PURSUE
MARKETING IN THE MILLENIUM AGE
Importance of Marketing
A successful marketing is mainly what most business aim for. Marketing is the process
of understanding your customers, and building and maintaining relationships with them. It
is a process in which a product or service is launched or promoted.
Here are the functions that show the significance of marketing in any business.
1. Customer
The success of any marketing activity could influence the number of customers who
would willingly spend their money buying the companies’ products and services.
Customers would not be aware what business has to offer lacking promotion.
2. Finance
A business becomes more financially stable and successful when products or services are
effectively marketed.
3. Human resource
No business could survive without human resource to work for them.
4. Production
More products being manufactured by a company means there would be more quantity of
goods to trade and more earning opportunity a well. Though a company's warehouse is
jam-packed with products, without marketing these items would not sell and these
inventories may turn out yield less.
5. Competition
Competition always starts when certain goods and services grow to be more well-liked
and then other companies begin selling the same. With marketing, a company would be
more noticeable and customers would choose to the company than the rest of its
competitors in buying the same goods and services.
6. Decision
In the local markets before, selling is simply a direct link between manufacturer and end
consumers. These modern times it is exceedingly difficult and hard job to market
products. Along with production, marketing has surfaced as a new specialization Hence,
manufacturers now find it easier and dependable to make use of marketing to their
advantage particularly on what to manufacture and trade. Consequently, with numerous
techniques in marketing, manufacturers nowadays can control their production.
7. Idea
The idea of marketing is so dynamic and has altered a lot through times. With numerous
changes, the impact to production and distribution is extensive. The changes in marketing
go along with the fast transformation in tastes and preference of consumers Marketing
has provided the possibility to understand this new demand pattern. For this reason,
companies are able to adjust their production and distribution.
8. Economy
According to Adam Smith, "nothing happens in our country until somebody sells
something". Certainly, it is marketing that serves as the key player that makes the
economy flourish. The economy is made strong and stable by the marketing organization,
If the marketing function would not be pressured, the economy would become weak.
MARKETING SCOPE
Marketing has an extremely broad scope. It covers all the activities starting from the formation of
ideas to generating profits. Here are the scopes of marketing as discussed below:
1. A consumer wants and needs - Goods are created to suit consumer wants. Consequently, a
study is made to discover consumer needs and wants. These needs and wants prompt consumer
to buy.
2. Consumer behavior - Marketers do study consumer behavior. It is the buyer behavior analysis
that assists marketer in market segmenting, targeting and positioning
3. Product planning and development - This scope includes the activities of product research,
market research, market segmentation, product development, finding out the attributes, quantity
and quality of the products.
4. Branding - Many well-known companies espoused to the branding of their products for
reputation, appeal to more investment opportunities, build trust among customers and for many
other reasons. Branding policy, procedures and implementation programs must be carefully
thought of by marketing managers in branding products.
5. Packaging - Besides serving as container or wrapper to the product for protection, the
packaging is also used by marketers as a way to draw the attention of customers. When
packaging is well-designed, the product is easier to use and transport.
6. Channels of distribution - It is the function of the marketing manager and sales manager to
make an important decision concerning the best fitting channel of distribution such as
wholesaling, distribution and retailing for the product.
7. Pricing policies - Pricing policies for their products are planned and decided by the marketing
manager. Pricing policies depend on the nature of products: The level of competition, product
lifecycle and marketing goals and objectives could make an influence on pricing policies.
8. Sales management - Selling is an important component of marketing. Selling includes
identifying customers, determining the customer needs, convincing customer to purchase
products, customer service, and other similar activities.
9. Promotion - Important elements of promotion consist of personal selling, sales promotion, and
advertising. In order to attain the planned marketing goals, there is a need for a marketing
manager to create the right promotion mix.
10. Finance - Without finance, no marketing activity could be executed. Every marketing
activity such as packaging, advertising, personal selling and even distribution require an
appropriate budget to be accomplished.
11. After-sales services - In order to maintain good relationships with customers, marketing
needs to perform after-sales services. After sales services may include maintenance or repair of
equipment by its manufacturer or supplier, during and after a warranty period and attending to
customers queries and solve their problems.
