FM-AA-CIA-15 Rev.

0 10-July-2020

Study Guide in COG 105: SPECIAL TOPICS IN MARKETING MANAGEMENT Module No. 1

STUDY GUIDE FOR MODULE NO. 1

Chapter 1:
The Marketing Concept & The Marketing Environment
MODULE OVERVIEW

Hi! Hello! And Mabuhay! This first module will be focusing mostly on the basic concepts and principles of
marketing. The contents of this course are the following:

• Marketing Management Philosophies

• Marketing Challenges of the Next Century
• Marketing Management Models.

For a smooth flow of studying, it is expected that you already familiar and had a prior knowledge of some of
the related terms used in marketing which you have learned from your previous marketing subjects (thus, this
is somehow a review and recap).

As you go along the module, try your best to read and understand the lesson. You will be expected to have
individual and group outputs, thus, coordination and cooperation with your group is very essential. You will be
given enough time to accomplish and submit your outputs. We will be having a virtual meeting for clarification
and virtual recitation to assess your learning once a week all throughout the semester (Reading habit and
asking for clarification is the key). Do not memorize every single word but understand and familiarize them
instead.

Doing the extra mile to study is a must.

MODULE LEARNING OBJECTIVE(S)

At the end of the module, you should be able to:

1. Review and familiarize with the importance of marketing, scope of marketing, core marketing
concepts, how has marketing management changed in recent years, tasks necessary for successful
marketing management.

LEARNING CONTENT

MARKETING MANAGEMENT PHILOSOPHIES

All marketing initiatives are directed by marketing management philosophies that specify how marketing
activities should be conducted. Marketing management philosophies are a concept that serves as the center
of operations for a company. Furthermore, these marketing management theories are used to help firms
define organizational goals. This includes not only the organization's own interests, but also the interests of its
consumers and society at large.

There are five marketing concepts. A company should choose the right one according to their and their
customers’ needs.

 Production concept
 Product concept
 Selling concept
 Marketing concept
 Social marketing concept

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Study Guide in COG 105: SPECIAL TOPICS IN MARKETING MANAGEMENT Module No. 1

Production concept

This concept is based on the assumption that buyers desire a low-cost, widely available product. This idea is
reflected in the law of supply and demand, which argues that "supply creates its own demand." As a result,
businesses concentrate on creating more of the product and ensuring that it is widely accessible to customers
everywhere.

Product concept

This notion is based on the assumption that buyers prefer ‘higher quality' products and that ‘price and
availability' have no bearing on their buying choice. As a result, the corporation spends the majority of its time
manufacturing a higher-quality product, which is usually more expensive.

Selling Concept

Both production and product concept are concerned with the manufacture of the product, whereas selling
concept is concerned with the actual sale of the product. Regardless of the product's quality or the customer's
need, the Selling Concept concentrates on making every feasible sale of the goods. The primary goal is to
earn money. Building consumer relationships is not part of this mindset. As a result, repeat sales are rare.
Companies that adhere to this philosophy may even try to deceive customers in order to persuade them to
buy their goods.

Marketing Concept

A company's ability to survive in the market is limited by its selling concept. After all, this is a consumer
market. In order to prosper in the twenty-first century, one must create a product that meets the wants of their
clients. As a result, the marketing concept was born. This notion is based on the assumption that customers
purchase things that meet their needs. Businesses that follow the marketing approach do research to learn
about their consumers' needs and wants, and then develop products that meet those needs and wants better
than their competitors. As a result, the company creates a relationship with the customer and generates long-
term profitability.

Societal Marketing Concept

This philosophy, in addition to the marketing notion, focuses on the well-being of society. The company
focuses on how to meet client wants while also considering the environment, natural resources, and the well-
being of society. This ideology holds that business is a part of society and, as such, should participate in
social activities such as poverty alleviation, illiteracy reduction, and population control, among other things.

