Introduction to Marketing PDF

BMSH2302 INTRODUCTION TO MARKETING In today's modern era, marketing has become more influential in people's lives with captivating advertisements, engaging social media campaigns, enticing promotions, and convenient online shopping. It shapes consumers' purchasing de...

BMSH2302 INTRODUCTION TO MARKETING In today's modern era, marketing has become more influential in people's lives with captivating advertisements, engaging social media campaigns, enticing promotions, and convenient online shopping. It shapes consumers' purchasing decisions, raises product awareness, and provides valuable information. By implementing effective strategies like discounts and loyalty programs, businesses can gain insights into consumer needs, optimize product development, and boost sales. Marketing shapes daily lives and consumer behavior (Lazar, 2023). Marketing Philosophies and Principles What is Marketing? Over the years, marketing a product or service has evolved in various ways and strategies. Along with it, the definition and meaning of marketing change according to the views of different marketing experts based on their personal or professional experiences. According to Dr. Philip Kotler, an American marketing author and often called "The Father of Marketing,” Marketing is a social and managerial process whereby individuals and groups obtain what they have and wish through creating and exchanging products and value with others. According to the American Marketing Association (AMA), Marketing is an organizational function for creating, communicating, and delivering value to customers and managing customer relationships to benefit the organization and its stakeholders. According to the academic viewpoint of the Merriam-Webster dictionary, Marketing is the process or technique of promoting, selling, and distributing a product or service from producer to consumer. When considering the definitions, the fundamental essence of Marketing can be summarized as "the process of fulfilling customer needs with profitability." The main idea is to understand and meet people's and society's needs. It can be achieved by creating products that satisfy these needs, providing value to customers, and keeping them engaged (Kotler, 2018). Examples: Google recognized that people needed to access information on the Internet more effectively and efficiently. It created a powerful search engine that organized and prioritized queries. IKEA noticed that people wanted substantially lower-quality furnishings, so it created knockdown furniture. Apple realized that people were struggling with the inconvenience of using multiple devices like computers, mobile phones, telephones, and televisions for various purposes. As a solution, the company created the iPhone, a groundbreaking smartphone that effortlessly combines office productivity, entertainment, and personal use into one powerful device. What is Marketed? Marketers must be skilled at stimulating customer demand level, timing, and composition to meet the firm’s objectives (Kotler, 2019). Needs are the basic human requirements such as air, food, water, clothing, and shelter. Humans also have strong needs for recreation, education, and entertainment. 01 Handout 1 *Property of STI  [email protected] Page 1 of 8  BMSH2302 Wants. The basic human needs become wants when directed to specific objects that might satisfy the need. A Filipino consumer needs food but may prefer Jollibee fast-food meals. A person in South Korea needs food but may want spicy ramen. Our wants are shaped by society. Demands are wants for specific products backed by an ability to pay. All people need water to survive, but some may want clean, safe, and good-tasting water. Some would even want a vapor- distilled one like Smartwater. Marketers market 10 main categories: 1. Goods Items that satisfy human wants and provide utility. Examples: Canned goods, frozen food products, cars, refrigerators, televisions, machines, and other mainstays of a modern economy. 2. Services An act of assistance or work done for a client or customer. Examples: Work of airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, accountants, bankers, lawyers, engineers, doctors, software programmers, and management consultants. Many market offerings mix goods and services, such as a fast-food meal. 3. Events The experiential marketing of a brand, service, or product through memorable experiences or promotional events. Examples: trade shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics and the World Cup are promoted aggressively to companies and fans. Local events include craft fairs, bookstore readings, and farmer’s markets. 4. Experiences Intentional activities that engage customers and create a real-life experience that will be remembered. Examples: Disneyland represents experiential marketing when customers visit a fairy kingdom or a pirate ship. There is also a market for customized experiences, such as spending a week on eco-tourism in remote natural habitats in Asia or learning about wildlife at the Singapore Night Safari. 5. People To portray an ideal image to reach their target audience and ensure relevance in what they are known or famous for. Examples: Artists, musicians, CEOs, physicians, high-profile lawyers and financiers, and other professionals often get help from marketers. Some people have done a masterful job marketing themselves—think of Korean idols Blackpink and BTS. 6. Places To attract customers to visit a specific location to promote the business, make it stand out from rivals, attract customers, and generate brand awareness. Examples: “Malaysia—Truly Asia,” “Amazing Thailand,” “Hong Kong: Live It. Love It!” “Your Singapore,” Macau’s “A Heritage of Two Cultures,” Taiwan’s “The Heart of Asia,” and “It’s More Fun in The Philippines.” 