Principles of Marketings =~fam) PRINGIPL SS OIF ES MARKETING (42) ovINTRODUCTION Many people think that marketing is just about selling or advertising. Certainly this elements of marketing are important, yet in this SHS manual will see that there is so much more in marketing . The manual will help the student understand why the clent's orientations of marketing is so important in today's corporation. Companies that try to satisfy their clients are usually those that are most inventive, most lucrative and most durable and tough amongst economic distresses. In this manual , an overarching marketing framework used in every chapter and shows how all the pieces fit together. This manual intended to be practical , very short and design for beginners in marketing This manual will help the Senior High School students to understand the basic principles of marketing in a simplest form. The author hopes that this manual serve its purpose to the students who take principles of marketing AuthorTable of Contents Introduction. . 7 — i Unit 1 Marketing Principles and Strategies Definition of 1 Marketing......... ysavenesessusay enestesseysciessesssasese . Marketing Concept. 2 Era’s of Marketing, 4 Review Learning, 7 Unit It (CUSTOMER RELATIONSHIP: CUSTOMER SERVI ICE Background .... . 10 Transaction based Marketing . esse " Elements of Relationship Marketing a 12 Components of Customer Service. 15 Review Learning. 7 Unit Ii | Market Opportunity analysis and consumer analysis Strategic Marketing 20 Marketing Environment........ . 21 Macro Environment ........ 23 Marketing Research......... 25 Consumer and Business Markets...... 27 Business Markets. 30 Review Learning 35 Unit lV Developing marketing mix Marketing Mix Define. .... 38 Product. 39 Price ........ — — 41 Pace / Marketing Channels - 42 Promotion .. J. 46 Review Learning, . | 54 Unit V is the marketing effort Market Analysi 53 Situation Analysis 54 SWOT Analysis. 56Developing a Marketing Strategy. ‘The Marketing Plan. 62 Review Learning 65 Unit VI | Presentation and workshop of marketing plan "1 Rubric‘About the Author Dindo C. Inso is a marketing professor of Our Lady of Fatima Universi cin ing he's Doctor in Business Administration in the same university. He OL ‘degree in Our Lady of Fatima University Graduate School and me nagement in Jose Rizal University - Cum Laude. His industry backgt 0 being a plant manager of a multinational construction company and a nager of a Filipino owned medical company where he handled i brands. He was also a former Marketing Specialist of a computer coll yam Chair of General Education Department of Interface Computer Branch before joining OLFU College of Business and c Ae ‘marketing and business consultancy in a retail company, college and a propatty consultant at the same time. An entrepreneur who love to share his entrepreneurial knowledge through conducting various seminar, sales training in various colleges and universities in Metro Manila.Unit | Marketing Principles and Strategies LEARNING OUTCOMES: The leamers are expected to 1. Define and understand and understand marketing 2. Describe the traditional approaches to marketing. 3._Discuss the goals of marketing. Businesses in the 21* century is very much different thousand years ago. The evolutions of business and the development of the economic activities led to the adaptions of new ways to satisfy the needs and unending wants of customers. Customers consumptions become the major concem of today's business. Satisfying needs and wants of customer, is now the comer of every business. Considering that it is not easy to satisfy the costumers now a days. It is becoming more complex than it was before. Creating goods and services is one thing , making sure that they are bought is another story. To facilitate the latter , a new concept in the 21s century has been develop and improved to fit the new trends of millennia’s and this is called marketing. There are many problems that the customers encountered in their daily lives , If this are not properly address people will trapped and peoples lives becomes boring. To properly address needs and wants of customers business now a days should take and consider activities that is very much necessary to satisfy the needs. Boone and Kurts in Principles of Marketing 2013 enumerate the following activities that a marketing specialist should look into: PRINCIPLES OF MARKETING~ Identifying customers needs; + Designing products that meet those needs; - Communicating information's about those goods and services to prospective buyers, - Making the items available at times and places that meet customers needs; - Pricing merchandise and services to reflect costs , competition and customer's ability to buy; and Providing the necessary service and follow up to ensure customer satisfactions after the purchase. What is marketing There are thousands of definition of what marketing is. If you have to ask five person to define marketing , surely you will get five different answer. Simply because you can define marketing in different ways. Marketing is applicable in different forms of business organization be a profit organizations like , Jollibee food Corps, SM Group of companies , Apple , ‘Samsung and Microsoft . And even for non profit organization marketing ‘works. Boone and