This document discusses key marketing concepts including needs, wants, exchange, market, goods, and familiarity with marketing systems. It defines marketing as satisfying customer needs through the development, promotion, and distribution of products. It also discusses the marketing mix of product, price, place, and promotion and how organizations market products, services, and experiences.

2. Something that a
person must have to
live and survive
NEEDS

3. It occurs when the buyer
and seller trade something
of equal value that
satisfies their unmet
needs.
Exchange

4. It is composed of people
with both the desire and
ability to buy a product or
service.
Market

5. Items that satisfy
human wants and
provide utility.
Goods

6. Something that a
person desires to have.
Wants

7. Activity: Are you familiar?
 Let us now evaluate your familiarity with the operational
dimension of marketing or a marketing system that includes
the target market or buyer of the goods, marketing
organization considered as the producers of the product, and
lastly the product or services which are the things to be
marketed.
A. Identify the marketing organizations or the producers of the
following products.

8. MARKETING

9. What is marketing?
Marketing is the process of developing,
promoting, and distributing products to satisfy
customers’ needs and wants.

10. MARKETING
 It is a process that begins right at the
moment when an aspiring entrepreneur or
business development manager realizes
that there is an opportunity to build up a
business.
 It is also about communication. This
reflects the fact that selling a product is
really all about properly communicating
that product to the market and to the world

11. MARKETING digging it deeper
 On a broader scale, marketing is
all about changing behavior
through communication in order to
achieve objectives.
 Getting consumer to buy your
product maybe the most obvious
manifestation of a change in
behavior, but it is not the only

12. GOALS OF MARKETING
 Understand the market and its
consumers, and satisfy their changing
needs and wants.
 Introduce and innovate products and
services that improve human condition
and the quality of life.
 Design and implement effective
customer-driven marketing strategies.

13. GOALS OF MARKETING
 Develop marketing programs that
deliver superior value to consumers.
 Build and maintain mutually beneficial
and profitable customer relationship.
 Capture customer value to create
profits.
 Promote value transactions with full
regard to the well-being of societies.

14.  Marketing can also be about
changing costumer attitudes and
perceptions about your product, such
as getting the costumer to actually
like it in order to get them to
eventually buy it. It could be as
simple as making the market realize
that your product actually exists-
again, in order to get them to

15. THE MARKETING
PROCESS

16. The Situation
Analysis
• Micro-environment
• Macro-environment
• The Marker
• Customers
• Competition
• Strengths,
Weakness,
Opportunities, and
Threats
Marketing Mix
Decision
• Product
• Price
• Place
• Promotion
Implementation and
Control
• Implementation
• Monitoring
• Marketing Mix
Adjustments

17. The Marketing Mix
The marketing mix consists of four basic
marketing strategies known as the 4 P’s.
 Product
 Promotion
 Place
 Price

18. The 4 P’s of Marketing
explained
Product Promotion Place Price
1. Is there a
demand for
the product or
service?
2. How to make
the product
appeal to
consumer
3. Packaging—
includes the
design, color,
size, and
brand names
1. Making
customers
aware of a
product
2. Advertising
3. Coupons
4. Rebates
5. Sales
6. Free give
aways
7. Publicity
1. Distribution is
getting the
right product
to the right
place at the
right time in
the right
amount and in
the right
condition
2. Storage
3. Warehousing
4. Transporting
1. How much are
customers
willing to pay?
2. Is the price
competitive
with other
products?
3. Can the
company
make a profit?

19. The Marketing Mix – 4 P’s
 Activity: Fill-in My Empty Space!
Direction: Using the 4Ps of Marketing, fill in the
information about your favorite product, item, or
service that is currently on the market.

