BUSINESS MARKETING

Marketing Priciples &

Strategies
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Module 1: Marketing Priciples & Strategies

• Marketing in the 21st Century
• Marketing in the Philippine Setting
• What is Marketing?
• Approaches to Marketing
• Goals of Marketing
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Marketing in the 21st Century

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Marketing in the 21st Century

• Marketing in the 21st century is very different from its early
beginnings.

• Today's marketers have more choices in terms of support, media

opportunities, and communications. They also have more
competition from varied sources, especially as the Internet has
made it possible for companies around the globe to compete
virtually.
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Marketing in the 21st Century

It is all about delivering the customer experience.
Future generations of consumers will have:

• Consumers have more discretionary income

• Less time
• More choices
• Will display wholly new spending patterns
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Marketing in the 21st Century

To keep up with these consumers, marketers will have to
anticipate “crossover” buying behavior.

What customers want in this cross-category world is a

customer experience, not just a product. And they’re not
impressed by most of what’s currently on offer.
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Marketing in the 21st Century

When Bain & Company recently surveyed 362 firms, it
found that 80% believed they delivered a “superior
experience” to their customers.

When customers were asked, it was a very different story:

they said that only 8% of companies were really delivering.
.
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What is Marketing?
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Ano ba ang marketing?

Marketing= Paano napamahal si
. Jollibee sa Consumers

Marketing= Paano nanalo si

Jollibee s kalaban

Marketing= Paano kumita ng

malaki si Jollibee
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Marketing Defined
Marketing is the processof continuously and profitably
satisfying target customer's needs, wants, and
expectations superior to competition.
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Business Marketing Defined

• Business marketing is the practice of individuals or
organizations (i.e., commercial businesses, governments, and
institutions) promoting and selling products and/or services to
other organizations.

• It i ncludes all activities involved in communicating the value

of a business’s products and services to another business.
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Two Interacting Components in Marketing

Company Market
• people or organizations that
have the need
• have the ability , the
willingness to pay for their
purchase

Satisfying one without satisfying the other is NOT

marketing
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Two Interacting Components in Marketing

Company Market

• a maketer should always

consider the strengths and How?
weaknesses of his
company in serving the They must choose the market segment
or segments where they can have
needs and wants of the
potential leadership or at least have a
market strong and profitable challenge role?
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Two Interacting Components of a Market

Customer Competition

• The overriding objective

of the company is to first How?
have bond with the
customermto develop a This means that the company must
primarily know the problems of the
relationship that is
customers, then provide a solution
customer-centric while being profitably superior to their
competitor.
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3 Strategic 3cs of Marketing

Customers
Company

Competition
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Key Objectives of the 3cs of Marketing

3 C's Key Objectives
Customers To satisfy the needs,
wants,and expectations of
target customers
Competition To outperform competition

Company To ensure company health

and profit
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• The output of Customers, Competition, and Company is

collectively known as Key Result areas or (KRAs)

• These ouputs are sales, market shares, and profit respectively

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Input and Output of Marketing

Sales

Customers

Company Competition

Profit Market Shares

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For example, if one phone has Bluetooth connectivity and a second one
does not, consumers may choose the one with this extra feature even if
they don’t even know what Bluetooth connectivity is. It’s not that such
connectivity is important, it’s just that it is so easy to compare the
feature sets.
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Key Result Areas (KRAs)

1. Sales
• Sales ae the result of satisfying the customer's needs and wants.
Gaining market share is an effect of outperforming competition.

• Before one can sell anything, a demand must be created.

• To increase sales, the company can increase the price or increase the
sales volume.
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4 US's in Growing Your Sales Volume

1. New USERS
Who uses the product or service?

Ex: Asia Brewery offers another product line--Cobra Energy drink

2. Extended USERS
Who can still use the product or service?

Ex: Infant milk, Coke zero

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3. New USAGE
For what purpose is the product or service used?
Ex: Gluthatione, baking soda

4. More USAGE
When and in what occasions is the product or service used?

Ex: Del Monte's recipes in its product, BPIs credit card free meals and
waiving of annual fee in exchange for attaining a minimum spending limit.
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Key Result Areas (KRAs)

2. Market Shares
• This is the ratio of your brand sales versus the total sales in your
market

• Ex: Bearbrand is the market leader in milk.