Kurs in Principles of Marketing 2013 define Marketing as an organizational functions and set of processes for creating , communicating and delivering value to customers and for managing costumer relationship in ways it benefits the organizations and its stake holders. Marketing Concept The goals of marketing is basically aligned with the goals of business, which is earning profit on a short term and long term basis . Retum on investment in a short term possible is always what the company wants . Research proves that this may always possible when costumers patronize the firms product and services. Long term costumer commitment and patronage is most preferred by the business owners but this can only oo PRINCIPLES OF 2 MARKETINGpossible if the product and or services surpass the standard of customer. Meeting customers satisfactions means life time commitment to the brand. - The marketing concept calls for identifying the needs of your target customer first before any strategy being develop. When a company identified the needs and wants of customers , the business has a good chance of becoming successful in the market place. Because it is more wise for the company to understand the needs of the customers before making any product or services. - There several concept used in marketing that in modem times company adopted. But in todays business , the modem time businesses are expected to adopt a single concept even if itis tried and tested. Various concept are the following: 1.Product Concept ~ this concept used the in many business now a days. Business in this concept believes that a company must look for interested customer's right after producing goods or services. This is applicable for ‘many real estate developer business today. 2.Selling Concept — this concept explain that company must first produce product and later on create selling strategy that fit to convince target market. 3.Marketing Concept — the concept believe that its best 10 define first the target market , entity their needs and wants , and create product that sults the needs of the desired market. The concept discuss above is actually a product of marketer mind , enhanced and develop in order to provide quality goods and services to the cater the needs of the target market. The five eras in the history of marketing are as folows PRINCIPLES OF 3 MARKETINGFIGURE 1.2 Five Eras of Marketing History = : ae ws = ar) a a Figure 1.1 Five Eras of Marketing History 1,The Production Era - before 1925 , most firms in highly develop countries the like of western Europe and Northem America focused on mass. production where this country produces a lot of goods and services in good quality. The attitude of this era conquer that high quality product basically sell itself. For example , High end brand like Louis Vuitton , Zara , Mango and a lot more can send their product because of their known high standard quality. This era covers the period of the Industrial Revolutions until 1928 when the firm was concentrated on creation of a few particular item for consumption. 1.The Sales Era — As production techniques in the United State and Europe become more sophisticated output grew from 1920s into early 1950's . Companies with sales orientations assumes that customers will resist PRINCIPLES OF MARKETING‘Marketing Era — period covering 1950 to 1960 , this era 's_that marketing activities , actions and implementations should one department. This department is known as marketing department. 4.Relationship Era - this era established the importance of relationship to customers. Customers relationship is the key to a better business Performance. This year , company consider relationship to customers in their marketing strategy. A 5.Secial Era — around 1975 , companies are nsic importance of giving back to the society. Soci to take part of marketing strategies of Non Traditional Marketing Oo Person marketing — Efforts to cultivate the attention, interest, and preferences of a target market toward a person Example: Celebrity endorsements , Many Pacquiao , Lea Salonga PRINCIPLES OF MARKETINGPlace marketing Efforts to attract people and organizations to a particular geographic area. Example: Quiapo Church , Boracay , Luneta , Palawan Boho! Hundred Island , Chocolate hill , Kalangaman Island in Leyte Cause marketing Identification and marketing of a social issue, cause or idea to selected target markets. Many profit-seeking firms link their products to social causes Event marketing - Marketing of sporting, cultural, and charitable activities to selected target markets Example: Celebrity Concert , Fun Run , Symposium , Trade Fair Fashion Show etc. Organization marketing - Intended to persuade others to. ‘THE MARKETING PROCESS: Situation Assessment it involves comprehensive research into the market, place and customers to be served. To do this, the external aspects of the business situation (customers and competitors) as well as the internal aspects of the situation (your operation's present and future capabilities) must be analyzed. Marketing Strategy — it involves determining how to approach the identified customer needs and wants and how to produce products and services to satisfy them. This includes two (2) important elements: a, Selection of the target markets ~ people you intend to pursue as