Week 1


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Week 1

  1. 1. MKTG 1Principles of Marketing Roxanne Tan, MBA, ChE Melinda Sih, Director of The Etiquette School of Kansas City
  2. 2. • 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 MarketingIntroduction Specialist • Working at Blue Ocean Chemtrade Inc as Business Development Officer for the construction industry
  3. 3. • COURSE DESCRIPTIONPrinciples of Marketing 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
  4. 4. • GRADING SYSTEM Quizzes 25%Principles of Marketing 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%
  5. 5. • 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)
  6. 6. • 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’sMarketing Definition 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)
  7. 7. • Marketing is the task of creating, promoting, and delivering goods and services to consumers and businessesMarketing Definition • 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.
  8. 8. • Needs Are basic human requirements • WantsMarketing Definition 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
  9. 9. The Market Place • Consumer Market • Determine targeted consumers, what need willMarketing Definition be met, and communicate brand positioning • Much of the brands 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
  10. 10. The Market Place • Global Market • Product Standardization or CustomizationMarketing Definition • 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
  11. 11. The 3 Components of SALES • results from satisfying customers needs and wants • for consumer goods determine where purchase decisions are made, will be at store level or home levelMarketing • 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
  12. 12. 4Us of Marketing to Increase Sales VolumeThe 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 servicesMarketing used? • More Usage • When and in what occasions is the product used?
  13. 13. The 3 Components of MARKET SHARE • is the ratio of your brands sales versus the total sales in your market • firms must endeavor to improve their market shares profitability in good times and badMarketing • 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
  14. 14. The 3 Components of PROFIT • is an indispensable component for a firm to continuously satisfy its customers • is a tangible manifestation of consumerMarketing confidence towards your company, your products and services - Konosoke Matsushita of national Panasonic Japan
  15. 15. • Defined as the art and science of choosingMarketing 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
  16. 16. Demand States andMarketing Tasks
  17. 17. Marketing activities should be carried out under well- thought-out-philosophy of efficiency, effectiveness and social responsibilityMarketing 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
  18. 18. Marketing activities should be carried out under well- thought-out-philosophy of efficiency, effectiveness and social responsibilityMarketing Philosophies 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
  19. 19. Marketing activities should be carried out under well- thought-out-philosophy of efficiency, effectiveness and social responsibilityMarketing Philosophies The SELLING CONCEPT • This concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations 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
  20. 20. Marketing activities should be carried out under well- thought-out-philosophy of efficiency, effectiveness and social responsibilityMarketing Philosophies 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
  21. 21. Marketing activities should be carried out under well- thought-out-philosophy of efficiency, effectiveness and social responsibilityMarketing Philosophies 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 sellers 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
  22. 22. The 4 Pillars of the MARKETING CONCEPT • TARGET MARKETMarketing Philosophies 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
  23. 23. The 4 Pillars of the MARKETING CONCEPT • INTEGRATED MARKETINGMarketing Philosophies 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
  24. 24. Marketing activities should be carried out under well- thought-out-philosophy of efficiency, effectiveness and social responsibilityMarketing Philosophies The CUSTOMER CONCEPT • The organization collect information on each customers past transactions, demographics and preferences to capture the larger share of each customers 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
  25. 25. Marketing activities should be carried out under well- thought-out-philosophy of efficiency, effectiveness and social responsibilityMarketing Philosophies The SOCIETAL MARKETING CONCEPT • This concept holds that the organizations 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 customers and the societys 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
  26. 26. Marketing Challenges Today Customer Values and Orientation Economic Stagnation Environmental Decline Increased Global Competition Host of economic, political and social problems
  27. 27. Key Trends and Forces Growth of nonprofit marketing Colleges, hospitals, museums, churches and government organizations Customers and employees
  28. 28. Key Trends and Forces Rapid Globalization Economy Technical advances Expand geographical coverage, purchasing and manufacturing Sell and Buy Global Networks/ Merging Cultural Differences
  29. 29. Key Trends and Forces The Call for more Ethics and Social Responsibility Corporate ethics Environmental developments
  30. 30. Key Trends and Forces The new Marketing Landscape E-business B2C; B2B, C2C; C2B Websites Placing ads and building a profit model Customer Relationship Marketing (CRM)
  31. 31. End of Day 1 Thank you . . . . .