1_Q1-Marketing.pptx PRINCIPLES OF MARKETING

PRINCIPLES OF MARKETING

1. PRINCIPLES OF MARKETING

2. _____1. Which of the following does NOT belong to the group? Company C. Customers B. Competition D. Commodity _____2. What is the total system of interacting business activities designed to plan, price, promote and distribute want-satisfying goods or services to present and potential customers? Consumerism C. Market Marketing D. Promotion _____3. Which is of the following is the marketing element that has something to do with what is the most affordable price for customers, their capacity to pay, and their willingness to pay? Place C. Price Product D. Promotion

3. _____4. Which of the following refers to the condition wherein expectations are met? Satisfaction C. Goals Want D. Objectives _____5. Which is the type of product that has a physical form? Intellectual Property C. Goods Experiences D. Service _____6. Which of these are specific goals that can be measured in either short-term or long-term period, and is characterized as Specific, Measurable, Attainable, Relevant, and Time-bounded (SMART)? A. Target C. Expectations B. Objectives D. Satisfaction

4. _____7. Which of these are aspirations that every company would like to pursue, the general direction that it wants to take which serves as the main purpose of the company, and are usually attained in a long period of time? Goals C. Expectations Objectives D. Satisfaction _____8. Which one is known as the 4P’s (Product, Price, Place, Promotion) of Marketing? Consumerism C. Sales promotion Marketing mix D. Modern Marketing System _____9. Which role of a marketer mediates between the interests of the company and the needs of the consumers? A. Instigator B. Innovator C. Integrator D. Implementer

5. _____10. Which is NOT an example of the marketing goals of most companies? To generate a 15% increase in sales every year. To develop and maintain a profitable base of loyal customers. To understand customers’ behavior and communicate to them the marketing offerings. To develop products and services which contribute to the quality of life and promote environmental conservation. _____11. When a marketer ensures that their products have an edge over those developed by the competitors, he takes on the role of an? Instigator C. Innovator Integrator D. Implementer _____12. Who among the following acquires goods or services for direct use and has no intention of reselling them or using them to create another good or service? Consumer C. Customer Marketer D. Producer

6. _____13. Who among the following are the actual or the potential buyers of a product? Customer C. Market Industry D. Target Market _____14. Who among the following are the most probable and most logical customers and may likewise be the heaviest customers? A. Consumer C. Market B. Industry D. Target Market _____15. Which of the following does NOT belong to the group? A. Place C. Price B. Principles D. Product

7. What I Need to Know • Define and explain Marketing and its Concepts • Explain the Marketing Process

8. Julie’s came into being in 1981. Prior to that, Mrs. Julie Gandionco, the clan’s matriarch who started it all, toiled hard as a canteen concessionaire of a large factory in Cebu that employed thousands. If you run the canteen of such a huge company serving thousands of hungry employees, one can imagine the volume of cooked food that comes out of Julie’s kitchen, day in and day out, from morning to afternoon. Even the bread that she served in the canteen accounted for a big volume, such that she had to farm out her daily orders to many small bakeries just to keep us with her daily bread allocation. In one of these bakeries, one of the employees, a

9. What’s In Instructions: Carefully read the excerpt from Rey Gamboa’s Pinoy Success Story taken from the Philippine Star on August 31, 2013 and answer the questions below. Write your answer on a separate sheet of paper. One of the Cinderella success stories in local entrepreneurship is Julie’s Bakeshop which had its roots in Cebu City. Business & Leisure talked with Mr. Bien Topacio, a member of the Gandionco clan which started Julie’s Bakeshop and is now the franchise business development manager of Julie’s, as he traced the humble beginnings of the bakeshop.