customers PRINCIPLES OF MARKETINGb. Value proposition to each target market — an unambiguous description ‘of the benefits the target market will receive by purchasing your products/services. Marketing Mix Decisions — After getting the big picture and goals, this is the step that would involve making detailed decisions about the marketing mix (4 3). It would include formulating short-term decisions and marketing pian. Implementation and Control - As the world is always changing, one must see to it to adjust or revise the plans as they are being implemented. By doing this, it involves monitoring execution and making changes to promotions or perhaps to the products and services, monitoring results and making better plans next time or evaluating successes and failures PRINCIPLES OF ’ MARKETINGPRINCIPLES OF NARKETINGReferences: - Medina , Roberto 2015 “Principles of Marketing” REX bookstore - Boone & Kurtz 2015 “ Principles of Marketing “ Philippine edition , Cengage learning - Kotler P ( 2015) “ Principles of Marketing “ 14" edition Pearson PRINCIPLES OF MARKETINGUni ustomer Relationship: Customer Service ‘COMES: The leamers are expected to: Define “Relationship marketing” Explain the Value of Customer, Identify and describe :relationship development strategies, lustrate successful customer service strategy inthe Philippine business enterprise Bene Background As marketing change through the 21* century severdl'ché ing place the way firms inter act with one another. The tra jew of marketing as simply buyers and sellers inter actions or simpl fansaction based marketing. Transaction based marketing a long practice even during the time of earliest people in the Philippifies. ple transact business one at a time. They sell product ar and later transfer to another place without even getting acq ir customer no emphasis on the relationship of customer. ‘on attracting customers and closed deals. Over the years , becomes transpired toa good relationship . Marketers are becoming maré’and more sophisticated. So more and more strategies must be develop to meet the demand of the new generations. Relationship marketing gives a company 2 new opportunities to gain edge to other competing company. A good relationship means , from a new customer to purchaser to a loyal customers, Relationship building starts the moment the company engage the customers by identifying its needs and wants. Once identified, company will create high valued, affordable and good quality products. PRINCIPLES OF 10 MARKETING‘Transaction-Based Marketing to Relationship Marketing ‘Transaction based marketing - is a business tactic that emphases on lone, “point of sale" trades. The importance is on get the most out of the adeptness and dimensions of spectfic sales rather than mounting a cooperation with the buyer. Transaction based marketing strategies focused on attracting consumers. The goal was to identify prospects, convert them to customers, and complete sales transactions. But today's marketers realize that, although it remains important, attracting new customers is truly an intermediate step in the marketing process. Marketing efforts must focus on establishing and maintaining mutually beneficial relationships with existing customers. These efforts must expand to include suppliers and employees, as well The concept, called relationship marketing. refers to the expansion, evolution, and upkeep of long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefits. It introduces the scope of external marketing relationships to include suppliers, customers, and referral sources. In relationship marketing, the term customer takes on anew meaning. ‘The employee of the organizations serves as the first customer within the organizations. The people within the organizations are consider as the customers of the organizations. They must observe the same high standard of customer satisfactions are consider as external customers of the firms. Relationship marketing recognizes the critical importance of internal marketing to the success of external marketing plans. Programs that improve customer service inside a company also raise productivity and staff morale, resulting in better customer relationships outside the firms. Shift away from production-oriented marketing: and it give emphasis on the following: Individual sales and transactions Limited communication No ongoing relationship - Limited in some markets, such as residential real estate PRINCIPLES OF " MARKETINGThis paradigm shift below discuss the buyer and seller interactions. The paradigm established the relationship and inter action of buyer and seller in the market place. Forms of Buyer-Seller Interactions from Conflict to Integration = Se cs asec ont Figure 2: Buyers and Seliers Relationship Relationship Marketing — focus on long term relationship with customers , emphasizing on retaining customers thru data based. It relies on data base that records customer records on customers taste and preferences and fe style. According to Boones and Kurtz (2013) there are six basic elements of relationship marketing Elements of Relationship Marketing: Be relevant. When possible, customize or even contextualize your communications to personalize your audience experience. in a media world of infinite websites, customized social media profiles, and 