PRINCIPLES OF MARKETING MIDTERM REVIEWER
Good Example: Herschel (millenials who like to
I. MARKETING AND CUSTOMER
VALUE
Marketing's focus
satisfying consumer needs
Process
1. Determine needs and wants
2. Design consumer-driven marketing
strategy
3. Construct marketing program that
delivers superior value
4. Build relationships and delight the
customer to achieve profits
Demand
Need: what people cannot live without,
cannot be created by marketers
Want: desired by person, desire created by
marketer, created by our culture
the want is based on a specific need
Market In Context, example:
Need: love and affection
Want: chocolate from boyfriend (Philippine
culture)
*whatever you want as a marketer is not what
consumers want
*marketers make you want to feel emotions
Marketing Offerings
-packaged products
Example
Jollibee: Chickenjoy
UA&P: 6YP, the different courses
focus on the specific demographic! Because when you
stand for everything, you are failing
travel), Axe (men with insecurities)
Bad Example: Ligo (popular product in
sardines, but they also sell Jelly Ace), cognitive
dissonance
Marketing Myopia
-forgetting your target audience
-by saying so much about your product you
forget your own consumer's needs (do not be
mayabang)
Marketing Exchange
-giving something for something in return
Example
Marketer: Goods <-> Customer: Payment
Politician: Change <-> Voter: Votes
Market
1. Who are the actual customers?
2. Who are the potential customers?
3. Who are not the customers?
*the market is strong once people either love
or hate your product
Consumer-Driven Marketing Strategy
1. Marketing Management - choosing a
market
*Who: What customers will we serve?
*What: What can we serve to the customers
best?
2. Selecting Customers
Segmentation: Dividing the market (cut)
Ex. Tondo - Jejemon, Working Class, etc.
Targeting: Selecting the market (pick)
Ex. Choosing the jejemon from Tondo
 3. Value Proposition *Example: Tom's shoes gives one pair to poor
*what the promise of a company is to satisfy areas, recycled materials, healthy foods
customer needs
*when a customer's needs is met, they become Marketing Mix: The 4Ps or 4Cs
a marketers 1. Product - Customer Value
Ex. when customers spread because of 2. Price - Cost
word-of-mouth 3. Place - Convenience
4. Promotion - Communication
Management Orientation *all four are essential and interconnected

1. Production Concept Maslow's Hierarchy of Needs Basis for

*consumers will favor products that are Marketing
available and affordable
*making a lot of the same thing to make it
affordable (ex. Uniqlo)
Opposite of Production Concept: Limited
Concept

2. Product Concept
*consumers will favor products that offer the
most in quality, performance, and innovative
products
*Example: Rolex Watches, Star Wars
franchise
*Note: be aware of marketing myopia
-high-end brand brands focus actualization
3. Selling Concept and self-esteem needs
*consumers will not buy enough without a -marketers must have the product seem like a
large-scale selling and promotion effort need
*Example: celebrity promotion, insurance,
charity, multi-level marketing Process
need -> product -> brand -> message ->
4. Marketing Concept want -> need satisfied -> loyal
*focus on satisfying needs and wants of the
target marketing II. MARKETING FOR ESTABLISHED
*needs > product CORPORATIONS
*Example: iPad/laptop for convenience and -in marketing, humans are irrational beings
portability (looking at something that annoys)
*Example: Starbucks selling ambiance spaces Strategic Planning
for studying and not necessarily the coffee
1. Define the Planning
5. Societal Marketing Concept -mission statement: organization's purpose in the
*so that you know company is doing well to larger environment in terms of satisfying
society customer needs
-specific and different from that of other
companies
-everything a company does should focus on
this statement
*Example: when Google ventured into
other companies they made it under a mother
company, Alphabet / Volkswagen did not
make a sportscar, they bought Porsche
A Mission Statement Should....
*not be myopic
*be meaningful and specific
*motivation
*emphasizing company's strengths
*contains specific workable guides
*should not be stated as profit
Good Examples
*Nintendo: Easy to learn active games that
family and friends can laugh and enjoy
together
*FedEx: We absolutely, positively, deliver
overnight
*Google: Help organize the world's information
and make it universally accessible and useful
KFC's Objectives for 2017 (Revised)
*increase sales by 20% in 6 months
*have at least 40,000 Facebook likes by
September
*make a video about the product that would
10,000 likes by this month
3. Design A Business Portfolio
-a collection of business and products that
make up the company
-different per location (Ex: McDonald's rice
meals in Philippines)
Boston Consulting Group (BCG) Growth Share
Matrix
-helps downsizing/pruning: reduction of
business portfolio by eliminating products or
business units that are not profitable or not
helpful in stategy

