The Basics of Marketing

• In the late 1800s, with the beginning of Industrial Revolution, companies were production-oriented.
• Companies shifted to being selling-oriented from the 1920's until after

  World War II. They believed it was necessary to push their products by advertising and selling.
• Marketing is putting the right product at the right place and time and price
• Marketing is how an organization or an individual sells its product or services.

  • this definition relegated marketing only to finding and exploiting a market of buyers for products and services
• American Marketing Association, the leading organization in the U.S. representing the academic side of marketing, defines Marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
• UK Chartered Institute of Marketing formally defined marketing as the “management process responsible for identifying, anticipating and satisfying customer requirements profitably
• MARKETING

  • the delivery of customer satisfaction at a profit
  • the connection between people and products, customers and companies
• Chief Sales Executive

  • point person or head of the marketing department
  • expected to not only be equipped and be familiar with the industry but also with the specific company he is dealing with
• Formulation of policies

  • It is the sales executive's job not only to observe the different functions involved in marketing such as distribution, price, credit terms and service, rather it is his responsibility to improve these functions through the formulation of policies
• Interpretation of sales policies

  • It is also the responsibility of the chief sales executive to thoroughly discuss and elaborate each policy down through the several organization levels of the division.
• Administration of sales activities

  • The chief sales executive is also expected to promote the coordination of all the sales activities, while seeing to it that the customers receive only the best possible service and the company receives maximum profit
  • The chief sales executive is not tasked to control or restrain the flow of activities –his main objective is only to assist.
• Line organization

  • Also known as the simplest type of sales organization, line organization is characterized by the presence of a liaison relationship between the sales manager and other divisions
  • The manager assumes responsibility for activities such as sales promotion, advertising, market investigations, and contact with selected customers.
  • The manager can also coordinate the work of salesmen through his assistants
• Divided by regions

  • Distinct for the presence of branches per region which are each in turn headed by a branch manager, this type of sales organization is ideal as the company expands in its geographic coverage as it facilitates in the speed and effectiveness of service to customers and to supervise and assist salesmen of the region
• Divided by products

  • This type of sales organization assigns a sales manager to a single product line
  • follows the theory that more productive results would be obtained if a sales manager specializes in the production of only one distinct product instead of assuming responsibility for several product lines.
  • appropriate for: complex equipment, products according to customer specifications, highly diversified lines for distinctly different markets
• Customer Type Organization

  • companies group their customer by types with the members of each particular type having similar characteristics and requirements.
  • Its advantage is that the marketing strategy is tailored to the unique needs of the groups
  • Disadvantage is that it requires double effort
• Market Functions

  • Market Research
  • Planning for Sales
  • Advertising and Promotion
  • Selling
  • Inquiries and orders
  • Servicing
• Market Research

  • An enterprise needs to research on the product that they will produce, the demand for the product, and the location where it can be sold the most in order to reduce risk
  • The expected output of this research is a sales estimate which can help in the decision-making of the enterprise.
• Planning for Sales

  • Having a sales plan can help avoid cash flow problems and manage effectively the production of the company. It includes market research, historical sales data, and analyses of market surveys and trends
  • This can help predict the problems and opportunities a firm can encounter
  • The amount of money that may come in with respect to cost production and number of products produced must be always considered.
• Advertising and Promotion

  • important to make the customers be familiar with the company and the products and services it offers.
  • These require creative and one of a kind idea to make unique and better advertisement and promotion strategies than the competitors
• Advertisements

  • any paid form of non-personal presentation of products namely TV and radio ads, fliers and social media posts
  • are used for large-scale advertising and are very expressive. This can help reach out to people from different parts of the country but it could be very costly and it is only a one-way communication
• Promotions

  • short-term incentives to encourage customers to buy or avail of a product or service
  • can get your market's attention easily and can lead to quick purchase of the product.
• Selling

  • requires direct conversation or contact with the customer
  • Personal selling is greatly used by firms in order to make sales and to communicate and build relationships with customers
  • The distribution channel of selling is: manufacturers to wholesalers, wholesalers to retailers and retailers to customers
• Inquiries and orders

  • can be done through different means of communication like text message, calls, and e-mail.
  • Faster transaction between customer and the company is one of its advantages.
• Sales correspondents

  • a group of individuals assigned to answer customer inquiries
  • must be familiar with the products manufactured and the sales policies of the company in order to deal intelligently with the inquiries that they receive
• Servicing

  • The selling function already includes service
  • necessary for maintenance purposes
  • done as protection from complaints and dissatisfaction from the customers and to build closer relationship with the customers
• Business Principle

  • simply states that the customers essentially do not purchase products, but rather they purchase the certain benefits they can obtain from these products
• Mission

  • the source of the light of an organization
  • provides a long-term vision for the business but has to be translated into operational terms for effective management
• Objectives

  • activities that are essential in the implementation of the company's aim
  • can be the usual day-to-day activities of a manufacturing company which results to the intention of achieving a purpose
• Aims

  • supposed to be the purpose or goals of a company that usually do not change over a long period of time
• Mission statement

  • written declaration of an organization that defines its purpose that normally remains unchanged over time
• Characteristics of a Mission Statement

  • Long time scale
  • Definition of the business scope
  • Customer-oriented perspective
  • Must inspire and motivate
  • Realistic
• Long time scale

  • Any business should always see itself beyond the current marketing capability. They should keep on improving their current marketing strategy and also their goals for continuous profitability
• Definition of the business scope

  • businesses should always find a way to differentiate their business from the competition
  • Either a company is good or is not noticeable at all
• Customer-oriented perspective

  • The mission must always be defined from the customer's viewpoint.
  • Just as the laity is the bloodline of the church, the customers are to a business organization.
• Must inspire and motivate

  • A company would be more successful if it also has good relationship with its customers and employees aside from having good products to offer.
• Realistic

  • A firm must be mindful of its strength and weaknesses – knowing their distinctive capabilities and knowing that resources are limited.
• Business planning helps a company execute its aims and objectives through proper conceptualizing, formulating, and implementing of ideas
• Five Stages of Business Planning Process

  1. Concept Development
  2. Research
  3. Strategy Formulation
  4. Strategy Preparation
  5. Strategy Review and Implementation
• Concept Development

  • deals with the formulation of business ideas or ways one can offer a new or improved product and services by filling a current unsatisfied customer needs considering the availability and location of market.
• Research

  • More research is done to add to the strength of the plan and to determine whether it is achievable or not.
  • the stage to know the profitability and to know how much cost would be needed in starting the business.