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Principles of
Marketing
Quarter 1 – Module 1:
Weeks 1-2

Marketing Principles, Goals and Approaches

Locally Developed Self-Learning Material


Principles of Marketing – Grade 12
Second Semester, First Quarter – Module 1 Weeks 1-2: Marketing Principles, Goals and
Approaches

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the
Government of the Philippines. However, prior approval of the government agency or office wherein the
work is created shall be necessary for exploitation of such work for profit. Such agency or office may,
among other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks,
etc.) included in this module are owned by their respective copyright holders. Every effort has been
exerted to locate and seek permission to use these materials from their respective copyright owners.
The publisher and authors do not represent nor claim ownership over them.

Development Team of the Module

Writer: Shermein F. Sunga

Editors: Rosalinda DP. Anonas


Edmundo Banagan
Belinda G. Calizar
Lia Ann M. Cortez
Christine C. Damaso
John Rhimon A. Gelacio
Raquel S. Polante
Mark Jon Zamora

Cover Illustrator: Gamaliel R. Paz, Jr.

Reviewers: Samantha T. Dizon


Yvette H. Roque
Nestor N. Balois
Corazon B. Dumlao, PhD

Management Team:
Leilani Samson Cunanan, CESO V
Maylene M. Minimo, EdD, CESE
Ariel C. Lansang
Jose C. Tala, EdD

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What I Need to Know

Marketing is one of the primary components of business management and commerce. The term
marketing, what is commonly known as attracting customers, incorporates knowledge gained by studying the
management of exchange relationships and is the business process of identifying, anticipating and satisfying
customers needs and wants.
Once you learned the concepts about marketing and its related principles, this could be your stepping
stone to augment personal income. Personal marketing can be performed at home.
In this module, you will be able to demonstrate an understanding of the marketing principles, goals, and
traditional and contemporary approaches to marketing. Readings and enhancement activities are provided to
guide you on your journey. Let’s go!

The module is consists of:

Lesson 1.1 – What is marketing, marketing principles and goals?


MELCs: ABM_PM11-Ia-b-1

Lesson 1.2 – What are marketing approaches?


MELCs: ABM_PM11-Ia-b-1

After going through this module, you are expected to:

1. define marketing and marketing principles;


2. identify marketing goals;
3. understand the different approaches to marketing; and
4. plot marketing goals and approaches for product or service.

What I Know

Directions: Read each item carefully. Write only the letter of the correct answer for each question. Use a
separate sheet for your answers.

1. A _________ is a person or a business that buys goods or avails of services produced or offered by a firm.
A. bystander C. customer
B. client D. watcher

2. It refers to the desires shaped by culture, the environment, and influenced by others.
A. demands C. needs
B. likes D. wants

3. These are the basic human requirements.

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A. demands C. needs
B. likes D. wants

4. These are actions taken by the market in response to their wants.


A. demands C. needs
B. likes D. wants

5. It consists of end users and consumers who purchase products for own consumption.
A. business markets C. global markets
B. consumer markets D. nonprofit and governmental markets

6. __________ refers to the exact steps a company must take to reach its goals.
A. goal C. objective
B. goal setting D. tactic

7. This is a technique that uses the expertise of people who can provide the best answer to
customers’ most challenging questions about the product or service.
A. boost sales C. empower colleagues
B. building brand awareness D. thought leadership

8. It refers to building and managing customer relationship.


A. marketing concept C. relationship marketing
B. production concept D. sales concept

9. This approach refers to any type of marketing that is not online.


A. contemporary marketing C. offline marketing
B. inbound marketing D. traditional marketing

10. A technique for drawing customers to products and services via content marketing, social media
marketing, search engine optimization and branding.
A. contemporary marketing C. offline marketing
B. inbound marketing D. traditional marketing

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Marketing Principles and Goals

What’s In

Good day student! You may be wondering what is marketing or you may be thinking, is marketing an
activity happening in marketplaces? Is it when someone goes to market to buy goods or commodities?
In our lesson for today, you will learn more about marketing, its concept and principles. Now sit back
and let us learn together.

