1. What is Marketing? 🎯
Marketing is the process of creating, communicating, delivering, and exchanging offerings that have VALUE for customers.
Marketing is NOT just selling or advertising - it's about understanding customer needs and creating value to satisfy them profitably.
Needs vs Wants vs Demands
- Needs: Basic requirements (food, shelter, clothing)
- Wants: Specific satisfiers shaped by culture (Jollibee, iPhone)
- Demands: Wants backed by purchasing power
Marketing Concepts Evolution
- 1. Production Concept (availability)
- 2. Product Concept (quality)
- 3. Selling Concept (push sales)
- 4. Marketing Concept (customer needs)
- 5. Societal Concept (society welfare)
2. The Marketing Mix - 4Ps 🛍️
Product + Price + Place + Promotion
The controllable elements that create the marketing strategy
1. Product 📦
What you sell - goods, services, or ideas
- • Features and benefits
- • Quality and design
- • Branding and packaging
- • Product life cycle
- • Warranties and services
2. Price 💰
What customers pay for value
- • List price and discounts
- • Payment terms
- • Credit options
- • Price vs perceived value
- • Competitive pricing
3. Place (Distribution) 📍
How product reaches customer
- • Distribution channels
- • Location and coverage
- • Inventory management
- • Logistics and transportation
- • Online vs physical stores
4. Promotion 📣
How you communicate value
- • Advertising
- • Sales promotion
- • Personal selling
- • Public relations
- • Social media marketing
3. Market Segmentation, Targeting, and Positioning (STP) 🎯
STP is the strategic approach to identify and reach the most valuable customers.
S - Segmentation
Dividing the market into distinct groups:
Geographic
Region, city size, climate
Demographic
Age, gender, income
Psychographic
Lifestyle, values, personality
Behavioral
Usage, loyalty, benefits
T - Targeting
Selecting which segments to serve:
- • Undifferentiated: Same marketing for all (mass marketing)
- • Differentiated: Different marketing for different segments
- • Concentrated/Niche: Focus on one specific segment
- • Micromarketing: Tailored to individuals
P - Positioning
Creating a distinct image in customers' minds:
Positioning Statement: For [target segment], [brand] is the [category] that [point of difference] because [reason to believe].
Example: "For busy professionals, Jollibee delivers fast, delicious Filipino comfort food because of our efficient service and authentic recipes."
4. Consumer Behavior 🧠
Understanding WHY consumers make purchasing decisions.
Consumer Decision-Making Process:
Factors Influencing Consumer Behavior
- • Cultural: Culture, subculture, social class
- • Social: Family, reference groups, roles
- • Personal: Age, occupation, lifestyle
- • Psychological: Motivation, perception, beliefs
Types of Buying Behavior
- • Complex: High involvement, significant differences
- • Dissonance-reducing: High involvement, few differences
- • Habitual: Low involvement, few differences
- • Variety-seeking: Low involvement, significant differences
5. Product Life Cycle (PLC) 📈
Every product goes through stages from birth to decline.
| Stage | Sales | Profits | Marketing Focus |
|---|---|---|---|
| Introduction | Low | Negative/Low | Awareness, trial |
| Growth | Rapid increase | Rising | Market share, differentiation |
| Maturity | Peak/Stable | Peak then decline | Defend share, loyalty |
| Decline | Declining | Declining | Harvest or divest |
6. Pricing Strategies 💵
Different approaches to setting prices based on objectives.
New Product Pricing
- Skimming: High initial price, lower over time (iPhones)
- Penetration: Low price to gain market share fast
Product Mix Pricing
- Bundle: Multiple products at lower combined price
- Optional: Base product + optional accessories
Psychological Pricing
- Odd pricing: ₱99.99 instead of ₱100
- Prestige: High price = quality perception
Promotional Pricing
- Loss leader: Below cost to attract customers
- Special event: Holiday sales, clearance
7. Digital Marketing and Social Media 📱
Modern marketing channels that reach customers where they spend time.
Digital Marketing Channels:
Search Engine
SEO, Google Ads
Social Media
Facebook, TikTok, Instagram
Email Marketing
Newsletters, promotions
Content Marketing
Blogs, videos, podcasts
Influencer Marketing
Vloggers, celebrities
Affiliate Marketing
Commission-based referrals
Key Digital Marketing Metrics:
- • Reach: Number of people who see your content
- • Engagement: Likes, comments, shares
- • Conversion Rate: % who take desired action
- • ROI: Return on marketing investment
📝 Practice Questions
1. What are the 4Ps of the Marketing Mix?
Show Answer
Product, Price, Place, and Promotion
2. Which pricing strategy starts with a high price and lowers it over time?
Show Answer
Price Skimming - used for new, innovative products to maximize profit from early adopters
3. What stage of the Product Life Cycle has peak sales but declining profits?
Show Answer
Maturity Stage - sales are stable/peak, but profits decline due to competition
4. What does STP stand for in marketing strategy?
Show Answer
Segmentation, Targeting, and Positioning
💡 Marketing Exam Tips
- ✓ Memorize 4Ps: Product, Price, Place, Promotion
- ✓ Know STP: Segmentation (divide) → Targeting (choose) → Positioning (differentiate)
- ✓ PLC stages: Introduction → Growth → Maturity → Decline
- ✓ Needs vs Wants: Needs are basic; Wants are shaped by culture
- ✓ Skimming vs Penetration: High initial vs Low initial pricing
- ✓ Consumer decision process: 5 stages from need recognition to post-purchase