PRINCIPLES OF MARKETING

MARKETING STRATEGY
WHAT IS MARKETING? STIMULATION
-process of creating, -market segmentation; Target
communicating and exchanging Market Selection; Value
offerings that have value for Proposition; Product Positioning
customers, clients, partners, or
society at large.

FOUR KEY POINTS MARKET MIX DECISIONS

 Creation -product; price; place; promotion
 Communication
 Delivery of Value IMPLEMENTATION AND CONTROL
 Exchange Offerings of -implementation; Monitoring;
Values Marketing Mix Adjustments

GOALS OF MARKETING WHAT DO ORGANIZATIONS

MARKET?
1. Understand the market and its -product and service; the most
consumers, and satisfy their common marketing but in
changing needs and wants today’s generation marketing
2. Introduce and innovate organizations also started to
products and services that market:
improve human condition and
the quality of life  Experience
3. Design and implement  Ideas
effective customer-driven  Event
marketing strategies  Persons
4. Develop marketing programs
that deliver superior value to WHAT IS MARKETING MIX?
consumers.  PRODUCT (creating
5. Build and maintain mutually value)
beneficial and profitable  PRICE (capturing value)
customer relationship  PLACE (delivering value)
6. Capture customer value to  PROMOTION (delivering
create profits value)
7. Promote value transactions
with full regard to be well-being PRODUCT
of societies -goods or service that are offered
to the market
THE MARKETING PROCESS -to be able to sell a product in
the market, consumers must
SITUATIONAL ANALYSIS recognize that it is something of
-micro-environmental; The value to them
Maker; Customer; Competition;
SWOT
-the value offered to the market
pertains to the benefits that ACCORDING TO
consumers look for in a product DIFFERENTIATION
-Differentiated Goods:
THREE PRODUCT LEVEL Characteristics and features
varies that made them easier to
ACTUAL PRODUCT- tangible or identify from one another
the physical product
CORE PRODUCT- benefit of the BRANDING is the ability of a
product that makes it valuable to manufacturers to successfully
the customer distinguish their products from
AUGMENTED PRODUCT- non- competitors.
physical part of the product
usually the added value -Undifferentiated Goods:
Products whose physical
characteristics are identical and
SERVICE difficult to distinguished one
-intangible benefits a customer purchased to one vendor or
enjoys that are performed by another
people or machine
BRANDING
IMPORTANCE -BRAND: a name or mark which
-Features: They inform identifies the product of one
customers about the product’s company with other competitors
functionalities and help them
compare different options -BRAND NAME: words, letters,
and/or numbers which can be
-Benefits: They speak to the vocalized
customer’s needs and desires,
convincing them that the product -BRAND MARK: symbol, designs,
will solve their problems or make logo, or distinctive color or
their life better. lettering which can be simply
visualized
CLASSIFICATION OF
PRODUCTS/GOODS WHY DO SOME MANUFACTURES
BRAND THEIR PRODUCTS?
ACCORDING TO USE
-Consumer Goods: That is ACCORDINT TO DURABILITY
purchased for personal -CONSUMABLE: Benefits can
consumption and/or for only be used by a customer for a
household use short period of time sometimes
only a few minutes
-Industrial Goods; Purchased in
order to make other goods, serve e.g. consumable, non-edible such
as a raw materials or input in as detergents and toiletries
production of other goods.
-SEMI-DURABLES: Benefits can from the payment made by a
be used by consumer for a longer consumer
period of time usually spanning -value for money refers to the
several months total amount spent for a product
or service
e.g. clothes, shoes, belts, jackets
and bags 6 PRODUCTS PRICING
STRATEGIES FOR NEW
-DURABLES: Products that are PRODUCTS
manufactured to last a long time.
Capable of providing years of -VALUE PRICING: It involves
beneficial use. setting rates high during the
introductory phase. This is
e.g. automobiles, houses, home designed to help businesses
appliances, electronics, and maximize sales on new products
furniture and services. Once the product
or services are introduced,
ACCORDING TO TYPE company lowers the prices
-CONVENIENCE GOODS: gradually
Products that are purchased
frequently are usually -COST-PLUS PRICING: With this
inexpensive and do not require method, simply add a percent-
much purchase effort and based markup to your product
evaluation cost and you’ll know what to
charge.
-SHOPPING GOODS:
Presentations are tools that can -PENETRATION PRICING: Setting
be used as lectures a relatively low price for a
product in its introductory stage
-SPECIALTY GOODS: Goods
that require usually large effort -DYNAMIC PRICING: It is where
on the part of consumers to business change the price of
acquire their products depends on who
they’re selling, to where and
-UNSOUGHT GOODS: Goods when.
that consumers seldom or
actively look for, and are usually -PREMIUM PRICING: This refers to
purchased for extraordinary setting a very high price to
reasons such as diversity or fear, reflect elitism and superiority
rather than desire.
-BUNDLING: This refers to two or
PRICE more products or services in on
-captures the value of a product reduced price.
-in exchange for the product, a
company captures value or profit
PLACE
-the location where the products  Personal Selling
deliver value  In-store Promotion
-place includes the necessary to
make the products available to
consumers
-products are normally sold to
consumers through retails stores DIGITAL TOOLS
 Social Media Marketing
DISTRIBUTION CHANNELS  Content Marketing
-people and firms involved in the  Search Engine
transfer of title to a product as Optimization
the product moves from  Influencer Marketing
producer to ultimate consumer or  Mobile and Email
business user Marketing

