REVIEWER FOR BUSINESS MARKETING

MODULE 1 ; CONCEPT OF MARKETING PRINCIPLES, GOALS AND APPROACHES

American Marketing Association or AMA, “Marketing is 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

Dr. Philip Kotler, “A social and managerial process whereby individuals and groups obtain what they need and want
through creating and exchanging products and value with others.

Goal: Attract new customer by promising superior value and keep and grow current customers by delivering satisfaction

CONCEPT OF MARKETING ( CUSTOMER NEEDS AND WANTS )

FIGURE 2: Concept of Marketing

Need is one important component in the marketing of products. It is the consumer’s desire for a product or service.

Food can be processed in different tastes; styles and menus that shall meet the human craving and satisfaction.

Clothing could be designed into different styles depending on people’s taste and social values.

Shelters are constructed differently depending on the capacity of the buyer to finance his home.

Wants are higher-level human needs as they appeal more to the emotions

CONCEPTS OF MARKETING

1. Marketing must be Customer Oriented

The planning and operation must be directed towards customer orientation.
2. Marketing must be Coordinated Activities
Coordination activities must start in the product planning process, the process.
3. Marketing must be able to achieve the Performance Target Goals and Objectives
Customer-oriented and coordinated marketing aims to achieve its profit, objectives and goals. These goals and
objectives hinge on the increase in sales volume and customer’s patronage.
FACTORS FOR DEVELOPING MARKETING CONCEPTS
1. Capturing Marketing Insights
The overall direction must focus on its vision and mission. The organizational goals and objectives must b e directed
towards the creation of value to its customers.
2. Effective Financial Management System
. Financing the marketing program will develop effective sales program that will bring in sustainable profitability.
3. The Value of Human Resources
All business activities need human resources in their operation. The employees must be committed in the
production of quality products and the delivery of quality service.
4. The Production Process
The process must conform to standards in terms of product quality.
5. The Presence of Competitor
The marketing of products becomes interesting with the presence of competitors.
Traditional concept marketing is a marketing strategy a company uses to determine if it can produce a viable product
consumer want or need,

SEVERAL DISTINCT TRADITIONAL APPROACHES:

1. Production concept focuses on the internal potentials of the company and not based on the desires and needs
of the market.
2. Marketing concept a philosophy which states that organization must try hard to find out and satisfy the needs
and wants of consumers while at the same time accomplishing the organizational goals.
3. Sales concept refers to the idea that people will buy more goods and services through personal selling and
advertising done aggressively to push them in the market.
4. Relationship concept/marketing an approach that centers on maintaining and improving value-added long-term
relationships with current customers, distributors, dealers and suppliers.
5. Societal Marketing Concept views that organizations must satisfy the needs of consumers in a manner that
gives for society’s benefit
Inbound marketing is a very powerful contemporary marketing strategy that focuses on different tactics to draw
consumers in and convince them to buy goods. It is one the result-oriented types of marketing that uses content to drive
results.

Green marketing refers to the process of selling products and/or services based on their environmental benefits. Company
are selling products and/or services by first promoting its benefit that is environmentally friendly or produced in an
environmentally friendly way.
Contemporary marketing aims for customers’ satisfaction in order to build a relationship with them. Therefore, the
types of marketing strategies under contemporary marketing are concerned with the needs of customers

MODULE 2 ; RELATIONSHIP MARKETING

According to Gilaninia et al (2011) Relationship marketing involves creating, maintaining and enhancing strong
relationships with customers and other stakeholders

Forbes.com defined Relationship marketing is a strategy designed for customer loyalty, interaction, and long-term
engagement to be fostered.

According to Serrano, Relationship Marketing includes activities aimed at developing and managing trusting and long-
term relationships with larger customers. (Customer profile, buying patterns and history of contacts are kept in a sales
database)

Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and
long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales

DIFFERENT LEVELS OF RELATIONSHIP

1. BASIC
The company salesperson sells the product but does not follow up in any way.
2. REACTIVE
The salesperson sells the product and encourages the customer to call whenever he or she has any questions or
problems.
 3. ACCOUNTABLE
The salesperson phones the customer a short time after the sale to check whether the product is meeting the
customer’s expectations. The salesperson also solicits from the customer any product improvement suggestions
and any specific disappointments. This information helps the company continuously to improve its offering.
4. PROACTIVE
The salesperson or others in the company phone the customer from time to time with suggestions about
improved product use or helpful new products.
5. PARTNERSHIP
The company works continuously with the customer and with other customers to discover ways to deliver
better value

CHARACTERISTICS OF RELATIONSHIP MARKETING:

1. It focuses on the long-term rather than the short-term.
2. It focuses on partners and customers rather than on the company’s products.
3. It puts more emphasis on customer retention and growth than on customer acquisition.
4. It relies on cross-functional teams rather than on departmental-level work.
5. It relies more on listening and learning than on talking.

