• Describe each picture.

• Does it have an influence

effect for you to buy?
• Why do you say so?
• Why does companies spend
so much on advertisements?
• What is marketing?
Marketing
Module 1 By: Theresa Bondoc
Marketing
• is the process by which
companies create value for
customers and build strong
customer relationships in order
to capture value from the
customers in return. (Kotler et
al. 2017).
• art and science of finding,
retaining and growing
profitable customers.
5 Core Marketing Concepts:
1.Needs, Wants, Demands

2.Market Offerings (Products. Service. Experience)

3.Value, Satisfaction and Quality

4.Exchange, transactions and relationships

5.Markets
Needs, Wants &
Demands
Needs
• Human needs are states
of felt deprivation. Thing
that people cannot live
without.
This include: a) Basic physical needs - e.g. foods,
shelters, clothing, etc.

b) Social needs - e.g. sense of

belongingness and love, etc.

c) Individual needs - e.g. knowledge, self

– confidence, etc.

• These needs were not created by

marketers, they are a basic part of
human makeup.
 Wants
• Wants are people’s needs that are molded
by culture and individual personality.

Example: - I’m hungry, I need food, but I

want rice not bread.
-I need shelter, but I want an air-
conditioned room.
 Demands
• A demand is created when buying power backs a person’s want (exist
when a person is able and willing to buy).

• Demands are constantly changing.

• Many young adults would love to own a car but it remains a want if the
person could not afford to have one. Only those who have the money to
purchase the product would be considered as part of the demand.
 Market offerings
• products, services & experiences.

• Consumer’s needs & wants are fulfilled through

market offerings.

• Market offerings are some combination of products,

services, information, or experiences offered to a market
to satisfy a need or want.

• Market offerings are not limited to physical products,

they also include services and other entities.
 Products
• Any tangible product that can be offered to a market for
attention, acquisition, use or consumption in which might
satisfy a want or a need.
Services
• Any activity or benefit
offered for sale that are
essentially intangible and
do not result in the
ownership of anything.
• Other entities Include
persons, places,
organizations, information
and ideas.
Experience
- creating pleasant and
lasting memories
 Customer Value,
Satisfaction and Quality
Customer Value
• The difference between
benefits that the customer
gains from owning and/or
using a product and the
costs of obtaining the
product.
Customer Satisfaction
• Refers to the difference between the and the
of the product.
• if the product performs less than expected, the customer is
.
• if the product performs as expected, the customer is .
• if the product performs better than expected, the customer is
.
- Satisfied customers will buy again & tell other about their good
experiences.
- Dissatisfied customers switch to other competitors & criticize the
product to others.
Quality

Customer satisfaction is closely linked to quality.

Quality is believed to have a direct impact on product

performance, hence, customer satisfaction.

Quality is defined by the customer.

Quality is what the customer say it is.

Marketers must set the right level of expectations.
• If they set expectations too low, they may satisfy
those who buy but fail to attract enough buyer.

- If they raise expectations too high, buyer will be

disappointed.

- Customer value & customer satisfaction are key

building blocks for developing & managing customer
relationships.
Exchange, Transactions
and Relationships
• Marketing occurs when people
decide to satisfy needs & wants
through beneficial exchanges.

• Exchange is the act of obtaining a

desired object from someone by
offering something in return.

•
Five conditions must exist for an exchange to occur
are:
1. There are at least two parties.
2. Each party has something that may be of value to the
other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the other party’s
offer.

5. Each party believes it is appropriate or desirable to deal

with the other party.
Relationship
• A transaction is an exchange between two parties. It is
marketing’s unit of measurement.
• However, if the parties are involved in repeated
transactions, relationship may be built up as a result of
frequent transactions.
• Relationship is the tie between a customer and its
product or the producer of the product.
• Exchanges and transactions must be continuous to
sustain a firms operation.
• Marketers want to build strong relationships by
consistently delivering superior customer value .
• Build good relationships and profitable transactions will
follow.
• Beyond attracting new customers and creating
transactions, the goal is to retain customers and grow
their business with the company.

• The concept of transactions leads to the concept of a market.

Market
• Market - is a set of actual and
potential buyers of a product or
service.

• These buyers share a particular

need or want that can be satisfied
through exchange relationships.

• Marketing means managing

markets to bring about profitable
customer relationships.
A market contains the following
customers:
• Consumer Market: Customers
who buy products for their own
consumption. They are the end
users of the product.

