PRINCIPLES OF MARKETING QUARTER 1 3

Chapter 1: Marketing Principles & Strategies

Tickle Your Thoughts
We are living in an age where business entities continue to come up with end-
less ideas for innovation and growth, sometimes to a degree where we could only
wonder, ‘how did anyone ever thought of making this thing?’ There are millions of dis-
tinct products today it makes us curious on how all of these are popularized. How do
businesses manage to succeed in publicizing their products when all of them were
once nothing? In this module, the concept of marketing is introduced to you, and how
it is not only about selling products, but also a lot about the process before it was ac-
tually processed.

Setting Goals
As you complete understanding this lesson, you are expected to acquire the
following competencies:
 Define and understand marketing
 Discuss the core concepts of marketing
 Describe the traditional approaches to marketing
 Identify and explain contemporary marketing approaches.

EXPLORE

Activity 1: Pick Your Brand

Think like a business person! Shown below are four different products.
Pick one and assume it is your own product. Think of a product name, it’s fea-
tures and tell why people should buy your product.

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PRINCIPLES OF MARKETING QUARTER 1 4

Chosen Product: ______________

Product Name: _____________________

Why should people buy your product?
____________________________________________________________
____________________________________________________________ PRODUCT LOGO
____________________________________________________________________________________________
____________________________________________________________________________________________

FIRM UP

Marketing Defined
Marketing is defined as the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.
Marketing has two main goals: 1) To determine customer needs and
wants; and 2) to satisfy these needs and wants.

The Five Core Concepts of Marketing

1. ) Customer Needs, Wants and Demands
Why are there successful businesses? Because people consume their
products. But why do people consume a product? It’s either because they need
it or they want it. Someone’s needs and wants both give him/ her satisfaction,
but to a vastly different level of importance. A need refers to a basic necessity
such as food, clothing, shelter, or social needs such as a need to belong. A want,
on the other hand, would relate to a particular of a person, as shaped by one’s
personality and knowledge, along with broader influences such as cultural and
societal factors.
A demand exists when a person has the ability to acquire or purchase
their needs or wants. Knowing these three factors will help in strategizing the
formulation of a new product.

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PRINCIPLES OF MARKETING QUARTER 1 5

2. ) Market Offerings
Market offerings serve to fulfill customer needs and wants. They are
some combination, mixture, or blend of physical products, services, infor-
mation, ideas, or experiences offered to a market.

3. ) Customer Value and Satisfaction

Satisfied customers who find value in a product are likely to patronize it
again. The goal, therefore, is to consistently meet or even exceed consumer ex-
pectations. This contributes to the development of a preference for your brand
and customer loyalty.

4. ) Exchanges and Relationships

For marketing to occur, an exchange must happen. An exchange takes
place when one obtains his/her wants by offering something in return. This
could pertain to an exchange of goods or services for money. In marketing, the
point where a business engage in an exchange with a customer is a good oppor-
tunity to create relationships. It must be ensured that customers are happy and
continuously satisfy with the products or services a business offers.

4. ) Market
The market is composed of all people who buy the product, including
those who could potentially purchase product. Marketers need to fully under-
stand the market to have profitable customer relationship. Market research
then became highly important to find out such things as determining customer
wants, needs and demands, what they buy, where they buy, how they feel
about the product and a whole lot of other information.

How Did Marketing Evolve?

Whereas the concept of marketing is very vital in the success of a busi-

ness entity today, this hasn’t always been the case. There was a time where the
focus on customers was not a factor in conducting one’s business. Management
orientations have evolved through years , and each step of improvement may
be described by a marketing era.
As you watch the video tutorial covering this topic, complete the table on
the next page by taking notes of the nature of marketing in each era.

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PRINCIPLES OF MARKETING QUARTER 1 6

ERA TIMEFRAME NATURE OF MARKETING

1800 to
PRODUCTION ERA
1930s

SALES ERA

MARKETING CON-
CEPT ERA

CUSTOMER RE-
LATIONSHIP ERA

Marketing Management Orientation

Even in the current customer relationship era, there still exist different
marketing management orientations that guides and provide focus to compa-
nies’ marketing activities. These orientations or concepts may be influenced by
various factors such as the nature of the market, the nature of the product, the
nature of the competition , and the size of the business. The following are the
five marketing concepts used today:

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PRINCIPLES OF MARKETING QUARTER 1 7

