PRINTABLE LEARNING MATERIAL

MODULE 1 - TOPIC 2: TRADITIONAL VS CONTEMPORARY MARKETING

Learning Outcome:
The learners:
Identify and explain the traditional and contemporary approaches to marketing.
(DLSLABM11MarkPrin-IIIa-2)

Traditional Marketing
An umbrella term that covers the wide array of advertising channels we see daily. These may include print
media, billboard and TV advertising, flyer and poster campaigns and radio broadcast advertising.
They are not necessarily outdated, however, research has shown those companies that have abandoned
simply using these channels, and adopted contemporary marketing channels.

1. Ansoff's Matrix, a theory that proposes products/services fall into one of four categories depending on
the market and the product released.

(This image is lifted from https://www.calltheone.com/en/consultants/ansoff-matrix)

Four Growth Strategies of Ansoff Matrix:
a. Market Penetration - assumes that you get more out of an existing product in an existing market.
You will therefore try to sell more existing products. UPSELLING is also referred to as market
deepening is one example of this, wherein the company aims to sell more products to an existing
customer. An example of this is when a customer was being asked if he/she wants to upgrade his
McDonald’s Fries to Large instead of Regular.

b. Product Development - is wherein the company will develop new products for existing customers.
You may sell these products through CROSS-SELLING wherein you offer extra products to an existing
customer. Suppose you sell business software, then you can, for example, offer to make a website for
the company and to take care of the web hosting. This way you get more out of an existing customer.

3. Market Development - aims to appeal to other customers with your current products or services.
You can do this for example by playing with the price of the product. An example of this is Apple. First
they came with the iPod, an expensive device for the true music lover (the early adopters). By also
launching a cheaper iPod shuffle, Apple is tapping into a new group of customers who also love music,
but are less willing to pay a premium price for it.

4. Diversification - The riskiest strategy in the Ansoff matrix is the Diversification strategy. This
means that you will develop a new product for new customers. An example of this is Apple's iPad
mentioned above. This strategy is risky because you first have to wait and see if there is actually a
demand for the product.

2. Marketing Mix. These include product, place, promotion, price, physical evidence, process and people.
All these components, when combined, create a solid marketing proposal. However, this theory as well as
Ansoff's, can be drastically improved with the use of contemporary marketing strategies.
 (This image is lifted from https://digitalschoolofmarketing.co.za/blog/what-is-the-marketing-mix/)

Traditional Marketing
 seeks to pull customers to a product, whatever the cost. It is, for this reason, considered to be
fairly outdated as it does not consider the customer they are selling to, more the market that the
company operates within.

Contemporary Marketing
 refers to theories that stress the importance of customer orientation versus the traditional market
orientation.
 They are strategies that, when implemented, offer greater support for their client base with a
product range that varies depending on what the target market desires rather than what the
company wants them to have.
Contemporary Marketing Strategies:

1. Co-Creation - This theory suggests creating a bridge between customer and business through
gamification. A practical example would be attracting customers through social media content relevant
to their needs or writing article blog posts that have useful information. Research conducted by Harvard
business school and London school for business found that businesses that utilized the contemporary
marketing strategy and incorporating both co-creative and shared value ideas, over the long run
prospered far more than those companies who hadn't chosen this avenue.

(This image is lifted from https://organisatieleren.be/co-creation)

For more additional information about Co-creation, please to access: https://organisatieleren.be/co-

creation
2. Shared Value - Coined in 2011 by Harvard Business professors Michael E. Porter and Mark R. Kramer,
the concept focuses on the idea that “companies could bring business and society back together if they
redefined their purpose as creating ‘shared value’—generating economic value in a way that also produces
value for society by addressing its challenges”

(This images is lifted from https://latitudefiftyfive.com/blog/creating-shared-value)

Licensing & Attributions / References

 Digital School of Marketing (2019, Oct 24) What is the Marketing Mix? Retrieved from:
https://digitalschoolofmarketing.co.za/blog/what-is-the-marketing-mix/
 Mrema, Renata (2018, Nov 14) How to create a Shared Value Business Model. Retrieved from:
https://latitudefiftyfive.com/blog/creating-shared-value
 Move Organizational Learning (2021, Jan 18) Co-Creation: What is it about? Retrieved from:
https://organisatieleren.be/co-creation
 Vlieger, Rick (2019, Mar 25) Ansoff Matrix. Retrieved from: https://www.calltheone.com/en/consultants/ansoff-matrix
 Williamson, Will (2020, Feb. 24) Traditional Vs Contemporary Marketing Strategies. [Reading Material] Retrieved
from: https://blog.jdrgroup.co.uk/digital-prosperity-blog/traditional-vs-contemporary-marketing-strategies