Principles of Marketing Reviewer

PRINCIPLES OF MARKETING
Marketing -Marketing is the process of creating,

distributing, promoting and pricing goods, services
and ideas to facilitate satisfying exchange
relationships with customers and to develop and
maintain favorable relationships with
stakeholders in the dynamic environment.
Customers- The purchasers of organizations’
products. The focal point of all marketing activities
Target Market- A specific group of customers on
whom an organization focuses its marketing
efforts.
Stakeholder- a party that has vested interest in
the organization and can either affect or be
affected by the business. The primary
Product Orientation- Centers management of the
stakeholders in a typical corporation are its
marketing function around mass production of the
investors (e.g. stockholders), employees and
product itself, continuous cost reduction and
customers. However, modern theory of being a
product innovation forming the basis of marketing
stakeholder may include additional parties such as
strategy.
the media, community, government, or trade
association. Sales Orientation
• It assumes that consumers typically show
buying inertia or resistance and must be
coaxed into buying.
• It also assumes that the company has a

whole battery of effective selling and
promotional tools to stimulate more
buying.
• Most firms practice the selling concept

when they have overcapacity.
• Their aim is to sell what they make rather

than make what the market wants.
Market Orientation
THE MARKETING CONCEPT
• Places the customer’s needs at the heart
Philosophy that holds that achieving of business strategy and is based around
organizational goals depends on knowing the a view of marketing as being “the ability
needs and wants of target markets and delivering to create and keep profitable customers”
desired satisfactions better that the competitors (Brown 1987)
do.
• Produce what consumers want, rather
that make products and try to persuade
customers that they need what is
produced
1|Page PRINCIPLES OF MARKETING REVIEWER 2018

ATENEO DE DAVAO SENIOR HIGH SCHOOL
• Organizing, Implementing, And
Controlling The Marketing Effort.
• Marketing Mix - set of marketing tools

that the firm uses to pursue its marketing
objectives in the target market
• The marketing mix refers to the set of

actions, or tactics, that a company uses to
promote its brand or product in the
market
Marketing Mix or 4P’s
 Product
 Place
 Price
 Promotion
PRODUCT- As a process, marketing starts with

creating a product for customers.
 What are their preferences in terms of

taste, color, texture, design, size, etc.?
 Are these addressing the customer needs
and wants of the customers to be
satisfied?
Marketers identify a consumer need and then

provide the product or service to fill that need.
The marketer's job is to pinpoint and understand
existing needs, expand upon them, and identify
THE MARKETING PROCESS new ones.
• Marketing is a process. PRICE- The amount the consumer must exchange

to receive the offering
• creating, pricing, distributing, and
The marketer researches the market and
communicating goods, services
competition and plots possible price points,
• ideas to facilitate satisfying exchange looking for gaps that indicate opportunities.
relationships with customers and to
 What is the price affordable to the
develop
customer?
• maintain favorable relationships, with  Do they have the capacity to pay?
stakeholders in a dynamic environment.  How much are they willing to pay?
 Will they benefit some cost-savings
Consists of Four (4) Steps because they did not have to pay more
compared to other brands in the market?
• Analyzing Market Opportunities
• Developing Marketing Strategies
• Planning Marketing Programs
(4P’s)

PLACE- It includes company activities that make • A unique strategy must be established to
the product available to target consumers; market to the intended target audience.
channel, distribution, or intermediary. Figure out
what the optimum distribution channels would be Creating Consumer Value
 What is the convenient place for them to • Finding a way to create a product that
go and get your offer? offers consumers value for their money
• In this step, the four “P’s" of marketing
PROMOTION- It includes all of the activities come into play
marketers undertake to inform consumers about Maintaining Consumer Satisfaction
their products and to encourage potential
customers to buy these products. • Keeping up consumer satisfaction is
essential to the marketing process
Promotion encompasses the various ways
marketers get the word out about a product-- Creating Profits for the Company
most notably through sales promotions, • Culmination of all of the previous steps
advertising, and public relations. • If consumers believe they are receiving
Sales promotions are special offers designed to value, they will typically remain loyal to
entice people to purchase a product. your brand, which is extremely valuable
in the long run.
 “What should we tell our customers to
attract their attention and convince them MARKETING GOALS- These goals guide and steer
enough that this product is for them? them in moving forward to its desired destination.
GOALS VS. OBJECTIVES
Targeting Consumer Wants

• Understanding what people want is
essential to beginning a successful
marketing campaign.
• Sales methods, franchising, and

partnerships are all aspects of the
product launch that must be examined
before production can take place.
Establishing a Consumer-Driven Sales Strategy

