TOPIC #1: MARKETING: THE ART
AND SCIENCE OF SATISFYING
CUSTOMERS
WHAT IS MARKETING?
UK Chartered Institute of Marketing
(CIM) since 1976:
“Marketing is the management process,
responsible for identifying, anticipating and
satisfying customer requirements profitably”
American Marketing Association (AMA)-
July 2013:
“Marketing is the activity, set of institutions
and process for creating, communicating,
delivering and exchanging offerings that
have value for customers, clients, partners
and society”
MARKETING UTILITIES
Utility (Utility Marketing Model)
● “The power of a good or service to
satisfy the wants of
consumers”...Boone & Kurt.
● Refers to how products can be useful
to consumers in a way that convinces
them to make a purchase.
● The idea that the best way to sell a
product to a consumer is to show
them how the product could provide
value to their life
THE FOUR TYPES OF UTILITIES
Form - conversion of raw materials into
finished goods and services
Time - availability of goods and services
when consumers want them
Place - availability of goods and services at
convenient locations
Ownership (possession) - ability to transfer
title to products from marketer to buyer
5 ERAS OF MARKETING
Production Era - efficiency in producing a
quality product, with the attitude toward
marketing that, "a good product will sell
itself."
Sales Era - "creative advertising and selling
will overcome consumers' resistance and
persuade them to buy"
Marketing Era - managers pay close
attention to the markets for their goods and
services, a shift in the focus from products
and sales to satisfying customers needs
Social Era - the social era of marketing is in
full swing, thanks to consumers accessibility
to the internet and creation of social media
sites
Relationship Era - development and
maintenance of long-term, cost-effective
relationships with individual customers,
suppliers, employees, and other partners for
mutual benefit
TRADITIONAL AND NON-
TRADITIONAL MARKETING
Traditional Marketing
Traditional marketing encompasses
conventional methods that have been used
for decades to reach a broad audience. These
methods typically involve mass media and
offline channels.
Non-Traditional Marketing
Non-traditional marketing, also known as
digital or online marketing, involves newer
and more innovative methods, leveraging
technology and the internet to connect with
a target audience.
● Person Marketing - marketing
efforts designed to cultivate the
attention and preference of a target
market toward a person
● Place Marketing - marketing efforts
designed to attract visitors to a
particular area; improve consumer
images of a city, state, or nation;
and/or attract new business
● Cause Marketing - identification
and marketing of a social issue,
cause, or idea to selected target
markets
● Event Marketing - marketing of
sporting, cultural, and charitable
activities to selected target markets
● Organizational Marketing -
marketing efforts of mutual benefit
organizations, service organizations,
and government organizations that
seek to influence others to accept
their goals, receive their services, or
contribute to them in some way
AVOIDING MARKETING MYOPIA
Marketing Myopia
According to Levitt, marketing myopia is
management’s failure to recognize the scope
of its business.
TRANSACTION-BASED MARKETING
TO RELATIONSHIP MARKETING
● Emphasizes building relationships
with one customer at a time.
Traditional marketing strategies.
● Today’s marketers realize that,
although it’s important to attract new
customers, it’s even more important
to establish and maintain a
relationship with them so they
become loyal repeat customers.
TOPIC #2: DEFINING MARKETING
FOR THE 21ST CENTURY
Marketing - is the activity, set of
institutions, and processes for creating,
communicating, delivering, and exchanging
offers that have value for customers, clients,
partners, and society at large.
Marketing management - is the art and
science of choosing target markets and
getting, keeping, and growing customers
through creating, delivering, and
communicating superior
customer value.
TYPES OF DEMAND
Negative
Negative demand in marketing refers to a
situation where consumers actively dislike a
product or service and may even seek to
avoid it.
Unwholesome
"Unwholesome demand" refers to a situation
in which there is a demand for products or
services that are considered harmful,
socially undesirable, or ethically
questionable.
Irregular
"Irregular demands" in a business context
typically refer to fluctuations or variations in
the demand for a product or service that purchase goods and services from
deviate from a regular, predictable pattern. businesses.