Holistic Marketing Concept

Holistic marketing is a novel addition to business marketing management philosophy that views a company
and all of its components as a unified entity with a common purpose for all activities and people associated
with that company. A business, like a human body, is made up of various parts, but it can only function
successfully when all of those parts work together to achieve the same goal. This interconnectedness is
enforced by the holistic marketing philosophy, which argues that to achieve the best outcomes, a broad and
integrated approach is required.

MARKETING CHALLENGES OF THE NEXT CENTURY

Globalization and the penetration of new technology have dramatically transformed the way we do business in
the last several decades. And the way we market ourselves. As a result of these changes, businesses are
confronted with issues that are vastly different from what they were previously.

The idea is that globalization and digitalization are fundamentally altering the landscape. Let us now look at
what the new International Marketing problems for organizations in the twenty-first century and beyond are:

1. Increased competition
2. Inefficient Campaign segmentation

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Study Guide in COG 105: SPECIAL TOPICS IN MARKETING MANAGEMENT Module No. 1

3. Lack of resources
4. Brand awareness
5. Difference in performance data
6. Engagement differs across markets
7. Language barriers
8. Compliance & International issues
9. Local channels

MARKETING MANAGEMENT MODELS

A marketing model is a technique used by advertisers and businesses to determine their company's strength
and earning potential. The entire tactics and parameters involved in advertising a company and its products
are examined using marketing models. Marketing models are designed to assist marketers in defining their
marketing strategy, deciding which segment of the market to target, predicting the impact of specific activities
on customers, and generating revenue estimates.

Models for Marketing Strategy

1. SWOT Analysis. A SWOT analysis can be performed to evaluate these four areas of your firm.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
2. Porter’s Five Forces. Porter's Five Forces Framework is a framework for analyzing a company's
competition that was initially published in the Harvard Business Review in 1979.
3. STP Marketing Model. The STP Marketing Model (Segmenting, Targeting, and Positioning) is a
structure that makes market segmentation easier.
4. Boomers, Gen X, Gen Y, and Gen Z
5. Marketing Mix: 4Ps. The marketing mix, sometimes known as the 4Ps, is a fundamental paradigm in
marketing. Product (or Service), Place, Price, and Promotion are the four Ps.
6. Product Life Cycle. The product life cycle is the process that a product goes through from the time it
is initially introduced to the market until the time it is removed. Introduction, growth, maturity, and
decline are the four stages of the life cycle.
7. Kotler Five Product Levels. The core advantage is the first level: the service or benefit that the
consumer is actually purchasing. The marketer must transform the main benefit into a simple product
at the second level. At the third level, the marketer creates an expected product, which consists of a
set of characteristics and conditions that customers should expect when purchasing this product. The
marketer prepares an enhanced offering that exceeds client expectations at the fourth level. The
potential product, with all the various augmentations and transformations the product or offering might
undergo in the future, is located at the fifth level.

Models for Consumer Behaviour

1. Maslow’s Hierarchy of Needs. Maslow’s hierarchy of needs is a theory in psychology proposed by

Abraham Maslow in his 1943 paper “A Theory of Human Motivation” in Psychological Review.
2. Consumer Perception and Cognition Process. Perception and cognition have spawned a variety of
academic studies.
3. Consumer Decision Making Process. The consumer decision-making process entails identifying
needs, gathering information, evaluating alternatives, and finally making a purchase decision.
4. Response Hierarchy Models. Consumer responses and behavior to the advertising process are
explained by Response Hierarchy Models. It gives you a complete picture of a customer's reactions at
every stage of his journey, from being uninformed of the product to making a purchase.
5. The AIDA model, standing for Attention, Interest, Desire, and Action is well-known.
6. The FCB Grid. The FCB grid, also known as the Foote, Cone, and Belding model, is a
comprehensive approach to interpreting customer purchasing behavior and the implications for
developing an effective advertising plan.
7. The Elaboration Likelihood Model. Persuasion's elaboration likelihood model (ELM) is a dual
process theory that describes how people's attitudes evolve. Richard E. Petty and John Cacioppo
created the ELM in 1980. The model seeks to explain distinct types of stimulus processing, why
they're used, and how they affect attitude change.