1,000+ TV channels, audiences expect messaging tailored to their lives and interests. Think list segmentation, variable content, web user profiles. PRINCIPLES OF 2 MARKETINGProvide value Give away some of your secrets. Provide the answers to some of your audience's most pressing questions. By providing value, you can gain credibility, become the authority, or go-to resource on the subject. Welcome dialogue Listen to your community members and respond to what was said. Dialogue helps to establish relationships and engage your communities. Be responsive Respond to feedback (both negative and positive), even if you're simply letting your audience know that you've heard what they sai Often, you can turn a negative experience into a positive one (ask me about my Sallie Mae website experience). Be respectful If someone opts out of your communications, make the request process easy and transparent. And see #4. Respond respectiully to feedback. Be authentic. Authenticity resonates with your audiences, and authentic communications will motivate stakeholders to become more engaged. There are three levels of Relationship Marketing as stated below: Characteristics Level 1 Level 2 Level 3 Primary bond Financial Social Structural Degree of customizationLow Medium ‘Medium to High Potential for sustained Advantage Low Moderate High PRINCIPLES OF MARKETINGFirst Level: Focus on Price -Marketers must consider focusing in price of product that is offer for the chosen market. Price is the most superficial level, least likely to lead to long-term relationships. Marketers rely on pricing to motivate customers because competitors can easily duplicate pricing benefits Second Level: Social Interactions - Customer service and communication are key factors . Example: A dress shop conduct a special fashion show. Third Level: interdependent Partnership - Affiliation changed into essential changes that ensure partnership and interdependence between buyer and seller . How to keep Customers The task of marketer in the company is to keep the current list of customer. To be able to maintain its market share company should keep the customer in their list. The most painful part of the company is seeing your customers serving by your competitors. Retaining customers is more profitable than losing them. Below are the list of possible solution to keep your customers. To keep customer company should practice the following: - Customer churn - Customer tumover is expensive for a company that why the firms should generate more profits with each additional year of a relationship Frequency marketing - a marketing programs that entice customer do repeat purchases. Example: Reward Programs , Contest , Raffle promos Affinity marketing - Solicits responses from individuals who share common interests and activities PRINCIPLES OF 4 MARKETINGsving Lost Customers tomers leave for a variety of reasons according to ( Kurts and e 2015): + Boredom + Move to a new location + No longer have a need for the product + Prefer competing products Essential Components of an Excellent Customer Service AN) Customer will say time and again that they are willing to pay. “yy exchange of excellent quality service Megan Totka ( 1, Prioritize each customer Customer is the life blood of the conan CY reason 0 businesses exist. I's. the job of the busin <> customers are happy with their experience. The business defend on the customers experience. 2. Strive toh Reputati portant factor of customers choice of their provider. More sea thasing product and service due to company's reputations ° service. In doing so , focus more on building good reputations to ir client. 3. Apologize when needed Customer service failure is an avoidable circumstances in the business operations especially in the service business. However, business failure can be minimize if not eradicated in some ways. It's okay to make mistakes after all we are all human. However, when the business messes up make sure to apologize for the rare event. PRINCIPLES OF 15 MARKETING‘Always remember to own the mistakes instead of blaming elsewhere, and make sure not to do it again. 4. Be reachable It is more important that the customers can easily reach you when they need your product or services. Set up an email address , facebook account , twitter account .24 hour help desk and on line support system. Empower your ‘employee to engage more on customer satisfactions. 5. Focus on delivering a consistent experience Excellent customer service involves interactions that are dependent on employees who can adjust themselves to the personality of their customers. ‘The way you take care of your customers will ater the perception they have towards a business. Place a strong emphasis on making your customers happy from their first contact with your business throughout their journey. PRINCIPLES OF 16 MARKETINGPRINCIPLES OF NARKETINGPRINCIPLES OF NARKETING2. Name at least one owner of a company that is based here in the Philippines and tell to the class their success stories. References: - Medina , Roberto 2015 “Principles of Marketing” REX bookstore + Boone & Kurtz 2015 “ Principles of Marketing “ Philippine edition , cengage learning - Kotler P ( 2015) “ Principles of Marketing “ 14t" edition Pearson PRINCIPLES OF MARKETINGEi] ly, NO ee Opportunity Analysis and Consumer Analysis Unit Ill LEARNING OUTCOMES: The leamers are expected to 4. Distinguish between strategic and marketing planning in terms of objectives and process. 