Principles of MKTG Module Jan 11-29

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NOTRE DAME OF NEW ILOILO, INC.

A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]

SUBJECT: PRINCIPLE OF MARKETING GRADE LEVEL: ELEVEN


QUARTER: THREE WEEK: THREE [January 11-29, 2021]

I. OBJECTIVES: At the end of the lesson, students are expected to:


1. Undertstand the concept goals of marketing;
2. Explain the marketing process
3. Enumerate the classification of products/share
4. Discribe the traditional approaches to marketing;
5. Identify contemporary approaches to marketing;
6. Differentiate product marketing from marketing services; and
7. Compute the market share

II. PRE-ASSESSMENT
A – Direction: From the pool words inside the box, choose the appropriate
term for each description below.
Satisfaction Market share Durable Undifferentiated goods
Consumer goods Branding Current demand Primary demand
Brand equity Marketing Consumable

___________ 1. It is a form of communicating or promoting the value of a


product, service, or brand to the consumers.
___________ 2. These are goods that are purchased for personal
consumption and/or for the household use.
___________ 3. These are products whose physical characteristics are so
identical, that it would be difficult, if not impossible, to
distinguish one purchased from one vendor or another.
___________ 4. This is the availability of manufacturers to successfully
distinguish their products from other competitors.
___________ 5. This is the appreciation in a brand’s value from the point of
view of customers.
___________ 6. It is a product whose benefit can only be used by a
consumer for a short period of time, sometimes only a few
minutes.
___________ 7. These are products that are manufactured to last a long
time.
___________ 8. It refers to the total demand for all brands of a particular
product or service.

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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
___________ 9. The number of people of a particular market at present
that would actually purchase the product or service offered.
___________10. This refers to measure of how well customer expectations
from a purchased product or service have been met.
III. CONTENT/ DISCUSSION/ INFORMATION
Module 1: Marketing Principles, Goals and Approaches
Lesson 1.1: Marketing Defined and understand the goals of marketing
and marketing Process

Marketing is a form of communicating or promoting the value of a


product, service, or brand to the consumers. Prior to the marketing of
specific products and/or services, a marketing company conducts a through
analysis of the external environment, the market, its competitors and
customers, and an incisive audit of its internal characteristics.
Marketing Defined
Marketing is a form of communicating or promoting the value of a
product, service, or brand to the consumers. The “by word of mouth”
marketing may be the simplest, oldest, and most natural way of marketing
a service or a product for profit and non profit purposes. Marketing for profit
aims to increase sales of products or services while marketing for nonprofit
purposes. Marketing for profit aims to communicate messages for social
purposes, such a health and public safety information disseminated by the
government.
The American Association (AMA) defines marketing as “the activity, set
of instructions, and process for creating, communicating, delivering, and
exchanging offering that have creation, communication, and the delivery of
value to customers.
The key to this definition of marketing is the word “value.” Thus,
marketing can be summarized as the creation, communication, and the
delivery of value to customers.
Alternately, the Philippines Marketing Association (PMA) defines
marketing as a “science and profession guided principally by the universal
principles of ethics, corporate citizenship, and corporate social
responsibility.
This definition emphasizes an adherence to ethical principles, corporate
citizenship, harmful to one’s health and well-being or promote violence and
immortality. Products or services that serve no purpose or contribute
nothing to individual and societal well-being should not be marketed.
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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
GOALS OF MARKETING
The goals of marketing can be summarized as follows:
1. Understand the market and its consumers, ans satisfy their changing
needs and wants.
2. Introduce and innovate products and services that improve human
condition and the quality of life.
3. Design and implement effective customer-driven marketing strategies.
4. Develop marketing programs that deliver superior value to
consumers.
5. Build and maintain mutually beneficial and profitable customer
relationships.
6. Capture customer value to create profits.
7. Promote value transactions with full regard to the well-being of
societies.

The Marketing Process


The marketing process can be illustrated in the following diagram:
Figure 1: The Marketing Process

Before marketing products and/or services, the organization must have


a thorough analysis of the external environment, the market, its competitors
and customers and an incisive (perceptive) audit of its internal operating
characteristics. This is followed by the formulation of relevant marketing
strategies coupled with a calibrated response using the elements of
marketing (commonly known as the 4P’s). As soon as the marketing
strategy is implemented, regular monitoring takes place in order to identify
deviation and, if necessary, make adjustments to any or all elements of the
marketing mix.