WHAT IS MARKETED
Marketing is naturally seen as the duty of creating, promoting and delivering goods and services
to consumers and businesses. Basically, marketing deals with the question, "what is marketed?"
According to Ferell and Hartline (2013), marketing people are involved with ten types of entities.
1. Goods - The major part of a country's production and marketing effort consists of physical
goods. Companies produce and market billions of food products cars, refrigerators, televisions,
and machines. Nowadays, even internet companies may market their goods besides doing it
directly or through retail outlets. Everyone is too grateful to the Internet, even individuals can
successfully sell goods and services.
2. Services - Today's economy advances, the focus is not anymore much center of goods
production but also in the production of services Services include the work of airlines, hotels and
car rental. Professionals working within or for companies such as accountants, bankers, and
lawyers are also part of services. Most markets offering now include a changeable mix of goods
and services. In a food-restaurant such as Jollibee, Chowking and Mang Inasal, the consumer
enjoys both the food (product) together with the service of the crew.
3. Events - Events are promoted by marketers. Events can be in the form of trade shows,
company anniversaries, entertainment award shows, local festivals. health camps, concerts and
so on. For example, global sporting events such as the fights of Manny Pacquiao, concerts of
well-known singers like Eric Santos, Gary Valenciano, and Ogie Alcasid are promoted
aggressively to both companies and fans. There is an entire profession of meeting planners who
plan the particulars of the event and make definite it comes off faultlessly.
4. Experiences - Through offering a mix of both goods and services, marketers may create
experiences. A product is promoted by communicating features and by furnishing exceptional
and exciting experiences to customers. The Enchanted Kingdom represents experiential
marketing. Customers visit the fairy kingdom and experience various rides. There is also RJ
Bistro owned by celebrity Jacinto himself where the customer can enjoy the meal and see the
Ramon "R" Jacinto and his band in a live concert in Dusit Hotel.
5. Persons - Recently, celebrity marketing has become a business owing to the increase in
testimonial advertising. All well-liked and trendy personalities such as film stars, TV artists, and
sportspersons now have agents and personal managers their own. They also tie up with Press
Relations agencies for superior marketing of oneself. Musicians, CEOs, physicians, and
politicians are also receiving help from celebrity marketers. Some people have done a masterful
job of marketing themselves such as Sarah Geronimo, Sharon Cuneta, Vice Ganda and Anne
Curtis. It is recommended that each person not just celebrities, develops himself as a brand.
6. Places - Cities, states, regions, and countries compete to draw tourists to their places. These
days, states and countries are also marketing places to factories, companies, new residents, real
estate agents, banks and business associations. Place marketers include economic development
specialists, real estate agents commercial banks, local business associations and so on. In order to
energize their high tech industries and generate entrepreneurship, cities and states are
aggressively fascinating large industries with different infrastructure and tax facilities, quality of
life and other advantages In the Philippines, the Department of Tourism is persistently promoting
tourist spots locally and globally as embodied in its latest infomercial entitled It's more fun in the
Philippines
7. Properties - Properties can be categorized as real properties or financial properties. Real
property is the ownership of real estates, while financial property relates to stocks and bonds
Properties are bought and sold through marketing Marketing boosts the necessity of ownership
and produces possession utility Amid improving income levels in the economy, people are in
search of a better approach to saving money. Financial and real property marketing have to build
trust and confidence at higher levels.
8. Organizations - Organizations dynamically make effort to build an image in the minds of
their target public The marketing department plays a vigorous role in the promotion of a
company's image. Most importantly, marketers of services have to create the corporate image,
since services do not result in the ownership of something. The organization's goodwill supports
trust and reliability The corporate image also helps companies in the smooth introduction of new
products.
9. Information - Information can be created and promotes a product. Educational institutions,
encyclopedias, non-fiction books, specialized magazines, and newspapers sell information.
Information is distributed from schools and universities to the parents and children for a certain
price. The production packaging, and distribution of information are keys to any industry. Media
revolution and better literacy levels have expanded the extent of information marketing.
10. The idea - Each market offering consists of a basic idea. Products and services are used as
instruments for conveying some idea or benefit Social marketers widely promote ideas. Metro
Manila Development Authority (MMDA) always promotes safe driving habits need to wear seat
belts, need to prohibit children from sitting near the driver's seat, and so on. "Yosi Kadiri" is an
idea promoted by the Department of Health during the time of the late doctor turned senator and
Department Secretary Jose Flavier. This campaign, the most successful tobacco control drive this
country ever witnessed, catapulted a national consciousness about the harmful health effects of
smoking.
