11

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Accountancy Business and
Management (ABM)
PRINCIPLES OF MARKETING
Quarter 4 – Week 7 Module
Marketing Plan
ABM 11 – PRINCIPLES OF MARKETING
Alternative Delivery Mode
Quarter 4 – Week 7 Module: Marketing Plan
First Edition, 2020

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 What I Need to Know
This module was designed and written with you in mind. It is here to help you master
the marketing plan. The scope of this module permits it to be used in many different
learning situations. The language used recognizes the diverse vocabulary level of
students. The lessons are arranged to follow the standard sequence of the course.
However, the order in which you read them can be changed to correspond with the
textbook you are now using.

Content Standard
The learners demonstrate an understanding of the proper interpretation of
marketing strategies through workshop and presentation.

Performance Standard
The learners shall be able to orally defend the mini-marketing plan to a group of
marketing professionals.

Most Essential Learning Competencies

After going through this module, you are expected to:
1. integrate the marketing concepts and techniques learned by preparing a
marketing plan and
2. present a written mini-marketing plan orally.

What I Know
Use the appropriate term in the pool of words about the benefits of Marketing Plan to
associate each of the given items below.

Production Selling
Marketing Product

1. Sole Proprietorship

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2. Partnership

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3. Family Business

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4. Corporation

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 Lesson

7 Marketing Plan
The marketing concept is the strategy that firms implement to satisfy customers’
needs, increase sales, maximize profit, and beat the competition. There are 5 marketing
concepts that organizations adopt and execute. These are; (1) production concept, (2)
product concept, (3) selling concept, (4) marketing concept, and (5) societal marketing
concept.
Marketing is a department of management that tries to design strategies that will
build profitable relationships with target consumers.

Marketers must answer 2 important questions.

1. What philosophy is the best for a company in setting marketing strategies?

2. What will be the importance of the organization, customers, and society’s
interests?

There are five alternative concepts under which organizations design carry out their
marketing strategies to answer these.

What’s In
You should know now that Marketing is the process of creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners,
and society at large.
This process is done in a number of different ways; marketing professionals use
one or more of the five concepts of marketing in order to earn consumer confidence and
create profitable, long-term relationships with consumers. But not all the concepts are
equally effective.

What’s New
Marketing Management Philosophies or 5 Marketing Concepts are;

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PRODUCTION CONCEPT
The idea of production concept focuses on “Consumers will favor products that are
available and highly affordable.” This concept is one of the oldest marketing
management orientations that guide sellers.

This production concept is found to be applicable if two situations prevail.

One, when the demand for a product exceeds supply. This is seen in markets that are
highly price-sensitive and budget-conscious. Under such situations, consumers will
basically be interested in owning the product, not the quality or features of it. Thus,
producers will be interested in increasing their outputs.

Two, if the production costs are very high, that discourages consumers from buying the
product. Here, the company puts all of its efforts into building production volume and
improving technology to bring down costs.
Reduction in production costs helps the firm to reduce, helping the market size to
increase. A company can thus try to create a dominant position in the market where it
operates.

The application of this concept is also seen in service firms such as hospitals.
Application of this concept in service firms such as hospitals is also criticized because
it may cause deterioration in the firm’s service.

PRODUCT CONCEPT
The product concept holds that consumers will favor products that offer the most quality,
performance, and innovative features. Here. Marketing strategies are focused on making
continuous product improvements.

The product concept assumes that consumers will favor those products that are
superior in quality, performance, innovative features, designs, and so on.

This marketing concept is thought to have been simple: he/she who offers a standard
product at the lowest price is going to win. A firm pursuing this philosophy tries to
improve its products in terms of quality, performance, and any other perceptible feature.

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.

In selling concept, the marketer assumes that customers will be coaxed into buying the
product will like it; if they don’t like it, they will possibly forget their disappointment and
buy it again later. This is usually a very poor and costly assumption.

MARKETING CONCEPT
The marketing concept entails “achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better than
competitors do.”

Here marketing management takes a “customer first” approach. Under the marketing
concept, customer focus and value are the routes to achieve sales and profits.

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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 your customers’ right
products.

The marketing concept and the selling concepts are two extreme concepts and different
from each other.

SOCIETAL MARKETING CONCEPT

The societal marketing concept practices “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 consumers’ and businesses’ present needs while also preserving or
enhancing future generations’ ability to meet their needs.

The Societal Marketing Concept puts human welfare on top before profits and satisfying
the wants.