10. baker himself, remarked on how big her volume of daily bread needs was, and that she should just consider putting up her own bake shop instead of giving the business to others. According to Bien, Julie herself loved to cook, which is essentially why she chose the canteen business to start with, but she didn’t know a thing about baking. She was hesitant to go into the bakery business, until the baker himself offered: “Why don’t you just get me to bake for you and so you can open your own bake shop? That was in 1981, and Julie’s Bake Shop opened in Wireless, Mandaue in Cebu. It was an immediate hit, and not too long after, a second branch opened in Urgello St., and the chain of bake shops was well on its way. In 1988, the first Julie’s Bake Shop opened

11. outside of Cebu, in Iloilo City. All these stores were family-owned, (some with partners) a testament to how hard-working the family was and how the driven matriarch ruled by example. Here was a housewife/mother-turned- businesswoman who did not have fancy educational credits to her name, no master’s degree, or PhDs to speak of, just a lot of perseverance, hard work and good business sense. Thirty-two years later, Julie’s Bake Shop is the largest chain of bake shops in the Philippines. In this country where there is a bake shop in every corner in every community, this is no mean feat.

12. Discussion Questions: 1. How did Julie start the baking business? 2. What was her strategy that she was able to open several branches after for a short period of time and expand it outside Cebu City? 3. What is the classification of Julie’s Bakeshop as to its nature of business activity?

13. What’s New ACTIVITY: FILL IN THE BLANKS Instructions: Inside the parentheses below are different products. You are to choose your favorite brand of that specific product category. The first one is given as an example. Please do not forget to write the following in your answer sheet:

14. MARKETING is the process of continuously and profitably satisfying target customer’s needs, wants, and expectations superior to competition (Go & Go, 2017) is a form of communicating or promoting the value of a product, service, or brand to the customers (So, Torres, & De Guzman, 2016) • is the activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large as defined by The American Marketing Association (2013)

15. is a total system of interacting business activities designed to plan, price, promote and distribute want-satisfying goods or services to present and potential customers (William J. Stanton) • is a science and profession guided principally by the universal principles of ethics, corporate citizenship, and corporate responsibility (Philippine Marketing Association) Through the years the definition of marketing has included non-profit institutions like education and health care providers. It has also emphasized that business’ responsibility goes beyond the survival of the firm; the betterment of society should also be considered. Marketing activities apply not only to profit-oriented businesses (e.g. Jollibee, SM, etc.) but also to non-profit organizations (e.g. Philippine Red Cross, foundations, and the like).

16. In simpler terms, Marketing is delivering customer satisfaction at a profit by (1) attracting new customers by promising superior value, and (2) keeping current customers by delivering satisfaction. 1. Needs, Wants, Demands Needs – are states of felt deprivation, a part of human makeup; these are physiological necessities (food, clothing, shelter); including safety and warmth; social needs-love, belongingness, relationships; esteem-prestige &accomplishments;

17. & self-expression required by a human being for the health and well-being of his body and mind. These are the qualifying or the “gatekeeper” dimension in a purchase. An unsatisfied need is defined as a condition that motivates a consumer to satisfy the unmet need. Figure 4 below shows the hierarchy of needs according to Abraham Maslow. Wants - are more psychological, indicating preferences which could improve the consumer’s life condition. Demands – are human wants that are backed by buying power.

18. Figure 4. Abraham Maslow’s Hierarchy of Needs

19. Marketing is thinking about business in terms of customer needs and their satisfaction. And as peoples’ needs, wants, expectations are varied, more so insatiable (cannot be satisfied), marketing therefore is dynamic as it changes overtime as people change. All our needs must be satisfied like the need for food, clothing, and shelter. Of course, not everyone shares the same tastes, preferences, and beliefs in the benefits we get from commodities available in the market. We all vary in looking for products or services that satisfies our needs, wants, and demands/ expectations. It is in this regard that most companies conduct market research on this before producing a product. Companies must make sure their product is highly needed, will be wanted, and will meet the expectations of a prospective market of the product to meet the marketing goals of the company.

20. 2. Market Offerings Product - is anything that can be offered to satisfy a need or a want : physical product (good), service, experience, person, place, organization, information, idea . Service – is a type of product; a work performed for remuneration/pay. Key Players in Market Offerings Marketer – is a person who identifies the goods and services needed or wanted by customers and markets them. Customer – is a person or business that buys goods or avails of services produced.

