Principles of Marketing

PRINCIPLES OF MARKETING
BY: ARLAN LOPEZ

DEFINITION OF MARKETING
IS DEFINED BY THE AMERICAN MARKETING ASSOCIATION AS “THE ACTIVITY, SET

OF INSTITUTIONS, AND PROCESSES FOR CREATING, COMMUNICATING,
DELIVERING, AND EXCHANGING OFFERINGS THAT HAVE VALUE FOR
CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY AT LARGE.”
FOUR P- (TRADITIONAL WAY OF MARKETING)
• PRODUCT- GOODS AND SERVICES

• PROMOTION- COMMUNICATION
• PLACE- GETTING THE PRODUCT TO A POINT AT WHICH CONSUMER CAN
PURCHASE
• PRICE- MONETARY AMOUNT CHARGED FOR THE PRODUCT
DURING THE 1950’S THIS 4 PS IS CALLED THE MARKETING MIX.
TWO TYPES OF MARKETING
INBOUND MARKETING
• IS A MARKETING METHOD THAT REACH OUT TO THE AUDIENCE’S PERSPECTIVE

TO A CERTAIN PRODUCT THROUGH SOCIAL MEDIA
• YOU WILL BE THEIR REPRESENTATIVE TO ACT AS THE CUSTOMER TO TRY OUT
THE PRODUCT.
• FACEBOOK, YOUTUBE, TWITTER, INSTAGRAM
OUTBOUND MARKETING
• IS A MARKETING METHOD THAT FOCUS MORE ON ONE WAY COMMUNICATION

• THIS FOCUS MORE ON INITIATING THE CONVERSATION TO THE CUSTOMERS
• CATCH THE ATTENTION OF THE MARKET THROUGH SHARING OF THE VALUE OF A
CERTAIN PRODUCT
• MORE AGREESIVE COMPARED TO THE INBOUND MARKETING
ESSENCE OF MARKETING
• THE MAIN PURPOSE OF THE FOUR ACTIVITIES OF

MARKETING IS TO GIVE VALUE TO THE CUSTOMERS.
• VALUE IS WHAT THE CUSTOMERS RECEIVED WHEN THEY
BUY THE PRODUCT OF THE COMPANY.
FOUR ACTIVITIES OF MARKETING- (MODERN
WAY OF MARKETING)
• CREATING
• COMMUNICATING
• DELIVERING
• EXCHANGING
CREATING
• THIS MARKETING ACTIVITY IS PURELY FOCUS ON

DEVELOPMENT OF PRODUCT
• THIS ACTIVITY WILL INVOLVE THE COMPANY, SUPPLIERS,
AND CUSTOMER’S NEEDS AND WANTS
COMMUNICATING
• CREATE A SENSE OF RELATIONSHIP TOWARDS TO THE CONSUMER OR

CUSTOMERS.
• EDUCATING THE POTENTIAL CUSTOMERS ABOUT THE PRODUCTS THEY ARE
OFFERING.
• COMMUNICATING CAN BE IN THE FORMS OF TV ADS, FLYERS, BILLBOARDS, AND
THROUGH SOCIAL MEDIA SITES SUCH AS FACEBOOK, TWITTER, INSTAGRAM.
DELIVERING
• SIMPLY GIVING THE PRODUCT INTO THE HANDS OF THE CONSUMERS.

• MOST RESPONSIBLE FOR THE DELIVERING OF THE PRODUCT IS THE
LOGISTICS TEAM.
EXCHANGING
• IS A SITUATION IN WHICH TRANSACTION WILL BE INVOLVED.