What’s New
Activity 1.
When you hear the word marketing, what comes to your mind? Write your answers in 1-2 sentences on your
answer sheet.

? _________________________
_________________________
Photo source: kissclipart.com _________________________
_________________________
_________________________

What is It
It is important to have loyal customers or what is known as “suki.” However, to attain this, it is important to
have a reliable and effective marketing strategy.

Marketing is defined by the American Marketing Association 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.” If you read the definition closely, you see that there are four activities, or
components, of marketing:

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Four (4) Components or Activities of Marketing

1. Creating is the process of collaborating with suppliers and customers to create offerings that have
value.
2. Communicating is broadly, describing those offerings, as well as learning from customers.
3. Delivering is getting those offerings to the consumer in a way that optimizes value.
4. Exchanging is trading value for those offerings.

The traditional way of viewing the components of marketing is via the four Ps:
1. Product. Goods and services (creating offerings).
2. Promotion. Communication.
3. Place. Getting the product to a point at which the customer can purchase it (delivering).
4. Price. The monetary amount charged for the product (exchanging).

Important Marketing Concepts

Needs are the basic human requirements (i.e. food, clothing, shelter, and safety as physical needs; social
needs for belongingness and affection; and individual needs for knowledge and self-expression).

Wants are the desires shaped by culture, the environment, and influenced by others.

Demands are actions taken by the market in response to their wants. This is usually a want backed up by
the willingness and capacity to purchase.

Exchanges are the acts of obtaining a desired object from someone by offering something in return.
Marketing consists of actions trying to build an exchange relationship with an audience.

Market is the set of all actual and potential buyers of a product or service. It is composed of people with
both desire and ability to buy a product or service.

The needs, wants, demands are vital concepts every marketer should understand before a marketing
process will take place. In this way, a company can better serve its target market such that they can benefit, may
find value, and may have the ability and willingness to purchase a particular offering.

Four (4) Types of Customer Markets

1. Consumer markets consist of end users and consumers who purchase products for own consumption.
2. Business markets consists of business and other entities that usually purchase raw materials and other
resources for the purpose of reselling and for its own operation.
3. Global markets have a global scope and a wider reach in terms of the market they target.
4. Nonprofit and governmental markets have limited purchasing power and most buyers are practical. This
market’s purpose for availing products and services is not solely for commercial purposes.

Marketing Entities
The main types of entities that are usually marketed for the different kinds of markets are as
follows:

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 Physical goods  places
 Services  Properties
 Experiences  Organizations
 Events  Information
 persons  ideas

What is a goal?
Marketing is all about goals. Without them, you have no way of knowing whether or not your
work is worthwhile. Think of it like planning a trip. In order to know when you have arrived, you need to
select a destination first. Otherwise, you would be traveling aimlessly. There is another word for that:
getting lost.

A goal is a brand statement of what you want to accomplish. Goals are desired results,
ambitions, aims or anything that a person so wish to accomplish given a certain timeframe.

Objective refers to the exact steps a company must take to reach its goals.

Tactic refers to the tools used in pursuing an objective.

Strategy refers to the long-term methods or approaches and plan of actions towards the
achievement of goals.

FIVE (5) MARKETING GOALS

1. Building Brand Awareness is the extent to which a brand is recognized by potential customers and is
correctly associated with a particular product or service.
 Build/increase brand awareness and name recognition.
 Drive traffic to website.
 Generate more search traffic and improve keyword rankings.
 Grow social media following.
 Attract new prospects.
 Obtain/increase coverage with key media (public relations).

2. 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.
 Establish/build reputation as a thought leader in niche.
 Educate, inspire and build trust with audience.
 Demonstrate expertise in (niche area).
 Drive traffic to blog.
 Increase number of referring websites (backlinks).
 Contribute to online conversations about (niche area).
 Obtain speaking engagements.
3. Lead Generation and Conversion (prospects) - A lead is any person who indicates interest in a
company's product or service in some way, shape, or form.

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 Generate leads.
 Generate more qualified leads.
 Nurture and engage qualified leads.
 Improve lead conversion rate.
 Address and overcome prospect objections.
 Drive email subscriptions.

