PRINCIPLES OF MARKETING

LESSON 1: MARKETING PRINCIPLES AND
STRATEGIES
Marketing- It is the activity, set of institutions, and
processes for creating, communicating, delivering, and
exchanging offers that have value for customers, clients,
partners, and society at large (American Marketing
Association).
What can be marketed?
 Goods- tangible products such as food, clothing,
toys, and furniture.
 Services- are activities, benefits, or satisfaction
that are offered for sale.
 Events- Marketers promote time-based events,
such as trade shows, and artistic performances.
 Experiences- A firm can create and market
experiences.
 Person- Some people have done a masterful job
of marketing themselves.
 Place- places that can attract tourists and
residents.
Price- This is the set amount customers have to pay to
purchase a product.
Pricing Approaches:
1. Cost-based pricing
2. Perceived value pricing
3. Competitive pricing
Place- A channel of distribution through which a
product reaches its target customers.
2 distribution channels:
1. Retailing
2. Wholesaling
Promotion- A marketing communication used to
inform, persuade, and aim to increase awareness and
even create brand loyalty. It includes advertising,
personal selling, sales promotion, and Direct Marketing.
Marketing Goals- Marketing goals are the specific
objectives that a company aims to achieve through its
marketing activities.

Marketing Principles- Marketing principles refer to the Common Goals of Marketing

fundamental guidelines that businesses use to create,
promote, and deliver their products or services to  Building Brand Awareness
customers.  Understanding Consumer Behavior
 Build and Manage customer Relationships
Core Concepts in Marketing
Goals
 Needs, Wants, Demands
 Market Segmentation, Target Market,  Specific
Positioning  Measurable
 Offerings & Brands, Value, Satisfaction  Attainable
 Realistic
Marketing Mix  Timely
 Product Marketing Approaches- Marketing approaches refer to
 Price the different strategies or tactics that businesses use to
 Place achieve their marketing goals.
 Promotion
Traditional Marketing Approaches
 People
 Process  Product orientation- It is the idea that
 Physical Evidence consumers will favor products that are available
or highly affordable.
Product- This refers to the goods or services that a
 Selling Orientation- This is the idea that
company offers to its customers
consumers will not buy enough of the firm’s
Levels of product: products unless it undertakes a large-scale
selling and promotion effort.
1. Core product
 Marketing Orientation- It is the idea that
2. Actual product
achieving organizational goals depends on
3. Augmented product
knowing the needs and wants of the target
C, R.P.
 PRINCIPLES OF MARKETING
markets and delivering the desired satisfactions  Delighting customers
better than competitors do.
Nine Relationship Marketing Strategies and Tools
 Societal Marketing Orientation- This is the
idea that a company should make good 1. Networking
marketing decisions by considering consumers’ 2. Cherish Each Customer
wants, the company’s requirements, consumers’ 3. Listen to Your Customers
long-term interests, and society’s long-run 4. Build a Brand Identity
interests. 5. Give Your Customer Free Information
6. Loyalty Rewards
Contemporary Marketing Approaches
7. Communicate Often
 Digital Marketing- Promoting products and 8. Special Events
services using a variety of digital strategy tools 9. Face-To-Face Time
like online channels, electronic devices, and
Customer relationship management
digital technologies to engage and connect with
a larger audience.  This is the process of identifying prospective
 Online Marketing- It uses the internet to buyers, understanding them intimately, and
deliver promotional marketing messages to developing favorable long-term perceptions of
consumers. the organization and its offerings so that buyers
 Outdoor Promotion- Advertising done will choose them in the marketplace.
outdoors that displays your promotional
materials.
 Mobile marketing- It is placed on modes of
public transportation or in public transportation
areas. It includes ads placed on the inside or
outside of buses, trains, taxis, and other mobile
devices.
 Sachet Marketing- This involves redesigning,
packaging, and selling a product in small
packages.
LESSON 2: RELATIONSHIP MARKETING
Relationship Marketing- It is simply building and
managing relationships. It focuses on value-creating
processes. The two key elements of relationship
marketing are promise and trust. Customer value- A unique combination of benefits
received by targeted buyers that include quality, price,
Relationship-Marketing convenience, on-time delivery, and both before and
after-sale- service.
 includes activities aimed at developing and
managing trusting and long-term relationships Alternative ways of creating value:
with larger customers.
 Increase the benefits
 a strategy designed to foster customer loyalty,
 Best price
interaction, and long-term engagement.
 Best product
 designed to develop strong connections with
 Best service
customers.
 Reducing the sacrifice
Top 4 Best Relationship Marketing Examples
Customer satisfaction- When buying a product, there is
 Attracting customers a level of expectation as to how that product satisfies the
 Converting customers buyer's preferences.
 Retaining customers
C, R.P.
 PRINCIPLES OF MARKETING
LESSON 3: MARKET OPPORTUNITY ANALYSIS
AND CONSUMER ANALYSIS
Planning

