MODULE 1 – THE VALUE OF MARKETING PRODUCTS – anything that a buyer buys.
- anything that a company offers to satisfy
MARKETING
- Marketing is concerned with maintaining high
customer satisfaction and continuously building
and keeping good relationship with the market.
- “marketing is a asocial and managerial process
whereby individuals and groups obtain what
they need and want through creating and
exchanging products and value with others.”-
KOTLER & ARMSTRONG
- “a process of continuously and profitably
satisfying the target customer’s needs, wants,
and expectations superior than competition.”-
JOSIAH GO & CHIQUI ESCAREAL-GO
WANTS – refers to situations in which something is
missing and has to be satisfied.
- shape by culture or individual
NEEDS – preferred products of an individual that will
satisfy his needs.
a. Physiological needs – need for food,
clothing, shelter
b. Safety and security needs – things that
makes one feels secured and safe
c. Social needs - one’s sense of belongingness
to a group or association
d. Esteem needs – individual’s needs or
strong desire to be recognized of his efforts
and accomplishments
e. Self-actualization needs – continuous
improvement of one’s talent, skill and
knowledge by further studying to be shared
or given back to the society.
DEMAND – involves one’s need or want for products
backed up by his capacity to purchase a product.
EXCHANGE AND TRANSACTION -
MARKET - people patronizing or already using the
company’s products or availing its various services.
a. Consumer Market – purchases product for its
own personal consumption
b. Industrial Market/Business Market
- Purchases products in order to produce another
product
the market’s needs or wants.
MARKETING MIX – also known as the 4P’s in marketing:
Product, Price, Place, Promotions
a. Product – is what the producers sell and what
the market buys
b. Price – refers to the amount of money paid by
the customers in order to acquire the product
or to avail the services offered
c. Place – deals with the distribution of products,
different channels involved in making products
available to people.
d. 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.
MARKETING PHILOSOPHIES
a. Product Concept/Philosophy – product
performance is the priority. It means no product
leaves the assembly line if it is not of high
quality.
b. Production Philosophy – value the importance
of the availability of products at all times with a
reasonable price
c. Selling Philosophy – firms hire marketers or
sales people to do aggressive marketing for the
firm’s products or services.
d. Societal Marketing Concept – firms look first
into the welfare of the society in general and
deliver their offering in a way that satisfies their
market more effectively and efficiently.
e. Marketing Concept – firms determine first the
needs and wants of their potential market, then
device ways, products, or services to satisfy
these needs and wants more effectively and
efficiently than their competitors.
BENEFITS OF MARKETING
1. Creates employment.
2. Helps develop more and better products.
3. Provides better profit.
4. Improves the quality of life.
5. Produces more entrepreneurs.
 6. Contributes to economic development.
STRATEGIC PLANNING
- a process of developing and maintaining a strategic fit
between the organization’s goals and capabilities and
its changing marketing opportunities.
MISSION STATEMENT
- stipulates what the firm values and its reason for
existence.
BUSINESS PORTFOLIO
- the collection of businesses and products that make
up the company follows.
STRATEGIC PLANNING
- deciding on marketing strategies that will help a
company achieve its overall strategic objectives.
VS.
MARKETING PLAN
- includes the executive summary, current marketing
situation, environmental analysis, marketing objectives,
marketing strategies, action programs, budget, and
controls.
PARTS OF MARKETING PLAN
1. Executive Summary
- Presents the highlights of the plan. Overview of
the proposed plan.
2. Current Marketing Situation
- Provides data on the present product, its
market, and how the products are distributed
and promoted
3. Environmental Analysis
- Discusses the various external factors that
affect the marketability of the product. Defines
the product’s strength and weaknesses, as well
as the various threats and opportunities facing
the product.
4. Objectives
- Consist of marketing goals in the area of sales,
target market, positioning, market share, and
profit.
5. Marketing Strategies
- Company’s game plan, indicating how
objectives will be achieved.
6. Action Programs
- Steps that the company would undertake to
ensure that marketing strategies would be
achieve. Includes identifying the persons
involved, the timeframe, and the budget.
7. Budget
- Important component that puts into details the
cost of implementing the marketing plan.
8. Controls
- Indicate how progress will be monitored and
reviewed by the management.
PROCESS OF STRATEGIC PLANNING
1. Drafting the Company’s Mission Statement
2. Setting of Company’s Objectives
3. Designing the Company’s Business Portfolio
4. Coordinating Activities to Different Functional
Areas
GROWTH SHARE MATRIX or the BOSTON CONSULTING
GROUP (Characteristics of BCG Matrix)
a. Stars – high growth/high share business or
product that needs heavy investment to finance
its rapid growth
b. Cash Cows – low growth/high share business or
products. Unlike stars, businesses and products
in this category need less investment to
maintain their market share. SBUs in this
classification produce a lot of cash which
supports the other units
c. Question Marks – low market share in high
growth market. In terms of investment, SBUs in
this category require more budget or cash to
hold its market share; companies’ decision
makers should evaluate which Question Marks
they should support to be a star, and which
products or businesses to let go or to phase out.
d. Dogs – have low-share and low-growth status.