20. Group Activity: Turning the Old Into the
New!
Direction: Think of a product/service that
exists in the market and develop new
ways on how to improve the
product/service to prolong brand loyalty.
Your answer should be original and
APPLICATION PART

21. PRODUCTS, SERVICES,
AND EXPERIENCES

22. What do organizations market? As consumers,
we are most familiar with the marketing of goods
and services. Other than these, however,
marketing organizations also market
experiences, ideas, advocacies, and even
personalities.
MARKETING PRODUCTS
Products or goods are physically tangible items.
Such, they are generally perceivable by the
human senses and can, therefore, be inspected
prior to purchase.

23. MARKETING PRODUCTS
Products or goods are physically
tangible items. Such, they are
generally perceivable by the
human senses and can,
therefore, be inspected prior to
purchase.

24. Core or
Generic
Product
• Others
FORMAL PRODUCT
• Feature
s
• Styling
• Price
• Color
AUGMENTED PRODUCT
• Credit terms
• Installment
terms
• Installation
• Warranty
• Service
• Repairs and
Maintenance
• Other
s

25. Product levels
•All products have a core or
generic product, which houses
its core or generic function.
•A product’s core or generic
function can be defined as the
purpose for which the product
was created.

26. For example:
The core or generic function of a wristwatch would
be “to tell time.” On the other hand, for automobiles, it
would be “to transport.” 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, therefore, be difficult, if not possible, for a
marketer to convince consumers to prefer a brand of
wristwatch or automobile over another, if it were to be
marked solely on its ability to tell time or to transport.
Product differentiation would not be possible.

27. The situation necessitates the creation of a second
product level to be added on to the products core or
generic function. This level includes factors that could
effectively differentiate automobiles manufactured by
one company over those manufactured by others with
the same core or generic function. This second level is
called the formal product. Car manufacturers
incorporate unique styling into their automobile models,
utilize different hood and grill designs, uses various paint
colors, incorporate advanced features, and charge
varying selling prices, among others. All these are
undertaken with one objective in mind- to differentiate
their automobile from those manufactured by other
firms.

28. It would usually be sufficient for the formal
product of most marketing organizations
to successfully differentiate their product
offering from their competitors. However,
certain types of products/goods ,
particularly those that are very expensive
and have long service lives, require a third
level: the augmented product.

29. An Augmented product is necessary
in the case of products/goods such
as condominium units, motor
vehicles, and major household
appliances. Because of their relative
price, most customers may not have
immediate funds available for
purchase.

30. Therefore,, It becomes necessary to offer credit
or sometimes installment terms, allowing
customers to purchase these products at a
discount or spreading payment over months or
years. To protect their sizeable total payments,
customers also demand warranties to assure
them of the product’s durability. The lengthy
service life of a product may compel customers
to demand repair, maintenance, and service
facilitates.

31. Moreover, installation may be
expected for major household
appliances requiring complex
plumbing and/or wiring. When these
augmented features are in place,
most of the customers may be
willing to purchase these types of
products.

32. According to Use:
• Consumer goods
• Industrial goods
According to Differentiation:
• Undifferentiated Goods
• Differentiated Goods
According to Durability:
• Consumables
• Semi- Durables
• Durables
According to Type:
• Convenience goods
• Shopping goods
• Specialty goods
• Unsought goods
CLASSIFICATIONS OF
PRODUCTS/GOODS
PRODUCTS/GOOD
S

33. According to Use: Consumer goods and
Industrial goods
Consumer goods – are goods that are
purchased for personal consumption and/or for
household use.
Examples: instant noodles, biscuits, milk,
detergent soap, shampoo, and other similar
items.
Industrial goods- are purchased in order to
make other goods, to serve as a raw material
or input in the production of other goods.
Example: electronic cables and wires ( serve
as electrical conduits for home appliances)

34. According to Differentiation:
Undifferentiated and Differentiated
Goods
Undifferentiated- are products whose physical
characteristics are so identical, that it would be
difficult, if not impossible to distinguish one
purchased from one vendor or another. Most of this
goods are products that are sourced from nature.
Example: salt
Differentiated goods- are varied in their
characteristics and features that make them
distinguishable from one another.
Example: car

