MM 10
MARKET- the place where buyers and seller
gather to exchange their goods.
-is the set of actual potential buyer of products
-where buyer shares particular need or want
that can be satisfied through exchange
-A converging point where buyers and sellers
gather to exchange their goods.
MARKETING- means managing markets to bring
about exchanges for the purpose of satisfying
NEEDS and WANTS
-A social and managerial process by which
individuals and groups obtain what they need
and want through creating and exchanging
products and value with others.
NEEDS- states of felt deprivation
WANTS- the state above a need that is driven by
desire.
DEMANDS-wants that are backed up by buying
power.
MARKETING MANAGEMENT- the analysis,
planning, implementation and control of
programs designed to create, build and
maintain beneficial exchanges with target
buyers for the purpose of achieving
organizational objectives.
MARKETING MANAGEMENT- the art and
science of choosing target markets and getting,
keeping, and growing customers through
creating, delivering and communicating superior
value.
MANAGEMENT: getting things done with and
through other people.
Superior Customer Value
Importance and role of organization
1.It is the lead unit in an organization
2.All of an organization’s activities are anchored
on the performances of the market unit
3.It is a revenue center, unlike other
department which are classifies as cost or
expense
4.It represents the company in the consumers
world
5.It is the one that has direct contact with the
customer.
Production Concept
Consumers will favor products that are available
and highly affordable and that management
should therefore focus on improving production
and distribution efficiency.
Product Concept
Consumers will favor those products that offer
the most quality performance or innovative
features and that Managers in production
oriented organizations focus their energy on
making superior products and improve them
overtime
Market Segmentation
Dividing a market into distinct groups of buyers
with different needs, characteristics, or behavior
who might require separate products or
marketing services
Objective:
To have focus on specific targets, maximize
attainment of objectives, and lessen the effort
involved.
Target Market
A set of buyers sharing common needs or
characteristics that the company decides to
serve
Market Segment
A group of consumers who respond in a similar
way to a given set of marketing stimuli
APPROACHES TO MARKET SEGMENTATION
Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Geographic Segmentation
Dividing a market into different geographical
units. (region, density, climate)
WHY DO WE NEED FORECAST?
-in general, forecast are almost always wrong.
-throughout the day we forecast very different
things such as weather, traffic, stock market,
state of our company from different
perspectives.
Virtually every business attempt is based on
forecasting. Not all of them are derived from
sophisticated methods. However, “best”
educated guesses about future are more
valuable for purpose of planning than no
forecast and hence no planning.
FORECAST:
-A statement about the future of a variable of
interest such as demand.
-Forecast affects decisions and activities
throughout an organization
*Accounting finance
*Human resources
*Marketing
*MIS
*Operations
*Product/service design
USES OF FORECATS:
ACCOUNTING- cost/profit estimates
FINANCE- cash flow and funding
HUMAN RESOURCES- hiring/recruiting/training
MARKETING- pricing, promotion, strategy
MIS- IT/IS systems, services
OPERATIONS- schedule, MRP, workloads
PRODUCT/SERVICE- new product and services
ELEMENTS OF A GOOD FORECAST
TYPES OF FOREACST BY TUME HORIZON
 Short-range forecast
Usually 3 months
-Job scheduling, worker assignment
 Medium-range forecast
3 months to 3 years
-states and production planning,
budgeting
 Long-range forecast
3 years
-new product planning, budgeting.
8 STEPS IN FORECASTING
1.Determine the use of forecast
2.Select the items to be forecast
3.Determine the time horizon of the forecast
4.Select forecasting models -Aggregate estimates from salesperson
 Delphi Method
5.Gather the data
-Query experts interactively.
6.Make the forecast  Consumer market survey
-survey current and potential consumer.
7.Validate and implement

8.Monitor forecast and adjust when needed

JURY EXECUTIVE OPINION
 Seeks opinions/estimates from small group
REALITIES OF FORECASTING of high-level managers working together
 Combines managerial experience with
-Assumes features will be like the past(causal statistical models
factors will be the same) -relatively quick
- ‘Group think’
-Forecast are imperfect -Leader may dominate
-Forecast for group of product are more
accurate than forecast for individual products SALES FORCE COMPOSITE
-Accuracy decrease with length of forecast
 Each salesperson projects their sales
FORECASTING APPROCAHES
Aggregate projections at distinct &
-Qualitative Method- national levels

