Lesson 1: Principles of Marketing

OVERVIEW OF MARKETING: AN INTRODUCTION

Chapter Objectives
 At the end of the chapter, the student is expected to:
 Explain the meaning of Marketing;
 Describe the stages of Marketing thought;
 Understand the behavioral concepts relevant to Marketing; Discuss the goals of Marketing;
 Describe the traditional approaches to marketing; and Identify and explain contemporary marketing
approaches.

Introduction Functions in Management

 Marketing started in the early part of the twentieth  The different functions of managers in a business
century (between 1900 and 1910) out of questions organization are as follows:
and issues neglected by its mother science,  planning,
economics.  organizing,
 In the early years of study and teaching of trade  staffing,
practices, the word "marketing" was not used.  directing/supervising, and
Instead, "trade," "commerce," and "distribution"  evaluating of personnel, plans and programs in
were the common operations of the area to which the different departments of the company.
the term "marketing" is identified today.
Marketing as a Management Function
What Is Marketing?  Marketing is a part of four key management
 Simple Definition: Marketing is managing functions -
profitable customer relationships.  Marketing,
 Goals:  Production,
1. Attract new customers by promising superior
 Finance, and
value.
 Human Resource
2. Keep and grow current customers by
delivering satisfaction.
Goals of Marketing
 The four goals of a marketing system:
Marketing Defined
 maximize consumption,
 A social and managerial process by which
individuals and groups obtain what they need and  maximize consumer satisfaction,
want through creating and exchanging products  maximize choice, and
and value with others.  maximize life quality (Kotler 2000)
 OLD View of Marketing: Making a Sale Telling &
Seling Marketing: The Strategic 3Cs Concept
 NEW View of Marketing: Satisfying Customer 3Cs Key Objectives
Needs 1. Customers To satisfy the needs,
wants and expectations of
target customers.
Marketing as One of the Functions in Business
2. Competition To outperform
Organization competition.
 A simple business organization consists of the 3. Company To ensure corporate
following functions: health and profit.
1) finance and accounting,
2) human resource management,
3) production and materials management, and
4) marketing
Contemporary Marketing Approaches
 With the maturation of marketing thought,
approaches to the analysis of marketing were
advanced.
 The following are some of the approaches and
concepts in marketing:
1) marketing mix;
2) conceptual approach;
3) systems or holistic approach;
4) marketing management;
5) macro-marketing;
6) social marketing; and
7) comparative marketing. (Llanes and Jurado:
1980)
Conceptual Approach
 This approach studies ideas of marketing rather
than the activities of marketing.
 Its emphasis is on theoretical analysis and
development of new concepts whether of
consumer, products, marketing institution,
functions, processes, or policies.
 The concept of marketing is more important than
the definition of marketing.
 The conceptual approach is recognized when
marketing is defined to bring out various ideas for
which "marketing stands."
Systems (Holistic) Approach
 A system is a set of interacting or interdependent
groups coordinated to form a unified whole and
organized to accomplish a set of goals (Markin
1979:28).
 Thus, marketing is perceived as whole,
interdependent units, the marketing process
conceptualized as "flows" and the marketing
structure as "systems" (Bartels 1976:202).
Macro Marketing Approach
 Macro Marketing is the study of marketing
activities, institutions, and processes from the
national (societal) perspective.
 It looks at the aggregate flow of goods and
services in an economy to determine if it benefits
the society in terms of its resource consumption
and environmental effects.
Social Marketing
 Kotler and Andreason - Social Marketing as
"differing from other areas of marketing only with
respect to the objectives of the marketer and his or
her organization.
 Seeks to influence social behaviour’s not the
benefit the marketer, but to benefit the target
audience and the general society.
Comparative Marketing
 Focus on the systematic study of similarities and
differences between national marketing systems
across time, space and sectors for the purpose of
theory-building and theory.
Below is the formula for marketing success
(Schwartz 1977:67)
PRODUCT
(desirable)
PROMOTION CONSUMER PRICE
(effectice) (affordable)
PLACE
(available)

Marketing Management
 This concept is a managerial approach to
marketing.
 It emphasizes marketing management as a decision
making process and how decision makers,
specifically the marketing manager, handles
specific marketing problems and situations.
 Marketing activities and strategies are evaluated
and developed to achieve specific management
objectives.
 The approach establishes the position of the
"marketing manager as a top level position in a
company's organization.