Marketing

- It refers to any actions a company takes to attract an audience to the company’s

product or services through high-quality messages.
- A complex business process directed towards satisfaction of consumers’ present
and future wants through supply of goods and services and in the end would reward
those engaged in such activities.
- It is the process in a society by which the demand structure for products and
services is anticipated or enlarged and satisfied through the conception, promotion,
exchange and physical distribution of such goods and services.
- It is a system concerned with the planning and development of products and
services, determination of prices, creation of promotional programs and
distribution system to present and prospective market for satisfaction of their
existing needs and wants thus maximizing profit in the long run.
 Marketing is:
Analysis of the Definition
a.) system that requires planning to
determine the products or services that
must be produced.

b.) marketing mix

c.) presence of current and potential market

d.) satisfaction of the existing human needs

and wants
Significance of Marketing
1 It helps in selling goods and services

2. It identifies consumers’ needs, wants and delivering appropriate product and

services to customers so as to maximize their satisfaction

3. It contributes greatly to the success of an organization.

4. It generates revenue and employment

5. It is helpful in stabilizing prices and optimum utilization of the resources

A marketplace is a platform where vendors can come together
to sell their products or services to a curated customer base.
The role of a marketplace owner is to bring together the right
vendors and the right customers to drive sales through an
exceptional multi-vendor platform - sellers have a place to gain
visibility and sell their products, and the marketplace owner
earns a commission from each sale.

In marketing context, marketers are the

marketing organization, the product or
service sellers. They are the producers,
manufacturers, wholesalers or retailers of
goods.
 Producers are those institutions who buy raw materials and
process these into final products.

Manufacturers are those buying

intermediate or half-finished
materials and process these into
final products.

Wholesalers are
institutions who buy final-
finished products and re-sell
them in bulk in the same
Retailers are those who buy finished products and resell in small original form.
quantities and in the same form to final users.
Things to be marketed
a.) Products

b.) Services

c.) Ideas

d.) Institutions

e.) People
 The CORE product is NOT the tangible physical
The Three Product Level product. You can’t touch it. That’s because the core
product is the BENEFIT of the product that makes it
valuable to the consumers. The convenience a
consumer can have it.
The ACTUAL product is the tangible, physical
product. You can get some use out of 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.
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.
Post Test (Quiz #1)
Identify the features of a product according to its product level. Write the letter of
your choice.

A. Core Product B. Actual Product C. Augmented Product

_____1.) mouthwatering mozzarella pizza

_____2.) quench your thirst

_____3.) 5 years of warranty

_____4.) high quality performance

_____5.) comfort it gives to your feet

Classification of Products
 1. Products according to use:
a. Consumer products are products that purchase for consumption such as milk,
noodles, detergent, soap and others
b. Industrial products are products that purchase to make other goods like
aluminum used to manufacture kitchen equipment or can

2.) Products according to durability:

c. Durables are product manufactured to last for a long time. They are capable of
providing a consumers with years of beneficial use like automobiles, house,
home appliances, furniture, and sports equipment.
d. Non-durable or consumable is a product whose benefit can only be used by a
consumer for a short period of time like food, drinks, soap and tissue papers.
e. Semi-durable products provide benefits to the consumer for a longer period of
time usually spanning for several months or years like clothes, shoes, bags,
plates and others
3.) Products according to types:

a. Convenience goods are products that are purchased frequently, are usually
inexpensive and do not require much purchase effort and evaluation like
newspaper, gum and candy. The key to successful marketing is its availability
in as many retail outlet..

b. Shopping goods are purchased less frequently than convenience goods, are
relatively more expensive, and require some amount of information search
and evaluation prior to purchase like shoes, clothes and handbags. The
successful marketing of shopping goods is intensive advertising, well trained
salesperson and positioning company’s product.
C. Specialty goods are goods 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 like automobiles, houses, condominiums and
others. The successful marketing of specialty goods require the promotion of
strong brand image and identities.

