PRINCIPLES OF

MARKETING
TOPIC: Marketing Principles,
Goals & Approaches
OBJECTIVES
At the end of the discussion the students shall be
able to:
• Define and understand marketing, concepts and
principles;
• Understand and discuss the goals of marketing
and its social effects;
• Demonstrates an understanding of the importance
of marketing, principles, goals & approaches.
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What is Marketing?
• Marketing is the creation and communication
of value to customers. It involves the
customer’s maintenance of relationships that
should last for 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
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• In the definition of marketing given by the
American Marketing Association or AMA,
“marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
4relationships in ways that benefit the
• The definition of marketing according
to 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
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• It is also defined as the meeting of the minds
between the seller and the buyer to satisfy
human needs and wants with profit on the part
of the marketer and the satisfaction of the
buyer for the money he spent.
On the bases of this view, marketing is an
organization intervention and functions that
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• From the academic point of view, marketing is
the art and science of creating tangible
products or services and finding the market,
getting and retaining them to attain profitable
operations. On one hand, it is a societal
process that marketers must communicate the
sustainable value of the product or service to
its target market. It is a critical business
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• Marketing is also an integrated process
through which companies create value
for customers and build strong customer
relationships in order to capture value
from customers in return.

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Goal: Attract new
customer by
promising superior
Simply put: value and keep and
grow current
Marketing is customers by
the delivery of delivering satisfaction.
customer
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satisfaction at
INTERACTING COMPONENTS
OF MARKETING
This is composed of two
and its market other interacting
are equally components: the customer
important. It is and competition. The
marketing that overriding objective of the
gives fulfilment to company is not just to
both components. satisfy the needs and want
Marketing people of its customer. It must
should balance profitable and better than its
between the competitor. Otherwise, the
company’s competitor could win the
requirements for customers because it is
profit and desired able to satisfy them.
CUSTOMER NEEDS AND WANTS
Is one important component in the marketing of products. It is
NEED the consumer’s desire for a product or service. The product or
service must have specific benefits that satisfy the functional or
S emotional needs. On the other hand, basic needs are food,
clothing, and shelter. We cannot live without them and marketers
must be able to provide them to human population.
Can be processed in different tastes; styles and menus that shall meet
the human craving and satisfaction. Clothing could be designed into
FOO different styles depending on people’s taste and social values. Shelters
are constructed differently depending on the capacity of the buyer to
D finance his home. These needs are the marketer’s point of interest for
profit.
Are higher-level human needs as they appeal more to the
emotions. These are the social needs for recognition and the
WANT development of higher social satisfaction is limitless. The
S development of technology and different electronic gadgets are
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more of human wants. The marketers must continuously
improve technological inventions to sustain customer wants.
CONCEPTS OF MARKETING
Marketing Concepts
• According to Darovillas (2004), he stated
that the marketing concept is a business
philosophy, which holds that the key to
achieving organizational goals consists of
determining the needs and wants of
14target markets and delivering the
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• The marketing concept emphasizes
customer orientation and coordination of
marketing activities to achieve the
marketing goals and objectives. The
philosophy that “the customer is the
boss”, rings over the minds of the
16marketing people that customer
WHILE IT IS IMPORTANT TO
SATISFY CUSTOMER WANTS
AND NEEDS, THIS COULD
ONLY BE ACHIEVED UNDER
THE FOLLOWING MARKETING
CONCEPTS:
1. Marketing must be Customer
Oriented.
• THE PLANNING AND OPERATION
MUST BE DIRECTED TOWARDS
CUSTOMER ORIENTATION. THE
WHOLE MARKETING ORGANIZATION
AND ITS OPERATING STAFF MUST
18 BE FOCUSED ON DETERMINING
2. Marketing must be Coordinated
Activities
• Coordination activities must start in the
product planning process, the process. The
product is the key element that the customer
wants to buy that is worth his money. Price is
another important component as customers
would like to get his money’s worth. The
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place of distribution must be within his reach
3. Marketing must be able to achieve the
Performance Target Goals and Objectives.
• Customer-oriented and coordinated
marketing aims to achieve its profit,
objectives and goals. These goals and
objectives hinge on the increase in sales
volume and customer’s patronage. When
product planning, price, promotion and
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distribution and properly coordinated, it will
FACTORS FOR DEVELOPING
MARKETING CONCEPTS
1. Capturing Marketing
Insights
• The overall direction must focus on its vison
and mission. The organizational goals and
objectives must be directed towards the
creation of value to its customers. These
must be the inherent philosophy of the
marketing organization. The functional areas
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in the marketing organization must be
2. Effective Financial Management
System
• The procurement of quality and affordable
materials for processing of the product is a
vital component in effective operation of the
marketing system. The competition in the
market is based on affordable quality
products where labor and materials interplay
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in their production. Financing the marketing
3. The Value of Human
Resources
• The employees must be committed in the
production of quality products and the
delivery of quality service. They must
develop work ethics and strong commitment
to the marketing efforts of the organization.
Sustainable development and progress rest
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with people who are willing to put all efforts
4. The 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. The role of marketing
25is to sell more products, but it must
5. The Presence of
Competitors
• Marketing outfit must develop strategies in
capturing their target market and develop
and sustained patronage. These marketing
strategies must develop customer loyalty to
the brand or the product. Product
improvement and pricing strategies with
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sustained promotional and advertising
TRADITIONAL CONCEPT
MARKETING
Traditional concept
marketing
• Traditional concept marketing is a
marketing strategy a company uses to
determine if it can produce a viable
product consumer want or need, whether
the company can produce enough
29 products to fill the need, and the
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.
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1. Production concept

