Republic of the Philippines CvSU Mission

CvSU Vision
The premier university in
CAVITE STATE UNIVERSITY
historic Cavite recognized for
excellence in the development
of globally competitive and
morally upright individuals.
ELEC4: DIRECT MARKETING
Bacoor City Campus
SHIV, Molino VI, City of Bacoor
Cavite State University shall
provide excellent, equitable and
relevant educational opportunities in
the arts, science and technology
through quality instruction and
relevant research and development
activities.
It shall produce professional,
skilled and morally upright individuals
for global competitiveness.

LESSON 01: INTRODUCTION TO DIRECT MARKETING

TOPICS:

✓ Review of Nature of Marketing

✓ Overview and Essentials of Direct Marketing
✓ Application of Market Segmentation, Target Marketing and Positioning

LEARNING OBJECTIVES:

✓ Have a clear view of what direct marketing is

✓ Demonstrate the importance of direct marketing; and
✓ Determine market segmentation, target marketing and positioning

Introduction to Direct Marketing – Lesson 01

The American Marketing Association offers the following formal definition: 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 stake holders.

Philip Kotler defines marketing as ―a social process by which individuals and groups obtain what they need and
want through creating, offering and freely exchanging products and services of value with other.

In essence, the marketing concept is customer orientation aimed at generating customer-satisfaction through
integrated marketing. Marketing may be narrowly defined as a process by which goods and services are exchanged and
the values determined in terms of money prices. That means marketing includes all those activities carried on to transfer
the goods from the manufacturers or producers to the consumers.
 Republic of the Philippines CvSU Mission
CvSU Vision
The premier university in
CAVITE STATE UNIVERSITY Cavite State University shall
historic Cavite recognized for Bacoor City Campus provide excellent, equitable and
excellence in the development SHIV, Molino VI, City of Bacoor relevant educational opportunities in
of globally competitive and the arts, science and technology
morally upright individuals. through quality instruction and
relevant research and development
activities.
It shall produce professional,
Marketing is a multifaceted discipline that involves various activities aimed at promoting,and
skilled morally
selling, andupright individuals
distributing
for global competitiveness.
products or services to customers. Its nature encompasses both art and science, as it requires creativity, strategic thinking,
and data-driven decision-making.

Nature of Marketing:

1. Customer Orientation: Marketing is fundamentally focused on understanding and meeting the needs, wants, and
preferences of customers. It involves market research, segmentation, and targeting to identify the most viable
customer segments and tailor offerings accordingly.
Example: Amazon's recommendation system analyzes user behavior and preferences to suggest products tailored
to individual customers. By understanding each customer's needs and preferences, Amazon enhances the shopping
experience and increases customer satisfaction.
2. Value Creation: Effective marketing aims to create value for both customers and the company. This involves not
only delivering products or services that satisfy customer needs but also communicating the value proposition in a
compelling way.
Example: Apple's marketing emphasizes not just the features of its products but also the lifestyle and status
associated with owning an Apple device. By communicating the value of design, innovation, and user experience,
Apple creates a perception of premium quality that justifies its higher prices.
3. Exchange Process: Marketing facilitates the exchange process between buyers and sellers. It involves creating
awareness, generating interest, facilitating transactions, and fostering long-term relationships with customers.
Example: Coca-Cola's "Share a Coke" campaign encourages customers to personalize Coke bottles with their
names or the names of friends and family. This initiative not only creates awareness but also fosters a sense of
connection and sharing, facilitating the exchange of Coca-Cola products among consumers.
4. Integrated Approach: Marketing is not limited to advertising or sales promotion. It encompasses various
elements such as product development, pricing, distribution, and promotion. A holistic, integrated approach is
essential for achieving marketing objectives.
Example: Nike's marketing strategy incorporates product development, athlete endorsements, digital marketing,
retail experiences, and community engagement. By aligning these elements cohesively, Nike delivers a consistent
brand message across various channels, reinforcing its position as a leading athletic brand.
5. Dynamic and Evolving: The marketing landscape is constantly evolving due to changes in consumer behavior,
technological advancements, and competitive dynamics. Marketers need to adapt to these changes and
continuously innovate to stay relevant.\
Example: Netflix continuously adapts its marketing strategies based on data analytics and consumer insights. For
instance, it invests in producing original content tailored to diverse audience preferences, capitalizing on emerging
trends in streaming entertainment.
6. Ethical Considerations: Marketing activities should be conducted ethically and responsibly, considering the
impact on society, the environment, and stakeholders. Ethical marketing practices build trust and credibility with
customers.
Example: Patagonia's marketing campaigns highlight its commitment to environmental sustainability and social
responsibility. By promoting fair labor practices, reducing environmental impact, and donating a portion of its
profits to environmental causes, Patagonia builds trust and loyalty among environmentally-conscious consumers.
 Republic of the Philippines CvSU Mission
CvSU Vision
The premier university in
CAVITE STATE UNIVERSITY Cavite State University shall
historic Cavite recognized for Bacoor City Campus provide excellent, equitable and
excellence in the development SHIV, Molino VI, City of Bacoor relevant educational opportunities in
of globally competitive and the arts, science and technology
morally upright individuals. through quality instruction and
relevant research and development
activities.
It shall produce professional,
skilled and various
morally upright individuals
7. Measurement and Analysis: Marketing effectiveness can be measured and analyzed using metrics and
for global competitiveness.
tools. Data-driven insights help marketers evaluate the performance of their campaigns, identify areas for
improvement, and make informed decisions.
Example: Google Analytics provides marketers with valuable insights into website traffic, user behavior, and
conversion rates. By analyzing these metrics, marketers can optimize their digital marketing efforts, improve
website performance, and allocate resources effectively.
8. Global Perspective: In today's interconnected world, marketing often has a global dimension. Companies need to
consider cultural differences, market trends, and regulatory requirements when operating in international markets.
Example: McDonald's adapts its menu offerings and marketing strategies to suit local tastes and cultural
preferences in different countries. For example, it offers vegetarian options in India, seafood-based items in Japan,
and promotes its coffee culture in Europe.
9. Relationship Building: Building strong relationships with customers is crucial for long-term success in
marketing. This involves not only acquiring new customers but also retaining existing ones through personalized
communication, excellent customer service, and loyalty programs.
Example: Airbnb fosters relationships between hosts and guests by providing a platform for personalized
communication and feedback. Through features like reviews, messaging, and host profiles, Airbnb facilitates trust
and enhances the overall experience for both hosts and guests.
10. Innovation and Creativity: Successful marketing often requires creativity and innovation to stand out in a
crowded marketplace. Marketers need to think outside the box to develop unique strategies, campaigns, and
products that capture the attention of consumers.
Example: Tesla's marketing relies on innovative product features, such as autonomous driving technology and
over-the-air software updates, to differentiate itself in the competitive electric vehicle market. By highlighting
these innovations, Tesla captures the imagination of consumers and generates buzz around its brand.

Direct Marketing

✓ It’s a marketing strategy that involves directly communicating with your target audience. The audience could be
individual consumers or businesses. Communicating with your target audience is usually done through various
channels, such as mail, email, phone calls, text messages, and social media.

Why is Direct Marketing Important?

✓ Targeted communication: Targeting your audience is completed, you’ve got your data list sorted so now the
communication ought to be tailored to its reader too. Direct marketing enables businesses to communicate directly
with their target audience based on specific characteristics such as demographics, interests, and behaviors. This
allows businesses to tailor their messaging and offers to the needs and preferences of their target audience,
resulting in more effective communication and higher response rates.
✓ Measurable results: DM campaigns are possible the best way of measuring the results, they are in fact highly
measurable, allowing businesses to track response rates, conversion rates, and other metrics to evaluate the
effectiveness of their campaigns. This enables businesses to optimize their campaigns and allocate their marketing
budget more effectively.
 Republic of the Philippines CvSU Mission
CvSU Vision
The premier university in
CAVITE STATE UNIVERSITY Cavite State University shall
historic Cavite recognized for Bacoor City Campus provide excellent, equitable and
excellence in the development SHIV, Molino VI, City of Bacoor relevant educational opportunities in
of globally competitive and the arts, science and technology
morally upright individuals. through quality instruction and
relevant research and development
activities.
It shall produce professional,
skilled andDigital
morally channels
upright individuals
✓ Cost-effective: Direct marketing can be a cost-effective way to reach a targetedaudience. such as
for global competitiveness.
email and social media have significantly reduced the cost of direct marketing compared to traditional channels,
such as direct mail and telemarketing. But all methods of direct marketing are significantly less than other
traditional ways of advertising to a specific audience.
✓ Builds customer relationships: What better way to build trust and confidence by building good strong
relationships. Direct marketing can help businesses build relationships with their customers by providing
personalized communication and offers. This can lead to increased loyalty and customer retention.
✓ Generates leads: By attracting new potential clients is ultimately the only way to successfully grow your
business. Direct marketing can be used to generate new leads and acquire new customers. By targeting specific
segments of the population, businesses can reach potential customers who are more likely to be interested in their
products or services.