21. Consumer – refers to a person who acquires goods or services for direct use and has no intention of reselling them or using them to create another good or service. 3. Value, Satisfaction and Quality Value - refers to the value customers place on a product or service. Since customers have different needs and buying capacities, consumers assign varying values on the same product or service. The product with the highest quality does not always provide the highest value for costumers. The perception of the value is affected by the cost acquired to acquire the product or service.

22. Satisfaction – is the measure of how well customer expectations from a purchased product or service have been met. Quality – is closely related to satisfaction; its broad definition: ability to satisfy customer needs; its narrow definition: no defects According to Torres and De Guzman (2016), to ensure maximum value and satisfaction, marketers must: Balance product or service quality and price Establish consistency among product availability, level of customer service and efficiency.

23. • Create a buying atmosphere and deliver purchase convenience. 4. Exchange, Transactions, Relationships Exchange - refers to the trade of things or services, or ideas of value between buyer and seller. Offerings could be money, product, service, idea. Transaction – refers to a trade of values between two parties; it is marketing's unit of measurement. (either monetary transactions or barter transactions)

24. Relationship (Marketing) – is going beyond short-term transactions; it is long- term relationships with valued customers, partners, etc. Marketing network – is the company and all its supporting stakeholders 5. Markets Market – according to an Economist's definition, it is a place (virtual or physical) where buyers and sellers meet; Market – according to a Marketer's definition, it is the set of actual and potential buyers of a product;

25. the sellers of a product are labeled as the “industry”. Industry – according to a Marketer's definition, pertains to the sellers of a product. Target Market – the most probable and most logical customers and may likewise be its heaviest customers.

26. THE MARKETING PROCESS The marketing process can be illustrated in the following diagram: (So, Torres, & De Guzman, 2016)

27. Prior to the marketing of specific products and/or services, a marketing company conducts a thorough analysis of the external environment, the market, its competitors and customers, and an incisive audit of its internal operating characteristics. This is followed by the formulation of relevant marketing strategies coupled with a calibrated response using the elements of marketing commonly known as the 4P’s which stand for Product, Price, Place, Promotion. As soon as marketing strategy is implemented, regular monitoring takes place to identify deviations, and if necessary, adjust any or all elements of the marketing mix. This will be further elaborated in Module 5. As a process, Marketing involves creating the right product, offering it a right price, making it available to consumers at the right place, and communicating it to them with the right promotion. (see Marketing definition by the American Marketing Association (2013 earlier).

28. The Marketing Activities in the Marketing Process The Marketing Elements (4P’s), or known as the Marketing Mix (Te, Marte, & Abrina, 2018) Creating A product with useful and attractive features for the customers Pricing A price affordable to the customers Distributing A place where customers can conveniently buy the product Communicating A promotion that will capture the attention of customers

29. All these elements (4P’s) are strategically planned/mixed to complement one another to achieve goals. Goods & services created based on customer’s dimensions of satisfaction provides greater advantage in the competition. “The simplest, oldest, and most natural way of marketing a service or product for profit and nonprofit purpose is “by word of mouth”. To identify and appeal to a group of consumers, activities such as advertising, branding, pricing, and sales are some of the strategic functions involved. Key Objectives of the 3C’s of Marketing: (Go & Go, 2017) According to Go & Go (2017) , “the overriding objective of the company is to first have a bond with the customer to develop a relationship that is customer-centric, then to think of a competitive advantage that addresses gaps in the customer’s world. This means

30. that while companies must primarily know the problems of the customers, they must provide a solution while being profitably superior to their competition.” The marketing philosophy of “ being better than before , better than others and better than expected ” can provide a standard for judging marketing effectiveness.

31. What’s More ACTIVITY: IDENTIFICATION Instruction: Identify which of the 4P’s of Marketing is being referred to. _________1. A “Buy 1 Take 1” opening promo of burgers of a newly-opened food store. _________2. The core i5 laptop of Lenovo ideapad series. _________3. An online store that guarantees delivery of milk teas on time. _________4. Max's Restaurants: The world is better when we come together. _________5. The cheapest face shield I was able to buy.