D. Unsought goods are goods that consumers seldom actively look for and are
usually purchased for extraordinary reason such as fear or adversity rather than
desire like investment, memorial plan or insurance. These goods are requires
advertising and aggressive selling and are usually marketed using highly trained
and persuasive salesperson.
Seatwork #1

Instruction. Classify the products by checking the column that corresponds to your answer.
Examples Consumer Industrial specialty Unsought Shopping Convenience

Clothes

Detergent

Aluminum

Automobiles

Memorial plan

Condominium

Investment

Bubble gum

Tissue Paper
Two Interacting Components of Marketing

Marketing Concept is a management

of orientation which holds that they
key task of the organization is to
determine the needs and wants of the
target markets and to adapt the
organization to delivering the desired
satisfactions more effectively and
Selling concept is a management efficiently than its competitors.
orientation which assumes that
consumers will either buy or not buy
enough of the organization’s products
unless the organization makes a
substantial effort to stimulate their
interest in its products.
 Product planning and
development
Discover the needs
and wants of the
Production
target market Research

The Distributio
n
Marketing
Concept

Guarantee
d Sales

Customer Satisfaction
 Product planning and
development

Production
Promotional Methods

Unguaranteed Sales Persuasive

Selling Techniques
and Customer
Concept

Profit Distributio
n
The Marketing System
The marketing system deals with identification of major institutional components in
an organization’s environment that interact to produce results in the marketplace.
Market Segmentation
Market Segmentation is the process of knowing the overview of the entire
target market, but differentiating them from competitors by recognition of sub-
markets with similarity in needs but differs in demographic, geographic, economic,
cultural and psychological ways.

The strategy of segmentation tries to find a market and penetrate it to the

greatest extent possible through customized product, services and marketing
strategies to satisfy their needs. This strategy is customer-oriented, which
requires identification of customer needs in a submarket. Then, a product or
service must be designed to satisfy the submarket’s needs.
Bases for Market Segmentation
1. Consumer Market is the one in which the buyers of the product are the
consumers themselves. A consumer market is a system where customers
buy products and services for consumption or sharing with others rather than
for reselling. Most of the products in this market are consumer needs for daily
lives. A consumer market allows individuals to purchase products and
services. As consumers usually make purchases for their consumption in this
market, they have a high decision-making power. It primarily consists of the
products that consumers use in their day-to-day lives. When a person
purchases a product for personal use, they participate in the consumer
market and become a part of it.
Bases for Market Segmentation
2. Industrial Market - also called the producer market is the set of all individuals and
organizations that acquire goods and services that enter into production of other products
that are sold, rented, or supplied to others. Consumption in the industrial market does
not take place as it does in conventional markets. When businesses consume products
that they have bought from another business, it commonly takes the form of economic
investment. Businesses buy goods and services from other businesses to invest in
themselves with the objective of increasing functionality and profits. Compared to the
consumer market, the industrial market differs wildly. Consumers in the industrial market
do not consume like consumers in the consumer market. Businesses' consumption of a
product relates to selling it or investing in it, whereas consumers' consumption commonly
refers to the disappearance of the product like eating the banana that they have bought.
Bases for Market Segmentation
3. Demographic bases:

a. Population - its distribution and composition

A.1 Total population
A.2 Regional distribution
A3. Urban, rural distribution
b. Age groups (children, teenagers, young adults, younger middle aged or
older age)
c. Gender category (male or female)
Bases for Market Segmentation

4. Cultural bases:

a. Race
b. Religion
c. Nationality
d. Education
e. Occupation
Bases for Market Segmentation

5. Economic bases:

a. Income bracket (higher, upper middle, lower middle, or low

income)
6. Psychographic (psychological) bases:
b. Personality
c. Buying attitudes
d. Product benefits desired
 Post Quiz: This test will evaluate the students about their knowledge on Market
Segmentation.

Classify if the products listed below belongs to:

A. Demographic B. Cultural C. Economic D. Psychographic

______1.) Huggies Diaper

______2.) Rolex Watch

______3.) Hijab

______4.) Louis Vuitton

______5.) Crest toothpaste for kids

CHAPTER 2 : Marketing Mix Element 1: Product

Objectives:

1. Students are able to define the

meaning of product
2. Understand the product planning and
development
3. Know the product life cycle
 Product is that bundle of utility (satisfaction) which the buyer receives as the
result of a lease or purchase. It includes the physical good or service itself, the
functions of the product, the package, the label, the warranty, the manufacturer’s
and retailer’s services, after-sale service, the confidence or prestie received by the
brand and the manufacturer’s and retailer’s reputation, and any other symbolic
utility received from possession or use of the goods or services.

