PRINCIPLES OF

MARKETING
ABM-11
 Lesson 1
Marketing Explained and
Goals of Marketing
commercial, billboard,
ad, publication,
advertisement,
promotion
They are the principles upon which we
build product promotion strategies.
 These are agreed-upon marketing ideas
companies use for an effective
marketing strategy.
We can use the marketing principles for
the effective promotion of either goods or
services.
Marketing is the process of
getting people interested in
your company's product or
service.
Marketing is all about changing
behavior through
communications in order to
achieve objectives.
ikea
As marketing changes the behavior of the
buyers, getting the consumer’s to buy your
product is the most obvious manifestation of the
effectivity of marketing.

It is also about changing the

customer’s perceptions about a
specific product.
 Lesson 2
Marketing strategies
Marketing strategies should be based on

needs,
your target market’s

wants, and
demands.
Needs
“Needs” are the basic human requirements that
are needed to survive. These necessities include
shelter, clothes, food and water.
 Let’stake a look at some brands targeting different levels of needs.
1. Physiological Needs – Food companies (Nestle, Pepsi, Coca Cola)
2. Safety Needs – Insurance companies (ICICI Prudential, Tata AIG,
HDFC Life)
3. Social Needs – Social networking sites (Facebook, Twitter, Instagram)
4. Esteem Needs – Luxury brands (iPhone, Mercedes)
5. Self-actualization needs – Non-Profit organizations and NGOs
(UNICEF, Teach for India)
Wants
"Wants" are a step ahead of needs Wants aren’t
essential for humans to survive, but it’s associated
with needs. Simply put, A want is a product desired
by a customer that is not required for us to
survive. 
Demands
Demand is a principle of economics that
captures the consumer's desire to buy the
product or service. The demand is calculated as
the price the consumers are willing to pay for the
product or service.
Wants are directed by our surrounding towards
reaching certain needs. Therefore, human’s
wants can be varied depending on each
individual’s perception, environment, culture,
and society. 
 Lesson 3

MARKET RESEARCH
METHOD

set of techniques used to gather information and better understand a company's

target market.
Product 
The product is what you are going to market to
your target audience. Consider the following
when working on your product:
•What are you selling and why?
•What does your product or service do?
•How would you describe your product’s
demographics?
•How is your product different from your
competitors? 
Price
Price is the cost of a product or service. Costing is
important when marketing a service or product. Costing
determines whether it will bring consumers or not. It will
also determine if the business will be successful.

To make sure the price will be affordable for the target

audience, you should ask yourself the following questions:

How much is my target audience willing to pay?

What price range are my competitors using?
Where can I meet my target audience in the middle with
pricing?
Promotion
Promotion is about your advertising. Through promotion, you
get the word out about your business, products and service with
an effective campaign. There are many ways to promote your
business, such as through traditional media (e.g. word of mouth
or television commercials) or digital media (e.g. content
marketing or social media marketing).

The following questions you should ask while product

promotion are:

What marketing channels will attract your target audience?

What time would best suit your target audience?
PLACE
It is critical to know where you will sell your product and the
distribution channels. That’s because selecting the right place to
market is key to reaching your target audience. A strong location
can help you build a connection with your audience and
business.

While figuring out the right place to market your product or

service, you should ask yourself these questions:

Where does your target audience shop?

Which distribution channels will reach your target audience?
PACKAGING
Packaging refers to the way your product or service
appears from the outside.
With regard to the packaging of your company, your
product or service, you should think in terms of everything
that the customer sees from the first moment of contact
with your company all the way through the purchasing
process.
POSITION
The objective of market positioning is to
influence the perception of a brand in the
minds of a specific segment of consumers.
Market positioning also increases brand
awareness, communicates value, and
justifies pricing.
People
People refers to anyone who comes in contact
with your customer, even indirectly, so make
sure you're recruiting the best talent at all levels
—not just in customer service and sales force.
That means anyone involved in selling a product
or service, designing it, marketing, managing
teams, representing customers, recruiting and
training. 
What information should you put
on your business card?
•Logo.
•Company name.
•Tagline.
•Your name & title.
•Contact details.
•Your address -online or
physical.
•Social media handles.
•A QR code.
 What is the main purpose of a business card?

The business card represents your company's brand. Not

only does it convey important personal contact
information such as name, title, email, website, address
and phone number, but oftentimes it is also the first
exposure to the overall image of the business.
Lesson 4
What Is a Business Model?

The term business model refers to a company's plan

for making a profit. It identifies the products or
services the business plans to sell, its identified target
market, and any anticipated expenses. Business
models are important for both new and established
businesses. They help new, developing companies
attract investment, recruit talent, and motivate
management and staff.
Types of Business Models
There are as many types of business
models as there are types of business.
For instance, direct sales,
franchising, advertising-based, and
brick-and-mortar stores are all
examples of traditional business
models.
Retailer
One of the more common business models most people
interact with regularly is the retailer model. A retailer is
the last entity along a supply chain. They often buy
finished goods from manufacturers or distributors and
interface directly with customers.