• Business market: Customer

who buy products for further
processing, reselling, renting and
not for own personal consumption.
• Government market: Government
bodies and related agencies who buy
products in order to provide services
to the public.

• Reseller market: Customers who

buy goods to resell the goods to get
profits.

• International market: Customers

in other countries, including
consumers, producers, resellers and
governments.
Marketing
• is the process by which companies create value for
customers and build strong customer relationships in order
to capture value from the customers in return. (Kotler et al.
2017).
• art and science of finding, retaining and growing profitable
customers.
Marketing Management
• the art and science of
choosing target markets
and building profitable
relationship with them.

Marketing Manager
• a person who is involved
in marketing analysis,
planning, implementation
and control activities.
Next topic: Market Segmentation

....to be continued next online meeting.....

Have a good day! God bless.. =)

Market Segmentation
• Market Segmentation is the activity of dividing a
broad consumer or business market, normally consisting
of existing and potential customers, into sub-groups
of consumers (known as segments) based on some type
of shared characteristics.

• is the process of dividing a market of potential

customers into groups, or segments, based on different
characteristics. The segments created are composed of
consumers who will respond similarly
to marketing strategies and who share traits such as
.
vThe process of
segmenting markets
is based on the
principle that it is
virtually impossible
to serve all markets
at the same time.
“to target all is to target none at all”
Demographic Segmentation

• Demographic segmentation is one of the most

popular and commonly used types of market
segmentation.
• It refers to statistical data about a group of people.
Demographic Market Segmentation Examples
Age
Gender
Income
Family Situation/Size
Education
Ethnicity
• Where the above examples are helpful for segmenting
Business to Customer (B2C)audiences, a business might
use the following to classify a Business to Business
(B2B) audience:
• Company size
• Industry
• Job function

• Because demographic information is statistical and

factual, it is usually relatively easy to uncover using
various sites for market research.
• A simple example of B2C
demographic
segmentation could be a
vehicle manufacturer that
sells a luxury car brand
(ex. Maserati). This
company would likely
target an audience that
has a higher income.
• Another B2B example
might be a brand that
sells an enterprise
marketing platform. This
brand would likely target
marketing managers at
larger companies (ex.
500+ employees) who
have the ability to make
purchase decisions for
their teams.
Psychographic Segmentation
• Psychographic segmentation categorizes audiences and
customers by factors that relate to their personalities
and characteristics.
Psychographic Market Segmentation Examples:

Personality traits
Values
Attitudes
Interests
Lifestyles
Psychological influences
Subconscious and conscious beliefs
Motivations
Priorities
• Psychographic segmentation factors are slightly more
difficult to identify than demographics because they are
subjective. They are not data-focused and require
research to uncover and understand.

• For example, the luxury car brand may choose to focus

on customers who value quality and status.
• While the B2B enterprise marketing platform may target
marketing managers who are motivated to increase
productivity and show value to their executive team.
Klook, one of the fastest-growing travel platform in the East Asia

region, is no stranger to the psychographic Segmentation.

Knowing that customers are traveling for different reasons, they

created their website interface to allow flexibility to select from

the destination or things do to (before needing a destination).

This is because Klook realized some travelers decide where to

go based on the activities available.

https://en.repro.io/blog/psychographic-segmentation-examples-
marketing
Behavioral Segmentation
• While demographic and psychographic segmentation
focus on who a customer is, behavioral
segmentation focuses on how the customer acts.
Behavioral Market Segmentation Examples :

Purchasing habits

Spending habits

User status

Brand interactions
• Behavioral segmentation requires you to know about
your customer’s actions. These activities may relate to
how a customer interacts with your brand or to other
activities that happen away from your brand.

• A B2C example in this segment may be the luxury car

brand choosing to target customers who have purchased
a high-end vehicle in the past three years.
• The B2B marketing platform may focus on leads who
have signed up for one of their free webinars.
Geographic Segmentation
• Geographic segmentation is the simplest type of market
segmentation. It categorizes customers based on
geographic borders.
Geographic Market Segmentation Examples  :

ZIP code
City
Country
Radius around a certain location
Climate
Urban or rural
• Geographic segmentation can refer to a defined
geographic boundary (such as a city or ZIP code) or type
of area (such as the size of city or type of climate).
• An example of geographic segmentation may be the
luxury car company choosing to target customers who
live in warm climates where vehicles don’t need to be
equipped for snowy weather.
• The marketing platform might focus their marketing
efforts around urban, city centers where their target
customer is likely to work.
The Marketing Mix- 4 P’s
What Are the 4 Ps?
• These are the four Ps: the product (the good or service); the price
(what the consumer pays); the place (the location where a
product is marketed); and promotion (the advertising).

