REVIEWER-MARKETING.pdf

PRINCIPLES OF MARKETING Latin Word - “mercatus” meaning marketplace/ merchant Marketing - Started 18th and 19th Century during the Industrial Revolution - Marketplace have existed since ancient times, with civilizations like Greece and Rome having marketplace bustling with...

PRINCIPLES OF MARKETING Latin Word - “mercatus” meaning marketplace/ merchant Marketing - Started 18th and 19th Century during the Industrial Revolution - Marketplace have existed since ancient times, with civilizations like Greece and Rome having marketplace bustling with traders and customers The Marketing Concept - Kotler and Armstrong (2013) describe - Marketing concept has been defined as marketing as “managing the customers the process by which companies create profitability.” value for customers and build strong - Marketing is also the process of customer relationships in order to conceptualizing, creating, developing, capture value from customers in promoting, and sustaining products and exchange. services by a company, focusing on the needs and preferences of the customer. The Evolution of Marketing Process - Marketers acquire “desirable customers” - Marketing activities were first practices and satisfy their needs during the Industrial Revolution as - The American Marketing Association products were mass-produced and then (2013) defines marketing as the activity, sold to awaiting customers. set of institutions, and processes for creating, communicating, delivering, and Traditional Marketing Approaches exchanging offerings that have value for - Starting in the 1950s, traditional customers, clients, partners, and society marketing followed five major at large. approaches which are also known as - Thus, marketing is the action or business marketing philosophies. of promoting or selling products or services 1. Production Orientation/ Product Concept - This approach requires a company to Markets embark on mass production and - is a place or geographical area where distribution. A company produces a large buyers and sellers meet. quantity of a product. - The set of all actual and potential buyers - Marketing myopia or marketing of a product or service. short-sightedness is when a company manufactures only one product in large quantities and fails to identify the number of customers who are willing to buy them, and the company ends up with surplus products.  2. Selling Orientation / Sales Concept communicating with audiences, and - Relies on the strength of the company’s sales saving money. force in convincing customers to buy the Terms: product even if they do not need it. Uses Goals are an aspiration that every aggressive selling techniques and achieved company would like to pursue or the through hard selling. This approach prioritizes general direction that it wants to take. It sales and pays little attention to the customers’ serves as the main purpose of the actual needs. This may result to failure of company. business Objectives are the specific goals that can 3. Marketing Orientation / Marketing Concept be measured in the short term or the long - The customer’s preferences are prioritized. term. Thus, objectives should be Also known as the customer-centric approach. SMART or specific, measurable, 4. Relationship Concept attainable, realistic, and time-bound. - Building good customer relationships - Centers on maintaining and improving Common Marketing Goals: value-added long term relationships with 1. To develop and maintain a profitable current customers. base of loyal customers 5. Societal Marketing Orientation / Societal 2. To develop products and services that Marketing Concept contribute to the quality of life and - Concern for society’s well-being and the promote environmental conservation. environment’s sustainability is prioritized as 3. To understand consumers’ behavior and much as the customer’s preferences. Also communicate to them the marketing called green marketing and the product is offerings. called a green product. 4. To support the other functional areas of business in achieving the company or The Marketing Process and the 4Ps corporate goals. 7 Goals of Marketing: Marketing Elements: 1. Identifying Target Market Product - the marketing process starts a. Demographic Profile with creating a product that satisfies the b. Most likely to purchase needs and preferences of customers. 2. Increasing Sales and Profits Price - affordable price for customers a. One major goal of company Place - distribution or the place where b. Marketing Strategy the customers prefer to buy products. 3. Increasing Brand Awareness Promotion - the marketer should now a. Aided Awareness - means determine the means of communicating consumers recognize a brand the product message. name when someone mentions it. Marketing Goals and Objectives b. Unaided Awareness - is when - Marketing goals are statements of what consumers think of a particular results the company wants to achieve brand when they need a product. with its marketing efforts. 4. Increasing Market Share - How marketing will contribute to the a. Low pricing strategy business in key areas of growing sales, 5. Countering Competitive Strategies  a. Marketing goal will be to - Ensures that their products have counter a competitive strategy an edge over those developed by b. Must surpass trends and other the competitors. tactics of competitors 3. Integrator 6. Reputation - Mediates between the interests a. The supplier of choice to of the company and the needs of customers the consumers, ensuring that b. The employer of choice to they are integrated into the employees development of the product. c. The partner of choice to - They communicate consumer distributors insights and opinions to the d. The company of choice to company and make sure that this investors information reaches the 7. Increasing Distribution Channels concerned departments, such as a. Methods used to get the the sales department and R&D company’s product into the (research and development) hands of consumers. department, in order to aid b. Selling through retail outlet product development. c. Opportunities for expansion 4. Implementer - Ensures that the marketing Roles of the Marketer strategy for the developed - The job of the marketer, therefore, is not product is in place and just to find the right customers for the implemented effectively. The product, but also to find or develop the marketer makes sure that the right products for customers. Comstock, strategy and production process Gulati, and Liguori (2010) identified the are integrated, and all customers’ four roles of a marketer: insights are considered. Also, the 1. Instigator marketer helps facilitate the - Serves as strategist who analyze production and selling processes current market trends to guide and ensures that the members of the action of the company. the department perform their - Requires to think outside the box assigned roles. and come with creative ways to change the status quo and gain an advantage over the competition. 2. Innovator - Are tasked with researching the kind of product the customers need and ensure that the product developed not only meets customers’ expectations but also exceeds them.