Motortrade is the market leader in motorcycling retailing.
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How do Companies Improve their Market Share?

1. Companies focusing on market leadership must endeavor to
improve their market shares profitably in both good times and bad
times.

Ex:
Procter and Gamble Safeguard attained an all-time high in sales when
they created a 3-tier product range (which included a more expensive
Safeguard and higher antibacterial properties coupled with a new
tagline “Iwas Sakit, Iwas Gastos”
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How do Companies Improve their Market Share?

2. Instead of attacking a strong leader in the market, companies
usually enter underdeveloped market segments or assume a
strong challenger position within a particular niche.

Ex.Close up is the preference of the cosmetic segment of the market,

which looks for fresh breath with the added benefit of mouth wash.
Colgate has better known in the bigger therapeutic segment , which
promises stronger, bacteria-free teeth.
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Key Result Areas (KRAs)

3. Profit
• Profit is an indespendable component to a firm to continuously
satisfy its customers. Profit, however, must always go hand-in-hand
with honor.

One cannot justify any profit from business if the consequence is the
destruction of lives (e.g illegal logging, drugs, prostitution.
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Example of Profit for Honor:

SM Theaters banned the showing of X-rated movies as part of the

overall wholesome family image they would like to project . SM won
a Sensei award from the Association of Marketing Educators (AME)
of the Philippines for using its strength to instill discipline among less
scrupulous movie producers
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Key Questions to Ask To Do Good Marketing (Applications of

3Cs)

The TV show Eat Bulaga of GMA 7, is the longest -running noontime TV variety
show in the Philipines. Originally, Eat Bulaga started in RPN9, then transferred to
ABS CBN in1989 before their present home in GMA7. In the beginning, EB is not
rating well against the leading show at that time, Student Canteen, but it took over
the lead after two years. It lost leadership with its interesting Pera o Bayong, a game
segment in 1998. It has competed with other ABS CBN Noon time shows such as
Wowowee and It's Showtime.
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Key Questions to Ask To Do Good Marketing (Applications of

3Cs)
3 C's Key Questions
Customers 1. Who are the target markets of EB?
2. What are the needs , wants, and expectations of the target
markets?
3. How they can be satisfied continuously

Competition 1. Who are the direct and indirect competitors?

2. How can they be superior to competition?
Company 1. How can the show maximize its profitability without alienating
its customers' needs, wants, and expectations
2. What metrics do we use to measure success?
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3C's : Customers
1. Who are the target markets of EB?
Answer: (1) televiewers (2 Advertisers

2. What are the needs , wants, and expectations of the target

markets?
Televiewers: entertainment
Advertisers: look for higher tv ratings for product awareness
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3C's : Customers
3. How they can be satisfied continuously?

• interesting variety of performers and performances

•competencies of hosts and co-hosts (comedians)
•exciting games/ segments (Pinoy Henyo)
•attractrive prizes (Laban o Bawi)
•Non-stop innovation (KalyeSerye)
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3C's : Competition
1. Who are the direct and indirect competitors?
Direct Competitor: ABS -CBN's showtime
Indirect Competitors: cable TVs, siesta, reading books,
watching Netflix

2. How can they be superior to competition?

• Stickiness factor that enable viewers to be glued to the show
daily
• Values that can attract non-viewers to watch
• Cost-effectiveness that enables advertisers to keep renewing
their advertising contracts
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3C's : Company
1. How can the show maximize its profitability without alienating
its customers' needs, wants, and expectations?
• Product placement and casual mention within the show
• Management fee to allow talenst to appear on different stations

2. What metrics do we use to measure success?

• TV Ratings
• Market penetration (survey)
• Social media
• Revenue of the show
• Renewal of contract of advertisers
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3C's : Company

2. What metrics do we use to measure success?

• TV Ratings
• Market penetration (survey)
• Social media
• Revenue of the show
• Renewal of contract of advertisers