Module 1:

Marketing Principles and Strategies

This unit includes the definition of marketing and its basic components, the traditional
and contemporary approaches to marketing and the nature of marketing goals.

This module was designed and written with you in mind. It is here to help you master the
principles of marketing. The scope of this module permits it to be used in many different business
scenarios, and lets you explore the vast marketing and business environment. The lessons are
arranged to follow the standard sequence of the course.

At the end of this module, you will be able to:

a. Define and understand the concepts, principles and scope of marketing;

b. Describe and discuss the traditional approaches to marketing;
c. Discuss the goals of marketing;
d. Identify and explain contemporary marketing approaches.

Lesson 1: Marketing and Its Traditional Approaches

Introduction
Look around you! Would you believe that ―marketing‖ is everywhere? Yes! Marketing is
everywhere. You can usually find traces of it inside your house, on the streets, in the malls, in the
televisions shows, name it, marketing can be there. Almost every merchandise or service that we
intend to buy is a product of marketer’s creative mind.
You might have thought that marketing is all about advertising or selling, this is actually a
common misconception. Advertising and selling are just few of the activities under the broad
concept of marketing. Marketing is bigger than what we thought.
Kick-Start
Think about the last time you’ve gone through a
mobile device store or an online shopping app. What
are the different brands and models of mobile phone
have you came across? Do they have the same
components and features? Are they being sold in
different prices? What makes one brand better than the
other? Do they have the same delivery systems?
Basically, each company would always provide unique
offerings than the other.
These are all part of the elements of marketing.
Marketing decisions are always anchored towards
achieving company’s objectives while providing
customer satisfaction. Thus, it is very important for you
to understand the underlying principles of marketing.

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 D I SC USS I ON
Defining Marketing
The American Marketing Association (AMA) defined marketing as ―the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.‖
If you read the definition closely, you see that there are four activities, or components, of
marketing or traditionally what we called the four Ps:
1. Creating. The process of collaborating with suppliers and customers to create offerings
that have value. (Product – goods or services)

2. Communicating. Broadly, describing those offerings, as well as learning from

customers.(Promotion)

3. Delivering. Getting those offerings to the consumer in a way that optimizes value. (Place
/ Distribution Channel– getting the product to a point at which the customer can
purchase it)

4. Exchanging. Trading value for those offerings. (Price - the monetary amount charged
for the product)

Value

Value is at the center of everything that marketing does. What does value mean?

Marketing is composed of four activities centered on customer value: creating,

communicating, delivering, and exchanging value.

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 When we use the term value, we mean the benefits buyers receive that meet their
needs. In other words, value is what the customer gets by purchasing and consuming a
company’s offering. So, although the offering is created by the company, the value is
determined by the customer.

Furthermore, our goal as marketers is to create a profitable exchange for

consumers. By profitable, we mean that the consumer’s personal value equation is
positive. The personal value equation is:

Value = benefits received – [cost/price + hassle]

Hassle is the time and effort the consumer puts into the shopping process. The
equation is a personal one because how each consumer judges the benefits of a product
will vary, as will the time and effort he or she puts into shopping. Value, then, varies for
each consumer.

One way to think of value is to think of a meal in a restaurant. If you and three
friends go to a restaurant and order the same dish, each of you will like it more or less
depending on your own personal tastes. Yet the dish was exactly the same, priced the
same, and served exactly the same way. Because your tastes varied, the benefits you
received varied. Therefore the value varied for each of you. That’s why we call it
a personal value equation.

Value varies from customer to customer based on each customer’s needs.

The marketing concept, a philosophy underlying all that marketers do, requires that
marketers seek to satisfy customer wants and needs. Firms operating with that philosophy
are said to be market oriented. At the same time, market-oriented firms recognize that
exchange must be profitable for the company to be successful. A marketing orientation is
not an excuse to fail to make profit.

Creating Offerings That Have Value

Marketing creates those goods and services that the company offers at a price to
its customers or clients. That entire bundle consisting of the tangible good, the intangible
service, and the price is the company’s offering. When you compare one phone to
another, for example, you can evaluate each of these dimensions—the tangible, the
intangible, and the price—separately. However, you can’t buy one manufacturer’s phone,
another manufacturer’s service, and a third manufacturer’s price when you actually make
a choice. Together, the three make up a single firm’s offer.

