2_Q1-Marketing.pptx PRINCIPLE OF MARKETING

PRINCIPLE OF MARKETING

1. PRINCIPLES OF MAR KETING Quarter 1 - Module 2: Traditional and Contemporary Ma rketing Concepts, Approaches and Advertising Channe ls

2. Which of the marketing concepts relies on the strength of the company’s sales force in convincing the customers to buy the product even if they do not need it? Product concept C. Production concept B. Marketing concept D. Selling concept 2. Which customers tend to be loyal to traditional products in which it would take time for them to adopt new products associated with technology? New-generation customers C. Old-generation customers Household customers D. Repeat customers 3. Which of these contemporary marketing concepts is concerned for the society’s well-being and the environment’s sustainability is prioritized as much as customer’s preferences? Relationship marketing concept C. Societal marketing concept B. Selling concept D. Product concept

3. 4. Which contemporary marketing approach involves the hosting of a themed event that is especially tailored for the product to build brand awareness? Events marketing C. Telemarketing Outdoor promotion D. Sachet marketing 5. Which contemporary marketing used by marketers to advertise to passengers who have very little time to see advertisements in other forms of media? Mobile promotion C. Telemarketing Outdoor promotion D. Online marketing 6. Which of the following products are encouraged and often supported by caused oriented groups as its development contribute to the quality of life and preservation of the environment? Convenience product C. Modified product Green product D. Specialty product

4. 7. Which marketing concept requires a company to embark on mass production and distribution? Product concept C. Selling concept Production concept D. Marketing concept 8. Which of the following is NOT part of the contemporary marketing approaches? Telemarketing C. Outdoor promotion Sachet marketing D. Product concept 9. Which contemporary marketing approach uses Instagram, Twitter, YouTube, and Facebook among others in promoting a company’s products and services? Online marketing C. Social media marketing Digital marketing D. Telesales

5. 10. Which marketing approach utilizes the internet to boost promotional and marketing efforts. This uses websites and involves automated emailing of product information to customers? Online or E-marketing C. Social media marketing Digital marketing D. Mobile promotion 11. Which of the following is the tendency of firms to focus on ensuring its success in the market, instead of focusing on customer needs? Marketing network C. Marketing cost analysis Marketing mix adjustment D. Marketing myopia 12. Which of the following is the customer’s assessment of the benefits gained from a product compared to its cost and the competing offers in the market? Satisfaction C. Customer-perceived value Customer value proposition D. Unique selling proposition

6. 13. Which of the following is a promotional tool wherein a salesperson uses selling techniques to persuade a customer to purchase a good or avail of a service, and uses sales skills to build a personal relationship with a customer? Green Marketing C. Personal selling Outdoor Marketing D. Relationship marketing 14. Which of these marketing concepts focuses on the customers’ preferences – their wants, willingness to pay, the form and features they prefer? Marketing concept C. Societal Marketing Concept Relationship marketing concept D. Social Marketing

7. 15. Which of the following NOT an example of a green marketing campaign? Eco Hub, a start-up company based in Cebu City, has successfully launched its product, pencils that can grow back into plants and trees when planted. Banning all single-use plastics particularly in groceries and supermarkets. Outdoor promotion on a disposable cleaning cloth and single-use razors A company that uses plant-based ingredients to make its products and does not test its products on animals.

8. OBJECTIVE/S : • Compare traditional and contemporary marketing concepts • Compare old - generation customers from new - generation customers • Describe traditional approaches to marketing • Identify and explain the various contemporary marketing approaches • For mulate approaches best suited for their chosen product or service 4

9. ACTIVITY: FILL IN THE BLANKS. Instructions: Supply the important marketing concepts and terms. Write the words on a separate sheet of paper. Please do not forget to write the following in your answer she et: Name: ________________________ Year and Section: __________________ Subject: ___________________ Quarter No. _______ Module No. ___________ Name of the Activity What ’ s In Date: _________________ 1. __________________, Transactions, Relationships 2. Needs, _________________, Demands 3. Value, _______________, Quality 4. Marketer, Customer, _________________ 5. Customers, __________________, Company 6. Marketing, Goals, _________________ 7. Creating, Pricing, Distribut ing, ___________________ 8. ______________, Price, Place, Promotion 9. Instigator, Innovator, ____________, Implementer 10.Situation analysis, Marketing strategy formulation, ___________________, Implementation and Control

10. What’s New ACTIVITY: RESHUFFLE I T! Instructions: Reshuffle the words on the left to match the clues on the right. Write the correct words on a separate sheet of paper. 5 1. LAIDTOTRAIN TARMEKING PETCONCS focused on production methods, product quality, and effective selling method 2. COCPETSN general notion or idea 3. OPPARACHES to come or go near, in place or time 4. DUCTINOPOR COCPENTS widely available, affordable, inexpensive product 5. DOCTURP POCCENTS product improvements and innovations 6. LELSING OCPNETCS aggressi ve selling techniques and tactics 7. CONARTMEROPY TARMEKING CONSTEPC centered on the customer, relationships, and the well - being of society.