Declining CORE MARKETING CONCEPTS

Declining demand refers to a situation in
which the market interest or desire for a •Needs, Wants, and Demands
particular product or service decreases over •Target Markets, Positioning, and
a specific period. Segmentation
•Offerings and Brands
TYPES OF MARKETS •Value and Satisfaction
•Marketing Channels
Resource Markets •Supply Chain
Resource markets refer to the economic •Marketing Environment
environments where various factors of •Competition
production, or resources, are bought and
sold. MARKETING MIX VARIABLES

Manufacturer Markets The Four P's of Marketing Mix

It could refer to markets where ● Product
manufacturers buy and sell goods and ● Price
services needed for production, or it might ● Place
refer to markets where manufacturers sell ● Promotion
their finished products to other businesses or
consumers.

Intermediary Markets TOPIC #3: SOCIAL MEDIA

Refer to markets where intermediaries or
middlemen play a role in facilitating the
exchange of goods and services between
producers and consumers.
Consumer Markets
Refer to the environments where individuals
or households purchase and consume goods
and services for personal use.
Government Markets
Government markets, also known as public
sector markets, refer to the economic
environments where government entities
Social Media
Defined collectively as the different forms
of electronic communication (such as
networking websites or blogs) through
which users can create online communities
to exchange information, ideas, messages,
and other content, such as videos or music.
Social Media Platforms
type of software or technology that
allows users to build, integrate, or
facilitate a community, interaction
among users, and user-generated content
Social Media Tools
enables users to communicate with each
other online. Examples include apps,
blog, and comments
Social Media Marketing
uses social media portals to create a
positive influence on consumers or
business customers toward an
organization's brand, goods and services,
public image, or website
E-BUSINESS
E-Business
Electronic business, or e-business, refers to
conducting business via the Internet and has
turned virtual reality into reality.
Content Marketing
Involves creating and distributing relevant
and targeted material to attract and engage
an audience, with the goal of driving them to
a desired action
Blogging Sites
Platform where a host or writer posts
information or opinions on various topics
and followers may respond
GLOBAL MARKETING
Exporting
Marketing domestically produced goods and
services in foreign countries.
Importing
Purchasing foreign goods and services.
Customs Union - establishment of a free
trade area plus a uniform tariff for trade with
nonmember unions
Common Market - extension of a customs
union by seeking to reconcile all
government regulations affecting trade
General Agreement on Tariffs and Trade
(GATT) - international trade accord that has
helped reduce world tariffs
World Trade Organization (WTO) - 164
member organization that oversees trade
agreements among its members, serves as a
forum for trade negotiations, mediates trade
disputes, monitors national trade policies
throughout the world
European Union - made up of 28 member
countries. It works to remove trade
restrictions, permit the free flow of goods
and workers throughout the member nations
and promote human rights
North American Free Trade Agreement
(NAFTA) - accord removing trade barriers
among Canada, Mexico, and the United
States
Franchise - contractual arrangement in
which a wholesaler or retailer agrees to meet
the operating requirements of a
manufacturer or other franchiser
Foreign Licensing - agreement that grants
foreign marketers the right to distribute a
firm's merchandise or to use it's trademark,
patent, or process in a specified geographic
area