Traditional Marketing Approaches

• Broad category that incorporates many
forms of advertising and marketing.
• It is the most recognizable type of

marketing, encompassing the
advertisements that we see and hear
every day.
Most traditional marketing strategies fall under

one of the four categories:
• Print Marketing
• Broadcast Marketing
• Direct Mail Marketing
• Telemarketing
PRINT MARKETING
CONTEMPORARY MARKETING
Oldest form of traditional marketing. Loosely
defined as advertising in paper form. It refers to theories that stress the importance of
customer orientation versus the traditional
Example: Advertisements in newspapers,
market orientation.
newsletters, magazines, brochures, and other
printed material for distribution They are strategies that, when implemented, offer
greater support for their client base with a
BROADCAST MARKETING
product range that varies depending on what the
Started with radio broadcast and followed by target market desires.
television broadcast in the 1900’s.
CONTEMPORARY MARKETING APPROACHES
Example: Radio and television commercials.
1. Digital Marketing
DIRECT MAIL MARKETING 2. Social Media Marketing
3. E-Marketing or Online Marketing
These are printed and materials which are sent 4. Outdoor Promotion
through postal mail to attract customers. 5. Mobile Promotion
Example: Includes flyers, postcards, letters, and 6. Telemarketing
other files printed and mailed directly to 7. Events Marketing
customers. 8. Sachet Marketing
TELEMARKETING Digital Marketing- Since we are in the modern

digital age, we replace analog devices to its digital
Is the practice of delivering sales messages over
counterparts, which are better, faster, and
the phone to convince customers to buy a product
or service. cheaper.
Example: Includes requested calling and cold Social Media Marketing- The use of social media
calling of consumers over the phone. as means of communicating or advertising to the
customers worldwide.
E-Marketing or Online Marketing- The putting up

of online stores aside from the physical stores
(also called brick and mortal store), to capture all
the opportunities and not take lightly the impact
of online marketing.

Outdoor Promotion- As observed, the traditional
billboard as a form of outdoor advertisement is
MEETING CUSTOMER EXPECTATION
gradually being replaced with a Digital Billboard,
which is called video wall. The technology uses Customer Expectations in companies revolve
LED video screen, big and bright enough to be around the following main aspects:
easily seen by the general public when it is
mounted outdoor. It is normally placed in a 1. Reliability
strategic location where many people can see it. 2. Tangibles
3. Responsiveness
Mobile Promotion 4. Assurance
While the digital billboard is stationary, marketers 5. Empathy
also utilized mobile promotion through taxicabs.
They place their ads on the video screen mounted Reliability - the ability to provide the expected
inside the taxi or through a small billboard benefits and results consistently
mounted atop a taxi. The passengers will be
exposed to ads and sponsored videos. Tangibles – the quality of physical facilities,
personnel and communication services
Telemarketing Responsiveness – the willingness to provide
Marketers are outsourcing their task to call prompt service and assistance
centers agent who would contact, remind, or
simply inform customers on behalf of the Assurance – the ability to convey trust and
company. Sometimes, they irritate customers confidence through expert knowledge and
because of that way they deliver their messages courteous service
to the customers.
Empathy – the care and attention given to each
Events Marketing customer
Marketers also resort to live entertainment
Some of the most common and basic
through celebrities to induce traffic (normally at
expectations customers have for most businesses
the malls) and endorse products or services.
include:
Sachet Marketing
• Fast, efficient and accurate service
Because of the sheer number of customers who • High quality products at a competitive
are cost conscious and cannot afford the product price
in bigger container, marketers adopted sachet • Friendly, helpful service staff to provide
marketing. information and answer questions
Marketing SESSION 5 • Prompt responses to their inquiries,
whether online, by phone or in person
CUSTOMER EXPECTATION- Refers to the total • Sufficient stock to meet their needs
perceived benefits a customer expects from a without long waits
company's product or service.
• A trained staff that can handle their
CUSTOMER EXPECTATION questions without referring them
on
Customer expectations set the bar for customer
• A clean facility or easy to navigate
satisfaction which also affects repurchase
website
decisions and CUSTOMER LOYALTY.