Bad Examples
*"Best _______ in the Philippines"
*"Tastiest, Meatiest"
*because what, objectively, is the best?

2. Setting Objectives/Goals
-make your objectives SMART
• Specific
• Measurable
• Achievable
• Realistic
Example: Adidas
• Time-bound
Question Marks: Bags
Stars: Shoes
KFC's Objectives for 2017 (Bad)
Dogs: Phone Cases / Watches
*make people buy more Sisig Burrito
Cash Cows: Hoodies
*get people to like our Facebook page
*make a viral video
 4. Planning Strategies
Ansoff Matrix or Product/Market Grid
Example: Jollibee
Market Development: Chickenjoy Bucket
Market Penetration: Chickenjoy
Product Development: Chicken and
Mushroom Pasta
Diversification: Mang Insasal
Marketing Strategy and Marketing Mix
Target Market - specific market targeted based
on segmentation
Market Positioning - making a product to
occupy a clear, distinctive and and desirable
place relative to competing products in the
minds of target consumer
Planting - psychological term
Marketing Mix - aforementioned 4Ps and 4Cs
SWOT - Strengths, Weaknesses,
Opportunities, Threats
III. GAINING INSIGHTS
-process of discovering buyer's needs and
wants
-Example: Why do people buy Apple? Social
status
Three Key Sources of Marketing
Information
1. Internal Database
-information a company gets and has a basis
of
-your information stored within a company
-for promotion
-can be sold to other companies
2. Marketing Intelligence
-companies getting everyday information
-sold to those who need information
-can be expensive
3. Marketing Research
-the systematic design, collection, analysis and
reporting of data relevant to a specific
marketing situation
-do not forget segmentation
• Observational: stalking for a cause
• Ethnographic: based on a group of
people who have the same thinking (ex.
rally protesters)
• Survey: must not be biased
• Experimental: planting something for
people to react to, looking for cause
and effect
• Telephone
• Personal: face-to-face meeting, most
expensive and time-consuming
• Personal Focus Group (FGDs): best if
people answer simultaneously
• Online Research: not Googling, searching
through forums
Segmenting Cosumers
1. Geographic: by location
2. Demographic: by age, gender, or life cycle
(how long will you use it?)
3. Psychographics: "people who buy x are
usually...." (example: Tesla motorcycles
and hipsters)\
4. Positioning: looking for a spot in the
minds of people
Competitive Advantage
"What is the edge of your company?"
IV. INTEGRATED MARKETING
COMMUNICATIONS (IMC)
Promotion Mix
1. Advertising
-paid, non-personal presentation and
promotion of ideas, goods and services by an
identified sponsor
2. Sales Promotion
-short-term incentives used to encourage the
purchase of a product or service
-promos and discounts that are not part of
regular selling (do not always use promos, it
will teach customers to buy only in selected
times)
-used when low on sales or when to put
product on the market
3. Public Relations
-building good relations with the company's
public through favorable publicity, a good
corporate image, and effective handling of
unfavorable news
-however, bad publicity can be good publicity
4. Personal Selling
-personal presentation by the sales force used
to enhance sales and customer relationships
5. Direct Marketing
-gain an immediate response and lasting
relationship with targeted customers
-mail, telephone, television, email, internet
ads, etc.
Need for IMC
-consumers/marketing strategies are changing
-people don't believe anything immediately
-clear, consistent, and compelling messages
Effective Communication for IMC
1. Identify Target Audience
2. Set Communication Objectives
Six Buyer-Readiness Stages - awareness ->
knowledge -> liking -> preference ->
conviction -> purchase
AIDA - Attention -> Interest -> Desire ->
Action
3. Design the Message
Rational Appeal - shows final products/effects
on final product (ex. Palmolive commercial)
Emotional Appeal - anything that touches
emotions (ex. Jollibee commericals, starving
kids)
Moral Appeal - shows you what should be
done (ex. Quit Smoking)
4. Choose Media
Personal Channels
-direct contact between sender and receiver
-immediate feedback, opinion leadership
(reviewers, bloggers)
Non-Personal Channels
-major media: radio, TV, print and social
media
-atmosphere: environment to make you feel
in a specific place (ex. Starbucks' distinct
smell)
-events (launches, sponsored parties, etc.)
5. Select Message Source
-the person
-the richer a market gets, the use of celebrities
have less power and vice versa
-Example: Liveraide
*Media: commerical
*Source: Robin Padilla
 6. Budgeting
-most companies fail because they budget
first, this limits ideas
Promotion Mix Strategies
1. Push Strategy - marketing to retailers
2. Pull Strategy - marketing to consumers
V. DESIGN THINKING AND
MENTALITY
-mental strength
-resource > talent: "our lack of resources is
not the problem, our lack of resourcefulness
is"
-human emotion is a resource so manage it
*fixed mindest: making excuses that you do
not do thing
*growth mindset: understanding you can
improve and master things
-Change your story! "Decisions, and not
conditions determine destiny"
Three Questions
What to focus on? (What you can and can't
control) What does it mean? What do do?
VI. DIGITAL MEDIA
Jab Jab Jab Right Hook by Gary Vaynerchuck
-Jab Jab Jab: value, Right Hook: sale
-giver your customers value instead of asking
them to buy it immediately
-marketers should give something to notice
instead of shoving it in their face
Six Rules for Outstanding Content
1. Native
-should follow the platform it was made for
-content that starts good conversation is king
but context is god
-"99% of people don't market in the year we
live in"
2. It Does Interrupt
-customers should make customers feel
something and allow them to act upon that
feeling
-don't intrude entertainment, be entertainment
(ads are a bad idea)
-be the brand that helps people tell stories to
themselves
3. It Does Make Demands Too Often
-make content for you customer, not for
yourself
-always go back to being a human being
Content Categories
*Social = People (using celebrities)
*Entertainment = Escape
*Utility = Service (tutorials)
4. It Leverages On Pop Culture
-but must be based on research and context
5. It's Mirco
-it doesn't give everything in one go
-gives value all the time
-talk about what they are talking about
6. It's Consistent and Self-Aware
-adapt to the market but keep your identity
VII. DESIGN THINKING VIII. PRESENTATION
-Creative Confidence by Tom Kelley
-human-centered = empathy focus: what idea do you want to impart?