-Used when little data or time exist

(+) sales rep’s known customer
 Used when little data or time exist. (-) must not reward in accurate forecast
-new products and technology to acquire more resources
-long time horizon
DELPHI METHOD
-major changes expected
 Involves Intuition, experience  Iterative group process
-example: forecasting for e-commerce
3 TYPES OF PEOPLE
sales.
-Quantitative Method- - Decision makers
 Used when situation is ‘stable’ and - Staff
historical data exist. - Respondents
-Existing products & current technology. - (+) Reduces ‘group think’
-no significant changes expected - (-) Takes time
 Involves mathematical techniques
-Example: forecasting sales or color
televisions
QUANTITATIVE FORECASTING METHODS
OVERVIEW OF QUALITATIVE METHODS
 Jury of executive opinion.
-combine opinions for executives
 Sales force composite
 WHAT IS TIME SERIES?
 Set evenly spaced numerical data
-From observing response variable at
regular time periods
 Forecast based only on past values.
-assumes that factors influencing past
will continue influence in future.
Example:
Time Series Components
TREND COMONENT
 Persistent, overall upward or downward
pattern
 Due to population, technology etc.
 Several years duration
SEASONAL COMPONENT
 Regular pattern of up and down
fluctuations
 Due to weather, customs etc.
 Occurs within 1 year
 Quarterly, monthly, weekly, etc.
CYCLICAL COMPONENT
 Repeating up and down movements
 Usually 2-10 years duration
RANDOM COMPONENT
 Erratic, unsystematic, ‘residual’
fluctuations.
 Due to random variation or unforeseen
events (union strike, -tornado)
 Short duration and non-repeating
SELLING CONCEPT
Consumers will not buy enough of the
organizations product unless the organization
undertakes a large-scale selling and promotion
effort.
MARKETING CONCEPT
The key to achieving organizational goals
depends on determining the needs and wants
of target markets and delivering the desired
satisfaction more effectively and efficiently than
competitors do
SOCIETAL MARKETING CONCEPT
The marketing concept + maintaining and
improving the consumers and society’s well-
being
It consists of 3 components
-Society (human welfare)
-Consumer (want satisfaction)
-Company (profit)
DIFFERENTIATING MARKETING & SELLING
MARKETING
1. Looks at and coordinates all the activities in a
total approach
2. Concerned with cultivating and nurturing the
market before, during, and after the sale
3. Focus on the need of the buyer
4. Concerned with planning, developing and
preparing the product and its support facilities
for the market
5. Takes an outside-in perspective. It starts with
a well-defined market, focuses on customers
needs integrates all the activities that will affect
customers and produces profits by satisfying
customers.
Customer:
6. If likened to a military activity, the marketing
group is the General staff who develops the
plans and activities of the war.
SELLING
1. Is an element of marketing
2. Focused on convincing the buyer of the
product during the sale.
3. Focuses on the sellers need to convert
his product into cash
4. Concerned when implementing and
controlling the plans and strategies
outlined by the marketing group.
5. Takes an inside-out approach. It starts
with the factory, focuses on the
company’s existing, and calls for heavy
selling and promotion to produce
profitable sales.
6. The sales group are the front line
commanders who carry out the plans
and strategies of the General staff.
RECENT TRENDS
-e-commerce
-business process outsourcing
-internet
-borderless
-real time
-global competition
-mergers, acquisitions, joint ventures
-integrated marketing
-mixed political systems
-Corporate Social Responsibility (CSR)
MODULE 2: FOCUS ON THE CUSTOMER
 The person or entity who buys
or avails of the company’s
product or services
 Makes or unmakes any business
 The reasons why you have your
jobs. Without them there is no
need for you.
 The main driving force of trade
and commerce
 Is KING! His wish is our
command
 Is always right! All the time!
Development of a customer…
A lead is the name of a person who
may be a possible customer
A prospect is one who needs or
wants your product
A qualified prospect is the
individual who wants your product,
can afford to buy it, and is the
decision maker
A customer is one who buys your
product.
Customer Satisfaction
The extent to which a product’s
perceived performance matches a
buyer’s expectation
Customer Dissatisfaction
The failure of a product to perform
as expected
Customer Delight
When the performance of a product
exceeds expectations.
  Dissatisfies customers will bring in
competitors (MBM, Tacloban batch,
A Satisfied Customer
2018)
 Does repeat business
Marketing Segmentation
 Avails of the company’s
other products Dividing a market into distinct group of
 Gives unsolicited positive buyers with different needs,
feedback to other characteristics, or behavior who might
prospects require separate products or marketing
services.
Black OK SAKTO RA

RED LOSS/ALKANSE Objective:

BLUE 15/20% To have focus on specific targets,
 Makes the company’s maximize attainment of objectives, and
bottom line grow not lessen the effort involved.
just blue
 Bestows on your
company the title
“Business Partner”.
 Consider your company
as an integral part of
their supply chain
management
Indicators of a Dissatisfied Customer

 Business transaction volume decline or

stops.
 Sources out for other suppliers/
maintain multiple suppliers\
 Competitors business growth outpace
yours
 Have countless reasons to postpone
appointments/ meetings with you.
 They become your competitor’s best
advertising medium.
 Sources out for substitute/ alternative
items (MM-SM 2015)
 When your customers become your
own competitors
(KNOWLES BATCH 2017 )