Marketing people do not create the offering alone. For example, when the iPad
was created, Apple’s engineers were also involved in its design. Apple’s financial
personnel had to review the costs of producing the offering and provide input on how it
should be priced. Apple’s operations group needed to evaluate the manufacturing
requirements the iPad would need. The company’s logistics managers had to evaluate the
cost and timing of getting the offering to retailers and consumers. Apple’s dealers also

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likely provided input regarding the iPad’s service policies and warranty structure.
Marketing, however, has the biggest responsibility because it is marketing’s
responsibility to ensure that the new product delivers value.

Communicating Offerings

Communicating is a broad term in marketing that means describing the offering

and its value to your potential and current customers, as well as learning from customers
what it is they want and like. Sometimes communicating means educating potential
customers about the value of an offering, and sometimes it means simply making
customers aware of where they can find a product. Communicating also means that
customers get a chance to tell the company what they think. Today companies are finding
that to be successful, they need a more interactive dialogue with their customers.

Mobile devices, like iPads and Droid smartphones, make mobile marketing
possible too. For example, if consumers check-in at a shopping mall on Foursquare or
Facebook, stores in the mall can send coupons and other offers directly to their phones
and pad computers.

Delivering Offerings

Marketing can’t just promise value, it also has to deliver value. Delivering an
offering that has value is much more than simply getting the product into the hands of the
user; it is also making sure that the user understands how to get the most out of the
product and is taken care of if he or she requires service later. Value is delivered in part
through a company’s supply chain. The supply chain includes a number of organizations
and functions that mine, make, assemble, or deliver materials and products from a
manufacturer to consumers. The actual group of organizations can vary greatly from
industry to industry, and include wholesalers, transportation companies, and retailers.
Logistics, or the actual transportation and storage of materials and products, is the
primary component of supply chain management, but there are other aspects of supply
chain management that we will discuss later.

Exchanging Offerings

In addition to creating an offering, communicating its benefits to consumers, and

delivering the offering, there is the actual transaction, or exchange, that has to occur. In
most instances, we consider the exchange to be cash for products and services. However
there are transactions that does not requires cash such as redemption of points earned or
coupons availed from a certain promotional activities. Other exchanges, such as
information about your preferences gathered through surveys, might not involve cash.

K NO WL E DG E S EL F- C HE CK 1 .1
How can a company ensure that their offerings deliver customer value?

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Key Marketing Components

The following are the several basic components underlying marketing:

1. NEEDS

A human need is something that a person

must have in order to live and survive or a state of
felt deprivation. By the term needs, we mean those
requirements which are extremely necessary for a
human being to live a healthy life. They are
personal, psychological, cultural, social, etc that
are important for an organism to survive.

Maslow’s hierarchy of needs was

developed by Abraham Maslow, a specialist in
human behavioural psychology. The hierarchy was
first developed to help explain the connection
between basic human needs and human desires.

The hierarchy, often visualized as a pyramid is split into five categories.

 Physiological needs:
o These are the underlying needs we as humans can’t live without. E.g. Food,
water, sleep, oxygen etc.
 Safety needs:
o We all need to feel safe. Whether that is physically, financially or job security
and health.
 Social needs:
o We all look for social connections in friends and family.
 Esteem needs:
o We all desire to have respect and be respected by others; this includes self-
esteem, confidence and a sense of self achievement.
 Self-actualization:
o This is realizing one’s full potential and this will differ from person to person.
This is the highest level on the hierarchy and what we are all striving for.

If marketers know the wants and needs of their target market then this can be used as
a selling point to influence.

2. WANTS

A human want is something that a person desires to have. Wants are needs which are
influenced by the society.

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 In economics, wants are defined as something that a person would like to possess,
either immediately or at a later time. Simply put, wants are the desires that cause business
activities to produce such products and services that are demanded by the economy. They
are optional, i.e. an individual is going to survive, even if not satisfied. Further, wants
may vary from person to person and time to time.

We all know that human wants are unlimited while the means to satisfy those wants
are limited. Hence, all the wants of an individual cannot be met and they must seek for
alternatives.

Difference between Needs and Wants

In economics, we often go through the terms needs and wants, but have you
wondered about their differences. Needs point out that something you must have for
survival. On the other hand, wants refers to something which is good to have, but not
essential for survival. For the purpose of spending and saving money wisely, every
person must know the difference between needs and wants.

Comparison Chart

BASIS FOR
NEEDS WANTS
COMPARISON

Meaning Needs refers to an individual's basic Wants are described as the goods and
requirement that must be fulfilled, in services, which an individual like to have,
order to survive. as a part of his caprices.

Nature Limited Unlimited

What is it? Something you must have. Something you wish to have.

Represents Necessity Desire

Survival Essential Inessential

Change May remain constant over time. May change over time.