32. _________6. Lazada, Zalora, and the other virtual stores _________7. Facebook ads _________8. Shall I buy the most expensive face mask? _________9. Winrox: train to Busan _________10. The only open gadget store in E-mall where I bought my smart phone.

33. What I Have Learned ACTIVITY: APPLICATION OF THEORIES/PRINCIPLES Instruction: Choose an existing product in the market. List down five (5) of its top competing brands. After which describe the competitive advantage of the product you have chosen. Please do not forget to write the following in your answer sheet: 1. Choose the best product in the market _____________________________________ 2. Choose its top 5 rival products: _______________________________________________________________________________________________________________________

34. What is the superior value (or the distinguishing or outstanding feature) of your chosen product compared to its rivals in terms of the 4P’s of Marketing? Product____________________________________________________ Price____________________________________________________ Place____________________________________________________Promotion ________________________________________________________ 4. If you were the 2nd best product (the no.1 rival product), what will you do to outperform your competitor and make your product excel? Discuss your answer. __________________________________________________________

35. What I Can Do ACTIVITY 1: MY SIMPLE PROPOSAL Instructions: Your father was a driver of a touring business and was offered to purchase the van he is driving on a rent-to-own basis. He was able to pay with his daily income as a driver, but when the pandemic started, he has yet to pay the remaining balance of 25%. Tourism for now is out of service, and your father is out of job. Now, he wants to sell it to make money. Your mom used to have an eatery near the school a few years back but closed it to take care of the younger siblings. Everyone is upset but you knew that when an opportunity closes, another opens, and you just must be quick, adaptive, innovative, and creative, and seize the opportunities out of these problems. You wanted to help-out and figured-out that there is a better solution to your family’s problem. What would you propose

36. to your family, and how will you do it? Check the list of activities below and organize them accordingly by writing the corresponding correct sequence. Please do not forget to write the following in your answer sheet: Name: ___________________ Year and Section: __________________

37. Identify who will be your customers and analyze the buying behavior of the possible customers in your area. A. Make action plans, based on the marketing mix (4P’s). B. Discuss with your family and help them analyze the market needs, wants, and demands of the community this time of pandemic. C. Develop strategies to check for positive response for your planned food businessfrom the customers. D. Tell your relatives and friends to tell their friends of your new business. E. You tell your parents how your family can market the family’s skills, capabilities, expertise, resources, by pointing out that your mom can still actually continue her food business and you father may serve as delivery serviceman.

38. ACTIVITY 2 : MY SIMPLE MARKETING PLAN Instruction: Craft a simple marketing plan of the above scenario, using the matrix below.

39. Lesson 2 What I Need to Know • identify the common goals of marketing • formulate your marketing goals for your product or service • interpret the roles of a marketer

40. What’s In ACTIVITY: UNFULFILLED MARKETING GOALS Instructions: In the previous lesson, you have identified the different brands that you are regularly using. This time I want you to research on two brands that no longer exist. Research what cause the brand to fail? What unfulfilled marketing goals contributed to this? Write your answers on a separate sheet of paper.

41. What’s New One of the main goals of a company is to gain profit. However, for marketing-oriented businesses, there are other important goals that need to be satisfied. In this Lesson2, you will learn that marketing goals guide a company in achieving its objectives. With the correct strategies, these goals can give the company a competitive advantage in the market and enable it to sustain its functions and continuously serve its market and reward its investors.

42. MARKETING GOALS AND OBJECTIVES Goals are aspirations that every company would like to pursue or the general direction that it wants to take. Goals serve as the main purpose of the company and are usually attained in the long term. Although it is primarily broad, a goal should not be overly extensive that it becomes difficult to translate it into specific objectives. Examples: 1. To become the market leader of a (particular) business or industry 2. To build customer loyalty through a (particular) marketing program 3. To expand our markets and identify new markets for our product or service 4. To provide positive name of product or service or experience to customers

43. Objectives are the specific goals that can be measured in the short term (one year or less) or the long term (more than one year). Thus, objectives should be SMART or specific, measurable, attainable, relevant and time-bounded. Examples: 1. To achieve 20% of sales through online marketing this pandemic 2. To achieve 20% market share by the end of 2022 3. To generate a 15% increase in online sales every year 4. To increase the number of repeat customers by 5% every quarter Marketing is the key for success of any organization whether it is for profit or non- profit organization. By simply knowing its purpose you will be able to realize the importance of marketing.

