REVIEWER MARKETING MANAGEMENT

(MIDTERM)
CHAPTER 1

MARKETING
- an organizational function and set of processes for creating, communicating and
delivering value to customers.
- Refers to activities a company undertakes to promote the buying or selling of a product
or service.
PHILIP KOTLER
- According to him, marketing is “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.
CORE CONCEPTS OF MARKETING
● NEEDS - if an individual feels that he is deprived of something we may say that he is
having a need.
- An individual may have different types of needs.
● WANTS - human wants is the other concept of marketing.
- Conversion of needs some tangible product or service.
- This conversion depends on the personality of the individual or his culture.
● DEMANDS - backed up by purchasing power and willingness to buy.
● PRODUCT - set of tangible and intangible attributes.
- Including packaging, color, price, quality and brand plus the seller's service and
reputation.
● EXCHANGE - the process of obtaining a desired product by offering something in return.
● TRANSACTION - a trade of values between two or more parties.
- Includes two things of value, agreed upon conditions on a time of agreement and
a place of agreement.
- The basic unit of exchange is transaction.
● TRANSFER - when one party gives but the other party does not receive anything in
return.

THINGS THAT GET MARKETED (TYPES OF MARKETED ENTITIES) (G.S.E.E.P.P.P.O.I.I.)

1. Goods
2. Services
3. Events
4. Experiences
5. Persons
6. Places
7. Properties
8. Organization
9. Information
10. Ideas
MARKET
- Is a place where buyers and sellers can meet to facilitate the exchange or transaction of
goods and services.
- The concept of market basically emerged from the concept of transaction.
KEY CUSTOMER MARKETS
● CONSUMER MARKETS - Companies selling mass consumer goods and services such
as soft drinks, cosmetics, air travel, and athletic shoes and equipment.
● BUSINESS MARKETS - Companies selling business goods and services often face well
trained and well-informed professional buyers who are skilled in evaluating competitive
offerings.
● GLOBAL MARKETS - Companies selling goods and services in the global marketplace
face additional decisions and challenges.
● NONPROFIT AND GOVERNMENTAL MARKETS - Companies selling goods to non
profit organizations
MARKETER AND PROSPECTS
● Marketer is someone seeking a response
● Another party called the prospects
IMPORTANCE OF MARKETING
● Essential for a company to define itself.
● Explain what makes the company/product different
● Understands what customers are looking for.
● Define and deliver the company’s value proposition.
● Financial success often depends on marketing ability.
MARKETING MANAGEMENT - the art and science of choosing target markets.
- The process of planning and executing the conception..
- Getting, keeping and growing customers through creating, delivering and
communicating superior customer value.
PROCESS OF MARKETING MANAGEMENT
● Define your mission statement and work for it
● Analysis of industrial rank of your business
● Processing towards work
● Keep evaluating, modifying and repeating the strategies.
TASK AND FUNCTION OF MARKETING MANAGEMENT
● Development of products
● Promotions are made
DEMAND STATES AND MARKETING TASKS
● NEGATIVE DEMAND - Occurs when a product is disliked by all its target customers in
general.
● NON-EXISTENT DEMAND - marketer thinks that there is a demand for the product in
the market but in reality, there is no demand for the product.
● LATENT DEMAND - the demand for which the product is not available or is not
developed to date.
● DECLINING DEMAND - consumers begin to buy the product less frequently or not at all.
 ● IRREGULAR DEMAND - company has to change its marketing strategy time to time
repeatedly.
● FULL DEMAND - it is a golden period for the company.
● OVERFULL DEMAND - generates when there is a limited manufacturing capacity of the
company for a product, but the demand for it is more than the manufacturing capacity.
● UNWHOLESOME DEMAND - consumer badly wants the product but shouldn’t desire or
take the decision to buy it.
MARKETING CHANNELS
1. COMMUNICATION CHANNELS - deliver and receive messages from target buyers.
2. DISTRIBUTION CHANNELS - use to display, sell, or deliver the physical product or
service to the buyer or user.
3. SERVICE CHANNELS - used to carry out transactions with potential buyers.
SUPPLY CHAIN
● Describes a longer channel stretching from raw material to components to final product
that are carried to final buyers.
● Manufacturers - transforms materials into actual products.
● Wholesalers
● Retailers
● End users / Consumers
MARKETING PLANNING PROCESS (A.S.D.D.M.)
● Analyzing marketing opportunities
● Selecting target markets
● Designing marketing strategies
● Developing marketing programs
● Managing the marketing efforts
DEVELOP YOUR MARKETING PLAN
● Analyse your market
● Set your goals and objectives
● Outlines your marketing strategies
● Set your marketing budget
● Keep your marketing plan up to date
WHY IS MARKETING MANAGEMENT IMPORTANT?
● It helps to maintain the company’s reputation
● It helps to boost the economy of the company
● It promotes new ideas
● It is a source of advertising the new products
COMPANY ORIENTATION TOWARDS MARKETPLACE
1. PRODUCTION CONCEPT - customers will prefer products that are widely available and
inexpensive.
- Achieving high product efficiency, low cost.
2. PRODUCT CONCEPT - customers will favor those products that offer the most quality
performance and innovative features.
- Managers in these organizations focus on making superior products and
improving them over time.
 - They produced a products as best of their knowledge
3. SELLING CONCEPT - pushing for the products to be sold and bought by the
consumers.
- Make and sell concept
- The products needs to be sold by the salesman
4. MARKETING CONCEPT - kabaligtaran ng selling concept
- Companies start to focus on the customer needs and what the customer
wants and how to satisfy their needs
- Sense the environment or market first muna kung ano yung mga wala or
kulang then atsaka mag make and sell.
- Sense and respond concepts
5. SOCIETAL MARKETING CONCEPT - emphasizes social responsibilities to sustain long
term success.
- The company focuses on the satisfaction of the customer but also the
society will accept it or not.
- For the customers and society's well being.
- 3Ps - People, Planet, Profit

