THE MARKETING CONCEPT
 Marketing usually relates with selling and
advertising.
 Sales and advertising are two of the
marketing functions.
 Marketing is more than advertising and
selling products to customer:
1. It focuses on satisfaction of customers’
needs
2. Create value for customers
3. Build strong customers’ relationship
4. Companies shifted their focus toward
catering to emerging customers’
preferences.
TWO FEATURES OF MARKETING
1. It is a philosophy, an attitude, a
perspective and a management
orientation that emphasizes customer
satisfaction
2. It is an organization function and a set of
process utilized to put into practice this
philosophy.
MARKETING
 is a process that start with identifying and
understanding the needs and wants of the
customer (demand) and then fulfilling
those needs and wants (supply)
 is a process of facilitating exchanges in
which buyers exchange something of
value (typically money) for something of
equal value to them (goods or services)
MARKETING MIX 4Ps
 is the activity, set of institution and
processes for creating, commutating,
delivering, and exchanging offerings that
have value for customers, clients,
partners, and societies and at large,
(AMA).
PRODUCTS—creating value
PRICE—capturing values
PLACE—delivering value
PROMOTION—communicating value
BASIC COMPONENTS
1. NEEDS—a human need a state of felt
deprivation. Humans have complex
needs.
2. WANTS—a human want is the form that
a human need takes a shaped by culture,
individual personality and social and
environmental forces.
3. DEMANDS—are human wants that are
backed by buying power where
consumers view products as bundles of
benefits that add up to the most
satisfaction.
4. EXCHANGE—marketing happens when a
buyer and a seller exchange something of
value
5. MARKET—compose of people with both
desire and ability to buy a specific
product/service
EVOLUTION OF MARKETING PROCESS
 Marketing started from a simple activity
of determining it is can produce a viable
product to consumers wants and needs;
and the marketing method by which the
need can be filled
 Marketing activities were first practiced
during the Industrial Revolution as
products were mass-produced and the
sold to awaiting customers.
 So, when competitors became prevalent
and demand for fewer product emerged,
marketers developed new approaches to
address these problems.
TRADITIONAL MARKETING APPROACHES
Starting in 1950’s traditional marketing
followed by major approaches which are
known as marketing philosophies:
1. PRODUCTION
ORIENTATION/CONCEPT—requires a
company to embark on mass production
and distribution to make it available to all
potential customers; not based on desires
and needs of the market since buyers were
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 eager to buy any goods that were
manufactures due to scarcity.
2. PRODUCT ORIENTATION—focuses on
the product and its innovation to attract
customers, e.g. Apple initially released its
iPhone in 2007
3. SELLING ORIENTATION (sales
concept)—refers to the idea that people
will buy goods and services through
personal selling and convincing the
customers to buy the product even if they
do not need it, so this approach prioritize
sales which results in the failure of
business.
4. MARKETING ORIENATION/CONCEPTS
(1960)— (a.k.a customer-centric
approach), the customers’ preferences –
what they want, how much they are
willing to pay, what form and feature
they prefer, etc. – are prioritized.
5. RELATIONSHIP CONCEPT—centers on
maintaining and improving value-added
long-term relationship with current
customers, distributors, dealers and
suppliers.
6. SOCIETAL MARKETING CONCEPT—this
is like orientation except that concern for
society’s well-being and environment’s
sustainability is prioritized as much as the
customers’ preferences.
4 ROLES OF MARKETER
1. INSTIGATOR—who analyze the current
market trends to guide the action of the
company; come up with creative ways to
change the status quo that gain
advantages against their competitors.
2. INNOVATOR—ensures that their
products have an edge over those
developed by the competitors.
3. INTEGRATOR—mediates between the
interests of the company and the
consumers’ needs and communicate
customers insights and opinions to the
company.
4. IMPLEMENTER—ensures that marketing
strategy for the developed product is a
place ad implemented effectively. Helps
facilitate the production and selling
processes.
