Principles

of
Marketing

PRELIMINARY – WEEK 1-2

SECOND SEMESTER S.Y.2021-2022

NAME: ________________________________________________

GRADE/SECTION:11- ONYX (ABM)

TEACHER: MS. VERNICE B. LIBOSADA________________________

CHAPTER 1: MARKETING PRINCIPLES AND STRATEGIES

NAME: ______DATE: ____

GRADE/SECTION: 11- ONYX (ABM) WEEK: ONE-TWO
TEACHER: MS. VERNICE B. LIBOSADA SECOND SEMESTER S.Y.2021-2022

LEARNING OUTCOME(S):
1. Define and understand marketing.
2. Describe the traditional approaches to marketing.
3. Discuss the goals of marketing.
4. Identify and explain contemporary marketing approaches.

INTRODUCTION
Organizations earn revenues and generate profits by offering products and services.
These are both individual customers and organizations. Profits are generated when the products
offered by the organization are purchased and paid by the customer. Money is the typical mode
of payment. Without Marketing, most businesses may cease to exist and may not be able to
sustain their operations. For this reason, marketing is often referred to as the “lifeblood” of every
business.

MARKETING
Marketing for profit aims to increase sales of products or services while marketing for
non-profit purposes aims to communicate messages for social purposes. The American
Marketing Association defines marketing as “the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value customers,
clients, partners, and society at large”.
According to Philippine Marketing Association, marketing is a science and a profession
guided principally by the universal principles of ethics, corporate citizenship, and corporate
social responsibility. Marketers must avoid offering products and services that may be harmful to
one’s health and well-being or promote violence and immorality.
Products or services that serve no purpose or contribute nothing to individual and societal
well-being should not be marketed.

GOALS OF MARKETING
The goals of marketing can be summarized as follows:
1. Understand the market and it’s customers 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 customer value to create profits.
7. Promote value transactions with full regard to society’s well-being.
THE MARKETING PROCESS

The Situation Analysis Marketing Strategy

• Microenvironmental
• Macroenvironment
Formulation
• The market • Market Segmentation
• Customers • Target Market Selection
• Competition • Value Proposition
• Strengths, weaknesses, • Product Positioning
opportunities, and threats

Implementation and Control Marketing Mix Decisions

• Implementation • Product
• Monitoring • Price
• Marketing mix adjustment • Place
• Promotion

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

Product Levels

Core or Generic Products

It is defined as the purpose for which the product was created.
Example 1:
The core or generic function of a wristwatch would be to “tell time”.
Example 2:
The core or generic function of an automobile is “to transport”.

Core or Generic Products

However, physical products cannot be effectively marketed on the sole basis of their core
or generic function.

Formal Products
This level includes factors that could effectively differentiate automobiles manufactured
by one company over manufactured by others with same core or generic function.
Example:
Car manufacturers incorporate unique styling into their automobile models, utilize
different hood and grill designs, and others.

Augmented Products
These are certain types of products/goods, particularly those that are very expensive and
have long service lives. An augmented product is necessary in the case of products/goods, such
as condominium units. Motor vehicles, and major household appliances.

Classification of products/goods
Products that are marketed can be generally classified according to use, differentiation,
type, and durability.
According to Use: Consumer and Industrial Goods
Consumer goods are goods that are purchased for consumption.
Industrial goods are purchased in order to make other goods, to serve as a raw material
or input in the production of other goods.

According to Differentiation: Undifferentiated and Differentiated Goods

Undifferentiated goods are products whose physical characteristics are so identical, that
it would be difficult, to distinguish one purchased from one vendor or another.
Example:
Rock salt bought from different vendors in wet market.
Differentiated products are varied in their characteristics and features that they are
readily distinguishable from one another.
Example:
Branding of colored vehicles of each model from all local car manufacturers.

According to Durability: Consumable, Semi-durable, and Durable Goods

A consumable is a product whose benefit can only be used by a customer for only a short
period of time, sometimes only a few minutes. Semi-durables provide benefits to the consumer
for a longer period of time, usually spanning several months. Durables are products that are
manufactured to last a long time. They are capable of providing consumers with years of
beneficial use.

According to Type: Convenience, Shopping, Specialty, and Unsought Goods

Convenience goods are products that are purchased frequently, are usually inexpensive,
and do not require much purchase effort and evaluation. Shopping goods are purchased less
frequently that convenience foods, are relatively more expensive, and require some amount of
information search and evaluation prior to purchase.
Specialty goods are goods that require unusually large effort on the part of consumers to
acquire. Unsought goods are goods that consumers seldom actively look for, and are usually
purchased for extraordinary reasons or desire.

