What is a market?

“A market consists of all the potential customers sharing

a particular need or want who might be willing and able to
engage in exchange to satisfy that need or want”
Need, product, demographic, geographic
What is Marketing?
Identifying and satisfying human needs
Meeting ‘needs’ profitably
Examples??
Needs Wants Demands
 What is Marketed?
1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas
 The Marketing Mix
 Product
 Price
 Promotion
 Place
 Process
 Physical Environment
 People
 Public Relations
 Political Power
Marketing: An Introduction

MARKETING PROCESS
IDENTIFY CLASSIFY DEVELOP IMPLEMENT
MARKET AND DEFINE MARKETING THE PLANNED
OPPORTUNITI TARGET MIX EFFORTS MARKETING
ES MARKETS EFFORTS

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Marketing: An Introduction
1. IDENTIFY MARKET OPPORTUNITIES
- it is imperative to find out the unfulfilled needs and wants of
consumers that are still there to fill, the segment of the population
they come from, and how these needs should be satisfied.
- scanning both internal and external environments.
SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES AND
THREATS) ANALYSIS

• STRENGTH – internal positive. Areas you do well or advantages

of your organization.
• WEAKNESSES – internal negative. Areas to be improved.

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Marketing: An Introduction

• OPPORTUNITIES – external positive. Factors that may contribute to

your organization and can build up your strengths.
• THREATS – external negative. Potential problems/ risks caused by
external factors that your organization may face.
2. CLASSIFY AND DEFINE TARGET MARKETS
- marketers should be able to divide the markets into different segments.
- segmenting the market into unique groups with distinct needs and
characteristics.
3. DEVELOP MARKETING MIX EFFORTS
- marketers develop strategies that would elicit positive response for the
product from the target market.

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Marketing: An Introduction

3. DEVELOP MARKETING MIX EFFORTS

- marketers develop strategies that would elicit positive response for
the product from the target market.
The marketing mix efforts include the following:
• Product
• Price
• Placement
• Promotion
4. IMPLEMENT PLANNED MARKETING EFFORTS
- Translating marketing strategies into action plans require
extensive market analysis.

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Marketing: An Introduction

Target Market, Positioning and

Segmenting….
Marketing: An Introduction

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 Primary Characteristics
Marketing: An Introduction

of Segments
▪ Bases—characteristics that tell us why segments differ (e.g.
needs, preferences, decision processes).

▪ Descriptors—characteristics that help us find and reach

segments.

▪ (Business markets) (Consumer markets)

Industry Age/Income
Size Education
Location Profession
Organizational Life styles
structure Media habits
Marketing: An Introduction
Marketing: An Introduction

International market segmentation

- the process if identifying specific segments-whether they are country
groups, other businesses, or individual consumer groups- of potential
customers with homogeneous attributes across different countries, or
within a single foreign market, that exhibit similar responses to a
company’s marketing mix.
- when identifying segments, marketers seek to understand that
cultural factors that exist across marketplaces, as well as all of the other
forces in the international marketing context.
Marketing: An Introduction
Marketing: An Introduction

TARGET MARKETING – The process by which firms identify their

particular target markets.

STAGES IN TARGET MARKETING

1. MARKET SEGMENTATION – refers to the process of dividing
the market into distinct groups where each group has common
characteristics.
- segmentation is the initial step in targeting the market.
2. MARKET TARGETING – the process of looking into the most
attractive market that a company is capable of serving.

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Marketing: An Introduction

3. MARKET POSITIONING / PRODUCT POSITIONING

– after specifying the target market, a firm is now ready to
position its products in the market. Using the chosen strategies
from the marketing mix, a firm implements specific plans to
promote a product so that it can fare well against its competitors.
- the process of emphasizing a products best feature.

4. COMPETITIVE ADVANTAGE (4)

- the uniqueness of the company’s product that sets it part from
its competitors.

