Principles of Marketing

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Marketing Principles and Strategies

Module 001 | Marketing Principles and

Strategies

“Marketing is the process of planning and executing the conception, pricing,

promotion, distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals.” The definition views marketing
as an exchange process or discipline that involves strategies, activities,
positions, and institutions.
Marketing are activities of a company associated with buying and selling a
product or service. It includes advertising, selling and delivering products to
people. People who work in marketing departments of companies try to get
the attention of target audiences by using slogans, packaging design,
celebrity ​endorsements​ and general media exposure.

Objectives:
1. Define and Understand Marketing
2. Enumerate the Importance of Marketing
3. Describe the Traditional Approaches to Marketing
Marketing a matter of common sense and more; the AMA definition “Doing
better than best is the essence of progress. And this holds for marketing as
well.”
The heart of your business success lies in its marketing. Most aspects of your
business depend on successful marketing. The overall marketing umbrella
covers advertising, public relations, promotions and sales. Marketing is a
process by which a product or service is introduced and promoted to
potential customers. Without marketing, your business may offer the best
products or services in your industry, but none of your potential customers
would know about it. Without marketing, sales may crash and companies
may have to close
History of Marketing:
Marketing is the paradox, which is not known to many. It is the world’s oldest
professions, but at the same time he world’s relatively newest discipline of
learning. Many so called marketing activities then were referred as to as
either trade or commerce or distribution.
The establishment of a market economy wrought marked changes in the
social and economic structure. A new attitude toward business
revolutionized the economy of the country and the term “marketing”
identified that revolutionary element. Historical accounts of trade lead one to
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conclude that marketing has always existed. Was the original use of the term
marketing merely an application of a new name to an old practice? One
theory is that language is an invention of man, an adornment. The other
explanation of the origin of language is that it is inseparable from reason.
Accordingly, man’s language has developed as his thoughts have developed.
By marketing was first meant “that combination of factors which had to be
taken into consideration prior to the undertaking of cer6tain selling or
promotional activities.” The essence of marketing was the combination of
factors. Blindness to and ignorance of that combination of factors is the
reason for the absence of terms equivalent to marketing in other languages.
Marketing must be regarded not merely as a business practice, but as a social
institution.
Marketing is essentially a means of meeting and satisfying certain needs of
people. It is a highly developed and refined system of thought and practice
characteristic of a period in the development of market economy. A latent
presumption in the practice of marketing has been that marketing gives to
society more than society gives to it. The fact is that marketing is but one of
several means of accomplishing a social objective.
Earlier Theories Relevant to Marketing Thought
The development of marketing thought began early in the twentieth century
with the conception of marketing. Early students of marketing were actually
educated as economists. Although they brought forth divergent theories,
students of marketing evolved a body of thought that by its nature, scope and
application, set them apart from the usual economists.
Market
By 1900, it was found that demand consisted of more than simple purchasing
power. It reflected desire as well as ability to purchase, and new experiences
with advertising and salesmanship were proving that desire could be
increased and molded by factors other than the mere existence of supply.
Another concept of the market concerned its capacity to adjust itself
automatically to a harmonious equilibrium. It had long been held that
competitive forces would normally, in the long run, dissipate tendencies of
dis-equilibrium, but as competition diminished in some industries and
trades, the assumptions found in traditional economic theory became
increasingly invalid. A third idea was that cost was the principal determinant
of price, at least in the long run. Concepts of the elasticity of demand were
still another influence upon the thinking of early students of marketing.
Marketing writers as a theoretical basis for selling, advertising and the
promotional work of marketing in general have long used Alfred Marshall’s
concept of elasticity of demand.
Value Theory
Value theory was another area of economic thought relevant to early studies
of marketing. Economists leaned heavily upon input factors, determining
their relative quantities and prices. Adam Smith held also, against most
commonly held beliefs that distributive activities contributed to value, but
only indirectly. They extended the market, thereby making opportunities for
increased production and for greater specialization of labor in production.
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Marketing Principles and Strategies