Market Segmentation, Target Marketing and Positioning

Segmentation, targeting, and positioning are also known as the STP marketing model. The three concepts go hand
in hand when making decisions about a firm's marketing processes.

1. Market Segmentation
✓ divides the market into subgroups of individuals who share similar needs, wants, and characteristics. It is
the marketer's goal to identify the appropriate subgroups of consumers. There are four ways of
segmenting consumers.
a. Demographic segmentation – this is one of the most widely used segmentation methods. Demographic
segmentation divides consumers into groups based on characteristics such as: Age, Sex, Income, Family
Size, Occupation, etc.
b. Geographic segmentation – this divides the market based on geographical aspects. Geographic
segmentation can be a helpful tool for marketers, as certain customers from different parts of a country
could have different wants and needs. Geographic segments include: Country, City, Neighborhood,
Climate.
c. Psychographic segmentation – this looks at the intrinsic traits of the target consumer. Example: Style,
Values, Personality Traits.
d. Behavioral segmentation – this breaks down the market into subgroups based on consumers' behavior
when making purchase decisions. It can be based on: Occasions, User status, Usage rate, Loyalty.

2. Targeting
✓ involves deciding which customer segment or market the firm should be aiming at. Once a firm identifies
all market segments, it must determine which ones to target and how many. This strategy aims to identify
small, well-defined target groups.
 Republic of the Philippines CvSU Mission
CvSU Vision
The premier university in
CAVITE STATE UNIVERSITY Cavite State University shall
historic Cavite recognized for Bacoor City Campus provide excellent, equitable and
excellence in the development SHIV, Molino VI, City of Bacoor relevant educational opportunities in
of globally competitive and the arts, science and technology
morally upright individuals. through quality instruction and
relevant research and development
activities.
It shall produce professional,
skilled and morally upright individuals
3. Positioning
for global competitiveness.
✓ involves determining where your brand or product stands affecting others in the market. Positioning is a
vital part of marketing strategy, as it influences how customers perceive your product offering. It is
directly related to your value proposition.

Value Proposition - is the value a business promises to bring to its customer when buying a product or service.

Why are segmentation, targeting, and positioning important in marketing?

Segmentation, targeting, and positioning are essential elements of marketing strategy. All three concepts are
prerequisites for developing the marketing mix. These steps are necessary for understanding customers and the product
offering better. It also allows businesses to understand which customers they should focus their marketing strategy on and
how they can make their product the most successful from a marketing point of view. Segmentation is essential for firms
as it allows them to understand their market better. During segmentation, customers are divided into smaller subsets based
on shared characteristics, which provides insight into the different types of customers purchasing the firm's products or
services.

Targeting is also important because it is essential to select which customer segment is most attractive from a
marketing perspective. This customer segment, or segments, will be the ones you focus your marketing on.

Finally, positioning the product is crucial because it determines how customers will view the product or service
compared to those of competitors. This step helps businesses define their product offerings and the value they bring to
their customers.

References:

✓ Kotler, P., Armstrong, G., & Opresnik, M (2018). Principles of Marketing Global Edition. United Kingdom:
Pearson Education Limited.
✓ Tapp, Whitten, Housden (2014). Principles of Direct, Database & Digital Marketing 5th Edition. United Kingdon:
Pearson Education Limited.

Prepared by:
Rosette P. Sarmiento
Instructor, DMS
Consultation Hours: 11:00AM to 1:00PM
rosette.sarmiento@cvsu.edu.ph