SERVICE MARKETING

2nd Semester 2024-2025 (Feb-Jun 2024)

ARNEL P. RINGOR, PhD
COLLEGE OF BUSINESS ENTREPRENEURSHIP AND ACCOUNTANCY

Part 1. What Marketing is and what Marketing is NOT.

Definition

A classic definition of Marketing according to Robert D. Blackwell (Smart Things to Know by John
Mariotti, 2000) is that “marketing is the process of understanding customer’s needs, wants and
demand by communicating it entirely to the organization which must produce products and
services which must produce products and services to meet those needs, and wants and demand
to whom they are intended so they will desire them and buy them.

John Mariotti gave a short definition of marketing: “Marketing is the delivery of customers at a
profit.”

Philip Kotler, the Father of Modern Marketing explained that, “Philip Kotler defines marketing as
“the science and art of exploring, creating, and delivering value to satisfy the needs of a target
market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and
quantifies the size of the identified market and the profit potential.

What is the definition of marketing according to the AMA?

The American Marketing Association (AMA) 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."
Marketing is the process through which economy is integrated into society to serve human
needs ([2] Drucker, 1958).

In 1997, Steve Jobs addressed his thousands of employees and said, "Marketing is
about values. This is a very complicated world; it's a clamorous world. And we won't get
the chance to get people to remember much about us. No company is. So we must be
clear on what we want them to know about us."
Some points to consider of What Marketing is and What Marketing is not.

What Marketing is What Marketing is NOT

Marketing is about demand creation. It doesn’t Is NOT Sales. Sales is the actual presentation
mean that marketing never sells anything. It of products by Marketing efforts.
sells ideas, concepts more than specific
tangible products.
Marketing collaborates the deployment of the Is NOT Logistics. Logistic is the deployment of
needed resources. It employs strategies in the need tools and resources to achieve
obtaining and the utilization of resources with organizational objectives.
the appropriate business processes.
Marketing explores and utilizes market Is not Research and Development. Research
research and product development to ensure and Development (R&D) is when businesses
innovation and necessary improvement to gather knowledge to create new products or
cope with the evolving environment. discover new ways to improve their existing
products and services. Larger companies
may have their own research and
development team that will test and refine
products or processes before commercial use
SERVICE MARKETING
2nd Semester 2024-2025 (Feb-Jun 2024)
ARNEL P. RINGOR, PhD
COLLEGE OF BUSINESS ENTREPRENEURSHIP AND ACCOUNTANCY

Figure 1. Core Concept of Marketing

Quality

Figure 2. Core Concepts of Marketing

Another illustration on the Core Concepts of Marketing by Philip Kotler

SERVICE MARKETING
2nd Semester 2024-2025 (Feb-Jun 2024)
ARNEL P. RINGOR, PhD
COLLEGE OF BUSINESS ENTREPRENEURSHIP AND ACCOUNTANCY

Sales and Marketing Authorities:

1. Philip Kotler - Often referred to as the "father of modern marketing,"

Kotler's work has shaped marketing principles and practices globally.
2. John Mariotti- is president and founder of the Enterprise Group, a coalition of
executive advisors. As the former president of Rubbermaid Office Products Group, he
led a multinational group of nine divisions in North America, Europe, Asia, and
Australia. He's also a former management consultant and contributing editor for
Industry Week magazine.
3. Seth Godin - A prolific author and speaker, Godin is known for his insights
on permission marketing, tribes, and the importance of storytelling in
branding.
4. Gary Vaynerchuk - An entrepreneur and social media expert, Gary Vee
emphasizes the importance of digital marketing and personal branding.
5. Neil Patel - A digital marketing expert, Patel is known for his work in SEO
and content marketing, along with his educational resources for marketers.
6. Ann Handley - A pioneer in digital marketing and content strategy,
Handley is a best-selling author and the Chief Content Officer at
MarketingProfs.
7. Rand Fishkin - Co-founder of Moz and SparkToro, Fishkin is a leading
figure in SEO and marketing analytics.
8. Jay Baer - A marketing consultant and author, Baer specializes in customer
service and content marketing, emphasizing the importance of customer
experience.
9. Brian Halligan - Co-founder and CEO of HubSpot, Halligan is known for
his role in developing inbound marketing strategies.
10. Shama Hyder - A digital marketing strategist and author, Hyder focuses on
the intersection of technology and marketing.