2. Analyze the elements of macro and micro environment and their influence to marketing planning & 3. Describe the customer and business markets \ 4. Differentiate the buying behavior and decision maki individual’ household customer versus the busi “cy (organizational)customer 3. Identify and segment market for a produc 6. Select the appropriate ak its positioning In a layman's term. ‘an action in order to meet the specific goals of the company ay the worth you use to reach the goal. In business. a strategy is ive @Oal, such as increasing sales or market share or creating a for your industry. Tactics for creating an image or brand might include Price to establish you as affordable or high-end. When creating marketing plans, start with broad strategies and support them with specific tactics. o usit Strategic Marketing Strategic marketing consists of selling your product in such a way that you achieve a goal. Goals can include increasing sales, revenues, market share, segmenting the market or PRINCIPLES OF 20 MARKETINGcreating a new brand or position in the marketplace. An example of a marketing strategy would be to maintain your existing revenues with less advertising or using fewer locations. Even though strategic marketing goals might be conceptual, try to make them as specific as possible. For example, instead of setting a goal of increasing sales, set a goal of increasing sales by a certain percentage or among a specific market segment, such as women, seniors or parents. Part of strategic marketing includes adjusting your price, position and actual product or service to help you achieve your goals. Tactical Marketing Once you have goals, including specific strategies for achieving your goals, determine how you will implement your strategies. If you want to increase your revenues, one tactic might be to raise your prices in conjunction with rebranding a product or service as upscale. If you want to increase market share among health- conscious consumers, you might start sponsoring sporting events or advertising in health and fitness magazines. The Marketing Environment + The marketing environment consists of actors and forces outside the organization that affect management's ability to build and maintain relationships with target customers. + Environment offers both opportunities and threats. + Marketing intelligence and research used to collect information about the environment. Includes: + Microenvironment: actors close to the company that affect its ability to serve its customers. + Macroenvironment: larger societal forces that affect the microenvironment. + Considered to be beyond the control of the organization. ‘The Company’s Microenvironment + Company's Internal Environment: — Areas inside a company. SS PRINCIPLES OF 2 MARKETING— Affects the marketing department's planning strategies. - All departments must “think consumer’ and work together to provide superior customer value and satisfaction. Actors in Micro environment Figure 3: Actors in Micro environment ‘The Company's Microenvironment + Suppliers — Provide resources needed to produce goods and services. = Important link in the “value delivery system.” — Most marketers treat suppliers like partners. + Marketing Intermediaries: — Help the company to promote, sell, and distribute its goods to final buyers + Resellers + Physical distribution firms PRINCIPLES OF 2 MARKETING+ Marketing services agencies + Financial intermediaries + Customers: — Five types of markets that purchase a company’s goods and services + Competitors: — Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes — Company must gain strategic advantage against these organizations + Publics: — Group that has an interest in or impact on an organization's ability to achieve its objectives ‘The Macro environment + The company and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats tothe company. Companies Macro Environment Figure 4: Macro Environment PRINCIPLES OF 23 MARKETINGThe Company’s Macro environment: = Demographic — The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. — Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity. Economic Environment Consists of factors that affect consumer purchasing power and spending patterns. This will affect the company marketing strategy, performance and status. Income Distribution — Upper class - Middle class = Working class — Underclass Natural Environment ~ Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. This is also consider as one of the factors to consider in marketing, » Technological Environment - Most dramatic force now shaping our destiny. - Changes rapidly. - Creates new markets and opportunities. - Challenge is to make practical, affordable products. + Safety regulations result in higher research costs and longer time between conceptualization and introduction of ~ Political @Atonment - Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society. PRINCIPLES OF 2 MARKETINGCultural Environment (\ oe Marketing Research Marketing research —" /s a Process that identifies and defines marketing opportunities and problems, monitors end evaluates marketing actions and performance, and