TOPIC #4: UNDERSTANDING
BUYERS & MARKETS
Consumer Behavior
Is the process through which the ultimate
buyer makes purchase decisions
Kurt Lewin
A german-american psychologist, known as
one of the modern pioneers of social
psychology in the US.
B=f(P,E)
This statement means that behavior (B) is a
function (f) of the interactions of personal
influences (P) and pressures exerted by
outside environmental forces (E)
Interpersonal Determinants of Consumer
Behavior
"Interpersonal determinants" generally refer
to the factors that influence or shape the
interactions and relationships between
individuals.
● Cultural Influences
● Family Influences
Personal Determinants of Consumer
Behavior
"Personal determinants" refer to the
individual factors or characteristics that
shape and influence a person's behavior,
choices, and overall development.
● Needs and Motives
● Perception
● Attitudes
● Learning
● Self-Concept Theory
BUSINESS-TO-BUSINESS (B2B)
MARKETING
Organizational sales and purchases of goods
and services to support production of other
products, to facilitate daily company
operations, or for resale.
BUSINESS-TO-BUSINESS (B2)
A form of transaction between businesses,
such as one involving a manufacturer and
wholesaler
NATURE OF B2B
In terms of size and number of buyers:
Fewer buyers but each buyer is larger than
others
BUSINESS MARKET DEMAND
Derived Demand
Demand that springs from or is derived
from, a source other than the primary buyer
of a product
Joint Demand
Demand for a product that depends on the
demand for another product used in
combination with it
Inelastic Demand
Demand that throughout an industry will not
change significantly due to a price change
MARKET SEGMENTATION,
TARGETING, AND POSITIONING
Market
Group of people with sufficient purchasing
power, authority, and willingness to buy
Target Market
Specific group of people a firm believes is
most likely to buy its goods and services
Market Segmentation
Division of the total market into smaller,
relatively homogenous groups
4 TYPES OF MARKET
SEGMENTATION
Geographic Segmentation - nations, states,
regions, countries, cities, and neighborhoods
Demographic Segmentation - precise form
of audience identification based on data
points like age, gender, marital status,
family size, income, education, race,
occupation, nationality, and/or religion
Psychographic Segmentation - division of
a population into groups having similar
attitudes, values, and lifestyles
Behavioral Segmentation - buyers are
divided into groups based on their
knowledge, attitude, and use or response to a
product
TYPES OF MARKET AND
POSITIONING
Monopoly - market structure in which a
single seller dominates trade in a good or
service for which buyers can find no close
substitutes
Oligopoly - market structure in which
relatively few sellers compete and where
high start-up costs form barriers to keep out
new competitors
Direct Competition - occurs among
marketers of similar products
Indirect Competition - involves products
that are easily substituted
Time-based Competition - strategy of
developing and distributing goods and
services more quickly than competitors
Positioning - concept seeks to put product
in a certain position or place in the minds of
prospective buyers
Positioning Strategies - products can be
positioned on specific attributes or against
another product class
Product Differentiation - process of
distinguishing a product or service from
others, to make it more attractive to
particular target market
Kinds of Product Differentiation
● Physical Attribute Differentiation
● Service Differentiation
● Personnel Differentiation
● Location Differentiation
Positioning Measurement - perceptual
mapping is a research tool used to measure a
brand's position. Perceptual Map
(PERMAP) is a diagrammatic technique
uses by marketers to visualize potential
customers perceptions and opinions about
products, product lines or brands
MARKETING CHANNEL;
INTERMEDIARIES
Distribution - moving goods and services
from producers to customers. The second
marketing mix variable and an important
marketing concern
2 COMPONENTS OF DISTRIBUTION
● Marketing Channel - an organized
system of marketing institution and
their interrelationships that enhances
the physical flow and ownership of
goods and services from producer to
consumer or business user
● Logistics - process of coordinating
the flow of information, goods, and
services among members of the
distribution channel
Supply chain management - complete
sequence of suppliers and activities that
contribute to the creation and delivery of
merchandise
Physical Distribution - organized group of
components linked according to a plan for
achieving distribution objectives:
1. Customer Service - level of customer
service the distribution activities support
2. Transportation - how the firm ships its
products
3. Inventory Control - quantity of
inventory the firm maintains at each location
4. Protective packaging and materials
handling - how the firm packages and
efficiently handles goods
5. Order Processing - how the firm handles
orders
6. Warehousing - the distribution system's
location of stock and the number of
warehouses the firm maintains
Marketing Intermediaries - organization
that operates between producers and
consumers or business users. Ex. retailers
and wholesalers
Types of Marketing Intermediaries
● Broker & Marketing Agents
● Wholesalers & Resellers
● Retailers
● Distributors
SALES AND TRADE PROMOTIONS
Sales Promotion - marketing activities
that stimulate consumer purchasing and
dealer effectiveness
Trade Promotion - sales promotion that
appeals to marketing intermediaries
rather than to consumers
PRICING DECISION
Pricing Strategy - prices reflect a retailer's
marketing objectives and policies
Markup - amount a retailer adds to the cost
of a product to determine its selling price
Markdown - amount by which a retailer
reduces the original selling price of a
product