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Study Guide in COG 105: SPECIAL TOPICS IN MARKETING MANAGEMENT Module No. 1

Models for Integrated Marketing Communication (IMC)

1. Communication Process. In 1948, Laswell established the Five W's Method or Laswell's
Communication Model to describe mass communication processes, which focuses on "Who (says)
What (to) Whom (in) Which Channel (with) What Effect." The communication process is interactive
rather than linear.
2. Marketing Communication. Marketing communication (MarCom) is the promotion of the marketing
mix (4P) and it includes advertising, PR, sales promotion, direct response, events, digital marketing,
personal selling, and more.
3. Impact of Advertising Expenditures. “Half the money I spend on advertising is wasted; the trouble
is I don’t know which half.”
4. Advertising and Creative Pyramid. It reflects how people respond to advertising and how creative
can be designed.

Models for Brand Management

1. Brand Resonance Model. The brand resonance model explains how to develop passionate, active
consumer loyalty ties. The model takes into account how brand positioning influences what customers
think, feel, and do, as well as how much they resonate or connect with a company.
2. Branding Value Chain. The brand value chain is a well-thought-out, well-structured approach for
managing brand equity and the ways in which marketing decisions increase brand value.

(Source: http://bigbobchang.com/15-marketing-models-you-should-know/)

LEARNING ACTIVITY 1

1. Reading Assignment for Marketing Management Philosophies, click the link below:
o https://www.feedough.com/marketing-management-philosophies-five-marketing-concepts-
with-infographics/
o https://www.businessstudynotes.com/marketing/marketing-management/marketing-
management-philosophies/

Make sure to read your assignment and search for further discussion and explanation from other
relevant resources. Recitation/Interactive discussion will be conducted during synchronous schedule.
(Draw lot)

2. Search and read the content from the link below for further explanation of Marketing Challenges:
o https://mktoolboxsuite.com/international-marketing-challenges/

After reading answer the following questions:

 What are the 9 International Marketing Challenges?
 What are the solutions for these challenges?

Create table for your answers.

3. Reading Assignment for Marketing Management Models, click the link below:
o http://bigbobchang.com/15-marketing-models-you-should-know/

Study the frameworks and structures of each model. Recitation/Interactive discussion will be
conducted during synchronous schedule. (Draw lot)

Expect Quiz after the lesson.

LEARN

SUMMARY

There are five marketing concepts. A company should choose the right one according to their and
their customers’ needs., Production Concept; Product Concept; Selling Concept; Marketing Concept;
Social Marketing Concept.

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Study Guide in COG 105: SPECIAL TOPICS IN MARKETING MANAGEMENT Module No. 1

The marketing management philosophies are actually a concept, which is the central focus for the
business to do their operations. Moreover, the organizations set their organizational goals in the light
of these marketing management philosophies.
Globalization and the use of new technologies have dramatically transformed the way we do business
over the last few decades. We also do marketing in a certain way. Companies are experiencing
issues that are vastly different from those they faced previously as a result of these changes.
Marketing, communication science, and consumer behavior theories can assist us in better
understanding client demands, creating and delivering value, running a business, and managing a
brand.
There are Models to further assess and understand the market and the strategies to address their
emerging and changing demand over years. Marketing Strategy; Consumer Behavior; Integrated
Marketing Communication; Brand Management

REFERENCES

https://www.feedough.com/marketing-management-philosophies-five-marketing-concepts-with-infographics/

https://www.businessstudynotes.com/marketing/marketing-management/marketing-management-
philosophies/

https://mktoolboxsuite.com/international-marketing-challenges/

http://bigbobchang.com/15-marketing-models-you-should-know/

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