COMMON MARKETING GOALS
1. To develop and maintain a profitable
base of loyal customers
2. To develop products and services which
contribute to the quality of life and
promote environmental conservation.
3. To understand customers’ behavior and
communicate to them the marketing
offerings.
4. To support the other functional areas of
business in achieving the company or
corporate goals.
MARKETING GOALS AND OBJECTIVES
 One of the key elements of a successful
business company is having a clear vision
 GOALS—are aspirations that every
company would like to pursue or the
general direction that it wants to take.
 OBEJECTIVES—are the specific goals that
can be measured in the short term or long
term
 MARKETING GOALS—are broad goals
set by the top-level that aims to shape to
strategy.
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 MARKETING OBJECTIVES—specific
SMART objectives to give clear direction
and commercial targets
OTHER GOALS OF MARKETING
1. Identifying TARGET MARKET
2. Increase SALES and PROFITS
3. Increasing BRANDS awareness
4. Increasing MARKET SHARE
5. Countering Competitive Strategies
6. REPUTATION
7. Increasing DISTRIBTION channels
CONTEMPORARY MARKETING
APPROACH
1. DIGITAL MARKETING—the use of digital
technologies in presenting the products or
service offerings of a company
2. E-MARKETING or ONLINE
MARKETING—utilizes the internet to
boost promotional and marketing efforts.
3. MOBILE MARKETING—uses a signs and
ads mounted atop taxicabs, products
logos painted on the side of buses or van,
or products stickers attached to vehicles.
4. TELEMARKETING—promotion of
products thru unsolicited telephone calls
to identified customers
5. SOCIAL MEDIA MARKETING—use of
social media networking sites and
relevant applications in promoting a
company’s products and services
6. OUTDOOR PROMOTION—displaying
promotional materials for products and
services outdoors.
7. EVENTS MARKETING—involves hosting
of a themed event that is especially
tailored for the product.
8. SACHET MAREKTING—is also adopted
to appeal to consumers who are cost-
conscious and cannot afford to buy
products in large quantities.
9. PERSON MARKETING—aimed at
cultivating the attention, interest and
preferences of a target market towards a
celebrity or authority figure.
10. PLACE MARKETING or BRANDING—
pull customers to areas where to have a
nice choice for businesses such cities,
provinces, and counties best tourist spots
and destinations to attracts locales and
foreigners.
11. GREEN MARKETING—refers to the
selling products/services based on their
environmental benefits and friendly
12. CAUSE MARKETING—is the
identification and marketing of a social
issue/idea to selected target markets.
IMPORTANCE OF STUDYING MARKETING
 Plays an important role in the society
 Is important to businesses
 Offers outstanding career opportunities
 Affects your life every day
UTILITY CONCEPT OF MARKETING
 The power of a good or service to satisfy
a need or want of a consumer.
 It is also the term for the benefit that
consumers derive from acquiring and
using a good or service
 A firm creates and distributes a good or
service for a value for the consumers using
the four kinds of utility:
1.1 FORM UTILITY—refers to the conversion
of raw materials into products that suit the
preferences of consumers so that that do not
have to create their desired products
themselves
1.2 TASK UTILITY—offering services which
consumers may not be capable of doing or
may not like to do themselves.
2. PLACE UTILITY—it refers to the availability
of the product or service at accessible
location.
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3. TIME UTILITY—refers to satisfaction
derived by customers in availing the products
on time.
4. POSSESSION UTILITY—refers to ensuring
that customers have full possession of the
products or service at the right time, so this
overlaps with time and place utilities.
THE MARKEING ORGANIZATION
 Refers to the department in a corporation
that ensures the smooth flow of:
1. Marketing plans
2. Policies
3. Programs that monitor:
a. Sales activities
b. Customers services
c. Distribution and promotion efforts
MARKETING ORGANIZATION
Can be best described with the six (6)
C’s of marketing aspects of the organization:
1. CONSUMER CONTENT—can study a
wide array of choices before they make
the actual purchase.
