TEM 100: THE ENTREPRENEURIAL MIND | LECTURE

MARKETING: CREATING AND CAPTURING CUSTOMER VALUE

MIDTERMS | S.Y 2022 – 2023
ALELI SAAVEDRA

OUTLINE million policy at the age

I. What is Marketing? of 35y.o
A. Investments ● Get 2 or 3 policies kasi
B. Marketing Process nga bata pa kayo.
C. Marketing Defined ● The insurance products
II. Understanding the Marketplace and Customer nowadays are very
Needs
much improved even if
A. Customer Needs
B. Customer Demands you will not collect it yet
C. Market Offerings - Products, Wants, and you don't need to die to
Demands be able to enjoy your
D. Customer Value and Satisfaction life insurance.
Expectations ■ CONDOMINIUM UNIT OR
E. Exchanges and Relationships HOUSING
● you dont have to arise
WHAT IS MARKETING? the cash to pay for the
● Simplest Definition
housing unit. Once you
○ Marketing is managing profitable
are a member for
customer relationships.
PAG-IBIG. You can pay
○ Attract new customers by promising
to finance the housing
superior value
unit.
○ Keep and grow current customers by
● It is cheaper to buy a
delivering satisfaction
condo unit or housing
unit pag cinoconstruct
A. INVESTMENTS
palang siya so if you
● INVESTMENTS
happen to meet a real
○ Assets that will allow you to earn ad
estate agent. Mas
because you these assets it will add to
cheaper yan siya kesa
your net worth
sa finish na condo unit.
○ Investment is separated from the
● My recommendation is
entrepreneurial endeavor, you have to
you go for under
put own business using your original
construction pa lang
product or service concept
and you take out a loan
○ Net worth is your assets plus your
from PAG-IBIG. You
liabilities or financial obligations
will pay through salary
○ Best investments for us
reduction pero once na
■ INSURANCE
andyan na ang condo if
● Number 1 investment is
you will not live there
insurance for long term
pwede mo siya iparent.
purposes.
Ang rent na makukuha
● Ex. As a start kuha ka
mo yan ipangbayad mo
policies worth two
sa PAG-IBIG
million ang computation
■ FOOD CART
nyan is based to your
● If you dont have a
age then sasabihin mo
original product
10 years to pay mag
concept or service na
cocompute si agent
pwede pang business
you are only 25 years
itong mga food cart
old. Well by that time
franchise pasok yan
you are done paying
kasi yung food market
after pC0Cing for 10
although sabihin natin
years you have 2
andaming nag bebenta

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 ng pagkain dyan pero
marami parin talaga
ang bibili sayo
depending where you
will put up your food
business because in
food busines there is
no customer loyalty
kung anong bago gusto
nila itry yan you just
have to look for a
location with high foot
traffic malapit sa school
and palengke
● Food carts are cheaper
kung meron lang kayo
50-100k may mga food
cart na available and
they will you choose
the best location.
■ UNIT INVESTMENT TRUST
FUND
● If you are very
conservative investor
this will allow you to
invest in stock market
pero mas lesser ang
risk nito kesa stock
trading directly sa stock
market na may broker
kayo or agent
● Courtesy of the bank
offers to you the
opportunity to invest on
blue chip companies
ang kinukuha dito ng
mga banks ay yung
mga stable na
malalaking 0C lang and
this is where they will
invest your money
● You can start in a small
amount kasi in stock
market kung directly
kayo mag iinvest jan
bibili kayo ng stocks
hindi man pwepwedeng
mag start ka lang ng 1k
pesos kasi may
minimum requirment sa
stock market pero sa
UITF you can start with
1k pag umabot na kayo
ng 5k dun na iconvert
ang amount sa number
of shares you have and
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you can monitor the
value of it everyday
● What is marketing?
