📌 LESSON 1: Introduction of • Target Market

• Selection
Marketing
• Value Proposition
MARKETING • Product Position
• American Marketing Association - "It is 3rd | Marketing Mix Decisions
the activity, set of institutions, and • Product
processes for creating, communicating, • Price
delivering, and exchanging offerings that • Promotion
have value for customers, clients, partners • Place
and society at large” • People
• Philippine Marketing Association - "A 4th | Implementation and Control
science and a profession guided principally • Implementation
by the universal principles of ethics, • Monitoring
corporate citizenship, and corporate • Marketing and mix adjustment
responsibility.”
PRODUCT
7 GOALS OF MARKETING • A Product is the item offered for sale.
Goal 1 - Understand the market and its • It can be a service or an item.
consumers, and satisfy their changing • It can be physical or in virtual or cyber
needs and wants. form.
Goal 2 - Introduce and innovate products • Every Product is made at a cost and each
and services that improve human condition is sold at a price.
and the quality of life.
Goal 3 - Design and implement effective PRODUCT LEVELS
customer-driven marketing strategies. Inner | Core or Generic Product
• Involving products and/or consumers. Middle | Formal or Actual Product
Goal 4 - Develop marketing programs that • Features
deliver superior value to consumers. • Price
• 5 Ps: Products, Price, Promotion, Place • Brand
and People • Packaging
Goal 5 - Build and maintain beneficial and • Style
profitable customer relationships. • Design
Goal 6 - Capture customer's value to create Outer | Augmented Product
profits. • Payment Terms
Goal 7 - Promote value transactions with • Installment Terms
full regard to society's well-being. • Warranty
• Repair and Maintenance
THE MARKETING PROCESS • After Sale Service
1st | The Situation Analysis
• Strengths, Weaknesses, Opportunities, TYPES OF PRODUCTS
and Threats 1. Goods - pen, lamp, mobile phone
2nd | Marketing Strategy Formulation 2. Services - therapy sessions, haircut,
• Market legal advice, surgery
• Segmentation
3. Digitized or Virtual Products - e-Books, be purchased (automobile, work of art,
audio files, website templates, PDFs high-fashion clothing).
d. Unsought Goods - goods that
CLASSIFICATION OF PRODUCTS consumers seldom actively look for, and are
• According to Use usually purchased for extraordinary
a. Consumer Goods - purchased for reasons, such as fear of adversity, rather
(personal) consumption. than desire. (investments, memorial plans,
b. Industrial Goods - purchased in order to life insurance, fitness, gym membership)
make other goods services. - Require aggressive selling efforts and
• According to Differentiation usually marketed by highly trained and
a. Undifferentiated Products - persuasive salespersons.
characteristics are so identical, that it would
be difficult to distinguish one purchased BRANDING
from one vendor or another. • It is the ability of manufacturers to
b. Differentiated Products - are varied in successfully distinguish their products from
their characteristics and the features that other competitors.
they are readily distinguishable from • It provides a product with a unique
another. distinguishing name, logo, symbol, or
• According to Durability image.
a. Consumable - is a product whose benefit
can only be used by a consumer for only a SERVICES
short period of time, sometimes only a few Attributes:
minutes (e.g. food and drinks) • Intangibility - not capable of being
b. Semi-durables - provide benefits for a touched (e.g. of lesson of a teacher)
longer period of time, usually spanning • Variability - no service provider can
several months (e.g. clothes, shoes, belts) render the same service exactly the same
c. Durables - are products that last a long way every single time (e.g. teacher giving
time (e.g. automobile, furniture, major the same lecture in two separate sessions.)
household appliances, etc.) • Inseparability - the consumer and the
• According to Type service provider must be both present as
a. Consumer / Convenient Goods - the service is being provided (teacher and
purchased frequently, usually inexpensive, students in class).
and do not require much purchase effort • Perishability - services cannot be stored
and evaluation (e.g. shampoo, soap) or warehoused.

