Customer Orientation - The purpose of a business is to • Demands: Human wants that are backed by buying power.

create and maintain profitable customers.

Products – anything that can be offered to a market for
• When a business satisfies its customers, the customers attention, acquisition, use or consumption and that might
will pay a fair price for the product – a fair price includes satisfy a need or want.
a profit for the firm.
Value, satisfaction and quality

• Customer value is the difference between the customer

benefits from owning and/or using a product and the costs of
obtaining the product.

• Customer satisfaction is perceived value delivered relative

to a buyer’s expectations.

• Quality is the totality of features and characteristics of a

product or service that bear on its ability to satisfy customer
needs.

Exchange, transactions and relationships

• Exchange is the act of obtaining a desired object from

Tourism & Hospitality Marketing - they are strongly someone by offering something in return.
customer focused and heavily committed to marketing.
• Transaction is marketing’s unit of measurement and consists
• about the marketing effort done in introducing and of a trade of values between two parties.
distributing tourist destinations to the domestic and
international customers (tourists) • Relationship marketing is building strong economic
• will ensure that the destinations available resources and relationships between with social ties by following through on
consumption level is properly monitored, so that the promises.
industry can be deem as successful
Markets – a set of actual and potential buyers who might
• Successful hospitality marketing is highly dependent on transact with a seller. The size of a market depends on the
the entire travel industry. number of persons who exhibit a common need, have the
• Government or quasi-government agencies play an money or other resources that interest others, and are willing
important role in travel industry marketing through to offer these resources in exchange for what they want.
legislation aimed at enhancing the industry and through
promotion of regions, states and nations. Five Marketing Management Philosophies

Marketing Process Production Concept - Consumers will favor products that are
available and highly affordable, and therefore management
should focus on production and distribution efficiency.

Product Concept - Consumers favor product that offer the

most quality, performance, and innovative features.

Selling Concept - Consumer will not buy enough of the

organization’s product unless the organization undertakes a
large selling and promotion effort.

Marketing Concept - Focuses on needs/ wants of target

markets & delivering satisfaction better than competitors.

Social Marketing Concept - Should determine the needs,

wants and interest of target markets and deliver the desired
satisfactions more effectively and efficiently than competitors
in a way that maintains or improves the consumer’s and
Needs, wants and demands society’s well-being.

• Needs: A state of deprivation in a person. Human beings Service Culture - focuses on serving and satisfying the
have many complex needs These include the five basic needs customer. A service culture empowers employees to solve
theory by Abraham Maslow. customer problems.

• Wants: Wants are how people communicate their needs.

 •Under the marketing concept, all managers, supervisors, and
employees should work in harmony to provide superior
customer value and satisfaction.

COMPETITORS The marketing concept holds a successful

company must satisfy the needs and wants of consumers better
than its competitors.

•Direct Competitors refer to companies offering the similar

products & services to the same market.

•Indirect Competitors refer to companies offering different

products & services to the same market. Also knows as
substitute.

SUPPLIERS Provide resources to produce goods & services.

Management Strategies for Service Businesses
They are treated as partners.
EMPLOYEE SATISFACTION - Results from high quality
MARKETING INTERMEDIARIES Help the company
support services and policies that enable employees to serve
promote, sell, and distribute its goods to the final buyers.
customers well.
These include travel agents, wholesale tour operators, and
VALUE - Created by satisfied, loyal, and productive hotel representatives.
employee.
CUSTOMERS
CUSTOMER SATISFACTION - Influenced by the value of
• Consumer Market buys for personal use.
services provided to customers.
• Business Market buys on behalf of company.
CUSTOMER LOYALTY - Results from customer
satisfaction. • Government Market buys good to provide public service.
PROFIT & GROWH - Stimulated primarily by the customer • Reseller Marker buys good to provide to other market.
loyalty
• International Market are customers in the foreign market.

PUBLIC Refers to any group that has an actual or potential

interest in or impact on an organization’s ability to achieve its
objectives.

