THE PRINCIPLES
OF MARKETING
Chapter 1
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Content
 1.1 A Framework of Marketing
 1.2 Needs, Wants, and Demands
 1.3 Marketing Origins, Exchange, and Value
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1.1 A Framework for Marketing
What is
Marketing?
Marketing is an activity, set of
institutions, and processes for
creating, communicating, delivering,
and exchanging offerings that have
value for customers, clients,
partners, and society at large.
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1.1
A Framework
of Marketing
The Marketing System
Importance of
Marketing
1.1
A Framework of
Marketing
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Marketing Mix
1.1
A Framework of
Marketing
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1.2 Needs, Wants,
and Demand
P r e s e n t a t i o n Ti t l e
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1.3 Marketing Origins, Exchange, and Value
Stage 1: Supply < Demand
Stage 2: Supply < Demand
Stage 3: Supply > Demand
Stage 4: Supply > Demand
Competition Growing
Customer-centric Strategies emerge
Marketing Origins
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Marketing
Exchange
1.3 Marketing Origins, Exchange, and Value
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1.3 Marketing Origins, Exchange, and Value
Form Utility – saves the
consumer from the effort of
having to make the product
himself.
Possession Utility –
ownership is already valued by
the customer especially
branded items that command a
premium over substitutes.
Place Utility – making the
product available around the
proximity of the customer.
Information Utility –
knowing things about the
certain product can already
involve it with value.
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Time Utility – firm offer
product or service quicker than
alternative providers, also value
the speed of service.
MARKETING
VALUE
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THE
ENVIRONMENT
AND ITS
OPPORTUNITIES
Chapter 2
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Content
 2.1 Analyzing the Environment
 2.2 Market Research Methods
 2.3 Demand Forecasting
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2.1 Analyzing the Environment
MARKETING ENVIRONMENT
External
Company itself,
suppliers,
intermediaries,
customer markets,
competitors, public.
Environment
Micro
Environment
Competitive
Environment
Macro
Environment
Social, Demographic,
Economic,
Technological, Political,
Legal, and Competitive
variables
Competitors, Competing products and services,
Substitutes
Internal
Environment
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Company cash flow, Organizational structure, Assets and other
resources, Strategic alliances, Product and Services
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2.2 Market Research Methods
Market Information System (MIS)
– is the people, equipment, and procedures used to
gather, sort, analyze, evaluate, and distributed needed, timely, and accurate information to marketing
decision-makers.
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Marketing Intelligence
2.2 Market Research
Methods
– the set of procedures and
sources used by managers to obtain everyday information about
developments in the marketing environment.
Internal Records
– refers to documents in the
company’s order-to-payments cycle, such as invoices, shipping
orders, etc.
Market Research – the systematic design, collection,
analysis, and reporting of data findings and relevant to a specific
marketing situation facing the company.
P r e s e n t a t i o n Ti t l e
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2.2 Market Research Methods
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2.2 Market
Research
Methods
Common
Research
Methods
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2.3 Demand Forecasting
Potential
Market
Who
express
some level
of interest in
a market
offer.
Available
Market
Qualified
Available
Market
It is the subset
of potential
market who
have interest,
income, and
access to the
market offer.
A refinement of
an available
market but
cannot get the
product due to
technical
issues
The Market
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Served Market
The company
can actually
service with its
current state of
logistics.
Penetrated
Market
This is the
subset of the
market that is
already actively
using the
market offer.
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New Product
Existing Product
 Listen to what people say.
 Salesforce opinions
 Expert opinions
 Assessing what people have done.
 Statistical analysis of pastsales data or related data
Using the chain ratio method. It is a
method with a very simple operational
logic and requires simple math
abilities. The premise here is that if
you define your target market well
enough, then you can calculate how
big this market can be.
FORECASTING DEMAND
2.3 Demand Forecasting
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MARKET
SEGMENTS AND
CONSUMER
BEHAVIOR
Chapter 3
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Content
 3.1 Consumer Behavior
 3.2 Consumer Market Segmentation
 3.3 Organizational Market Segmentation
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3.1 Consumer Behavior
Consumer Behavior
– is the study of consumers and the processes they use to choose, use
(consume), and dispose of products and services.