customers develop long term satisfaction
with the product or service which results
Some of the benefits of meeting your customers' in customer’s product, company, or
expectations include: service loyalty. Customer expectations
• Customers that transform from first-time Customer Relationship Management
visitors to loyal clients
Customer relationship management focuses on
• Increased sales as customers feel more using information about customers to create
comfortable doing business with you marketing strategies which develop and sustain
desirable customer relationships.
• More referrals from satisfied customers
who bring in additional business by word Why is CRM important?
of mouth • Competition
• Consumer Expectation
Customer value and satisfaction are key building
• Technology
blocks for developing and managing customer
• Diminishing impact of Advertising
relationship. The key to building lasting customer
relationships is to create superior customer value
and satisfaction. CUSTOMER RELATIONSHIPS
Every customer should be valued and every
Here are 12 things that customers want: customer complaint should be addressed properly
and effectively. The employees, as well, should be
1. Friendliness
valued because whatever can make them happy
2. Empathy
would re-down also to their happy customer’s
3. Fairness treatment.
4. Control
5. Alternatives RELATIONSHIP MARKETING- Establishing long-
6. Information term, mutually satisfying buyer- seller
7. Satisfaction relationships.
8. Fair price for a quality product Happy Employees make Happy Customers
9. To be respected
10. To be heard “Always treat your employees exactly as you want
them to treat your best customers.”
11. Someone to understand my needs
12. Some I can trust Types of difficult customers:
PERCEIVED VALUE- Refers to customer’s
Difficult customers come in several varieties,
assessment of the benefits gained from buying
including:
and using a product compared to its cost as well
as the competing offers in the market. 1. Angry
DEVELOPING CUSTOMER VALUE 2. Impatient
3. Intimidating
 To create value for customers to 4. Talkative
appreciate the product or service being 5. Demanding
offered. 6. Indecisive
 If they appreciate the value, they are

Handling Customer Complaint- Before you offer
more or less delighted. Delighted
solutions, ask the customer how he would like the

problem to be resolved. Offer choices whenever A strategy that determines the means for utilizing
possible resources in the various functional areas to reach
the organization’s goals.
Remain calm and adjust your mindset.- No one
likes to get confronted by a yelling, heated person
in a public space. However, your job in this
Marketing strategy
situation is to stay cool and collected. While you
may have the urge to yell right back at them, fight A plan of action or identifying and analyzing a
the urge! Yelling and getting angry will only target market and developing a marketing mix to
escalate the situation. Instead, put on your best meet the needs of that market.
customer service attitude and buckle down--it’s
time to get to work. STRATEGIC MARKETING MANAGEMENT
Handling Customer Complaint The process of planning, implementing, and

evaluating the performance of marketing activities
1. Never use sarcasm or obviously faked and strategies, both effectively and efficiently.
politeness.
STRATEGIC MARKETING MANAGEMENT
2. Separate your feelings from the situation.
3. Get Control of yourself Effectiveness – is the degree to which long-term
4. Listen and let the customer vent customer relationships help achieve an
5. Show the customer you care organization’s objectives.
6. Don’t blame the customer or the company
Efficiency – refers to minimizing the resources of
7. Try to solve the problem, or get someone
an organization uses to achieve a specific level of
who can desired customer relationships.
8. Finally, don't make promises you can't
keep Thus, the overall goal of strategic marketing
management is to facilitate highly desirable
customer relationships and to minimize the cost
STRATEGIC PLANNING of doing so.
The process of establishing an organizational Strategic planning is important to an
mission and formulating goals, corporate strategy, organization because it provides a sense of
marketing objectives, and marketing strategies. direction and outlines measurable goals. Strategic
Simply, it is a process by which the company planning is a tool that is useful for guiding day-to-
defines the general direction it would take and
translate this into broadly defined goals. It begins
with defining the mission of the company, the
setting objectives and goals, and finally designing
its business portfolio.
Mission statement
A long-term view, or vision, of what the

organization wants to become.
Corporate Strategy

day decisions and for evaluating progress and  Percentage of a market that
changing approaches when moving forward. actually buys a specific product
from a particular company
MISSION STATEMENT AND GOALS
It is a long- term view, or vision, of what the Assessing Organizational Resources and
organization wants to become. Opportunities
DEFINING MISSION OBJECTIVES • Core Competencies
A mission is different from a vision in that the  Company does extremely well,
former is the cause and the latter is the effect; a which sometimes give it an
mission is something to be accomplished whereas advantage over its competition.
a vision is something to be pursued for that
accomplishment. Also called company mission, • Competitive Advantage
corporate mission, or corporate purpose.
 Result of a company matching a
Developing Corporate and Business-Unit core competency to
Strategies opportunities it has discovered in
Corporate Strategy the marketplace
 Determines the means for utilizing  Market Opportunity

resources in the functional areas of
- A combination of circumstances and
marketing, production, finance, research
timing that permits an organization to take
and development, and human resources
action to reach a particular target market.
to achieve the organization’s goals.
Marketing Objectives
• Business-Unit Strategies
• A statement of what is to be
 Strategies for individual business accomplished through marketing
units. activities
• Marketing Strategy • S.M.A.R.T
 Utilizes the marketing mix to Marketing Strategy

develop a message that is
• A plan of action for identifying
consistent with the business-unit
and analyzing target market and
and corporate strategies
developing a marketing mix to
• Market meet the needs of that market
 Group of individuals that have DEFINING MISSION OBJECTIVES- A written

needs for the products in a declaration of an organization's core purpose and
product class and have the focus that normally remains unchanged over time.
ability, willingness, and authority Properly crafted mission statements (1) serve as
to purchase those products. filters to separate what is important from what is
not, (2) clearly state which markets will be served
• Market Share and how, and (3) communicate a sense of
intended direction to the entire organization.

