Marketing

Principles and
Strategies
 MARKETING
Marketing is defined by the American
Marketing Association 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 (4) Components or

Activities of Marketing
1. Creating is the process of
collaborating with suppliers and
customers to create offerings
that have value.
Four (4) Components or

Activities of Marketing

2. Communicating is broadly,
describing those offerings, as
well as learning from customers.
Four (4) Components or

Activities of Marketing

3. Delivering is getting those

offerings to the consumer in a
way that optimizes value.
Four (4) Components or

Activities of Marketing

4. Exchanging is trading value

for those offerings.
 The traditional way of
viewing the components of
marketing is via the four
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).
Important Marketing
Concepts
• Needs are the basic human requirements
(i.e. food, clothing, shelter, and safety as
physical needs; social needs for
belongingness and affection; and individual
needs for knowledge and self-expression).
Important Marketing
Concepts
• Wants are the desires shaped by
culture, the environment, and
influenced by others.
Important Marketing
Concepts
• Exchanges are the acts of obtaining a
desired object from someone by offering
something in return. Marketing consists
of actions trying to build an exchange
relationship with an audience.
Important Marketing
Concepts
• Market is the set of all actual and
potential buyers of a product or service.
It is composed of people with both
desire and ability to buy a product or
service.
 The needs, wants, demands are vital
concepts every marketer should
understand before a marketing process
will take place. In this way, a company
can better serve its target market such
that they can benefit, may find value,
and may have the ability and
willingness to purchase a particular
offering.
Four (4) Types of Customer

Markets
1. Consumer markets consist of
end users and consumers who
purchase products for own
consumption.
Four (4) Types of Customer

Markets
2. Business markets consists of
business and other entities that
usually purchase raw materials and
other resources for the purpose of
reselling and for its own operation.
Four (4) Types of Customer

Markets
3.Global markets have a global
scope and a wider reach in
terms of the market they target.
Four (4) Types of Customer

Markets
4. Nonprofit and governmental markets
have limited purchasing power and most
buyers are practical. This market’s purpose
for availing products and services is not
solely for commercial purposes.
Marketing Goal
A marketing goal is a specific and
measurable objective that helps you meet
your broader business goals. It can be
anything from generating high-quality leads
and raising brand awareness to increasing
customer value and improving your referral
rate. A campaign without a clear goal is
essentially a waste of money.
IVE (5) MARKETING GOALS

1. Building Brand Awareness is the

extent to which a brand is recognized
by potential customers and is correctly
associated with a particular product or
service.
• Build/increase brand awareness and name
recognition.
• Drive traffic to website.
• Generate more search traffic and improve
keyword rankings.
• Grow social media following.
• Attract new prospects.
• Obtain/increase coverage with key media
(public relations).
IVE (5) MARKETING GOALS

2. Thought Leadership is a technique

that uses the expertise of people who
can provide the best answers to
customers’ most challenging
questions about the product or
service.
• Establish/build reputation as a thought leader in
niche.
• Educate, inspire and build trust with audience.
• Demonstrate expertise in (niche area).
• Drive traffic to blog.
• Increase number of referring websites (backlinks).
• Contribute to online conversations about (niche
area).
• Obtain speaking engagements.
IVE (5) MARKETING GOALS

3. Lead Generation and Conversion

(prospects) -A lead is any person who
indicates interest in a company's
product or service in some way, shape,
or form.
• Generate leads.
• Generate more qualified leads.
• Nurture and engage qualified leads.
• Improve lead conversion rate.
• Address and overcome prospect
objections.
• Drive email subscriptions.
IVE (5) MARKETING GOALS

4.Boost Sales (customers,

partners, influencers) – build
and manage customer
relationship.
• Deepen loyalty with existing customers.
• Cross-sell and expand sales to existing
customers.
• Enhance customer relationships.
• Attract strategic partners.
• Improve stakeholder relations.
• Create customer advocates.
• Increase positive customer reviews/ratings
IVE (5) MARKETING GOALS

