UNIT 1: MARKETING PRINCIPLES AND STRATEGIES

A marketing specialist should look into:

1. Identifying customers’ needs
2. Designing products that meet those needs
3. Communicating information’s about those goods and services
to prospective buyers,
4. Making the items available at times and places that meet
customers’ needs
5. Pricing merchandise and services to reflect costs,
competition and customers’ ability to buy
6. Providing the necessary service and follow up to ensure
customer satisfactions after the purchase.

What is Marketing?
Boone and Kurts in Principles of Marketing 2013 define
Marketing as an organizational function and set of processes for
creating, communicating and delivering value to customers and
for managing costumer relationship in ways it benefits the
organizations and its stake holders.

Marketing Concepts
1. Product Concept – this concept used the in many businesses
now a days. Business in this concept believes that a company
must look for interested customer’s right after producing goods
or services. This is applicable for many real estate developer
businesses today.
2. Selling Concept – this concept explain that company must
first produce product and later on create selling strategy that
fit to convince target market.
3. Marketing Concept – the concept believes that it’s best to
define first the target market, identify their needs and wants,
and create product that suits the needs of the desired market.

5 Eras of Marketing History

1. The Production Era - before 1925, most firms in highly
develop countries the like of Western Europe and Northern
America focused on mass production where this country
produces a lot of goods and services in good quality. The
attitude of this era conquers that high quality product
basically sell itself.
For example: High end brand like Louis Vuitton, Zara,
Mango and a lot more can send their product because of
their known high standard quality. This era covers the
period of the Industrial Revolutions until 1928 when the
firm was concentrated on creation of a few particular item
for consumption.
2. The Sales Era – As production techniques in the United
State and Europe become more sophisticated output grew from
1920s into early 1950’s. Companies with sales orientations
assumes that customers will resist
3. The Marketing Era – period covering 1950 to 1960, this
era believes that marketing activities, actions and
implementations should under one department. This
department is known as marketing department.
4. Relationship Era – this era established the importance
of relationship to customers. Customers’ relationship is
the key to a better business performance. This year, company consider relationship to
customers in their
marketing strategy.
5. Social Era – around 1975, companies are considering the
importance of giving back to the society. Social
Responsibility begun to take part of marketing strategies
of the company.

Categories of Non-Traditional Marketing

1. Person marketing – Efforts to cultivate the attention,
interest, and preferences of a target market toward a person
Example: Celebrity endorsements, Many Pacquiao, Lea Salonga
2. Place marketing - Efforts to attract people and organizations
to a particular geographic area.
Example: Quiapo Church, Boracay, Luneta, Palawan, Bohol,
Hundred Island, Chocolate hill, Kalangaman Island in Leyte
3. Cause Marketing - Identification and marketing of a social
issue, cause or idea to selected target markets. Many profit-
seeking firms link their products to social causes
4. Event marketing - Marketing of sporting, cultural, and
charitable activities to selected target markets.
Example: Celebrity Concert, Fun Run, Symposium, Trade Fair,
Fashion Show etc.
5. Organization marketing - Intended to persuade others to
join.

THE MARKETING PROCESS:

1. Situation Assessment – it involves comprehensive research
into the market place and customers to be served. To do
this, the external aspects of the business situation
(customers and competitors) as well as the internal aspects
of the situation (your operation’s present and future
capabilities) must be analyzed.
2. Marketing Strategy – it involves determining how to
approach the identified customer needs and wants and how to
produce products and services to satisfy them. This includes
two (2) important elements:
a. Selection of the target markets – people you intend to
pursue as customers
b. Value proposition to each target market – an unambiguous
description of the benefits the target market will receive
by purchasing your products/services.
3. Marketing Mix Decisions – After getting the big picture
and goals, this is the step that would involve making
detailed decisions about the marketing mix (4 Ps). It would
include formulating short-term decisions and marketing
plan.
4. Implementation and Control – As the world is always
changing, one must see to it to
adjust or revise the plans as they are being implemented.
By doing this, it involves monitoring execution and making changes to promotions or perhaps to
the products and
services, monitoring results and making better plans next
time or evaluating successes and failures.
References:
- Medina, Roberto 2015 “Principles of Marketing” REX
bookstore - Boone & Kurtz 2015 “Principles of Marketing
“Philippine edition, Cengage learning - Kotler P (2015)
“Principles of Marketing “14th edition Pearson