Cost Plus Pricing - a practice of adding a
percentage of specified amount or markup to
the base cost of a product to cover
unassigned costs and to provide profit
MARKETING REVIEWER
MARKETING
- Costumer satisfaction
- Responsible for identifying,
anticipating & satisfying customer
requirements profitably.
- Process for creating, communicating &
delivering value to customer.
- Giving VALUE to customers.
UTILITIES
-designing and marketing products thats
and needs of customers
- the want-satifying power of a good or
service.
FOUR TYPES OF UTILITY
FORM
Conversion of raw material into finished
goods and services.
TIME
Availability of goods and services when
consumers want them.
PLACE
Availability of goods and services at
convenient locations
OWNERSHIP
Ability to transfer title to products from
marketer to buyer. Exchange process
activity in which two or more parties give
something of value to each other to
satisfy perceived needs.
5 ERAS OF MARKETING
1. PRODUCTION ERA (1920s)
- Maintain quality of products. “ A
good product will sell itself”.
2. SALES ERA (1950s)
- Salesforce & personal selling,
persuade them to buy.
3. MARKETING ERA (1950s)
- Wider persuasion, satisfying
needs.
4. RELATIONSHIP (1990s)
- Long-term relationship with
individual customers.
5. SOCIAL (2000s)
- Modern way of marketing, social
media sites and internet.
CONVERTING NEEDS TO WANTS
- By focusing on the benefits
resulting from these products,
effective marketing converts
needs to wants.
- It also requires listening to what
consumers want.
AVOIDING MARKETING MYOPIA
MARKETING MYOPIA
Is management’s failure to recognize the
scope of its business.
- Coined by Theodore Levitt
- 1925-2006
- Product-oriented rather than
customer-oriented management
endangers future growth.
TRADITIONAL AND NON TRADITIONAL
MARKETING
TRADITIONAL
- Print Ads
- Broadcast Advertisement
- Direct Mail
- Telemarketing
- Outdoor
- Trade shows & Events
- Public Relations
NON TRADITIONAL
1. Person Marketing
- Designed to cultivate attention of
the target market towards a
person.
2. Place Marketing
- Designed to attract visitor to a
particular area, improve
consumer images to a city and
attract new business.
3. Cause Marketing
- Identification and marketing of
social issue, cause or idea.
4. Event Marketing
- Marketing of sporting, cultural
and charitable activities.
5. Organization Marketing
- Efforts of organizations to
influence others to accept their
goals, receive their services or
contribute to them.
MARKETING
- Meeting needs profitably.
MARKETING ENVIRONMENT
TASK ENVIRONMENT
- includes the immediate actors
involved in producing,
distributing, and promoting the
offering, including the company,
suppliers, distributors, dealers,
and the target customers.
BROAD ENVIRONMENT
- Contain forces that can have a
major impact on the actors in the
task environment, which is why
smart marketers track
environmental trends and
changes closely.
MARKETERS
- is someone who seeks a
response, attention a vote and a
donation form PROSPECTS.
KEY CONSUMER MARKETS
- Global Markets
- Consumer Market
- Business Markets
- Government Market
MARKETS
- Marketplaces
- Marketspaces
- Metamarkets
CORE MARKETING CONCEPTS
 - Need, Wants and Demands
- Offering and Brands
- Target Markets, Positioning and COMPETITIVE ENVIRONMENT
Segmentation
- Value and Satisfaction - Process that occurs in the marketers of
- Marketing Channels directly competitive products.
- Supply Chain
- Marketing Environment
- Competition

MARKETING CONCEPTS
MONOPOLY
Production
A single seller dominates trade in a good
- Mass Production and mass or service for which buyer can find no
distribution close substitutes.