The cash generated may just be enough for
themselves but does not promise to have big
source of profit.
GROWTH STRATEGIES
- On Product/Market Expansion Grid –
a. Market Penetration strategy for company
growth is achieved by increasing or adding sales
of current products to existing or current
market.
 b. Market Development is a strategy for
company growth where new market is
identified or developed for existing or current
company products.
c. Product Development refers to the strategy
used by companies to offer new and improved
products to existing or current market segment.
d. Diversification is a growth strategy where
companies acquire businesses outside their
existing or current products and markets.
MODULE 2 – THE ENVIRONMENT OF BUSINESS
TYPES OF BUSINESS ENVIRONMENT
a. Internal Environment (Micro-environment /
Controllable)
- Forces that are close to the company and
affects its interaction with its market
1. Firm/Company – represents the business
enterprise that creates product and sells or
provides services to identified market.
2. Distribution Channel – represents the
organizations that assist a company to
promote, sell, or distribute products or
services to actual and potential customers;
examples of channels are retailers, as well
as wholesalers. It is also considered as
marketing intermediaries.
3. Competitors -are business enterprise that
offer the same products or alternative
products that other companies also offer;
competitors provide the market with more
choices.
4. Company’s Public – are organization or
groups that have direct or indirect interest
to a company; financial institutions like
banks, the media, the general public, the
government, and other citizen-organized
groups are some of the organizations that
have interest to a company.
5. Suppliers – are firms that provide needed
equipment, raw materials, office, and other
supplies to a company
b. External Environment (Macro-environment /
Uncontrollable)
1. Demographic Factor - includes
environmental factors such as the
consumers’ profile – age, gender,
education, nationality, and religion.
2. Political or Legal Factor – consists of
existing laws, ordinances, or government
restrictions that affect or influence the
operation of a business
3. Economic Environment Factor – includes
those that influence the spending pattern
or buying power of consumers. (change in
income level, family size, cost of products,
and lifestyle of the market)
4. Socio-Cultural Environment Factor –
includes those that affect the values,
behavior, or belief of society.
5. Technological Factor – factors that create or
innovate products due to technological
advancement or modern machineries,
gadget, o equipment.
6. Natural Environment Factor – affects
marketing activities. (pollution, shortage of
raw materials, and non-biodegradable
packaging)
MODULE 3 - MARKET SEGMENTATION
Market Segmentation – refers to the process of
dividing the market into distinct groups where each
group has common characteristics.
Segmentation is the initial step in targeting the market.
MARKET CLASSIFICATION
1. Demographic Segmentation – the market is
divided based on variables such as age, gender,
income, education, nationality, religion, and
family life cycle.
2. Geographic Segmentation – divides the market
based on territory or geographical units such as
regions or cities
3. Psychographic Segmentation – groups the
market according to lifestyle, personality, or
social class.
4. Behavioral Segmentation – divides the market
based on knowledge, attitudes, or the market’s
response to a product.
Consumer Market refers to individuals who purchase
products for their own consumption or personal use.
Industrial Market refers to the buyers who purchase
products in order to produce another product.
Market Targeting is the process of looking into the
most attractive market that a company is capable of
serving.
Product Positioning or the process of emphasizing a
product’s best feature.
Competitive Advantage refers to uniqueness of the
company’s product that sets it apart from its
competitors
STRATEGIES ON MARKET COVERAGE
Undifferentiated Market Coverage
- this strategy is used whenever a business enterprise
offers an entire market with one type of product. It
focuses on the similarities of the needs of the market
rather than the differences.
Differentiated Market Coverage
-targets several market segments, offering varied
product designs. Differentiated market strategy
matches the product offered by the firms t the needs of
the market.
Concentrated Market Coverage
-companies with limited sources focus more on utilizing
concentrated market coverage strategy. For this reason,
they set a high product differentiation for customers to
patronize their product.
MODULE 4 – CONSUMER BUYING BEHAVIOR
Consumer Buying Behavior is comprised of all
considerations a person takes when deciding what
products to choose or buy, where to buy the product,
when to buy the product, how the product will be
purchased, and why the particular product or brand was
chosen.
FACTORS AFFECCTING CONSUMER BUYING BEHAVIOR
Cultural Factors
- this represents the basic values of an individual
including his beliefs and behavior, which are learned
from family, schools, and other institutions in society.
