PRINCIPLES of

MARKETING
CHAPTER 1: Marketing Principles and
LC1
Strategies
SUBJECT DESCRIPTION:
The course deals with the principles and practices in marketing
goods and services. It also focuses on the development of
integrated marketing programs that will help grow the business

LEARNING COMPETENCIES
Define and understand marketing
CHAPTER 1: Marketing Principles and
LC1
Strategies
CHAPTER 1: Marketing Principles and
LC1
Strategies
MARKETING

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution (4 Ps) of ideas,
goods and services to create exchanges (with customers) that
satisfy individual and organizational objectives.
CHAPTER 1: Marketing Principles and
LC1
Strategies
MARKETING

Satisfying customer needs (creating utility) through the exchange

process.

- Philip Kotler
CHAPTER 1: Marketing Principles and
LC1
Strategies
TERMINOLOGIES
Needs -Human needs are the basic requirements and include
food clothing and shelter. Without these humans cannot survive.
Wants - A want is the desire for products or services that are not
necessary, but which consumers wish for.
Demands – These are wants back by the ability to buy.
CHAPTER 1: Marketing Principles and
LC1
Strategies
TERMINOLOGIES
Exchange - This term refers to the trade of things or service of
value between buyer and seller.
Market - refers to the group of consumers or organizations that is
interested in the product, has the resources to purchase the
product, and is permitted by law and other regulations to acquire
the product
CHAPTER 1: Marketing Principles and
LC1
Strategies
EMERGENCE OF MARKETING
Market >> Identify needs wants and demands >> free enterprise
>> Offer products to satisfy either needs wants or demands >>
MARKETING
CHAPTER 1: Marketing Principles and
LC1
Strategies
In order for the exchange to qualify as successful, there are some
basic rules that must be met:
 The exchange is successful if there are at least two parties.
 Both parties must be also be exchanging something of value
to each other.
 An exchange will be successful if both parties communicate
clearly their intentions.
 Finally, the parties should accept the offer and want to
engage in a deal with each other.
CHAPTER 1: Marketing Principles and
LC1
Strategies
How do customers fulfill their wants and needs from a marketing
perspective?
The five step consumer decision process includes
1. need identification
2. information search and processing
3. identification and evaluation of alternatives
4. the purchase decision
5. post-purchase behavior.
Looking at the process of marketing

• Steps in marketing process: Kotler and Armstrong

• Step 1 Understand the market need and wants
• Step 2 Design customer driven marketing
• Step 3 Construct an integrated marketing program that
delivers superior value
• Step 4 Build profitable relationship and create customer
delight
• Step 5 Capture value from customers to create profits
and customer equity
 Elements of Marketing
•The marketing mix definition is a tool in
marketing that helps companies to identify the
right product to offer or a combination thereof in
the place, at the right time, and at the right price.
The difficult part is doing this well, as you need
to know every aspect of your business plan.
 o
r offer physical product.
Marketers can only

1. PRODUCT
- A marketer can produce not only physical
products but also services that are appealing to
customers.
 Elements of Marketing
Internet, wholesale and Multi-channel are
considered as the place where product can be
purchased.

2. Place is where the product is purchased.

Marketer should find a suitable location where
the product will be available.
 Elements of Marketing
3. Price - is the amount a consumer pays for the product
or services. Price should be reasonable based on its
quality

When pricing a product or services always compare it with

the price of competing brands in the market not with its
cost.
 Elements of Marketing
4. Promotion consists of the communication tools
used to effectively get the company's message out.
Personal selling, Sales promotion, advertising,
publicity, public relations are the common
tools to promote products and services
CHAPTER 1: Marketing Principles and
LC1
Strategies
Discuss the elements of Marketing

Marketing Mix (4P's)

1. Product
2. Price
3. Place
4. Promotion
Elements of Marketing
5. People
People
Why do you think hiring right company’s employees
•areThe company’s
important employees are important in
in marketing?
marketing because they are the ones who
deliver the service. It is important to hire and
train the right people to deliver superior
service to the clients.
 Elements of Marketing
• Marketing is an integral part of business process. A
typical organizational structure comprises:

