PRINCIPLES OF MARKETING

Marketing involves four key elements: product, price, place, and

promotion. A product is what a company offers to meet customer
needs. Price is the cost at which it's sold, place refers to
distribution channels, and promotion involves strategies to inform
and persuade customers. All these elements are combined in a
comprehensive marketing plan, which aims to inform customers,
encourage them to try the product, and build their brand loyalty.
A product is something offered to a market to satisfy
a want or need. Products can be tangible or
intangible. Major product categories include goods,
services, and ideas. Products can also encompass
events, places, or organizations. Sometimes,
products are bundled with complementary services,
like training for technical equipment.
Services refer not only to intangible goods
and complementary actions attached to a
tangible product, but also activities, benefits,
or satisfactions offered which are intangible
in nature, such as banking, airline services,
hotel services, retail services, and wireless
communication services.
Also known as a generic product, this is the fundamental reason why a customer buys a
product, addressing the basic need it fulfills. For example, toothpaste's core product is teeth
cleaning.

This level includes the tangible features and attributes of the product that make it functional
and usable, such as the ingredients in toothpaste and its packaging.

Additional features and benefits beyond the basic functionality are added to make the product
more appealing to customers. For instance, toothpaste with added mint for fresh breath.
This involves making further changes to meet changing customer needs, such
as addressing tooth sensitivity or offering different flavors in toothpaste.

This level looks to the future and envisions new features or uses for the product
based on emerging trends and innovations.
Consumer products are intended for personal use and
include convenience products (frequently purchased
items), shopping products (less frequent purchases
requiring comparison), specialty products (unique and
often expensive items), and unsought products
(products not actively sought by consumers but
marketed aggressively).
Industrial products are used by businesses for various
purposes, such as raw materials (used to create new
products), finished products (end products that are
ready for sale and use), equipment (machines and tools
used in manufacturing and services), and supplies
(products necessary for daily business operations).
1. Give examples of the following types of consumer
products. Complete the table below with your answers.

Convenience products
Shopping products
Speciality products
Unsought products
2. Give examples of the following types of industrial
products. Write your answers in the table below.
Raw materials
Equipment
Supplies

3. What makes consumer products and industrial

products different from each other?
• Firms do not produce or sell only one or a few
products. Manufacturers often produce several
related products which they group together as a
product line, intended to meet the varied needs of
its customers. Retailers also carry several related
products so that customers can have options to
choose from when purchasing products.
• Product assortment encompasses the range of
products a firm offers, including:
-Breadth (number of product lines)
-Length (number of products in each line)
-Depth (variety within a line)
-Consistency (relatedness among lines).
PACKAGING is the process through which products are
enclosed in a container, wrapper, or a similar medium.
Packaging helps protect the product and prolong its
shelf life. It can also guarantee customers easy use of the
product. For example, cheese spread in a sachet with a
resealable cap can be considered easy to use.
LABELING involves providing crucial information about a product on its
packaging, including the brand, quantity, primary use, and, in the case of
food products, manufacturing and expiry dates, as well as nutritional content.
Some labels may also mention additional features or warnings. Clear and
accurate labeling is essential as consumers heavily rely on this information
when deciding to purchase a product, and manufacturers should
avoid misleading labeling to maintain consumer trust.
Branding is a crucial strategy for
companies to make their products easily
recognizable and encourage consumer
purchases. It involves elements like logos,
symbols, catchphrases, and narratives.
Some brands have a common sound or
letter, like the "K sound phenomenon."
Companies may merge for cost-efficiency and market expansion,
and dual branding involves marketing two brands together. Multi-
branding involves selling multiple brands simultaneously. Retailers
often have private label brands that compete with national brands,
offering cheaper alternatives. Successful branding strategies foster
brand loyalty and market differentiation.
• Modify or add features to products to improve the quality
and enhance the benefits derived from them

• Reposition products by changing the price and intensifying

its promotion

• Promotion may focus mainly on the improvements on the

product or may also associate the product wi social causes
such as green marketing
New products are developed for various reasons. One is the
dissatisfaction with existing products' performance in meeting customer
needs, leading a company to consider replacing them. Another reason
is to pioneer a new product that addresses unmet customer needs. The
process of developing new products involves several stages, including
idea generation, idea screening, project planning, product development,
test marketing, and finally, commercialization.
New product ideas can come from internal sources such as employees and
salespeople who have market insights. Competitors, trade shows, social media, and
the internet are also sources of ideas.

