Principles of Marketing
The Marketing Plan
1
The Marketing Plan
A marketing plan is a comprehensive document or blueprint that outlines a
company's advertising and marketing efforts for the coming year. It
describes business activities involved in accomplishing specific marketing
objectives within a set time frame.
Objectives:
1. Define the significance of the Marketing Mix
2. Enumerate the Importance of Marketing
3. Describe the Traditional Approaches to Marketing
Marketing, a matter of common sense and more; the AMA definition “Doing
better than best is the essence of progress. And this holds for marketing as
well.”
The heart of your business success lies in its marketing. Most aspects of your
business depend on successful marketing. The overall marketing umbrella
covers advertising, public relations, promotions and sales. Marketing is a
process by which a product or service is introduced and promoted to
potential customers. Without marketing, your business may offer the best
products or services in your industry, but none of your potential customers
would know about it. Without marketing, sales may crash and companies
may have to close
History of Marketing:
Marketing is the paradox, which is not known to many. It is the world’s oldest
professions, but at the same time he world’s relatively newest discipline of
learning. Many so called marketing activities then were referred as to as
either trade or commerce or distribution.
The establishment of a market economy wrought marked changes in the
social and economic structure. A new attitude toward business
revolutionized the economy of the country and that revolutionary element
was identified by the term „marketing.‟ Historical accounts of trade lead one
to conclude that marketing has always existed. Was the original use of the
term marketing merely an application of a new name to an old practice? One
theory is that language is an invention of man, an adornment. The other
explanation of the origin of language is that it is inseparable from reason.
Accordingly, man‟s language has developed as his thoughts have developed.
By marketing was first meant “that combination of factors which had to be
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taken into consideration prior to the undertaking of cer6tain selling or
promotional activities.” The essence of marketing was the combination of
factors. Blindness to and ignorance of that combination of factors is the
reason for the absence of terms equivalent to marketing in other languages.
Marketing must be regarded not merely as a business practice, but as a social
institution.
Marketing is essentially a means of meeting and satisfying certain needs of
people. It is a highly developed and refined system of thought and practice
characteristic of a period in the development of market economy. A latent
presumption in the practice of marketing has been that marketing gives to
society more than society gives to it. The fact is that marketing is but one of
several means of accomplishing a social objective.
Earlier Theories Relevant to Marketing Thought
The development of marketing thought began early in the twentieth century
with the conception of marketing. Early students of marketing were actually
educated as economists. Although they brought forth divergent theories,
students of marketing evolved a body of thought that by its nature, scope and
application, set them apart from the usual economists.
Market
By 1900, it was being found that demand consisted of more than simple
purchasing power. It reflected desire as well as ability to purchase, and new
experiences with advertising and salesmanship were proving that desire
could be increased and molded by factors other than the mere existence of
supply. Another concept of the market concerned its capacity to adjust itself
automatically to a harmonious equilibrium. It had long been held that
competitive forces would normally, in the long run, dissipate tendencies of
dis-equilibrium, but as competition diminished in some industries and
trades, the assumptions found in traditional economic theory became
increasingly invalid. A third idea was that cost was the principal determinant
of price, at least in the long run. Concepts of the elasticity of demand were
still another influence upon the thinking of early students of marketing.
Alfred Marshall‟s concept of elasticity of demand has long been used by
marketing writers as a theoretical basis for selling, advertising and the
promotional work of marketing in general.
Value Theory
Value theory was another area of economic thought relevant to early studies
of marketing. Economists leaned heavily upon input factors, determining
their relative quantities and prices. Adam Smith held also, against most
commonly held beliefs, that distributive activities contributed to value, but
only indirectly. They extended the market, thereby making opportunities for
increased production and for greater specialization of labor in production.
