Marketing Reviewer Prelim PDF

Module 1: Introduction to Marketing for Hospitality and Tourism DEFINITION OF MARKETING Marketing is a management process through which products and services move from concept to customer. A business term that experts have defined in dozens of different ways Core of marketing...

Module 1: Introduction to Marketing for Hospitality and Tourism DEFINITION OF MARKETING Marketing is a management process through which products and services move from concept to customer. A business term that experts have defined in dozens of different ways Core of marketing is an understanding of what customers need and value. Marketing involves identification of products, determining demand, pricing, distribution channels, and promotional strategy. The organization's task to determine the needs, wants, and interest of target markets and to deliver the desired product/service more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-being. MARKETING MANAGER is a person involved in marketing analysis, planning, implementation, and control activities. American Marketing Association: "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." Peter Drucker: “Marketing is so basic that it cannot be considered a separate function. It is the whole of business seen from the point of view of its final result, that is, from the customers point of view…Business success is not determined by the producer, but by the customer.” Pearson (2006): Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Philip Kotler (Father of Modern Marketing): "Marketing is working with markets to actualize potential exchanges." TYPES OF MARKET (KOTLER) 1. Consumer Market – This refers to those who buy goods for their personal use or purpose, such as buying a personal computer to accomplish one's academic requirements. a. Fast Moving Consumer Goods- These are high volume, low unit value, fast repurchase. (ready to eat, newspapers) b. Consumer Durables- These have low volume but high unit value. White goods & Brown Goods c. Soft Goods- Soft goods are similar to consumer durables, except that they wear out more quickly and therefore, have a shorter replacement cycle. d. Services- This refers to a transaction in which no physical goods are transferred from the seller to the buyer. 2. Business Market- Organizations buying industrial goods for business operations. Also known as Busines to Busines 3. Global Market- A marketing strategy used mainly by multinational companies to see goods or services internationally.Companies selling goods and services internationally. Global marketing is sometimes used to refer to overseas expansic efforts through licensing, franchises, and joint ventures. 4. Non-Profit and Government Market – A type of organization that does not earn profits for its owner.Organizations focusing on social goals rather than profits. BASIC COMPONENTS OF MARKETING 1. Needs – Things we must have in order to stay alive. 2. Wants – Things we don't really need but would like to have. 3. Potential Exchange – Where the buyers and sellers physically meet and exchange goods and services. 4. Human Activity – Concerned with people and the activities involved in the flow of goods and services from producers and consumers 5. Demands –are human wants that are backed by buying power. DIFFERENT ASPECTS OF MARKETING NATURE OF MARKETING 1. Consumer-Oriented Process - The basic objective of marketing is to fulfill the needs of human beings. Hence, identifying customer needs is the most significant aspect of marketing organizations. 2. Starts and Ends with the Customer - Marketing is about satisfying the customer needs; it is very essential for the marketer to collect relevant information about customer choices and preferences about the product or services. Marketer should adopt proper research techniques to find out the tastes and interests of the buyers. 3. Guiding Element of Business - Marketing is considered as an essential element in the development of every economy. An economy which is market driven will definitely raise the standard living of the people. Hence, the responsibility of marketing is to integrate all activities involved in the marketing and reach customer at a maximum speed with minimum cost. 4. System-Oriented Process - Marketing is an input-output process. This means that there is a whole lot of interaction between the marketer and the customer in the process of marketing. It is a process of receiving inputs of marketing from the environment. i.e., the customers – such tastes, preferences, etc. and translating them into output such as desired products and services for the fulfilment of the customer. 5. Goal-Oriented Process - No business can be successful unless it has a goal to achieve. Since marketing is one of the most important activities that any organization performs, setting proper goals is very essential. There can be goals such as increase in the volume of sales increase in profit etc. 6. Exchange Process - Marketing is a dynamic process of exchange of goods and services between the sellers and the buyers. Not only goods and services are exchanged, but a whole lot of information about the goods and services is also exchanged between the sellers and buyers. UNIVERSAL FUNCTIONS OF MARKETING 1. Buying & Assembling It involves what to buy, of what quality, how much from whom, when and at what price. People in business but to increase sales or to decrease costs. Purchasing representatives are much influenced by quality, service and price. Assembling refers to the purchase of necessary component parts and to fit them together to make a product. 