MARKETING CORE
CONCEPTS
To simply the definition, it says that:
1. Marketing produces value for the customers.
2. Marketing pleases customer as profits are generated.
3. Marketing makes good relationship with customers. 4. All activities of marketing are towards
customer satisfaction.
Marketing creates value for the customer. Therefore, a marketer must have a clear concept of
customer needs, wants and market conditions. A core concept is one which has an extremely
precise, specific, commonly acceptable, applicable, and conformable to understand the very
process of marketing that directs the flow of goods and services from producers to consumers.
Here are the core concepts of marketing:
NEEDS, WANTS AND DEMAND
Human needs are states of felt deprivation. The prerequisite to embarking on marketing activities
is the existence of unmet needs. The satisfaction of consumers' needs is what marketing attempts
to do. Needs are of various types such as physical needs, social needs, personal needs. Basically,
people require food, shelter, clothing, esteem, belonging, and likewise. Needs are not formed,
they are pre-existed in a human being. Needs are psychological in nature and usually create
tension. These psychological tensions can only be released through consuming and using
products.
3 TYPES OF NEEDS:
1. Existing need – Any need of the customers which is short-term and is readily obtainable
is known as existing need. If a person needs to throw away the leftovers, he must have a
garbage bin. There are many businesses which gratify the existing needs of customers.
Since it is a common market, the competition in this market is believed to be enormous.
The need-based market segment is also one of the most popular market segments. A start
up business usually tries to accommodate the existing need of the customer.
Demographic and geographic segmentation is generally used to furnish the existing needs
of customers.
2. Latent need - A need of a customer which is there but has not manifested itself because
such a product has not been launched. Companies which tap the latent needs of customers
need a lot of innovation and might go wrong at times. Although these are the companies
which have fantastic profitability because they cater to the needs of the customers which
even the customer does not know he has. An ideal example of two companies becoming
renowned due to the latent needs they catered to is the Sony Walkman and soon after the
Apple Ipod. Sony's Walkman made the music lover independent and he did not have to
stick around his cassette or record player any longer. Nobody thought they may possibly
listen to music on the move. Hence, as soon as Sony launched this product, everyone
loved it. Creating awareness was the only tough part for Walkman. Its market acceptance
and penetration was unbelievable. Very similar happened to Apple iPod. No doubt,
everyone loved a walkman. Although later, no one felt like carrying cassettes around all
the time. In addition, they were fed up of changing sides of the cassettes and recharging
the walkman after every two hours. So when the iPod was introduced, people cherished
it. An MP3 player which they could bring wherever was very small and could hold 1,000
or above songs at times.
3. Incipient need - It is a type of need which people want but there is no product to satisfy
that need. The incipient need could turn into a window of opportunity The newspaper
industry got push into the difficult position of having to rethink its whole business model
following technologies like the Internet, personal computers and mobile devices started
offering fresh means and methods for obtaining news and information. These
technologies displaced the previously dominant newspaper. Though the consumer desire
for news and information has stayed definitely intact, the motives and means for
acquiring it have changed significantly.
WANTS
Wants are a form of human needs influenced by culture and individual personality. Wants are the
choices to gratify a particular need. In fact, every need can be satisfied by using different options.
When a Filipino person feels hungry, he takes rice and fish. If a person is an American, he takes
fast food possibly consisting of burger sandwich and beans.
DEMAND
Demand is the want for particular products that are supported by the ability and willingness or
readiness to buy them. It is at all times conveyed in relation to time. Not all wants are expressed
as demand. Only those wants which are backed by ability and willingness to buy can become a
demand. Often, a marketer endeavors to control demand by creating an eye-catching, reasonably
priced, and easily obtainable product. In marketing, the quantum and timing of demand is called
as demand management. Demand should have three conditions:
1. The desire of getting the product or service;
2. Ability to pay for the product or service; and
3. Intention to pay for the product or service
Demand could be in these natures, namely:
1. Negative demand - Major market dislikes the product, hence seeks to stay away from it. The
product may be helpful but the customer does not like it. Example of negative demand is dental
work where people do not want problems with their teeth and make use of precautionary
measures to prevent the same Likewise, insurance is a product which people should have but
they postpone buying an insurance policy.
