OVERVIEW

MARKETING DEFINED
 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 (Kotler & Armstrong,2008)
CORE MARKETING CONCEPTS
1. Needs, Wants, Demands

NEEDS-are states of felt deprivation, personal

requirements that motivate behavior, and things that
people cannot live without.

WANTS-are the form taken by human needs as they

are shaped by culture and individual personality.
Cont.
DEMANDS-when backed by purchasing power, or the
ability to buy, wants become demands

2. PRODUCTS-anything offered for sale to satisfy a need

or a want.
Tangible products are called goods
Intangible products are called services.
 Marketing myopia-losing sight of underlying customer
needs because of too much focus on the product
3. VALUE, SATISFACTION, QUALITY
Customer value-the difference between the value of
buying, owning, and using the product, and the cost of
the product.

Customer Satisfaction-refers to the difference between

the buyers expectation and the perceived performance
of the product.
 Quality-is what the customer says it is.

4. EXCHANGE, TRANSACTIONS, RELATIONSHIPS

Exchange-the act of obtaining a desired object by
offering something in return. Exchange is said to be
the core concept of marketing.
Transaction-an exchange or trade of values between
two parties.

Relationships-building strong economic and social ties

by promising and consistently delivering superior
quality products at reasonable price.
5. MARKETS-refers to a set of actual and potential
buyers of a product who have a common need or want
that can be satisfied through exchange.
Market Segmentation
The process of breaking down a large market into
smaller manageable units

3 Ways of segmenting the market

a. Demographic Segmentation-based on population
characteristics like age, gender, income, occupation,
location, education
Lifestyle or psychographic segmentation-includes
variables like, interests, activities, opinions,
personality, lifestyle

Benefit segmentation-variables include product

durability, fabric, fashion-sense, design or scent, low
price, and image.
Target Market
 The Chosen Market Segment is called the target
market
Marketing Mix
 product
 place
 promotion
 price
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
Philosophies
1. The Production Concept-holds that given a wide array
of products in the market consumers will prefer to buy
products that are widely available and highly
affordable.

2. The Product Concept-holds that consumers favor

products that offer the best quality, performance, and
innovative features.
3. The Selling Concept-this concept holds that
consumers will not buy enough of the company’s
products unless the company undertakes an extensive
and large-scale selling and promotional effort.
4. The Marketing Concept-this concept holds that
achieving the goals of an organization depends on
knowing the needs and wants of the target market and
delivering the desired satisfaction more effectively and
efficiently than others.
5. The Societal marketing concept-this concept holds
that organizations must not only study and satisfy the
customers needs and wants but also deliver superior
value in a way that maintains or improves the
customer’s as well as the society’s well being.
Social Responsibility in Marketing
 The Responsibility that companies have towards
society at large, in particular, to conduct their activities
and use their profits in ways that are of benefit to
society.
CHAPTER 2

MARKETING ENVIRONMENT
AND SWOT ANALYSIS
 Environment-consist of forces that are expected to
affect company operations.

1. The Microenvironment
a. Management-pertains to the organizational set up
(vision, mission, philosophy, policies, programs)
b. Marketing-includes the marketing program of the
company (marketing mix)
c. Finance-includes the company resources (income
statement, balance sheet, investments)
d. Production and operation-includes aspects of
manufacturing or operations (raw materials, machinery
and equipment, scheduling, delivery)
e. Human resources-pertains to the people in the
organization(training and development, benefits )
2. The Macroenvironment

a. Economic environment-this environment includes

forces as balance of trade, balance of payments, GNP,
GDP, per capita income

b. Sociocultural environment-pertains to people and

their culture (education, customs
and traditions, perception, cultural values)

c. Politico-legal environment- politico pertains to

government and legal pertains to law (elections,
political stability, presidency, peace and order
situation)

d. Technological environment-refers to the

the advancement of science and technology
(includes new inventions and discoveries, research
and development, Information tech)

e. Natural environment-includes typhoons,

earthquakes, pollution, ozone depletion.
SWOT ANALYSIS
1. Strength-is something that a company is good at
doing. It belongs to the internal environment and is
expected to affect company operations in a positive
manner.
(good labor-management relations, good reputation,
superior financial resources)
2. Weakness-something that a company lacks. It is a
quality that puts the company at a disadvantage (poor
product quality, uncooperative workers, low employee
morale)

3. Opportunity-is a factor in the external environment

that is expected to work favorably towards company
operations
(High population growth, improvements in the economy,
increase in purchasing power)

4. Threat-is a factor in the external environment that is

expected to have a negative effect on company
operations.
 Examine the following situations and state if it is a
strength, weakness, opportunity, threat or no effect to
the company.

1. The Department of Health has undertaken a very

aggressive campaign against cholesterol.
2. Your company has excellent management labor
relations.
3. The government has announced its plans of lowering
prices of beef by 1 .8 % next month.
4. There is a growing number of working women in the
Phils. Based on the latest statistics.
5. There is a very stiff competition among fast food
chains in the Phils.
6. As compared to your competitors, your prices are 10%
lower
7. A new equipment which has the ability to decrease
cholesterol content in food by as much as 20% has
been invented in Germany
8. Most customers complain of your failure to maintain
cleanliness of your comfort rooms.
9. You have limited parking space

10. Business taxes will increase by 3% next year.

 Assignment
 Identify a real company and perform SWOT analysis
by giving three items for each category