11. 5 8. TARMEKING POCCENTS customer’s preferences are prioritized 9. NOHIPSERTAIL TARMEKING PENTCOC maintain long - term relationships with c ustomers 10. CIESATOL TARMEKING TE PCONC society’s well - being and environment’s su stainability 11. TAILGID KIGNARMTE use of digital technologies for product offerings 12. LIONNE NARMETGIK M arketing that requires internet to perform 13. TRAINLAIDTO TARME KING covers wide array of advertising channels print media, billboard, radio, TV advertising, flyer, poster campaigns, etc. 14. CONARTMEROPY TARME KING primarily includes web - based approaches

12. TRADITIONAL VS CONTEMPORARY MARKETING CONCEPTS (Kotler & Armstrong, 2001) Figure 1

13. Traditional Marketing Concepts Marketing’s history has its humble beginnings of simply trying to sell goods and services. Activities and efforts to develop persuasive communications may have been as old as civilization itself but may have not been recognized as a marketing business at t hat time. Simple marketing activities in the modern era were first practiced during the Industrial Revolution. According to (So, Torres, & De Guzman, 2016) , evident up to the late 1960s, traditional marketing concepts are foc used on production methods, product quality, and effective selling methods as profit drivers in marketing. 1. The Production Concept According to So, Torres, & De Guzman, 2016, the production concept assumes that customers prefer products that are inexpensive,

14. affordable, and widely available, and that efforts are focused on expanding distribution, and improving production efficiency. T his approach according to (Te, Marte, & Abrina, 2018) requires a company to embark on mass production and distribution and was perfected by Ford Motor Company in the early 1950s. Ford, at that time marketed only one model desi gn and made the car affordable for most customers. He made initial success but not long after, the demand shifted for variety, thus the decline for Ford vehicles. Changes in customer’s preferences was one thing Ford failed to foresee. When a company manufa ctures only one product in large quantities and fails to identify the number of customers who are willing to buy them, the company ends up with surplus products. This can also happen when one believes that one’s own product is unique. The term “ Marketing m yopia” or marketing short sightedness, coined by Theodore Levitt 1960, refers to a near - sighted focus on selling products and services, rather than seeing the “big picture” of what

15. customers really want. Levitt encouraged executives to switch from producti on orientation to consumer orientation. 2. The Product Concept This concept focuses on the product and its improvements and innovations to attract customers. This concept assumes that customers will always prefer and patronize products of high qualify, thus, product attributes and features are continuously enhanced. This approach was considered a solution to the limitations of the production concept. (Example: Apple, initially releases its iPhone in 2007, and over the years continued to innovate with a dditional designs and features.

16. Limitation of Product Concept: 1. Customers may consider the new features unnecessary and would therefore not be convinced to buy the product. 2. Product is often improvised and manufactured without understanding the needs of the customers and their willingness to spend for it. 3. The Selling Concept This concept relies on the strength of the company’s sales force in convincing the customers to buy the product even if they do not need it. According to Theodore C. Levitt, “s elling concerns itself with the tricks and techniques of getting people to exchange their cash for a

17. product.” The mastery in selling techniques or the use of aggressive selling tactics and promotional efforts likely guarantees sales, although this is achi eved through hard selling. This is commonly known as personal selling – a promotional tool wherein a salesperson uses selling techniques to persuade a customer to purchase a good or avail of a service. It uses sales skills to build a personal relationship with a customer. However, since this orientation prioritizes sales, it pays little attention to the customers’ actual need for the product, which results in failure of the business. Thus, according to Theodore C. Levitt, selling is different from marketin g’s concern which is to develop a demand for a product and fulfilling the customer’s need.

