PRINCIPLES OF MARKETING

MARKETING CONCEPTS
OBJECTIVES
• Understand the relationships of needs, wants,
and demands
• Identify the steps in the Marketing Process
• Describe the Traditional Approaches to Marketing
• Identify and explain the Contemporary Marketing
Approaches
Is BUDOL a Marketing
Strategy?
REVIEW!
• MARKETING is communicating, delivering
and creating value for the customer.
• Today, marketers find ways to “Engage
customers and build deep customer
relationships.”
• Every Marketing Strategy or activity is
anchored on CONCEPT or ORIENTATION.
WHAT IS A CONCEPT?
A CONCEPT is a general notion
or idea about the subject.

Marketing Concepts are directly related to the NEEDS, WANTS and

DEMANDS of the customer.
Needs, Wants, Demands
In Marketing, needs and wants are
always considered in offering a
product to the market. On the
other hand, demand is considered
when discussing sales projection.
What are needs, wants, and
demands.
What is a NEED?
• A need is a basic human requirement to live.
• In marketing context, a need is defined as a state of felt
deprivation. When you are hungry, you have a need a for
food. Your hunger may drive you to purchase food
because of a felt need.
• Abraham Maslow developed a theory called the hierarchy
of needs, which proposes that
people are motivated to achieve certain needs, and
some needs are prioritized over others.
MASLOW’S HIERARCHY OF NEEDS
The general types of needs in Maslow’s
hierarchy include the following:

1. PHYSIOLOGICAL NEEDS – These are the basic needs for survival. The
human body will not be able to function normally if these are not met.
These include air, water, food, shelter, and clothing.
2. SAFETY NEEDS – People need to feel secure once they satisfy their basic
needs. Security can take different forms such as the following:
• PERSONAL SECURITY – This refers to living in a community that is free from crime and
violence.
• FINANCIAL SECURITY – This characterized by job security and financial freedom.
• HEALTH – This pertains to being free from sickness and having a healthy body.
• ASSURANCE – This can be in the form of health/life insurance that provides security
should an accident or death occur.
3. SOCIAL NEEDS (love and belonging needs) – As the saying
goes, no man is an island. Human beings are social beings; thus
they need to feel a sense of belongingness and form
relationships with other people. Having strong ties with your
family, friends, and social groups satisfies this need.
4. ESTEEM NEEDS – People need to feel respected and
confident about themselves. The need to be accepted by
others is important to people.
4. SELF-ACTUALIZATION – This level refers to the need that
drives people to maximize their full potential as human beings
and to actually work hard to realize their dreams
What is a WANT?
• A WANT is not essential for basic survival and often
shaped by culture.
• When needs are shaped by culture and individual
personality, they become wants. If you are hungry and
you choose to eat pizza and pasta, then you are
satisfying a want. Different persons may have the same
need but will have different want.
• MARKETING PLAYS A ROLE IN SHAPING PEOPLE’S
WANTS.
What is DEMAND?
• Demands are wants that are backed with the
buying power. When people have money to pay
for their wants, they become part of the demand
for that product.
The Marketing Process
 1. Analyze the marketplace and understand customer
needs and wants. This ensures that what you will be
offering to the market is something that will be of value to
the customers. In doing so, you are able to design a market
offering that is timely and relevant to the market.
2. Design a customer-driven marketing strategy (7P`s). A
marketing strategy involves the use of the 7P’s.

The 3. Formulate an effective marketing program. A good

marketing program builds demand and creates awareness
for new products. It picks customer interested and make
Marketing sure that consumers understand the product`s benefits
through the marketing communication materials that are
implemented through different marketing channels. A good
Process marketing program also has the capacity to maintain
consumer interest and renew consumer demand for mature
products, or those products that have been in the market
for a long time already.
4. Build profitable relationships and establish customer
loyalty.
5. Capture value from customers to earn profits in
exchange for value created for customers.
 Marketing
Approaches
Traditional Marketing

• It is not only one of the oldest forms of

marketing, but also one of the most
researched. Marketers lean towards this
method because it’s tried and true. Everyone
encounters some sort of traditional marketing
in their everyday lives, whether it’s getting the
mail or your daily newspaper.
• Traditional marketing plays an important part
in reaching local audiences. Ads can be kept for
a long period of time if they’re physical. Plus,
there’s an audience who’s easier to reach
through traditional marketing than online
marketing
Digital Marketing

• Digital marketing is any

marketing a company conducts
online, such as paid social media
ads, email marketing, and PPC
(Pay-Per-Click) advertising.
Digital marketing has become
wildly popular due to the
cultural, technological, and
societal shifts around us.
Contemporary Marketing

