LESSON-1-MARKETING-PRINCIPLES-AND-STRATEGIES-1

MARKETING
PRINCIPLES AND
STRATEGIES
Chapter 1
LEARNING OBJECTIVES
At the end of the lesson, the learners
should be able to:
• define and understand marketing;
• discuss the goals of marketing
• describe the traditional approaches
to marketing, and;
• identify and explain contemporary
marketing approaches.
MARKETING
• any exchange intended to satisfy
human wants or needs
• 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
• Marketing is the activity, set of
instructions, and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society at
large.
OLD view of NEW view of
marketing: marketing:
Making a sale Satisfying
—“telling and customer needs
selling”
THE MARKETING PROCESS
1. Understand the marketplace and
customer needs and wants.
2. Design a customer-driven marketing
strategy.
3. Construct an integrated marketing
program that delivers superior value.
4. Build profitable relationships and
create customer delight.
5. Capture value from customers to
create profits and customer quality.
NEED, WANT, AND DEMAND
Need: State of felt deprivation including
physical, social, and individual needs.
• Physical needs: Food, clothing, shelter,
safety
• Social needs: Belonging, affection
• Individual needs: Learning, knowledge,
self-expression
Want: Form that a human need takes,
as shaped by culture and individual
personality.
• Wants + Buying Power = Demand

NEED AND WANT FULFILLMENT
Needs & wants are fulfilled through a
Marketing Offering:
• Products:
– Persons, places, organizations,
information, ideas.
• Services:
– Activity or benefit offered for sale that is
essentially intangible and does not
result in ownership.
• Experiences:
– Consumers live the offering.
CUSTOMER VALUE AND
SATISFACTION
Dependent on the product’s perceived
performance relative to a buyer’s
expectations.
Care must be taken when setting expectations:
• If performance is lower than expectations,
satisfaction is low.
• If performance is higher than expectations,
satisfaction is high.
Customer satisfaction often leads to consumer
loyalty.
Some firms seek to DELIGHT customers by
ACTIVITY
ON A ½ CROSSWISE LIST AT LEAST THREE
THINGS/ITEM THAT YOU HAVE BEEN BOUGHT
BY MEANS OF
• NEED
• WANTS
THEN IN EACH ITEM STATE YOUR REASON WHY

YOU BOUGHT IT BY MEANS OF NEED OR WANTS?
GOALS OF MARKETING
1. Differentiate your products from
similar ones out there.
2. Define your niche by narrowing
down the market.
3. Select, read and use the
resources of your target market.
4. Sell what the target wants to buy,
not what you want to sell.
GOALS OF MARKETING
5. Determine if you are a product or
market driven business.
6. Attract new customers by
promising superior value.
7. Keep and grow current customers
by delivering satisfaction
MARKETING APPROACHES
• TRADITIONAL MARKETING
• CONTEMPORARY MARKETING
TRADITIONAL MARKETING
• Includes print, broadcast (TV and
radio commercials), direct mail, and
telephone
• Applicable for those who do not
often use the internet
• Can be expensive
• A. The Production Concept. This

concept is the oldest of the
concepts in business. It holds that
consumers will prefer products
that are widely available and
inexpensive. Managers focusing
on this concept concentrate on
achieving high production
efficiency, low costs, and mass
B. The Product Concept. This
orientation holds that consumers
will favor those products that offer
the most quality, performance, or
innovative features. Managers
focusing on this concept
concentrate on making superior
products and improving them over
time.
• C. The Selling Concept. This is
another standard business
orientation. It holds that consumers
and businesses will ordinarily not
buy enough of the selling
company’s products. The
organization must, therefore,
undertake an aggressive selling and
promotion effort.
CONTEMPORARY MARKETING
• A. The Marketing Concept. It holds
that the key to achieving its organizational
goals (the selling company) consists of
the company being more effective than
competitors in creating, delivering, and
communicating customer value to its selected
target customers. The marketing
concept rests on four pillars: target market,
customer needs, integrated marketing,
and profitability.
B. Relationship Marketing Concept. It is
believed that all marketing activities
are to establish, maintain, and
strengthen meaningful long-term
relationships with customers. Customer
profiles, purchase habits, and
preferences are tracked and monitored.
This is to ensure that customer’s needs
are fulfilled, and the relationship with
them is maintained.
• C. The Societal Marketing
Concept. This concept holds that
the organization’s task is to
determine the needs, wants, and
interests of target markets and
deliver the desired satisfactions
more effectively and efficiently
than competitors (this is the
original Marketing Concept).
• TRADITIONAL MARKETING –
refers to any type of
promotion, advertising or
campaign that has been in use
by companies for years and
that has proven success rate.
Methods of traditional
marketing can include print
advertisements, such as
newsletters billboards, flyers
FORMS OF TRADITIONAL MARKETING
• 1. Print Marketing - it is the oldest

