Marketing and its

Traditional Approach
 Marketing
• “The activity, set of instruction, and processes for
creating, communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large.” – (American Marketing
Association, July 13)
• Selling is one aspect of marketing.
 FIVE CORE
CONCEPTS OF
MARKETING
1. Customer Needs, Wants and Demands
• Need – feeling of deprivation and commonly relates to a basic necessity.

• Wants – relate to a particular preference of the person

• Demand – the need or the want is supported by the person’s purchasing

power or the ability to pay for the product.
2. Market offerings

• They serve to fulfill customers’ needs and wants.

2 kinds:
a. Pure physical products
b. Pure services
3. Customer Value and Satisfaction

• Meeting or even exceeding

consumer expectation.
4. Exchanges and Relationships

• Exchange consists of obtaining what one

wants by offering something in return.
5. Market
• Composed of all people who buy the product, as well
as those who could potentially purchase the product
 Marketing Terms:
• A marketer is a person who identifies the goods and services
needed or wanted by customers and markets them.
*should be able to communicate well with the customers so he or
she can identify and consolidate their preferences and ensure that
the product or service meets their expectations*
• A customer is a person or a business that buys goods or avails
of services produced or offered by a firm.
• A consumer refers to a person who acquires goods or
services for direct use and has no intention of reselling
them or using them to create another good or service.
• A utility is the power of a good or service to satisfy a
particular need or want of a customer. It is also the term
for the benefit that consumers derive from acquiring
and using good or service.
 Marketing Terms:
• Exchange is the process of offering something to another
and then being offered something in return.
• Transaction is an agreement between a buyer and a seller
to exchange goods or services. The exchange should
involve money or some other resource that is of value to
the organization offering the need-satisfying product or
service.
 Marketing Terms:
• Personal Selling is a promotional tool
wherein a salesperson uses selling
techniques to persuade a customer to
purchase a good or avail of a service. It Is
the use of a sales skills to build a personal
relationship with a customer.
 Utility Concept of Marketing
4 kinds of Marketing Utility
1. Form Utility
- Conversion of raw materials into products that suit the preferences of the consumers so
that they do not have to create their desired products themselves.
Task Utility
- Offering services which consumers may not be capable of doing or may not like to do
themselves.
2. Place Utility
- Availability of the product or service at accessible locations.
 
3. Time Utility
- Satisfaction derived by customers in availing of
products or services on time.
4. Possession Utility
- Ensuring that customers have full possession of the
product or service at the right time, so this overlaps with
time and place utilities.
 Marketing organization
- Refers to the department in a corporation
that ensures the smooth flow of marketing
plans, policies and programs that monitors all
sales activities, customer services, and
distribution and promotion efforts.
6 aspects of the organization (6 C’s)
Consumer Consent
Company
Community Content
Capabilities
Marketing
Organization
Cross-functional
Contact Communication

Competition
 Traditional Approaches in
Marketing
3 Traditional Approaches
1. Production Concept
- The philosophy of this approach is that consumers favor
companies that produce high-quality and affordable goods, so it is
necessary to maintain efficiency in production and distribution.
 Traditional Approaches in
Marketing
2. Product Concept
- In this approach, it is believed that a product should be of
high quality, of excellent performance, and with innovative
features.
- Manufacturers who use this approach emphasize the
importance of innovation as the key to business success. 
 Traditional Approaches in
Marketing
3. Sales Concept
- High quality products and services continued to be provided but
companies had difficulty selling them to customers.
- Sales personnel use the art of persuasion to influence consumers’
purchase decisions.
- In this approach, marketing becomes synonymous with selling.