18. Contemporary Marketing Concepts In contrast, contemporary marketing concepts are centered on the customer, relationships, and the well - being of society. 1. The Marketing Concept Also known as a customer -centric orientation, this focuses on the customers’ preferences – what they want, how much they are willing to pay, what form and feature they prefer, etc. – are prioritized. The company researches about the tar get customers (customers who would be served best by the company) and matches

19. the result of their research with the offering (product or service) of the company. Its drawback is in the implementation as follows: 1. If the customers’ needs and wants are s atisfied, what happens to the society and the environment affected by these marketing activities? 2. Would the product or service be still offered if it harms the environment? 3. Does the product or service contribute to the customer’s quality of life? 2. The Relationship Marketing Concept This concept believes that all marketing activities are for the purpose of establishing, maintaining, and strengthening meaningful long - term relationships with customers. Extensive customer databases are created, maintained, and updated. Customer profiles, purchase habits, and

20. preferences are tracked and monitored. This is to ensure that customers’ needs are fulfilled and the relationship with them is maintained. 3. The Societal Marketing Concepts This is l ike marketing orientation except that concern for the society’s well - being and the environment’s sustainability is prioritized as much as customer’s preferences. Thus, the development of products that contribute to the quality of life and the environment i s encouraged and often supported by caused -oriented groups. This marketing approach is also called green marketing and the product is called green product.

21. In today’s marketplace, communicating with customers is the single most important thi ng a business can do. Marketers must know their customers to be able to communicate the right message.

22. Customers can be classified as: 1. new - generation customers – are younger and more open to products and techno logies. 2. old - generation customers – tend to be loyal to traditional products and it would take time for them to adopt new products associated with technology. They are well entrenched in their comfort zones and remain reluctant to embrace new products and technologies. Marketers should be able to keep up with the demands of both types of customers. Today, marketing is an advance blend of strategy and technology and thus marketers need to seek which traditi onal marketing approaches and tools exist and which contemporary marketing approaches and tools should be considered in the future

23. TRADITIONAL VS CONTEMPORARY MARKETING APPROACHES / ADVERTISING CHANNELS While many companies still practice traditional ma rketing approaches and tools, more companies are shifting towards innovative and contemporary marketing techniques. The internet and the latest technological innovations have a more profound influence especially on the young consumers today.

24. Traditional marketing covers a wide array of marketing technique and advertising channels before the rise of technology that include primarily word - of - mouth marketing, the print media (flyers, brochures, newspaper articles, magazines, poster campaigns), out - of - home advertisements (billboards, and public transport), and broadcast advertising (radio and TV ads), and direct mail and telephone. These traditional marketing messages are not necessarily outdated , however, research has shown those companies that have abandoned using these channels, and adopted contemporary marketing channels have remained prosperous and in fact seen an increase in leads, a higher quality of leads, sales and traffic to web content (according the an article by Will Williamson, 2020 from JDR, a digital marketing company in U K).

25. Contemporary marketing primarily includes web - based approaches such as digital marketing, online marketing, email - marketing, and the like. Marketing with the contemporary methods will revolutionize the way y ou do business. The world is constantly changing. Technological advancements are taking place like electronic devices, telecommunication services and internet, and now social media; the global trends; and the customer preferences have created both business opportunities and threats for marketers and businesses.

26. The following are contemporary marketing approaches to address the needs of new - generation customers: ( Te, Marte, & Abrina, 2018 ) , Pat - Lin Communications, 2019 1. Digital Marketing – is an umbrella term that includes anything that requires the use of an electronic device or digital technologies, including online marketing, in presenting the product or service offerings of a company. Electronic devices include comput ers, mobile phones, TV, DVD and CD players, and digital cameras, game systems and MP3, MP4 players, among many others. Digital marketing examples include broadcasting, podcasts and e - books, digital out - of - home (OOH) advertisements (like the large screen mo nitors that display ads

27. which are placed in strategic places where there is heavy commuter traffic). Mobile marketing is any advertising activity in which technology can be used to create personalized promotion of goods or services to a user who is constan tly connected to a network via mobile devices such as tablets and smartphones. By making use of the mobile devices’ features such as location services, a marketer can tailor fit marketing campaigns based on an individual user's location via promotions sent thru SMS text messaging, MMS multi media messaging, thru apps using push notifications, thru in - app or in - game marketing, thru scanning QR codes, etc. Proximity systems and location - based services can alert users based on geographic location or proximity to a service provider. Web analytics is the measurement, collection,

28. analysis, and reporting of web data for purposes of understanding and optimizing web usage. Web analytics is not just a process for measuring web traffic but can be used as a tool for bus iness and market research, and to assess and improve the effectiveness of a website. Figure 4

29. 2. Online Marketing or E - Marketing – this is a subset of digital marketing and refers to content delivered via the internet to boost promotional and marketin g efforts. Any marketing that requires the internet to perform to attract customers and build an online presence is considered online marketing. Examples of methods used are websites, blogs, social media, e - zines, and emails (for automated emailing of pro duct information to customers). Today, especially this pandemic, online stores today like Lazada, Zalora, OLX, Ayosdito , and Pinoydvd have become alternatives to physical stores in terms of providing customers access to products and services. Online store s have utilized social media networks to bolster their advertising campaigns.