Economists also distinguished in their value theories value in-use and

value-in-exchange.
Production
In the eighteenth century, productivity was held by the physicocrats to be the
production of a surplus over costs. Concepts of production included:
diminishing returns 3 marginal productivity opportunity costs and the
representative firm However, in 1900, there was no clear concept of the
justification of marketing as a productive activity or as a contribution to
economic production. On the contrary, the popular impression was that the
middleman added cost instead of value. Adam Smith conceived man as „the
economic man‟ bent upon a constant effort to better his condition. Thus
there was a natural basis for competition, and according to natural
motivations they would affect perfect competition. Ricardo foresaw the
uncertainties of an expanding economy. He viewed a growing disparity of
interests in the rising factory system. Alfred Marshall perceived basic
cooperation among all parties through the system of markets. His viewpoint,
insofar as he emphasized the short run, tended to coincide with the interests
of businessmen.
Consumer
Not until the latter part of the nineteenth century, with the writings of the
Austrians did real consideration of the consumer make its way into economic
theory.
Enlargement of the Market
The classical economist has assumed markets local wherein demanders and
suppliers knew of each other’s presence and this knowledge resulted in
perfect competition. With the Industrial Revolution, new importance was
attached to information, promotion, and the quest for satisfactory products.
Extended markets gave the opportunity for production on a scale larger than
had ever before been undertaken. The rapid transition from an agricultural
economy to an industrial economy at the end of the century poured into the
market such quantities of products as to warrant the conclusion that a
buyers’ market was replacing a sellers’ market. It had long been a
presumption of economic theorists that production was basic that the value
created by production constituted the extent of demand in the market, but
the American market was anything but static.

Traditional Approaches of Marketing:

Traditional marketing is a rather broad category that incorporates many
forms of advertising and marketing. It's the most recognizable type of
marketing, encompassing the advertisements that we see and hear every day.

Course Module
Most traditional marketing strategies fall under one of four categories: print,
broadcast, direct mail, and telephone. ​(See also ​Cross-Media Marketing​)
Print marketing ​is the oldest form of traditional marketing. Loosely defined
as advertising in paper form, this strategy has been in use since ancient
times, when Egyptians created sales messages and wall posters on papyrus.
Today, print marketing usually refers to advertising space in newspapers,
magazines, newsletters, and other printed materials intended for
distribution.
Broadcast marketing includes television and radio advertisements. Radio
broadcasts have been around since the 1900s, and the first commercial
broadcast—a radio program supported by on-air advertisements—aired on
November 2, 1920. Television, the next step in entertainment technology,
was quicker to adopt advertising, with less than ten years between its
inception and the first television commercial in 1941.
Direct mail marketing uses printed material like postcards, brochures,
letters, catalogs, and fliers sent through postal mail to attract consumers. One
of the earliest and most well-known examples of direct mail is the Sears
Catalog, which was first mailed to consumers in 1888. ​(See also ​Direct Mail
Marketing​)
Finally, ​telephone marketing​, or ​telemarketing​, is the practice of
delivering sales messages over the phone to convince consumers to buy a
product or service. This form of marketing has become somewhat
controversial in the modern age, with many telemarketers using aggressive
sales tactics. The U.S. federal government has passed strict laws governing
the use of telemarketing to combat some of these techniques. ​(See
​ elemarketing​)
also T
Traditional Marketing Strategies and the 4P’s–or are there five?

Traditional marketing has always been defined by the 4P’s–Product,

Promotion, Price and Place. Traditional marketing techniques typically focus
on identifying the right audience segment, understanding their behavior, and
providing the proper incentive to get them to buy a product or service, and in
addition, there is the location or channel consideration.

In the past, marketers were

limited to one-way broadcast
media. The goal was to use the
proper media mix to deliver as
many impressions as
possible, providing the right
promotional incentive to get the
consumer to buy the product or
service. With the advent of
Google, the increasing
penetration of smartphones, and
the proliferation of
social media platforms –
marketers now face a daunting
array of possible options. It
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Marketing Principles and Strategies

now has been suggested that marketers add a fifth “P” – for People – to the
mix.

