Chapter 1: Marketing Principles and Strategies

Lesson II: Marketing and its Traditional Approaches

MARKETING - is the activity of institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.
- The American Marketing Association defined marketing as the “activity, set of institution, and
processes for creating, communicating, delivering, and exchanging offerings that have value of
customers, clients, partners, and society at large.”
- The Philippine Marketing Association defined marketing as “a science and a profession guided
principally by the universal principles of ethics, corporate citizenship and corporate social
responsibility”.

1. Needs – a human need is something that a person must have in order to live and survive.

Maslow’s Hierarchy of needs

2. Wants – A human want is something that a person desires to have.

3. Demands – are also human wants that are supported by buying power.
4. Exchange – Marketing occurs when the buyer and seller trade something of equal value. Both the buyer and the
seller have gained something that satisfied their unmet needs.
5. Market – The market is composed of people with both desire and ability to buy a product or service.

Scope of Marketing
1. Goods – Physical goods comprise the volume of most countries’ production and marketing effort.
2. Services – as economies progress, a growing of their activities are concentrated on the production of services.
3. Experiences – Through organizing a number of services and goods, one can generate, stage, and market
experiences.
4. Events – Marketers endorse time-based events.
5. Persons – celebrity marketing has turn into a main and popular business.
6. Places – Place marketers consist of economic development specialist, real state agents, commercial banks, local
business associations, and advertising and public relations agencies.
7. Properties - Properties are intangible rights of ownership of either real property.
8. Organizations – Organizations aggressively labor to create a strong, positive image in the mind of their publics.
9. Information – The production, packaging and distribution of information is one of society’s chief industries.
10. Ideals – Each market offering has a fundamental idea at its core.
Traditional Approaches to Marketing

Traditional concept marketing is a marketing strategy a company uses to determine if it can produce a viable product
consumers want or need, whether the company can produce enough products to fill the need, and the marketing
method by which the need can be filled.
Several Distinct Traditional Approaches
1. Production concept focuses on the internal potentials of the company and not based on the desires and needs
of the market.
2. Sales concept refers to the idea that people will buy more goods and services through personal selling and
advertising done aggressively to push them in the market.
3. Marketing concept a philosophy which states that organization must try hard to find out and satisfy the needs
and wants of consumers while at the same time accomplishing the organizational goals.
4. Relationship concept/marketing an approach that centers on maintaining and improving value added long-term
relationships with current customers, distributors, dealers and suppliers.
5. Societal Marketing Concept views that organizations must satisfy the needs of consumers in a manner that
gives for society’s benefit.

Lesson III. Contemporary Approaches to Marketing

Contemporary marketing approach – are centered on the customer, relationships, and the well-being of the society.
1. Not-for-Profit Organization Marketing
A not-for-profit organization is a type of organization that does not aim for earning profit for its owners.
The money earned by not-for-profit organization is allocated for pursuing the organization’s objectives.
Characteristics of a not-for-profit organization
1). Generate as much revenue as possible to support their causes
2). Compete with other organizations for donors’ pesos
3). Market to multiple publics
4). Often possess some degree of monopoly power in a given geographic area

Marketing Strategy to be used:

1). Person Marketing - Person marketing entails endeavors aimed at cultivating the attention, interest and
preferences of a target market toward a celebrity or authority figure.
2). Place Marketing – or place branding attempts to exert a pull customers to particular areas. Palce marketing
is used to attract tourist and showcase the beautiful spots in different cities, provinces, and regions. Palce
marketing is also used to promote sites that can be a nice choice for putting up a business.
3). Cause Marketing - is the recognition and marketing of a social issue, cause or idea to the target markets.
Cause marketing increases the awareness of issues such as literacy, physical fitness, child obesity, and
environmental protection, elimination of birth defects, child-abuse prevention and preventing drunk-driving.
2. Event Marketing - is the sport, culture and charity activities to selected target markets. it consists of different
sponsors from different companies to support such activities and also serves as public awareness.

Essential features of Event Marketing

1). Wide range of events – event marketing encompasses a wide range of event types:
 Mega events and local events
 Exhibition
 Trade Shows
 Publicity stunts
 Themes and created events
 Corporate entertainment
 Award ceremonies
2). Goal Oriented
 3). Effective promotion and communication - it is important to get the message to the target audience clearly.
4). Proper evaluation – it is necessary for the team to be able to evaluate the event/project to be more effective
and efficient the next time.
5). Feedback from clients
6). Location – this is the most important aspects as the location of the event should be accessible and should be
near important areas.
3. Green Marketing - Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Company are selling products and/or services by first promoting its benefit that is
environmental friendly or produced in an environmentally friendly way.

For green marketing to be effective, there are three things that needs to be done:
1. Being genuine
a. The company is actually doing what it claims to be doing in its green marketing campaign and
b. The rest of the business policies are consistent with whatever the firm is doing that’s environmentally
friendly.
2. Educating the customers isn’t just a matter of letting people know that the company is doing whatever its
doing to protect the environment, but also a matter of letting them know why it matters.
3. Giving customers an opportunity to participate means personalizing the benefits of the company’s
environmentally friendly actions, normally through letting the customer take part in positive environmental
action.

Lesson I Goals of Marketing

Goals are different from objectives Marketing goals are statements of what results the company wants to achieve with
its marketing efforts. Just like any other goal, marketing goals should be clear. Goals must be credible and realistic as
well.

GOALS – top-level broad goals Objective -Specific SMART

objective to give clear
to show how the business can
benefit from channels. So, direction and commercial
goals are the broad aims used targets. Objectives are the
to shape strategy. They SMART targets for marketing
which can be used to trac
describe how marketing will
MARKETING performance against target.
contribute to the business in
The SMART mnemonic helps
key areas of growing sales,
communicating with audience as a test or filter which the
firm can use to assess the
and saving money.
quality of measures.

S – Specific – the detail in the information sufficient to pinpoint problems or opportunities; the objective sufficiently
detailed to measure real-world problems and opportunities.
M – Measurable – a quantitative attribute to be applied to create a metric
A – Attainable – a quantitative attribute to be applied to create a metric
R – Relevant – the information be applied to the specific problem faced by the marketer.
T – Time Based – objectives be set for different time periods as targets to review against.
Key Performance Indicator (KPI) - are used to check that the marketing activities of a company are on track. KPIs are
specific metrics which are used to track performance to make sure the firm is on track to meet specific objectives. They
are sometimes known as performance drivers or critical success factors for this reason.

Developing Marketing Goals

Goals must be:
Attainable - Goals must be realistic so that important parties who will be reaching must see each goal as reasonable
Consistent – management should exert to set goals that are consistent with one another.
Comprehensive – the process of goal-setting must be comprehensive. Simply it means that each functional area must be
able to formulate its own goals that relate to the organization’s goals.
Intangible – planners often confuse goals with strategies, objectives and even tactics. A goal iss not an action the firm
can take, it is an outcome of the organization wishes to realize.
Examples of noteworthy marketing goals:
1. Identifying the target market
2. Increasing sales and profits
3. Increasing brand awareness
4. Increasing market share
5. Countering competitive strategies
6. Reputation
7. Increasing distribution channels

Goals of Marketing
1. Understand the market and its consumers, and satisfy their changing needs and wants
2. Introduce and innovate products and services that improve human condition and the quality of life
3. Design and implement effective customer-driven marketing strategies
4. Develop marketing programs that deliver superior value to customers
5. Build and maintain mutually beneficial and profitable customer relationships
6. Capture customer value to create profits.
7. Promote value transactions with full regard to society’s well-being.