01 Handout 1 *Property of STI  [email protected] Page 2 of 8  BMSH2302 7. Properties Properties are intangible ownership rights to real property (real estate) or financial property (stocks and bonds). They are bought and sold, and these exchanges require marketing. Examples: Real estate agents work for property owners or sellers, buying and selling residential or commercial real estate. Investment companies and banks market securities to both institutional and individual investors. 8. Organizations Companies spend money on corporate identity ads to build a strong, favorable, and unique image in the minds of their target public. Examples: Universities manage their school identity better and image via admission brochures and Twitter feeds. 9. Information These are facts provided or learned about a situation, person, event, etc. Examples: Information is essentially what books, schools, and universities produce, market, and distribute at a price to parents, students, and communities. Firms make business decisions using information supplied by organizations like Thomson Reuters. 10. Ideas A concept, principle, or mental suggestion is a possible course of action. Examples: Products and services are platforms for delivering some idea or benefit. Social marketers are busy promoting such ideas as “Say No to Drugs,” “Exercise Daily,” and “Eat Healthy Food.” In Asia, governments often engage in social marketing. In Thailand, there is a campaign against driving when sleepy. Marketing Philosophies (Bigley, 2023) A marketing philosophy is a core belief system directing an organization's marketing strategies. It includes a set of orientations shaping how the company views and interacts with customers and the marketplace. Each philosophy represents a different perspective on creating customer value and achieving organizational goals. Production Concept: Focuses on mass production and efficiency to lower production costs and make products affordable. Product Concept: Emphasizes product innovation and quality, believing consumers will favor products that offer the most quality and performance. Selling Concept: Aims to aggressively promote and sell products through persuasive advertising and sales techniques. Marketing Concept: Puts customer needs and wants at the center of the marketing strategy, with a focus on creating customer value and building long-term customer relationships. Societal Marketing Concept: Extends the marketing concept by considering customer satisfaction and societal well-being. It focuses on delivering products that meet customer needs while also benefiting society as a whole. Holistic Marketing Concept: Takes a broader view of marketing by considering not only customer satisfaction and societal well-being but also the company's financial performance and employee well-being. Relationship Marketing Concept: Emphasizes building and maintaining long-term customer relationships through personalized interactions and exceptional customer experiences. 01 Handout 1 *Property of STI  [email protected] Page 3 of 8  BMSH2302 Digital Marketing Concept: Involves leveraging digital technology and channels to reach and engage with customers effectively, often through online advertising, social media marketing, and targeted content. Experiential Marketing Concept: Focuses on creating memorable customer experiences through sensory, emotional, and interactive marketing activities. Green Marketing Concept: Involves promoting environmentally friendly products and practices to appeal to environmentally conscious consumers. Marketing Principles (Lazar, 2023) Marketing principles are basic concepts that guide businesses' marketing strategies and decisions. These principles help businesses identify their target audience, develop effective marketing strategies, create value for customers, and build long-term relationships with them. Customer Orientation: Focusing on customer needs and wants when making marketing decisions. Value Creation: Creating products or services that provide value to customers and meet their needs. Segmentation, Targeting, and Positioning: Dividing the market into distinct segments, selecting the most attractive segments, and developing a unique position in customers' minds. Integrated Marketing Communications: Coordinating and integrating marketing efforts to deliver a consistent and compelling message to the target customers. Relationship Marketing: Developing and maintaining strong customer relationships to improve loyalty and satisfaction. Ethical and Social Responsibility: Conducting marketing activities with integrity and social responsibility. Innovation: Always looking for new ideas and approaches to stay ahead in the fast-changing marketing field. Competitive Analysis: Analyze and monitor competitors to determine their strengths, weaknesses, and market opportunities. Metrics and Evaluation: Measuring and evaluating marketing effectiveness with the right metrics. Adaptation to the Environment: Adjusting marketing strategies and tactics to external changes to stay competitive. Components of Marketing According to an article published by The Economic Times (2023), a company's strategy for promoting its brand or product in the market is referred to as the marketing mix. A typical marketing mix includes price, product, promotion, and place. However, additional Ps like packaging, positioning, people, and process are becoming increasingly important in today's marketing mix. The marketing mix's various components interact with one another. They can make a company's business plan successful if done correctly. However, the business's recovery could take years if handled improperly (Lazar, 2023). The Marketing Mix (8 Ps of Marketing): 1. Product – It refers to the item the business offers to the customers, whether tangible (like physical goods) or intangible (like digital goods or services). 2. Price – It refers to the amount that customers are willing to pay for a product or service. 01 Handout 1 *Property of STI  [email protected] Page 4 of 8  BMSH2302 3. Place – The location of the product or service's purchase, sale, and experience. It varies from business to business because retail and direct online sales place products differently. 