Module 1:

Marketing Principles and Strategies

Lesson 1: Marketing and its Traditional Approaches

Marketing Definition

Two features of Marketing:

1. It is a philosophy, an attitude, a perspective and a management orientation that

emphasized customer satisfaction.
2. It is an organization function and a set of processes utilized to put into practice this
philosophy.

Marketing as the activity, set of institutions, and processes for creating, communicating,
delivering, end exchanging offerings that have value for customers, clients, partners, and
society at large.

Basic components underlying marketing, namely:

1. Needs- A human need is state of felt deprivation.

a. Basic, physical needs for food, clothing, warmth and safety.
b. Social need for belonging and affection.
c. Individual needs for knowledge ad self-expression.
2. Wants- A human want is form that a human need takes as shaped by culture, individual
personality and social and environmental forces.
3. Demands- this are human wants that are backed by buying power.
4. Exchange- Marketing happens when a buyer and a seller exchange something of value.
5. Market- this is composed of people with both desire and ability to buy a specific
product/service.

Marketing activities include assessment of wants and satisfaction of current and would-be
customers, design and management of product offerings, determination of prices and pricing
policies, development of distribution strategies and communication with current and possible
customers.

The Scope of Marketing

1. Goods- Physical goods/product

2. Services- include airlines, hotels, and maintenance, in addition to professionals like
accountants, lawyers, engineers, and doctors.
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-cities, states, regions and nations battle to magnetize tourists, factories, company
headquarters, and new residents. Ex: economic development specialists, real estate
agents, commercial banks, local business associations, and advertising and public
relations.
7. Properties- intangible rights of ownership of either real property (real estate) or financial
property (stocks and bonds)
8. 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. Ex: school and universities, publishers, encyclopedia
10. Ideas-

Traditional Approaches to Marketing

1. Production Concept- focuses on the internal potentials of the company and not based on
the desires and needs of the market. “A good product will sell itself”
2. Sales Concept- refers to the idea that people will buy more goods and service through
personal selling and advertising done aggressively to push them in the market. “Creative
selling and advertising will persuade consumers to buy.”
3. Marketing Concept- is a philosophy which states that organization must try hard to fight
out and satisfy the needs and wants of the consumers while at the same time
accomplishing the organizational goals. “Find a need and satisfy it.”
4. Relationship Concept- is an approach that centers on maintaining and improving value-
added long-term relationships with current customers, distributions, dealers and suppliers.
“Long term relationships with customers and other partners will lead to success.
5. Societal Marketing Concept- views that organizations must satisfy the needs of
consumers in a manner that gives for society’s benefit.

Quiz

1. State of felt deprivation

2. Human wants that are backed up by buying power
3. People with authority, time and money
4. Focuses on the internal potentials of the company
5. People will buy more goods and services through personal selling and advertising
6. Find out and satisfy the needs and wants of consumers
7. Maintaining and improving value-added long-term relationships
8. Human need takes as shaped by culture
9. Satisfy the needs of consumers in a manner that gives for society’s benefit
 10. The job of everyone in the organization

Lesson 2: Goals of Marketing

The Nature of Marketing Goals

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 are different from objectives. They should not be used interchangeably because it will
create confusion.

1. Marketing goals- top-level broad goals to show how the business can benefit from
channels. Goals are the broad aims to shape strategy.
2. Marketing objectives- Specific SMART objectives to clear directions and commercial
targets. Objectives are the SMART targets for marketing which can be used to track
performance against target. SMART is:
a. Specific- the detail information sufficient to pinpoint problems or opportunities; the
objectives sufficiently detailed to measure real world problems and opportunities.
b. Measurable- a quantitative attribute to be applied to create a metric
c. Actionable- the information be used to improve performance
d. Relevant- the information be applied to the specific problem
e. Time-bound- objectives be set for different time periods as targets to review against
3. Marketing KPI’s- Key performance indicators are used to check that the marketing
activities of a company are on track. These are specific metrics which are used to track
performance to make sure the firm is on track to meet specific objectives.