4. Boost Sales (customers, partners, influencers) – build and manage customer relationship
 Deepen loyalty with existing customers.
 Cross-sell and expand sales to existing customers.
 Enhance customer relationships.
 Attract strategic partners.
 Improve stakeholder relations.
 Create customer advocates.
 Increase positive customer reviews/ratings.

5. Empower Colleagues (employees, prospective employees) - how well your communication has been
received and understood internally.
 Improve internal communications.
 Attract potential job applicants.
 Increase exposure through staff use of social media.
 Provide communication channels for feedback and ideas.

The SMART Goals Framework


When it comes to talking about goals, whether marketing or otherwise, the SMART framework is
the most popular by far. It is a mnemonic for the most important characteristics of a goal. In marketing,
the best goals are SMART goals. They are Specific, Measurable, Attainable, Realistic, and Time-bound.

When you use this system to define your goals, you define much better goals that in turn inspire
a much better marketing campaign. Each step of the SMART framework should be considered in depth
with regards to its full meaning.

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Photo source: greaterphoenix.score.org/blog

**Examples of noteworthy marketing goals:


1. Identifying the target market.
2. Increasing sales and profits.
3. Increasing brand awareness.
4. Increasing market share.
5. Countering competitive strategies.

KEY TAKEAWAYS
 Marketing refers to all activities a company does to promote and sell products or services to
consumers.
 Marketing makes use of the "marketing mix," also known as the four Ps—product, price, place,
and promotion.
 At its core, marketing seeks to take a product or service, identify its ideal customers, and draw
the customers' attention to the product or service available.
 A customer is a person or a business that buys goods or avails of services produced or offered
by a firm.
 A product applies to anything that is being marketed, whether it is a tangible product, and
intangible good, a service, a place, or even a person.
 Goals are desired results, ambitions, aims or anything that a person so wish to accomplish
given a certain timeframe.
 There are five marketing goals:
o building brand awareness;
o thought leadership;
o lead generation and conversion;
o boost sales; and
o empower colleagues.
 In marketing, the best goals are SMART goals. They are Specific, Measurable, Attainable,
Realistic, and Time-bound.

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What’s More
Activity 2.
Directions. List what is asked in the following. Write your answers on a separate sheet of paper.

A. Four (4) activities or components of marketing.


1.
2.
3.
4.
B. Five (5) marketing goals.
5.
6.
7.
8.
9.

C. One (1) marketing entity that interests you.


10.

Activity 3. Directions. Match column A with Column B and write ONLY the letter of your answer on your answer
sheet.
A B
1. These are desired results, ambitions, aims or anything that a A. goals
person so wish to accomplish given a certain timeframe. B. objective
2. The tools used in pursuing an objective. C. SMART goals
3. Specific, Measurable, Attainable, Realistic, and Time-bound. D. strategy
4. The exact steps a company must take to reach its goals. E. tactic
5. It refers to the long-term methods or approaches and plan of
actions towards the achievement of goals.

What I Have Learned


Activity 4.
Directions. Fill in the paragraph below using the words inside the box. List your answers on your answer
sheet.
activity creating communicating
delivering exchanging value
Marketing is defined by the American Marketing Association as “the ___________, set of institutions, and
processes for_____________, ______________, _____________, and ____________ offerings that have
_____________ for customers, clients, partners, and society at large.”

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What I Can Do

Activity 5.
Answer the table on your answer sheet. If you are to manage a small business in your community, what
products or services will you sell/offer, for whom are you selling your product and what are your goals in
selling? List at least three (3) products.

Product Customer Specific Business Goals


Example: Graham Balls students To sell 100pcs daily.
To satisfy customers.
To earn PhP 200.00 daily.

Activity 6. Directions: Write T if the statement is true or F if the statement is false. Write your answers on
your answer sheets.

