PMM223: Lesson Proper for Week 1

The Value of Marketing

Finance, operations, accounting, and other business
functions won’t really matter without sufficient demand for
products and services so the firm can make a profit. In other
words, there must be a top line for there to be a bottom line.

Marketing Decision Making- CEOs recognize that marketing

builds strong brands and a loyal customer base, intangible
assets that contribute heavily to the value of a firm.

Winning Marketing- Skillful marketing is a never-ending

pursuit, but some businesses are adapting and thriving in
these changing times.

Scope of Marketing
To be a marketer, you need to understand what marketing
is, how it works, who does it, and what is marketed. Marketing is
about identifying and meeting human and social needs. One of
the shortest good definitions of marketing is “meeting needs
profitably.”

According to American Marketing Association, marketing

means “as an organizational function and a set of processes
for creating, communicating, and delivering value to
customers and for managing customer relationships in ways
that benefit the organization and its stakeholders”.

“Good marketing is no accident”- It is both an art and a

science, and it results from careful planning and execution
using state-of-the-art tools and techniques.
WHAT IS MARKETED?

Marketers market 10 main types of entities and these are.

1. Goods Physical goods constitute the bulk of most

countries’ production and marketing efforts.

Such as, canned goods, frozen products, cars, refrige­­rators and

other mainstays of a modern economy

2. Services As economies advance, a growing proportion of

their activities focuses on the production of services. Services
include the work of airlines, hotels, car rental firms, barbers and
beauticians. Many market offerings mix goods and services,
such as a fast-food meal.

3. Events Marketers promote time-based events, such as

major trade shows, artistic performances, and company
anniversaries.

4. Experiences By orchestrating several services and goods, a

firm can create, stage, and market experiences.

5. Persons Artists, musicians, CEOs, physicians, high-profile

lawyers and financiers, and other professionals often get help
from marketers.

6. Places Cities, states, regions, and whole nations compete

to attract tourists, residents, factories, and company
headquarters.

7. Properties are intangible rights of ownership to either real

property (real estate) or financial property (stocks and bonds).
8. Organizations Museums, performing arts organizations,
corporations, and nonprofits all use marketing to boost their
public images and compete for audiences and funds.

9. Information is essentially what books, schools, and

universities produce, market, and distribute at a price to parents,
students, and communities.

10. Ideas Every market offering includes a basic idea.

WHO MARKETS?

Basically, if you have an idea about marketing your answer

must be “of course marketer/seller of the product”. Definitely
your right, A marketer is someone who advertise or promote
something, they seek a response—attention from another party,
called the prospect. Marketers are skilled at stimulating demand
for their products, but that’s a limited view of what they do. They
also seek to influence the level, timing, and composition of
demand to meet the organization’s objectives.

The New Marketing Realities

The marketplace is dramatically different from even 10

years ago, with new marketing behaviors, opportunities, and
challenges emerging. Competition arises on the business that’s
why innovation was uttered. In here we will focus on the three
main transformative forces: technology, globalization and social
responsibility.

1. Technology- the pace of change and the scale of

technological achievement can be staggering. The number of
mobile phones user, millions of residents accessing internet,
Facebook’s monthly users passed 1 billion. With the rapid rise of
e-commerce, the mobile Internet, and Web penetration in
emerging markets, and massive amounts of information and
data about almost everything are now available to consumers
and marketers.

2. Globalization The world has become a smaller place. New

transportation, shipping, and communication technologies have
made it easier for us to know the rest of the world, to travel, to
buy and sell anywhere. By 2025, annual consumption in emerging
markets will total $30 trillion and contribute more than 70
percent of global GDP growth. Globalization changes innovation
and product development as companies take ideas and lessons
from one country and apply them to another.

3. Social Responsibility Poverty, pollution, water shortages,

climate change, wars, and wealth concentration demand our
attention. The private sector is taking some responsibility for
improving living conditions, and firms all over the world have
elevated the role of corporate social responsibility. Because
marketing’s effects extend to society as a whole, marketers must
consider the ethical, environmental, legal, and social context of
their activities.

A Dramatically Changed Marketplace

Technology, globalization, and social responsibility—have
dramatically changed the marketplace, bringing consumers and
companies new capabilities. The marketplace is also being
transformed by changes in channel structure and heightened
competition.

New Consumer Capabilities- Social media is an explosive

worldwide phenomenon. Can use the Internet as a powerful
information and purchasing aid, can search, communicate,
and purchase on the move, can tap into social media to
share opinions and express loyalty, can actively interact with
companies and can reject marketing they find inappropriate.
At the same time, globalization, social responsibility, and
technology have also generated a new set of capabilities to help
companies cope and respond

New Company Capabilities- Companies can use the Internet

as a powerful information and sales channel, including for
individually differentiated goods. Can use the Internet as a
powerful information and sales channel, including for
individually differentiated goods, can collect fuller and richer
information about markets, customers, prospects, and
competitors, can reach customers quickly and efficiently via
social media and mobile marketing, sending targeted ads,
coupons, and information, can improve purchasing,
recruiting, training, and internal and external communications
and can improve cost efficiency.

THE HOLISTIC MARKETING CONCEPT

Is based on the development, design, and implementation
of marketing programs, processes, and activities that recognize
their breadth and interdependencies. Holistic marketing
acknowledges that everything matters in marketing—and that a
broad, integrated perspective is often necessary.

Relationship marketing aims to build mutually satisfying

long-term relationships with key constituents in order to earn
and retain their business.