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2. Marketing concept
• Marketing concept a philosophy
which states that organization
must try hard to find out and
satisfy the needs and wants of
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consumers while at the same
2. Marketing concept

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3. Sales concept
• Sales concept refers to the idea
that people will buy more goods
and services through personal
selling and advertising done
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aggressively to push them in the
3. Sales concept

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4. Relationship concept/
marketing
• An approach that centers on
maintaining and improving
value-added long-term
relationships with current
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4. Relationship concept/
marketing

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5. Societal Marketing
Concept
• Societal marketing concept
views that organizations must
satisfy the needs of consumers
in a manner that gives for
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society’s benefit.
5. Societal Marketing
Concept

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THE GOALS OF MARKETING
AND THEIR SOCIAL EFFECTS
1. Maximize the Consumption of
Goods
• The aggressive marketing strategies and
policies had increased the consumption
of goods and services. The demand of
the market is tremendous. Sellers face
many challenges on what products to
42offer. Buyers want quality products at
• The marketing job is to stimulate
greater product consumption.
Greater production requires
consumption of material inputs and
more goods in the market that create
more employment. More jobs are
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created, and more people enjoy

2. Maximize Consumer
Satisfaction
• The market demand is varied, and
customer satisfaction is the challenge of
the marketing organization.
Measurement of customer satisfaction is
difficult. It embraces careful analysis of
44the market demand which varies with the
• The customer may be satisfied with the
product the marketing people produce
but it may create pollution to the
environment. Plastics are good
packaging materials for consumer goods
but they create flood and environmental
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pollution. Cars and other vehicles using
3. Maximize Choice of Goods or Service

• The main objective is for customers to

find the goods that will satisfy their
biological needs as well as their
emotional and social wants.
Development of new products needs
46research but that will mean time and
• Maximizing consumer choice entails cost
as the economies of scale do not operate
in production of goods. The consumers
must spend time studying the benefits of
the production of goods.