form of traditional marketing. It is
advertising in paper form, this
strategy has been in use since
ancient times when Egyptians
created sales messages and wall
posters on papyrus. Today print
marketing usually refers to
advertising space in newspapers,
magazines , newsletters and other
printed materials intended for
2. Broadcast marketing –
includes radio and television
advertisements.
3. Direct Mail Marketing – uses
printed materials like postcards ,
brochures, letters, catalogues
and flyers sent through postal
mail to attract consumers.
4. Telephone Marketing or
Telemarketing – is the practice of
delivering sales messages over
Contemporary Approaches of
Marketing
A.Marketing Process
B.Building Relationships with
Customers
• Kotler and Armstrong
emphasizes that “the
marketing process begins,
continues and ends with
consumers”. Marketers
need to understand
customer needs and wants,
and marketplace within
which they operate.
6. Process refers to the processes involved
in delivering your products and
services to the customer. Having a fair
process ensures that you: repeatedly
deliver the same standard of service to your
customers and save time and money by
increasing efficiency.
7. Physical evidence refers to everything a
customer see when interacting with
your business. Physical evidence can also refer
to your staff and how they
dress and act. This includes:
➢ the physical environment where the business

provides the product or
service
➢ the layout or interior design and branding.
• B. Building Relationships with
customers
Smart marketers of today are taking
advantage of new opportunities for
building relationships with their
customers, or with their marketing
partners. Instead of making profit on
each sale, they try to gain by being
market and customer centered, by
focusing on customer satisfaction, by
trying to find innovative ways to
capture, keep and retain customers.
Contemporary Characteristics on
Building Relationships with
Customers
1.Customer and market centered
2.Target selected groups or
individuals instead of relying
on mass marketing.
3. Serve Profitable customers;
study why some customers are
leaving and try holding on to
them.
4. Develop customized products
which satisfies customers needs
5. Market locally and globally
6. Embrace social and
environmental responsibility
7. Partner or collaborate with
other firms or organizations.
8. Welcome change. Explore uses
and benefits of technological
developments in your business.
MARKETING MIX
1. Product is defined as the item or service
being sold or offer, it is the first step
in the marketing mix. The product should be
designed according to consumer needs and
desires.
2. Price refers to the value that is put for a
product. It depends on production
costs, segment targeted, marketability to
pay, supply-demand, and a host of
other direct and indirect factors.
3. Promotion is the way a company
communicates what it does and what it can
offer customers. It is also a company's method
to make consumers aware of and attracted to a
particular product or service. Examples of
promotional methods include television and
radio commercials, internet
advertising, introductory prices, flyers, referrals,
word of mouth, etc.
4. Place refers to where customers buy a
product and distribute it to the location;
it must be appropriate and convenient. The
product must be available in the right place, at
the right time, and in the right quantity while
keeping storage,
inventory, and distribution costs acceptable.
5. People who come into contact with the
customers will make an impression, which can
have a profound effect-positive or negative-on
customer
satisfaction.

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MARKETING

• Wants + Buying Power = Demand

THEN IN EACH ITEM STATE YOUR REASON WHY

• A. The Production Concept. This

• 1. Print Marketing - it is the oldest

➢ the physical environment where the business

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