44. Common Marketing Goals 1. Understand the market and its consumers and satisfy their changing needs and wants. 2. Introduce and innovate products and services that improve on human condition and the quality of life and promote environmental conservation. 3. Design and implement effective customer-driven marketing strategies and develop marketing programs that deliver superior value to consumers. 4. Build or develop and maintain mutually beneficial and profitable base of loyal customers or lasting relationships with customers.

45. 5. Capture customer value to create profits: building brand awareness, generating high sales lead volume, establishing thought leadership, boosting sales, and increasing brand engagement. Brand – is a symbol, logo, words, or a combination of these elements that a company uses to distinguish its products or services from others. Branding – the ability of manufacturers to successfully distinguish their products from other competitors. Brand Awareness – is the extent to which a brand is recognized by potential customers and is correctly associated with a particular product or service.

46. Thought leadership – is a technique that uses the expertise of people who can provide the best answers to customers’ most challenging questions about the product or service. Lead Volume – is the number of sales leads that will ultimately be converted into customers. Sales Lead – is a potential customer who is interested in the product or service. 6. Support the other functional areas of business in achieving the company or corporate goals. 7. Promote value transactions with full regard to the well-being of societies.

47. The Roles of the Marketer One of the primary goals of the company is to maintain a profitable base of loyal customers. The primary focus of marketing is that all marketing activities are integrated and focused on the customers. The job of the marketer is not just to find the right customers for the product, but also to find or develop the right products for customers. Thus, Comstock, Gulati, and Liguori (2010) have identified these important functions or the 4 roles of a marketer in a company: 1. Instigator – marketers serve as strategists who analyze current market trends to guide actions of the company. This requires them to “think outside the box” and come up with creative ways to change the status quo and gain an advantage over the competition.

48. 2. Innovator – marketers are tasked with researching the kind of product the customers need and ensure that the product developed not only meets customers’ expectations but also exceeds them. The marketer also ensures that their products have an edge over those developed by the competitors. 3. Integrator – marketer mediates between the interests of the company and the needs of the consumers, ensuring that they are integrated into the development of the product. They communicate customer insights and opinions to the company and make sure that this information reaches the concerned departments, such as the sales department and R& D (Research and Development) department, to aid product development.

49. 4. Implementer – this role is more general. The marketer ensures that the marketing strategy for the developed product is in place and implemented effectively. The marketer makes sure that the strategy and production process are integrated, and all customer insights are considered. There are other specific roles and functions of a marketer, and since the lifeblood of the company is profit, the marketer’s main responsibility is to maximize profitability. Nevertheless, a company has goals and objectives other than gaining income, that is why a marketer must exert all effort to achieve these.

50. What’s More ACTIVITY: IT’S YOUR GOAL! Instructions: You are to create your own dream company with your ideal product or service. What will be your goals and objectives to make your business succeed? Follow the format below and please do not forget to write the following in your answer sheet: Your Dream Company Name ______________________________________ The type of Business ______________________________________ Product or service you will offer __________________________________ Goals Objectives 1. 1. 2. 2. 3. 3.

51. What I Have Learned ACTIVITY: CASE OVERVIEW - YELLOW CAB PIZZA COMPANY (Zarate, Principles of Marketing , 2017) Often mistaken as an international brand, Yellow Cab Pizza Co., is a local fast-food chain that offers New York-style pizzas. The name Yellow Cab came from the colors yellow and black, which are common colors of taxicabs. Albert Tan, Eric Puno, and Henry Lee founded the pizza company in 2001 and it is now owned by Max’s Group. It currently has 130 stores nationwide. Each store features an open kitchen, exposed pipes, graffiti, and concrete walls that capture the New York vibe.

