Lesson 1.

The Concept of Marketing

Principles of Marketing
Accountancy, Business, and Management

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Marketing equals profits.
There is a chance that you
think so too.

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How does marketing rein in
revenue?

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Let us break the stereotypes and dive
into the vast world of marketing.

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Quick Look

Making Brand More Human

Have you noticed that brands are becoming more human? Nowadays,
brands seem to communicate and share with you your needs, wants,
feelings, and values.

Brands display personalities: they may be youthful and fun, serious and
mature, friendly and engaging, and adventurous and defiant. Brands
appear to express the diversity among human beings.

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Quick Look

Making Brand More Human

Before the digital age, brands heavily relied on TV and print advertising to
build awareness among their audience. Since TV and print advertising are
expensive, brands traditionally display their products and services and
conduct a hard sell approach.

Marketing has become increasingly competitive in the digital age, and

brands are doing their best to connect with their audience. They adapt to
the marketing that talks and listens to their audience, making brands
appear more human.

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Quick Look

Questions to Ponder
1. Provide an example of an advertisement that uses the
hard-sell approach and describe the content of its message.
Do you think this is an effective marketing strategy? Why or
why not?
2. Think of a brand that you can relate to. How would you
describe the personality of this brand?
3. Why is it important for brands to become more human?

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Learning Competency

Define and understand marketing (ABM_PM11-Ia-b-1).

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Learning Objectives

In this lesson, you should be able to do the following:

● Recall the definition and importance of marketing.
● Identify the marketing mix of a business.
● Propose business strategies based on the marketing process.

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How is marketing used to improve
our lives?

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What is Marketing?

● Companies connect with their potential clients or

customers by making their brands relatable.

● To successfully implement this strategy, companies

undergo an elaborate process of knowing their customers,
designing their products, and delivering superior value,
among others.

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 What is Marketing?

Marketing
● It is a social and managerial process by which individuals
and groups obtain what they need and want through
creating and exchanging products and value with others.

● It employs techniques and methods to define ideal

audiences, develop marketing strategies, and sustain
fulfilling relationships with customers.

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 Why Study Marketing?

Get to know your

customers better.
It is designed to cater to a
specific group of people
that would likely purchase a
product or avail of services.
Marketing is not a
one-size-fits-all approach.
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Influence purchasing Analyze and interpret
behaviors and data
decisions. Data could be available on
websites, online tools, and
Marketers heavily rely on social media platforms
perception—the way
customers view a product Companies and marketers
or service need to know how they can
use these data to measure
their performance and
improve their strategies.
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Explores human Monitor and listen to
interaction the market
Marketers need to learn how to To help companies keep in touch
communicate effectively with with their customers and be
different people, eventually constantly aware of what they are
forming strategic and meaningful thinking.
partnerships.

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 Who Does Marketing?

Everyone that has a

market offering does
marketing.
Two essential questions to
answer:
1. What are we trying to
market?
2. Whom are we marketing for?
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 The Marketing Process

“People don't buy

what you do; people
buy why you do it.”
Marketing communicates
value and benefit.

Simon Sinek

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 The Marketing Process

● It guides companies in creating value for their customers

and building strong customer relationships.
● The process aims to capture value from customers in
return.

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Marketing Process

Construct an
Understand the Capture value
integrated
market and the from
marketing plan
customers’
that delivers customers
needs and wants
superior value

1 2 3 4 5

Design a Build customer

customer-driven relationships
marketing and create
strategy customer delight

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 The Marketing Process

Understand the market and the customers’

needs and wants
● Marketers study the behaviors of both the buyers
(consumers) and other sellers (competitors).
● Needs include necessities that people need to survive.
Wants are needs based on an individual's personality or
cultures. If people can afford to meet their wants,
eventually, there will be demand.

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 The Marketing Process

Understand the market and the customers’

needs and wants
● Group customers according to similar traits and
characteristics to determine the target group.
● Competitor analysis also serves as a benchmarking
strategy to analyze their competitors’ best practices,
discover gaps, and adopt effective business strategies.