UNIT 2: CUSTOMER RELATIONSHIP: CUSTOMER

SERVICE
LEARNING OUTCOMES: The learners are expected to:
1. Define “Relationship marketing”
2. Explain the Value of Customer
3. Identify and describe: relationship development strategies
4. Illustrate successful customer service strategy in the Philippine
business enterprise

Transaction-Based Marketing to Relationship Marketing

Transaction-based marketing
- is a business tactic that emphases on lone, "point of
sale" trades. The importance is on get the most out of the
adeptness and dimensions of specific sales rather than mounting
a cooperation with the buyer. Transaction based marketing
strategies focused on attracting consumers.
Relationship marketing
- refers to the expansion, evolution, and upkeep of long-
term, cost-effective exchange relationships with individual
customers, suppliers, employees, and other partners for mutual
benefits. It introduces the scope of external marketing
relationships to include suppliers, customers, and referral
sources.
- It also focusses on long term relationship with customers,
emphasizing on retaining customers thru data based. It relies on
data base that records customer records on customers’ taste and
preferences and life style
1ST Customer of the Organization
The employees serve as the 1st customer within the
organizations. They must observe the same high standard of
customer satisfactions are consider as external customers of the
firms. Relationship marketing recognizes the critical importance
of internal marketing to the success of external marketing plans.
Programs that improve customer service inside a company also
raise productivity and staff morale, resulting in better
customer relationships outside the firms.
Shift away from production-oriented marketing: and it give
emphasis on the following:
- Individual sales and transactions
- Limited communication
- No ongoing relationship
- Limited in some markets, such as residential real estate

Elements of Relationship Marketing:

Be relevant.
When possible, customize or even contextualize your
communications to personalize your audience experience. In a
media world of infinite websites, customized social media
profiles, and 1,000+ TV channels, audiences expect messaging
tailored to their lives and interests. Think list segmentation,
variable content, web user profiles.

Provide value
Give away some of your secrets. Provide the answers to some
of your audience’s most pressing questions. By providing value,
you can gain credibility, become the authority, or go-to
resource on the subject.
Welcome dialogue
Listen to your community members and respond to what was
said. Dialogue helps to establish relationships and engage your
communities.
Be responsive
Respond to feedback (both negative and positive), even if
you’re simply letting your audience know that you’ve heard what
they said. Often, you can turn a negative experience into a
positive one
Be respectful
If someone opts out of your communications, make the
request process easy and transparent. And see #4. Respond
respectfully to feedback.
Be authentic.
Authenticity resonates with your audiences, and authentic
communications will motivate stakeholders to become more engaged.

There are 3 Levels of Relationship Marketing as stated below:

Characteristics Level 1 Level 2 Level 3
Primary Bond Financial Social Structural
Degree of
Customization
Low Medium Medium to High
Potential for
sustained
Advantage
Low Moderate High
First Level: Focus on Price – Marketers must consider focusing
in price of product that is offer for the chosen market. Price
is the most superficial level, least likely to lead to long-term
relationships. Marketers rely on pricing to motivate customers
because competitors can easily duplicate pricing benefits.
Second Level: Social Interactions - Customer service and
communication are key factors. Example: A dress shop conduct a
special fashion show.
Third Level: Interdependent Partnership - Affiliation changed
into essential changes that ensure partnership and
interdependence between buyer and seller.

How to Keep Customers?

Customer churn - Customer turnover is expensive for a company
that why the firms should generate more profits with each
additional year of a relationship
Frequency marketing – a marketing programs that entice customer
do repeat purchases. Example: Reward Programs, Contest, Raffle
promos
Affinity marketing - Solicits responses from individuals who
share common interests and activities
Retrieving Lost Customers
Customers leave for a variety of reasons according to (Kurts and
Boone 2015):
• Boredom
• Move to a new location
• No longer have a need for the product
• Prefer competing products

