DEFINITION AND

CONCEPT OF MARKETING
PRINCIPLES, GOALS AND
APPROACHES
MODULE 1
 MARKETING
• IS THE CREATION AND COMMUNICATION OF VALUE
TO CUSTOMERS. IT INVOLVES THE CUSTOMER’S
MAINTENANCE OF RELATIONSHIPS THAT SHOULD
LAST FOR LIFETIME. IT IS LINK BETWEEN SOCIETY’S
MATERIAL REQUIREMENTS FOR ITS NEEDS AND
WANTS. MARKETING MUST SATIFY HUMAN NEEDS
AND WANTS THROUGH THE EXCHANGE PROCESS
AND THE BUILDING OF LONG-TERM RELATIONSHIPS.
FIGURE 1: CONCEPT AND MARKETING PRINCIPLES

(1) DEFINITIONS OF
MARKETING

(2)
MARKETING
(5) TRENDS IN MANAGEMENT
MARKETING INTRODUCTION PHILOSOPHIES
TO MARKETING
PRODUCTION
CONCEPT
SELLING
CONCEPT
(3) DIFFERENCES MARKETING
(4) MARKETING BETWEEN SALES & CONCEPT
PROCESS MARKET SOCIETAL
ORIENTATION MARKETING
CONCEPT
• Over the years, marketing has evolved various
definition and its meaning changes according to
the views of the different marketing gurus. Many
view marketing as process or dynamic business
activity that is designed to plan and promote the
delivery or satisfy needs and wants of the
potential and present market.
Definition of Marketing given by the American
Marketing Association or AMA

• “Marketing is an organizational function and a set of

processes for creating, communicating, and delivering value
to customers and for managing customer relationship in
ways that benefit the organization and its stakeholders.”
• The definition views as an exchange process or discipline that
involves strategies, activities, positions, and institutions.
 Definition of Marketing according to Dr.
Phillip Kotler

“A social and managerial process whereby

individuals and groups obtain what they need
and want through creating and exchanging
products and value with others”.
• It is also defined as the meeting of the minds
between the seller and the buyer to satisfy human
needs and wants with profit on the part of the
marketer and the satisfaction of three buyer for
the money he spent. On the bases of this view,
marketing is an organization intervention and
functions that set the process of creating,
communicating and delivering value to customers.
• From the academic point of view, marketing is the
art and science of creating tangible products or
services and finding the market, getting and
retaining them to attain profitable operations. On
one hand, it is societal process that marketers
must communicate the sustainable value of the
product or service to its market. It is a critical
business process for attracting customers to
satisfy their needs and wants.
• Marketing is also an integrated process
through which companies create value for
customers and build strong relationships in
order to capture value from customers in
return. Simply put: Marketing is the delivery
of customer satisfaction at a profit.
 Goal: Attract new customer by promising
superior value and keep and grow current
customers by delivering satisfaction.

• Two Interacting
COMPANY
Components of Marketing
MARKET

• The company its market are equally important. It is marketing

that gives fulfillment to both components. Marketing people
should also balance between the company’s requirements for
profit and desired market share.
• This is composed of two other interacting
components: the customer and competition. The
overriding objective of the company is not just to
satisfy the needs and wants of its customer. It
must profitable and better than its competitor.
Otherwise, the competitor could win the
customers because it is able to satisfy them.
 Customer Needs and Wants

• Need is one important component in the

marketing of products. It is the consumer’s desire
for a product or service. The product or service
must have specific benefits that satisfy the
functional or emotional needs. On the other hand,
basic needs are food, clothing, and shelter. We
cannot live without them and marketers must be
able to provide them to human population.
 Customer Needs and Wants

• Food can be processed in different tastes; styles

and menus that shall meet the human craving and
satisfaction. Clothing could be designed into
different styles depending on people’s taste and
social values. Shelters are constructed differently
depending on the capacity of the buyer to finance
his home. These needs are the marketer’s point of
interest for profit.
 Customer Needs and Wants

• Wants are higher-level human needs as they

appeal more to the emotions. These are the social
needs for recognition and the development of
higher social satisfaction is limitless. The
development of technology and different
electronic gadgets are more of human wants. The
marketers must continuously improve
technological inventions to sustain customer
wants.
 Concepts of Marketing