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 Check Your Progress

Based on your experience, what are your personal needs

1 and wants? Has there been an increasing demand for the
items that you’ve mentioned? Why?

Answer area

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 The Marketing Process

Design a customer-driven marketing strategy

It has two parts:
1. Defining the target market and buyer persona
2. Developing a unique selling proposition

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 Design a Customer-Driven Marketing Strategy

Target Market Buyer Persona

A group of consumers likely

to purchase your product or
avail of your service. A sample representation of
They share common traits, your ideal customer.
interests, and
characteristics.
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 Design a Customer-Driven Marketing Strategy

Unique Selling Market Offering

Proposition
The combination of
It consists of features that products, services,
make a brand better than information, or experiences
its competitors. that aim to satisfy
consumers' wants or needs

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 The Marketing Process

Construct an integrated marketing plan that

delivers superior value
The marketing plan includes strategies, the budget, and
metrics or KPI for a successful marketing campaign.

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 The Marketing Process

Build profitable
customer relationships
and create customer
delight
According to Hubspot, around
67% of consumers say they need
to trust a brand or a product
before making a purchase.

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 The Marketing Process

Build profitable customer relationships and

create customer delight
● Different customers perceive product value differently, but
businesses should still do their best to exceed customer
expectations.
● Customers are satisfied if the product’s perceived value is
equal or greater than their expectations.

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 The Marketing Process

Build profitable customer relationships and

create customer delight
● The type of engagement also depends on the market
offering.
● For high-end items or services, companies invest more on
people to market to a select target audience.

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 The Marketing Process

Build profitable customer relationships and

create customer delight
● Customer engagement means encouraging your
customers to interact and share experiences with your
brand.
● Examples include: posting content on social media;
creating customer support; organizing product launches;
and, asking for customer feedback.

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The Marketing Process

Capture value from

customers

Businesses want to increase

customer equity or the total
combined customer values of
the company's current and
potential customers.

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 The Marketing Process

Capture value from customers

● If the company has a growing customer base while
retaining its loyal customers, its customer equity is also
rising.
● Sample strategies include loyalty cards, referral programs,
and member privileges.

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 Check Your Progress

Do any of the local businesses have value-capturing

2 strategies? Write about one strategy and why it is effective
for their business.

Answer area

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Components of a Marketing Plan

Place
Product

The Marketing Mix

Price Promotion

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 The Marketing Mix

Product Price
The amount customers pay
The good or service that a
to purchase a product or
business provides to its
avail of a service.
consumers.
It must consider the
It should satisfy existing
product's worth, supplier
customer demand or create
costs, seasonal factors, and
a new one.
competitor prices.
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 The Marketing Mix

Place Promotion
Includes advertisements,
The area or space where a
public relations, and
product would be sold.
awareness strategies.
It can be a certain store or
Marketers usually combine
display. It can be an online
promotion and placement
shop or e-commerce
aspects to reach their target
website.
audiences.
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 Example 1: The Marketing Mix for Milk Tea

Closer
Look

Milk Tea
● Flavors: Wintermelon, Okinawa, Hokkaido,
Product Matcha
● Add-ons (if requested): Black Pearl, Coco
Jelly, Coffee Jelly, and Rock Salt and Cheese

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 Example 1: The Marketing Mix for Milk Tea

Closer
Look

Varies by size and number of add-ons

● Regular (16 ounces): PHP80
Price
● Large (22 ounces): PHP95
● Add-ons: PHP15 each

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 Example 1: The Marketing Mix for Milk Tea

Closer
Look

● a food stall in front of the house

● social media marketplace
Place
● available for delivery, but with additional
charges

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 Example 1: The Marketing Mix for Milk Tea

Closer
Look

● Create a business page on social media

where customers can interact and order.
● Build a food stall with a theme that
Promotion
resonates with the brand.
● Distribute stickers and keychains as
freebies for the first 100 customers.

