FUNDAMENTALS OF MARKETING

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FUNDAMENTALS OF MARKETING

Market

A place where buyers and sellers make transactions

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FUNDAMENTALS OF MARKETING

Marketing Defined

Is the transaction (exchange) process, in which two parties (buyer and seller) give something of value to each other. This is similar to Sales

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FUNDAMENTALS OF MARKETING

Components of Market

Seller (Company) Buyer (Customer)

Company Customer

Figure 1: Two interacting components in a Market

Customer

Company 2 Competitor

Figure 2: (Another) Two interacting components in a Market 3/8/2013

FUNDAMENTALS OF MARKETING

Components of Marketing (3 C)

Competitor

Objective: Outperform Competitors Key Result Area: Market Share

Company

Objective: Profit Key Result Area: More Profit

Customer

Objective: Satisfaction Key Result Area: Sales

Figure 3: 3 Cs of Marketing

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FUNDAMENTALS OF MARKETING

Key Results Areas

Sales it is obtained from customer satisfaction. Market Share it is the ratio of the brand sales versus the total market sales. Profit Net income of the company.
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Market Share of Lap Top in 2008

source: yugatech

FUNDAMENTALS OF MARKETING

Market Share: Detergent Bars

2001: PhP 5.90 B
30
26 29 27 24 21 24 21 29

2002: PhP 6.10 B

2003: 6.53 B

25 20 15

12

10
7

10

5 0 Tide Surf
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Mr. Clean 2002 2003

Speed

FUNDAMENTALS OF MARKETING A review

3 Cs in Marketing

Objective

Key Result Area

Action

Customer

Satisfaction

Sales

Competition

Outperform Competitors

Market Share

Company

Profit

More Profit

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Customer - Action

SALES

Needs & Wants

Needs Basic reason or minimum requirement customers look for in a product Wants Motivating attributes
(Characteristics)

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SALES

Wants (Features, Advantages & Benefits)

Features product attributes

Ingredients - Calcium

Advantages what the features can do in the product

Hard Teeth

Benefits provide a favorable result in the future when the customer uses the product or services.

Savings, Confidence
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Competition - Action

Market Share

Target Market (Segmentation)

The process of dividing the total market into smaller groups seeking similar needs and wants. It enables a company to develop a positioning and marketing strategy that can satisfy a smaller yet focused range of customers needs and wants.
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Target Market & Segmentation

4 Ways of Segmenting the Market

By needs and wants. By demographics. By psychographics By consumer behavior

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Target Market & Segmentation

By Needs and Wants

The major way for segmenting the market. Ex. Vitamins, Restaurant,

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Target Market & Segmentation

By Demographics

Deals with questions such as Who you are and How much do you earn.

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Target Market & Segmentation

Demographics Segmentation Variables

Age Gender Status Income Education Profession Location

Family Size Religion Nationality

Baby, Kids, Teenager, Yuppies, Senior Citizen Male, Female, Gay/Lesbian Single, Married, Widow, Divorced, Separated A, B, C+, Broad C, D, E High School, College, Masters, Vocational Businessman, Nurse, Factory Worker, Student 1. density urban, rural sub-urban 2. geographic GMA, Luzon, Asia Big, Small, Couple, Bachelor Catholic, INC, Buddhist, Alagad ni Batman Pinoy, Sakang, Kano,
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Target Market & Segmentation

By Psychographics

Deals with questions such as What you do and How you spend you money and is being used for creative advertising messages. It relates to a persons lifestyle
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Target Market & Segmentation

Psychographics Segmentation Variables

Personal and Interests

Food Health and Beauty Shopping Drugs Technology

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Target Market & Segmentation

By Behavior

The manner or approach by which the customers purchase their products.

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Target Market & Segmentation

Behavioral Segmentation Variables

Purchase Frequently

Regular, Occasional

User Status
user User rate Loyalty status
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Non-user, Regular user, First time Heavy user, Light User Absolute, Strong, Small, None

Company - Action

Company

Profitability is the Key

Mission and Vision Statements Industry and Competition (SWOT) Analysis

Target Customer Pricing Distribution Human Resources Advertisement, Promotions Additional Workforce Market Integration
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Key Personnel Factors For Success

Budget Allocation

Company

Mission & Vision (Objective)

Mission It answers the question What is our business? as it defines the needs and wants of the market.

To disseminate, generate, preserve and apply scientific, engineering, architectural and IT knowledge. To provide its students with professional and advance scientific engineering, architectural and information technology education through rigorous and up to date academic program with ample opportunities for the exercise of creativity and the experience of discovery.
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Company

Mission & Vision (Objective)

Vision It explains the companys future and what it intends to be. The purpose of expanding the business.

The center for international excellence in Technology education by:

Providing instructions that are current in content and state-of-the art in delivery; Engaging in cutting edge research; Responding to the big local and global technological challenges of the times.
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Company

Industry and Competition (SWOT) Analysis

Strength internal positive factors which will help the company achieve its key result areas. Weakness internal negative factors that may hinder the attainment of the companys key result areas. Opportunities external positive situations which will enhance the companys position in the industry. Threats external negative situations that may dampen its position in the industry.

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FUNDAMENTALS OF MARKETING A review

3 Cs in Marketing

Objective

Key Result Area

Action

Customer

Satisfaction

Sales

Needs & Wants

Competition

Outperform Competitors

Market Share

Market Segmentation

Company

Profit

More Profit

Mission, Vision, SWOT Analysis, Success Factors, Budget , Finance

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FUNDAMENTALS OF MARKETING

Marketing Defined Modern Version

Is the exchange process , in which two or more parties give something of value to each other. It is the process of continuously and profitably satisfying the target customers needs and wants superior to competition
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FUNDAMENTALS OF MARKETING

Marketing Defined Modern Version

It is the process of continuously and profitably satisfying the target customers needs and wants superior to competition

3/8/2013