BUSINESS MARKETING

At the end of this lesson, the students will be

able to:
Define and understand marketing,
Illustrate the utility concept of marketing
Identify the characteristics of a marketing
organization, and
Describe the traditional approaches to marketing
PROCTER & GAMBLE’S TIDE: A MARKETING SUCCESS
STORY
Procter & Gamble (P & G) is one of the leading manufacturing
companies which has developed over 100 product brands that are
among the most recognized in the world. Some of the P & G’s
products are Crest toothpaste, Gillette razors, Ivory soap, and
Tide detergent. In particular, tide detergent. In particular, Tide
detergent is recognized as a top brand and an important
household name in many countries.
 THE ORIGINS OF PROCTER & GAMBLE
Procter & Gamble was established in 1837 when William Procter, a
candle maker, and his brother-in-law William Gamble, who was a
soap maker, decided to become business partners and combined their
professions to establish a family-run business. During the first half of
the 20th century, Procter & Gamble became one of several
manufacturing companies that were recognized as leaders in the
industry. At that time P & G strove to increase the company’s lead
over its competitors by developing new and more effective household
products.
INTRODUCING TIDE: THE WASHDAY MIRACLE
In the 1930s, the company’s scientist worked on developing a heavy-duty
laundry detergent that would clean heavy stains without leaving clothes hard
and stiff. Their efforts, however, were unsuccessful and the company shifted
its focus to other projects. Despite the setback, one of the company’s
researchers, David Byerly, continued with developing the detergent as a side-
project called Project X. In 1944, Byerly finally succeeded in creating a
prototype cleaning agent and in 1946, Procter & Gamble launched the product
with the brand name Tide. Tide was launched with the slogan “Oceans of
Suds” and was marketed as “The Wash Day Miracle.”
MARKETING EFFORTS
Procter & Gamble put much effort in building the Tide
brand as an effective cleaning agent. At time,
consumers were looking for a detergent that easily
dissolves in water and can wash well. Tide was
developed as a cleaning agent which dissolved well in
water compared to soaps; it also made a lot of suds,
which aided the cleaning process. These
characteristics were used by the company as the main
selling points of the product.
One significant factor which aided marketing efforts was the Tide
logo, which was developed to be eye-catching and memorable.
The logo used the bright yellow and orange colors for the
concentric circles that formed the target on the Tide logo. The
brand name was colored blue to symbolize calmness, and was
perfect complement to the bright colors of the logo. The logo is
so effective that through the years, the company has not made
any significant changes to it; it retains the color combination and
the concentrix ring design.
With the advent of washing machines in the 1950s, Procter & Gamble made sure that a box
of Tide was provided free with every purchase of a washing machine. This partnership
continued until the 1970s, and resulted in Americans becoming accustomed to using tide
detergent market in the United States.

Over the years, Procter & Gamble continued to innovate the Tide product to meet the
various needs of its customers. In 1968, Tide XK was launched, which was designed to
remove tough stains such as blood and food stains. In 1984, Liquid tide was introduced.
Four years later the company launched Tide with bleach which was effective for both white
and colored clothes. In 2005, a variant of tide which can be used in cold water was
introduced, along with a compact Tide stain remover which came as a pen. The company
also effectively utilized advertising through multiple platforms such as television, radio,
print, billboard ads, and the internet.
MARKETING DOMINANCE
The marketing efforts of Procter & Gamble eventually established Tide as a
leading detergent product in many countries throughout the world. Tide has
become a household name in the United States. In 2009 a US consumer survey
included Tide as one of three products that consumers would be unwilling to
give up despite difficult economic conditions brought about by the recession
in 2007. Tide is also one of the strongest brands in terms of consumer recall.
As of 2013. It is estimated that Tide has captured around 30 to 40 percent of
the worldwide detergent market and has sold twice as much as the next
leading detergent brand. This is despite the fact that Tide costs twice as
much as other competing products in the market.
DISCUSSION QUESTIONS
1. What consumer need was addressed with the introduction of Tide
detergent in the market?
2. Describe the marketing efforts implemented by Procter &
Gamble with regard to Tide. Which of them, in your view, had
the most significant impact on the popularity of Tide?
3. How does P & G maintain Tide’s “staying power” in the market?
4. What proof can you cite regarding the effective marketing for
Tide?
LET’S LEARN
The goal of marketing should not be confined to just making a
sale; it should also be about satisfying customers’ needs and
wants. According to Theodore Levitt, the ultimate purpose of a
business is to “find and keep customers”. Marketing plays an
important role in achieving this purpose.

It is a dream of any business owner to maintain loyal customers.

However, this will not be possible if the business does not have a
marketing program that helps in identifying, satisfying, and
retaining customers who will avail of its products or services no
matter what is being offered in the market.
MARKETING TERMS
•
A marketer is a person who identifies the goods and
services needed or wanted by customers and
markets them.
• A customer is a person or a business that buys goods
or avails of services produced or offered by a firm.
• A consumer refers to a person who acquires goods
or services for direct use and has no intention of
reselling them or using them to create another good
or services
 MARKETING DEFINED
In July 2013, the American Marketing Association approved its latest
definition of 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.”

Through the years, the definition of marketing has included non-profit

institutions like education and health care providers. It has also
emphasized that the business’ responsibility goes beyond the survival of
the firm; the betterment of society should also be taken into account.
Marketing activities apply not only to profit-oriented businesses but also
to non-profit organizations.
The production and selling of goods and services are the main functions in most
organizations. These functions take on the supply and demand function which are essential
in the discipline of economics. As a core function, selling is one aspect of marketing. With
this, marketing takes its roots from economics.

Marketing is now being supported by other disciplines, namely psychology and sociology , to
further explain how consumers make purchase decisions. Marketing also uses mathematics
for marketing research and information technology for the promotion and distribution of
goods and services.

More often than not, marketing is critical to any business’ success. However, its importance
and extent depend on the perspective of the owner, the size of the business , and the kind of
products or services being offered. Large organizations allot a large slice of their budget for
marketing expenditures and use multimedia ads and extensive sales efforts to achieve their
sales targets. Companies like real estate property developers and travel agencies utilize
brochures and websites to market their services. Small businesses, meanwhile, mainly rely
on word-of-mouth advertising.
 UTILITY CONCEPT OF MARKETING
Marketing has also used the concept of utility, which is the
power of a good or service to satisfy a particular need or
want of a consumer. It is also the term for the benefit that
consumers derive from acquiring and using a particular good
or service.