📌 LESSON 2: Different Approaches of

b. Shopping Goods - purchased frequently
than convenience goods, are relatively
expensive, and require some amount of Marketing
information search and evaluation prior to
purchase (e.g. clothes, shoes, bags) NEEDS, WANTS, and DEMANDS
c. Specialty Goods - goods that require • Needs - physiological necessities required
unusually large effort on the pat of for human survival
consumers to acquire. • Wants - psychological, a wish or desire to
- Consumers are usually willing to travel possess something that will improve the
great distances to where those goods can consumer's life.
• Demands - consumer's desire to purchase 7. Full Demand - demand is meeting time
products and willingness to pay a price for a supply potential of the company; markets
specific are happy with the products, and they want
to buy the products from the same
MARKET and MARKET DEMAND company. (e.g. food from the leading
• Market - group of customers who have fast-food chains.)
both the willingness and financial capability 8. Overfull Demand - happens when
to purchase a particular product. manufacturing firms' capacity is limited but
• Market Demand - total demand for all the demand is more than the supply (e.g.
potential customers for a specific product Covid-19 vaccines.)
over a specific period in a specific market
area. UTILITY, VALUE, and SATISFACTION
• Utility - it refers to the total satisfaction
MEASURING MARKET DEMAND consumers can receive from the
1. Primary Demand - advertising intended consumptions of a product.
to drive interest to the general product • Value - value customers place on a
category, rather than a specific brand in product since consumers have different
particular. needs and buying capacities, consumers
2. Selective Demand - demand for a assign varying values on the same product.
specific brand of a product. Companies • Satisfaction - is the measure of how well
increase their brand identity. customers expectations from a purchased
product have been met.
TYPES OF DEMAND
1. Negative Demand - product is disliked in CUSTOMER-PERCEIVED VALUE
general; product may be beneficial, but the - The way a consumer views a product
customer does not want it (e.g. unsought Customer's Expected Benefit -
goods such as insurance policy and fitness Customer's Perceived Cost =
gym membership) Customer's Perceived Value
2. Unwholesome Demand - opposite of • The higher the value of customer's
negative demand; customer should not perceived value, the better
desire the product, but the customer want
the product badly (liquor or cigarettes) CUSTOMER VALUE PROPOSITION
3. Potential Demand - there is no demand • It is the total value that a company
yet for the product, but there exists a market provides a customer in exchange for
capable of buying the product. (medicine) payment.
4. Latent Demand - a demand which the • It is used to convince customers that the
customer realizes later; while buying the product they're selling provides more value
products, consumers might not desire some than competitors' products.
features. But later, might think about those
features (desktop and mobile phones) COMPETITION
5. Declining Demand - demand for the • The rivalry between companies selling
product is declining (e.g. CDs, Walkman) similar products and services with the goal
6. Irregular Demand - demand is of achieving revenue, profit, and market
inconsistent (e.g. umbrellas and swimsuits) share growth.
 - Objective is to provide a solution to the
MARKET SHARE customer's actual or perceived problem.
- Is the percentage of total sales in an - Key is to be more effective in creation,
industry generated by a particular company. communication, and delivery of this value to
- Sales revenue is the basis for determining customers.
market share. 2. Relationship Marketing Concept
Company A's Market Share = - All marketing activities are towards
Company A's Annual Revenue / establishing, maintaining, and strengthening
Total Annual Revenue of meaningful long-term relationships with
Company A's Industry × 100 customers.
- Extensive customer databases are
MARKET LEADER created, maintained, and updated.
• The company with the largest market - Customer profiles, purchase habits, and
share in the industry. preferences are tracked and monitored.
3. Social Marketing Concept
TRADITIONAL APPROACHES TO - Similar to relationship marketing, however,
MARKETING beyond providing solutions to customers, it
1. Production Concept protects the customers' well-being and
- Assume that customers prefer and interest, as well as the environment and
patronize products that are inexpensive. society.
- Efforts are concentrated in expanding
distribution, improving production efficiency. 📌 LESSON 3: Relationship Marketing
- Goal is to lower production costs and
lower prices. RELATIONSHIP MARKETING
2. Product Concept • Is a form of marketing developed from
- Assumes that customers will always prefer direct response marketing campaigns that
and patronize products of high quality. emphasizes customer retention and
- Resources are focused on product satisfaction rather than sales transaction.
improvement and innovation.
- Product attributes and features are CUSTOMER
continuously enhanced. • It is a person or organization that transacts
3. Selling Concept with a business person or business
- Emphasizes aggressive selling and organization to buy goods and services for
promotional efforts. monetary or other valuable consideration.
- Assumes that customers are generally • It creates demands.
timid and must be persuaded into buying.
- Goal is to sell what is manufactured rather WHY ARE CUSTOMERS IMPORTANT
than manufacture what the market wants. IN AN ORGANIZATION?
• They are the ones that provide the money
CONTEMPORARY APPROACHES TO that keeps the business alive.
MARKETING • Their needs and wants are the basis of
1. Marketing Concept design, production, and marketing activities.
- Considers the needs of both customers • They are providing feedback regarding the
and the product offered. quality of the firm's products.
• Their needs and wants drive the future MANAGING CUSTOMER SERVICE
development of products. DIFFERENTIATION
• Their opinions from the firm's brand • The development and training of
recognition and position in the market. competent customer contact.
• Designing and implementing a superior
CUSTOMER SERVICE service delivery environment and process.
• Is the process of ensuring customer
satisfaction with the product or service. SOME POPULAR CUSTOMER
• Activities designed to enhance customer SERVICE PRACTICES IN THE
satisfaction, or the perception that a product PHILIPPINES
has met or exceeded. • Free Delivery
• It is oftentimes being ignored but actually • Help Desks
the most crucial one. • Free Gift wrapping
• Free Appliance Installation
AS OFTEN THEY SAY… • Complimentary Refreshment
“Acquiring a new customer can cost five • Free Appliance Installation
times more than retaining an existing • Free Parking
customer" • Free Alteration on Garments