2. COMPANY CAPABILITIES—to be on a
par with competitors thus MO needs to
strengthen their capabilities in production
and operations to develop and produce
goods/service that will meet consumer
needs.
3. COMMUNICATION—a MO must have a
positive, long lasting relationship with its
customers because a negative brand
image results in low sales.
4. COMPETITION—the real challenge for
any organization is to face its strongest
competitor head on. It should know the
competitor’s strengths and weaknesses
and determine the best way to respond.
5. CROSS-FUNCTIONAL CONTACT—a
MO cannot work alone without the
support and assistance of other
departments.
6. COMMUNITY CONTACT—a MO is
updated with local, international and
community news. Its entails constant
contact with different agencies and
organizations within its surroundings.
And, personifies CSR by integrating
sustainability and ethics in conducting
business.
CUSTOMER RELATIONSHIP and
CUSTOMER SERVICE
 One of the ways to remain competitive
is to provide superior customer service
that must be able to meet customer
expectations – provides customer value
which, in turn, contributes to customer
satisfaction and loyalty.
 This is customer relationship; a company
builds customer loyalty by making
customer satisfaction its top priority.
 It is the goal of the marketing
organization to encourage customers to
enter a long-term relationship with repeat
purchases or patronize the service or buy
multiple brands at a time from the firms.
CUSTOMER EXPECTATIONS
Refers to the perceived benefits and results a
customer expects when buying using a
product or availing of a service.
 Customer expectations with companies
revolve around the following main
aspects:
1. RELIABILITY—the ability to provide the
expected benefits and results consistently.
2. TANGIBLES—the quality of physical
facilities/appearance.
3. RESPONSIVENESS—the willingness to
provide prompt service and assistance.
4. ASSURANCE—the ability to convey trust
and confidence thru expert knowledge
and courteous service.
5. EMPATHY—the care and attention given
to each customer
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 BLUE OCEAN STRATEGY
Marketer employ another strategy that
encourages business:
 To expand their market base
 Acquire new customers by creating new
value which will give to new demand
 This is achieved thru product
differentiation and low cost
RELATIONSHIP MARKETING
1. RELATIONSHIP MARKETING—process
of building and maintaining profitable
customer relationships by delivering
superior customer value and satisfaction,
thus, ensuring brand loyalty.
2. CUSTOMER LOYALTY aka BRAND
LOYALTY—a key factor in relationship
marketing, arises when a customer had
several positive experiences with a
company’s products and services.
FIVE LEVELS OF RELATIONSHIP
MARKETING
 Customer loyalty is founded on excellent
customer services.
 The 5 levels of relationship marketing
define the levels of interaction between
the customer and the company towards
improving customer satisfaction:
1. BASIC MARKETING—the most basic level
of interaction between the company and
customer thru “direct sales”.
2. REACTIVE MARKETING—salesperson
tells the customer that he/she can be
contracted to answer any inquiry about
the product or service.
3. ACCOUNTABLE MARKETING—
salesperson voluntarily contacts the
customer to ensure that the products is in
perfect condition and asks if it met the
latter’s expectation and encourages the
customer to provide suggestions.
4. PROACTIVE MARKETING—company
works closely with a group of regular
customers who provide constructive
feedback
5. PARTNERSHIP MARKETING—company
has already built a loyal group of
customers who can help improving its
performance and offering.
MAIN CHARACTERISTICS OF
RELATIONSHIP MARKETING
 Focuses on the long term rather than the
short term
 Focuses on partners and customers rather
than on the company’s products
 It puts more emphasis on customer
retention and growth than on customers
acquisition.
 It relies in cross-functional teams rather
than on departmental-level work
 It relies on listening and learning than on
talking
 Relationship marketing calls for new
practices within the 4P’s
CUSTOMER VALUE
 CUSTOMER VALUE—as the satisfaction
derived from what a customer may
experience or expect to experience by
choosing a particular action relative to the
cost of that action.
