(PRINCIPLES OF MARKETING)
MARKETING
 a process by which companies create value for
customers and build customer relationships.
 an action of selling and promoting products or
services, including advertising and market
research.
 seeks to accomplish an organization’s
objectives.
Dr. Philip Kotler
 marketing is a science and art of exploring,
creating, and delivering value to satisfy the
needs of a target market at a profit.
Needs
 the basic human requirements
Wants
 the desire for products or services.
 not necessary, but which consumers wish for.
Demands
 the action taken by the market in response to
their wants.
 Utility
 power of a good or service to satisfy a particular
need or want
Utility concepts of marketing:
1. Form utility
 conversion of raw materials into products that
suit the preference of the consumer.
2. Place Utility
 availability of the product or services at
accessible locations
3. Time Utility
 satisfaction derived by consumers in availing of
products or services on time.
4. Possession Utility
 ensuring that customers have full possession of
the product or services at the right time through
fast payment processing and delivery.
Benefits of marketing:
1. It creates employment
2. It helps develop more and better products
3. It provides better profit
4. It improves the quality of life
5. It produces more entrepreneurs
6. It contributes to economic development
Marketing philosophies:
1. Production Philosophy
 based on the belief that consumers prefer low
prices and product availability.
2. Product Concept
 products most quality, performance, and
innovative features are highly favored by the
customers.
3. Selling concept
 consumers buy products only if the business
promotes and advertise it.
4. Marketing Concept
 customer-centered, sense-and-respond. the
business highly considers the needs and wants of
potential markets.
5. Societal-Marketing Concept
 based on the idea that a company must also
consider the market’s long-run welfare aside
from meeting short-run needs and wants.
The goals of marketing:
1. Building Brand Awareness
Brand – a symbol, logo, words or a combination of
these elements
Brand Awareness – the extent to which a brand by
potential customers and is correctly associated with a
particular product or service.
2. Supporting High Sales -Lead Volume
Lead Volume – a number of sales leads that ultimately
be converted into customers
Sales Lead – a potential market who is interested in the
product
3. Establishing Thought Leadership
Goals – desired results, ambitions, aims. What you want
to achieve in the future.
Goal Setting – process of identifying what one wants to
accomplish for his/her own good for any entity’s good.
Objective – exact steps a company must take to reach its
goals.
Tactics – short-term / tools used in pursuing an objective
Strategy – long term methods or approaches and plans
of actions towards the achievement of goals.
SMART Framework – used as a blueprint for creating
efficient marketing activities
SPECIFIC, MEASURABLE, ACHIEVABLE,
RELEVANT, TIME-BOUND
TRADITIONAL MARKETING
 an approach wherein marketers seek to attract
customers to a specific product or service
 through whatever means of promotion,
advertising or campaign.
Push Marketing – a kind of approach wherein
companies aggressively convey marketing messages to
customers
Kinds of traditional marketing:
1. Direct Sales
 directed towards the consumers and not from a
fixed retails location.
2. Direct Mail
 targeted to a specific group of people and
creates awareness of a product or services.
3. Tradeshows
 showcase of various products, prototypes, and
inventions.
4. Print
 creates awareness of a product or services
through ads in a newspaper, magazine, the
yellow pages, billboards, etc.
5. Referral
 word-of mouth marketing; leverages your
existing customers to advocate your business.
6. Broadcast
 use of television and radio to advertise a
product or service to reach their target audience.
2 Theories of Traditional Marketing
1. Ansoff’s Matrix Theory
 a theory that proposes products or services fall
into one of four categories depending on the
market and the product released.
 Market Penetration, Product Development,
Market Development, Diversification.
2. The Marketing Mix
 combination of factors that can be controlled by
the company to influence customers to purchase
its product.
Four Major Part of Marketing Mix
1. Product – should fit the customer’s wants, it should
work and it should be what the consumers are expecting
to get.
2. Place – should be available from where your target
consumer finds it easiest to shop
3. Price – should always be seen as representing good
value for money.