WHO IS CONSIDERED A CUSTOMER CUSTOMER RELATIONSHIP

SERVICE PROVIDER? MANAGEMENT
• Salesclerk/Agents • CRM is all of the activities, strategies and
• Frontliners technologies that companies use to manage
• Call Center Representatives their interactions with their current and
• Repairman potential customers. It helps the business
• Technical Support Staffs Others build a relationship with their customers
• Others that, in turn, creates loyalty and customer
retention.
MANAGING CUSTOMER SERVICE
QUALITY CUSTOMER LIFETIME VALUE
• Establishing service objectives with • CVL is the forecasted sales or profits that
specific and measurable targets. a company can derive from the entire span
• Committing sufficient organizational of its future relationship with a particular
resources toward the achievement of these customer.
targets. • CVL can be measured using the formula:
• Collecting customer feedback on service CVL = (PV) (RP) (RT)
quality regularly. Where:
• Identifying customer service weaknesses -​ PV is the average peso value of a
and connecting them. sale to a particular customer or
• Reviewing Target Accomplishment. customer group
-​ RP is the repeat purchase in a year
-​ RT is the retention time in months or
years
 -​ CVL is the customer lifetime value • Customer Centric - is a philosophy under
For example, an athlete who spends P2, which the company customizes its goods
000 for every visit to a spa and goes to the and services offering based on data
spa twice a month for an expected time generated through interactions between the
period of 5 years would have a CVL customer and the company. The Company
computed as: builds long-lasting relationships by focusing
Let: on what satisfies and retains valuable
PV = P2,000.00 customers.
RP = 24 (twice a month for 1 year) • Learning - is an informal process of
RT = 5 collecting customer data through customer
CVL = ? comments and feedback on product or
Solution: service performance.
CVL = (PV) (RP) (RT) • Knowledge Management - the process
= (2,000) (24) (5) by which learned information from
= P240, 000.00 customers is centralized and shared in
The athlete's Customer Lifetime Value is order to enhance the relationship between
P240, 000.00 customers.
• Empowerment - delegation of authority to