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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
Products, Services, and Experiences
What do organizations market? As consumers, we are most familiar with
the marketing of goods and services. Order than these, however, marketing
organizations also market experiences, ideas, advocacies, and even
personalities.
The Three Product Level
Consumers often think that a product is simply the physical item that he
or she buys. In order to actively explore the nature of a product further, let’s
consider it as three different products – the CORE product,
the ACTUAL product, and finally the AUGMENTED product. This concept
is known as the Three Levels of a Product.
Figure 2: Product Levels

The CORE product is NOT the tangible physical product. You can’t
touch it. That’s because the core product is the BENEFIT of the product
that makes it valuable to you. So with the car example, the benefit is
convenience i.e. the ease at which you can go where you like, when you
want to. Another core benefit is speed since you can travel around
relatively quickly.
The ACTUAL product is the tangible, physical product. You can get some
use out of it. Again with the car, it is the vehicle that you test drive, buy and
then collect. You can touch it. The actual product is what the average
person would think of under the generic banner of product.
The AUGMENTED product is the non-physical part of the product. It
usually consists of lots of added value, for which you may or may not pay a
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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
premium. So when you buy a car, part of the augmented product would be
the warranty, the customer service support offered by the car’s
manufacturer and any after-sales service. The augmented product is an
important way to tailor the core or actual product to the needs of an
individual customer. The features of augmented products can be converted
in to benefits for individuals.
Features and benefits of products
Features and benefits of a product are also relevant to the three levels
of the product. Products tend to have a whole series of features but only a
small number of benefits to the actual consumer.
Let’s look at this another way, if you buy a Nintendo console it has many
features; for example you can play games alone or you can play against
another opponent or two or three opponents. You can also have access to
the Internet. Avatars are adaptable so you can create yourself and your
friends. These are all examples of features to the consumer. However a
consumer may buy it because he or she wants to stay fit and will use
software and peripherals to become healthier. Becoming healthier is the
benefit to the consumer.
The consistent marketer will aim to discover the consumer’s preference for
benefits and will match individual features to the preference. That is why
professional salespeople for example, often ask many questions whereas a
novice salesperson will just tell you the features of the product

Classifications of Products/Goods
Products that are marked can be generally classified according to use,
differentiation, types, and durability.
Figure 3. Classification of Products/Goods

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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
According to Use: Consumer and Industrial Goods
When classified according to use, products/goods can either be
consumer goods or industrial goods.
Consumer goods are goods that are purchased for personal
consumption and/or for household use. Examples of these are instant
noodles, biscuits, milk, detergent soap, shampoo, and other similar items.
On the other hand, industrial goods are purchased in order to make
other goods, to serve as a raw material or input in the production of other
goods. Typical examples are aluminum (used to manufacture kitchen
equipment and cans) and electronic cables and wires (serve as electrical
conduits for home appliances) among others.
It would not be possible to say, however, that a product is always a
consumer good or an industrial good. A good that is ordinarily a consumer
good can also be used as an industrial good, and vice-versa. For example,
when a consumer buys sugar from the supermarket and uses this sugar to
sweeten his/her coffee, the sugar in this particular case is a consumer
good. However, if the sugar is added to flour, chocolate syrup, eggs, and
walnuts to make brownies and eventually sold, the sugar in this case is an
industrial good.
In other words, physical characteristics alone cannot determine whether
a product is a consumer good or an industrial good. One should also
consider how the product is ultimately used.
According to Differentiation: Undifferentiated and Differentiated
Goods
Undifferentiated goods are products whose physical characteristics
are so identical, that it would be difficult, it not impossible, to distinguished
one purchased from one vendor or another. Most undifferentiated goods
are products that sourced from nature.
A typical example of an undifferentiated good is rock salt. When a
housewife goes to the wet market to purchase rock salt from two different
vendors, determining which one came from one vendor or the other is a
challenge. Salt bought from the two different vendors looks, feels, and
tastes identical.
On the other hand, differentiated goods are varied in their
characteristics and features that make them distinguishable from one
another. If there are white-colored vehicles of each model from all local car
manufacturers parked side by side, the Toyota Fortuner would still be
readily distinguishable from the Mazda 3, the Nissan Sentra, the Honda
Civic, and from the other vehicles in the parking area. This is because each
manufacturer and car model has varying appearances and features. The
appearance of the Toyota Fortuner is different from mitsubishi’s Montero
Sport. They have different grill designs, headlights, body heights, hoods,
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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
ground clearance etc. The ability of manufacturers to successfully
distinguish their products from other competitors is called branding.
Branding provides a product or service a unique distinguishing name, logo,
symbol, or image which is used to differentiate it from other similar products
and services.
Why do some manufacturers brand their products, while others do not?
The major reason is cost. When a company decides to brand its products, it
must recognize that there are two responsibilities that accompany
branding:
 All products carrying the brand must have quality consistency
 The brand must be advertised and promoted
The underlying reason why manufacturers decide to engage in branding
despite the cost is that they want the brand to be known and to be
preferred by customers, eventually creating and building brand loyalty. No
customer will patronize a brand whose quality is inconsistent. For a brand
to be known, it must be extensively advertised and promoted.
Once a brand acquires customer recognition, a positive market
reputation and goodwill, higher selling prices can be charged, larger sales
revenues are generated, and higher profit margins are realized. This is
because customers begin to attach value to the brand than to the product
itself. This appreciation in a brand’s value from the point of view of
customers is called brand equity.

