“Chapter 1: Introduction to Marketing”
Chartered Institute of Marketing
Marketing is the management process
responsible for identifying, anticipating, and
satisfying customers’ requirements profitably.’
American Marketing Association
-Marketing as “the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, etc.
o Creating- collaborating with suppliers and
customers to create offerings that have
value.
o Communicating- describing those offerings,
as well as learning from customers.
o Delivering- Getting those offerings to the
consumer in a way that optimizes value.
o Exchanging- Trading value for those
offerings.
Philip Kotler- Marketing deals with
identifying and meeting human and social
needs.
“3 Stages through which Marketing
Practice might pass”
Entrepreneurial marketing- individuals
who visualize an opportunity and knock on
every door to gain attention
Formulated marketing- As small
companies achieve success, move toward
more formulated marketing.
Intrepreneurial marketing- start living with
their customers and visualizing new ways
to add value to their customers’ lives.
▪ Kazuo Usui- Marketing is defined as "the
attempt to produce the desired response
by creating and offering values to the
market"
“MARKETING CONCEPT”
Production Concepts- more product to
produce the more money a company will
earn.
Product Concepts- Qualities and
performances of the product.
Selling Concepts- Pushing their product to
sold thru aggressive tactics and heavy
advertisements.
Marketing Concepts- Effort to combat
competitor is what matters.
Societal Marketing Concepts- The focus is
the welfare of the society as a whole.
Relationship Marketing Concepts-Building
customer relationship matters the most.
“Three characters play different role in the
marketing transaction:
Profit Companies-offer solutions to
consumer problems
Non-Profit Organization- Red Cross as they
advertise blood donation can save lives of
people.
Individuals- The graduate then sell herself
by showing credentials using marketing
communication.
“TYPES OF OFFERINGS”
ACCORDING TO KAZMI AND PANDA
Goods- companies produced to satisfy
customers.
Intangible Services- offers that a customer
cannot physically see.
 Places- A good place gives a business the
success to attract more customer.
Persons- Celebrity marketing became one of
the top chosen way to communicate product to
customers.
Events- promote products and services in
different events where they can be seen
repeatedly.
Corporate Organization- Organizations makes
everything favourable for their image and
reputation.
Information- The information are disseminated
for the benefit of customers.
Ideas- converted to become product and
services to satisfy the needs and wants of the
customers.
“The Extended Marketing Mix”
1. Product- Goods and services.
2. Promotion- Communication.
3. Place- Getting the product to a point at which
the customer can purchase it.
4. Price- The monetary amount charged for the
product.
5. People- Anyone within and outside the
organization that greatly influence product and
services.
6. Physical Evidence- merchandising and
display that contributes to the convenience and components that are apart of regulatory
visual impact of products.
7. Process- The actual procedures and
mechanisms involved in the delivery of a
product.
“Chapter 2: The Marketing Environment”
Internal Environment- the process within
the company.
1. Value System- consists of all those
frameworks, such as culture, climate, work
processes, management practices and norms of
the organization.
2. Vision, Mission and Objectives- the
company vision describes its future position,
mission defines company’s business and the
reason for its existence and objectives implies
the ultimate aim of the company and the ways
to reach those ends.
3. Organizational Structure- These activities
include the delegation of the task, coordination,
the composition of the board of directors, level
of professionalization, and supervision.
4. Corporate Culture- refers to the values,
beliefs and behavior of the organization that
ascertains the way in which employees and
management communicate and manage the
external affairs.
5. Human Resources- most valuable asset of the
organization, as the success or failure of an
organization highly depends on the human
resources.
6. Physical Resources and Technological
Capabilities- Physical resources refers to the
tangible assets of the organization. Technological
capabilities imply the technical know-how of the
organization.
Environmental Scanning- The process of
collecting information about forces in the
marketing environment.
Environmental Analysis- Process of accessing
and interpreting the information gathered
through environmental scanning. By
evaluating the information, the manager
should be able to identify potential threats and
opportunities linked to environmental changes
“Six Forces of Marketing Environment”
(EXTERNAL ENVIRONMENT)
1. Competitive Forces- Competition, other firms
that market products that are similar to
or can be substituted for its products in the
same geographic area.
