E.J.S Marketing - PDF

E.J.S CHAPTER 5 LESSON 1: MARKETING consumption are not simultaneous, not always diverse nor usually perishable MARKETING involves getting the message out - in a service industry, the pro...

E.J.S CHAPTER 5 LESSON 1: MARKETING consumption are not simultaneous, not always diverse nor usually perishable MARKETING involves getting the message out - in a service industry, the production and to customers about the product or service consumption of products are simultaneous, and the product is It is an organizational function and a set intangible, diverse, and perishable of processes of creating, communicating, and PRICE - the value customers pay in exchange delivering value to customers and for managing for the product and services offered by a customer relationships in ways that benefit the business organization and its stakeholders. - with a product, it is not hard to put a It is also the art and science of choosing price tag on it, since the materials can target markets and getting, keeping, and be measured and its actual tangible cost growing customers through creating, delivering, of production is also measurable. and communicating superior customer value. - with a service, it can be challenging to put a price tag on it, since it cannot be According to the American Marketing measured. Association it is the process of planning and PLACE - also known as distribution, executing the conception, pricing, promotion and encompasses the entire process of taking a distribution of ideas, goods and services to product from the manufacturer and making it create exchanges that satisfy individual and accessible to the consumer. organizational objectives - the place of the production or the plant site can be different from the place of SIGNIFICANT PEOPLE distribution or selling - however, with a service, it is produced a. JAMES CULLITON - described and consumed in the same place. marketers as “ mixers of ingredients” PROMOTION - used as a strategy to communicate between the sellers and buyers b. NEIL BORDEN - coined the term - it fulfills the same role as it does in any “marketing mix” which includes 12 other marketing context elements, namely: product planning, - differentiation becomes a key goal in pricing, branding, channels of order to attract both new and repeat distribution, personal selling, customers advertising, promotions, packaging, - may be in the form of advertising, sales display, servicing, physical handling, and promotion, direct marketing, digital fact-finding analysis marketing. PEOPLE - anyone directly or indirectly involved c. EDMUND JEROME MCCARTHY - in the business side of an enterprise (selling, proposed the conceptualization of 4P’s designing, producing, marketing, managing) (Product, Price, Place, Promotion) which - people element is vitally important in the is used when marketing a product or service marketing mix service. - many businesses must invest in defining the right kind of person to fill a position THE 7P’S OF MARKETING and making efforts to find and train people PRODUCT - a physical good or service sold to PROCESS - knowing what to do and how to do make a profit for the business it, especially in a service marketing - in a manufacturing industry, a product is - the process of production may involved tangible,and the production and steps/procedures that require precision and standard measures of inputs to E.J.S produce the desired quality and quantity of the product PRIMARY RESEARCH where - however, with a service, there is a need information is gathered directly from the to strike a balance between respondents who answered a set of customization and standardization, so questions. These are usually collected the process involved requires special through surveys, observation, focused mention and attention group discussion, or experimentation. PHYSICAL EVIDENCE - everything the customers see when interacting with a business SURVEYS - are the most common way to gather which includes the environment where a primary research with the use of questionnaire business provide their product or service, the or interview schedule design of these spaces, the logo and branding, - can be done via direct mail, over the product packaging, social media presence, and phone, internet(Google Survey) or more email, face-to-face, or on web (Skype, - a calm and soothing environment with Facetime, Zoom, Viber) thoughtful measures may provide a OBSERVATION - a process which involves sense of security to a new customer directly observing consumers or another target which will make them return audience in their natural environment FOCUS GROUP DISCUSSIONS - it involves LESSON 2: MARKET RESEARCH gaining a wider usage in market research due to substantial information gathered given a time MARKET RESEARCH - is an information limit. gathering exercise to determine the viability or - can be moderated group interviews and acceptability of a product or service an brainstorming sessions that provide entrepreneur intends to offer in the market information on users’ needs and Successful businesses conduct research on a behaviors. continual