TACTICAL MARKETING • To communicate information gathered
from studies or surveys
The term “tactical marketing” refers to the
actions that the company takes in order to market Strengths include internal capabilities, resources,
a product. positive situational factors that may help the
company serve its customers and achieve its
To put it simple, a strategic plan is for reaching a
objectives. It refers to the competitive
specific goal, while a tactical plan is the means
advantages, or core competencies that give the
that you use in order for you to reach your specific
company an advantage.
goal.
Weaknesses include internal limitations and
SWOT ANALYSIS
negative situational factors that may interfere
SWOT stands for: Strength, Weakness, with the company’s performance.
Opportunity, Threat. A SWOT analysis guides
Refers to the limitations a company faces in
you to identify your organization’s strengths and
developing or implementing a marketing strategy.
weaknesses (S-W), as well as broader
opportunities and threats (O-T). SWOT's primary OPPORTUNITIES are favorable factors or trends in
objective is to help organizations develop a full the external environment that the company may
awareness of all the factors, positive and negative, be able to exploit to its advantage.
that may affect strategic planning and decision
Refer to favorable conditions in the environment
making.
that could produce rewards for the organization if
When Do We Use SWOT? acted upon.
SWOT ANALYSIS Threats are unfavorable external factors or trends

that may present challenges to performance.
The SWOT analysis is an excellent tool for
organizing information, presenting solutions, Refers to the barriers that could prevent the
identifying roadblocks and emphasizing company from reaching its objectives.
opportunities. The main purpose of SWOT
analysis is to add value to our products and
services so that we can recruit new customers,
retain loyal customers, and extend products and
services to customer segments over the long-
term.
SWOT can be used to:
• When you would want to explore

avenues of new plans
• Explore possibilities of introducing new

products or entering new markets
• Identifying possible areas of change
• Make decisions about the direction of BENEFITS WITH SWOT ANALYSIS

your plans
The benefit of a SWOT analysis is for the marketer
• To adjust plans when new opportunities to closely examine the strong and the weak points
open
that have not been previously considered. Once

identified and enumerated, the company may well MICRO-ENVIRONMENTAL FACTORS THAT AFFECT
be able to: THE BUSINESS
• Build on Strength C4SIM

• Correct a Weakness
1. Company itself
• Take advantage of an Opportunity
2. Its current employees
• Avoid a Threat
3. The Suppliers and marketing
intermediaries
4. Competitors
5. Customers
THE MARKETING ENVIRONMENT 6. Investors
7. The Media and General public
The Company
The marketing decision about the company’s

marketing mix to its target customers requires
resources in the company like cash, materials and
skilled people among others.
CUSTOMERS
Customers have the most direct microeconomic

impact on a business. Without them we have no
business.
Employees
The workers produce, sell goods or service that

drive a business. The availability of qualified and
Environmental Scanning- The process of motivated employees for a business is vital to
collecting information about forces in the economic success.
marketing environment.
Suppliers and Distribution Channel
Environmental Analysis- The process of assessing
Suppliers are those companies that supply your
and interpreting the information gathered
business with goods and services to which you
through environmental scanning.
add value through transformation. On the other
How do marketers respond to environmental hand, distributors are the intermediaries between
forces? the manufacturer and the consumer.
Marketing managers take two general Marketing intermediaries

approaches:
Marketing intermediaries help the company
1. Accepting them as uncontrollable or promote, sell and distribute its products to the
attempting to influence and shape them. final buyers. These marketing intermediaries form
an important component of the company’s overall
2. Marketing managers who believe delivery of value to its customers.
environmental forces can be shaped
Competitors
adopt a more proactive approach.
10 | P a g e PRINCIPLES OF MARKETING REVIEWER 2018

The level of competition also impacts your 5. Socio-cultural Forces
economic livelihood. Competitors influence your 6. Technological Forces
actions.
DEMOGRAPHIC FORCES
Investors
Demographic forces relate to people. The name
Shareholders and investors may help fund your
refers to the term Demography. The latter refers
company at start-up or as you look to grow.
to the study of human populations. This includes
Stakeholders are those members of the
size, density, age, gender, occupation and other
microenvironment that have a direct influence on
statistics. Why are people important? Because, on
your business although they are not generally
the whole, their needs is the reason for
paying customers.
businesses to exist.
The Media and General Public

