BUSINESS

MARKETING
Abigail Geronimo
UNIT 1
MARKETING
PRICIPLES AND
STRATEGIES

Lesson 1
The Concept of Marketing
LEARNING OBJECTIVES

At the end of this lesson, you should be able to do the following:

● Recall the definition and importance of marketing.
● Identify the marketing mix of a business.
● Propose business strategies based on the marketing process.
What is Marketing?
• Marketing used to be associated with the business activity of telling
and selling.
• according to Philip Kotler, a well-known marketing author, he
defined marketing as “a social and managerial process by which
individuals and groups obtain what they need and want through
creating and exchanging products and value with others.”
• It is the process of establishing and maintaining successful
customer relationships.
 Why Study Marketing?
1. Marketing explores customer behaviors and journeys and
uses these data to make insightful and intelligent business
decisions.
2. Marketing helps you get to know your customers better using
strategies that do not employ a one-size-fits-all approach.
3. Marketing provides you the ability to influence the decisions
and purchasing behaviors of your target market.
Perception—the way customers view a product or service.
Why Study Marketing?
4. Marketing also helps you analyze and interpret data to track
your progress towards attaining business objectives
5. Marketing lets you monitor and listen to the market.
Who does Marketing?

• Everyone does marketing: individuals, groups, nonprofit

organizations, and businesses.
• Although everyone does marketing, not all do a specific type of
marketing.
 The Marketing Process
The marketing process guides companies in creating value for their
customers and building strong customer relationships.
Understand the market and the customers’ needs
and wants
• The market refers to the area or arena where buyers and sellers
meet.
• Needs include necessities that people need to survive, like food,
clothing, and water.
• Wants are needs based on an individual's personality or culture,
like a hamburger or a pair of jeans.
• If people can afford to meet their wants, eventually, demand forms.
 Design a Customer-Driven Marketing Strategy

• The target market is the group of consumers likely to purchase your

product or avail of your service.
• Buyer persona - a sample representation of your ideal customer.
• The brand's unique selling proposition (USP) consists of features that
make a brand better than its competitors
• Brand’s market offering - the combination of products, services,
information, or experiences to satisfy consumers' wants or needs.
Construct an integrated marketing plan that
delivers superior value
• The marketing plan aims to communicate its USP, make
the brand known, and get the word out there.
 Build profitable customer relationships and create
customer delight
The fourth stage of the marketing process deals with customer value and
satisfaction and customer engagement.
Customer engagement is encouraging your customers to interact and share
experiences with your brand. Some of the common examples include, but are not
limited to:
● posting content on social media platforms;
● creating customer support;
● organizing product launches; and,
● asking for customer feedback.
 Capture value from customers
• The fifth stage of the marketing process involves capturing
value from customers through a sale.
• Businesses want to increase customer equity or the total
combined customer values of the company's current and
potential customers.
Components of a Marketing Plan
• product
• price
• place
• promotion.
 PRODUCT

• A product is a good or service that a business provides to its

consumers. A product should, in theory, satisfy existing consumer
demand. Alternatively, a product could be so attractive that buyers
believe they need it, resulting in new demand.
 PRICE

• Price refers to the amount customers pay to purchase a product or

avail of a service. For marketers, pricing must consider the
product's actual and perceived worth, supplier costs, seasonal
factors, and competitor prices. Businesses may raise the price to
give the goods the illusion of luxury items in specific situations.
On the other hand, they may reduce it to encourage more people
to try the product or service.
 PLACE

• Place refers to the area or space where the business sells product
and the strategies to get it to the market. The strategy's ultimate
goal is to bring the product items in front of the customers against
other competitors.
• Place also refers to placing a product in certain stores or on a
specific store's display. Nowadays, place can also mean putting
products in an online shop or an e-commerce website.
 PROMOTION

• Promotion includes advertisements, public relations, and

awareness strategies. It shows consumers why they need a product
and why they should spend a given price for it. Marketers usually
combine promotion and placement aspects to reach their target
audiences
MARKETING MIX

The marketing mix forms part of the overall marketing plan

that defines the goals, objectives, and strategies for bringing
a new product or service to the market.
LESSON 2
GOALS IN MARKETING
LEARNING GOALS

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

• ● Identify the components of marketing goals and objectives.
• ● Plan marketing goals, objectives, and key performance
indicators.
• ● Discuss the importance of establishing marketing goals.
What is the benefit of
transforming overall goals
into attainable objectives?
Developing Marketing Goals

Effective marketing requires a well-thought-out, well-informed

marketing plan; however, establishing marketing goals and
objectives is the beginning of a successful marketing plan. The
inception of a marketing plan should consist of the following:
mission statement, vision statement, core values, goals and
objectives, and key performance indicators (KPIs).
MISSION STATEMENT

A mission statement explains the company’s purpose and primary

goals. An excellent mission statement is clear, meaningful, and
inspiring. It is stated in a brief but impactful manner and is written
in the present tense. Furthermore, a company should communicate
its mission statement to every stakeholder
Creating a mission statement consists of the following steps:
1. Develop a unique selling proposition (USP) to establish the
company's "winning idea" against its competitors. The USP
attracts customers and distinguishes a company from other
companies that offer similar products or services.
2. Clarify the company's goals and list the most critical success
indicators.
3. Combine the "winning idea" and the company's goal to develop a
clear statement that conveys the company's purpose, outcomes, and
metrics.
VISION STATEMENT

