business marketing prelim exam PPT.pptx

business marketing

1. Module 2 BUSINESS MARKETING PRINCIPLES AND STRATEGIES

2. 1. Define and understand marketing 2. Describe the traditional approaches to marketing 3. Discuss the goal of marketing 4. Identify and explain contemporary marketing approaches.

3. LESSON 1.1 WHAT IS MARKETING AND WHAT ARE THE TRADITIONAL APPROACHES?

4. Marketing is defined as "the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling."

5. American Marketing Association Marketing defined as “ the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large .”

6. Components of Marketing

7. Creating The process of collaborating with suppliers and customers to create offerings that have value.

8. 2. Communicating Broadly, describing those offerings, as well as learning from customers.

9. 3. Delivering Getting those offerings to the consumer in a way that optimizes value.

10. 4. Exchanging Trading value for those offerings.

11. Framework in marketing

12. The ”4 Ps " 1. Product . Goods and services (creating offerings). 2. Promotion . Communication.

13. 3 . Place . Getting the product to a point at which the customer can purchase it (delivering). 4. Price . The monetary amount charged for the product (exchanging).

14. "7 Ps" 1. product 2. price 3. place 4. promotion 5. people 6. positioning 7. packaging

15. Creating utility

16. Utility as "the quality or condition of being useful". is further defined as any quality and/or status that provides a product with the capability to satisfy the consumer's wants and needs. Marketing is responsible for creating most of a product's inherent utility

17. Four basic types of utility

18. Form utility production of the good or service, driven by the marketing function.

19. 2. Place utility making the product available where customers will buy the product.

20. 3. Time utility making the product available when customers want to buy the product.

21. 4. Possession utility once you have purchased the product, you have rights to use the product as intended, or (in theory) for any use you would like.

22. 5. Image utility the satisfaction acquired from the emotional or psychological meaning attached to products. Some people pay more for a toothpaste perceived to be more effective at fighting cavities and whitening teeth.

23. The exchange processes

24. The exchange process in marketing is the process by which two or more parties give something of value to each other to satisfy the perceived needs.

25. Components of the exchange Process

26. For an exchange to occur: • Both parties must have something of value to exchange . • Both parties need to be able to communicate.

27. • Both parties must be able to exchange. • Both parties must want to exchange • At least two parties are needed for an exchange to occur

28. Value

29. Value mean the benefits buyers receive that meet their needs value = benefits received – [price + hassle]

30. Creating Offerings That Have Value Communicating Offerings Delivering Offerings Exchanging Offerings

31. Marketing concept: Understanding the Human Needs, Wants and Demands

32. Marketing concept

33. Needs Something necessary for people to live a healthy, stable and safe life.

34. 2. Wants Something that is desired, wished for or aspired to. Wants are not essential for basic survival and are often shaped by culture or peer-groups.

35. 3. Demands When needs and wants are backed by the ability to pay, they have the potential to become economic demands.

36. Scope of marketing

37. 1. Goods – Goods can be defined as anything which tangible which can be offered to the customers in order to satisfy their wants. 2. Services – Services can be defined as anything which can be offered by one party to another which is intangible, variable and perishable in nature.

38. 3. Experiences – Experience can also be marketed as a product. By using several services and goods, a firm can create stage and market experiences. 4. Events – Marketers promote and market time-based events as well,

39. 5. Persons – Incidentally through our actions or inactions each one of us as individual are marketing ourselves and at marketing efforts are supplemented by family and friends. Celebrity or famous personality marketing is a major business. 6. Place – Places-cities, states, regions and nations-compete actively to attract tourists, companies etc

40. 7. Properties – Properties are bought and sold and this requires marketing. Properties are intangible rights of ownership of either real property (e.g., real estate) or financial property (e.g., stocks and bonds). 8. Organization – Organizations actively work to attract their stakeholders. They work to build a strong and positive image in the minds of their stakeholders with the help of public relations.

41. ADVERTISEMENTS: 9. Information – Information can be produced and marketed as a product. 10. Idea – Ideas can also be produced and marketed as well. In fact, idea generation is the first step of the new product development.

42. A stakeholder can be referred as anyone who is directly or indirectly associated with the organizational business.

43. Traditional approaches to Marketing

44. Traditional approaches to Marketing • refers to the conventional methods of marketing used ever since the concept of advertisements or marketing came into existence. • It focuses on selling the products or services

45. Major Traditional Marketing Methods

46. Telling customers and making a sale Print marketing (especially newspapers and magazines). 2. Broadcast marketing (especially radio and TV, which featured their first commercials in 1920 and 1941, respectively).