• The four Ps of marketing are the key factors that are involved in
the marketing of a good or service.

• They are the product, price, place, and promotion of a good or

service. Often referred to as the marketing mix, the four Ps are
constrained by internal and external factors in the overall
business environment, and they interact significantly with one
another.
• The 4 Ps are used by companies to identify some key
factors for their business, including what consumers
want from them, how their product or service meets or
fails to meet those needs, how their product or service is
perceived in the world, how they stand out from their
competitors, and how they interact with their customers.
• It is said that the success of marketing depends depends on the
company’s plan as far as marketing mix is concerned.
Marketing Management
• Marketing management is the analysis,
planning, implementation, and control
programs designed to create, build and
maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives. (Kotler & Armstrong
2008)
• The art and science of choosing target
markets and building profitable
relationships with them.
 involves managing
demand, which in turn involves managing
customer relationships.
• also called demand management.

vThe company wants to select only customers

that it can serve well and profitably.
Marketing Management
Philosophies
The Production Concept
• The production concept holds that
consumers will favor products that
are available & highly affordable -
therefore, management should
focus on production
and distribution efficiency.

• Management may become so

focused on production systems they
forget the customer.
Example:
• One of the best examples of the production concept is
Henry Ford’s Model. T. Henery Ford is the father of the
production line. • By developing an efficient assembly line,
Ford was able to bring the cost of the Model T down from
around $800 to just under $300, putting affordable
transportation into the hands of average consumers in
the United States. • The biggest secret to Ford’s assembly
line is that he built one car --the Model T.
The Product Concept
• The Product Concept has the
proposition that consumers will
favor those products that offer
the attributes like quality,
performance and other
innovative features.

• Managers focus on developing

superior products and
improving the existing product
lines over a period of time.
EXAMPLE:
APPLE CO

• Apple is a well known company for its gadgets and

technologies such as the great iphones. They started their
iphone invention from iphone 3g in 2009. In order for them
to follow the product concept, they evolved themselves
from iphone 3gs to the iphone 6+. As a result, their
marketing plan is getting better and better throughout the
years.
The Selling Concept
• The Selling Concept proposes that customers, be
individuals or organizations will not buy enough of the
firm’s products unless they are persuaded to do so
through selling effort.

• So companies should undertake selling and promotion of

their products for marketing success.
Example: 
Sun Life Insurance
• Short term rapid growth through advertising
The Marketing Concept
• The marketing management philosophy that holds that
achieving organizational goals depends on
Example:
Toyota Motors
-Does market research and understanding consumer
need therefore providing value to customer
• Attains profit through customer loyalty in long run.
The Societal Marketing Concept
• The Societal Concept proposes that the
enterprise’s task is to determine the needs,

wants and intentions of the target market

and to deliver the expected satisfaction

more effectively and efficiently than the

competitors in a way to preserve or

enhance the consumer’s and society’s well-

being.
Example:
Body Shop

• Body Shop is a cosmetic company found

by Anita Roddick. The company uses only
vegetable based materials for its
products. It is also against Animal testing,
supports community trade, activate Self
Esteem, Defend Human Rights, and
overall protection of the planet. Thus it is
completely following the concept of
Societal Marketing. 
 Social Responsibility in Marketing:
• Social responsibility in marketing involves
focusing efforts on attracting consumers who
want to make a positive difference with their
purchases. Many companies have adopted
socially responsible elements in
their marketing strategies as a means to help
a community via beneficial services and
products. (Investopedia)
How Social Responsibility
in Marketing Works?
• Recyclable packaging,
promotions that spread
awareness of societal issues
and problems, and directing
portions of profits
toward charitable groups or
efforts are examples of social
responsibility marketing
strategies.
Product/Service

• offering products/services of superior quality and value

• preferring the use of locally sourced materials to
imports.
• ensuring environmental protection and preservation in
waste disposal
• considering the effects of product/service to public
health, safety and morals
Price

• offering products at reasonable and affordable prices

• providing a reasonable return of investments
• setting costs at reasonable levels without sacrificing
quality
• setting reasonable mark-ups
Place

• ensuring wide availability of the product/service

• treating and paying the sales force fairly and
competitively
• considering accessiblility
• ensuring prompt delivery at reasonable cost
Promotion

• making promises that you can keep

• adhering to truth in advertising
• sponsoring activities beneficial to the society and
community
• ensuring fair and healthy competition
*******E N D******