The management

Finance Service Sales and

and Human operation / marketing
resources production service
Accounting
 Organizational Structure
• Finance and accounting
-are responsible for the managing of income and expenses of a company.
Marketing responsible for company’s sales.
Human resources and training
- Manages the staffing and training of people to be efficient and productive in their
workplaces. Marketing collaborates in selecting and training of staff.
Service operation and production
- Is a division responsible for producing the product and rendering services according
to the requirements of customers.
- this division has a direct connection with marketing regarding controlling the quality
of the output based on marketing plan.
 Elements of Marketing
6. Process
•The systems and processes of the organization
affect the execution of the service.
•So, you have to make sure that you have a
well-tailored process in place to minimize
costs.
 Elements of Marketing
7. Physical Evidence

•It is the physical evidence of a business’

presence and establishment. A concept of this
is branding. For example, when you think of
“fast food”, you think of McDonalds.
CHAPTER 1: Marketing Principles and
LC1
Strategies
What are the elements of marketing?

1. Product 5. People
2. Price 6. Process
3. Place 7. Physical Evidence
4. Promotion
 Elements of Marketing
Activity/assignment: Choose one product to
promote> ball pen, wet tissue, shoe glue,
bed/foam, tumbler, umbrella
Select the most appropriate promotional tools
to carry out the persuasive message that you are
going to develop.
 Marketing Concepts LC1

Marketing is the promotion of business products or

services to a target audience.
In fact, there are five different approaches to how
marketing can be successful for an organization.
These approaches are called marketing concepts,
or philosophies that drive what type of marketing
tools are used by a company.
CHAPTER 1: Marketing Principles and
LC1
Strategies
Marketing Concepts
1.Product Concept
2.Production Concept
3.Selling Concepts
4.Marketing Concept
5.Societal Concept
 Marketing Concepts LC1

• Production concept - Consumers want products

that are easily accessible and inexpensive.

• Product concept - Consumers want quality

products. This means customers are looking for
innovative options and continuously seeking out
the best of what is currently available.
 Marketing Concepts LC1

• Selling concept - Consumers are looking for

aggressive sales and promotions from companies.
•
• Marketing concept/approach - Consumers want to
see the products meet their wants and needs more
than the competition. There is a lot of comparison
shopping.
Marketing Concepts

• Societal concept - Consumers want to

see that the business is offering value
and taking into consideration the well-
being of both consumers and society.
CHAPTER 1: Marketing Principles and
LC2
Strategies
Approaches in Studying Marketing
1. Traditional Approach
2. Contemporary Approach
 CHAPTER 1: Marketing Principles and
LC2
Strategies
Traditional Approach
a. Commodity Approach - This approach refers
to the study of a product in detail.
b. Institutional Approach - This approach relates
to various marketing institutions viz.,
wholesalers, retailers etc., engaged in
marketing.
CHAPTER 1: Marketing Principles and
LC2
Strategies
Traditional Approach
c. Functional Approach - As the every name suggests
this approach comprises of the study of various
activities or functions performed in the process of
marketing of goods and services
CHAPTER 1: Marketing Principles and
LC2
Strategies
Traditional Approach
d. Decision Making Approach - This approach is of vital
importance from the viewpoints of marketing
management, various decision are taken at every level
of management
 Form a dyad. Choose an existing product in the
market. List down all the competing brands of the
chosen product. As guide, use the matrix below.
Competing Superior Value Price Place Promotion
Brands
 CHAPTER 1: Marketing Principles and
LC3
Strategies
• Goals of Marketing
- Are the ultimate objectives that an organization
desires to attain through effective marketing
programs

Maximize Maximize
Maximize Maximize
consumption consumer choice life quality
satisfaction
 Evaluation:
• Set desired goal for your
product/service.
• You may use graphic organizer to explain
on how you will attain this goal.
CHAPTER 1: Marketing Principles and
LC4
Strategies
Contemporary Marketing Approaches
1. Marketing mix
2. Conceptual approach
3. System or holistic approach
4. Managerial (marketing management) approach
5. Macro-marketing
6. Social marketing
7. Comparative marketing.
Contemporary Marketing Approaches LC4

1. Marketing Mix

Marketing mix or 4 P’s (product,

promotion, price and place). These are
variables that a company may use in
mapping a successfully marketing strategy.
Each P is interrelated to all other P’s.
CHAPTER 1: Marketing Principles and
LC4
Strategies
Marketing Mix
Contemporary Marketing Approaches LC4

2. Conceptual Approach - studies ideas of

marketing rather than activities.
Understanding of marketing as a tool aiding
analysis and logic and thereby
communicating ideas.
How can a business improve the marketing
LC4
and solve marketing problems?