ECONOMIC FORCES
Your local community and media also affect your
The Economic forces relate to factors that affect
ongoing business image. Communities often
consumer purchasing power and spending
support companies that provide jobs, pay taxes
patterns. For instance, a company should never
and operate with social and environmental
start exporting to a country before having
responsibility. If you don't do these things, you
examined how much people will be able to spend.
may run into negative public backlash. Local
media often help your story proliferate, for better ECONOMIC FORCES
or worse.
Prosperity
Porter’s 5 Forces: Recession
Depression
Supplier Power: Here you assess how easy it is for
Recovery
suppliers to drive up prices.
Buyer Power: Here you ask yourself how easy it is

POLITICAL FORCES
for buyers to drive prices down.
Every business is limited by the political
Competitive Rivalry: What is important here is the
environment. This involves laws, government
number and capability of your competitors.
agencies and pressure groups. These influence
Threat of Substitution: This is affected by the and restrict organizations and individuals in a
ability of your customers to find a different way of society. Therefore, marketing decisions are
doing what you do. strongly influenced and affected by developments
in the political environment.
Threat of New Entry: Power is also affected by the
ability of people to enter your market. ECOLOGICAL FORCES (NATURAL FORCES)
MACRO-ENVIRONMENT Ecological, or natural forces in the Macro

Environment are important since they are about
D.E.P.E.S.T
the natural resources which are needed as inputs
1. Demographic Forces by marketers or which are affected by their
2. Economic Forces marketing activities. Also, environmental concerns
3. Political Forces have grown strongly in recent years, which makes
4. Ecological Forces the ecological force a crucial factor to consider.

SOCIO-CULTURAL FORCES Firms that provide very different products that
solve the same problem or satisfy the same basic
The Socio-Cultural forces link to factors that affect
customer need.
society’s basic values, preferences and behavior.
The basis for these factors is formed by the fact Total Budget Competitors
that people are part of a society and cultural
Firms that compete for the limited financial
group that shape their beliefs and values. Many
resource of the same customers.
cultural blunders occur due to the failure of
businesses in understanding foreign cultures.
TECHNOLOGICAL FORCES COMPETITIVE STRUCTURE

Technological forces form a crucial influence in
the Macro Environment. They relate to factors
that create new technologies and thereby create
new product and market opportunities.
A technological force everybody can think of

nowadays is the development of wireless
communication techniques, smartphones, tablets
and so further.
COMPETITION
Other organizations that market products that are

similar to or can be substituted for a marketer’s
products in the same demographic area.
MARKETING RESEARCH
Brand Competitors
MARKET STUDY- Market study is a study focused
Firms that market products with similar features on the target market and the determination and
and benefits to the same customers at similar estimation of their demand relative to a particular
prices company offering.
Brand Competition Steps in doing a Market Study
Diet Coke and Diet Pepsi compete head-to-head in STEP 1: Define the problem and objectives of the
the soft-drink market. study.
Product Competitors STEP 2: Conduct a study on existing literature and

studies (gather secondary data). You can use the
Firms that compete in same product class but
internet to go after the related topics or you can
market products with different features, benefits,
go directly to the government or business agency
and prices.
that has the data. Try to look for the following
Generic Competitors data:
a) General market situation (socio-demographic)

b) Specific competitive situation Opening questions should be easy to answer and
not in any way threatening to THE respondents.
c) Specific marketing environmental factors
The first question is crucial because it is the
(trends, technology, etc.) that impact on market
respondent's first exposure to the interview and
demand.
sets the tone for the nature of the task to be
d) Specific supply situation. performed. If they find the first question difficult
to understand, or beyond their knowledge and
STEP 3: Prepare a letter of request to conduct a experience, or embarrassing in some way, they
market study addressed to your respondent or are likely to break off immediately. If, on the other
a company. hand, they find the opening question easy and
STEP 4: Conduct a survey (gather primary data) pleasant to answer, they are encouraged to
on: continue.
a) Buyer’s intentions and preferences Question flow
b) Their demographic and geographic Questions should flow in some kind of