47. 3. Direct mail marketing (with one of the earliest and most beloved examples being the Sears catalog, whose debut issue was mailed to consumers in 1888). 4. Telephone marketing (which, over time, came to be known as telemarketing, i.e. phone advertisement or request calls).

48. Traditional concept marketing is a marketing strategy a company uses to determine if it can produce a viable product consumer want or need, whether the company can produce enough products to fill the need, and the marketing method by which the need can be filled.

49. SEVERAL DISTINCT TRADITIONAL APPROACHES

50. Production concept focuses on the internal potentials of the company and not based on the desires and needs of the market. The objective is to lower production costs resulting in lower prices

51. 2. The Product Concept It assumes that customers will always prefer and patronize products of high quality. Resources are focused on product improvement and innovation. Product attributes and features are continuously enhanced.

52. 3. Sales concept refers to the idea that people will buy more goods and services through personal selling and advertising done aggressively to push them in the market. It emphasizes aggressive selling and promotional efforts.

53. 4. Marketing concept a philosophy which states that organization must try hard to find out and satisfy the needs and wants of consumers while at the same time accomplishing the organizational goals.

54. 5. Relationship concept marketing an approach that centers on maintaining and improving value- added long-term relationships with current customers, distributors, dealers and suppliers.

55. 6. Societal Marketing Concept views that organizations must satisfy the needs of consumers in a manner that gives for society’s benefit.

56. LESSON 2.2 Goals of Marketing

57. GOALS OF MARKETING - top-level broad goals to show how the business can benefit from channels. So, goals are the broad aims used to shape strategy. They describe how marketing will contribute to the business in key areas of growing sales, communicating with audience and saving money.

58. MARKETING OBJECTIVE Specific SMART objectives to give clear direction and commercial targets. Objectives are the SMART targets for marketing which can be used to track performance against target.

59. 1. SPECIFIC - the detail in the information sufficient to pinpoint problems or opportunities; the objective sufficiently detailed to measure real- world problems and opportunities 2. MEASURABLE - a quantitative metrics are set to track progress 3. ATTAINABLE – realistic and achievable 4. RELEVANT - the information be applied to the specific problem faced by the marketer 5. TIME BASED - objectives be set for different time periods as targets to review against.

60. Key performance indicators (KPIs) - are used to check that the marketing activities of a company are on track. KPIs are specific metrics which are used to track performance to make sure the firm is on track to meet specific objectives.

61. DEVELOPING MARKETING GOALS

62. CRITERIA FOR DEVELOPING MARKETING GOALS ATTAINABILITY Goals must be realistic so that important parties who will be reaching must see each goal as reasonable. 2. CONSISTENCY management should exert to set goals that are consistent with one another.

63. 3. COMPREHENSIVENESS the process of goal-setting must be comprehensive. Simply it means that each functional area must be able to formulate its own goals that relate to the organization’s goals. 4. INTANGIBILITY planners often confuse goals with strategies, objectives and even tactics. A goal is not an action the firm can take, it is an outcome of the organization wishes to realize.

64. LESSON 2.3 Contemporary Approaches to Marketing

65. Contemporary approaches to marketing refer to marketing strategies that are consumer-focused/ customer-centric (focuses on customer satisfaction), offering products and services based on what the target market desires rather than what the company wants them to have, uses digital or internet marketing

66. Not-For-Profit Organization Marketing is a type of organization that does not aim for earning profit for its owners. The money earned by not-for-profit organization is allocated for pursuing the organization’s objectives.

67. Characteristics of a not-for-profit organization 1. Generate as much revenue as possible to support their causes 2. Compete with other organizations for donors’ pesos 3. Often possess some degree of monopoly power in a given geographic area 4. Market to multiple publics

68. How Contemporary Marketers are Reaching Their Audience 1. PERSON MARKETING Person marketing entails endeavors aimed at cultivating the attention, interest and preferences of a target market toward a celebrity or authority figure.

69. 2. PLACE MARKETING Place marketing or place branding attempts to exert a pull customer to particular areas. Place marketing is used to attract tourist and showcase the beautiful spots in different cities, provinces, and regions. Place marketing is also used to promote sites that can be a nice choice for putting up a business

70. 3. CAUSE MARKETING Cause marketing is the recognition and marketing of a social issue, cause or idea to the target markets. Cause marketing increases the awareness of issues such as literacy, physical fitness, child obesity, and environmental protection, elimination of birth defects, child-abuse prevention and preventing drunk-driving.

