, teams, or managers. disposable income. First-Mover Advantage Centralized Organization o The ability of an innovative company to achieve o A structure in which top-level managers delegate long-term competitive advantages by being the little authority to lower levels. first to offer a certain product in the marketplace. Decentralized Organization Marketing Strategy o A structure in which decision-making authority is o Selection of a target market and the creation of a delegated the chain of commands as possible. marketing mix that will satisfy the needs of a target Evaluating Marketing Strategies/Strategic Performance market members. Evaluation Marketing Objective 1. Establishing o A statement of what is to be accomplished through 2. Measuring marketing activities. 3. Comparing Late-Mover Advantage 4. Modifying o The ability of a later market entrants to achieve a long-term competitive advantages by not being the o Consist of establishing performance standards first to offer a certain product in a marketplace. measuring actual performance with established Developing Marketing Objective In Marketing Strategy standards and modifying the marketing strategy if o A statement of what is to be accomplished through needed. marketing activities. Performance Standards o Marketing objectives should possess certain o Is an expected level of performance against which characteristics: actual performance can be compared. 1. A marketing objective should be expressed in clear, simple Analyzing Actual Performance terms so all marketing and non-marketing personnel in the o Such as services sold can help firms better company understands exactly what they are trying to analyze actual performance to improve their achieve. marketing plans. 2. Objective should be measurable which allow the Sales Analysis organization to track progress and compare outcomes o Analysis of sales figures to evaluate a firm’s against beginning benchmarks. performance. 3. Marketing objective should specify a time frame for its Marketing Cost Analysis accomplishment. o Analysis of costs to determine which are 4. Marketing objective should be consistent with both associated with specific marketing efforts. business unit and corporate strategies. Evaluation Marketing Strategy o Results or outcomes o A plan of action for identifying and analyzing a Ultimate Goal target market and developing a marketing mix to o To earn profit and protect stakeholders and meet the needs of that market customers and to see to it that the product is good. Marketing Implementation o Increase in: Assets, Sales, Customers, Stability, o Process of putting marketing strategies into action Profit o Effective implementation depends on: Marketing Plan 1. Well-organization marketing department o A written document that specifies the activities to 2. effective communication be performed to implement and control the 3. setting reasonable and attainable time tables organization’s marketing strategies.