A product is simply a set of tangible physical and chemical attributes

assembled in an identifiable form.
Product Planning and Development
Product planning embraces activities which enable producers and
middlemen to determine what should constitute a company’s product line. Under
this activity two questions can be answered:

1. What products to produce? (Question asked by producers or manufacturers)

2. What product to sell? (Question asked by wholesalers and retailers)

Product development is a more limited term encompassing the technical

activities of product research, engineering and design. Product features and
modification like introduction of new sizes, colors, shapes, flavors or creating
several quality levels to better satisfy the present market.
Introduction. This is the stage when
the product is launched in the marke
Informative promotion is need to tell
potential customers about the
advantages and uses of the newly
introduced product.

Growth (market acceptance) stage

During this stage, the company wan
to sustain rapid sales growth throug
the use of “buy our brand” strategy
promoting product benefits, rather
than a simple “try our product”
strategy.
Maturity. On this stage, sales and
profits start to decline.
- Stable maturity where sales
become break-even because of
market saturation.
- Decaying maturity sales continu
to decline because customer
shift to other brands or available
substitute.
Decline and possible
abandonment. On this stage,
continuous decline in sales can be
attributed to technical development,
changes in fashion or tastes of
consumers or lower costs of
substitute brands.
Reasons Why New Products Fall
1. Inadequate market analysis. Inability to determine market demand, buying
motives and overestimation of potential sales of the new product which result
to insufficient marketing information.
2. Product deficiencies. Poor quality of a new product
3. Lack of effective marketing effort
4. Higher cost than anticipated
5. Poor timing of introduction
Possible Solutions to Avoid Product Failure
1. Organizational changes aimed at strengthening new product planning.

a.) Product Advantage. Emphasizing that the new product is of better quality and
has a more reasonable price than products of competitors.

2. Better marketing research to evaluate market need and prospects

b.) Marketing Advantage. Using greater number of distribution outlets or intensive

distribution, as applicable to the new product, compared to competitors.

3. Improved screening and evaluation of ideas and products

c.) Advertising advantage. Greater number of mass media usage or effective

advertising copy structure.
 A product line possesses the following
characteristics:
1. A group of products closely related
to each other
2. They are intended for same uses or
they function in similar manner
3. They may possess similar physical
characteristics
4. Sold to the same customer group
A product line is a group of related 5. Marketed through the same types of
products all marketed under a single outlets with given price lines.
brand name that is sold by the same Examples:
company. Home furnishings
Companies sell multiple product line
s
under their various brand names,
seeking to distinguish them from
 PRODUCT MIX
A product mix possesses the
following characteristics:

a.) The complete list of all products

offered for sale or produced by a
company
b.) It is a composite of all products,
Product mix, also known as product brands, or items within each product
assortment or product portfolio, line.
refers to the complete set of Example:
products and/or services offered by Dining table
a firm. A product mix consists of
product lines, which are associated
items that consumers tend to use
together or think of as similar
products or services.
Post Quiz: Identify whether each item is a PRODUCT LINE or PRODUCT MIX. Write your answer before each
item.

_____1. Appliances
_____2. Home furnishings
_____3. Notebooks
_____4. Dining table
_____5. Shoes
_____6. Women’s accessories
_____7. Spanish coffee
_____8. Washing machines
_____9. Children’s accessories
_____10. Belts
A brand is a word, mark, symbol or a combination of them used to
identify marketer’s product or service.
Classification of Brands
1. According to ownerships.
a. Manufacturer’s brands - those brands owned by the producer or
manufacturer.
Example: Nido full cream milk by Nestle, Phils
b. Distributor’s or middlemen’s brands - those brands owned by wholesalers or
retailers.
Example: Parisian shoes by SM
2. According to extend of geographic coverage
c. National brands - those that are sold in the entire Philippines or
internationally and are advertised.
Example: Samsung electronic gadgets
d. Private brands - they may be sold on limited areas, and are not advertised.
Example: Homemade pastries
Classification of Brands
3. According to use by owner of brand
a. Primary brands - those that are advertised and of high-quality materials
b. Secondary brands - used for special purposes and can be a low-quality
merchandise
4. According to number of products covered
c. Individual or separate name brands - a name or brand intended for one
product only
Example: Tide by Procter and Gamble for its laundry soap
d. Family or blanket brands - a name or brand intended for several products or
group of product
Example: Panasonic is a brand for appliance
5. Generic Brands - product which do not carry official brand names at all. These
can be products with outstanding brand names and have been promoted so well
that many people use them generically.
Example: Colgate, Band-Aid
Brand name is something which can be
vocalized or spoken

