P R I N C I P L E S of M A R K E T I N G
Approaches to Marketing
Traditional Approach
- “PUSH MARKETING” – give message to
potential customers
- Choose the right customers, Understand them,
Encourage them to buy
 Marketing Mix (4P’s)
- a business blend to offer to the target
market and get response
o Product (Customer’s Needs)
- company offerings
- tangible or intangible
- What?
- Price (Customer’s Cost)
- value of the offering
- monetary value
- How much?
- Place (Customer’s Convenience)
- where the offering can be
found/bought
- location
- Where?
- Promotion (Customer’s Communication)
- communicate offering
- encourage exchange
- How?
Contemporary Approach
- Web-based approach, Inbound marketing,
Branding yourself
 Remodeled Marketing Mix (7P’s)
- base P is supported by the support P’s
o People
- who works for your business
- Who?
o Process
- delivering the product or
services to the customers
- save time and money by
increasing efficiency
o Physical Evidence
- customers see when interacting
with the business
- physical environment and
packaging
 AIDA Model
- R E V I E W E R
o Attention (Awareness)
- attract the attention of the
customers
o Interest
- raise customer’s interest by
focusing on demonstrating
advantages or benefits
o Desire
- convince the customers that
they really want or desire the
product
o Action
- leads customers to take actions
and/or purchasing
 Social Marketing Approach
- considers societal marketing approach
 Relationship Marketing Approach
- practice of building long-term satisfying
relationship with key parties
(customers, suppliers, distributors)
Product (Base P)
- created because there is a need
 Tangible
- referred to as “goods”
 Intangible
- referred to as “service”
Product Levels
 Core
- there is a need, this is the benefit
 Actual
- there is a need, this is the benefit, this is
the product
 Augmented
- additional benefits of a product
o Warranty
- refund, replacement, repair
o Delivery Installation Services (DIS)
- free or discounted DIS
o Finance
- credit terms
o Customer Care
- consultation or inquiries
Product Attributes
 Quality
 P R I N C I P L E S of M A R K E T I N G - R E V I E W E R
- durability of a product - consumers are willing to travel
o Brand great distance
- indicator of quality o Unsought
- your identity - seldom actively look for
- brand that has value or worth - purchase for extraordinary
has BRAND EQUITY reason (fear or adversity) rather
 Strategies to Achieve Brand Equity than desire
 Line Extension – create Support P’s
variants (flavor/color) Price
 Brand Extension – new - cost of the product
products - most flexible
 Multi Branding – create  Factors in Pricing
more brands o Marketing Objectives
 Features - sales target; “quotas”
- distinguishing characteristics of product o Cost
 Design - fixed and variable cost
- how the product looks and perform o Target Market
Classification of Goods - affordability
 According to Use o Competitors
o Consumer Goods - up to date
- ready for consumption  Product Pricing Strategies
- can be industrial o Product Line Pricing
o Industrial Goods - product in line
- raw materials o Optional Product Pricing
 According to Differentiation - accessories or add-ons
o Undifferentiated Goods o Captive Product Pricing
- identical - necessary for the main product
o Differentiated Goods - needs secondary product
- distinguishable o By Product Pricing
 According to Durability - secondary product
o Consumable o Product Bundle Pricing
- minutes or days - combined product
o Semi-durable  General Pricing Approaches
- several months o Mark-up Pricing
o Durable - based on cost or selling price
- years o Competition Based Pricing
 According to Type - benchmarking
o Convenience - being aware of competitors
- purchased frequently o Value Based Pricing
- inexpensive - perceived value; auction
o Shopping
- purchased less frequently
o Specialty  Price Adjustment Strategies
- require large effort to acquire o Discount Pricing
- reduced value
 P R I N C I P L E S of M A R K E T I N G - R E V I E W E R
o Segmented Pricing - your people can determine whether your
- market segmentation customers will return or not
o Psychological Pricing Physical Evidence
- behavior - environment on how and where service or
o Promotional Pricing products is assembled or delivered
- specific offering period  Role of Physical Evidence
Place o Conveys expectation
- location of the business o Influence perception
 Supply Chain Management o Attraction
- network involved in the creation and o Long Term Relation
sale of product o Desire
- DISTRIBUTION CHANNEL – supply chain Process
segment involved in delivery of product - how it is produced and delivered
o Direct Distribution  This involves:
- manufacturer to consumer o Procedure
o Indirect Distribution o Mechanism
- manufacturer to intermediaries o Flow of Activities
to consumer Marketing Plan
 Logistics Management Executive Summary
- ensures the efficient and effective flow - usually no longer than 1 or 2 pages
of goods - summary of significant points in:
Promotion  marketing objectives
- communicating the base p  strategy recommendation
 Promotion Activities  marketing budget
o Advertising  projected sales
- paid communication; media  profitability
- EX: newspaper Study Background
o Sales Promotion - brief history of the company
- marketing activity to boost - mission and vision
sales - product/service offerings
- EX: midnight sale Macroenvironmental Analysis
o Personal Selling  Economic
- personal communication agents - economic data that affects the
o Public Relations (PR) company
- public communication  Politicolegal
- EX: press release - political instability, election, laws, bill,
o Direct Marketing provisions and revisions
- non-personal  Social
- EX: direct mails, text messages - relevant sociocultural factors that may
o Product Placement affect the manner of how the selected
- movie or television show business/company will be marketed

People
- who work for your business  Demographic
- based on target market
 P R I N C I P L E S of M A R K E T I N G - R E V I E W E R
- current and relevant figures or - specific target or goal that the business would
information that may affect the like to achieve
marketability of the product. Marketing Strategies
 Technological  Product/Service Strategy
- relevant technological developments - what are the products?
that may affect the chosen business - target market
 Nature - brand positioning; did they attain brand
- analysis of the natural environment; equity? strategies to achieve it?
pollution, global warming  Pricing Strategy
- how does your chosen company help or - product pricing strategies and price
contributes with the said situation adjustment strategies used
Opportunities and Threats  Distribution Strategy
- from the macroenvironmental analysis - identify the current distribution
- relate directly to a specific macroenvironmental strategy obtain by the firm
factor and justify why they are classified as  Advertising and Promotional Strategy
opportunities or threats - current and proposed advertising and
Microenvironmental Analysis promotional strategy
 The Company Tactical Implementation
- organizational ability to implement - given the chosen marketing strategy, identify 3
marketing strategies tactics or activities
 Suppliers - include operating details, time table and budget
- relationship between company and its Financial Projection
suppliers - 2017 – 2018 projected net income or sales for
 Marketing Intermediaries 2019
- company’s distribution network is
illustrated and explained
- choice of distribution type is reviewed
and possible improvements in
intermediary relationships determined
 Customers
- geographic, demographic, and
psychographic profile and buying
behavior
 Competition (Competitors)
- identify competitors and competitive
behaviors
 Publics
- evaluate the company’s relationship
with its publics
Strengths and Weaknesses
- from the microenvironmental analysis
- relate directly to a specific microenvironmental
factor and justify why they are classified as
strengths or weaknesses
Marketing Objectives