Marketing Reviewer (1st Sem - Aug 21-22 Exam) PDF

MARKETING REVIEWER (1ST SEM - AUG 21-22 EXAM) Marketing refers to all activities a company does to promote and sell products or services to consumers. Marketing makes use of the "marketing mix," also known as the four Ps—product, price, place, and promotion. Marketing used...

MARKETING REVIEWER (1ST SEM - AUG 21-22 EXAM) Marketing refers to all activities a company does to promote and sell products or services to consumers. Marketing makes use of the "marketing mix," also known as the four Ps—product, price, place, and promotion. Marketing used to be centered around traditional marketing techniques including television, radio, mail, and word-of-mouth strategies. Though traditional marketing is still prevalent, digital marketing now allows companies to engage in e-mail, social media, affiliate, and content marketing strategies. Marketing is an organizational function; it is a core that is expected of a modern organization, whether or not it operates for profit. Marketing is not out there to fool customers, to cheat them of their money or to sell them something that they don’t want. Marketing Goals 1. Understand the market and its consumer, and satisfy their changing needs and wants 2. Introduce and innovate products and services that improve human condition and quality life 3. Design and implement effective customer-driven marketing strategies 4. Develop marketing programs that deliver superior value to consumers 5. Build and maintain mutually beneficial and profitable customer relationships 6. Capture customer value to create profits 7. Promote value transactions with full regard to society’s well being. Marketing system Industry (Collection of Sellers) Composed of businesses that seek to sell a particular kind of good or service. Market (Collection of Buyers) Composed of all current or potential consumers for the given kind of good or service. Goods and Services Are the outputs offered by businesses to satisfy the demands of consumer and industrial markets Money Are payments for goods/ services availed Examples of Exchange Transactions Politics TV Social Media Marketing process THE SITUATIONAL ANALYSIS Microenvironment Macroenvironment Market Customers Competitions Strengths, weaknesses, opportunities, and threats THE MARKETING STRATEGY FORMULATION Market Segmentation Target Market Selection Value Proposition Product Positioning THE MARKETING MIX DESCISION Product Price Place Promotion IMPLEMENTATION AND CONTROL Implementation  Monitoring Marketing mix adjustment Microenvironment Includes forces that are internal to the company or those that are relevant to its operation Macro Environment Includes factors that are external to the organization. These can neither be influenced nor altered by the company. Market One who could be interested in the product. Customers One who avails the product SWOT Analysis A strategic planning technique used to business competitions and project planning Market Segmentation The process of dividing a market of potential cuistomers into groups, or segments, based on different characteristics. Target Market Segmentation The act of dividing a large target market into distinct groups of consumers Value Propositioning An innovation, service, or feature intended to make a company of product attractive to customers. Product positioning Is your product’s promise of how it will improve life or work for your users. Implementation is the process of turning your marketing strategy into real-life actions: tasks and projects, people responsible for them, and deadlines. In other words, it's about bringing your marketing plan to life. Monitoring is the regular observation and recording of activities taking place in a project or program. Marketing mix adjustment refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. to the set of actions, or tactics, that a company uses to promote its brand or product in the market. Levels of Product Core or Generic Product Can be defined as the purpose for which the product was created. However, physical products cannot be effectively marketed on the sole basis of their core or generic function because similar products have the same core or generic function. It would be difficult to convince customers because product differentiation is not possible. Formal Product Second product level which includes factors that could effectively differentiate products produced by different companies or businesses. It would be sufficient for most marketing organizations’ formal products to successfully differentiate their product offering from their competitors. 1. Feature 2. Styling 3. Price 4. Color Augmented Products Certain type of products of goods, particularly those that are very expensive and have long service lives, require a third level Because of the relatively high price, most customers may not have immediate funds available for purchase. Necessary to offer the following: Credit terms Installment Terms Installation Warranty Service Repairs ACTIVITY NOTES: Formal - Jacket, Clothing, Phone Cases Augmented - Prada, burberry, rolex Core or Generic Products - Ref, Cellphone, Bag SERVICES Are deeds, processes, and performance. It is an activity or benefit that is offered by one party to another. It is inherently intangible and does not result in any transfer of ownership Intangibility A service is an intangible experience and not a physical object Therefore, it cannot be seen, tasted, smelled, or touched, like a physical good. Because service is an experience, the buyer does not know about the service until he/she uses it. Examples: Plastic Surge Lawyer Ways to overcome intangibility Taglines Showcase previous customers to highlight benefits achieved by joining their classes. Visualize the service 1. Let the customers see how you provide service 2. Infographics for visual appeal 3. Campaigns and commercials Association – companies associate their brands with popular celebrities to emphasize their brand value Variability It is called inconsistency, heterogeneity, or non standardization, because it makes it difficult to establish a standard. This is because a service is delivered by different people with different delivery times and customer involvement levels. Examples:  The service quality experienced by a passenger while flying an airline will differ each time owing to the cabin crew, co passengers, and travel time. A hairstylist haircut and a professor’s lecture performance may vary owing to human element. Ways to overcome tangibility A. Train Internal Customers- Employees B. Automation C. Standard Operating Procedures Inseparability It means that services are produced and consumed simultaneously, because customers are a part of the service production process. This concept can be better understood through a comparison of services and goods. This limits the ability to render the service to a large number of people, as the service provider’s presence is always necessary component in the production of the service. Example: Mr.Quickie Ways to overcome Inseparability A. Utilization of Technology B. Service Franchising – to maximize revenues with standardized systems and procedures. Perishability It implies that services are perishable and unlike a good, cannot be stored for later use. Additionally, services cannot be stored, saved, returned or resold once delivered to a customer. Ways to overcome perishability: A. Capacity Management achieving a proper balance between service demand (customer needs) and service supply (service availability). If service demand exceeds service supply, the excess demand cannot be accommodated by supply; potential revenues are lost. On the other hand, if service supply exceeds service demands, the excess supply “perishes” and represents unrecovered revenues. Needs Are defined as physiological necessities required for human survival. These universal needs include food, shelter, and clothing. Wants Are more psychological, indicating preferences that can improve the consumer’s condition. Are specific manifestations of need. Demands Demands are wants that are backed by purchasing power. MARKET AND MARKET DEMAND Market is defined as the group of individual or organizational customers who have both the willingness and financial capability to purchase a product/ service. Market demand is the total demand of all potential customers for a specific product/ service over a period of time. Primary Demand - refers to the total demand for all brands of a particular product or service. Selective demand – is the demand for a specific brand of product or service. MEASURING MARKET DEMAND Measuring market demand in the Philippines is challenging because few accurate published industry statistics are available. Because of this, companies conduct surveys to establish an estimate of market demand. Potential Demand is defined when there is no demand yet for a particular product or service, but there exists a market with sufficient financial capability to purchase. Example: St. Peter Life Plan Family Planning Latent Demand results when customers in a market are unable to satisfy specific desires because there exist no product/service in the market that can satisfy them. It can also result when the product/service is unavailable, but is priced beyond their reach. Current Demand is defined as the number of people of a particular market at present. This can be measured in several ways, most popular of which is “intent to buy” surveys. ACTIVITY NOTES: Potential Life Insurance St. Peter Latent Iphone 15 Macbook Current Fishes Water Vegetables Bigas