According to Durability: Consumable, Semi-Durable, and Durable


Goods
Based on Durability, Products are either consumables, semi-durables, or
durables. Durability refers to the length of time a consumer can derive
benefit from the product or good purchased.
A consumable is a product whose benefit can only be used by a
consumer for a consumer for a short period of time, sometimes only a few

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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
minutes. For this reason, many mis-interpret consumables to exclusively
include food, drinks, and edible items. Although these are consumables,
non-edible items such as detergents and toiletris are also considered
consumables. The benefit one can derive from soap, for example(for
cleaning oneself) may only last few days.
On the other hand, semi-durables provide benefits to the consumer for
a longer period of time, usually spanning several months. Semi-durables
are manufactured for longer-term use by consumers. Examples of semi-
durables are clothes, shoes, belts, jackets, etc.
Durables are products that are manufactured to last a long time. They are
capable of providing consumers with years of beneficial use. Durables are
casually expensive, and many, therefore, require an augmented product to
market them effectively. Examples of durable goods are automobiles,
houses home appliances, customer electronics, furniture, sports
equipment, and toys.

According to Type: Convenience, Shopping, Specialty, and Unsought


Goods
Convenience goods are products that are purchased frequently, are
usually inexpensive, and do not require much purchase effort and
evaluation. Examples are newspapers, gum, and candy.
The key to the successful marketing of convenience goods is its
availability in as many retail outlets as possible, catering to consumer need
where and when it arises.
Shopping goods, on the other hand, are purchased less frequently
than convenience goods, are relatively more expensive, and require some
amount of information search and evaluation prior to purchase. Consumers
of shopping goods consider features, evaluate attributes, and compare
prices. Examples of shopping goods are shoes, clothes, and handbags.
The successful marketing of shopping goods depends on intensive
advertising, well-trained salespersons, and positioning company products
as superior alternatives to competitors’ products.
Specialty goods are goods that require an unusually large effort on the
part of consumers to acquire. Consumers are usually willing to travel great
distances to where these goods can be purchased. Examples are branded
luxury merchandise, works of art, automobiles, and homes. The successful
marketing of specialty goods require the promotion of strong brand image
and identities.
Unsought goods are goods that consumers seldom actively look for, and
are usually purchased for extraordinary reasons, such as fear or diversity,
rather than desire. Examples are investments, memorial plans, and life

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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
insurance. These goods require advertising and aggressive selling and are
usually marketed using highly-trained and persuasive salespersons.

