Module 1 - Marketing Principles and Strategies.docx

Module 001: Marketing Principles and Strategies =============================================== ''Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goal...

Module 001: Marketing Principles and Strategies =============================================== ''Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.'' The definition views marketing as an exchange process or discipline that involves strategies, activities, positions, and institutions. Marketing are activities of a company associated with buying and selling a product or service. It includes advertising, selling, and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements, and general media exposure. **Objectives:** 1\. Define and Understand Marketing 2\. Enumerate the Importance of Marketing 3\. Describe the Traditional Approaches to Marketing Marketing is a matter of common sense and more; the AMA definition ''Doing better than best is the essence of progress. And this holds for marketing as well.'' The heart of your business\'s success lies in its marketing. Most aspects of your business depend on successful marketing. The overall marketing umbrella covers advertising, public relations, promotions, and sales. Marketing is a process by which a product or service is introduced and promoted to potential customers. Without marketing, your business may offer the best products or services in your industry, but none of your potential customers would know about it. Without marketing, sales may crash and companies may have to close. **History of Marketing:** Marketing is a paradox, which is not known to many. It is the world's oldest profession, but at the same time the world's relatively newest discipline of learning. Many so-called marketing activities then were referred to as either trade commerce or distribution. The establishment of a market economy wrought marked changes in the social and economic structure. A new attitude toward business revolutionized the economy of the country and the term ''marketing'' identified that revolutionary element. Historical accounts of trade lead one to conclude that marketing has always existed. Was the original use of the term marketing merely an application of a new name to an old practice? One theory is that language is an invention of man, an adornment. The other explanation of the origin of language is that it is inseparable from reason. Accordingly, man's language has developed as his thoughts have developed. Marketing was first meant as ''that combination of factors which had to be taken into consideration prior to the undertaking of certain selling or promotional activities.'' The essence of marketing was the combination of factors is the reason for the absence of terms equivalent to marketing in other languages. Marketing must be regarded not merely as a business practice, but as a social institution. Marketing is essentially a means of meeting and satisfying certain needs of people. It is a highly developed and refined system of thought and practice characteristic of a period in the development of the market economy. A latent presumption in the practice of marketing has been that marketing gives to society more than society gives to it. The fact is that marketing is but one of several means of accomplishing a social objective. **Earlier Theories Relevant to Marketing Thought** The development of marketing thought began early in the twentieth century with the conception of marketing. Early students of marketing were actually educated as economists. Although they brought forth divergent theories, students of marketing evolved a body of thought that by its nature, scope, and application, set them apart from the usual economists. **Market** By 1900, it was found that demand consisted of more than simple purchasing power. It reflected desire, as well as the ability to purchase, and new experiences with advertising and salesmanship, were proving that desire could be increased and molded by factors other than the mere existence of supply. Another concept of the market concerns its capacity to adjust itself automatically to a harmonious equilibrium. It had long been held that competitive forces would normally, in the long run, dissipate tendencies of dis-equilibrium, but as competition diminished in some industries and trades, the assumptions found in traditional economic theory became increasingly invalid. A third idea was that cost was the principal determinant of price, at least in the long run. Concepts of the elasticity of demand were still another influence upon the thinking of early students of marketing. Marketing writers as a theoretical basis for selling, advertising, and the promotional work of marketing in general have long used Alfred Marshall's concept of elasticity of demand. **Value Theory** Value theory was another area of economic thought relevant to early studies of marketing. Economists leaned heavily upon input factors, determining their relative quantities and prices. Adam Smith held also, against most commonly held beliefs that distributive activities contributed to value, but only indirectly. They extended the market, thereby creating opportunities for increased production. Economists also distinguished in their value theories value-in-use and value-in-exchange. **Production** In the eighteenth century, productivity was held by the physiocrats to be the production of a surplus over costs. Concepts of production included: diminishing returns 3 marginal productivity opportunity costs and the representative firm. However, in 