AUGUST/SEPTEMBER

Marketing Principles and Strategies

Organizations earn revenues and generate profits by

offering products and services. These are offered to both
individual customers and business. These include
factory and office rentals, salaries of employees, and
utilities, among others. Profits are generated when
products offered by the organizations are purchased and
paid by the customer. Money is the typical mode of
payment.

Marketing Defined

Marketing is a form of communicating or promoting the

value of a product, service or brand to the customers. Goals of Marketing
The “by word of mouth marketing” may be the simplest, The goals of marketing can be summarized as follows:
oldest, and most natural way of marketing a service or a
product of profit and nonprofit purposes. Marketing of 1. Understand the market and its consumers, and
profit aims to increase sales of products or services while satisfy their changing needs and wants.
marketing for nonprofit purposes aims to communicate 2. Introduce and innovate products and services that
messages for social purposes, such as health and public improve human condition and the quality of life
safety information disseminated by the government. 3. Design and implement effective customer-driven
marketing strategies
Exercises: 4. Develop marketing programs that deliver superior
1. Explain in your own words why marketing is value to consumers
principally about communication. 5. Build and maintain mutually beneficial and
profitable customers relationships
6. Capture customer value to create profits

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7. Promote value transactions with full regard to Classification of Products/Goods
society’s well-being According to differentiation: Undifferentiated
and differentiated goods
The Marketing Process
Undifferentiated goods- are products whose
The marketing process can be illustrated in the
following diagram: physical characteristics are identical, that it would
be so difficult, it not possible to distinguish one
Marketing Strategy purchased from one vendor to another.
The Situation Analysis Formulation Differentiated goods – are varied in their
• Microenvironmental characteristics and features that they are readily
• Market
• Macroenvironment distinguishable from one another.
segmentation
• The Market
• Target market
• Customers selection According to Durability, Consumables, semi
• Competition • Value
durable and durable goods
• Strength, weaknesses, proposition
Opportunities and A consumable is a product whose benefit can
• Product
Threats. only be use by a consumer for only short period
positioning
of time, sometimes only a few minutes.
Semi durables provide benefits to the consumer
Implementation and
for a longer period of time, usually spanning
control
Market Mix Decision several times.
• Implementation Durables are products that are manufactured to
• Product
• Monitoring last a long time.
• Price
• Marketing Mix
• Place
Adjusments According to Type: Convenience, shopping,
• Promotion
specialty, and unsought goods.
Convenience goods are products that are
purchased frequently are usually inexpensive, and
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do not require much purchase effort and ACTIVITY:
evaluation. 1. Explain in your own words what a “need”
Shopping goods are purchased less frequently is. Explain this using your own experiences
than convenience, foods are relatively more
expensive and require of some amount of
information search and evaluation prior to
purchase.

Needs, Wants, Demands

Consumer needs are defined as physiological
necessities required for human survival.
Wants, are more psychological, indicating
preferences that can improve consumers life
condition.

Market and Market Demand 2. Give three examples of products that you want to
Market is defined as the group of individual or have and the reasons why you want to have them.
organizational customers who have both the Expound on your reasons
willingness and financial capability to purchase a a.
particular product or service.
Market Demand is the total demand of all
potential customers for a specific product / service b.
over a specific period in a specific market.

c.

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Contemporary Approaches to Marketing
Traditional Approaches to Marketing In contrast, contemporary marketing approaches
Evident up to late 1960s, traditional approaches in are centered on the customer relationships, and
marketing focused on production methods, well-being of the society.
product quality and effective selling method as 1. The Marketing Concept
profit drivers in marketing. The marketing concept consider the needs of both
1. The Production Concept – assumes that customer and the product offered. The objective
customers prefer products that are inexpensive, is to provide a solution to the customer’s actual or
affordable, and widely available. Efforts are perceived problem. The key is to be more
concentrated in expanding distribution, and effective in the creation, communication, and
improving production efficiency. The objective is delivery this value to customers.
to lower production costs resulting in lower 2. The Relationship Marketing Concept
prices. The relationship marketing concept believes that
2. The Product Concept – assumes that customers all marketing activities are for the purpose of
will always prefer and patronize products of high establishing, maintaining, ang strengthening
quality. Resources are focused on product meaningful long-term relationships with
improvement and innovation. Product attributes customers. Extensive customer databases are
and features are continuously enhanced. created, maintained, and updated.
3. The Selling Concept – emphasizes aggressive 3. The social Marketing Concept
selling and promotional efforts. It assumes that The concept is similar to the marketing concept.
customers are generally timid and must be However, beyond providing solutions to
persuaded into buying. The objective is to sell customers, the social marketing concept goes
what is manufactured rather than manufacture further to include considerations that protect the
what the market wants. customers’ well-being and interests, as well as the
interests of the environment and society.

