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Introduction to

Principles of Marketing

San Beda College


Subject Courses
 MKC01 Principles of Marketing
 MKC02 Consumer Behavior/Consumer
Research Application
 MKC03 Professional Selling and Sales
Force Management
 MKC04 Marketing Research and
Information Systems.
 MKC05 Integrated Marketing
Communications: Principles of Advertising
and Sales Promotion
 MKC06 Internet Marketing (E-
marketing/E-commerce)
 MKC07 Corporate Communications:
Public Relations
 MKC08 Distribution & Logistics
Management (Supply Chain Management)
 MKC09 Strategic Marketing Management
 MKC10 Retail Management
 Practicum – Internship in Marketing &
Corporate Communications
 MKC11 Services Marketing
 MKC12 Marketing Management / (Product
Development & Category Management)
 MKC13 Special Topics in Marketing &
Corporate Communications
 MKC14 International Marketing (Export
and Global Marketing)
 MKC15 Corporate Communications:
Direct Marketing
Marketing Jobs
Sales and Sales management
 Consumer sales/ Sales representatives/
Sales executives
 Industrial sales accounts / National account
managers
 Service support
 Sales trainers
 Sales manager
 Real estate brokers
Marketing Research
 Corporate research analyst / Research
director
 Marketing professor
 Marketing consultant
Advertising
 Copywriter
 Art director/ Production manager
 Creative Head/Creative director
 Account executives
 Media planner / Media buyers
Brand and Product Management
 Brand managers
 Assistant brand managers
 Business development officers
 Product managers
 Product category managers
 Project directors
 Marketing communications/ Corporate
communicatios head
 Publicist/ PR man
Retailing
 Store manager
 Regional manager
 Buyers/ merchandiser
 Department managers
Marketing Logistics
 Marketing distributor agents/ Logistics
manager
 Brokers/ Middle man
 Warehouse/ Plant managers
New Emerging Jobs in Marketing
 Customer relationship manager/ consumer
loyalty and rewards specialist
 Corporate social responsibility head
 Events coordinator
 Digital Marketer / E-Marketer
 Chief multi-media officer
 Blogger/Technopreneur
 Entrepreneur/ Businessman-woman
 Free lance marketer / Marketing consultant
 …….and many More!!!
Scope of Marketing
* Places * Goods
* Properties * Services
* Organizations * Experiences
* Information * Events
* Ideas * Persons
What is Marketing?
Structured-Business definition:
 A commercial processes involved in
promoting and selling and distributing a
product or service.
Simplest-Basic definition:
 The act of exchanging goods for an agreed
sum of money.
The new definition of Marketing:

“The process by which companies


create value for customers and
build strong relationships in order
to capture value from customers
in return”

- Philip Kotler
What do these Brands have in
common?
"Marketing's work should not
be so much about selling, but
about creating products that
don't need selling”

TEN DEADLY MARKETING


SINS, Philip Kotler
The Marketing Process
Understanding the Marketplace
and Customer Needs
 Market – the set of all actual and potential
buyers of a product or service
 Exchange – the act of obtaining desired
object from someone by offering
something in return
 Needs – states of felt deprivation
 Wants – the form human needs take as
shaped by culture and individual
personality
Exchange

GOODS PAYMENT

Marketer Customer
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Maslow’s Hierarchy of Needs
 Demands – human wants that are backed
by buying power
 Market offering – combination of
products, services, information, or
experiences offered to a market to satisfy a
need or a want
 Product – anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfy a need or a
want.
 Service – Any activity or benefit that one
party can offer to another that is essentially
intangible and does not result in the
ownership of anything.

 Marketing myopia – the mistake of


paying more attention to the specific
products a company offers than to the
benefits and experiences produced by these
products
Marketing Management
“The art and science of choosing
target markets and building profitable
relationships with them”

5 Marketing Management
Orientations
 1) Production Concept – the idea that
consumers will favor products that are
available and highly affordable and that the
organization should therefore focus on
improving production and distribution
efficiency.
 2) Product Concept – the idea that
consumers will favor products that offer
the most quality, performance, and features
that the organization should therefore
devote its energy to making continuous
product improvements.
 3) Societal Marketing Concept – the idea
that a company’s marketing decisions
should consider consumers’ wants , the
company’s requirements, long-run interest,
and society’s long-run interests.
 4) Selling Concept – the idea that
consumers will not buy enough of the
firms products unless it undertakes large
scale selling and promotional effort.
 5) Marketing Concept – the Marketing
Management philosophy that holds
achieving organizational goals depends on
knowing the needs and wants of target
markets and delivering the desired
satisfaction better than competitors do.
Selling vs. Marketing
Concept
Building Customer Relationships
 Customer Relationship Management – the
overall process of building and maintaining
profitable customer relationships by
delivering value and satisfaction.

 Customer-Perceived Value – the customer’s


evaluation of the difference between all the
benefits and costs of a marketing offer
relative to those of competing offers.
 Customer Value - the differences between
the values that the customer gains from
owning and using a product and the costs of
obtaining products.

Value = Benefits = (Functional + Emotional Benefits)


Cost (Monetary Costs + Time Costs +
Energy Costs + Psychic Costs)
 Customer Satisfaction – The extent to
which a product’s perceived performance in
delivering value matches a buyers
expectations.

 Quality – the characteristics of a product or


service that bear its ability to satisfy a stated
or implied customer needs.
Capturing Value from Customer
 Share of Customers – the portion of the
customer’s purchasing that a company gets
in its product categories.
 Customer lifetime value – the value of
the entire stream of purchases that the
customer would make over a lifetime of
patronage.
 Customer equity – the total combined
customer lifetime values of all of the
company’s customer
Share of customer

Sales to
your firm

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


4 Customer Relationship Groups
Fig 1.5
1. Bernacles – limited fit between
company’s offerings and customer’s
needs; low profit potential.

2. Strangers – little fit between company’s


offerings and customer’s needs ; lowest
profit potential.
3. Butterflies – good fit between company’s
offerings and customer needs; high profit
potential.

4. True Friends – good fit between


company’s offerings and customer’s
needs; highest profit potential.
Preparing an Integrated
Marketing Plan and Program

CHAPTER 2