30. Search engine marketing (SEM) is the most prevalent method of building an online presence. SEM is online marketing that attempts to increase an organization’s visibility on search engines. There are two main methods in SEM: Search Engine Optimization (SEO ) - SEO is a long - term stra tegy that attempts to make content on web pages more accessible and discoverable through search engines. It optimizes websites for targeted keywords related to the organization, helping the website rank higher on search engines when the keywords are searched. 2. Pay - per - click (PPC) ads . PPC ads, such as Google AdWords, provide guaranteed visibility at a fee. While it can be

31. more expensive than SEO, you are only charged when a person clicks on the ad. PPC models allow organizations to manage their expectatio ns effectively. 3. Social Media Marketing makes specific use of social networking websites and relevant applications in promoting a company’s products and services . It involves creating and sharing content on social media networks in order to achieve your marketing and branding goals. Social media marketing includes activities like posting text and image updates, videos, and other content that drives audience engagement, as well as paid social media advertising . Social media marketing is a powerful way for businesses of all sizes to reach prospects and customers.

32. Facebook, as we all know, is the most popular form of social media site that marketers take advantage of among millions of users. Some create Facebook profile pages where they post links to their website and other promotional pages. Other social media platforms are Instagram, LinkedIn, Tw itter, YouTube, Pinterest, Snapchat, Tumblr, etc. Vlogs & blogging is also a major aspect of social media websites. Bloggers are now professionally hired by advertising companies to promote products – they write blog entries describing certain products or recounting the blogger’s experiences in using them. These credible bloggers have practically taken over company websites as the go - to - place to get information, as boggers are more fun, personalized, and objective in their information sharing.

33. Today there are countless digital apps that enable consumers to live a more convenient life, Lalamove, Maxim, Uber, Angkas for transportation, Airbnb for renting rooms, Waze for traffic and route advise, Spotify for music, Pinterest for sharing themes in digital bulletin board. Even emojis and hashtags are being used in communicating to customers in making sure their brand stays on top of the mind of its customers. Outdoor Promotion/ Marketing - refers to advertising campaigns that employ outdoor media such as billboards, transit vehicles and other types of outdoor signs, including the signs on the outside of businesses. Video walls and digital billboards are gradually replacing the traditional billboards to display promotional materials for products and services outdoors. The technology uses LED video screen that is big and bright

34. enough to be clearly seen by the public. It is normally placed in strategic locations where a lot of people can vie w it. 5. Mobile Promotion are mobile advertising tools used by marketers to advertise to passengers who have very little time to see advertisements in other forms of media. It uses LED video screens signs and ads mounted atop taxicabs, on the sides of v ans. Product logos are painted on the sides of buses or vans, or product stickers attached to vehicles. 6. Telemarketing or “ telesales ” – involves the promotion of products and services through unsolicited telephone calls to identify potential customers. Telemarketing is the direct marketing of goods or services to potential customers over the

35. telephone or the Internet. Four common kinds of telemarketing include outbound calls, inbound calls, lead generation, and sales calls. At present, marketers are outsourcing this task to call center agents who contact and inform customers of promotions for a new product or service on behalf of the company. This is do ne to increase the reach of the company in the market. Some BPO companies in Cebu are inbound and outbound telemarketers, if not into customer servi cing. 7. Events Marketing – a strategy marketers use to promote their brand, product, or service with an i n - person or real - time engagement. Event marketing involves the hosting of a themed event that is especially tailored for the product and is one of the best ways to build brand awareness. These events can be online

36. or offline, and companies can participate as hosts, participants, or sponsors. Marketers use live entertainment to induce customer traffic and showcase products or services when offline. For instance, car companies host car shows to introduce new car models, and clothing companies host fashion sho ws to showcase their new clothing line. 8. Sachet Marketing – is adopted to appeal to consumers who are cost - conscious and cannot afford to buy the products in large quantities. The products are repacked in smaller sizes and re - priced at more affordable v alues. This is usually done for products such as coffee, shampoo, toothpaste, and detergent. Sachet marketing is also done by selling the product at a reduced price for a certain period, such as cellphone load promos or hotel accommodation promos.