Economists also distinguished in their value theories valuein-use and valuein-exchange. PRODUCTION. In the eighteenth century, productivity was held
by the physicocrats to be the production of a surplus over costs. Concepts of
production included: diminishing returns 3 marginal productivity
Principles of Marketing
The Marketing Plan
3
opportunity costs, and the representative firm However, in 1900, there was
no clear concept of the justification of marketing as a productive activity or
as a contribution to economic production. On the contrary, the popular
impression was that the middleman added cost instead of value. Adam Smith
conceived man as „the economic man‟ bent upon a constant effort to better
his condition. Thus there was a natural basis for competition, and according
to natural motivations they would effect perfect competition. Ricardo
foresaw the uncertainties of an expanding economy. He viewed a growing
disparity of interests in the rising factory system. Alfred Marshall perceived
basic cooperation among all parties through the system of markets. His
viewpoint, insofar as he emphasized the short run, tended to coincide with
the interests of businessmen.
Consumer
Not until the latter part of the nineteenth century, with the writings of the
Austrians did real consideration of the consumer make its way into economic
theory.
Enlargement of the Market
The classical economist has assumed markets to be local wherein demanders
and suppliers knew of each others presence and this knowledge resulted in
perfect competition. With the Industrial Revolution, new importance was
attached to information, promotion, and the quest for satisfactory products.
Extended markets gave the opportunity for production on a scale larger than
had ever before been undertaken. The rapid transition from an agricultural
economy to an industrial economy at the end of the century poured into the
market such quantities of products as to warrant the conclusion that a
buyers market was replacing a sellers market. It had long been a
presumption of economic theorists that production was basic that the value
created by production constituted the extent of demand in the market, but
the American market was anything but static.
Traditional Approaches of Marketing:
What is tradition marketing
Traditional marketing is a rather broad category that incorporates many
forms of advertising and marketing. It's the most recognizable type of
marketing, encompassing the advertisements that we see and hear every day.
Most traditional marketing strategies fall under one of four categories: print,
broadcast, direct mail, and telephone. (See also Cross-Media Marketing)
Print marketing is the oldest form of traditional marketing. Loosely defined
as advertising in paper form, this strategy has been in use since ancient
times, when Egyptians created sales messages and wall posters on papyrus.
Today, print marketing usually refers to advertising space in newspapers,
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magazines, newsletters, and other printed materials intended for
distribution.
Broadcast marketing includes television and radio advertisements. Radio
broadcasts have been around since the 1900s, and the first commercial
broadcast—a radio program supported by on-air advertisements—aired on
November 2, 1920. Television, the next step in entertainment technology,
was quicker to adopt advertising, with less than ten years between its
inception and the first television commercial in 1941.
Direct mail marketing uses printed material like postcards, brochures,
letters, catalogs, and fliers sent through postal mail to attract consumers. One
of the earliest and most well-known examples of direct mail is the Sears
Catalog, which was first mailed to consumers in 1888.
Finally, telephone marketing, or telemarketing, is the practice of delivering
sales messages over the phone to convince consumers to buy a product or
service. This form of marketing has become somewhat controversial in the
modern age, with many telemarketers using aggressive sales tactics. The U.S.
federal government has passed strict laws governing the use of
telemarketing to combat some of these techniques.
Traditional Marketing Strategies and the 4P’s–or are there 5?
Traditional marketing has always been defined by the 4P’s–Product,
Promotion, Price and Place. Traditional marketing techniques typically focus
on identifying the right audience segment, understanding their behavior, and
providing the proper incentive to get them to buy a product or service, and in
addition, there is the location or channel consideration. Sound familiar?
In the past,
marketers
were
limited to oneway
broadcast
media. The goal
was to use the
proper media
mix to deliver as
many
impressions
as
possible,
providing the right
promotional
incentive to get the
consumer
to
buy the product or
service. With
the
advent
of
Google,
the
increasing
penetration of
smartphones, and
the
proliferation
of
social
media
platforms
–
marketers now
face a daunting
array
of
possible options. It
now has been suggested that marketers add a fifth “P” – for People – to the
mix.