1. There are ten (10) marketing entities that are usually marketed to different kinds of markets.
2. Products are referred to goods and services.
3. Thought Leadership is a technique that uses the expertise of people who can provide the best
answer to customers’ most challenging questions about the product or service.
4. Communicating describes those offerings, as well as learning from customers.
5. Price is the monetary amount charged for the product.
6. Marketing mix stands for production, price, place and promotion.
7. Busy markets consist of business and other entities that usually purchase raw materials and
other resources for the purpose of reselling and for its own operation.
8. Supermarket is the set of all actual and potential buyers of a product or service. It is composed of
people with both desire and ability to buy a product or service.
9. Product sales builds and manages customer relationship.
10. Local markets have a global scope and a wider reach in terms of the market they target.

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Activity 7.
Directions: Read and study the success story of Jollibee Food Corp., then answer the following
questions in 1-2 sentences on your answer sheets.

Born third of seven siblings, Tony Tan Caktiong was from a poor family in China who immigrated to the
Philippines in hope that they may have a better life. His family helped each other out, establishing a restaurant
business in Davao which enabled young Tony to study Civil Engineering in the University of Santo Tomas.

When he was 22, Caktiong decided to shell out P350,000 in an ice cream parlor franchise. He opened
Cubao Ice Cream House and Quiapo Ice Cream House. As their business becomes more and more successful,
they started to hire more people to help them manage it. Two years later, he decided to serve hamburgers, fried
chicken, and spaghetti as people began to tell him that they don’t want to eat ice cream all the time. It was then
that they decided to rebrand and change their name to “Jollibee” as it represents them as a company, and the
people that they cater to – hardworking and happy.

McDonald’s came into the picture not many years later, but they failed to take over Jollibee’s popularity
as, according to Caktiong, they don’t know the local food culture. Filipinos have a sweet taste on food, so Jollibee
decided to serve spaghetti with a sweeter flavour. Filipinos like to smell everything they eat, which is the reason
behind the “Langhap Sarap” tagline they have been using for a while now.

As years go by, the Jollibee group grew bigger. Caktiong partnered up and established a couple other
food chains including Chowking, Red Ribbon, Greenwich, and Delifrance. Aside from bringing Jollibee, Chowking,
and Red Ribbon to other countries, they’ve also established new food chains in China and Taiwan which suit the
tastes of the people there.

As of 2016, Tony Tan Caktiong ranked 6th in Forbes’ Philippines’ 50 Richest. He was also awarded the
Entrepreneur of the Year and the Ernst and Young Entrepreneur of the Year in 2004. (Good Customer Service
Matters, 2021)

Questions:

1. Based on the story, identify the 4Ps of marketing.


Product:
Price:
Promotion:
Place:

2. How these 4Ps of marketing helped in the success of Jollibee Food Corp.?

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MARKETING APPROACHES

What’s In
In our previous topic we learned so much about marketing principles, approaches and goals. To
help you recall these concepts, here is an activity for you to do. Are you ready?

Activity 1.
Directions. Unscramble the letters below to reveal the different terminologies learned from the previous lesson.
Write your answer on your answer sheet.

1. GNIRAMTEK
2. SDNAEMD
3. NPORIOTOM
4. TOSOB SELAS
5. TRAMS LAGOS

What’s New
Activity 2. Directions. Answer the question balloon in 2-3 sentences on your answer sheet.

?
Have you heard the word live-selling? If yes,
how do you define live-selling? If no, would you
like to try live-selling a product online, why?

Photo source: kissclipart.com

Our next lesson will teach us the different marketing approaches. It will help us understand
and appreciate the different ways of selling or marketing a product in a traditional and modern methods.
So, read on, and learn some more.

What is It

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TRADITIONAL APPROACHES TO MARKETING

Traditional marketing refers to any type of marketing that is not online. This means print,
broadcast, direct mail, phone, and outdoor advertising like billboards. From newspapers to radio, this
method of marketing helps reach targeted audiences.

Traditional marketing is a long-established approach to marketing wherein marketers seek to


attract customers to a specific product or service through whatever means of promotion, advertising, or
campaign that have been in use of decades and has a proven success rate.

Traditional media are used in conveying marketing messages. Its main categories are as
follows:
 Print
 Broadcast
 Direct mail
 telemarketing

CONCEPTS OF TRADITIONAL MARKETING

Production concept focuses on the internal potentials of the company and not based on the
desires and needs of the market.

