BUSINESS MARKETING

PRINCIPLES AND STRATEGIES

1. Define and understand marketing
2. Describe the traditional approaches to
marketing
3. Discuss the goal of marketing
4. Identify and explain contemporary marketing
approaches.
LESSON 1.1 WHAT IS MARKETING AND WHAT
ARE HE TRADITIONAL APPROACHES?
Marketing

 is defined as "the total of activities involved

in the transfer of goods from the producer or
seller to the consumer or buyer, including
advertising, shipping, storing, and selling."
 American Marketing Association

Marketing 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 .”
 Four activities of marketing
1. Creating. The 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.
Components of Marketing
 The ”4 Ps"
1. Product. Goods and services (creating
offerings).
2. Promotion. Communication.
3. Place. Getting the product to a point at
which the customer can purchase it (delivering).
4. Price. The monetary amount charged for
the product (exchanging).
 "7 Ps"
1. product
2. price
3. place
4. promotion
5. people
6. positioning
7. packaging
 Creating utility
Utility
 as "the quality or condition of being useful".
 is further defined as any quality and/or status
that provides a product with the capability to
satisfy the consumer's wants and needs.
Marketing is responsible for creating most of a
product's inherent utility
Four basic types of utility
1. Form utility

 production of the good or service, driven by

the marketing function.

For example, Procter and Gamble turns raw

ingredients and chemicals into toothpaste
Place utility: making the product available where customers will
buy the product. Procter and Gamble secures shelf space for
the toothpaste at a wide variety of retailers including
supermarkets and drugstores
Time utility: making the product available when customers
want to buy the product. The U.S. drugstore chain Walgreens
has many locations open 24 hours a day, and since the 1990's
has placed most of their newer stores at major intersections.
Possession utility: once you have purchased the product, you
have rights to use the product as intended, or (in theory) for
any use you would like.
Image utility: the satisfaction acquired from the emotional or
psychological meaning attached to
products. Some people pay more for a toothpaste perceived to
be more effective at fighting
cavities and whitening teeth.
The exchange processes
The exchange process is the process by which two or more
parties give something of value to each
other to satisfy the perceived needs.
 For an exchange to occur:
• Both parties must have something of value to exchange.
• Both parties need to be able to communicate. Procter and Gamble
(P&G), for example, must have money to purchase advertising
space.
• Both parties must be able to exchange. The toothpaste, in some
cases, must be approved by the FDA in order for it to be sold. The
customer must be able to buy the product with his or her
money and have access to a retail store where the product is sold to
be able to buy it.
• Both parties must want to exchange
• At least two parties are needed for an exchange to occur
Value
 Value
 mean the benefits buyers receive
that meet their needs

value = benefits received – [price + hassle]

 Creating Offerings That Have Value
 Communicating Offerings
 Delivering Offerings
 Exchanging Offerings
Marketing concept: Understanding the
Human Needs, Wants and Demands
 Marketing concept
1. Needs: Something necessary for people to
live a healthy, stable and safe life.

2. Wants: Something that is desired, wished for or

aspired to. Wants are not essential
for basic survival and are often shaped by culture or
peer-groups.
3. Demands: When needs and wants are backed
by the ability to pay, they have the
potential to become economic demands.
 Scope of marketing
1. Goods – Goods can be defined as anything
which tangible which can be offered to the
customers in order to satisfy their wants.
2. Services – Services can be defined as anything
which can be offered by one party to another
which is intangible, variable and perishable in
nature.
3. Experiences – Experience can also be
marketed as a product. By using several services
and goods, a firm can create stage and market
experiences.

4. Events – Marketers promote and market time-

based events as well,
5. Persons – Incidentally through our actions or
inactions each one of us as individual are marketing
ourselves and at marketing efforts are supplemented
by family and friends. Celebrity or famous personality
marketing is a major business.

6. Place – Places-cities, states, regions and nations-

compete actively to attract tourists,
companies etc
7. Properties – Properties are bought and sold and this
requires marketing. Properties are intangible rights of
ownership of either real property (e.g., real estate) or
financial property (e.g., stocks and bonds).

8. Organization – Organizations actively work to attract

their stakeholders. They work to
build a strong and positive image in the minds of their
stakeholders with the help of
public relations.
ADVERTISEMENTS:

9. Information – Information can be produced

and marketed as a product.