2. No Demand - Some products face the challenge of no demand. Possibly customers are
unaware and uninterested in the product. For instance, farmers may not be interested in the latest
farming method. Possibly, college students may not be fascinated in a foreign language course.
3. Latent Demand- Latent demand is a demand which the customer realizes later. Thus, while
buying the product, he might not want some features. Except, later on, he may reflect on those
features and purchase the product. People nowadays, for instance, want more and more features
in the Smartphone. Consumers may settle for a normal phone, but then shortly they get irritated
to it and decide to buy a smartphone.
4. Declining demand - Demand decreases over a period of time. Although there is still a demand
for the product, the demand is a declining one. For instance, when CD players were introduced
and iPod came on the market, the demand for walkman went down.
5. Irregular Demand - Irregular demand is a demand which is not steady. The best example of
irregular demand is seasonal products such as umbrellas, air conditioners or resorts. These
products sell occasionally and sell more during peak season while their demand is exceedingly
low during non-seasons.
6. Full Demand - In a perfect environment, a company must constantly have filled demand. Full
demand means that the demand is satisfying the supply potential of the company. Moreover, it
means that the markets are pleased with the products of the company and that people feel like
buying from the same company. Mostly these are fast moving consumers goods (FMCG) items
such as toothpaste, shampoos, conditioners, coffee, creamers that are consumed daily
7. Overfull Demand -Overfull demands occur when the companies manufacturing capacity is
inadequate but the demand is above the supply. Occasionally, this can be observed in the cement
industry. Normally, most cement industries have restricted manufacturing capacity. Hence, brand
switching in cement industry is high. Numerous companies use de-marketing techniques to offset
overfull demands.
8. Unwholesome Demand - Unwholesome demand is the other face of negative demand. In a
negative type of demands, a customer does not feel like the product even though the product
might be essential for the customer. However, in unwholesome demand, the customer should not
be using the product, yet the customer desires the product badly. Examples of these are
cigarettes, narcotic drugs, alcohol, pirated movies, guns, and others.
MARKETING OFFERS
Marketing offers are some mixture of products, services, information, or experiences presented
to a market to gratify a need or want. Marketing offers include both product and service or
experience.
1. A product is everything that can be offered to a market for attention, acquisition, use or
consumption that may satisfy a want or need. It can also be referred to as a bundle of satisfaction,
physical and psychological. A product consist of core product (basic contents or utility), product
related features (color, branding, packaging, labeling, varieties, others) and product-related
services (after-sales services, guarantee and warranty, free home delivery, free repairing, and so
on). So, tangible product is a package of services or benefits. A marketer should consider product
benefits and services, instead of the product itself.
2. Service is any activity or benefit that one party can present to another that is basically
intangible and does not result in the ownership of anything. Services can be alternatively defined
as products, such as a bank loan or a home security, that are to some extent intangible. If totally
intangible, they are exchanged directly from the producer to the user, cannot be transported or
stored, and are almost instantly perishable. Services include health service, banking, and
insurance service, transportation service and so on. A taxi service is a service that is tangible.
Taxi drivers provide both the good (a car), which provides the means of travel, as well as the act
of driving to a place, which is measurable and essentially a service. Therefore a taxi cab driver
provides both a good and a service, so he is providing a product.
3. Experiences are knowledge or skill which is gained from doing, seeing or feeling things. For
instance, due to experience, World Balance not only produces shoes, but also it is producing high
quality, popular active lifestyle shoes for men, women, and kids.
UTILITY, COST, VALUE, AND SATISFACTION
1. Utility means an overall ability of a product to gratify need and want. It is a guiding
concept to select the product. Every product has a varying degree of utility. As per level
of utility, products can be ranked from the most need satisfying to the least need
satisfying. Buyer purchases such a product, which has more utility. A utility is, therefore,
the power of product to satisfy a particular need.
2. Cost means the price of a product. It is a monetary value of a product. The charges a
customer has to pay to avail certain services can be said as cost. The utility of a product is
parallel with the cost that he has to give. He will choose such a product that can propose
more utility (or value) for certain price. He tries to take full advantage of value, that is,
the utility of product per peso.