communicates the findings and implications to management.” Kurtz and Boone (2013) tions and other forces that affect a society's basic ‘S, perceptions, preference, and behaviors. lefs and values are passed on from parents to children and are ced by schools, churches, business, and government. SF itary natefs and values are more opento change Steps in Marketing Research Defining the problem and the research ot “yy Developing the research plan Implementing the research plan oe 8 4d. Interpreting and reporting th Defining the problem and rch objectives 3 types of Objectives g, a iminary information that will help define the problem and sugges ese st oe describe the size and composition of the market. ual- to test hypotheses about cause-and-effect relationships Developing the research plan Determining specific Information Needs it answer the WH , question - What features should the product offer? + How should the new product be priced? + Where should the product be made available? PRINCIPLES OF MARKETINGStructured surveys- Use formal lists of questions asked of all respondents in the same way. + Direct approach- Researcher ask direct questions about behavior or thoughts. Ex. Why don't you eat at Jollibee? + Indirect Approach- Ex. What kind of people eat at Jollibee? Unstructured surveys- Let the interviewer probe respondents and Quide the interview according to their answers. ‘Advantages of Survey Research: - Flexibility — it can be used to obtain many different kinds of information in many different marketing situations - Provides Information more quickly and ata lower cost than can be ‘obtained by observational and experimental research Disadvantages: - _Limitations- some people are unable to answer questions. - Questions asked by an Unknown interviewers about things they consider private - Respondents may answer survey questions even when they don't know the answer. Experimental Research - Is the experiment that is well designed and executed. Research and marketing managers can have confidence in the conclusions. - Best suited for gathering casual information Consumer and Business Markets saw Consumer market are individual customer who has purchasing power. Usually Purchase consumer good from their chosen channels for direct consumptions. On the other hand business markets includes businesses who purchase product (raw materials) to produce another product Consumer Market Influence by the following PRINCIPLES OF 2 MARKETINGa. Social Factors b. Cultural Factors . Personal Factor - Culture is the fundamental determinant of a person's wants and behaviors acquired through socialization processes with family and other key insttutions. Characteristics of Social Classes + Within a class, people tend to behave alike + Social class conveys perceptions of inferior or superior Position + Class may be indicated by a cluster of variables, (occupation, income, wealth) + Class designation is mobile over time Figure 5; Social Factors Social Roles — consumers choice of product or services depending on his/her status in the society. What degree of status is associated with various occupational roles? Family - influences for consumer market is high especially in our country wherein we value family decisions. PRINCIPLES OF 28 MARKETINGStatus - consumers purchase product base on his status in the society. ‘Symbolic product may bring a certain status to a consumer or even to the image of the company. Reference group — are certain group that consumer maybe base his/ her purchases of what this group possess . Personal Factors a Figure 6, Personal Factor Consumer Market Decision Model A step by step decision process of consumer upon buying product and or services. ! Problem Recognition Informatign Search Evaluation] Purchase PRINCIPLES OF Decision MARKETING1 Post Purchase Behavior Figure 7 :Consumer Decision Model tions that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. Characteristics of Business Markets = Sales in the business marketfar exceed sales in consumer markets. + Business markets differ from consumer markets in many qW + Marketing structure and demand + Business markets > + have fewer but larger + Business customer + are more concentrated . is different id is id is price inelastic Oo = Demand fluctuates more, and changes more quickly Q ¢ + Nature of the buying unit + Business purchases involve more buyers in the decision process. = Purchasing efforts are undertaken by professional buyers. + Types of decisions and the decision process + Business buyers face more complex buying decisions. + The buying process is more formalized = Buyers and sellers work more closely together and build long-term relationships. ‘Major Influences on Business Buyers SS PRINCIPLES OF 30 MARKETING4. COMPETITIVE FACTORS — companies with huge financial background , management and marketing need less of the help of intermediaries. Company with strong finances will offer credit to small retailer , have their own warehouses , and hire own sales force. PROMOTION The fourth marketing mix variable — promotion. Promotions is the function of informing , persuading , and influencing the consumer's purchase decision ( Kurtz and Boone 2013). Elements of Promotional Mix: a. Personal Selling b. Advertising c. Public Relation 4 Sales Promotions ADVERTISING Advertising according to Kurtz and Boone (2013) “is any paid , non-personal communications through various media ebout a business frm , not — for- profit organization , product , or idea by identified sponsor in a message intended to inform , persuade , or remind members of particular audience.” Advertising is maybe the first thing we see and hear in the morning. When we drive along the high ways we see bill boards, when we read newspaper we see a lot of advertisement. Customers exposure to this means that advertisement is everywhere. Advertising can be classified as: 1, PRODUCT — persuasive appeal about the product and services. It focus on the benefits of the product and its components. 