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FUNDAMENTALS OF MARKETING

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Market

A place where buyers and sellers

make transactions

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Marketing Defined

Is the transaction (exchange)

process, in which two parties (buyerand seller) give something of value

to each other.

This is similar to Sales

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Components of Market

Seller (Company)

Buyer (Customer)

FUNDAMENTALS OF MARKETING

Company Customer

Figure 1: Two interacting components in a Market

Customer Company 2

Figure 2: (Another) Two interacting components in aMarket

Customer Competitor

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Components of Marketing (3 C)

FUNDAMENTALS OF MARKETING

Objective: Satisfaction

Objective: Outperform Competitors

Objective: Profit

Key Result Area: Sales

Key Result Area: Market Share

Key Result Area: More Profit

Figure 3: 3 Cs of Marketing

Company

Customer

Competitor

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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 2008source: yugatech

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Market Share: Detergent Bars

FUNDAMENTALS OF MARKETING

26

29

27

29

21

24

12

7

109

24

21

0

5

10

15

20

25

30

Tide Surf Mr. Clean Speed

2001 2002 2003

2001: PhP 5.90 B 2002: PhP 6.10 B 2003: 6.53 B

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A review

3 Cs in Marketing

Satisfaction

Outperform

Competitors

Profit

Customer

Competition

Company

Sales

Market Share

More Profit

?

?

?

Objective Key Result Area Action

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Customer - Action

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Needs & Wants

Needs Basic reason or

minimum requirement

customers look for in a product

Wants Motivating attributes(Characteristics)

SALES

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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 inthe future when the customer uses theproduct or services. Savings, Confidence

SALES

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Competition - Action

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Target Market (Segmentation)

The process of dividing the total

market into smaller groups seekingsimilar needs and wants.

It enables a company to develop a

positioning and marketing strategythat can satisfy a smaller yet focused

range of customers needs and

wants.

Market Share

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4 Ways of Segmenting the Market

By needs and wants.

By demographics.

By psychographics

By consumer behavior

Target Market & Segmentation

T t M k t & S t ti

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By Needs and Wants

The major way for segmenting

the market.

Ex. Vitamins, Restaurant,

Target Market & Segmentation

T t M k t & S t ti

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By Demographics

Deals with questions such as

Who you are and How muchdo you earn.

Target Market & Segmentation

T t M k t & S t ti

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Demographics Segmentation Variables

Age Baby, Kids, Teenager, Yuppies, Senior Citizen

Gender Male, Female, Gay/Lesbian

Status Single, Married, Widow, Divorced, Separated

Income A, B, C+, Broad C, D, E

Education High School, College, Masters, Vocational

Profession Businessman, Nurse, Factory Worker, Student

Location 1. density urban, rural sub-urban

2. geographic GMA, Luzon, Asia Family Size Big, Small, Couple, Bachelor

Religion Catholic, INC, Buddhist, Alagad ni Batman

Nationality Pinoy, Sakang, Kano,

Target Market & Segmentation

T t M k t & S t ti

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By Psychographics

Deals with questions such as

What you do and How youspend you money and is being

used for creative advertising

messages. It relates to a persons lifestyle

Target Market & Segmentation

T t M k t & S t ti

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Psychographics Segmentation Variables

Personal and Interests

Food

Health and Beauty

Shopping

Drugs

Technology

Target Market & Segmentation

Target Market & Segmentation

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By Behavior

The manner or approach by

which the customers purchasetheir products.

Target Market & Segmentation

Target Market & Segmentation

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Behavioral Segmentation Variables

Purchase Frequently Regular, Occasional

User Status Non-user, Regular

user, First time

user

User rate Heavy user, Light User

Loyalty status Absolute, Strong,

Small, None

Target Market & Segmentation

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Company - Action

Company

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Profitability is the Key

Mission and Vision Statements

Industry and Competition (SWOT) Analysis Target Customer

Pricing

Distribution

Key Personnel Factors For Success Human Resources

Budget Allocation Advertisement,

Promotions

Additional Workforce

Market Integration

Company

Company

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Mission & Vision (Objective)

MissionIt answers the question What

is our business? as it defines the needsand wants of the market. To disseminate, generate, preserve and apply

scientific, engineering, architectural and ITknowledge.

To provide its students with professional andadvance scientific engineering, architectural andinformation technology education through rigorousand up to date academic program with ampleopportunities for the exercise of creativity and theexperience of discovery.

Company

Company

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Mission & Vision (Objective)

VisionIt explains the companys future

and what it intends to be. The purpose ofexpanding the business.

The center for international excellence in

Technology education by:

Providing instructions that are current in contentand state-of-the art in delivery;

Engaging in cutting edge research;

Responding to the big local and global

technological challenges of the times.

Company

Company

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Industry and Competition (SWOT) Analysis

Strength internal positive factors which will helpthe company achieve its key result areas.

Weakness internal negative factors that mayhinder the attainment of the companys key resultareas.

Opportunities external positive situations whichwill enhance the companys position in the

industry. Threats external negative situations that may

dampen its position in the industry.

Company

A review

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A review

3 Cs in Marketing

Satisfaction

Outperform

Competitors

Profit

Customer

Competition

Company

Sales

Market Share

More Profit

Needs & Wants

Market

Segmentation

Mission, Vision,

SWOT Analysis,

Success Factors,

Budget , Finance

Objective Key Result Area Action

FUNDAMENTALS OF MARKETING

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Marketing Defined Modern Version

Is the exchange process , in

which two or more parties givesomething of value to eachother.

It is the process of continuously

and profitably satisfying thetarget customers needs andwants superior to competition

FUNDAMENTALS OF MARKETING

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Marketing Defined Modern Version

It is the process of continuously

and profitably satisfying thetarget customers needs and

wants superior to competition

FUNDAMENTALS OF MARKETING