SIGNIFICANCE OF MARKETING

* to eliminate the gap between the

process of production and consumption.

3 Management Demand
1. stimulation - consumer's interest
2. facilitation - convenient location
3. regulation - balance demand
 MARKETING CONCEPT
3 Marketing Concept
1. consumer oriented
2. integrated
3. goal oriented
PHILOSOPHY OF MARKETING
- Instead of trying to market what is easier
to make, we must find out much more about what
the consumer is willing to buy. We must apply our
creativeness more intelligently to people and their
needs, rather than products.
 SCOPE OF MARKETING
15 scope of Marketing
1. product planning 12. credit
2. branding 13. market segmentation
3. packaging 14. pricing
4. promotion 15. controlling
5. transportion
6. warehousing
7. market research
8. consumer analysis
9. selling
10. sales force management
11. physical distribution
 MARKETING ENVIRONMENT
-gives the understanding that
the marketing is affected by
the environmental forces.
2 CATEGORY OF MARKETING
ENVIRONMENT
1. controllable - control by marketing
management
2. uncontrollable - marketing people has no
control
5 Factors of Untrollable
1. legal - no business can operate outside a
legal framework
2. competition - one of the important and
pressing problems which confront
the government in the discharge of
their economic functions.
Two types of Competition
1. Perfect Competition - presence of a large number
of sellers, no one of which could significantly
influence price or supply.

2. Monopolistic Competition - attempt to develop a

differential marketing strategy to establish its own
share in the markets.
2 other Market Situation
1. monopoly - exists when a firm
produces a product
that has no close
substitute.
2. oligopoly - exists when a few
sellers control the
supply of a large
proportion of the
product.
COMPETITION works to the benefit of
SOCIETY
1. Promoting the flow of new products and
of product improvement
2. Offering consumers adequate choices
and alternatives of both goods and s
services.
3. Passing to customers the result of
research in the form of good-quality
products which offer better cosumer
satifactions.
3. CONSUMER
- an individual acting hemself or as a
member of a group, family or
organization.
- when he uses the product or
services.
4. TECHNOLOGY
- refers to the development and use
of machinery, products and
processes.
5. ECONOMY
- business cycle sets in, many
workers are threatened with the
specific of losing their jobs
(recession, depression, recover and
prosperity).
CONTROLLABLE FACTORS
1. establishing objectives - the goal
attainment
can be
measured.
2. market segmentation - crucial element of
the marketing plan
is to identify the
segment that the
company intends to
reach.
Market are People
- not all consumers are alike,
they differ in their buying
behavior.
Basic Concepts of Consumer Behavior
- consists of the acts of
individuals in obtaining and
using goods and services
including decision process.
2 Assumptions based on hierarchy of
needs
1. People are wanting animals
2. People’s needs are arranged in a
hierarchy of importance.
Needs
- state of being without
something believed to be
important and useful to one’s
life for well-being.
Types of Needs
1. Psychological Needs – needs for
food, clothing and shelter.
2. Safety Needs – need to protect the
future of the family.
3. Social Needs – satisfaction of a felt
need may lead to the emergence of
other needs.
4. Esteem Needs – every individual aspires
to be successful and known for his
achievement in his chosen endeavor.
5. Self-Actualization Needs – desire of the
ambitious to develop potential to the
fullest extent that will redound not only to
his personal interest and satisfaction but
to the benefit of fellowmen as a whole.
PERCEPTION
- the process by which an individual
selects, organizes and interprets information
inputs to create a meaningful picture of the
thing under focus.
Factors Influencing Perception
1. The Role of the Senses
2. Cultural Factors
3. Conditioning and Training
4. Social Factors
5. Emotions
6. Motivational States
7. Price
CONSUMER BUYING DECISIONS
- people in business are becoming
increasingly aware that their success
depends upon their relationships with
and understanding of other people
5 Types of Consumer
1. Emotional Shopper
- primarily interested in shopping for
values and is extremely sensitive to
price, quality and merchandise.
2. Personalizing Shopper
- emphasis on product or service
image, personal service and
treatment by firms but less
concerned with price.
3. Ethical Shopper
- willing to sacrifice low prices and
wide assortments in order to
patronize small firms.
4. Apathetic Shopper
- major concern on convenience and
considers price of less importance.
5. Undecided Shopper
- finds it difficult to make decision,
whether to buy or not to buy.
CONSUMERS’ WILLINGNESS TO SPEND
- people are sometimes more willing
to buy if they have the buying
power.
4 Buying Motives of Industrial Consumers.
1. Efficiency
2. Economy
3. Durability
4. Safety
4 Strategy Elements of Marketing Decision
Making
1. Products
2. Pricing
3. Distribution
4. Promotion
4 Types of Strategy
1. Product Strategy
- comprises about package design
involving shape or form of the
container, color of the package and
the like.
2. Pricing Strategy
- deals with the setting of prices that
will insure profits for the firm and yet
at the same time are considered
acceptable and justified to the minds
of consumers.
3. Distribution Strategy
.
- involves the choice of marketing
channels and the use of appropriate
transportation facilities.
4. Promotion Strategy
- involves personal selling techniques,
use of advertising media and tolls of
sales promotion.
PRODUCT DEVELOPMENT
- whose customers wants and needs
must be satisfied.
7 interrelated step of Product Planning
1. Idea Generation
- continuous systematic search for
new product opportunities.
2. Product Screening
- poor, unsuitable, expensive or
otherwise unattractive ideas are
weeded out from further
considerations.
3. Concept Testing
- asking potential consumers to react
to a picture, written statement or oral
description of the product.
4. Business Analysis
- essential to eliminate marginal items
it involves the demand projections,
cost, competition, investment
requirements and profits.
5. Product Development
- converts a product idea into a
physical form and identifies a basic marketing
strategy it involves product construction,
packaging, branding, product and brand
positioning and attitude and usage testing.
6. Test Marketing
- places a product in selected areas
and observe its performance.
7. Commercialization
- ready to introduce the product to its
full target market.
SIGNIFICANCE OF COMMERCIALIZATION
- customers accept the product rapidly
through the product adoption process which
involves the 4 stages:
1. awareness
2. interest
3. evaluation
4. adoption
PRODUCT
- everything both favorable and
unfavorable that one receives in exchange.