2. Transportation – Moving goods from producer to consumer. 3. Seller- It involves holding of goods in proper such as usable or saleable condition from the time they are produced until they are needed by customers (for finished products) or by the production department (for raw materials and stores). 4. Standardizing & Grading – Sorting products by size and quality. 5. Financing- Financing involves the usage of capital to meet financial requirements of organizations dealing with various activities of marketing.  6. Risk-Taking – Risks means damage due to some unanticipated situations in future. Risk bearing in marketing refers to the financial risk interest in the ownership of goods held for a projected demand including the possible losses. 7. Market Information – Gathering data for decision-making. CORE MARKETING CONCEPT A human need is a state of felt deprivation. Wants are how people communicate their needs. When backed by buying power, wants become demands. A market is a set of actual and potential buyers who might transact with a seller. Customer value is the difference between the customer benefits from owning and/or using a product and the costs of obtaining the product Customer satisfaction is perceived value delivered relative to a buyer’s expectations Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy customer needs Exchange is the act of obtaining a desired object from someone by offering something in return A transaction is marketing’s unit of measurement and consists of a trade of values between two parties Relationship marketing is building strong economic relationships between with social ties by following through on promises. Industry Best Practices: Four Seasons and putting customers first Singapore Airlines and its top ranked product Dubai – ridding itself of its reputation of being the “smuggling capital of the Arab world” Hong Kong and the “world’s best airport” Accor and L’esprit Accor concept Ritz Carlton delivering “memorable experiences” McDonald’s QSC&V principle “DC Briefcase Incident” IMPORTANCE OF MARKETING Helps in the movement of goods. Helps Raise and maintain the standard of living. Creates jobs. Source of revenue. Useful in decision-making. Could be a basis of new concepts. Helps in the Development of an economy. MODULE 2: THE MARKETING MIX: PRODUCT, PLACE, PRICE, AND PROMOTION THE 4 P'S OF MARKETING (MARKETING MIX) MARKETING MIX 4 P’S PRODUCT PRICE PLACE PROMOTION Variety List price Channels Advertising Quality Discounts Coverage Personal selling Design Allowances Locations Sales Promotion Features Payment Period Inventory Public relations Brand name Credit terms Transportation Direct Marketing Packaging Logistics Services Assortments MARKETING MIX is a tool for considering the different elements that go into promoting a brand and its products. It offers broad guidelines for putting the right products in the right place, at the right time and price. A. Product – Goods and services offered by organizations. - A product is a bundle of benefits. o Product Life Cycle (PLC): § Introduction § Growth § Maturity § Decline B. Price – The amount charged for a product/service. Factors affecting price: § Demand for a product § Cost involved § Consumers ability to pay § Prices charged by competitors for similar products. § Government restriction C. Promotion – done through means of personal selling, advertising, publicity and sales promotion. It is done mainly with a view to provide information to prospective consumers about the availability, characteristics and uses of a product. 1. Advertising: process of communication, persuasive information about the product to target market by means of the written and spoken word, and by visual material. § The Press -> Commercial Television -> Direct Mail -> Commercial radio -> Outdoor 2. Personal Selling: Face-to-face sales. 3. Sales Promotion: Discounts, free samples. 4. Public Relations: Creating a positive company image. The marketers try to build a favorable image in the market by creating relations with the general public. 5. Direct Marketing: ith the intent of technology, companies reach customers directly without any intermediaries or any paid medium. D. Place (Distribution) – Goods are produced to be sold to the consumers. They must be made available to the consumers at a place where they can conveniently make purchase. o Distribution Channels: § Direct selling § Wholesalers § Retailers MARKETING PLAN FORMAT Executive Summary Market Research Target Market Segmentation Marketing Strategy (4 P’s) Budget & Implementation Monitoring & Evaluation DESTINATION BRANDING Creating a unique image for a tourist destination. Examples: o Dubai repositioning from "smuggling capital" to a luxury destination. o Hong Kong’s “World’s Best Airport” campaign. o McDonald’s QSC&V principle (Quality, Service, Cleanliness, and Value). SUMMARY OF KEY CONCEPTS Marketing is the process of identifying, creating, and delivering value. Markets include consumer, business, global, and non-profit. The 4 P’s – Product, Price, Place, Promotion – form the marketing mix. A marketing plan includes market research, segmentation, strategies, and evaluation. Destination branding enhances tourism appeal.