Marketing

Principles and
Strategies
 Marketing Principles and
Strategies

• Marketing and its traditional approaches

• Goals of Marketing

• Contemporary approaches to Marketing

 Marketing Defined
Marketing

• The activity, set of institutions, and

processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients,
partners, and society at large.
- The American Marketing Association
(AMA)
 Marketing Defined
Marketing

• A science and a profession guided

principally by the universal principles of
ethics, corporate citizenship, and
corporate social responsibility.
- Philippine Marketing Association (PMA)
 Goals of Marketing
The goals of marketing can be summarized
as follows:
1. Understand the market and its
consumers, and satisfy their changing
needs and wants.
2. Introduce and innovate products and
services that improve human condition
and the quality of life.
 Goals of Marketing
The goals of marketing can be summarized
as follows:
3. Design and implement effective customer
– driven marketing strategies.
4. Develop marketing programs that deliver
superior value to customers.
5. Build and maintain mutually beneficial
and profitable customer relationships.
 Goals of Marketing
The goals of marketing can be summarized
as follows:
6. Capture customer value to create profits.
7. Promote value transactions with full
regard to the well – being of societies.
 The Marketing Process
The Situation Analysis
• Micro-environmental Marketing Strategy
• Macro-environmental Formulation
• The MARKET • Market
• Customers Segmentation
• Competition • Target Market
• Strengths, Selection
Weaknesses, • Value Proposition
Opportunities, and • Product Positioning
Threats

Implementation and
Control Marketing Mix Decisions
• Implementation • Product
• Monitoring • Price
• Marketing Mix Adjustment • Place
• Promotion
 Products, Services, and
Experiences

Marketing Products

PRODUCTS or goods are physically

tangible items. As such, they are generally
perceivable by the human senses and can,
therefore, be inspected prior to purchase.
 Product Levels

• Core or generic products

• Formal products

• Augmented products
 Product Levels

• Core or generic products

– The purpose for which the product was
created.

– For example: the core or generic function of a

wristwatch would be “to tell time”.
 Product Levels

• Formal products
– This level includes factors that could
effectively differentiate products and/or
services from one company to another with
the same core or generic function.
 Product Levels

• Augmented products
– Is necessary in the case of products/goods
particularly those that are expensive and have
long service lives such as condominium units,
motor vehicles, and major household
appliances.
 Product Levels
Formal Product
Features Price
Styling Color

Core or Generic
Product

Augmented Product
Credit terms Warranty Installation
Installment terms Service Repairs and Maintenance
others
 Classifications of
Products/Goods
• According to Use:
– Consumer goods
– Industrial goods
• According to Differentiation:
– Undifferentiated goods
– Differentiated goods
• According to Durability:
– Consumables
– Semi-durables
– Durables
 Classifications of
Products/Goods
• According to Type:
– Convenience goods
– Shopping goods
– Specialty goods
– Unsought goods
 Classifications of
Products/Goods
• According to Use:
CONSUMER GOODS are goods that are
purchased for personal consumption and/or for
household use.

Examples: instant noodles, biscuits, milk,

detergent soap, shampoo, and other similar items.
 Classifications of
Products/Goods
• According to Use:
INDUSTRIAL GOODS are purchased in order to
make other goods to serve as a raw material or
input in the production of other goods.

Examples: aluminum, and electronic cables and

wires
 Classifications of
Products/Goods
• According to Differentiation:
UNDIFFERENTIATED GOODS are products
whose physical characteristics are so identical,
that it would be difficult, if not possible, to
distinguish one purchased from one vendor or
another.
Most undifferentiated goods are products that are
sourced from nature.
 Classifications of
Products/Goods
• According to Differentiation:
DIFFERENTIATED GOODS are varied in their
characteristics and features that make them
distinguishable from one another.

Examples: cars, cellphones, appliances

 Classifications of
Products/Goods
• According to Differentiation:
DIFFERENTIATED GOODS.

The ability of manufacturers to successfully

distinguish their products from other competitors is
called branding.
 Classifications of
Products/Goods
• Branding

Provides a product or service a

unique distinguishing name,
logo, symbol, or image which is
used to differentiate it from
other similar products and
services.
 Classifications of
Products/Goods
• Branding

The customer’s appreciation in

a brand’s value from their point
of view is called brand equity.
 Classifications of
Products/Goods
• According to Durability:
Durability refers to the length of time a consumer
can derive benefit from the product or good
purchased.

A CONSUMABLE is a product whose benefit can

only be used by a consumer for a short period of
time, sometimes only a few minutes.
Examples: food, drinks and other edible items, detergent
and toiletries
 Classifications of
Products/Goods
• According to Durability:
SEMI-DURABLES
- provide benefits to the consumer for a longer
period of time, usually spanning several months.
- are manufactured for longer-term use by
consumers.

Examples: clothes, shoes, belts, jackets, etc.

 Classifications of
Products/Goods
• According to Durability:
DURABLES
- are products that are manufactured to last a long
time. They are capable of providing consumers
with years of beneficial use.
- are usually expensive, and many, therefore,
require an augmented product to market them
effectively.
Examples: automobiles, houses, home appliances,
customer electronics, furniture, sports equipment, and toys
 Classifications of
Products/Goods
• According to Type:
CONVENIENCE GOODS
- are products that are purchased frequently, are usually
inexpensive, and do require much purchase effort and
evaluation.
- the key to the successful marketing of convenience
goods is its availability in as many retail outlets as
possible, catering to consumer need where and when it
arises..
Examples: newspapers, gum, and candy
 Classifications of
Products/Goods
• According to Type:
SHOPPING GOODS
- are purchased less frequently than convenience goods, are
relatively more expensive, and require some amount of
information search and evaluation prior to purchase.
- Consumers of shopping goods consider features, evaluate
attributes, and compare prices.
- The successful marketing of shopping goods depends on
intensive advertising, well-trained salesperson, and
positioning company products as superior alternatives to
competitor’s product.
Examples: shoes, clothes, and handbags
 Classifications of
Products/Goods
• According to Type:
SPECIALTY GOODS
- are goods that require an unusually large effort on the part of
consumers to acquire.
- Consumers are usually willing to travel great distances where
these goods can be purchased.
- The successful marketing of specialty goods require the
promotion of strong brand image and identities.
Examples: branded luxury merchandise, works of art,
automobiles, and homes.
 Classifications of
Products/Goods
• According to Type:
UNSOUGHT GOODS
- are goods that consumers seldom actively look for, and
are usually purchased for extraordinary reasons, such as
fear or adversity, rather than desire.
- These goods require advertising and aggressive selling
efforts and are usually marketed using highly-trained and
persuasive salespersons.
Examples: investments, memorial plans, and life insurance