4. Promotion – advertising, PR, Sales Promotion,
Personal Selling and, social media are all key
communication tools for an organization.
CONTEMPORARY MARKETING
 more modern marketing theories and
approaches that stress the importance of
customer orientation.
Inbound Marketing – approach of attracting target
markets towards a product or service without the use of
force.
Two Theories of Contemporary / Digital Marketing:
1.) Co-Creation – suggests creating a bridge between
customer and business by allowing them to take part in
the development process of their products.
2.) Shared Value -aims to offer perks to its target
market while also gaining profits from it.
Modern Marketing
 online marketing relies on strategies of using
the internet platform and mobile devices.
Search Engine Marketing - promotion through search
engine.
2 distinct forms:
1.) Search Engine Optimization (SEO)
 optimizing the site to increase the sites ranking
in search engine results.
2.) Pay-per-click (PPC)
 focuses on buying ads to make a company's link
more visible in search engines.
Display Ads - often defined by banner ads, that appear
in specifically designated areas of a website or social
media platform.
Email Marketing - effective email requires good design
and optimization.
Social Media Marketing - attempts to leverage the
power of social networks to promote a products or
service. 
Inbound Marketing- includes podcast, blogs, e-books,
newsletters, whitepapers, and videos.
Content Marketing - similar to inbound marketing as
both involve the creation of great content.
Mobile Marketing - involves reaching customers
through mobile devices.
CUSTOMER RELATIONSHIP MARKETING
(CRM)
 the overall process of building and maintaining
profitable relationships by delivering superior
customer value and satisfaction.
  helps the company in gaining, maintaining and
increasing market.
Customer Value – CRM – Customer Satisfaction
Customer Value – the perception of what a product or
service is worth to a customer versus the possible
alternatives.
Customer-perceived value – process where customers
pick products, which they think offer utmost value.
Customer Satisfaction – based on the perceived
performance of the product in connection with the
expectations of the customer.
Relationship Marketing
 activities designed to manage and develop
customer loyalty and long-term customer
relationship.
 a two-way process
 seeks to build long-term relationships with
selected customers.
 A major factor in creating long-term
relationships is the provision of superior
service, beyond original customer expectations.
Feedback – process through which a customer gives
details about their experiences with the product or
service.
Follow-up – consistent follow-up creates predictable
and profitable stream of prospects and customers that
buy.
Advantages of Having Strong Relationship
Marketing
 Maintain long term relationship
 Receive referrals from potential customers
 Provide feedback
 Give competitive edge
Levels of Relationship Marketing formed from
customer interaction
Level 1: Basic Marketing – aims to persuade customers
to buy.
Level 2: Reactive Marketing – there is some effort
required to build a relationship with the customer.
Level 3: Reactive Marketing – satisfying customers
known needs by encouraging a meaningful two-way
conversation.
Level 4: Proactive Marketing – company works
continuously with its large customers to help improve
performance.
Level 5: Partnership Marketing – helps maintain
customer satisfaction level through mutually beneficial
agreement with another business.
THE IMPORTANCE OF INFORMATION, THE
MARKET CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR AND THE BASES OF
MARKET SEGMENTATION
Strategic Planning
 wide procedure that addresses the whole
business, or part of a business.
Marketing Planning
 process that staff from operational and
managerial levels work together to implement and
create effective marketing strategies.
Two Components that are essential factors in crafting
an effective Marketing Plan:
1.) Strategic Marketing – plan that marketers design in
accomplishing goals.
2.) Tactical Marketing – marketers identifying reaching
goals.
Marketing Planning Process
Marketing Goals – Strategic Marketing (The idea) –
Tactical Marketing (The action)
Strategic Marketing Planning Process:
1.) Industry Research – critical investigation aimed at
the acquisition of new knowledge and skills.
2.) Market Research – process of determining the
possible of a new service or product through research
conducted directly with potential customers.
3.) Competition – rivalry between companies selling
similar products and services with the goal of achieving
revenue, profit market share growth.
