Marketing Concepts PDF

 Existing need - Any need of the customer which is short-term and is readily obtainable is known as ______  A latent need – A need of a customer which is there but has not manifested itself because...

 Existing need - Any need of the customer which is short-term and is readily obtainable is known as ______  A latent need – A need of a customer which is there but has not manifested itself because such a product has not been launched.  Incipient need – It is a type of need which people want but there is no product to satisfy that need.  Wants – on the other hand, are the form of human need influenced by culture and individual personality.  Demand – is the want for particular products that are supported by the ability and willingness or readiness to buy them.  Negative Demand - Major market dislikes the product, hence seeks to stay away from it.  No Demand - Some products face the challenge of _____. Possibly customers are unaware and uninterested in the product.  Latent Demand – Is a demand which the customer realizes later. Thus, while buying the product, he might want some features.  Declining Demand – Demand decreases over a period of time. Although there is still a demand for the product, the demand is a _____ one.  Irregular Demand – is a demand which is not steady.  Full Demand - In a perfect environment, a company must constantly have filled demand.  Overfull Demand - occur when the companies manufacturing capacity is inadequate but the demand is above the supply.  Unwholesome Demand - is the other face of negative demand.  Marketing - offers are some mixture of products , services, information, or experiences presented to a market to gratify a need or want.  Product - is everything that can be offered to a market for attention, acquisition, use or consumption that may satisfy a want or need.  Service – is any activity or benefit that one party can present to another that is basically intangible and does not result in the ownership of anything.  Experiences – are knowledge or skill which is gained from doing, seeing or feeling things.  Utility - means an overall ability of a product to gratify need and want. It is a guiding concept to select the product.  Cost - means the price of a product. It is a monetary value of a product.  Customer value - Is a difference between the customer gains from owning and using a product and the cost of combining the product.  Desired value - refers to what customer wants in a product or service.  Perceived value - is the benefit that a customer believes he received from a product after it was purchased.  Satisfaction - Is a person’s feeling of delight or displeasure as a result of comparing a product’s perceived performance in relation to his/her expectations.  Exchange - is at the heart of marketing; is an act of acquiring a preferred product from someone through offering something in return.  Transaction - is a decision entered into or commitment done; can be very simple, like buying newspaper, or extremely complex.  Relationship market - is the practice of building long-term profitable or satisfying dealings with significant parties such as customers, suppliers  Network – is the definitive conclusion of relationship marketing.  Marketing network - includes the company and its supporting stakeholders such as customers, employees, suppliers distributors ; It is an enduring system of relations with stakeholders.  Market – comprises all possible customers sharing a particular need or want who might be eager and able to engage in exchange to gratify this need or want.  Marketing – is social and managerial process by which individuals and groups get what they need and want by creating and exchanging product and value with others.  Marketer – is one who seeks one or more buyers to engage in an exchange  Prospect – is someone to whom the marketer spots as possibly agreeable and able to engage in the exchange.  Marketing management – is the study, planning, implementation and control of programs intended to form, make and preserve equally beneficial exchanges and relationships with target markets  Conversional marketing - develops from the situation of negative demand in which all or most of the vital segments of the potential market hate the product or service.  Stimulational marketing – The task of performing such state into positive demand is called_______.  Developmental marketing – The process of effectively transforming latent demand into an actual demand is known________.  Remarketing – When the demand for product declines and shows a possibility of further fall the marketing task involved in such case is ________.  Synchromarketing - When a product’s current timing pattern of demand is marked by seasonal or volatile flunctuations the marketing task of _______ is necessary  Maintenance marketing – Full demand exists when current level of timing of demand is equal to the desired level and timing of demand. The task of the marketer in such state is ______.  Demand marketing – Overfull demand exists when demand for a product or service begins to outpace the supply substantially. The task of reducing such demand is known as ______.  Counter marketing – The task of destroy such demand is called ______. In a state of unwholesome demand, the demand is felt excessive because of undesirable qualities associated with the officer.  Strategy - is an outline of the company’s roadmap for the successful attainment of its goals and objectives.  Ethics - Is likely to center on the individual or marketing group decision, while social responsibility takes into concern the entire consequence of marketing practices in society.  Honesty – Be straightforward in dealings and present value and integrity.  Responsibility – Accept results of marketing practices and provide the needs of customers of all types, at the same time becoming goods guardian if the environment.  Fairness- Balance buyer needs and seller interest reasonably, and stay away from manipulation in all forms while shielding the information.  Respect - Recognize basic human dignity of all the people concerned through efforts to communicate, understand and meet needs and be grateful for contributions from others.  Transparency – Form a character openness in the practice of marketing through communication, helpful criticism, action, and discovery.  Citizenship – Accomplish all legal, economic philanthropic and societal responsibilities to all stakeholders and give back to the community and care for the ecological environment.  Market research - is the process of gathering data to find out whether a particular product/service will fulfill the needs of customers.  Competitive advantage - is the essence of a company’s strategy.; may come from any external or internal sources and are the actual differences between competing firms.  The Discipline of Market Leader (1995) – Michael Treacy and Fred Wiersma describe the three basic strategies for competitive advantage  Operational excellence – strategy intends to achieve cost leadership; is best for markets where customers value cost over the choice.  Product leadership – as a competitive strategy intends to make a culture that continuously brings better-quality products to market.  Product leaders - know that the excellence in creativity, problem solving and teamwork is vital to their success.  Customer intimacy – strategy centers on offering a distinctive range of customer services that consents to a personalized service and customized products to meet varying customer needs.  Customer intimacy – focuses on the needs of the individual customer.  Strategy – is the means of the process that objectives are realized.  Marketing strategy decisions - are regarded as an essential decision making for marketing managers.  Segmentation – is the process of dividing a whole market into various customer groups.  