• Seek ways to improve marketing and to solve

marketing problem through research, logical,
analysis and innovative thought.
Is customer always right? Or Customer has the right?
An earlier counterpart of concept approach is
“Consumer is King.” The consumer is like a king
whose right must be understood and respected.
Contemporary Marketing Approaches LC4

based upon the

• 3. Holistic Approach -
understanding that activities or processes
are interdependent upon other activities or
processes.
• It is a holistic or unified view of marketing. In
this approach, the 4 Ps are interrelated.
Contemporary Marketing Approaches LC4

•Holistic Approach
•It integrates the functional, commodity,
institutional managerial, social, comparative,
marketing mix and the conceptual
approaches into one comprehensive whole.
Contemporary Marketing Approaches LC4

4. Marketing Management – Managerial

approach to marketing
. Philip Kotler defines it as analysis, planning,
implementation, and control of programs
designed to bring changes in the target market
for the purpose of achieving organizational
objectives.
Contemporary Marketing Approaches LC4

4. Marketing Management
•It relies heavily in designing the
organization’s offering in terms of the
market’s needs and desires and using
effective pricing communication and
distribution to inform, motivate, and serve
the market.
Contemporary Marketing Approaches LC4

• 5. Macromarketing - looks at the economy’s

entire marketing system to see how efficient and
fair it is.

• Micromarketing - examines the individual firm

within the economics system
Contemporary Marketing Approaches LC4

6. Social concept- depicts marketing as a social

institution rather than merely as a business activity or
economic process.
7. Comparative marketing system. This is corollary to
the social concept of marketing, it recognizes existing
environmental differences, marketing within different
countries and between them.
CHAPTER 2: Customer Relationship:
Customer Service

•Thank you!!!
Customer Relationship Management

•The overall process of building and

maintaining profitable customer
relationships by delivering superior
customer value satisfaction.
• Kotler and Armstrong
CHAPTER 2: Customer Relationship:
LC5
Customer Service
Relationship Marketing
Relationship marketing is a buyer-friendly
approach to business.
It is a marketing approach that
acknowledges the importance of both the
buyer and the seller in the marketing
process.
CHAPTER 2: Customer Relationship:
LC5
Customer Service
Relationship Marketing Strategies
1. Customer markets include wholesalers,
middlemen such as retail stores, and the final
consumers of the product.
2. Referral markets include both customer and non-
customer referral sources.
CHAPTER 2: Customer Relationship:
LC5
Customer Service
3. Supplier and alliance markets consist of
people and organizations that provide resources
to your business.
4. Influence markets consist of people and
organizations that can influence your business
and your customers.
CHAPTER 2: Customer Relationship:
LC5
Customer Service
5. Recruitment markets include potential employees
and related third-party staffing agencies.
6. Internal markets include actual employees. The
market can be divided by job function, role, geography,
and levels of seniority.
 Advantages of having a strong relationship
Marketing

1. Maintain long term customer

relationship
•Build relationship with customers
•Not treating them just for the sales
•Loyalty of customers will be developed
•Customers patronize the product
Advantages of having a strong relationship
Marketing

• 2. Receive referrals from potential customers:

• Word of mouth is one of the best means of
promotion
• Testimonials and recommendations of satisfied and
loyal customers is a powerful persuasive tool to
influence others(colleagues, friends families, co-
workers)
Advantages of having a strong relationship
Marketing

• 3. Provides feedback mechanism

• Sellers need to know how give proper attention
with the complaints of customers
• Solve problems and show service commitment to
public
Advantages of having a strong relationship
Marketing