○ When we say marketing it is attracting
customers by promising superior value
whenever you came across an
advertisements in tv or nakinig kayo sa
radio or sa youtube and its talking about
certain product and telling you the
benefits in this product what can you get
out of this product
● This is the enterprise initiative to attract
new customers
○ On the other hand pag naattract
na yung customers ayaw ni
marketer na hindi na kayo bibili
next time syempre gusto di
marketer na paulit ulit kayo bibili
so keep and grow current
customers by delivering
satisfaction.
B. MARKETING PROCESS
● Marketing process first and foremost point is to
understand the marketplace and customers
needs and demands
○ Mahirap mag conceptualize ng
product and para saan is it only
based on your personal need
kasi nakita mo na ay may
personal experience ako
marami akong complain sa
product na existing in the
market right now gagawa na
lang ako ng aking sarili and
then i will try to convert it into a
business opportunity and i will
market this into many people
out there
○ Also very important to check
kung may ibang nag
cocomplain about sa product
○ nayan, ilan kayo? Ano ba talaga
ang complain? So that is
understanding the market place
and customers needs and
wants.
○ Once you will be able to
establish that then you can start
 working on designing
customer driven marketing
strategies together with that is
constructing an integrated
marketing program that
delivers superior value.
○ You have to build profitable
relationships and create
customer delight so that at the
end of the day once again we
are able to capture value from
customers to create profits
and customer equities.
C. MARKETING DEFINED
● Marketing defined is a social and managerial
process by which individuals and
organizations obtain what they need and
want through creating and exchanging value
with others.
○ It is a social process because you will
have to undertake studying the needs
and wants of people and people are the
community, people are the society and
once we are able to identify the needs of
the people and we have studied
carefully what product will be accepted
in the market there is a need to execute
management to be effective in marketing
that product so you still have to do
planning, organizing, creating and
controlling. These are four basic
management functions that are
necessary also in marketing.
○ Managerial process by which individuals
and organizations obtain what they need
and want through creating and
exchanging value with others
○ Exchange is another keyword because
ultimately the marketers would like the
buyers to acquire the product and then
paying the price for the product
● We define marketing as a process in which
companies create value for customers and
build strong customer relationships to
capture value from customers in return.
II. UNDERSTANDING THE MARKETPLACE
AND CUSTOMER NEEDS
● People and companies have needs when we say
they need states of felt deprivation, something
that we cannot live without.
○ Pag wala yan mamatay tayo kasi nga
needs like physical needs: food, clothing
warmth, or safety. Social needs like
belonging and affection needs or
individual needs for knowledge and
self-expression.
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○ Abraham Maslow’s hierarchy of
needs is the very sikat sa marketing
kasi lagi yan siyang ginagamit to depict
the needs of people. Sa marketers
naman ginagamit yan siya as a basis in
better understanding the needs of
people so see abraham maslow sabi
niya yung mga needs ng tao are arrange
in a hierarchical form. So lowest to
highest.
■ So as we go higher
paliit ng paliit yung
needs natin so on the
lowest level eto yung
mga physiological
needs that we cannot
live without.
■ Prolong absence of
food, water even
clothes diba kasi wala
kang protection sa
body mo can cause our
deaths.
○ Marketers will have to understand is this
a physiological need that is lacking in
the market then higher than the
physiological needs are Abraham
Maslow’s hierarchy of needs meron
safety needs basta ang pinaka mataas
is self-actualization needs so according
to Abraham Maslow, people would reach
a certain level of their lives where they
will experience actualization need this is
the time when these individuals have
already achieve whatever they wanted
to achieve.
A. CUSTOMER NEEDS
● NEEDS - states of felt deprivation
○ Physical – food, clothing, warmth, safety
○ Social – belonging and affection
○ Individual – knowledge and
self-expression
● We have to take a look at the wants are the
subject plus objects that take the form of the
needs shape by culture and individual
personality.
○ Hindi tama nas sinasabi ng ordinary
people na wants lang man yan hindi yan
needs do not spent for that not really in
marketing wants are the specific objects
or form of the needs that you have.