Non-fulfillment May result in onset of disease or even May result in disappointment.

death.

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 3. DEMAND

Demands are human want backed / supported by buying power. Demand is an

economic principle referring to a consumer's desire to purchase goods and services and
willingness to pay a price for a specific good or service.

4. EXCHANGE

Marketing occurs when the buyer and

seller trade something of equal value. Both
the buyer and seller have gained that
satisfied their unmet needs.

Base on the figure, the customers seeks

benefits and is willing to pay an amount to
satisfy their needs; on the other hand the
company provides the benefits through
their products to meet the firms primary
goal – profit.

5. MARKET

The market is composed of people with both desire and ability to buy a product or
service.

There are two basic requirements before we can consider a person or group of people
as our market:

1) They should have desire or willingness to acquire the product, and

2) The have ability or with financial capability and access to purchase the product

One without the other means that the person or groups of people are not considered
being part of the company’s market. For example, if Jose wants a Ford Expedition 2019
model, and his earning 10,000 monthly with 2 children in college, is he part of the Ford’s
market? No, primarily because base on the given scenario, Jose don’t have the financial
capacity to acquire such type of vehicle.

K NO WL E DG E S EL F- C HE CK 1 .2
How can a company promote sustainable exchange?

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Scope of Marketing

Marketing people are involved in marketing 10 types of entities: goods, services,

experiences, events, persons, places, properties, organizations, information and ideas.

Goods – Physical goods comprise the volume of

most countries’ production and marketing effort.
The Philippines produces and markets billions of
physical goods. In developing nations like this
country, goods particularly food, commodities,
clothing and housing are the stronghold of the
economy.

Services – As economies progress, a growing

proportion of their activities are concentrated on
the production of services. The Philippine
economy today consists of a lot of services-to-
goods mix. Service includes airlines, hotels, and
maintenance and repair people, in addition to
professionals like accountants, lawyers,
engineers and doctors. Many market offerings
consist of a variable mix of goods and services.

Experiences – Through organizing a number of

services and goods, one can generate, stage, and
market experiences. Eating in Jollibee especially
for children is an experience; so is the Starbucks.

Events – Marketers endorse time-based events,

such as the Pacquio-Bradley fight, trade shows,
sports events, and artistic performances.

Persons – Celebrity marketing has turn into a

main and popular business. Artists, musicians,
CEOs, physicians, high-profile lawyers and
financiers, politicians and other professional
draw help from celebrity marketers.

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Places – Cities, states regions, and nations to
magazine tourists, factories, company
headquarters, and new residents. Place
marketers consists of economic development
specialists, real estate agents, commercial banks,
local business associations, and public relations
agencies.

Properties – are intangible rights of ownership

of either real property (real estate) or financial
property (stocks and bonds). Properties are
purchased and sold which requires a marketing
effort by real estate agents (for real estate) and
investment companies and banks (for
securities).

Organizations – Organizations aggressively

labor to create a strong, positive image in the
mind of their publics. Meralco, a Filipino
energy company, advertises with the tag line,
―May Liwanag and Buhay‖. Other companies
gain attention through supporting social causes.
Non-profit organizations like universities,
museums, and performing arts organizations
boost up their public images to compete more
successfully for audiences and funds.

Information – The production, packaging, and

distribution of information is one of the
society’s chief industries. School and
universities; publishers of encyclopedias,
notification books, and specialized magazines;
makers of CDs; and Internet Web sites are
among the marketers of information.

Ideas – Each market offering has a fundamental

idea at its core. Basically, products and services
are platforms for conveying some idea or
benefit to gratify a core need.

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 K NO WL E DG E S EL F- C HE CK 1 .3
Among the entities where marketing is involved, in which do you think
marketing plays much bigger role? Why?

Traditional Approaches to Marketing

Production Concept

In most Asian countries in the early times, buyers were eager to buy any goods
that were manufactured due to scarcity. During this time also products were basic and
simple. Due to scarcity and simplicity of products, most companies focuses on production
and not marketing. The essential idea was that products would sell themselves.

A production concept focuses on the internal potentials of the company and not
based on the desires and needs of the market. In situations like when competition is weak
or when demand goes beyond supply, a production-focused company can survive and
even flourish.

At the core of this concept is the principle of quality, performance, and

innovation. Businesses are customer-oriented, but they satisfy their needs through their
product development and provide flawless features. To be more specific, these companies
build products that are always at the top of their game, always the pioneers in a niche,
always enhancing and improving their products. They can’t place any product on the
market and expect people to like it, but rather enhance their technology with every new
release and become the best that’s out there.