71. some guidelines to consider before creating a cause marketing campaign 1. UNDERSTAND MARKETING before a firm create a cause marketing, it needs to understand first the essential elements of marketing to its specific target audience. 2. SUPPORT REPUTATION CAUSES if the company is going to give large amounts of money, resources or time to a philanthropic cause, it must first do its homework. The organization must choose the right charity to give help to and check its every detail.

72. 3. MAINTAIN TRANSPARENCY if the firm wants consumers to join its cause, it has to make it easy and transparent for them to do so. 4. THINK MAINSTREAM the majority of the firm’s patron should support the effort of its supporting. 5. STAY CONSISTENT it is best for the company if it is going to be generous in one charity for long time to be predictable in the eyes of the consumers

73. EVENT MARKETING

74. EVENTMARKETING - Event marketing is the experiential promotion of a product, service or brand. This type of marketing typically involves direct interaction between a company representative and the target audience.

75. Essential features of event marketing: 1. Wide range of events – event marketing encompasses a wide range of event types : a. Mega events and local events, b. Exhibitions, c. Trade shows, d. Publicity stunts, e. Themed and created events, f. Corporate entertainment, g. Award ceremonies

76. 2. Goal oriented 3 . Effective promotion and communication – it is important to get the message to the target audience clearly. 4. Proper evaluation – it is necessary for the team to be able to evaluate the event/project to be more effective and efficient the next time.

77. 5. Feedback from clients 6. Location – this is the most important aspect as the location of the event should be accessible and should be near important areas.

78. GREEN MARKETING

79. GREEN MARKETING – refers to the process of selling products and/or services based on their environmental benefits Green marketing can attract a sizable segment of emerging consumers that are conscious of environmental issues.

80. Three key components of green marketing to be effective Being genuine a. The company is actually doing what it claims to be doing in its green marketing campaign and b. The rest of the business policies are consistent with whatever the firm is doing that’s environmentally friendly.

81. 2. Educating the customers isn’t just a matter of letting people know that the company is doing whatever it doing to protect the environment, but also a matter of letting them know why it matters.

82. 3. Giving customers an opportunity to participate means personalizing the benefits of the company’s environmentally friendly actions, normally through letting the customer take part in positive environmental action

83. How do companies reach a target market and then develop long-term relationships with customers? How do businesses view their relationship with their customers? What market plan is a company implementing to establish its brand as a mainstay in their industry?

84. Market Orientation: Meeting the Needs of Consumer modern market orientation strategies may include: 1. An analysis of current client behavior 2. Foreseeing the future needs of current clients 3. Identifying weaknesses in customer service 4. Developing a top-notch UX (user experience) platform on your website 5. Offering discounts or early-bird specials to current customers

85. Marketing Mix: Contemporary Promotion in the Market A marketing mix refers to strategies or actions that a company utilizes to promote its products, services or brand in the market. The marketing mix typically includes the four ‘Ps’: product, place, price and promotion.

86. 1. Product Product refers to the products or services that you are offering to the market. The quality and dependability of the product may be the core determining factor in whether a client stays loyal to your company

87. 2. Place In marketing, the place refers to the point of sale (POS). The goal is to attract the customer and remove all obstacles to the purchase. This may involve creating an easy-to-use e-commerce site, a simple app or correct product placement in your brick-and-mortar store. Being at the right place at the right time with the product is essential for holding your customer’s attention.

88. 3. Price What is the current value of your product? The price depends on various factors such as market demand, product quality, competition and cost of production. The most important factor when determining your price is that what you ask for needs to align with what your customers expect and are willing to pay

89. 4. Promotion Promotion can include different types of marketing such as digital marketing (website, social media) or traditional marketing (TV ads, brochures, flyers). A marketing manager and their team use as many marketing channels as possible to reach and engage with their audience in the most direct and clear way.

90. ADVANTAGE OF CONTEMPORARY APRROACHES: 1. easily reach to your targeted local customers 2. materials can be kept 3. easy to understand

91. DISADVANTAGE OF TRADIONA APPROACH There is very little interaction between the medium used and the customers Very costly especially print or radio advertisements Results cannot be easily measured

92. ADVANTAGE OF CONTEMPORARY APPROACHES 1. Targets local and international audiences 2. Audience can choose how they want to receive your content 3. Interaction with your audience is possible 4. Digital marketing is cost-efficient 5. Data and results are easily recorded 6. Real time results 7. Brand Development