UNIVERSITY OF CEBU (UC)

GRADUATE SCHOOL
Sanciangko St., Cebu City

REACTION PAPER IN
MARKETING MANAGEMENT (BM 207)

Masterand: Agnes C. Ampo Course: MBA

Chapter 1- Defining Marketing and the Marketing Process

Introduction

Hearing about the word “marketing”, we tend to think or associate it about

selling and advertising. These are the common views of marketing. However, those

are just a fraction of the whole process. Today, marketing must not be understood in

old sense of making a sale but in the new sense of satisfying customer needs. The

marketing plays an important role in promoting the business and helps achieving its

goals and objectives.

Topic Summary

What is really marketing? Marketing is a business function that basically deals

with customers. It is engaging customers and managing profitable customer

relationships. The two fold goal of marketing is first to attract the new customers by

promising superior value and second, to keep and grow current customers by

delivering value and satisfaction. Marketing is a social and managerial process by

which individuals and organizations obtain what they need and want through creating

and exchanging value with others. It involves building profitable, value-laden

exchange relationships with customers. Hence, it is a process by which companies

engage customers, build strong relationships, and create a customer value in order
to capture value from customers in return. This has marketing process. First step, is

understanding the marketplace and customer needs. Marketers need to understand

customer needs and wants and the marketplace they operate. There are five core

customer and marketplace concepts, the needs, wants and demands; market

offerings such as products, services and experiences; value and satisfaction and the

relationships and lastly the markets. Human needs are the felt deprivations includes

basic physical needs for clothing, warmth and safety, social needs for belonging and

affection, and individual needs for knowledge and self expression. Wants are the

form of human needs which are shaped by culture and individual personality.

Demands are the human needs and wants that is backed by buying power with

benefits that add up to the most value and satisfaction. Customer form expectations

about the value and satisfied customers buy again and tell others about their good

experiences, on the other hand dissatisfied customers often switch to competitors

and disparage the products to others. Exchange is the act of obtaining a desired

object from someone by offering something in return. Companies want to build

storing relationships by consistently delivering superior customer value. Market

offerings are some combination of products, services, information, or experiences

offered to market to satisfy a need or a want. Step 2 of the marketing process is

designing a customer value driven marketing strategy. To design a winning marketing

strategy, the marketing manager must answer two important questions which are

“What customers will server or what's our target market?” and “How can we serve

the customers best or what's our value preposition?”. In selecting customers to

serve, the markets will be divided in segments of customers (market segmentation)

and selecting its segments it will go after (target marketing). In choosing value

proposition, the company decides how it will serve the targeted market to customers,
how it will be differentiate and position itself in the market place. There are also five

alternative concepts under which the organization design and carry out their

marketing strategies: the production, product, selling, marketing and societal

marketing concepts. Step 3 is preparing an integrated marketing plan and programs.

Marketing program is a set of plan that builds customer relationship by transforming

the marketing strategy into action. It is consists of the firm's marketing mix. Marketing

mix is a set of marketing tools the firm uses to implement marketing strategy. They

are called the four P's of marketing which is product, price, place and promotion.

Step 4 is managing customer relationship and capturing customer value. Customer

relationship is the most important concept of modern marketing. It is overall process

of building and maintaining profitable customer relationship by delivering superior

customer value and satisfaction. It deals with all aspects of acquiring, engaging, and

growing customers. In customer relationship management, we need to consider the

customer-perceived value, customer satisfaction, customer relationship levels and

tool and customer engagement and today's digital and social media. Step 5 is

capturing value from customers. By creating superior customer value, the firm

creates satisfied customer who stays loyal and buy more. This, in turn means greater

long-run returns for the firm. In this step, yo need to consider creating customer

loyalty and retention, growing share of customer, building share of customer, building

customer equity and building the right relationships with the right customers. In

dealing with marketing it is also important to consider the changing marketing

landscape – digital and social media marketing and mobile marketing.

Recommendation

The report presentation was good. It helps that the reporter was asking her

co-masterands to read some of the texts presented to catch their attention and this
created class interaction. It would be helpful if the reporter could give plenty of real

life examples or situations to help us understand more the concepts presented.

Conclusion

It is then important to realize that marketing is essential process to the

success of the business. The company should dedicate specific staff and

departments for the purpose of marketing. This should work closely with other

departments and must focus on understanding and serving customers to achieve its

goals and objectives set. The business will find it hard to succeed if marketing occurs

only in the marketing department and does not involve everyone.