Developing Marketing Goals

Marketing goals should be:

1. Attainability- goals must be realistic so that important parties who will be reaching must
see each goal as reasonable. Assessment of the internal and external environment is
essential in order to determine if a goal is realistic.
2. Consistency- besides being realistic, management should exert to set goals that are
consistent with one another.
3. Comprehensiveness- It means that each functional area must be able to formulate its own
goals that relate to the organization’s goals.
4. Intangibility- Planners often confuse goals with strategies, objectives, and even tactics. A
goal is not an action the firm can take. It is an outcome the organization wishes to realize.
Ex: Goals: Hiring 200 new salespeople or making double the advertising budget. Good
 Goals: Having the best trained sales force and the most creative and effective advertising
campaign

Goals of Marketing

1. Identifying target market- Target market is the segment of the market most likely to
purchase the firm’s products or services. The marketing goal can be to use market
research to pinpoint specific demographic characteristics, such as age, gender, income
and educational level that help identify the ideal customers.
2. Increasing sales and profits- one of the major goals of company. The first step in
increasing sales and profits is to set a target and time frame for increasing them.
3. Increasing brand awareness- consumer products companies often run far-reaching
advertising campaigns to build brand awareness or consumer’s awareness of the names of
their products.
Two types of brand awareness:
a. Aided awareness means consumer recognize a brand name when someone mentions
it.
b. Unaided awareness is when consumers think of a particular brand when they need a
product.
4. Increasing market share- Market share: percentage of unit and peso sales a company
handles in their industry.
5. Countering competitive strategies- monitor competitors on a continuous basis. Encourage
sales representatives to report any new competitive activity in the market. Keep abreast of
news in the industry so the company has time to create its own counter-strategies.
6. Reputation- a company’s main reputational goals should be fourfold which are to be:
a. The supplier of choice to customers
b. The employer of choice to employees
c. The partner of choice to distributors
d. The company of choice to investors
7. Increasing distribution channels- Distributions are the methods used to get the company’s
products into hands of consumers, such as selling them through retail outlets or making
them available online.

Lesson III Contemporary Approaches to Marketing

1. Not-for-Profit Organization Marketing- is a type of organization that does not earn profits
for its owners. All the money earned by or donated to a non-profit organization is used in
pursuing the organization’s objectives.

The following are the characteristics of a not-for-profit organization

a) Generate as much revenue as possible to support their causes
b) Compete with other organizations for donor’s pesos
c) Market to multiple publics
d) Often possess some degree of monopoly power in a given geographic area
2. Person Marketing- entails endeavors aimed at cultivating the attention, interest and
preferences of a target market toward a celebrity or authority figures.
3. Place Marketing- or place branding. Cities, provinces and regions here in the Philippines
make known their beautiful tourist spots to attract locales and foreigners and promote
their places as good sites and nice choice for businesses.
4. Cause Marketing- is the identification and marketing of a social issue, cause or idea to
selected target markets. It covers a broad sort of issues like literacy, physical fitness,
awareness of child obesity, environmental protection, etc. A common practice now is for
profit organizations to pair their products to social causes.
General Guidelines to consider before diving into a cause marketing campaign:
a. Understand marketing- Before a firm can do great cause marketing, it first has to
understand the essentials elements of marketing to its specific target audience.
b. Support reputable causes
c. Maintain transparency- If the firm wants consumers to join its cause, it has to make it
easy and transparent for them to do so. Consumers know exactly what they’re
contributing when they choose to purchase the product over the competition.
d. Think mainstream- Would the majority of the firm’s patron’s support the effort it is
supporting?
e. Stay consistent- If the company wants to be known as a company that gives
generously, them it will need to repeatedly give in a consistent manner.
5. Event Marketing- event is a live multimedia package and a gathering of target market by
providing a complete sensual experience and an avenue for two-way interaction.
 It is the marketing of sport, culture and charity activities to selected target market. It
consists of sponsorship by companies of different events related to these activities to
seek public awareness and reinforce their images by partnering their products to the
events.

Features of Event Marketing

a. Wide range of events

 Mega events and local events
 Exhibitions
 Trade shows
 Publicity stunts
 Themed and created events
 Corporate entertainment
 Award ceremonies
 b. Goal oriented
c. Effective promotion and communication
d. Proper evaluation
e. Feedbacks from clients
f. Location
6. Green Marketing- refers to the process of selling products and/or services on their
environmental benefits. It consist of all activities designed to generate and facilitate any
exchanges intended to satisfy human needs or wants, such that satisfaction of these needs
and wants occurs, with minimal detrimental impact on the natural environment.
Three things to remember for green marketing to be effective:
1. Be genuine- The company is actually doing what it claims to be doing in its green
marketing campaign and 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 the environment, but also a
matter of letting them know why t 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.

Chapter II Customer Relationship: Customer Service

Lesson I: Relationship Marketing

Relationship Marketing includes activities aimed at developing and managing trusting

and long-term relationships with larger customers.

Customer profile, buying patterns, and history of contacts are maintained in a sales
database and an account executive is assigned to one or more major customers to fulfil
their needs and maintain the relationship.

Relationship Marketing is a strategy designed to foster customer loyalty, interaction and

long-term engagement and it focuses more on long-term customer retention than
acquiring large numbers of new and potentially single-transaction customers.

