POM MODULE 1 REVIEWER ● Prospects — potential customers ● Extended Users — still use the product
or service
“Never enter unfamiliar terrain.” — Socorro STP ● New Usage — purpose of the product
Ramos | Founder NBS ● Segmentation, Targeting, Positioning or service used
● More Usage — occasions where and
Marketing is managing profitable customer Many things can be marketed when the product is used
relationships ● Goods — tangible
● attracting new customers ● Services — intangible Core Marketing Concepts
● retaining and growing current customers ● Experiences — attending concerts, etc. ● Wants — determining dimensions
Marketing is not synonymous with sales or ● Events — organizing, hosting, etc. among many choices | motivating
advertising. ● Persons — celebrities, personalities, attribute.
● Selling is only the tip of an iceberg. politicians ● Expectations — values or intangibles
● marketing (general) ≠ sales ≠ ● Places — leisure experiences associated with a product of service |
advertising ● Properties — investment, land part of wants.
Marketing is to make selling superfluous. — ● Organizations — non-profit charity ● Needs — basic reason, minimum
Peter Drucker ● Information — private sectors requirements | qualifying or
Marketing is a social and managerial process ● Ideas gatekeeper dimension in purchase.
through creating and exchanging products and (physical, social, and individual)
values with others. — Philip Kotler Who markets? Marketers and Prospects
● Marketer — someone who seeks Maslow’s Hierarchy of Needs (Bottom to Top
Marketing Management — the art and science response, attention. of Triangle)
of choosing target markets. ● Prospects — a purchase, a vote, a 1. Physiological Needs — food, water,
● Creating, delivering, and donation from another party. warmth, rest
communicating superior customer If two parties are seeking to sell something to 2. Safety Needs — security, safety
value is key. each other, we call them both marketers. Basic Needs — Physiological and Safety
Customer Management — marketers select ● Two interacting components of 3. Belongingness & Love Needs —
customers that can be served well and marketing: Company — Market intimate relationship, friends
profitably. ● Two components of a market: 4. Esteem Needs — prestige, feeling of
Demand Management — marketers must deal Consumer — Competition accomplishment
with different demands stated ranging from no Psychological Needs — Belongingness & Love
demand to too much demand. The Strategic 3Cs Concept and Esteem
● Customers — sales | better than before 5. Self-Actualization — achieving one’s
Market ● Company — profit | better than full potential, including creative activities
● in marketing, buyers only. expected Self-fulfillment Needs — Self-Actualization
● in economics, the buyers and sellers ● Competition — market share | better
Target Market — homogenous group which has than others FAB Selling Technique
similar likes and common interests. Provide a standard for judging marketing 1. Features — product attributes | proof of
● Customer — buys, uses or not the effectiveness. a benefit | advertising agencies call
product ● Called the Key Results Area these reasons why?
● Consumer — buys or not, uses the 2. Advantages — features can do
product 4Us of Marketing 3. Benefits — advantages that meet the
● Client — services (intangible) ● New Users — uses the product or explicit needs and wants | favorable
● Clientele — plural form of client service results | what’s in it for me?
● Demand
Approaches to Marketing ○ Shopping Products — less b. Price Lining —
1. Traditional Marketing frequently bought goods c. Limited-Time Sales
2. Contemporary Marketing ○ Specialty Products — luxury d. Buy One Get One
goods a customer willing to buy Cost-Plus Pricing Formula
Goals of Marketing ○ Unsought Products — [(Overhead Cost + Direct Material + Direct
a. Awareness unknown/unwilling to buy goods Labor)/Number of Units] × 1 + Markup
b. Availability ● Industrial Product — bought for further Percentage
c. Trial processing or for use in conducting a
d. Repeat Purchase business PLACE — make the product conveniently
Types of Industrial Products available
Marketing Management | Management ● Materials and Parts Three Major Market Customer Categories
Orientations ● Capital Items 1. B2B | Business to Business — selling
1. Production Concept — internal ● Supplies & Business Service to business
capabilities (manpower, machines, Levels of Product | Kotler 2. B2C | Business to Customers —
money, equipment) a. Core Benefit — fundamental level | selling to customers
2. Product Concept — innovation, quality service/product the customer really 3. B2G | Business to Government —
of the product, KAIZEN buying selling to government
3. Selling Concept — aggressive sales ● basic product Types of Distribution Strategies
technique, salesperson, sales method b. Basic Product | Generic Product — a. Intensive Distribution
4. Marketing Concept — company + what specifically the product is b. Selective Distribution
customer ● basic features c. Exclusive Distribution
5. Societal-Marketing Concept — c. Expected Product — set of d. Direct Distributions
company + customer + society attributes/conditions buyers normally
expect PROMOTION — consumer demand
Marketing Mix | 4Ps ● expected features Promotion Mix
Product — satisfy d. Augmented Product — features go a. Advertising — effectively inform,
Price — affordable beyond customer expectations | persuade, and remind the target market
Place — available differentiate from competitors b. Public Relations — offer a positive
Promotion — consumer demands ● luxury features image of the company and the brand
e. Potential Product — all the impossible c. Sales Promotion — convince the
PRODUCT — to satisfy a need or want. augmentations and transformations customers to buy immediately
Types of Product ● unexpected features d. Selling — to get the customers buy
a. Durable — they last a long time
b. Non-durable — they last a short time PRICE — reflect the value of the benefits Mang Inasal | 2003 | Edgar Injap Sia
c. Services — a tire is good | changing the provided Potato Corner | Jose Magsaysay Jr.