BENEFITS IN DEVELOPING AND IMPLEMENTING CUSTOMER RELATIONSHIP

1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation

BENEFITS OF RELATIONSHIP MARKETING

In the business world, retaining customers has a lesser cost at least eight times compared to acquiring new ones. Thus,
this marketing capitalizes on the same fact and is beneficial to the company in several ways.

A. Understanding customer characteristics - the company can segregate its customers into groups based on their
characteristics like purchasing power, frequency and volume of sale transactions.
B. Delivery and meeting expectations - if the company knows what its customers’ needs are, it will help reduce
wastage due to trial and error methods.
C. Repeat Business - Sellers should maintain good attitude to the buyers. By doing this, buyers will feel that they do
not need to switch sellers.
D. Prevents negative transition - Trust and loyalty go hand in hand and it is super beneficial for all business. It will
help prevent customers from turning to competitors.
E. Word-of-mouth marketing
a) Increasing customer base - satisfied existing customer is 100% more likely to recommend a
product/service to a prospective customer.
F. Reduced marketing cost - benefits also include lesser marketing costs and more value creation.
G. Identification with the company - the benefits are reaped both by the company and the customers. It helps
customers identify more with the company.
H. Product Market Expansion - the company’s employees must be ready to deliver beyond the company’s
boundaries on customer demand

LESSON 3 ; CUSTOMER VALUE

Customer Value is the relationship between benefits and the costs including money, stress, and time to sacrifice that is
necessary to get those benefits. Or simply stated in a mathematical equation: Benefits – Cost = Customer Value.
CUSTOMER RELATIONSHIP MARKETING
i. Is a business process in which client releationships ustomer loyalty and brand value

4 waves relationship
1. One to One Marketing
- Is direct marketing in which salesperson directly communicate with
somebody
2. Datebase Marketing
- Collecting customer data likes names,emails,address
3. Integrated Marketing
- Is strategy for delivering a unified message across all market channels
4. Interactive Marketing
- That focuses on one to one interaction and customer communication
example travel offers promo
9 Relationship Marketing Srategies and Tools
a. Networking
b. Cherish Each Customer
c. Listen to your Customer
d. Build brand identity
e. Give your customer free information
f. Loyalty Reward
g. Communicate Often
h. Special Events
i. Face to Face time

Customer service is the act of taking care of the customer's needs by providing and delivering professional, helpful,
high quality service and assistance before, during, and after the customer's requirements are met.

SOME CHARACTERISTICS OF GOOD CUSTOMER SERVICE:

Promptness:
Promises for delivery of products must be on time. Delays and cancellations of products should be avoided.
Politeness:
Politeness is almost a lost art. Saying 'hello,' 'good afternoon,' 'sir', and 'thank you very much' are a part of good
customer service. For any business, using good manners is appropriate whether the customer makes a purchase
or not.

Professionalism:
All customers should be treated professionally, which means the use of competence or skill expected of the
professional. Professionalism shows the customer they're cared for.
Personalization:
Using the customer's name is very effective in producing loyalty. Customers like the idea that whom they do
business with knows them on a personal level.

LESSON 4 ; SRATEGIC AND MARKETING PLANNING

“The marketing strategy is your approach to achieving your competitive advantage — the marketing plan contains the activities that
will get you there.”-
Marketing Strategy - Shaped by your business strategy, your marketing strategy is your purpose; it's the offering you
deliver, how you will deliver it and why your marketing efforts will help you achieve your company’s mission and
strategic goals.

Marketing Plan - Driven by your strategy, your marketing plan is the execution; the roadmap of tactical marketing
efforts that help you achieve your marketing goals.

Strategic Planning is a broad process that can address the entire business, or a portion of the business such as marketing
while Marketing planning is written based from strategic plans.
Companies usually prepare annual plans, long-range plans and strategic plans:
1. The annual plan is a short-term plan that describes the current situation, company objectives, and the strategy
for the year, the action program, budgets and controls.