 It is deciding in advance what to do, how to do it

when to do it, and who is to do it. Planning is
simply a rational approach to accomplishing an
objective.
 It bridges the gap between where we are &
where we want to go. The Marketing Environment
Strategic Planning Marketing Environment- “A company’s marketing
environment consists of the internal factors & forces,
 It is a stream of decisions and actions that lead
which affect the company’s ability to develop &
to effective strategies and which, in turn, help
maintain successful transactions & relationships with the
the firm to achieve its objectives.
company’s target customers”. ~Philip Kotler
 It is the art of creating specific business
strategies, implementing them, and evaluating Micro-environment Macro-environment
the results of executing the plan, regarding a The Microenvironment The Macro-environment
company’s overall long-term goals or desires. consists of the consists of the bigger
 It is important for organizations so they can have components close to the factors that are beyond
a long-term vision for the company. It maps out company that directly the control of the
the goals of the company in the long run and it affect its ability to management.
details where the management wants to lead the maintain its position in
the market and its
company in the future.
capacity to serve its
Strategy- Strategy defines the desired goals and why a customers.
company should go about achieving them.  Company  Demographic
management environment
Tactics- Tactics are specific actions to be taken in  Suppliers  Economic
implementing a strategy.  Marketing environment
intermediaries  Natural
 Customers environment
 Competitors  Technological
 Public  Political
Tactical Planning environment
 Cultural
 It is short-range planning that emphasizes the
current operations of various parts of the
organization.
Components of Strategic Planning Process

 Conducting a Situation Analysis PEST Analysis

 Developing the Mission Statement
 PEST (political, economic, sociocultural, and
 Developing Objectives
technological) analysis mostly covers the macro
 Formulating Strategies
environment of marketing. It helps a company
The Strategic Planning Process identify opportunities and threats in four major
areas, or reveal the direction of change within
the business environment.
Political  When is the
country’s
C, R.P.
 PRINCIPLES OF MARKETING
election? How  Data collection
can this impact  Interpreting the data
the business?  Reporting the research findings
Economic  How stable is the
current Identify the Research Problem and Objectives
economy? Is it
growing,  A research problem can be an issue to be
stagnating, or resolved, a challenge to be addressed, a
declining? difficulty to be eliminated, or an area of concern
Sociocultural  How would for the company.
attitude shifts  The objective expresses the specific goals that
affect industry the research wants to achieve. This will serve as
sales? (e.g., the guide throughout conducting the research. It
customers’ usually dictates the type of research that you are
preference for going to do.
healthy choices)?
Technological  Do its Developing the Research Design
competitors have
access to new  Guided by the research objectives and knowing
technologies that what information is already available, the
can improve their researcher can now proceed to gather
competitive information specific to the research goals that
advantage? have been set.
 The researcher now has to determine the
research approach, sampling plan, and research
Porter’s Five Forces Analysis
instruments.
 Michael Porter, a professor at Harvard
Research approach
University, developed Porter’s five forces
analysis to analyze the level of competition in an  Quali
industry. It focuses on the microenvironment  Quanti
factors and measures how intense the  Mixed-method
competition is and how attractive the industry is.
1. Rivalry among existing competitors Sampling Plan
2. Threat of substitute products
 Probability Sampling
3. Threat of new entrants
 Non-Probability Sampling
4. Bargaining power of buyers
5. Bargaining power of suppliers Research Instrument
Market Research- To understand the market  Discussion Guide
environment, marketers must embark on a process of  Survey Questionnaire
collecting, understanding, and analyzing data, through
market research. Data Collection

