Lesson 1.

Traditional Approaches in
Marketing

Principles of Marketing
Accountancy, Business, and Management

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How do you choose between different product brands?
What are your primary considerations?
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product These factors typically

price influence the decisions of

consumers.
promotion

3
 Traditional
marketing
tended to focus
on the said
factors.

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Quick Look

Consumer Preferences Mapping

Mr. Raul is a multi-million investor. According to him, the secret to
successful investment ventures is focusing on the product and service of
the business. Before investing, he examines the product portfolio of
companies and analyzes how their product can compete in terms of
price, quality, and promotion. True enough, his companies are known for
introducing cheaper versions of their products to boost sales. He believes
that the Filipinos’ preferences are still strongly influenced by quality,
affordability, and popularity.

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Quick Look

Questions to Ponder
1. For Mr. Raul, what are the most important considerations of consumers
when choosing between brand options?
2. What personal experience do you have that supports Mr. Raul’s beliefs?
3. Do you agree with Mr. Raul’s beliefs about Filipinos’ preferences? Why or
why not?

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Learning Competency

Describe the traditional approaches to marketing

(ABM_PM11-Ia-b-3).

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Learning Objectives

In this lesson, you should be able to do the following:

● Describe the traditional approaches to marketing.
● Examine the marketing approach used in a given situation.
● Distinguish the different concepts in traditional marketing
from one another.

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Should business organizations still use the
traditional approaches in marketing?

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Traditional Approaches in Marketing

Marketing concepts are the fundamental philosophies and

ideas used by companies to approach the marketplace. It
consists of assumptions that affect how marketing strategies
are designed and implemented to achieve the outlined goals.

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Traditional concepts Contemporary
concepts

● product-based ● consumer-focused

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Traditional Approaches in Marketing

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 Production Concept

● one of the oldest

marketing philosophies
● assumes that customers
want available and
affordable products

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Production Concept

● leads companies to focus

on production and
distribution efficiency
● mass production and low
selling price

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 Production Concept

● useful when:
○ demand exceeds the
current supply
○ production cost is too high

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 Check Your Progress

1
Can you think of specific situation when the application of
the production concept was effective in increasing sales?

Answer area

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Product Concept

● assumes that consumers

prefer products with the
best quality, performance,
and features

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 Product Concept

● companies make
product
improvements and
innovation ahead of
the competition

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Product Concept

● fosters innovation, raises

the benchmark, exceeds
expectations
● may be expensive

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 Product Concept

● focusing too much

on the product may
neglect the
customer’s actual
needs

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 Check Your Progress

2
Compare how companies apply the production and product
concepts.

Answer area

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Selling Concept

● assumes that customers

will not buy products
unless it is advertised and
promoted

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 Selling Concept

● companies conduct
aggressive selling and
promotional efforts to
convince timid customers

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Selling Concept

● useful when goods are

unsought
● can be expensive
● must be good in tracking
potential customer

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 MJ’s Studio

Closer L
o ok

MJ is a professional photographer in one of the well-known

photo companies in the Philippines. After five years of working,
he decided to build a studio near his hometown. He came up
with ideas like customizable photo sets and creative
photoshoots that he and his customers decided on. Despite his
passion for these new ideas, customers were not coming to
avail the services from his studio.

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 MJ’s Studio

Closer L
o ok

He tried to advertise his studio and photography services

intensively. He reached out to some of his friends who have
become social media influencers. They helped popularize his
brand and its services, successfully converting prospects into
customers.
During his two years in the photography business, he has been
profitable enough to buy new camera equipment that is more
expensive than a brand new car.

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 MJ’s Studio

Closer L
o ok

The selling concept proved to be effective in MJ’s business

endeavors. Based on the situation, it showed how his
promotional efforts paid off after two years. It might have
been difficult for MJ to maintain his business if he had not
convinced the customers to avail of his services.

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 From Traditional to Digital

Case Stu
dy

A health and wellness company was one of many small and

medium-sized businesses affected by the coronavirus
pandemic.
Prior to economic restrictions, the company used traditional
selling methods. They operated booths at visible areas of
shopping malls where sales agents encouraged passers-by to
try their products.

