PRINCIPLES of

MARKETING
CHAPTER 1: Marketing Principles and
LC1
Strategies
SUBJECT DESCRIPTION:
The course deals with the principles and practices in marketing
goods and services. It also focuses on the development of
integrated marketing programs that will help grow the business

LEARNING COMPETENCIES
Define and understand marketing
CHAPTER 1: Marketing Principles and
LC1
Strategies
WHAT IS
MARKETING?
ACTIVITY/TASK

Vicki: To me the answer is pretty

straightforward – marketing is all
about working out how you can get
consumers to buy more products from
your firm.
Susie: That’s fine, but how do you
actually do that? I think marketing is the
various tasks that you undertake to get
consumers to buy more, such as having
special offers and developing great new
products.
Natalie: But is it just about getting
people to buy more? For instance,
McDonald’s could get people to buy
more Big Macs if they started selling
them for only Php40.00 – I’m not sure
that they would really want to do that.
Paul: No they wouldn’t – they would want to
increase profits, not sales. That’s why in their
marketing they train their staff and continuously
open more stores, which have lots of seating and
parking, as well as having playgrounds and drive-
thrus. At McDonald’s, their marketing all
about convenience and service.
Mitchell: Sure, McDonald’s do all
that, but they focus on value as
well. For just Php149.00 you can
get a burger combo. So I think
that a key part of marketing is
having a low price.
Jay: But hang on a bit, there are
firms that like to charge high
prices. For example, with an
expensive restaurant, having high
prices is a sign of the quality of
the food and their service
Mike: And those types of
restaurants don’t even need to
advertise. They gain new
customers through
their reputation and word-of-
mouth.
Bianca: You know what you’re
talking about is having a
strong brand. That’s what I think
marketing is all about. A good
example is BMW. Their cars are a
status symbol, so people are willing
to pay more to own one.
Barry: So what you’re saying is the
key to marketing is lots
of advertising in order to build a
strong brand so consumers will pay
more and buy more.
Julie: But isn’t it more than just
advertising? To build a strong brand,
don’t you need to start with a good
product first? There’s no point advertising
something that people won’t buy again.
So I think marketing starts with a good
product.
Charlie: But to have a good product, you
first have to understand the customer and
their needs. If you do that right, then you
know what products they want, how much
they will pay, and how to advertise. So I
think the key to marketing is
truly understanding the consumer and
meeting their needs.
PRESENTATION
OF OUTPUT
CHAPTER 1: Marketing Principles and
LC1
Strategies
MARKETING

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution (4 Ps) of ideas,
goods and services to create exchanges (with customers) that
satisfy individual and organizational objectives.
CHAPTER 1: Marketing Principles and
LC1
Strategies
MARKETING

Satisfying customer needs (creating utility) through the exchange

process.

- Philip Kotler
CHAPTER 1: Marketing Principles and
LC1
Strategies
TERMINOLOGIES
Needs -Human needs are the basic requirements and include
food clothing and shelter. Without these humans cannot survive.
 

Wants - A want is the desire for products or services that are not
necessary, but which consumers wish for. 
Demands – These are wants back-up by the ability to buy. 
 
CHAPTER 1: Marketing Principles and
LC1
Strategies
TERMINOLOGIES
Exchange - This term refers to the trade of things or service of
value between buyer and seller.
Market - refers to the group of consumers or organizations that is
interested in the product, has the resources to purchase the
product, and is permitted by law and other regulations to acquire
the product  
CHAPTER 1: Marketing Principles and
LC1
Strategies
EMERGENCE OF MARKETING
Market >> Identify needs wants and demands >> free enterprise
>> Offer products to satisfy either needs wants or demands >>
MARKETING

 
CHAPTER 1: Marketing Principles and
LC1
Strategies
In order for the exchange to qualify as successful, there are some
basic rules that must be met:
 

 The exchange is successful if there are at least two parties.

 Both parties must be also be exchanging something of value
to each other.
 An exchange will be successful if both parties communicate
clearly their intentions.
 Finally, the parties should accept the offer and want to
engage in a deal with each other.
CHAPTER 1: Marketing Principles and
LC1
Strategies
How do customers fulfil their wants and needs from a marketing
perspective?
 