3. Customer value is the difference between the customer gains from owning and using a
product and the cost of obtaining the product. The definition suggests that there are two
aspects to customer value namely, desired value and perceived value. Desired value
refers to what customer wants in a product or service.
Perceived value is the benefit that a customer believes he received from a product after it
was purchased. Customer value can be studied at different levels. Al a low level,
customer value can be observed as the features of a product that a customer perceives to
get value from. At a higher level, customer value can be seen as the emotional payoff and
achievement of a goal or desire. When customers gain value from a product, they obtain
value from the features of the product and from the feature performance and the result of
achieving most wanted goals from the use of the product.
4. Satisfaction is a person's feeling of delight or displeasure as a result of comparing a
product's perceived performance in relation to his or her expectations. Satisfaction
depends on the perceived performance of product or service Satisfaction means
fulfillment of needs. Satisfaction is possible when buyer perceives that product has more
value compared to the cost paid for Satisfaction closely concerns with the fulfillment of
all the expectations of the buyer. Satisfaction releases the tension that has aroused due to
unmet need/s. In short, more utility or value with fewer cost results into more
satisfaction.
EXCHANGE, TRANSACTION, RELATIONSHIPS AND NETWORK
An exchange is at the heart of marketing. Marketing management tries to arrive at the
desired exchange. Marketing materializes only when people would like to satisfy their needs and
wants using an exchange. An exchange is an act of acquiring a preferred product from someone
through offering something in return. Taking chocolates by paying money is a good example of
an exchange. An exchange is a process, not an event. It means that people are bargaining and
going into a consensus on an agreement.
When an agreement is achieved, it becomes a transaction. A transaction is a decision
entered into or commitment done. Transactions can be very simple, like buying a newspaper, or
extremely complex, taking a long time and involving many companies or agencies. Some
transactions are simple exchanges. Paying ten pesos for a cup of coffee is a transaction. Getting a
haircut, eating at a restaurant, even buying something expensive like a washer or dryer can be a
transaction. Most transactions are simple and singular events which may or may not be repeated
and take place between a vendor and a customer. Many transactions are complex. Purchasing an
item with credit involves a series of transactions before the purchase can be completed. Setting
up a vacation through a travel agency requires booking hotels, flights, possibly rail or boat travel,
tours and making other arrangements, all of which require transactions. Getting a credit to buy a
home or building requires numerous transactions with the lender, title company, real estate
agency, buyer, seller, loan underwriter and more.
Today's marketing practice gives more significance to relationship building Marketing
practice based on relationship building can be said as relationship marketing. Relationship
marketing is the practice of building long-term profitable or satisfying dealings with
significant parties such as customers, suppliers distributors, and others to preserve their
long-term preference in business. It needs trust, commitment, cooperation, and a high degree
of understanding. It results in economic, technical, social, and cultural bind among the parties.
The marketing manager is responsible for setting up and preserving long-term relations with the
parties involved in the business.
A network is the definitive conclusion of relationship marketing. A marketing
network includes the company and its supporting stakeholders such as customers, employees,
suppliers, distributors, advertising agencies, colleges and universities, and others whose role is
regarded as necessary for the success of a business. It is an enduring system of relations with
stakeholders. Eventually, a good network of relationships with important stakeholders would
result in excelling the marketing performance.
MARKET, MARKETING, MARKETER, AND PROSPECT
In marketing management, commonly used words are markets, marketing, marketer, and
prospects. A market comprises all possible customers sharing a particular need or want who
might be eager and able to engage in exchange to gratify this need or want.
Marketing is social and managerial process by which individuals and groups get what they
need and want by creating and exchanging product and value with others. A marketer is
one who seeks one or more buyers to engage in an exchange. Here, a seller can be the
marketer as he desires other to engage in an exchange. Usually, company or business unit can be
supposed as a marketer.
Prospect is someone to whom the marketer spots as possibly agreeable and able to engage in
the exchange. In case of exchange between two companies, both can be said as prospects as well
as marketers. Normally, a consumer who purchases a product from a company for satisfying his
needs or wants can be assumed as the prospect.