4.) Market Segmentation – process of dividing a
market of potential customers into groups or segment.
Geographic Segmentation – based on location
Demographic Segmentation – age, gender,
occupation, income
Psychographic Segmentation – buying
behavior, lifestyle, attitudes and interests.
Behavioral Segmentation
5.) Market Positioning – process of establishing the
image or identity of a brand or product.
high price
low quality high quality
low price
Tactical Marketing Planning Process – activities that
will communicate the brand in the market such as sales,
promotion, events and advertising promotions.
1.) Promotion – marketing communication used to
inform or persuade target audiences of the relative
mends of a product, service, brand or issue.
2.) Distribution – plan lays out the details of how you
plan to gets your product in the hands of your customer.
3.) Pricing Plan – any proposed fee schedule, discounts,
rebates, allowances, price concessions or other
advantages available to potential customers.
The Planning Process
1.) Analysis – analyze its environment to find attractive
opportunities and to avoid environmental threats.
2.) Planning – deciding what marketing strategies can
help the company in attaining its overall strategic
objectives.
3.) Implementation – turn strategic plans into actions.
4.) Control – measuring and evaluating the results of
plans and activities and taking corrective action to make
sure that the objectives are being achieved.
MARKETING ENVIRONMENT
 sum of all internal and external forces that
affect the way a firm operates.
Micro-Environment – forces closely influencing the
company and directly affects the organization.
1.) Company – owner’s, investors, and employees who
are all considered members of the organization.
2.) Suppliers – provide the resources that the
organization needs to produce goods and services.
3.) Marketing Intermediaries – entities that assist in
the distribution and selling of goods to customer.
Types of Marketing Intermediaries:
Wholesalers – entities buy goods from
manufacturers or producers and resell them to
retailers and other organization.
Distributors – selected by manufacturers to buy
goods for resale to retailers
Retailers – a wide range of goods which are
brought from wholesalers or distributors and
then sold directly to consumers.
Agents and Brokers – sell products for certain
commission or percentage of sales.
4.) Customers – people who are willing and are able to
buy the organizations products or services.
Types of Customers:
Consumer Market – individual and households
that buys the products for personal use.
Business Market – buy materials for
production use.
Reseller Market – buys products for reselling at
a profit.
Government Market – buys products to
provide services to the people.
Global Market – customers came from the
other countries.
5.) Competitors – rival firms that offer similar goods or
services as the organization.
Type of Competitors:
Direct – brands competing in the same industry,
offering the same goods or services.
Indirect – offer goods and services that differ
slightly but with the same benefit.
6.) Publics- have possible concerns or effect on the
ability of the company to attain goal
Macro-Environment – external environment conditions
that exist in the economy. Near to the company, has an
impact on the delivery of the products and services.
1.) Demographic – gender, age, religion, education,
civil status, geographic location, lifestyle, and race.
2.) Economic – influence of the purchasing power of the
peso on spending patterns in the context of inflation and
other economic forces that may affect the company.
3.) Socio-cultural – belief, practices, norms, customs,
and traditions that may affect business operations.
4.) Technological – development in technology.
5.) Political – groups of people which may influence the
stability of a country and affect the production,
promotion and selling of goods and services
6.) Ecological – natural factors that are needed as inputs
by marketers or that are affected by marketing activities.
IMPORTANCE OF MARKETING RESEARCH
Marketing Research is used by management to:
 help the company in making better business
decisions and gain advantages against the
competition;
 remove skepticism by providing relevant and
up-to-date information about the market
environment, and consumers;
 provide insights and assists in the creation of a
business plan, launching a new product or
service, optimizing existing products and
services, and guide expansion into new markets;
  determine which section of the population will
be most likely to purchase a product or service,
based on variables such as age, gender, location,
and income level;
 understand how consumers perceive the
products in the market; and
 identify which consumer needs are important
and if those needs are being met by current
products.