Apple is a good example of a business based on the product concept. They

created computers, operating systems and other gadgets because it can and trusting
to sell the results. Apple’s iPod and iPhone have found a waiting market whiles its
Newton, the first version of Personal Digital Assistant (PDA) was a failure.

Sales Concept

A sales concept refers to the idea that people will buy more goods and services
through personal selling and advertising done aggressively to push them in the market.
Failure to understand the needs and wants of the customers is one of the risks of this
concept. The usual solution is to hire competent salespeople and advertisers who will
persuade customers to buy the product or the service.

This concept is also concentrating on people, except it doesn’t have a genuine

approach. Businesses that have the selling concept at their core work on the belief that
consumers won’t buy enough products and services unless you persuade them to. Long
ago, people didn’t have many options, and it was not so hard to convince them to try your
product. Today’s environment changed the game rules entirely.

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 If what mattered before were the cost and the proximity, today’s customer is
aware of many things and consumes a lot of information before making a decision. This
is how selling became a marketing concept.

There are various opinions about this concept. Some experts say it was only used
during WWII, and it was an aggressive way of doing business, others say selling is still a
viable concept in the marketing scheme. And for a good reason: there are still businesses
who put selling at the foundation of their activity, especially when their product benefits
are hard to explain. Example of this is the insurance companies.

Marketing Concept

During the 1960s companies recognize that they must understand first the needs
and wants of the target market and then create goods/services as a result. The probability
of goods/services being sold using this approach is high. Marketing concept is a
philosophy which states that organization must try hard to find out and satisfy the needs
and wants of consumers while at the same time accomplishing the organizational goals.

This concept is the one that puts the customer at the core of every business
activity. Product, advertising, sales, it’s all based on market research. So as we all fight
with the fast pace of industry changes, the marketing concept is a great choice when we
want to adapt our products to reality. Therefore, market research is an on-going process.

The marketing concept is also known as the ―pull strategy,‖ meaning businesses
are so powerful; customers will always return and buy more. In this case, the profits
result from customer satisfaction.

Samsung not only creates its products tailored to customers’ preferences, but it
also adds many incentives in its strategy: a good example is their popup store.

Relationship Concept

Relationship marketing is an approach that center on maintaining and improving

value-added long-term relationships with current customers, distributors, dealers and
suppliers. This customer-driven marketing comes in the form of alliances and partnership
among manufacturers, retailers and suppliers.

A good example is the United Laboratories Inc. (UNILAB) which continues to

practice relationship marketing with drugstore personnel. The company also has
maintained to use this approach with physicians, dentists, and other allied health
professionals in the drug industry. This way UNILAB is able to build solid, dependable,
mutual and trusting win-win relationships with treasured clientele.

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Societal Marketing Concept

This concept puts people’s prosperity above everything else. It is based on the
idea that to beat your competitors, your strategy should aim to take care of your
customers (society included) and to put profit second.

What differentiates this concept from others is that it also takes into account the
long-term strategy of the society the business activates in. Societal marketing is not the
same as social or social media marketing. At its core, the actions resulted from this type
of activities are close to what CSR does. Sustainability is the primary factor for the
business and the environment.

Societal marketing started in the ’60s and ’70s, but it became the most important
marketing concept in the 21st century, once global warming secured its place at the table
and forced companies to become very cautious with our resources.

The societal marketing concept is based on three interlinked aspects:

Society and human welfare – in every action, product, service or innovation, the company
must put society first;

Consumer’s satisfaction – products and services should be created to satisfy customer’s

needs;

Company profits – by taking care of human welfare and providing comfort, your business
will make a profit and will maximize its wealth in the long run.

One of the most common examples of societal marketing campaigns is the Coca Cola
Super Bowl Commercial 2014 ―America The Beautiful.‖

KNO WLEDGE SELF -CH ECK 1.4

Are companies that do an excellent job of satisfying consumer wants necessarily

acting in the best long-run interests of consumers and society? Defend your
answer.

ACTIVITY 1
Direction: Read the paragraph below and answer the following questions under it.

The marketing concept possibly sidesteps the potential conflicts among consumer
wants, consumer interests, and long-run societal welfare. Just consider: The fast-food
hamburger industry offers tasty but unhealthy food. The hamburgers have a high fat
content, and the restaurants promote fries and pies, two products high in starch and
fat. The products are wrapped in convenient packaging, which leads to much waste. In

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satisfying consumer wants, these restaurants may be hurting consumer health and causing
environmental problems.