5. Empower Colleagues
(employees, prospective
employees) - how well your
communication has been received
and understood internally.
• Improve internal communications.
• Attract potential job applicants.
• Increase exposure through staff
use of social media.
• Provide communication channels
for feedback and ideas.
 Traditional marketing

Traditional marketing refers to any type of

marketing that is not online. This means
prints, broadcast, direct mail, phone, and
outdoor advertising like billboards. From
newspapers to radio, this method of
marketing helps reaches targeted audiences.
 Traditional marketing

Traditional marketing is a long-established

approach to marketing wherein marketers
seek to attract customers to a specific
product or service through whatever means
of promotion, advertising, or campaign that
have been in use of decades and has a
proven success rate.
 Traditional marketing

Traditional media are used in conveying

marketing messages. Its main categories are
as follows:
• Print
• Broadcast
• Direct mail
• Telemarketing
CONCEPTS OF TRADITIONAL

MARKETING
Production concept focuses on
the internal potentials of the
company and not based on the
desires and needs of the market.
CONCEPTS OF TRADITIONAL

MARKETING
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.
CONCEPTS OF TRADITIONAL

MARKETING
Marketing concept 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.
CONCEPTS OF TRADITIONAL

MARKETING
Relationship concept/marketing is
an approach that centers on
maintaining and improving
value-added long-term relationships
with current customers, distributors,
dealers and suppliers.
CONCEPTS OF TRADITIONAL

MARKETING
Societal Marketing Concept
views that organizations must
satisfy the needs of consumers
in a manner that gives for
society’s benefit.
CONTEMPORARY APPROACHES TO

Contemporary marketing refers to theories that

MARKETING
stress the importance of customer orientation
versus the traditional market orientation. They are
strategies that, when implemented, offer greater
support for their client base with a product range
that varies depending on what the target market
desires. In contemporary marketing, the Inbound
marketing approach is widely used.
CONTEMPORARY APPROACHES TO

Inbound
MARKETING marketing is a technique for drawing customers to
products and services via content marketing, social media
marketing, search engine optimization and branding. It
improves customer experience and builds trust by offering
potential customers information they value via company
sponsored newsletters, blogs and entries on social media
platforms. It utilizes the pull marketing as an opposite to the
traditional way. This allows potentials customers to find the
company instead of the unlikely customers being interrupted.
CONTEMPORARY
MARKETING
THEORIES
Co-creation
This theory suggests creating a bridge
between customer and business through
gamification; allowing them to take part in the
development process of their products. A
practical example would be attracting customers
through social media content relevant to their
needs or writing article blog posts that have
useful information.
Shared value.
This theory suggests creating a bridge
between customer and business through
gamification; allowing them to take part in the
development process of their products. A
practical example would be attracting customers
through social media content relevant to their
needs or writing article blog posts that have
useful information.
KINDS OF CONTEMPORARY

MARKETING
PERSON MARKETING Person marketing
entails endeavors aimed at cultivating
the attention, interest and preferences of
a target market toward a celebrity or
authority figure.
KINDS OF CONTEMPORARY

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.
KINDS OF CONTEMPORARY

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.
KINDS OF CONTEMPORARY

MARKETING
EVENT MARKETING is the sport, culture
and charity activities to selected target
markets. It consists of different sponsors
from different companies to support such
activities and also serves as public
awareness.
KINDS OF CONTEMPORARY

MARKETING
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 environmental friendly or
produced in an environmentally friendly way.
KINDS OF CONTEMPORARY

MARKETING
DIGITAL MARKETING is the component of
marketing that utilizes internet and online
based digital technologies such as desktop
computers, mobile phones and other
digital media and platforms to promote
products and services.
 Defining
Relationship Marketing