In marketing, a firm creates and distributes a good to create

a particular value for the consumers. Marketing uses four
kinds of utility.
1. FORM UTILITY
It refers to the conversion of raw materials into products that suit the
preferences of consumers so that they do not have to create their desired
products themselves.

A similar utility called task utility refers to offering services which consumers
may not be capable of doing or may not like to do themselves.

The marketer should be able to communicate well with the consumers so he

or she can identify and consolidate their preferences and ensure that the
product or service meets their expectations.
2. PLACE UTILITY
It refers to the availability of the product or service at
accessible locations. Marketers devise ways to provide
value through availability, ensuring that consumers can
easily have the goods or use the service.

Delivery service is popular in restaurants. Online

shopping gives consumers the convenience to shop and
receive their purchases at the comfort of their houses.
3. TIME UTILITY
It refers to the satisfaction derived by customers in
availing of products or services on time.

Restaurants promise prompt delivery, sometimes

with a guarantee of giving the orders free of charge
if they are delivered late. They also offer free
appetizers to dine-in customers so they will not feel
impatient while waiting for their orders
4. POSSESSION UTILITY
It refers to ensuring that consumers have full possession of the
product or service at the right time, so this overlaps with time
and place utilities. Marketers facilitate this utility through fast
payment processing and delivery.

They can also offer credit facilities for products that customers
cannot afford to pay in cash at the moment. Easy transfer of
ownership such as transfer of title for a house and lot is another
way of creating value for the customer.
MARKETING TERMS
EXCHANGE is the process of offering something to another
and then being offered something in return.

TRANSACTION is an agreement between a buyer and a

seller to exchange goods or services. The exchange
should involve money or some other resource that is of
value to the organization offering the need-satisfying
product or service.
THE MARKETING ORGANIZATION

refers to the department in a corporation that ensures
the smooth flow of marketing plans, policies, and
programs that monitor all sales activities, customer
services, and distribution and promotion efforts.
 the marketing organization can be best described with
the Cs of marketing which describe six aspects of the
organization: consumer content, company capabilities,
communication, competition, cross-functional contact,
and community content.
CONSUMER CONTENT
 The exchange process has changed dramatically in recent years as
consumers are now able to study a wide array of choices before they make
the actual purchase. Consumers access the internet to obtain information
about products and services they would like to avail. Therefore, businesses
rely on their marketing organizations to keep customers loyal to the
products and services they offer.
 any organization that employs marketing should keep customers informed
about what they offer and should always be in constant contact with them.
Marketers should be updated on their customers’ behaviors, values,
interests, and other factors that influence their purchases.
 a consumer oriented firm works toward satisfying customers’ needs before
creating products or offering services.
COMPANY CAPABILITIES

To be on a par with competitors, marketing
organizations need to strengthen their capabilities in
production and operations to develop and produce goods
that will meet consumer needs.
COMMUNICATION

a marketing organization must have a positive,
long-lasting relationship with its customers
because they constantly look for cues provided by
the organization as they make their purchase
decisions. A negative brand image results in low
sales.
COMPETITION

the real challenge for any organization is to face
its strongest competitor head on. It should know
the competitor’s strengths and weaknesses and
determine the best way to respond.
 many marketing organizations fail to distinguish
the real meaning of competition when they watch
out only for similar companies.
CROSS-FUNCTIONAL CONTACT
 a marketing organization cannot work alone without the
support and assistance of other departments. For instance, an
effective and creative advertising team cannot assure good sales
without an equally reliable and dependable sales force. The
composition of the sales team is made possible through the
efforts of the recruitment personnel in the human resource
department. A creative advertisement idea will not be realized
without a budget, which is managed and approved by the
finance department. All departments of an organization must
work together to successfully meet its target and objectives.
COMMUNITY CONTACT

a marketing organization is updated with local,
international, and community news. It has
constant contact with different agencies and
organizations within its surroundings. It also
personifies corporate social responsibility by
integrating sustainability and ethics in
conducting business. The organization also
acknowledges the contributions of its
stakeholders.
MARKETING TERM
PERSONAL SELLING is a promotional tool
wherein a salesperson uses selling techniques
to persuade a customer to purchase a good or
avail of a service. It is the use of sales skills
to build a personal relationship with a
customer.
TRADITIONAL APPROACHES IN MARKETING
There are three additional
approaches in marketing, which
focus less on the customers’ needs
and wants and more on other factors
such as production, production, and
sales.
PRODUCTION CONCEPT
It starts with the production process and ensures
that the firm produces high quality goods. Then
the next task is to find people who will buy the
products. The philosophy of this approach is that
consumers favor companies that produce high
quality and affordable goods, so it is necessary to
maintain efficiency in production and distribution.
PRODUCT CONCEPT
In this approach, it is believed that a product
should be of high quality, of excellent
performance, and with innovative features.
Manufacturers who use this approach
emphasize the importance of innovation as
the key to business success.
SALES CONCEPT
Production techniques became more elaborate and sophisticated
in the 1950s. High-quality products and services continued to be
provided but companies had difficulty selling them to customers.
Buyers were unwilling to purchase goods and avail of services
that they thought were not essential, especially when companies
were not exerting extra effort to promote or inform them about
what they were selling. This convinced companies to employ a
sales force to persuade customers to buy. Personal selling
became the name of the game. The sales force had to entice
consumers to purchase goods and services.
Sales personnel use the art of persuasion to
influence consumers’ purchase decisions. In
this approach, marketing becomes
synonymous with selling. People do not
recognize all the other activities of marketing
except selling.
SUMMARY
 Marketing aims not only to earn profit but ultimately satisfy customer needs
and wants. The definition of marketing encompasses profit and non-profit
organizations and includes sustainability and corporate social responsibility.
 Marketing uses the concept of utility, which is the power of a good or
service to satisfy a particular need or want. Marketing uses four kinds of
utility: form, time, place and possession.
 The marketing organization can be best described using the Cs of
marketing, namely customer content, competition, cross-functional contact,
community content, company capabilities, and communication.
 The three traditional approaches to marketing are production, product, and
selling concepts.
MARKETING EXPERIENCE
You will be assigned a type of marketing utility.
You shall come up with five examples of products
or services for each type. Discuss the examples in
the class.
MARKETER AT THE FOREFRONT
FASTFOOD RESTAURANTS
Filipinos love to eat; an average Filipino family spends a
big chunk of its budget on food. Today, more and more
Filipinos eat out especially in fast food restaurants. This
is the reason why the fast food industry has grown rapidly
by the turn of the 21st century. At least 2,000 fast food
restaurants thrive in the Philippines market, with 25% of
consumers eating at fast food restaurants at least once a
week.
THE GROWING POPULARITY OF FAST FOOD
RESTAURANTS
There is an increasing desire for Filipino consumers to eat outside of their
homes to avoid the hassle of preparing home-cooked meals. Increasingly,
marketers of fast food restaurants have found ways to attract more
customers. Aside from individual budget meals, group meals or sets of
dishes offered at affordable prices are offered as well.