2, PIONEER ~ presents messages about a product class to motivate primary claim, like those focused to cars in common. SS PRINCIPLES OF 6 MARKETING3. COMPARATIVE ~ promotional strategy that emphasizing messages with direct or maybe indirect comparison with product and or service to its closest competitors. 4. INSTITUTIONAL — an advertising campaign that promotes the ideas , Concept , philosophy or good will of the firms or organizations. Often related to public relation functions. 5. TRADE - strategy that design to stimulate resellers demand using trade media. 6. COOPERATIVE - two or more parties sharing the cost of an advertisement. Types of Advertising Media Advertising mecia are beneficial to the marketers in different ways. ‘A marketers must decide which of the media flat form to use to advertise the company product or services. Advertising Media can be classified ‘into: News Paper Magazines Radio Television Outdoor Direct Mail meaogo Cable TV z 0 Yellow Pages Transit Ads j. Point— of - Purchase k. Internet |. Mobile Phones Ee EEEEISSEEEEEEnE eT PRINCIPLES OF a MARKETINGPERSONAL SELLING Personal Selling is the oldest from of promotion. It involves face to face communication between buyers and sellers. It may also take , video conferencing , over the phone that links between buyers and sellers. Four Sales Channels a, Over the counter Selling ~ selling in retail store , mostly over the counter sales are direct to customer. b. Field Selling — a personal selling methods usually employs making sales calls on prospective and even existing client at their offices and homes. ¢, Telemarketing — a selling process which conducted by phone that serves two general functions sales and service and serves two general markets — business and direct customers. d, Inside Selling — a combinations of field selling strategy applies for inbound and outbound telemarketing channels with a strong customer orientations. Public Relations Public Relation is a form of promotion activities of the company design to make favorable impressions or image of the company to ils stake holder. There are two components of Public Relations : Publicity and Public Affairs Publicity — generations of news pertaining to person, product or organizations that appears in broadcast or electronic media. Public Affairs Pubic Affair is part of public dealings deals with civic groups. It consist of two kinds (1) Lobbying; and (2) Community involvement. PRINCIPLES OF 8 MARKETINGLobbying - according to Medina (2008) it is “an attempt to persuade a government official to adopt policies , procedures or legislations in favor of the lobbying group or organization.” Community Involvement - a company initiative to create participations in community like sponsoring community activities like sponsoring sport events , a musical show or scholarship programs. Examples : SM Foundations , ABS - CBN Foundations , GMA Kapuso Foundations ete. Sales Promotion Sales Promotion is a short term promotions offers reduce value of the product or services to arouse interest to the buying public. Sales Methods includes consumer sales promotions and trade sales promotions. Promotion methods : a. Retailer Coupons; b. Product demonstrations c. Trading stamps d. Point of Purchase Promotions techniques to encourage customers to buy new products; a. Free samples b. Price — off coupons c. Money refunds Sales Promotions devices a. Premiums b. Cents — off offers c. Consumer contest d. Consumer sweepstakes PRINCIPLES OF 49 MARKETING- required because managers are often hundreds or thousands of miles distant from end users - market analysis is the only way firms can stay in touch with customers and their needs DEVELOPING A MARKETING STRATEGY: 4. Select target market. 2. Determine product positioning. 3. Prepare value proposition. ABOUT TARGET MARKETS: ‘Avoiding Mass marketing, which means treating everyone in the market as having the same needs and wants. This is good if what you sell truly appeals to everyone the same way; then you can do mass production, mass distribution, and mass communication, and reap the economies of scale that these things provide. © Target Marketing - treats people as different from each other and tries to make a focused appeal to a distinct portion of customers called “target customers or target market.” NARROWING THE FIELD: 1. Potential customers — those who may have an interest in your products and services. 