PRINCIPLES OF MARKETING o Storage

 Marketing  Facilitating Function

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