Questions:
1. How can fast food chains adapt societal marketing concept in their operation?
2. Cite some fast food companies who are now working towards societal marketing.
What have they done so far?
3. How can a company strike a balance between satisfying consumer wants while
protecting social welfare?

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 Lesson 2: Goals of Marketing

Introduction
Marketing is all about goals. Without them, you have no way of knowing whether or
not your work is worthwhile.
Think of it like planning a trip. In order to know when you’ve arrived, you need to
select a destination first. Otherwise, you would be traveling aimlessly. There’s another
word for that: getting lost.
If your boss asked about where your company’s marketing was headed, you wouldn’t
want to say, ―We don’t know,‖ right? Of course not, you’d want to show you have a clear
plan, one that’s held accountable to hard numbers
Fortunately, setting goals doesn’t have to be difficult.
Kick-Start
Have you ever made a vision board? A vision
board is a collage of images and words
representing a person's wishes or goals, intended
to serve as inspiration or motivation.
Prepare a one whole “cartolina” and cut-out
images from newspapers, magazines and other
printed materials that illustrates the things that
you wish to achieve in life. Write a specific
month/year under each image as to when you target to acquire/meet it. Present your work
in class.
Each of us has our individual goals in our lives and these goals provide us direction. In
the same manner, businesses also have strategic goals and marketing has also their
specific goal that needs to be achieved.
To make the most of precious and often scarce marketing pesos, business owners must
develop and implement effective marketing strategies. Any strategy employed should be
designed with certain goal in mind. In order to be of maximum value, the goals should be
synced with the goals of the business.

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 D I SC USS I ON

The Nature of Marketing Goals

Marketing goals are statement of what results the company wants to achieve with
its marketing efforts. Just like any other goal, marketing goals should be clear. Goals
must be credible and realistic as well.

As an example, Disney’s goal is to make people happy. This is the mission

guiding all its business and marketing activity. It’s clear vision, and it’s measured along
the way. When there’s question about relevance of a particular activity, it’s always
reconciled to that crystal clear, overall goal of making people happy.

Goals are different from objectives. They should not be used interchangeably because it
will create confusion.

1. Marketing goals – top-level broad goals to show how the business can benefit
from channels. So, goals are the broad aims used to shape strategy. They describe
how marketing will contribute to the business key areas of growing sales,
communicating with audience and saving money.

2. Marketing objectives – Specific SMART objectives to give clear direction and

commercial targets. Objectives are the SMART targets for marketing which can
be used to track performance against target. The SMART mnemonic helps a test
or filter which the firm can use to assess the quality of measures. SMART is:

a. Specific – the detail in the information sufficient to pinpoint problems or

opportunities; the objective sufficiently detailed to measure real-world
problems and opportunities.

b. Measurable – a quantitative attribute to be applied to create a metric.

c. Actionable – the information be used to improve performance

d. Relevant – the information be applied to the specific problem faced by the

marketer.

e. Time-bound – objectives be set for different time period as targets to review

against.

3. Marketing KPIs – Key Performance Indicators (KPIs) are used to check that
marketing activities of a company are on track. KPIs are specific metrics which
are used to track performance to make sure the firm is on track to meet specific

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 objectives. They are sometimes known as performance drivers or critical success
factors for this reason.
As a marketer, you are not judged based only on activities or productivity. Your value
is connected to your results. In order for your marketing to be meaningful, it needs to
move the needle on key business objectives.
To do this, make sure your marketing goals are tied into a business objective. For
example, you may want to gain more social media followers. This is great! But, how does
this help the business?
Here are a few benefits:
- Increased brand awareness.
- Establish your business as an authority.
- Reach new customers.
These are all objectives that help make a meaningful impact on your business. So,
when setting goals, select ones that will drive business results, and not just produce
impressive-sounding numbers that aren’t actually relevant.

KNO WLEDGE SELF -CH ECK 2.1

Differentiate marketing goals and marketing objectives.

Developing Marketing Goals

Goals are expressed in broad terms and do not have specific information about
where the organization currently stands or where it wishes to be in the future. A goal is
not specific and is not based on a specific benchmark. Goals are important because they
indicate the direction in which the company attempts to move and the set of priorities it
will utilize in evaluating options for making decisions.
In formulating goals for marketing plan, it is vital to bear in mind that goals must
be attainable, consistent, comprehensive and a bit intangible. Goals might become
ineffective and dysfunctional is these things are not given focus.
1. Attainability

Goals must be realistic so that important parties who will be reaching must see
each goal as reasonable. Setting realistic goals provides clear direction for the people
to attain it. Assessment of the internal and external environment is essential in order
to determine if a goal is realistic.