data psychological order, so that one leads easily and
naturally to the next. Questions on one subject, or
STEP 5: Tabulate, analyze, and interpret the data. one particular aspect of a subject, should be
grouped together. Respondents may feel it
STEP 6: Prepare a Market Study Report using the
disconcerting to keep shifting from one topic to
suggested format
another, or to be asked to return to some subject
MARKET STUDY FORMAT: they thought they gave their opinions about
earlier.
I. Title Page
II. Table of Contents MARKETING RESEARCH
II. Executive Summary (not to exceed 2 pages)
Marketing research is a systematic, scientific,
III. Brief Introduction about the market, the
objective and organized process done to gather
company and its product/s.
information about existing and potential
IV. Market study objectives
customers in a certain market or population.
V. Socio-demographic data
VI. Competitive situation RESEARCH
VI. Supply and demand situation
VII. Supply and demand analysis and • It is defined as a systematic process of
measurement collecting and analyzing data to find an
VIII. Company’s core competency (strength) to answer to a question or solution to a
meet demand (opportunity) problem, to validate or test an existing
IX. Marketing Mix Conceptualization (product, theory.
price, place or distribution, and promotion)
X. Recommendations BUSINESS RESEARCH
XI. References • Business research is a kind of research
XI. Appendices (Survey Questionnaire, other intended to solve business problems or
supporting documents)
validate or test existing business theories.
Business research deals more with
PUTTING QUESTIONS INTO A MEANINGFUL business-related problems.
ORDER AND FORMAT
MARKETING RESEARCH
Opening questions

• Being one of the functions of 3. Case Analysis
business, conducts research
focused solely on its customers,
Exploratory Research
its competitors, its marketing
activities, and its marketing Exploratory research is conducted if the
environment. researcher would like to gather more information
about the problem or issue being investigated or
IMPORTANCE OF MARKETING RESEARCH IN reduce the available research options into a
BUSINESS ENTERPRISE manageable size.
Market research is when you have narrowed Ethnographic or Observational Research
down a specific "target" and you are delving into
the behavior of that target. In other words, it's Ethnographic or Observational Research is done
research into a very narrow group of consumers. by observing consumer behavior through various
means. One is by simple observation, where the
The importance of market research is explained observer watches the consumers and records
by three key opportunities that your business their behavior using cameras, audio recorders,
gains: and computers. The customer should be informed
that he or she is being observed and must consent
First, you get sales increased, then you reach
to being monitored.
better customer management, and finally you
lead your company to continuous business growth Case Analysis
and development.
Case Analysis involves the study of a particular
Second, Taking into account these opportunities, company, group, or person through personal
you should research markets because market interviews or published literature. The case
researching paves the way for better inventory analysis is not intended as an accurate solution to
management, business planning, time the problems or concerns mentioned in the case.
management, employee management, etc. Instead, the case is expected as the venue for
analysis and discussions whether correct or
Third, Obviously the marketing department of
incorrect. Since it is focused on a particular
your organization can optimize its marketing
company or person, it cannot be generalized.
campaigns through planning and conducting
market research activities. QUANTITATIVE MARKETING RESEARCH
Classifications of Marketing Research This involves the collection of information
statistical data and precise measurements
QUALITATIVE MARKETING RESEARCH
through surveys. The data gathered is subjected
This involves exploring and understanding the to mathematical analysis and statistical treatment.
problem or issue at hand, reducing the number of Results or findings in a quantitative market
options so that only the relevant ones are carried research can be generalized across groups of
for further research, understanding consumer people or used to explain a particular
behavior through observation and interpretation, phenomenon.
or simply studying a company and its operations.
MAJOR TYPES OF
MAJOR TYPES OF QUALITATIVE MARKETING QUANTITATIVE MARKETING RESEARCH
RESEARCH:
1. Descriptive Research
1. Exploratory Research 2. Correlational or Explanatory Research
2. Ethnographic or Observational Research 3. Causal Research

Once the research problem is identified, the
Descriptive Research corresponding research objectives must be set.
Answers the questions who, what, when, why, Step 2: Developing the research plan for
and how given in the problem statement. This collecting information
kind of research is widely used because it is easy
After the problem and objectives are set, the
to implement and findings are easy to interpret.
researcher must present to the DM the plan on
The interpretation involves frequency count,
how the research is designed, how the data is
percentage, or ratio.
collected, analyzed, and interpreted, and what are
Correlational and Explanatory Research scope and limitations based on the design.
This measure the relationship of variables to Step 3: Implementing the research plan-
determine their interdependence. Interpretation collecting and analyzing the data
is done through correlational, explanatory, or Once the plan is agreed, the researcher starts to
predictive methods. Statistical analysis tools and gather data.
techniques such as factor analysis and multiple • Primary Data
regression analysis are commonly preferred tools. • Secondary Data
Step 4: Interpreting and Reporting the Findings
Causal Research
Once the data is analyzed using the appropriate
This is the most complicated kind of quantitative
statistical software, the findings can be
research. It looks into the cause and effect
interpreted and reported based on what is the
relationships of its variables and how one variable
intended solution to the problem.
would affect another variable.
MARKETING PLAN
Marketing plans are detailed strategies of how to