Product OLIGOPOLY

- Quality Innovation Few sellers compete and where high

start-up costs form barriers to keep out
Selling new competitors.

- Unsought Goods and DIRECT COMPETITION

Overcapacity, Force Selling
Occurs among marketers of similar
Marketing products.

- Create, Deliver and Communicate INDIRECT COMPETITION

Value
Involves products that are easily
Holistic substituted.

- considers all the different parts of CONSUMERISM

a business as one single entity
Aids and protects the consumer by
exerting legal, moral and economic
pressures on business and government.
ENVIRONMENTAL SCANNING

P olitical
ETHICAL ISSUES IN MARKETING
E conomy
Bait-and-switch
S ocial
- Lower price, no stock, change to
T echnological expensive option.

E nvironmental False and Deceptive

L egal - Expectation vs reality

Dumping
- penetrating to foreign market into
the lowest price possible
Predatory Competition
- Offers more valuable promo than
competitors
SOCIAL MEDIA
- defined collectively as the
different forms of electronic
communication (such as
networking websites or blogs)
through which users can create
online communities.
TWO MAIN CATEGORIES
1. Social Media Platforms
- type of software or technology
that allows users to build,
integrate, or facilitate a
community, interaction among
users, and user-generated
content.
2. Social Media Tools
- enables users to communicate
with each other online.
SOCIAL MEDIA MARKETING
- It uses social media portals to
create a positive influence on
consumers or business
customers.
ELECTRONIC BUSINESS or E-BUSINESS
- Refers to conducting business via
the Internet and has turned virtual
reality into reality.
CONTENT MARKETING
- Involves creating and distributing
relevant and targeted material to
attract and engage an audience,
with the goal of driving them to a
desired action.
BLOGGING STATES
- A platform where a host or writer
posts information or opinions on
various topics and followers may
respond.
GLOBAL MARKETING
EXPORTING
- Marketing domestically
produced goods and services
in foreign countries.
IMPORTING
- Purchasing foreign goods and
services.
CUSTOMS UNION
- Establishment of a free-trade area
plus a uniform tariff for trade with
nonmember unions.
COMMON MARKET
- Extension of a customs union by
seeking to reconcile all
government regulations affecting
trade.
GENERAL AGREEMENT ON TARIFFS
AND TRADE (GATT)
- International trade accord that
has helped reduce world tariffs.
WORLD TRADE ORGANIZATIONS (WTO)
- A 164-member organization that
oversees trade agreements
among its members, serves as a
forum for trade negotiations,
mediates trade disputes, monitors
 national trade policies throughout
the world.
EUROPEAN UNION
- Made up of 28 member countries.
It works to remove trade
restrictions, permit the free flow
of goods and workers throughout
the member nations and promote
human rights.
NORTH AMERICAN FREE TRADE
AGREEMENT (NAFTA)
- Accord removing trade barriers
among Canada, Mexico, and the
United States.
FRANCHISE
- Contractual arrangement in which
a wholesaler or retailer agrees to
meet the operating requirements
of a manufacturer or other
franchiser.
FOREIGN LICENSING
- Agreement that grants foreign
marketers the right to distribute a
firm’s merchandise or to use its
trademark, patent, or process in a
specified geographic area.
CONSUMER BEHAVIOR
- is the process through which the
ultimate buyer makes purchase
decisions.
B=f(P,E)
B- Behavior
P - Pressures
E - Environmental Forces
B=f(I,P)
B - Behavior
I - Culture, Friends, Classmates,
Coworkers and Relatives
P - Attitudes, Learning and Perception
INTERPERSONAL DETERMINANTS OF
CONSUMER BEHAVIOR
- Cultural Influences
- Family Influences
PERSONAL DETERMINANT OF
CONSUMER BEHAVIOR
- Needs and Motives
- Perceptions
- Attitudes
- Learning