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4. Maximize the Quality of
Life
• Life satisfaction is more than the physical
comfort. The impact of electronic
radiation has created health problems
among the many users of modern
gadgets. People in the previous
48 generations lived longer because they
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
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Key performance indicators
(KPIs)
• Are used to check that the marketing
activities of a company are on track.
KPIS are specific metrics which are used
to track performance to make sure the
firm is on track to meet specific
51 objectives. They are sometimes known
• Examples of noteworthy marketing goals:
1.Identifying the target market
2.Increasing sales and profits
3. Increasing brand awareness
4. Increasing market share
5. Countering competitive strategies
6. Reputation
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7. Increasing distribution channels
WHAT IS TRADITIONAL
MARKETING?
Traditional marketing
• Traditional marketing is an umbrella term
that covers the wide array of advertising
channels we see daily. These may
include print media, billboard and TV
advertising, flyer and poster campaigns
54 and radio broadcast advertising.
Ansoff's Matrix Theory
• Traditional marketing theories include
Ansoff's matrix, a theory that proposes
products/services fall into one of four
categories depending on the market and the
product released. New product- new market
is considered as diversification. This theory
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recommends that businesses should try to
The Marketing Mix
• Another marketing theory that's considered
to be traditional is the marketing mix made
up of the 7 p's. These include product, place,
promotion, price, packaging and positioning.
All these components, when combined,
create a solid marketing proposal. However,
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this theory as well as ansoff's, can be
• Traditional marketing seeks to pull
customers to a product, whatever the cost. It
is, for this reason, considered to be outdated
as it does not consider the customer they
are selling to, more the market that the
company operates within. There are
however channels that have developed from
traditional marketing, including digital, that
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aim for the same goal, however, use more

Definition of Contemporary
Marketing
• Simply defined, contemporary marketing
refers to marketing strategies that are
consumer focused. Contemporary marketing
strategy offers products and services based
on what the target market desires rather
than what the company wants them to have,
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thereby, offering greater support for their
Difference Between Contemporary
Marketing Orientation and Traditional
Marketing Orientation
• The main difference between the
contemporary marketing orientation and
traditional marketing orientation is that while
the former is consumer-focused, the latter is
company- focused. Traditional marketing is
concerned with pulling customers and does
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not really consider the customer's diverse
• Contemporary marketing aims for customers
satisfaction in order to build a relationship
with them. Therefore, the types of marketing
strategies under contemporary marketing
are concerned with the needs of customers.

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Emerging Types of Marketing and
their Applications:
• Based on a 2017 report by Kleiner Perkins
Caulfield and Byers, an internet trend
investment firm, 3.4 billion people use the
internet. Therefore, the internet has become
an easy and quick way to research, reach
and engage customers.
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1. Search Engine Optimization is majorly
concerned with increasing a business’ visibility
and rankings on search engine result pages. It
is a simple way of attracting organic traffic of
potential customers to a website. SEO can be
maximized with paid adverts (google adwords),
strategic content marketing and social media
networks.
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2. Pay Per Click Advertising: this is
advertising presented on search engine result
pages or web pages where the advertiser is
only charged based on the number of times
someone clicks on the ads to go to the
advertiser's targeted website.

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3. Email Marketing is a type of marketing
based on the distribution of messages through
emails. Email marketing provides direct contact
with customers and allows businesses to create
relationships with their customers. Updates,
exciting news, and call to actions can be sent
directly to customers.
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4. Referral Marketing: is a type of marketing
where an individual or customer pleased with
the results gotten from a product refers the
product to another person. It's a very subtle
form of marketing that can provide great results
especially when the person referring is an
influencer in that industry.
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5. Affiliate Marketing: is a prominent type of
internet marketing where a third party promotes
a product and earns commission, or a piece of
the profit gotten from every sale made through
that referral.

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6. Video Marketing: videos act as one of the
most interactive types of online marketing and
can prove to be a great way to raise awareness
about a business or product. In fact, according
to mushroom networks, YouTube is the second
biggest search engine. Therefore, video
marketing can prove to be a great way to pass
messages to target customers.
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7. Inbound Marketing is a very powerful
contemporary marketing strategy that focuses
on different tactics to draw consumers in and
convince them to buy goods. It is one the result-
oriented types of marketing that uses content to
drive results. A key subset of inbound
marketing is content marketing which the
content marketing institute refers to as "a
strategic marketing approach focused on
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Green Marketing
• Green marketing refers to the
process of selling products and/or
services based on their
environmental benefits. Company
are selling products and/or services
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For green marketing to be effective, there
are three things that needs to be done:
1. Being genuine
a. The company is doing what it claims to
be doing in its green marketing campaign
and;
b. The rest of the business policies are
consistent with whatever the firm is doing
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2. Educating the customers isn’t just a
matter of letting people know that the
company is doing whatever it doing to
protect the environment, but also a matter
of letting them know why it matters.
3. Giving customers an opportunity to
participate means personalizing the
benefits of the company’s environmentally
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