Brand mark is a non-registered design,

symbol or product log
Trademark includes any distinctive
word, name, symbol, emblem, sign or
device or any combination thereof
adopted and used by a manufacturer or
dealt in by others. Mark means any
visible sign that is capable of
distinguishing the goods (trademark) or
service (servicemark) of an enterprise
shall include a stamped or marked
container of goods.
Trade name means the name and designation
identifying or distinguishing an enterprise. The term
includes individual name and surnames, first name,
trade name, device or words used by manufacturer,
industrialist, merchants, agriculturist and others to
identify their business, vocation or occupations. A
name or designation may not be used as
trademane if by its nature or the use of which such
name or designation may be put, is contrary to
public order or morals and if in particular, it is liable
to deceive trade circles or the public as to the
nature of the enterprise identified by that name.
Examples: Mcdonald's founder Richard McDonald
Seatwork 2
Identify whether each item is to be registered under a TRADEMARK or TRADENAME.

______1. National Book Store _______6. Jollibee Food Inc.

______2. Pilot pen _______7. Selecta Ice Cream

______3. Paper mate liquid eraser _______8. San Miguel Pilsen

______4. Philippine Airlines _______9. Mitsubishi Motors, Inc.

______5. Marlboro _______10. San Miguel Corporation

 Patent is a grant issued by the Philippine government giving an inventor the right
to exclude others from making, using, selling, or importing the product of his/her
invention within the Philippines in exchange for this patentable information or
disclosure.
Patentable inventories any technical solution of a problem in any field of human
activity that is new, involves an inventive step and is industrially applicable shall be
patentable. It may be, or may relate to a product, or process or an improvement of
any of the foregoing.
The term of a patent shall be twenty (20) years from the filing of date of the
application.
Patent Categories

Invention. Any new and useful machine or device, manufactured product or

substance, process of any improvement thereof that involves an inventive act of a
degree more than the skill of expert artisans of mechanic.
Example:
New machine for the harvesting of palay, new vaccine for prevention of COVID
19

Requirements for patentability are: originality, useful purpose including operativeness,

novelty or newness, inventiveness.

Industrial Design. Any new original and ornamental design for an article of
manufacture.
Example:
New design for furniture, shoes, bags, kitchen utensils
Requirements for patentability are:practical utility including operativeness; novelty or
Patent Categories

Utility Model. Any new model or tool or industrial product or part of same which does
not possess the quality of an invention, but which is practical utility by reason of its
form, configuration, construction or composition.
Example:
Multi-purpose scissors, utensils, improved rice thresher and improved charcoa
stove.
Requirements for patentability are: originality, novelty or newness, ornamentality.
 Is the protection extended to expressions and not to
ideas, procedures methods of operation or
mathematical concepts.

Works Protected by Copyright

- Literary and artistic works, hereinafter referred to as “works”, are original
intellectual creations in the literary and artistic domain protected from the
moment of their creation and shall include in the particular.

a. Books, pamphlets and other writings

b. Periodicals and newspaper
c. Lecture, sermons, addresses
d. Computer programs
e. Movie production

-Derivative works which include:

f. Dramatization
Seatwork:

I. Identify whether each item is to be registered under a

TRADEMARK, PATENT or COPYRIGHT

______1. El Filibusterismo
______2. Multi-purpose scissors
______3. Superman, the movie
______4. Downy
______5. Safeguard

II. Identify the PATENT CATEGORY of each item listed below

_____1. Generator with silencer

_____ 2. Inno Sotto’s bridal gowns
_____ 3. Coach bag
_____ 4. Anti-aids vaccine
_____ 5. Handy aircon