12 – ABM: Principles of Marketing

Relationship Marketing
According to Gilaninia et al (2011),
Relationship Marketing involves
creating, maintaining and enhancing
strong relationships with customers and
other stakeholders. Increasingly,
marketing is moving away from a focus
on individual transactions and towards
a focus on building value-laden
relationships and marketing networks.
Relationship Marketing
Relationship marketing is oriented more
towards the long term. The goal is to deliver
long- term value to customers and the
measure of success is long-term customer
satisfaction. Relationship marketing requires
that all the company’s departments work
together with marketing as a team to serve
the customer. It involves building
relationships at many levels – economic,
social, technical and legal – resulting in
high customer loyalty.
 Levels of
Relationship Marketing
Basic
The company salesperson sells
the product but does not follow
up in any way.
Reactive
The salesperson sells the product
and encourages the customer to
call whenever he or she has any
questions or problems.
Accountable
The salesperson phones the
customer a short time after the sale
to check whether the product is
meeting the customer’s
expectations. The salesperson also
solicits from the customer any
product improvement suggestions
and any specific disappointments.
This information helps the company
continuously to improve its offering.
Proactive
The salesperson or others in the
company phone the customer
from time to time with
suggestions about improved
product use or helpful new
products.
Partnership
The company works continuously
with the customer and with other
customers to discover ways to
deliver better value.
 Concept of
Relationship Marketing
Forbes.com defined Relationship
marketing is a strategy designed for
customer loyalty, interaction, and
long-term engagement to be
fostered. It is designed to develop
strong connections with customers by
providing them with information
directly suited to their needs and
interests by promoting open
communication
Customer Relationship
Customer relationship is the
development of an ongoing
connection between a company and
its customers. The relationship involves
marketing communications, sales
support, technical assistance and
customer service. Customer relationship
is a big part of marketing. Relationship
marketing is an interaction with current
customers and potential ones.
According to Serrano, Relationship
Marketing includes activities
aimed at developing and
managing trusting and long-term
relationships with larger customers.
(Customer profile, buying patterns
and history of contacts are kept in
a sales database)
 Benefits of
Relationship Marketing
In the business world, retaining
customers has a lesser cost at
least eight times compared to
acquiring new ones. Thus, this
marketing capitalizes on the
same fact and is beneficial to
the company in several ways.
A. Understanding Customer
Characteristics
- the company can segregate its
customers into groups based on their
characteristics like purchasing power,
frequency and volume of sale
transactions. It also helps the company
get valuable feedback from its
customers and understand their needs
and expectations.
B. Delivery and Meeting
Expectations
if the company knows what its
customers’ needs are, it will help
reduce wastage due to trial and
error methods. It is easier to create a
product if the features and
specifications of the product are
known
C. Repeat Business

Sellers should maintain good attitude

to the buyers. By doing this, buyers
will feel that they do not need to
switch sellers.
D. Prevents Negative Transition

Trust and loyalty go hand in hand

and it is super beneficial for all
business. It will help prevent
customers from turning to
competitors.
E. Word-of-Mouth Marketing
Increasing customer base - satisfied existing
customer is 100% more likely to recommend a
product/service to a prospective customer.
Apart from customer, referrals, there are several
other ways to increase customer satisfaction by
employing methods of utilizing social networking
websites, blogs, informal surveys, benefits on
loyalty cards, timely response to complaints and
requests as a constant reminder of its presence
around and retention equity is improved by
enhancing customer satisfaction.
F. Reduced Marketing Cost
benefits also include lesser marketing costs
and more value creation. This can be
explained by stating the following statistics:
every 5% increase in customer retention can
increase a company’s annual profits from at
least 25% to as much as 125%, while
simultaneously leading to a reduction of 10%
in marketing costs. An existing customer will
spend 33% more than a new customer to
buy a company’s product/service.
G. Identification with the company
the benefits are reaped both by the
company and the customers. It helps
customers identify more with the
company. Keeping your communication
lines open and keeping in touch with the
customers makes them feel like they are
being valued. It will keep customers
coming in and build brand equity for the
company in the long run.
H. Product Market Expansion