Sales concept refers to the idea that people will buy more goods and services through personal
selling and advertising done aggressively to push them in the market.

Marketing concept a philosophy which states that organization must try hard to find out and
satisfy the needs and wants of consumers while at the same time accomplishing the organizational goals.

Relationship concept/marketing is an approach that centers on maintaining and improving value-


added long-term relationships with current customers, distributors, dealers and suppliers.

Societal Marketing Concept views that organizations must satisfy the needs of consumers in a
manner that gives for society’s benefit.

CONTEMPORARY APPROACHES TO MARKETING

Contemporary marketing refers to theories that stress the importance of customer orientation
versus the traditional market orientation. They are strategies that, when implemented, offer greater
support for their client base with a product range that varies depending on what the target market desires.
In contemporary marketing, the Inbound marketing approach is widely used.

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Inbound marketing is a technique for drawing customers to products and services via content
marketing, social media marketing, search engine optimization and branding. It improves customer
experience and builds trust by offering potential customers information they value via company
sponsored newsletters, blogs and entries on social media platforms. It utilizes the pull marketing as an
opposite to the traditional way. This allows potentials customers to find the company instead of the
unlikely customers being interrupted.

CONTEMPORARY MARKETING THEORIES

Co-creation. This theory suggests creating a bridge between customer and business
through gamification; allowing them to take part in the development process of their products. A
practical example would be attracting customers through social media content relevant to their
needs or writing article blog posts that have useful information.

Shared value. This theory offers perks to its target market while also gaining profits from it. A
successful example of this would include Tesla. They have invested millions of dollars building
charging stations for electric cars across North America, Europe and Asia.

KINDS OF CONTEMPORARY MARKETING

PERSON MARKETING Person marketing entails endeavors aimed at cultivating the attention,
interest and preferences of a target market toward a celebrity or authority figure.

PLACE MARKETING or place branding attempts to exert a pull customer to particular areas.
Place marketing is used to attract tourist and showcase the beautiful spots in different cities, provinces,
and regions. Place marketing is also used to promote sites that can be a nice choice for putting up a
business.

CAUSE MARKETING is the recognition and marketing of a social issue, cause or idea to the
target markets. Cause marketing increases the awareness of issues such as literacy, physical fitness,
child obesity, and environmental protection, elimination of birth defects, child-abuse prevention and
preventing drunk-driving.

EVENT MARKETING is the sport, culture and charity activities to selected target markets. it
consists of different sponsors from different companies to support such activities and also serves as
public awareness.

GREEN MARKETING refers to the process of selling products and/or services based on their
environmental benefits. Company are selling products and/or services by first promoting its benefit that is
environmental friendly or produced in an environmentally friendly way.

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DIGITAL MARKETING is the component of marketing that utilizes internet and online based
digital technologies such as desktop computers, mobile phones and other digital media and platforms to
promote products and services.

KEY TAKEAWAYS

 Traditional marketing refers to any type of marketing that isn't online.


 Traditional marketing uses outbound marketing.
 Contemporary Marketing refers to theories that stress the importance of
customer orientation versus the traditional market orientation.
 Contemporary marketing uses inbound marketing.
 The push and pull marketing strategy plays an important roles in the different
approaches to marketing.

What’s More

Activity 3. Directions: Answer the following. Use the choices below in identifying where the following
items categorically belong. Write the letter of your answer on your answer sheet.

A. Traditional approaches to marketing


B. Contemporary approaches to marketing

_____ 1. Production concept _____ 6. Digital marketing


_____ 2. Event marketing _____ 7. Sales concept
_____ 3. Marketing concept _____ 8. Place marketing
_____ 4. Cause marketing _____ 9. Societal marketing concept
_____ 5. Relationship marketing _____10. Person marketing

What I Have Learned


Activity 4 Directions: Complete the paragraph below. Write your answer on your answer sheet.

I learned that there are two approaches in marketing namely the


(1)______________________________ and (2) __________________________________. Under the
traditional approach are five (5) concepts and these are the (3) _______________________,
(4)________________________, (5) ______________________, (6) ________________________ and
(7) _________________________. With the contemporary approach are the six (6) components of
which are the (8)_______________________, (9)______________________,
(10)______________________, (11) _______________________, (12) ________________________,
(13)______________________.