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BUYING ROLES
3.1 Consumer Behavior
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3.1 Consumer Behavior
TYPES OF
BUYING
BEHAVIOR
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3.2 Consumer Market
Segmentation
It is the process of dividing a
broad consumer or business
market
P r e s e n t a t i o n Ti t l e
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3.3 Organizational
Market
Segmentation
This can be segmented according to
the characteristics of the organization.
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Characteristics of
Organizational Markets
•
•
•
•
Fewer and larger buyers
Close customer relationships
Geographic concentration
Derived and fluctuating
demand
• Potential for inelastic demand
• Professional purchasing
Buying Situation
• Straight rebuy – refers to
routinized purchases
• Modified rebuy – firm already
•
purchase the product in the past,
thus supplier has basic data about
the firm
New task – firm still no
experience with the different
suppliers in the market
3.3 Organizational Market Segmentation
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3.3 Organization Market Segmentation
Buying Roles
Buying Process
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POSITIONING
Chapter 4
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Content
 4.1 Positioning
 4.2 Positioning Map
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4.1 Positioning
It is the concept of associating
and developing a mental
position
in
the
public
consciousness
about
your
brand and its products and
services.
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Example:
Automobile
brands
Positioning Map
– it is a
visual depiction of what your
target market thinks about your
product. It also helps marketer to
be better understand the product
that they are working with and
thereby to identify their target
market.
4.2 Positioning Map
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PRODUCT
STRATEGIES
Chapter 5
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Content
 5.1 New Product Strategy
 5.2 Service Strategy
 5.3 Branding
 5.4 Developing the Brand
 5.5 Building Product Portfolios
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5.1 New Product Strategy
Creating the business
model – refers to the mode by
Competitive Strategies
which the product concept seeks to
make money so that it can have a
sustainable operation.
• Least cost – involved producing
goods or service at the least possible
cost and passing to consumers at lowpriced, affordable product.
• Differentiation – involves a lot of
brand-building, with an effort to get the
market to associate the brand with
particular benefits.
• Niche – this focuses on the needs of
a very specific market.
Alternative business models –
Facebook, Newspapers, Buffers
Alternative forms of revenue
generation – Advertising,
Sponsorship, Donations, Rent or
Lease, Subscription
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5.1 New Product Strategy
Business plan – a
document describing the
company’s core business
activities, objectives, and
how it plans to achieve its
goals.
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TYPES OF SERVICE PROCESSES
Direct at
Direct at
People
Possessions
Tangible Acts
People
Processing
Airlines,
Hospitals,
Hotels,
Restaurants
Possession
Processing
Freight, Repair,
Cleaning,
Landscaping,
Retail
Intangible Acts
Mental
Stimulus
Processing
Broadcasting,
Consulting,
Education,
Therapy
Information
Processing
Accounting,
Banking,
Insurance,
Legal, Research
BUILDING UP
THE SERVICE
EXPERIENCE
5.2 Service Strategies
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5.3 Branding
ELEMENTS OF THE BRAND
Trade
Name
Generic
Category
Functions of a brand
 It identifies the product or service
 It communicates messages
 It functions as a legal property
Visual
Cues
Tagline
Colors
Tastes
Shapes
Sounds
Scents
Logo
Elements of logo design
• Keep it simple
• Make it relevant
• Incorporate tradition
• Aim for distinction
• Commit to memory
• Think small
• Focus on one thing
Brand – is a mark of
distinction that can be
sensed usually in the form of
names or terms, signs or
symbols, design elements, or
even a combination of these,
and is utilized for the
purpose of identifying and
distinguishing the goods or
services of one provider from
another.
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5.4 Developing the Brand
Step 1: Develop the brand
strategy
• Product information
• Market information
• Trademark criteria
• Brand name objectives
Step 4: Test the name
Step 2: Develop the creative theme
•
•
•
•
•
•
•
Brand personality
Inferences and connotations
Color palette and style sheets
Font
Visual cues
Acceptable uses and materials
Retail placement
Step 3: Create the names
• Keep it short
• Make it easy to pronounce
and remember
• It should translate well in
target markets
Step 5: Screen for
trademark availability
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It is the collection of all the
products or services
offered by a company.
5.5 Building Product Portfolios
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THANK YOU
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