Chapter 1 MARKETING IN THE MILLENNIUM AGE

IMPORTANCE OF MARKETING

Marketing Is a process through which a product or service is launched and promoted

to possible customers
Is vital in any business and in one way or another all other functional areas
may be affected by it

Functions that show the significance of Marketing in any business:

1. Customer Businesses provide the customers' needs, wants and demands. Companies
need to get the attention of customers through marketing its products and
services

2. Finance- A business becomes more financially successful and stable when it is able
to effectively market its products and services. Manufacturing goods and
providing services to customers entail a cost

3. Human resources No business could survive without human resources to work for them.

4. Production More products being manufactured by a company means there would be

more quantity of goods to trade and more earning opportunity as well.

5. Competition always starts when certain goods and services grow to be more well-liked
and then other companies begin selling the same.

6. Decision- Often most companies are faced with different types of problems such as
what product to produce, how many products to manufacture, when to
create these products, how much to sell the product and for whom the
product is intended

7. Idea- The idea of marketing is so dynamic and has altered a lot through times.

8. Economy- According to Adam Smith, "nothing happens in our country until somebody
sells something

MARKETING SCOPE
1. A consumer wants Goods are created to suit consumer wants. Consequently, a study is made
and needs to discover consumer needs and wants

2. Consumer behavior - Marketers do study consumer behavior. It is the buyer behavior analysis
that assists marketer in market segmenting, targeting and positioning.

3. Product planning and development

4. Branding Many well-known companies espoused to the branding of their products

for reputation, appeal to more investment opportunities, build trust
among customers and for many other reasons

5. Packaging Besides serving as container or wrapper to the product for protection, the
packaging is also used by marketers as a way to draw the attention of
customers.

6. Channels of It is the function of the marketing manager and sales manager to make an
distribution important decision concerning the best fitting channel of distribution such
as wholesaling, distribution and retailing for the product.

7. Pricing policies Pricing policies for their products are planned and decided by the
marketing manager

8. Sales management Selling is an important component of marketing.

9. Promotion- Important elements of promotion consist of personal selling, sales

promotion, and advertising.

10. Finance Without finance, no marketing activity could be executed.

11.After-sales services In order to maintain good relationships with customers, marketing needs
to perform after-sales services.

What is marketed
(10) ten types of entities
1. Goods The major part of a country's production and marketing effort consists of
physical goods

2. Services- Today's economy advances, the focus is not anymore much center of
goods production but also in the production of services

3. Events are promoted by marketers. Events can be in the form of trade shows,
company anniversaries, entertainment award shows, local festivals, health
camps, concerts and so on

4. Experiences- Through offering a mix of both goods and services, marketers may create
experiences.

5. Persons Recently, celebrity marketing has become a business owing to the increase
in testimonial advertising.

6. Places Cities, states, regions, and countries compete to draw tourists to their
places

7. Properties can be categorized as real properties or financial properties. Real property

is the ownership of real estates, while financial property relates to stocks
and bonds

8. Organizations dynamically make effort to build an image in the minds of their target
public

9. Information can be created and promotes a product. Educational institutions,

encyclopedias, non-fiction books, specialized magazines, and newspapers
sell information.

10. The idea Each market offering consists of a basic idea. Products and services are
used as instruments for conveying some idea or benefit.

CORE CONCEPTS IN MARKETING

Philip Kotler and Keller Marketing is the process by which companies create value for customers
(2012) and build strong customer relationships in order to capture value from
customers in return".

Marketing creates value for the customer.

Need, Wants, and Demands

Human needs- are states of felt deprivation

(3)Three types of needs

1. Existing need Any need of the customers which is short-term and is readily obtainable is
known as existing need.

2. A latent need A need of a customer which is there but has not manifested Itself because
such a product has not been launched.

3. Incipient need It is a type of need which people want but there is no product to satisfy
that need.

Wants-are the form of human needs influenced by culture and individual personality.
Demand is the want for particular products that are supported by the ability and
willingness or readiness to buy them.