Integrated marketing occurs when the marketer devises

marketing activities and assembles marketing programs to
create, communicate, and deliver value for consumers such
that “the whole is greater than the sum of its parts.” Two key
themes are that (1) many different marketing activities can
create, communicate, and deliver value and (2) marketers
should design and implement any one marketing activity with
all other activities in mind.
 Internal marketing, an element of holistic marketing, is the
task of hiring, training, and motivating able employees who
want to serve customers well. Smart marketers recognize
that marketing activities within the company can be as
important—or even more important—than those directed
outside the company.

Performance marketing requires understanding the financial

and nonfinancial returns to business and society from
marketing activities and programs.

UPDATING THE FOUR P’S

Marketing activities into marketing-mix tools of four broad

kinds, which he called the four Ps of marketing: product, price,
place, and promotion. A complementary view of the four Ps can
be found in Marketing Insight: Understanding the 4 As of
Marketing,” Given the breadth, complexity, and richness of
marketing, however—as exemplified by holistic marketing—
clearly these four Ps are not the whole story anymore.

Understanding the 4 As of Marketing

According to Jagdish Sheth and Rajendra Sisodia, poor

management as a consequence of not knowing what drives
consumers is behind the majority of marketing failures. The
customer-centric marketing management framework
emphasizes what they believe are the most important consumer
values—acceptability, affordability, accessibility, and awareness—
which they dub the four As.

Acceptability is the extent to which a firm’s total product

offering exceeds customer expectations.

Affordability is the extent to which customers in the target

market are able and willing to pay the product’s price.
 Accessibility, the extent to which customers are able to
readily acquire the product, has two dimensions: availability
and convenience.

Awareness is the extent to which customers are informed

regarding the product’s characteristics, persuaded to try it,
and reminded to repurchase.

The Evolution of Marketing Management

People reflects, in part, internal marketing and the fact that

employees are critical to marketing success. Marketing will
only be as good as the people inside the organization.

Processes reflects all the creativity, discipline, and structure

brought to marketing management. Marketers must avoid ad
hoc planning and decision making and ensure that state-of-
the-art marketing ideas and concepts play an appropriate
role in all they do, including creating mutually beneficial long-
term relationships and imaginatively generating insights and
breakthrough products, services, and marketing activities.

Programs reflects all the firm’s consumer-directed activities.

It encompasses the old four Ps as well as a range of other
marketing activities that might not fit as neatly into the old
view of marketing.

Performance as in holistic marketing, to capture the range

of possible outcome measures that have financial and
nonfinancial implications (profitability as well as brand and
customer equity) and implications beyond the company itself
(social responsibility, legal, ethical, and the environment).

Marketing Management Tasks

 With these concepts in place, we can identify a specific
set of tasks that make up successful marketing management
and marketing leadership. Marketing management is the art and
science of choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value.

Philip Kotler and Kevin Lane Keller. (2016). Marketing

Management, 15th edition. Pearson Education, Inc. ISBN 10: 1-
292-09262-9. pp. 25-56

Whichever direction it chooses, it must develop concrete

marketing plans that specify the marketing strategy and tactics
going forward. Applying the new marketing realties can help
marketing to succeed the business.

Developing Marketing Strategies and Plans

Capturing Marketing Insights- Reliable marketing information

system is closely monitoring its marketing environment so it
can continually assess market potential and forecast
demand. To transform strategy into programs, marketing
managers must make basic decisions about their
expenditures, activities, and budget allocations.

Connecting with Customers - marketer must consider how to

best create value for its chosen target markets and develop
strong, profitable, long-term relationships with customers. To
do so, it needs to understand consumer market to gain a full
understanding of how buyers buy. It needs a sales force well
trained in presenting product benefits. It also takes into
account changing global opportunities and challenges.

Building Strong Brands - Applying market segmentation can

help the marketer to evaluate their buyers and decide to
focus on the consumer market and develop a positioning
strategy. Considering growth strategies while also paying
close attention to competitors, anticipating their moves and
knowing how to react quickly and decisively.

Creating Value- Offering to the market, which includes the

product quality, design, features, and packaging. To gain a
competitive advantage, the marketer may provide leasing,
delivery, repair, and training as part of its product offering. Its
price should match well with the offer’s perceived value;
otherwise, buyers will turn to competitors’ products.

Delivering Value - determine how to properly deliver to the

target market the value embodied in its products and
services. Channel activities include those the company
undertakes to make the product accessible and available to
target customers.

Communicating Value- adequately communicate to the

target market the value embodied by its products and
services. It will need an integrated marketing communication
program that maximizes the individual and collective
contribution of all communication activities.
 Conducting marketing responsibly for long-term success-
build a marketing organization capable of responsibly
implementing the marketing plan. Because surprises and
disappointments can occur as marketing plans unfold,
Marketer need to gather feedback and control to understand
the efficiency and effectiveness of its marketing activities
and how it can improve them.

FAIR WARNING
Taking screenshots, copying and pasting, or using any similar
methods to obtain and share content on other platforms is
strictly prohibited.

NOTICE
Please be reminded that it has come to the attention of the
Publishing Team of eLearning Commons that learning materials
published and intended for free use only by students and faculty
members within the eLearning Commons network were
UNLAWFULLY uploaded in other sites without due and proper
permission.

PROSECUTION
Under Philippine law (Republic Act No. 8293), copyright
infringement is punishable by the following: Imprisonment of
between 1 to 3 years and a fine of between 50,000 to 150,000
pesos for the first offense. Imprisonment of 3 years and 1 day to
six years plus a fine of between 150,000 to 500,000 pesos for the
second offense.

COURSE OF ACTION
Whoever has maliciously uploaded these concerned materials
are hereby given an ultimatum to take it down within 24-hours.
Beyond the 24-hour grace period, our Legal Department shall
initiate the proceedings in coordination with the National Bureau
of Investigation for IP Address tracking, account owner
identification, and filing of cases for prosecution.

BCP Main Campus

BCP Bulacan Campus