Module 10-Basics of marketing management 1

Marketing Management

Module 10-Basics of marketing management 2

Marketing The process of defining,

anticipating, creating, and fulfilling customer needs and wants at the right time, place, and price

Module 10-Basics of marketing management 3

Marketing management

Concerned with decisions and policies relating to product, price, promotion, place (distribution), and marketing research.

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Marketing mix Set of controllable marketing variables that

the firm blends to produce the response it wants in the target market

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The four (4) P’s of marketing

ProductGoods and services the

organization offers the market

PromotionActivities that communicate

the merits of the product and persuade the target market to buy it

Pricethe amount of money

customers must pay to obtain the product

Placeactivities that make the

product available to the target market

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The entire range of products / services being made available not only as physical units or items of service but also in terms of total satisfaction to the buyer through possession or use

Product line

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Product line (San Miguel Corporation)

Beer Pale Pilsen, Premium All-Malt Beer,

Super Dry, Cerveza Negra, Red Horse, Gold Eagle, Blue Ice, Texas

Non-alcoholic malt beverages San Miguel NAB, Cali Shandy, Cali 10,

Cali Ice, Bionade

Wines and spirits Ginebra San Miguel, Gordon’s London

Dry Gin, Oxford Distilled London Dry Gin, Anejo, Tondeña Manila Rum

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Product line (San Miguel Corporation)

Juice and juice drinksMagnolia Fruit Drinks,

Magnolia FunChum, Fresh ‘N Ripe, Zip Juice Drinks, Cordial Lime Juice

Bottled waterVIVA!, FIRST, AquaPeak

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Product line (San Miguel Corporation)

Basic meat products Magnolia Fresh Chicken, Monterey

Fresh Pork, Monterey Fresh Beef

Semi-processed meat products Magnolia Chicken Classics, Canned

Chicken, Burgers, Longanisa, Battered and Breaded Fried Products

Processed meats Campo Carne hotdogs, hams, cold

cuts, bacon, Valiente spiced ham, corned beef, vienna sausage, beef loaf

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Product line (San Miguel Corporation) Butter

Anchor Butter, Anchor Portion Packs, Magnolia Whipped Butter, Chef’s Palate Garlic Butter

Cheese Magnolia Cheddar, Cheesefood,

Quickmelt, Cheezee, Edam Cheeseball, Anchor Parmesan Cheese, Edam Cheese Loaf

Margarine Star Margarine, Dari Creme,

Buttercup, Baker’s Best, Golden Fresh

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Product line (San Miguel Corporation)

Glass packaging Bottles, molds, applied

color labels

Metal Crowns, metal caps, snap-

on, two-piece aluminum beverage cans

Paper packaging Corrugated cartons, mill

run sheets, partitions

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Product line (San Miguel Corporation)

• Plastics• Beverage and multi-

purpose crates, returnable / refillable PET bottles

• Composite packaging

• Bags and pouches, sachets, strip foil, high-barrier infant formula wrappers, polybags and films

Module 10-Basics of marketing management 13

Product line (San Miguel Corporation)

Paper packaging Corrugated cartons, mill run

sheets, partitions

Composite packaging Bags and pouches, sachets, strip

foil, high-barrier infant formula wrappers, polybags and films

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Basic product marketing strategy

• Product differentiation

• Market segmentation

• Planned model obsolescence

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The value of a product or service, quantified in peso (or any other currency) terms, which yield an optimum profit for the firm

Price

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Factors affecting pricing decisions

External factors Nature of market Demand Competitor’s prices

and offers Economy Government action /

policies

Internal factors Marketing objectives Marketing mix

strategy Costs (marketing and

production) Organization and

pricing

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Pricing approaches

Cost-based Buyer-based Competition-based

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Pricing strategies

Pricing innovative products

Product-mix pricing Price-adjustment

strategies

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Pricing innovative products Market skimming - Set

high prices initially to skim maximum revenue from the segments willing to pay the high price

Market penetration - Set low price to grab a portion of the market

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Product-mix pricing Product line - Develop a line of products

with different prices Optional product - Offer to sell optional or

accessory products along with main product By-product - Pricing of the main

product will be affected considering the storing and dealing costs (e.g. processed meat, petroleum)

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Product-mix pricing

Product-bundle - develop a line of products with different prices

Captive product - offer to sell optional or accessory products along with main product

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Price adjustment strategies

Discount pricing and allowances

Discriminatory pricing Psychological pricing Promotional pricing Geographical pricing

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Activities that communicate the merits of the product and persuade the target market to buy it

Activities undertaken to improve sales

Promotion

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Types of promotion

Personal selling Advertising Sales promotion /

sales development Public relations

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Corporate activities that make the product available to the target market

Place (distribution)

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Basic channels for marketing consumer goods

Producer direct to consumer Producer to retailer to consumer Producer to wholesaler to retailer to

consumer Producer to agent/distributor to wholesaler

to retailer to consumer

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Basic channels for marketing industrial goods Producer direct to industrial consumer Producer to branch office to industrial

consumer Producer to industrial distributor to

industrial consumer Producer to broker or sales agent to

industrial consumer

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The systematic and organized activity of gathering and analyzing market data to arrive at decisions that will affect the firm’s future

Market research

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Areas of marketing research Research on

product/services Research on

markets

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Marketing research methods Observation -

watching, measuring or counting without direct questioning

Survey - use of interviews and questionnaire

Experiment - actual tests of products or methods under controlled conditions

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Other forms of marketing Organization

marketing Person

marketing Social idea

marketing