4. Promotion – It refers to the entire set of activities used to promote a product, brand, or service. The goal is to make people aware of the product, entice them to buy it, and get them to do so over other options. 5. People – It is all about the people involved in the launch or campaign, including the company's key executives, endorsers, and the marketing team. These people will be accountable for delivering marketing promises and must possess the skills to implement the marketing strategy. 6. Physical Evidence – It refers to anything that helps the target audience trust the business. It could be the item itself, its packaging, the setting in which it is sold (like a physical store), or how it is delivered (like by courier). It could be testimonials, reviews, or even digital products like e-books and online courses in the digital business. 7. Process – A set of steps that help businesses figure out customer problems, look at market opportunities, and make marketing materials that will get to the people they want to see. 8. Positioning – It refers to the capacity to alter how consumers perceive a brand or product in comparison to competitors. Establishing a brand's image or identity so that consumers perceive it in a certain way is the goal of market positioning. Goals and Importance of Marketing (Bigley, 2023) In an era of the digital revolution that causes significant changes in the business environment, Firms must continuously refine and reform their boardroom understanding of the importance of marketing practices to increase their chances of sustainability and success. Marketers must clearly understand the key roles of Marketing. Increase goods consumption to boost the economy. Marketing aims to encourage people to buy and use more products. It leads to increased production and consumption of materials and more goods available in the market. It creates more job opportunities and economic wealth for people. When there is high consumption, it promotes economic development for the entire nation. Guarantee the highest level of customer satisfaction while also acting responsibly towards society. Customer satisfaction is important to every business, but it can be a challenge to measure it accurately. Customers may feel happy with the products they receive, yet those products might negatively impact the environment. For instance, plastic serves as excellent packaging material for consumer goods but also contributes to flooding and environmental pollution. To fulfill its social obligations, a business must discover innovative methods to deliver customer satisfaction. Improve the variety of products and services offered to customers. The goal is to assist customers in finding products that satisfy their biological needs and emotional and social desires. It entails conducting research and investing time and resources into developing new products. However, providing customers with a diverse range of options can be expensive. Enhance the quality of life and make everyone's way of living easier. Marketing professionals aim to enhance the overall quality of life. For instance, they achieve this by developing new mobile devices that enable seamless communication with diverse sectors of society, friends, and family. This easy and accessible communication fulfills social needs and caters to business requirements. Additionally, introducing computers and other electronic gadgets into households brings joy and elevates the comfort level in everyday living. 01 Handout 1 *Property of STI  [email protected] Page 5 of 8  BMSH2302 Most Effective Traditional and Contemporary Approaches to Marketing What is Traditional Marketing? Traditional marketing is an effective promotional strategy that engages audiences through offline channels. Marketers use this approach to directly connect with consumers in physical settings, strategically placing their marketing materials where their target audience is most likely to notice, hear, or engage (Kutev, 2023). Below are the eight (8) most effective traditional marketing: 1. Handouts. A handout is a printed document that businesses use for advertising purposes, such as promoting their business, events, or sales. Handouts are essential tools that offer valuable insights into promotional events held by businesses. These indispensable materials, such as leaflets, brochures, and flyers, are strategically placed in public areas that community members frequently visit. 2. Billboards. Billboards are commonly found alongside highways or major roads, showcasing eye- catching advertisements and company graphics. They usually consist of images accompanied by concise yet impactful text, delivering a memorable message to drivers. By employing creative billboard advertisements, businesses can enhance brand recognition and make it easier for their target audience to remember them. 3. Direct mail marketing. Direct mail marketing is a powerful strategy that involves sending physical materials, like letters or postcards, directly to the homes of potential customers. It allows businesses to connect with individuals who have already expressed interest in the company or its products. 4. Print ads. Print ads can be strategically placed in newspapers, magazines, and other widely read publications that effectively reach the target market. Unlike other forms of advertising, print ads have a captivating visual appeal, utilizing eye-catching designs and graphics to capture attention instantly. Their advantage lies in their extended lifespan, as they can be kept or displayed for considerable periods, ensuring prolonged exposure for the brand. 5. Event marketing. Event marketing allows businesses to develop compelling advertising materials that can be displayed at major industry events such as seminars, conventions, and conferences. Setting up booths and displaying larger materials such as signs or banners attracts attendees and effectively educates them about the company and its product or service. 