4Ps
● Product
● Price
● Place
● Promotion

4Cs
● Customer
● Cost
● Convenience
● Communication

CHAPTER 2: CAPTURING MARKETING INSIGHTS

COMPONENTS OF A MODERN MARKETING INFORMATION

● Every firm must organize and distribute a continuous flow of information to its marketing
managers.
● MARKETING INFORMATION SYSTEM (MIS) CONSISTS OF: (P.E.P.)
● People
● Equipment
● Procedures
INTERNAL RECORDS
● The order to payment cycle
● Sales information system ‘
● Database, data warehousing and data mining
● Supplies results data
MARKETING INTELLIGENCE SYSTEM
● Set of procedures and sources that managers use to obtain everyday information about
developments in the marketing environment.
● Informations that marketers get from the consumers
● Supplies happenings data
● Marketing managers collect marketing intelligence in a variety of different ways:
○ Reading books
○ Talking customers
○ Monitoring social media
8 POSSIBLE ACTIONS TO IMPROVE THE QUANTITY AND QUALITY OF MARKETING
INTELLIGENCE
1. Train and motivate the salesforce to spot and report new developments
2. Motivate distributors, retailers and other intermediaries to pass along important
intelligence.
3. Hire external experts to collect intelligence
4. Network internally and externally
5. Set up a customer advisory panel
6. Take advantage of government related data sources
7. Purchase information from outside research firms and vendors
8. Collecting marketing intelligence on the internet
ANALYZING MACRO ENVIRONMENT
● MACRO ENVIRONMENT - Conditions that exist in the economy as a whole rather than
in a particular region or sector.
● Macro is external and micro is internal
NEEDS AND TRENDS
● FAD - short period of time and less value (ex. Photolab app, Jogger pants)
● TREND - long period of time (Ex. Skincare)
● MEGATREND - pangmatagalan / permanent (Tiktok, Shoppee, online stores)
SIX MAJOR FORCES IN THE BROAD ENVIRONMENT (D.E.S.T.E.P.)
1. DEMOGRAPHIC FORCES - Population (macro)
2. ECONOMIC FORCES - demand and power
3. SOCIO CULTURAL FORCES
4. TECHNOLOGICAL FORCES - Advancement technology
5. ECOLOGICAL FORCES - ecology and natural resources
6. POLITICAL FORCES - retail pricing
THE MEASURES OF MARKET DEMAND
● POTENTIAL MARKET - set of consumers with a sufficient level of interest in a market
offer.
● AVAILABLE MARKET - set of consumers who have interest, income, and access to a
particular offer.
● TARGET MARKET - part of the qualified available market the company decides to
pursue.
● PENETRATED MARKET - set of consumers who are buying the company’s product.
ESTIMATING CURRENT DEMANDS
1. Total market potential
2. Area market potential
3. Industry sales and market sales

ESTIMATING FUTURE DEMANDS

● Forecasting
● Expert opinion
● Composite of sales force opinions
● Past-sales analysis

