PRINCIPLES OF MARKETING

MODULE 1: MARKETNG PRINCIPLES AND STRATEGGIES

 READING : 1MARKETING AND IT’S
TRADITIONAL APPROACHES
• Through their marketing operations, organizations offer goods and services to the consuming public or to
organization. These marketing firm consider market demand and price their products strategically in order to
cover their operating and other business expenses. These expense include rentals, salaries and other benefits of
employment, and utilities, among others. When revenues exceed cost of production and operations, profits are
realized.
Offering products and services customer and ensuring that these are purchased are among the major functions of
marketing. Without marketing , most business may not be able to sustain their operations and my cease to exist.
Profit is one of the major driving forces, if not the main motivation, of business operation. For this reason,
marketing is often referred to as the “lifeblood” of every business. The importance of marketing is also true for
non-profit organization and government institutions. If the Philippines national Red Cross is not able t persuade
individuals to donate blood, it will fail in fulfilling its goal to help patients in need of blood transformation. If the
department of Health’s anti smoking campaign is not successful, the department will fail in improving health as
incidences of cardiovascular and respiratory illness will not be reduced. Most, if not all, activities in an
organization revolve around the successful practice of marketing.
The Marketing Process
The marketing pocess can be illustrated in the following table.
The Situation Marketing Strategy Marketing Mix Implementation and
Analysis Formulation Decisions Control
Microenvironment Market segmentation Product Implementation

Macroenvironment Target market selection Price Monitoring

The market Value Proposition Place Marketing mix

adjustment
Customer Product positionig Promotion

Competition

Strength, weaknesses,
opportunities, and
threats
 PRODUCT, SERVICES, AND
EXPERTISE
As consumers, we are most familiar with the marketing of goods and services. Oher than these, however, marketing
organization also market experiences, ideas advocacies, and even personalities.
 NEEDS, WANTS, AND DEMANDS
Consumer needs
defined as physiological necessities required for human survival. These universal needs
include foods, shelter, and clothing.

Wants
are more psychological, indicating preferences that can iprove the soncumer’s life
condition.
 MARKET AND MARKET DEMANDS
• Market
defined as the group of individuals or organizational customers who have both the
willingness and financial capability to purchase a particular product or service.

Market demand
is the total demand of all potential customer for a specific product/service over a specific
in a specific market area. It can be either primary or selective.
Primary demand refers to the total demand for all brands of a particular product or service.
The following tables shows the traditional product –centric
Traditional Approach Description
Production Concept This approach assumes that inexpensive and
widely available products are preferred by
customers. With that in mind, the goal is to lower
production costs and concentrate in production
efficiency.

Product Concept This concept assumes that consumers prefer high

quality products, promting companies to allocate
resources for product development and
innovation.
Selling Concept This approach uses vigorous and aggressive
marketing strategies, assuming that consumers
need persuasion in buying products.
 READING 2:
GOALS OF MARKETING
Every marketing plan is driven by set of goals which can be summarized as follow:
-Understand the market and it’s consumer, and satisfy their changing needs and w
Wants
- Introduce and innovate products and service that improve human condition and the quality of
life
- Design and implement effective customer-driven marketing strategies
- Develop marketing that delivers superior value to consumers
- Build and maintain mutually beneficial and profitable customer relarionship
- Capture customer value to create profits and
- Promote value transactions with full regard to society’s well-being
 READING 3
CONTEMPORARY APPROACHES TO MARKETING

To recall marketing uses a production-focused approach. Contemporary approaches to

marketing, on the other hand are centered on the customers, relationship, and the well-being of
the society. The wants and needs of the customer are central in these approaches, driving
marketing decision.
The table below shows these contemporary approaches are applied in marketing
Contemporary approaches
Marketing Concept
Relationship marketing Concept
Societal marketing Approach
Description
This approach aims to provide a
solution to a customer’s actual or
perceived problem
This concept ensures customer
satisfaction and relations by
profiling and monitoring habits
and preferences.
This approach goes beyond
resolving customer concern
regarding product or service. It
aims to protect the interest of he
customers, the environment, and
the society.
ASSSESSMENT

Answer the following in five to ten sentences. 10 points each.

1. Imagine you were opening a small coffee shop in your neighborhood. How would you market your
products? Enumerate your goals and explain the approach/es you intend to use to achieve the said
objectives.
2. Differentiate consumer goods from industrial goods.
3. Explain the different between differentiated and undifferentiated goods.