go about successfully marketing a product or
products and earning a projected amount of
return from the effort.
MARKETING PLAN
Here's why a marketing plan is essential to your

home business' success:
 Gives clarity to who your market is. It's

easier to find clients and customers if you
know who they are.
 Helps you craft marketing messages that

will generate results. Marketing is about
STEPS IN MARKETING RESEARCH knowing what your product or service can
do to help a target market. Your
Step 1: Defining the problem and research
objective messages need to speak directly your
market.
Identify the problem and the research objective in
marketing research often requires consultation  Provides focus and direction. Email, social
with the decision makers (DM) in the company. media, advertising, guest blogging, direct

mail, publicity, and on and on. With so
many marketing choices, you need a plan
for determining the best course of action
for your business.
FEASIBILITY STUDY
 A Project Feasibility Study (PFS) is the

systematic investigation which ascertains
whether a business undertaking is viable
and if so, the degree of its profitability.
STAGE 1 – Problem Recognition

CONSUMER MARKET AND BUSINESS
MARKETS  The recognition of the particular
problem or need and here the buyer
CONSUMER MARKET has a need to satisfy or a problem that
needs solving, and this is the beginning
-They purchase products for personal
of the buyer decision process.
use and not for business purposes.
STAGE 2 – Information Search
 CONSUMER
 The stage where we begin to search for
 Anyone involved in the process
information about the product or
of consuming, eating, using or
service.
buying for personal use.
 Two aspects:
 HOUSEHOLD CUSTOMERS
 Internal Search
 As purchases are made by these
consumers that will not only  External Search
benefit them individually, but
even their household, they are STAGE 3 – Evaluation of Alternatives
conveniently  Sees the evaluation of the available
CONSUMER’S BUYING DECISION PROCESS alternatives whereby the buyer decides
upon a set of criteria by which to assess
each alternative.
STAGE 4 – Purchase
 Individuals or teams of buyers make the

final choice of what to buy and from
whom to buy it.

STAGE 5 – Post-Purchase Evaluation  Extended Decision Making – a
consumer decision-making process
 The buyers evaluate the product to
employed when purchasing unfamiliar,
ascertain if its actual performance
expensive, or infrequently bought
meets the expected levels.
products
 Cognitive Dissonance
MAJOR INFLUENCES IN THE CONSUMER’S
 A buyer’s doubts shortly after a BUYING DECISION
purchase about whether the
Consumer Decision Making pertains to the
decision was the right one.
following decisions:
LEVEL OF INVOLVEMENT
a. What to buy: Products and Services
-An individual’s degree of interest in a (and the Brands?)
product and the importance of the product for
b. How much to buy: Quantity
that person.
c. Where to buy: Place
There are four (4) Levels of Involvement:
d. When to buy: Time
1. High-Involvement products tend to be
those that are visible to others and are e. How to buy: Payment terms.
more expensive.
All purchase decisions are not similar.
2. Low-Involvement products are much
The effort put into each decision making is
less expensive and have less associated
different.
social risk.
3. Enduring involvement are person’s

interest in a product or product SITUATIONAL INFLUENCES
category that is ongoing and long term.
-Influences that result from
4. Situational Involvement is temporary circumstances, time, and location that affect
and dynamic, and results from a the consumer buying decision process
particular circumstances.
 THE PHYSICAL ENVIRONMENT
TYPES OF CONSUMER DECISION-MAKING • People’s moods and behaviors
are strongly influenced by their
 Routinized Response Behavior – a
physical surroundings. The
consumer decision-making process
messages they receive at the
used when buying frequently
time and their feelings about
purchased, low-cost items that require
being in the store influence
very little search-and-decision effort.
their decisions.
 Limited Decision Making – a consumer  SOCIAL SITUATION
decision-making process used when • The social situation you’re in
purchasing products occasionally or can significantly affect your
needing information about an purchase behavior.
unfamiliar product category.  TIME