• OCCURS WHEN YOU ARE FINISHED WITH THE PRODUCT
WHO DOES MARKETING?
PROFIT COMPANIES
• KINDS OF BUSINESS TO BUSINESS
A. PRODUCERS- THE ONE WHO CREATE PRODUCTS OUT OF THE GOODS AND
MATERIALS THAT THEY PURCHASE.
B. RESELLERS- THEY ARE THE COMPANIES THAT SELLS GOODS AND SERVICES
PRODUCED BY OTHER FIRMS WITHOUT MATERIALLY CHANGING THEM.
THIS INCLUDES :
WHOLESALE: BUYING A LARGE BUNDLE OF THE PRODUCT
RETAIL: BUYING MATERIALS FOR PERSONAL CONSUMPTION
BROKER: ARRANGED TRANSACTIONS OF BUYER AND SELLER FOR A
COMMISSION WHEN THE DEAL IS EXECUTED.
NON- PROFIT ORGANIZATION
• GOVERNMENT- THEY CONTRACT WITH THE DIFFERENT COMPANIES TO

PROVIDE ALL KINDS OF SERVICES TO THE CITIZEN OF THE COUNTRY
• HEALTH AND NON- GOVERNMENT INSTITUTION- THEY ARE GIVING OUT FLYERS
TO INFLUENCE OTHER PEOPLE ABOUT THEIR CONDITION
• INDIVIDUALS- GIVING OUT RESUME TO COMMUNICATE AND TO EMPHASIZE THE
VALUE THEY WILL GET TO YOU
WHY DO WE STUDY MARKETING?
• GOOD MARKETING EDUCATES THE CUSTOMERS TO FIND THE SUITABLE
PRODUCTS BASED ON THEIR OWN PREFERENCE CHOICE.
• HELPS THE CUSTOMER USE THE PRODUCT PROPERLY TO MAXIMIZE ITS VALUE.
• THIS FACILITATES RELATIONSHIP BETWEEN BUYERS AND SELLER TO HELP THEM
IMPROVE THE CREATION OF THE PRODUCT.
• IT GIVES VALUE TO THE FIRM AS IT DEVELOPS STRONG CUSTOMER BASE WHICH
HELPS THEM INCREASE ITS SALES AND PROFITABILITY
• CREATING MORE JOBS BECAUSE OF SUCCESSFUL COMPANIES DUE TO
SUCCESSFUL MARKETING OF BRAND AND PRODUCTS
• THIS WILL HELP THE CONSUMERS HAVE VARIETY OF CHOICES AND MAKE THEM
WISER AND SMARTER WHEN IT COMES TO DECISION MAKING
• MARKETING GIVES BIRTH TO NEW JOB PROFESSIONS THAT IS AVAILABLE TO
EVERYONE
HOW CAN WE CREATE THE
BEST MARKETING
STRATEGY?
SWOT ANALYSIS
INTERNAL FACTOR
• STRENGHTS
• WEAKNESESS
EXTERNAL FACTOR
• OPPORTUNITIES
• THREATS
STRENGTH AND WEAKNESSES
THIS ARE SOME OF THE AREAS THAT ARE CONSIDERED AS INTERNAL FACTOR OF THE
COMPANY THEY HAVE STRENGTH AND WEAKNESS, AND THIS WILL HELP YOU SEE HOW TO
IMPROVE THE COMPANY
• THE UNIQUENESS OF YOUR PRODUCT AND THE GOOD REPUTATION OF IT.
• PRODUCT OFFERING
• DISTRIBUTION OF NETWORKS
• CUSTOMER SERVICES
• HOW YOU UTILIZE YOUR PERSONNEL
• IS THE LOCATION ACCESSIBLE TO THE SUPPLIER OR CONSUMERS
• DOES THE COMPANY HAVE SUFFICIENT FINANCIAL RESOURCES TO IMPROVE ITS PRODUCT
AND MARKETING STRATEGY?
OPPORTUNITIES AND THREATS
THIS ARE THE FACTORS THAT AFFECT THE COMPANY OUTSIDE THAT MIGHT BE
CONSIDERED AS A THREAT OR OPPORTUNITY
• COMPETITORS/ RIVALRY
• PRICE OF RAW MATERIALS
• CUSTOMER SHOPPING TRENDS
• UPGRADING OF TECHNOLOGY
MARKET ENTRY STRATEGIES
MARKET PENETRATION
• FOCUSING ON INCREASING FIRM’S SALES ON ITS EXISTING PRODUCTS TO ITS

