1.1 Principles of Marketing

PRINCIPLES OF

MARKETING
ROBERT JAY C. CAINDOC
Course Instructor
CHAPTER 1
MARKETING PRINCIPLES AND STRATEGIES

Lesson 1:
Marketing and its Approaches
MARKETING
Is a form of communication or promoting the
VALUE of a product, service, or brand to the
consumers.
Marketing
“The process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual
and organizational goals.”

American Marketing Association

In summary, marketing is
•Creation
•Communication
•Delivery of value to customers
Core
Marketing
Concepts
1. NEEDS
A human need is something that
a person must have in order to
live and survive.
Maslow’s Hierarchy of Needs
2. WANTS
A human want is something that a

person desires to have.
3. DEMANDS
Demands are also human wants that

are supported by buying power.
4. EXCHANGE
Marketing occurs when the buyer and seller trade something of equal
value. Both the buyer and the seller have gained something that
satisfies their unmet needs.
5. MARKET
The market is composed of people with
both desire and ability to buy a product
or service.
GOALS OF
MARKETING
Goals of Marketing
1.Understand the market and its

consumers, and satisfy their changing
needs and wants.
Goals of Marketing
2.Introduce and innovate products and

services that improve human condition
and the quality of life.
Goals of Marketing
3.Design and implement effective

customer-driven marketing strategies.
Goals of Marketing
4.Develop marketing programs that

deliver superior value to consumers.
Goals of Marketing
5.Build and maintain mutually beneficial

and profitable customer relationships.
Goals of Marketing
6.Capture customer to create profits.

Goals of Marketing
7.Promote value transactions with full

regard to society’s well-being.
How Marketing Benefits the Organization, Its
Interested Parties, and Society
How does marketing benefit external parties?
1. Marketing draws out their needs, creates new
demand, locates untapped opportunities, and
determines the possibilities of selling new products.
2. Marketing creates form, time, place, and possession
utilities for the company’s goods and services.
Utility
refers to a product’s usefulness to customers
so that they are convinced enough to make a
purchase. In other words, when you hear
“utility” in marketing, think “usefulness to
customers.”
Types of Utility
•Form utility
•Time utility
•Place utility
•Possession utility
Form Utility
refers to how well an organization can increase the
value of its product in the customer’s eyes by making
changes and altering its physical appearance.
Time Utility
Marketing creates time utility when it makes products
and services available to customers so that they can
buy it when it is most convenient for them.
Place Utility
Marketing creates place utility when it makes goods or
services physically available, convenient, and accessible
to customers.
Possession Utility
Marketers facilitate possession utility by ensuring that a
product is relatively easy to acquire. It also
encompasses the pride or satisfaction you get from
owning a new product, such as a great-fitting pair of
running shoes or a smartphone with all of the features
you’ve been wanting
The Marketing Process Defined
The marketing process refers to the series of steps that
assist businesses in planning, analyzing, implementing,
and adjusting their marketing strategy.
Steps in the Marketing Process
TRADITIONAL
APPROACHES TO
MARKETING
The Production Concept
assumed that consumers were mostly

interested in product availability and price,
not necessarily product features.
The Product Concept
Assumes that customers will always prefer and
patronize products of offered quality,
performance, and/or innovative features.
The Selling Concept
Emphasizes aggressive selling and

promotional efforts.
CONTEMPORARY
APPROACHES TO
MARKETING
The Marketing Concept
built on the premise that an organization will achieve its goals
when it satisfies the needs and wants of the consumer. As a
result, firms began to focus on customer needs before
developing products, rather than developing products and
then trying to “sell” them to consumers.
The Relationship Marketing Concept
Believes that all marketing activities are to
establish, maintain, and strengthen meaningful
long-term relationships with customers.
The Societal Marketing Concept
Beyond providing solutions to customers, the
societal marketing concepts goes further to
include considerations that protect the
customers’ well-being and interests, as well as the
interests of the environment and society.
Identifying Consumer
Needs and Wants
Types of Customer Needs
• Stated Needs. Stated needs are those that are clearly
specified by the customer. It’s what the customer
requests.
• Real Needs. Real needs are one level above stated
needs; they are more specific and define the
parameters that are immediate to defining and
fulfilling the need.
• Unstated Needs. Unstated needs are what the
customer also expects but doesn’t ask for.
Types of Customer Needs
• Delight Needs. Delight needs are those that provide the
“wow” factor. These needs, like unstated needs, can make
some products more desirable than others if they meet
those needs.
• Secret Needs. Secret needs are those that a customer may
not state or realize but can be one of the main reasons for
choosing a particular product to fulfill the basic stated need.
Do customers want a new cellphone as a status symbol but
won’t admit that status is important to them?
Satisfying Consumer Needs
and Wants
“Does marketing satisfy needs, or does it
create needs?”
• Marketing creates value, and value speaks to the

satisfaction of customer needs and the benefits
customers receive from the product. It’s the customer,
however, who ultimately determines how well the
product fulfills their needs and how much value the
product creates.
The Value Proposition
• A value proposition identifies the quantifiable benefits that
customers can expect when they choose to purchase your firm’s
product or service.
• A value proposition is, in effect, a promise from the firm to the
customer, and it can serve as a competitive differentiator to motivate
customers to purchase your firm’s products or services.
• In other words, your value proposition should bring together in a
brief, concise statement of what your customer wants and/or needs
and how your product or service will meet those wants and needs
better than your competitors
The Exchange Process
Exchange Process
the act of obtaining a desired product or service

from an individual or business by providing in
return something of value.
The Exchange Process
END OF LESSON

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PRINCIPLES OF

American Marketing Association

A human want is something that a

Demands are also human wants that

1.Understand the market and its

2.Introduce and innovate products and

3.Design and implement effective

4.Develop marketing programs that

5.Build and maintain mutually beneficial

6.Capture customer to create profits.

7.Promote value transactions with full

assumed that consumers were mostly

Emphasizes aggressive selling and

• Marketing creates value, and value speaks to the

the act of obtaining a desired product or service

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