Republic of the Philippines

DEPARTMENT OF EDUCATION
Region I
Schools Division Office I Pangasinan
Pangasinan National High School
Lingayen, Pangasinan

PRINCIPLES OF
MARKETING
Principles and Goals of Marketing

Quarter 1 - Week 2 – Module 1

Most Essential Learning Competency:Define and

understand marketing

• Principles
• Goals

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What I Need to Know
This module was designed to help you better understand the essential concepts in marketing as
Accountancy, Business, and Management (ABM) students who could be entrepreneurs, business owners,
or company employees in the future!. This is the Printed type of Modular Distance Learning which is one
of the modalities of teaching-learning process in the New Normal Form of Education.
At the end of this module, you are expected to define and understand the principles and goals of
marketing.
To help you achieve this, here are our specific OBJECTIVES:
✓ Identify key concepts/terms and goals of marketing
✓ Differentiate classifications of products
✓ Cite solutions for the four attributes of service

What I Know
Directions: Read each question/sentence carefully and choose the letter of the best answer.

_____1. It is 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.
A. Management B. Accounting
C. Marketing D. Business Ethics
_____2. In what product level are products that are very expensive and have long service lives classified?
A. Core B. Formal C. Informal D. Augmented
_____3. It provides a product or service a unique distinguishing name, logo, symbol, or image which is
used to differentiate it from other similar products and services.
A. Branding B. Trademark
C. Patent D. Copyright
_____4. This is an attribute of service in which no service provider can render the same service in exactly
the same way every single time because services are performed by human beings.
A. Intangibility B. Variability
C. Inseparability D. Perishability
_____5. These are physiological necessities required for human survival which includes foods, shelter,
and clothing.
A. Needs B. Wants
C. Demands D. Value
_____6. It is a group of individual or organizational customers who have both the willingness and
financial capability to purchase a particular product or service.
A. Business partners B. Stakeholders
C. Investors D. Market
_____7. It refers to the total demand for all brands of a particular product or service.
A. Primary Demand B. Selective Demand
C. Potential Demand D. Latent Demand
_____8. It is the measure of how well customer expectations from a purchased product or service have
been met.
A. Value B. Utility
C. Demand D. Satisfaction
_____9. It refers to the quantitative difference between the expected benefits and costs of a particular
product or service in comparison to similar product or service
A. Customer-perceived value B. Customer Value Proposition
C. Value Expectation D. Benefit Value
_____10. This is a comparison of the benefits offered by a company’s products to its customers in
relation to the amount it is asking customers to pay.
A. Customer-perceived value B. Customer Value Proposition
C. Value Expectation D. Benefit Value

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What’s New
Title of Activity: What Am I To You?
Directions: Using the concept map drawn below, list 10 words you think are related to marketing and write
them on the spaces near the arrows. After listing, make use of these words to come up with your definition
of marketing Write your definition on the lines below the concept map.

For me, marketing is

_____________________________________________________________________________________________
_____________________________________________________________________________________________
___________________________________________________________________________________.

What is It

Lesson 1: PRINCIPLES and GOALS of MARKETING

Thank you for doing your best to assess yourself of what your initial understanding of
marketing is! To help you have a clearer concept of marketing, let’s get started with our lesson
proper.

 What is MARKETING?
It is 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
according to American Marketing Association (AMA). The key to this definition is the word
“value”. Thus, marketing can be summarized as the creation, communication, and the delivery of
value to customers.
Alternately, for the Philippine Marketing Association (PMA), it is the science and profession
guided principally by the universal principles of ethics, corporate citizenship, and corporate social
responsibility. Therefore, marketers must avoid offering products and services that may be
harmful to one’s health and well-being or promote violence and immorality.

GOALS of MARKETING
As a marketer, you must bear in your mind and heart the following goals of marketing:
1. Understand the market and its consumers, and satisfy their changing needs and wants.

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2. Introduce and innovate products and services that improve human condition and the
quality of life
3. Design and implement effective customer-driven marketing strategies.
4. Develop marketing programs that deliver superior value to customers.\
5. Build and maintain mutually beneficial and profitable customer relationships
6. Capture customer value to create profits
7. Promote value transactions with full regard te the well-being of societies.

 THE MARKETING PROCESS

The Situation Analysis Marketing Strategy Formulation

• Micro/Macro Environment • Market Segmentation
• The Market • Target Market Selection
• Customers • Value Proposition
• Competition • Product Positioning
• Strengths, Weaknesses,
Opportunities, and Threats

Implementation and Control Marketing Mix Decisions

• Implementation • Product
• Monitoring • Price
• Marketing Mix Adjustment • Place
• Promotion

Before marketing a product/service, a marketing company conducts a thorough analysis of

the external environment, the market, its competitors and customers, and an incisive audit of
its internal operating characteristics. This is followed by the formulation of relevant marketing
strategies coupled with a calibrated response using the elements of marketing commonly
known as 4P’s which stand for Product, Place, Price, and Promotion. As soon as the marketing
strategy is implemented, regular monitoring takes place in order to identify deviations and, if
necessary, make adjustments to any or all elements of the marketing mix.

MARKETING PRODUCTS

Products or goods are physically tangible items. As such, they are generally perceivable by
the human senses and can, therefore, be inspected prior to purchase.