basis to keep up with the market - can be useful on different types of trends and to maintain a competitive edge. discussions, namely: exploratory, feature prioritization, comparative NOTE: (1) to conduct a market research, it is analysis, and trend explanation important to set clear goals for the market PERSONAL INTERVIEWS - a traditional research activity, and define what are needed to method of data collection, which are normally be known, and why (2) it is vital to develop a done in a face-to-face manner with the strategy and select data gathering techniques respondents. that will be used (3) it can be done either - can either be semi-structured through primary or secondary research. discussions with individual or open-ended questions, where the REASONS WHY BUSINESS OWNERS interviewer can probe further to CONDUCT MARKET RESEARCH understand underlying perceptions and behaviors of customers or other types of 1. Identify potential customers respondents. 2. Understand existing customers - more expensive alternative to FGDs 3. Set realistic targets 4. Develop effective strategies SECONDARY RESEARCH wherein 5. Examine and solve business problems data is gathered from existing available 6. Prepare for business expansion resources like company records, 7. Identify business opportunities databases, research reports published in the media, internet search engines, TYPES OF MARKET RESEARCH libraries, and books. These are normally E.J.S less time consuming and less SERVICE MARK - is the same as a trademark expensive. except that it refers to a service offering. LESSON 3: BRANDING CHARACTERISTICS OF A GOOD BRAND NAME BRANDING is providing products and services with the power of the brand 1. short and simple 2. easy to spell and read According to Meg Whitman, Branding is When 3. easy to recognize and remember people use your brand name as a verb, that is 4. easy to pronounce remarkable. 5. can be pronounced in only one way 6. can be pronounced in all languages (for Meanwhile according to Canon, Perrault, and international market McCarthy (2008) branding is the use of a name, 7. suggestive product benefits term, symbol or design – or a combination of 8. adaptable to packaging needs both to identify a product. 9. no undesirable imagery 10. always timely (does not go OOD) BRAND NAME is a word, letter or a group of 11. adaptable to any advertising medium words or letter. They connect a product with the 12. legally available to use benefits a customer can expect. This can be learned from past consumer experience, from LESSON 4: MARKETING MANAGEMENT the company’s promotion or other advertising PRACTICES strategies. A. ESTIMATE POTENTIAL MARKET NOTE: Brand is all about making a difference. DEMAND - Estimation is an educated To brand a product, it is essential to teach guess. The best way to be very certain consumers. about estimates for potential market demand is to look for facts about the FACTORS TO CONSIDER WHEN NAMING A industry. Census is also a good source BRAND of estimates. WHO - the product is - by giving it a B. ANALYZE THE COMPETITORS - Know name the competitor’s products or services, WHAT - the product does how much they cost, how they are WHY - consumer should care distributed and how they are made known to the target market. TRADEMARK - is a legal term that includes only those words, symbols or marks that are legally C. PRICE THE PRODUCT/SERVICES registered for use by a single company. REASONABLY - The price of the product has a greater influence on how it will sell in the marketplace. Some people will pay higher for products with high quality. For others, if the price of the product is higher than what they can afford, then they will not patronize your product. Set your price, after considering all costs at an affordable amount. E.J.S D. ADOPT A GOOD PRODUCT NAME G. ATTEND TO CUSTOMER’S FOR BRANDING - Different and COMPLAINT - have a customer service unusual names may attract attention. counter to attend to the needs and Consider a name that creates a mental complaints of the customers picture of an image that is easy to - customers are given certain number of remember (e.g.: Red ribbon, Jollibee) days for item returns (subject to replacement or refund) E. PUT PRICE TAGS - All goods which are - goods have expiration date being sold must have a price tag. A - in restaurants, orders are repeated to price tag is a label to the price of an insure correct orders item.It is the amount of money a buyer pays in order to own the item. H. ISSUE OFFICIAL RECEIPT TO CUSTOMERS - All business Placing a price tag have the following establishments are required to issue advantages (1) the price is readily available to official receipts. The OR is one of the the buyers (2) it eliminates inconvenience as to ways by which the government the process of inquiry (3) can save time in determines how much sales have been choosing goods (4) easy monitoring for the made by the business. government (price control council. I. PRACTICE COURTESY AND F. PROMOTE THE EFFICIENCY IN SERVING PRODUCTS/SERVICES IN VARIOUS CUSTOMERS - Treating customers in a WAYS TO