Marketing Overview

Simplicio P. Umali, Jr.

A social process by which individuals and

groups obtain what they need and want
through creating and exchanging products and
value with others.

The process of planning and executing the

conception, pricing, promotion and
distribution of ideas, goods and services to
create exchanges that satisfy the individual
and organizational objectives ( American Marketing Assn)

That an organization aims all its efforts

at the satisfaction of the needs and wants
of consumers at a profit.

The marketing concept holds that the key to

achieving organizational goals consists in
determining the needs and wants of target
markets and delivering the desired
satisfactions more effectively and efficiently
than competitors.

NEED: a state of felt deprivation of some

basic satisfaction ( hunger, thirst, love, security,

ego, recognition)

WANT: a learned need satisfier, a specific

satisfier ( food-softdrinks/ hamburger)

DESIRE: conscious ability and willingness to

satisfy a need and want ( buy a McDo)

 MARKET:

consists of all the potential customers

sharing a particular need or want who might be
willing and able to engage in exchange to satisfy
that need or want.

TARGET

MARKET: a fairly homogeneous

group of customers to whom a company wishes to
appeal

SEGMENTING:

an aggregating process that

clusters together people with similar needs into a
market segment

 Focus on Products
Selling and

Promoting means

Profits through

sales volume

Customer needs
focus
Integrated
Marketing
Profits through

customer satisfaction

STRATEGIC MARKETING
MANAGEMENT

Strategic Marketing Management Process

1.
2.
3.
4.
5.

Define organizations Business, Mission and Goals

Identify and frame organizational growth
opportunities
Formulate Product-Market strategies
Budgeting marketing, financial and production
resources
Develop reformulation and recovery strategies

1.Business, Mission and Goals

Business

define by type of market or customers, needs of customer groups, preferably not

products

Mission

Scope of organizations operations apparent in its business definition and reflects

managements vision of what the organization seeks to do.
Crystallizes mgmts vision , long term direction and character; provides
guidance for mkt and product opportunities; challenges employees to do things
valued by organization and its customers/market.

Goals

SMART Objectives- Production, Marketing and Financial

2. Organizational Growth Opportunities

Environmental Opportunities
Unmet/changing consumer needs
Unsatisfied buyer groups
New means or technology

Distinctive Competency
Orgns unique strengths / qualities
Skills, technologies, resources
Source of competitive advantage

Success Requirements

Matches environmental opportunities and competency

Physical Environment (islands, weather)

Demographic Environment (Age, sex, family size)
Economic Environment (GNP, GDP, interest, forex)
Political & Legal Environment ( laws, leadership)
Socio-Cultural Environment (practices, beliefs)
Technological Environment (obsolescence, trends)
Competitive Environment (direct & substitutes)

Objectives
Resources of the firm (financial, physical)
Organizational structures and personnel
Technology
Capacities (production, distribution)
Systems, Policies and Procedures

Stimulus-Response model
Learning Process:

-Drive-Cue-Response-Reinforcement

Problem Solving Method: Marketing

Mixes & Other Stimuli( cultural, social,

personal, psychological) evaluated for
purchase decision

Cultural: (Culture, Subculture, Social class)

Social: (Reference group, family, roles & statuses)
Personal: (Age and life cycle stage, Occupation,

Economic circumstance, Lifestyle, Personality and

self-concept)

Psychological: ( Motivation, perception, learning,

beliefs and attitudes)

Organizational Growth OpportunitiesSWOT Analysis

Strengths Weaknesses
Management
Marketing
Manufacturing
Products
R&D
Organization
Finance

Opportunities / Threats
Economic
Competition
Consumer trends
Technology
Legal / Regulatory
Industry/market structure
Competition

3. Formulate Marketing Strategy

Product
Price
Place
Promotion

Strategy
Do

right things

What
The

you should do

means to
fulfilling the end

Tactics ( programs)
Do

things right

How
The

to do things

application of
strategy

 Geographic: Metro Mla, Prov Luzon/ Urban, rural

Demographic: Age, sex, income class (AB, C, D+), family size,
education, religion (Christian, Muslim)

Psychographics: social class(novo-rich, old rich),Lifestyle (health

buff, fashionista, active) Personality (compulsive, authoritative,
followers)

Behavioral: Usage occasion(regular, special occas), Benefits

sought (freshness, quality, economy, good taste), User status (light,

heavy user), Loyalty status, Readiness stage

Evaluate the market segments

Choose the target markets
Distinguish market coverage strategy
differentiated vs. undifferentiated
marketing or concentrated marketing

The act of designing the companys product image and

value offer so that the segments customers understand
and appreciate in his mind what the company or
product stands for in relation to competitors.

You position the product in the mind of the prospect.

In positioning, what is most important is how the

brand is ranked in your customers mind against your

competition.

4. Budgeting
Sales

Budgets

P&L
Operating

expenses, selling, admin

Marketing and Advertising budgets
Manufacturing budgets, volumes, capacity
utilization, costs and margins
Contribution margins

MARKETING CONTROLS
PERFORMANCE

MEASURES
MARKET RESEARCH
FEEDBACK SYSTEMS
BUDGETS
CONTINGENCY PLANS

ORGANIZING MARKETING
Marketing

Planning
Sales Organization
Distribution and Logistics
Support Services-Advtg, Media, Creative,
Promotions, Events

5. Reformulation and Recovery

Marketing

audit
Contingency planning
Alternative strategies/ programs
Feedback system

MARKETING PLAN
1.
2.
3.
4.

Executive Summary
Situation Analysis: industry, market, competition
Marketing objectives
Marketing Strategy and Programs

5.
6.
7.

Target Market
Key Mktg Strategy-positioning, differentiation
Product, Price, Promotion, Place plans

Organization, Measurement, Review & Controls

Marketing Budget
Appendixes