Competitors can be classified into four types:
o Brand Competitors- market product with
similar features and benefits to the same
customer at similar prices.
o Product Competition- compete in the same
product class but the market products with
different features, benefits and prices
o Total Budget Competitors- firms that
compete for the limited resources of the
same customer. Example: instead of Diet
coke, he or she will buy bottled water.
o Monopoly- exist when an organization
offers a product that has no close
substitutes, making that organization the
sole source of supply.
2. Economic Forces- Influence marketers and
customers’ decisions and activities alike and
the effects of buying power and willingness to
spend as well as general economic decisions.
o Disposable Income- used for spending or
saving.
o Discretionary Income- available for
spending and saving after an individual
purchased the basic necessities.
3. Political Forces- Political, legal and
regulatory forces of the marketing environment
are closely interrelated.
4. Legal and Regulatory Forces- Government,
state, and local bodies can set rules or
restrictions on the conduct of businesses. The
purpose of regulation is to protect both
consumers and businesses.
5. Technological Forces- The word technology
brings to mind scientific advances such as
electric vehicles, smartphones etc. Such
development make it possible for marketers to
operate more efficiently and provide an
exciting array of products for consumers.
6.Sociocultural Forces- Influences the society
and its culture that brings out changes in
attitudes, beliefs, norms, customs and lifestyles
Profoundly affecting how people live, these
forces help to determine what, where, how,
when people buy products.
 “Chapter 3: Consumer Buying Behavior” o Social Surroundings- include o Attitudes- individual’s enduring evaluation
Consumer Buying Decision Process characteristics and interactions of others of feelings about and behavioral tendencies
1. Problem Recognition- It is possible that a who are present during a purchase toward an object or idea.
person has a problem or need but is unaware of it decision, such as friends, relatives. o Personality- a set of internal traits and
until marketers point it out. distinct behavioral tendencies that result in
o Time Dimensions- takes varying amounts
2. Information Search- After recognizing the consistent patterns of behavior in certain
of time to progress through the steps of the
problem or need, the buyer will decide whether or situations.
buying decision process, including
not pursue satisfying the need. o Self-concept- consumers who feel insecure
learning about, searching for, purchasing
3. Evaluation of Alternatives- Consumer assign a about their self-concept may purchase
and using a product.
greater value to a brand they have heard of than to products that they believe will help bolster
o Buyers Mood and Condition- moods can
one they have not. the qualitites they would like to project.
also significantly influence consumers post
4. Purchase- The consumer chooses to buy the o Lifestyles- an individual’s pattern of living
purchase evaluation.
product or brand yielded by the evaluation of expressed through activities, interests and
Alternatives. opinions.
Psychological Influences
5. Post Purchase Evaluation- The buyer evaluates
o Perception- the process of selecting,
the product to ascertain if its actual performance Social Influences
organizing, and interpreting information
meets expected levels. o Roles- Example: a man may perform
inputs to produce meaning
the roles of son, husband, father,
o Motives- Example, the sensation of being
“Consumer Behavior” employee or employer.
cold is a strong motivator on the decision to
Situational Influences o Family- have a direct impact on the
purchase a new jacket making the feeling
o Physical Surroundings- includes location, consumer buying decision process,
more urgent in the rainy season.
store atmosphere, scents and other factors in parents teach their children how to cope
o Learning- refers to changes in a person
the physical environment in which the with a variety of problems, including
thought processes and behavior caused by
decision making occurs. those that help them deal with purchase
information and experience.
decisions.
o Reference groups- a group that identifies with
so strongly that he or she identifies adopts the
values, attitudes and behaviour of group
members.
o Opinion leaders- group who provides
information about a specific topic to other
group members social class.
o Social classes- defined as a division of people
according social, economic status and
educational status.
o Culture- people who share the same values
based on a common experience or a similar
lifestyle in general.
o Subcultures- a group of individuals whose
characteristics, values, and behavioural
patterns are similar within the group and
different for those of people in the surrounding finished products and resell them for a profit.
culture.
o Society- is composed of several subcultures in
which people can identify. Subcultures are
groups of people who share the same values
based on a common experience or a similar
lifestyle in general.
