MARKETING

-applicable in different forms of business organization be profit organizations like,

Jollibee food Corps, SM Group of companies ,
-organizational functions 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 Concept
-aligned with goals of business, which is earning profit on short term and long term basis.
Return on investment in a short term possible is always what company wants .
- identifying the needs of your target customer first before any Strategy being develop
- modern time businesses are expected to adopt single concept even if it is tried and tested.
Various concept is the following:
1.Product Concept- used in many businesses now a days. Business believes that company
must look for interested customer's right after producing goods services..
2.Selling Concept- company must first produce product and later on create selling strategy
that fit to convince target market.
3.Marketing Concept- define first the target market, identify their needs and wants , and
create product that suits the needs of desired market.
Five Eras of Marketing History
1.The Production Era - before 1925, most firms in highly develop countries the like westem
Europe and Northern America focused on mass production where this country produces a lot
of goods and services in good quality. high quality product basically sell itself.
2.The Sales Era- production techniques in US and Europe become more sophisticated
output grew from 1920s into early 1950's . Companies with sales orientations assumes
customers will resist
3. Marketing Era- 1950 to 1960 , marketing activities , actions and implementations should
one department. This department is known as marketing department.
4. Relationship Era- established importance of relationship to customers. Customers
relationship is key to better business performance. company consider relationship to
customers in marketing strategy.
5. Social Era- 1975, importance of giving back to society. Social responsibility begun to
take pat of marketing strategy.

NO-TRADITIONAL MARKETING
*Person marketing- Efforts to cultivate attention, interest, and preferences of target market
toward a person.Example: Celebrity endorsements
*Place marketing--Efforts to attract people and organizations to particular geographic area.
*Cause marketing- Identification and marketing of social issue, cause or idea to selected
target markets. Many profit-seeking firms link products to social causes
*Event marketing- Marketing Of sporting, cultural, and charitable activities to selected
target markets (concert, fun run)
*Organization marketing- Intended to persuade others
THE MARKETING PROCESS:
1.Situation Assessment- involves comprehensive research into market place and customers
to be served. external aspects of business situation (customers and competitors) and internal
aspects (your operation's present and future capabilities) must be analyzed
2. Marketing Strategy- determining how to approach identified customer needs and wants
and how to produce products and services to satisfy them. two (2) important elements:
a. selection of the target markets- people you intend to pursue as Customers
b. Value proposition to each target market- unambiguous description of benefits, target
market will receive by purchasing your products/services.
3. Marketing Mix Decisions- involve making detailed decisions about marketing mix (4
Ps). include formulating short-term decisions and marketing plan.
4. Implementation and Control- adjust or revise the plans as they are being implemented. it
involves monitoring execution and making changes to promotions or perhaps to products and
services, monitoring results and making better plans next time or evaluating successes and
failures
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UNIT 2: CUSTOMER RELATIONSHIP: CUSTOMER SERVICE
Transaction-Based Marketing to Relationship Marketing
Transaction based marketing - business tactic that emphases on lone, "point of sale"
trades. importance is on get most out of adeptness and dimensions of specific sales rather
than mounting a cooperation with buyer. focused on attracting consumers.
Relationship marketing- expansion, evolution, and upkeep of long-term, cost-effective
exchange relationships with individual customers, suppliers, employees, and other partners
for mutual benefits. introduces the scope of external marketing relationships to include
suppliers, customers, and referral sources.
-focus on long term relationship with customers, emphasizing on retaining customers thru
data based. relies on data base that records customer records on customers’ taste and
preferences and life style

1ST Customer of the Organization - employees serves as 1st customer within organizations.
observe the same high standard of customer satisfactions are consider as external customers
of 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:
1. Be relevant. customize or even contextualize your communications to personalize your
audience experience.
2. Provide value- Give away some of your secrets. Provide answers to some audience’s
most pressing questions. can gain credibility, become authority, or go-to resource on the
subject.
3. Welcome dialogue-Listen to community members and respond to what was said.
Dialogue helps to establish relationships and engage your communities.
4. Be responsive- Respond to feedback (both negative and positive),simply letting your
audience know you’ve heard what they said. Often, turn negative experience into positive
one
5. Be respectful - make request process easy and transparent. And see #4. Respond
respectfully to feedback.
6. 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:

 First Level: Focus on Price- Price is most superficial level, least likely to lead to long-
term relationships. Marketers rely on pricing to motivate customers
 Second Level: Social Interactions - Customer service and communication are key
factors. Ex: dress shop conduct a special fashion show.
 Third Level: Interdependent Partnership - Affiliation changed into essential changes,
ensure partnership and interdependence between buyer and seller.
How to Keep Customers?
 Customer churn - Customer turnover is expensive for company, firms should generate
more profits with each additional year of relationship
 Frequency marketing- marketing programs, entice customer do repeat purchases. Ex:
Reward Programs, Contest, Raffle promos
 Affinity marketing - Solicits responses from individuals who share common interests
and activities
 Retrieving Lost Customers- Customers leave for reasons according to
• Boredom • Move to a new location • No longer have a need forproduct
• Prefer competing products
Essential Components of an Excellent Customer Service
1. Prioritize each customer – Customer is life blood of company and reason why businesses
exist. job of business to make sure that customers are happy with their experience.
2. Strive to have a great reputation- Reputations is one important factor of customers’
choice of their provider.
3. Apologize when needed- Customer service failure is avoidable circumstances in business
operations especially in service business.
4. Be reachable -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.
5. Focus on delivering a consistent experience- Excellent customer service involves
interactions, dependent on employees can adjust themselves to personality of customers.
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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.
Macro environment: 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 tat 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. DECRIPTIVE to describe the size and composition of the market.
3. CASUAL – to test hypotheses abut cause and effect relationships.
2. DEVELOPING THE RESEARCH PLAN
 What features should the product offer?
 How should the new product be prices?
 Were should the product be made available?
 What are the probable sales and profits?

3. 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
costs 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 customer 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
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