• Financial Public influence the company’s ability to obtain

funds. (financial status)

• Media Public carry news, features, and editorial opinions.

• Local Public refers to neighborhood residents & community

organizations.

• Internal Public includes workers, managers, volunteers, and

the board of directors.

• Government Publics. Marketers must often consult the

MARKETING ENVIRONMENT- the combination of the company’s lawyers on issues of product safety, truth in
microenvironment (internal) and macro environment advertising, and other matters.
(external). • Citizen-action publics. A company’s marketing decisions
Microenvironment - consists of the factors close to the may be questioned by minority groups, consumer
company that affect its ability to serve its customers. organizations, environmental groups, and others.

COMPANY • General Public. A company needs to be concerned about the

general public’s attitude to its products & activities. The
•Refers to the organization’s internal environment —its public’s image of the company affects its buying.
several departments and management levels as it affects
marketing management’s decision making.
Macro-environment styles, religion, etc. also affect a company’s marketing
strategy.
• consists of the larger societal forces that affect
microenvironments. It considered to be beyond the control of Marketing Research
the organization. These forces shape opportunities and pose
threats to the company. Research

DEMOGRAPHIC ENVIRONMENT is of major interest to •is defined in the Webster Dictionary as a careful, systematic
marketers because it involves people, and people make up study in a field of knowledge that is undertaken to discover or
markets. Changes in the world demographic environment have establish facts or principles. It is also defined as a systematic
major implications for business. process of collecting and analyzing data to find an answer to a
question or solution to a problem, or to validate or test an
• Baby boomers are a lucrative market for eating out, travel existing theory.
and entertainment, spas & other leisure activities. Gen X care
about the environment and respond favorably to socially Business Research
responsible companies. •is research intended to solve business problems or validate or
• Younger Millennials are just beginning to wield their test existing business theories. In contrast with social science
buying power, while older ones have graduated from college research, where the focus is on social behavior, business
and moving up in their careers. research deals with business-related problems.

ECONOMIC ENVIRONMENT includes factors affecting WHAT IS MARKETING RESEARCH?

consumer purchasing power & spending patterns such as Churchill, Brown, and Suter (2012) define marketing research
economic growth, interest rates, exchange rates and the as the function that links the consumer, customer, and public
inflation rate. to the marketer through information.
• Industrial Economies constitute rich markets for many This information is used to identify and define marketing
kinds of goods. opportunities and problems; generate, refine, and evaluate
• Subsistence Economies consume most of their own marketing actions; monitor marketing performance; and
agricultural & industrial output and offer few market improve understanding of marketing as a process.
opportunities. CLASSIFICATION OF MARKETING RESEARCH
NATURAL ENVIRONMENT involves natural resources 1. Qualitative Marketing Research - involves exploring and
needed as inputs by marketers or that are affected by understanding the problem or issue at hand, reducing the
marketing activities. number of options so that only the relevant ones are carried for
• Trends: Increased raw material shortage, increased further research, understanding consumer behavior through
pollution, increased government intervention, environmentally observation and interpretation, or simply studying a company
sustainable strategies and its operations.