Essential Components of an Excellent Customer Service

1. Prioritize each customer
Customer is the life blood of the company and the very
reason why businesses exist. It’s the job of the business to
make sure that the customers are happy with their experience.
The future of the business defends on the customers’ experience.
2. Strive to have a great reputation.
Reputations is one important factor of customers’ choice of
their provider. More customers began purchasing product and
service due to company’s reputations of customer service. In
doing so, focus more on building good reputations to your client.
3. Apologize when needed
Customer service failure is an avoidable circumstance in
the business operations especially in the service business.
However, business failure can be minimized if not eradicated in
some ways. It’s okay to make mistakes after all we are all human.
However, when the business messes up make sure to apologize for
the rare event. Always remember to own the mistakes instead of
blaming elsewhere, and make sure not to do it again.
4. Be reachable
It is more important that the customers can easily reach
you when they need your product or services. Set up an email
address, Facebook account, twitter account, 24-hour help desk
and on-line support system. Empower your employee to engage more
on customer satisfactions.
5. Focus on delivering a consistent experience
Excellent customer service involves interactions that are
dependent on employees who can adjust themselves to the
personality of their customers. The way you take care of your
customers will alter the perception they have towards a business.
Place a strong emphasis on making your customers happy from
their first contact with your business throughout their journey.

MARKET OPPORTUNITY ANALYSIS AND CONSUMER

ANALYSIS

DISTINCTIONS BETWEEN STRATEGIC MARKETING AND TACTICAL MARKETING

STRATEGIC MARKETING - Consists of selling your product in such a
way that you achieve a goal.
TACTICAL MARKETING – once you have goals, including specific
strategies for achieving your goals, determine how you will
implement your strategies.
THE MARKETING ENVIRONMENT
Consists of actors and forces outside the organization that
affect management’s ability to build and maintain
relationships with target customers.
Environment offers both opportunities and threats.
Marketing intelligence and research used to collect
information about the environment. It includes the
following:
Microenvironment: actors close to the company that affect its
ability to serve its customers.
Macroenvironment: larger societal forces that affect the
microenvironment.

THE COMPANY’S MICROENVIRONMENT

Company’s internal environment:
areas inside a company.
Affects the marketing department's planning strategies.
All departments must “think consumer” and work
together to provide superior customer value and satisfaction.

1. SUPPLIERS
- Provide resources needed to produce goods and services.
- Important link in the “value delivery system”.
- Most marketers treat suppliers like partners.
2. MARKETING INTERMEDIARIES
- help the company to promote, sell, and distribute its
goods to final buyers.
- Resellers, physical distribution firms, marketing
services agencies, and financial intermediaries
3. CUSTOMERS – buyers that purchase a company’s goods and
services.
4. COMPETITORS
- Those who serve a target market with products and
services that area viewed by consumers as being reasonable
substitutes.
- Company must gain strategic advantage against these
organizations.
5. PUBLIC - group that has an interest in or impact on an
organization's ability to achieve its objectives.

1. DEMOGRAPHIC
- The study of human population in terms of size,
density, location, age, gender, race, occupation, and
other statistics.
- Marketers track changing age and family structures,
geographic population shifts, educational
characteristics, and population diversity.
2. ECONOMIC ENVIRONMENT
– consist of factors that affect consumer purchasing power
and spending patterns. This will affect the company marketing
strategy, performance, and status.
INCOME DISTRIBUTION
- Upper Class - Working Class
- Middle Class - Under Class
3. NATURAL ENVIRONMENT - involves the natural resources that
are needed as inputs by marketers or that are affected by
marketing activities.
4. TECHNOLOGICAL ENVIRONMENT
- Most dramatic forces now shaping our destiny.
- Changes rapidly.
- Creates new markets and opportunities.

3. POLITICAL ENVIRONMENT – includes laws, government agencies,

and pressure groups that influence or limit various
organizations and individuals in a given society.
4. CULTURAL ENVIRONMENT – the institutions and other forces
that affect a society’s basic values, perceptions,
preference, and behaviours.
- Core beliefs and values are passed on from parents to
children and are reinforce by schools, churches, business, and
governments.

