CONTENT:
MARKETING PRINCIPLES AND
STRATEGIES
LESSON 1
MARKETING AND ITS
TRADITIONAL
APPROACHES
OBJECTIVES
• Define marketing
• Describe the traditional approaches to
marketing
What is
Marketing?
Marketing
Marketing has a vital role in everyone’s living. As
consumer of goods and services people participate in
the marketing process
Marketing is not just the job of marketers. It is the job
of everyone in the organization. Therefore, it is
essential that business people understand marketing .
Two Feature of Marketing
1. It is a philosophy, an attitude, a perspective
and a management orientation that emphasizes
customer satisfaction.
2. It is an organization function and a set of
processes utilized to put into practice this
philosophy
5 Basic
Components
5 Basic Components
NEEDS
WANTS
DEMAND
EXCHANGE
MARKET
NEEDS
BASIC
Food
Clothing
Water
Shelter
WANTS
A human want is the Effective marketing
form that a human through creating an
need takes as shaped awareness of good
products sold in
by culture, individual
convenient locations can
personality and social obviously form a person’s
and environmental wants
forces,
DEMANDS
Demand are People demand
human wants that products with the
are backed by benefits that add
buying power. up to the most
Consumer view satisfaction
products as
bundles of benefits
and choose
products that give
them the best
bundle for their
money
EXCHANGE
Marketing happens The buyer gained
when a buyer and something and the
a seller exchange seller and given up
something of value. something but both
of them are more
contented because
each has satisfied
their unmet needs
MARKET
This is composed The desire to buy a
of people with both certain
desire and ability to product/service of
buy a specific people with unmet
product/service. needs is not
sufficient. People
also must have the
ability to buy like
authority, time and
money
PACTICULARS NEEDS WANTS
HUNGER FOOD CHINESE: NOODLES
AMERICANS: HAMBURGER
ITALIANS: PIZZA, PASTA
JAPANESE: SUSHI
FILIPINOS: RICE-INTENSIVE
MEALS
FASHION WEAR CLOTHING UNIQLO, BENCH,
LEVIS,FOREVER 21, H&M
INFECTIONS ANTIBIOTICS AMOXICILLIN
SHELTER HOUSE APARTMENT, CONDO, TOWN
HOUSES
THIRST BEVERAGE SOFTDRINKS, MINERAL WATER
TRANSPORTATION VEHICLE CARS, VANS, PLANES
RECREATION SPORTS BASKETBALL, VOLLEYBALL
THE SCOPE OF
MARKETING
Marketing people are involved in marketing 10 types of
entities
THE SCOPE OF MARKETING
GOODS INFORMATIONS
SERVICES IDEAS
EXPERIENCES
EVENTS
PERSONS
PLACES
PROPERTIES
ORGANIZATIONS
GOODS
The Philippines produces and markets
billions of physical goods. In developing
nations like this country.
SERVICES
The Philippines economy today consists of a lot of
services-to-goods mix. Services include airlines,
hotel.
EXPERIENCES
Through organizing a number of services and
goods such as market experience
EVENTS
Marketers endorse time-based events, such
as the Pacquaio- Bradley fight, trade shows,
sports shows.
PERSONS
Celebrity marketing has turn into a main and
popular business, such as artist and
musicians.
PLACES
Place marketers consist of economic
development like real estate agents and to
magnetize tourist, such as cities and nations
PROPERTIES
Properties are intangible rights of ownership
of either real property ( real estate) or
financial property ( stocks and bonds)
ORGANIZATIONS
Organizations aggressively labor to create a
strong, positive image in the mind of their
publics
INFORMATIONS
The productions, packaging, and distribution of
information is one of society’s chief industries.
Publishers of encyclopedias, nonfiction books or
internet web site are among marketers of information
IDEAS
Each market offering has a fundamental idea at its
core. Basically, products and services are platforms
for conveying some idea or benefits to gratify a core
need
TRADITIONAL APPROACHES
TO MARKETING
TRADITIONAL APPROACHES TO
MARKETING
Traditional concept marketing is a marketing strategy a company uses to
determine if it can produce enough products consumer want or need, and
marketing method by which the need can filled.
Traditional marketing concepts rely on the concept hook to sell a product, with
the end goal being to reach a target audience in such a way that the company
makes its product or services attractive.
PRODUCTION CONCEPT
Production concept focuses on the internal potentials of the company and not
based on the desires and needs of the market.
In situations like when competition is weak or when demand goes beyond
supply, a production – focused company can survive and even flourish
In most Asian countries in the early time, buyers were eager to buy any goods
that were manufactured due to scarcity. During this time also products were
basic and simple. Due to scarcity and simplicity of products, most companies
focuses on production and not marketing . The essential idea was that products
would sell themselves
CONCEPT PRODUCTI SALES MARKETIN RELATIONS SOCIETAL
ON G HIP MARKETIN
G
Prevailing A good Creative Find a Long-term Products
Attitude product selling and need Relationshi Must be for
will sell advertising And satisfy p with the best
itself will it customers interest of
persuade and other consumers
consumers partners an the
to buy will lead to society
success
Examples Ford for Matsushita [Link] Singapore Best buy
black cars; for m Airlines
Sanyo for electrical [Link]
plastic component m
radios s and
appliances
Approxima Before Before Before Before After
te 1920’s 1950’s 1950’s 1990’s 1990’s
Time
Period
SALES CONCEPT
A sales concept refers to the idea that people will buy more goods and services
though personal selling and advertising done aggressively to push them in the
market. Failure to understand the needs and wants of customer is one of the risks
of this concept.
