Chapter 1 – The Value of Marketing

The Value of Marketing
Tackles what marketing is all about
Marketing
Is a social and managerial process
Kotler and Armstrong
Author of the book ” Principles of Marketing”
Needs
refers to situations in which something is missing and has to be satisfied
Wants
the preferred products of an individual that will satisfy his needs
Abraham Maslows
Hierarchy of needs
Physiological needs
bottom, need for food, clothing and shelter
Safety and security needs
things that make one feels secured and safe like owning a house, insurance
Social needs
one sense of belongingness to group or association
Esteem needs
individuals needs or strong desire to be recognized to his efforts and accomplishments
Self actualization needs
the last level of hierarchy needs, involves the continuous improvement of ones talent, skill and knowledge
Demand
it involves ones need or want for products backed up by his capacity to purchase a product
Exchange and Transaction
involve the presence of two entities
Market
refers to people patronizing or already using the company products or availing its various services
refers to both the actual and potential buyers
2 Big categories of Market
Consumer market
Industrial Market
Consumer Market
Purchases products for its own personal consumption
Industrial Market or business market
purchase products in order to produce another product
Product
is anything that a buyer buys. it is anything that a company offers to satisfy the markets needs or wants
Intangible Product
services rendered by a doctor, lawyer, hairstylist
Service
any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership or anything
Physical good
Material Eaten
Marketing Mix
also known as the four P’s in Marketing
Meaning of 4 P’s
Product
Price
Place
Promotions
Product
what producers sell and what the market buys
Price
refers to the amount of money paid by the customers in order to acquire the product or to avail the service offered
Place
deals with the distribution of products as well as the different channels involved in making the products available to the people
Promotions
means for firms to communicate or inform the market about their products using various mediums like advertising, sales promotions, personal selling and public relations.
Product concept or philosophy
product performance is given priority
Production Philosophy
companies that value the importance of the availability of products at all times with reasonable price
selling philosophy
firms hire marketers or sales people to do aggressive marketing for the firms products or services
Societal Marketing Concept
look first into the welfare of society in general and deliver their offering in a way that satisfies their market more effectively and efficiently than their competitors
Marketing Concept
determine first the needs and wants of their potential market then device ways, products or services to satisfy these needs and wants
strategic planning
a process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities
Mission Statement
stipulates what the firm values and its reason for existence
Business Portfolio
collection of business and products that make up the company follows includes the current business collection and is the basis for deciding which among the the products offered by the company will be phased out or will receive assistance in terms or investment
Strategic Planning
involves deciding on marketing strategies that will help a company achieve its overall strategic objectives
Marketing Plan
includes the executive summary current marketing situation, environmental analysis, marketing objectives, marketing strategies, action programs, budget and controls
Mission
The company’s statement of purpose / wants to achieve
Strategic Business unit or SBU
has a distinct mission, manager, own competitors
Market Penetration
strategy for a company growth is achieved by increasing or adding sales of current products to existing or current market
Market Development
is a strategy for company growth where new market is identified or developed for existing or current company products
Product Development
refers to the strategy used by companies to offer new or improved products to existing or current market segment
Diversification
growth strategy where companies acquire businesses outside their existing or current products and markets