Principles of Marketing

July 12, 2018

START-UP QUESTION:
What was the last product or
service you bought or availed
that made you felt dissatisfied?
Explain your answer.
Group Activity:
1. Form two (2) groups.
2. Each group will be given different
situations.
3. Members of the group will
brainstorm to answer the questions.
For Group 1:
1. In the market, there are many different kinds of
customers. When it comes to selling products, what
strategies you will use to cater the following
customers:
a. Love low priced goods
b. Concern with quality of products

2. You are making personalized keychains and a

survey revealed that only 5% of the population has
this kind of demand. Having lack of awareness with
this market situation, your firm manufactured
thousands of keychains ready for distribution. What
will you do?
For Group 2:
You have your restaurant business, what will you
do if you are faced with the three (3) situations
below:
1. Customers are looking for food that can be
comfortably eaten while walking or riding in a
jeepney but what they want is a rice meal. You
are aware that you can’t provide their demand
because you don’t have that kind of meal. What
will you do?
2. What will you do to reach your customers
anytime and anywhere?
3. Think of one outreach program that your
restaurant can do for the community.
 Traditional and
Contemporary Approaches
to Marketing
Traditional Approaches to Marketing
Evident up to the late 1960s, traditional
approaches in marketing focused on
production methods, product quality, and
effective selling methods as profit drivers in
marketing.
 SUPPLY < DEMAND
1. The Production Concept
It assumes that customers assumes
products that are inexpensive, affordable,
and widely available.

The objective is to lower production costs resulting

in lower prices. However, this concept is relevant
only if customer tastes and preferences are stable
and product demand is high.

Examples: Lucky Me! Instant Noodles & CD-R King

 SUPPLY < DEMAND,
2. The Product Concept COMPETITION GROWING
It assumes that customers will always prefer
and patronize products of high quality.
Resources are focused on product
improvement and innovation. Product
attributes and features are continuously
enhanced.
Too much preoccupation on product
quality may neglect the customer’s
changing needs.
Example: Night Market at Lipa Public Market
 SUPPLY > DEMAND
3. The Selling Concept
It emphasizes aggressive selling and
promotional efforts. It assumes that
customers are generally timid and must be
persuaded into buying.

The objective is to sell what is

manufactured rather than manufacture
what the market wants.

Examples: Subdivision Development in Lipa City,

Car Manufacturing Companies
Contemporary Approaches
to Marketing
In contrast, contemporary marketing
approaches are centered on the
customer, relationships, and the well-
being of society.
 SUPPLY > DEMAND,
CUSTOMER CENTRIC STRAT
1. The Marketing Concept
It considers the needs of both the customer
and the product offered.
The objective is to provide a solution to the
customer’s actual and perceived problem.
The key is to be more effective in the
creation, communication, and delivery of
this value to customers.
2. The Relationship Marketing Concept
It believes that all marketing activities are for the
purpose of establishing, maintaining, and
strengthening meaningful long-term relationships
with customers.
Extensive customer databases are created,
maintained, and updated.
Customer profiles, purchase habits, and
preferences are tracked and monitored.
This is to ensure that customers’ needs are fulfilled
and the relationship with them is maintained.
3. The Societal Marketing Concept
The concept is similar to the marketing
concept.
However, beyond providing solutions to
customers, the societal marketing concept
also includes considerations that protect
the customers’ well-being and interests, as
well as the interests of the environment
and society.
Assignment:
 Review for the long test on
Thursday