Module 1
It is a system concerned with the
planning and development of products
and services, determination of prices,
creation of promotional programs and
distribution system to present and
prospective market for the satisfaction
of their existing needs and wants,
thus maximizing profit in the long-
run.
Marketing is a system
Product or service planning and
development, pricing, promotion and
place of distribution
Presence of current and potential
market
Satisfaction of existing needs and
wants.
Marketing organizations or
marketers
Things to be Marketed
Target market or the buyers
Producers
Manufacturers
Wholesalers
Retailers
Institutionswho buy raw
materials and process these
into final products
Institutionsbuying
intermediate or half-finished
materials and process these
into final products
Institutions
who buy final-
finished products and resell
them in bulk in the same
original form.
Institutionswho buy finished
products and re-sell in small
quantities, the same goods to
final users.
PRODUCTS
SERVICES
IDEAS
INSTITUTIONS OR PEOPLE
Consumer Market- those who buy
goods for their own personal use or
purpose
Industrial Market- those institutions
or people who buy industrial goods
either for the purpose of using in
business or for re-sell purpose
Target
Market
Marketing
System
Things to be Marketing
marketed Organizations
OPERATIONAL DIMENSIONS OF MARKETING
Is a management Is a management
orientation which holds that orientation which
the key task of the assumes that
organization is to consumers will either
determine the needs and buy or not buy enough
wants of the target markets
of the organization’s
and to adapt the
organization to delivering
products unless the
the desired satisfactions organization makes a
more effectively and substantial effort to
efficiently than its stimulate their interest
competitors. in its products.
MARKETING CONCEPT SELLING CONCEPT
Discovers market needs
(Research)
Product Planning and
Development
(Production)
Distribution of Products and
Services
GUARANTEED SALES VOLUME
AND PROFITS AT CUSTOMER
SATISFACTION
Product Planning and
Development
Promotional Methods and
Selling
Distribution of Products and
Services
UNGUARANTEED SALES VOLUME
AND PROFIT, UNGUARANTEED
CUSTOMER SATISFACTION
Goods and Services
Gathering of Information
Marketing Target
Organizations Market
Information
Payments
It is the process of knowing the overview of
the entire target market, but differentiating
them from competitors by recognition of
sub-markets with similarity in needs but
differs in demographic, geographic,
economic, cultural and psychological ways.
Consumer/Industrial Market
Demographic bases- population, age group,
sex category
Cultural bases- race, religion, nationality,
education, occupation
Economic bases- income bracket
Psychographic bases- personality, buying
attitudes, product benefits desire
Consumer Goods
a. Convenience goods
b. Shopping goods
c. Specialty goods
Industrial Goods
a. Raw materials
b. Fabricating materials and parts
c. Installations
d. Accessory equipment
e. Operating supplies
Consumers know what, how, when and where
to buy these products because they have
complete product knowledge.
Consumers do not exert too much effort in
buying (accessible outlets)
If temporary or permanent product
inavailability exists, consumers are willing to
accept substitute brands
Examples: toothpaste, candies, seasonings
They may be sub-classified into service
goods or fashion goods.
They compare product prices or other
features before deciding for the best buy.
Market may not have full knowledge so they
product information is obtained as they shop
around.
Examples: RTW, shoes, appliances, furnitures
Consumers are willing to exert special buying
effort and may spend time to reach exclusive
dealers
Consumers are after the brand prestige,
irrespective of its high price.
In some cases, consumers may not accept
substitute brands.
Examples: Signature items like Sylvia Santos
bags
Products which will become part of another
final product
Products when integrated to produce another
product can be unidentifiable or cannot be
physically separated.
Examples: flour in making bread, eggs for
processing milk
These are industrial goods which will become
part of another final product but are
identifiable in finished form.
These are assembled products with no further
change in form.
Examples: buttons in dresses, sparkplugs and
fan belts
These are major equipments of the industrial
user.
They affect operating scale for production
quota of the company.’
Examples: adding dozen of typewriters in a
business; adding three presser machines for
a tin can industry.
They facilitate or aid in the production
operation of the industrial user.
It will not be part of any final product nor
give significant effort in production scale.
Examples: cash registers for food chain
outlets, calculators
These are the convenience goods of industrial
market
They have low unit price, short-lived which
facilitate business operations.
Examples: pens, pencils, typewriting papers
Marketing a Potentially Harmful Product
The Swiss pharmaceutical global corporation Hoffman-La-
Roche has made a major breakthrough in the relief of serious
disabling disease that affects 3 percent of the world’s population.
Their new product, Tigason, is the first product that effectively
controls severe cases of psoriasis and dyskeratoses, skin disorders
that cause severe flaking of the skin. Sufferers from this disease
frequently retreat from the society because of fear of rejection; thus
losing their families and jobs. Tigason does not cure the disease but
it causes the symptoms to disappear.
There is one potential problem. Because of the risk of
damage to unborn babies, women should not take the drug for one
year before conception or during pregnancy. Hoffman-La-Roche is
well aware of the potential for harm to the company if the product is
misused. The marketing department is asked to formulate a strategy
for disseminating product information and controlling Tigason’s use.
As marketing manager, what do you recommend?