MARKETING RESEARCH SYSTEM

MARKET RESEARCH
- gaano ka-viable ang product
- any technique or a set of practices that companies use to collect information to
understand their target market better.
MARKETING INSIGHT
- Provides diagnostic information about how & why we observe certain effects in the
marketplace, and what that means to marketers.
- Good marketing insights often form the basis of successful marketing programs.
MARKETING RESEARCH
- Defined as the systematic design, collection, analysis and reporting of data and finding
relevant to a specific marketing situation facing the company.
- Not limited to large companies with big budgets.
- Small companies can also hire the services of a marketing research firm.
RESEARCH FIRMS (S,C,S)
● Syndicated- service research firms
● Custom marketing research firms
● Specialty-line marketing research firms
MARKETING RESEARCH PROCESS
● Define the problem, decision alternatives and research objectives.
● Develop the research plan
○ Data sources
○ Research approaches
○ Contact method
○ Sampling plan
○ Research Instruments
■ Questionnaire
■ Qualitative research
■ Technological events
○ Sampling plan
■ Sampling unit
■ Sampling procedure
 ■ Sample size
● Collection of data
MARKETING RESEARCH PROCESS
1. Collect the information
2. Analyze the information
3. Present the findings
4. Make the decision
MEASURING MARKETING PRODUCTIVITY (TWO COMPLEMENTARY APPROACHES)
● Marketing metrics to assess marketing effects
● Marketing mix modeling to estimate causal relationships and measure how marketing
activity affects outcomes.

CHAPTER 3: CONNECTING WITH CUSTOMERS

ORGANIZATIONAL BUYING
● Refers to the decision making process by which formal organizations establish the
needs for purchased products and services.
● Identify, evaluate and choose among alternative brands and suppliers.
BUSINESS MARKET
● Consists of all the organizations that acquire goods and services used in the production
of other products or services that are sold, rented or supplied to others.
CONSUMER MARKET
● A marketplace consisting of household consumers who buy goods for individual or family
consumption.
CHARACTERISTICS OF BUSINESS MARKETS
● Fewer, larger buyers
● Close supplier-customer relationship
● Professional purchasing
● Multiple buying influence
● Multiple sales calls
● Derived demand
● Inelastic demand
● Fluctuating demand
● Geographically concentrated buyers
● Direct purchasing
BUYING SITUATIONS
● STRAIGHT REBUY - purchasing or reordering of supplies on a routine basis.
● MODIFIED REBUY - an individual or organization purchase goods that have been
purchased previously.
● NEW TASK - new-task purchaser buys a product or service for a first time
SYSTEMS BUYING
● This practice originated with government purchases of major weapons and
communications systems.
SYSTEMS SELLING
● It is a key industrial marketing strategy in bidding to build larger-scale industrial projects.
PARTICIPANTS IN THE BUSINESS BUYING PROCESS THE BUYING CENTER
(I.U.I.D.A.B.G.)
1. Initiator
2. Users
3. Influencers
4. Deciders
5. Approvers
6. Buyers
7. Gatekeepers
BUYERS EXHIBIT DIFFERENT BUYING STYLES (K,O,W,W)
● “Keep it simple” buyers
● “Own expert” buyers
● “Want the best” buyers
● “Want everything done” buyers
STEPS IN BUYING PROCESS (P.G.P.S.P.S.O.P)
1. Problem recognition
2. General need description
3. Product specification
4. Supplier search
5. Proposal solicitation
6. Supplier selection
7. Order routine specification
8. Performance review
PROBLEM IDENTIFICATION
● Buying process begins when someone in the company recognizes a problem or need
that can be met by acquiring a good or service.
GENERAL NEED DESCRIPTION
● Once they recognize that a need exists, the buyers must describe it thoroughly to make
sure that everyone understands both the need and the nature of the solution the
organization should seek.
PRODUCT SPECIFICATION
● Usually the responsibility of the engineering department
● Engineers should design what the organization requires.
SUPPLIER SEARCH
● Buyer tries to identify the most appropriate suppliers through different supplier search.
PROPOSAL SOLICITATION
● Buyers invite qualified suppliers to submit proposals.
SUPPLIER SELECTION
● Before selecting a supplier, the buying center will specify and rank desired supplier
attributes using a supplier evaluation model.
ORDER-ROUTINE SPECIFICATION
● After selecting a supplier, the buyer negotiates the final order.
PERFORMANCE REVIEW
● The buyers periodically review the performance of the chosen suppliers.
BENEFITS OF VERTICAL COORDINATION
● Availability of alternatives
● Importance of supply
● Complexity of supply
● Supply market dynamism
EIGHT CATEGORIES OF CLASSIFYING BUYER-SELLER RELATIONSHIP
1. Basic buying and selling
2. Bare bones
3. Contractual transaction
4. Customer supply
5. Cooperative systems
6. Collaborative
7. Mutually adaptive
8. Customer is king
INSTITUTIONAL AND GOVERNMENT MARKETS
● The institution consists of schools, hospitals, nursing homes, prisons and other
institutions that must provide goods and services to people in their care.

