PRINCIPLES OF MARKETING
LESSON 1
Marketing is the creation and communication of value to customers.
-It involves the customer’s maintenance of relationships that should last for a lifetime.
-It is the link between society’s material requirements for its needs and wants.
-Marketing must satisfy human needs and wants through the exchange process and the
building of long-term relationships.
Dr. Philip Kotler
“A social and managerial process whereby individuals and groups obtain what they
need and want through creating and exchanging products and value with others.”
American Marketing Association
“Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.”
- Marketing is also an integrated process through which companies create value
for customers and build strong customer relationships : Marketing is the
delivery of customer satisfaction at a profit.
- Marketing is the art and science of creating tangible products or services
and finding the market, getting and retaining them to attain profitable operations.
THE PRODUCTION CONCEPT
This concept is the oldest of the concepts in business. It holds that consumers will
prefer products that are widely available and inexpensive. Managers focusing on this
concept concentrate on achieving high production efficiency, low costs, and mass
distribution.
THE SELLING CONCEPT
This is another common business orientation. It holds that consumers and businesses,
if left alone, will ordinarily not buy enough of the selling company’s [Link]
organization must, therefore, undertake an aggressive selling and promotion effort. It
assumes that the company has a whole battery of effective selling and promotional tools
to stimulate more buying. Their aim is to sell what they make rather than make what the
market wants.
THE MARKETING CONCEPT
This is a business philosophy that challenges the above three business orientations. Its
central tenets crystallized in the 1950s. The key to achieving its organizational goals
(goals of the selling company) consists of the company being more effective than
competitors in creating, delivering, and communicating customer value to its selected
target customers.
The marketing concept rests on four pillars: target market, customer needs,
integrated marketing and profitability.
Sales Concept and the Marketing Concept:
1. The Sales Concept focuses on the needs of the seller. The Marketing Concept
focuses on the needs of the buyer.
2. The Sales Concept is preoccupied with the seller’s need to convert his/her product
into cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of
the customer by means of the product as a solution to the customer’s problem (needs).
THE SOCIETAL MARKETING CONCEPT
This concept holds that the organization’s task is to determine the needs, wants, and
interests of target markets and to deliver the desired satisfactions more effectively and
efficiently than competitors. It holds that this all must be done in a way that preserves or
enhances the consumer’s and the society’s well-being.
LESSON 2 :CONCEPT OF MARKETING PRINCIPLES, GOAL AND
APPROACH I
Concept of Marketing Principle
Goal: Attract new customers by promising superior value and keep and grow current
customers by delivering satisfaction.
Two interacting components : COMPANY ↔️MARKET
The company and its market are equally important. It is marketing that gives fulfillment
to both components. Marketing people should balance between the company’s
requirements for profit and desired market share.
It is composed of two other interacting components : the customer and competition. The
objective of the company is not just to satisfy the needs and wants of its customers. It
must be profitable and better than its competitor. Otherwise, the competitor could win
the customers because it is able to satisfy them.
CORE MARKETING CONCEPT
Markets → Needs, wants and demands → Marketing offer (products) → Value and
satisfaction → Exchange, transactions and relationships → Markets
NEED AND WANTS
Need is one important component in the marketing of products. The product or service
must have specific benefits that satisfy the functional or emotional [Link] needs
are food, clothing, and shelter. We cannot live without them and marketers must be able
to provide them to the human population.
Garovillas (2004), he stated that the marketing concept is a business philosophy, the
key to achieving organizational goals consists of determining the needs and wants of
target markets and delivering the satisfaction more effectively and efficiently than
competitors do.
1. Marketing must be Customer Oriented
- It should always focus on the customer’s needs, wants, preferences and desires.
2. Marketing must be Coordinated Activities.
- It should try to provide products that satisfy customers' needs through a
coordinated set of activities that also allows the organization to achieve its
goals.
3. Marketing must be able to achieve the Performance Target Goals and
Objectives.
- It should meet the target goals and objectives of the company in order to be
successful marketing.
LESSON 3 :CONCEPT OF MARKETING PRINCIPLES, GOAL AND
APPROACH
Factors in Developing Marketing Concepts
1. Capturing Marketing Insights
The overall direction must focus on its vision and mission. The organizational goals and
objectives must be directed towards the creation of value to its customers.
2. Effective Financial Management System
This system in the procurement of quality and affordable materials for processing of the
product is a vital component in effective operation of the marketing system.
3. The Value of Human Resources
All business activities need human resources in their operation. The employees must be
committed in the production of quality products and the delivery of quality service.
[Link] Production Process
The process must conform to standards in terms of product quality. The race to
economic profitability is the production of products that shall satisfy the customer’s
wants and needs.
5. The Presence of Competitors
The marketing of products becomes interesting with the presence of competitors.
Marketing outfits must develop strategies in capturing their target market and develop
and sustain patronage.
TRADITIONAL CONCEPT MARKETING
A marketing strategy a company uses to determine if it can produce a viable product for
consumer want or need, whether the company can produce enough products to fill the
need, and the marketing method by which the need can be filled.
SEVERAL DISTINCT TRADITIONAL APPROACHES
1. Production Concept focuses on the internal potentials of the company and not
based on the desires and needs of the market.
2. Marketing concept is a philosophy which states that an organization must try hard
to find out and satisfy the needs and wants of consumers while at the same time
accomplishing the organizational goals.
3. Sales concept refers to the idea that people will buy more goods and services
through personal selling and advertising done aggressively to push them in the market.
4. Relationship concept/marketing an approach that centers on maintaining and
improving value-added long- term relationships with current customers, distributors,
dealers and suppliers.
5. Societal Marketing Concept views that organizations must satisfy the needs of
consumers in a manner that gives for society’s benefit.
Goals Of Marketing and their Social Effect
1. Maximize the Consumption of Goods
2. Maximize Consumer Satisfaction
3. Maximize Choice of Goods or Service
4. Maximize the Quality of Life
GOALS OF MARKETING
1. Focusing on customer wants and needs to distinguish products from competition
2. Integrating all the organization’s activities to satisfy customer wants and needs
3. Achieving the organization’s long-term goals by satisfying customer wants and
needs
GOALS - is a long term and broad goal or topic that a company wants to achieve.
OBJECTIVE - is a specific topic, SMART objectives to give clear direction and
commercial target.
UCSP
THE NATURE, GOALS AND PERSPECTIVE OF ANTHROPOLOGY, SOCIOLOGY
AND POLITICAL SCIENCE
Nature of Anthropology