52. The company’s vision is customer engagement, and its goal is customer loyalty. Achieving this goal is a concerted effort. The company creates products that embody innovation and value for money and employees are trained to be customer-oriented and improve food, service, and cleanliness daily. This ensures that customers keep coming back and that more will follow.

53. 1. Identify Yellow Cab’s goals and objectives. 2. If given the task to become the Manager of a branch of Yellow Cab, how would you ensure the goals and objectives are carried out? Do you think that the goal of keeping loyal customers is enough to sustain the business, considering that it has many competitors? Why or why not? Instructions: Answer discussion questions below and please do not forget to write the following in your answer sheet: Name: _____________________________________ Year and Section: __________________ Subject: _______________________ Quarter No. ____________ Module No. ___________ Name of the Activity Lesson 2: What I Have Learned Date: _____________

54. What I can Do ACTIVITY: ROLE PLAY (Individual or by pair) Instructions: Play the role of a marketer. Choose one from the four (4) roles. Since you are at home, submit a written script or a video portraying your role as a marketer. Create a situation on how you will conduct yourself as a marketer given the role that you have chosen. Be creative and assertive and enjoy!

55. ASSESSMENT Which of the following are human wants that are backed by buying power? A. Needs B. Wants C. Demands D. Satisfaction 2. When a marketer comes up with creative ways to change the status quo and gain an advantage over the competition, he plays the role of a? A. Innovator B. Implementer C. Instigator D. Integrator 3. Which of the following is the process of continuously and profitably satisfying target customer’s needs, wants, and expectations superior to competition? Branding B. Marketing C. Pricing D. Relationship marketing 4. Which of the following is NOT part of the marketing activities in the marketing process? A. Creating B. Distributing C. Branding D. Pricing

56. 6. Which of the following is the marketing element that aims to capture the attention of the customers? Place B. Price C. Product D. Promotion 7. Who among the following is responsible for identifying the goods and services needed or wanted by customers and markets them? Consumer B. Innovator C. Instigator D. Marketer 8. Which of the following is a symbol, logo, words, or a combination of these elements that a company uses to distinguish its products or services from others? Product C. Brand Unique selling proposition D. Promotion

57. 9. Which does NOT belong as a core concept of Marketing? Needs, Wants, Demands B. Exchange, Transaction, Relationship C. Value, Satisfaction, Quality D. Lead Volume, Sales Lead, Branding Assessment 10. When a Marketer helps facilitate the entire production and selling process, he plays the role of a? Instigator B. Innovator C. Integrator D. Implementer 11. When a Marketer communicates customer insights to the different departments of the company, he becomes a? A. Instigator B. Innovator C. Integrator D. Implementer

58. 12. When a Marketer is tasked with analyzing the current market trends to guide the actions of the company, he plays the role of a? Instigator B. Innovator C. Integrator D. Implementer 13. Which of the following is closely related to satisfaction? A. Demands B. Needs C. Quality D. Value 14. When a Marketer oversees the product to be manufactured by contributing to the designing process, he becomes a? A. Instigator B. Innovator C. Integrator D. Implementer

59. 15. Which of the following is NOT true to the Principles of Marketing? Companies create value for customers and build strong relationships to capture value from customers in return. Marketing concerns itself with the tricks and techniques of getting people to exchange their cash for products. Marketing involves creating the right product, offering it at the right price, making it available to consumers at the right place, and communicating it to them at the right promotion. Marketing is delivering customer satisfaction at a profit by (1) attracting new customers by promising superior value, and (2) keeping current customers by delivering satisfaction.

60. Additional Activities Instruction: Create your dream company’s tagline. (Taglines are brief and catchy statements that convey the personality and benefits of the products to consumers). Below are sample taglines from known companies for your reference. Banco de Oro (BDO) - “We find ways” Metropolitan Bank and Trust Company (Metrobank) - “You’re in Good Hands” Gaisano Grand Malls - “Everyday is a savings day”