KEY CONCEPTS IN

MARKETING

maureen castillo
dyna enad
carelle trisha espital
ethel silva
WHAT IS MARKETING?
 Marketing – is a social and managerial
process by which individuals and groups
obtain what they need and want through
creating and exchanging products and value
with others.
 NEEDS, WANTS
PRODUCTS
& DEMANDS

VALUE, SATISFACTION
MARKETS
& QUALITY

EXCHANGE, TRANSACTIONS
& RELATIONSHIPS
NEEDS, WANTS AND DEMANDS
 Need
 States of felt deprivation.
 physical, social and individual needs.
 Wants
 The form taken by human needs as they are
shaped by culture and individual personality.
 Demands
 Human wants that are backed by buying power.
PRODUCTS
 Anything that can be offered to a market for
attention, acquisition, use, or consumption that
might satisfy a want or need. It includes physical
objects, services, persons, places, organizations,
and ideas.
VALUE, SATISFACTION &
QUALITY
 Customer Value
 The difference between the values the customer gains from
owning and using a product and the cost of obtaining the
product.
 Customer Satisfaction
 The extent to which a product’s perceived performance
matches a buyer’s expectations.
 Total Quality Management (TQM)
 Programs designed to constantly improve the quality of
products, services, and marketing process.
EXCHANGE, TRANSACTIONS &
RELATIONSHIPS
 Exchange
 The act of obtaining a desired object from someone by
offering something in return.
 Transaction
 A trade between two parties that involves at least two
things of value, agreed-upon conditions, a time of
agreement, and a place of agreement.
 Relationship Marketing
 The process of creating, maintaining and enhancing strong,
value-laden relationships with customers and other
stakeholders.
MARKET
 The set of all actual and potential buyers of a product or
service.

 Marketplace – physical, as when one goes

shopping in a store
 Marketspace – is digital, as when one goes
shopping on the internet
 Metamarket – used to describe a cluster of
complementary products and services that are
closely related in the minds of consumers but are
spread across a diverse set of industries.
 A Simple Marketing System
COMMUNICATION

GOODS & SERVICES

INDUSTRY MARKET
(A collection (A collection
of sellers) of buyers)
MONEY

INFORMATION
 Structure of Flows in a Modern Exchange
Economy
RESOURCES RESOURCES
RESOURCE
MARKETS
MONEY MONEY
TAXES & SERVICES
GOODS & MONEY
SERVICES
GOVERNMENT
MANUFACTURER CONSUMER
MARKETS
MARKETS S&M MARKETS
TAXES
TAXES &
S&M T&G
GOODS
MONEY
MONEY
INTERMEDIARY
MARKETS
GOODS & SERVICES GOODS & SERVICES
MARKETING
 means managing markets to bring about
exchanges for the purpose of satisfying human
needs and wants.
 process by which individuals and groups obtain
what they need and want through creating and
exchanging products and value with others.
Main Actors and Forces in a Modern
Marketing System

COMPANY
S
U (marketer)
P
P MARKETING END
L USER
INTERMEDIARIES
I MARKET
E
R
S COMPETITORS
Other Key Concepts
Marketers and Prospects
A marketer is someone seeking a response
(attention, a purchase, a vote, a donation)
from another party, called the prospect.
Marketing Channels
 Communication channels
 Deliver and receive messages from target buyers,
and include newspapers, magazines, etc…
 Distribution channels
 Used to display, sell or deliver the physical
product or service(s) to the buyer or user.
 Service channels
 Used to carry out transactions with potential
buyers.
Supply Chain
 Describes a longer channel stretching from raw
materials to components to final products that are
carried to final buyers.
Competition
 Includes all the actual and potential rival offerings
and substitutes that a buyer might consider.