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 For instance, it is possible for a firm holding the second place in the market share
to beat the leading brand and become the industry leader if the only difference
between them is just 1%. All things equal, employees of the company will be
motivated to work hard toward the goal of becoming number one in the industry.

Unrealistic goal is demotivational, because it reflects that management is

irrational. Given that one of the chief benefits of the formulating goals is to motivate
employees in the direction of better performance, setting unrealistic goals can cause
chaos.

2. Consistency

Management should deliberately set goals that are consistent with one another.
Each goal should be congruent to the achievement of other goals.

For example, increasing market share and extending effort to have the highest
profit margins in the industry are equally reasonable goals by themselves but
together they are inconsistent. The reason is that, when companies aim to increase
the number of buyers they typically reduce prices thus profit margins are also
reduced.

A good example of consistent goals is to enhance both sales and market share.
Aiming to increase the sales in the same way helps the company increase its
market share.

Goals across and within functional areas should also fit together. This is a major
concern especially in big organizations. It emphasizes the necessity for great deal
of information sharing during goal-formulation process.

3. Comprehensiveness

The process of goal-setting must be comprehensive. Functional area must be able

to formulate its own goals that relate to the organization’s goals.

For instance, marketing department will be at a lost if goals are set only in terms
of advancing technology with the firm’s products. The goals should be stated so that
both marketing and research and development department can work jointly to help
proceed with the organizational goal of offering that most technologically advanced
products. Marketing needs to work on the demand side of this effort through
measuring customer needs and staying attuned to trends in the external environment.
While research and development will focus on the supply side of conducting basic
and applied research and staying abreast of all key technological innovations.

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 The roles of all parties in the organization should be clarified by goals. Functional
areas that do not go with any of the organization’s goals should inquire their need for
future resources and their ability to obtain.

4. Intangibility

Goals should be intangible. Planners often confuse goals with strategies,

objectives and even tactics. A goal is not an action the firm can take. It is an
outcome the organization wishes to realize. Actions like hiring 200 new
salespeople or making double the advertising budget are not goals. Both could be
attained by the company with adequate resources. Having the best trained sales
force and the most creative and effective advertising campaigns are examples of
good goals. The use of best trained, most creative and most effective is the
intangibility part. These terms are motivational because they promote
comparisons with competitors. They are continually pushed for superiority, as
their open-ended nature gives room for improvement.

KNO WLEDGE SELF -CH ECK 2.2

What are the setbacks when marketing goals are not attainable, consistent,
comprehensive and intangible?

Goals of Marketing
Great marketing plans are built on a foundation of goals that represent
your most pressing business needs. But how do you define the right goals? It turns
out that there are many common goals across business types. These are the goals
that consistently underpinned the most successful outcomes.

1. Increase sales and profits. This one shouldn’t be a surprise because it tends
to be the ultimate objective for your marketing efforts. This can be a
challenging goal for some marketing organizations with longer sales cycles —
 in that case, it is often best to choose a leading indicator of growth. You can
measure your success in terms of revenue or bookings based on your business
model.

2. Generate / increase leads (or opportunities). If you want a more real-time

measurement of marketing effectiveness, pick an outcome that shows up
earlier in the sales cycle. If you are measuring leads, it is best to choose a
high-quality lead metric like marketing qualified leads (MQLs) or sales
accepted leads (SALs) to avoid declaring success based on generating

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 unqualified leads. Opportunities are even better because they have been fully
accepted by the sales team, creating better alignment.

3. Acquire new customers. Bringing a new customer onboard is a great

objective for many types of businesses, regardless of whether you sell to
individuals or to companies. While this one seems pretty easy to measure,
some companies have difficulty reliably counting new customers.

4. Reduce churn (or retain customers). If you have a business, this can be one
of the most important measurements for your long term success. You can
measure this based on retention (I retained 95% of my customers) or churn
(we churned 5% of our customers).

5. Up-sell and cross-sell. If you have an established set of customers, a great

way to grow is to sell more of the same product to existing customers (up-sell)
or sell new solutions to existing customers (cross-sell). This is another one
that can be difficult to measure for some companies based on their systems,
but it is a consistently popular goal for more mature companies.

6. Improve awareness. It’s easy to say that raising your awareness is a goal of
your marketing, but it is challenging to measure. If this is your goal, you
might choose a resulting indicator as a measurement for awareness, like
inbound leads, web traffic, or positive media mentions. The ultimate measure
is an awareness research study with a baseline, but that data is not always
available.

