Subject PRINCIPLES OF MARKETING

Topic Marketing Principles and Strategies

Level Grade 11

Week Week 1

School Year 3rd Quarter/SY 2023-2024

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.

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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.

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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.

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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.

GOALS ARE DIFFERENT FROM OBJECTIVES.

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.

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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 Phone 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 7P'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.

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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

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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.

**** END OF DISCUSSION ***

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