Week 1

MKTG 1
Principles of Marketing
Roxanne Tan, MBA, ChE

Melinda Sih, Director of The Etiquette School of Kansas City

• Bachelor Degree in Chemical Engineering at
the University of Santo Tomas in Year 2000

• Masteral Degree in Business Administration
at the De La Salle University in Year 2010

• Working at Fairland Knitcraft Co. Inc. as a
Garment Export Merchandiser and Marketing
Introduction

Specialist

• Working at Blue Ocean Chemtrade Inc as
Business Development Officer for the
construction industry

• COURSE DESCRIPTION

The Introduction to Marketing, its
Philosophies, Strategies and Challenges
today. It includes the marketing
mix, basics of
promotions, advertising, selling and
customer satisfaction.

• COURSE OBJECTIVES
At the end of the trimester, the students
are expected to understand, appreciate
and apply the fundamentals of
marketing

• GRADING SYSTEM
Quizzes 25%

Class Standing 50%
Midterm Exam 25%
Midterm Grade 40%
Quizzes 10%
Class Standing 25%
Final Project 25%

*Class Standing
Recitation 40%
Attendance 30%
Quizzes/Assignments 30%

• Marketing is working with markets attempting
to actualize potential exchanges, a human
activity directed at satisfying needs and wants
through the exchange process. (Kotler)
Marketing Definition

• Marketing is a complex business process
directed towards satisfaction of consumers’
present and future wants through supply of
goods and services and in the end would reward
those engaged in such activities. (Gomez)

• Marketing is the process in a society by which
the demand structure for products and services
is anticipated or enlarged and satisfied through
the conception, promotion, exchange and
physical distribution of such goods and services.
(Carman and Uhl)

• Marketing is a social process which directs and
economizes flow of goods and services from
producers to consumers in a way which effectively
matches supply and demand and accomplishes the
objectives of society. It is the performance of
activities which seeks to accomplish an organization’s

objectives by anticipating customer or client needs
and directing a flow of need-satisfying goods and
services from producer to consumer or client.
(McCarthy and Perreault Jr.)

• Marketing is a total system of interacting business
activities designed to plan, price, promote and
distribute want-satisfying products and services to
present and potential customers. (Stanton)

• Marketing is a social and managerial process by
which individuals and groups obtain what they need
and want through creating and exchanging products
and value with others. (Kotler and Armstrong)

• Marketing is the task of
creating, promoting, and delivering goods and
services to consumers and businesses

• Product
Anything that can be offered to a market for
attention, acquisition, use or consumption that
might satisfy a want or need.

Marketable entities:
goods, services, experience, events, persons, pla
ces, properties, organizations, informations and
ideas

• Exchange
The act of obtaining a desired object from
someone by offering something in return.

• Needs
Are basic human requirements

• Wants

The form taken by human needs as they are
shaped by culture and individual personality

• Demands
Human wants that are backed up by buying
power

• Market
The set of all actual and potential buyers of a
product or service

The Market Place

• Consumer Market
• Determine targeted consumers, what need will

be met, and communicate brand positioning
• Much of the brand's strength depends on
developing superior products and packaging and
backing it with promotion and reliable service

• Business Market
• Business buyers purchase products to make
profits
• Business marketers must demonstrate how their
products will help customers achieve higher
revenue or lower costs

The Market Place

• Global Market
• Product Standardization or Customization

• Decide on what country to enter and how; adapt
communication and services to fit culttural
practices of each country

• Nonprofit or Government Market
• Need to price carefully as these organizations
have limited purchasing power
• Much of the purchases call for bids, with the
lowest bid being favored, in the absence of
extenuating factors

The 3 Components of

SALES
• results from satisfying customer's needs and
wants
• for consumer goods determine where
purchase decisions are made, will be at store
level or home level
Marketing

• for direct selling, demand is created by
recruiting and retaining sales people; goods
are introduced on face-to-face product
demonstrations
• business to business, the sales force is the
primary source of awareness to introduce
products directly to clients

4Us of Marketing to Increase Sales Volume
The 3 Components of

• New Users
• Who uses the product or service?
• Extended Users
• Who can still use the product or service?
• New Usage
• For what purpose is the product or services
Marketing

used?
• More Usage
• When and in what occasions is the product
used?

