Marketing Principles and Strategies PDF

PRINTABLE LEARNING MATERIAL MODULE 1 - Reading Material: MARKETING PRINCIPLES AND STRATEGIES Learning Outcome: By the end of this module, you'll be able to: Define and Understand Marketing (DLSL_SHSMARKPRINMarkPrinStrat-Ia-1) Identi...

PRINTABLE LEARNING MATERIAL MODULE 1 - Reading Material: MARKETING PRINCIPLES AND STRATEGIES Learning Outcome: By the end of this module, you'll be able to: Define and Understand Marketing (DLSL_SHSMARKPRINMarkPrinStrat-Ia-1) Identify and explain the traditional and contemporary approaches to marketing (DLSL_SHSMARKPRINMarkPrinStrat-Ia-2) Discuss the goals of marketing (DLSL_SHSMARKPRINMarkPrinStrat-Ia-3); and Identify and explain contemporary marketing approaches (DLSL_SHSMARKPRINMarkPrinStrat-Ia-4). Topic 1.1: DEFINITION OF MARKETING ❖ Every day, we are faced with so much information coming from different sources: media, word of mouth, actual products, and the Internet. Much of this information can be traced to marketing activities. How can businesses make sure their products get the buyer's attention and stay in business given this competition? Studying marketing and the importance of consumers will give businesses the capability to compete in these times. ❖ This chapter lays the groundwork for understanding what marketing is all about, including the definitions of key terms and discussions about what makes a true marketing transaction. Just because you are selling something does not necessarily mean that you are performing a true marketing-oriented transaction. Coercing someone to buy, for instance, is not what marketing is all about. Instead, marketers should strive to make consumers understand the true value of whatever they are offering. This is why MARKETING is also known as MARKETING COMMUNICATIONS. WHAT IS MARKETING ❖ "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. " ❖ Marketing as a discipline involves all the actions a company undertakes to draw in customers and maintain relationships with them. Networking with potential or past clients is part of the work too and may include writing thank you emails, playing golf with prospective clients, returning calls and emails quickly, and meeting with clients for coffee or a meal. ❖ At its most basic level, marketing seeks to match a company's products and services to customers who want access to those products. Matching products to customers ultimately ensures profitability. ❖ Marketing refers to any actions a company takes to attract an audience to the company's product or services through high-quality messaging. Marketing aims to deliver standalone value for prospects and consumers through content, with the long-term goal of demonstrating product value, strengthening brand loyalty, and ultimately increasing sales. STAGES IN THE EVOLUTION OF MARKETING THEORY ❖ Marketing models have gone through a series of developments over the past years. Before the Societal Marketing Concept arose, there had been several stages with different views and highlights. To understand this better, here is a short video that will explain the evolution of marketing. ❖ Marketing theory has gone through a series of evolutionary stages before arriving at the marketing concept (the view that everything the company does should be driven by market forces, and ultimately by customer needs). In total, there are five stages: These are - PRODUCTION ORIENTATION, PRODUCT ORIENTATION, SALES ORIENTATION, MARKETING ORIENTATION, AND SOCIAL ORIENTATION. Production Orientation ▪ The evolution of marketing theory starts with production orientation. Production orientation is the view that the route to corporate success lies in production efficiency, getting production costs as low as possible (usually by manufacturing in a very large volume) in order to reduce costs and prices. ▪ This orientation had its beginnings at the start of the Industrial Revolution. Up until the nineteenth century, almost everything was hand-made and made to measure. The longer the production run, the lower the costs and consequently the greater the profit: customers were prepared to accept items that were not exactly meeting their needs since prices were a fraction of what they would have had to pay for the perfect, tailor-made article. For manufacturers, the key to success was therefore ever more efficient (and low-cost) production, but at the cost of meeting individual customers’ needs. Product Orientation The second stage in the evolution of marketing theory is product orientation. Product orientation is the view that an ideal product can be produced that will have all the features any potential customer might want.  This orientation is thought to be a result of an oversupply of basic goods. Once everyone already owned the core benefits of the products concerned, manufacturers needed to provide something different in order to find new customers. Products with more features, made to a higher standard, began to be introduced. The difficulty with both production orientation and product orientation is that they do not allow for the different needs and circumstances of consumers. Customers differ from each other in terms of their needs – there is no such thing as ‘the customer’. Sales Orientation This concept is based on the idea that manufacturing companies can produce far more goods than the market can accept. Sales-oriented companies assume that people do not want to buy goods, and will not do so unless they are persuaded to do so: such companies concentrate on the needs of the seller rather than the needs of the buyer. Sales orientation relies on several assumptions: first, that customers do not really want to spend their money: second, that they must be persuaded by the use of hard-hitting sales techniques: third, that they will not mind being persuaded and will be happy for the salesperson to call again and persuade them some more: and fourth, that success comes through using aggressive promotional techniques. Marketing Orientation The most common view today in marketing theory is marketing orientation Marketing orientation means being driven by customer needs: this is sometimes also called customer orientation. Companies that are truly marketing-oriented will always start with the customer’s needs, whatever the business problem. Customers can be grouped according to their different needs, and a slightly different product is offered to each