Marketing [Q3M1]

*Marketing
 -Managing the customers profitability [Kotler & Armstrong]
 -Process of conceptualizing, creating, developing, promoting, and sustaining products and services by a company, focusing on the needs and preferences of the customer
 -Activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large [American Marketing Association]
 -Action or business of  promoting or selling products or services to specific groups of consumers
 -Defined as the process by which companies create value for customers and build strong customer relationships in order to  capture value for customers in exchange [Marketing Concept]

   *Marketers acquire "desirable customers" and satisfy their needs which results in these customers becoming loyal  patrons

*Marketing Concept
 -Relates marketing to selling or advertising because of TV commercials and radio advertisements
 -Marketing concept focuses on the satisfaction of customer needs

*Traditional Marketing Approaches
 -Followed 5 major approaches known as |marketing philosophies| [1950]
 -Guided marketers in designing their  marketing strategies

>5 Traditional Marketing Approaches:
 1. Production Orientation
	-Requires a company to embark on mass production and distribution
    -Company produces a large quantity of a product and makes it available to all potential customers
	-Perfected by Ford Motor Company in the early 1950s with Ford marketing only 1 model design and made the car affordable for the majority of the customers
	-Employed by many start-up businesses [Present]
      ->Commence with the production and distribution in mind with only a vague idea of the needs  of their intended market
	  ->Efforts of selling the product is like |"shooting a target in the dark"|
	  ->Often, these don't attract enough customers, resulting in low profits and the eventual closure of business

   *Marketing Myopia [Marketing Short Sightedness]
	-One limitation of production approach is when company manufactures only one product in large quantities and fails to identify the number of customers who are willing to buy them; company ends up with a surplus of products
	-Ford: After its initial success, the demand for its vehicles started to decline due to the |demand for variety|
		   Failed  to foresee the changes in the demand brought about by changes in the customers' preferences

 2. Product Orientation
	-Focuses on the product and its innovation to attract customers
	-Considered as a solution to the limitations of the production orientation
	-Ex. Apple initially released its iPhone in 2007, and over the years, Apple continued to innovate the iPhone with additional designs and features
	-Limitations:
		>Customers may consider the new features unnecessary and would therefore not be convinced to buy the product
		>Product is often improvised and manufactured without understanding the needs of customers and their willingness to spend on it
	*Could lead to marketing myopia if marketers are too focused on the product and not on the needs, wants, and expectations of the market

 3. Selling Orientation
	-Relies on the strength of the company's sales force in convincing the customers to buy the product even if they don't need it
	-Mastery in selling techniques or the use of aggressive selling tactics likely guarantees sales, although this is achieved through hard selling
	-Since this prioritizes sales, it pays little attention to the customers' actual need for the product, resulting in the business' failure
	-Some companies use this but with the caveat of having to deal with economical or practical consumers who avoid buying products they don't need

 4. Marketing Orientation
	-Customers' preferences - what they want, how much they are willing to pay, what form and feature they prefer, etc. - are prioritized
	-Company researches about the |target customers| [customers who would be served best by the company] and matches the result of their research with the |offering| [product/service] of the company
	-Known as the |customer centric approach|
	-Though more advantageous than the first 3, its implementation has drawbacks
	-If customers' needs and wants are satisfied:
		a. What happens to society and the environment affected by these marketing activities?
		b. Would the product/service still be offered if it harms the environment?
		c. Does the product/service contribute to the customers' quality of life?

 5. Social Marketing Orientation
	-Similar to marketing orientation except for that concern for society's well-being and the environment's sustainability is prioritized as much as the customer's preferences
	-Development of products that contribute to the quality of life and the environment is encouraged and often supported by cause-oriented groups
	-Also called |green marketing| and product is called |green product|

>Big Challenges:
 *Modern customers have become more knowledgeable and cautious buyers
 *They have become more empowered because of the ease of access to information brought by the Internet and technology
 *They can easily distinguish between brand names of products and services and don't associate a certain product/service with 1 particular brand
 *New generation of consumers is meticulous, bargains for the best value, and easily shift loyalty to other products
 *Prompted businesses to come up with new approaches to meet the needs of modern consumers; therefore, a marketing process was developed for businesses to adapt to the constantly changing world

>Marketing Process and the 4Ps<

*Marketing
 -Process that involves creating, distributing, and communicating goods, services, and ideas to facilitate a satisfying relationship with customers and develop and maintain favorable relationships with stakeholders in a dynamic setting

*Market Process
 -Implemented by identifying the basic marketing mix elements that determine the needs of customers as well as the expected benefits they can get from patronizing the product/service of the business

>4Ps of Marketing:
 1. Product
	-Marketing process starts with creating a product that satisfies the needs and preferences of customers
		a. What are the customers' preferences in terms of taste, color, texture, design, and size, among others?
		b. What features should be included in the design of the product?
		c. Does the product meet the needs and wants of the customers for them to be satisfied?

 2. Price
	-With the right product, finding the right price is another challenge
		a. What is the most affordable price for the customers? What is their capacity to pay?
		b. What features should be included in the design of the product?
		c. Does the product meet the needs and wants of the customers for them to be satisfied?

 3. Place
	-Once the price is determined, the next issue to address is the distribution or the place
		a. Where do customers prefer to buy the product?
		b. What location is sufficiently convenient to sell the product?
		c. Can the customers buy the product at the same time they need it?
	  >Various means a producer is able to deliver their products to consumers:
		*Physical retail stores:
			#Department Store
			#Company-owned stores situated in malls
			#Distributors
		*Virtual Retail Store

 4. Promotion
	-Determine the means of communicating the |product message|
		*Product Message - Message about the product or service that the company wants to communicate to its customers
						 - Sets the consumer's expectations for the product/service; this can be achieved through promos
		a. What should be told to the customers to get their attention and convince them that this product is for them?
		b. How can the product message be made more noticeable to the customers?
		c. How often should the product message be communicated?
		d. Is the message communicated properly?