MARKETING RESEARCH
It is a process that identifies and defines marketing
opportunities and problems, monitors and evaluates
marketing actions and performance, and communicates the
findings and implications to management.
STEPS IN MARKETING RESEARCH
1. Defining the problem and the research objectives.
2. Developing the research plan
3. Implementing the research plan
4. Interpreting and reporting the findings

1.DEFINING THE RESEARCH PROBLEMS AND OBJECTIVES

3 TYPES OF OBJECTIVES
1. EXPLORATORY – to gather preliminary information that will
help define the problem and suggest hypotheses.
2. DESCRIPTIVE to describe the size and composition of the
market.
3. CASUAL – to test hypotheses abut cause and effect
relationships.

1. DEVELOPING THE RESEARCH PLAN

• What features should the product offer?
• How should the new product be prices?
• Where should the product be made available?
• What are the probable sales and profits?
2. GATHERING SECONDARY INFORMATION
1. Secondary data – consist of information already in
existence somewhere, having been collected for another
purpose. It is more quickly and at a lower cost than
primary data.

RESEARCH APPROACHES
• observations, Survey, and experiments
CONTACT METHODS
• mail, telephone, personal, online
SAMPLING PLAN
• Sample size, sampling procedure
RESEARCH INSTRUMENTS
• Questionnaire, Mechanical instruments

RESEARCH APPROACHES
1. OBSERVATIONAL RESEARCH - gathering of primary data by
observing relevant people, actions, and situations.
Ex. Observing numerous customers buying inside the mall.
2. ETHNOGRAPHIC RESEARCH – involves sending trained observers
to watch and interact with consumers in their cultural
habitat.
3. SURVEY RESEARCH – It is the approach best suited to
gathering descriptive information.
3.1. STRUCTURED RESEARCH – use formal lists of questions asked
of all respondents in the same way.
A. DIRECT APPROACH –researcher ask direct questions about
behaviour or thoughts.
Ex. Why don’t you eat at Jollibee?
B. INDIRECT APPROACH
Ex. What kind of people eat at Jollibee?
3.2 UNSTRUCTURED SURVEYS – let the interviewers probe
respondents and guide the interview according to their answers.

ADVANTAGES OF SURVEY RESEARCH

1. FLEXIBILITY – it can be used to obtain many different kinds
of information in many different marketing situations.
2. Provides information are quickly and at a lower cost than
can be obtained by observational and experimental research.

DISADVANTAGES
1. LIMITATIONS – some people are unable to answer questions.
2. Questions asked by unknown interviewers about things they
consider private.
3. Respondents may answer survey questions when they don’t
know answer
4. EXPERIMENTAL RESEARCH – is the experiment that is well
designed and executed.

CONSUMER AND BUSINESS MARKETS

Consumer Markets – are individual customer who has purchasing
power. Usually purchase consumer goods from their chosen
channels for direct consumptions.
Business Markets – includes businessess who purchase (raw
materials) to produce another product.
• Social Factors
• Cultural Factrs
• Personal Factors
Culture – is the fundamental determinant of a person’s wants and
behaviors acquired through socialization processes with family
and other key institutions.

Characteristics of Social Classes

1. With a class, people tend to behave alike
2. Social class conveys perceptions of inferior or superior
position
3. Class may be indicated by a cluster of variables
(occupation, income, wealth)
4. Class designation is mobile over time

Social Roles – consumers choice of product or services depending

on his/her status in the society. What degree of status is
associated with various occupational roles?
Family – influences for consumer markets is high expecially in
our country wheren we value family decisions.
Status – consumers purchase product base on his status in the
society. Symbolic product may bring a certain status to a
consumer or even to the image of the company
Reference Group – are certain group that consumer maybe base
his/her purchases of what this group possess.

CONSUMER MARKET DECISION MODEL

1. PROBLEM RECOGNITION
2. INFORMATION SEARCH
3. EVALUATION
4. PURCHASE DECISION
5. POST PURCHASE DECISION
BUSINESS MARKET
- Any organizations that buy goods and services for use in
the production of other products and services for the
purpose of reselling or renting them to others at a profit.

CHARACTERISTICS OF BUSINESS MARKETS

Sales in the business market far exceed sales in consumer
markets. Business markets differ from consumer markets in many
ways:
1. Market Structure and Demand
- Business markets have fewer but larger customers
- Business customers are more geographically
concentrated
- Demand is different
- Demand is derived
Demand is price inelastic
- Demand fluctuates more and changes more quickly
2. Nature of the Buying Unit
- Business purchases involve more buyers in the decision
process.
- Purchasing efforts are undertaken by professional
buyers.
3. Types of Decisions and the Decision Process
- Business buyers face more complex buying decisions
- The buying process is more formalized
- Buyers and sellers work more closely together and
build long term relationships.