The usual solution is to hire competent salespeople and advertisers who will
persuade customer to buy the product or services. However, despite the quality of
the sales personnel and advertisers most companies using this concept fail to
convince buyers to buy the items that they neither need nor want especially for non
– essential goods and services
FOCAL MEANS GOAL
POINT
PROFIT BY
PRODUCTS INCREASING THE
SALES VOLUME
SALES AND
MARKETING
MARKETING CONCEPT
Marketing concept is a philosophy which states that organization must try hard to
find out and satisfy the needs and wants of consumer while at the same time
accomplishing the organizational goals.
The recipe for success is delivering the desired satisfaction of customer more
effectively and efficiently than competitors.
Companies that apply this concept should integrate marketing ideas into the
production cycle the beginning of the product design rather that when the product is
completed
FOCAL
MEANS GOAL
POINT
REACHING THE OBJECTIVES OF
THE ORGANIZATIONS WITH
CUSTOMER NEEDS SATISFYING THE CUSTOMER
AND CUSTOMER
WISHES
INTEGRATED
MARKETING
EFFORT
RELATIONSHIP CONCEPT
Relationship Marketing is an approach that centers on maintaining and improving
value- added long-term relationship with current customer, distributions, dealers
and suppliers.
This customer-driven marketing in the forms of alliances and partnerships among
manufacturers, retailers and suppliers
SOCIETAL MARKETING CONCEPT
The exchange between buyer and seller engages many ethical
problems.
Some problems actually affect the society as a whole . Ideally all
organizations must be accountable to a larger society when it comes
to the issue of social responsibility
In generating marketing decisions for the organizations, marketer
should not forget the welfare of the society in general. This is the
essence of societal marketing concept which views that organizations
must satisfy the needs of consumer in a manner that gives for
society’s benefit. ScotchBrite manufactured by 3M are soap pads
made out of recycled plastic bottles that do not rust or scratch
MARKETING
APPLICATION 1
DIRECTIIONS: READ THE ARTCLE BELOW AND ANSWER THE QUESTION NEXT TO THE PAGE
CELLPHONES AND DISTRACTED DRIVING-JUST AS DANGEROUS AS DRUNK
DRIVING
Using a cellphone, eating a burger, choosing a song from a digital music player, or reading a
newspaper – normally, marketers want to encourage these behaviors. However, if done
while driving a car , they can have disastrous consequences. Cell phone are an especially
critical problem. In a US study researcher found that the distracting effect of using a
cellphone exceed that of person with 0/08 blood alcohol level, the legal limit for drunks
driving US states
- Why do drivers engage in these dangerous behavior? Many drivers spend numerous hours
on the road and want that time to be productive . According to recent study, more than 50
percent of drivers who have cellphone admit to using it while driving. A Swiss study
concluded that using a cellphone while driving increases the risk of road accident by 300
times. Datuk suret singh, Director general of Malaysian road safety department, believed the
Swedish research could also be applied in Malaysia. He commented, however, that the
department of the Malaysian road safety research would carry out their own study on driver
cellphone use.
- In march 2007, New Delhi's High court in India imposed a slew of new measures to deter
smoking and cellphone use while driving. Anything that distracts the attention of the
driver is dangerous ‘’, said New Delhi traffic commissioner Qamad Ahmed, welcoming the
ruling, which went into effect on April 8 and covers only New Delhi, a city 14 million
people. In Chennai, South India, police cam out with the Idea of getting student to stand
at traffic signals carrying placards, urging motorist not to use cell phone while driving.
Many other countries, Including Japan, Singapore, Australia, Philippines, Taiwan and the
United Arab emirates, prohibited drivers from using their cellphones while driving. Some
countries have also carried out marketing or educational campaigns to inform drivers of
their moral of not legal obligations to drive attentively
QUESTIONS:
1. Do you agree that cellphone is a distraction when
driving? Defend your answer:
2. Have you encounter an incident wherein cellphone has
caused accident and thus you concluded that drivers
should not use it while driving? Relate your story:
3. What would marketers of cellphone do in order to
combat the idea of cellphones being a distractions in
driving? Try using the idea of societal marketing:
SHORT QUIZ
Directions: Match Column A with Column B. Place the best answer of
your choice in CAPITAL letter on the space provided before each
number
COLUMN A
1. State of felt deprivation
COLUMN B
2. Human wants that are backed by buying A. Need
power
3. People with authority, time and money B. Demand
4. Focuses on the internal potentials of the
company
C. Market
5. People will buy more goods and services D. Production
through personal selling and advertising
6. Find out and satisfy the Needs and E. Sales concept
wants of consumer
7. Maintaining and improving value-added
F. Marketing concept
long-term relationship
G. Relationship marketing
8. Human need takes as shaped by culture
9. Satisfy the needs of consumer in a H. Want
manner that gives for society’s benefit
I. Societal marketing concept
10. The job of everyone in the organization
J. Marketing
K. Traditional marketing
MARKETING AND
ITS TRADITIONAL
APPROACHES