Have you observed the proliferation of fast food outlets in many locations
where people go most of the time? Marketers use place and time utilities in
fast food restaurants. They are readily accessible at any time when a
hungry stomach starts looking for something to eat fast.
Since most fast food restaurants like Jollibee and McDonald’s target
children, they package the meals with toys and partner with movie outfits
to feature famous cartoon characters. They also have outlets with
playgrounds to attract more young customers.

Fast food restaurants offer budget meals, making them a cheap alternative
for budget conscious Filipinos. They also have convenient drive throughs
and polite and courteous service crews.
RISING CASES OF HEALTH-RELATED PROBLEMS
Despite the steady growth of the fast food industry, health care practitioners
blame the high calorie, salt, and fat content of fast food for causing serious
health problems like obesity among children and adults.

The rise of obesity cases in recent years all over the world has been very
alarming. In the Philippines, obesity is fast becoming a problem and the
primary suspect is unhealthy food like items served in fast food restaurants.
Burgers, French fries, softdrinks, hotdogs, and chicken are prepared with
artificial colors, flavors, preservatives, and chemicals which may have
negative long-term effects on children.
Filipino consumers still eat fast food despite the detrimental health effects
especially to children for a number of reasons. First, fast food is a fast and
affordable way to satisfy one’s hunger. Second, not all parents are educated
about its harmful effects. Lastly, fast food items and advertisements attract
young and adult consumers alike, convincing them even more to patronize fast
food establishments.
DISCUSSION QUESTIONS
1. What factors contribute to the steady growth of the fast food
industry?
2. What is the primary reason of Filipinos for patronizing fast food
restaurants despite the harmful effects of the food they offer?
3. How do marketers use place and time utilities in fast food
restaurants?
4. What solutions can you give to address the health problems
experienced with fast food products? Explain how these can be
integrated in the marketing plans of fast food restaurants.
LESSON OBJECTIVES:


enumerate and discuss the goals of
marketing and
 explain the importance of the goals through
specific examples
GOALS OF MARKETING
Starbucks has not only changed the way coffee is perceived and
served, but it has also erased the imaginary line between adult
consumers and young coffee drinkers. The world’s coffee lovers
look at starbucks not only as a unique coffee-drinking experience
but also an anywhere, anytime beverage company. It has also
become a way of life for many young professionals.
HISTORY OF STARBUCKS

Starbucks was established in 1971 in Seattle, Washington by teachers

Jerry Baldwin, Zev Siegel, and writer Gordon Bowker. The three were
inspired by their friend Alfred Peet, who founded Peet’s Coffee & Tea,
and decided to establish a company which will well high-quality
roasted and coffee-roasting equipment. The company was named
“Starbucks” after a character from the novel Moby Dick. The iconic
logo of Starbucks was inspired by the siren, a mythical sea creature, in
keeping with the nautical theme of the company. Starbucks soon made
a name for itself as a popular coffee roaster. At that time, the store
was a coffee bean hub, meaning it only sold roasted coffee beans to its
customers. Coffee was only provided for customers as samples.
The present concept of Starbucks stores as coffee houses is based
on an idea proposed by Howard Schultz, who was brought in as
director of marketing in 1982. He was inspired by his experience
in Italy, where cafes not only sell gourmet coffee but also provide
a place where customers can meet, talk, and relax. When Schultz
bought the company from its founders in 1987 and became CEO,
he expanded Starbucks and opened several outlets throughout
Seattle. Starbucks outlets were also opened in the cities of
Vancouver and Chicago. By 1989, Starbucks had 46 stores
throughout the United States.
THE STARBUCKS EXPERIENCE
Every Starbucks bar counter has a barista who is an expert in
preparing coffee. A Starbucks barista is trained in grounding
coffee beans, and serving fresh coffee. He/She should know all
the regular customers of the store by name and remember their
coffee preferences. He/She must also be able to pour coffee with
one hand and whipped cream with the other while talking with the
customer. This is what is later on called the Starbucks experience.
This is a unique way of serving coffee while building a more
personal relationship with the patrons.
Today, Starbucks is the number one provider of not only the finest
coffee but also of a unique coffee-drinking experience in the
world, specifically in 24,000 stores in 70 countries. True to its
mission, “to inspire and nurture the human spirit- one person, one
cup and one neighborhood at a time,’ Starbucks continues to meet
this goal by creating value and satisfaction for its customers.
DISCUSSION QUESTIONS