MAJOR INFLUENCES ON BUSINESS BUYERS

Business markets consider several factors before the buyers has
to decide on what to purchase, how to purchase and when to
purchase.
1. ENVIRONMENTAL
- Economic trends
- Supply conditions
- Technological change
- Regualtory and political environments
- Competitive developments
- Culture and customs
2. ORGANIZATIONAL
- Objectives
- Policies and procedures
- Organizational structure
- systems
3. INTERPERSONAL
- Authority
- Status
- Empathy
- Persuasiveness
4. INDIVIDUAL
- Authority
- Age
- Education
- Job position
- Personality
- Risk attitudes

BUSINESS BUYING PROCESS

STAGE 1: PROBLEM RECOGNITION
STAGE 2: GENERAL NEED DESCRIPTION
STAGE 3: PRODUCT SPECIFICATION
- Value analysis helos reduce costs
STAGE 4: SUPPLIER SEARCH
- Supplier development
STAGE 5: PROPOSAL SOLICITATION
STAGE 6: SUPPLIER SELECTION
STAGE 7: ORDER ROUTINE SPECIFICATION
- Blanket contracts are often used for maintenance, repair
and operating items.
STAGE 8: PERFORMING REVIEW
INSTITUTIONAL MARKETS
- Consists of churches, schools, prisons, hospitals, nursing
homes, and other institutions that provide goods and
services to people in their care.
- Often characterized by low budgets and captive patrons.
- Marketers may develop separate divisions and marketing
mixes to service institutional markets.

GOVERNMENT MARKETS
Governmental Units – baranggay, city, national – that purchase
or rent goods and services for carrying out the main functions
of government.
- More than 82,000 buying units
- Require suppliers to submit bids
- Favor domestic suppliers
- Extensive paperworks is required from suppliers
- Most firms that sell to government buyers are not marketing
oriented.
- Some companies have separate government marketing
departments.
- Much of governmen buying has migrated online.

MARKETING SEGMENTATION, MARKET TARGETTING, AND MARKET

POSITIONING (STP)
Target marketing requires marketers to take three major steps:
MARKET SEGMENTATION – identifying and profiling distinct groups
of buyers who differ in their needs and preferences.
MARKET TARGETING – Selecting one or more market segments to
enter.
MARKET POSITIONING – establishing and communicating the key
distinctive benefits of the company’s market offering to each
target.

BASES FOR SEGMENTATION

Segmentations can be done in several ways. It can be:
1. GEOGRAPHIC – includes nation, country, state, region, city,
metro size, density or climate.
2. DEMOGRAPHIC – includes agem gender, race, income,
education, family size, family life cycle, occupation,
religion, nationality, generation, or social class.
3. PSYCHOGRAPHIC – includes lifestyles(like activities,
interests, and opinions), personality and core values.
4. BEHAVIORAL – includes occasions, benefits, user status,
usage rate, loyalty status, buyer readiness, and attitudes.

MARKET TARGETING
- Evaluating and selecting market segments requires assessing
the segment’s overall attractiveness in light of company’s
objectives and resources.
Patterns of Target Market Selections:
• Single-segment concentration
• Selective specialization
• Product specialization
• Market specialization
• Full market coverage

PART I. THE STRATEGIC MARKETING VERSUS TACTICAL

MARKETING
Strategic Marketing
Strategic marketing consists of selling your product in such
a way that you achieve a goal. Goals can include increasing
sales, revenues, market share, segmenting the market or creating
a new brand or position in the marketplace. An example of a
marketing strategy would be to maintain your existing revenues
with less advertising or using fewer locations. Even though
strategic marketing goals might be conceptual, try to make them
as specific as possible. For example, instead of setting a goal
of increasing sales, set a goal of increasing sales by a certain
percentage of among a specific market segment, such as women,
seniors or parents. Part of strategic marketing includes
adjusting your price, position and actual product or service to
help you achieve your goals.
Strategic Marketing contemplates the objectives of the
company as an indelible one. For example, expansion of your
firm, discovering new demographic profile, or simply making a
new brand. For that reason, financial department is a must since
they are responsible in analyzing if the funds are sufficient
enough to support the goals of the organization.
Source retrieved from Sam Ashe-Edmunds (February 04, 2019)
http://smallbusiness.chron.com/tactical-marketing-vs-strategic-
marketing-20704.html
Kotler P. and Armstrong G. (2018) define “Planning as the
process of predicting future events and conditions and of
determining the best way to attain the goals and objectives of
the organization whereas Strategic Planning is a management
process of creating and maintaining fit between the objectives
and resources of the organization and the changing marketing
opportunities.”