A careful screening process is necessary to avoid costly mistakes. Ideas that pass this
stage are deemed viable and are considered for further development.

This stage involves conceptualizing the product, estimating costs, revenue projections,
and other contingencies to ensure the product's success.
The idea is transformed into a tangible product. Prototypes are often created and
rigorously tested to ensure performance and advantages over competitors.

Small quantities of the product are tested in specific markets to gauge consumer
acceptance. This stage provides assurance of market viability.

The final decision to launch the product is made. Timing is crucial; launching ahead of
competitors provides advantages, while launching after competitors may result in
disadvantages. Early launches allow for improvements if defects are discovered.
 Upon launching on the market, the product starts to go
through the product life cycle (PLC) This period
encompasses its first promotion up to the time that it is no
longer sold to customers The product life cycle is composed
of four stages-introduction, growth, maturity, and decine
The illustration below presents these stages with the bell
curve indicating the sales performance of à product.
Irregularities can occur in the typical product life cycle,
particularly in the case of fads. Fads are products that
experience a sudden surge in demand but then quickly decline.

Sometimes, companies attempt to prevent a decline in product

sales and intervene to restore satisfactory performance. In such
cases, the product's life cycle is depicted as a scallop bell curve,
characterized by the connection of multiple curves.
At which stage of their product life cycles do you think the following products are in?
Write your answer and provide an explanation in the spaces provided.

Product Stage Explanation

Blu-ray player

Play Station 4

Samsung phones

Coca Cola

iPod
Everett Rogers' Diffusion of Innovations theory
explains how new ideas and technology
become popular among people. In marketing,
there are five types of adopters: innovators,
early adopters, early majority, late majority,
and laggards, describing how customers accept
a new product in the market.
INNOVATORS: These are the first to try a new product, even if it's expensive. They
are adventurous and intrigued by new features or concepts.

EARLY ADOPTERS: They follow the innovators and try the product once it has
positive feedback. They are influenced by recommendations and are less
adventurous than innovators.

EARLY MAJORITY: These consumers wait for practicality and proven quality before
buying. Price reductions may not be necessary for them to adopt the product.
LATE MAJORITY: They join the majority of the
population in accepting the product when it becomes
widely popular and somewhat cheaper.

LAGGARDS: These individuals are the hardest to

reach. They may only buy a product when it's
absolutely necessary or when it's very affordable. They
are often seniors or in lower socio-economic classes.
Possible marketing strategies for products differ in each stage of
their life cycle. These strategies may differ in terms of their
objectives, their extent, and for how long they are implemented.
These strategies are tailored to the specific challenges and
opportunities that arise at each stage of a product's life cycle,
helping companies adapt to changing market dynamics and
customer preferences.
Products at the introductory stage can be marketed through informative advertising as well
as sales promotions and support. Informative advertising focuses on describing the features
and benefits of the product. Sales promotions and support help further market the product
through various means such lower pricing than those of competing products. However, it
must be ensured that the revenue and profit to be gained still cover the total cost of
production. The product can still be priced higher if it can be considered unique and other
companies are still developing products to compete with it.
At the growth stage, products can be marketed through persuasive advertising and
additional sales promotion and support. Persuasive advertising highlights the features of
the product that give it an edge over its competitors. Additional sales promotion and
support can help reinforce the performance of the product in stores and other distribution
channels. These strategies help attract more customers to buy the product and to reach
price stability. This is a condition where the price of a product does not suddenly increase
or decrease.
At the maturity stage, marketing a product may not be as intensive us in the previous
stages, but companies aim to maintain their hold on their target markets. Products may
be marketed mainly through reminder advertising which reinforces the presence of the
product in the market. Sales promotions during this stage may also be minimized.
However, firms need to he wary of the product's possible decline in the future and
should already introduce improvements and additional content.
Finally, at the decline stage, firms can try to improve the sales performance of
the products by lowering the price to regain customers' interest. If this does
not work, companies may need to prepare for its ultimate demise. They may
also need to consider replacing the product with a new one.
DIRECTIONS: Read each scenario carefully.
Decide which stage of the product life cycle is best
illustrated, and what marketing strategies can be
applied in each situation. Briefly explain your
answer by citing factors such as competitors and
product benefits or features.
SCENARIO 1
One of the largest food manufacturers in Davao is attempting to
develop a carbonated drink product. According to the firm, what
makes it different from other carbonated drinks is that it comes in a self-
cooling container. The firm claims that this innovation solves the
problem of cold drinks immediately becoming warm. This problem, the
company claims, leads to dissatisfaction on the part of the customers.
a. Stage of the Product Life Cycle:
b. Appropriate strategy and explanation:
SCENARIO 2
llestreque Pharmaceutical Corporation has recently launched its
Herbalaya Hot and Fast Pain Relieving Ointment. The firm wants to
further promote the product as the only pain relieving ointment with
moisturizing properties. The firm also aims to gain a stronger influence
over the steadily growing market for personal health care products.
a. Stage of the Product Life Cycle:
b. Appropriate strategy and explanation:
Companies offer both tangible products and
intangible services to customers. Some provide
pure services, like salons, carwashes, and hotels,
while others primarily sell products but include
service aspects, such as warranties and
installation services, like technology companies.
Customer experience encompasses all interactions between a
customer and a company, starting from awareness of a product or
service to its delivery and issue resolution. It extends to the customer's
perception of the company. Prioritizing customer experience ensures
overall customer satisfaction in purchasing products and services. It
acknowledges the importance of every touchpoint in shaping
customers' perceptions and loyalty to a company.
Services are intangible since they cannot be seen, tasted, felt, heard, or smelled
before they are purchased. An example would be the services rendered by a dentist.
Upon paying for tooth extraction services, you cannot see its result until the service is
done.