Lesson 1.2: Marketing Approaches and Services


Market Services
The characteristics of the services differentiate the services from the
tangible goods.
The following are the characteristics of services:
1. Intangibility:
A Services are intangible and therefore cannot be touched, handled,
smelt or tasted (physical senses). This is because service itself is an
activity. A service however, can be experienced. A service also gives a
certain amount of satisfaction to the consumers. On account of the
intangibility, there is no ownership created in case of services. A service
can only be generated and used and can never be owned.
2. Perishability:
A service has to be consumed simultaneously with its production. A
service cannot be stored like a tangible commodity. Services are
perishable in terms of delivery and time. An empty seat on a plane never
can be utilized and charged after departure. Revenue once lost is lost
forever.
When the service has been completely rendered to the requesting
service consumer, this particular service irreversibly vanishes as it has
been consumed by the service consumer. Example – after the
passenger has been transported to the destination, he cannot be
transported again to the previous location at the previous point of time.
3. Inseparability:
Commodities once produced can be sold at a later point of time but in
case of services it is not possible. Examples – In the cases of services
of a doctor to his patient, teacher to his student, the simultaneous
presence of both-the producer of the service and the consumer of the
service at that point of time is absolutely necessary.
The service provider is indispensable for service delivery as he must
promptly generate and render the service to the requesting service
consumer. Therefore the service provider, the service itself and the
service consumer are inseparable.
4. Simultaneity:
Services are generated and consumed during the same period of
time. As soon as the service consumer has requested the service
(delivery), the particular service must be generated from scratch without
any delay. The service consumer instantaneously consumes the
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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
rendered benefits to satisfy his wants. Therefore the production and
consumption of services are always simultaneous.
5. Variability:
Each service is unique. Services lack homogeneity. Example – a
doctor treats two patients with similar ailments on the same day. The
level of satisfaction in the minds of these patients after the treatment will
never be the same. The difference is caused by factors such as the
mood of the doctor, the fatigue level of the doctor, the way the service is
perceived by the individual patient etc. There will a difference in the
service even if the same doctor treats the same patient on two different
occasions.
This is because the moods of the doctor and the patient do not remain
the same on both the occasions. No two units of service are identical even
if they are generated by the same person. Factors like quality control,
standardization etc. which can be very successfully implemented in case of
production of tangible goods cannot be applied in case of services.
Services always vary with each other.
No ownership is created in case of services. At the time of creating a
service or delivering a service, the service provider does not own the
service. He only owns the physical infrastructure necessary to create the
service. Similarly at the time of consumption or after the consumption, the
service consumer does not own the service. He only consumes the service.
After the consumption, the consumer has only the experience but the
service itself would have become non-existent. A service cannot be owned
by anybody because it is basically an intangible product.
Needs, Wants, and Demands
Consumer needs are defined as physiological necessities required for
human survival. These universal needs include food, shelter, and clothing.
Wants, on the other hand, are more psychological, indicating
preferences that can improve the consumer’s life condition. For example, at
noon, a consumer may have a sudden and uncontrollable need to eat. This
can be satisfied with food because eating is a need. However, the
consumer will not satisfy this need with just any type of food but will
consider what kind of food he wants. He will decide whether to have a
pizza, a doughnut, a sandwich, or a rice meal.

Market and Market Demand


Market is defined as the group of individual or organizational customers
who have both the willingness and financial capability to purchase a
particular product or service. Capability to purchase a product/service can
be variable as it can expand or contract depending on certain factors, e.g.
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A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
selling price. When a product’s or service’s selling price is reduced, even if
the number of individuals willing to purchase remain constant, the reduced
price may increase the number of individuals who can now afford to buy the
product or service.
Market demand is the total demand of all potential customers for a
specific product/service over a specific period in a specific market area.
Measuring Market Demand
Market demand can either be primary or selective. Primary demand
refers to the total demand for all brands of a particular product or service. It
is sometimes referred to as total industry demand. Selective demand, on
the other hand, is the demand for a specific brand of product or service.
Potential, Latent, and Current Demand
Potential demand emerges when there is no demand yet for a
particular product/service, but there exists a market with sufficient financial
capability to purchase.
An example of this is an example of potential demand can be education
courses where there is very low demand or no demand at all. Such cases
are very hard to counter.
Latent demand results when customers in a market are unable to
satisfy specific desires because no products/services exist in the market
that can satisfy them. It can also result when the product/service is
available, but is priced beyond their reach.
a smartphone brand’s success due to the company’s ability to close the
gap between the current product bought and the ideal product the customer
would like to use.
In order to satisfy latent demand, marketing organizations must:
 Introduce goods currently unavailable that are desired by
customers;
 Influence and persuade customers to reallocate their expenditures
towards the company’s product; or
 Offer credit, installment, or similar terms to make the product
affordable to customers.
Current demand is defined as the number of people of a particular
market at present that would actually purchase the product or service
offered. This can be measured in several ways, the most popular of which
is through “intent to buy” survey.
An example of current demand are seasonal products like umbrella, air
conditioners or resorts. These products sell irregularly and sell more during
season whereas their demand is very low during non-seasons.