The 3 Components of

MARKET SHARE

• is the ratio of your brand's sales versus the
total sales in your market
• firms must endeavor to improve their market
shares profitability in good times and bad
Marketing

• instead of directly attacking a strong leader
in the market, companies usually enter
underdeveloped market segment or assume
a strong challenger position with in a
particular niche

The 3 Components of

PROFIT

• is an indispensable component for a firm to
continuously satisfy its customers

• is a tangible manifestation of consumer
Marketing

confidence towards your company, your
products and services - Konosoke Matsushita
of national Panasonic Japan

• Defined as the art and science of choosing
Marketing Management
target markets and getting , keeping, and
growing customers through
creating, delivering, and communicating
superior customer value

• Managing Customer Relationships
o Managing demand means managing customers
o Company’s demand comes from two groups:
new customers and repeat customers
o Cost to attract new customers (5x)
o Losing entire stream of purchases / lifetime

Demand States and
Marketing Tasks

Marketing activities should be carried out under well-
thought-out-philosophy of efficiency, effectiveness
and social responsibility
Marketing Philosophies

The PRODUCTION CONCEPT
• This concept holds that consumers will
prefer products that are widely
available and inexpensive
• Focus on achieving high production
efficiency, low costs and mass-
distribution
• This makes sense in developing
countries where consumers are more
interested in obtaining the product than
its features
• It is used when the company wants to
expand the market


The PRODUCT CONCEPT
• This concept holds that consumers will
prefer those poducts that offer the most
quality, performance, or innnovative
features
• Focus on making superior products
and improving them over time
• The draw back is creating a Marketing
Myopia which may overlook the
growing competition
• Organizations may be looking into a
mirror instead of looking out of the
window


The SELLING CONCEPT
• This concept holds that consumers and
businesses, if left alone, will ordinarily not buy
enough of the organization's products
• This concept assumes that consumers typically
show buying inertia or resistance and must be
coaxed into buying
• This assumes that organizations must
undertake an aggressive buying and promotion
effort to stimulate more buying
• "The purpose of marketing is to sell more stuff
to more people more often for more money in
order to make more profit." Sergio Zyman
Coca-cola former vice president for marketing
• Often practiced by companies when they have
over capacity


The MARKETING CONCEPT
• This concept holds that the key to
achieving its organizational goals
consists of the company being more
effective than competitors in
creating, delivering, and
communicating superior customer
value to its chosen target markets

• Customer-centered, sense-and-
respond philosophy; instead of
hunting, marketing is gardening


The MARKETING CONCEPT
• Theodore Levitt of Harvard drew a perspective contrast
between selling and marketing
• Selling focuses on the needs of the seller; marketing on
the needs of the buyer;
• Selling is preoccupied with the seller's need to convert
product into cash; marketing with the idea of satisfying the
needs of the customer
• Selling concept takes an inside-out perspective: starts with
the factory, focuses on existing products and calls for
heavy selling and promotion to produce profitable sales
• Marketing concept takes an outside-in perspective: starts
with a well-defined market, focuses on customer
needs, calls for coordinating activities that will affect
customers, and produces profits by satisfying customers

The 4 Pillars of the MARKETING CONCEPT

• TARGET MARKET
o Market segmentation
• Make product offerings based on
examining the
demographic, psychographic, and
behacioral differences among buyers
• CUSTOMER NEEDS
o Responsive marketer
• find a need and fills it
o Anticipative marketer
• looks ahead into what need customers
may have in the near future
o Creative marketer
• discovers and produces solutions
customers did not ask for but to which
they enthusiastically respond

The 4 Pillars of the MARKETING CONCEPT

• INTEGRATED MARKETING
o Various marketing functions -Sales force,
advertising, customer service, product management,
marketing research must work together
o Marketing must be embraced by other departments
who must also "think customer“
 External marketing - marketing directed at
people outside the company
 Internal Marketing – is the task of hiring, training
and motivating able employees who want to
serve customers well
• PROFITABILITY
o the ultimate purpose of marketing is to help the
organization achieve their objectives
o for private firms, the major objective is long-run
profitability
o for nonprofit and public organizations, the major
objective is surviving and attracting enoug funds to
perform useful work


The CUSTOMER CONCEPT

• The organization collect information on each
customer's past transactions, demographics and
preferences to capture the larger share of each
customer's expenditures and build high customer
loyalty and focus on customer lifetime value

• This works best for companies that carry a lot of
products that can be cross-sold, carry products that
need periodic replacement or upgrading, and sell
products of high value


The SOCIETAL MARKETING CONCEPT

• This concept holds that the organization's task is to
determine the needs, wants, and interests of target
markets and to deliver the desired satisfactions more
effectively and efficiently than competitors in a way that
preserves or enhances the customer's and the society's
well-being

• Calls upon marketers to build social and ethical
considerations into their marketing practices

• Cause-related marketing is an activity by which a
company with an image, product or service to market
builds a relationship or partnership with a "cause" or a
number or "causes", for mutual benefit

Marketing Challenges Today

Customer Values and Orientation

Economic Stagnation

Environmental Decline

Increased Global Competition

Host of economic, political and social problems

Key Trends and Forces

Growth of nonprofit marketing

Colleges, hospitals, museums,
churches and government
organizations

Customers and employees


Rapid Globalization
Economy

Technical advances

Expand geographical
coverage, purchasing and manufacturing

Sell and Buy

Global Networks/ Merging

Cultural Differences


The Call for more Ethics and Social
Responsibility

Corporate ethics

Environmental developments


The new Marketing Landscape

E-business

B2C; B2B, C2C; C2B

Websites

Placing ads and building a profit
model

Customer Relationship Marketing
(CRM)

End of Day 1
Thank you . . . . .

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