2. Customers who can afford your product. - The wealthy people, businesses, etc 3. Customers to target — the specific target market or markets you plan to address, SELECTING TARGET MARKE’ © When you select target markets, you must consider two factors: the potential profitability of the target market and your ability to address their needs and wants. © Interms of the market segment's profitability, a segment makes a good target market for you when it has most of the following characteristics: 1, Large enough PRINCIPLES OF 58 MARKETING‘Steady or growing in numbers, not deciining Not saturated with competitors Able to be attracted with the promotion budget you can expend ao kon Profitable enough, given the costs you must incur and the revenues you can obtain. In terms of your capability, a market makes a good target market for you when it has the most of the following characteristics: 1. You have the capability to offer more value than competitors can offer: better food, better drink, or better service. 2. Addressing this market fits in with your operation's image or brand identi. 3. You have the means to reach the market segment with promotions. 4, You have the capital and other resources to enter, serve, and survive in the market segment STRATEGIES FOR TARGET MARKETING: 1. CONCENTRATE ON ONE MARKET SEGMENT. - this strategy enables you to supply a_more limited set of products and services ( with the related limited facilities, equipment, and production requirements) and use a limited variety ‘of promotional methods. This strategy is the one usually selected by individual or small chain restaurants having more limited funds. Also, it is the strategy to select when first entering a market. No national chain starts as a national chain; it starts as a single restaurant. 2. SERVE MULTIPLE MARKETS WITH THE SAME PRODUCTS AND SERVICES. — This strategy implies that you are supposed to provide the same things to dfferent target markets but use different promotional messages. National restaurant chains use this strategy. 3. SPECIALIZE IN ONE THING. - This means that you must only pick one thing and do it very well. 4. SERVE ONE MARKET SEGMENT WITH SEVERAL PRODUCTS — Using wealthy people as an example target market serve more than just French haute cuisine; also serve Russian and Italian cuisine of the very best quality. PRINCIPLES OF 59 MARKETINGPOSITIONING PRODUCTS AND SERVICES IN THE MARKET ©. Market positioning - refers to how you get your target market to notice your products to market or being the first in market position. Both of these positions are stronger than all other positions. If you are first, you have the advantage. However, how can you make your target market remain loyal to your product just because you are in first place? This sounds weak. Rather, you should emphasize the qualities that made you first. © you are not in first place with your product and car lstically attack the fist- place product, you must use a different tactic. Fi ; that is, find an unoccupied position in the field of products wi Differentiate your product from the competition. There are many entiate your product: larger, faster, cheaper, higher quality, «i res, Bundled with something, bundled with better things. time of day. age, andconvenience, toname a few. © Yet another tactic, your pfBduct a better name, especially one that describes woot 2 Ve is a statement of the value your target customers will experience n they purchase your products and services ~ how you expect target customers to asSess the product and its cost against the benefits they will recelve. Generally, “value” means receiving more than was put out to obtain the thing of value. When customers buy your food, they do so because they expect to receive more in benefits than they invested in cash, time, or convenience. © The question that the value proposition must answer for your target market is, “Are the benefits worth the cost?" In other words, what benefits does your product provide that your target market considers worth purchasing? Preparing your value proposition for each target market defines the way you are going to promote your products and services to this market. Itlays the foundation for many decisions, PRINCIPLES OF MARKETINGReferences: Medina , Roberto 2015 “Principles of Marketing” REX bookstore Boone & Kurtz 2015 * Principles of Marketing “ Philippine edition . Cengage learning Kotler P ( 2015) “ Principles of Marketing “ 14” edition Pearson PRINCIPLES OF 6 MARKETINGUNIT VI ESENTATIONS AND WORK SHOP OF MARKETING PLAN LEARNING OUTCOMES: The leamers are expected to = 41. Integrate the marketing concepts and techniques learned by preparing a marketing plan 2. Present a mini-marketing plan. orally and in writing The final section give the student 2 chance to prser thi Plan inside the classroom with identified panel monk rs must be an experienced in the field of marketing. The basic sections of this es a. Introduction, Situation, Objective, Strategy, Program: ies jet_and Reporting. Each section discusses the most rel jarding your company's marketing plan (Key stats, SWOT, Obj — channels used, etc). In this resource you will find fini Demand Metric tools & templates, which can be used to cy component of strategic marketing plans a ;ntations aims to know if the students understand the course and to prepare the students in the higher marketing subjects. Included is the rubrics for marketing plan presentations to fill up by the panel member. PRINCIPLES OF 70 MARKETINGPRINCIPLES OF NARKETING n