Principles of Marketing

Quarter 1 – Module 2:
Marketing Approaches
Principles of Marketing
Alternative Delivery Mode
Quarter 1 – Module 2: Marketing Approaches
First Edition, 2020

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Principles of Marketing
Quarter 1 – Module 2:
Marketing Approaches
For the learner:

Welcome to the Principles of Marketing Alternative Delivery Mode (ADM) Module on

Marketing Approaches!

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This module was designed to provide you with fun and meaningful opportunities
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learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

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 What’s New In this portion, the new lesson will be
introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to
process what you learned from the lesson.

What I Can Do This section provides an activity which will

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retention of learned concepts.

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developing this module.

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the module. Use a separate sheet of paper in answering the exercises.

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2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
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answers.
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We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

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 What I Need to Know

This module was designed for you to master the Marketing Approaches. The scope
of this module permits it to be used in many different learning situations. The
language used recognizes the diverse vocabulary level of students. The lessons are
arranged to follow the standard sequence of the course. But the order in which you
read them can be changed to correspond with the textbook you are now using.

The module contains the following lesson:

 Lesson 1 – Marketing Approaches

After going through this module, you are expected to:

1. describe marketing approaches
2. identify the different marketing approaches
3. explain the evolution of marketing
4. become aware of the importance of learning marketing approaches

What I Know

True or False. Write T if the statement is true and F if the statement is false. Write
your answers on a separate sheet of paper.

1. Sales Orientation uses aggressive selling, advertising, and distribution

strategies
2. Production Orientation emphases on the well-being of society.
3. Marketing Orientation is also called customer orientation which is driven by
customer needs.
4. Societal Marketing Orientation focuses on creating long-term value
relationship and customer relationship management.
5. Customer Relationship Orientation focuses on producing as much as
possible at lowest cost.

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Lesson

1 Marketing Approach

In this lesson, the definition and approaches to marketing will be discussed in

detail.

What’s In

Marketing approaches evolved to meet the needs and wants of all parties involved
in the exchange process.

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 What’s New

Marketing Approach Defined

Marketing approach refers to the forms or types of various marketing orientation,
concept, philosophies used by companies to attract, retain, inform, and build good
relationship to potential and existing customers.

It is important to know and understand the fundamental approaches used in

Marketing. Each approach is unique and has its own advantages and
disadvantages. Application of a marketing approach will greatly affect the growth of
a business.

Evolution of Marketing Approaches

Table 1. Different Marketing Approaches

Name Type Timeline Focus

Production/ Traditional Industrial  Produce as much as
Revolution up possible at lowest
until the 19th cost
Century
Product  Offer high quality
Orientation products
Sales Traditional Early 1920’s and  Aggressive selling,
Orientation after the advertising,
Industrial and distribution
Revolution
strategies
Market Contemporary 1950’s to present  Produce a product
Orientation that fulfil the
customer needs and
wants
Societal Contemporary Began in the late  Well-being of society
Marketing of 1960s and early  Corporate Social
Orientation 1970s to present Responsibility (CSR)
Customer Contemporary Late 1990’s to  Creating long-term
Relationship present value relationship
Orientation  Customer
Relationship
Management (CRM)

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 What is It

Production/ Product Orientation

The evolution of marketing started from production orientation during the
industrial revolution period. The industrial revolution paved way for companies to
produce more products in the market and it started competition between
production companies. Its view is that the company success lies in production
efficiency, therefore having low production cost as possible which is usually done
by manufacturing in a large volume to reduce expenses and price. Product
orientation views to produce high quality products. The companies believe that “a
good product should sell itself” so companies focused on product innovation rather
than satisfying the demand of the market.

Sales Orientation
The second stage in the evolution of marketing approaches is sales orientation.
This was based on the idea that manufacturing or production companies can
produce beyond what the market can accept. Due to high volume or surplus of
products in the market, the competition among production companies increased
during the first half of the 20 th century. During this period, various sales-oriented
companies realized the need for more aggressive selling strategies because they
assume that people do not want to purchase products unless they are persuaded.

Marketing Orientation
Also called customer orientation, is the third stage in the evolution of marketing
approaches. During the 1950’s onwards, companies realized the significance of
understanding the needs of the market. Marketing orientation is driven by
customer needs. Companies therefore seek to find solutions to meet the demands
of customers. The fundamental assumption of marketing orientation is that
customers want to satisfy their needs, and is willing to buy products satisfies their
needs. Customer needs may include information about products, product usage
advice, and product availability.
General Electronics (GE) was one of the first companies to implement a marketing
strategy that focused on meeting the needs of the customer. GE’s 1952 report
outlined the Philosophy:’’ thus Marketing, through its studies and research, will
establish what the customer wants in a particular product, what price he is willing
to pay, and where and when it will be wanted. Marketing will have Authority in
Product planning, Production scheduling, and Inventory Control as well as Sales,
Distribution, and Servicing of the Product”.

