MARKETING Q2

MARKETING REVIEWER

WEEK 1

PRODUCT

-core of marketing mix

-definea the price, promotion and distribution

-any tangible or intangible good, service, or idea

-defined as a "thing produced by labor or effort"

SERVICE

-activities, benefits and satisfaction offered for sale -Kotler et al (2005)

EXPERIENCE

-allows consumer to engage in fantasies, feelings, and fun

PRODUCT is the first element of marketing mix

PRODUCT LEVELS:

1. Core or Generic product

-the purpose why product is created

2. Formal product

-effectively differentiate your product

3. Augmented product

-supporting services surrounding the product

Classifications of Products/ Goods:

According to Use
Consumer Goods: personal/household consumptions

Industrial Goods: raw materials /production of other goods

According to Differentiation
Differentiated Goods: Branded ex. Ford, Mazda

Undifferentiated Goods: not branded ex. rock salt

According to Durability
Consumables: edible and non-edible; a short period of time use

Semi-durables: longer period of time use ex. clothes, shoes, jackets

Durables: last a long time use ex. home appliances, houses, etc.

According to Types
Convenience Goods: frequently purchased, inexpensive ex. food

Shopping Goods: less frequent purchased, ex. shoes, bags

Specialty Goods: requires large effort to buy ex. houses, cars

Unsought Goods: seldom purchased ex. investments, plans

*THE SEVEN NEW PRODUCT DEVELOPMENT (7 NPD) PROCESS:

1. IDEA GENERATION- the systematic search for new-product ideas

2. IDEA SCREENING- Filtering of ideas using a predetermined criteria

3. CONCEPT DEVELOPMENT AND TESTING-

4. BUSINESS ANALYSIS-the pencil pushing stage

5. PRODUCT DEVELOPMENT - product concept is converted into tangible working prototype

6. MARKETING TESTING-tangible product is now marketed in a limited geographical area

7. PRODUCT COMMERCIALIZATION- introducing product into the market

*PHYSICAL PRODUCT HAS SEVERAL ADDED COMPONENTS:

-PACKAGING- wrapping material

-LABELING- display of information about the product

WEEK 2

PRICE-amount of money charged for a good or service

PRODUCT COST ESTIMATION- to determine the price of a product or service

2 types of costs are calculated:

(1) UNIT VARIABLE COSTS- refer to how much it would cost to manufacture one unit of a
product.

(2) FIXED COSTS- expences associated with your business production that do not change over
a short period of time

*PRICING STRATEGIES

1. mark-up pricing - adding a certain value or percentage

2. Target return pricing - the manufacturer determines the price based on a target rate

3. Odd pricing or psychological pricing - setting prices lower than a whole number.

4. Loss leader pricing - aggressive pricingstrategy of selecting one or more products

5. Price lining - pricing strategy used by retailersto simplify a consumer's buying decision

6. Prestige pricing - niche selling strategy that involves setting prices at a high level

7. Marginal pricing - prices its product at a range below its unit cost

8. Predatory pricing - offering aStrategiesprice lower than the unit variable cost,

9. Going rate pricing - examining the prices of their competitors

10. Promotional rate pricing - strategy involving atemporary reduction in the selling price

Two pricing strategies can be used when new products are introduced:

1. Price skimming - charging the customer a relatively high price

2. Penetration pricing - where the new product is initially offered at a low price to help a new
product

WEEK 3

PLACE-the distribution channel in the marketing mix -where the business is located.

INTERMEDIARY- when channels can have various levels *RATIONALE OF MARKETING

INTERMEDIARIES:

1. whole salers- purchase goods from a producer in bulk order

2. Distributor - similar to wholesalers but differ in one regard.Distributors carry products from a
single brand
3. Agents - who act as a distribution arm

4. Retailers - they stock the goods bought from wholesalers and/ordistributors and sell them

*THE OTHER KEY FUNCTION OF INTERMEDIARIES:

1. Information collection and dissemination

2. Product storage and movement

3. Operational Financing

4. Product promotion

5. Risk-taking

SUPPLY CHAIN- the network of all individuals, organization, resources, activities involved in the
creation of product.

*PRODUCT DISTRIBUTION TYPES

1. exclusive distribution -limited to a selected number of dealers,

2. Intensive Distribution - fast-moving consumer goods and conveniencegoods

3. Selective distribution - positioned in between exclusive and intensive distribution.

PROMOTION- the communication component of the marketing mix.

*THE MARKETING COMMUNICATION MODEL- illustrates how marketing companies

communicate to their customers

step 1: advertiser encodes the message through signs

Step 2: He or she identifies the target market

Step 3: He or she sends a message to the intended customer

ADVERTISING- any paid form of communication and public presentation of products, services
or ideas.

BRAND AWARENESS- the extent to which consumera are familiar with the distinctive

*TYPES OF MEDIA AND TECHNIQUES USED IN ADVERTISING:

1. Traditional media and technique(TMA)

-radio - the most accessible media and viable ads
-television - broadcast through both free and cable channels

-print - favored by many advertisers

2. Alternative Media and Techniques(AMT)

-billboard - low cost but high exposure to heavy traffic

-websites- majority of companies have their own websites

-Social networking sites - examples are Facebook, Instagram, etc.

-directory advertising - known as the "yellow pages'

-product placement
-email advertising
-online ads

3. Sales Promotion - short term to boost sales

-trade promotions - "push" products to retailers

-consumer promotion - "pull" consumers to brand

4. Personal Selling- an oral presentation of a product,

5. Public Relations - the public's perception of a company

6. Publicity- reaches a wider audience,

WEEK4

I. Analyzing Marketing Opportunities- is scrutinizing both the micro- and macro -environment of
the business

A. The Micro- Environment

COMPETITORS- the extent of the competition

SUPPLIERS-the availability of suppliers to provide

PUBLICS-important to anticipate societal expectations

B. The Macro- Environment

SOCIAL- a careful study of the demographics
TECHNOLOGICAL -

ECONOMIC - reflective in the generalbusiness climate.

ECOLOGICAL - package design should be environment-friendly.

POLITICO LEGAL- effects of legislations;political stability

WEEEK 5

II. Selecting Target Markets- these are group of potential customers whom a company wants to
sell it's products
-Identify an individual who displays similar characteristics and set them in one group
-You can use a perceptual map to determine the specific segment
-

*TO SELECT A TARGET MARKET, IT IS ESSENTIAL TO STUDY THE FF FACTORS:

-gender, age, education, proffesion

- Social status, lifestyle

-income, spending capacity

-mentality, though process, environment and exposures

Example: 1. Why do people use toothpaste? For teeth whitening / For gum protection, etc.

WEEK6
IV. Planning Marketing Programs
-involves developing and implementing action plans or tactics under each strategy.

V. Organizing, Implementing, and Controllingthe Marketing Effort

-the entire marketing process is embodied in the company's marketing plan usually prepared
every year.
- Organizing marketing personnel includeslines of authority, responsibility, and accountability.

marketing plans and strategies - are required to be monitored, evaluated, and adapted to