- within a particular culture are various sub-culture or
groups of individuals with common practices, beliefs,
dialect, or orientation, and belong to similar
geographical location.
- society is also made up of class structure known as
social class.
Social Factors
a. reference group refer to groups that can strongly
influence the attitude or character of a person.
- the group, which a person whishes to be part of, is
referred to as the aspirational group.
b. family members are strong buying market.
- the most important consumer buying organization in
society.
 The different activities expected from a person
are known as roles.
 Status is the esteem provided by the society in
relation to the role of an individual.
Personal Factors
family life cycle includes being adolescent, single,
married, couple with out a child or couple with a child or
children, and senior citizens or those in their 60 years
and above.
Psychological Factors
Motivation refers to what stimulates a person to
purchase a product or avail a service.
Perception is a person’s interpretation of the
information around him that helps him form a
meaningful scenario.
Learning involves changes in the person’s attitude
according to his experience.
BUYER’S DECISION PROCESS
1. Need Recognition the initial step of a person in
deciding to purchase a product is to recognize
that he has a need that has to be met.
2. Information Search the search for information
related to the product.
3. Evaluation of Alternatives this involves using
the gathered information to evaluate
alternative brands in the choice set.
4. Purchase Decision this is the stage where
customer choose the particular product to
purchase from among the many alternative
brands.
 5. Post-Purchase Behavior the last stage in the
buying decision process.
- Delight when the product he/she has purchased
exceeds his/her level of expectations.
- Disappointed when the product purchased falls
short of his/her expectation
- Satisfied when the product he/she purchased
meets his/her expectations.
INDUSTRIAL MARKET AND BUYING BEHAVIOR
1. Industrial Market is composed of industries
such as manufacturing, mining, banking, retail
trade, wholesale trade, services,
transportations, public utilities, and
communications.
2. Resellers are individuals who buy goods and
resell them to end-users at a profit.
3. Government and Institutional Market includes
the local and national government agencies and
the public and private entities.
CHARACTERISTICS OF INDUSTRIAL MARKET
1. Close Supplier and Customer Relationship
2. Derived Demand – the demand for goods and
services is derived from the demand of the
consumers.
3. Direct Purchasing
4. Geographically Concentrated Buyers
5. Increase Demand means that the companies
demand for business products, which are not
affected by price change.
6. Larger but Fewer Buyer industrial market
normally interacts with fewer but larger buyers.
Buyers purchase in large product quantity.
7. Leasing
8. Professional Purchasing
9. Reciprocity means the company will purchase
product from a firm (seller) only if the seller will
also purchase products from the buyer.
10. Several Buying Influences in the industrial
market, a team of buyers in the firm normally
influences buying decisions.
TYPES OF BUYING SITUATION
1. Straight Rebuy describes a situation where a
firm reorders on a regular basis.
2. Modified Rebuy describes a buying decision
where a firm wants to make some changes to
product specifications, process, delivery or
payment requirements, and other terms.
3. System Purchase involves a total solution to the
buyer’s problem of not making separate
purchases and decisions.
4. New-Task Buying refers to purchasing products
for the first time.
PARTICIPANTS IN THE BUYING CENTER
1. The Gatekeeper refers to the first person that a
sales representative gets in contact with. They
control the flow of business information into
the buying center or firm.
2. Information Seeker searches for data that can
be used during the purchasing process.
3. Advocates are people who influences the
buying center decisions. Their influence is
obtained from their expertise on particular
topic and with their skills in interacting with
other people outside the organization.
4. Users are member of the organization who will
use the product. They initiate the purchase of
the product and provide the information as to
specifications.
5. Decision Makers are people who chose and
approve the suppliers or providers of products.
6. Buyers are people who have the authority to
contact suppliers and negotiate terms for
products to be ordered or purchased.
MODULE 5 – UNDERSTANDING PRODUCT
STEPS IN PRODUCT DEVELOPMENT
1. Idea Generation this is the initial stage in
product development process wherein those
involved determine the new product to be
offered to the market, which begins by
gathering ideas through brainstorming.
2. Idea Screening this is the stage where ideas
gathered are screened and evaluated. The
objective of this is to eliminate poor and weak
ideas.
3. Product Concept Developments and Concept
Testing in this stage, new product idea is
concretized into meaningful and
understandable terms.
 4. Market Strategy this involves different game
plans of the company in relation to the product
it intends to produce.
5. Business Analysis the analysis of the general
situation of the company.
a. Strength are known as internal positive.