37. Instructions: Point out the similarities of marketing approaches and advertising tools. Write your answers on a separate sheet of paper in paragraph form . (Rubric: Content 20pts, Relevance 20 pts)

38. What I Have Learned ACTIVITY 1 : ESSAY Explain how old - generation customers differ to new - generation customers. Do they also have commonalities? Elaborate your answers on a separate sheet of paper. (Rubric: Content 20pts, Relevance 20 pts)

39. ACTIVITY 2: LET’S IDENTIFY Instruction: Identify the contemporary approaches as shown in the pictures below .

40. What I Can Do ACTIVITY: LET’S ADVERTISE! Instruction : For printed and digital modular, provide an example of real advertisements for each marketing approach. Write your script on a separate sheet of paper. For online students, make a video of your own advertisement with the help of your family members. Marketing approaches Sample adverti sement 1. Sachet marketing 2. Events marketing 3. Telemarketing 4. Mobile promotion 5. Outdoor promotion 6. Online marketing 7. Social media marketing 8. Digital marketing 9. Relationship marketing 10. Societal media marketing

41. Which of the traditional marketing concepts assumes that customers will always prefer and patronize products of high qualify, thus, product attributes and features are continuously enhanced? Production concept C. Marketing concept B. Product concept D. Selling concept 2. Which of these contemporary marketing concept believes that all marketing activities are for the purpose of establishing, maintaining, and strengthening meaningful long-term relationships with customers? Selling concept C. Product concept Relationship marketing concept D. Societal marketing concept 3. When products are repacked in smaller sizes and re-priced at more affordable values to appeal to consumers who are cost-conscious and cannot afford to buy the products in large quantities, it is called? Events marketing C. Telemarketing Outdoor promotion D. Sachet marketing

42. 4. Which contemporary marketing uses video walls and digital billboards that gradually replace the traditional billboards to display promotional materials for products and services outdoors? Mobile promotion C. Telemarketing Outdoor promotion D. Online marketing 5. Which customers are younger and more open to products and technologies? New-generation customers C. Old-generation customers Household customers D. Repeat customers 6. Which of the following is the most prevalent online marketing method of building an online presence that attempts to increase an organization’s visibility on search engines? E-marketing C. Social medial marketing Mobile marketing D. Search engine marketing

43. 7. Which of the following covers a wide array of marketing technique and advertising channels before the rise of technology? Societal marketing C. Relationship marketing Traditional marketing D. Telemarketing 8. Which of the following is NOT part of the traditional marketing concepts? Selling concept C. Production concept Product concept D. Marketing concept 9. Which contemporary marketing approach uses digital apps that enable consumers to live a more convenient life like Lalamove , Maxim, Uber, Angkas for transportation, Airbnb for renting rooms, Waze for traffic routes, etc.? Mobile promotion C. Social media marketing Outdoor promotion D. Telemarketing

44. 10. What is the marketing approach that requires the internet to perform to attract customers and build an online presence? Online marketing C. Events marketing Email marketing D. Mobile promotion 11. Which of the following is NOT part of the contemporary marketing concepts? A. Selling concept C. Societal marketing concept B. Marketing concept D. Relationship marketing concept 12. Which marketing approach primarily includes web-based approaches such as digital marketing, online marketing, email-marketing, and the like? Mobile promotion C. Contemporary marketing Outdoor promotion D. Traditional marketing

45. 13. Which of the following involves the promotion of products and services through unsolicited telephone calls to identify potential customers? Mobile promotion C. Digital marketing Mobile marketing D. Telemarketing 14. Which of the following is the process for measuring web traffic but can be used as a tool for business and market research, and to assess and improve the effectiveness of a website? World wide web C. Google analytics Web analytics D. Web hosting 15. Flyers, brochures, newspaper articles, magazines, poster campaigns, out- ofhome advertisements (billboards, and public transport), and broadcast advertising (radio and TV ads), and direct mail and telephone, are part of what kind of marketing? Digital marketing C. Contemporary marketing Online marketing D. Traditional marketing

46. Additional Activities Congratulations ABM Students! You are one step away to finishing module 2. Good job and keep learning! Identify the most common and popular item sold online. Then, come up with marketing and promotional strategies that can better introduce these products to consumers. Write your answers on a separate sheet of paper. Figure 8