The five step 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. 
CHAPTER 1: Marketing Principles and
LC1
Strategies
Discuss the elements of Marketing

Marketing Mix (4P's)

1. Product
2. Price
3. Promotion
4. Place
CHAPTER 1: Marketing Principles and
LC1
Strategies
Element of Marketing (Services)

5. People
6. Process
7. Physical Evidence
Application:

How can you apply marketing in your daily lives?

As a customer in a fast food, what are the things
that need to be met in order for you to be satisfied?
CHAPTER 1: Marketing Principles and
LC1
Strategies
Marketing Concepts
1. Product Concept -Consumers want quality
products. This means customers are looking for
innovative options and continuously seeking out
the best of what is currently available..
2. Production Concept - Consumers want products
that are easily accessible and inexpensive.
3. Selling Concepts Consumers are looking for aggressive
sales and promotions from companies.
4. Marketing Concept - Consumers want to see the
products meet their wants and needs more than the
competition.
5. Societal Concept - Consumers want to see that the
business is offering value and taking into consideration the
well-being of both consumers and society
CHAPTER 1: Marketing Principles and
LC2
Strategies
Approaches in Studying Marketing
1. Traditional Approach
2. Contemporary Approach
CHAPTER 1: Marketing Principles and
LC2
Strategies
Traditional Approach
a. Commodity Approach - This approach refers to the
study of a product in detail.
b. Institutional Approach - This approach relates to
various marketing institutions viz., wholesalers,
retailers etc., engaged in marketing.
CHAPTER 1: Marketing Principles and
LC2
Strategies
Traditional Approach
c. Functional Approach - As the every name suggests
this approach comprises of the study of various
activities or functions performed in the process of
marketing of goods and services
CHAPTER 1: Marketing Principles and
LC2
Strategies
Traditional Approach
d. Decision Making Approach - This approach is of vital
importance from the viewpoints of marketing
management, various decision are taken at every level
of management
CHAPTER 1: Marketing Principles and
LC3
Strategies
Goals of Marketing
1. Maximize consumption
2. Maximize consumer satisfaction
3. Maximize choice
4. Maximize life quality
CHAPTER 1: Marketing Principles and
LC4
Strategies
Contemporary Marketing Approaches
1. Marketing mix
2. Conceptual approach
3. System or holistic approach
4. Managerial (marketing management) approach
5. Macro-marketing
6. Social marketing
7. Comparative marketing.
CHAPTER 1: Marketing Principles and
LC4
Strategies
1. Marketing Mix
Marketing mix or 4 P’s (product, promotion, price
and place). These are variables that a company may
use in mapping a successfully marketing strategy. Each
P is interrelated to all other P’s.
CHAPTER 1: Marketing Principles and
LC4
Strategies
Marketing Mix
CHAPTER 1: Marketing Principles and
LC4
Strategies
2. Conceptual Approach - studies ideas of marketing
rather than activities.

