Marketing

- The activity, set of instructions, and processes

for creating, communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners and society at large.

Maslow’s Hierarchy of Needs

Marketing Mix
³ Target market
o Product
§ Physical Good
§ Service
§ Features
§ Benefits
Types of Goods § Quality level
1. Consumer Goods § Accessories
a. Convenience § Installation
§ products a consumer needs but isn’t § Instructions
willing to spend much time or effort § Warranty
shopping it. § Product lines
1. Staples § Packaging
o products bought routinely § Branding
2. Impulse o Place
o bought quickly, as unplanned § Objectives
b. Shopping § Channel types
§ customer feels are worth the time and § Market Exposure
effort to compare with competing product § Kinds of intermediaries
1. Homogeneous § Kinds of locations and stores
o consumer sees basically the same and § How to handle transporting and
price sensitivity is high storing
2. Heterogenous § Service levels
o items the customer sees differently and § Recruiting intermediaries
wants to inspect for quality. § Managing Channels
c. Specialty o Promotion
§ Products that consumer really wants and § Objectives
makes a special effort to find § Promotion blend
d. Unsought § Sales people
§ Products consumers don’t yet want or • Kind
know they can buy • Number
e. Luxury • Selection
§ products that are not essential but highly • Training
desired and associated with wealthy and • Motivation
affluent people. § Advertising
2. Services • Targets
3. Business Goods • Kinds of Ads
4. Ideas • Media type
5. Organization • Copyrights
6. People § Publicity
7. Advocacy § Sales promotion
8. Events o Price
§ Objectives
§ Flexibility
§ Level over product life cycle
§ Geographic terms
 § Discounts Allowances

Segmenting Dimensions
³ Behavioral
³ Geographic
³ Demographic
³ Ethnicity
External Marketing Audit
³ Macroenvironment Analysis
o Trends and changes that have impact
on general business environment
1. Economy
2. Socio-Political
3. Technology
4. Nature
³ Industry Analysis
o Size and potential of industry
stakeholders
1. Industry identification
2. Industry Size and Growth (3 years)
3. Industry analysis using Framework
³ Market Situation
o Source of your growth and profit: where,
what, who and how
1. Market population size and territory
2. Demographic and Psychographic profile
3. Consumption and spending patterns
4. Projected Growth
5. Secondary Market

Product
- Means the need-satisfying offering of a firm
- Product as potential customer satisfaction or
benefits is important
- Satisfaction may require a “total” product
offering that is really a combination of excellent
service, a physical good with the right features,
useful instructions, a convenient package, a
trustworthy warranty, and a familiar name that
has satisfied the consumer in the past
Quality
- Product’s ability to satisfy a customer’s needs or
requirements
- Focuses on the consumer and they think a
product will fit some purpose
- Good = physical thing = can be seen and touch
o Tangible item
- Services
o Intangible
o Experienced, used or consumed
Product assortment
- Set of all product lines and individual products
that a firm sells
Product line
- A set of individual products that are closely
related
- Seller may see the products in a line as related
because theyre produced or operate in a similar
way
- Sold through the same types of outlets, or priced
at about the same level
Branding
- The use of a name, term, symbol or design to
identify a product

- Brand names, trademarks and other means of

product identification
Trademark
- Includes only words, symbols or marks that are
legally registered for the use of a company
Service Mark
- Refers to service offering

*some firms prefer to acquire established brands

(franchise) rather than to build their own

Brand Equity
- The value of a brand’s overall strength in the
market
Packaging
- Involves promoting, protecting and enhancing
the product
- Makes the product more convenient to use
- Good packaging makes the products easier to
identify and promotes the brand at the point of
purchase and even in use

Warranty
- Explains what the seller promises about its
product
- Marketing manager should decide whether to
offer a specific warranty
- Covered by the legal environment
Market Introduction
- sales are low as a new idea is first introduced to Place
a market. Customers aren’t looking for the - Making goods and services available in the right
product quantities and locations, when customers want
Market Growth them
- industry sales grow fast- but industry profits rise - Arrangements can dramatically change the
and then start falling competition in a product-market
- innovator begins to make big profits as more Channel of distribution
and more customers buy - Any series of firms or individuals who participate
- competitors see opportunity so they enter the in the flow of products from producer to final
market user or consumer
Market maturity
- occurs when industry sales level off and
competition gets tougher
- aggressive competitors have entered race for
profits
- industry profits go down throughout the market
maturity stage because promotion costs rise and
some competitors cut prices to attract business
Sales Decline
- new products replace the old
- Price competition from dying products becomes
more vigorous
- Firms with strong brands make profits until the
end

Direct marketing
- Direct communication between a seller and an
individual customer using a promotion method
other than face-to-face personal selling
- Coupled w direct distribution from a producer to
consumers

Discrepancy of quantity
- Difference between the quantity of products
- Economical for a producer to make and the
quantity final users or consumers normally want
Discrepancy of assortment
- The difference between the lines a typical
producer makes and the assortment final
consumers/users want

*sales is a function marketing

Sales = f( marketing)
Sales – COSTS = -profits
Sales – costs = profits (break even)
SALES – costs = +C

Cost cutting measures

- Lessen packaging and order cheaper raw
materials and labor

Pricing according to mind

³ Physical presentation of the number
1. Psychological pricing – buy1take1
2. Odd-even pricing (odd is always lower
in the mind) – 99.9
3. Reference pricing

Market-skimming pricing
- Setting a high price for a new product to skim
maximum revenues layer by layer from
segments willing to pay the high price
Market-penetration pricing
- Setting a low price for a new product in order to
attract a large number of buyers and a large
market share

Higher price, Lower Sales, Lower Production, Higher

profit maximization
And vice versa!

Opposite of market penetration (refer to aforementioned

arrows)
 -radios, billboards, posters

Below the line

-Online, free tastes, cards, phone

Through the line

- Influencers, social media, events

Advertising
- A form of marketing communications used to
encourage, persuade or manipulate an audience
to take or continue to take some action
Direct Marketing
- Direct communication between a seller and an
individual customer using a promotion method
other face-to-face personal selling
Personal Selling
- Person right in front selling
Sales promotion (Consumer)
Trade Promotions
Public relations
- Professional maintenance of a favorable public
image by a company or other organizations
- Discipline in itself
- Free, no money involved

Events
- Tool of promotions used by companies and
individuals as a communication tool from
product launches to press conferences
Advocacy
- Promotions tool by an individual or a group
which aims to influence public policy and
resource allocation discussions within political,
economic and social systems and institutions

Above the line