Reviewer Principles of Marketing PDF

**REVIEWER PRINCIPLES OF MARKETING** **LESSON1:** **➤Marketing** -It is the creation and communication of value tocustomers. -It involves the customer\'s maintenance of relationships that should last for lifetime. -It is the link between society\'s material requirements for its needs and wants....

**REVIEWER PRINCIPLES OF MARKETING** **LESSON1:** **➤Marketing** -It is the creation and communication of value tocustomers. -It involves the customer\'s maintenance of relationships that should last for lifetime. -It is the link between society\'s material requirements for its needs and wants. Marketing must satisfy human needs and wants through the exchange process and the building of long-term relationships. In the definition of marketing given by the **American Marketing Association or AMA**, \"[Marketing is an organizational function and a set of processes for creating. communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders]." The definition of Marketing according to **Dr. Philip Kotler**, [\"A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others."] ** CUSTOMERS NEEDS AAND WANTS** According to Garovillas (2004), [he stated that the marketing concept is a business philosophy], which holds that the key to achieving organizational goals consists of determining the needs and wants of target markets and delivering the satisfaction more effectively and efficiently than competitors do. ➤The philosophy that \"The customer is the boss\", rings over the minds of the marketing people that customer satisfaction which is of paramount consideration. While it is important to satisfy customer wants and needs, this could only be achieved under the following **Marketing concepts:** ***[1. Marketing must be Customer Oriented]*** ➤The planning and operation must be directed towards customer orientation. ➤The whole marketing organization and its operating staff must be focused on determining what will satisfy the needs and wants of the target customers, the important link in the business operation. ***[2. Marketing must be Coordinated Activities]*** ➤Coordination activities must start in the product planning process, the process. ➤The product is the key element that the customer wants to buy that is worth his money. ➤Price is another important component as customers would like to get his money\'s worth. The place of distribution must be within his reach and the promotional activities must be appealing for him to decide which product to purchase. ***[3. Marketing must be able to achieve the Performance Target Goals and Objectives.]*** ➤Customer-oriented and coordinated marketing aims to achieve its profit, objectives and goals. ➤These goals and objectives hinge on the increase in sales volume and customer\'s patronage. ➤When product planning, price, promotion and distribution and properly coordinated, it will result in the most effective way of satisfying the customer\'s needs and wants ** Factors for Developing Marketing Concepts** **[1. Capturing Marketing Insights]** ➤The overall direction must focus on its vison and mission. ➤The organizational goals and objectives must be directed towards the creation of value to its customers. These must be the inherent philosophy of the marketing organization. ***[2. The Value of Human Resources]*** ➤All business activities need human resources in their operation. ➤The employees must be committed in the production of quality products and the delivery of quality service. ➤ They must develop work ethics and strong commitment to the marketing efforts of the organization. ***[3. The Production Process]*** ➤The process must conform to standards in terms of product quality. ➤The race to economic profitability is the production of products that shall satisfy the customer\'s wants and needs. ➤The role of marketing is to sell more products, but it must conform to customer demand. ***[4.The Presence of Competitors]*** [➤The marketing of products becomes interesting with the presence of competitors.] ➤Marketing outfit must develop strategies in capturing their target market and develop and sustained patronage. These marketing strategies must develop customer loyalty to the brand or the product. ***[5. Societal Marketing Concept]*** ➤views that organizations must satisfy the needs of consumers in a manner that gives for society\'s benefit. ** Traditional Concept Marketing** Traditional concept marketing is a marketing strategy a company uses to determine if it can produce a viable product consumer 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 Approaches: Distinct Traditional 1\. Production concept focuses on the internal potentials of the company and not based on the desires and needs of the market. 2\. Marketing concept a philosophy which states that organization must try hard to find out and satisfy the needs and wants of consumers while at the same time accomplishing organizational goals. 3\. Sales concept refers to the idea that people will buy more goods and services through personal selling and advertising done aggressively to push them in the market. 