1. How did Starbucks evolve from a coffee bean roaster to a

café?
2. What customer need did Schultz seek to meet with the
changes he made in Starbucks?
3. What is the distinguishing characteristic of the “Starbucks
experience”?
MARKETING TERMS
 BRAND is a symbol, logo, words, or a combination of these elements that a
company uses to distinguish its products or services from others.
 BRAND AWARENESS is the extent to which a brand is recognized by
potential customers and is correctly associated with a particular product or
service.
 LEAD VOLUME is the number of sales leads that will ultimately be
converted into customers.
 SALES LEAD is a potential customer who is interested in the product or
service.
 THOUGHT LEADERSHIP is a technique that uses the expertise of people who
can provide the best answers to customers’ most challenging questions
about the product or service.
THE COMMON GOALS OF MARKETING
Marketing activities have five common goals: building brand
awareness, generating high sales lead volume, establishing thought
leadership, boosting sales, and increasing brand engagement.
BUILDING BRAND AWARENESS
 Marketers primarily influences what the product or service is trying to
project in the minds of the consumers and how they can relate to the
brand.
 it increases the retention of the brand and the product, resulting in
brand awareness.
 marketers use a variety of ways to establish brand awareness.
 the most popular strategy is to put together a catchy logo, color
combination, and slogan to create a brand that can potentially be a
household name.
 many famous brands have significantly benefitted from this strategy.
SUPPORTING HIGH SALES LEAD VOLUME
 Marketing activities support high sales lead volume.
 many of the activities, like extensive promotion, prompt
customers to eventually buy the product or avail of the service.
 the sales force can lead customers to purchase using persuasive
selling
ESTABLISHING THOUGHT LEADERSHIP
 the term thought leader was first coined by Joel Kutzman in
Strategy + Business Magazine in 1994.
 he defined it as a person who has “new important ideas that are
worth sharing and that have real applications.”
 these fresh ideas can be in the form of a new product or a new
method of teaching.
 thought leadership is used in marketing to tap the expertise of
people who can provide the best answers to customers most
challenging questions about the product or service using formats
that the latter would like to see and use.
BOOSTING SALES
 marketing greatly helps in boosting sales.
 in short, production and marketing efforts go hand in hand in
increasing sales.
INCREASING BRAND ENGAGEMENT
 the ultimate goal of marketing is to build and maintain lasting
relationships with customers.
 in doing so, the company is able to generate profits, develop a
loyal customer base, and further strengthen the brand.
 when customers identify the brand, they form an emotional
attachment to it.
 when their expectations from the brand are met, this may
translate to sales and profitability.
 effective brand management is evident when customers feel
guilty when they switch to another brand.
SUMMARY
 The common goals of marketing include building brand
awareness, generating high sales lead volume, establishing
thought leadership, boosting sales, and increasing brand
engagement.
 Marketing primarily influences what the product or service is
trying to project in the minds of the consumers and how they
can relate to the brand.
 The ultimate goal of marketing is to build and maintain lasting
relationships with customers.
MARKETING EXPERIENCE
Research on two brands that no longer exist and create separate
reports that answer the following:

What caused the brand to fail? What unfulfilled marketing goals

contributed to this?
SELF-REFLECTION
Remember that working in the marketing field requires being goal-
oriented. Read the text below and set your SMART goals in
pursuing your dream marketing job.

The acronym SMART stands for characteristics of a good objective:

specific, measurable, attainable, relevant, and time-bound. This
can be your guide in making both personal and work goals. Below
are the ways on how you can set your goals towards making a mark
in the marketing world.
SPECIFIC
Assuming a high post in the marketing department of a firm is not
a specific goal. Specify the position and the company you are
aiming for. Also, plan the steps on how you can get your dream
job in your dream company.
MEASURABLE
You can also set quantifiable goals, such as your target salary and
awards. Again, it is essential that you plan how to achieve said
goals.
ATTAINABLE
Make sure that your goals are achievable and you are equipped to
pursue them. There are specific requirements or qualifications
for certain jobs, so it will be helpful to assess yourself and
determine the skills and training you should acquire. For
example, if you aspire to be the head of a marketing research
firm, you should have a solid background in research. You should
also continue to hone your skills through further studies,
workshops and the like.
RELEVANT
Your goals should be relevant to what you want to pursue. This
means that the job experience you like to gain, the companies
you wish to work for, the projects you aim to lead, and the
recognition you dream to receive should all be aligned with
marketing and related fields and lead to the realization of your
ultimate goal.
TIME-BOUND
Set a time for your goals. Example, aim to be a marketing
director in five years or commit to attending seminars for
professional development every year.
MARKETER IN ACTION
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.

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 customers keep coming back and that more will follow.
DISCUSSION 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?
CONTEMPORARY MARKETING
At the end of this lesson, the students will be able to:
1. Identify and explain contemporary marketing approaches and
2. discuss how companies implement these marketing approaches
 GOOGLE
Two graduate students of Stanford University changed the way we
search for information on the Internet. Larry Page and Sergey Brin
embarked on a research project which developed Google Search
(formerly named BackRub). It is a search engine that is considered
better than the others because it features the availability of page
rankings, which is better than just indexing of content because it
gives more relevant search results.

The domain name google.com was registered in 1997 and Google

Corporation was formed in 1998. Google’s growth has been
unprecedented ever since. It currently has more than 70 offices in
50 countries and continues to keep up with the times and offer
innovative and useful products and services to its clientele.
 PRODUCTS AND SERVICES
Google ensures quality service through its sophisticated information
technology resources which are more distinct in functionality and
form than those of its competitors. Its search engine provides
quick access to information and delivers them in an orderly format
that reduces search time. It has thousands of computer servers in
its fifteen data centers located in the Americas, Europe, and Asia.
These servers allow Google to handle the large volume of data
utilized in implementing numerous online searches.

Google’s success opened more opportunities to develop other

products and services specific to target audiences.
ADWORDS.

It is the venue for companies who want to promote

their products and services through text-based
search ads, graphic display ads, YouTube video ads,
or in-app mobile ads.
GMAIL

 Itis a web-based email service launched in 2004

and has outperformed the same services offered
by Yahoo and Microsoft
GOOGLE MAPS

 Launched in 2005, this app helps users search for

directions anywhere in the world.
YOUTUBE

 in 2006, You Tube became a popular search

engine and platform for videos.
From 2005 to 2007, Google also launched Google
Talk, Google Analytics, Google Docs, and the street
view feature of Google Maps, Google+, a social
network introduced in 2011, links Gmail, YouTube,
and Google search
ANDROID AND CHROME

The T-Mobile G1 is the first phone that used Android

in September 2008. Android has become the most
popular mobile operating system while Google
Chrome soon followed as the most popular web
browser.
SEARCH ENGINE MARKETING
Marketing now has more innovative ways of increasing sales and
brand awareness. One of them is search engine marketing (SEM).
SEM is a marketing tool that promotes websites by making them more
visible in the search engine result page. It can be executed through
search engine optimization (SEO) and paid search (Through Adwords).