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 Example 2: The Marketing Mix for Massage Services

Closer
Look

Massage
Product Whole body, half body (upper part), leg and
foot

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 Example 2: The Marketing Mix for Massage Services

Closer
Look

Depends on the type of massage

● Whole body: PHP500
Price
● Half body: PHP300
● Leg and foot: PHP200

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 Example 2: The Marketing Mix for Massage Services

Closer
Look

● Physical store located at 123 Jupiter Street,

Naga, Cebu.
Place ● Home service available, but with additional
charges to cover the masseuse’s
transportation costs.

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 Example 2: The Marketing Mix for Massage Services

Closer
Look

● Create a business page on social media

where customers can interact and book an
appointment.
● Put up decorations and a sound system in
Promotion
front of the store to attract interested
customers.
● Referral and loyalty programs for returning
customers.

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 Pet protection network increases revenue 53%
thanks to survey feedback
Case S
tudy

Huan produces pet smart tags to help owners find their

missing pets. The company's homepage focuses on the
technical features of the smart tag, such as it does not emit
harmful radiation, is water-resistant, and has a one-year
replaceable battery.

“5 Mini Case Studies about Understanding and Serving the Customer,” Marketing Sherpa (Marketing Sherpa, October 6 2020),
https://www.marketingsherpa.com/article/case-study/understanding-what-customers-want-5-mini-case-studies, last accessed on
October 24, 2021.
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 Pet protection network increases revenue 53%
thanks to survey feedback
Case S
tudy

However, according to customer feedback, pet owners bought

the tag because they worried that they wouldn't find their pets
if they went missing again. Because of this discovery, the
company decided to change its messaging to:
"Keep your pet safe and prevent heartbreak. Huan Smart Tags
help you find your missing pet automatically."

“5 Mini Case Studies about Understanding and Serving the Customer,” Marketing Sherpa (Marketing Sherpa, October 6 2020),
https://www.marketingsherpa.com/article/case-study/understanding-what-customers-want-5-mini-case-studies, last accessed on
October 24, 2021.
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 Pet protection network increases revenue 53%
thanks to survey feedback
Case S
tudy

Since then, the company has improved its revenue and more
customers are interested in buying their product.

“5 Mini Case Studies about Understanding and Serving the Customer,” Marketing Sherpa (Marketing Sherpa, October 6 2020),
https://www.marketingsherpa.com/article/case-study/understanding-what-customers-want-5-mini-case-studies, last accessed on
October 24, 2021.
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Keep in Mind

● Modern concepts on marketing revolve around customer

satisfaction.
● Marketing is a social and managerial process through which
individuals and groups obtain what they need and want by creating
and exchanging products and value with others.
● Marketing could be done by anyone who has a specific market
offering, for anyone who has specific needs or wants to be fulfilled.

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Keep in Mind

● Marketing helps businesses in:

○ Getting to know their customers
○ Influencing the decisions and purchasing behaviors of customers
○ Analyzing and interpreting data
○ Exploring human interaction as an essential business function
○ Closely monitoring and listening to the market.

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Keep in Mind

The Marketing Process

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Keep in Mind

● The marketing mix is composed of the basic 4Ps

○ Product
○ Price
○ Place
○ Promotion.
● These 4Ps are part of the overall marketing plan that defines the
goals, objectives, and strategies for bringing a new product or service
to the market.

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 Try This
React a like if the statement is correct. If false, react a dislike.

1. If the company has a growing customer base while

retaining its loyal customers, its customer equity decreases.

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 Try This
React a like if the statement is correct. If false, react a dislike.

2. Product, price, place, and promotion comprise the

marketing process.

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 Try This
React a like if the statement is correct. If false, react a dislike.

3. Product is the good or service that a business provides to

its customers.

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 Try This
React a like if the statement is correct. If false, react a dislike.

