POM Lesson 1

• The activity, set of institutions, and process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
• The goal of marketing


  Not confined to simply making a sale, but about satisfying the customers' needs and wants
• Theodore Levitt: 'The ultimate purpose of a business is to "find and keep customers."'
• Marketing helps in satisfying the needs of customers and maintaining their patronage and loyalty
• The definition of marketing has included and benefited non-profit institutions like education and health care providers
• The responsibility of a business goes beyond the survival of the firm; the betterment of society should also be considered
• The production and selling of goods and services are the main functions of marketing in most organizations
• Utility


  The power of a good or service to satisfy a particular need or want of a consumer. It also refers to the benefit or value that consumers derive from acquiring and using a good or service.
• Form Utility


  The conversion of raw materials into products that meet the preferences of consumers, so they do not have to create their desired products themselves
• Form Utility


  • A clothing company like Bench or Levi's uses fabric, buttons, zippers, and other accessories to produce garments so the consumers need not to assemble the materials
• Task Utility


  Offering services that consumers may not be capable of doing or may not like to do themselves
• Task Utility


  • A woman going to a salon to get a haircut, a man contacting a professional plumber to fix the faucet, a mother bringing clothes to a laundry shop
• Place Utility


  The availability of the product or service at accessible locations
• Place Utility


  • Delivery service in restaurants, online shopping, paying utilities online
• Time Utility


  The satisfaction derived by customers in availing of products or services on time
• Time Utility


  • Restaurants promising prompt delivery, banks improving the processing of loans
• Possession Utility


  Ensuring that consumers have full possession of the product or service at the right time
• Possession Utility


  • Fast payment processing and delivery, offering credit facilities, easy transfer of ownership
• Marketing Organization


  The department in a corporation that ensures the smooth flow of marketing plans, policies, and programs
• The Cs of marketing

  • Consumer content
  • Company capabilities
  • Communication
  • Competition
  • Cross-functional contact
  • Community content
• The exchange process has changed dramatically in recent years as consumers are now able to study a wide array of choices before they make the actual purchase
• Consumers access the Internet to obtain information about products and services they would like to avail of
• Marketers should be updated on their customers' behaviors, values, interests, and other factors that influence their purchases
• A consumer-oriented firm works toward satisfying customers' needs before creating products or services
• Company Capabilities


  To be on par with its competitors, marketing organizations need to strengthen their capabilities in production and operations to develop and produce goods that will meet consumer needs
• The success of a product depends largely on the collaboration of different factors, such as strong research and development and production and operations, which will satisfy the consumer's needs
• Communication


  A marketing organization must have a positive, long-lasting relationship with its customers because they constantly look for cues provided by the organization as they make their purchase decisions
• A negative brand image results in low sales
• Competition


  The real challenge for any organization is to face its strongest competitor head-on. It should know the competitor's strengths and weaknesses and determine the best way to respond.
• Many marketing organizations fail to distinguish the real meaning of competition when they watch out only for similar companies. For example, if Jollibee competed only against McDonald's and other fast-food restaurants offering burgers (e.g. Burger King, Wendy's), it would limit its scope of competitive strategies.
• Cross-Functional Contact


  A marketing organization cannot work alone without the support and assistance of other departments
• Cross-Functional Contact


  • An effective and creative advertising team cannot assure good sales without an equally reliable sales force
• Community Contact


  A marketing organization is updated with local, international, and community news. It has constant with different agencies and organizations within its surroundings. It also personifies corporate social responsibility by integrating sustainability and ethics in conducting business. The organization also acknowledges the contributions of its stakeholders.
• Production Concept


  It starts with the production process and ensures that the firm produces high-quality goods. Then the next task is to find people who will buy the products.
• The idea of this approach is that consumers favor companies that produce high-quality yet affordable goods, so it is necessary to maintain efficiency in production and distribution.
• This was prevailing practice in Western Europe and North America during the early 20th century and was exemplified by Ford's production process.
• Product Concept


  This approach believes that a product should be of high quality, excellent performance, and innovative features.
• Product Concept


  • Cellular phones and clothing companies use product concepts to continuously create and develop the features of their products to attract customers. Cars manufacturers develop new car makes and features from time to time.
• Sales Concept


  Production techniques became more elaborate and sophisticated in the 1950s. High-quality products and services continue to be provided but companies have difficulty selling them. Buyers were unwilling to purchase goods and avail of services that they thought were not essential, especially when companies were not exerting extra effort to promote these goods and services.
• This convinced companies to employ a sales force to persuade customers to buy.