Services are produced and consumed at the same time and cannot be
separated from their providers. The service provider and the service itself are
thus considered one entity.
Some employees may be highly efficient and hospitable, while some may be slow-
moving and unpleasant towards customers. This may cause differences in the service
being delivered. Some customers may find that their requests and orders are fulfilled
slowly, or perhaps not at all, while others find that the services are rendered quickly.

This means that the service cannot be stored for later sale or use.
Perishability can become a challenge when the demand for a service
fluctuates.
DIRECTIONS: Form groups of six members each. Select
a particular service provided by a local business or a
popular establishment and present a skit showing the
nature and characteristics of that service. After the
presentations, discuss the following questions.
Discussion Questions:
1. What makes services different from products? What is the
importance of understanding this difference between the two?

2. Among the characteristics of the services that you presented,

which do you think is the most important?Explain your answer.

3. What is the importance of understanding the characteristics of

services in enhancing customer experience?
Examine the following scenario and provide a proposal to improve the
customer experience provided by the firm.

Rizal Plumbing, a plumbing company in a barangay in Davao City, has

been in service for more than a year. While the firm is one of the first
plumbing service companies in the community, it has also received
complaints regarding its services. The following are the present features
of and observations about the company's services:
RIZAL PLUMBING: CURRENT SERVICES AND FEEDBACK

1. Appliance installation work

2. Plumbing work
3. Electrical work
4. Customer time
5. Need for coordination among the employees in delivering the service
6. Cost uncertainty when customers get a quotation for work
Analyze the features and observations above. Based on
these, how can the company improve its plumbing
services for a satisfactory customer experience? Write
your answer on the space provided and discuss your
answers in class.
• Products are goods that businesses sell to customers to satisfy their needs
or wants. There are five levels of a product-core or generic, actual,
extended, modified, and potent

• Products are mainly classified as either consumer or industrial, Consumer

products and for the customers' personal use, while industrial products
are used in the creation of products or the daily operations of businesses.

• Companies come up with several product lines and strategies in product

assortment to provide customers with different options to choose from.
• Packaging and labeling help customers learn more about the features
and benefits of a product, while branding helps make a product distinct
from its competition.
• The process of new product development is composed of six stages-idea
generation, idea screening, project planning, product development, test
marketing, and commercialization
• The product life cycle encompasses the time that a product is first brought
to the market up to the time that it is no longer sold to customers. It
consists of four stages-introduction growth, maturity, and decline.
Marketing strategies also vary according to the stage of the life cycle,
which may include advertising and other forms of sales support.
• When existing products fail to satisfy customers and perform well on the
market. companies may opt to modify the features of their products.
Companies may also try ta lower the price of the product or promote
them further.

• Services, unlike products, are intangible offerings that companies or firms

provide to customers. Aside from intangibility, services are distinguished
through specific characteristics such as inseparability, variability, and
perishability.
Group 1 (OENOPIDES) Members:
B1-BERMUDO
B2-CLARETE
B3-DIANELA
B4-GONZAGA