“Chapter 4: Business Markets and Buying
Behavior”
Business Market- a business market which
is also as business-to-business or B2B
market consists of individuals,
organizations, or groups that purchase a
specific kind of product for one of three
purposes.
“Four Categories of Business Market”
1. Producer Markets- Individuals and business
organizations that purchase products to make
profits by using them to produce other products
or using them in their operations.
2. Reseller Markets- Consists of intermediaries,
such as wholesalers and retailers, which buy
3. Government Markets- These organizations
spend billions of peso annually for a wide
range of goods and services to support their
internal operations and provide citizens with
such products as highways, education, energy
and national defense.
4. Institutional Market- Comprise of
organizations with charitable, educational,
community or other non-business goals such as
church, schools etc.
“Dimensions of Business Customers and
Business Transaction”
1. Characteristics of Transaction with Business
Customers
o Large orders- Orders by business
customers tend to be much larger than
individual consumer sales.
o Expensive Items- Suppliers of large,
expensive, or complex goods often must
sell products in large quantities to make
profits.
o Extended Negotiations- discussion and
negotiations associated with business
purchases can require considerable
marketing time and selling efforts.
o Reciprocity- an arrangement in which two
organizations agree to buy from one
another.
2. Attributes of Business Customers
o Detailed Information- Business customers also
differ from consumers in their purchasing
behavior because they are generally better
informed about the products they purchase.
o Technical Specifications- they demand
information about a product’s functional
features and technical specifications to ensure
that it meets their needs.
o Partnership- suppliers and their customers
build and maintain mutually beneficial
relationships.
3.Primary Concerns of Business Customers- Price,
Quality, Service, Supplier Relationship.
4. Methods of Buying
o Description- the most straightforward, when
products are standardized and graded
according to characteristics such as size,
shape, a business may be able to purchase
simply by specifying quantity, grade, and
other attributes.
o Inspection- Business buyers of such product
must base purchase decisions on Inspection.
o Sampling- entails evaluating a portion of
the product on the assumption that its
characteristic represents the entire lot, this
method is appropriate when the product is
homogeneous like grain.
o Negotiation- buyers describe exactly what
they need and ask sellers to submit bids.
They then negotiate with the suppliers that
submit the most attractive bids.
5. Types of Business Purchase
o New Task Purchase- an organization makes
an initial purchase of an item to be used to
perform a new job or solve a new problem.
o Straight Rebuy Purchase- occurs when
buyer purchase the same products routinely
under approximately the same terms of sale
o Modified Rebuy Purchase- a new task
purchase is altered after two or three orders
or requirements associated with a straight
rebuy purchase are modified.
“Demands For Business Product’
1. Derived Demand- business customers,
especially producers, buy products for direct or
indirect use in the production of goods and
services to satisfy consumer’s needs,
2. Inelastic demand- a price increase or
decrease does not significantly alter demand for
a business product.
3. Joint Demand- demand involving the use of
two or more items in combination to produce a
product.
4. Fluctuating Demand- a decline in demand
for certain consumer goods reduces demand for
business products used to produce those goods.
Business Buying Decision- refers to the
purchase behavior of producer government
units, institutions, and resellers.
The Buying Center- group of people within
the organization who make business
purchase decisions.
o Users- who will actually use the product,
they frequently initiate the purchase process
and /or generate purchase specifications
o Influencers- often technical personnel, such
as engineers, who help develop product
specifications and evaluate alternatives.
o Buyer- select suppliers and negotiate terms of
purchase, they may also be involved in
developing specifications.
o Decider- choose the product.
o Gatekeepers- such as secretaries and technical
personnel, control the flow of information to
and among the different roles in the buying
centre.