10. Idea – Ideas can also be produced and

marketed as well. In fact, idea generation isthe
firststep of the new product development.
A stakeholder can be referred as
anyone who is directly or indirectly
associated with the organizational
business.
Traditional approaches to Marketing

• refers to the conventional methods of

marketing used ever since the concept of
advertisements or marketing came into existence.
• It focuses on selling the products or services
Telling customers and making a sale

1. Print marketing (especially newspapers and magazines).

2. Broadcast marketing (especially radio and TV, which
featured their first commercials in 1920 and 1941,
respectively).
3. Direct mail marketing (with one of the earliest and most
beloved examples being the Sears catalog, whose debut issue
was mailed to consumers in 1888).*
4. Telephone marketing (which, over time, came to be known
as telemarketing, i.e. phone advertisement or request calls).
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.
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. The objective is to
lower production costs resulting in lower
prices
2. The Product Concept It assumes that
customers will always prefer and patronize
products of high quality. Resources are focused
on product improvement and innovation.
Product attributes and features are continuously
enhanced.
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. It
emphasizes aggressive selling and promotional
efforts.
4. 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.

5. Relationship concept marketing an approach that

centers on maintaining and improving
value- added long-term relationships with current
customers, distributors, dealers and
suppliers.
6. Societal Marketing Concept views that
organizations must satisfy the needs of
consumers in a manner that gives for society’s
benefit.
LESSON 1.2 Goals of Marketing
GOALS OF MARKETING - top-level broad goals to show
how the business can benefit from channels. So, goals
are the broad aims used to shape strategy. They
describe how marketing will contribute to the business
in key areas of growing sales, communicating with
audience and saving money.
MARKETING OBJECTIVE

Specific SMART objectives to give clear direction

and commercial targets. Objectives are the
SMART targets for marketing which can be used
to track performance against target.
1. SPECIFIC - the detail in the information sufficient to pinpoint
problems or opportunities; the objective sufficiently detailed to
measure real- world problems and opportunities
2. MEASURABLE - a quantitative attribute to be applied to create a
metric
3. ATTAINABLE - a quantitative attribute to be applied to create a
metric
4. RELEVANT - the information be applied to the specific problem
faced by the marketer
5. TIME BASED - objectives be set for different time periods as targets
to review against.
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.
DEVELOPING MARKETING GOALS - GOALS MUST BE:
1. ATTAINABILITY Goals must be realistic so that important
parties who will be reaching must
see each goal as reasonable.
2. CONSISTENCY management should exert to set goals that are
consistent with one another.
3. COMPREHENSIVENESS the process of goal-setting must be
comprehensive. Simply it means
that each functional area must be able to formulate its own
goals that relate to the
organization’s goals.
4. INTANGIBILITY planners often confuse goals with strategies,
objectives and even tactics. A
goal is not an action the firm can take, it is an outcome of the
organization wishes to realize.
LESSON 1.3 Contemporary Approaches to
Marketing
Contemporary approaches to
marketing refer to marketing strategies that are
consumer-focused/ customer-centric (focuses
on customer satisfaction), offering products and
services based on what the target market desires
rather than what the company wants them to
have, uses digital or internet marketing
Not-For-Profit Organization Marketing
A not-for-profit organization is a type of
organization that does not aim for
earning profit for its owners. The money
earned by not-for-profit organization is
allocated for pursuing the organization’s
objectives.
Characteristics of a not-for-profit
organization
1. Generate as much revenue as possible to support their
causes
2. Compete with other organizations for donors’ pesos
3. Often possess some degree of monopoly power in a given
geographic area
4. Market to multiple publics
 How Contemporary Marketers are Reaching Their Audience

1. PERSON MARKETING
Person marketing entails endeavors aimed at cultivating the attention, interest and
preferences of a target market toward a celebrity or authority figure.
2. PLACE MARKETING
Place marketing or place branding attempts to exert a pull customer to particular areas. Place
marketing is used to attract tourist and showcase the beautiful spots in different cities,
provinces, and regions. Place marketing is also used to promote sites that can be a nice choice
for putting up a business
3. CAUSE MARKETING
Cause marketing is the recognition and marketing of a social issue, cause or idea to the target
markets. Cause marketing increases the awareness of issues such as literacy, physical fitness,
child obesity, and environmental protection, elimination of birth defects, child-abuse
prevention and preventing drunk-driving.
some guidelines to consider before creating a cause marketing campaign