A vision statement expresses what the business aspires to

become in the world. It articulates the outcome that it
envisions through the achievement of its mission statement.
Vision statements are ideal long-term goals and are
evergreen; meaning, even if the organization's strategy
changes, the vision generally remains constant.
Creating a vision statement consists of the following steps:
1. After defining the mission statement, determine the business’s human worth or
purpose. Organizations must consider these questions: "How does your
business make a difference in people's lives?" and "What can your business do
to make the world a better place?“
2. Determine the values that matter most to the organization, its customers, and
other stakeholders. Companies must refine these values to select what they
possess or should possess.
3. Combine the ideas on the business’s human worth and the company’s values to
form a statement that could inspire individuals within and outside the
organization. The message should be timeless and should explain why the people
in the company do what they do.
CORE VALUES

Company values or core values are a collection of guiding principles and essential beliefs
that empower individuals to operate as a team toward a common business goal. Having a
defined set of company values guarantees that all employees are guided in their work
toward the company's goals.

Core values are guiding principles that help shape the company's mission and support its
vision. They also influence the company’s culture and have an impact on its business
strategy.
Goals and Objectives

• A goal is a broad aim established to start the business

planning process, while an objective is a specific
milestone reached to achieve a goal (Root 2016). While
goals provide an overall vision, objectives concentrate on
specific, attainable achievements.
SMART Marketing Objectives
• 1. Specific: Objectives are clear and detailed, leaving no
room for confusion or misinterpretation. Organizations
consider the five Ws (who, what, when, where, and why) in
developing their objectives.
• 2. Measurable: Objectives specify the metrics to assess the
organization’s performance. Organizations should be able
to measure their progress through the use of units, numbers,
and figures.
• 3. Achievable: Objectives set targets that the team could accomplish.
Organizations consider its resources, opportunities, and capabilities to
determine attainable milestones.
• 4. Relevant: Objectives align with the individual and organizational goals.
Organizations design worthwhile activities that directly address their current
needs and advance their progress toward achieving their aims.
• 5. Time-bound: Objectives are set to be accomplished in a given date,
timeframe, or deadline. The time element expresses the long-term and short-
term objectives as well as the priorities at any given time. Through this,
organizations can periodically assess their performance and progress.
Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are quantifiable measures that

organizations use to describe their performance and track their
progress against a specific objective or target. While objectives
define the desired long-term and short-term outcomes, the KPIs
demonstrate how effectively these outcomes have been achieved.
Effective planning usually sets five to seven KPIs to oversee and
track. Here are some of the elements that comprise a structured
KPI:
● measurement: Quantifiable outcome expected
● target: Period when to achieve the objective
● data source: Means to get the data to be analyzed
● reporting frequency: Period when to monitor progress
Common Marketing Goals

The overall goal of marketing is to establish and maintain

profitable customer relationships.
This broad aim is broken down into specific marketing
goals:
ACQUIRE NEW COSTUMER

Customer acquisition is the process of drawing in new customers or

clients. This process aims to create a systematic, sustainable
acquisition strategy that evolves with recent trends and changes.
In acquiring new customers, companies follow a road map called
the buyer's journey—the process in which buyers become aware,
consider, and decide to buy a product or avail a service.
RETAIN COSTUMERS

Customer retention refers to the activities and efforts made

by companies and businesses to increase customer loyalty.
Customer-retention programs aim to assist businesses in
retaining as many customers as possible, generally through
customer-loyalty and brand-loyalty activities.
UPSELL AND CROSS-SELL
• Also known as suggestive selling, upselling is the activity of
persuading customers to buy an upgraded or more expensive
version of a product or service. This sales tactic maximizes profit
and provides better customer experience.
• Cross-selling is a sales approach that encourages customers to
spend more by recommending a product related to the one they
are already purchasing
INCREASE COSTUMER SATISFACTION
Bear in mind that the key to increased customer satisfaction is
consistency in providing positive customer value. Although
customers perceive value differently, the product or service
performance should consistently exceed their expectations. This
way, customer value is positive and high.
LAUNCH NEW PRODUCTS

• A product launch is a coordinated effort to bring a product to

market and announce it to the public. The marketing plan outlines
the messaging and marketing strategy for effectively convincing
customers to adopt the new product.
IMPROVE PRODUCT POSITION