1900, there was no clear concept of the justification of marketing as a productive activity or as a contribution to economic production. On the contrary, the popular impression was that the middleman added cost instead of value. Adam Smith conceived man as the economic man'' bent upon a constant effort to better his condition. Thus there was a natural basis for competition, and according to natural motivations, they would affect perfect competition. Ricardo foresaw the uncertainties of an expanding economy. He viewed a growing disparity of interests in the rising factory system. Alfred Marshall perceived basic cooperation among all parties through the system of markets. His viewpoint, insofar as he emphasized the short run, tended to coincide with the interests of businessmen. **Consumer** Not until the latter part of the nineteenth century, with the writings of the Austrians did real consideration of the consumer make its way into economic theory. **Enlargement of the Market** The classical economist has assumed markets local wherein demanders and suppliers knew of each other's presence and this knowledge resulted in perfect competition. With the Industrial Revolution, new importance was attached to information, promotion, and the quest for satisfactory products. Extended markets gave the opportunity for production on a scale larger than had ever before been undertaken. The rapid transition from an agricultural economy to an industrial economy at the end of the century poured into the market such quantities of products as to warrant the conclusion that a buyers' market was replacing a sellers' market. It had long been a presumption of economic theorists that production was basic and that the value created by production constituted the extent of demand in the market, but the American market was anything but static. **Traditional Approaches of Marketing:** Traditional marketing is a rather broad category that incorporates many forms of advertising and marketing. It's the most recognizable type of marketing, encompassing the advertisements that we see and hear every day. Most traditional marketing strategies fall under one of four categories: print, broadcast, direct mail, and telephone. *(See also Cross-Media Marketing)* Print marketing is the oldest form of traditional marketing. Loosely defined as advertising in paper form, this strategy has been in use since ancient times, when Egyptians created sales messages and wall posters on papyrus. Today, print marketing usually refers to advertising space in newspapers, magazines, newsletters, and other printed materials intended for distribution. Broadcast marketing includes television and radio advertisements. Radio broadcasts have been around since the 1900s, and the first commercial broadcast---a radio program supported by on-air advertisements---aired on November 2, 1920. Television, the next step in entertainment technology, was quicker to adopt advertising, with less than ten years between its inception and the first television commercial in 1941. Direct mail marketing uses printed material like postcards, brochures, letters, catalogs, and fliers sent through postal mail to attract consumers. One of the earliest and most well-known examples of direct mail is the Sears Catalog, which was first mailed to consumers in 1888. *(See also Direct Mail Marketing)* Finally, telephone marketing, or telemarketing, is the practice of delivering sales messages over the phone to convince consumers to buy a product or service. This form of marketing has become somewhat controversial in the modern age, with many telemarketers using aggressive sales tactics. The U.S. federal government has passed strict laws governing the use of telemarketing to combat some of these techniques. *(See also Telemarketing)* **Traditional Marketing Strategies and the 4P\'s-or are there five?** Traditional marketing has always been defined by the 4P\'s-Product, Promotion, Price, and Place. Traditional marketing techniques typically focus on identifying the right audience segment, understanding their behavior, and providing the proper incentive to get them to buy a product or service, in addition, there is the location or channel consideration. In the past, marketers were limited to one-way broadcast media. The goal was to use the proper media mix to deliver as many impressions as possible, providing the right promotional incentive to get the consumer to buy the product or service. With the advent of Google, the increasing penetration of smartphones, and the proliferation of social media platforms-marketers now face a daunting array of possible options. It now has been suggested that marketers add a fifth ''P'' -- for People -- to the mix. **Advantages of Traditional Marketing** Identifying and understanding your target audience is still the key to marketing success. Many traditional marketing techniques remain appropriate. Audience segmentation is one example. Marketers can identify ways to provide a relevant and meaningful customer experience by creating segments for a number of components: audience composition buying behavior geography events **Traditional Marketing 2013** With defined audience segmentation and on-target offers, traditional marketing is still very effective when acquiring some customer segments. Traditional marketing strategies offer an effective way to deliver content to current and prospective customers, and can become a catalyst to drive your website along with other traffic marketing assets. This traditional marketing approach is often referred