SEO includes strategies that will make sure a website is seen on the
first page of Google’s organic search listing for relevant search key
words. It adjusts the content of websites to achieve a higher level of
visibility in the SERP (search engine results page) to improve pay-per
click listings.
When it comes to paid search, it normally involves getting the
AdWords advertisement seen easily by the target customers on
mobile phones and computers. In addition, Google incorporates
Quality Score in paid search, which provides a general sense of the
ad’s quality. Expected clickthrough rate, ad relevance, and
landing experience determine an ad’s Quality Score.
DISCUSSION QUESTIONS
1. What makes Google a highly successful company?
2. What possible products or services can you see
Google offering in the next five years?
3. How is search engine marketing beneficial to
companies and individual entrepreneurs?
LET’S LEARN
Through the years, marketing has broadened its functions beyond
the traditional approaches. There are contemporary or non-
traditional approaches that focus on specific target customers.
Traditional approaches gave way to more modern ones to address
customer needs and wants and ultimately deliver total customer
satisfaction.
MARKETING CONCEPT
This concept challenges the traditional approaches of marketing
(production, product, and sales concepts) which set aside
customer preferences. Products or services are created first, then
marketers promote and sell them. In the marketing concept,
marketers take the responsibility of knowing the clientele and
eventually developing goods or services based on what the latter
needs or wants, which leads to long-term profitability.
The marketing concept emerged when a shift from a seller’s market to a
buyer’s market took place. The seller’s market, as the name implies, is
an economic situation wherein there are many buyers for a limited
number of goods and services available in the market. Therefore, the
number of products or services to be offered is the seller’s call. On the
other hand, a buyer’s market means that there are more products and
services than consumers who are willing to buy them, resulting in low
prices.

Also, the concept promotes an organizational orientation with the

objective of achieving customer satisfaction and eventually,
organizational success.
SOCIETAL MARKETING CONCEPT

This concept is defined as a marketing philosophy that merges

profitability and corporate social responsibility: in producing
goods and services, a company must consider consumer needs and
wants, its stakeholders (employees, suppliers, and owners) and
more importantly, the long-term interests of society.
RELATIONSHIP MARKETING CONCEPT

This concept focuses on establishing lasting relationships with

customers and suppliers. This relationship further creates
customer and supplier loyalty which also results in successful
organizational performance in the long run. It is used to
consistently attract repeat business; this means that every new
customer must be a returning customer. The goal of the marketer
is not just a one-shot deal or a one-time sale but rather a
continuing sale of superior products and services.
Relationship marketing also teaches that while customers should be
satisfied with the product or service, improvements in customer service
must also be implemented because it can influence the buying decision
process or customer perception

Technology also comes into play as it enables a company to keep track of

pertinent information about its clientele. With the power of the internet,
it is now very easy to transact and communicate with customers. Orders
can be made online and reviews and complaints on products or services can
be easily sent through customer feedback forms and blogs. On the other
hand, customers are able to monitor new releases, promos, discounts, and
events in company websites or social media accounts.
SOCIAL MARKETING
This concept aims to sell ideas and behaviors or transform
negative habits or attitudes to positive ones for the benefit of
individuals or society as a whole. It is mostly used by non-profit
organizations to endorse their advocacies, raise awareness on
critical issues, and ask for financial support for their projects.
The primary focus of social marketing is for people to learn
specific values and think and act for the greater good, rather than
enticing them to purchase something. It should be noted that in
terms of objectives, social marketing is different from societal
marketing, which aims to offer quality products and services and
at the same time, consider the interests of society.
MARKETING EXPERIENCE
Give a real-life example for each contemporary
marketing approach and explain the examples to
the class
 SELF-REFLECTION
Think of yourself as a loyal customer of a pizza parlor. Considering the
contemporary marketing approaches, what additional features or services do
you expect to be offered along with your order and/or patronage of the
establishment?
 BUILDING CUSTOMER LOYALTY THROUGH CUSTOMER
SERVICE
At the end of this lesson, the students will be able to:
1. Define relationship marketing,
2. Enumerate the levels of relationship marketing,
3. explain the role of customers,
4. describe the tiers of customers value
5. discuss the different types of customers,
6. identify and describe relationship development strategies, and
7. illustrate the successful customer service strategy in the Philippine business enterprise
NIKE + AND THE ACTIVE LIFESTYLE
In 2010, the global sports brand Nike developed technologies that allow users
to live an active lifestyle and keep track of their performance in their
respective sports. Nike organized a Digital Sport Division which created
applications that help its customers maintain an active life.

Nike also launched on online platform, Nike+, where users can sign up to
access various applications. Two of the popular applications in the Nike+
platform are Nike+ Training club and Nike+ Run Club.
The Nike+ Training Club serves as an online personal trainer. It features more
than 100 workout videos of Nike trainers and athletes. The application can also
create a personalized training plan adapted to the user’s lifestyle.

The Nike+ Run Club helps users engaged in the running lifestyle prepare for races
and track their progress. The application provides accurate details about pace,
distance, routes, and personal records. Users also get personalized coaching and
are able to share their training journeys with fellow runners.
 DISCUSSION QUESTIONS
1. How do Nike+ applications help customers maintain an active lifestyle?
2. In what way will the fitness applications help Nike’s sales performance?
3. What values are being upheld by the company through these applications?
4. Do you see these applications reinforcing the relationship between Nike and
its customers? Explain
RELATIONSHIP MARKETING
 Is the process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction, thus
ensuring brand loyalty.
 when customers are satisfied, it is more likely that they will become
loyal customers because they will keep on patronizing the brand.
 a key factor in relationship marketing is customer loyalty ( also known as
brand loyalty). This arises when a customer has had several positive
experiences with a company’s products and services and thus, it is
motivated to continue to support the company and patronize its products
and services
 customer loyalty tends to persist despite the actions of the company or
changes in the business environment
 LEVELS OF RELATIONSHIP MARKETING
Customer loyalty is founded on excellent customer services. The five levels of
relationship marketing define the levels of interaction between the customer and
the company. It is also a guide in improving customer satisfaction.
1. BASIC MARKETING. This is also called “direct sales” and is the most basic level
of interaction between the company and the customer. In basic marketing, a
salesperson takes charge of selling the products or services to consumers.
2. REACTIVE MARKETING. The transaction moves to a higher level because the
sales person tells the customer that he or she can be contacted to answer any
inquiry about the product or service.
3. ACCOUNTABLE MARKETING. In this level, the salesperson voluntarily contacts
the customer to ensure that the product is in perfect condition and asks if it
met the latter’s expectations. Also, the salesperson encourages the customer
to provide suggestions on how to improve the product or service.
4. PROACTIVE MARKETING. The company works closely with a group of regular
customers who provide constructive feedback for the improvement of the
product or service. This group also helps in the development of new products
or services.
5. PARTNERSHIP MARKETING. In the final level, the company has already built a
loyal group of customers who can help in improving its performance and
offerings.
 BUILDING CUSTOMER VALUE
 CUSTOMER VALUE is defined as the satisfaction derived from what a customer
may experience or expect to experience by choosing a particular action
relative to the cost of that action
 the action can be a purchase, a visit, an order, or a sign up.
 the cost refers to anything that can be given up to receive the desired
product or service, which can be in the form of money, time, knowledge,
data, or others.
 the creation of customer value does not rely on marketing alone
 it encompasses other functions such as sourcing, operations, processing,
communication, human resource services, administration, finance, and
accounting.
 these functions directly or indirectly affect customer value because a product
or service will not reach the end users without any of them.
 LEVELS OF CUSTOMER VALUE
The levels of customer value indicate what the consumers expect and do not
expect from their purchase decisions.