7. Increase customer satisfaction. Over the years, marketers have been

increasingly charged with raising customer satisfaction — especially if the
marketing team has any product responsibility. Functions like customer
marketing or customer advocacy marketing are more common as a result. The
most common measurement for customer satisfaction is the Net Promoter
Score (NPS), but you can also choose other survey instruments.

8. Launch a new product or solution. Bringing new solutions to market helps

drive growth for your company — and product marketing teams are often
responsible for launch management. Be careful not to measure your success
by simply launching the product — instead, you should choose an indicator of
market acceptance, like inquiries, reviews, leads, or new sales of the product
depending on the length of the sales cycle.

9. Re-brand or re-position. Successfully re-positioning or re-branding your

company or your product can accelerate growth in your business. This is
another one that can be tricky to measure, but you should choose metrics like

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 inclusion of your new positioning in media and analyst communications (as a
leading indicator), brand awareness, or increased growth.

10. Increase web traffic. Sometimes your goal is pretty simple — like getting
more people to show up to your website. This another area where a quality
metric is really important — make sure you can measure qualified traffic,
bounce rate, conversions, time on page, or similar indicators that you got the
right people to come to your site.

11. Refine go-to-market strategy. Whether you are in a young company that is
trying to find their right strategy to bring products to market, or a more mature
company, the right strategy can make a break your success. Like other project-
based goals, you don’t want to measure ―completion of task‖, instead you
should focus on the result of your efforts, including accelerating leads, sales,
or pipeline.

12. Launch a new initiative. This is my ―other‖ goal for marketing. You may
have a new account based marketing program in the works, a CRM
implementation, a new customer program, a merger, or any other strategic
initiative. Whatever it is, make sure you have a clear way to measure the
results.

KNO WLEDGE SELF -CH ECK 2.3

Can you cite other possible marketing goals that an organization may
undertake?

ACTIVITY 2
Direction: Read the article below and answer the following questions under it.

Yellow Cab Pizza Co.

Often mistaken as an international brand, Yellow Cab Pizza Co. is actually a local
fast-food chain that offers New York-style pizzas. The name Yellow Cab came from the
colors yellow and black, which are common colors of taxicabs. Albert Tan, Eric Puno,
and Henry Lee founded the pizza company in 2001 and it is now owned by the Max’s
Group. It currently has 130 stores nationwide. Each store features an open kitchen,
exposed pipes graffiti, and concrete walls that capture the New Yorker vibe.

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 The company’s vision is customer engagement and its goal is customer loyalty.
Achieving this goal is concerted effort. The company creates products that embody
innovation and value for money and employees are trained to be customer oriented and
improve food, service and cleanliness on a daily basis. This ensures that customer keep
coming back and that more will follow.

Questions:
1. What does Yellow Cab do to maintain customer loyalty?
2. Do you think that the goal of keeping loyal customers is enough to sustain the
business considering that it has many competitors? Why or why not?

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 Lesson 3: Contemporary Approaches to Marketing

Introduction
Marketing has evolved overtime and underwent the consequent changes. The earlier
marketing approaches slowly gave way to the newer approaches, corresponding to the
changing trends in the consumer’s buying behaviours, perceptions and expectations about
the products and services.
Today, marketing is no longer traditional. It is recognized as universal need and an
important factor for success for both profit and non-profit organizations. The application
of marketing has been extended far beyond the creation of goods and services.
Kick-Start

Search for companies who are currently

engaged into contemporary marketing
activities and prepare a power point
presentation that includes images and
descriptions of the marketing campaigns and
initiatives. Share your work in class.

D I SC USS I ON
Not-for-Profit Organization Marketing
A not-for-profit organization is a type of organization that does not earn profits
for its owners. All of the money earned by or donated to a not for profit organization is
used in pursuing the organization’s objectives. A not-for-profit organization is an
organization that live to attain some goals apart from the usual goals of profit, market
share and return of investment. It operates in both public and private sectors. Not-for-
profit organizations include churches, public schools, public charities, public clinics and
hospitals, political organizations, legal aid societies, volunteer services organizations,
labor unions, professional associations, research institutes, museums, and some
governmental agencies. With the intention of soliciting funds for their operations these
not-for-profit organizations adopt marketing approach in order to easily and successfully
meet their goals.