TECHNOLOGICAL ENVIRONMENT is perhaps the most • Exploratory Research is conducted if the researcher would
dramatic force changing rapidly. It creates a new product, new like to gather more information about the problem or issue
markets and marketing opportunities for marketers. being investigated or reduce the available research options to a
manageable size.
• The Internet has created a new distribution channel for
hospitality and travel products. • Ethnographic or Observational Research is done by
observing consume behavior through various means. One is
• Today, over 60% of all travel bookings & over 40 % of all simple observation, where the observe watches the consumers
hotel reservations are generated on the Internet and records their behavior using video cameras, audio
recorders, and computers. There are factors to consider when
POLITICAL ENVIRONMENT includes government observing consume behavior. The customer should be
actions, government legislation, public policies, and acts informed that he or she is being observed an must consent to
which affect the operations of a company or business. being monitored.
• Politicians see travelers as good sources of revenue because • Case Analysis - involves the study of a particular company,
nonresidents spend money but cannot vote against them. Hotel group, or person through personal interviews or published
taxes and restaurant taxes have become popular sources of literature. To make it interesting to readers, the personality of
revenue for local governments to support tourism. the person/s involved is reflected and linked to the case. The
CULTURAL ENVIRONMENT includes institutions and case analysis is not intended to be an accurate solution to the
other forces that affect society’s basic values, perceptions, problems or concerns of the company or group mentioned, but
preferences, and behaviors. Cultural factors in heritage, living to elicit further discussions about the people.
2. Quantitative Marketing Research - involves the CONSUMER'S BUYING DECISION PROCESS
collection of information, statistical data, and precise
measurements through surveys. The data gathered is subjected • Need or Problem Recognition. The consumer recognizes
to mathematical analysis and statistical treatment. that he or she has a need to be satisfied or a problem that must
be addressed. This is often brought about by the realization of
• Descriptive Research answers the questions who, what, a difference between a customer's actual condition and his or
when, why, and how in the problem statement. This kind of her desired state of being.
research is widely used because it is easy to implement and the
findings are easy to interpret. The interpretation involves • Information Search. As soon as the consumer recognizes
frequency count, percentage, or ratio. his or her need, he or she starts searching for products or
brands that will best satisfy the need. The consumer begins by
• Correlational and Explanatory Research measure the recalling familiar products or brands. This is the internal
relationships between variables to determine their search. When this is not enough, he or she seeks other sources
interdependence or dependence. Interpretation is done through such as friends, experts, and printed materials and literature
correlational, explanatory, or predictive methods. like magazines, flyers, etc, and by checking out actual
products and reading their labels and packages. This is called
• Causal Research is the most complicated kind of the external search. The products or brands which the
quantitative research. It looks into the cause-and-effect consumer considers out of the many available choices belong
relationships of its variables and constructs and how one to his or her evoked set or consideration set.
variable/construct would affect another variable/construct.
• Evaluation of Alternatives. At this stage, the consumer sets
his or her evaluation criteria, which can be both objective and
subjective. This step will result in a decision to purchase a
specific product or brand.

• Purchase. At this point, the consumer considers other issues

related to actual purchase such as seller choice (where to buy,
availability of product) and terms of sale (whether payment
allows use of credit, installment, etc).

• Post-purchase Evaluation. If a purchase was made, the

buyer begins consuming or using the product. The consumer
then examines his or her consumption experience or the actual
IMPORTANCE OF MARKETING RESEARCH TO A product performance against his or her expected satisfaction
BUSINESS ENTERPRISE levels. This can lead to either a positive level of satisfaction or
dissatisfaction. Some consumers may experience what is
Marketing research plays a vital role in any business known as cognitive dissonance, which is described as doubts
enterprise. The successful operation of a business is largely that arise shortly after a purchase questioning whether the
defined by good marketing research. Information determines right decision was made
and defines marketing opportunities and problems; generates,
refines, and evaluates marketing actions; monitors marketing Market Segmentation is the process of dividing the total
performance; and improves the understanding of the market into groups or market segments which consist of
marketing process. people, groups, or organizations that have similar needs and
wants.
THE CONSUMER MARKET
1. Demographic Segmentation - based on age, gender,
• Anyone involved in the process of consuming, using, or education, occupation, income
buying products for personal use is referred to as a consumer.
2. Geographic Segmentation - based on location of
customers