Strategic Planning Process

I. Outlining the Corporate Mission
II. Goal Mission
III. Environmental Scanning
IV. Goal Formulation
• In order to be effective, goals must be attainable,
consistent, comprehensive and intangible.
V. Strategy Formulation
VI. Implementation
• The idea is to set and place all the tactics of
marketing and make it happen.
VII. Feedback and control
• Consistent and continuous evaluation will ease the
burden of the managers. It will give them an edge
to take action by knowing it and take rectification
after.

Marketing Planning
• It is a comprehensive proposal that has to be
established for each business, product, or
particular brand.
Marketing Planning Process
I. Study of the Opportunities in the Market
II. STP Marketing
a. Selection – distinct groups (segments)
b. Targeting – marketing programme
c. Positioning – mind of the consumers
III. Marketing Mix
• It is composed of a controllable force, different marketing
strategies that can help the company match its produce
products in relation to the specific wants of their target
market. Kotler P., Armstrong G. (2020) Marketing: An
Introduction, 14th Edition, Pearson Education Inc., pg. 9)
1. Product – combination of either goods or services offer to
the market. Customer Solution.
2. Price – the value or worth of the product as they purchase
the product. Customer Cost.
3. Place – this is where the products will be available to the
market.
4. Promotion – different activities to let the market know
that the product is readily available. Communication.
From the buyer’s perspective, the four Ps can also be termed as
the four A’s:
• Product = Acceptability
• Price = Affordability
• Place = Accessibility
• Promotion = Awareness

Acceptability: the degree to which the product surpasses the

anticipation and hopes of the customer. (Kotler P. and Armstrong
G., 2020, p. 10)
Affordability: the degree to which the customers are ready and
capable in buying the product. (Kotler P. and Armstrong G.,
2020, p. 10)
Accessibility: the degree to which customers can eagerly obtain
to buy the product (Kotler P. and Armstrong G., 2020, p. 10)
Awareness: the degree to which customers are knowledgeable about
the product. (Kotler P. and Armstrong G., 2020, p. 10)

IV. Marketing Control

To be certain that the corrective actions are being taken
into consideration to attain the organizational goals, it
is a must that you consider assessing the action plan made
and the marketing strategies as well. (Kotler, P. and
Armstrong G., 2020, p. 12)
As stated by the authors, there are 2 control process involve
namely:
1. Operating Control examines carefully the continuous marketing
activities conducted in contrast to the annual report plan.
(Kotler, P. and Armstrong G., 2020, p.12)
2. Strategic Control always see to it that the tactics of the
company remain constantly well-coordinated to its
opportunities given. (Kotler, P. and Armstrong G., 2020, p.12)

Tactical Marketing Planning – after you have your objectives, it

is a must for you now to know how to implement your strategies.
Careful study of your plans and strategies can assure you of a
prosperous plan if it was implemented properly to your target
market.
Tactical Planning – it is typically a small kind of planning
that highlights the existing set-ups of the company. Planning an
intensive promotion is usually under this: creating websites,
assigning ads, and so on. While preparing for the planning stage, do not overlook the essence
of budget as it is also
necessary for you to carry out the activities as you planned it
ahead.

PART II. MACRO AND MICRO ENVIRONMENT

The Marketing Environment
• It is actually comprising of the internal (actors)
and external (forces) within and outside the
department of marketing that can greatly create a
huge impact on the capability of the company to
uphold and sustain the fruitful interactions with
their target market.