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A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
Utility, Value, and Satisfaction
Utility refers to the total satisfaction consumers can receive from the
consumption of a product or service.
Value, on the other hand, refers to the value customers place on a
product or service. Since consumers have different needs and buying
capacities, consumers assign varying values on the same product or
service. The product with the highest quality does not always provide the
highest value for customers. The perception of value is affected by the cost
required to acquire the product or service.
Satisfaction is the measure of how well customer expectations from a
purchased product or service have been met.
To ensure maximum customer value and satisfaction, marketers must:
 Balance product or service quality and price.
 Establish consistency among product availability, level of customer
service, and efficiency.
 Create a buying atmosphere and deliver purchase convenience.
Customer-Perceived Value
Customer-perceived value is the quantitative difference between the
expected benefits and costs of a particular product or service in
comparison to a similar product or service. Customers rarely have an
accurate assessment of the value and cost of a product or service, and
make purchases based on their perception of its ability to satisfy his/her
needs and requirements.
To enhance their customers’ perceived value of products or services,
marketers advertise aggressively and invest heavily in highlighting products
features. In the case of cosmetics and personal care products, companies
invest heavily in packaging and labeling.
Some marketing organizations conduct marketing research to identify
the perceived values consumers attach to specific products/services.
Customer Value Proposition
A customer value proposition is a comparison of the benefits offered by
a company’s products to its customers in relation to the amount it is asking
customers to pay. Customers always ask question: “What’s in it for me?”
Marketing strategies enhance a product’s customer value proposition by
emphasizing key attributes of the brand in relation to competitors’ brands
and communicating to customers: ”Why us?”
Competition
A competitor is any company in n industry or similar industry that offers
a similar product or service.

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A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
Levels of Competition
A firm’s competition can be classified either as a desire, generic, form,
or brand competitor.
Figure 4: Levels of Competition

The most basic type of competition is desire competitors. For example,


eating is a “desire” or “need” that a customer wants to satisfy at a particular
time or occasion. This is identified and established first before the customer
starts thinking of a possible destination to satisfy his “desire” or “need”.
The customer then considers a number of available options. These are
the generic and form competitors (sometimes called “indirect”
competitors). Although these two levels a customer selects a chicken
sandwich instead of a hamburger, the hamburger fast food chain can no
longer generate revenue from the customer because:
1. The “desire” or “need” of the customer has already been satisfied and
he is no longer (for the moment) interested in food.
2. If the customer is on a limited budget, he/she may have already spent
his/her monetary allocation for food.
On the other hand, brand competitors are the most “direct”
competitors because they offer the same form of product the customer has
finally decided to consume.
The Concept of Market Share
The effectiveness of marketing strategies in an industry can be
measured using what is referred to as market share. Market share,
expressed in percentage, is the share of a company’s revenues divided by
the total revenues of its industry in a particular year.