○ So iba iba man tayo iba iba ang culture
natin yung personality natin so iba iba
din preference natin. All of us need to
eat but if you notice iba iba ang
preference
 ○ That is why marketers will have to study
consumer behavior carefully because
iba yung based on the individual
personality and culture even in social
status.
○ Iba ang behavior ng mga rich people at
behavior ng mga ordinary people. In
marketing it is called the high-end
market for the rich and low-end market
for the poor.
B. CUSTOMER DEMANDS
● DEMANDS – human wants backed by buying
power
● Probably the market is looking for a certain
product pero ang tanong can they pay for the
product so the marketers will have once again to
study if the market has the buying power.
○ Actually many times ginagawa ng
company kumukuha sila ng 3rd party to
the marketing research for them.
○ They will administer a survey tapos sa
survey may questions like “how much is
your average annual household
income?” Ultimately ito magiging basis
ni marketer in commercializing the
products kasi meron talagang demand
C. MARKET OFFERINGS - PRODUCTS, WANTS, AND
DEMANDS
● Market offerings are some combination of
products,services, information, or experience
offered to a market to satisfy a need or a
want.
○ When you do online shopping diba may
iba iba kayong things na you will see in
the online shop. Online shops are doing
its best to be able to make the
customers experience shopping the way
that they experience shopping in a
physical store. It tends to be limited in
terms of shopping experience because
you cannot walk around you cannot
touch the items you cannot inspect the
items. Online shops are doing whatever
they can para maramdaman parin natin
na parang naglalakad tayo sa shop.
○ I believe that the product review is on of
the most important things that will help
you decide to buy something online
● Marketing myopia
○ Is focusing only on existing wants and
losing sight of underlying consumer
needs.
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D. CONSUMER VALUE AND SATISFACTION
EXPECTATIONS
● CUSTOMERS
○ From expectations about the value and
satisfaction that various market offerings
○ Will deliver and buy accordingly
● MARKETERS
○ Set the right level of expectations
○ Not too high or low
E. EXCHANGES AND RELATIONSHIPS
● EXCHANGE
○ The act of obtaining a desired object
from someone by offering something in
return
○ Simply means that customers have the
money to pay for the product and the
marketer has something to offer.
○ So now, the buyer will pay to acquire the
product, and the marketer will giver the
product. (there is exchange)
○ Anong issue diyan ma’am?
■ Between the decision to buy, an
actual buying, there is still a gap
and it is still possible that your
decision to buy can still change
and is possible that it will not
reach the point or situation of
“actual buying”
■ Companies are working on a
strategy to make sure that when
your buyer have decided to
purchase the product/item today
because she/he has the money,
it will be continuous until the
actual acquisition of the
product. The challenge is, what
strategies are those?
■ Ex: Today, you're going to the
shop, you have the money, and
you're going to buy something,
but then when you are in the
shop and are about to pay, you
suddenly got attracted to
something you saw, and then
you said “wait lang, tingin2 nlng
muna ako” So, in 20 minutes
you changed your mind and
chose the new item you saw. So
ayon, nawala na yung sales
opportunity sa object that you
were supposed to buy. And
marketers are not happy about
that.
○ Sometimes, when you buy something
and the salesperson knows you and you
both have a previous agreement of
going to the and buy this stuff. The
 salesperson is likely to wait for you. ○ Costly siya, so sometimes, marketers
Nasa door ka palang, they’re going to decide that they have to let go one of
approach you and greet you na. Until their buyers kasi it is not profitable and
such time, kinuha na nila ang payment sometimes, nalulugi na ang business.
mo and may resibo na siya. That is a ○ It is very important to talk about
close deal. Happy si marketer. As much relationship as part of better
as possible that is how it should work. understanding of the marketplace
That’s working out to make sure the
buyer won’t change his/her mind. Question: Diba Ma'am enough naman that we are able to
establish there is a demand, and then we understand
● RELATIONSHIP better what objects will take the form of that need (for
○ Marketing actions try to create, maintain, example), and then eventually we're able to know that
grow exchange relationships. there is really a demand. Meaning to say, people have the
○ Hindi na tayo transaction basis, hindi na purchasing power to pay for the product. Diba enough na
tayo one-time deal with the customer. man yon maam?
