Marketing Concepts PDF

MARKETING CONCEPTS Expected Learning Outcomes use terms appropriately; list factors influencing the marketing and business planning; identify steps in the marketing analysis process; make a SWOT analysis; and  Production concept entails that customers will buy goods produced in ade...

MARKETING CONCEPTS Expected Learning Outcomes use terms appropriately; list factors influencing the marketing and business planning; identify steps in the marketing analysis process; make a SWOT analysis; and  Production concept entails that customers will buy goods produced in adequate volume at a low enough price. -product availability and low prices. - common in developing countries. (consumer more interested in obtaining the product than in its features.) 1. Fast-Food Chains Example: McDonald's, Burger King Application: These companies focus on standardizing their food preparation processes to ensure quick service and cost efficiency. Goal: To make affordable meals available to as many people as possible. 2. Consumer Goods Manufacturers Example: Procter & Gamble (e.g., Tide detergent, Crest toothpaste) Application: P&G mass-produces essential household goods, relying on economies of scale to lower production costs. Goal: To provide low-cost, widely available products for everyday use. 3. Tech Companies Focusing on Mass Adoption Example: Xiaomi (Smartphones and Electronics) Application: Xiaomi produces affordable smartphones and gadgets by optimizing manufacturing processes and offering slim profit margins. Goal: To capture a large customer base through low-cost, high- value products. 4. Retail Chains Example: SM Hypermarket and SM Supermarket, Puregold Application: focuses on efficient supply chain management and large- scale purchasing to keep prices low. Goal: To make everyday items affordable and accessible to a wide customer base. 5. Online Marketplaces Offering Low-Cost Goods Example: Shein (Fast Fashion) Application: Shein uses just-in-time production and data-driven insights to mass-produce trendy, affordable clothing. Goal: To meet high demand at competitive prices. 6. Automobile Manufacturers Example: Toyota Application: Companies like Toyota focus on producing reliable, cost-effective vehicles for the mass market. Goal: To make transportation accessible to a larger demographic.  Sales concept entails factory products solve by aggressive selling & promotion. ⚬ consumer must be coaxed into buying. ⚬ their aim is to sell what they make rather than make what the market wants. 1. Insurance Companies Example: AXA, Prudential, Sun Life Application: Insurance firms often deploy sales agents and telemarketing teams to convince customers to purchase policies, even if the need isn't immediate. Techniques Used: Personalized pitches, limited-time offers, and extensive follow-ups. 2. Real Estate Developers Example: Ayala Land, Megaworld Application: Real estate companies use aggressive advertising and sales tactics to sell residential and commercial properties. Techniques Used: Property fairs, incentives like free furniture or discounts for early reservations, and on-site agents who promote developments. 3. Telecom Providers Example: Globe, Smart Communications Application: Telecom companies aggressively promote postpaid plans, prepaid bundles, and additional services like streaming subscriptions. Techniques Used: Call center campaigns, bundled offers, and promotions that encourage upselling. 4. Consumer Goods Companies Example: Avon, Tupperware, PC Application: These companies rely on direct selling and network marketing, focusing on convincing consumers to buy their products through personalized approaches. Techniques Used: Door-to-door selling, referrals, and sales parties. Marketing Concept Marketing in a company employing the marketing concept can be defined as process by which individuals and groups obtain what they want through creating, offering, & exchanging products or services of value with others. -focuses on the needs of the buyer.  Market Market is a web on interactions among those who have commercial relationships or potential for such relationships with other buyers and sellers of similar commodities.  Market segmentation allows the marketing manager to break up markets into smaller more manageable pieces.  Niching- focusing on a specific subjection of a market. These consumers form distinct, well-defined groups within target markets and often demonstrate higher willingness to pay for solutions tailored to their unique requirements. Marketing mix is the set of tools that the firm uses to pursue their marketing objective. -use to meet the needs of target consumers. 4P’s- product, price, placement, promotion Factors that influence the marketing and business planning of a company Demographic environment: population numbers stratified by age, gender, etc Economic environment: purchasing power but can be affected by interest rates, inflation Political & legal environment Technological environment Natural environment : raw materials Marketing research A crucial part of a marketing program It is a technical & systematic approach to obtain data relevant to a specific market. Market analysis A continuous process of analyzing market opportunities.  Marketing plan is an action plan or a roadmap to guide the company from one place to the next. It describes products or services and their benefits and features, target markets & its buying habits, competing products or services , and the customer problem that the product or service solves.  SWOT analysis: (S) strength (W) weakness (O) opportunities (T) threats -part of the marketing plan.  Five forces analysis: this is by Michael Porter of Harvard University. This model is a framework for analyzing external opportunities and threats.