group. This type of differentiation allows the company to provide for the needs of a larger group in total because each target segment of the market is able to satisfy its needs through the purchase of one or other of the company’s products. The underlying assumption of marketing orientation is that customers want to satisfy their needs, and will be willing to buy products that do so. Customer needs include a need for information about the products, advice about product usage, availability of products and so forth. Customer need therefore goes beyond the basic core benefits of the product itself. Societal marketing Orientation The very last and most recent stage in the evolution of marketing theory is societal marketing. Societal marketing includes the concept that  companies have a responsibility for the needs of society as a whole, so should include environmental impact and the impact of their products on non-users. Societal marketers believe that sustainability is a key issue since it is of no help to the long-term survival of the firm if natural resources are used too quickly. Long-term results of use of the product are also considered, in terms of their impact on the environment. WHAT IS BEING MARKETED? 1. Goods - Physical goods constitute the bulk of most countries’ production and marketing efforts. 2. Places – for example, Tourist destinations 3. Services – examples: Airlines, Hotels, Lawyers 4. Properties – example: Intangible rights of ownership to a real property 5. Events – example: Trade shows 6. Organization – for example, fund-raising campaigns 7. Experiences – example: experience gained from theme parks 8. Information – This is what books, schools, and universities produce, market, and distribute at a price to parents, students, and communities 9. Persons – examples: celebrities, high-profile lawyers 10. Ideas – Every market offering includes a basic idea. Examples: Taglines used by companies in their advertisement WHO MARKETS? ❖ Marketers and Prospects. A marketer is someone who seeks a response – attention, a purchase, a vote, a donation – from another party, called a prospect. If two parties are seeking to sell something to each other, we call them both marketers. ❖ Market. This pertains to the physical space where buyers and sellers gather to buy and sell goods. Economist describes a market as a collection of buyers and sellers who transact over a particular product or product class. ❖ Marketplace. A physical store that you can shop in. Marketspace. Digital, as when you shop on the internet. Metamarkets. The result of marketers packaging a system that simplifies carrying out related product/service activities. (e.g. new and used car dealers, financing companies, wedding event coordinators) KEY CUSTOMER MARKETS ❖ Consumer Market. Companies selling mass consumer goods and services spend a great deal of time establishing a strong brand image. ❖ Business Market. They buy goods to make or resell a product to others at a profit. ❖ Global Market. Companies selling in the global marketplace. ❖ Nonprofit and Governmental Market. Examples: Church, universities, charitable organization CORE CONCEPTS OF MARKETING 1. Needs. A state of felt deprivation about something that is deemed to be necessary. 2. Wants. These are specific manifestations of needs. 3. Demands. Wants to be backed up by purchasing power. 4. Exchanges. It involves obtaining the desired product from someone by offering something in return. For exchange potential to exist, five conditions must be satisfied: 4.1 There are at least two parties  4.2 Each party had something that might be of value to the other party 4.3 Each party is capable of communication and delivery 4.4 Each party is free to accept or reject the exchange offer 4.5 Each party believes it is appropriate or desirable to deal with another party 5. Value. Consumers generally value a product or service when it provides them with utility. There are five kinds of economic utility: 5.1 Form Utility. A product, by its very form, saves the consumer from the effort of having to make the product himself. 5.2 Place Utility. The convenience offered by making a product available around the proximity of the customer is also valued. 5.3 Time Utility. If the firm can offer a product or service far quicker than alternative providers, the customer will also value this speed of service. 5.4 Possession Utility. For some products, mere ownership is already valued by the customer. This is especially true for branded items that command a premium over commodity substitutes. 5.5 Information Utility. Knowing certain things about the product can already imbue it with value. 6. Satisfaction - reflects a person’s judgment of a product's perceived performance in relation to expectations. MARKETING PROCESS Licensing & Attributions / References David, Fred (2013). Strategic Management Concepts and Cases. Global Edition 13th Edition. Pearson Prentice Hall: Singapore Alexandra Twin. (Updated July 30, 2024). Marketing in Business: Strategies and Types Explained. Retrieved from. https://www.investopedia.com/terms/m/marketing.asp Caroline Forsey. (October 18, 2024). What is Marketing, and What's Its Purpose? Retrieved from. https://blog.hubspot.com/marketing/what-is- marketing#what-is-marketing Claessens, M. (2018). Retrieved February 9, 2021, from https://marketing-insider.eu/evolution-of-marketing-theory/ Cummings,J. (2021). Retrieved February 9, 2021, from https://slideplayer.com/slide/7226613/ Eightception. (June 10, 2024). Evolution of Marketing Theory – From Production to Marketing Orientation. Retrieved from. https://eightception.com/evolution- of-marketing-theory/ Gabbgott. (2016, Oct 23). Marketing Evolution [Video file]. Retrieved from: https://www.youtube.com/watch?v=VjzHHSTG7ck&feature=emb_title Mastery. (2019, Oct 22). Marketing Concepts or Philosophies Marketing Management. [Video file] Retrieved from https://www.youtube.com/watch?v=Xc0xqmVAwrw McLeod, S. (2020). Maslow’s Hierarchy of Needs. Image lifted from https://www.simplypsychology.org/maslow.html Study.com. (2013, Dec 14). Introduction to Marketing [Video file]. Retrieved from: https://www.youtube.com/watch?v=i1xz5Kv-7VY&feature=emb_title Weller, J. (2017).Retrieved February 9, 2021, from https://www.smartsheet.com/strategic-marketing-processes-and-planning Prepared by: Mr. Anthony Karl M. Perez, LPT. Principles of Marketing Subject Teacher