BASIC AND EXPECTED LEVELS. These levels include the basic requirements of
conducting a business.
DESIRED CUSTOMER VALUE. This involves what the customers want from the
purchase or service experience. This is the first opportunity for a business to get
ahead of the competition.
UNANTICIPATED CUSTOMER VALUE. It pertains to an unexpected purchase or
service experience that may go beyond what the customers desire.
 TYPES OF CUSTOMERS
 STRANGERS are customers whose needs do not fit the company’s offerings.
The company does not need to invest and exert effort to win them.
 BUTTERFLIES as the name implies, are not loyal to a specific brand because
they keep on looking for the best deals which may lead to patronizing other
brands. The company can enjoy profits from these customers only for a short
period.
 TRUE FRIENDS have needs that match the company’s offerings. They make
repeat purchases and patronize the brand so long as it satisfies their needs.
The company must invest in these customers and strengthen in relationship
with them.
 FREELOADERS are loyal but not profitable because of the limited fit between
their needs and the company’s offerings.
RELATIONSHIP DEVELOPMENT STRATEGIES

 COMMUNICATE WITH CUSTOMERS FREQUENTLY AND EFFECTIVELY. It is

important to always get in touch with customers through e-mail and social
networking sites to sustain brand recall. Also, they should be provided with
various means to give immediate feedback so companies can promptly
respond to them.
 OFFER CUSTOMER REWARDS. Customer loyalty programs, which include
special discounts, perks, and freebies, may work well for various types of
products and services. These encourage consumers to remain loyal to the
brand because they are rewarded for their patronage.
 CONDUCT SPECIAL EVENTS AND PROVIDE SPONSORSHIPS. Companies can hold
or sponsor parties, concerts, contests, and the like to boost interaction among
loyal customers and company representatives.
 ENHANCE CUSTOMER SERVICE. Some companies outsource their customer
services to third party organizations to cater to complaints and inquiries,
promote their latest offerings, and provide technical support.
 UTILIZE LANGUAGES TO REACH A WIDER CUSTOMER BASE. Marketers can
create promotional materials in different languages to cater to specific
regions. Consumers can also now choose the language they would like to use
to communicate with customer service representatives.
CUSTOMER SERVICE IN THE PHILIPPINE BUSINESS ENTERPRISES
The success of our homegrown companies lies not just on their offerings but
also on their customer service. Local businesses now utilize customer service
tools that fit our customer-oriented culture and extensive technology usage.

Most companies provide a customer hotline that customers can call for
inquiries, concerns, and technical support.
EMAIL AND SMS
 Also help businesses communicate with their clientele more easily as most
consumers regularly check their inboxes. Online store sends texts and
emails from the moment an order is placed until it is on its way to the
customer. This way, the shopper can keep track of his/her purchase and
contact the company immediately if it does not arrive on time.
SOCIAL NETWORKING SITES

 Aside from their primary function of connecting people,

have became a channel for netizens to ask for customer
support to promptly responds to inquiries and complaints
and redirects customer to the site’s private messaging
system for further assistance.
LIVE CHAT SUPPORT

facilitates real-time correspondence between the customer

and the company representative.
 PERFORMANCE TASK:
THE LIVE IN LEVI’S PROJECT
In 2014, American denim brand Levi Strauss & Co. launched the “Live in Levi’s
Project. The campaign included print, TV, and online ads featuring young
adults having fun while wearing the company’s products. The taglines “For
everybody who’s not just anybody” and “Look good on your way to what’s
next” were highlighted in the promotion. Levi’s also released a documentary-
style film series showing different people living, working, and playing in their
Levi’s apparel.
Jennifer Sey, Levi’s Global Chief Marketing Officer, said she and her team
wanted to capture the warm and optimistic feeling that comes with recalling
stories. Sey also emphasized that “the people who wear Levi’s have always
been the inspiration for our brand.” For the campaign, the company created
a digital platform which enables customers to share their personal Levi’s
experiences using the hashtag #LiveOnLevis, be inspired by stories of fellow
customers, and shop for featured products in the interactive ads. In their
physical stores, Levi’s jeans were displayed alongside stories written by their
owners which explain the markings on them- providing an account of the life
of people who wore those jeans.
“Live in Levi’s” aimed to reinvigorate the brand’s soul through storytelling
and social media, celebrate authentic self-expression, and engage customers
in both real life and virtual experiences that will strengthen their personal
connection to the brand. It positioned Levi’s not just as a leading denim
brand, but also as the consumers’ “ultimate life companion.
DISCUSSION QUESTIONS
1. How can you relate the Live in Levi’s Project to relationship marketing?
What level of relationship marketing was achieved with the campaign?
2. What other marketing strategies can be employed to improve the
campaign?
SELF REFLECTION

What is customer value to you? Narrate a personal

experience using the level of customer value.
SERVICE MARKETING
At the end of this lesson, the students will be able to:
1. Define the meaning of service,
2. identify the characteristics of service, and
3. discuss the components of service marketing
TECHNICAL TERMS
HOSPITALITY INDUSTRY consists of several service industries which include food and
beverage service, tourism, and hotels.
ACCOMODATION includes public houses, resorts, inns, campgrounds, hotels, hostels,
serviced apartments, and similar establishments.
HOTEL is an establishment that renders lodging in exchange for payment.
CONCIERGE is a hotel employee who assists guests in making reservations for
restaurants, arranging tours, and booking transportation
ITINERARY is a planned route and schedule of activities
QUICK RESPONSE (QR) CODE is a machine-generated code which provides
information when scanned by the camera of a smartphone
APP OR MOBILE APPLICATION is a program which can be downloaded to a mobile
device
 MOBILE TECHNOLOGY
Mobile technology, particularly mobile applications, has redefined the meaning
of customer service in many industries. It has improved how we avail of
transportation services through apps like Uber and Grab. It has also enabled
customers to explore dining options through Zomato and Yelp, as well as
organize their travels through Airbnb and TripAdvisor.