Targeting - entails making a decision which possible customer segments the company will concentrate on.  Marketing segmentation - can be an extensive process. It is an important for the company to identify precisely which segments correspond to the most potential sales for its business.  Product decisions – are probably the most crucial as the product is the very epitome of marketing planning.  Companies – must set a price that is good enough to target market members to give a satisfying marketing mix.  Price - is the value paid for a product or service in the market. It is a key element in the marketing mix.  Marketers - frequently look at price decisions as the price at which they sell the product.  Distribution channel – is a way through which goods or services move from the manufacturing company to the customer or the transfer of payment happens from the customer to the company.  Location - the geographic placement of production facilities, stocking points, and sourcing points   Production – the strategic decisions includes what products to produce  Inventory decisions – refer to means by which inventories are managed.  Transportation decisions – are directly connected to the inventory decisions since the best option of a mode is often found by trading off the cost  Promotion decisions – are made to help in informing the target marketing of the product.  Promotion mix – is a combination of various marketing techniques, oriented to acquire s common target.  Marketing controls - are used to implement marketing strategies and check whether the objectives of the marketing functions are achieved or not.  Loyal customer - are at the core of every businesses success.  Visibility - is one aspect of marketing that wont change regardless of the year  Increased focus on customer experience - customer experience is the heart of marketing for every industry.  Engaged and effective measuring analytics 2.0 – Talk of measuring marketing has been on an endless loop lately.  Personalized everything – as companies work to individualize everything from coca cans to shoes mass customization has transitioned into _______  Better video content - content is still king, but the kind of content that rules the web are changing  More social media marketing - Companies need to change the way that they think about social media.  Enhance the loT – The internet of things has been in its infancy.  Chatbots and AI go mainstream – providing positive customer experience and service means levering the power of technology. CHAPTER 2  Marketing strategy – is an explanation of the goals needed by a company to accomplish its marketing efforts.  Marketing plan – is how the company is going to attain those marketing goals and objectives.  Strategy – is derived from the ancient Greek word “strategos”. Its plain translation meant “the general art”  The Practice of Management – Peter Drucker made the distinction between tactical decisions and strategic decisions.  What – Objectives to be accomplished  Where – As in, on which industries and product markets to focus  How – To allocate resources and activities, so as to meet environment opportunities and threats  Strategy – Is a design or plan for achieving a company’s policy goals and objectives.  Scope - The scope of a company is the extensiveness of its strategic sphere such as the number and types of industries.  Goals and objectives - strategies need also to specify preferred levels of accomplishment on one or more facets of performance.  Resource deployments – Every organization has restricted financial and human resources.  Synergy – Is present when the company’s businesses, product- markets, resource deployments, and competencies balance and strengthen  Corporate strategy – are managed by the corporate level, which is the top level in any organization.  Business level strategy – consists of smaller units within the whole organization that are commonly administered as self- contained businesses.  Functional strategies - comprises all the different functional areas within a business unit.  Corporate strategy - focuses primarily on profitability.  Corporate strategies – include creating an organizational structure, debt reduction  Corporate mission - traditionally acted as a way to tell potential shareholders and investors more about a company and its purpose  Mission statement – is a statement of the organization’s reason for being, its purpose or what it wants to achieve in the larger environment.  Ethics - is rising to the top of the corporate agenda  Cherry Hills - was developed by Philippine- Japan Solidary Corp.  Philosophy – of socially responsible and ethical behavior should be worked out by every company and marketing manager.  A Purpose - Why does the business exists? Is it to create wealth for shareholders?  A Strategy and Strategic Scope – defines the boundaries of its operations  Policies and Standards of Behavior – A mission needs to be converted into everyday actions  Values and Culture - are the fundamental, frequently implicit, beliefs of the people who work in the business.  It should be feasible – A mission should always aim high but it should not be an impossible statement.  It should be precise – A mission statement should not be so narrow as to restrict the company’s activities  It should be clear – A mission should a=be _____ enough to lead action  It should be motivating – A mission statement should be ______ for members of the organization and society  It should be distinctive – A mission statement, which is indiscriminate, is likely to have a little impact.  Company vision - seeks to outline where the company is headed and what values are guiding that journey  Vision statement - can be written as simple as a single sentence or can be lengthy as a short paragraph.  Setting up the objective – is the first task done by marketing managers.  Marketing objectives - set out what a business wants to achieve from its marketing activities.  Competitive advantage – is a gain over competitors achieved by offering consumers greater value  Competitive strategy – concerns how to form competitive advantage in each of businesses  Cost competitive advantage - It is when a company is able to utilized its skilled workforce  Product design - This is important to companies that utilize advanced technology  Reengineering - this is used by companies that are capable to slash costs by means of redesigning ]  New delivery method - this is created by some companies for their product or service, resulting in great cost savings that they are able to share  Product/service differentiation - this is another way that companies can have a competitive advantage in the marketplace  Intensive growth strategies - is when a company grows by expanding its products  Market Penetration - A company uses a ________ when it decides to market current products  Market Development - This strategy is to devise a way to sell more of current product to an adjacent market  Alternative channels – this growth involves pursuing customers in a different way such as selling products online  Product development – a classic strategy, it involves developing products to sell to both current and new customers  Diversification – Intensive growth strategies in business also includes _______, where a company will sell new products to new markets.  Integrative growth strategies – is used for growth in which a company acquires some other element of the chain  Horizontal -would involve buying a competing business or businesses.  Backward - would involve buying one of the company’s suppliers as a way to better control its supply chain  Forward – when it merges with or purchases an organization involved in the distribution of its product  Complete or Balanced - This strategy means a company controls all components from raw materials to final delivery.