to as "push" marketing. Promotions and offers are still important pieces in the marketing mix, but in 2013, content was a new form of currency. Instead of relying solely on coupons and price discounts, marketers can offer valuable information that consumers will find relevant and engaging. Delivering the right message through the proper channel is more important than ever. Traditional marketing strategies still work as they expand to incorporate more options. **Strategic Marketing Solutions Can Help** Here is how Strategic Marketing Solutions can help with your traditional marketing strategies: - Identify your target audience. - Creating relevant content that will optimize the customer experience. - Select channels for delivery including Email and/or Direct Mail. - Develop a variety of marketing materials for the selected channels Test messages and then measure results. **Traditional Marketing Categories** [Print]: [ ] Includes advertisements in newspapers, newsletters, magazines, brochures, and other printed material for distribution [Broadcast]: Includes radio and television commercials, as well as specialized forms like on-screen movie theater advertising \* [Direct mail]: Includes fliers, postcards, brochures, letters, catalogs, and other material that is printed and mailed directly to consumers [Telemarketing]: Includes requested calling and cold calling of consumers over the phone How is a traditional Marketing Plan Developed & Employed? The strategies for developing a traditional marketing plan vary widely, according to the form of advertising used and the type of business. In some companies, particularly small businesses, the entire staff will contribute to planning and execution. Larger companies often have marketing departments dedicated to creating advertising campaigns that use traditional marketing. The first step in developing a plan is to choose print, broadcasting, direct mail, or telemarketing. This choice depends on the budget and the marketing message conveyed. For example, a store that is announcing a sale will use more immediate impact strategies like broadcasting or print, while a business launching a general awareness campaign might choose direct mail, which stays in consumers\' hands for a longer period of time. For print and broadcast marketing, the business must arrange to purchase advertising space. The timing of this step depends on the lead-time, or how far in advance the advertising space must be purchased. Some print media, such as wide-circulation magazines, have lead times of several weeks. For example, an advertisement in Sports Illustrated magazine must be reserved at least five weeks in advance and longer for premium placement. Other markets have shorter times, with some newspapers allowing next-day ad placement. The development of marketing materials also varies depending on the form. Direct mail and print campaigns require graphic design and copywriting. For telemarketing, the advertisers write a script for the sales representatives (or outsourced telemarketing company) to follow. Radio ads may be either produced and pre-recorded, or scripted and read by on-air personalities. Finally, television commercials can either be written by the marketing department and produced in-house, or contracted out to production companies. **Interesting Traditional Marketing Stats** Television is still the most effective form of advertising, with the highest ad revenue in the United States at \$78.5 billion in 2011 In the UK, 57% of people consider television advertising the most impactful. The second highest is newspaper advertising, at just 15 percent. Radio advertising generated more than \$17 billion in ad revenue during 2011. This form of advertising is also the least ignored, with nearly 70% of listeners keeping the station tuned in during commercials compared to the second highest television, at just 20 percent. Print advertising generates nearly \$30 billion in ad revenue every year. While revenue for print media has slightly declined as online revenue rises, this form of marketing is still effective for many businesses. **Careers in Marketing** A **brand manager** is responsible for planning, developing, and directing the marketing efforts for a particular product or brand. This may be an entire company, or a line of products within a large company. Brand managers coordinate the activities of a team of marketers involved in several facets of operation, including research and development, production, sales and advertising, purchasing, distribution, packaging development, and financing. These professionals decide on marketing strategies, conceptualize and oversee marketing campaigns, and control the brand\'s public image through advertising. A typical brand manager will hold a four-year bachelor\'s degree in marketing or advertising. In addition, most large companies require at least four years of experience in lower marketing positions, such as sales representatives. **What They Do** The job of an advertising sales director is to manage the entire advertising strategy of a company from all directions, including business, sales, and technical perspectives. Typically, in charge of a team of sales representatives, these high-ranking managers oversee the development of sales materials, campaign implementation, and advertising budgets and projections. Education and Experience An advertising sales director must hold a four-year bachelor\'s degree in marketing, sales, or advertising, and typically needs a minimum of 10 years\' experience in sales and marketing. Most