4. Price is the amount customers pay to purchase a product

or avail of a service.

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 Try This
React a like if the statement is correct. If false, react a dislike.

5. Unique selling proposition (USP) refers to the process of

advertising, public relations, and awareness strategies.

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 Practice Your Skills
Read the case study and identify its marketing mix. Write your answers
in the spaces provided.
Comp Pew Gizmos is a store that offers computers, computer
parts, and accessories in Butuan City. Its target audience is
gamers in Butuan City and neighboring provinces; to do so,
they offered delivery services with extra charges.

Initially, Comp Pew Gizmos offered a budget-friendly, basic

gaming setup. However, the business observed that gamers
prefer high-spec PC setups to have a smoother, more efficient
gaming experience.

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 Practice Your Skills
Read the case study and identify its marketing mix. Write your answers
in the spaces provided.
As of the moment, Comp Pew Gizmos sells its items in their
store in Butuan and through online shopping platforms. They
promote their products on various social media sites. The
business wants to expand its customer base and set up
another branch. However, they are still undecided where to
place the new shop.

Can you help Comp Pew Gizmos identify their marketing mix
and strategy using the 4Ps?

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 Practice Your Skills
Read the case study and identify its marketing mix. Write your answers
in the spaces provided.
1. Product: What is their current market offering? Should
there be any adjustment to this?

Answer area

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 Practice Your Skills
Read the case study and identify its marketing mix. Write your answers
in the spaces provided.

2. Price: What should be the pricing of their product?

Answer area

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 Challenge Yourself
You are planning to put up a printing shop near a public school. Imagine
this shop's ideal customer and create its buyer’s persona.
What are the characteristics of your ideal customer? Be as
detailed as you can.

Answer area

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 Challenge Yourself
You are planning to put up a printing shop near a public school. Imagine
this shop's ideal customer and create its buyer’s persona.
What are your buyer’s goals in life? What are the things that
block them from achieving these goals?

Answer area

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Photo Credits

Slide 1: influencer marketing agency Factory., by Wasi ahmed02 is licensed under CC BY-SA 3.0 via Wikimedia Commons.

Slide 4: A yellow row of stars by Towfiqu barbhuiya is free for commercial use under the Unsplash license via Unsplash.

Slide 5: Marketing officer Illustration, by Delesign Graphics is licensed under CC BY 4.0 via iconscout.

Slide 14: One size fits all, badly, by Espen Klem is licensed under CC BY 2.0 via Flickr.

Slide 18: Simon Sinek speaking at TEDx Maastricht in the Netherlands, by Startwithwhy is licensed under CC BY-SA 3.0
via Wikimedia Commons.

Slide 28: Banknotes by Mari Gimenez is free for commercial use under the Unsplash license via Unsplash.

Slide 33: So many coffee loyalty cards, by Nick Webb is licensed under CC BY 2.0 via Flickr.
Bibliography

Bretous, Martina. “What Is Brand Loyalty And How To Build It.” What Is Brand Loyalty and How To Build It.
blog.hubspot.com, March 17, 2021. https://blog.hubspot.com/agency/surprising-stats-brand-loyalty.

Kotler, Philip, Veronica Wong, John Saunders, and Gary Armstrong. Principles Of Marketing. 4th ed. Harlow, Essex:
Pearson Education Limited, 2005.

Prakash, Kunvar Buddha. “The Marketing Process: Creating And Capturing Customer Values | Medium.” Medium.
medium.com, July 25, 2020. https://medium.com/@kunvar.bp/the-marketing-process-explained-d1138c4049b2.

Twin, Alexandra. “The 4 Ps Of Marketing.” Investopedia. www.investopedia.com, July 21, 2021.

https://www.investopedia.com/terms/f/four-ps.asp.

“Why Studying Marketing Is Important for Any Field | William Peace University.” William Peace University. www.peace.edu,
March 21, 2019. https://www.peace.edu/blog/why-study-marketing/.

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