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A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
Market share is calculated using the following formula:
Company A’s annual revenue
Company A’ Market Share - x 100
Total annual revenue of Company A’s Industry

Since sales revenue is the basis for determining market share,


companies often boost sales through product introduction and innovation,
price reduction, intensive advertising, and aggressive promotional efforts,
among other activities.
The company with the largest market share in an industry is the
industry’s market leader. Market leadership is aspired after by many
industry is the industry’s participants. Aside from the prestige, market
leaders usually lead the industry in price changes, advertising and
promotional intensity, and new product introductions. More often than not,
market leaders manufacture and market the largest number of product
units in an industry. They are likewise often the most profitable due to
production scale and distribution efficiency.
Traditional Approaches to Marketing
Evident up to the late 1960’s traditional approaches in marketing
focused on production methods, product quality, and effective selling
methods as profit drivers in marketing.
1. The Production concept
The Production concept assumes that customers prefer products that
are inexpensive, affordable, and widely available. Efforts are
concentrated toward expanding distribution, and improving production
efficiency. The objective is to lower production costs resulting in lower
process. However, this concept is relevant only if customer tastes and
preferences are stable and product demand is high.
2. The Product Concept
The product concept 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. While this may be important, too much
preoccupation on product quality may neglect the customer’s changing
needs.
3. The Selling Concept
The selling concept emphasizes aggressive selling and promotional
efforts. It assumes that customers are generally timid and must be
persuaded into buying. The objective is to sell what is manufactures
rather than manufacture what the market wants.

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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
Contemporary Approaches to Marketing
Marketing is all about understanding the needs and preferences of your
audience rather than serving them what the company has to offer. The
contemporary approach of marketing focuses on the customer and their
needs towards the product and the services. This theory is based on the
importance of traditional marketing orientation versus customer orientation.
They use different tactics and strategies to build a relationship with their
clients and targeted audiences.
Contemporary approaches to Marketing includes the following;
 Relationship marketing
 Industrial marketing
 Social marketing
Relationship marketing is a strategy that helps the brand develops a
strong connection with their customers. It helps the brands in forming long-
term bonds with their loyal customers. It is essential to maintain and
establish relationships with customers and other brands these days. It is
beneficial for brands as it helps them understand their audience in the long-
run.
Industrial marketing, also known as B2B or business-to-business
marketing is a branch of marketing which involves one business dealing or
marketing their goods and services to another business. Rather than the
customer base, the brands are targeting industrial customers in this type of
marketing. Long-term relations can be built if the industrial buyers are
adequately satisfied. However, the total number of business buyers will be
less in comparison to the number of customer buyers.
Social marketing is an approach of marketing which seeks to bring any
social change. It integrates marketing theories and tactics with other plans
to achieve social change. Social marketing is aimed at benefiting
individuals and different communities of society. Social marketing should
not be mistaken with social media marketing in any way. This approach
focuses on changing human behavior. This branch of marketing works for
the welfare of the people which helps the brands creates their positive
image in the eyes of the customer. Thereby, helping the brands create
long-term relations with their customers.
Contemporary approaches followed by organizations:
 Cause Marketing – It is the type of marketing in which a company and
charity team up together and spread awareness for a good cause. If
the campaign is successful, it can help in increasing the business
value for the company.
 Event marketing – It is the type of marketing in which marketers
conduct promotional events and promote their products and services

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NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
in those events. This involves face to face contact and helps in
increasing the credibility of the brand.
 Green marketing – It is the practice of marketing in which the services
and goods are marketed from their environmental benefits. Research
has shown that the customers are willing to pay extra for products
from companies which are concerned about the environment and
committed to sustainable development

IV. ASSESSMENT
A - Direction: Answer the following questions.
1. Marketing involves, among others, the delivery of value to consumers.
However, the value a consumer places on a particular products or service
is subjective. If you are a marketer, how can you increase customer’s
assessment of your product/service? Use a product/service of your choice
as an example.
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2. This is a common saying “All products sold involve the sale of service
to a greater or lesser extent. “Cite an example where product was sold
because of an accompanying service.
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16 | P a g e
NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]
B - Market share
Direction: Complete the table below by computation.

Solution:

C - Compare and Contrast


Direction: In a separate sheet of paper. Using Venn Diagram, Write the
similarities and differences of the traditional and contemporary
approaches to marketing.

17 | P a g e
NOTRE DAME OF NEW ILOILO, INC.
A Diocesan School
NEW ILOILO, TANTANGAN, SOUTH COTABATO
Tel. No. (083) 229 – 1113
Email Address: [email protected]

V. FEEDBACK
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