1. UNDERSTAND MARKETING before a firm create a cause marketing, it needs to

understand first the essential elements of marketing to its specific target audience.
2. SUPPORT REPUTATION CAUSES if the company is going to give large amounts of
money, resources or time to a philanthropic cause, it must first do its homework.
The organization must choose the right charity to give help to and check its every
detail.
3. MAINTAIN TRANSPARENCY if the firm wants consumers to join its cause, it has to
make it easy and transparent for them to do so.
4. THINK MAINTREAM the majority of the firm’s patron should support the effort of
its supporting.
5. STAY CONSISTENT it is best for the company if it is going to be generous in one
charity for long time to be predictable in the eyes of the consumers
4. EVENTMARKETING - Event marketing is the experiential promotion of a product, service or
brand. This type of marketing typically involves direct interaction between a company
representative and the target audience.
Essential features of event marketing:
1. Wide range of events – event marketing encompasses a wide range of event types:
a. Mega events and local events,
b. Exhibitions,
c. Trade shows,
d. Publicity stunts,
e. Themed and created events,
f. Corporate entertainment,
g. Award ceremonies
2. Goal oriented
3. Effective promotion and communication – it is important to get the message to the target
audience clearly.
4. Proper evaluation – it is necessary for the team to be able to evaluate the event/project to
be
more effective and efficient the next time.
5. Feedback from clients
6. Location – this is the most important aspect as the location of the event should be
accessible and
should be near important areas.
5. GREEN MARKETING – refers to the process of selling products and/or services based
on their environmental benefits
Green marketing can attract a sizable segment of emerging
consumers that are conscious of environmental issues.
For green marketing to be effective, there are three things that needs to be done:
1. Being genuine
a. The company is actually 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
How do companies reach a target market and then develop long-term relationships with
customers? How do businesses view their relationship with their customers? What
market plan is a
company implementing to establish its brand as a mainstay in their industry?
 Market Orientation: Meeting the Needs of Consumer

modern market orientation strategies may include:

1. An analysis of current client behavior
2. Foreseeing the future needs of current clients
3. Identifying weaknesses in customer service
4. Developing a top-notch UX (user experience) platform on your website
5. Offering discounts or early-bird specials to current customers
 Marketing Mix: Contemporary Promotion in the Market

A marketing mix refers to strategies or actions that a company utilizes to promote its
products,
services or brand in the market. The marketing mix typically includes the four ‘Ps’:
product, place,
price and promotion.
1. Product
Product refers to the products or services that you are offering to the market. The quality
and
dependability of the product may be the core determining factor in whether a client stays
loyal to
your company
2. Place
In marketing, the place refers to the point of sale (POS). The goal is to attract the
customer and
remove all obstacles to the purchase. This may involve creating an easy-to-use e-
commerce site, a simple app or correct product placement in your brick-and-mortar store.
Being at the right place at
the right time with the product is essential for holding your customer’s attention.

3. Price
What is the current value of your product? The price depends on various factors such as
market
demand, product quality, competition and cost of production. The most important factor
when
determining your price is that what you ask for needs to align with what your customers
expect and
are willing to pay
4. Promotion
Promotion can include different types of marketing such as digital marketing (website,
social media)
or traditional marketing (TV ads, brochures, flyers). A marketing manager and their
team use as many
marketing channels as possible to reach and engage with their audience in the most
direct and clear
way.
ADVANTAGE OF CONTEMPORARY APRROACHES:

1. easily reach to your targeted local customers

2. materials can be kept
3. easy to understand
DISADVANTAGE OF TRADIONA APPROACH

1.There is very little interaction between the

medium used and the customers
2.Very costly especially print or radio
advertisements
3.Results cannot be easily measured
ADVANTAGE OF CONTEMPORARY APPROACHES
1. Targets local and international audiences
2. Audience can choose how they want to receive
your content
3. Interaction with your audience is possible
4. Digital marketing is cost-efficient
5. Data and results are easily recorded
6. Real time results
7. Brand Development