Example: Supermarkets, Convenience Stores, On-line

shopping, Department Stores, etc.
Manufacturer
A manufacturer is responsible for sourcing raw
materials and producing finished products by leveraging
internal labor, machinery, and equipment. A
manufacturer may make custom goods or highly
replicated, mass produced products. A manufacturer can
also sell goods to distributors, retailers, or directly to
customers.

Example: Toyota Company

Fee-for-Service
Instead of selling products, fee-for-service business
models are centered around labor and providing
services. A fee-for-service business model may charge
by an hourly rate or a fixed cost for a specific
agreement. Fee-for-service companies are often
specialized, offering insight that may not be common
knowledge or may require specific training.

Example: schools, Hospitals, Clinic

Subscription
Subscription-based business models strive to attract clients
in the hopes of luring them into long-time, loyal patrons.
This is done by offering a product that requires ongoing
payment, usually in return for a fixed duration of benefit.
Though largely offered by digital companies for access to
software, subscription business models are also popular for
physical goods such as monthly reoccurring
agriculture/produce subscription box deliveries.

Example: Spotify
Freemium
Freemium business models attract customers by
introducing them to basic, limited-scope products.
Then, with the client using their service, the company
attempts to convert them to a more premium, advance
product that requires payment. Although a customer
may theoretically stay on freemium forever, a company
tries to show the benefit of what becoming an upgraded
member can hold.

Example: Canva, Spotify, Photo Apps

Freemium is a business model in which
companies offer users the most basic version
of a product for free, while encouraging them
to upgrade to a paid premium version that
comes with additional, advanced features.
Bundling
If a company is concerned about the cost of attracting a
single customer, it may attempt to bundle products to sell
multiple goods to a single client. Bundling capitalizes on
existing customers by attempting to sell them different
products. This can be incentivized by offering pricing
discounts for buying multiple products.

Example: PLDT
**bundle promo
Marketplace
Marketplaces are somewhat straight-forward: in
exchange for hosting a platform for business to be
conducted, the marketplace receives compensation.
Although transactions could occur without a
marketplace, this business models attempts to make
transacting easier, safer, and faster.

Example: eBay, Carousell, FB market place

Affiliate
Affiliate business models are based on marketing and the broad
reach of a specific entity or person's platform. Companies pay
an entity to promote a good, and that entity often receives
compensation in exchange for their promotion. That
compensation may be a fixed payment, a percentage of sales
derived from their promotion, or both.

Example: social media influencers, CFIS

af·fil·i·ate
verb
/əˈfilēˌāt/
officially attach or connect (a subsidiary group or a person) to an organization.
Razor Blade
Aptly named after the product that invented the model, this
business model aims to sell a durable product below cost to then
generate high-margin sales of a disposable component of that
product. Also referred to as the "razor and blade model", razor
blade companies may give away expensive blade handles with
the premise that consumers need to continually buy razor blades
in the long run.

Example: HP (printers and ink)

Reverse Razor Blade
Instead of relying on high-margin companion products,
a reverse razor blade business model tries to sell a high-
margin product upfront. Then, to use the product, low or
free companion products are provided. This model aims
to promote that upfront sale, as further use of the
product is not highly profitable.

Example: Apple (iPhones + applications)

Franchise
The franchise business model leverages existing business
plans to expand and reproduce a company at a different
location. Often food, hardware, or fitness companies,
franchisers work with incoming franchisees to finance the
business, promote the new location, and oversee operations.
In return, the franchisor receives a percentage of earnings
from the franchisee.

Example: Jollibee, Coffee Bean, Angel’s pizza

Pay-As-You-Go
Instead of charging a fixed fee, some companies may
implement a pay-as-you-go business model where the
amount charged depends on how much of the product
or service was used. The company may charge a fixed
fee for offering the service in addition to an amount
that changes each month based on what was
consumed.

Example: Utility companies

Brokerage
A brokerage business model connects buyers and sellers
without directly selling a good themselves. Brokerage
companies often receive a percentage of the amount paid
when a deal is finalized. Most common in real estate,
brokers are also prominent in construction/development or
freight.

Example: Real Estate, Stocks Security Firms,

 Lesson 5

Consumer Behavior: How People

Make Buying Decisions
What Is Consumer Behavior?

Consumer buying behavior refers to

the study of customers and how they
behave while deciding to buy a
product that satisfies their needs. It is
a study of the actions of the
consumers that drive them to buy and
use certain products.
It is the individual's
buying habits, including
social trends, frequency
patterns, and background
factors influencing their
decision to buy
something.
Understanding consumer
buying behavior is most
important for marketers as it
helps them to relate better to the
expectation of the consumers.
 A marketer has to understand
the factors that are changing so
that marketing efforts can be
aligned accordingly.
 Determinants
& Factors Influencing
Consumer Buying Behavior

https://bbamantra.com/determinants-factors-influencing-consum
er-behaviour
/
Retention of Consumers