GROUP REPORT AND CASE PRESENTATION

MBA 103 Marketing Management

Group no. 4 September 22, 2018
Chapter 1: Defining Marketing for the New Realities

Members Topics Assigned Ratings

Faith Anne Z. Palolan
 Introduction to Marketing
 The Value of Marketing
 The Scope of Marketing
 Core Marketing Concepts
o Needs, Wants and Demands
o Target Market, Positioning
and Segmentation

Charisse Anne B. Tinio

 Core Marketing Concepts

o Offerings and Brands
o Marketing Channels
o Paid, Owned and Earned Media
o Impressions and Engagements
o Value and Satisfaction
o Supply Chain
o Competition
o Marketing Environment
 Marketing Balance
 Marketing Accountability
 Marketing in the Organization
Elmar Cyruz P. Peralta
 The New Marketing Realities
 Insights: Getting to Marketing
 A Dramatically Changed Marketplace
o New Consumer Capabilities
o New Company Capabilities
o Changing Channels
o Heightened Competition

Ysalou Joy B. Reyes

 The Production Concept
 The Product Concept
 The Selling Concept
 The Marketing Concept
 The Holistic Marketing Concept
 Updating the 4 P’s of Marketing

Viellianiña Jhoy Sumera

 4 A’s of Marketing
 Marketing Management Tasks
 Creating Value
 Delivering Value
 Communication Value
 Conducting Marketing Responsibility
for Long Term Success

Group Leader 4 Faith Anne Z. Palolan

MBA 103 MARKETING MANAGEMENT
Name: Ysalou Joy B. Reyes
Group no. 4
Chapter 1: Defining Marketing for the New Realities September 22, 2018
Topics:
 The Production Concept
 The Product Concept
 The Selling Concept
 The Marketing Concept
 The Holistic Marketing Concept
 Updating the 4 P’s of Marketing
MBA 103 MARKETING MANAGEMENT
Name: Elmar Cyruz P. Peralta
Group no. 4
Chapter 1: Defining Marketing for the New Realities September 22, 2018
Topics:
 The New Marketing Realities
 Insights: Getting to Marketing
 A Dramatically Changed Marketplace
o New Consumer Capabilities
o New Company Capabilities
o Changing Channels
o Heightened Competition
MBA 103 MARKETING MANAGEMENT
Name: Viellianiña Jhoy Sumera
Group no. 4
Chapter 1: Defining Marketing for the New Realities September 22, 2018
Topics:
 4 A’s of MArketing
 Marketing Management Tasks
 Creating Value
 Delivering Value
 Communication Value
 Conducting Marketing Responsibility for Long Term Success
MBA 103 MARKETING MANAGEMENT
Name: Charisse Anne B. Tinio
Group no. 4
Chapter 1: Defining Marketing for the New Realities September 22, 2018
Topics:
 Core Marketing Concepts
o Offerings and Brands
o Marketing Channels
o Paid, Owned and Earned Media
o Impressions and Engagements
o Value and Satisfaction
o Supply Chain
o Competition
o Marketing Environment
 Marketing Balance
 Marketing Accountability
 Marketing in the Organization
MBA 103 MARKETING MANAGEMENT
Name: Faith Anne Z. Palolan
Group no. 4
Chapter 1: Defining Marketing for the New Realities September 22, 2018
Topics:
 Introduction to Marketing
 The Value of Marketing
 The Scope of Marketing
 Core Marketing Concepts
o Needs, Wants and Demands
o Target Market, Positioning and Segmentation
Chapter 1
Defining Marketing for the New Realities

This chapter introduces what marketing is, the key concepts and its role in marketing in
doing business in today's changing world. The chapter also looks at the new realities that have
changed the marketing landscape. Technology, globalization and social responsibility are three
forces that have equipped both consumers and companies with new capabilities.

In our daily life, we are experiencing marketing, both formally and informally, people and
organization engage in a vast number of activities we can call marketing. In the face of digital
revolution and other major changes in the business environment, good marketing today is both
increasingly vital and radically new. Good marketing is no accident. It is both an art and a science,
and it results from careful planning and execution using state of the art tools and techniques.

The Value of Marketing

Marketing is considered as the lifeblood of a business. The different functions of a business,

accounting, finance, operations and others won't really matter if there is no sufficient demand for
products and services as to a firm can make a profit. Thus financial success depends on marketing
ability. Marketing's value extends to society as a whole. It also;

 Introduce new products in the market

 Increase the sales of existing products
 Reduce the cost of sales and distribution
 Expand the market

Marketing Decision Making

Marketing is very vital on deciding matters towards the company. All other functions of
the business must consider the facts that resulted in marketing of the products or services. For
example, the operation function must decide on how the production will flow based on the
estimated demand for a product or services. Accounting and finance also sets the budget for their
company so it should always rely on marketing. CEOs recognize that marketing builds strong
brands and a loyal customer base, intangible assets that contribute heavily to the value of the firm.
Many firms, even services and nonprofit, now have a chief marketing officer to put marketing on
a more equal footing with other C-level executives.

