Principles of Marketing PDF

PRINCIPLES OF MARKETING LESSON 1 The Marketing Process Marketing The Situation Analysis - Defined by American Marketing Strengths, Weaknesses,...

PRINCIPLES OF MARKETING LESSON 1 The Marketing Process Marketing The Situation Analysis - Defined by American Marketing Strengths, Weaknesses, Association, “it is the activity, set Opportunities, and Threats of institutions, and processes for delivering, and exchanging Marketing Strategy Formulation offerings that have value for Market segmentation customers, clients, partners, and Target market society at large. Selection - Defined by Philippine Marketing Value proposition Association, “a science and Product proposition profession guided principally by the universal principles of ethics, Marketing Mix Decisions corporate citizenship, and Product corporate responsibility. Price Place Promotion Goals of Marketing People Understand the market and its consumers, and satisfy their Implementation and Control changing needs and wants. Implementation Introduce and innovate products Monitoring and services that improve human Marketing and mix adjustment condition and the quality of life. Design and implement effective customer-driven Product - Involving products and/or Is the item offered for sale consumers. It can be a service or an item Develop marketing programs It can be physical or in virtual or that deliver superior value to cyber form consumers Every product is made at a cost - 5 Ps: Product, Price, and each is sold at a price Promotion, Place, and People Product Levels Build and maintain beneficial and profitable customer relationship. Formal or Actual Product Capture customer’s value to Features create profit. Brand Promote value transactions with Styles full regard to society’s well-being Price.  PRINCIPLES OF MARKETING Packaging ACCORDING TO Design DIFFERENTIATION 1. Undifferentiated Products Core or Generic Product - characteristics are so identical, Base materials of ingredients of that it would be difficult to an item distinguish one purchased from one vendor on another Augmented Product 2. Differentiated Products Payment terms - are varied in their characteristics Installment terms and the features that they are Warranty readily distinguishable from Repair and maintenance another After sale service BRANDING Types of Products It is the ability of manufacturers 1. Goods to successfully distinguish their - pen, lamp, mobile phone products from other competitors. 2. Services It provides a product a unique - therapy sessions, haircut, legal distinguishing name, logo, advice, surgery symbol, or image. 3. Digitized or Virtual Products - e-Books, audio files, website ACCORDING TO DURABILITY templates, PDFs 1. Consumable - is a product whose benefit can Classification of Products only be used by a consumer for According to Use only a short period of time, According to differentiation sometimes only a few minutes According to Durability (e.g. food and drinks) According to Type 2. Semi-durables - provide benefits for a longer ACCORDING TO USE period of time, usually spanning 1. Consumer Goods several months (e.g. clothes, - purchased for (personal) shoes, belts) consumption. 2. Industrial Goods 3. Durables - purchased in order to make other - are products that last long time goods services (e.g. automobile, furniture, major household appliances, etc.)  PRINCIPLES OF MARKETING ACCORDING TO TYPE Intangibility - not capable of 1. Consumer Goods being touched (e.g. lesson of a - purchased frequently, usually teacher) inexpensive, and do not require Variability - no service provider much purchase effort and can render the same service evaluation shampoo, soap) (e.g. exactly the same way every 2. Shopping Goods single time (e.g. teacher giving - purchased frequently than same lecture in two separate convenience goods, are relatively sessions.) expensive, and require some Inseparability - the consumer amount of information search and the service provider must be and evaluation prior to purchase both present as the service is (e.g. clothes, shoes, bags) being provided (teacher and 3. Specialty Goods students in class) - goods that require unusually Perishability - services cannot be large effort on the pat of stored or warehoused consumers to acquire - consumers are usually willing to travel great distances to where LESSON 2 those goods can be purchased NEEDS, WANTS, and DEMANDS (automobile, work of art, high- NEEDS - physiological necessities fashion clothing) required for human survival 4. Unsought Goods WANTS - psychological, a wish or - goods that consumers seldom desire to possess something that actively look for, and are usually will improve the consumer's life. purchased for extraordinary DEMANDS - consumer's desire to reasons, such as fear of purchase products and adversity, rather than desire. willingness to pay a price for a (investments, memorial plans, life specific. insurance, fitness gym membership) - Require aggressive selling efforts MARKET and MARKET DEMAND and usually marketed by highly Market - group of customers who both trained and persuasive the willingness and financial capability salespersons. to purchase a particular product. SERVICES Market Demand - total demand for all Attributes: potential customers for a specific product over a specific period in a specific market area.  