Four Levels:
 Brand competition

 Industry competition

 Form competition

 Generic competition
Marketing Environment
 Task environment
 Includes the immediate actors involved in
producing, distributing, and promoting the offering.
 Broad environment
 Consists of components which contain forces that
can have a major impact on the actors in the task
environment
Marketing Program

 Marketing program – consists of numerous

decisions on the mix of marketing tools to use
 Marketing mix – set of marketing tools the
firm uses to pursue its marketing objectives in
the target market
MARKETING MANAGEMENT
 The analysis, planning, implementation, and
control of programs designed to create, build, and
maintain beneficial exchanges with target buyers
for the purpose of achieving organizational
objectives.
 Involves:
 Demand Management
 Demarketing - Marketing to reduce demand temporarily or
permanently – the aim is not to destroy demand, but only to
reduce or shift it.
 Customer Relationship Management
Marketing Management Process

 Situation Analysis
 Economic environment
 State of macro-economy and changes in it also bring
marketing opportunities and constraints
 Examples
 Factors of high inflation and unemployment levels
 Changes in technology
Marketing Management Process

 Situation Analysis
 Social environment
 Includes general cultural and social traditions, norms and
attitudes
 As values change, change brings the need for new
products and services
 Public demand for a cleaner environment
Marketing Management Process

 Situation Analysis
 Political environment
 Includes attitudes and reactions of the general public,
social and business critics

 Legal environment
 Includes federal, state and local legislation directed at
protecting both business competition and consumer rights.
 Deregulation
Marketing Management Process

 Marketing planning
 Establishing objectives
 Provides the framework for the marketing plan

 Selecting the target market

 What do customers want?
 What must be done to satisfy these wants or needs?
 What is the size of the market?
 What is its growth profile?

 Developing the marketing mix

 Controllable variables: product, price, promotion and place
(channels of distribution), must be managed to satisfy target
market and achieve objectives
Marketing Management Process

 Implementation and Control

 Implementing
 Putting the plan into action and performing marketing tasks
according to predefined schedule
 Marketing executives must closely monitor and coordinate
implementation of the plan

 Controlling
 Results are measured
 Results are compared with objectives
 Decisions are made on whether the plan is achieving
objectives
Marketing management process

 Analysis/Audit - where are we now?

 Objectives - where do we want to

be?
 Strategies - which way is best?

 Tactics - how do we get there?

 Implementation - Getting there!

 Control - Ensuring arrival

The marketing opportunities faced by
organizations depend on the changing needs of
society:
• Consumers are becoming more sophisticated
and more discerning in their expectations.
• Globalization of the world’s marketplace has not
only created new possibilities but also challenge
of new competition.

• Examples
Why is marketing planning
necessary?
 Systematic futuristic thinking by management
 better co-ordination of a company’s efforts
 development of performance standards for
control
 sharpening of objectives and policies
 better prepare for sudden developments
 MARKETING MANAGEMENT
PHILOSOPHIES
 five different orientation of firms towards the
marketplace:

 The PRODUCTION CONCEPT holds that

consumers will prefer products that are widely
available and inexpensive.
 MARKETING MANAGEMENT
PHILOSOPHIES
 The PRODUCT CONCEPT holds that consumers
will favor those products that offer the most quality,
performance, or innovative features.
 MARKETING MANAGEMENT
PHILOSOPHIES
 The SELLING CONCEPT holds that consumers and
businesses, will ordinarily not buy enough of the
organization’s products. The organization must
therefore, undertake an aggressive selling and
promotion effort.
 MARKETING MANAGEMENT
PHILOSOPHIES
 The MARKETING CONCEPT holds that the key to
achieving its organizational goals consists of the
company being more effective than competitors in
creating, delivering, and communicating customer
value to its chosen target markets.
MARKETING MANAGEMENT
PHILOSOPHIES
 The SOCIETAL MARKETING involves the marketer
paying attention not only to the needs of customers
but also to the wider natural and social
environment. Marketers’ concern for the natural
environment involves taking into account the
environmental impact of production and distribution.
PRODUCTION PRODUCT SALES MARKETING SOCIETAL
References

 Principles of Marketing, 7th ed. by Philip

Kotler and Gary Armstrong
 Marketing Management, An Asian
Perspective 3rd ed. by Philip Kotler et al.