Goal: Attract new customer by promising superior value and keep and grow current

PRINCIPLES OF MARKETING customers by delivering satisfaction.

Module 1-Marketing Principles, Interacting Components of Marketing
Goals & Approaches COMPANY --------------------MARKET
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 The company and its market are equally important. It is marketing that gives
must satisfy human needs and wants through the exchange process and the fulfilment to both components. Marketing people should balance between the
building of long-term relationships. company’s requirements for profit and desired market share.

Over the years, marketing has evolved various definition and its meaning changes This is composed of two other interacting components: the customer and
according to the views of the different marketing gurus. Many view marketing as competition. The overriding objective of the company is not just to satisfy the
process or dynamic business activity that is designed to plan and promote the needs and want of its customer. It must profitable and better than its competitor.
delivery or satisfy needs and wants of the potential and present market. In the Otherwise, the competitor could win the customers because it is able to satisfy
definition of marketing given by the American Marketing Association or AMA, them.
“Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer Customer Needs and Wants
relationships in ways that benefit the organization and its stakeholders.” The Need is one important component in the marketing of products. It is the consumer’s
definition views as an exchange process or discipline that involves strategies, desire for a product or service. The product or service must have specific benefits
activities, positions, and institutions. that satisfy the functional or emotional needs. On the other hand, basic needs are
The definition of Marketing according to Dr. Philip Kotler, “A social and managerial food, clothing, and shelter. We cannot live without them and marketers must be able
process whereby individuals and groups obtain what they need and want through to provide them to human population.
creating and exchanging products and value with others.” It is also defined as the Food can be processed in different tastes; styles and menus that shall meet the
meeting of the minds between the seller and the buyer to satisfy human needs and human craving and satisfaction. Clothing could be designed into different styles
wants with profit on the part of the marketer and the satisfaction of the buyer for depending on people’s taste and social values. Shelters are constructed differently
depending on the capacity of the buyer to finance his home. These needs are the
the money he spent. On the bases of this view, marketing is an organization
marketer’s point of interest for profit.
intervention and functions that set the process of creating, communicating and
Wants are higher-level human needs as they appeal more to the emotions. These
delivering value to customers.
are the social needs for recognition and the development of higher social
From the academic point of view, marketing is the art and science of creating satisfaction is limitless. The development of technology and different electronic
tangible products or services and finding the market, getting and retaining them to gadgets are more of human wants. The marketers must continuously improve
attain profitable operations. On one hand, it is a societal process that marketers must technological inventions to sustain customer wants.
communicate the sustainable value of the product or service to its target market. It is
a critical business process for attracting customers to satisfy their needs and wants. Marketing concepts:
Marketing is also an integrated process through which companies create value for
1. Marketing must be Customer Oriented.
customers and build strong customer relationships in order to capture value from The planning and operation must be directed towards customer orientation. The
customers in return. Simply put: Marketing is the delivery of customer satisfaction whole marketing organization and its operating staff must be focused on
at a profit. determining what will satisfy the needs and wants of the target customers, the
important link in the business operation.
2. Marketing must be Coordinated Activities
Coordination activities must start in the product planning process, the process. The 4. The Production Process
product is the key element that the customer wants to buy that is worth his The process must conform to standards in terms of product quality. The race to
money. Price is another important component as customers would like to get his economic profitability is the production of products that shall satisfy the customer’s
wants and needs. The role of marketing is to sell more products, but it must conform
money’s worth. The place of distribution must be within his reach and the
to customer demand. Production may produce so many products, yet they are
promotional activities must be appealing for him to decide which product to useless inventory when they fail to reach their target market. Marketing efforts will
purchase. turn them into profitable inventory.