3. Geo-Demographic Segmentation - combines demographic

and geographic factors

4. Psychographic Segmentation - based on lifestyle and

personality

5. Behavioral Segmentation - first time vs. regular users,

light users vs. heavy users
•A priori segmentation, though useful, has certain Goods are physical products that we can touch, smell, see, and
limitations. Modern marketers recognize that effective hear, while services are intangible products that we obtain
marketing must rely on timely and accurate information. To through ideas or experiences. Products can also include
get a more accurate read of customer's preferences, needs, and events, places, or organizations.
wants, marketer resort to research and data-gathering methods
to acquire information. Research is essential in market LEVELS OF PRODUCT
segmentation since marketers rely on customer surveys. CORE OR GENERIC PRODUCT refers to the functional
Market segmentation based on information gathered from essence of the product
market research is called post hoc segmentation.
THE ACTUAL PRODUCT basic features of a product that
TARGETING THE PREFERRED SEGMENTS make it usable in the first place
• After the market has been segmented and the profiles of THE EXTENDED PRODUCT refers to additional features
potential customers have been developed, marketers need to added to the product to attract more customers
select the most promising market segments and make the
appropriate strategies to target them. In targeting the preferred THE MODIFIED PRODUCT pertains to additional product
segment, the company should consider if it has the right features that will meet new demands and needs
products or services for the target market segment, and if it has
THE POTENTIAL PRODUCT plans to add or change in the
the competency to serve these customers well - on par with or
future
even beyond their competitors.
CLASSIFICATION OF PRODUCT
The company should also look into the following:
Consumer products are those that are personally used by
1. Access to The Market - Does the company have easy
customers.
access to the market?
Convenience Product are goods that people normally buy and
2. Marketing Budget - Is there a sufficient budget to
consume frequently.
implement appropriate marketing strategies?
Shopping Product consume less frequently and are more
3. Company Objectives- Do the characteristics of the target
expensive than convenience products.
market conform to the Objectives of the company?
Specialty Product distributed exclusively by an authorized
4. Potential for Growth and Sustainability - Is there
distributor are even more expensive than shopping product.
potential for growth even if the market is small?
Unsought Products are goods and services that consumers
Product Positioning refers to activities undertaken to create
may not consider highly necessary in their lives.
and maintain an idea of the product in the customers' minds.
Positioning the product through brands is done by using Industrial products are those used by companies or firms for
positioning statements and taglines. product creation and other business operations.
• Taglines are brief and catchy statements which are designed Raw Materials These are goods that the firm processes or
to convey the personality and benefits of the product to assembles to create a new product.
consumers. The same companies mentioned have come up
with taglines based on their positioning statements. Finished products are the final products the firm produces.
These are developed using the raw materials, technology,
What is Marketing Mix? equipment, and manpower provided by the company.
The Marketing mix is a set of elements that companies or Equipment These are the machines and tools used in creating
businesses consider in order to successfully create and sell products or providing services.
their products.
Supplies are products which may not necessarily be used in
4Ps of MARKETING: Product, Price, Place, And creating products, but are important in the daily operations of
Promotion a firm.
A product is defined as anything that can be offered to a Packaging
market for attention, acquisition, use, or consumption to
satisfy a want or need. The process through which products are enclosed in a
container, wrapper, or in a similar medium.
Tangible (those we can see)
Labeling
Intangible (those that we cannot see but we can experience)
The act of providing information about the product in its
container.
BRANDING PRICING OBJECTIVE

A means through which companies make their products Survival Pricing = Break even
distinct. A brand helps customers identify a product more
easily, and encourages them to purchase it. The other features Market Penetration Pricing = lower than the competition
associated with branding are logos and symbols. Marketing Skimming Pricing The price is set very high (new
THE PRODUCT LIFE CYCLE product)

The product life cycle is composed of four stages introduction, Parity Pricing = benched marked with other competitors
growth, maturity, and decline. Regulated Pricing By the government (SRP)
INTRODUCTION STAGE COMMON PRICING STRATEGY
• Low Sales Cost Based Product Fixed cost, variable cost
• High Cost
• Little Profits Demand Based Pricing Law of demand and supplies

