MARKETING PRINCIPLES, GOALS &

APPROACHES
The golden age of marketing the internet blogs article and email marketing social media,
paper-click, paper impression and more. The problem was email started out as
something fun and helpful until spam was invented.
•Advertising •Campaign
•Promotion •Publicity
•Sale •Marketing
MARKETING
» The American Marketing Association (AMA) defines marketing as the activity set of
institutions and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers clients and the society at large.
3 Important Things to Remember
The functions of marketing are:
1. Communicate
2. Deliver
3. Create value for customer
» Marketing starts with understanding consumer needs and wants deciding which
target markets the business can serve best and developing a compelling value proposition
by which the organization can attract keep and grow targeted consumers. Today’s
marketers find ways to engage their customers and build deep customer. Relationships
every marketing activity or strategy is anchored on concepts or orientation

What is a concept?
» A concept is a general notion or idea about the subject marketing concepts are
directly related to the needs, wants and demands of our customer.
What is a need?
» A need is the basic human requirement to live
What is a wants?
» A wants is not essential for basic survival and often shaped by culture
What is a demand?
» A what is demand when needs and wants are backed up by your ability to pay and to
consume what will satisfy your needs and wants

Marketing concepts are the basis of an organization to design and carry out their marketing
strategies. There are five marketing concepts. Namely, production concept, product
concept, selling concept, marketing concept and societal marketing concept.

PRODUCTION CONCEPT
» A production concept it is the oldest marketing concept in business. Customers buy
a product that is widely available at a cheaper price. Consumers favor widely available and
affordable products that are made possible by a business. Efficient production and
distribution processes businesses and companies that do not give any importance to the
needs and wishes of customers in terms of updating their products and rely solely on the
efficiency of their production processes focus on the use of the production concept.
» The production concept is the oldest marketing concept and was extremely popular
during the period when the market was not yet that competitive. These sellers were of the
mindset that people would continue to consume more of their products if industries were
supplying more goods in the market at a low price. The demand was high and there was no
competition. This company made use of the production concept to lower the price and to
reach a wider market. The company improved on their production and assembly line and
other manufacturing processes to lower the cost. This is still concept of a production
concept because their motivation to lower the price was not spurred primarily by the
customer's need for a less expensive car but for the company's desire to reach a wider
market and increase company profit.
» The product concept focuses more on quality performance and innovation. They
satisfy customer needs through product development. To be more specific, these
companies build products that are always at the top of their game and always the pioneers

SELLING CONCEPT
» The selling concept is a concept that focuses on the increase of sales whether the
customer needs it or not, consumers won't buy enough products and services unless you
persuade them. Selling is the foundation of this concept especially when product benefits
are hard to explain. As the sale of your business increases the profitability would increase

MARKETING CONCEPT
» The marketing concept focuses more on the customers in finding out ways to have
products that will satisfy their needs and wants. The customer is at the core of every
business activity. The marketing concept is also known as the full
strategy meaning businesses are so powerful, customer will always return and buy more
profitability would increase.

SOCIETAL CONCEPT
» The societal marketing concept is all about the development of human and society's
welfare. The marketer has to come up with better marketing strategies by considering the
society's welfare requirements and customer demand.

REMEMBER
Marketing is communicating, delivering, and creating value for the customer.
1. production concept - production efficiency, low price.
2. Product concept Innovation, product development
3. Selling concept sales driven and persuasion skills
4. Marketing concept - customer centered
5. Societal marketing concept society and customer center
 MARKETING PRINCIPLES AND
STRATEGIES
Marketing
» is not SELLING Marketing is not just ADVERTISING but a creation of value.
» 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.

