Principles of Marketing

What is marketing?

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Basic Concept of Marketing:

Needs refer to the basic necessities of a human being

Wants preferred products of an individual that will satisfy your needs

-Involves the continuous improvement of one’s talent,

Self-
skills, and etc.
Actualization
Needs

Esteem Needs -strong desire to be recognized of his efforts

and accomplishment.
Social Needs - one’s sense of belongingness to a
group or association.
Safety and Security Needs
- things that make one feels secured.

Physiological Needs -the need for food, clothing

and shelter
1.1 Abraham Maslow’s Hierarchy of needs

Demand one’s need or want for product backed up by his buying power to purchase a product.

Exchange and transaction

Transaction: amount, terms and conditions, date of transaction and other agreed upon
conditions are present.
Exchange: involves getting something in return.
Market: the people patronizing or already using the company’s product or availing its various services.
A place where an exchange or transaction happens between a firm and a customer.
Products: anything that a buyers buy. It is anything that a company offers to satisfy the market’s needs
or wants.

Marketing Mix: this is also known as the Four (or Seven) Ps in marketing.

Prepared by: Ms. Chloie Rago

Not For Sale

Principles of Marketing

4 Ps 7 Ps
Price Price
Place Place
Promotion Promotion
Product Product
People
Physical Evidence
Process

Marketing Philosophies:
A company is said to be following:
Product concept if product performance is given priority.
Production concept if a company values the importance of the availability of products at all times with a
reasonable price.
Selling concept where firms hire marketers or sales people to do aggressive marketing for the firm’s
product or services.
Societal marketing concept firms look first into the welfare of society in general and deliver their
offering in a way that satisfies their market more effectively and efficiently than their competitors.
Marketing concept firms determine first the needs and wants of their potential market, then device
ways, or services to satisfy these needs and wants more effectively and efficiently than their
competitors.

Benefits of Marketing (Explain each benefits)

1. It creates employment.
2. It helps develop more and better products.
3. It provides better profit
4. It improves the quality of life
5. It produces more entrepreneurs
6. It contributes to economic development.

Planning the business enterprise

An individual planning to put up a business need to consider the following: what business to
enter, who will be the target market, how to beat competitors, where to get capital needed for the
investment, to purchase or not to purchase an equipment, and how to better serve its market.

Importance of Business Planning

Through planning, one can:
1. Apply for loans; 7. Minimize or eliminate losing capital
2. Determine the needed capital; because everything is well thought of;
3. Evaluate actual performance against set targets; 8. Result in better preparedness for sudden
4. Lessen impact of business failure; development;
5. Lessen risk of doing business; 9. Lead to better coordination among diff.
6. Minimize mistake; departments in the company
10. Program activities in advance.

Prepared by: Ms. Chloie Rago

Not For Sale

Principles of Marketing

Strategic Planning and Marketing Plan

Strategic Planning
A process of developing and maintaining a strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities. –Philip Kotler (2003)
Mission Statement stipulates what the firm values and its reason for existence.
Business portfolio the collection of businesses and products that make up the company follows.

Strategic Planning vs. Marketing Plan

Strategic Planning involves deciding on marketing strategies that will help a company achieve its overall
strategic objectives.
Marketing plan includes the executive summary current marketing situation, environmental analysis ,
marketing objectives, marketing strategies, action programs, budget and control.

Parts of Marketing Plan (Research and Explain)

1. Executive Summary
2. Current Marketing Situation
3. Environmental Analysis
4. Objectives
5. Marketing Strategies
6. Action Programs
7. Budget
8. Controls

Process of Strategic Planning

1. Drafting the Company’s Mission
2. Setting of Company’s objectives
3. Designing the Company’s Business portfolio
**Two ways to assess business portfolio**
a. Analysis of the current portfolio of the company
 Four Strategies for Strategic Business Unit
o Build its share
o Hold its share
o Harvest
o Divest
b. Development of the company’s growth strategy

Prepared by: Ms. Chloie Rago

Not For Sale

Principles of Marketing

Growth-Share Matrix or the

Boston Consulting
Group (BCG) STARS QUESTION MARKS Matrix
MARKET GROWTH RATE

HIGH
CASH COWS DOGS

LOW

HIGH LOW

RELATIVE MARKET SHARE

A. Stars – high-growth rate/high-share business OR product that needs heavy investment to
finance its rapid growth
B. Cash cows – low-growth/high-share business or products. Product in this category need less
investment to maintain their market share. SBU in this classification produce a lot of cash
which supports the other units.
C. Question Mark – low market share in high-growth market. SBU in this category require more
budget or cash to hold its market share.
D. Dogs – low-share and low-growth status.

Prepared by: Ms. Chloie Rago

Not For Sale