TYPES OF MARKETING RESEARCH
By Source
 Primary
o involves finding out new and first-hand
information.
o Sometimes called Field Research
 Data collected are from original source
(e.g., customers)
 Collected for specific purpose
 Usually costs more and takes time to
conduct
 Qualitative (Surveys) - Hard facts or
opinions representing larger market
groups
 Qualitative (Focus Groups, in-depth
interviews) – Opinions not
representative of larger market groups.
 Secondary Research
o using existing public sources of relevant
information.
o It is also known as Desk Research and
is basically cheaper than primary
research
 Accessing of information and data
previously collected
 Often for different purpose
 Good precursor to Primary research
(articles, newspapers, company
databases)
By Methodology
 Qualitative Research
o seeks customer opinions and views.
 Involves finding out opinions, attitudes and
feelings.
 Often more useful than quantitative data but
is more difficult to collect and analyze.
 Methods of collecting qualitative data
includes focus group and in-depth
interviews.
Focus Group - form of qualitative
research in which a group of people
are asked about their perceptions,
opinions, beliefs, and attitudes
towards a product, service, concept,
advertisement, idea, or packaging.
 Quantitative Research
o results can be expressed in numbers.
 Involves finding numerical data
 Is generally collected from large
samples and is easy to analyze.
 Methods of collecting quantitative data
includes written and online
questionnaires.
By Objectives
 Exploratory Research
o to collect initial information that will
help define the problems and suggest
hypotheses.
 Objective: Discovery of ideas and
insights
 Methods: Expert surveys, pilot surveys,
secondary data: qualitative analysis,
qualitative research
 Descriptive Research
o to describe marketing problems,
situations or markets, such as the market
potential for a product or the
demographics and attitudes of
customers.
 Objective: Describe market
characteristics and functions
 Methods: Secondary data: Quantitative
analysis, surveys, panels, observation
and other data.
 Causal (or experimental)
o to test hypotheses about cause-and-
effect relationships.
 Objective: Determine Cause and effect
relationships
 Method: Experiments
Steps in Marketing Research
1.) Define objective and problem
In determining the problem, market group may be
guided by these two (2) questions:
1. Why is there a need to conduct marketing
research?
 2. What particular gap in marketing needs to be  Summarize data using the tools provided in your
addressed? software package (typically Excel, SPSS, etc.),
2.) Determine Research Design build tables and graphs, segment your results by
Research Design – framework or blueprint in groups that make sense (i.e., age, gender, etc.),
the conduct of marketing research project. and look for the major trends in your data. Start
 defines the procedures necessary in to formulate the story you will tell
obtaining the required information. 6.) Visualize Your Data and Communicate Results
 to design a study to determine possible  marketing researchers will interpret the process
answers to the research questions, test data and come up with findings and conclusions.
the hypotheses of interest, and provide
the information needed for decision
making.
You first need to determine what market research
method to be use (will it be a survey, focus group, etc.?).
Deliberate through specifics on how you will identify
and choose your sample (Who are we going after?
Where will we find them? How will we benefit them?
etc.). It is also the time to plan where you will conduct
your research (telephone, in-person, mail, internet, etc.).
3.) Design and Prepare Research Instrument
 time to design the research tool to be use. As
determined in step 2, if a survey is the most
appropriate tool, then begin by writing
questions and designing your questionnaires. If
a focus group is your choice of instrument, start
by preparing questions and materials for the
moderator. You get the idea.
 you start executing your plan.
Involved in formulating research design:
 Secondary data analysis (based on the secondary
research)
 Qualitative research
 Methods in collecting quantitative data (survey,
observation and experimentation)
 Definition of the information needed
 Measurement and scaling procedures
 Questionnaire design
 Sampling process and sample size
 Plan of data analysis
4.) Collect your Data
 enables the generation of insights that will
influence the marketing strategy.
 you are administering your survey, running
your focus groups, conducting your interviews,
implementing your field test, etc.
5.) Analyze Your Data
 research team must secure utmost accuracy and
completeness of data to be treated and analyzed.