Erica Torres, “Online selling keeps Filipino health-product maker afloat,” Business Mirror (August 3, 2021),
https://businessmirror.com.ph/2021/08/03/online-selling-keeps-filipino-health-product-maker-afloat/, last accessed
January 13, 2022. 28
 From Traditional to Digital

Case Stu
dy

When the pandemic forced its mall outlets to close down, the
firm embraced the digitization of its business operations. The
firm trained its employees to manage online stores and
conduct online promotions and live selling. It also set up
distribution hubs and delivery channels, making its products
widely available and accessible to more customers.

Erica Torres, “Online selling keeps Filipino health-product maker afloat,” Business Mirror (August 3, 2021),
https://businessmirror.com.ph/2021/08/03/online-selling-keeps-filipino-health-product-maker-afloat/, last accessed
January 13, 2022. 29
 From Traditional to Digital

Case Stu
dy

Nowadays, their clients are not just individual consumers but

also organizations, pharmacies, and drug stores that buy in
bulk. The firm’s success in staying afloat proved that the
production and selling concept remains useful when integrated
with contemporary and digital forms of marketing.

Erica Torres, “Online selling keeps Filipino health-product maker afloat,” Business Mirror (August 3, 2021),
https://businessmirror.com.ph/2021/08/03/online-selling-keeps-filipino-health-product-maker-afloat/, last accessed
January 13, 2022. 30
Keep in Mind

● Traditional marketing approaches are product-based and product-

focused. Traditional marketing concepts lead companies to focus on
product improvement, production and distribution efficiency, and
promotional efforts.

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Keep in Mind

● The traditional concepts in marketing include:

○ the production concept, which assumes that consumers choose
widely-available and affordable products;
○ the product concept, which holds that consumers prefer high-
quality products with innovative features; and
○ the selling concept, which states that consumers are more
inclined to buy the intensely promoted products.

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Keep in Mind

● Although the application of these marketing concepts has driven

many businesses towards success, companies have changed their
approach towards the marketplace. Nowadays, marketing strategies
apply contemporary approaches which focus more on the customer
and their needs.

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Keep in Mind

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 Try This
State if the statement is true or false.

1. The product concept leads companies to expand and scale

their distribution and production efficiency.

Answer area

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 Try This
State if the statement is true or false.

2. The selling concept considers the market's needs over the

company’s current products.

Answer area

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 Try This
State if the statement is true or false.

3. The production concept is focused on providing better

products ahead of competitors.

Answer area

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 Try This
State if the statement is true or false.

4. The product concept focuses on the mass availability of

goods and lowering of production costs.

Answer area

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 Try This
State if the statement is true or false.
5. The production concept is considered one of the oldest
philosophies wherein consumers are believed to favor
widely available and affordable products.
Answer area

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 Practice Your Skills
Analyze the situation below and provide an explanation to justify your
answer.

1. Elisa started an atsara business. She is making sure that

her products can meet her customers’ expectations.
Instead of using commonly used vinegar, she is exporting
vinegar from Bicol. She is also using a secret formula in
preparing the atsara, making it one of the most delicious
atsaras in the market. What do you think is the philosophy
that guided Elisa in her business endeavor? Explain your
answer.

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Practice Your Skills

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 Practice Your Skills
Analyze the situation below and provide an explanation to justify your
answer.

2. Andrea is an insurance broker. For her to close a deal with

clients, she has to exert much effort in persuading
customers to avail the insurance and at the same time
exhibit skills in negotiating in sales presentations. Based on
the situation, what is the concept that guided Andrea in her
work? Justify your answer.

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Practice Your Skills

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 Challenge Yourself

Answer the following questions.

Do you think the production concept can be used
simultaneously with the product concept? Why or why not?

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 Challenge Yourself

Answer the following questions.

Do you agree that the effectiveness of marketing concepts
varies depending on the product offered? Why or why not?

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Photo Credit

All photos used are public domain.

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Bibliography

Davies, Eric. The Marketing Planning. Hachette, UK: McGraw-Hill Companies, Inc., 2014.

Kotler, Phillip, and Gary Armstrong. Principles of Marketing: Second Custom Edition for Oregon State University. New
Jersey: Prentice-Hall, Inc., 2012.

Murray, Chris. The Marketing Gurus. New York, New York: Penguin Group (USA) Inc., 2006.

Solomon, Michael, Elnora Stuart, Auleen Carson, and J. Brock Smith. Marketing. Toronto, Ontario: Prentice-Hall, Inc.,
2003.

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