TAGBILARAN CITY COLLEGE

College of Business and Industry

Tagbilaran City, Bohol

Course Code TPC2 Instructor Mary Ann B. Buga

Course Title Tour and Travel Email mabuga@tccollege.com.ph
Management
Course Credits 3 units Contact Number 0917-811-2350
Course Tourism Consultation
Classification Professional Core Hours
Pre-Requisite(s) ABM104 Consultation
Venue

Learning Module 1: Marketing Principles and Strategies

Duration of Delivery: February 1-5, 2021
Due Date of Deliverables: February 9, 2021

Intended Learning Outcomes:

• define and understand marketing

• describe the traditional approaches to marketing
• discuss the goals of marketing
• identify and explain contemporary marketing approaches

Marketing Defined and Understanding the Goals of Marketing and Marketing Process

Marketing is a form of communicating or promoting the value of a product, service, or brand to

the consumers. 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 characteristics.
Marketing Defined
Marketing is a form of communicating or promoting the value of a product, service, or
brand to the consumers. The "by word of mouth" marketing may be the simplest, oldest,
and most natural way of marketing a service or a product for profit and non profit purposes.
Marketing for profit aims to increase sales of products or services while marketing for
nonprofit purposes. Marketing for profit aims to communicate messages for social
purposes, such a health and public safety information disseminated by the government.

The American Association (AMA) defines marketing as "the activity, set of instructions,
and process for creating, communicating, delivering, and exchanging offering that have
creation, communication, and the delivery of value to customers.

The key to this definition of marketing is the word "value." Thus, marketing can be
summarized as the creation, communication, and the delivery of value to customers.
Alternately, the Philippines Marketing Association (PMA) defines marketing as a
"science and profession guided principally by the universal principles of ethics, corporate
citizenship, and corporate social responsibility.
 This definition emphasizes an adherence to ethical principles, corporate citizenship,
harmful to one's health and well-being or promote violence and immortality. Products or
services that serve no purpose or contribute nothing to individual and societal well-being
should not be marketed.

Goals of Marketing
The goals of marketing can be summarized as follows:
1. Understand the market and its consumers and satisfy their changing needs and
wants.
2. Introduce and innovate products and services that improve human condition and the
quality of life.
3. Design and implement effective customer-driven marketing strategies.
4. Develop marketing programs that deliver superior value to consumers.
5. Build and maintain mutually beneficial and profitable customer relationships.
6. Capture customer value to create profits.
7. Promote value transactions with full regard to the well-being of societies.

The Marketing Process

The marketing process can be illustrated in the following diagram: Figure 1 : The Marketing
Process

Before marketing products and/or services, the organization must have a thorough analysis
of the external environment, the market, its competitors, and customers and an incisive
(perceptive) 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). As soon as the marketing strategy is implemented,
regular monitoring takes place to identify deviation and, if necessary, make adjustments to
any or all elements of the marketing mix.

Products, Services, and Experiences

What do organizations market? As consumers, we are most familiar with the marketing of
goods and services. Order than these, however, marketing organzations also market
experiences, ideas, advocacies, and even personalities.

The Three Product Level

Consumers often think that a product is simply the physical item that he or she buys. In
order to actively explore the nature of a product further, let's consider it as three different
products — the CORE product, the ACTUAL product, and finally the AUGMENTED product.
This concept is known as the Three Levels of a Product. Figure 2: Product Levels
 The CORE product is NOT the tangible physical product.
You cant touch it. That's because the core product is the
BENEFIT of the product that makes it valuable to you. So
with the car example, the benefit is convenience i.e. the
ease at which you can go where you like, when you want
to. Another core benefit is speed since you can travel
around relatively quickly. The ACTUAL product is the
tangible, physical product. You can get some use out of
it. Again with the car, it is the vehicle that you test drive,
buy and then collect. You can touch it. The actual product
is what the average person would think of under the
generic banner of product.
The AUGMENTED product is the non-physical part of the product. It usually consists of lots
of added value, for which you may or may not pay a premium. So when you buy a car, part
of the augmented product would be the warranty, the customer service support offered by
the car's manufacturer and any after-sales service. The augmented product is an important
way to tailor the core or actual product to the needs of an individual customer. The features
of augmented products can be converted in to benefits for individuals.

Features and benefits of products

Features and benefits of a product are also relevant to the three levels of the product.
Products tend to have a whole series of features but only a small number of benefits to the
actual consumer.
The consistent marketer will aim to discover the consumer's preference for benefits
and will match individual features to the preference. That is why professional
salespeople for example, often ask many questions whereas a novice salesperson will
just tell you the features of the product.

Classifications of Products/Goods
Products that are marked can be generally classified according to use, differentiation,
types, and durability. Figure 3. Classification of Products/Goods

According to Use: Consumer and Industrial Goods

When classified according to use, products/goo& can either be consumer goods or industrial
goods.
Consumer goods are goods that are purchased for personal consumption and/or for
household use. Examples of these are instant noodles, biscuits, milk, detergent soap,
shampoo, and other similar items.
On the other hand, industrial goods are purchased in order to make other goods, to serve as a
raw material or input in the production of other goods. Typical examples are aluminum (used
to manufacture kitchen equipment and cans) and electronic cables and wires (serve as
electrical conduits for home appliances) among others.
It would not be possible to say, however, that a product is always a consumer good or an
industrial good. A good that is ordinarily a consumer good can also be used as an industrial
good, and vice-versa. For example, when a consumer buys sugar from the supermarket and
uses this sugar to sweeten his/her coffee, the sugar in this particular case is a consumer good.
However, if the sugar is added to flour, chocolate syrup, eggs, and walnuts to make brownies
and eventually sold, the sugar in this case is an industrial good.
In other words, physical characteristics alone cannot determine whether a product is a
consumer good or an industrial good. One should also consider how the product is ultimately
used.

