Chapter 1 Marketing Principles and Strategies PDF

CHAPTER 1: MARKETING PRINCIPLES AND STRATEGIES  LEARNING COMPETENCIES Define and understand marketing Describe the traditional approaches to marketing Discuss the marketing process Discuss the goals of marketing Identify and explain contemporary marketing approaches...

CHAPTER 1: MARKETING PRINCIPLES AND STRATEGIES  LEARNING COMPETENCIES Define and understand marketing Describe the traditional approaches to marketing Discuss the marketing process Discuss the goals of marketing Identify and explain contemporary marketing approaches  MARKETING "Marketing is the combination of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs and/or wants of a selected segment of the market." -Elridge (1970)  MARKETING "Marketing is an organisational function and set processes for creating, communicating, and delivering value to customers and managing relationships in a way that benefits both the organization and the stakeholder." -American Marketing Association (2004)  MARKETING "A societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others" -Kotler (2000) WHAT IS MARKETED? WHAT IS MARKETED? TRADITIONAL APPROACHES TO MARKETING The e-commerce giant is able to offer products at low prices by leveraging its vast logistics network and efficient production processes.  TRADITIONAL APPROACHES TO MARKETING Under this concept, businessmen or PRODUCTION producers believe that customers want CONCEPT products at lower prices. They do not concern for product attributes, i.e. product qualities. TRADITIONAL APPROACHES TO MARKETING This brand places a great value on product concepts. It provides the best products to its customers. Apple does everything right. From the packaging to the logo colors or branding colors all the details matter.  TRADITIONAL APPROACHES TO MARKETING PRODUCT This concept assumes that customers will CONCEPT always prefer and patronize products of high quality. TRADITIONAL APPROACHES TO MARKETING These goods are aggressively sold by tracking down the target segment and sold on the virtue of the product benefits.  TRADITIONAL APPROACHES TO MARKETING SELLING This concept emphasizes aggressive selling CONCEPT and promotional efforts. THE MARKETING PROCESS  SCOPE OF MARKETING Study of consumer needs and wants Study of consumer behavior Production planning and development Pricing policies Distribution Promotion Consumer satisfaction Marketing control  GOALS OF MARKETING Understand the market and its consumers, and satisfy their changing needs and wants Introduce and innovate products and services that improve human condition and the quality of life Design and implement effective customer-driven marketing strategies Develop marketing programs that deliver superior value to consumers  GOALS OF MARKETING Build and maintain mutually beneficial and profitable customer relationships Capture customer value to create profits Promote value transactions with full regard to society's well-being CONTEMPORARY APPROACHES TO MARKETING Pepsi and Coke – Both of these organizations sell the same products. However, the value proposal displayed by both is diverse.  CONTEMPORARY APPROACHES TO MARKETING It is broader than selling concept in the sense MARKETING that it considers the needs and wants of CONCEPT consumers. CONTEMPORARY APPROACHES TO MARKETING This Nike commercial is one example of basic marketing. It features LeBron James, who doesn’t do anything for what seems like a lifetime. Eventually, he laughs and “Just Do It” appears on the screen, followed by a blank screen to end.  CONTEMPORARY APPROACHES TO MARKETING This concept believes that all the marketing RELATIONSHIP activities are for the purpose of establishing, MARKETING maintaining, and strengthening meaningful CONCEPT long-term relationships with customers. CONTEMPORARY APPROACHES TO MARKETING a British cosmetics, skin care and perfume company that champions human and civil rights as well as animal and environmental issues.  CONTEMPORARY APPROACHES TO MARKETING It is an extension of the marketing concept SOCIETAL that covers the society at large in addition to MARKETING the consumers. Under this concept, marketing is not considered a business CONCEPT activity alone but an activity to take care of social needs. -end-