Principles of Marketing W1 PDF

## Principles of Marketing **I am Johemie Quinones** ### Chapter 1: Marketing Principles and Strategies #### Lesson 1: Marketing and its Traditional Approaches **Marketing** is the activity of institutions, and processes for creating, communicating, delivering, and exchanging offerings that hav...

## Principles of Marketing **I am Johemie Quinones** ### Chapter 1: Marketing Principles and Strategies #### Lesson 1: Marketing and its Traditional Approaches **Marketing** is the activity of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. - **Needs:** A human need is something that a person must have in order to live and survive. - **Maslow's Hierarchy of Needs:** - Self-actualization: achieving one's full potential, including creative activities - Esteem needs: prestige and feeling of accomplishment - Belongingness and love needs: intimate relationships, friends - Safety needs: security, safety - Physiological needs: food, water, warmth, rest - **Wants:** A human want is something that a person desires to have. - **Demands:** Demands are also human wants that are supported by buying power. - **Exchange:** Marketing occurs when the buyer and seller trade something of equal value. Both the buyer and the seller have gained something that satisfied their unmet needs. - **Market:** The market is composed of people with both desire and ability to buy a product or service. | Particulars | Needs | Wants | |---|---|---| | Hunger | Food | | | Fashion Wear | Clothing | | | Infection | Antibiotics | | | Shelter | Housing | | | Thirst | Beverage <br> Water <br> Milk | | | Transportation | Vehicle | | | Recreation | Sports | | | Entertainment | Television, radio, DVD/Discs, Casinos | | | Education | School <br> Seminars <br> Course | | | Security | Insurance | | | Interment | Memorial services | | #### Scope of Marketing - **Goods:** Physical goods comprise production and marketing efforts of most counties. - **Services:** As economies progress, a growing proportion of their activities are concentrated on the production of services. - **Experiences:** Through organizing a number of services and goods, one can generate, stage, and market experiences. - **Events:** Marketers endorse time-based events. - **Persons:** Celebrity marketing is turning into a popular business. - **Places:** Place marketers consist of economic development specialists, real estate agents, commercial banks, local business associations, and advertising and public relations agencies. - **Properties:** These contain intangible rights of ownership to either real property. - **Organizations:** Organizations aggressively labor to create a strong, positive image in the mind of their publics. - **Information:** The production, packaging, and distribution of information is a chief industry of society. - **Ideals:** Each market offering has a fundamental idea at its core. #### Traditional Approaches to Marketing - **Traditional Concept Marketing:** A company uses this marketing strategy to determine if they can produce a viable product that consumers want or need, if they can produce enough products to fill the need, and the marketing method by which this can be done. - **Several Distinct Traditional Approaches** - **Production Concept:** Focuses on the internal potentials of the company not on the desires and needs of the market. - **Sales Concept:** Refers to the idea that people will buy more goods and services through personal selling and advertising. - **Marketing Concept:** A philosophy that the organization must try hard to find out and satisfy the needs and wants of consumers while accomplishing the organizational goals. - **Relationship Concept/Marketing:** An approach that centers on maintaining and improving value-added long-term relationships with current customers, distributors, dealers, and suppliers. - **Societal Marketing Concept:** Organizations must satisfy the needs of consumers in a manner that benefits society. #### Lesson 2: Goals of Marketing - **Goals are Different from Objectives** - **Goals:** The top-level broad goals show how the business can benefit from channels. Goals are broad aims that describe the strategy. They describe how marketing will contribute to the business in key areas of growing sales, communicating with the audience, and saving money. - **Marketing:** The marketing department. - **Objective:** Specific, measurable, attainable, relevant, and time-based objectives give clear direction and commercial targets. They can be used to track performance against the target. - **SMART:** SMART stands for specific, measurable, attainable, relevant, and time-based. It's a mnemonic that assists in assessing the quality of business measures. | SMART Attribute | Description | |---|---| |**Specific** | The detail in the information is sufficient to pinpoint problems or opportunities. It must be detailed enough to measure real-world problems and opportunities. | |**Measurable** | Be able to be applied