“We would like to have our existing ● You know, to put up the business, and
customers to become loyal to the brand commercialize the product, it is still not enough.
and speak good about the brand to be ● Although it is enough when it comes to
able to convince others. forecasting in terms of production, how many
○ It is very important to think about an units will be offered to the market initially, enough
effective strategy in handling CRM na yung naestablish and demand.
(Customer-relatinship Management) ● However, when it comes to the marketing mix
○ DIto rin lumalabas na “we will have to that you are going to develop, the
evaluate” what group of customers are customer-driven strategy you’re going to develop,
profitable, what group is not profitable. it is very important that we include exchange
○ This is very relevant if you are catering and relationship.
to more than one market segment.
■ Ex: Ma’am meron po kaming
tatlong groups of customers
(1)households (2)resellers,
pwede silang magbuy and sell
sa aming product, and then
(3)international market because
we also export our product.
Each of these groups will have
different marketing strategies.
Although the product has the
same core function and benefit,
it is still different because when
you export there are
requirements that buyers ask
for in the international market
(e.g. packaging, labelling) And
with that, you will have to abide
so the international market and
you have an agreement. As a
result, you can determine
among these three buyers is or
are profitable and which one is
not.
○ Sometimes, costly rin ang CRM. When
you manage Customer-Relationship, this
is not simply about what is enough, it is
beyond the your product and your
business can offer. You are still doing
something else to make the market feel
that you care.

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 OUTLINE
I. Designing a Customer-Driven Marketing
Strategy
A. Selecting Customers to Serve
B. Choosing a Value Proposition
II. Marketing Management Orientations
III. Preparing an Integrated Marketing Plan and
Program
IV. Building Customer Relationships
A. Customer Relationship Management
(CRM)
I. Relationship Building Blocks:
Customer Value and
Satisfaction
II. Customer Relationship Levels
and Tools
III. Relating with More Carefully
Selected Customers
IV. Relating More Deeply and
Interactively
V. Capturing Value from Customers
A. Creating Customer Loyalty and
Retention
B. Growing Share of Customer
C. Building Customer Equity
I. DESIGNING A CUSTOMER-DRIVEN MARKETING
STRATEGY
● We define marketing management as the art
and science of choosing target markets and
building profitable relationships with them.
● Two important questions:
○ What customer will we serve (what's
our target market)?
○ How can we serve these customers best
(what's our value proposition)?
● So in marketing, you have your
Integrated-Marketing Program or the
Marketing mix. However, it is not guaranteed
that you will be successful unless make the right
decisions.
● In doing the right decisions, we will look at the
different management functions that enterprises
will have to execute.
● Planning, organizing, actuating or the
implementation of all these things, and
controlling
● Management will make sure that the enterprise
is on the right track, is able to make relevant
decisions because all of these decisions are
anchored on the existing plan that the enterprise
has.
For marketing to succeed there is still a need to plan,
● The tagline is the summarized form of the value
organize, implement and evaluate. Together with that,
proposition. It sends out the message that our
company are following a certain guide or principle in their
brands stand for this and we are better than our
choice of marketing strategy. They choose either of the
competitors based on the tagline.
orientations on the picture above.
A. SELECTING CUSTOMERS TO SERVE
● MARKET SEGMENTATION refers to dividing the
markets into segments of customers
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○ To divide the whole market into groups
of customers according to certain
characteristics.
○ You will group people if you re targeting
individuals as end users of your
product
○ Ex: You will decide to group
customers/entire population in
davao city based on
demographics (by age, gender,
income) and be able to come up
with several groups.