- Self-Concept Theory
BUSINESS-TO-BUSINESS (B2B)
MARKETING
- Organizational sales and
purchases of goods and services
to support production of other
products, to facilitate daily
company operations, or for
resale.
BUSINESS TO BUSINESS (B2B)
- A form of transaction between
businesses, such as involving a
manufacturer and wholesaler or a
wholesaler and a retailer.
BUSINESS MARKET DEMAND
DERIVED DEMAND
Demand that springs from, or is derived
from, a source other than the primary
buyer of a product.
JOINT DEMAND
Demand for a product that depends on
the demand for another product used in
combination with it.
INELASTIC DEMAND
Demand that, throughout an industry,
will not change significantly due to a
price change.
MARKET SEGMENTATION
MARKET
- Group of people with sufficient
purchasing power, authority, and
willingness to buy.
TARGET MARKET
- Specific group of people a firm
believes is most likely to buy its
goods and services.
MARKET SEGMENTATION
- Division of the total market into
smaller, relatively homogeneous
groups.
4 TYPES OF MARKET SEGMENTATION
1. GEOGRAPHIC SEGMENTATION
- Dividing the market into different
geographic units.
2. DEMOGRAPHIC SEGMENTATION
- a precise form of audience
identification based on data
points like age, gender, marital
status, family size, income,
education.
3. PSYCHOGRAPHIC SEGMENTATION
- Division of a population into
groups having similar attitudes,
values and lifestyles.
4. BEHAVIORAL SEGMENTATION
- Buyers are divided into groups
based on their knowledge,
attitude, and use or response to a
product.
MARKETING CHANNELS AND SUPPLY
CHAIN MANAGEMENT
DISTRIBUTION
- moving goods and service from
producers to customers.
2 COMPONENTS OF DISTRIBUTION
1. MARKETING CHANNELS
- also called a channel distribution,
is an organized system of
marketing institutions and their
interrelationships.
2. LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
Logistics - Process of coordination the
flow of information, goods and services.
Supply Chain - management complete
sequence of suppliers and activities that
contribute the creation and delivery of
merchandise.
PHYSICAL DISTRIBUTION
- Is an organized group of
components linked according to a
plan for achieving specific
distribution objectives.
1. Customer Service - a level of customer
service the distribution support.
2. Transportation - how the firm ships its
products.
3. Inventory Control - quantity of
inventory the firm maintains at each
location.
4. Protective packaging and Materials
Handling - how the firm packages and
efficiently handles goods in the factory,
warehouse and transport terminals.
5. Order Processing - how the firm
handles orders.
6. Warehousing - the distribution
system’s location of stock and the
number of warehouses the firm
maintains.
MARKETING INTERMEDIARIES
- an organization that operates
between producers and
consumers or business users.
TYPES OF MARKETING INTERMEDIARY
RETAILER
- The marketing intermediaries in
direct contact with ultimate
consumers.
WHOLESALERS
- Takes title to the goods it handle
and then distributes these goods
to retailers, other distributors, or
business or B2B customers.
- BROKERS AND MARKETING AGENTS
- DISTRIBUTORS
PRICING STRATEGY
- Prices reflect a retailer’s
marketing objectives and policies.
MARKUP
- Amount a retailer adds to the cost
of a product.
MARKDOWN
- Amount by which a retailer
reduces the original selling price
of a product.
COST PLUS PRICING
- The most popular method of
pricing
- A practice of adding a percentage
of specified amount or markup-to
the base cost of a product to
cover unassigned costs and to
provide profit.
SALES PROMOTION
- Stimulate consumer purchasing
and dealer effectiveness.
TRADE PROMOTION
- Sales promotion that appeals to
marketing intermediaries rather
than to consumers.