• According to Garovillas (2004), he stated that the

marketing concept is a business philosophy, which
holds that the key to achieving organizational
goals consists of determining he needs and wants
of target markets and delivering the satisfaction
more effectively and efficiently than competitors
do.
 Concepts of Marketing
• The philosophy of doing business is developed as people
realized that marketing is vital to the success of any marketing
organization. The marketing concept emphasizes customer
orientation and coordination of marketing activities to achieve
the marketing goals and objectives. The philosophy that “The
customer is the boss”, rings over the minds of the marketing
people that customer satisfaction which is of paramount
consideration. While it is important to satisfy customer wants
and needs, this could only be achieved under the following
marketing concepts:
Following Concepts:

1. Marketing must be customer oriented.

The planning and operation must be directed
towards customer orientation. The whole
marketing organization and its operating staff
must be focused on determining what will satisfy
the needs and wants of the target customers,
the important link in the business operation.
Following Concepts:

2. Marketing must be coordinated activities.

Coordination activities must start in the product planning
process, the process. The product is the key element that
the customer wants to buy that is worth his money. Price is
another important component as customers would like to
get his money’s worth. The place of distribution must be
within his reach and the promotional activities must be
appealing for him to decide which product to purchase.
 Following Concepts:

3. Marketing must be able to achieve the performance

target goals and objectives.
Customer-oriented and coordinated marketing aims to
achieve its profit, objectives and goals. These goals and
objectives hinge on the increase in sales volume and
customer’s patronage. When product planning, price,
promotion and distribution and properly coordinated, it will
result in the most effective way of satisfying the customer’s
needs and wants. The sales volume and profit objective will be
realized.
 Factors for Developing Marketing Concepts

1. Capturing Marketing Insights.

The overall direction must focus on its vision and mission. The
organizational goals and objectives must be directed towards the
creation of value to its customers. These must be the inherent
philosophy of the marketing organization. The functional areas in
the marketing organization must be focused towards its ultimate
set of task in the building of long-lasting relationship with its target
market.
 Factors for Developing Marketing Concepts

2. Effective Financial Management System.

This system in the procurement of quality and affordable materials
for processing of the product is a vital component in effective
operation of the marketing system. The competition in the market
is based on affordable quality products where labor and materials
interplay in their production. Financing the marketing program will
develop effective sales program that will bring in sustainable
profitability.
 Factors for Developing Marketing Concepts

3. The Value of human Resources.

All business activities need human resources in their operation. The
employees must be committed in the production of quality
products and the delivery of quality service. They must develop
work ethics and strong commitment to the marketing efforts of the
organization. Sustainable development and progress rest with
people who are willing to put all efforts towards the organizational
objective of quality products and service.
 Factors for Developing Marketing Concepts

4. The Production Process.

The process must conform to standards in terms of product quality.
The race to economic profitability is the production of products
that shall satisfy the customer’s wants and needs. The role of
marketing is to sell more products, but it must conform to
customer demand. Production may produce so many products, yet
they are useless inventory when they fail to reach target market.
Marketing efforts will turn into profitable inventory.
 Factors for Developing Marketing Concepts

5. The presence of Competitors.

The marketing of products becomes interesting with the presence
of competitors. Marketing outfit must develop strategies in
capturing their target market and develop and sustained
patronage. These marketing strategies must develop customer
loyalty to the brand or the product. Product improvement and
pricing strategies with sustained promotional and advertising
program are important components in the competitive market.
 Traditional Concept Marketing

• Is a marketing strategy a company uses to determine if it

can produce a viable product consumer 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.
 Several Distinct Traditional Approaches
1.Production Concept focuses on the internal potentials of the
company and not based on the desires and needs of the market.
2. Marketing concept a philosophy which states that
organization must try hard to accomplishing the organizational
goals.
3. 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.
 Online marketing vs traditional marketing then
write the difference between traditional vs online
marketing for product, price, place and promotion.
4p’s Traditional Online marketing

Product

Price

Place

Promotion
 Several Distinct Traditional Approaches

4. Relationship concept/marketing an approach that

centers on maintaining and improving value-added long-
term relationship with current customers, distributors,
dealers and suppliers.
5. Societal marketing concept views that organizations
must satisfy the needs of consumers in a manner that
gives for society’s benefit.
 The Goals of Marketing and their Social Effects