EXISTING CUSTOMERS
• UPGRADING THE SAID PRODUCT
• OFFER PROMOTIONS, DISCOUNTS, AND BUNDLE PACKS TO ENCOURAGE THE
CUSTOMERS TO TRY THE SAID PRODUCTS
• THIS TYPE OF STRATEGY WILL ONLY BE USED IF YOU CAN COMPETE WITH OTHER
COMPANY SERVING THE SAME PRODUCT
HOW TO HAVE A SUCCESSFUL MARKET
PENETRATION
1. CHANGE YOUR PRICING
-LOWER OR RAISING THE PRICE OF THE PRODUCT DEPENDING ON THE RAW
MATERIALS USED AND WHAT VALUE DOES THE PRODUCT GIVE TO THE CONSUMERS
2. REVAMP THE MARKETING
-REWORK THE MARKETING PLAN DEPENDING ON THE TARGET CONSUMERS AND
THEIR NEEDS AND SATISFACTION
3. SURVEY AND ANALYZE THE CUSTOMERS AND WHAT PRODUCT DO THEY NEED
4. UPGRADE YOUR PRODUCT
5. OFFER FRANCHISE TO THE INVESTORS
6. HAVE A BUSINESS PARTNERSHIP TO OTHER SMALL BUSINESS BRANDS
MARKET DEVELOPMENT
• IS A STRATEGY THAT FOCUS ON ENTERING THE NEW MARKET WITH THE EXISTING PRODUCT
• NEW MARKET MEANS NEW GEORAPHICAL AREAS, CUSTOMER NEEDS, PREFERENCE AND STYLE
• YOU CAN USE THIS KIND OF STRATEGY IF YOU DO HAVE A STRONG BRANDING
HOW TO HAVE A SUCCESSFUL MARKET
DEVELOPMENT
1. INCREASE OR LOWER THE PRICE OF THE PRODUCT, BUT PROVIDE CAN PROVIDE
MORE VALUE PRODUCTS THAN THE COMPETITORS
2. DEVELOP NEW MEANS OF CHANNELS TO REACH NEW MARKET SUCH AS
ONLINE MARKET, COMPANY SHOPPING WEBSITE
3. DEVELOPING NEW AND BETTER FEATURES TO THE EXISTING PRODUCT THAT
COULD TAPPED THE CONSUMERS WANTS AND NEEDS
4. CREATE NEW BRAND MARKETS THAT COULD CATCH THE ATTENTION OF THE
NEW MARKET
PRODUCT DEVELOPMENT
• CREATING NEW ALIGN PRODUCTS TO THE EXISTING CUSTOMERS

• YOU CAN USE THIS KIND OF STRATEGY TO START NEW TREND TO THE TARGET
CONSUMERS
HOW TO HAVE A SUCCESSFUL MARKET DEVELOPMENT
1. PRACTICE TEST MARKET ON THE NEWLY DESIGNED PRODUCT USING SURVEYS,
OR ANY FORMS OF FEEDBACK GIVEN BY THE CONSUMERS
2. GIVE OUT A GOOD SENSE OF PRODUCT VISION. THIS INVOLVES WHAT IS THE
VALUE OF THAT PRODUCT TO THE CONSUMERS, AND IS THE DESIGN OF THE
PRODUCT APPLICABLE TO THE EXISTING CUSTOMERS
3. CREATE A ROADMAP THAT WILL GIVES US AN IDEA WHAT IS THE GOAL, AND
SHOULD BE DEVELOPED FIRST
4. USE THE FEEDBACK FORMS GIVEN OUT BY THE CONSUMERS TO IMRPOVE THE
FINAL PRODUCT OF THE NEWLY DESIGN ONE.
DIVERSIFICATION
• IS ENTERING THE NEW MARKET WITH NEW PRODUCTS TO OFFER