What is It
MARKETING CONCEPT IS BASED ON FOUR MAIN PILLARS.
Pillar- 1 Market Focus
The marketing concept suggests that a company should focus its attention on marketing
rather than production and selling. In today’s diverse market, it is not feasible for a
company to operate successfully in every market and satisfy its needs.

Therefore, it is ideal for a company to highlight its attention to a particular segment (s)
of the total heterogeneous market.

Pillar – 2 Customer Orientation

Focusing on a particular market does not guarantee a company’s success in the
marketplace. What is needed for success is customer orientation, i.e., carefully defining
customer needs from customers’ points of view. A company can do this with market
research, and hence, the role of market research plays a dominant role in marketing
concept-oriented companies.

Customer orientation is important in the sense that a company’s future and progress
depend on the customers. Customers can be new and old. A company must retain its
old customers since attracting new customers is very difficult and costly.

Pillar – 3 Coordinated Marketing

The marketing concept is a total enterprise concept. To be successful, all marketing
functions must be coordinated among themselves and marketing itself must be well-
coordinated with other departments. A company managed under the marketing concept
must plan, organize, coordinate, and control its entire operation as one system directed
toward achieving a single set of objectives applicable to the total organization.

There are obvious reasons behind coordinating marketing functions among themselves,
and the main reason is to eliminate conflict. For example, if marketing functions are not
coordinated among themselves, the salesforce might heavily criticize marketing people
for setting a very high sales target.

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Pillar- 4 Profitability
The end of the marketing concept is to make profits through customer satisfaction. This
suggests that profit is to be made by satisfying customers’ needs.

As customers’ needs are changing day by day, a marketing concept-oriented company

has to consider and modify its product, service, and activities with the change in needs
and satisfy customers better than its competitors in order to earn profit in the long run.

DIFFERENCE BETWEEN SELLING CONCEPT AND MARKETING CONCEPT

Theodore Levitt of Harvard drew a perceptive contrast between the selling and
marketing concepts. According to him, “selling focuses on the needs of the seller;
marketing on the needs of the buyer”.

What’s More
Activity 1. Let’s have some exercises!

Companies usually follow a mix of Marketing Concepts in Real-world and

companies do not follow a single marketing concept rigidly. Give your own mix of
marketing concepts to compete in the market situation, competition, and sales numbers
on this current situation (pandemic). Use the space provided below.

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 What I Have Learned

Activity 2
Identify whether each of the following sentences is true or false. Write your answer in a
separate piece of paper.

1. The idea of production concept is the consumers will favor products that are
available and highly affordable.

2. The product concept holds that consumers will favor products that offer the most
quality, performance, and innovative features.

3. 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.

4. The marketing concept holds an achieving organizational goal depends on

knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do.

5. The societal marketing concept does not employ a marketing strategy should
deliver value to customers in a way that maintains or improves both the
consumer’s and society’s well-being.

What I Can Do
Activity 3. More exercises.
Give an overview of the 5 basic marketing concepts by creating an infographic. Use your
output as your basis on your mini-marketing plan as a part of your additional activity
later.

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 Assessment
Read carefully each of the questions, then encircle the letter of the correct answer.

1. What do you call the concept that refers to - consumers that will favor products that
are available and cheap?
A. Selling concept
B. Production Concept
C. Product Concept
D. Societal marketing concept

2. What is the concept that refers to - consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and promotion effort?
A. Product Concept
B. Societal marketing concept
C. Marketing concept
D. Selling concept

3. What do you call the concept that refers to the achievement of organizational goals
which depends on knowing the needs and wants of target markets and delivering
the desired satisfactions better than competitors do?
A. Product Concept
B. Production Concept
C. Marketing concept
D. None of the Above

4. What is the pillar that suggests the company should focus its attention on
marketing rather than production and selling?
A. Market Focus
B. Customer Orientation
C. Coordinated Marketing
D. Profitability.

5. What is the pillar which suggests that to be successful, all marketing functions
must be coordinated among themselves and marketing itself must be well-
coordinated with other departments?
A. Profitability
B. Market Focus
C. Customer Orientation
D. Coordinated Marketing

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 Additional Activities

Choose a partner and present the mini marketing plan you prepared earlier. Afterwards,
defend your mini-marketing plan orally. Use the space below to write your mini-
marketing plan. Rubrics will be provided by your subject teacher.

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References
https://www.iedunote.com/marketing-
concepts#:~:text=There%20are%205%20marketing%20concepts,(5)%20societal
%20marketing%20concept.

https://avalaunchmedia.com/the-five-marketing-concepts/