Marketing Fundamentals: Needs, Wants, Demand, and Value Proposition, Schemes and Mind Maps of Production and Operations Management

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LET’S TALK

ABOUT

Presenter: Prof. Romeo G. Pajigal

• (^) is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.
• (^) Marketing identifies unfulfilled needs and desires
• (^) It defines measures and quantifies the size of the identified market and the profit potential.
• (^) According to (America Marketing Association, 2007), is the activity, set of institutions, and processes for creating, communicating, delivering, and LET’S DEFINE:

Needs, Wants &

Demand

HUMAN NEEDS WANTS DEMAND

• (^) It is the most basic concept underlying the study of marketing. It is the state of felt deprivation.
• (^) These needs include physical (food, clothing, shelter and safety), social (needs for belonging and affection); and individual needs (for knowledge and self expression)
• (^) Are the form taken by a human need as shaped by their culture and individual personality
• (^) Wants are shaped by one’s society and are described in terms of the objects that will satisfy needs.
• (^) When backed by buying power, wants become demands
• (^) Given their wants and resources, people demand products that will benefit and provide them the most value and satisfaction

Marketing Offers

• (^) These are the combined products offered by a certain company to their market to satisfy their need or want. Products are classified into two: the goods (tangible products) and the services (intangible products)

GOODS

• (^) these are products which are considered to be tangible , meaning a customer can hold them, and own them examples of goods are cellphones, chairs, food, necklace , etc.
• (^) these are products which are considered to be intangible , meaning you can’t hold, nor own it, but just experience the product. Example of these are: massage spa services; salon services; bank services; education services , etc

SERVICES

Value & Satisfaction

• (^) CUSTOMER

It is the difference between the values VALUE

(importance) customer gains from owning and using a product from the cost of obtaining the product. You would either be satisfied, dissatisfied or delighted (kotler & amstrong, 2010) This is a key influence on future buying behavior; thus satisfied customers buy again and tell others about their good experiences. For people to be satisfied with a product the establishment should make sure that they meet (satisfied) or exceed (delighted) their customer’s expectations

• (^) CUSTOMER

SATISFACTION

Exchange, Transaction and Relationships in Marketing

• (^) According to Kotler & Armstrong (2010), marketing involves the following processes: exchange, transactions, and relationship.

EXCHANG

E

• (^) Is the act of obtaining a desired object from someone by offering something in return.
• (^) Example: barter (exchange of good with another good); offer money in return for a good/service.

TRANSACTIO

N

RELATIONSHI

P MARKETING

• (^) is a trade of values between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.
• (^) It is the marketing unit of measurement
  • (^) is the process of creating, maintaining, and enhancing strong, value-laden relationship with customers and other stakeholders.

The Goals of Marketing

• (^) The goal of marketing is to satisfy target customer’s needs, wants, and expectations more superiorly than competitors (Go, 1998).
• (^) These are the important fold goal of marketing:

INCREASE

MARKETING SHARE

DEVELOPING BRAND

AWARENESS

CREATING A BRAND

IMPROVING

DISTRIBUTION

The CONTEMPORARY approaches to MARKETING

RELATIONSHIP

MARKETING

BUSINESS MARKETING/

INDUSTRIAL

MARKETING

• (^) marketing philosophy of building relationships between brands and customers that will last a significant amount of time. - (^) In this context, marketing takes place between businesses or organizations and their product focuses on industrial goods or capital goods rather than consumer goods

SOCIAL MARKETING

• (^) It holds that organization should determine the needs, wants, and interests of their target markets and delivered the desired satisfactions

INTERNET

MARKETING

• (^) In the advent of technology, new forms of marketing have emerged and made use of internet and are sometimes called as online marketing, digital marketing or

DEFINITION OF MARKET

SEGMENTATION

Market segmentation is dividing the market into smaller groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts. According to Grewal and Levy (2012), there are six (6) methods of segmenting market, namely:

1. Geographic segmentation, 2) Demographic segmentation, 3) Psychographic segmentation,
2. Geo-demographic segmentation, 5) Benefits segmentation, and 6)

Elements of Marketing

• (^) The marketing mix is also called the 4Ps and the 7Ps. The 4Ps are price, place, product and promotion. The services marketing mix is also called the 7Ps and includes the addition of process, people and physical evidence (Marketing Teacher, 2010)

Four C’s of Marketing Mix

• (^) R.F. Lauterborn (1993) proposed a 4 Cs classification to address the growing focus of marketing strategist on the consumer. The traditional marketing mix is a 4 P’s model and is business oriented.
• (^) The 4 Cs consists of consumer, cost, convenience and communication. The roots of the 4 Cs of marketing can be traced back to the classical 4 Ps marketing mix

PRODUCT

DEVELOPMENT

• (^) The phase when a company looks for a new product. During this stage, sales are zero and the company’s investment cost mounts.

INTRODUCTIO

N

• (^) The product's costs rise sharply as the heavy expense of advertising and marketing any new product begins to take its toll

GROWT

H

• (^) As the product begins to be accepted by the market, the company starts to recoup the costs of the first two phases. The company starts to experience rapidly rising sales, average cost per customer, rising profits, early adopters are targeted, and growing competition

MATURITY

• (^) By now the product is widely accepted and growth slows down. The company now experience sales peak, low cost per customer, high profits, middle majority are targeted, and competition begins to decline

DECLINE

• (^) A company will no longer be able to fend off the competition or a change in consumer tastes or lifestyle will

Product Life Cycle Strategies