4\. Relationship concept/marketing an approach that centers on maintaining and improving value- added long-term relationships with current customers, distributors, dealers and suppliers. 5\. Societal Marketing Concept views that organizations must satisfy the needs of consumers in a manner that gives for society\'s benefit. ** The Goals of Marketing and their Social Effects** **1**. [Maximize the Consumption of Goods] ➤The Aggressive marketing strategies and policies had increased the consumption of goods and services. The demand of the market is tremendous. Sellers face many challenges on what products to offer. Buyers want quality products at reasonable price and the most convenient location. **2**. [Maximize Consumer Satisfaction] ➤The market demand is varied, and customer satisfaction is the challenge of the marketing organization. Measurement of customer satisfaction is difficult. It embraces careful analysis of the market demand which varies with the time and the social development of society. **3**. [Maximize Choice of Goods or Service] ➤Some marketers believe that the goal of marketing is to maximize the variety of the product in the market and provide consumers a wide assortment of choices. The main objective is for customers to find the goods that will satisfy their biological needs as well as their emotional and social wants. **4**. [Maximize the Quality of Life] ➤ The improvement of the quality of life is the target of marketing people. New hand phones are created to communicate with various sectors of society, friends and families. Easy communications access satisf es not only social needs but also business requirements. Computers and others electronic gadgets bring pleasures to homes and enjoyment of the comfort of living. ** GOALS OF MARKETING** 1\. Focusing on customer wants and needs to distinguish products from competition 2\. Integrating all the organization\'s activities to satisfy customer wants and needs 3\. Achieving the organization\'s long- term goals by satisfying customer wants and needs ** KEY PERFORMANCE INDICATORS (KPIS)** ➤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. 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 **LESSON 2:** ** Traditional Marketing** Traditional marketing is an umbrella term that covers the wide array of advertising channels we see daily. These may include print media, billboard and TV advertising, flyer and poster campaigns and radio broadcast advertising. **➤Ansoff\'s Matrix Theory** Traditional marketing theories include Ansoff\'s Matrix, a theory that proposes products/services fall into one of four categories depending on the market and the product released. The Matrix is used to evaluate the relative attractiveness of growth strategies that leverage both existing products and markets vs. new ones, as well as the level of risk associated with each. - - - - **➤The Marketing Mix** Another marketing theory that\'s considered to be traditional is the marketing mix made up of the 7 P\'s. These include product, promotion, price, place, people, process, and physical evidence. All these components, when combined, create a solid marketing proposal. However, this theory as well as Ansoff\'s, can be drastically improved with the use of contemporary marketing strategies. ** Contemporary marketing** Simply defined, contemporary marketing refers to marketing strategies that are consumer focused. Contemporary marketing strategy offers products and services based on what the target market desires rather than what the company wants them to have, thereby, offering greater support for their customers and becoming able to take advantage of more advanced marketing funnels to track progress. **[ Types of marketing:]** 1\. **Business to Business (B2B Marketing)** refers to the marketing of products or services by businesses to other businesses. 2\. **Business to Consumer (B2C Marketing)** refers to the marketing of products or services by businesses to consumers. 3\. **Brand Marketing** is a term to describe actions that promote a product or service in a way that highlights the brand and shapes its image. 4\. **Cloud Marketing** is the process of using digital platforms to [provide customers with personalized experiences]. The approach involves [reaching customers online through social media], email campaigns, and websites and promoting certain products or services. 5\. **Telemarketing** is the [direct marketing of goods or services to potential customers over the telephone, Internet, or fax.] Telemarketing may either be carried out by telemarketers or increasingly by automated telephone calls or \"robocalls." 6\. **Guerrilla Marketing** is a promotion tactic that involves using unexpected and unconventional interactions to evoke strong emotions and provoke word of mouth. 7\. **Push Marketing** also called push promotional strategy, [where businesses attempt to take their products to the customers]. In a Push marketing strategy. the goal is to use various marketing techniques or channels to \'Push\' their products in order to be seen by the consumers starting at the point of purchase. 