An Overview of Marketing PDF

Department of Accounting Education Mabini Street, Tagum City Davao del Norte...

Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 Big Picture B Week 4–5: Unit Learning Outcomes (ULO): At the end of the unit, you are expected to: a. Explain the basic concept of marketing. b. Describe the consumers’ behavior and the factors that influence it. c. Define the goals of society, social issues affecting marketing and the social responsibilities as well as the basic rights of consumers. Big Picture in Focus: ULOa. Explain the basic concept of marketing. Metalanguage For you to demonstrate ULOa, you will need to have an operational understanding of the following terms below. 1. Marketing. It is defined as exchange activities conducted by individuals or organizations for the purpose of satisfying human wants with the view of accomplishing individual or organizational objectives. 2. Exchange. It refers to the trade of things or service of value between buyer and the seller. 3. Human needs. These are things or service required by human being for the health and well – being of his body and mind. 4. Human wants. These refer to the needs shaped by culture and individual preferences. Essential Knowledge To perform the aforesaid big picture (unit learning outcomes), you need to fully understand the following essential knowledge laid down in the succeeding pages. Please note that you are not limited to exclusively refer to these resources. Thus, you are expected to utilize other books, research articles and other resources that are available in the university’s library e.g. ebrary, search.proquest.com etc., and even online tutorial websites. 1. MARKETING Marketing is the process of getting people interested in your company's product or service. This happens through market research, analysis, and understanding your ideal customer's interests. Marketing pertains to all aspects of a business, including product development, distribution methods, sales, and advertising. Modern marketing began in the 1950s when people started to use more than just print media to endorse a product. As TV -- and soon, the internet -- entered 1  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 households, marketers could conduct entire campaigns across multiple platforms. And as you might expect, over the last 70 years, marketers have become increasingly important to fine-tuning how a business sells a product to consumers to optimize success. In fact, the fundamental purpose of marketing is to attract consumers to your brand through messaging. Ideally, that messaging will helpful and educational to your target audience so you can convert consumers into leads. Today, there are literally dozens of places one can carry out a marketing campaign -- where does one do it in the 21st century? Marketing Concept Vs. Other Concepts Product Selling Marketing Concept Concept Concept Product Concept The company attempts to find interested buyers after producing products. Selling Concept The firm produces the product then adapts a selling strategy designed to convince a group of perceived customers. Figure 6. The Product Concept 2  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 Figure 7. The Selling Concept Marketing Concept The firm defines its target market and determine the needs, wants, and values of the market. The firm then adapts a strategy to satisfy those needs and wants more effectively and efficiently than its competitors. Figure 8. The Marketing Concept Factors of Marketing For marketing to occur, these factors are necessary: a. The presence of two parties with unsatisfied needs. b. The desire and ability of the parties to be satisfied. c. The existence of a way for parties to communicate. d. Each party must have something to exchange. 3  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 Marketing Strategy Marketing Strategy is an action plan designed to achieve the marketing goal. A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of the products or services the business provides. A marketing strategy contains the company’s value proposition, key brand messaging, data on target customer demographics, and other high-level elements. Marketing Strategy Vs. Marketing Plan The marketing strategy informs the marketing plan, which is a document that details the specific types of marketing activities a company conducts and contains timetables for rolling out various marketing initiatives. Marketing strategies should ideally have longer lifespans than individual marketing plans because they contain value propositions and other key elements of a company’s brand, which generally hold consistent over the long haul. In other words, marketing strategies cover big-picture messaging, while marketing plans delineate the logistical details of specific campaigns. Marketing Mix It is the set of tools (4P’s) the firm uses to implement its marketing strategy. It includes product, price, promotion and place. 1. Product The tangible commodity or intangible service that the business firm offers for sale to prospective customers. 2. Price The amount of money paid by the customer to the selling firm so the customer can use the product. 3. Promotion The provision of required information to prospective customers so that they are persuaded to buy. 4. Place The location and time required by buyers to make the company’s product available. 4  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 2. THE MARKETING ENVIRONMENT Part of external environment of the firm is the marketing environment consisting of variables confronting the firm. The company has little or no control over these variables consisting of social forces, economic forces, technological forces, competitive forces, and regulatory forces. The Business Firm and the Marketing mix Variables 1. Product 2. Price 3. Promotion Marketing Environment Variables 4. Place 1. Social forces 2. Economic forces 3. Technological forces 4. Competitive forces, and 5. Regulatory forces. Marketing Objective Figure 8. The Marketing Environment Social Forces It includes the following: 1. Characteristics of the people. 2. Its income. 3. Its values. 5  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 Economic Forces Forces in the economy that affect marketing such as inflation and recession. Technological Forces Development in existing technology that affect consumer choices. Competitive Forces The effect of the firm’s competitors to the firm’s strategy formation. Regulatory Forces Government institutions are entities that constrain, direct, and influence decisions that the business. 3. BASIC FORMS OF COMPETITION Pure Competition Market situation where there are many competitors offering for sale identical products or services. In this competition, prices of products were determined by the market and not by any individual buyer and seller. Monopolistic Competition A Market situation where many sellers exist, but less than those in pure competition, in a particular market competing with each other. Manufacturers often promote certain features of their products, then charge higher prices. Monopoly A market situation where there is only single seller in a particular market. In this competition, the government regulates the prices for some monopolies like public utility companies (e.g., electricity and water). Oligopoly A market situation where a few large firms compete in a given industry. The products sold are homogenous or identical (e.g., gasoline steel and automobiles). Prices are set by the oligopolist in collusion with one another. Self-Help: You can also refer to the sources below to help you further *Medina, R. (2013). Principles of marketing. Manila, Philippines: Rex Book Store. *Kotler, P. (2016). Principles of Marketing. Singapore: Pearson Education ; South Asia P&E Ltd. 6  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 Let’s Check Questions: 1. Do you consider marketing important as an human activity? Why or why not? 2. What happens when the business firm fails to sell its products? 3. What is a marketing concept? 4. What internal and external factors affect the marketing activities of the firm? 5. What variables are included in marketing mix? 6. What are included in the term “Product”? 7. What does the firm do when it emphasizes “the place” in the marketing mix? 8. How does recession affect marketing? 9. What are the basic forms of competition? 10. What basic form of competition is most conducive to the use of the marketing mix? Let’s Analyze Questions: 1. Do you believe that prices should reflect the value that the customers are willing to pay or should prices primarily reflect the cost involved in marketing a product or service? Defend your answer. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________. 2. How do goods and services differ? Discuss marketing implications of service characteristics and use examples. 7  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________. In A Nutshell Questions: 1. Define customer satisfaction. What are important considerations for marketing managers when trying to achieve customer satisfaction? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________. 2. Satisfaction of consumer needs and wants is the focal point of the marketing philosophy and the customer is considered to be king.’ Comment on this statement and highlight the importance of the marketing philosophy to modern business organizations. ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________. 8  Department of Accounting Education Mabini Street, Tagum City Davao del Norte Telefax: (084) 655-9591, Local 116 Q&A Lists Do you have any questions? Issues/ Questions Answers Keyword Index Exchange Monopolistic Competition Human Needs Monopoly Human Wants Olipopoly Marketing Product Concept Marketing Concept Pure Competition Marketing Plan Selling Concept Marketing Strategy 9