Winning Marketing

Marketing is a never-ending pursuit, but some business are adapting and thriving in these
changing times. Finding the right marketing strategies to use has always been challenging for
businesses. The growing number of marketing channels available today makes it even more
difficult to find the best marketing methods to build your business. So what is the best marketing
strategy to use today? Unfortunately, there is no one push-button marketing idea that will send a
steady stream of customers to your business. Whether selling products or services, business must
use multiple marketing strategies to attract and keep customers.

Take a look on how Dairy Queen, an ice cream shop that has branches globally, increase
sales with their marketing campaign "upside down or free." For several years before 2015, the
company has a steady phase on its revenue. But when they took the initiative to further invest with
their research and marketing, they continuously rose their sales because of the said campaign.

Takeaways on how to successfully market your product by Barry Westrum, executive vice
president of marketing, American Dairy Queen Corp.:
 Find your North Star
 FANnovation must become part of the culture
 Leverage your strengths
 Don’t be afraid to tackle your biggest brand barriers
 Think and act 75 years young
 The total fan experience
The Scope of Marketing

Being a marketer, you need to understand what marketing is, how it works, who does it,
and what is marketed.

What is marketing?

There are many definitions of marketing if you will use it on different aspects. But it is
definitely considered as the lifeblood of business. The simple definition of marketing in today’s
world is that, marketing is the action or business of promoting and selling products or services. It
is about identifying and meeting human and social needs. One of the shortest good definition of
marketing is “meeting needs profitably.”

A social definition of marketing shows the role it is playing in the society; for example,
one marketer has said that marketing role is to “deliver higher standard of living.” Another
definition of marketing is that, it is a societal process by which individual and groups obtain what
they need and want through creating, offering and freely exchanging products and services of value
with others. People always think of marketing as “the art of selling products,” but many people are
surprised when they hear that selling is not the most important part of selling. Selling is only the
tip of marketing iceberg.

Marketing is all about making your brand more visible to a wider audience. For decades,
it referred to a series of intensive, action-based, outbound tactics designed to grab new consumers’
attentions. Advertising was almost synonymous with marketing, and marketers constantly
searched for new ways to go out and grab new customers.

Many of these tactics, such as direct mail marketing, TV ads, and radio spots can still be
effective, but the best marketing strategy today isn’t even really marketing at all. Instead of
focusing on reaching out to buyers, it’s about letting buyers come to you, while maximizing their
ability to do so—a reversal of the natural order that both brands and consumers can find acceptable.
What is Marketed?

Marketing is typically seen as the task of creating, promoting and delivering goods and
services to consumers and businesses. In fact, marketing involves ten types of entities: goods,
services, experiences, events, persons, places, properties, organization, information and ideas.

1. Goods:
Physical goods constitute the bulk of most countries’ production and marketing effort.
Examples are: refrigerators, television sets, food products, machines etc.

2. Services:
As economies advance, a growing proportion of their activities is focused on the production
of services. Examples are: services include the work of airlines, hotels, car rental firms, barbers,
beauticians etc. and professionals such as, Accountants, bankers, lawyers, engineers, doctors etc.

3. Experiences:
By orchestrating several services and goods, a firm create, stage and market experiences.
For examples: travels, climbing Mount Everest etc.

4. Events:
Marketers promote time-based events, such as trade-shows, artistic performance, Asian
Games, Sport-events etc.

5. Persons:
Celebrity marketing is a major business. To-day, every major film star has an agent, a
personal manager and ties to a public relations agency. For Examples, artists, musicians, physician
etc.
6. Places:
Cities, states, regions and whole nations compete actively to attract tourists, factories,
company headquarters and new residents. Further examples: commercial banks, local business
associations, real estate agents, Economic development specialists etc.

7. Properties:
Properties are intangible rights of ownership of either real property (real estate) or financial
property (stocks, bonds etc.). Properties are bought and sold, and this requires marketing.

8. Organizations:
Organizations actively work to build a strong, favorable and unique image in the minds of
their target publics. Universities, museums, performing arts organizations and non-profits all use
marketing to boost their public images and to compete for audiences and funds.