[Link]

Needs refer to the basic human requirements for survival and well-being. These can include necessities like food, shelter, clothing, and
healthcare. In a marketing context, identifying and understanding customer needs is crucial for creating products or services that fulfill those
requirements.

2. Want

Wants are desires or preferences for specific products or services that go beyond basic needs. While needs are essential, wants are driven
by individual preferences and can vary widely from person to person. Successful marketers tap into these wants to create appealing offers.

3. Demands

Demands arise when wants are supported by the ability and willingness to pay for a product or service. In other words, demand is the
combination of desire and purchasing power. Marketers strive to stimulate and meet customer demands through effective strategies.

4. Products

Products refer to tangible items or intangible services that fulfill customer needs or wants. They are at the core of marketing efforts.
Understanding the features, benefits, and unique selling propositions of products is vital for marketing success.

5. Utility, Costs & Satisfaction

SERVICE MARKETING
2nd Semester 2024-2025 (Feb-Jun 2024)
ARNEL P. RINGOR, PhD
COLLEGE OF BUSINESS ENTREPRENEURSHIP AND ACCOUNTANCY
Utility represents the value that consumers derive from a product or service. It can be categorized into four types: form (physical
characteristics), time (availability when needed), place (availability where needed), and possession (ease of ownership).

• Costs encompass the monetary and non-monetary sacrifices made to acquire a product or service. These can include the
purchase price, time spent, and effort expended. Effective marketing aims to maximize utility while minimizing costs.

• Satisfaction reflects the level of contentment or pleasure a customer experiences after using a product or service. Satisfied
customers are more likely to become loyal and engage in repeat business.

6. Exchange, Transaction & Transfer

• Exchange is the act of obtaining a desired product or service by offering something of value in return. This mutual benefit
is at the core of all marketing activities.

• Transaction refers to the actual process of exchanging products or services for money or something of value.
Transactions can be one-time purchases or part of an ongoing relationship.

• Transfer involves the transfer of ownership or rights related to a product or service from the seller to the buyer. This
transfer is a key element of any transaction.

7. Relationship & Network

• Relationship Marketing emphasizes building and maintaining long-term relationships with customers. It recognizes that
repeat customers often contribute more to a company's revenue than new ones.

• Networks represent the connections between individuals, organizations, and entities within the business environment.
Strong networks can provide valuable resources, information, and opportunities.

8. Market , Marketing & Marketer

• market is a group of potential buyers who share common needs or wants and have the ability and willingness to make
purchases. Markets can be segmented based on various criteria such as demographics, psychographics, or behavior.
Effective marketing involves identifying target markets and tailoring strategies to meet their specific needs.

• Marketing is the process of planning, executing, and managing activities that create, communicate, deliver, and exchange
value to fulfill customer needs and achieve organizational goals. It encompasses a wide range of activities, from market
research and product development to advertising and customer relationship management.

• Marketer refers to the entity (individual or organization) responsible for creating, promoting, and selling products or
services. Marketers play a crucial role in understanding customer needs and delivering value.

9. Prospect

Prospect represents a potential customer who has shown interest in a product or service but has not yet made a purchase. Marketers
engage with prospects through various marketing channels to convert them into customers.

Understanding these core marketing concepts is essential for businesses and marketers to navigate the complex landscape of consumer
behavior, competition, and market dynamics. Successful marketing strategies are built on a foundation of meeting customer needs and
creating value.

Services have five essential characteristics.

• Lack of ownership.
• Intangibility.
• Inseparability.
• Perishability.
• Heterogeneity or Variability
SERVICE MARKETING
2nd Semester 2024-2025 (Feb-Jun 2024)
ARNEL P. RINGOR, PhD
COLLEGE OF BUSINESS ENTREPRENEURSHIP AND ACCOUNTANCY

Marketing Mixes
[Link]

The marketing mix is defined by the use of a marketing tool that combines a
number of components in order to become harden and solidify a product’s brand
and to help in selling the product or service. Product based companies have to
come up with strategies to sell their products, and coming up with a marketing
mix is one of them.

Product

Price

Place

Promotion

Performance and People

Services Sector in the Global Economy

Key takeaways:

• service sector accounts for two-thirds of the value of the GDP globally

• European Union, United States, and other developed countries service sector contributed
to more than 70 percent of their GDPs.

• employment is predicted to continue shrinking in manufacturing and agriculture

• new jobs are expected to be created in many service industries.