6. Broadcast marketing. Another way to gain either local or national recognition is by making commercials for radio and television. Radio and TV commercials are effective because they reach a large audience and engage viewers with audio and visual elements. The combination of sight, sound, and motion creates a memorable impact on viewers, increasing the likelihood of remembering and considering the advertised product or service. 7. Cold calling (Telemarketing). This marketing approach suits companies that sell their products or services through phone calls. By implementing a cold-calling strategy, businesses can engage with potential customers, effectively communicate the benefits of their products, and address any challenges that customers or their companies may encounter. 8. Product placement. Product placement is an incredibly effective advertising technique companies utilize to cleverly and purposefully exhibit their products or brands within television shows, movies, or other forms of media. Its purpose is to captivate consumers' attention by establishing a strong bond between the product and the entertainment content, ultimately increasing the likelihood of purchase. 01 Handout 1 *Property of STI  [email protected] Page 6 of 8  BMSH2302 What is Contemporary Marketing? Contemporary marketing promotes products or services using current and modern methods such as social media, content creation, and search engine optimization. Contemporary marketing aims to create personalized customer experiences, build strong relationships, and engage with them through various channels. It also involves analyzing data and using analytics to measure effectiveness, allowing real-time adjustments and optimization in today's marketing landscape (Williamson, 2020). Below are the eight (8) most effective contemporary marketing: 1. Social media marketing. Social media platforms such as Facebook, TikTok, Instagram, and Twitter provide a powerful means to advertise and engage with targeted audiences. With a wide reach and a virtually global user base, these platforms offer convenient avenues for selling products or services effectively. 2. Influencer marketing. Collaborating with popular individuals or online influencers is a common practice to promote products or services to their followers. It is a strategic way to leverage their influence and credibility to reach a wider audience and increase brand visibility. This approach can generate interest and drive sales by tapping into the influencer's loyal and engaged fan base. 3. Content marketing. The main goal is to create and distribute compelling content around captivating storylines and important values. This content aims to not only catch the interest of potential customers but also motivate them to take concrete actions, ultimately leading to an increase in customer engagement and benefiting the growth of the business. 4. Search engine optimization (SEO). SEO improves website visibility, increases organic traffic, and attracts potential customers. It helps businesses rank higher for relevant keywords, boosting online presence and brand awareness. SEO also improves the user experience of a website, making it more user-friendly and easier to navigate. 5. Mobile marketing. One effective way to reach and connect with customers is through mobile devices like smartphones or tablets. Different ways to achieve this include SMS marketing, mobile apps, and location-based advertising. These methods provide a personalized and interactive experience that can target specific demographics. Location-based marketing also offers real-time tracking and analytics tools to measure and analyze campaign effectiveness. 6. Experiential marketing. Experiential marketing is a strategy that aims to create immersive and memorable experiences for consumers. It focuses on engaging and connecting with consumers on a deeper level, creating positive associations with a brand, product, or service. Examples include live demonstrations, workshops, and behind-the-scenes tours of unique brand-related locations. 7. Guerrilla marketing. Unconventional marketing tactics are creative and surprising ways to attract attention and generate buzz. Examples include flash mobs, street art, viral videos, and interactive installations. The aim is to create a memorable experience for consumers, capturing their attention in a crowded market. 8. Interactive marketing. Fostering customer engagement can be achieved by incorporating interactive elements such as quizzes, surveys, or games, which enhance the overall customer experience and make it more personalized and memorable. 01 Handout 1 *Property of STI  [email protected] Page 7 of 8  BMSH2302 References Burrow, J. (2021). Foundations of Marketing (Philippine ed.). Abiva Publishing House, Inc. Bigley, B. (2023) The Recipe for Effective Marketing. Brooke Bigley Publication. Kotler, P., Keller, K. L, Ang S.W., Tan C.T., Leong S.W. (2018). Marketing Management 7th Edition: An Asian Perspective. Pearson Education Limited. Kotler, P., Keller, K.L., Brady M., Goodman, M., Hansen T. (2019). Marketing Management 4th European Edition. Pearson Education Limited. Kutev, J. (2023). What is Traditional Marketing? (Plus Types, Pros and Cons) https://www.indeed.com/career-advice/career- development/traditional-marketing Lazar, J. (2023) The Marketing Survival Guide. Niche Media Pty Ltd. The Economic Times (2023). What is 'Marketing Mix' https://economictimes.indiatimes.com/definition/marketing-mix Williamson, WIll (2020). Traditional vs. Contemporary Marketing Strategies. https://blog.jdrgroup.co.uk/digital-prosperity blog/traditional-vs- contemporary-marketing-strategies Kutev, J. (2023). What is Traditional Marketing? (Plus Types, Pros and Cons) https://www.indeed.com/career-advice/career- development/traditional-marketing 01 Handout 1 *Property of STI  [email protected] Page 8 of 8