REVIEW

Marketing Defined
• Marketing is the activity, set of instructions, and
processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.
OLD view of NEW view of
marketing: marketing:
Making a sale— Satisfying
“telling and selling” customer needs
The Concept of Exchange

The idea that people give

up something to receive
something they would
rather have.
 1
Conditions for Exchange
• There must be at least two parties
and each party…
• Must have something the other party values
• Must communicate and deliver goods
• Must be free to accept or reject offer
• Must want to deal with other party
Evolution of Marketing
Evolution of Marketing

A good product will

sell itself.

• Production Era
Evolution of Marketing
Creative advertising and
selling will overcome
consumers resistance and
convince them to buy.
• Sales Era
Evolution of Marketing

The consumer rules! Find

a need and feel it!

• Marketing Concept
Era
Evolution of Marketing
Long-term relationships with
customers and other
partners lead to success.
• Societal Era
2 ways to reach the end consumer:
• By selling the products and services by
themselves
• Through Middleman who purchase their goods
and services and resell them to the market.
Marketing
• A system concerned with the planning and
development of products and services, creation
of promotional programs and distributions
system to present and prospective market for
satisfaction of their existing needs and wants,
thus maximizing profits in the long run.
Marketing – a System
• It requires PLANNING to determine the
products and services that must be produced.
• It involves the organizations BASIC resources
involving money.
• The direction and control of these elements
makes it a system in itself.
Marketing – products and services, creation of
promotional programs and distributions system

• PRODUCTS and services planning and

development, PRICING, creation of
PROMOTIONAL programs and PLACE of
distributions
Marketing MIX

Planning for
Place of
Products/ Pricing Promotion
Distribution
Services
Marketing – presence of current and potential
market.
 The set of actual and
potential buyers of a
product and services.
 In marketing, the
term market refers to the
group of consumers or
organizations that is
interested in the product,
has the resources to
purchase the product, and
is permitted by law and
other regulations to
acquire the product.
2 Classifications of Target Market
• Consumer Market – buys goods for their own
personal use.
• Industrial Market – buy good use for business
operations
Operational Dimensions of Marketing

Target Market

Things to be Marketing
Marketed Organizations
Marketing – satisfaction of existing human
needs and wants
• human needs and wants is INSATIABLE
The Marketing Concept
Focusing on customer wants and needs can
be a source of competitive advantage by:

 Creating customer value

 Maintaining customer satisfaction

 Building long-term relationships

 Discover Market Needs
(Research)

Marketing Product Planning and

Development

Concept (Production)

Philosophy
Distribution of Products
and Services

GUARANTEED SALES
VOLUME AND PROFITS AT
CUSTOMER SATISFACTION
Marketing System - deals with
identification of major institutional
components in an organizations
environment that interact to produce
results in the marketplace
 Goods and Services

Marketing Marketing Target Market

Organizations
System

Information

Payments
Market Segmentation
The process of knowing the overview of the entire
target market , but differentiating them from
competitors by recognition of sub market with
similarity but differs in demographic, geographic,
economic, cultural and psychological ways.
Market Segmentation
Try to find a market and penetrate it to the greatest
extent possible through customers product, services,
and marketing strategies to satisfy their needs.
This strategy is customer-oriented which requires
identification of customer needs in a submarket.
Bases for Market Segmentation

1. Identify whether buyers are ---

•Consumer Market
•Industrial Market
Bases for Market Segmentation

2. Demographic Bases:
A. Population
a. Total Population
b. Regional Distribution
c. Urban, Rural distribution
Bases for Market Segmentation
2. Demographic Bases:
B. Age
a. Children
b. Teenagers
c. Young Adults 20-34
d. Younger middle aged 35-49
e. Older age 50-above
Bases for Market Segmentation

2. Demographic Bases:
C. Gender
a. Male
b. Female
Bases for Market Segmentation

3. Cultural Bases:
A. Race
B. Religion
C. Nationality
D. Occupation
Bases for Market Segmentation

4. Economic Bases:
A. Income Bracket
A. High income group
B. Upper Middle income group
C. Lower Middle income group
D. Low income group
Bases for Market Segmentation

4. Psychographic Bases:
A. Personality
B. Buying Attitudes
C. Products benefit desired
Classification of Markets and Goods

•Consumer Market
•Industrial Market
Consumer Goods

•Convenience goods
•Shopping goods
•Specialty goods
Convenience Goods
A. Consumers know what, how, when and where to buy these
products because they have complete product knowledge.
B. Consumers do not exert so much effort in buying since they
are purchased in accessible outlets like sari-sari store.
C. If temporary or permanent product unavailability exists,
consumers are willing to accept substitute.
D. The products are not bulky and have low unit prices.
Shopping Goods
A. They are sub classified into service goods or fashion goods.
B. Generally, consumers shop around before buying. They
compare prices, styles and other features before deciding
the best buy.
C. market may not have full product knowledge, so product
information is solicited as they shop around.
D. Service goods have high unit value, bulky and require
servicing like delivery, installation, repair and maintenance
Specialty Goods
A. Consumers are willing to exert special buying effort and
may spend time to reach exclusive dealers of these
products.
B. Consumers are after the brand prestige irrespective of its
high price
C. Consumers may not accept substitute brand.
Industrial Goods

•Raw Materials
•Fabricating Materials and parts
•Installations
•Accessory Equipment
•Operating supplies
Raw Materials Goods
A. Products which will become a part of another final
product.
B. Products when integrated to produce another product can
be unidentifiable or cannot be physically separated.
Fabricating Materials and parts
A. This are industrial goods which will become of another
product but are identifiable in finished form.
B. These are assembled products with no further change in
form.
Installations
A. These are major equipment of the industrial user.
B. They affect operating scale for production quota of the
company
Accessory
A. They facilitate or aid in the production operation of the
industrial market.
B. It will not be a part of any final product nor gives significant
effort in production scale
Operating Supplies
A. These are the convenience goods of the industrial market
B. They have low unit price; short-lived which facilitate
business operations.