One industry that can benefit greatly from the use of mobile technology is the
hotel and hospitality industry. Technology can complement and improve the
ability of hotel staff to serve guests, and provide customers convenient and
efficient service.
The following are the potential uses of mobile technology in hotels and other
providers of accommodation.

CURRENCY. Banks can provide mobile wallets which can allow guests to
securely pay for their accommodation using their bank account or credit
card.
HOTEL ROOM ACCESS. The guest’s mobile device can be used as a room key
by assigning it a unique encrypted signal.
IN-ROOM PHONE. The guest’s cellular phone can be used to request for
various hotel services. In this case, there is no need to install and maintain
telephones in hotel rooms.
CONCIERGE DESKS. The device can act as a concierge for the guest by assisting
in booking tickets for concerts and tours and making dinner reservations. This
eliminates the hassle of going to the reception to arrange one’s itinerary.
FRONT DESK. The guest can use his or her mobile device to facilitate the
release of room keys as well as the billing for the room and other services.
PROMOTION. Hotels will not need to put up printed ads of their promos and
services in the establishment, as guests can just use a quick response (QR) code
to browse updates and news about the hotel using their smartphones.
LIGHTS AND AIRCONDITIONER. An app can be installed in the guest’s device
which can be used to switch on the room lights and adjust the temperature.
DISCUSSION QUESTIONS.
1. What positive effects will result from these potential applications of mobile
technology in the hotel industry?
2. What challenges do you think will arise from the use of these applications?
3. What other possible uses of mobile technology in hotels can you think of?
Cite three examples.
SERVICE
Is an act that is provided by a party that creates value and provides benefits
to the other party.

Organizations that offer service include restaurants, hotels, airlines, banks,

schools, hospitals, telecom companies, among others.
CHARACTERISTICS OF SERVICE
1. INTANGIBLE. A service does not have a physical manifestation that can be
seen, touched and described quantitatively.
2. INSEPARABLE. A service involves simultaneous production and
consumption, so there is outright feedback.
3. PERISHABLE. Because they are intangible, rendered services cannot be
stored or returned.
4. HOMOGENEOUS. The service in itself is the same but the way it is
provided may differ from time to time.
 COMPONENTS OF SERVICE MARKETING
1. PRODUCT AND ITS ELEMENTS. There are services that only supplement the main
product. The goal of the marketer is to create a bundle of supplementary
services that increases the value of the main product.
2. TIME AND PLACE. The channel of distribution is crucial in service delivery. The
service should be rendered on time and in appropriate venue or location.
3. PROCESS. This is the method of service delivery. Marketers should be able to
make the process of availing and receiving the service convenient for the
customers.
4. QUALITY SERVICE OR PRODUCTIVITY. The kind and quality of service provided to
a customer cannot be separated from how the service is rendered. The quality of
service is seen in how a service satisfies and meets the needs, wants, and
expectations of the customer
5. PEOPLE OR SERVICE PROVIDERS. The ultimate proof of service quality
manifests in the people who provide the services to the customers. They
must be skilled, knowledgeable, friendly, accommodating, and customer-
oriented.
6. PROMOTION. Companies must use various means to inform the public about
the service and reach a wider customer base. This may be through word-of-
mouth and advertisements.
7. PHYSICAL EVIDENCE. While a service is inherently tangible, there should
still be visible cues that will indicated its quality.
8. PRICE. The price of the service depends on its perceived quality.
SELF REFLECTION
In availing of a particular service, when do you say that you got your money’s
worth or that it is sulit? Reflect on the time when you availed of a service and
felt that you did not get your money’s worth.
 MARKET OPPORTUNITY ANALYSIS AND CONSUMER ANALYSIS

At the end of the lesson, the students will be able to:

1. Differentiate between strategic marketing and tactical marketing and
2. discuss how strategic marketing and tactical marketing are implemented
THE ART OF WAR
Many of the strategies described in The Art of War involving outsmarting
one’s opponent to avoid physical battle, and so many of the lessons found in
the book can be applied not only in the military but also in law, government,
and business. It can also provide valuable lessons marketing. It stresses the
importance of understanding and adapting to the environment where one
operates, and asserts that the key to implementing strategies is through
understanding the relationship between oneself and one’s enemy”, or in the
case of marketing, between the company and the customers, and its
competitors
LESSON 1: “The supreme art of war is
to subdue the enemy without fighting”
When a company is prepared and well-planned it does not
have to fight or compete, or even if it does, it is as if the
company is not competing because it is prepared for a
variety of situations or scenarios. Therefore, the company
can operate confidently with ease and without pressure.
LESSON 2. “In the midst of chaos, there
is also opportunity.”
Today, the wide array of selections available in the market
may give customers option paralysis. It may be best to have
differentiated products through unique features which may
open up new opportunities for the product to be better
known and become more attractive to customers.
LESSON 3. “Pretend inferiority and
encourage his arrogance.”
Flaunting one’s strengths is not always a good strategy. A
company should not show off all its capabilities, lest
competitors learn from or even copy those capabilities. The
company should work closely with customers and win their
loyalty instead.
LESSON 4. “Victorious warriors win first
and then go to war, while defeated warriors
go to war first and then seek to win.
As Stephen Covey said, “Begin with the end in mind.” the
company should work backwards by visualizing its goal or
target. Then, it can plan out what to do with a clear
roadmap to where it wants to go.
LESSON 5. “Supreme excellence
consists in breaking the enemy’s
resistance without fighting”
Word-of-mouth selling is far less expensive than promoting a
product through advertising and other forms of promotion.
When customers are satisfied with a product, their positive
feedback and recommendation of that product act as a form
of free promotion.
LESSON 6. “Opportunities multiply as
they are seized.”
As technology continues to evolve, so does consumer
behavior. When technology and consumer behavior combine,
a company can find many opportunities to target new
markets and generate ideas for innovation.
LESSON 7. “Earth gives birth to length. Length gives birth
to volume. Volume gives birth to counting. Counting gives
birth to weighing. Weighing gives birth to victory.”