Demand could be in these natures, namely:

1. Negative demand- Major market dislikes the product, hence seeks to stay away from it
2. No Demand Some products face the challenge of no demand. Possibly customers are
unaware and uninterested in the product.

3. Latent Demand- is a demand which the customer realizes later Thus, while buying the
product, he might not want some features.

4. Declining demand Demand decreases over a period of time. Although there is still a demand
for the product, the demand is a declining one.

5. Irregular Demand is a demand which is not steady.

6. Full Demand In a perfect environment, a company must constantly have filled demand.

7. Overfull Demand- occur when the companies manufacturing capacity is inadequate but the
demand is above the supply

8. Unwholesome is the other face of negative demand

Demand

Marketing Offers
1. Product- Everything that can be offered to a market for attention, acquisition, use or
consumption that may satisfy a want or need

2. Service any activity or benefit that one party can present to another that is
basically intangible and does not result in the ownership of anything.

3. Experiences are knowledge or skill which is gained from doing, seeing or feeling things

Utility, Cost, Value, and Satisfaction

1. Utility means an overall ability of a product to gratify need and want. It is a
guiding concept to select the product.

2. Cost means the price of a product

3. Customer value is the difference between the customer gains from owning and using a
product and the cost of obtaining the product

Desired value refers to what customer wants in a product or service

Perceived value is the benefit that a customer believes he received from a product after it
was purchased

4. Satisfaction is a person's feeling of delight or displeasure as a result of comparing a

product's perceived performance in relation to his or her expectations.

Exchanges, Transaction, Relationships and Network

exchange- is at the heart of marketing

is an act of acquiring a preferred product from someone through offering
something in return.

Transactions- can be very simple, like buying a newspaper, or extremely complex, faking
a long time and involving many companies or agencies

Relationship marketing is the practice of building long-term profitable or satisfying dealings with
significant parties such as customers, suppliers, distributors, and others to
preserve their long-term preference in business

marketing network includes the company and its supporting stakeholders such as customers,
employees, suppliers, distributors, advertising agencies, colleges and
universities, and others whose role is regarded as necessary for the success
of a business

network- is the definitive conclusion of relationship marketing

market comprises all possible customers sharing a particular need or want who
might be eager and able to engage in exchange to gratify this need or
want.

Marketing is social and managerial process by which individuals and groups get what
they need and want by creating and exchanging product and value with
others.

marketer is one who seeks one or more buyers to engage in an exchange.

Prospect is someone to whom the marketer spots as possibly agreeable and able to
engage in the exchange

MARKETING MANAGEMENT TASKS

beneficial exchanges Marketing management is the study, planning, implementation and control
of programs intended to form, make and preserve equally _______

objectives relationships with target markets for the reason of reaching organizational
____

1. Conversional develops from the situation of negative demand in which all or most of the
marketing vital segments of the potential market hate the product or service and in
reality, may possibly pay a price to avoid it.

2. Stimulational the task of performing such state into positive demand

marketing

3. developmental The process of effectively transforming latent demand into an actual

marketing- demand

4. Remarketing- When the demand for product declines and shows a possibility of further
fall the marketing task involved

5.Synchromarketing When a product's current timing pattern of demand is marked by seasonal

or volatile fluctuations the marketing task of _____ is necessary to bring
the movement of demand and supply into better synchronization

6. Maintenance The task of the marketer in such a state is _________ through

marketing preservation of efficiency in the carrying out of day-to-day marketing
activities and eternal vigilance in spotting new forces that may threaten to
erode demand.

7. Demarketing The task of reducing such demand is known as ______

8. Counter-marketing The task of trying to destroy such demand is called _____

MAJOR MARKETING DECISIONS

•Strategic Planning
strategy is an outline of the company's roadmap for the successful attainment of its
goals and objectives

•Social Responsibility and Ethics

Ethics is likely to center on the individual or marketing group decision, while
social responsibility takes into concern the entire consequence of
marketing practices in society

six ethical values:

1. Honesty Be straightforward in dealings and present value and integrity.

2. Responsibility Accept results of marketing practices and provide the needs of customers
of all types, at the same time becoming good guardians of the
environment.