PRINCIPLES OF MARKETING 6. IRREGULAR DEMAND - demand Measuring Market Demand is inconsistent (e.g.umbrellas and 1. PRIMARY DEMAND - advertising swimsuits) intended to drive interest to the general 7. FULL DEMAND - demand is product category, rather than a specific meeting time supply potential of brand in particular. the company; markets are happy 2. SELECTIVE DEMAND - demand for a with the products, and they want specific brand of a product. to buy the products from the -Company increases their brand same company. (e.g. food from identity. the leading fast-food chains.) 8. OVERFULL DEMAND - happens Types of Demand when manufacturing firms' capacity is limited but the 1. NEGATIVE DEMAND - product is demand is more than the supply disliked in general; product may (e.g. Covid-19 vaccines.) be beneficial, but the customer does not want it (e.g. unsought UTILITY, VALUE, and SATISFACTION goods such as insurance policy Utility - it refers to the total satisfaction and fitness gym membership) consumers can receive from the 2. UNWHOLESOME DEMAND - consumptions of a product. opposite of negative demand; customer should not desire the Value - value customers place on a product, but the customer want product since consumers have different the product badly (liquor or needs and buying capacities, cigarettes) consumers assign varying values on the same product. 3. POTENTIAL DEMAND - there is no demand yet for the product, Satisfaction - is the measure of how well but there exists a market capable customers expectations from a of buying the product (medicine) purchased product have been meet. 4. LATENT DEMAND - a demand which the customer realizes later; CUSTOMER-PERCEIVED VALUE while buying the products, - the way a consumer views a product consumer might not desire some - the higher the value of customer's features. But later, might think perceived value, the better about those features (desktop and mobile phones) 5. DECLINING DEMAND - demand for the product is declining (e.g. CDs, Walkman)  PRINCIPLES OF MARKETING -Goal is to lower production cost, to low CUSTOMER VALUE PROPOSITION prices It is the total value that a company provides a customer in exchange for 2. Product Concept payment. -Assumes that customers will always It is used to convince customers that prefer and patronize products of high the product they're selling provides quality. more value than competitors' products. -Resources are focused on product improvement and innovation. COMPETITION -Product attributes and features are The rivalry between companies selling continuously enhanced. similar products and services with the goal of achieving revenue, profit, and 3. Selling Concept market share growth. -Emphasizes aggressive selling and promotional efforts. MARKET SHARE -Assumes that customers are generally - Is the percent of total sales in an timid and must be persuaded into industry generated by a particular buying. cosales Yevenue is basis for determining -Goal is to sell what is manufactured market share. rather than manufacture what the market wants. CONTEMPORARY APPROACHES TO MARKETING 1. Marketing Concept -Considers the needs of both customer and the product offered. -Objective is to provide a solution to the MARKET LEADER customer's actual or perceived problem. The company -Key iS to be more effective in creation, with the largest market share in the communication, and delivery of this industry value to customers. TRADITIONAL APPROACHES TO 2. Relationship Marketing Concept MARKETING -All marketing activities are towards 1. Production Concept establishing, maintaining, and -Assumes that customers prefer and strengthening meaningful long-term patronize products that are inexpensive. relationships with customers. -Efforts are concentrated in expanding -Extensive customer databases are distribution, improving production created, maintained, and updated. efficiency.  PRINCIPLES OF MARKETING -Customer profiles, purchase habits, and preferences are tracked and monitored. 3. Social Marketing Concept -Similar to relationship marketing, however, beyond providing solutions to customers, protects the customers' well-being and interest, as well as the environment and society.