LESSON 1:

MARKETING AND ITS

TRADITIONAL
APPROACHES
Learning Objectives:

The learners shall be able to:

• Define marketing

• Describe the traditional approaches to marketing

What is Marketing?

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-
Marketing has TWO features:

1. It is a philosophy, an attitude, a perspective and a

management orientation that emphasizes
customer satisfaction.

2. It is an organization function and a set of processes

utilized to put into practice this philosophy.
Five (5) basic components underlying marketing

1. Needs
– a human need is a state of felt deprivation.
2. Wants
– a human want is the form that a human need takes as
shaped by culture, individual personality and social and
environmental forces.
3. Demands
– are human wants that are backed by buying power.
4. Exchange
– marketing happens when a buyer and a seller exchange
something of value.

5. Market
– this is composed of people with both desire and ability
to buy a specific product/service.
Table 1 Practical Examples of Needs and Wants

Particulars Needs Wants

Fashion Wear Clothing UniQLo, Bench, Levis, Maldita,
Plain and Prints
Shelter Housing Apartment, condominium,
dorm, town-house
Thirst Beverage Fresh fruits, softdrinks, juices
in tetrapacks/bottles
Water Distilled, mineral, Maynilad
water, deep-well water
Milk Fresh, full cream, powdered,
instant, low-fat
Liquor Brandy, whisky, wine, rum, gin,
champagne
The Scope of Marketing
Marketing people are involved in marketing 10 types of
entities:

1. Goods 6. Places
2. Services 7. Properties
3. Experiences 8. Organizations
4. Events 9. Information
5. Persons 10. Ideas
TRADITIONAL APPROACHES TO MARKETING

Traditional concept marketing

• is a marketing strategy a company uses to
determine if it can produce a viable product
consumers want or need , whether the company can
produce enough products to fill the need, and the
marketing method by which the need can be filled.
TRADITIONAL APPROACHES TO MARKETING

PRODUCTION CONCEPT
 Focuses on the internal potentials of the company and not
based on the desires and needs of the market.
- example: Apple, Hitachi (1910), Sanyo, Ford

SALES CONCEPT
 Refers to the idea that people will buy more goods and services
through personal selling and advertising done aggressively to
push them in the market.
- example: Matsushita (Panasonic brand)
MARKETING CONCEPT
 It is a philosophy which states that organization must try hard
to find out and satisfy the needs and wants of the consumers
while at the same time accomplishing the organizational goals.
- examples: Google, Zappos, Amazon

RELATIONSHIP CONCEPT
 An approach that centers on maintaining and improving
value-added long-term relationships with current customers,
distributors, dealers and suppliers.
- examples: United Laboratories Inc. (UNILAB), Airbus A380
of Singapore Airlines
SOCIETAL MARKETING CONCEPT
 Views that organizations must satisfy the needs of
consumers in a manner that gives for society’s
benefit.
- example: ScotchBrite by 3M, and the fast-food
industry
Concept Production Sales Marketing Relationship Societal
Marketing
Prevailing A good Creative Find a Long-term Product
Attitude product will selling and need and relationships must be for
sell itself advertising satisfy it with the best
will customers interests of
persuade and other consumers
consumers partners will and the
to buy lead to society
success
Examples Ford for Matsushita Zappos.co Singapore Best Buy
black cars; for m Airlines
Sanyo for electrical Amazon.co
plastic rad components m
and
appliances
ATP Before Before Before Before After
1920’s 1950’s 1950’s 1990’s 1990’s