● TARGET MARKETING refers to which segments
to go after.
○ After grouping you will use target
marketing
○ Selecting which of the groups you are
likely to target and offer a product for it.
○ Bakit need pa igroup maam? Bakit di
nalang natin gawin for everybody?
○ It is discouraged in marketing
kasi a product doesn’t always
apply to all.
● POSITIONING
● In choosing customers to serve, based on the
needs, wants, and demands, we have to do
Market segmentation, Target Maketing, and
Positioning.
● The elaborated explanation on these things is
called STP (Segmentation, Targeting and
Positioning) in marketing.
B. CHOOSING A VALUE PROPOSITION
● A brand’s value proposition is the set of
benefits or values it promises to deliver to
consumers to satisfy their needs.
● Value proposition is at the heart of your
marketing mix.
● What makes your product better than the existing
products? What’s in that product that is very
beneficial to your target market?
II. MARKETING MANAGEMENT ORIENTATIONS
● THE PRODUCTION CONCEPT
○ The production concept holds that
consumers will favor products that are
available and highly affordable.
○ If a company is following the production
concept, the company believes that their
customers are buying products that are
always accessible, available, and highly
affordable.
○ So, what is its implication to the
company?
■ The company will have to make
sure that how they will produce
the product is in mass
production and production cost
must be very low.
■ There is no mention of quality.
○ Two basic components of Production
cost:
■ Direct Labor
● Gumagawa ng product
■ Direct Materials
● Raw materials that you
will use to produce the
product.
● THE PRODUCT CONCEPT
○ The product concept holds that
consumers will favor products that offer
the most quality, performance, and
feature. Focus is on continuous product
improvements.
○ Customers will only buy the product if
from time-to-time our product is updated
and upgraded because they will only buy
a product with most quality,
performance, and features.
○ The company expects to have a more
expensive production cost/high
production cost.
○ The companies will not only research as
to how much more can they upgrade the
product, but will also continue to include
quality materials in the production oif
product.
○ Therefore, it is expected that the product
will have a higher price/expensive.
○ A lot of investments or expenses is
incurred in the continuous product
improvements.
● THE SELLING CONCEPT
○ The selling concept holds that
consumers will not buy enough of the
firm’s products unless it undertakes a
large scale selling and promotion
effort.
○ Used by companies that are marketing
products that have customers who
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decide to only buy the product if they are
convinced through your selling and
promotion effort.
■ Ex: Insurance
○ Products that you can’t easily convince
people to buy.
○ It needs salespeople to explain and
present the product to the potential
buyer.
■ Ex: pharmaceutical companies
market their products to
hospitals, pharmacies, clinics
and other medical
establishments. It doesn’t
match if your target market are
medical establishments and
you’re going to promote it
through social media.
■ Your promotion strategy doesn’t
match with your supposed
target market.
● THE MARKETING CONCEPT
○ The marketing concept depends on
knowing the needs and wants of the
target markets and delivering the
desired satisfactions better than
competitors do.
○ Companies believe that customers will
only patronize the product if it answers
their needs.
○ That is why the enterprises will have to
study the market.
● THE SOCIETAL MARKETING CONCEPT
○ The societal marketing concept holds
that marketing strategy should deliver
value to customers in a way that
maintains or improves both the
consumer’s and society’s well-being.
○ Mas magastos. Kasi you will have to
take initiatives. You need to consider a
lot like educating people as well as
taking care of the environment.
■ Ex: Human Nature
III. PREPARING AN INTEGRATED MARKETING PLAN
AND PROGRAM
● The marketing mix is the set of tools (four Ps)
the firm uses to implement its marketing strategy.
It includes the product, price, promotion, and
place.
● The firm must blend each marketing mix tool into
a comprehensive, integrated marketing
program that communicates and delivers the
intended value to chosen customers.