Advantages of Traditional Marketing

Identifying and understanding your target audience is still the key to

marketing success. ​Many traditional marketing techniques remain
appropriate. Audience segmentation is one example. Marketers can identify
ways to provide a relevant and meaningful customer experience by creating
segments for a number of components like:

● audience composition
● buying behavior
● geography
● events

Traditional Marketing 2013

With defined audience segmentation and on target offers, traditional
marketing is still very effective when acquiring some customer
segments. ​Traditional marketing strategies offer an effective way to
deliver content to current and prospective customers, and can become
a catalyst to drive your web site along other traffic marketing assets.
This traditional marketing approach is often referred to as “push”
marketing.
Promotions and offers are still important pieces in the marketing mix, but in
2013, content is a new form of currency. Instead of relying solely on coupons
and price discounts, marketers can offer valuable information that
consumers will find relevant and engaging.
Delivering the right message through the proper channel is more important
than ever. Traditional marketing strategies still work as they expand to
incorporate more options.

Strategic Marketing Solutions Can Help

Here is how Strategic Marketing Solutions can help with your traditional
marketing strategies:
● Identify your target audience.
● Creating relevant content that will optimized the customer
experience.
● Select channels for delivery including Email and/or Direct Mail.
● Develop a variety of marketing materials for the selected channels
● Test messages and then measure results.

Course Module
How is a traditional Marketing Plan Developed & Employed?
The strategies for developing a traditional marketing plan vary widely,
according to the form of advertising used and the type of business. In some
companies, particularly small businesses, the entire staff will contribute to
planning and execution. Larger companies often have marketing
departments dedicated to creating advertising campaigns that use traditional
marketing.
The first step in developing a plan is to choose print, broadcasting, direct
mail, or telemarketing. This choice depends on the budget and the marketing
message conveyed. For example, a store that is announcing a sale will use
more immediate impact strategies like broadcasting or print, while a
business launching a general awareness campaign might choose direct mail,
which stays in consumers’ hands for a longer period of time.
For print and broadcast marketing, the business must arrange to purchase
advertising space. The timing of this step depends on the lead-time, or how
far in advance the advertising space must be purchased. Some print media,
such as wide-circulation magazines, have lead times of several weeks. For
example, an advertisement in ​Sports Illustrated​ magazine must be reserved at
least five weeks in advance and longer for premium placement. Other
markets have shorter times, with some newspapers allowing next-day ad
placement.
The development of marketing materials also varies depending on the form.
Direct mail and print campaigns require graphic design and copywriting. For
telemarketing, the advertisers write a script for the sales representatives (or
outsourced telemarketing company) to follow. Radio ads may be either
produced and pre-recorded, or scripted and read by on-air personalities.
Finally, television commercials can either be written by the marketing
department and produced in-house, or contracted out to production
companies.
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Marketing Principles and Strategies

Career in Marketing
A ​brand manager is responsible for planning, developing, and directing the
marketing efforts for a particular product or brand. This may be an entire
company, or a line of products within a large company.
Brand managers coordinate the activities for a team of marketers involved in
several facets of operation, including research and development, production,
sales and advertising, purchasing, distribution, packaging development, and
financing. These professionals decide on marketing strategies, conceptualize
and oversee marketing campaigns, and control the brand’s public image
through advertising.
A typical brand manager will hold a four-year bachelor's degree in marketing
or advertising. In addition, most large companies require at least four years of
experience in lower marketing positions, such as sales representatives.
What They Do
The job of an advertising sales director is to manage the entire advertising
strategy of a company from all directions, including business, sales, and
technical perspectives. Typically, in charge of a team of sales representatives,
these high-ranking managers oversee the development of sales materials,
campaign implementation, and advertising budgets and projections.
Education and Experience
An ​advertising sales director must hold a four-year bachelor's degree in
marketing, sales, or advertising, and typically needs a minimum of 10 years’
experience in sales and marketing. Most businesses hire advertising sales
directors who have proven records of accomplishment in marketing success.
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 What They Do
A ​media director typically works at an advertising agency that develops and
implements marketing strategies for other companies. The job of the media
director is to manage the purchase of print space and broadcast time for
clients.
These professionals work with a client to choose the most effective avenues
for traditional marketing, usually through market research and statistical
models. They are also responsible for working with media sales
representatives to place the advertisements.
Education and Experience
A four-year bachelor's degree in sales, marketing, or advertising is required to
become a media director. As with most management-level marketing
professionals, a media director also needs at least 5 years of field experience,
with a proven record of results.
 Traditionalmarketing is a diverse field, involving many different strategies
and methods. Earning a degree through a marketing program provides the
knowledge and skills required to effectively use traditional marketing
techniques -- from print to broadcast.
Coursework in marketing programs are designed with traditional marketing
strategies in mind. Many schools offer degree programs geared specifically
toward print or broadcast marketing, such as Broadcasting Media and Graphic
Design. This includes subjects like communication, which helps professionals
understand the most effective ways to design and deliver traditional
marketing campaign. Marketing programs will also have courses on consumer
psychology, which teaches a strong understanding of buying habits and
​ onsumer Psychology)​
motivations. ​(See also C