5 CORE CONCEPTS IN MARKETING

1. Customer needs, wants, and demands
2. Market offerings
3. Customer value and satisfaction
4. Exchanges and relationships
5. Markets
DEMAND

CUSTOMER

NEEDS WANTS
NEEDS
» defined as physiological necessities required for human to survival.
WANTS
» are more psychological, indicating preferences that can improve the consumer’s life
conditions.
DEMAND
» is a total demand of all potential customer’s for specific product/ services over a
specific period in a specific market area.
Market offerings
» serve to fulfill customer’s needs and wants. The product is an important element of
market offerings and products can run the range of pure physical products to pure services,
or a combination of both.
CUSTOMER VALUE AND SATISFACTION
» Satisfied customers who find value in a product are likely to patronize it again. The
goal, therefore, is to consistently meet or even exceed consumer expectations.
EXCHANGES AND RELATIONSHIPS
» The exchange consists of obtaining what one wants by offering something in return.
The transaction could pertain to an exchange of goods and services for money. The point of
exchange is to foster a relationship. Marketers must not only focus on getting new
customers.
MARKET
» The market is composed of all people who buy the product, as well as those who
could potentially purchase the products.
THE MARKETING PROCESS
 » Prior to the marketing of specific products and/or services, marketing companies
conduct a thorough analysis of the external environment, the market, its competitors and
customers, and an incisive audit of its internal operating characteristics.
1. Understand the market and its consumers, and satisfy their changing needs and wants.
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 consumers.
5. Build and maintain mutually beneficial and profitable customer relationships.
6. Capture customers value to create profits.
7. Promote value transactions with full regard to society’s well being
THE ROLE OF MARKETING

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

CLASSIFICATIONS OF PRODUCTS/ GOODS

 1. According to Use 2. According to Differentiation
•Consumer goods • Undifferentiated goods
• Industrial goods • Differentiated goods
3. According to Durability 4. According to Type
• Consumable goods • Convenience goods
• Semi- Durable goods • Shopping goods
• Durable goods • Specialty goods
• Unsought goods

What is more Difficult to Market, Products or Services?

4 MAJOR ATTRIBUTES
1. Intangibility 2. Variability
3. Inseparability 4. Perishability
Supermarkets usually provide all the consumer’s needs but choices like brand preferences
vary according to consumer’s wants
TRADITIONAL APPROACHES TO MARKETING
1. The Production Concept » The production concept assumes that customers prefer
products that are inexpensive, affordable, and widely available.
2. The Product Concept » The product concept assumes that customers will always prefer
and patronize products of high quality.
3. The Selling Concept » The selling concept emphasizes aggressive selling and promotional
efforts. It assumes that customers are generally timid and must be persuaded into buying.
CONTEMPORARY APPROACHES TO MARKETING
1. The Marketing Concept » The marketing concept considers the needs of both the
customer and the product offered.
2. The Relationship Marketing Concept » The relationship marketing concept believes that all
marketing activities are for the purpose of establishing, maintaining, and strengthening
meaningful long-term relationships with customers.
3. The Societal Marketing Concept » The concept is similar to the marketing concept.
However, beyond providing solutions to customers, the societal marketing concept goes
further to include considerations that protect the customer’s well-being and interests, as
well as the interests of the environment
WHAT IS MARKETING MIX
» The term Marketing Mix was developed by Neil Borden who first started using the
phrase in 1949.
» Marketing mix refers to the set of actions, or tactics, that a company uses to promote
its brand or product in the market.
 Product refers to the tangible good or intangible service offered by the business to
the target consumers.
 Entrepreneurs create products because of an existing need or want.
 Remember a product that cannot meet the needs of the consumers will not stay
long in the market.
 Price regulates the value of a good or service to the buyers, also to the sellers.
  Price means the money value of a product or service expressed in terms of peso or
centavos. It is also the amount of money needed in order to acquire a product or
service and its accompanying services.
 The term place in the marketing mix refers to the place where the target consumers are.
 The entrepreneur must establish his/her business product in the most strategic place or
location.
 Most entrepreneurs equate strategic place with a location or site where there are
plenty of people during a particular time.
 Promotion in marketing mix refers to the mode of taking the presence and
attributes of the product to the target consumers.
 It is how the business communicates to the target consumers the relevant
information about the product including its benefits, price, and position in the
market, thus forms the consciousness of the product in the attention of consumers
and causes their desire to buy it.
PROMOTION STRATEGIES
1. Advertising » television, print ads like magazine, newspaper, billboards
2. Publicity » formal statement or press release
3. Personal Selling » sales person
4. Sales promotion » discounts, coupons, gift certificates, and cash rewards
5. Direct Marketing » Online selling.

