Lesson 1: Introduction of Marketing PDF

Lesson 1: Introduction of Marketing Prepared by: Joan L. Pingol  MARKETING As defined by American Marketing Association, “it is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners,...

Lesson 1: Introduction of Marketing Prepared by: Joan L. Pingol  MARKETING As defined by American Marketing Association, “it is 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 Page 1  Marketing As defined by Philippine Marketing Association, “A science and a profession guided principally by the universal principles of ethics, corporate citizenship, and corporate responsibility.” Marketing Page 2 GOALS OF GOAL 1 GOAL 2 Marketing Understand the market and Introduce and innovate its consumers, and satisfy products and services that their changing needs and improve human condition wants. and the quality of life. GOAL 3 GOAL 4 Design and implement Develop marketing programs effective customer-driven that deliver superior value to marketing strategies. consumers. involving products and/or 5 Ps: Products, Price, Promotion, Place and People consumers. Marketing Page 3  Goals of GOAL 5 Build and maintain beneficial and profitable customer relationship. GOAL 6 MARKETING Capture customer’s value to create profits. GOAL 7 Promote value transactions with full regard to society’s well-being. Marketing Page 5  THE MARKETING Process The Situation Marketing Strategy Marketing Mix Implementation Analysis Formulation Decisions and Control Strengths, Market Segmentation Product Implementation Weaknesses, Target Market Price Monitoring Opportunities, Selection Place Marketing and and Threats Value Proposition Promotion mix adjustment Product Position People Marketing Page 6 PRODUCT A Product is the item offered for sale. It can be a service or an item. It can be physical or in virtual or cyber form. Every Product is made at a cost and each is sold at a price. Marketing Page 7  Formal or Actual Product Features Price Product Brand Packagin Style g Design LEVELS Core or Generic Product Augmented Product Payment Terms Repair and Installment Terms Maintenance Warranty After Sale Service Marketing Page 8  TYPES OF PRODUCTS 1. Goods - pen, lamp, mobile phone 3. Digitized or Virtual Products - e-Books, 2. Services - therapy audio files, website sessions, haircut, templates, PDFs legal advice, surgery Marketing Page 9  CLASSIFICATION OF PRODUCTS According to Use According to differentiation According to Durability According to Type Marketing Page 10 ACCORDING TO USE 1. Consumer Goods - purchased for (personal) consumption. 2. Industrial Goods - purchased in order to make other goods services Marketing Page 11 ACCORDING TO DIFFERENTIATION 1. Undifferentiated Products - characteristics are so identical, that it would be difficult to distinguish one purchased from one vendor or another 2. Differentiated Products - are varied in their characteristics and the features that they are readily distinguishable from another. Marketing Page 12  BRANDING It is the ability of manufacturers to successfully distinguish their products from other competitors. It provides a product a unique distinguishing name, logo, symbol, or image. Marketing Page 13 ACCORDING TO DURABILITY 1. Consumable - is a product whose benefit can only be used by a consumer for only a short period of time, sometimes only a few minutes (e.g. food and drinks) 2. Semi-durables - provide benefits for a longer period of time, usually spanning several months (e.g. clothes, shoes, belts) Marketing Page 14 ACCORDING TO DURABILITY 3. Durables - are products that last long time (e.g. automobile, furniture, major household appliances, etc.) Marketing Page 15  1. Consumer Goods - purchased frequently, ACCORDING usually inexpensive, and do not require much purchase effort and evaluation (e.g. TO TYPE shampoo, soap) 2. Shopping Goods - purchased frequently than convenience goods, are relatively expensive, and require some amount of information search and evaluation prior to purchase (e.g. clothes, shoes, bags) Marketing Page 16  ACCORDING TO TYPE 3. Specialty Goods - goods that require unusually large effort on the pat of consumers to acquire - consumers are usually willing to travel great distances to where those goods can be purchased (automobile, work of art, high- fashion clothing) Marketing Page 17 ACCORDING TO TYPE 4. Unsought Goods - goods that consumers seldom actively look for, and are usually purchased for extraordinary reasons, such as fear of adversity, rather than desire. (investments, memorial plans, life insurance, fitness gym membership) - Require aggressive selling efforts and usually marketed by highly trained and persuasive salesperson. Marketing Page 18  SERVICES Services Attributes: Intangibility - not capable of being touched (e.g. lesson of a teacher) Variability - no service provider can render the same service exactly the same way every single time (e.g. teacher giving same lecture in two separate sessions.) Marketing Page 19  SERVICES Services Attributes: Inseparability - the consumer and the service provider must be both present as the service is being provided (teacher and students in class) Perishability - services cannot be stored or warehoused. Marketing Page 19  THANK You