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Traditional Approaches in Marketing

That focus less on the customer’s need and wants and more on the other factors duch as production, product, and sales.

Production Concept

Its starts with the production process and the idea of this approach is that consumers favors companies that produces high-quality yet affordable goods

Product Concept

• believes that product should be of high quality, excellent, performance, and innovative features.

• Manufactures who uses this approach emphasize the importance of Innovation as the key to business success

Sales Concept

• Sales force to persuade customers to buy and had to entice (attract) consumers to purchase

• Personal selling (promotional tool wherein a sales person uses selling techniques and sales skills to persuade a customer)

• example of this is insurance

Goals of Marketing

1. Build Brand Awareness

2. Supporting High Sales Lead Volume

3. Establishing thought leadership

4. Boosting Sales

5. Increase Brand Engagement

• Primarily influences what ideas and message the product or services is trying to project in the minds of the consumers and how the consumers can relate to the brand

• It increases the retention of the brand and the product in the minds of the consumers.

• Marketers use a variety if ways to establish brand awareness and the most populat strategy is to put together a catchy logo and slogan

Supporting High Sales Lead Volume

• The sales force can convince the customers to purchase using persuasive selling

• Customers also check out brochures, flyers, billboards, or TV commercial to gain more info

Establishing Thought Leadership

• Thought Leadership was first coined by Joel Kutzman in Strategy + Business Magazine 1994 (New important ideas that are worth sharing and that have a real application)

• 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 services

Boosting Sales

• Marketing greatly helps in boosting sales

• Production and Marketing efforts go hand in hand in increasing sales

Increase Brand Engagement

• Companies can connect with customers through various creative ways on Facebook/Social Media

• through social media marketing has become an effective strategy according to Miodrag Magyar

Ultimate goal of marketing

is to build and maintain lasting relationships with customers

Marketing Concept

This concept challenges the traditional approaches that set aside the customer’s preferences, in this concept the marketers knows their clients first before developing goods.

Seller’s Market

An economic situation where there ate many buyers for a limited number of goods/services

Buyer’s market

more products and services than consumers who are willing to buy them

Societal Marketing Concept

A marketing philosophy that merges profitability with corporate social responsibility (it also considers the environment)

Relationship Marketing Concept

establishing lasting relationship with its customers and suppliers, it is used to attract repeat business (every new customer must be a returning customer)

Social Marketing

• aims to sell ideas and behaviors or transform negative habits or attitudes into positive ones for the benefit of individuals

• Its primary focus is for the people to learn specific values and think and act for the greater good

Relationship Marketing

• is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

• Key factor is customer loyalty or brand loyalty, it is when a customer had a several positive experience with the brand

Levels of Relationship Marketing

1. Basic Marketing

2. Reactive Marketing

3. Accountable Marketing

4. Proactive Marketing

5. Partnership Marketing

Basic Marketing

• Also called Direct sales and it is the most basic level of interaction between the company and customer.

• A salesperson takes charge of selling the products or services to consumers

Reactive Marketing

The transactions moves to a higher level because the sales person tells the customer that he or she can be contacted to answer any inquiry abt the goods

Accountable Marketing

• The sales person voluntarily contacts the customers to ensure that the products is in perfect condition

• Salesperson encourages the customers to provide suggestions on how to improve it

Proactive Marketing

The company works closely with a group of regular customers who provide constructive feedback for the improvement

Partnership Marketing

Final level, the company has already build a loyal group of customers that can help in improving its performance and offerings

Customer Value

• is the satisfaction derived from what a customer may experience or is expected to experience by choosing a particular action relative to the cost of that action

• The creation of customer does not rely on marketing alone. It encompasses other functions such ss sourcing, operations, processing, communication, human resource servicee, and etc.

Strategic Marketing

• is defined as the general plan of action aligned with the vision and goals of the company. This is a carefully thought-out course of action developed to achieve the desired result such as profitability and high productivity.

Strategic Marketing

• its puts a heavier emphasis on external environmental scanning to develop a strategies to respond ti the environmental forces

• it is the thinking process that outlines the course of action towards the achievement of a goal

• It has a longer time frame usually 3-5 years

According to Lambin

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 to execute an organization's strategy. It also refers to a detailed action program covering a shorter period.

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.

Name the necessary resources and monitor the allocated budget.

Get quotations for all the 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

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 in the tactics.

What are the marketing tactics in the marketing plan

1. Prepare an Action plan

2. Name the necessary resources and monitor all the allocated budget

3. Identify how the success of the tactics will be measured

The Marketing Environment

the sum of all the internal and external forces that affect the way a firm operates, particularly its ability to build and maintain relationships with its target customers.

The Microenvironment

consists of all the internal factors which have direct contact with and direct influence on the company. The microenvironment has five components.

Organization

itself consists of the owners, investors, and employees who are all considered members of the organization. The top management of the company must develop the mission, vision, goals, and policies which set the stage for the marketing plans. Top management provides direction and lays out the strategies and plans.

Suppliers

• provide the resources the organization needs to produce goods and services.

• A good relationship with suppliers enables the organization to ensure the availability of supplies for prompt operations.

Customers

are the people who are willing and can buy the products and services of the organization. They are considered the lifeblood of the business, for without them, the organization will cease to exist.

Marketing Intermediaries

are entities that assist in the distribution and selling of goods to customers. They help in the free flow of goods from organizations to the different markets.

Wholesalers

buy goods from manufacturers or producers and resell them to retailers and other organizations.

Distributors

selected by manufacturers to buy goods for resale to retailers. They usually hold a narrower range of goods than wholesalers and cover a specific geographic area.

Retailers

carry a wide range of goods that were bought from wholesalers or distributors and then sold directly to consumers. They have different brands of goods manufactured or produced by competing organizations.

Agents and Brokers

sell products for a certain commission or percentage of sales.

Competitors

rival firms that offer similar goods or services as the organization. Competitors can be either direct or indirect.

Direct Competitors

are brands competing in the same industry, offering essentially the same goods or services.

Indirect Competitors

offer products or services that differ slightly, but with the same benefits.