PRODUCT LEVELS
1. CORE/GENERIC PRODUCTS
All products have a core/ generic product, which houses its core or generic function
Ex. Wristwatch “to tell time”
Product differentiation would not be possible and so marketing would be difficult.
2. FORMAL PRODUCT
Manufacturers incorporate unique styling, advanced features, charge varying selling prices,
etc. just to differentiate their products from competitors.
Ex. Branded cars
3. AUGMENTED PRODUCT
Certain products that are very expensive and have long service lives require warranty,
service, repairs and maintenance, installment terms, installation, credit terms, etc.
Ex: condominiums, major household appliances
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  CLASSIFICATIONS OF PRODUCTS/GOODS

According to USE:
➢ Consumer Goods
➢ Industrial Goods

According to DIFFERENTIATION:
➢ Undifferentiated Goods
➢ Differentiated Goods

PRODUCTS\GOODS According to DURABILITY:

➢ Consumables
➢ Semi-Durables
➢ Durables
➢

According to TYPE:
➢ Convenience Goods
➢ Shopping Goods
According to USE: ➢ Specialty Goods
➢ Unsought Goods
1. Consumer goods are purchased for personal consumption and/or for household use.
Ex. Milk, detergent soap
2. Industrial goods are purchased in order to make other goods, to serve as a raw material or input in
the production of other goods.
Ex. Aluminum used to manufacture kitchen tools
According to DIFFERENTIATION:
1. Undifferentiated goods are products whose physical characteristics are so identical. Most are
sourced from nature.
Ex. fruits
2. Differentiated goods are varied in their characteristics and features that make them distinguishable
from one another.
Ex. Different branded cars
BRANDING - The ability of manufacturers to successfully distinguish their goods
products from other competitors is called branding through a unique name, logo, symbol, or image.
BRAND EQUITY - Once a brand acquires customer recognition, a positive market
reputation, and goodwill, higher selling prices can be charged, sales revenues are generated, and
higher profit margins are realized. This is because customers begin to attach value to the brand than
to the product itself. Appreciation in a brand’s value from the customer’s perspective is called brand
equity.
According to DURABILITY:
Consumable – benefits can only be used by a consumer for a short period of time.
Ex. Food and drinks, detergents and toiletries
Semi-durables – provide benefits for a longer period of time, usually spanning several months.
Ex. Clothes, shoes, bags
Durables – manufactured to last a long time, capable of providing consumers with years of
beneficial use, usually expensive and many require an augmented product level.
Ex. Automobiles, houses, appliances, furniture
According to TYPE:
Convenience goods are purchased frequently, usually inexpensive, and do not require much
purchase effort and evaluation.
Shopping goods are purchased less frequently than convenience goods, relatively more expensive,
and require some amount of information search and evaluation prior to purchase.

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 Specialty goods require an unusually large effort on the part of the consumers to acquire. The
consumers are usually willing to travel great distances to where these goods can be purchased.
Unsought goods are goods that consumers seldom actively look for, and are usually purchased for
extraordinary reasons, such as fear or adversity, rather than desire.

What’s More

Title of the Activity: Agree or Disagree

Most Essential Learning Competency: Define and understand marketing principles,

goals and approaches
K to 12 BEC CG: ABM_PM11-Ia-b-1, ABM_PM11-Ia-b-2,
ABM_PM11-Ia-b-3 and ABM_PM11-Ia-b-4

Directions:Analyze the following research titles. State your reasonwhy you will
use or will not use a quantitative type of research.
Agree or Disagree: Draw a smiley emoji (☺) on the line if you agree to the statement and sad face
emoji () if you do not agree to the statement given.

For items 1-5: The five steps consumer decision process includes:
__________1. Need identification
__________2. Information search and processing
__________3. Identification and evaluation of alternatives
__________4. The purchase decision
__________5. Post-purchase behavior

For items 6-10: The marketing mix definition is about putting the right product or a
combination thereof in the place, at the right time, and at the right price. The
following are elements of marketing:
__________6. Product- that may either be a physical product or a service.
__________7. Place- where the product is purchased.
__________8. Price- how much the product cost.
__________9. Promotion- consists of the communication tools used to effectively get the
company's message out.
__________10. Physical evidence- business’ presence and establishment.

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Title of the Activity: Start Your Marketing Journey

Most Essential Learning Competency: Define and understand marketing principles,

goals and approaches

K to 12 BEC CG: ABM_PM11-Ia-b-1, ABM_PM11-Ia-b-2, ABM_PM11-

Ia-b-3andABM_PM11-Ia-b-4
Directions: Read carefully and follow the instructions given to each activity.
I. Identify the marketing mix needed in selling the product/services that you want
to sell in the future by filling out the space provided.
Product:
Guide Question: Identify the type of product/service that you want to sell?

____________________________________________________________________

Place:
Guide Question: Where will it be sold?

___________________________________________________________________

Promotion:
Guide Question: What medium are you going to use when you promote your
product/service?

____________________________________________________________________

Price:
Guide Question: You will sell the product/service at what price?

_____________________________________________________________________
People:
Guide Question: Who will be your employees? (if needed)

___________________________________________________________________

Process:
Guide Question: How will it be produced or sold?

___________________________________________________________________

Physical Evidence:
Guide Question: Describe the business environment of the product/services you plan to sell

____________________________________________________________________

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II. List down your short- and long-term marketing goals and the contemporary approach that you
will use for your future business using the lines provided below.
Product: ____________________________ (write you products/services)
My short term marketing goals:
1. __________________________________________________________________
2. __________________________________________________________________
3. __________________________________________________________________

My long term marketing goals:

1. __________________________________________________________________
2. __________________________________________________________________
3. __________________________________________________________________
The contemporary approach that I will use in marketing my product/service is
___________________because____________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_________________________________________________________________.

What I Have Learned

What I Can Do
Search for 1 successful business and 1 failed business in your community and describe their
marketing strategies. Identify the area of which they differ that made the success of the other and
failure of the other.
Success Stories
Name of Business:
Owner:
Adress:

“What Went Wrong” Story

Name of Business:
Owner:
Address:

Additional Activities
Present (virtual) your output to the class of What I Can Do.
a. face to face
b. video recording
c. online presentation
d. other media facilities available

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