3 Distinct Ways of Product

1. tangible product – physical entity,
service & idea
also the
description or
model.
2. extended product - concern for
cluster image
and service
features
 3. generic product - focuses on what
a product means
to the customers
not to the seller

Types of Product
1. consumer products
- goods and services destined for
use by the ultimate consumer for
personal, family or household
use.
2. industrial products
- goods and services purchased
for use in the production of other goods and
services, in the operation of a business.
3 categories of Consumer Products
1. convenience goods
- with knowledge of the product
2. shopping goods
- lack of information about the
product alternatives
3. specialty goods
- willing to go out of their way in a
desire to purchase the product.
Requirements of Design
1. Consumer Acceptance
2. It must have Utility
3. Can be processed Economically
4. Consistent with availability of Materials
to be used
5. Durability

Characteristics of New Products

1. There should be an adequate market
demand
2. The product should fit into the
company’s structure
3. The product must fit in with existing
 4. Additional investment from the Profit
Standpoint.

3 Kinds of Production and Consumer

Welfare
1. Obsolescence of Function
2. Obsolescence of Quality
3. Obsolescence of desirability

Packaging
- it is an element of merchandising policy
which is related primarily to product
identification and consumer choice.
Package
- includes a product’s physical container,
label and inserts.
- serves as a means of conveyance and
production

2 basic aspects of Packaging

1. Structural Design
2. Visual Design
Classification of Packages

1. Glass
2. Paper
3. Metal
4. Plastics
5. Flexible

Packaging Considerations
1. The package should afford full production to
the product
2. The package should be comfortable to use
3. The package should be steady on its base
4. The package should be easy to open
5. The package should endow the product with
eye appeal
6. Packages must not only give protection but at
the same time produce most economical level
consistent with the needs of the contents.
7. Packages that are intended for re-use must
be capable of easy disposal or destruction
8. For advertising purposes, the package must
be adapted to usefulness on television as well
as newspaper, magazine and poster advertising
9. Focus on visibility of the package
Considerations of Other Packaging

1. Size
2. Shape
3. Novelty Shapes

Principles of the Package

1. Principle of Familiarity
2. Principle of Novelty
3. Principle of Resemblance
4. Principle of Order
5. Avoidance and Ambiguity
Brand and Trademark

Brand – is a name, term, symbol or design

which identify the goods or services of one
seller or group of sellers and distinguishes

Brand Name – brand or a part of a brand

consisting of a word, letter, group of words or
letters, comprising a name, which identifies the
goods and services of a seller of group of
sellers

Trademark – establishes the company and the

product in the public mind.
4 Tests for a new Trademark

1. Appropriate
2. Distinctive
3. Flexible
4. An idea