📌 LESSON 4: Customer Relationship

solve customers’ problems quickly-usually
by the first person the customer notifies
Management regarding the problem.
• Interaction - the point at which a customer
CUSTOMER RELATIONSHIP and a company representative exchange
MANAGEMENT (CRM) information and develop a learning
• is a company-wide business strategy relationship.
designed to optimize profitability, revenue,
and customer satisfaction by focusing a 2nd step | Understand Interactions
highly defined and precise customer group. with current customer based
Companies accomplished this by collecting
CRM IS ACCOMPLISHED BY: data on all types of communications with
1. Organizing the company around current customers.
customer segments. • Touch Points - all areas of business
2. Establishing and tracking customer where customers have contact with the
interactions with the company. company and data might be gathered.
3. Fostering customer-satisfying behaviors. • Point-of-sale (POS) - Another touch point
4. Linking all processes of the company is through POS interactions in stores and
from its customers through its suppliers. kiosks. Data collected at POS interactions
are used to increase customer satisfaction
CUSTOMER RELATIONSHIP through development of in-store services
and customer recognition promotions.
MANAGEMENT CYCLE
1st step | Identify Customer
3rd step | Capture customer data
Relationships
based on interaction
• Information Technology is used to a specified amount of money with the firm.
implement the CRM system. The goal is to identify the “best customer”.
• Companies not only obtain simple
information (name, address, contact ANALYSIS OF DATABASE
number, etc.) but also data pertaining to the • Lifetime Value Analysis or Customer
customers current relationship with the Lifetime Value - forecasted sales or profits
company. that a company can derive from the entire
span of the future relationship of the
4th step | Store and integrate particular customer.
customer data using information
technology
• Data Warehouse - a central repository for
data from various functional areas that are
stored and inventoried on a centralized
information system so that the information Applications of CLV:
can be shared across all functional -​ It considers a longer-term
departments of the business. perspective of a company’s
• Database - the core of the data relationship with customers in
warehouse. Focuses on collecting vital contrast to a short-term view of “take
statistics on consumers, their purchasing the customers money and run”.
habits, transaction methods, and product -​ It calculates and compares
usage. acquisition cost vs. retention cost.
• Compiled List - general information -​ Highlights importance of market
gathered from sources such as yellow segmentation, recognizing the
pages, directories, census and other public profitable customers.
domains. • Predictive Modeling - process of using
• Response List - consist of individuals who known results to create, process, and
have taken some specific action to show validate a model that can be used to
interest in a product or service such as forecast future outcomes.
previous buying history, surveys,
attendance registration in events, etc.
6th step | Leverage Customer
Information
5th step | Identify best customers
• Leverage - is a strategy where a business,
• Data Mining - analyzing large database in
person, or investor uses debt to maximize
order to generate new information.
the return of an investment.
• Companies must analyze the data to
identify and profile the best customers,
COMMON CRM MARKETING
calculate their lifetime value, and predict
DATABASE APPLICATIONS
purchasing behavior through statistics.
1. Campaign Management
• Recency-frequency-monetary Analysis
• involves monitoring and leveraging
(RFM) - identifies those customers most
customer interactions to sell a company's
likely to purchase again because they have
products and to increase customer service.
bought recently, bought frequently, or spent
• Monitoring the success of the used in searching for the best potential
communications based orders, call on customers.
customer reactions through sales, backs to 7. Increasing Effectiveness of
the company, and the like. Distribution
2. Retaining Loyal Customers • Since marketers heavily rely on indirect
• As soon as best customers were identified, channels to move their products to the end
then the company should make every effort users, they often lose touch with the
of maintaining and increasing these customers.
customers' loyalty. • Manufacturers use CRM database as a
• Loyalty programs reward loyal customers tool to gain into who is buying their products
for making multiple purchases. such as websites and other social media
3. Upselling and Cross-Selling sites like Facebook.
• Cross-selling - encouraging customer to
purchase related products or service in
addition to the original items they intended
to purchase.
• Upselling - convincing customer to buy an
upgraded or premium version of what's 8. Improving Customer Service
being purchased. • CRM is being used to improve customer
4. Designing Targeted Marketing service to process sales, returns, gift
Communications registry, wish list of items, tracking items for
• Communications are used for infrequent shipment/delivery, or search for availability
users to encourage repeat purchases of items in the store or other branches.