• The CONTEMPORARY APPROACHES in marketing followed by

leading organizations include Relationship Marketing, Industrial
Marketing, and Social Marketing.
• RELATIONSHIP MARKETING helps organizations to maintain
healthy relationship with their customer.
• INDUSTRIAL MARKETING is a B2B (business-to-business) process. It
helps businesses to frame strategies that serve the needs of
corporate customers.
• SOCIAL MARKETING is the newest among the marketing
approaches that serves an organization with effective techniques
and tools to reach specific goals
The Evolution of Marketing Concept

TRADITIONAL CONTEMPORARY
APPROACHES APPROACHES
Production Orientation Market Orientation and the
and Sales Orientation incorporation of Corporate
Social Responsibility (CSR)
Different Marketing Approaches

Production Sales Market

Orientation Orientation Orientation
Era Mid-19th century First half of the 1950s and
to the turn of 20th century onward
the 20th century
Focus Offer a superior, Sell, sell, sell. Develop a
innovative Use aggressive product that
product. selling, caters to the
advertising, and needs and wants
distribution of consumers.
tactics.
“Marketing concepts are the basis
of an organization to design and
carry out their marketing
strategies.”
 The TRADITIONAL APPROACHES to
MARKETING:

1. The Production Concept

• The oldest marketing concept in business extremely
popular when the market is not that competitive.
• A production concept is when a customer buys a
product that are inexpensive, affordable and widely
available.
• Focuses on production and not marketing
• Focuses on the internal potentials of the company
and not based on the desires and needs of the
market.
• Production efficiency, low price
2. Product Concept
• Focuses more on quality, performance and innovation.
• Product concept is when a business satisfy customer
needs through product development.
• Assumes that customers will always prefer and
patronize products of high quality.
• Innovation, product development
3. Selling Concept
• Focuses on the increase of sales whether the customer
needs it or not.
• Emphasizes the aggressive selling and promotional
efforts.
• Sales driven and persuasion skills
 The CONTEMPORARY APPROACHES to
MARKETING:

1. Marketing Concept
• Focuses more on the customers in finding out ways to
have products that will satisfy their needs and wants while
at the same time accomplishing the organizational goals.
• It is also known as PULL STRATEGY meaning business are
so powerful. Customer will always return and buy more.
• The objective is to provide a solution to the customer’s
actual or perceived problem.
• Customer centered
2. The Relationship Marketing Concept
• Believes that all marketing activities are for the
purpose of establishing, maintaining and
strengthening meaningful long-term relationships with
customers.
3. Societal Marketing Concept
• It is all about the development of human and society’s
welfare.
• Beyond providing solutions to customers, the societal
marketing concept goes further to include
considerations that protect the customers’ well-being
and interest, as well as the interests of the
environment and society.
• Society and customer-centered
Corporate Social Responsibility (CSR)

• Corporate social responsibility is a business model by

which companies make a concerted effort to operate in
ways that enhance rather than degrade society and the
environment.
• CSR helps both improve various aspects of society as well
as promote a positive brand image of companies.
• Corporate responsibility programs are also a great way to
raise morale in the workplace.
EXAMPLES

• Improving labor policies.

• Participating in fairtrade.
• Sponsoring Charitable Matching Programs
• Community and virtual volunteering.
• Corporate policies that benefit the environment.
(Strengthening Business Ethics Programs)
• Giving Back to the Local Community
PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY
- Dr. Archie B. Caroroll’s
Economic Responsibility
(Be Profitable)
• Economic responsibility focuses on practices that
facilitate the long-term growth of the business, while
also meeting the standards set for legal, ethical, and
philanthropic practices.
• Making profit is the most basic responsibility of a
company to its stakeholders and the society. When a
company is profitable, it creates jobs for the
community and contributes useful products for the
good of the society.
Legal Responsibility
(Obey the Law)
• This refers to a company’s legal obligation to adhere to
all relevant laws and regulations.
• This includes compliance with employment laws, tax
regulations, employee health and safety obligations, and
laws regulating anti-competitive conduct. It’s all about
operating in a way that promotes fair business practices
on a national, regional, and local level.
Ethical Responsibility
(Be ethically responsible)
• This is all about doing the right thing, being fair and
avoiding harm. Unlike the first two layers of Carroll’s CSR
pyramid which are all about legal and shareholder
obligations, this layer is more concerned with morals and
ethics.
• Examples of ethical responsibility include being
environmentally friendly, treating employees and
suppliers in line with an ethical code of conduct, and
embracing activities and standards that go beyond legal
compliance.
Philanthropic Responsibility
(Be a good corporate citizen)

• This level is all about giving back to the community,

exceeding the expectations of shareholders and
stakeholders, and going the extra mile to make the world
a better place. It goes beyond doing what’s right; it’s
about standing by your values and principles as a
company and giving back something of value to society.
• This might be in the form of donations, volunteer work,
or community development, among other philanthropic
initiatives.
ACTIVITY
• Answer the questions below.

1. Why is contemporary marketing more

sustainable than traditional marketing?
2. Identify and explain the differences and
similarities between traditional and
contemporary marketing using the Venn
Diagram.
THANK YOU!