2. The long-range plan describes the primary factors and forces affecting the organization during the next several
years. It includes the long-term objectives, the main marketing strategies used to attain them, and the resources
required. This long-range plan is reviewed and updated each year so [hat the company always has a current long-
range plan. The company's annual and long-range plans deal with current businesses and how to keep them going.

3. The strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing
environment. It is the process of developing and maintaining a strategic fit between the organization's goals and
capabilities and its changing marketing opportunities.
Tactical marketing often involves generating leads, building websites, placing ads, and following up. It includes
advertising, sales promotions, and other activities that directly support your strategic marketing plan

THE PLANNING PROCESS

Putting plans into action involves four stages: analysis, planning, implementation and control. Figure 1 shows the
relationship between these functions that are common to strategic planning, marketing planning or the planning for any
other function.
1. ANALYSIS
Planning begins with a complete analysis of the company's situation. The company must analyze its environment
to find attractive opportunities and to avoid environmental threats. It must analyze company strengths and
weaknesses, as well as current and possible marketing actions, to determine which opportunities it can best
pursue. Analysis feeds information and other inputs to each of the other stages.

2. PLANNING
Through strategic planning, the company decides what it wants to do with each business unit. Marketing planning
involves deciding marketing strategies that will help the company attain its overall strategic objectives.
Marketing, product or brand plans are at the center of this.

3. IMPLEMENTATION
Turns strategic plans into actions that will achieve the company's objectives. People in the organization that work
with others both inside and outside the company implement marketing plans.

4. CONTROL
Control consists of measuring and evaluating the results of plans and activities and taking corrective action to make
sure objectives are being achieved. Analysis provides information and evaluations needed for all the other activities

LESSON 5 ; MARKETING ENVIRONMENT ( MACRO MICRO )

- MIX BETWEEN THE INTERNAL AND EXTERNAL FORCES

- ABIILITY TO BUILD AND MAINTAIN SUCCESSFUL RELATIONSHIPS WITH
TARGET CUSTOMERS
MACRO ENVIROMENT

a. General environment within the economy

MACRO FACTORS

a. Demographic Factors – market segment including country region age ethnicity

b. Economic Factors – impact both the organizations production and customer decision making process
c. Natural / Physical Factors – renewable resources and non renewable resources
Renewable ; hydropower biomass geothermal wind
Non renewable ; oil coal nuclear natural gas
d. Technological Factors – impact the smooth running of the business
e. Political and Legal Forces – marketing decisions should always take into account political or legal developments
f. Social and Cultural Forces – harmful to society should be eleminated

MICRO ENVIRONMENT

a. Direct contact with the business organization and can affect the routine activities of business

MICRO FACTORS

a. Suppliers – holds the power when they are only or the largest supplier
b. Resellers – taken to market by 3rd party reseller
c. Customer – their reason for buying the product
d. The Competition – who sell the same or similar products and services
e. The General Public – duty to satisfy the public

LESSON 6 ; CUSTOMER BUYING BEHAVIOUR

- REFERS TO THE ACTION TAKEN [ BOTH ON OR OFFLINE] BY CONSUMER

BEFORE BUYING PRODUCTS OR SERVICES

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR

a. Cultural Factors – a group of people / ideologies/beliefs

1. Culture / Sub Culture / Social Class
b. Social Factors – imitate other humans
1. Family / Reference Group / Roles and Status
c. Personal Factors - personal to the consumer/ differ from person to person
1. Age / Income / Occupation / Lifestyle
d. Psychological Factors – difficult to measure but are powerful enough
1. Motivation / Perception / Learning / Attitudes and Beliefs
e. Economic Factors – buying habits and decisions greatly depend on the economic situation
1. Personal Income / Family Income / Consumer Credit / Liquid Assets

TYPES OF BUYERS

1. ANALYTICAL BUYER – are motivated by logic and information

/ look at all data on competing brands or products

2. AMIABLE BUYER – worried about how their choices will affect the people around them
3. DRIVER BUYER – motivated by power and respect , recognize them right away feel empowered
 4. EXPRESSIVE BUYER – recognication and approval

BUYING PROCESS

- RECOGNITION NEEDS
- INFORMATION SEARCH
- EVALUATION OF ALTERNATIVES
- PURCHASE DECISION
- POST PURCHASE EVALUATION