5. The Presence of Competitors

3. Marketing must be able to achieve the Performance Target Goals and
The marketing of products becomes interesting with the presence of competitors.
Objectives.
Marketing outfit must develop strategies in capturing their target market and
Customer-oriented and coordinated marketing aims to achieve its profit,
develop and sustained patronage. These marketing strategies must develop customer
objectives and goals. These goals and objectives hinge on the increase in sales loyalty to the brand or the product. Product improvement and pricing strategies with
volume and customer’s patronage. When product planning, price, promotion and sustained promotional and advertising program are important components in the
distribution and properly coordinated, it will result in the most effective way of competitive market.
satisfying the customer’s needs and wants. The sales volume and profit objective
will be realized. 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
Factors for Developing Marketing Concepts company can produce enough products to fill the need, and the marketing method
1. Capturing Marketing Insights by which the need can be filled.
Several Distinct Traditional Approaches:
The overall direction must focus on its vison and mission. The organizational goals 1. Production concept focuses on the internal potentials of the company and not
and objectives must be directed towards the creation of value to its customers. based on the desires and needs of the market.
These must be the inherent philosophy of the marketing organization. The 2. Marketing concept a philosophy which states that organization must try hard to
functional areas in the marketing organization must be focused towards its ultimate find out and satisfy the needs and wants of consumers while at the same time
set of tasks in the building of long-lasting relationship with its target market. accomplishing the organizational goals.
2. Effective Financial Management System 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
This system in the procurement of quality and affordable materials for processing of market.
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 4. Relationship concept/marketing an approach that centers on maintaining and
materials interplay in their production. Financing the marketing program will improving value-added long-term relationships with current customers, distributors,
develop effective sales program that will bring in sustainable profitability. dealers and suppliers.
3. The Value of Human Resources 5. Societal Marketing Concept views that organizations must satisfy the needs of
consumers in a manner that gives for society’s benefit.
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 The Goals of Marketing and their Social Effects
service. They must develop work ethics and strong commitment to the marketing 1. Maximize the Consumption of Goods - The Aggressive marketing strategies
efforts of the organization. Sustainable development and progress rest with people and policies had increased the consumption of goods and services. The demand of
who are willing to put all efforts towards the organizational objective of quality the market is tremendous. Sellers face many challenges on what products to offer.
products and service. Buyers want quality products at reasonable price and t the most convenient location.
2. Maximize Consumer Satisfaction - The market demand is varied, and customer 6. Reputation
satisfaction is the challenge of the marketing organization. Measurement of 7. Increasing distribution channels
customer satisfaction is difficult. It embraces careful analysis of the market demand
which varies with the time and the social development of society.
The customer may be satisfied with the product the marketing people produce but it
What is Traditional Marketing?
may create pollution to the environment. Plastics are good packaging materials for
Traditional marketing is an umbrella term that covers the wide array of
consumer goods but they create flood and environmental pollution. Cars and other
advertising channels we see daily. These may include print media, billboard and TV
vehicles using gas serve the convenience of the riding public, but they create global
advertising, flyer and poster campaigns and radio broadcast advertising.
warming that result to environmental imbalance.
These traditional marketing messages are not necessarily outdated; however,
3. Maximize Choice of Goods or Service - Some marketers believe that the goal of
research has shown those companies that have abandoned simply using these
marketing is to maximize the variety of the product in the market and provide
channels, and adopted contemporary marketing channels proposed in this article,
consumers a wide assortment of choices. The main objective is for customers to find
have remained prosperous and in fact seen an increase in leads, a higher quality of
the goods that will satisfy their biological needs as well as their emotional and
leads, sales and traffic to web content.
social wants.
Ansoff's Matrix Theory
Development of new products needs research but that will mean time and costs.
Traditional marketing theories include Ansoff's Matrix, a theory that proposes
Maximizing consumer choice entails cost as the economies of scale do not operate
products/services fall into one of four categories depending on the market and the
in production of goods. The consumers must spend time studying the benefits of the
product released. New Product- New Market is considered as diversification. This
production of goods.
theory recommends that businesses should try to diversify their product portfolio to
4. Maximize the Quality of Life - The improvement of the quality of life is the