businesses hire advertising sales directors who have proven records of accomplishment in marketing success. **What They Do** A media director typically works at an advertising agency that develops and implements marketing strategies for other companies. The job of the media director is to manage the purchase of print space and broadcast time for clients. These professionals work with clients to choose the most effective avenues for traditional marketing, usually through market research and statistical models. They are also responsible for working with media sales representatives to place the advertisements. **Education and Experience** A four-year bachelor\'s degree in sales, marketing, or advertising is required to become a media director. As with most management-level marketing professionals, a media director also needs at least 5 years of field experience, with a proven record of results. Traditional marketing is a diverse field, involving many different strategies and methods. Earning a degree through a marketing program provides the knowledge and skills required to effectively use traditional marketing techniques \-- from print to broadcast. Coursework in marketing programs is designed with traditional marketing strategies in mind. Many schools offer degree programs geared specifically toward print or broadcast marketing, such as Broadcasting Media and Graphic Design. This includes subjects like communication, which helps professionals understand the most effective ways to design and deliver traditional marketing campaigns. Marketing programs will also have courses on consumer psychology, which teaches a strong understanding of buying habits and motivations*. (See also Consumer Psychology)* **Marketing Goals and Objectives** \* Increase sales \* Build brand awareness \* Grow market share \* Launch new products or services \* Target new customers \* Enter new markets internationally or locally \* Improve stakeholder relations \* Enhance customer relationships \* Improve internal communications Increase profit **Developing SMART Marketing Objectives:** Essentially your marketing objectives need to fit in with the overall business objectives and drive the direction of your marketing strategy. To be effective, any objective should be SMART. **A SMART objective is always:** \* Specific \* Measurable \* Achievable \* Realistic \* Time-bound The purpose therefore of setting SMART objectives is to clarify where you want to be, providing a measurable objective that can be monitored and plans developed to help meet the business goals. **Marketing objective examples** **Typical marketing objectives we see clients set include:** \* To increase the number of inquiries from our marketing communications activities by 15% by the end of the year \* To increase sales by 20% within 18 months This can be done through facilitating a marketing objectives workshop where key issues can be discussed and agreed upon. Alternatively, with smaller companies, we work directly with Managing Directors on a one-on-one basis to help them develop their key marketing goals and objectives. Both approaches can help a company to agree on business objectives and marketing objectives and allow a marketing plan to be developed to set a direction as to how these objectives can be achieved. Other issues, which can also be discussed in a workshop, include methods of measuring success and monitoring and evaluation processes. **Glossary** [Cross-media marketing]: A form of cross-promotion in which promotional companies commit to surpassing traditional advertisement techniques and decide to include extra appeals to the products they offer. The material can be communicated by any mass media such as e-mails, letters, web pages, or other recruiting sources. \- [Direct-Mail Marketing]: A marketing effort that uses a mail service to deliver a promotional printed piece to your target audience. Direct mail encompasses a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters, and sales letters. [Telemarketing]: (sometimes known as inside sales or telesales in the UK and Ireland) A method of direct marketing in which a salesperson solicits prospective customers to buy products or services, over the phone or through a subsequent face-to-face or Web conferencing appointment scheduled during the call. **References** **Online Supplementary Reading Materials:** 1\. Marketing; http://www.investopedia.com/terms/m/marketing.asp; April 11, 2017 2\. Telemarketing; https://en.wikipedia.org/wiki/Telemarketing; April 11, 2017 3\. Traditional Marketing; http://www.marketing-schools.org/types-of- marketing/traditional-marketing.html\#link1; April 11, 2017 4\. The History of Marketing Thought; http://www.healthedpartners.org/ceu/hm/a02history\_of\_marketing thought by Bartels hermans.pdf; April 11, 2017 5\. Traditional Marketing; http://www.strategicdriven.com/traditional- marketing/: April 11, 2017 6\. Marketing Objectives - Where do you want to be?; http://www.winmarketing.co.uk/business-and-marketing- objectives.html; April 11, 2017 **Online Instructional Videos:** 1\. Philip Kotler: Marketing; https://www.youtube.com/watch?v=SR- qL7QdVZQ: September 8, 2017 2\. Philip Kotler - Marketing Tips; https://www.youtube.com/watch?v=01QIYRZKzvo; September 8, 2017 3\. Marketing 3.0 - Phillip Kotler; https://www.youtube.com/watch?v=6rxj8pGPxZc; September 8, 2017 **Books and Journals:** 1\. Cynthia Zarate. (2012); Principles of Marketing; Philippines; C & E Publishing Inc. 2\. Philip Kotler, Gary Armstrong (1998); Principles of Marketing; Australia; Pearson