PRN MKT Q3 W2

PRINCIPLES OF MARKETING
Different Approaches to Marketing

Tutor Mallows
Review Quarter 3 Week 1
What are the various ways of

classifying products?
SHOUT OUT!
CLASSIFICATION OF PRODUCTS
1. According to use
2. According to differentiation
3. According to durability
4. According to type
Quarter 3 Week 2
At the end of our tutorial, you are
expected to:
• Define and understand marketing

approaches.
If we will recall…
One of the goals of marketing is to

satisfy their changing needs and wants.
NEEDS, WANTS, and DEMANDS
• NEEDS – physiological necessities required
for human survival
• WANTS – psychological, a wish or desire to
possess something that will improve the
consumer’s life condition
• DEMANDS – consumer’s desire to purchase
products and willingness to pay a price for
a specific product
WANT
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.which.co.uk%2Fnews%2F2021%2F07%2Fshould-you-buy-an-air-conditioner-or-
Source: https://www.medicalnewstoday.com/articles/why-do-i-feel-hot-but-no-fever an-electric-fan-this-
summer%2F&psig=AOvVaw23OF6SpGYaex5dcAAYD8SX&ust=1645842387695000&source=images&cd=vfe&ved=0CA0Q3YkBahcKEwjwzqDM55n
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NEEDS, WANTS, and DEMANDS
• NEEDS – physiological necessities required
for human survival
• WANTS – psychological, a wish or desire to
possess something that will improve the
consumer’s life condition
• DEMANDS – consumer’s desire to purchase
products and willingness to pay a price for
a specific product
DEMAND
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.which.co.uk%2Fnews%2F2021%2F07%2Fshould-you-buy-an-air-conditioner-or-
an-electric-fan-this-
Source: https://www.dreamstime.com/photos-images/african-american-woman-air-conditioner.html
summer%2F&psig=AOvVaw23OF6SpGYaex5dcAAYD8SX&ust=1645842387695000&source=images&cd=vfe&ved=0CA0Q3YkBahcKEwjwzqDM55n
2AhUAAAAAHQAAAAAQAw
MARKET AND MARKET DEMAND
MARKET – group of customers who have
both the willingness and financial capability
to purchase a particular product
MARKET DEMAND– total demand for all
potential customers for a specific product
over a specific period in a specific market
area
MEASURING MARKET DEMAND
1. PRIMARY DEMAND – advertising intended
to drive interest to the general product
category, rather than a specific brand in
particular
2. SELECTIVE DEMAND – demand for a
specific brand of a product
- Company increases their brand identity
TYPES OF DEMAND
1. NEGATIVE DEMAND – product is disliked in
general; product may be beneficial but the
customer does not want it (e.g. unsought
goods such as insurance policy and fitness
gym membership)
2. UNWHOLESOME DEMAND – opposite of
negative demand; customer should not
desire the product but the customer wants
the product badly (liquor or cigarettes)
TYPES OF DEMAND
3. POTENTIAL DEMAND – there is no demand
yet for the product, but there exists a market
capable of buying the product
4. LATENT DEMAND – a demand which the
customer realizes later; while buying the
product, consumer might not desire some
features. But later on, he might think about
those features (desktop and mobile phones)
TYPES OF DEMAND
5. DECLINING DEMAND – demand for the
product is declining (e.g. CDs, Walkman)
6. IRREGULAR DEMAND – demand is
inconsistent (e.g. umbrellas and
swimsuits)
TYPES OF DEMAND
7. FULL DEMAND – demand is meeting the
supply potential of the company; markets
are happy with the products and they want
to buy the products from the same
company (e.g. food from the leading fast
food chains)
8. OVERFULL DEMAND – happens when
manufacturing firms’ capacity is limited but
the demand is more than the supply (e.g.
Covid-19 vaccines)
UTILITY, VALUE and SATISFACTION
UTILITY - it refers to the total satisfaction
consumers can receive from the
consumption of a product
VALUE – value customers place on a product

- since consumers have different needs
and buying capacities, consumers assign
varying values on the same product .
UTILITY, VALUE and SATISFACTION
SATISFACTION – is the measure of how well
customer expectations from a purchased
product have been met
CUSTOMER-PERCEIVED VALUE
- the way a consumer views a product
Customer’s Customer’s Customer’s