📌 LESSON 5: Strategic Marketing

through a direct incentive such as a
limited-time price discount.
• Communications are used to encourage
moderate users to reorder for them to earn STRATEGIC MARKETING
points, rebates, or get freebies • Seeks to establish a clear and concerted
5. Reinforcing Customer Purchase direction for all marketing activities of an
Decisions organization. It includes plans to reach
• CRM offers marketers an excellent specific goals/objectives.
opportunity to reach out customers to
reinforce the purchase decision.
STRATEGIC MARKETING STEPS
• Marketers can have a long-term, profitable
Step 1: Mission Identification (MI)
relationship with their customers by
The company’s mission statement is
thanking them for their purchases and
articulated. A mission statement defines
telling them that they are important.
what an organization is, why it exists, its
6. Inducing Product Trial by New
reason for being, its primary customers, the
Customers
products and services it produces, and its
• Marketing database is used to identify new
geographical area of operation.
customers.
Step 2: Situation Analysis (SA)
• The marketing database contains the
This step assesses and evaluates the
profile of the best customers, which can be
market, customers, competitors, and the
company’s internal and external
environment. The objective is to identify the of this addressed and that satisfaction is
company’s strengths and weaknesses, as provided.
well as the available opportunities and
possible threats. THE TACTICAL MARKETING
Step 3: Objective Setting (OS) PROCESS
Objectives are marketing targets that are • Completing the strategic marketing
specific, measurable, attainable, realistic, process, the tactical marketing process
and time-bound (SMART). These enable a determines the means or tactics to
company to control its marketing plan and implement the strategies. It involves the
provide a consistent focus for all functions identification of specific activities,
of an organization. timetables, responsibilities, and budgets
Step 4: Marketing Strategy Development and their implementation. The objective is to
(MSD) ensure that the strategies are implemented
The development of a marketing strategy successfully.
involves market segmentation, identification 1. Marketing Strategies (MS)
of target market, positioning, selection of 2. Action Plans/Tactics (AP/S)
broad marketing strategies, and the 3. Marketing Activities (MA)
translation of strategies into action plans. 4. Activity Timetables (AT)
Step 5: Strategic Evaluation and Control 5. Responsibility/Accountability (R/A)
(SEC) 6. Activity Budgets (AB)
After the strategy is developed, periodic 7. Monitoring and Control (MC)
monitoring and evaluation are needed. This

📌 LESSON 6: Marketing Research

is necessary to identify deviations and
necessary adjustments and corrections.

COST LEADERSHIP WHAT IS MARKET RESEARCH?

• This is a strategy primarily for achieving • Marketing research is a function under a
low-cost leadership among industry business organization’s Marketing
competitors. Cost leadership can be Information System (MIS). MIS is primarily
achieved through low-cost supply contracts, responsible for the gathering, analysis, and
overhead expense control, economics of timely distribution of information for the use
scale, and comprehensive cost-cutting of marketing decision makers.
efforts, among others.
DEFINITION OF MARKET RESEARCH
DIFFERENTIATION • Market research is the process of
• Seeks to achieve superior product determining the viability of a new service or
attributes and features that are different product through research conducted directly
from industry competitors. with potential customers. Market research
allows a company to discover the target
FOCUSED market and get opinions and other feedback
• Efforts are concentrated on a relatively form consumers and about their interest in
small but profitable market. The the product or service.
development of products and services
primarily ensures that the needs and want
STEPS TO CONDUCT MARKETING collected. It can be a questionnaire or an
RESEARCH: observation form.
1. Establishing the need for marketing 8. Determining sample plan and size -
research - This could seem basic but is in Sample plan; describes how each sample
fact fundamental to conducting marketing element is to be drawn from the total
research. Research takes time and money. population. Sample size, how many
Marketing research is not needed when elements of the population should be used
information is readily available (this could be to make up the sample.
through secondary data). It could also 9. Collecting Data - Non-sampling errors in
simply be that the answer is obvious. data are likely to occur and researchers
2. Defining the problem - According to the need to know the sources of these errors to
authors, this is by far the most important implement controls to minimize them.
step. If the problem is incorrectly defined, all 10. Analyzing Data - Data analysis involves
is wasted effort. Marketing research should entering data into computer files, inspecting
only be conducted to answer a problem. data for errors, and running tabulations and
There are also needs to be alternatives. If various statistical tests.
there are no alternatives, no decision is 11. Preparing and presenting the final
necessary. report - It is important that it is not
3. Establishing research objectives - overstated as it is the report that properly
Objectives tell a researcher exactly what he communicates the results to the client.
or she should be looking for and what he or
she must do to obtain the information
necessary to allow the manager to choose
between the decision and the alternatives.
4. Determining research design
• Exploratory research: informal search to
learn more about the research problem,
learn terms and definitions or identify
opportunities.
• Descriptive research: most basic; used
to describe the marketing phenomena
• Causal research: uncover factors that
cause an event
5. Identifying information types and
sources
• Primary: information collected specifically
for the problem at hand
• Secondary: information already collected
6. Determining methods of accessing
data - This can be done through observing
consumers, surveys, online, etc.
7. Designing data collection forms -
Designing the forms in which data will be