Chapter 1

Marketing Principles and Strategies

 What is your Perception of Marketing?
• Marketing is simply another word for advertising.
• The main goal of marketing is to maximize the number of
customers, all other goals are not as important.
• People who are successful in marketing are really creative and
outgoing – but are not that good with numbers and statistics.
• Marketers do not usually end up as CEO’s. Most CEO’s have a
finance, engineering, or legal background.
• People in marketing roles tend to have little interaction with
staff from other departments (functions) within a firm.
 What is your Perception of Marketing?
• Marketers tend to be seen as wishy-washy, because they are
constantly changing their minds.
• Marketing is all about making people buy products who don’t
really want them.
• Marketing is a highly regarded profession throughout the business
community.
• Many key marketing decisions within a firm are so important that
the CEO (or the senior executive team) often undertakes them
(rather than the marketing department).
• Marketing tasks are fairly simple, particularly compared to
complex and serious roles/functions like finance and engineering.
 Marketing Definition

• The American Marketing Association, defines

Marketing as “ 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”.
Customer Needs, Wants, and Demands

• Needs are states of deprivation

• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Customer Needs, Wants, and Demands

Wants are the form that needs take as they are

shaped by culture and individual personality

Demands are wants backed by buying power

Market Offerings—Products, Services,
and Experiences

Market offerings are some combination of

products, services, information, or
experiences offered to a market to satisfy a
need or want

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Marketing myopia is focusing only on
existing wants and losing sight of
underlying consumer needs
 Value, Satisfaction and Quality
Customer Value is the difference between the value of buying,
owning and using the product and the cost of the product.
 Value, Satisfaction and Quality
Customer Satisfaction refers to the difference between the
buyer’s expectation and perceived performance of the product
 Value, Satisfaction and Quality
Quality is what the customer says it is. The decision maker and the final evaluator
of quality is the customer. Quality must begin with customer needs and end with
customer satisfaction.
 Exchange, Transaction and Relationships
An exchange is the act of obtaining a desired object by offering something in return. Exchange is said to be the core concept
in marketing. In order to have a marketing exchange, five conditions has to be met.
1. There must be at least two parties to the exchange.
2. Each party must have something that the other party needs or wants.
3. Each party must want to deal with the other party
4. Each party must have the freedom to accept or reject the other party’s offer.
5. Each party must be able to communicate with the other party.
 Exchange, Transaction and
Relationships
A transaction is a trade of values between two
parties, marketing unit of measurement. A
transaction usually involves at least two
things of value, agreed upon condition and a
place of agreement. Most involve money,
response and action.
 Exchange, Transaction and
Relationships
Beyond creating short-term transactions, marketers
need to build long-term relationship with valued
customers distributors, dealers and suppliers.
Markets are the set of actual and potential buyers of a product
Marketing system consists of all of the actors (suppliers,
company, competitors, intermediaries, and end users) in
the system who are affected by major environmental
forces
• Demographic
• Economic
• Physical
• Technological
• Political–legal
• Socio-cultural
Market segmentation: Dividing the markets
into segments of customers

Target marketing: Which segments to go

after
 Selecting Customers to Serve
De-marketing: Marketing to reduce demand
temporarily or permanently; the aim is not
to destroy demand but to reduce or shift it.
 Choosing a Value Proposition
The value proposition is the set of benefits or values
a company promises to deliver to customers to
satisfy their needs
 Group Activity
• Your group is to design a new beverage for
the consumer market. It can be anything- cola,
tea, juice, but the most important element
that you want to focus on is its ability to
address the needs that particular consumers
may have. Present your product proposal and
explain what needs you seek to address.
Traditional Marketing Concept
Production concept is the idea that consumers will
favor products that are available or highly
affordable. With production concept, companies
should focus on improving their production and
efficiency.
Product concept is the idea that consumers will
favor products that offer the most quality,
performance, and features for which the
organization should therefore devote its energy
to making continuous improvements

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Selling concept is the idea that consumers will not
buy enough of the firm’s products unless it
undertakes a large scale selling and promotion
effort. This concept is typically practiced with
unsought goods.
Marketing concept is the idea that achieving
organizational goals depends on knowing the
needs and wants of the target markets and
delivering the desired satisfactions better than
competitors do
Societal marketing concept is the idea that a
company should make good marketing decisions
by considering consumers’ wants, the
company’s requirements, consumers’ long-term
interests, and society’s long-run interests
 Marketing Mix
The marketing mix is the set of tools (four Ps)
the firm uses to implement its marketing
strategy
• Product
• Price
• Promotion
• Place
 The Nature of Marketing Goals

• Marketing Goals are statements of what results

the company wants to achieve with its marketing
efforts. Just like any other goal, marketing goals
should be clear, credible and realistic.
 Marketing Goals and Objectives
• Goals
– Aspirations that every
company would like to
pursue or the general
direction that it wants
to take .
• Purpose of the company
and attained in the long
term
• To provide a positive ACE
entrainment experience to
all our customers in Luzon
Area
• Objective
– Specific goals that
can be measured in
the short term (or
specific period)
• SMART. Specific,
Measurable. Attainable,
Relevant and Time
bound
• To achieve customer
satisfaction of additional
20% in next 2 months.
 Identify whether the statement is Marketing
Goal or Objective
1. To become the market leader of ___ (a particular
business/industry ) in Davao City.
2. To build customer loyalty through point card system.
3. To achieve 20% of the sales through online marketing by the
end of year five.
4. To expend our markets and identify new markets for our
laundry business.
5. To achieve 20% market share by the end of year 2018
6. To generate 15% increase in sales every year.
• Marketing KPIs- Key Performance Indicators
(KPIs) are used to check that marketing
activities of a company are on track. KPIs are
specific metrics which are used to track
performance to make sure the firm is on track
to meet specific objectives. They are
sometimes called as performance drivers or
critical success factors for this reason.
Contemporary Approaches to Marketing

• Person Marketing-entails endeavors aimed at

cultivating the attention, interest and preferences
of a target market toward a celebrity or authority
figure.
Contemporary Approaches to Marketing

• Place Marketing- or place branding attempts to

exert a pull on customers to particular areas.
Contemporary Approaches to Marketing

• Cause Marketing- is the identification and

marketing of a social issue, cause or idea to
selected target markets.
Contemporary Approaches to Marketing

• Event Marketing- is a live multi media package

with a preconceived concept, customized or
modified to achieve the clients objective of
reaching out and suitably influencing the sharply
defined, specially gathered target audience by
providing a complete sensual experience and an
avenue for a two way interaction.
Contemporary Approaches to Marketing

• Green Marketing-refers to the process of selling

products and/or services based on their
environmental benefits.
 Group Activity
• Your group is to design a new beverage for
the consumer market. It can be anything- cola,
tea, juice, but the most important element
that you want to focus on is its ability to
address the needs that particular consumers
may have. Present your product proposal and
explain what needs you seek to address.