1. Maximize the consumption of goods.

The aggressive marketing strategies and policies had
increased the consumption of goods and services. The
demand of the market is tremendous. Sellers face many
challenges on what products to offer. Buyers want quality
products at reasonable price and the most convenient
location.
The marketing job is to stimulate greater product
consumption. Greater production requires consumption of
materials inputs and more goods in the market that create
more employment. More jobs are created, and more
people enjoy economic wealth. Maximum consumptions
generate economic development for the nation.
2. Maximize Consumer Satisfaction.
The market demand is varied, and customer satisfaction id
the challenge of the marketing organization.
Measurement of customer satisfaction is difficult. It
embraces careful analysis of the market demand which
varies with the time and the social development of society.
The customer may be satisfied with the product the
marketing people produce but it may create pollution to
the environment. Plastics are good packaging materials
for consumer goods but they create flood and
environment pollution. Cars and other vehicles using gas
serve the convenience of the riding public, but they create
global warming that result to environmental imbalance.
3. Maximize Choice of Goods or Service.
Some marketers believe that the goal of marketing is to
maximize the variety of the product in the market and
provide consumers a wide assorted of choices. The main
objective is for customers to find the goods that will satisfy
their biological needs as well as their emotional and social
wants.
Development of new products needs research but that will
mean time and costs. Maximizing consumer choice entails
cost as the economies of scale do not operate in
production of goods. The consumers must spend time
studying the benefits of the production of goods.
4. Maximize the Quality of life.
The improvement of the quality of life is the target of
marketing people. New hand phones are created to
communicate with various sectors of society, friends and
families. Easy communications access satisfies not only
social needs but also business requirements. Computers and
electronic gadgets bring pleasures to homes and enjoyment
of the comfort of living.
The quality of life is difficult to measure. Life satisfaction is
more than the physical comfort. The impact of electronic
radiation has created health problems among the many
users of modern gadgets. People in the previous
generation lived longer because they lived a simple life.
They ate unadulterated food and lived free from pollution
and radiation.
 Goals of Marketing
1.Focusing on customer wants and needs to
distinguish products from competition
2.Integrating all the organization’s activities to
satisfy customer wants and needs
3.Achieving the organization’s long-term goals by
satisfying customer wants and needs
 Goals are Different from Objectives
GOALS
Top-level broad goals to
show how the business can
benefit from channels. So,
goals are the broad aims
used to shape strategy. They
describe to the business in
the key areas of growing
sales, communicating with
audience and saving money.
OBJECTIVES
Specific SMART objectives
to give clear direction and
commercial targets.
Objectives are the SMART
MARKETING targets for marketing which
can be used to track
performance against target.
The SMART mnemonic helps
as a test or filter which the
firm can use to asses the
quality of measures.
 Key Performance Indicators

• Key performance indicators (KPIs) are used to check that

the 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 known as performance
drivers or critical success factors for this reason.
 Example of noteworthy marketing goals:

1. Identify the target market

2. increasing sales and profits
3. Increasing brand awareness
4. Increasing market share
5. Countering competitive strategies
6. Reputation
7. Increasing distribution channels
 What is the Traditional Marketing?

• Traditional Marketing is an umbrella term that

covers the wide array of advertising channels we
see daily. These may include print media, billboard
and TV advertising, flyer and poster campaigns
and radio broadcast advertising.
• These traditional marketing messages are not necessary
outdated, however, research has shown those
companies that have abandoned simply using these
channels, and adopted contemporary marketing
channels proposed in this article, have remained
prosperous and in fact seen an increase in leads, a higher
quality of leads, sales and traffic to wen consent .
 Ansoff’s Matrix Theory

• Traditional marketing theories include Ansoff’s Matrix, a

theory that proposes products/services fall into one of four
categories depending on the market and the product released.
New product – new market is considered as diversification.
This theory recommends that businesses should try to
diversify their product portfolio to spread risk amongst their
product range.
• An example of this be when Apple created the first
iPhone released in 2007. this product was new and
introduced into a new market. Apple soon reaped the
benefits of introducing this hugely popular phone. Their
product range grew from accommodating for designers
on the Apple Mac, to mobile devices, tablet devices,
watches and beyond.
 The Marketing Mix

• Another Marketing theory that’s considered to be traditional

is the marketing mix. Made up of the 7P’s. These include
product, place, promotion, price, packaging, and positioning.
All these components, when combined, create a solid
marketing proposal. However, this theory as well as Ansoff’s,
can be drastically improved with the use of contemporary
marketing strategies.
 Traditional Marketing seeks to pull customers
to a product, whatever the cost.
• It is, for this reason, considered to be outdated as it does not consider
the customer they are selling to, more the market that the company
operates within. There are however channels that have developed
from traditional marketing, including digital, that aim for the same
goal, however, use more subtle and approachable mediums so as to
capture their target audience. This may include Pay-Per-Click
campaigns, social media posts, search engine optimization and email
marketing.
 Definition of Contemporary Marketing

