Lesson 1-Introduction and Overview of Marketing principles and Startegies.pdf

PRINCIPLES OF CHAPTER 1 MARKETING PRINCIPLES AND STRATEGIES Lesson 1: Marketing and its Traditional Approaches  MARKETING is a form of communicating or promoting the VALUE of a product, service or brand to the consumers.  Marketing “The process of planning and executing the conception, pric...

PRINCIPLES OF CHAPTER 1 MARKETING PRINCIPLES AND STRATEGIES Lesson 1: Marketing and its Traditional Approaches  MARKETING is a form of communicating or promoting the VALUE of a product, service or brand to the consumers.  Marketing “The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization goals.” American Marketing Association  In summary, marketing is Creation Communication Delivery of value to customers Core Marketing Concepts 1. NEEDS A human need is something that a person must have in order to live and survive. Maslow’s Hierarchy of Needs 2. WANTS A human want is something that a person desires to have. 3. DEMANDS Demands are also human wants that are supported by buying power.  4. EXCHANGE Marketing occurs when the buyer and seller trade something of equal value. Both the buyer and the seller have gained something that satisfied their unmet needs. 5. MARKET The market is composed of people with both desire and ability to buy a product or service.  PARTICULARS NEEDS WANTS Hunger Food Fashion Wear Clothing Infection Antibiotics Shelter Housing Thirst Beverage Water Milk Transportation Vehicle  PARTICULARS NEEDS WANTS Recreation Sports Entertainment Television, radio, DVD/Discs, Casinos Education School Seminars Course Security Insurance Interment Memorial services SCOPE OF MARKETING 1. GOODS Physical goods comprise the volume of most countries’ production and marketing effort. 2. SERVICES as economies progress, a growing proportion of their activities are concentrated on the production of services. 3. EXPERIENCES Through organizing a number of services and goods, one can generate, stage, and market experiences. 4. EVENTS Marketers endorse time-based events.  5. PERSONS celebrity marketing has turn into a main and popular business.  6. PLACES Place marketers consist of economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies. 7. PROPERTIES Properties are intangible rights of ownerships of either real property. 8. ORGANIZATIONS organizations aggressively labor to create a strong, positive image in the mind of their publics. 9. INFORMATION The production, packaging, and distribution of information is one of society’s chief industries. 10. IDEALS Each market offering has a fundamental idea at its core. TRADITIONAL APPROACHES TO MARKETING Traditional concept marketing is a marketing strategy a company uses to determine if it can produce a viable product consumers want or need, whether the company can produce enough products to fill the need, and the marketing method by which the need can be filled.  SEVERAL DISTINCT TRADITIONAL APPROACHES Sales concept refers Production concept to the idea that people Marketing concept a focuses on the internal will buy more goods philosophy which potentials of the and services through states that company and not personal selling and organization must try based on the desires advertising done hard to find out and and needs of the aggressively to push satisfy the needs and market. them in the market. wants of consumers while at the same time Relationship concept/marketing accomplishing the an approach that centers on Societal Marketing Concept organizational goals. maintaining and improving value- views that organizations must added long-term relationships satisfy the needs of consumers with current customers, in a manner that gives for distributors, dealers and society’s benefit. suppliers. CHAPTER 1 MARKETING PRINCIPLES AND STRATEGIES Lesson 2: Goals of Marketing  Goals are different from objectives Marketing goals are statements of what results the company wants to achieve with its marketing efforts. Just like any other goal, marketing goals should be clear. Goals must be credible and realistic as well  GOALS ARE DIFFERENT OBJECTIVE FROM OBJECTIVES. Specific SMART objectives to give clear direction and commercial targets. Objectives are the SMART GOALS targets for marketing which can be used to track performance against target. top-level broad goals to show The SMART mnemonic helps MARKETING how the business can benefit as a test or filter which the from channels. So, goals are the firm can use to assess the broad aims used to shape quality of measures. strategy. They describe how marketing will contribute to the business in key areas of growing sales, communicating with audience and saving money.  the detail in the a quantitative a quantitative the objectives be information attribute to attribute to information set for sufficient to be applied to be applied to be applied to different time pinpoint problems create a create a the specific periods as or opportunities; metric. metric. problem targets to the objective faced by the review sufficiently marketer. against. detailed to measure real- world problems and opportunities. Key performance indicators (KPIs) are used to check that the marketing activities of a company are on track. KPIs are specific metrics which are used to track performance to make sure the firm is on track to meet specific objectives. They are sometimes known as performance drivers or critical success factors for this reason.  