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Marketing and its Traditional Approaches

Marketing is defined as “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.
If you read the definition closely, you see that there are four activities,
or components, of marketing:
1. Creating: process of collaborating with suppliers and customers to
create offerings that have value.
2. Communicating: broadly, describing those offerings, as well as learning
from customers.
3. Delivering: getting those offerings to the consumer in a way that
optimizes value.
4. Exchanging: trading value for those offerings.
Definition of Basic Marketing Terms
Exchange refers to the trade of things or services of value between buyer
and seller. Exchange happens when, for example, Dennis pays Ten Thousand
pesos (P10,000) to another person who, in turn, gives the former a
cellphone.
Needs refer to a thing or service that is required by a human being. A
person, for example, has a need for food and medical services.
Wants refer to products that are not necessities but are simply desired by
the consumer.
Objective is the desired result of an activity. An example of an objective
is profit which is desired by the business person.
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Traditional Marketing
1. Print marketing is the oldest form of traditional marketing. Loosely
defined as advertising in paper form. Includes advertisements in
newspapers, newsletters, magazines, brochures, and other printed material
for distribution.
2. Broadcast marketing Includes radio and television commercials, as well
as specialized forms like on-screen movie theater advertising.
3. Direct mail marketing uses printed material like postcards, brochures,
letters, catalogs, and fliers sent through postal mail to attract
consumers.
4. Telephone marketing Includes requested calling and cold calling of
consumers over the phone.

Goals of the marketing Approaches

Make Your Marketing Goals SMART
SMART stands for specific, measurable, attainable, relevant, and time-
bound/time-based:
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Contemporary approaches to marketing

Marketing Concepts - Understands consumer’s needs and deliver
satisfaction better than competitors.
Societal Marketing Concepts - Deliver value to customers in a way that
maintains or improves both the consumer’s and society’s well-being.
Relationship Marketing Concept - It is about investing in your customers
to form long-lasting connections that go beyond simply buying a product.
Difference Between Traditional and Contemporary approaches to marketing
With traditional marketing, the main goal was selling a product, making a
profit, all while reducing the cost of production. With contemporary
approaches to marketing, the consumers’ needs are the priority and
business operations revolve around that.
Customers Relationship
Customer relations refers to the process used by businesses to engage with
customers and foster long-term relationships with them. Right from
assisting customers with their day-to-day queries to creating long-term
policies that lead to customer success, customer relations encompass a lot
of activities.
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Customer value is the phenomenon that keeps companies from teetering over
the brink of bankruptcy and instead, maintaining long-term relationships
with existing customers and earning repeat business by providing an
excellent customer experience.
The term “tactical marketing” refers to the actions a company takes in
order to market a product. These actions generally include generating
leads, placing ads, building websites, creating brochures and other
mailings, and implementing a follow-up system. Tactical marketing is the
way the product is placed in front of potential customers.
The term “ strategic marketing ” refers to the content of a marketing
campaign, what the information is, how the information is presented and
whom the company is targeting with that information. Strategic marketing
is all about taking time to understand the customer, what is important to
the customer and why he purchases specific items. Strategic marketing
allows companies to provide a solution to a customer’s needs.
✓ Know the Customer
A company first needs to know its target customer. Knowing the target
customer gives an edge to being able to implement a successful marketing
campaign.
✓ Engage the Customer
Once a company understands the target customer, the next step is to place
the product in front of the customer in a way that demands results.
Understanding the customer allows the company to expose the customer to
the product in a way that she responds to and that is tailored to fit her
needs.
✓ Combine the Strategies
Many companies do not take the time to fully understand their target
customer, thus causing the campaigns to needlessly fail. Ignoring the
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strategic part of the marketing by working hard to complete important

tasks, such as placing ads and building websites may seem effective;
however, without thought behind the action, this approach is actually
ineffective. The problem with implementing only tactical marketing
strategies and not putting any additional thought into the marketing
campaign is the conversion rate from potential customers to actual
customers.

The Marketing Environment

The Marketing Environment
- or commonly called The Business Environment
- is the combination of external and internal factors and forces that
affect the
company’s ability to establish a relationship and serve its customers.
Components of Marketing Environment
The marketing environment is made up of the internal and external
environment of the business. While the internal environment can be
controlled, the business has very less or no control over the external
environment.
Internal Environment
The internal environment of the business includes all the forces and
factors inside the organization which affect its marketing operations.
These components can be grouped under the Five Ms of the business, which
are:
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This environment includes the sales department, the marketing department,

the manufacturing unit, the human resource department, etc.
External Environment
The external environment constitutes factors and forces which are external
to the business and on which the marketer has little or no control. The
external environment is of two types:
• Micro marketing environment
• Macro marketing environment
Micro Environment
The micro-component of the external environment is also known as the task
environment. It comprises external forces and factors that are directly
related to the business. These include suppliers, market intermediaries,
customers, partners, competitors and the public
• Suppliers include all the parties which provide resources needed by the
organization.
• Market intermediaries include parties involved in distributing the
product or service of the organization.
• Partners are all the separate entities like advertising agencies, market
research organizations, banking and insurance companies, transportation
companies, brokers, etc. which conduct business with the organization.
• Customers comprise of the target group of the organization.
• Competitors are the players in the same market who targets similar
customers as that of the organization.
• Public is made up of any other group that has an actual or potential
interest or affects the company’s ability to serve its customers.
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Macro Environment
The macro component of the marketing environment is also known as the
broad environment. It constitutes the external factors and forces which
affect the industry as a whole but don’t have a direct effect on the
business. The macro-environment can be divided into 6 parts.
• Demographic Environment
The demographic environment is made up of the people who constitute the
market. It is
characterized as the factual investigation and segregation of the
population according to their size, density, location, age, gender, race,
and occupation.
• Economic Environment
The economic environment constitutes factors that influence customers’
purchasing power and spending patterns. These factors include the GDP, GNP,
interest rates, inflation, income distribution, government funding and
subsidies, and other major economic variables.
• Physical Environment
The physical environment includes the natural environment in which the
business operates. This includes the climatic conditions, environmental
change, accessibility to water and raw materials, natural disasters,
pollution etc.
• Technological Environment
The technological environment constitutes innovation, research and
development in technology, technological alternatives, innovation
inducements also technological barriers to smooth operation. Technology is
one of the biggest sources of threats and opportunities for the
organization and it is very dynamic.
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• Political-Legal Environment
The political & Legal environment includes laws and government’s policies
prevailing in the country. It also includes other pressure groups and
agencies which influence or limit the working of the industry and/or the
business in the society.
• Social-Cultural Environment
The social-cultural aspect of the macro-environment is made up of the
lifestyle, values, culture, prejudice, and beliefs of the people. This
differs in different regions.