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Person Marketing
Person marketing entails endeavors aimed at cultivating the attention, interest and
preferences of a target market toward a celebrity or authority figure. These celebrities
could be real individuals or fictitious ones. A good example of person marketing is a
political candidate who promotes his candidacy for a particular position. Authors use
person marketing to promote their books is another example. Celebrity endorsement is
another instance where person marketing could be applied. Celebrity endorsement makes
use of famous athletes, entertainers and experts or authority figures to promote products
for profit organizations or social causes for not-for-profit organization.
Place Marketing
Place marketing or place branding attempts to exert a pull on customers to
particular areas. Cities, provinces and regions here in the Philippines make known their
beautiful tourist spots to attract locales and foreigners. They also promote their places as
good sites and nice choice for businesses. Place marketing is significant for tourism,
businesses and recruit of workers. Here in the Philippines, Solaire and Citty of Dreams in
Pasay City are expensive casinos that are attractive and customers ate tempted by their
fine food, lavish entertainment and gambling.
Cause Marketing
Cause marketing is the identification and marketing of social issue, cause or idea
to selected target markets. It covers a broad sort of issues like literacy, physical fitness,
awareness of child obesity, environmental protection, elimination of birth defects, child-
abuse prevention and preventing drunk-driving. A common practice now is for profit
organizations to pair their products to social causes.
Event Marketing
An event is a live multimedia package with a preconceived concept, customized
or modified to achieve the clients’ objective of reaching out and suitably influencing the
sharply defined, specially gathered target audience by providing a complete sensual
experience and an avenue for two-way interaction.
Event marketing is the marketing of sport, culture and charity activities to
selected target markets. It consists of sponsorship by companies of different events
related to these activities to seek public awareness and reinforcement their images by
partnering their products to the events.
Green Marketing
Green marketing refers to the process of selling products and/or services based on
their environmental benefits. Such product or service may be environmentally friendly in
itself or produced and/or packaged in environmentally friendly way.

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The obvious assumption of green marketing is that potential consumers will view a
product or service’s greenness‖ as a benefit and base their buying decision accordingly.

KNO WLEDGE SELF -CH ECK 3.1

Among the contemporary approaches to marketing, what do you think is the
most relevant approach where companies can take part in combating COVID-
19 pandemic?

ACTIVITY 3
Direction: Read the article below and answer the following questions under it.

Johnson & Johnsons Tylenol Crisis

In 1982, Johnson & Johnson’s – a leading pharmaceutical and household product

manufacturer in the United Sates – experienced a great crisis with one of its products.
Reports emerged that seven people in Chicago died because they took Extra-strength
Tylenol, a best-selling drug of the company at that time, which was laced with cyanide.
The news had a significant impact on the sales of Tylenol. Previously, the product
enjoyed great success in the market, gaining 35 percent of the over-the-counter pain
reliever market, and contributing 17 percent to Johnson & Johnson’s total income in
1091. Weeks after the deaths were reported, the market share of Tylenol slid to eight
percent.

It was predicted that the brand would never recover from thus fiasco. However, J
& J proved this prediction wrong as it was able to counter the effects of the poisoning
spree on their market value and image through affective corporate crisis management.
Despite knowing that the company had no fault in the poisoning, J&J sought to uphold
public safety and made the daring and costly move of recalling all 31 million bottles of
Tylenol capsules distributed nationwide. The company also worked openly with the
media in informing the public about the situation through press releases and by
establishing a hotline for customer inquiries. To ensure the safety of the consumers in the
future, it developed an innovative tamper-proof packaging, which set the standard for
other drug manufacturers. The crisis even led to the passing of the Tylenol Bill in 1983;
the law ensured that malicious tampering with consumer products is considered a federal
offense.
After investing more than $100 million in recalling and re-launching Tylenol and
implementing a strong marketing campaign, J&J was able to put the brand back in terms
of sales and popularity and regain its position in the market.

Questions:
1. What was the effect of the cyanide poisoning on Tylenol as brand and on Johnson
& Johnson’s as company?

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 2. What did J & J do to address the crisis? Were the steps taken effective?
3. Which among the contemporary marketing approaches is applicable in this case?
Explain.

References:
Serrano, AC. (2016). Principles of Marketing
Zarate, CA. (2017). Principles of Marketing
https://keydifferences.com/difference-between-needs-and-wants.html
https://coschedule.com/marketing-strategy/marketing-goals/
https://saylordotorg.github.io/text_principles-of-marketing-v2.0/s04-what-is-
marketing.html
https://www.professionalacademy.com/blogs-and-advice/marketing-theories-maslows-
hierarchy-of-needs
https://medium.com/multiplier-magazine/the-top-12-marketing-goals-for-your-2018-
plan-e5722b734955
https://www.preservearticles.com/management/marketing-earlier-and-contemporary-
approaches-to-marketing/30365

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