DEVELOPING MARKETING GOALS GOALS MUST BE: ATTAINABILITY CONSISTENCY COMPREHENSIVENESS Goals must be realistic Management should the process of so that important parties exert to set goals that are must be goal-setting comprehensive. who will be reaching must consistent with one Simply it means that each another. functional area must be able see each goal as to formulate its own goals reasonable. that relate to the organization’s goals. INTANGIBILITY planners often confuse goals with strategies, objectives and even tactics. A goal is not an action the firm can take, it is an outcome of the organization wishes to realize.  Examples of noteworthy marketing goals: 1. Identifying the target market 2. Increasing sales and profits 3. Increasing brand awareness 4. Increasing market share 5. Countering competitive strategies 6. Reputation 7. Increasing distribution channels GOALS OF MARKETING CHAPTER 1 MARKETING PRINCIPLES AND STRATEGIES Lesson 3: Contemporary Approaches to Marketing  Not-For-Profit Organization Marketing A not-for-profit organization is a type of organization that does not aim for earning profit for its owners. The money earned by not-for-profit organization is allocated for pursuing the organization’s objectives.  Characteristics of a not-for-profit organization Often Generate as much possess Compete some degree revenue as with other Market to or monopoly possible to organizations multiple power in a support their for donors’ publics given causes pesos geographic area  PERSON MARKETING Person marketing entails endeavors aimed at cultivating the attention, interest and preferences of a target market toward a celebrity or authority figure.  PLACE MARKETING Place marketing or place branding attempts to exert a pull customers to particular areas. Place marketing is used to attract tourist and showcase the beautiful spots in different cities, provinces, and regions. Place marketing is also used to promote sites that can be a nice choice for putting up a business.  CAUSE MARKETING Cause marketing is the recognition and marketing of a social issue, cause or idea to the target markets. Cause marketing increases the awareness of issues such as literacy, physical fitness, child obesity, and environmental protection, elimination of birth defects, child-abuse prevention and preventing drunk-driving.  There are some guidelines to consider before creating a cause marketing campaign. UNDERSTAND MARKETING SUPPORT REPUTATION CAUSES MAINTAIN before a firm create a cause Support reputable causes – if the company is TRANSPARENCY going to give large amounts of money, marketing, it needs to resources or time to a philanthropic cause, it if the firm wants consumers must first do its homework. The organization to join its cause, it has to understand first the must choose the right charity to give help to make it easy and transparent essential elements of marketing to and check its every detail. for them to do so. its specific target audience. » STAY THINK CONSISTENT MAINSTREAM it is best for the company if it is going to be generous in one charity for long the majority of firm’s time to be predictable in the eyes of patron the should the consumers. support the effort of its supporting. is the sport, culture and charity activities to selected target markets. it consists of different sponsors from different companies to support such activities and also serves as public awareness. Essential features of event marketing: 1. Wide range of events – event marketing encompasses a wide range of event types: a. Mega events and local events, b. Exhibitions, c. Trade shows, d. Publicity stunts, e. Themed and created events, f. Corporate entertainment, g. Award ceremonies.  2. Goal oriented 3. Effective promotion and communication – it is important to get the message to the target audience clearly. 4.Proper evaluation – it is necessary for the team to be able to evaluate the event/project to be more effective and efficient the next time. 5. Feedback from clients 6.Location – this is the most important aspect as the location of the event should be accessible and should be near important areas. Green marketing refers to the process of selling products and/or services based on their environmental benefits. Company are selling products and/or services by first promoting its benefit that is environmental friendly or produced in an environmentally friendly way.  For green marketing to be effective, there are three things that needs to be done: 1. Being genuine a. The company is actually doing what it claims to be doing in its green marketing campaign and b. The rest of the business policies are consistent with whatever the firm is doing that’s environmentally friendly. 2.Educating the customers isn’t just a matter of letting people know that the company is doing whatever its doing to protect the environment, but also a matter of letting them know why it matters. 3.Giving customers an opportunity to participate means personalizing the benefits of the company’s environmentally friendly actions, normally through letting the customer take part in positive environmental action. THANK YOU!