4Ps of MARKETING MIX

•Product •Price
•Place •Promotion

CUSTOMER RELATIONSHIP;
CUSTOMER SERVICE
WHAT IS RELATIONSHIP MARKETING?
PRIDE & FERREL 2017 » Establishing a long term, mutually satisfying buyer & seller
relationship
FORBES.COM » strategy designed for customer loyalty, interaction, and long-term
engagement to be fostered.
SERRANO » includes activities aimed at developing and managing trusting and long-term
relationships with larger customers
NATURE OF RELATIONSHIP MARKETING
 Relationship marketing is simply building and managing relationships.
 There are two key elements of relationship marketing: the promise and trust.
TYPES OF RELATIONSHIP MARKETING
1. Experiential marketing » allows the consumer to experience the brand, usually by utilizing
multiple touch points and targeting multiple senses.
2. Permission marketing » The focus of this type of marketing is to encourage the customers
to be a part of a longer-term marketing campaign by inviting them to join and providing an
incentive for them to remain within the campaign
3. One-to-One marketing » This type of relationship marketing focuses more on the
individual consumer with the company customizing their products and services for that
individual. In this case, companies choose to devote their marketing efforts on their most
valuable customers.
BENEFITS OF RELATIONSHIP MARKETING
A. Understanding customer characteristics; » the company can segregate its customers into
groups based on their characteristics like purchasing power, frequency and volume of sale
transactions.
B. Delivery and meeting expectations » if the company knows what its customers’ needs are,
it will help reduce wastage due to trial and error methods .
C. Repeat Business » Sellers should maintain good attitude to the buyers. By doing this,
buyers will feel that they do not need to switch sellers.
D. Prevents negative transition » Trust and loyalty go hand in hand and it is super beneficial
for all business. It will help prevent customers from turning to competitors.
E. Word-of-mouth marketing
F. Identification with the company » the benefits are reaped both by the company and the
customers. It helps customers identify more with the company.
G. Product Market Expansion » the company’s employees must be ready to deliver beyond
the company’s boundaries on customer demand.

CUSTOMER SERVICE
 ✓Customer service is the process of ensuring customer satisfaction with the
product or services.
 Customer service can take on many forms- salesperson assistance, product delivery,
technical advice, help desks, or other means. Retail establishment have realized that
 customers are not only drawn to stores because of their product offerings and
convenient locations, but also by the superior customer service they provide.

MANAGING CUSTOMER SERVICE QUALITY

 Establishing service objectives with specific and measurable targets
 Committing sufficient organizational resources towards the achievement of these
targets
 Collecting customer feedback on service and connecting them
 Reviewing target accomplishment ✓ Identifying customer service weakness and
connecting them
CUSTOMER SERVICE PRACTICES IN THE PHILIPPINES
 Free delivery
 Automated in-home ordering system
 Free gift wrapping/ plastic book jacket
 Merchandise/ document pick-up
 Free parking
 Valet parking
 Reservation, installment plans
 Complimentary refreshments, waiting lounge
 Help desks, touch phone access, 24-hours customer hotline
 Free Appliance Installment
 Scheduled for bouquet delivery
 Free alteration on garments
 Complimentary messages
 Drive-thru
CUSTOMER RELATIONSHIP MANAGEMENT
» CRM is a process of managing an organization’s interactions with the current and
future customers.
» The rationale fro CRM is the recognition that companies can sustain long-term
profitability by attracting and maintaining their most valuable customers.
CUSTOMER LIFETIME VALUE
» CLV is the forecasted sales or profits that a company can derive from the entire span
of the future relationship with a particular customer.
» A CLV can be based upon the potential value and profitability of their relationship
with the company
SUCCESSFUL CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES
1. Adopt the right mindset towards customer service
2. Purchase or develop Customer Relationship Management software.
3. Quantify customer acquisition and retention costs.
4. Develop and implement a customer service training program.
5. Empower salesperson to make decisions.
6. Establish communication lines between your customer and customer contact staff.
7. Shop your competition.
8. Keep innovating customer service.
9. Promote genuine customer service with a passion.