9. Information:
Information can be produced and marketed as a product. This is essentially what schools
and universities produce and distribute at a price to parents, students and communities. For
examples, magazines, encyclopedias, news-papers etc. supply information.

10. Ideas:
Every market offering includes a basic idea. “In the factory, we make cosmetics; in the
store we sell hope.” Social marketers are busy in promoting such ideas.

Who Markets?

MARKETERS AND PROSPECTS

A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—
from another party, called the prospect. If two parties are seeking to sell something to each other,
we call them both marketers. Marketers are skilled at stimulating demand for their products, but
that’s a limited view of what they do. Just as production and logistics professionals are responsible
for supply management, marketers are responsible for demand management. They seek to
influence the level, timing, and composition of demand to meet the organization’s objectives. Eight
demand states are possible:

1. Negative demand—Consumers dislike the product and may even pay to avoid it.
2. Nonexistent demand—Consumers may be unaware of or uninterested in the product.
3. Latent demand—Consumers may share a strong need that cannot be satisfied by an existing
product.
4. Declining demand—Consumers begin to buy the product less frequently or not at all.
5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even
hourly basis.
6. Full demand—Consumers are adequately buying all products put into the marketplace.
7. Overfull demand—More consumers would like to buy the product than can be satisfied.
8. Unwholesome demand—Consumers may be attracted to products that have undesirable social
consequences.

In each case, marketers must identify the underlying cause(s) of the demand state and determine a
plan of action to shift demand to a more desired state.

MARKETS

Traditionally, a “market” was a physical place where buyers and sellers gathered to buy
and sell goods. Economists describe a market as a collection of buyers and sellers who transact
over a particular product or product class. A market is defined as the sum total of all the buyers
and sellers in the area or region under consideration.
Structure of Flows in a Modern Exchange Economy

Five basic markets and their connecting flows are shown on the illustration above.
Manufacturers go to resource markets (raw material markets, labor markets, money ,markets), buy
resources and turn them into goods and services, and sell finished products into their
intermediaries, who sell them to consumers. Consumer sell their labor and receive money with
which they pay for goods and services. The government collects tax revenues to buy goods from
resource, manufacturer, and intermediary markets and uses these goods and services to provide
public services. Each nation’s economy, and global economy, consists of interacting sets of
processes linked through exchange processes.

Simple marketing system

Another figure shows the relationship between the industry and the market. Sellers and
buyers are connected by four flows. Sellers send goods and services and communications such as
ads and direct mail to the market; in return they receive money and information such as customer
attitudes and sales data. The inner loop shows an exchange of money for goods and services; the
outer loop shows an exchange of information.
Key customer markets

1. Consumer markets – companies selling mass consumer goods and services such as soft drinks;
much of a brand’s strength depends on developing a superior product and packaging, ensuring its
availability, and backing it with engaging communications and reliable service

2. Business markets – business marketers must demonstrate how their products will help business
buyers achieve higher revenue or lower costs

3. Global markets – marketers must decide which countries to enter; how to enter each country;
how to adapt their product and service features to each country; how to price their products in
different countries; how to adapt their communications to fit different cultures

4. Nonprofit and governmental markets – nonprofit organizations have limited purchasing power;
and government purchasing calls for bids.

Core Concepts

1. Needs, wants and demands

Needs are the basic human requirements, such as foods. These needs become wants when
they are directed to specific objects that might satisfy the need, e.g., an American needs food but
want a hamburger
Demands are wants for specific products backed by an ability to pay. Companies must
measure not only how many people want their product but also how many would actually be wiling
and able to buy it. Marketers do not create needs: needs preexist marketers; marketers influence
wants. Marketers might promote the idea that a Mercedes would satisfy a person’s need for social
status; but they do not create the need for social status.
Five types of needs:
Assuming that a customer is going to buy a car, these are the types of needs that corresponds on
buying a car.
1. Stated needs – the customer wants an inexpensive car
2. Real needs – the customer wants a car whose operating cost is low
3. Unstated needs – the customer expects good service from the dealer
4. Delight needs – the customer would like the dealer to include an onboard navigation system
4. Secret needs – the customer wants to be seen by friends as a savvy consumer
simply giving customers what they want isn’t enough any more – to gain an edge companies must
help customers learn what they want

Target market, positioning, and segmentation

Marketers start by dividing up the market into segments they identify and profile distinct
groups of buyers who might prefer or require varying product and services mixes by examining
demographic, psychographic, and behavioral differences among buyers. The marketers then
decides which segments present the greatest opportunity – target markets for each chosen target
market, the firm develops a market offering; the offering is positioned in the minds of the target
buyers as delivering some central benefits.