Relationship Marketing vs Traditional Marketing

Main Characteristics of Relationship Marketing:

1. It focuses on the long term rather than the short term.

2. It focuses on partners and customers rather than on the company’s products.
3. It puts more emphasis on customer retention growth than on customer acquisition.
 4. It relies on cross-functional terms rather than on department –level work.
5. It relies more on listening and learning than on talking.
6. Relationship marketing calls for new practices within the 4Ps.
a. Product- more products are customized to the customer’s preferences and new
products are developed and designed cooperatively with suppliers and
distributors,
b. Price- the company will set a price based on the relationship with the customer
and the bundle of features and services ordered by a customer. In business
marketing, there is more negotiating because products are often designed for each
customer.
c. Place- favours more direct marketing to the customer, thus reducing the role of
middlemen and favors offering alternatives to customers to choose the way they
want to order, pay for, receive, install, and even repair the product.
d. Promotion- favors more individual communication and dialogue with customers,
more integrated marketing communications to deliver the same promise and
image to the customers, and sets up extranets with large customers to facilitate
information exchange, joint planning, ordering, and payments.

Benefits of Relationship Marketing

1. Understanding customer characteristics

2. Delivery and marketing expectations
3. Repeat business
4. Prevents negative transactions
5. Word-of-mouth marketing
6. Increasing customer base
7. Reduced marketing costs
8. Minimization of customer price sensitivity
9. Identification with the company
10. Product market expansion

Lesson II: Customer Value

Customer value is the relationship between benefits and the costs including money, stress, and
time to sacrifice that is necessary to get those benefits. Benefits- Cost= Customer Value

Four components of Customer Value:

1. Service- the intangible value offered to customers

2. Quality- customers’ perception of how well a company’s products and services meet
expectations.
3. Image- customers’ perception of the company or business they interact with
 4. Price- the price a company can command for its products and services and that its
customers are able and willing to pay.

Delivering Customer Value

There are three ways a company can establish customer value to its customer base:

1. Provide the consumer with the best cost

2. Provide the consumer with the best product
3. Provide the consumer with the best service

Importance of Customer Value

1. Designing and providing superior customer value are the keys to successful business
strategy in the 21sr century.
2. Value reigns supreme today’s marketplace and market-space.
3. Customers will not pay more than a product is worth and will reward excellence.
4. A customer-centric culture provides focus and direction for the organization, ensuring the
exceptional value will be offered to customers.
5. Designing and delivering superior customer value propels organizations to market
leadership positions in today’s highly competitive global markets- absolute advantage.
6. Providing outstanding customer value has become a mandate for management.
7. In choice0filled arenas, the balance power has shifted from companies to value-seeking
customers.
8. Managing customer value is even more critical to organizations in the new service and
information-based economy.
9. Firms not providing adequate value to customers will struggle or disappear-customer
value is a key integrated in building competitive advantage.
10. Today’s customers are quite smart and sophisticated and are looking for companies that:
a. Create maximum value for them based on their needs and wants, and
b. Demonstrate that they value their business

Creating More Customer Value

1. Understand what drives value for customers

2. Understand value proposition
3. Identify the customers and segments where the company can create more value
4. Create a win-win price
5. Focus investments on the most valuable customer

Lesson III: Customer Relationship Development Strategies

Customer Relationship is a marketing approach that focuses on creating an ongoing and long-
term relationship with customers. It is geared toward building and nurturing strong
consumer/customer connections and affiliations, rather than pushing sales or purchases.

Customers want to know that they are valued and appreciated as an individual.

Benefits of Developing Customer Relationship

1. Consistent customer experience

2. Customer feedback
3. Customer profitability
4. Customer advocates
5. Innovation

Strategies in Developing Customer Relationship

1. Make every customer interaction count

2. Follow-through on commitments and claims about products or services
3. Develop employees
4. Offer benefits and product value that responds to the customers’ desires
5. Treat customers as individuals who are respected and valued
6. Listen to customers
7. Build a strong brand identity
8. Surround customers with valuable information by using emails, website content, social
media, and other methods of outreach but do not be invasive
9. The business must have a website
10. Reward loyal customers
11. Nothing strengthens a bond more than appreciation
12. Create a blog about the business where discussion is more casual and inviting

Lesson IV: Successful Customer Service Strategy in the Philippine Business Enterprise

Customer Service is the act of taking care of the customer’s needs by providing and delivering
professional, helpful, high quality service and assistance before, during, and after the customer’s
requirements are met.

A customer service strategy consists of the following elements:

1. A vision for customer service

2. Assessing customer needs
3. Hiring for service
4. Organizational goals for customer value
5. Customer service training
6. Employee accountability
7. Rewarding good service