 Can be a purchase/cost—money, time,
knowledge, data and the likes
 A visit
 An order
 Or a sign up
CUSTOMER PERCEIVED VALUE
 Refers to a customer’s assessment of the
benefits gained from buying and using a
product compared to its cost as well as the
competing offers on the market.
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 BOTTOMLINE service experience that may go beyond
 Customer value entails extraordinary what the customer desire.
delivery of four value-points or
components known as SQIP: RELATIONSHIP DEVELOPMENT
(DELIVERING CUSTOMER VALUE) STRATEGIES
 SERVICE—the intangible value Loyal customers prove to be more profitable
offered to customer than other ordinary customers thus company
 QUALITY—customer perception must challenge to retain and maintain
of how well a company’s products customer loyalty.
and services meets expectations 1. COMMUNICATED WITH CUSTOMERS
 IMAGE—customer’s perception FREQUENTLY AND EFFECTIVELY—by
of the company or business they get in touch with customers thru e-mail
interact with. social networking sites for immediate
 PRICE—the price a company can feedback or online survey.
command for its products and 2. OFFER CUSTOMER REWARDS—such as
services that its customers are able special discounts, perks, freebies to remain
and willing to pay. loyal to the brand and as well as they are
awarded for their patronage.
3. CONDUCT SPECIAL EVENTS AND
PROVIDE SPONSORSHIP—companies
can hold sponsor, concerts and contest or
lunch/dinner with company
representatives.
4. ENHANCE CUSTOMER SERVICE—by
outsource third party organizations to
cater to complaints and inquiries,
promote their latest offerings and provide
PROFITABLE COMPANIES SHOULD
technical support.
BECOME CUSTOMER ORIENTED
5. UTILIZE LANGUAGES TO REACH A
PERPECTIVE AND STRIVE TO ESTABLISH
WIDER CUSTOMER BASE—by creating
NEW CULTIRE OF THE ORGANIZATION BY
promotional materials in different
FOCUSING ON:
languages to cater specific regions.
 Happy employees make happy customers
6. CUSTOMER SERVICE TRANING FOR
 Strong marketing and customer
EMPLOYEES
relationship
7. ASSESSING CUSOMER NEEDS (core)
 Customer equity and lifetime value

SERVICE MARKETING
LEVELS OF CUSTOMER VALUE
 SERVICE—is an act that is provided by a
 BASIC and EXPECTED LEVELS—include
party that creates value and provide
basic requirements of conducting a
benefits to other party.
business,
 DESIRED CUSTOMER VALUE—involves
CHARACTERISTICS OF SERVICE
what the customers want from the
 INTAGIBLE—does not have a physical
purchase or service experience.
manifestation that can bee seen, touched
 UNANTICIPATED CUSTOMER VALUE—
and described quantitatively.
it pertains to an unexpected purchase or

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 INSEPARABLE—a simultaneous
production and consumption, so there is
outright feedback by the doer and
customer e.g. doctor or nurse – patient
 PERISHABLE—because they intangible,
rendered services cannot be restored or
returned.
 HOMOGENOUS—the service is the same
but the way it is provided may differ from
time to time.

COMPONENTS OF SERVICE MARKETING

 PRODUCT AND ITS ELEMENTS—e.g.
high-quality appliance with superior
quality has a higher value if it comes with
free delivery extended warranty. Thus,
there are services that only supplement
the main product.
 TIME AND PLACE—service should be
rendered on time and distribution
channel is crucial in-service delivery.
 PROCESS—availing and receiving service
convenient for the customers, e.g. banks
are now offering online and mobile
banking to clients to avoid the long lines
in their branches.
 QUALITY SERVICE OR
PRODUCTIVITY—the kind and quality of
service provided and how the service is
rendered.
 PEOPLE OR SERVICE PROVIDERS—
quality service manifest in the people who
provide the service to the customers. It is
also known as customer oriented.
 PROMOTION—various means to inform
the public about the service and reach a
wider customer base.
 PRICE—the price of the service depends
on tis perceived quality.

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