Module 1 - Week 1: SHS Principle of Marketing PDF

MODULE 1 - WEEK 1 SHS – PRINCIPLE OF MARKETING Prepare By: Rey R. Nueva MCA MONTESSORI SCHOOL, INC. 1  Lesson 1: Marketing and Its Traditional Approach At the end of the lesson, the students will be able to...

MODULE 1 - WEEK 1 SHS – PRINCIPLE OF MARKETING Prepare By: Rey R. Nueva MCA MONTESSORI SCHOOL, INC. 1  Lesson 1: Marketing and Its Traditional Approach At the end of the lesson, the students will be able to 1. Define and understand marketing; 2. Illustrate the utility concept of marketing, 3. Identify the characteristics of the marketing organization, and 4. Describe the traditional approaches to marketing. MCA MONTESSORI SCHOOL, INC. 2  Procter & Gamble (P&G) It is one of the leading manufacturing companies which has developed over 100 product brands that are among the most recognized in the world, one of them being Tide detergent. is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, MCA MONTESSORI SCHOOL, INC. 3  Procter & Gamble’s Tide The Origins Procter & Gamble (P&G) - P&G was established in 1837 when William Procter, a candle maker, and his brother-in-law William Gamble, a soap maker, decided to become a business partner to establish a family-run business. - In the 1930s, the company’s scientists worked on developing a heavy- duty laundry detergent that would clean heavy stains without damaging the clothes. In 1944, David Byerlyn succeeded in creating a prototype cleaning agent. In 1946, P&G launched the product with the brand name Tide. MCA MONTESSORI SCHOOL, INC. 4  Procter & Gamble’s Tide - One significant factor which aided marketing efforts was the Tide logo. The bright yellow and orange colors for the concentric circles that formed the target, and the brand name in blue to symbolize calmness. The company has not made any significant changes to it since its release. - The marketing efforts of P&G eventually established Tide as a leading detergent product in many countries throughout the world. MCA MONTESSORI SCHOOL, INC. 5  Marketing Marketing Terms: A Marketer is a person who identifies the goods and services needed or wanted by customers and markets them. A Customer is a person or a business that buys goods or avails of services produced or offered by a firm. A Consumer refers to a person who acquires goods or services for direct use and has no intention of reselling them or using them to create another good or service. MCA MONTESSORI SCHOOL, INC. 6  Marketing Marketing - 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. - Marketing activities apply to not only profit-oriented businesses but also to non-profit organizations. - The production and selling of goods and services are the main functions in most organizations. MCA MONTESSORI SCHOOL, INC. 7  Utility Concept of Marketing Concept of Utility - It is the power of a good or service to satisfy a particular need or want of a consumer. - It is also the term for the benefit that consumers derive from acquiring and using a particular good or service. - A firm creates and distributes a good to create a particular value for the consumers. MCA MONTESSORI SCHOOL, INC. 8  4 Kinds of Utility Concept of Marketing 1. Form Utility – refers to the conversion of raw materials into products that suit the preferences of consumers so that they do not have to create their desired products themselves. Task Utility is a similar utility that refers to offering services which consumers may not be capable of doing or may not like to do themselves. 2. Place Utility – refers to the availability of the product or service at accessible location. Marketers devise ways to provide value through availability, ensuring that consumers can easily have the goods or use the service. MCA MONTESSORI SCHOOL, INC. 9  Utility Concept of Marketing 3. Time Utility - refers to the satisfaction derived by customers in availing of products or services on time. Banks have also improved the processing. Banks have also improved the processing of loans and cut the waiting time of clients. 4. Possession Utility – refers to ensuring that consumers have full possessions of the product or service at the right time, so this overlaps with time and place utility. They can also offer credit facilities for products that customers cannot afford to buy in cash at the moment. MCA MONTESSORI SCHOOL, INC. 10  The Marketing Organization Marketing Terms: Exchange is the process of offering something to another and then being offered something in return. Transaction is an agreement between a buyer and a seller to exchange goods or services. The exchange should involve money or some other resource that is of value to the organization offering the need-satisfying product or service. MCA MONTESSORI SCHOOL, INC. 11  The Marketing Organization Marketing Organization - refers to the department in a corporation that ensures the smooth flow of marketing plans, policies, and programs that monitor all sales activities, customer services, and distribution and promotion efforts. - The marketing organization can be described with the Cs of marketing which describe the six aspects of the organization: consumer content, company capabilities, communication, competition, cross-functional contact, and community content. MCA MONTESSORI SCHOOL, INC. 12  The Marketing Organization 1. Consumer Content – Any organizations that employs marketing should keep customers informed about what they offer and should always be in constant contact with them. 2. Company Capabilities – Marketing organizations need to strengthen their capabilities in production and operations to develop and produce goods that will meet consumer needs. 3. Communication – A marketing organization must have a positive, long- lasting relationship with its customers because they constantly look for cues provided by the organization as they make their purchase decisions. 13  The Marketing Organization 4. Competition – The real challenge for any organization is to face its strongest competitor head-on. It should know the competitor’s strengths and weaknesses and determine the best way to respond. 5. Cross-Functional Contact – A marketing organization cannot work alone without the support and assistance of other departments. An effective and creative advertising team cannot assure good sales without an equally reliable and dependable sales force. 6. Community Contact – A marketing organization is updated with local, international, and community news, It has constant contracts with different agencies and organizations within its surroundings. MCA MONTESSORI SCHOOL, INC. 14  Traditional Approaches in Marketing 1. Production Concept – It starts with the production process and ensures that the firm produces high quality goods. The next task is to find people who will buy the products. This philosophy of this approach is that consumers favor companies that produce high-quality and affordable goods. 2. Product Concept – It is believed that a product should be of high quality of excellent performance, and with innovative features. Manufacturers who use this approach emphasize the importance of innovation as the key to business success. MCA MONTESSORI SCHOOL, INC. 15  Traditional Approaches in Marketing 3. Sales Concept –Production techniques became more elaborate and sophisticated in the 1950’s. High-quality products and services continued to be provided but companies had difficulty selling them to customers. Buyers were unwilling to purchase goods and avail of services that they thought were not essential. MCA MONTESSORI SCHOOL, INC. 16 MCA MONTESSORI SCHOOL, INC.