• 4. Gives competitive edge

• Competitive advantage regarding
market share
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Customer Value
Customer value is a customer’s perceived preference
for and evaluation of those product attributes,
attribute performances, and consequences arising from
use that facilitate (or block) achieving the customer’s
goals and purposes in use situations"
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Customer Value
Customer value is the difference between the values
the customer gains from owning and using a product
and the cost of obtaining the product.
 Describe the
situations
in the pictures
CHAPTER 2: Customer Relationship:
LC6
Customer Service
How Is Customer Value Delivered to the Customer?
There are three ways a company can establish
customer value to its customer base:

Customer Value

Cost Product Service

CHAPTER 2: Customer Relationship:
LC6
Customer Service
Types of Value
1. Functional Value
It is concerned with the extent to which a product is
useful, has desired characteristics, and performs a
desired function.
 Features and
Performance Outcomes
characteristics

quality Operational
uses
benefits

creativity
Service support Environmental
outcome benefits

customization
reliability effectiveness
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Types of Value
2.Experimental Value
It is concerned with the extent to which a product
creates appropriate feelings, experiences and
emotions for the customer.
 CHAPTER 2: Customer Relationship
Customer Service
• Experimental Value

comfortable
Ambiance

Aroma Aesthetics Emotional Values

(Transportation)
Sensory
values
(restaura
nt)
entertainment Safety
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Types of Value
3. Symbolic or Expressive Value
It is concerned with the extent to which customers
associate psychological meaning to a product. Some
products appeal to customer's self-concept and self-
worth.
CHAPTER 2: Customer Relationship:
Customer Service
Self
Self
conce
Branded worth Status
pt
Rolex
Prestige
LV
Image
RL
Marc Jacob
CHAPTER 2: Customer Relationship:
LC8
Customer Service

Customers are people who

need your assistance.
They are not an interruption
to your job, they are the
reason you have a job.
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Communicating Effectively with Customers
Attitude Checklist
What attitudes assist in providing good service?
• Enjoy helping people
• Handle people well
• Care for your customers
• Give fair and equal treatment to all
• Be understanding of people with special needs
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Skills for Customer Service
• Know about your organization
• Learn the technical parts of the job
• Communicate well
• Be consistent
• Be organized
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Greeting Customers
The purpose is to create and maintain a welcoming
environment
Make notes on GOOD GREETING BEHAVIOUR
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Establishing Rapport
What does good rapport feel like?
Practice greeting someone
• Make the customer feel comfortable
• Make the customer feel important and valued
• Use empathy
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Find out how You can Help
• How can you find out what people want?
• If you can’t help, what should you do?
• Offer alternatives if possible
• If they have to wait, how would you handle it
CHAPTER 2: Customer Relationship:
LC8
Customer Service
How to Listen to Customers
• Active listening = Attending skills (being ready)
• Attend to immediate needs (if you need to finish
something before giving your full attention)
• Being available
• Eye contact
• Attentive posture
• Concentration
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Using Your Voice
Do you
• Become loud when angry or upset
• Speak faster when nervous
• Speak slowly when tired or bored
• Have a cheerful voice
CHAPTER 2: Customer Relationship:
LC8
Customer Service
• My tone of voice is warm and understanding
• Find it easy to talk to people you don’t know
• Control your tone in most situations
• Sound bossy, weak or unsure
• Have a clear and easy-to-hear voice
• Speak in a very formal or very trendy manner?
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Body Language for a Positive Result
Brainstorm some examples of good body language
• Smile
• Introduce yourself (if appropriate) or wear a name
badge
• Shake hands if appropriate
• Lean forward
• Be aware of cultural differences
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Ask group for examples of cultural differences.
Telephone Skills
• Know how to use the phones
• Speak clearly and slowly
• Smile (you can hear it in your voice!)
• State your name and organization
• Write down the caller’s name and use it
CHAPTER 2: Customer Relationship:
LC8
Customer Service
What makes you go back to a place?

A Positive Organizational Image

First impressions count and will affect the interaction.
People make judgements in the first 30 seconds.
Golden Rule – You only have one chance to make a first
impression!
CHAPTER 3: Market Opportunity Analysis
and Consumer Analysis
How Is Customer Value Delivered to the
Customer?
There are three ways a company can establish
customer value to its customer base:
1. Provide the consumer with the best cost.
2. Provide the consumer with the best product.
3. Provide the consumer with the best service.
MARKETING PRINCIPLES AND STRATEGIES

MARKETING PRINCIPLES AND STRATEGIES