spread risk amongst their product range. An example of this would be when Apple
target of marketing people. New hand phones are created to communicate with
created the first iPhone released in 2007. This product was new and introduced into
various sectors of society, friends and families. Easy communications access
a new market. Apple soon reaped the benefits of introducing this hugely popular
satisfies not only social needs but also business requirements. Compu0terss and
phone. Their product range grew from accommodating for designers on the Apple
others electronic gadgets bring pleasures to homes and enjoyment of the comfort of
Mac, to mobile devices, tablet devices, watches and beyond.
living.
The Marketing Mix
Goals of Marketing
Another marketing theory that's considered to be traditional is the marketing mix
1. Focusing on customer wants and needs to distinguish products from competition
made up of the 7 P's. These include product, place, promotion, price, packaging and
2. Integrating all the organization’s activities to satisfy customer wants and needs positioning. All these components, when combined, create a solid marketing
3. Achieving the organization’s long-term goals by satisfying customer wants and proposal. However, this theory as well as Ansoff's, can be drastically improved with
needs the use of contemporary marketing strategies.
Key Performance Indicators Definition of Contemporary Marketing
Key performance indicators (KPIs) are used to check that the marketing activities of Simply defined, contemporary marketing refers to marketing strategies that are
a company are on track. KPIs are specific metrics which are used to track consumer focused. Contemporary marketing strategy offers products and services
performance to make sure the firm is on track to meet specific objectives. They are based on what the target market desires rather than what the company wants them to
sometimes known as performance drivers or critical success factors for this reason. have, thereby, offering greater support for their customers and becoming able to
Examples of noteworthy marketing goals: take advantage of more advanced marketing funnels to track progress.
1. Identifying the target market
2. Increasing sales and profits Difference Between Contemporary Marketing Orientation and
3. Increasing brand awareness Traditional Marketing Orientation
4. Increasing market share The main difference between the contemporary marketing orientation and
5. Countering competitive strategies 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 not really consider the customer's diverse needs. Rather it is search engine. Therefore, video marketing can prove to be a great way to pass
concerned with the market or industry in which the company operates in. messages to target customers.
Contemporary marketing aims for customers satisfaction in order to build a 7. Inbound marketing is a very powerful contemporary marketing strategy that
relationship with them. Therefore, the types of marketing strategies under focuses on different tactics to draw consumers in and convince them to buy goods.
contemporary marketing are concerned with the needs of customers. 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
Here are some of types of marketing: Institute refers to as "a strategic marketing approach focused on creating and
1. Business to Business - B2B Marketing distributing valuable, relevant, and consistent content to attract and retain a clearly
2. Business to Consumer - B2C Marketing defined audience."
3. Brand Marketing Green Marketing refers to the process of selling products and/or services based on
4. Cloud Marketing their environmental benefits. Company are selling products and/or services by first
5. Telemarketing promoting its benefit that is environmentally friendly or produced in an
6. Guerrilla Marketing environmentally friendly way.
7. Push Marketing For green marketing to be effective, there are three things that needs to be done:
8. Influencer Marketing 1. Being genuine a. The company is doing what it claims to be doing in its
Emerging Types of Marketing and their Applications: green marketing campaign and;
Based on a 2017 report by Kleiner Perkins Caulfield and Byers, an internet trend
b. The rest of the business policies are consistent with whatever the firm is
investment firm, 3.4 billion people use the internet. Therefore, the internet has
doing that’s environmentally friendly.
become an easy and quick way to research, reach and engage customers.
1. Search engine optimization is majorly concerned with increasing a business’
4. Educating the customers isn’t just a matter of letting people know that the
visibility and rankings on search engine result pages. It is a simple way of attracting
company is doing whatever it doing to protect the environment, but also a matter of
organic traffic of potential customers to a website. SEO can be maximized with paid
letting them know why it matters.
adverts (Google AdWords), strategic content marketing and social media networks.
2. Giving customers an opportunity to participate means personalizing the
2. Pay per Click advertising: This is advertising presented on search engine result benefits of the company’s environmentally friendly actions, normally through
pages or web pages where the advertiser is only charged based on the number of letting the customer take part in positive environmental action.
times someone clicks on the ads to go to the advertiser's targeted website.
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.
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.
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.
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