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What I Can Do

Activity 5.
Directions: Identify the appropriate marketing approach. Write your answer on your answer sheet in 2-3
sentences.

As a student, you decided to start a small business buying and selling RTW (ready-to-wear)
items. What marketing approach will you use to sell your items and why?
_____________________________________________________________
___________________________________________________________

Activity 6. Directions: Answer the following by unscrambling the words. Write your answer on your
answer sheet.

1. NOSREP GMANIRKTE entails endeavors aimed at cultivating the attention, interest and preferences
of a target market toward a celebrity or authority figure.

2. CAPLE TEKRAMGNI attempts to exert a pull customer to particular areas.

3. LATEICOS ETIARKMGN PETNOCC views that organizations must satisfy the needs of consumers in
a manner that gives for society’s benefit.

4. DERASH ULAVE theory offers perks to its target market while also gaining profits from it.

5. TIPRONODCU PECTONC focuses on the internal potentials of the company and not based on the
desires and needs of the market.

Activity 7.
Directions: Read the paragraph below written by Vinish Parikh and answer the following questions in 1-
2 sentences only. Write your answer on your answer sheet in 2-3 sentences.

“Marketing is not a new concept because it has been there for past many decades, the only thing that has
changed is the way of doing marketing. Marketing which was done few years or decades back is called traditional
marketing while marketing which is done in the present era is called modern marketing, however, today’s
marketers sometimes also use traditional marketing wherever it is relevant.” (Parikh, 2021)

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Questions:
1. How do you think these changes in marketing approaches affects the lives of businesses around
your community?
2. Why do you think marketers nowadays, uses both the traditional and the contemporary (modern)
marketing approach?

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References:

Book:
Ilano, AB. (2016). Principles of Marketing. Manila, Philippines: Rex Book Store
Zarate, C. (2017). Principles of Marketing for Senior High School. Quezon City, Philippines: C
& E Publishing, Inc.

On-line/ Mobile App:


QuexBook mobile app – Principles of Marketing
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https://www.slideshare.net/bokernz/contemporary-marketing
https://www.slideshare.net/JohemieLopezQuinones/principles-of-marketing-for-grade-12-
students-77897248
https://www.conductor.com/blog/2018/05/smart-marketing-goals-examples/
https://smallbusiness.chron.com/meaning-marketing-goals-64828.html
https://coschedule.com/marketing-strategy/marketing-goals/#marketinggoals
https://blog.hubspot.com/marketing/goals-of-marketing
https://blog.hubspot.com/marketing/traditional-marketing-vs-digital-marketing
https://www.studocu.com/ph/document/polytechnic-university-of-the-philippines/fundamentals-of-
marketing/summaries/traditional-vs-contemporary-marketing-strategies/5300573/view
https://education.stateuniversity.com/pages/cw1fnp7eau/An-Introduction-to-the-Principles-of-
Marketing.html
https://www.investopedia.com/terms/m/marketing.asp
https://www.worldsupporter.org/en/chapter/41634-summary-principles-marketing-kotler
https://open.lib.umn.edu/principlesmarketing/chapter/1-1-defining-marketing/
https://greaterphoenix.score.org/blog/smart-smart-goals-%E2%80%93-recipe-success
https://primer.com.ph/business/2017/03/07/success-story-tony-tan-caktiong-of-jollibee-group/
https://www.lyfemarketing.com/blog/digital-marketing-vs-traditional-marketing/
https://www.lucidadvertising.com/blog/contemporary-approaches-to-marketing/
https://www.letslearnfinance.com/difference-traditional-marketing-modern-marketing.html
https://blog.jdrgroup.co.uk/digital-prosperity-blog/traditional-vs-contemporary-marketing-
strategies

Image:
https://s3.amazonaws.com/mentoring.redesign/s3fs-public/SMART-Goals.jpg
https://www.kissclipart.com/cartoon-businessman-clipart-businessperson-cartoon-pmqug7/

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