Product positioning is the strategy of deciding and presenting how

the market sees, thinks, or feels about the company’s product
compared to the competing ones.
Product positioning affects all aspects of branding and influences
how businesses present and share their product and service to the
public. It also affects how the people in the entire organization
communicate the brand
Lesson 3 Traditional
Approaches in Marketing
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.
Marketing Concepts
• 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.
Production Concept
• The production concept is considered one of the
oldest philosophies in marketing. It assumes that
consumers favor products that are widely available
and more affordable than others.
• The production concept leads companies to focus on
improving their production and distribution
effectively and efficiently.
Product Concept
• The product concept assumes that consumers prefer and
patronize products that offer the highest quality,
performance, and features.
• Business organizations that utilize this concept devote their
time and resources to make continuous product
improvements. The product concept leads companies to
focus on innovation, enhancing the product attributes, and
improving its features to be ahead of the competition.
 The Selling Concepts
• The selling concept assumes that consumers will not buy a product
unless the company engages in a large-scale selling and promotion
effort.
• The selling concept leads companies to conduct aggressive selling
and promotional efforts to persuade timid customers in their target
market. It aims to sell what has been produced rather than provide
what the market needs and wants.
• This concept is beneficial when the company's products are
considered unsought goods
Lesson 4
Contemporary Approaches
in Marketing
Learning Objective
At the end of this lesson, you should be able to do the
following:
● Define the contemporary approach to marketing.
● Determine the appropriate type of contemporary approach
in a given scenario.
● Explain the importance of the contemporary approach in
marketing.
Knowing Your Customers

As technology advances, marketing the products have

also changed. Businesses now focus on understanding
consumer behavior in purchasing products through
market research
How do contemporary
approaches impact the marketing
strategies of businesses today?
Contemporary Approach in Marketing
Today, the marketing approach has shifted from product-based
to customer-focused. Hence, contemporary approaches in
marketing refer to theories and concepts that stress the
importance of customer orientation versus the traditional
market orientation (Williamson, 2021)
 The Marketing Concept
• The marketing concept defines the contemporary approach in
marketing. The marketing concept seeks to find the right product for
customers. Thus, it leads companies to exert all their efforts towards
satisfying their customers, in exchange for profit (Perreault, Cannon,
and McCarthy 2017).
• According to Theodore Levitt, the main idea of the marketing concept is
to satisfy the customers through the product and the product experience,
or the package of all things associated with creating, delivering, and
consuming the said product or service (Kotler, et. al. 2018)
Other organizations establish a more long-term goal of
success, i.e., the triple bottom line. The triple bottom line
refers to the measure of economic, social, and
environmental outcomes. Businesses who aim to achieve
this actively seek economic profit while taking care of their
people, the community, and the environment.
Types of Contemporary Marketing
Non-profit marketing

• 1. Non-profit marketing uses tactics and strategies to amplify an

organization's cause and mission, solicit donations, and attract
volunteers and supporters (Decker, 2021). It is for non-profit
organizations like homes for the aged, children's orphanages, and
helping humanity. These organizations do not see sales as an end
goal but to increase awareness for funding on the given non-
profitable causes.
Celebrity Marketing

• Celebrity marketing uses celebrities or famous

people to influence consumers to feel aspirational
about a particular product.
Place Marketing

• 3. Place marketing's purpose is to attract tourists and locals

alike. Although this type of marketing has existed for a
while, this modern approach is changing
Cause Marketing

• Cause marketing aligns a brand with a cause to produce

profitable and societal benefits for both parties.
Event Marketing

• Event marketing is a strategy that includes live and/or

virtual events where audiences interact with a product or
service.
Green Marketing

• Green marketing is advertising products or services based

on their environmental benefits. These concepts may be
environment-friendly on their own, or they may have been
produced in an ecofriendly way
SPECIAL TOPIC:
DIGITAL MARKETING

With the existence of the internet, there is one type of

marketing relevant for marketers today— digital
marketing. It is advertising through search engines,
websites, social media, email, and mobile apps (Marketo,
2021).
How Digital Marketing Affects Us
Digital marketing is unique because we can do it
simultaneously with other advertising channels. With the
eminent digital age coupled with the new normal,
businesses are now turning online to keep themselves afloat.
It also challenges marketers since new digital channels and
devices are invented faster.
Common Digital Marketing
Channels
Paid and unpaid SEO.
• According to Search Engine Journal, SEO or Search
Engine Optimization is the process of optimizing a site and
its content to establish higher 5 visibility in search engine
results (Maryville, 2021). It is an essential tool because
people search for anything through search engines.
Social media marketing.

• It is the use of different social media platforms to

market products or services
Content marketing.

• It comprises visual and written communication (e.g., blog

posts, memes, and videos) to promote a business, brand, or
product (Maryville, 2021).
Email marketing
• It is a form of marketing that can make the
customers on a business' email list aware of new
products, discounts, and other services. It can also be
a way to send any updates and exclusive promos to
them.
Mobile marketing
• It pertains to any advertising activity promoting
products and services via mobile devices, such as
tablets and smartphones.
• For both online and offline marketing, it is essential to
measure the effectiveness of a marketing campaign. To do
this, marketers use marketing analytics — the practice of
managing and studying metrics data to determine the return
of investment of different marketing efforts like calls-to-
action (CTAs) , blog posts, and channel performance to
identify opportunities for improvement.
• With the eminent digital age coupled with the “new
normal,” businesses are now turning online to keep
themselves afloat. It also challenges marketers since
new digital channels and devices are invented faster.
Brands and companies are using the power of digital
(and of different touchpoints) to attract customers to
use their products or services.