INCREASE SALES - courteous manner means greeting them Advertising the products help in upon entering the store and thanking generating sales. The entrepreneur has them upon leaving, promptly attending to device ways of making people know to their orders, informing them about the and want to buy the products. length of serving time, requesting them to sit down while waiting, answering all their queries and delivering orders on the promised time. J. PACK THE GOODS BOUGHT BY THE CUSTOMERS PROPERLY - Breakable items must be packed securely, wet items need to be grouped together and placed in a separate bag from the dry items, toxic item such as detergent, acid and insect spray must be separated. K. OBSERVE THE RIGHTS OF CUSTOMERS The government has passed different laws protecting the rights of the consumers: (1) Art. 2187, R.A. 386 - Right to safety (2) R.A. 306 - Right To Information (3) Right to choose (4) Art. 159, R.A. 7392 - Right to be heard (5) Art. 1547, R.A. 38 - Right to compensation for damages E.J.S CHAPTER 6 LESSON 1: d. Lastly, it provides the basis for future PRODUCTION/OPERATIONS MANAGEMENT innovation by building a solid base of operations skills and knowledge within PRODUCTION is the activity that involves the business. converting materials into useful forms. These materials may be raw, PRODUCTION/OPERATIONS MANAGEMENT semi-processed or semi-finished goods or even PRACTICES finished products. PLAN AND CONTROL PRODUCTION - 4M’S OF PRODUCTION It is the key to efficient and effective production management. When the 1. METHOD - refers to the process or entrepreneur plans ahead, one can technique of converting raw materials to anticipate problems, and work out finished goods using inventory solutions to prevent problems from management systems to establish what occurring. is needed and at what inventory stock levels (availability of materials) ADOPT STANDARD PRODUCTION MODELS - It is vital to have a 2. MANPOWER- this simply refers to the production process in place that will help Human workforce involved in the the entrepreneur make certain that the manufacturing of the products. They are company has a quality product/service considered as the most crucial and that is needed and produced the way it important factor of production. is planned. 3. MACHINE - This are the manufacturing DESIGN PLANT-LAYOUT FOR equipment used in the production of BETTER EFFICIENCY - It means goods and delivery services. arranging and putting together the right space, appropriate furniture, and proper 4. MATERIALS - they are the raw equipment in such a way as to minimize materials needed in the production. the movement and handling of materials to accomplish the tasks called for by the OPERATIONS MANAGEMENT involves business. activities, decisions and responsibilities of LAYOUT - the way machines, managing the resources which are dedicated to workplaces, and storage areas are the production and delivery of products and located in relation to one another services. CHOOSE THE RIGHT MACHINE AND MAIN ADVANTAGES OF OPERATIONS EQUIPMENT - The choice of machine MANAGEMENT and equipment affects the overall profitability of the business. The money a. It reduces the cost of producing used to buy these is a form of products, services and being efficient. investment. The entrepreneur has to b. It increases revenue by increasing decide whether the firm’s production customer satisfaction through quality process will be of the machine and service. driven/automated, or c. Reduces the amount of investment that labor-intensive/manual, or a is necessary to produce the required combination of both. type and quantity of products and services. E.J.S PURCHASE BASED ON NEEDS AND LESSON 2: HUMAN RESOURCE TIME - It is imperative to procure the MANAGEMENT raw materials, components, machinery, equipment, supplies, and necessary HUMAN RESOURCE MANAGEMENT refers to services needed in the production on the policies, practices, and systems that time. This can reduce costs and ensure influence employees’ behavior, attitudes, and the quality of the needed materials. performance. HRM practices includes HR planning, MAINTAIN MACHINES AND recruiting, training and development, EQUIPMENT PROPERLY - It is compensation, performance management, and important to keep machines and employee relations. equipment in good running condition. Their proper care and maintenance HUMAN RESOURCE MANAGEMENT ensures that there is no disruption of PRACTICES production due to machine breakdown. Machine breakdowns cause delays, as 1. Design an effective recruitment well as financial costs for repair. strategy. RECRUITMENT is any practice MANAGE INVENTORY/STOCK VERY or activity carried on by the WELL - organization with the primary STOCKS/INVENTORY - all the purpose of identifying and goods a business has for sale, and all attracting potential employees raw materials or parts a business keeps all companies have to make to ensure continuous operations decisions in 3 areas of Avoid poor inventory practices recruiting: (1) personnel by keeping just the right amount of policies, (2) recruitment stocks of merchandise, supplies, raw sources, and (3) characteristics materials, in-process, and finished and behavior of the recruiter. goods that are needed to meet the sales targets. 