PRINCIPLES OF MARKETING

LESSON 1:

  • Marketing:

    - Social & managerial process

    - obtaining what individuals/orgs need and want through creating and exchanging

    “The process by which companies create value for customers and build strong relationships in order to capture value through the exchange process” - Kotler & Armstrong

    “The process of planning, executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization goals.” - American Marketing Association

    “The aim of marketing is to make selling unnecessary.” - Peter Drucker

  • Market: Collection of buyers

  • Industry: Collection of sellers

Roles of Marketing

  • Identify costumers

  • Satisfy costumers

  • Retain costumers

3Cs of Marketing

  • Costumer: Satisfy

  • Company: Ensure corporate health and profit

  • Competitors: Outperform competition

  • Needs: A person must have to survive

  • Wants: A person desires to have

  • Demands: Wants supported by purchasing power

  • Market offerings: Combination of products, services, information, or experiences to satisfy a neeed or want.

  • Exchange: Having a desired object by offering something in return

Goals of Marketing

  • Maximize consumption: Produce products and services that consumers can take to maximum consumption

  • Maximize consumer satisfaction: Produce products and services that meet consumer satisfaction.

  • Maximize choice: Has variety

  • Maximize life quality: Product has excellence and lifespan

TRADITIONAL APPROACH (Product centric)

  • Commodity/Product

- How to market

- Used in solving highly specialized marketing problems

  • Institutional

- Provide useful analysis of operations, evaluation, function of a particular institution

  • Functional

- Useful to students specializing in marketing

  • Production

- Assumes Costumer assumes products are inexpensive

  • Sales

- Strategy to increase sales and revenue by making costumers buy what they need

  • Marketing

- Considers needs of costumer and product offered

- Provide solution costumers’ problems

  • Relationship

- Centers on maintaining and improving relationships

  • Societal

- Organizations must satisfy needs of costumers that gives society’s benefits

CONTEMPORARY (Costumer centric)

  • Marketing mix (4Ps)

- PRODUCT, PRICE, PLACE, PROMOTION

  • Conceptual

- Focuses on marketing rather than activities

  • Marketing management

- Managerial approach to marketing

  • Macromarketing

- Looks at the entirety and relates to overall function of marketing

  • Micromarketing

- Examines individual firm within the economic system

  • Social

- Marketing as social institution rather than business activity

  • Comparative

- International marketing

- Recognizes existing environmental differences

  • Holistic

- Based on 4Ps integrates all the approaches

  • Not-for-profit

- Does not earn profit for owners

  • Person Marketing

- Attention towards a celebrity

  • Place

- Exert a pull on customers to particular areas

  • Cause

- Marketing of a social issue

  • Event marketing

- Marketing of sport, culture, and charity to selected target markets

  • Green

- Selling products and services based on environmental benefits

LESSON 2

  • Relationship marketing

- Developing and enhancing long-term relationships