35. According to Durability: Consumable,
Semi- Durable, and Durable Goods
Consumable- is a product whose benefit can only
be used by a consumer for a short period of time,
sometimes only a few minutes.
Examples: detergents and toiletries
Semi-durables- provide benefit to the consumer
for a longer period of time, usually spanning
several months.
Examples: clothes, shoes, belt, jackets
Durables- are product that are manufactured to
last a long time.
Examples: automobiles, houses, home appliances,

36. According to Type: Convenience,
Shopping, Specialty, and Unsought
Goods
Convenience goods- are products that are
purchased frequently, are usually inexpensive, and
do not require much purchase effort and
evaluation.
Examples: newspapers, gum and candy
Shopping goods- are purchased less frequently
than convenience goods, are relatively more
expensive and require some amount of information
search and evaluation prior to purchase.
Examples: shoes, clothes, and handbags

37. According to Type: Convenience,
Shopping, Specialty, and Unsought Goods
Specialty goods- are goods that require an
unusually large effort on the part of the consumers
to acquire.
Examples: branded luxury merchandise, works of
art, automobiles and homes.
Unsought goods- are goods that consumers
seldom actively look for, and are usually purchased
for extraordinary reasons, such as fear or adversity,
rather than desire.
Examples: investments, memorial plans, and life

38. Marketing Services
Four Major Attributes:
 Intangibility
 services where there is no tangible
product that the customer can purchase,
that can be seen or touched.
 Variability
 expresses the notion that a service may
vary in standard or quality from one
provider to the next or from occasion to

39. Marketing Services
Four Major Attributes:
 Inseparability
 services are produced and consumed at
the same time and can’t be isolated from
their providers.
 Perishability
 used in marketing to describe the way in
which service capacity cannot be stored
for sale in the future.

40. Needs, Wants, and
Demands
• States of deprivation include
food, clothing, shelter
Needs
• Form that human needs take
as they are shaped by
culture and individual
personality
Wants
• Human wants backed by
buying power
Demands
Customer Needs, Wants, and Demands

41. Market and Market Demand
Market – defined as the group of
individual or organizational customers who
have both the willingness and financial
capability to purchase a particular product
or service.
 When a product’s or service’s selling price
is reduced, even if the number of
individuals willing to purchase remain
constant, the reduced price may increase
the number of individuals who can now

42. Market and Market Demand
 Market Demand – is the total demand of all
potential customers for a specific
product/service over a specific period in a
specific market area.

43. Measuring Market Demand
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.

44. Potential, Latent, and Current
Demand
Potential demand – emerges when there is no
demand yet for a particular product or service, but
there exists a market with sufficient financial
capability to purchase.
Latent demand – results when customers in a
market are unable to satisfy specific desires
because no products/services exist in the market
that can satisfy them.
Current demand – defined as the number of
people of a particular market at present that would
actually purchase the product or service offered.

45. Utility, Value, and Satisfaction
Utility – refers to the total satisfaction
consumers can receive from the
consumption of a product or service.
Value – refers to the value customers
place on a product or service.
Satisfaction – is the measure of how
well customer expectations from a
purchased product or service have
been met.

46. Customer Perceived Value
 It is the quantitative difference between
the expected benefits and costs of a
particular product or service in comparison
to a similar product or service.

47. Customer Value Proposition
 It is the comparison of the benefits offered
by a company’s products to its customers
in relation to the amount it is asking
customers to pay.

48. Competition
 Is any company in an industry or a
similar industry that offers a similar
product or service.
Levels of Competition
 Desire
 Generic
 Form
 Brand

49. The Concept of Market Share
 It measures the effectiveness of
marketing strategies in an industry.
 Expressed in percentage, is the
share of a company’s revenues
divided by the total revenues of its
industry in a particular year.