the company’s employees must be

ready to deliver beyond the
company’s boundaries on customer
demand.
Building Customer
Value
Customer value
defined as the satisfaction derived from
what a customer may experience or
expect by choosing a particular action
relative to the cost of that action. The
action can be a purchase, a visit, an
order, or a sign up. The cost refers to
anything that can be given up to
receive the desired product or service
which can be in the form of money,
time, knowledge, data or others.
Levels of Customer
Value
Basic and expected levels
These levels include the basic
requirements of conducting a
business. For instance, restaurants are
expected to have a spacious dining
area and clean tables and utensils. If
these requirements are not met by
the business, it cannot provide high
quality customer value
Desired customer value
This involves what the customers want
from the purchase or service
experience. This is the first opportunity
for a business to get ahead of the
competition. For example, a retail
shop can provide friendly and helpful
staff who can assist the customers in
making the right choices.
Unanticipated customer value
It pertains to an unexpected
purchase or service experience that
may go beyond what the customers
desire. For example, in a gasoline
station, the gasoline boy cleans the
window after filling up the customer’s
gasoline tank without an extra
charge.
 Types of
Customers
Strangers
are customers whose needs do
not fit the company’s offerings.
The company does not need to
invest and exert effort to win them.
Butterflies
as the name implies, are not loyal
to specific brand because they
keep on looking for the best deals
which may lead to patronizing
other brands. The company can
enjoy profits from these customers
only for a short period.
True friends
have needs that match the
company’s offerings. They make
repeat purchases and patronize the
brand as long as it satisfies their
needs. The company must invest in
these customers and strengthen its
relationship with them.
Freeloaders
are loyal but not profitable because
of the limited fit between their needs
and the company’s offering. For
example, a few customers of a salon
patronizes its services regularly but do
not generate enough profit to sustain
the maintenance costs, it can earn
only if it raises the prices of its services.
 Relationship
Development
Strategies
Relationship Development Strategies
Recent research shows that loyal
customers prove to be more profitable
than ordinary customers. This is the
reason why companies are challenged
to maintain customer loyalty.
Companies should practice the
following relationship development
strategies to retain loyal customers:
 1. Communicate with
customers frequently and
effectively
It is important to always get in touch with
customers through e-mail and social
networking sites especially in the new
normal situation. Provide various means
to give immediate feedback (e.g.,
online customer surveys).
2. Offer customer rewards.
Customer loyalty programs, which
include special discounts, freebies,
perks, may work well for various types
of products and services. These
encourage customers to remain loyal
to the brand because they are
rewarded for their patronage.
3. Conduct special events
and provide sponsorship.
Companies can hold or sponsor
parties, concerts, contests, and
the like to boost interaction
among loyal customers and
company representatives.
 4. Enhance customer
service.
Some company outsource their
services to third party
organizations to cater complaints
and inquiries, promote their latest
offerings and provide technical
support.
5. Utilize languages to reach
a wider customer base.
Marketers can create promotional
materials in different languages to
cater specific regions. Consumers
can also now choose the language
they would like to use to
communicate with customer service
representative.
Customer Service in
the Philippine
Business Enterprise
 Customer Service in the
Philippine Business Enterprise
The success of our homegrown
companies lies not just on their
offerings but also on their customer
service. Local business now utilizes
customer service tools that fit our
customer-oriented culture and
extensive technology usage
 1. Email and SMS
also help businesses
communicate with their
clientele more easily as
most consumers regularly
check their inboxes.
 2. Social Networking sites
aside from their primary function of
connecting people, have become
a channel for netizens to ask for
customer support. Telecom Companies
promptly responds to
inquiries and complaints on social
media and redirects the customer to
the site’s private messaging
system for further assistance.
 3. Live chat support
facilitates real time
correspondence between
customer and the company
representative.