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Societal Marketing Orientation
Fourth, one of the recent stages in the evolution of marketing approaches is the
societal marketing orientation which addresses the well-being of society. Its
examples are companies that adheres with laws of environmental protection and
sustainable development such as Corporate Social Responsibility (CSR) practices.
Many consumers today are socially conscious that demands for products are eco-
friendly and ethically manufactured.
One good example is Jollibee. The company uses metal utensils, ceramic plates,
no-straws and plastic cups for dine-in and uses paper bag for bagging its take-out
products which adheres to City Ordinance No. 2876.
Another example is the Body Shop, a skin and cosmetic company which sells
products that are made with only 100 percent natural ingredients. The company
also actively supports and pursues community trade-using highly skilled but
small-scale farmers, craftsmen, and rural cooperatives – “not because it’s
fashionable but based on the belief that it’s only way to do business’’

Customer Relationship Orientation

For marketers, it’s not just making sales which count but good customer
relationship experience that makes their brand a meaningful part of the customers
lives. Customer Relationship Orientation is a contemporary concept used by
company marketers that focuses on keeping current customers and improving its
existing relationship with them. This focuses more on retention and enhancement
of customer relationships.
Before, customer relationship is visible through customer service counters or
centers. Today, it is where business marketers connect with customers online to
share marketing information, provide customer support services, and maintain on-
going customer relationships.
Customer Relationship Orientation incorporates the use of Customer Relationship
Management (CRM) wherein customer data from all sources are captured to
manage customer interaction, engage customers, build customer relationship, and
create a customer valued brand experience.
Lastly, Customer Relationship Orientation focuses on customer loyalty and long-
term customer engagement rather than shorter-term goals like customer
acquisition and sales. It is important to know and understand the important
function of Customer Relationship Orientation. Customer engagement is the key for
a profitable customer relationship. Without it, there would be no valued bond
between the customer and the company product or service offering.
Examples are popular clothing stores such as Gap, Banana Republic, and Old Navy
which offer coupons to customers who join their mailing list. Customers on the list
also receive information about sales and promotions to keep them up-to-date with
the newest deals at the store.

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 What’s More

Activity 1.1 Understanding Marketing Words

Find the definitions of the following words:
1. Approaches
2. Market Evolution
3. Sales
4. Marketing
5. Societal

What I Have Learned

Directions: Read carefully and answer the following questions asked in the activity.
Write your answers in a yellow pad paper.
Reflection Activity:
1. What do you think would happen if marketing did not evolve and people got
stuck in the period of sales orientation?
2. How would consumers behave in that kind of marketplace?

What I Can Do

Instructions:
1. Select one (1) existing local product or service company in your area. Write the
following:
a. Name of the local company
b. Product or service of the local company (Choose only 1)
c. Marketing Approach (Choose only 1)

2. Choose one (1) marketing approach that is currently being used by your selected
company. Observe and write in 1-2 paragraphs all the details about how its
marketing approach is being used using a separate sheet of paper.

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 Assessment

Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. This marketing approach mainly focuses customer retention and
relationship.
a. Customer Relationship Orientation
b. Production Orientation
c. Marketing Orientation
d. Societal Marketing Orientation

2. It is a marketing approach that evolved during the industrial revolution

during the middle of the 19th century until the turn of 20th century. Its
concept is to produce as much as possible at lowest possible cost.
a. Customer Relationship Orientation
b. Production Orientation
c. Sales Orientation
d. Societal Marketing Orientation

3. A marketing approach where companies employ aggressive selling tactics for

people to purchase their products. Its focus is to sell.
a. Sales Orientation
b. Customer Relationship Orientation
c. Marketing Orientation
d. Societal Marketing Orientation

4. It is a marketing approach that realizes the importance of understanding

the needs of the market
a. Sales Orientation
b. Production Orientation
c. Marketing Orientation
d. Societal Marketing Orientation

5. A marketing approach which addresses the well-being of society. Its

examples are companies that adheres with laws of environmental protection
and sustainable development.
a. Sales Orientation
b. Production Orientation
c. Marketing Orientation
d. Societal Marketing Orientation

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 Additional Activities

Note:
Teachers may add related supplementary activities that are related with the topic.
Instructions:

Using 1-2 paragraphs, write the important things you have learned from Lesson 1.
Use a separate paper for your answers (10 points)

Answer Key

Lesson 1 Answer Key

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References
Claessens, M. (2018). Evolution of Marketing Theory – From Production to
Marketing Orientation. https://marketing-insider.eu/evolution-of-marketing-
theory/

CNN Philippines (2019). Quezon City bans single-use plastics, disposable materials
in hotels, restaurants. Retrieved from
https://cnnphilippines.com/news/2019/12/1/quezon-city-plastic-waste-joy-
belmonte.html?
fbclid=IwAR0xo734Y2l0IKxWn5ukZtDzi8uF65z10RzFz8PUUZ9YlMtOHNbAHSx
fEFY#:~:text=Ordinance%20No.,customers%20dining%20in%20their
%20establishments.

DIWA Senior High School Series: Principles of Marketing Module (2017). Principles
of Marketing. Diwa Learning Systems, Inc.

Hive Studio (2018). The 5 Evolution Eras of Marketing. Retrieved from

https://hivestudio.net/the-5-evolution-eras-of-marketing/

Maddox, K. (2008). American Marketing Association releases new definition of

Marketing. Retrieved from https://adage.com/article/btob/american-
marketing-association-releases-definition-marketing/270184

Merriam Webster (n.d.). Societal. Retrieved from https://www.merriam-

webster.com/dictionary/societal?src=search-dict-hed

Salvador, M. & Fua-Geronimo, E. (2009). Principles of Marketing. Allen Adrian

Books Inc.

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