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The Marketing Plan
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Advantages of Traditional Marketing
Identifying and understanding your target audience is still the key to
marketing success. Many traditional marketing techniques remain
appropriate. Audience segmentation is one example. Marketers can identify
ways to provide a relevant and meaningful customer experience by creating
segments for a number of components like:
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audience composition
buying behavior
geography
events
Traditional Marketing 2013
With defined audience segmentation and on target offers, traditional
marketing is still very effective when acquiring some customer segments.
Traditional marketing strategies offer an effective way to deliver
content to current and prospective customers, and can become a
catalyst to drive your web site along other traffic marketing assets. This
traditional marketing approach is often referred to as “push”
marketing.
Promotions and offers are still important pieces in the marketing mix, but in
2013, content is a new form of currency. Instead of relying solely on coupons
and price discounts, marketers can offer valuable information that
consumers will find relevant and engaging.
Delivering the right message through the proper channel is more important
than ever. Traditional marketing strategies still work as they expand to
incorporate more options.
Strategic Marketing Solutions Can Help
Here’s how Strategic Marketing Solutions can help with your traditional
marketing strategies:
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Identify your target audience.
Creating relevant content that will optimized the customer experience.
Select channels for delivery including Email and/or Direct Mail.
Develop a variety of marketing materials for the selected channels
Test messages and then measure results.
How is a traditional Marketing Plan Developed & Employed?
The strategies for developing a traditional marketing plan vary widely,
according to the form of advertising used and the type of business. In some
companies, particularly small businesses, the entire staff will contribute to
planning and execution. Larger companies often have marketing
departments dedicated to creating advertising campaigns that use traditional
marketing.
The first step in developing a plan is to choose print, broadcasting, direct
mail, or telemarketing. This choice depends on the budget and the marketing
message conveyed. For example, a store that's announcing a sale will use
more immediate impact strategies like broadcasting or print, while a
business launching a general awareness campaign might choose direct mail,
which stays in consumers’ hands for a longer period of time.
For print and broadcast marketing, the business must arrange to purchase
advertising space. The timing of this step depends on the lead time, or how
far in advance the advertising space must be purchased. Some print media,
such as wide-circulation magazines, have lead times of several weeks. For
example, an advertisement in Sports Illustrated magazine must be reserved at
least five weeks in advance and longer for premium placement. Other
markets have shorter times, with some newspapers allowing next-day ad
placement.
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The Marketing Plan
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The development
of
marketing
materials
also
varies depending
on the form. Direct
mail and print
campaigns require
graphic design and
copywriting.
For
telemarketing, the
advertisers write a
script for the sales
representatives (or
outsourced
telemarketing
company) to follow.
Radio ads may be
either
produced
and pre-recorded,
or scripted and
read by on-air
personalities. Finally, television commercials can either be written by the
marketing department and produced in-house, or contracted out to
production companies.
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Career In Marketing
A brand manager is responsible for planning, developing, and directing the
marketing efforts for a particular product or brand. This may be an entire
company, or a line of products within a large company.
Brand managers coordinate the activities for a team of marketers involved in
several facets of operation, including research and development, production,
sales and advertising, purchasing, distribution, packaging development, and
financing. These professionals decide on marketing strategies, conceptualize
and oversee marketing campaigns, and control the brand’s public image
through advertising.
A typical brand manager will hold a four-year bachelor's degree in marketing
or advertising. In addition, most large companies require at least four years of
experience in lower marketing positions, such as sales representatives.
What They Do
The job of an advertising sales director is to manage the entire advertising
strategy of a company from all directions, including business, sales, and
technical perspectives. Typically in charge of a team of sales representatives,
these high-ranking managers oversee the development of sales materials,
campaign implementation, and advertising budgets and projections.
Education and Experience
An advertising sales director must hold a four-year bachelor's degree in
marketing, sales, or advertising, and typically needs a minimum of 10 years’
experience in sales and marketing. Most businesses hire advertising sales
directors who have proven track records in marketing success.
What They Do
A media director typically works at an advertising agency that develops and
implements marketing strategies for other companies. The job of the media
director is to manage the purchase of print space and broadcast time for
clients.
These professionals work with a client to choose the most effective avenues
for traditional marketing, usually through market research and statistical
models. They are also responsible for working with media sales
representatives to place the advertisements.