1. ) Production Concept
The idea of production concept is that consumers will favor products that
are available and highly affordable. This concept is one of the oldest marketing
management orientations that guide sellers. Management focuses on improving
production and distribution efficiency. Companies adopting this orientation run
a major risk of focusing too narrowly on their operations and losing sight of the
real objective. Though in some cases, this orientation is still effective.
2. ) Product Concept
The product concept holds that the consumers will favor products that
offer the most in quality, performance and innovative features. Under this con-
cept, marketing strategies are focused on making continuous product improve-
ments. Product quality and improvement are important parts of marketing
strategies, sometimes the only part. But like the production concept, this
method can be shortsighted, given that does not give importance to other im-
portant factors such as customer satisfaction and the efficiency in production.
3. ) Selling Concept
The selling concept holds the idea that consumers will not buy enough of
the firm’s products unless it undertakes a large-scale selling and promotion
effort. Here, the management focuses on creating sales transactions rather than
on building long-term, profitable customer relationships. In other words, the
aim is to sell what the company makes rather than making what the market
wants. Such an aggressive selling program carries very high risks. Typically the
selling concept is practiced with unsought goods. Unsought goods are that buy-
ers do not normally think of buying, such as insurance.
4. ) Marketing Concept
The marketing concept’s idea is that achieving organizational goals de-
pends on knowing the needs and wants of target markets and delivering the de-
sired satisfactions better than competitors do. Here marketing management
takes a “customer first” approach. Under the marketing concept, customer fo-
cus and value are the routes to achieve sales and profits. The marketing concept
is a customer-centered “sense and responds” philosophy. The job is not to find
the right customers for your product but to find the right products for your cus-
tomers.
4. ) Societal Marketing Concept
Societal marketing concept questions whether the pure marketing con-
cept overlooks possible conflicts between consumer short-run wants and con-
sumer long-run welfare. The societal marketing concept holds the idea that
marketing strategy should deliver value to customers in a way that maintains or
improves both the consumer’s and society’s well-being. It calls for sustainable
marketing, socially and environmentally responsible marketing that meets the
present needs of consumers and businesses while also preserving or enhancing
the ability of future generations to meet their needs. It also puts human welfare
on top before profits and satisfying the wants.

VIC-
 PRINCIPLES OF MARKETING QUARTER 1 8

DEEPEN

Activity 2: Market Your Learning

Answer the following questions or situations.
1. Businesses identifies customer needs and innovates them to a point that it be-
comes a want. Give an example of a situation where this happens. ____________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

2. Knowing the market is highly important in the process of marketing. What do

you think will happen if a business has no proper market analysis?_ ___________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

2. Explain how exchanges and relationships is important to achieve customer val-

ue and satisfaction. ______________________________________ ___________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Activity 3: Identifying Strategies

Read each situation carefully. Tell whether the scenario utilizes the produc-
tion, product, selling, marketing, or the societal marketing concept.

__________________ 1. Kitchen & Silverwares, Co. thinks that it is better to mass

produce measuring cups since it is bought by customers regardless of its quality. It
is more important that greater quantity regardless of it’s quality.
__________________ 2. Villaflor Loaning Inc. needed all their marketers to reach
all possible customers and convince them of the benefits of borrowing money to
them. To achieve this, they must personally offer this to people in several institu-
tions.
__________________ 3. Since a furniture should last a long time before it is re-
placed, Cabin In The Woods, Inc. focuses heavily in ensuring all fixtures they make
are thoroughly inspected process by process. A single mistake on each product is
not acceptable.

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PRINCIPLES OF MARKETING QUARTER 1 9

__________________ 4. Before they created the final list on their menu, Lemon
Cravings Restaurant made a research of what customer preferences are at the ar-
ea in which they are located. Their priority is to make customers immensely satis-
fied by their service.
__________________ 5. While First Sip Coffee Shop ensures customer satisfac-
tion, they promote the avoidance of using plastic containers with their take out
coffees for a more sustainable business environment.
__________________ 6. The management of Sweet Life White Sugar Manufactur-
ing sets a quota of a minimum of one thousand packs of sugar to produce daily,
and effectively deliver to customers the day succeeding the manufacture. It is ut-
most importance to them to meet this daily objective, since sugar is a commodity
everyone uses.
__________________ 7. A new gadget is being launched by Hugh-Tech Interna-
tional. They paid a large amount of fees for advertising in different social medias,
TV commercial, billboard postings and other ways to promote the launch of this
product.
__________________ 8. Glamour & Glow manufactures lotion bars. This innova-
tion will lessen the use of plastic containers unlike the traditional liquid lotion. It’s
packaging will be a recyclable paper bag.

TRANSFER

Activity 4: Create and Strategize

Look at the your answer in Activity 1. Once again, state that product, your
chosen product name and the advantage of using that product. But this time, in-
clude how you will apply the five core concepts of marketing in creating and sell-
ing your product. Also, state which marketing management orientation to use
that will be the most effective for your chosen product and the reason why so.

Chosen Product: ___________________________

Product Name: ____________________________
Advantages of using this product:_______________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

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PRINCIPLES OF MARKETING QUARTER 1 10

Analysis of the five core concepts:______________________________________

__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Best marketing management orientation to use for this kind of product:________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

End of module

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Contact number:

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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2 QUARTER 1 11

REFERENCES

Contents:

http://digitalnomadsasia.com/2018/01/05/5-core-customer-and-marketplace-
concepts/

https://www.iedunote.com/marketing-concepts

https://commercemates.com/marketing-management-orientations/

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