Department of Accounting Education

Mabini Street, Tagum City

Davao del Norte
Telefax: (084) 655-9591, Local 116

Big Picture B

Week 4–5: Unit Learning Outcomes (ULO): At the end of the unit, you are
expected to:
a. Explain the basic concept of marketing.
b. Describe the consumers’ behavior and the factors that influence it.
c. Define the goals of society, social issues affecting marketing and the social
responsibilities as well as the basic rights of consumers.

Big Picture in Focus: ULOa. Explain the basic concept of marketing.

Metalanguage
For you to demonstrate ULOa, you will need to have an operational understanding
of the following terms below.
1. Marketing. It is defined as exchange activities conducted by individuals or
organizations for the purpose of satisfying human wants with the view of
accomplishing individual or organizational objectives.
2. Exchange. It refers to the trade of things or service of value between buyer
and the seller.
3. Human needs. These are things or service required by human being for
the health and well – being of his body and mind.
4. Human wants. These refer to the needs shaped by culture and individual
preferences.

Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes), you need to fully understand
the following essential knowledge laid down in the succeeding pages. Please note that you
are not limited to exclusively refer to these resources. Thus, you are expected to utilize other
books, research articles and other resources that are available in the university’s library e.g.
ebrary, search.proquest.com etc., and even online tutorial websites.

1. MARKETING
Marketing is the process of getting people interested in your company's
product or service. This happens through market research, analysis, and
understanding your ideal customer's interests. Marketing pertains to all aspects of a
business, including product development, distribution methods, sales, and
advertising.
Modern marketing began in the 1950s when people started to use more than
just print media to endorse a product. As TV -- and soon, the internet -- entered

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

households, marketers could conduct entire campaigns across multiple platforms.

And as you might expect, over the last 70 years, marketers have become
increasingly important to fine-tuning how a business sells a product to consumers to
optimize success.
In fact, the fundamental purpose of marketing is to attract consumers to your
brand through messaging. Ideally, that messaging will helpful and educational to
your target audience so you can convert consumers into leads.
Today, there are literally dozens of places one can carry out a marketing
campaign -- where does one do it in the 21st century?

Marketing Concept Vs. Other Concepts

Product Selling Marketing

Concept Concept Concept

Product Concept
The company attempts to find interested buyers after producing products.

Selling Concept
The firm produces the product then adapts a selling strategy designed to
convince a group of perceived customers.

Figure 6. The Product Concept

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Figure 7. The Selling Concept

Marketing Concept
The firm defines its target market and determine the needs, wants, and values of
the market. The firm then adapts a strategy to satisfy those needs and wants more
effectively and efficiently than its competitors.

Figure 8. The Marketing Concept

Factors of Marketing
For marketing to occur, these factors are necessary:
a. The presence of two parties with unsatisfied needs.
b. The desire and ability of the parties to be satisfied.
c. The existence of a way for parties to communicate.
d. Each party must have something to exchange.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Marketing Strategy
Marketing Strategy is an action plan designed to achieve the marketing goal.
A marketing strategy refers to a business's overall game plan for reaching
prospective consumers and turning them into customers of the products or services
the business provides. A marketing strategy contains the company’s value
proposition, key brand messaging, data on target customer demographics, and
other high-level elements.

Marketing Strategy Vs. Marketing Plan

The marketing strategy informs the marketing plan, which is a document that
details the specific types of marketing activities a company conducts and contains
timetables for rolling out various marketing initiatives.

Marketing strategies should ideally have longer lifespans than individual

marketing plans because they contain value propositions and other key elements of
a company’s brand, which generally hold consistent over the long haul. In other
words, marketing strategies cover big-picture messaging, while marketing plans
delineate the logistical details of specific campaigns.

Marketing Mix
It is the set of tools (4P’s) the firm uses to implement its marketing strategy. It
includes product, price, promotion and place.
1. Product
The tangible commodity or intangible service that the business firm
offers for sale to prospective customers.
2. Price
The amount of money paid by the customer to the selling firm so the
customer can use the product.
3. Promotion
The provision of required information to prospective customers so that
they are persuaded to buy.
4. Place
The location and time required by buyers to make the company’s
product available.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

2. THE MARKETING ENVIRONMENT

Part of external environment of the firm is the marketing environment
consisting of variables confronting the firm. The company has little or no control
over these variables consisting of social forces, economic forces, technological
forces, competitive forces, and regulatory forces.

The Business Firm

and the Marketing mix
Variables

1. Product

2. Price

3. Promotion
Marketing Environment
Variables 4. Place
1. Social forces

2. Economic
forces

3. Technological
forces

4. Competitive
forces, and

5. Regulatory
forces.

Marketing
Objective

Figure 8. The Marketing Environment

Social Forces
It includes the following:
1. Characteristics of the people.
2. Its income.
3. Its values.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Economic Forces
Forces in the economy that affect marketing such as inflation and recession.
Technological Forces
Development in existing technology that affect consumer choices.
Competitive Forces
The effect of the firm’s competitors to the firm’s strategy formation.
Regulatory Forces
Government institutions are entities that constrain, direct, and influence
decisions that the business.

3. BASIC FORMS OF COMPETITION

Pure Competition
Market situation where there are many competitors offering for sale identical
products or services. In this competition, prices of products were determined by the
market and not by any individual buyer and seller.
Monopolistic Competition
A Market situation where many sellers exist, but less than those in pure
competition, in a particular market competing with each other. Manufacturers often
promote certain features of their products, then charge higher prices.
Monopoly
A market situation where there is only single seller in a particular market. In
this competition, the government regulates the prices for some monopolies like
public utility companies (e.g., electricity and water).
Oligopoly
A market situation where a few large firms compete in a given industry. The
products sold are homogenous or identical (e.g., gasoline steel and automobiles).
Prices are set by the oligopolist in collusion with one another.

Self-Help: You can also refer to the sources below to help

you further
*Medina, R. (2013). Principles of marketing. Manila, Philippines: Rex Book
Store.
*Kotler, P. (2016). Principles of Marketing. Singapore: Pearson Education ; South
Asia P&E Ltd.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Let’s Check
Questions:
1. Do you consider marketing important as an human activity? Why or why not?

2. What happens when the business firm fails to sell its products?

3. What is a marketing concept?

4. What internal and external factors affect the marketing activities of the firm?

5. What variables are included in marketing mix?

6. What are included in the term “Product”?

7. What does the firm do when it emphasizes “the place” in the marketing mix?

8. How does recession affect marketing?

9. What are the basic forms of competition?

10. What basic form of competition is most conducive to the use of the marketing
mix?

Let’s Analyze
Questions:
1. Do you believe that prices should reflect the value that the customers are
willing to pay or should prices primarily reflect the cost involved in marketing
a product or service? Defend your answer.
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2. How do goods and services differ? Discuss marketing implications of service

characteristics and use examples.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

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In A Nutshell
Questions:
1. Define customer satisfaction. What are important considerations for marketing
managers when trying to achieve customer satisfaction?
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2. Satisfaction of consumer needs and wants is the focal point of the marketing
philosophy and the customer is considered to be king.’ Comment on this
statement and highlight the importance of the marketing philosophy to modern
business organizations.
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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Q&A Lists
Do you have any questions?

Issues/ Questions Answers

Keyword Index
Exchange Monopolistic Competition

Human Needs Monopoly

Human Wants Olipopoly

Marketing Product Concept

Marketing Concept Pure Competition

Marketing Plan Selling Concept

Marketing Strategy