MARKETING PRINCIPLES

AND STRATEGY
 WHY DOES MARKETING OFTEN
REFERRED TO AS THE “LIFEBLOOD”
OF EVERY BUSINESS?
WHAT IS MARKETING
 Form of communication

 Marketing for profit and non-profit purposes

 American Marketing Association

defines marketing as the activity, set of
institutions, and process for creating,
communicating, delivering, and exchanging
offerings that have VALUE for customers,
clients, partners, and society at large.
 Philippine Marketing Association
A science and a profession guided
principally by the universal principles of
ethics, corporate citizenship, and corporate
social responsibility.
GOALS OF MARKETING
 Understand the market and its consumers, and
satisfy their changing needs
 Introduce an innovative products and services that
improve human condition and the quality of life.
 Design and implement effective customer-driven
marketing strategies.
 Develop marketing programs that deliver superior
value to customer.
 Build and maintain mutually beneficial and
profitable customer relationships
 Capture customer value to create profits

 Promote value transactions with full regard to

society’s well-being
THE MARKETING PROCESS
 THE SITUATIONAL MARKETING STRATEGY
ANALYSIS FORMULATION
1. Microenvironmental 1. Market Segmentation
2. Macroenvironmental 2. Target Market Selection
3. The market 3. Value Positioning
4. Customer 4. Product Positioning
5. Competition
6. SWOT

IMPLEMENTATION AND MARKETING MIX

CONTROL DECISIONS
1. Implementation 1. Product
2. Monitoring 2. Price
3. Marketing mix 3. Place
adjustment 4. Promotiuon
 Product Levels
(draw the illustration)
1. Core or Generic product – purpose
2. Formal Product – unique styling
3. Augmented Product – Very expensive and have long
service
CLASSIFICATION OF PRODUCTS OR GOODS
ACCORDING TO USE:
1. CONSUMER GOODS
2. INDUSTRIAL GOODS

ACCORDING TO DIFFERENTIATIONS:
1. UNDIFFERENTIATED GOODS
2. DIFFERENTIATED GOODS

PRODUCTS/SERVICES
ACCORDING TO DURABILITY:
1. CONSUMABLE
2. SEMI-DURABLE
3. DURABLE

ACCORDING TO TYPE:
1. CONVENIENCE GOODS
2. SHOPPING GOODS
3. SPECIALTY GOODS
4. UNSOUGHT GOODS
 Consumer Goods – purchased for consumptions
 Industrial Goods – purchased in order to make other
goods, to serve as a raw material or input in the
production of other goods.
 Undifferentiated Goods – products that are identical
 Differentiated Goods – varied in characteristics and
features.
 Consumable Goods – product whose benefit can only
be used by a consumer for only a short period of time,
sometimes only a few minutes.
 Semi-durable Goods – provide benefits to the consumer
for a longer period of time, usually spanning several
months.
 Durables Goods – products that are manufactured to
last a long time. They are capable of providing
consumers with years of beneficial use.
 Convenience Goods – purchased frequently, inexpensive, do
not require much purchase effort and evaluation
 Shopping goods – purchased less frequently, relatively more
expensive, and require some amount of information search
and evaluation prior to purchase.
 Specialty Goods – require unusually large effort on the part of
the consumer to acquire.
 Unsought Goods – goods that consumer seldom actively look
for, and are usually purchased for extraordinary reasons, such
as fear or adversity, rather than desire.
MAREKTING SERVICES

WHAT IS MORE DIFFICULT TO MARKET,

PRODUCTS OR SERVICES?
FOUR MAJOR ATTRIBUTES:

 Intangibility
 Variability

 Inseparability

 Perishability
TRADITIONAL APPROACHES TO MARKETING

FOCUS ON PRODUCTION METHOD, PRODUCT

QUALITY, AND EFFECTIVE SELLING METHODS AS
PROFIT DRIVERS IN MARKETING
 THE PRODUCTION CONCEPT
 Assumes that consumers prefer products that
are inexpensive, affordable, and widely
available.
 Efforts are concentrated in expanding
distribution, and improving production efficiency.
 Lower the product costs resulting to lower prices.
 Applicable only if customer tastes and
preferences are stable and product demand is
high.
 THE PRODUCT CONCEPT

 Assumes that customers will always prefer and

patronize products of high quality
 Resources are focused on product improvement and
innovation.
 Product attributes and features are continuously
enhanced.
 Too much preoccupation on product may neglect the
customers’ changing needs.
 THE SELLING CONCEPT

 Emphasizes aggressive selling and promotional efforts.

 Assumes that customers are generally timid and must
be persuaded into buying.
 The objective is to sell what is manufactured rather than
manufactured what the market wants.
CONTEMPORARY APPROACHES TO MARKETING

centered on the customer, relationships, and

well-being of society.
 THE MARKETING CONCEPT

 Consider the needs of both the customer and the

product offered.
 The objective is to provide a solution to the customers’
actual or perceived problem.
 The key is to be more creative in the creation,
communication, and delivery of this value to customers.
 THE RELATIONSHIP MARKETING CONCEPT

 Believes that all marketing activities are for the purpose

of establishing, maintaining, and strengthening
meaningful long-term relationships with customers
 Customer profiles, purchase habits, and preferences
are monitored.
 THE SOCIETAL MARKETING CONCEPT

 Similar to marketing concept but beyond providing

solutions to customer, it goes further to include
considerations that protect the customer’s well-being
and interests, as well as the interest of the environment
and society.