Marketing Goals and Objectives

● Increase sales
● Build brand awareness
● Grow market share
● Launch new products or services
● Target new customers
● Enter new markets internationally or locally
● Improve stakeholder relations
● Enhance customer relationships
● Improve internal communications
● Increase profit

Developing SMART Marketing Objectives:

Essentially your marketing objectives need to fit in with the overall business
objectives and drive the direction of your ​marketing strategy.​ To be effective,
any objective should be SMART.
A SMART objective is always:
● Specific
● Measureable
● Achievable
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Marketing Principles and Strategies

● Realistic
● Time-bound
The purpose therefore of setting SMART objectives is to clarify where you
want to be, providing a measurable objective that can be monitored and
plans developed to help meet the business goals.

Marketing objective examples

Typical marketing objectives we see clients set include:
● To increase the number of enquiries from our marketing
communications activities by 15% by the end of the year
● To increase sales by 20% within 18 months

This can be done through facilitating a marketing objectives workshop where

key issues can be discussed and agreed. Alternatively, with smaller
companies we work directly with Managing Directors on a one-on-one basis
to help them develop their key marketing goals and objectives. Both
approaches can help a company to agree business objectives and marketing
objectives and allow a marketing plan to be developed to set a direction out
as to how these objectives can be achieved. Other issues, which can also be
discussed in a workshop, include methods of measuring success and
monitoring and evaluation processes.
Glossary
Cross​-​media marketing: ​A form of cross-promotion in which promotional
companies commit to surpassing traditional advertisement techniques and
decide to include extra appeals to the products they offer. The material can
be communicated by any mass media ​such as e-mails, letters, web pages, or
other recruiting sources.
Direct - Mail marketing: A​ marketing effort that uses a mail service to
deliver a promotional printed piece to your target audience. Direct
mail encompasses a wide variety of marketing materials, including
brochures, catalogs, postcards, newsletters and sales letters.
Telemarketing:​ (sometimes known as inside sales or telesales in the UK and
Ireland) A method of direct marketing in which a salesperson solicits
prospective customers to buy products or services, over the phone or
through a subsequent face to face or Web conferencing appointment
scheduled during the call.

References
Online Supplementary Reading Materials:
1. Marketing; ​http://www.investopedia.com/terms/m/marketing.asp​;
April 11, 2017

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 2. Telemarketing; ​https://en.wikipedia.org/wiki/Telemarketing​; April
11, 2017
3. Traditional Marketing;
http://www.marketing-schools.org/types-of-marketing/traditional-
marketing.html#link1​; April 11, 2017
4. The History of Marketing Thought;
http://www.healthedpartners.org/ceu/hm/a02history_of_marketing_
thought_by_bartels_hermans.pdf​; April 11, 2017
5. Traditional Marketing;
http://www.strategicdriven.com/traditional-marketing/​; April 11,
2017
6. Marketing Objectives - Where do you want to be?;
http://www.winmarketing.co.uk/business-and-marketing-objectives.
html​; April 11, 2017
Online Instructional Videos:
1. Philip Kotler: Marketing;
https://www.youtube.com/watch?v=sR-qL7QdVZQ​; September 8,
2017
2. Philip Kotler - Marketing Tips;
https://www.youtube.com/watch?v=O1QlYRZKzvo​; September 8,
2017
3. Marketing 3.0 - Phillip Kotler;
https://www.youtube.com/watch?v=6rxj8pGPxZc​; September 8,
2017
Books and Journals:
1. Cynthia Zarate. (2012); Principles of Marketing; Philippines; C & E
Publishing Inc.
2. Philip Kotler, Gary Armstrong (1998); Principles of Marketing;
Australia; Pearson