Prototyping -early working model Formless Presentation

Presenting 1. Content
-mastery of the subject -understand audience ("the bait has to be tasty
-being able to present it in any given time for the fish, not the fisher")
frame -simple but not dumb (must remove noise)
-effective content is far more valuable than a much-
noticed one 2. Design
-sum of everything you do that serves a purpose
Psycographics -not just the powerpoint itself: speaker + desk
-what does this person believe? + handouts
-values, fears, and desires -"people focus on the art and not just the
-value: solves customer's problem design" (not just because it looks nice)
*we have to change the behavior and
choose who to change 3. Creativity
-being clear about the who helps achieve what -(form + content) ÷ period of time
we want
4. Narrative
"Edge of Innovation" -story is an illusion created by the narrative
-understanding what is the best thing at a
given point in time Design Crash Course
-a basis (must come from something) -maximum effect, minimum means: take away
-example: lodi -> edge of innovation: street unnecessary things
language -what message do you want to impart?
-inexperienced marketers make what they -Aesthetics: rule of thirds, size and font size
want and assumes that everyone wants what -Data Visualization: conversational,
they want metaphorical, bird's eye view
Personas -Delivery: something will always go wrong
-fictional characters made from gathered date (Murphy's Law) so it's how you fix it
to make the marketing process and outputs
focused

Example: Helen
*Socio-economic: Class A
*37 years old, nature lover
*tells us about her day

A person can have the greatest story or idea in the

world. But if that person can't convince others, it
doesn't matter