2. Adopt a good selection process. SELECTION is the process by which the ENSURE QUALITY CONTROL - organization attempts to identify Defective products can be a result of applicants with the necessary lack of control. Some guidelines to knowledge, skills, abilities, and other observe to ensure quality control in characteristics that will help the production: organization to achieve its goals. check the quality of your raw In most organization, selection materials includes the steps of screening calibrate measuring and testing applications; testing and reviewing work equipment regularly samples, interviewing candidates, maintain machines properly and checking references, and making the make sure they are in good selection condition conduct adequate tests to make 3. Develop effective training programs. sure it meets quality standards TRAINING is a set of activities aimed to or not facilitate learning of knowledge, attitude, inspect for quality and skills among people in the organization, to, in turn, improve their current job performance and E.J.S contribution to the achievement of the while accommodating the needs of both organizational goals. parties. It is a planned effort by a These interactions includes company to facilitate employees’ communication, interpersonal learning of job-related competencies. relationships, participation, discipline, and grievance resolution. 4. Conduct performance management. PERFORMANCE MANAGEMENT is 8. Determine the entrepreneur’s role in the process through which managers the business. Many small businesses ensure that employees’ activities and begin with the founder-owner doing all outputs contribute to the organization’s the management functions without the goals. help of specialized staff. The conduct of regular The DTI-BSMED Handbook performance assessment either twice a Guide (2010) indicated factors which year or yearly will enable the employees can help entrepreneurs to choose which to know how they are doing their job. role(s) to take in one’s business: (1) education and training, (2) experience, 5. Implement an attractive (3)interest and talent, (4) time, and (5) compensation scheme. the Pros and Cons of Having a Bird’s COMPENSATION refers to all forms of Eye view financial returns and tangible services and benefits that employees receive as 9. Get the right people. Choose people part of an employment relationship. who possess the expected work values Employee benefits, refer to the and are willing to be trained and to stay part of the compensation package, other in the company after being trained. than pay for time worked, provided to In starting a business, an employees (e.g. life insurance, entrepreneur may begin with family pensions, vacation) members, relatives, friends as the workforce, but be clear about requiring 6. Design work-family balance them to be professional in the programs. workplace, especially when dealing with WORK-FAMILY BALANCE is you the degree to which an individual is able to simultaneously balance the temporal, 10. Prepare an employee manual. It is emotional, and behavioral demands of always advisable to prepare an both paid work and family employee manual. This should contain responsibilities. information pertaining to company Some of the ways to help policies and procedures on working employees balance their work and conditions, compensation, other personal lives are flextime and flexplace benefits, discipline, and grievance programs. processing, among others. 7. Observe fair employee relations 11. Invest in human capital. practices. HUMAN CAPITAL is the quality EMPLOYEE RELATIONS or and quantity of skills, education, and labor relations pertains to a set of talents a person has. processes and procedures utilized in the There should be a budget interaction between employees and allocated for the cost of specialized employer to attain their respective goals, E.J.S training, for training people on human relations and leadership skills. 12. Motivate people in the workplace. MOTIVATION is a function of willingness and ability to do the job, as well as help employees work at high energy levels. Open communication, respect, fair compensation, training, work-life balance, and empowerment activities will definitely motivate people in the workplace. 13. Maintain employees’ commitment and loyalty. One way to do this is to ensure that the work environment is safe, healthy, caring for employees, and at least compliant with government rules and regulations, as well as social responsibility. Competitive compensation and training will also help toward this objective. 14. Effectively communicate policies and practices with employees. When employees know what are expected from them, how they will accomplish their tasks, instructions are clear, and they are given the opportunity to give feedback, they will feel valued and respected. Communication is very important so that employees feel they are really part of the organization.