Business Marketing Principles, Goals, and Approaches PDF

**BUSINESS MARKETING** **MODULE 1 DEFINITION AND CONCEPT OF MARKETING PRINCIPLES, GOALS AND APPROACHES** Marketing is the creation and communication of value to customers. It involves the customer's maintenance of relationships that should last for lifetime. It is the link between society's materi...

**BUSINESS MARKETING** **MODULE 1 DEFINITION AND CONCEPT OF MARKETING PRINCIPLES, GOALS AND APPROACHES** Marketing is the creation and communication of value to customers. It involves the customer's maintenance of relationships that should last for lifetime. It is the link between society's material requirements for its needs and wants. Marketing must satisfy human needs and wants through the exchange process and the building of long-term relationships. Figure 1. Concept and Marketing Principles Over the years, marketing has evolved various definition and its meaning changes according to the views of the different marketing gurus. Many view marketing as process or dynamic business activity that is designed to plan and promote the delivery or satisfy needs and wants of the potential and present market. In the definition of marketing given by the American Marketing Association or AMA, "Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders." The definition views as an exchange process or discipline that involves strategies, activities, positions, and institutions. The definition of Marketing according to Dr. Philip Kotler, "A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others." It is also defined as the meeting of the minds between the seller and the buyer to satisfy human needs and wants with profit on the part of the marketer and the satisfaction of the buyer for the money he spent. On the bases of this view, marketing is an organization intervention and functions that set the process of creating, communicating and delivering value to customers. From the academic point of view, marketing is the art and science of creating tangible products or services and finding the market, getting and retaining them to attain profitable operations. On one hand, it is a societal process that marketers must communicate the sustainable value of the product or service to its target market. It is a critical business process for attracting customers to satisfy their needs and wants. Marketing is also an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Simply put: Marketing is the delivery of customer satisfaction at a profit. **Goal:** Attract new customer by promising superior value and keep and grow current customers by delivering satisfaction.  The company and its market are equally important. It is marketing that gives fulfilment to both components. Marketing people should balance between the company's requirements for profit and desired market share. This is composed of two other interacting components: the customer and competition. The overriding objective of the company is not just to satisfy the needs and want of its customer. It must profitable and better than its competitor. Otherwise, the competitor could win the customers because it is able to satisfy them. **CUSTOMER NEEDS AND WANTS** **Figure 2. Concept of Marketing** Need is one important component in the marketing of products. It is the consumer's desire for a product or service. The product or service must have specific benefits that satisfy the functional or emotional needs. On the other hand, basic needs are food, clothing, and shelter. We cannot live without them and marketers must be able to provide them to human population. Food can be processed in different tastes; styles and menus that shall meet the human craving and satisfaction. Clothing could be designed into different styles depending on people's taste and social values. Shelters are constructed differently depending on the capacity of the buyer to finance his home. These needs are the marketer's point of interest for profit. Wants are higher-level human needs as they appeal more to the emotions. These are the social needs for recognition and the development of higher social satisfaction is limitless. The development of technology and different electronic gadgets are more of human wants. The marketers must continuously improve technological inventions to sustain customer wants. Concepts of Marketing According to Garovillas (2004), he stated that the marketing concept is a business philosophy, which holds that the key to achieving organizational goals consists of determining the needs and wants of target markets and delivering the satisfaction more effectively and efficiently than competitors do. The philosophy of doing business is developed as people realized that marketing is vital to the success of any marketing organization. The marketing concept emphasizes customer orientation and coordination of marketing activities to achieve the marketing goals and objectives. The philosophy that "The customer is the boss", rings over the minds of the marketing people that customer satisfaction which is of paramount consideration. While it is important to satisfy customer wants and needs, this could only be achieved under the following marketing concepts: 1\. **Marketing must be Customer Oriented.** The planning and operation must be directed towards customer orientation. The whole marketing organization and its operating staff must be focused on determining what will satisfy the needs and wants of the target customers, the important link in the business operation. 2\. **Marketing must be Coordinated Activities** Coordination activities must start in the product planning process, the process. The product is the key element that the customer wants to buy that is worth his money. Price is another important component as customers would like to get his money's worth. The place of distribution must be within his reach and the promotional activities must be appealing for him to decide which product to purchase. 3**. Marketing must be able to achieve the Performance Target Goals and Objectives**. Customer-oriented and coordinated marketing aims to achieve its profit, objectives and goals. These goals and objectives hinge on the increase in sales volume and customer's patronage. When product planning, price, promotion and distribution and properly coordinated, it will result in the most effective way of satisfying the customer's needs and wants. The sales volume and profit objective will be realized. **Factors for Developing Marketing Concepts** 1. **Capturing Marketing Insights** The overall direction must focus on its vison and mission. The organizational goals and objectives must be directed towards the creation of value to its customers. These must be the inherent philosophy of the marketing organization. The functional areas in the marketing organization must be focused towards its ultimate set of tasks in the building of long-lasting relationship with its target market. 