• Simple define, contemporary marketing refers to marketing

strategies that are consumer focused. Contemporary marketing
strategy offers products and services based on what the target
market desires rather than what the company wants them to
have, thereby, offering greater support for their customers and
becoming able to take advantage of more advanced marketing
funnels to track progress.
 Difference Between Contemporary Marketing
Orientation Traditional and Marketing Orientation

• The main difference between the contemporary marketing

orientation and traditional marketing orientation is that while
the former is consumer-focused, the latter is company focused.
Traditional marketing is concerned with pulling customers and
does not really consider the customer’s diverse needs. Rather it
is concerned with the market or industry in which the company
operates in.
• Contemporary marketing aims for customers
satisfaction in order to build a relationship with
them. Therefore, the types of marketing strategies
under contemporary marketing are concerned
with the needs of customers.
• Since it first emerged as a distinct business and
management phenomenon, marketing has evolved
significantly with new types of marketing to address
changing trends in the market. This is probably because
most successful businesses use a combination of different
types of marketing whether they’re contemporary or
traditional marketing strategies to get great results.
Business owners now see more reasons to get the best out
of the functions of marketing by enhancing their target
marketing plan.
• Example to deliver more developmental benefits.
The diversity and improvement in marketing now
a days could sometimes prompt one to wonder
what marketing is meant to look like. Our
contemporary marketing world now features
advanced marketing skills and improved
marketing mix.
• Here are some of types of marketing:
1. Business to business – B2B Marketing
2. Business to Consumer – B2C Marketing
3. Brand Marketing
4. Cloud Marketing
5. Telemarketing
6. Guerrilla Marketing
7. Push Marketing
8. Influencer Marketing
 Emerging Types of Marketing and Their
Applications:

• Based on a 2017 report by Kleiner Perkins Caulfield and

Byers, an internet trend investment firm, 3.4 billion
people use the internet. Therefore, the internet has
become an easy and quick way to research, reach and
engage customers.
 1. Search Engine Optimization

• Is majorly concerned with increasing a business visibility

and rankings on search engine results pages. It is simple
way attracting organic traffic of potential customers to a
website. SEO can be maximized with paid adverts
(google AdWords), strategic content marketing and
social media networks.
 2. Pay Per Click Advertising

• This is advertising presented on search engine

result pages or web pages where the advertiser is
only charged based on the number of times
someone clicks on the ads to go to the advertiser’s
targeted website.
 3. Email Marketing

• Is a type of marketing based on the distribution of

messages through emails. Email marketing provides
direct contact with customers and allows businesses to
create relationships with their customers. Updates,
exciting news, and call to actions can be sent directly to
customers.
 4. Referral Marketing

• Is a type of marketing where an individual or customer

pleased with the results gotten from a product refers the
product to another person. It’s a very subtle form of
marketing that can provide great results especially when
the person referring is an influencer in that industry.
 5. Affiliate Marketing

• Is a prominent type of internet marketing

where a third party promotes a product and
earns commission, or a piece of the profit
gotten from every sale made through that
referral.
 6. Video Marketing

• Videos act as one of the most interactive types of online

marketing and can prove to be great way to raise
awareness about a business or product. In fact, according
to mushroom networks, YouTube is the second biggest
search engine. Therefore, video marketing can prove to
be great way to pass messages to target customers.
 7. Inbound Marketing

• Is a very powerful contemporary marketing strategy that

focuses on different tactics to draw customers in and convince
them to buy goods. It is one the results-oriented types of
marketing that uses Content Marketing Institute refers to as “a
strategic marketing approach focused on creating and
distributing valuable, relevant, and consistent to attract and
retain a clearly defined audience”.
 Green Marketing

• Refers to the process of selling products and/or

services based on their environment benefits.
Company are selling products and/or services by first
promoting its benefit that is environmentally friendly
or produced in an environmentally friendly way.
 For green marketing to be effective, there are
three things that needs to be done:

1. Being genuine
a. The company is doing what it claims to be doing in its green
marketing campaign and;
b. He rest of the business policies are consistent with whatever
the firm is doing that’s environmentally friendly.
2. Educating the customers isn’t just a matter of letting
people know hat the company is doing whatever it doing
to protect the environment, but also a matter of letting
them know why it matters.
3. Giving customers an opportunity to participate means
personalizing the benefits of the company’s
environmentally friendly actions, normally through letting
the customer take part in positive environment action.