Education and Experience
A four-year bachelor's degree in sales, marketing, or advertising is required to
become a media director. As with most management-level marketing
professionals, a media director also needs at least 5 years of field experience,
with a proven record of results.
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The Marketing Plan
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Traditional marketing is a diverse field, involving many different strategies
and methods. Earning a degree through a marketing program provides the
knowledge and skills required to effectively use traditional marketing
techniques -- from print to broadcast.
Coursework in marketing programs are designed with traditional marketing
strategies in mind. Many schools offer degree programs geared specifically
toward print or broadcast marketing, such as Broadcasting Media and Graphic
Design. This includes subjects like communication, which helps professionals
understand the most effective ways to design and deliver traditional
marketing campaign. Marketing programs will also have courses on consumer
psychology, which teaches a strong understanding of buying habits and
motivations.
Marketing Goals and Objectives
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
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Increase sales
Build brand awareness
Grow market share
Launch new products or services
Target new customers
Enter new markets internationally or locally
Improve stakeholder relations
Enhance customer relationships
Improve internal communications
Increase profit
Developing SMART Marketing Objectives:
Essentially your marketing objectives need to fit in with the overall business
objectives and drive the direction of your marketing strategy. To be effective,
any objective should be SMART.
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A SMART objective is always:
Specific
Measureable
Achievable
Realistic
Time-bound
The purpose therefore of setting SMART objectives is to clarify where you
want to be, providing a measurable objective that can be monitored and
plans developed to help meet the business goals.
Marketing objective examples


Typical marketing objectives we see clients set include:
To increase the number of enquires from our marketing communications
activities by 15% by the end of the year
To increase sales by 20% within 18 months
Win Marketing provides support to help clients set their marketing
objectives. This can be done through facilitating a marketing objectives
workshop where key issues can be discussed and agreed. Alternatively, with
smaller companies we work directly with Managing Directors on a one-onone basis to help them develop their key marketing goals and objectives.
Both approaches can help a company to agree business objectives and
marketing objectives and allow a marketing plan to be developed to set a
direction out as to how these objectives can be achieved. Other issues which
can also be discussed in a workshop include methods of measuring success
and monitoring and evaluation processes.
Glossary
Cross-media marketing is a form of cross-promotion in which promotional
companies commit to surpassing traditional advertisement techniques and
decide to include extra appeals to the products they offer. The material can
be communicated by any mass mediasuch as e-mails, letters, web pages, or
other recruiting sources.
Direct - Mail marketing a marketing effort that uses a mail service to
deliver a promotional printed piece to your target audience . Direct
mail encompasses a wide variety of marketingmaterials, including
brochures, catalogs, postcards, newsletters and sales letters.
Telemarketing (sometimes known as inside sales, or telesales in the UK and
Ireland) is a method of direct marketing in which a salesperson solicits
prospective customers to buy products or services, either over the phone or
through a subsequent face to face or Web conferencing appointment
scheduled during the call.
Include list of words (arranged alphabetically) with their corresponding
meaning as used or referred to in the module. You need to include this if you
have not discussed terminologies within the content of the module.
References
1. http://www.investopedia.com/terms/m/marketing.asp
2. https://www.google.com.ph/search?site=&source=hp&q=Telemarketing
&oq=Telemarketing&gs_l=hp.3..0i67k1j0i131k1j0l8.993.4086.0.4341.14.
10.0.4.4.0.155.1069.0j9.9.0....0...1c.1.64.hp..1.12.964.0..46j35i39k1j0i10i6
7k1j0i46k1.EjQMdpcjwck
3. http://www.marketing-schools.org/types-of-marketing/traditionalmarketing.html#link1
4. http://www.healthedpartners.org/ceu/hm/a02history_of_marketing_tho
ught_by_bartels_hermans.pdf
Principles of Marketing
The Marketing Plan
5. http://www.strategicdriven.com/traditional-marketing/
6. http://www.winmarketing.co.uk/business-and-marketingobjectives.html
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