According to Differentiation: Undifferentiated and Differentiated Goods

Undifferentiated goods are products whose physical characteristics are so identical, that it
would be difficult, it not impossible, to distinguished one purchased from one vendor or another.
Most undifferentiated goods are products that sourced from nature.
A typical example of an undifferentiated good is rock salt. When a housewife goes to the wet
market to purchase rock salt from two different vendors, determining which one came from one
vendor or the other is a challenge. Salt bought from the two different vendors looks, feels, and
tastes identical.
On the other hand, differentiated goods are varied in their characteristics and features that
make them distinguishable from one another. If there are white-colored vehicles of each model
from all local car manufacturers parked side by side, the Toyota Fortuner would still be readily
distinguishable from the Mazda 3, the Nissan Sentra, the Honda Civic, and from the other
vehicles in the parking area. This is because each manufacturer and car model has varying
appearances and features. The appearance of the Toyota Fortuner is different from mitsubishi's
Montero Sport. They have different grill designs, headlights, body heights, hoods, ground
clearance etc. The ability of manufacturers to successfully distinguish their products from other
competitors is called branding.
Branding provides a product or service a unique distinguishing name, logo, symbol, or image
which is used to differentiate it from other similar products and services.

Why do some manufacturers brand their products, while others do not? The major reason is
cost. When a company decides to brand its products, it must recognize that there are two
responsibilities that accompany branding:
• All products carrying the brand must have quality consistency
• The brand must be advertised and promoted
The underlying reason why manufacturers decide to engage in branding despite the cost is
that they want the brand to be known and to be preferred by customers, eventually creating
and building brand loyalty. No customer will patronize a brand whose quality is inconsistent.
For a brand to be known, it must be extensively advertised and promoted.
Once a brand acquires customer recognition, a positive market reputation and goodwill,
higher selling prices can be charged, larger sales revenues are generated, and higher profit
margins are realized. This is because customers begin to attach value to the brand than to
the product itself. This appreciation in a brand's value from the point of view of customers is
called brand equity.

According to Durability: Consumable, Semi-Durable, and Durable Goods

Based on Durability, Products are either consumables, semi-durables, or durables. Durability
refers to the length of time a consumer can derive benefit from the product or good purchased.
A consumable is a product whose benefit can only be used by a consumer for a consumer for
a short period of time, sometimes only a few minutes. For this reason, many mis-interpret
consumables to exclusively include food, drinks, and edible items. Alt"0ugh these are
consumables, non-edible items such as detergents and toiletries are also considered
consumables. The benefit one can derive from soap, for example(for cleaning oneself) may
only last few days.
On the other hand, semi-durables provide benefits to the consumer for a longer period of time,
usually spanning several months. Semi-durables are manufactured for longer-term use by
consumers. Examples of semi-durables are clothes, shoes, belts, jackets, etc.
Durables are products that are manufactured to last a long time. They are capable of providing
consumers with years of beneficial use. Durables are casually expensive, and many, therefore,
require an augmented product to market them effectively. Examples of durable goods are
automobiles, houses home appliances, customer electronics, furniture, sports equipment, and
toys.

According to Type: Convenience, Shopping, Specialty, and Unsought Goods

Convenience goods are products that are purchased frequently , are usually inexpensive, and
do not require much purchase effort and evaluation. Examples are newspapers, gum, and
candy.
The key to the successful marketing of convenience goods is its availability in as many retail
outlet& as possible, catering to consumer need where and when it arises.
Shopping goods, on the other hand, are purchased less frequently than convenience goods,
are relatively more expensive, and require some amount of information search and
evaluation prior to purchase. Consumers of shopping goods consider features, evaluate
attributes, and compare prices. Examples of shopping goods are shoes, clothes, and
handbags. The successful marketirg of shopping goods depends on intensive advertising,
well-trained salespersons, and positioning company products as superior alternatives to
competitors' products.
Specialty goods are gcods that require an unusually large effort on the part of consumers to
acquire. Consumers are usually willing to travel great distances to where these goods can be
purchased. Examples are branded luxury merchandise, works of art, automobiles, and
homes. The successful marketing of specialty goods require the promotion Of strong brand
image and identities.
Unsought goods are goods that consumers seldom actively look for, and are usually
purchased for extraordinary reasons, such as fear or diversity, rather than desire. Examples
are investments, memorial plans, and life insurance. These goods require advertising and
aggressive gelling and are usually marketed using highly-trained and persuasive
salespersons.
 Reference:

Ac-ac, Maria Victoria M. Principles of Marketing, Revised Ed., Pasig: Anvil Publishing, Inc., 2014
Armstrong, Gary. Marketing: An introduction 11th, Global ed. Harlow, England: Pearson, 2013. Go,
Josiah. Contemporary Marketing Strategy in the Philippine Setting, Manila: National Bookstore,
1996.

Prepared by: Noted by:

MARY ANN B. BUGA EMMYLOU PALACIO-

NOEL, MBA
Faculty Member Academic Program Head (TM)