8\. **Influencer Marketing** is the practice of working with influential people to promote brands, products, or services. An influencer in this regard can be anyone with a significant network, or \"following,\" of people and/or authority in a particular field. **Emerging Types of Marketing and their Applications:** 1\. **[Search engine optimization]**: Majorly concerned with [increasing a business\' visibility and rankings on search engine result pages.] It is a simple way of attracting organic traffic of potential customers to a website. SEO can be maximized with paid adverts (Google AdWords), strategic content marketing and social media networks. 2\. **[Pay per Click advertising]**: Advertising presented on search engine result pages or web pages where the [advertiser is only charged based on the number of times someone clicks on the ads] to go to the advertiser\'s targeted website. 3\. **[Email marketing]**: A type of marketing based on the distribution of messages through emails. Email marketing provides direct contact with customers and allows businesses to create relationships with their customers. Updates, exciting news, and call to actions can be sent directly to customers. 4\. **[Referral marketing]**: A type of marketing where an individual or customer pleased with the results gotten from a product [refers the product to another person]. It\'s a very subtle form of marketing that can provide great results especially when the person referring is an Influencer in that industry. 5\. **[Affiliate marketing]** is a prominent type of internet marketing where [a third party promotes a product and earns commission], or a piece of the profit gotten from every sale made through that referral. 6\. **[Video marketing]**: Videos act as one of the most interactive types of online marketing and can prove to be a great way to raise awareness about a business or product. In fact, according to Mushroom networks, YouTube is the second biggest search engine. Therefore, video marketing can prove to be a great way to pass messages to target customers. 7\. **[Inbound marketing]**: A very powerful contemporary marketing strategy that [focuses on different tactics to draw consumers in and convince them to buy goods]. It is one the result- oriented types of marketing that uses content to drive results. A key subset of Inbound marketing is Content marketing which the Content Marketing Institute refers to as \"a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience." ** Green Marketing** refers to the process of selling products and/or services based on their environmental benefits. Companies are selling products and/or services by first promoting its benefit that is environmentally friendly or produced in an environmentally friendly way. **📝LESSON 3:** **Relationship Marketing** According to Gilaninia et al (2011), Relationship Marketing involves creating, maintaining and enhancing strong relationships with customers and other stakeholders. Increasingly, marketing is moving away from a focus on individual transactions and towards a focus on building value-laden relationships and marketing networks. ➤Basic. The company salesperson sells the product but does not follow up in any way. ➤Reactive. The salesperson sells the product and encourages the customer to call whenever he or she has any questions or problems. ➤Accountable. The salesperson phones the customer a short time after the sale to check whether the product is meeting the customer\'s expectations. ➤Proactive. The salesperson or others in the company phone the customer from time to time with suggestions about improved product use or helpful new products. ➤Partnership. The company works continuously with the customer and with other customers to discover ways to deliver better value. ***[Customer loyalty]*** is founded on excellent customer services. The creation of customer value does not rely on marketing alone. It compasses other functions such as sourcing, operating, processing, communication, human resource services, administration, finance and accounting. **BUILDING CUSTOMER VALUE** Customer value is defined as the satisfaction derived from what a customer may experience or expect by choosing a particular action relative to the cost of that action. The action can be a purchase, a visit, an order, or a sign up. The cost refers to anything that can be given up to receive the desired product or service which can be in the form of money, time, knowledge, data or others. TYPES OF CUSTOMER ➤Strangers are customers whose needs do not fit the company\'s offerings. The company does not need to invest and exert effort to win them. ➤Butterflies.as the name implies, are not loyal to specific brand because they keep on looking for the best deals which may lead to patronizing other brands. The company can enjoy profits from these customers only for a short period. ►True friends have needs that match the company\'s offerings. They make repeat purchases and patronize the brand as long as it satisfies their needs. The company must