2\. **Effective Financial Management System** This system in the procurement of quality and affordable materials for processing of the product is a vital component in effective operation of the marketing system. The competition in the market is based on affordable quality products where labor and materials interplay in their production. Financing the marketing program will develop effective sales program that will bring in sustainable profitability. 3. **The Value of Human Resources** All business activities need human resources in their operation. The employees must be committed in the production of quality products and the delivery of quality service. They must develop work ethics and strong commitment to the marketing efforts of the organization. Sustainable development and progress rest with people who are willing to put all efforts towards the organizational objective of quality products and service. 4. **The Production Process** The process must conform to standards in terms of product quality. The race to economic profitability is the production of products that shall satisfy the customer's wants and needs. The role of marketing is to sell more products, but it must conform to customer demand. Production may produce so many products, yet they are useless inventory when they fail to reach their target market. Marketing efforts will turn them into profitable inventory. 5. **The Presence of Competitors** The marketing of products becomes interesting with the presence of competitors. Marketing outfit must develop strategies in capturing their target market and develop and sustained patronage. These marketing strategies must develop customer loyalty to the brand or the product. Product improvement and pricing strategies with sustained promotional and advertising program are important components in the competitive market. Traditional concept marketing is a marketing strategy a company uses to determine if it can produce a viable product consumer 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\. **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. 3\. **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. 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. **The Goals of Marketing and their Social Effects** 1. **Maximize the Consumption of Goods** - The Aggressive marketing strategies and policies had increased the consumption of goods and services. The demand of the market is tremendous. Sellers face many challenges on what products to offer. Buyers want quality products at reasonable price and t the most convenient location. The marketing job is to stimulate greater product consumption. Greater production requires consumption of material inputs and more goods in the market that create more employment. More jobs are created, and more people enjoy economic wealth. Maximum consumptions generate economic development for the nation. 2. **Maximize Consumer Satisfaction** - The market demand is varied, and customer satisfaction is the challenge of the marketing organization. Measurement of customer satisfaction is difficult. It embraces careful analysis of the market demand which varies with the time and the social development of society. The customer may be satisfied with the product the marketing people produce but it may create pollution to the environment. Plastics are good packaging materials for consumer goods but they create flood and environmental pollution. Cars and other vehicles using gas serve the convenience of the riding public, but they create global warming that result to environmental imbalance. 3. **Maximize Choice of Goods or Service** - Some marketers believe that the goal of marketing is to maximize the variety of the product in the market and provide consumers a wide assortment of choices. The main objective is for customers to find the goods that will satisfy their biological needs as well as their emotional and social wants. Development of new products needs research but that will mean time and costs. Maximizing consumer choice entails cost as the economies of scale do not operate in production of goods. The consumers must spend time studying the benefits of the production of goods. 4\. **Maximize the Quality of Life** - The improvement of the quality of life is the target of marketing people. New hand phones are created to communicate with various sectors of society, friends and families. Easy communications access satisfies not only social needs but also business requirements. Compu0terss and others electronic gadgets bring pleasures to homes and enjoyment of the comfort of living. The quality of life is difficult to measure. Life satisfaction is more than the physical comfort. The impact of electronic radiation has created health problems among the many users of modern gadgets. People in the previous generations lived longer because they lived a simple life. They ate unadulterated food and lived free from pollution and radiation. **Goals of Marketing** 1\. Focusing on customer wants and needs to distinguish products from competition 2\. Integrating all the organization's activities to satisfy customer wants and needs 3\. Achieving the organization's long-term goals by satisfying customer wants and needs.  **KEY PERFORMANCE INDICATORS** Key performance indicators (KPIs) 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. **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 What is Traditional Marketing? Traditional marketing is an umbrella term that covers the wide array of advertising channels we see daily. These may include print media, billboard and TV advertising, flyer and poster campaigns and radio broadcast advertising. These traditional marketing messages are not necessarily outdated; however, research has shown those companies that have abandoned simply using these channels, and adopted contemporary marketing channels proposed in this article, have remained prosperous and in fact seen an increase in leads, a higher quality of leads, sales and traffic to web content. Ansoff\'s Matrix Theory Traditional marketing theories include Ansoff\'s Matrix, a theory that proposes products/services fall into one of four categories depending on the market and the product released. New Product- New Market is considered as diversification. This theory recommends that businesses should try to diversify their product portfolio to spread risk amongst their product range. An example of this would be when Apple created the first iPhone released in 2007. This product was new and introduced into a new market. Apple soon reaped the benefits of introducing this hugely popular phone. Their product range grew from accommodating for designers on the Apple Mac, to mobile devices, tablet devices, watches and beyond. **The Marketing Mix** Another marketing theory that\'s considered to be traditional is the marketing mix. made up of the 7 P\'s. These include product, place, promotion, price, packaging and positioning. All these components, when combined, create a solid marketing proposal. However, this theory as well as Ansoff\'s, can be drastically improved with the use of contemporary marketing strategies. **Traditional Marketing seeks to pull customers to a product, whatever the cost.** It is, for this reason, considered to be outdated as it does not consider the customer they are selling to, more the market that the company operates within. There are however channels that have developed from traditional marketing, including digital, that aim for the same goal, however, use more subtle and approachable mediums so as to capture their target audience. This may include Pay-Per-Click campaigns, social media posts, search engine optimization and email marketing. **DEFINITION OF CONTEMPORARY MARKETING** Simply defined, contemporary marketing refers to marketing strategies that are consumer focused. Contemporary marketing strategy offers products and services based on what the target market desires rather than what the company wants them to have, thereby, offering greater support for their customers and becoming able to take advantage of more advanced marketing funnels to track progress. DIFFERENCE BETWEEN CONTEMPORARY MARKETING ORIENTATION AND TRADITIONAL MARKETING ORIENTATION The main difference between the contemporary marketing orientation and traditional marketing orientation is that while the former is consumer-focused, the latter is company focused. Traditional marketing is concerned with pulling customers and does not really consider the customer\'s diverse needs. Rather it is concerned with the market or industry in which the company operates in. Contemporary marketing aims for customers satisfaction in order to build a relationship with them. Therefore, the types of marketing strategies under contemporary marketing are concerned with the needs of customers. Since it first emerged as a distinct business and management phenomenon, marketing has evolved significantly with new types of marketing to address changing trends in the market. This is probably because most successful businesses use a combination of different types of marketing whether they're contemporary or traditional marketing strategies to get great results. Business owners now see more reasons to get the best out of the functions of marketing by enhancing their target marketing plan example to deliver more developmental benefits. The diversity and improvement in marketing nowadays could sometimes prompt one to wonder what marketing is meant to look like. Our contemporary marketing world now features advanced marketing skills and improved marketing mix. Here are some of types of marketing: 1\. Business to Business - B2B Marketing 2\. Business to Consumer - B2C Marketing 3\. Brand Marketing 4\. Cloud Marketing 5\. Telemarketing 6\. Guerrilla Marketing 7\. Push Marketing 8. Influencer Marketing Emerging Types of Marketing and their Applications: Based on a 2017 report by Kleiner Perkins Caulfield and Byers, an internet trend investment firm, 3.4 billion people use the internet. Therefore, the internet has become an easy and quick way to research, reach and engage customers. 1\. **Search engine optimization** is majorly concerned with increasing a business' visibility and rankings on search engine result pages. It is a simple way of attracting organic traffic of potential customers to a website. SEO can be maximized with paid adverts (Google AdWords), strategic content marketing and social media networks. 2\. **Pay per Click advertising**: This is advertising presented on search engine result pages or web pages where the advertiser is only charged based on the number of times someone clicks on the ads to go to the advertiser\'s targeted website. 3\. **Email marketing** is a type of marketing based on the distribution of messages through emails. Email marketing provides direct contact with customers and allows businesses to create relationships with their customers. Updates, exciting news, and call to actions can be sent directly to customers 4\. **Referral marketing:** is a type of marketing where an individual or customer pleased with the results gotten from a product refers the product to another person. It\'s a very subtle form of marketing that can provide great results especially when the person referring is an Influencer in that industry. 5\. **Affiliate marketing**: is a prominent type of internet marketing where a third party promotes a product and earns commission, or a piece of the profit gotten from every sale made through that referral. 6\. **Video marketing:** Videos act as one of the most interactive types of online marketing and can prove to be a great way to raise awareness about a business or product. In fact, according to Mushroom networks, YouTube is the second biggest search engine. Therefore, video marketing can prove to be a great way to pass messages to target customers. 7\. **Inbound marketing** is a very powerful contemporary marketing strategy that focuses on different tactics to draw consumers in and convince them to buy goods. It is one the result-oriented types of marketing that uses content to drive results. A key subset of Inbound marketing is Content marketing which the Content Marketing Institute refers to as \"a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience **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 environmentally 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 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 it 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. Prepared by: KRYSTAL GAYLE C. PAGOD Subject Teacher, Business Marketing