Collecting Marketing Information
 Marketing Intelligence
 Internal data
 Market research/Data Sources
Research process
 Determining the research problem/objective
 Developing the research design
Data Analysis
 Once the research objective has been set, as a
researcher you can gather secondary data from
available credible sources like books,
newspapers, online and printed articles, and
government publications
 If you need more data that you cannot find from
secondary data sources then, the researcher must
collect primary data.
C, R.P.
 PRINCIPLES OF MARKETING
 After data collection, the next step is data
analysis and interpretation, where conclusions
will be based. The purpose of analysis and
interpretation is to transform the data collected
into information that will be useful in addressing
the research problem.
Data Reporting
 The research report is a formal, written
document submitted to the top management or
the office that requested for the research for the
research to be done. These decision-makers
often need accurate, detailed but concise
information; thus, as a researcher, you must
determine how much detail and supporting data
are needed for these decision-makers.
Consumer and Business Market
Consumer Market Business Market
The consumer market It is composed of
consists of individualscompanies or individuals
who purchase and avail who purchase and avail
of the product and of products and services
services for personal or
to resell to endbuyers or
household use. to help produce their
products and services.
What is Consumer Behavior?
 Consumer Behavior is the study of how people
make decisions about what they buy, want, need,
or act regarding a product, service, or company.
It is critical to understand consumer behavior to
know how potential customers will respond to a
new product or service.
Consumer Buying Behavior
 A customer begins the journey of purchase by
identifying their need to be satisfied.
 Need identification and the buying process both
involve internal processes, unseen by others and
many times, unconsciously made by consumers.
Three Factors That Affect Consumer Behavior
1. Psychological Factors – Psychological factors
can include the perception of a need or situation,
the person’s ability to learn or understand
information, and an individual’s attitude.
2. Personal Factors - Personal factors are
characteristics that are specific to a person and
may not relate to other people within the same
group.
3. Social Factors - Social influencers are quite
diverse and can include a person’s family, social
interactions, work and school communities, or
any group of people a person is affiliated with.
Identifying consumer buying needs
 Every purchase starts with a perception of a
problem or a need. This recognition is activated
by factors from within the individual (internal)
or from the external environment.
Consumer decision-making
 High involvement behavior. For purchases that
are seen as interesting, important, or considered
as high risk.
 Low involvement behavior is seen when
customers express little interest in the product
and the purchase decision process.
 Examples are habitual purchases of rice, sugar,
etc.
External Consumer Buying Behavior
1. Marketing Mix
2. Economic Environment
3. Political environment
4. Cultural Environment
5. Social Environment
Internal Consumer Buying Behavior
1. Personal characteristics
2. Psychological factors
Business Buying Behavior
Identifying business buying needs
 Organizations have different needs in
purchasing goods and services. Some have a
direct need for specific products to supply
their operations or as part of the company’s
end product.
External Business Buying Influence
 The external environment that surrounds the
organization including economic, political,
sociocultural, natural, and competitive
situations, affects their buying behavior.
Internal Business Buying Influence
C, R.P.
 PRINCIPLES OF MARKETING
 The internal factors include the organization - Usually employed by fast-moving goods like
itself and the participants in the process. The laundry detergents.
organization, its plans, structures, and
Differentiated Marketing
processes influence the organizational need
and their buying behavior. - When the market is segmented based on factors
Market Segmentation, Targeting, and Positioning such as demographics, lifestyle, and behavior,
(STP) marketers then develop a marketing plan specific
to the needs of each of these segments.
Market Segmentation- When you divide the market - Example: skincare products: acne-control,
into smaller groups composed of individuals with similar whitening, anti-aging.
requirements or identifiable characteristics.
Market Positioning
Market Segmentation is based on any of the following
factors: - Product positioning is when customers create a
definition and a meaning to the product about
1. Lifestyle or Psychographics- The activities, competing products in the category.
interests, and personalities of customers can be
another way of creating different segments 3 steps in identifying a positioning and differentiation
2. Behavior- Individuals can be segmented based strategy:
on the occasion of purchase or usage of products 1. Identify competitive advantage
and services. 2. Choose the most valuable competitive
advantage
3. Creating the positioning statement
 “To (target segment and needs), our (brand)
Target Market is (concept) that (point a difference).
 Example: To women who want soft, smooth,
- The group that marketers choose to be their and easy-to-comb hair, our Brand X is a
customers. Evaluating which market to target deep conditioning shampoo that has coconut
considers many factors that work together to oil essence for deep and lasting
provide the most ideal segment for the product. conditioning, making hair noticeably
beautiful.
Some of the factors we need to consider include the
following:
1. Size of the segment, whether it is substantial or
growing in quantity.
2. Identifiable groups can be recognized based on
characteristics or commonalities and, can be
pursued by the marketers.
3. The viability of attracting, engaging, and serving
the segment is also worth considering.
4. The consistency of the proposed target market
with the company’s overall goals, vision,
resources, and image of the product.
Mass Marketing

- When marketers decide not to choose a specific

segment, and instead develop and offer the
product for a sizeable number of customers,
serving the needs of the majority.

C, R.P.