tire is a service BibingKinitan | Richard V. Sanz
Perceived
Classification of Products
Value
● Consumer Product — product bought The No. 1 Rule in Marketing
Value-Based
by final customers for personal ● You don’t try to serve everybody.
Markup
consumption
Cost-Plus
Types of Consumer Products Strategic Planning — developing and
Cost
| Consumer Goods maintaining a strategic fit between the org’s
○ Convenience Products — Psychological Pricing Strategies goals and capabilities & its changing marketing
frequently bought goods a. Odd-Even Pricing — e.g. $199.99 opportunities.
● Strategic Planning — general concept Strategic Planning | Product/Market E-Commerce Domains | E-Marketing
● Tactical Planning — specific approach Expansion Grid Domains
(uses 4Ps)
Existing New Targeted to Targeted to
Products Products customers businesses
Business Portfolio — combination of various
products, services, & business units that makes
Existing Market Product Initiated by B2B B2B
up a business.
Markets Penetration Developmen businesses
● Each unit within the portfolio can be
t
treated as an asset.
Initiated by C2C C2B
Examples
New Markets Market Diversificati consumers
1. JFC | Jollibee Foods Corporation |
Developmen on
Tony Tan Ciaktong
t
Jollibee, Mang-Inasal, Red Ribbon, Key Environments
Greenwich, Burger King Phil., Seattles 1. Marketing Environment — actors &
Best, Coffee Bean & Latte, Highlands a. Market Penetration — existing forces that affects a firm’s ability to build
Coffee markets, existing products & maintain successful relationships w/
2. Golden ABC Corporation | Bernie Liu b. Product Development — existing customers
Oxygen, Penshoppe, Regatta, Forme, markets, new products Aspects of Marketing Environment
Memo, Tyler and Red Logo c. Market Development — new markets, ● microenvironment | internal
existing products ● macroenvironment | external
Strategic Planning | Boston Consulting d. Diversification — new markets, new
Group Growth-Share Matrix products The Microenvironment
Actors affecting a firm’s ability to serve
High Market Stars Question
Major Forces Shaping the Digital Age customers
Growth Marks
1. Digitalization & Connectivity — flow of
Problem Company Competitors
digital info requires connectivity |
Child
intranets, extranets, and the internet
Suppliers Publics
2. The Internet Explosion — key driver of
Low Market Cash Cows Gods
the new economy
Growth Customer Marketing
Marketing Strategy in the Digital Age
High Relative Low Relative Markets Intermediaries
1. E-business — use electronic means &
Market Share Market Share
platforms to conduct business
2. E-commerce — facilitates the sale of The Macroenvironment
products & services by electronic means Macro environmental forces
3. E-marketing — efforts that inform,
Demographic Technological
communicate, promote, and sell
products & services over the internet
Economic Political
E-commerce — buying & selling online |
benefits both buyers and sellers
Natural Cultural
E-business — encompasses all business
conducted online.
SWOT or SWOC ANALYSIS SWOT Analysis | Marketing Campaign
— Strengths, Weaknesses, Opportunities,
Strengths Weaknesses
Threats/Challenges
— framework used to evaluate a company’s
Almost 1k 5-star Limited advertising
competitive position & to develop strategic
reviews on Google. budget.
planning
Testimonial videos No experience with
What’s in a SWOT/SWOC Analysis?
from happy marketing
The good The customers. automation.
not-so-good
Great social media Outdate information
What we’ve Strengths Weaknesses presence on local listings.
got
What What abilities Opportunities Threats/Challenges
resources are we
can we lacking? Adopting marketing More competitors are
deploy? technology. entering the industry.
What are we
What are our starting to Leverage positive Customers are not
advantages? struggle? reviews for social using Facebook as
campaigns. much.
What’s How can we
working well? overcome Utilizing social listing Not enough time to
these? softwares market business.
What’s out Opportunitie Threats
there s SWOT Strengths Weaknesses
What Analysis
Who might headwinds
most value do we face? Opportunities Strategy So Strategy WO
our
strengths? Who might Threats or Strategy ST Strategy WT
challenge Challenges
What trends us?
work in our
favor? What could
go wrong?
What prices
are within
reach?