Growth Break-Even Pricing Break even analysis

• Increasing Sales Psychological Pricing = Price bundling

• Reducing Cost Time-Based Pricing Certain time frame
• Some Profits
Location-Based Pricing Proximity of location
Maturity
Competitive-Based pricing match those of rival products
• Constant Sales
• Reducing Costs Premium-Based pricing Exclusive
• Increasing Profits DISTRIBUTION CHANNELS
Decline A distribution channel or marketing channel is the path that a
• Reducing Sales product takes before it is sold to the consumer.
• Constant Costs MARKETING INTERMEDIARIES
• Reducing Profits
Wholesalers are independently-owned firms that purchase
FAD and sell goods in bulk quantities to vendors and businesses.
These goods are often owned by the wholesalers themselves,
A fad is a situation where the demand for a product suddenly
and are sold under their name. Suppliers of goods are an
increases but also decreases after a short period.
example of wholesalers.
MARKETING STRATEGIES AND THE PRODUCT
Retailers are individuals or groups of people who sell goods
LIFE CYCLE
directly to consumers. They purchase their goods from
INTRODUCTORY STAGE = INFORMATIVE wholesalers or from other marketing intermediaries.
ADVERTISING
Intensity of Distribution
GROWTH STAGE = PERSUASIVE ADVERTISING
The intensity of distribution refers to the degree with which
MATURITY STAGE = REMINDER ADVERTISING marketing intermediaries are involved in the distribution and
selling of products. These intermediaries are mostly retailers.
DECLINE STAGE = PRICING STRATEGY/RE-
INTRODUCTION INTENSITY OF DISTRIBUTION

PRODUCT DIFFUSION - this theory examines how new EXCLUSIVE DISTRIBUTION employs only one
ideas and technology spread and become widely popular intermediary in a specific area.
among people.
SELECTIVE DISTRIBUTION utilizes several
• INNOVATORS intermediaries in specific areas.
• EARLY ADOPTERS
INTENSIVE DISTRIBUTION involves selling products in
• EARLY MAJORITY as many outlets as possible.
• LATE MAJORITY
• LAGGARDS
 CONCERNS IN UTELIZING DISTRIBUTION PULL PROMOTIONAL STRATEGY the company itself
CHANNELS directly convinces customers to purchase its products or
services.

• Logistical concerns SETTING THE ADVERTISING BUDGET

• Failure to meet demand • Percentage of sales method

• Affordable method
• Pressure from channel leaders
• Competitive parity method
• Presence of franchised chain store • Objective-and task method
1. increasing the market share
PROMOTION 2. increasing customer awareness of the product or
Promotion is the communicative element of the marketing brand within a specific time frame
mix. Through promotional activities, companies give
information about the features and benefits of a product.
Potential customers then use this information to make their
purchasing decisions.

THE ROLE OF PROMOTION

• Building awareness and creating interest

• Reinforcing a brand
• Persuading customers and enhancing sales
• Improving the performance of a declining product

TARGET OF PROMOTIONAL ACTIVITIES

• Target Market
• Influencers
• Retailers And Wholesalers
• Other Companies

MARKETING COMMUNICATIONS MIX

Advertising is defined as any paid, non-personal form of

promoting products, services, and ideas by a company or
organization. Advertising can be done through television and
radio commercials, print advertisements, flyers, brochures,
and billboards.

Sales Promotion refers to short-term strategies and incentives

that help improve a products sales performance. Sales
promotion can help increase the demand for the product, as it
shows customers the additional benefits of purchasing it.

Public Relations refers to the means a company employs to

maintain positive connections with the public, which includes
customers and the general public, suppliers, stockholders,
employees, and the government.

Personal Selling is done by the company's salespeople and

involves one-on-one interactions with potential customers to
persuade them to purchase a product or service.

STRATEGIES IN UTILIZING THE PROMOTIONAL

MIX

PUSH PROMOTIONAL STRATEGY each person or

organization in the supply chain "pushes" the product or
service forward until it reaches the end consumers.