Expected - Perceived = Perceived
Benefit Cost Value
• the higher the value of customer’s perceived

value, the better
CUSTOMER VALUE PROPOSITION
• It is the total value that a company provides
a customer in exchange for payment
• It is used to convince customers that the
product they’re selling provides more value
than competitors’ products
COMPETITION
• the rivalry between companies selling
similar products and services with the goal
of achieving revenue, profit, and market
share growth.
MARKET SHARE
• Is the percent of total sales in an industry
generated by a particular company.
• Sales revenue is basis for determining market share
• Companies need to boost sales
Company A’s = Company’s A Annual Revenue x 100

Market Share Total Annual Revenue of
Company A’s Industry
MARKET LEADER
• The company with
the largest market
market share in the industry
share
TRADITIONAL APPROACHES
TO MARKETING
1. PRODUCTION CONCEPT
- Assumes that customers prefer and
patronize products that are inexpensive,
affordable, and widely available.
- Efforts are concentrated in expanding
distribution, improving production
efficiency
- Goal is to lower production cost, to lower
prices
TO MARKETING
2. PRODUCT CONCEPT
- 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.
TO MARKETING
3. SELLING CONCEPT
- Emphasizes aggressive selling and
promotional efforts.
- Assumes that customers are generally
timid and must be persuaded into buying.
- Goal is to sell what is manufactured
rather than manufacture what the
market wants.
CONTEMPORARY
APPROACHES TO MARKETING
1. MARKETING CONCEPT
- Considers the needs of both the customer
and the product offered
- Objective is to provide a solution to the
customer’s actual or perceived problem.
- Key is to be more effective in creation,
communication, and delivery of this
value to customers.
CONTEMPORARY
2. RELATIONSHIP MARKETING CONCEPT
- All marketing activities are towards
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.
CONTEMPORARY
3. SOCIETAL MARKETING CONCEPT
- Similar to relationship marketing, however,
beyond providing solutions to customers,
protects the customers’ well-being and
interests, as well as the environment and
society.
Test your knowledge!
Question #1
What refers to the consumer’s desire to
purchase products and willingness to pay
a price for a specific product?
A. want
B. demand
C. need
D.market
Answer to Question #1
It refers to the consumer’s desire to
purchase products and willingness to pay
a price for a specific product.
A. want
B. demand
C. need
D.market
Question #2
What refers to the percent of total sales in
an industry generated by a particular
company?
A. Market share
B. Market leaders
C. Market demand
D. Market analysis
What refers to the percent of total sales in
an industry generated by a particular
company?
A. Market share
B. Market leaders
C. Market demand
D. Market analysis
Question #3
What is the type of demand that occurs
when a product is disliked by all its target
customers in general?
A. Potential demand
B. Declining demand
C. Full demand
D. Negative demand
What is the type of demand that occurs
when a product is disliked by all its target
customers in general?
A. Potential demand
B. Declining demand
C. Full demand
D. Negative demand
Question #4
What is the type of demand wherein the
customer should not desire the product
but the customer wants the product so
badly?
A. Latent demand
B. Irregular demand
C. Overfull demand
D. Unwholesome demand
What is the type of demand wherein the
customer should not desire the product
but the customer wants the product so
badly?
A. Latent demand
B. Irregular demand
C. Overfull demand
D. Unwholesome demand
Question #5
All are traditional approaches to
marketing EXCEPT:
A. Production concept
B. Marketing concept
C. Product concept
D. Selling concept
All are traditional approaches to
marketing EXCEPT:
A. Production concept
B. Marketing concept
C. Product concept
D. Selling concept
REFERENCES
• Delayco, M.L. (c2016). Learning to Succeed in
Business with Marketing, 1st Edition. The Phoenix
Publishing House, Inc.
• Ilano, A. B. (c2016). Principles of Marketing. Rex
Bookstore, Inc.
• So, R. & Torres, O. (2016). Principles of
Marketing. Vibal Group, Inc.
Principles of
Marketing
Friday
11:30 AM – 12:00 NN
SDO-QUEZON CITY
TUTOR MALLOWS
TUTOR ROSE SDO-RIZAL
SDO-QUEZON CITY
MENTEE
MENTOR
MENTEE
Next Week’s Topic for:
PRINCIPLES OF MARKETING:
Relationship Marketing
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PRINCIPLES OF MARKETING

Different Approaches to Marketing

What are the various ways of

• Define and understand marketing

One of the goals of marketing is to

VALUE – value customers place on a product

Customer’s Customer’s Customer’s

• the higher the value of customer’s perceived

Company A’s = Company’s A Annual Revenue x 100

DepEd EdTech Unit DepEd Philippines

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