• DOING OUTSIDE OF THE FIRM’S MAIN BUSINESS
• THIS IS THE MOST HIGHLY AT RISK AMONG OTHER STRATEGY BECAUSE THIS
NEEDS A HUGE AMOUNT OF MONEY TO WORK WITH.
• THIS CAN BE USED BY THE COMPANY TO HAVE AN ALTERNATIVE PROFITABLE
BUSINESS ONCE THE TREND OF THE CONSUMERS SUDDENLY CHANGE.
TYPES OF DIVERSIFICATION
• CONCENTRIC DIVERSIFICATION
• HORIZONTAL DIVERSIFICATION
• CONGLOMERATE DIVERSIFICATION
CONCENTRIC DIVERSIFICATION
• ALSO CALLED AS CONVERGENT DIVERSIFICATION

• A GROWTH STRATEGY IN WHICH THE COMPANY USE AND DEVELOPED BY
ADDING NEW PRODUCTS ALIGN WITH THE EXISTING PRODUCTS
• IN THIS WAY THEY CAN USE SOME OF THE RESOURCES OF THEIR PRODUCT
REDUCING THEIR COST OF MATERIALS
• THIS WILL HELP THE BY LEVERAGING THE BRAND AWARENESS AND THE
CUSTOMERS LOYALTY DUE TO IT’S SIMILAR TO THEIR PREVIOUS PRODUCT BUT
DIFFERS IN FEATURES
HORIZONTAL DIVERSIFICATION
• CONCERNS WITH NEW PRODUCT TO THE NEW MARKET SEGMENT

• THIS IS DESIGNED TO ATTRACT THE EXISITNG CUSTOMER BASE
• THIS KIND OF DIVERSIFICATION SOLELY RELY ON THE CUSTOMERS LOYALTY
BASED ON THEIR BRAND RECOGNITION
CONGLOMERATE DIVERSIFICATION
• GOING IN NEW KIND OF BUSINESS

• THIS DIVERSIFICATION WILL TRY TO GAIN THE CUSTOMER’S LOYALTY IN THE
NEW BUSINESS BEING OFFERED.

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PRINCIPLES OF MARKETING

BY: ARLAN LOPEZ

IS DEFINED BY THE AMERICAN MARKETING ASSOCIATION AS “THE ACTIVITY, SET

• PRODUCT- GOODS AND SERVICES

• IS A MARKETING METHOD THAT REACH OUT TO THE AUDIENCE’S PERSPECTIVE

• IS A MARKETING METHOD THAT FOCUS MORE ON ONE WAY COMMUNICATION

• THE MAIN PURPOSE OF THE FOUR ACTIVITIES OF

• THIS MARKETING ACTIVITY IS PURELY FOCUS ON

• CREATE A SENSE OF RELATIONSHIP TOWARDS TO THE CONSUMER OR

• SIMPLY GIVING THE PRODUCT INTO THE HANDS OF THE CONSUMERS.

• IS A SITUATION IN WHICH TRANSACTION WILL BE INVOLVED.

• GOVERNMENT- THEY CONTRACT WITH THE DIFFERENT COMPANIES TO

• FOCUSING ON INCREASING FIRM’S SALES ON ITS EXISTING PRODUCTS TO ITS

• CREATING NEW ALIGN PRODUCTS TO THE EXISTING CUSTOMERS

• IS ENTERING THE NEW MARKET WITH NEW PRODUCTS TO OFFER

• ALSO CALLED AS CONVERGENT DIVERSIFICATION

• CONCERNS WITH NEW PRODUCT TO THE NEW MARKET SEGMENT

• GOING IN NEW KIND OF BUSINESS

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