Chapter 1

Marketing Principles and

Strategies

Mdm. Lorne Mae Malabarbas

What is Marketing?
Marketing
 is a process of continuously and profitably
satisfying target customer’s needs, wants
and expectations superior to competitors
 “managing the customers profitably”
 the process that involves creating, pricing,
distributing, and communication goods,
services, and ideas to facilitate a satisfying
relationship with customers and develop
and maintain favorable realtionships with
stake holders in a dynamic setting.
What is Marketing?
Marketing
is a process by which companies create
value for customers and build strong
customer relationships to capture value
from customers in
return
 Two Interacting
Components of Marketing

COMPANY MARKET
Market
 Composed of people or organizations
that have the need, ability, the
willingness, and the authority to pay for
their purchase.

 Satisfyingone without satisfying the

other is not marketing
As Marketer
 Always consider the strengths and
weaknesses of his company in serving
the needs and wants of their market.
 They must choose the market segment
or segments where they can be have
potential leadership or at least have a
strong and profitable challenger role.
 Should have a balance between the
company’s requirements for profit and
desired market share.
What is a Market?
 Two Interacting
Components of a Market

CUSTOMER COMPETITION
The Market
 Customer, which may either be trade
intermediaries (like wholesalers ore
retailers) or end-users, are the people or
organizations buying from you.
 Competitors are those with products or
services that can offer similar benefits
to your customers.
The Strategic 3C’s of
Marketing

CUSTOMERS

COMPANY

COMPETITION
Key Objectives of the 3C’s
of Marketing

3Cs Key Objectives

Customers To satisfy the needs, wants and
expectations of target customers.
Competition To outperform competition.
Company To ensure corporate health and profit.
Input and Output of
Marketing
Sales

Customer
s

Company Competition

Profit Market Share

Key Result Areas (KRAs)
A. Sales
Sales are result of satisfying the
customers needs and wants.

To increase sales revenue, a firm can

increase either the price or the sales
volume.
4U’s of growing volume
 Sales volume can be increase through what
is known as the 4U’s of growing volume
1. New Users –Who uses the product or
service?
2. Extended Users – Who can still use the
product or service?
3. New Usage – For what purpose is the
product or service used?
4. More Usage – When and in what
occasions is the product or service used?
B. Market Share
Market share is the ratio of your brand
sales versus the total sales in your
market.

C. Profit
Profit is an indispensable component
for a firm to continuously satisfy its
customer.
 Application of 3C’s: 7 key
questions to ask
 Key Questions to Ask to Do Good Marketing
3C’s Key Questions
Customers Q1:Who are the target markets of Eat Bulaga?
Q2: What are the needs, wants and expectations
of the target markets?
Q3: How can they be satisfied continuously?
Competition Q4: Who are their direct and indirect
competitors?
Q5: How can they be superior to competition?
Company Q6: How can the show maximize its profitability
without alienating its customers’ needs, wants
and expectations?
Q7:What metrics do we use to measure success?
Needs, Wants, and
Expectations
 Needs are the basic reason or the minimum
requirement consumers look for in a product
or service. They are called the qualifying or
the “gatekeeper” dimension in a purchase.
 Wants are the determining dimensions
among many choices.
 Expectations are values or intangibles
associated with a product or service.
Expectations are actually part of “wants” but
they become extremely important when
products or services are not differentiated.
 Features, Advantages, and
Benefits
 Features are simply product attributes
offered by a company – they are proof of a
benefit. Advertising agencies call these the,
“reason why”.
 Advantages are what these features can do.
 Benefits are advantages that meet the
explicit needs and wants of the customers.
They the favourable results that customer wil
get when they use the product or service.
Benefits answer the question, “What’s in it for
me?”
Marketing Philosophy
 Better than Before
 Better than Others
 Better than Expected
What are the approaches to
marketing?
 Traditional Marketing

 Contemporary Marketing
What are the goals of
Marketing?
 Step 1: Awareness
Make your target market know you. Inform
them, persuade the and remind them so brand
can be among the top.

 Step 2: Availability
Make product available according to the
purchase pattern of the target customers.
Attention should be given to coverage,
placement, display, inventories, resale prices,
and goodwill with customers.
 What are the goals of
Marketing?
 Step 3: Trial
Provide a low risk initial experience to allow target
customers and customers to form positive impression.
This is typically done via sampling, introductory price,
money back guarantee, among others.
 Step 4: Repeat Purchase

Form an on going relevant relationship by continuously

satisfying needs and wants of target consumers to be
the preferred brand. Product and service quality must
be deliver as advertised or promised.
Marketing Mix
 Product
 Place
 Price
 Promotion
 Functions of Marketing Mix
4P’s Marketing Function
Product To satisfy the needs and wants of the target
market.
Place or To make the product conveniently available to
Distribution the target market consistent with their
purchasing patterns.