The Company’s Microenvironment

• Company’s Internal Environment:
- It involves the actors connected in the
organization that can significantly affect
its capacity to serve their target market.
Figure 5: Actors in the Microenvironment
Source retrieved from: Kotler P. and Armstrong G. (2018).
“Principles of Marketing, 17th Edition Pearson Education Inc.,
New York
Figure 5 indicates the different actors in the microenvironment.
These internal forces namely the company, suppliers, marketing
intermediaries, competitors, publics and customers are vital in the attempt to make the
programs of marketing successful.
(Kotler, P. and Armstrong G., 2020, p. 2)
Factors:
• The Company – all the units working in the
organization must be well coordinated to ensure that
they can meet the satisfaction of their customer.
• Supplier – the marketing manager must continuously
look out at all times the availability of the supply
in order to avoid surplus or shortage which are both
unhealthy to the organization’s profitability and a
dilemma in attempt to stimulate customer
satisfaction.
• Marketing Intermediaries – it eases the burden of
the company since they are assisting them in
promoting, selling and distributing their products
like for example the resellers who buys in small
quantity, the physical distribution firms who
assists the organization in distributing the
products, the marketing services agencies and the
financial intermediaries who provide somehow the
capital needed in expanding their business,
• Customer – people who buys goods and pays for
services to the seller. Usually, the target of
companies to persuade with their products and
services.
• Competitors – a company, individual or team who
competes with one another for better deals or
products for the people to be in their favor.
- Those who serve a target market with
products and services that are viewed by
consumers as being reasonable substitutes
- Company must gain strategic advantage
against these organizations
MACRO ENVIRONMENT
• A major external and factors that influence an
organization's decision making, and affect its performance.
Figure 6: Major Forces in the Company’s Macro
environment
As shown in Figure 6, the company and all of the other actors
operate in a larger macro environment of forces that shape
opportunities and pose threats to the company.
Source retrieved from: Kotler P. and Armstrong G. (2018).
“Principles of Marketing, 17th Edition Pearson Education Inc.,
New York
FACTORS
• Demographic
- Demography is the study of human
population in terms of size, density,
location, age, gender race, occupation,
and other statistics.
- Demographic environment involves people,
and people make up markets.
- Demographic trends include changing age
and family structures, geographic
population shifts, educational
characteristics, and population diversity.
- Demographic Environment

Baby Boomers – born 1946 to 1964

Generation X – born between 1965 and 1976
Millennials – born between 1977 and 2000
Generation Z – born after 2000

• Economic Environment
- Consist of factors that affect consumer
purchasing power and spending patterns.
This will affect the company marketing
strategy, performance and status.
- Value marketing involves offering
financially cautious buyers’ greater value—the right combination of quality and
service at a fair price.
- Income Distribution - Over the past
several decades, the rich have grown
richer, the middle class has shrunk, and
the poor have remained poor.
• Natural Environment
- Involves the natural resources that are
needed as inputs by marketers or that are
affected by marketing activities. This is
also considered as one of the factors to
consider in marketing.
- Environmental sustainability involves
developing strategies and practices that
create a world economy that the planet can
support indefinitely.
• Technological Environment
- Most dramatic force now shaping our
destiny
- Changes rapidly
- Creates is to make practical, affordable
products
- Safety regulations result in higher
research costs and longer time between
conceptualization and introduction of
product.
- Example: Marketing technology: Disney is
taking R F I D technology to new levels
with its cool new Magic Band R F I D
wristband.
• Political Environment
- Includes Laws, Government Agencies, and
Pressure Groups that influence or Limit
Various Organizations and Individuals in a
Given Society.
- Political and Social Environment -
Increased emphasis on ethics, socially
responsible behaviour, cause-related
marketing
• Cultural Environment
The institution and other forces that
affect a society’s basic values,
perceptions, preference, and behaviors.
- Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business and government
- Secondary beliefs and values are more open
to change.
- Core beliefs and values are persistent and
are passed on from parents to children and
are reinforced by schools, churches,
businesses, and government.
- Secondary beliefs and values are more open
to change and include people’s views of
themselves, others, organizations,
society, nature, and the universe.
Responding to the Marketing Environment
Views on Responding
• Uncontrollable
– React and adapt to forces in the environment
• Proactive
– Take aggressive actions to affect forces in the
environment
• Reactive
– Watch and react to forces in the environment