○ This is where we say that the marketing
mix must be properly aligned.
○ So when you look at your target market
(high-end or low-class market) that
marketing mix should correspond
properly to that particular target market.
○ So if your target is high-end, from your
product down to the promotion will have
proper alignment.
○ You will have to product a product that is
really intended for the need of the
market based on their preference.
○ Ex: Expensive product = expensive price
IV. BUILDING CUSTOMER RELATIONSHIPS
A. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
● In this broader sense, customer relationship
management is the overall process of building
and maintaining profitable customer relationships
by delivering superior customer value and
satisfaction.
○ In market, there should be unconscious
effort to manage customer relationship,
especially always profitable customer
relationship.
I. Relationship Building Blocks: Customer
Value and Satisfaction
○ A customer buys from the firm that offers
the highest customer-perceived value
— the customer’s evaluation of the
difference between all the benefits and
all the costs of a market offering relative
to those of competing offers.
■ Expect to still see complaints
from people since it is based on
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different people perspective,
opinion, and satisfaction.
○ Customer satisfaction depends on the
product’s perceived performance relative
to a buyer’s expectations. If the
product’s performance falls short of
expectations, the customer is
dissatisfied.
II. Customer Relationship Levels and Tools
○ Companies can build customer
relationships at many levels, depending
on the nature of the target market.
○ Many companies offer frequency
marketing programs that reward
customers who buy frequently or in large
amounts.
■ Pwede sa B to B
(Business-to-business) and B to
C (Business-to-Customers)
because this is intended for
buyers that are buying in large
amounts or bulk.
■ Ex: Wholesale,
○ Other companies sponsor club
marketing programs that offer
members special benefits and create
member communities.
■ More applicable to B to C
(Business to Customers).
■ Customers become part of lie a
certain club or community and
enjoy certain benefits.
III. Relating with More Carefully Selected
Customers
○ Today, most marketers realize that they
don’t want relationships with every
customers.
○ Instead, they target fewer, more
profitable customers.
○ If customers are not profitable anymore,
the company or you can just fire them. It
is normal in business enterprises
because it is also costly to maintain
customer relationship.
IV. Relating More Deeply and Interactively
○ Relating more deeply and interactively
by incorporating more interactive two
way relationships through blogs,
 Websites, online communities and social B. GROWING SHARE OF CUSTOMER
networks ● Beyond simply retaining good customers to
○ Today’s consumers have more capture customer lifetime value, good customer
information about brands than ever relationship management can help marketers
before, and they have a wealth of increase their share of customer—the share
platforms for airing and sharing their they get of the customer’s purchasing in their
brand views with other consumers. product categories.
Thus, the marketing world is now ● This is the share that marketers get of the
embracing not only customer customers purchasing in their product categories.
relationship management, but also
customer-managed relationships.
○ A growing part of the new customer
dialogue is consumer-generated
marketing, by which consumers
themselves are playing a bigger role in
shaping their own brand experiences
and those of others. C. BUILDING CUSTOMER EQUITY
● Customer equity is the total combined customer
V. CAPTURING VALUE FROM CUSTOMERS lifetime values of all of the company’s current
● The final step involves capturing value in and potential customers.
return in the form of sales, market share, and ● All your lifetime purchases that will add up to the
profits. customer equity.
● By creating superior customer value, the firm
creates highly satisfied custoemrs who stay loyal
and buy more. This, in return, means greater
long-run returns for the firm.
● At the end of the day, marketers would like to
acquire value from customers through profit and
customer equity.

—----------------------------------------------------------------------
“Each new day is a new opportunity to improve
yourself. TAKE IT. And make the most of it.”

A. CREATING CUSTOMER LOYALTY AND

RETENTION
● Customer lifetime value is the value of the
entire stream of purchases that the customer
would make over a lifetime of patronage
● If you are catering to individual consumers (ex:
on an annual basis), How often?

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