Promotions To build and improve consumer demand.

Promotion has 4 components called the
Promotion Mix –Advertising, Public Relations,
Selling, Sales Promotion
Advertising – to effectively inform and persuade
the target market.
Public Relations – to offer a positive image of
the company and the brand, as well as promote
advocacy.
 Functions of Marketing Mix
4P’s Marketing Function
Selling- to get the customers to buy

Sales Promotion- to convince customers to buy

immediately.
Price To make the product affordable to the target
market and reflect the value of the benefits
provided.
 Functions of 3 Additional Marketing
Mix for Service Industries
Additional 3P’s for Defifnition
Service
Physical Place where service is performed;
Environment includes all touch points leading to place
(also tangibles such as parking, fire exits,
eve neighbour's frontage or intangibles
like smell, ambiance or status)
Process Procedures, flow of activities, and other
mechanism that deliver the intended
experience.
People Members of the team who contribute to
the delivery of the service and its brand
promise whether at the front line or in the
back office, on-site or off-site; also
includes other fellow customers if onsite.
 Factors Influencing Customer’s
Purchase Decision Making
Customer’s
Company’s Competitors
Background/
4P’s 4P’s
Experience

Target Market Purchase or No

Purchase Decision-Making
Characteristics Affecting
Consumer Behavior
 Culture is the learned values, perceptions,
wants, and behavior from family and other
important institutions
 Subculture are groups of people within a
culture with shared value systems based on
common life experiences and situations
 Hispanic
 African American
 Asian
 Mature consumers
Characteristics Affecting
Consumer Behavior
Social classes are society’s relatively
permanent and ordered divisions whose
members share similar values, interests,
and behaviors
 Measured by a combination of
occupation, income, education, wealth,
and other variables
 Characteristics Affecting
Consumer Behavior
Groups and Social Networks

Membership Aspirational Reference

Groups Groups Groups
• Groups with • Groups an • Groups that
direct individual form a
influence wishes to comparison
and to belong to or reference
which a in forming
person attitudes or
belongs behavior
Characteristics Affecting
Consumer Behavior
Groups and Social Networks
 Word-of-mouth influence and buzz
marketing
 Opinion leaders are people within a
reference group who exert social
influence on others
 Also called influentials or leading adopters
 Marketers identify them to use as brand
ambassadors
Characteristics Affecting
Consumer Behavior
Groups and Social Networks
 Online social networks are online
communities where people socialize or
exchange information and opinions

 Include
blogs, social networking sites
(facebook), virtual worlds (second life)
Characteristics Affecting
Consumer Behavior
Social Factors
 Family is the most important consumer-
buying organization in society

 Socialroles and status are the groups,

family, clubs, and organizations that a
person belongs to that can define role
and social status
Characteristics Affecting
Consumer Behavior
Personal Factors
 Age and life-cycle stage
 RBC Royal Band stages
 Youth—younger than 18
 Getting started—18-35
 Builders—35-50
 Accumulators—50–60
 Preservers—over 60
Characteristics Affecting
Consumer Behavior
Personal Factors
 Occupation affects the goods and
services bought by consumers
 Economic situation includes trends in:

Persona
Interest
l Savings
rates
income
Characteristics Affecting
Consumer Behavior
Personal Factors
 Lifestyle is a person’s pattern of living
as expressed in his or her
psychographics
 Measures a consumer’s AIOs (activities,
interests, opinions) to capture
information about a person’s pattern of
acting and interacting in the
environment
Characteristics Affecting
Consumer Behavior
Personal Factors
 Personality and Self-Concept
 Personality refers to the unique
psychological characteristics that lead to
consistent and lasting responses to the
consumer’s environment
Characteristics Affecting
Consumer Behavior
Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

Types of Buying Decision Behavior

Complex buying behavior

Dissonance-reducing buying
behavior
Habitual buying behavior

Variety-seeking buying behavior

Types of Buying Decision
Behavior
• Complex buying behavior
Consumer buying behavior in situations
characterized by high consumer involvement
in a purchase and significant perceived
differences among brands.

• Dissonance-reducing buying behavior

Consumer buying behavior in situations
characterized by high involvement but few
perceived differences among brands.
Types of Buying Decision
Behavior
• Habitual buying behavior
Consumer buying behavior in situations
characterized by low-consumer involvement
and few significantly perceived brand
differences.

• Variety-seeking buying behavior

Consumer buying behavior in situations
characterized by low consumer involvement
but significant perceived brand differences.
How Marketing Keeps
Changing