All the strategies and tactics should result in only one thing:
profits. Therefore, marketers should keep track of every
activity and measure how each leads to success.
LESSON 8. “If ignorant both of your enemy
and yourself, you are certain to be in peril.”

Marketers should always be updated on customer needs and

wants. They should also continuously upgrade and innovate
to keep customers satisfied and loyal to the company.
LESSON 9: “Put them in a spot where they have no
place to go, and they will die before fleeing.”

A company should not only win customers today, but win

them for life. Marketers should find ways to retain
customers by always keeping them satisfied and happy with
the company’s products and services.
LESSON 10: “The general who advances without coveting fame
and retreats without fearing disgrace whose only thoughts is to
protect his country and do good service for his sovereign, is
the jewel of the kingdom.”
Marketing has its own challenges. Marketers should not be
afraid to fail, but be brave enough to stand up and take the
challenge of leading the company to success. They should
also not be afraid to point out a failing campaign when they
see it. It is ultimately better for a company to pull out a
bad campaign, rather than further incur financial losses, or
even damage to its reputation.
 DISCUSSION QUESTIONS

1. What significant lessons in marketing does the Art of War provide?

2. Which among the principles presented is most applicable to marketing?
Explain.
STRATEGIC MARKETING
 is defined as the general plan of action aligned with the company’s vision
and goals.
 this is a carefully thought-out course of action developed for the purpose
of achieving a desired result such as profitability and high productivity.
 it puts heavier emphasis on external environmental scanning to develop
strategies to respond to the environmental forces that confront the
company.
 it is the thinking process that outlines the course of action towards the
achievement of a goal.
 strategic marketing has a longer time frame, usually three to five years.
 one type of marketing strategy is to offer more expensive and branded
products to a small number of loyal customers.
 another is to offer different products, from cheap to more expensive
ones, catering to different types of customers,
 for strategic marketing to work, marketers should determine the
objectives the company wants to achieve and how the outcomes will be
measured.
 there must be a starting point to determine where the company is right
now and where it wants to go.
The role of strategic marketing is “to lead the firm towards attractive economic
opportunities, that is, opportunities that are adapted to its resources and know-
how and offer a potential for growth and profitability.”
 TACTICAL MARKETING
 refers to the actions a company undertakes in order to execute an
organization’s strategy
 it also refers to a detailed action program covering a shorter period.
STEPS IN DESCRIBING MARKETING TACTICS IN THE MARKETING
PLAN
1. PREPARE AN ACTION PLAN
 list down the steps in delivering each tactic and note important details
such as time frame, suppliers, requirements, issues, and persons in charge.
2. NAME THE NECESSARY RESOURCES AND MONITOR THE ALLOCATED BUDGET
 get quotations for all elements of the proposed tactics and make a
detailed budget plan
 make sure that the budget can support the tactics because marketing
costs can increase quickly
 assign a person to monitor the budget throughout the marketing campaign
3. IDENTIFY HOW THE SUCCESS OF THE TACTICS WILL BE MEASURED.
 outline how to evaluate the effectiveness of the tactics by setting goals and
benchmarks
 this will help in implementing changes or improvements on the tactics
 the measure of the tactic’s success may be a specific number of customers
 APPLYING STRATEGIC MARKETING AND TACTICAL MARKETING

DOMINO’S PIZZA. Tom Monaghan founded Domino’s Pizza sometime in the 1960s.
It is the second largest pizza chain in the USA

STRATEGIC MARKETING: To achieve global presence, Domino’s innovated its menu.

TACTICAL MARKETING: To implement this marketing strategy, Domino’s employs
the following tactics:
a. The pizza has bread, sauce, and cheese in all countries except China.
b. Half of the toppings are standard all over the world, while the other half is
customized depending on the country in question. In Asia, the toppings are
usually seafood and fish. In India, it is curry.
NIKE. Initially operating as a distributor for the Japanese
shoemaker Onitsuka Tiger, Nike was founded in 1964 as Blue Ribbon
Sports. It later on became Nike, Inc. in 1971
STRATEGIC MARKETING: To increase global presence, Nike formed long-term
partnerships with international companies for sponsorships.
TACTICAL MARKETING: Nike participated in championships and tournaments
with partners where Nike was exposed to a global audience.

STRATEGIC MARKETING: Another marketing strategy is the creation of the

NikeID platform which caters to international markets.
TACTICAL MARKETING: Creation and delivery of customized products
depending on the preferences of the customers.
McDonald’s. Dubbed the world’s largest chain of hamburger fast food
restaurants, brothers Maurice and Richard McDonald started the business in 1940.
In 1954, businessman Ray Kroc offered to franchise the McDonald brothers’
restaurant throughout the America, but they were initially resistant to the idea.
On April 15, 1955, Kroc opened his first McDonald’s in Des Plaines, Illinois,
creating the McDonald’s Corporation as we know it today. In 1961, Kroc bought
all rights to the company from the McDonald brothers, which later led to its
expansion worldwide
STRATEGIC MARKETING: To reach its goal of increased global presence,
McDonald’s marketing strategy is to adapt its menu by including a local flavor
specific to each country where McDonald’s is located.

TACTICAL MARKETING: Introduction of menu items exclusive to certain

countries, such as Teriyaki mac Burger in Japan; Pineapple Pie in Thailand;
Traditional Brazilian cheese bread in Brazil; McToast in Croatia; and Crispy
Veggie Burger in Finland.
COCA COLA. In 1886, a pharmacist by the name of John S. Pemberton created a
flavored syrup and mixed it with carbonated water. Those who first tasted it
had a positive reaction to the distinct-tasting softdrink which was later on sold
at soda fountains. Pemberton and his bookkeeper Frank Robinson, coined the
name Coca cola.

STRATEGIC MARKETING: Coca Cola’s marketing strategy is to focus on charitable

programs that impact small communities around the world.
TACTICAL MARKETING: The following are the marketing tactics used:
a. Coca Cola put up The Coca Cola Foundation which currently benefits around
300 organizations in more than 70 countries worldwide.
b. Another tactic is to prioritize three areas which have impacted millions of
lives.
 Women: economic empowerment and entrepreneurship
 Water: access to clean water, water conservation, and recycling
 Well-being: education, youth development, and other community
projects.

c. Coca-cola supports worthwhile projects such as strengthening arts and cu

lture in the US, as well as HIV/AIDS awareness and prevention programs in
Latin America and Africa.