invest in these customers and strengthen its relationship with them. ➤ Freeloaders are loyal but not profitable because of the limited fit between their needs and the company\'s offering. **CUSTOMER SERVICE IN THE PHILIPPINE BUSINESS ENTERPRISE** ►Email and SMS also help businesses communicate with their clientele more easily as most consumers regularly check their inboxes. ➤Social Networking sites aside from their primary function of connecting people, have become a channel for netizens to ask for customer support ➤Live chat support facilitates real time correspondence customer and the representative. **📝LESSON 4** **MARKETING RESEARCH** Market research examines consumer behavior and trends in the economy to help a business develop and fine-tune its business idea and strategy. It helps a business understand its target market by gathering and analyzing data. **TACTICAL MARKETING** ➤Tactical marketing is characterized by intense, short-term marketing efforts aimed at reaching a company\'s marketing goals. Tactical marketers might, for example, launch an intense marketing campaign on Facebook to promote one specific product or service. **STRATEGIC MARKETING** ➤Strategic marketing, on the other hand, is a more long-term vision of your company\'s future and what you need to do to get there. Strategic marketers might implement marketing best practices, work to increase your organic traffic, or use things like networking and even email outreach as their primary tactic because those channels will help them nurture long-term relationships with their prospects. "Together, tactical and strategic marketers form a balanced team that is able to both form and maintain relationships with customers and drive impressive immediate results." **MICRO ENVIRONMENT FACTORS** ➤Suppliers: Suppliers can control the success of the organization when they hold power. The supplier holds the power when they are the only or the largest supplier of their goods; ➤Resellers: If the organization\'s product or service is taken to market by third-party resellers or market intermediaries such as retailers, wholesalers, etc. ➤Customers: Who the customers are (B2B or B2C, local or international, etc.) and their reasons for buying the product will play a large role in how the organization approaches the marketing of its products and services to them. ➤The competition: Those who sell the same or similar products and services as the organization is the market competition, and the way they sell needs to be taken into account ➤ [The general public]: The organization has a duty to be a good corporate citizen **MACRO ENVIRONMENT FACTORS** ➤ Economic factors:These can include interest rates, recession, demand and supply for example. ➤Natural/physical forces: The Earth\'s renewal of its natural resources such as forests, agricultural products, marine products, etc. must be taken into account. ➤Technological factors: The skills and knowledge applied to the production, and the technology and materials needed for the production of products and services can also impact the smooth running of the business and must be considered. ➤Political and legal forces: Sound marketing decisions should always take into account political and/or legal developments relating to the organization and its markets ➤ Social and cultural forces: marketing must consider changing in culture and society when creating successful marketing activities. "The **micro and macro environment** have a significant impact on the success of marketing activities, and therefore such environmental factors must be considered in-depth during the process of creating a strategic marketing plan." **📝LESSON 5:** **Business Market** A business market, often called a B2B (business-to-business) market, is a dynamic arena where companies and organizations engage in transactions. In this context, businesses are buyers and sellers of goods and services tailored to the needs of other businesses. **Consumer Market** A consumer market, often called a B2C (business-to-consumer) market, is where businesses sell products or services directly to individual consumers. In this market, the focus is on meeting the personal preferences and needs of end-users. Transactions usually involve smaller purchase volumes and simpler decision-making processes than business markets **Market Segmentation** It is a way of aggregating prospective buyers into groups or segments, based on demographics, geography, behavior, or psychographic factors in order to better understand and market to them. - - - - - **[Benefits of Market Segmentation]** ➤ Increased resource efficiency ➤ Stronger brand image. ➤ Greater potential for brand loyalty. ➤ Stronger market differentiation. ➤Better targeted digital advertising. **[Difference between Consumer Buying Behavior and Organizational Buying Behavior]** **The STP Marketing Model can help you to analyze your product offering and the way you communicate its benefits and value to specific groups.** **STP stands for:** **➤ Segment your market.** **➤ Target your best customers.** **➤ Position your offering.**