ANALYZING THE MARKETING ENVIRONMENT

MARKETING ENVIRONMENT
● Includes the actors and forces outside marketing
● Affects marketing management’s ability to build and maintain successful relationships
with target customers.
MICROENVIRONMENT
● Consists of the factors close to the company
● Affects its ability to serve its customers, company suppliers, marketing intermediaries,
customer markets, competitors and publics
COMPANY’S MICROENVIRONMENT
● COMPANY
○ Top management
○ Finance
○ R&D
○ Purchasing
○ Operations
○ Accounting
● SUPPLIERS
○ Provide the resources to produce goods and services
○ Treated as partners to provide customer value
● MARKETING INTERMEDIARIES
○ Helps the company to promote, sell and distribute its products to final buyers.
 ○
TYPES OF MARKETING INTERMEDIARIES:
■ Resellers
■ Physical distribution firms
■ Marketing services agencies
■ Financial intermediaries
● COMPETITORS
○ Firms must gain strategic advantage by positioning their offerings against
competitors’ offerings
● PUBLICS
○ Any group that has an actual or potential interest in or impact on an
organization’s ability to achieve its objectives. (F.M.G.C.L.G.I.)
■ Financial publics
■ Media publics
■ Government publics
■ Citizen-action publics
■ Local publics
■ General publics
■ Internal publics
COMPANY’S MACROENVIRONMENT
● DEMOGRAPHIC ENVIRONMENT
○ DEMOGRAPHY - the study of human populations in terms of statistics.
○ Demographic environment is important because it involves people, and people
make up markets.
○ Demographic trends include age, family structure, geographic population shifts,
educational characteristics, and population diversity.
○ Changing age structure of the population
■ BABY BOOMERS - born between 1946 and 1964
■ GENERATION X - born between 1965 and 1976
● High parental divorce rates
● Less materialistic
● Family comes first
■ MILLENNIALS (GEN. Y OR ECHO BOOMERS) - born between 1977
and 2000.
● Comfortable with technology
● Includes: tweens ages 8-12, teens 13-19 and young adults 20s
○ GENERATIONAL MARKETING - important in segmenting people by lifestyle or
life state instead of age.
○ Most people are:
■ Divorcing or separating
■ Choosing not to marry
■ Choosing to marrying later
■ Marrying without intending to have children
■ Increased number of working women
■ Stay at home dads
 ○ Moving from rural to metropolitan areas
● DEMOGRAPHIC ENVIRONMENT (INCREASED DIVERSITY)
○ Markets are becoming more diverse
■ International
■ National
○ Includes ethnicity, gay and lesbian, disabled.

● ECONOMIC ENVIRONMENT
○ Consists of factors that affect consumer purchasing power and spending
patterns.
○ Industrial economies are richer markets.
○ Subsistence economies consume most of their own agriculture and industrial
output.
○ Value marketing involves ways to offer financially cautious buyers greater value
the right combination of quality and service at a fair price.
● ECONOMIC ENVIRONMENT (CHANGES IN CONSUMER SPENDING PATTERNS)
○ ERNST ENGEL - Engel’s law
■ As income rises:
● The percentage on spent on foods DECLINES
● The percentage spent on housing remains CONSTANT
● The percentage spent on saving INCREASES
● NATURAL ENVIRONMENT
○ Involves the natural resources that are needed as inputs by marketers or that are
affected by marketing activities.
● TECHNOLOGICAL ENVIRONMENT
○ Most dramatic force in changing the environment
○ Creates new products and opportunities
○ Safety of new product always a concern
● POLITICAL ENVIRONMENT
○ Consists of laws, government agencies, and pressure groups.
○ Influence or limit various organizations and individuals in a given society.
● CULTURAL ENVIRONMENT
○ Consists of institutions and other forces
○ Affect a society's basic values, perceptions and behaviors.
● CULTURAL ENVIRONMENT (PERSISTENCE OF CULTURAL VALUES)
○ CORE BELIEFS AND VALUES - persistent and are passed on from parents to
children.
- Reinforced by schools, churches, businesses and government.
○ SECONDARY BELIEFS AND VALUES - more open to change.
- Include people’s views of themselves, others, organizations, society,
nature and the universe.
● CULTURAL ENVIRONMENT (SHIFT IN SECONDARY CULTURAL VALUES)
○ People’s view of organizations
○ People’s view of society
 ○ People’s view of nature
○ People’s view of the universe
RESPONDING TO THE MARKETING ENVIRONMENT
● UNCONTROLLABLE - React and adapt to the forces of environment
● PROACTIVE - Aggressive actions to affect forces in the environment
● REACTIVE - Watching and reacting to the forces of environment