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Marketing: An Introduction
Marketing: An Introduction
 MARKET CLASSIFICATION
Marketing: An Introduction

There are various ways a company can divide or segment the

market. This can be done through dividing the market into
different segments:
1. DEMOGRAPHIC SEGMENTATION – the market is
divided based o variables such as age, gender, income,
education, nationality, religion and family life cycle.
2. GEOGRAPHIC SEGMENTATION – the market is
divided or segmented based on territory or geographical
units such as regions and cities (rural or urban).
3. PSYCHOGRAPHIC SEGMENTATION – groups the
market according to lifestyle, personality, or social class.

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Marketing: An Introduction
MARKET CLASSIFICATION
4. BEHAVIORAL SEGMENTATION – divides the market into
groups based on knowledge, attitudes, or the market’s response to a
product.

CONSUMER MARKET AND INDUSTRIAL MARKET

Market classification or segmentation applies to consumer
market and industrial market.
1. CONSUMER MARKET – refers to individuals who purchase
product for their own consumption or personal use.
2. INDUSTRIAL MARKET – refers to the buyers who purchase
products in order to produce another product.

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Marketing: An Introduction
 TYPES OF MARKET SEGMENTATION
Marketing: An Introduction

1. MASS MARKETING
– companies initially employ mass marketing when no
specific market has been determined. (3)
2. SEGMENT MARKETING
– companies practice segment marketing to address the
specific needs of target segments.
3. NICHE MARKETING
– Narrowing them down to smaller groups.
4. MICRO MARKETING
- companies pattern their marketing programs to suit a
particular group of people in a specific location.
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 STRATEGIES ON MARKET COVERAGE
Marketing: An Introduction

1. UNDIFFERENTIATED MARKET COVERAGE

- This strategy is used whenever a business enterprise
offers an entire market with one type of product.

2. DIFFERENTIATED MARKET COVERAGE

- strategy target several market segments, offering
varied product designs.
- matches the product offered by the firms to the
needs of the market. (2)

3. CONCENTRATED MARKET COVERAGE

- companies with limited resources focus more on
utilizing concentrated strategy 23
Marketing: An Introduction
 As far as Customers are concerned there are three
elements to address-

• Customer value: Difference between

the values that the customer gains from
owning and using a product versus the
costs of obtaining the product.

• Customer satisfaction: The extent to

which a product’s perceived performance in
delivering value matches a buyer’s
expectations.

• Quality: the characteristics of a product or

service that bear on its ability to satisfy
stated or implied customer needs. (1)
 Common marketing problems
• How can we identify and choose profitable market
segments?
• How can differentiate our offer from our competition?
• How should we react to competitors?
• How can we satisfy our customers and build brand
loyalty?
• How can we measure the effectiveness of an add
campaign, of Public Relations, of a promotion, etc…?
 QUIZ TIME
Marketing: An Introduction

1. the characteristics of a product or service that bear on

its ability to satisfy stated or implied customer needs.
2. strategy target several market segments, offering
varied product designs.
3. companies initially employ mass marketing when no
specific market has been determined.
4. the uniqueness of the company’s product that sets it
part from its competitors.
5. the process of looking into the most attractive market
that a company is capable of serving.
 ENUMERATION
Marketing: An Introduction

1-5 CHARACTERISTICS OF EFFECTIVE

SEGMENTATION

6-8 As far as Customers are concerned there are

three elements to address-

9-10 Give atleast two market classification

 ESSAY
Marketing: An Introduction
1. Describe (using just your opinions) who you think
the market is for the following products: explain
each
a. ABS-CBN Noontime TV shows
b. Kopiko 3-in-1 Brown Coffee:
c. Bank of Commerce:
2. Why is it necessary to focus on a particular
segment of the market rather than try to sell to
everyone?
3. Explain why certain products, such as Coca-Cola,
manage to appeal to a wide range of market
segments while other products cannot seem to.