 Producers EXTENDED MARKETING MIX

 Middlemen  PRODUCT
 Final Consumer/Business  PRICE
User  PLACE
 PROMOTION
PROMOTION  PEOPLE
-a powerful message can  PROCESS
influence consumers to buy, and  PHYSICAL EVIDENCE
buy some more.
-promotions is the component PEOPLE
that informs, persuades, and -have a major influence on the
reminds potential buyers of the customer’s buying behavior
value they can get from a -plays vital role in servicing
product customers. People represent the
-the main goal is to gain business
attention -they are the first contact often
of the customer- which provide
PROMOTION TOOLS last impression whether a good
-the various methods businesses or bad image
use to communicate with their
target audience and generate PROCESS
interest in their products and -the step by step procedure or
services. They play a crucial role activity workflow
in influencing customer purchase -it is followed by the
decisions and building brand entrepreneur or the employees
awareness. for more effectively service to
customers
TRADITIONAL TOOLS
 Advertising PHYSICAL EVIDENCE
 Sales Promotion -refers to all the tangible
 Public Relations elements a customer
experiences when interacting
with your brand
-it’s the visual and sensory
impression your business creates
across various touchpoints.

ABRAHAM MASLOW’S
HIERARCHY OF NEEDS
-proposes that people are
motivated to achieve a certain
need, and some needs are
prioritizing over others.

BIOLOGICAL AND
PHYSIOLOGICAL
-refers to all the basic needs for
survival
-the human body will not be able
to function normally if these are
not met

e.g. food, water, shelter, clothing

SAFETY
-people needs to feel secure
once they satisfy their basic
needs.

 Personal Security: living

in a community that is
free from crime and
violence
  Financial Security: job WANT
security and financial -a desire or preference for
freedom somethings that is not essential
 Health: free from for survival but improves one’s
sickness and having a quality of life
healthy body -when needs are shaped by
 Assurance: health/life culture and individual
insurance that provides personality, they become wants
security should an
accident or death occur DEMAND
-are wants that are backed with
SOCIAL buying power. When people have
-this is all about feeling money to pay for their wants,
connected to other people they become part of the demand
-it’s like wanting to be part of a for that product.
group or family. We need friends,
love, and a sense of belonging.
-having strong ties with your
family, friends, and social groups THE MARKETING PROCESS
satisfies this need. -create value for customers and
build customers relationship
ESTEEM
-the need to be accepted by 1. Understand the market place,
others is important to people customer needs and wants.
-people need to feel respected  Research the market
and confident about themselves place, customer’s needs
and wants.
e.g. selling beauty products  Manage marketing
information and
customer data
SELF-ACTUALIZATION
-the need that drives people to 2. Design a customer-driven
maximize their full potential as marketing strategy
human beings and actually work  Select customers to
hard to realize their dreams serve;
-personal growth, finding  Segmentation and
meaning and purpose in your life Targeting
and accepting yourself and  Design a value
others for who they are. proposition
 Differentiation and
NEED Positioning
-a basic necessity required for
survival or well-being. 3. Construct an integrated
marketing programme
e.g. food, water, shelter, clothing
  Product (or service) -companies produced more
designing and building products for the market and the
strong brands competition became intense
 Pricing and making
attractive SALES ORIENTATION (1930)
 Place (Distribution) -sell, sell, sell
making available -use aggressive selling,
 Promotion communicate advertising, and distribution
customer value tactics

4. Build profitable relationships MARKET ORIENTATION (1950s-

and create delight onwards)
 CRM: building strong -develop a product that caters to
relations with target the needs and wants of
customers consumers
 PRM: building strong -companies offer different brands
relations with marketing in one segment
partners

5. Capture value from customers

to create profit and customer
equity
 Create customer
satisfaction and delight
 Capture customer
lifetime value
 Increase market share
and share of customers

THE EVOLUTION OF MARKETING

APPROACHES

While consumers now enjoy

modern and creative way of
marketing products that they
THE CHANGING MARKETING
actually need or want, this has
ENVIRONMENT
not always been the case.
DIGITAL AGE
DIFFERENT MARKETING
-social media has become a vital
APPROACHES
source of information,
entertainment and interaction
PRODUCTION ORIENTATION
-through e-commerce companies
(1850)
can track the consumer’s
-offer a superior, innovative
transactions what sites or online
product
post that the consumers make
follow on social media.

SAVY CUSTOMERS
-customers check product
reviews and prices online befpore
makiojng purchases
-content reviews generated by
customers are also useful for
companies, so they know what to
improve on or maintain their
product

RAPID GROWTH
-globalization definitely changes
the competition scene, as
companies from other countries
compete with local businesses
-local businesses must keep up
with the bigger global
companiers so they can offer
products that are at par or better
in terms of quality, design, and
price compares to global brands.