PRINCIPLES OF
MARKETING
LE DO THIEN TRUC
EXECUTIVE MBA IN FINANCE
AND BANKING
SAIGON UNIVERSITY
CHAPTER 1: Overview of
Marketing
EVOLUTION OF MARKETING
PHILOSOPHIES
1. Production
Concept
2. Product
Concept
. Societal Marketin Key
Concept Marketing
Concepts
3. Selling
4. Marketing Concept
Concept
THE PRODUCTION
CONCEPT
The philosophy that consumers will favor products
that are available and highly afforable
and
that management should therefore focus on
improving production and distribution efficiency.
THE PRODUCTION
CONCEPT
consumers
available Highly
affordable
product
Improving
Improving
distribution
production
efficiency
organization
1908 – 1927
THE PRODUCTION
CONCEPT
It is useful in 2 types of situation:
1. The demand for a product > the supply
2. The demand for a product < the supply
But the product’s cost is too high
And improved productivity is needed to bring it down.
THE PRODUCT
CONCEPT
The idea that consumers will favour products that offer
the most quality, performance and features and that
the organisation should therefore devote its energy to
making continuous product improvements.
THE PRODUCT
CONCEPT
consumers
Most Performance
quality +
product features
Product
improvement
organization
1864 - 1968
THE SELLING CONCEPT
The idea that consumers will not buy enough
of the organization’s products unless the
organization undertakes a large-scale selling
and promotion effort.
Most firm practise the selling concept when
they have overcapacity. Their aim is to sell
what they make rather than make what the
market wants.
THE SELLING CONCEPT
The idea that consumers will not buy enough of the organization’s
products unless the organization undertakes a large-scale selling
and promotion effort.
Most firm practise the selling concept when they have
overcapacity. Their aim is to sell what they make rather than
make what the market wants.
It focuses on creating sales transaction in the short term rather than
on building long term and profitable relationships with
customers.
The selling concept is also practised in the non-profit area
THE MARKETING
CONCEPT
The marketing concept holds that achieving
organizational goals depends on determining the
needs and wants of target markets and delivering
the desired satisfactions more effectively and
efficiently than competitors do.
THE MARKETING
CONCEPT
customer
value
Company’s
profit
SOCIETAL MARKETING
CONCEPT
The idea that the organisation should
determine the needs, wants, and interests of
target markets and deliver the desired
satisfactions more effectively and efficiently
than competitors in a way that maintains or
improves the consumer’s and society well-
being.
SOCIETAL MARKETING
CONCEPT
consumers
Societal
MKT
concept
organization society
MARKETING
DEVELOPMENT
Marketing
4.0
Marketing
3.0 • Digital/
society
Marketing • value
2.0
• Customer’s
need
Marketing
1.0
• product
MARKETING
MIX
MARKETING DEVELOPMENT
PHILIP KOTLER’S DEFINITIONS OF
MARKETING
Marketing 4.0 is a marketing approach that combines
online and offline interaction between companies and
customers (2016)
In the digital economy, digital interaction alone is not sufficient. In fact, in
an increasingly online world, offline touch represents a strong
differentiation. Marketing 4.0 also blends style with substance. While it is
imperative for brands to be more flexible and adaptive due to rapid
technological trends, their authentic characters are more important than
ever. In an increasingly transparent world, authenticity is the most valuable
asset.