3. Holistic Approach - based upon the understanding

that activities or processes are interdependent upon
other activities or processes.
CHAPTER 1: Marketing Principles and
LC4
Strategies
3. Marketing Management – Managerial approach to
marketing
4. Macromarketing - looks at the economy’s entire
marketing system to see how efficient and fair it is.
5. Micromarketing - examines the individual firm within
the economics system
CHAPTER 1: Marketing Principles and
LC4
Strategies
5. Social concept-depicts marketing as a social
institution rather than merely as a business activity or
economic process.
6. Comparative marketing system. This is corollary to
the social concept of marketing, it recognizes existing
environmental differences, marketing within different
countries and between them.
CHAPTER 2: Customer Relationship:
LC5
Customer Service
Relationship Marketing
Relationship marketing is a buyer-friendly approach to
business.
It is a marketing approach that acknowledges the
importance of both the buyer and the seller in the
marketing process.
CHAPTER 2: Customer Relationship:
LC5
Customer Service
Relationship Marketing Strategies
1. Customer markets include wholesalers, middlemen
such as retail stores, and the final consumers of the
product.
2. Referral markets include both customer and non-
customer referral sources.
CHAPTER 2: Customer Relationship:
LC5
Customer Service
3. Supplier and alliance markets consist of people and
organizations that provide resources to your business.
4. Influence markets consist of people and
organizations that can influence your business and your
customers.
CHAPTER 2: Customer Relationship:
LC5
Customer Service
5. Recruitment markets include potential employees
and related third-party staffing agencies.
6. Internal markets include actual employees. The
market can be divided by job function, role,
geography, and levels of seniority.
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Customer Value
Customer value is a customer’s perceived preference
for and evaluation of those product attributes,
attribute performances, and consequences arising
from use that facilitate (or block) achieving the
customer’s goals and purposes in use situations"
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Customer Value
Customer value is the difference between the values
the customer gains from owning and using a product
and  the cost of obtaining the product. 
CHAPTER 2: Customer Relationship:
LC6
Customer Service
How Is Customer Value Delivered to the Customer?
There are three ways a company can establish
customer value to its customer base:
1. Provide the consumer with the best cost.
2. Provide the consumer with the best product.
3. Provide the consumer with the best service.
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Types of Value
1. Functional Value
It is concerned with the extent to which a product is
useful, has desired characteristics, and performs a
desired function.
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Types of Value
2.Experimental Value
It is concerned with the extent to which a product
creates appropriate feelings, experiences  and
emotions for the customer.
CHAPTER 2: Customer Relationship:
LC6
Customer Service
Types of Value
3. Symbolic or Expressive Value
It is concerned with the extent to which customers
associate psychological meaning to a product. Some
products appeal to customer's self-concept and self-
worth.
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Definition of a customer
Customers are people who need your assistance.
They are not an interruption to your job, they are the
reason you have a job.
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Communicating Effectively with Customers
Attitude Checklist
What attitudes assist in providing good service?
• Enjoy helping people
• Handle people well
• Care for your customers
• Give fair and equal treatment to all
• Be understanding of people with special needs
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Skills for Customer Service
• Know about your organization
• Learn the technical parts of the job
• Communicate well
• Be consistent
• Be organized
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Greeting Customers
The purpose is to create and maintain a welcoming
environment
Make notes on GOOD GREETING BEHAVIOUR
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Establishing Rapport
What does good rapport feel like?
Practice greeting someone
• Make the customer feel comfortable
• Make the customer feel important and valued
• Use empathy
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Find out how You can Help
• How can you find out what people want?
• If you can’t help, what should you do?
• Offer alternatives if possible
• If they have to wait, how would you handle it
CHAPTER 2: Customer Relationship:
LC8
Customer Service
How to Listen to Customers
• Active listening = Attending skills (being ready)
• Attend to immediate needs (if you need to finish
something before giving your full attention)
• Being available
• Eye contact
• Attentive posture
• Concentration
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Using Your Voice
Do you
• Become loud when angry or upset
• Speak faster when nervous
• Speak slowly when tired or bored
• Have a cheerful voice
CHAPTER 2: Customer Relationship:
LC8
Customer Service
• My tone of voice is warm and understanding
• Find it easy to talk to people you don’t know
• Control your tone in most situations
• Sound bossy, weak or unsure
• Have a clear and easy-to-hear voice
• Speak in a very formal or very trendy manner?
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Body Language for a Positive Result
Brainstorm some examples of good body language
• Smile
• Introduce yourself (if appropriate) or wear a name
badge
• Shake hands if appropriate
• Lean forward
• Be aware of cultural differences
CHAPTER 2: Customer Relationship:
LC8
Customer Service
Ask group for examples of cultural differences.
Telephone Skills
• Know how to use the phones
• Speak clearly and slowly
• Smile (you can hear it in your voice!)
• State your name and organization
• Write down the caller’s name and use it
CHAPTER 2: Customer Relationship:
LC8
Customer Service
What makes you go back to a place?

A Positive Organizational Image

First impressions count and will affect the interaction.
People make judgements in the first 30 seconds.
Golden Rule – You only have one chance to make a first
impression!
CHAPTER 3: Market Opportunity Analysis
and Consumer Analysis
How Is Customer Value Delivered to the
Customer?
There are three ways a company can establish
customer value to its customer base:
1. Provide the consumer with the best cost.
2. Provide the consumer with the best product.
3. Provide the consumer with the best service.