2. Marketing = a system concerned with the planning and development of products and
services, determination of prices, creation of promotional programs and distribution
system to present and prospective market for satisfaction of their existing needs and
wants, thus maximizing profit in the long run.
Operational Dimensions of Marketing
Marketing Concept = a management orientation which holds that the key of
task of the organization is to be determine the needs and wants of the target market
and to adopt the organization to delivering the desired satisfaction more effectively
and efficiently than its competitors.
THE MARKETING CONCEPT
Selling Concept = a management orientation which assumes that the consumers
will either buy or not buy enough of the organization products unless the organization
makes a substantial effort to stimulate their interest in its products.
THE SELLING CONCEPT
Discover Market Needs
Product Planning and
Distribution of Products
Guaranteed Sales Volume
and Profits At Customers
Product Planning and
Market = people with needs to satisfy, capacity or money to spend and willingness to
Marketing System = deals with identification of major institutional components
in an organization environment that interact to produce results in the market place.
The Marketing System and Its Environment
Good and Services
Gathering of Information
Market Segmentation= the process of knowing the overview of entire target
market but differentiating them from competitors by recognition of sub-markets with
similarity in needs but differs in demographic, geographic, economic, cultural and
Promotional Methods and
Distribution of Products
Unguaranteed Sales Volume and Profits
Unguaranteed Customers Satisfaction
5. Basis for Market Segmentation
1. Identification whether the buyers are consumer market or industrial market.
2. Demographic Bases
A. Population - its distribution and composition
a1. Total population
a2. Regional Distribution
a3. Urban Rural distribution
B. Age Groups
b3. Young adult (20-34)
b4. Younger middle aged (34-49)
b5. Older age ( 50 -above )
C. Sex Groups
3. Cultural Bases
4. Economic Bases
A. Income Bracket
a1.High income group-A
a2. Upper middle income group-B
a3. Lower middle income group-C
a4. Low income group-D
5. Psychological Bases
b. Buying attitudes
c. Products benefits desired
Classification of Market and Goods
1. Consumer Market = those people who purchases goods and services for
their own personal use.
6. 2. Industrial Market = those people who buy goods and services for business
use or for re-sell purpose in order to gain profit.
3. Government Market
I. Consumer Goods = produces purchases by the consumer market.
A. Convenience Goods
B. Shopping Goods
1. Service Goods
2. Fashion Goods
C. Specialty Goods
II. Industrial Goods = products purchases by the industrial users or
1. Raw Material = product which will become part of another final product and when
integrated to produce another product can be unidentifiable.
2. Fabricating Materials and Parts = which will become part of another final product but
are identifiable in finished form.
3. Installations = which affect operating scale for production quota of the company and
are major equipment of the industrial user.
4. Accessory Equipment = which facilitates or aid in the production operation of the
5. Operating Supplies = convenience goods of industrial market.
Consumption = the utilization of goods to satisfy human work.
Factors affecting consumption
2. Distribution of income
3. Size of the family
4. Habits and customs
5. The rule of human as purchaser
6. Advance of civilization
7. Science and technology
7. 8. Engel's law of consumption
Buying Motives = the needs and wants that prompt consumers to buy.
Needs = are necessities which are essential to the maintenance of life.
Wants = the condition of being without something that is desired.
Classification of Buying Motives
Primary = the motives that causes consumers to buy any one of one class of
Selective = motives that cause the consumer to buy a particular commodity
within a class.
Emotional = a desire which prompts the consumer to buy a particular
product or article as a result of letting himself swayed by an emotion.
Rational = when the consumer uses a reason or intelligence in making a
Emotional buying motives
1. Imitation or emulation
2. Hope of belonging
3. Desire of distinction
4. Seeking status
5. Pride and ambition
6. Desire for innovation
7. Self love and vanity
Rational Buying Motives
2. Desire for quality
Buying Motives for Industrial Consumer
8. 4. Safety
Patronage motives of ultimate consumers
1. Location of the store
2. Reputation of the store
3. Services rendered
5. variety of selection
Patronage motives of industrial consumers
1. Availability of completeness of stock
2. Accessibility of supply
3. Services offered
4. Trade in allowance