3. Fairness Balance buyer needs and seller interest reasonably, and stay away from
manipulation in all forms while shielding the information of the consumers.
4. Respect Recognize basic human dignity of all the people concerned through efforts
to communicate, understand and meet needs and be grateful for
contributions from others.

5. Transparency Form a character of openness in the practice of marketing through

communication, helpful criticism, action, and discovery.

6. Citizenship Accomplish all legal, economic, philanthropic and societal responsibilities

to all stakeholders and give back to the community and care for the
ecological environment.

•Research and Analysis

Market research is the process of gathering data to find out whether a particular
product/service will fulfill the needs of customers.

Developing Competitive Advantage and Strategic Focus

competitive advantage is the essence of a company's strategy. It determines what it will do
differently or better than the competition to achieve its objective

Operational Excellence strategy intends to achieve cost leadership

Product leadership as a competitive strategy intends to make a culture that continuously

brings better-quality products to market

Product leaders know that excellence in creativity, problem solving and teamwork is vital to
their success.

Customer Intimacy strategy centers on offering a distinctive range of customer services that
consents to a personalized service and customized products to meet
varying customer needs

Marketing Strategy Decision

strategy is the means of the process that objectives are realized. Marketing
strategy decisions are regarded as an essential decision-making for
marketing managers. It is an important part of planning.

Segmentation and Targeting

Segmentation is the process of dividing a whole market into various customer groups

Targeting entails making a decision which possible customer segments the company
will concentrate on

Product Decisions
Price is the value paid for a product or service in the market

Marketers frequently look at price decisions as the price at which they sell the
product

Distribution and Supply Chain Decisions

distribution channel is a way through which goods or services move from the manufacturing
company to the customer or the transfer of payment happens from the
customer to the company.

Location, Production, four major decision areas in supply chain management

Inventory,
Transportation

location, the geographic placement of production facilities, stocking points, and

sourcing points is the normal first step in creating a supply chain

production the strategic decisions include what products to produce, and which plants
to produce them in, allocation of suppliers to plants. plants to-depots, and
depots to customer markets.
Inventory decisions refer to means by which inventories are managed.

Transportation are directly connected to the inventory decisions since the best option of a
decisions mode is often found by trading-off the cost of using the particular mode of
transport with the indirect cost of inventory associated with that mode.

Promotion Decisions are made to help in informing the target marketing of the product

Promotion mix is a combination of various marketing techniques, oriented to acquire a

common target

Implementing and Control

Consideration needs to be given to implementing the strategy

Maintaining Customer Relations

Loyal customers are at the core of every business' success

NEW REALITIES AND TRENDS IN MARKETING IN THE MILLENNIUM AGE

Visibility is one aspect of marketing that won't change regardless of the year

1. Increased focus on Customer experience is the heart of marketing for every industry.
customer experience

2. Engaged and Talk of measuring marketing has been on an endless loop lately
effective measuring
Analytics 2.0

3. Marketing To make the first two trends on the list work, executives must be data-
technologists and data driven
scientists as the new
marketing lieutenants

4. Personalized As companies work to individualize everything from Coca-Cola cans to

everything shoes, mass customization has transitioned into personalization

5. Better video content Content is still king, but the kind of content that rules the web is changing

6. More social media Companies need to change the way that they think about social media.
marketing-

7. Embrace the lot. The Internet of Things has been in its infancy.

8. Chatbots and Al go Providing positive customer experience and service means leveraging the
mainstream power of technology.

9.Right-time marketing Real-time marketing with eyes out for opportunities to market and score
instead of real-time has been hot the last few years.
marketing

10. Prepare for Many are suggesting that CMOs own digital transformation. What CMOs
marketing to own should actually own is the digital transformation "campaign". It is the
digital transformation process of showing the market and teams that a company is transforming
campaigns