They refer to the various resources that the
company has such as capital, manpower,
equipment, raw materials, and good
method or system of doing things.
b. Weaknesses are known as internal
negative. These refer to resources that a
company does not have. (opposite of
strength)
c. Opportunities are recognized as external
positive. Opportunities are challenges in the
market that a company may consider to
exploit to its advantage if it has sufficient
good resources that it can utilize in order to
compete.
d. Threats ae obstacles that may hinder a
company or limit its capabilities to achieve
its goal.
6. Budget the main consideration of any product
development is the capital involved in the
process.
7. Product Development the stage where actual
production of the product is done.
8. Test Marketing companies produce and
distribute products to selected geographical
location only. This is done in order for the
company to know product acceptability of the
market before going to full commercialization.
9. Full Commercialization full-scale production
and distribution are achieved at this stage. The
company is now ready to face its competitors.
STAGES OFF PRODUCT LIFE CYCLE
1. Introduction Stage is a stage in PLC where
investments is high.
2. Growth Stage is where the products gains
tremendous improvement in terms of sales as
the product becomes popular and widely
accepted.
3. Maturity Stage is where products growth and
sales stabilize, since the product has been in
the market for a longer time.
4. Decline Stage is where profit continuously
declines. At this stage, company decides
whether to phase out the product, maintain
producing it, and reintroduce the product, or
sell the brand.
KNOWING THE PRODUCT
Product Knowledge involves knowing product features,
its competitive advantage, its usage, price benefits, and
how the product will satisfy a market need.
CHARACTERISTICS OF SERVICE
Not Homogeneous. It means that service offers quality
variability.
A service is Perishable. It cannot be stored for future
use.
Inseparability. Service provider cannot be isolated
from service, because the service provider is part of the
service.
Intangibility of service means it cannot be touched,
tasted, or experienced.
CLASSIFICATION OF PRODUCTS
1. Consumer Product are intended for consumer
market or end users who purchase for their
personal consumptions or family consumption.
2. Industrial Product are intended for business
market who purchases products for further
processing or for their own business use.
Classification of Consumer Products
1. Based on How the Market Buys the Product
a. Convenience Products are goods that are
purchased frequently and with minimum effort
on the part of the market or consumer because
these products are available anywhere and
anytime.
 Staple goods are those that form part
of consumer’s regular consumptions
like rice, coffee, milk, dairy products,
soap, or shampoo.
 Emergency goods refer to those
products’ customer purchase during
emergency.
 Impulse goods are those unplanned
product purchases like playing cards,
chewing gums, razors, and chocolates,
  Shopping products are goods that
consumer purchase with exerted effort
and time.
b. Specialty products are goods purchased with
much effort on the part of the consumer.
c. Unsought products are consumer goods that
are available in the market but consumers are
not aware of.
2. Based on Lifespan
- durable consumer products can last for a
longer period
- non-durable consumer products are those that
last for a short period only
3. Based on Tangibility can be touched or stored
Classification of Industrial Products
1. Materials and Parts
a. Raw materials consist of products
necessary to produce another products like
farm products.
b. Parts and materials are products that
become part or component of a finished
product.
2. Capital Products
a. Installations consists of buildings and lands,
and major equipment like tractors, printing
machines, and generators.
b. Accessory equipment are products used by
business necessary for their operation, but
not as part of the finished products.
3. Suppliers and Services
a. Supplies include operating supplies like
pens, papers, brooms, and other cleaning or
maintenance supplies.
b. Services include legal assistance, auditing
services, management consulting, and
services of advertising agencies that are
normally provided by business groups.
PRODUCT BRANDING
Brand is composed of the name of the product and the
logo or design that represents the product.
Brand name is the word or words that represents the
product. On the other hand, a brand mark is the design
that goes with the brand name. it is recognizable but
cannot be uttered.
Benefits of Product Branding
1. To distinguish one product from another.
2. Will be able to sue unscrupulous business
people who copy the brand name of leading
product manufacturer.
3. Communicate the benefits of the product
offered to the market.
PRODUCT PACKAGING
Packaging refers to the process of making the wrapper,
covering, or container of a product or the product
package.
Product Package refers to the container used by the
company to protect, promote, and transport its
product. It has a product label inserted.
Label is part of a product package that contains
information about the product that target what
costumer need to know, like the ingredients used to
produce the product, the instruction for use, safety
information, or precautions in the case of chemicals,
etc.
Levels of Packaging
Primary Package is the product’s immediate container,
like the bottle of medicines, the plastic container or ice
cream, among others.
Secondary Package refers to another package that
protects the primary package, like the box used to
contain the bottle of medicine. This is a added
protection for handling especially during transport.
Tertiary Package refers to the bigger package that
totally supports the product, like the big boxes that hold
dozen of bottles or dozen of smaller boxes for safety
transport or product shipment.