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3. In your Barangay, is marketing existing? Explain
EXERCISE QUESTIONS your answer.
1. A company makes a pair of shoes (a semi-
__________________________________________
durable) that can last for more than 10 years. Is
__________________________________________
this an advantage or a disadvantage for its
__________________________________________
customers? What do you think?
__________________________________________
__________________________________________ __________________________________________
__________________________________________ __________________________________________
__________________________________________ __________________________________________
__________________________________________
ACTIVITY:
__________________________________________
__________________________________________
__________________________________________ Give two examples of products that you regularly see
__________________________________________ around you and describe how they marketed
a.________________________________________
2. People “need” to eat. Some “want” to eat a pizza
__________________________________________
or sandwich. It is possible for a “want” not to
__________________________________________
emanate from a “need”? Explain by relating your
__________________________________________
own
__________________________________________
experience.______________________________
_______________________________________
b.________________________________________
_______________________________________
__________________________________________
_______________________________________
__________________________________________
_______________________________________
__________________________________________
_______________________________________
__________________________________________
_______________________________________
__________________________________________
_______________________________________
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CUSTOMER RELATIONSHIP competitors. This is because a customer not only
CUSTOMER SERVICE buys a product and service, but also the entire
purchase or shopping experience.
Customer-Driven Marketing
A customer is a person or organization that transacts The value of customer service is evident in the local
with businessperson or business organization to buy setting. As Philippine organizations become involved
goods or services for monetary or other valuable with ASEAN and global business, the importance of
consideration. service quality increases. Due to exposure to western
Acquiring and keeping customers is the end goal of practices, Filipino consumers are becoming more
businesses because customers create demand. sophisticated and discriminating. They are also more
Through customers’ purchases, organizations are demanding in level of service that they receive.
able to cover manufacturing costs, operating Filipinos believe that their service demands are
expenses, and generate profits. Because businesses reasonable. This is because the costs of labor (and,
have to be sustainable, products or services are not therefore, customer service) in the Philippines is
expected to be purchased only once. They need to be comparatively lower than other countries. As a result,
purchased over and over again in order to maintain local businesses have, over the years, launched
profitable and sustainable operations. programs to satisfy increasing customers service
Customer Service needs.
Customer service is the practice of ensuring customer
satisfaction with a product or service. Customer
Customer Relationship Management (CRM)
service can take on many forms- salesperson
assistance, product delivery, technical advice, help Is a process of managing an organization’s
desks or other means. It involves activities designed interactions with current and future customers. The
to enhance customer satisfaction, or the perception rationale for CRM is the recognition that companies
that a product has met or exceeded expectations. can sustain long-term profitability by attracting and
Good customer service can cause customers to maintaining their most valuable customers. These are
perceive the value offered superior over its
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customers that can directly or indirectly generate the
greatest revenues and financial returns.
Successful Customer Relationship Management
Customer Lifetime Value (CLV) Strategies

Is the forecasted sales or profits that a company can The following are effective guidelines in the
derive from the entire span of the future relationship implementation of customer relationship management:
with a particular customer.
1. Adopt the right mindset towards customer
A customer’s lifetime value can be based upon the service
potential value and profitability of their relationship If product improvement is not any more effective,
with the company. business turn to customer service will not strain,
Investments in customer service but will instead
The CLB perspective has several distinct
improve a company’s finances over time.
implications:
2. Purchase or develop CRM software
• It considers a longer-term perspective of a Through CRM, a company manages a company’s
company’s relationship with customers in interaction with current and future customers with
contrast to a short-term view of “take the ease. CRM often involves the use of technology
customer’s money and run” to organize, automate and synchronize sales and
• It calculates and compares costs of acquiring a marketing with customer service and technical
new customer and keeping old ones. support.
• It highlights the importance of market 3. Quantify customer acquisition and retention
segmentation, with the recognition that some costs
customer groups are more profitable than Using CLV, the total cost of acquiring or retaining
others. a customer can be calculated and determined,
CLV can also be a guide in selective product
discounting.

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4. Develop and implement a customer service Question:
training program
1. Why is there need to maintain relationship with
The customers are the life blood of any business.
customers? Does this apply to the neighborhood
This makes customer service critically important.
sari sari store?
Customers expect to get what they pay for.
Explain_________________________________
5. Empower Salesperson to make decisions
_______________________________________
The salesperson is the person most responsible for
_______________________________________
sealing the deal with a customer.
_______________________________________
6. Establish communication lines between your
_______________________________________
customer and customer and contact staff
_______________________________________
Communication is essential for the CRM
_______________________________________
strategies. Personalize and humanize the business
_______________________________________
and its atmosphere.
_______________________________________
7. Shop your competition
2. What does employment of salespersons to make
Keep track of what competitors are doing in the
decision mean to you? Explain______________
area of customer service. Adopt their practices to
_______________________________________
stay ahead of the game.
_______________________________________
8. Keep innovating customer service
_______________________________________
Never be satisfied with the level of your service.
_______________________________________
9. Promote genuine customer service with
_______________________________________
passion Customers can easily discern if customer
_______________________________________
service is insincere
_______________________________________

PRINCIPLES OF MARKETING