to create a metric. | |**Attainable** | Be able to be applied to create a metric. | |**Relevant** | The information must be applied to the specific problem faced by the marketer. | |**Time-Based** | Objectives must be set for different time periods as targets to review against. | - **KPI:** KPI stands for key performance indicator. It is used to track the marketing activities of a company to ensure that they are on track. KPIs are specific metrics that are sometimes known as performance drivers or critical success factors. - **Developing Marketing Goals** - **Goals Must Be:** - **Attainable:** Goals must contain the desired outcomes for reaching parties and be realistic. - **Consistent:** The goals should align with each other within the organization. - **Comprehensive:** The goal-setting process must be comprehensive. Every functional area of the business must be able to create a goal that aligns with the organization. - **Intangibility:** Planners often confuse goals with strategies, objectives, and tactics. A goal is the outcome of the action taken by the organization. - **Examples of Noteworthy Marketing Goals** - Identifying the target market. - Increasing sales and profits. - Increasing brand awareness. - Increasing market share. - Countering competitive strategies. - Reputation. - Increasing distribution channels. #### Lesson 3: Contemporary Approaches to Marketing - **Not-for-Profit Organization Marketing:** This type of organization doesn't aim to profit for its owners. The money earned is allocated for pursuing the organization's objectives. - **Characteristics of a Not-for-Profit Organization** - **Generate as much revenue as possible to support their causes.** - **Compete with other organizations for donors' pesos.** - **Market to multiple publics.** - **Often possess some degree of monopoly power in a given geographic area.** - **Person Marketing:** Attempts to cultivate the interest and attention of a target market toward a celebrity or authority figure. - **Place Marketing:** Attempts to draw customers to a particular area. Place marketing is used to attract tourists and showcase beautiful spots in different cities, provinces, and regions. It can also be used to promote sites that can be a good place to set up a business. - **Cause Marketing:** The recognition and marketing of a social issue, cause, or idea to a target market. It increases awareness of issues such as literacy, physical fitness, child obesity, and environmental protection, elimination of birth defects, child-abuse prevention, and preventing drunk-driving. - **Guidelines for Cause Marketing Campaigns** - **Understand Marketing:** Before creating a cause marketing campaign, it is important to understand marketing and its elements. You must be able to reach the target audience. - **Support Reputable Causes:** When choosing a cause to support, be sure it aligns with your company's values. Research the organization and make sure it is reputable. - **Maintain Transparency:** Be as transparent as possible about your partnership with the organization. Make it easy for consumers to participate. - **Think Mainstream:** The majority of the organization's supporters should believe in the cause. - **Stay Consistent:** It is best to stay with one cause for a long time to be predictable in the eyes of consumers. - **Event Marketing:** Consists of different sponsors from different companies to support sport, culture, and charity activities to selected target markets. It serves as public awareness. - **Essential Features of Event Marketing** - **Wide Rage of Events:** Event marketing encompasses all event types. - Mega events and local events - Exhibitions - Trade shows - Publicity stunts - Themed and created events - Corporate entertainment - Award ceremonies. - **Goal Oriented:** Event marketing must have a clear objective. - **Effective Promotion and Communication:** Event marketers must be able to communicate to the target audience. - **Proper Evaluation:** Event marketers must be able to evaluate the event's effectiveness. - **Feedback from Clients:** It is important to get client feedback for future improvements. - **Location:** The location should be accessible and near important areas. - **Green Marketing:** Refers to the process of selling products and/or services based on their environmental qualities. - **For Green Marketing to be Effective, there are Three Things that Need to be Done:** - **Being Genuine:** - The company must be actually doing what it claims to be doing in its green marketing campaign. - The company's business policies should be consistent with being environmentally friendly. - **Educating the Customers:** It's about letting people know what the company is doing, but also why it matters. - **Giving Customers an Opportunity to Participate:** This must be done by personalizing the benefits of the company's actions and allowing consumers to participate in positive environmental action. **Thanks!** **Any questions?**