MARKETING STRATEGIES
What is more difficult to market, PRODUCTS or SERVICES?
Services are generally considered more difficult to market due to it’s four major attributes:
• Intangibility
Services are intangible. This is the first reason that makes the marketing of services
difficult.

How do marketers address the intangible attribute of services?

Service marketers commonly resort to the practice of making their services tangible.
• Variability
No service provider can render the same service exactly the same way every single time.

How does marketing organizations address the problem of service variability?

The problem can best be addressed by developing and implementing standard operating
procedures on how the service should be rendered.
• Inseparability
Services are rendered and consumed simultaneously. This limits the ability to render the
service to a large number of people, as the service provider’s presence is always a
component in the production of the service.
 • Perishability
Unconsumed services cannot be stored of warehoused.
How can marketers maximize revenues and avoid lost service perishability?
The key is the implementation of a marketing strategy called capacity management.

NEEDS, WANTS, AND DEMANDS

Needs are defined as physiological necessities required for human survival. These
universal needs include food, shelter, and clothing.
Wants are more physiological, indicating preferences that can improve the consumer’s
life condition.
Demands are wants for specific products that are backed up by an ability and willingness
to buy them.

Market and Market Demand

Market is defined as the group of individual or organizational customers who have both
the willingness and financial capability to purchase a particular product or service.
Market demand is the total demand of all potential customers for a specific product/
service over a specific period in a specific market area.

MEASURING MARKET DEMAND

1. Primary Demand
It refers to the total demand for all brands of a particular product or service.
2. Selective Demand
It is the demand for a specific brand of product or service.
3. Potential Demand
It was defined when there is no demand yet for a particular product/service, but there
exists a market with sufficient financial capability to purchase.
4. Latent Demand
It results when customers in a market are unable to satisfy specific desires because there
is no product/service in the market that can satisfy them.
5. Current Demand
It is define as the number of people of a particular market at present that would actually
purchase the product or service offered.

UTILITY, VALUE AND SATISFACTION

Utility refers to the total satisfaction consumers can receive from the consumption or
service. Value refers to the value customers place on a product or service. Satisfaction is the
measure of how well customer expectations from a purchased product or service have been met.

COMPETITION
A competitor is any company in an industry or a similar industry that offers a similar
product or service.

LEVELS OF COMPETITION
A firm’s competition can be classified either as a desire, generic, form, or brand
competitor.

Desire Competitors “What desire do I want to satisfy?”

• Eat
• Text
• Read
• Drink
Generic Competitors “What do I want to eat?”
• Sandwich
• Dimsum
• Pasta
• Chicken
Form Competitors “What kind of Sandwich?”
• Chicken
• Cheese
 • Hotdog
• Hamburger
Brand Competitors “What kind of hamburger sandwich?”
• Wendy’s
• McDonald’s
• Jollibee
• Burger King

TRADITIONAL APPROACHES TO MARKETING

1. The Production Concept
This concept assumes that customers prefer products that are inexpensive, affordable, and
widely available.
2. The Product Concept
This 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.

CONTEMPORARY APPROACHES TO MARKETING

1. The Marketing Concept
It considers the needs of both the customer and the product offered.
2. The Relationship Marketing Concept
This 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 goes further.
CHAPTER 1: MARKETING PRINCIPLES AND STRATEGIES

NAME: ______DATE: ____

GRADE/SECTION: 11-ONYX (ABM) ______WEEK:
ONE-TWO
TEACHER: MS. VERNICE B. LIBOSADA SECOND SEMESTER S.Y.2020-2021

LEARNING OUTCOME(S):
1. Define and understand marketing.
2. Describe the traditional approaches to marketing.
3. Discuss the goals of marketing.
4. Identify and explain contemporary marketing approaches.

ACTIVITY 1 – ESSAY (10 points each)

1. A company makes a pair of shoes ( a semi-durable) that can last for more than 10 years. Is this
an advantage or a disadvantage for its customers? What do you think?
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2. People “need” to eat. Some “want” to eat pizza or a sandwich. Is it possible for a “want” not to
emanate from a “need”? Explain by relating your own experience.
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3. Marketing involves, among others, “the delivery of value to consumers”. However, the value a
consumer places on a particular product or service is subjective. If you are a marketer, how can
you increase your customer’s assessment of your product/service? Use a product of your choice
as an example.
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Source: Principle of Marketing by Real C. So and Oscar G. Torres Published by Vibal
Group, Inc.

Compiled/Prepared by:

VERNICE B. LIBOSADA
Teacher

Checked by: Approved by:

LAUREANO R. FERANIL Ma.Ed LEA S. LONTOC, Ed, D.

Principal School President/Director