•
The time of day, time of year, • An internal energizing force
and how much time consumers that directs a person’s activities
feel like they have to shop toward satisfying needs or
affect what they buy. achieving goals.
 PURCHASE REASON o Patronage motives –
• The reason you are shopping motives that influence
also affects the amount of time where a person purchases
you will spend shopping. products on a regular basis
 BUYER’S MOOD AND CONDITIONS  LEARNING
• People’s moods temporarily • Learning is a relatively
affect their spending patterns. permanent change in behavior
Some people enjoy shopping. caused by acquired information
It’s entertaining for them. At or experience.
the extreme are compulsive  ATTITUDE
spenders who get a temporary • An attitude is a learned
“high” from spending. predisposition to respond
favorably or unfavorably to
PSYCHOLOGICAL INFLUENCES
stimuli based on relatively
-Partly determine people’s general enduring evaluations of people,
behavior and thus influence their behavior as objects, and issues.
consumers. • Three major components:
o Cognitive – person’s
 PERCEPTION
knowledge and
The process of selecting, organizing and
information about the
interpreting information inputs to object or idea
produce meaning. o Affective – comprises
the individual’s feelings
Information inputs are
and emotions
sensations received through sight,
o Behavioral – Involve
taste, hearing, smell and touch.
psychological elements
• Selective Exposure- the process  PERSONALITY AND SELF-CONCEPT
by which some inputs are • Personality describes a person’s
selected to reach awareness disposition, helps show why
and others are not people are different, and
encompasses a person’s unique
Two other Conditions:
traits.
•
Selective distortion is changing • Marketers have had better luck
or twisting received information linking people’s self-concepts to
• Selective Retention person their buying behavior. Your self-
remembers information inputs concept is how you see yourself
that support personal feelings —be it positive or negative.
and beliefs and forgets inputs  Lifestyles
that do not.
 MOTIVES

• An individual’s pattern of living occupation, income, and
expressed through activities, residence location
interests, and opinions  CULTURES AND SUBCULTURES
• Culture is the learned values,
SOCIAL INFLUENCES
beliefs, customs, and tastes
-The forces other people exert on one’s that are valued and handed
buying behavior down from one generation to
the next in a society.
 ROLE • Subculture is a group within a
• Roles are actions and activities society whose members share
that a person in a particular value systems based on a
position is supposed to perform distinctive set of beliefs,
based on expectations of the characteristics, or common
individual and surrounding experiences. Subcultures
persons. include nationalities, religions,
 FAMILY INFLUENCES racial groups, and geographic
• The consumer decision regions.
processes related to the
purchase of numerous products BUSINESS MARKETS
are influence by both parents
-A business market (also called a
and children. Children learn
business-to-business market or B2B market)
about buying many products
consists of individuals, organizations, or groups
from their families, which they
that purchase a specific kind of product for one
apply when making similar
of three (3) purposes: Resell, direct use in
decisions when they are adult.
producing other products, or use in general
daily operations.
 REFERENCE GROUPS The four different types of business markets

• Individuals or groups whose are:
value structures and standards
1. PRODUCER MARKETS
influence a person’s behavior.
 OPINION LEADERS  Individuals and business
• An opinion leader is a member organizations that purchase
of an informal group who products to make profits by
provides information about a using them to produce other
specific topic, such as products or using them in their
smartphones, to other group operations.
members seeking information.
 SOCIAL CLASSES 2. RESELLER MARKETS
• Social class is the overall status,  Intermediaries that buy finished
rank, or social standing of goods and resell them for a
groups of people within a profit
society according to the value
assigned to such factors as 3. GOVERNEMENT MARKETS
family background, education,

 Federal, state, county or local  Relationship driven
governments that buy goods
 Maximize the value of the relationship
and services to support their
internal operations and provide  Small, focused target market
products to their constituents
 Multi-step buying process, longer sales
4. INSTITUTIONAL MARKETS cycle
 Organizations with charitable,  Brand identity created on personal
educational, community or relationship
other nonbusiness goals
 Educational and awareness building
Business-to-Consumer Markets activities
VS
Business-to-Business Markets  Rational buying decision based on
business value
MARKETING SEGMENTATION,
TARGETING AND POSITIONING
MARKET SEGMENTATION
-An entrepreneurial marketing strategy

designed primarily to divide the market into
small segments with distinct needs,
characteristics or behavior . (Kotler &
Armstrong, 2014)
Variables can be used for segmentation:

Businesses that Sell to Consumers
1. Geographic segmentation – segmented
 Product driven based on provinces, regions, cities,
 Maximize the value of the transaction principles municipalities.
Considerations: climate, dominant
 Large target market ethnic group, culture, density (rural or
 Single step buying process, shorter sales urban) or classification of the
cycle geographical units (1st class, 2nd class)
 Brand identity created through 2. Demographic segmentation – based on

repetition and imagery demographics. Considerations: gender,
age, income, occupation, education,
 Merchandising and point of purchase religion, family size. This is the most
activities widely used and easiest method for
segmentation.
 Emotional buying decision based on
status, desire, or price 3. Psychological segmentation –
segmented based on what the
Businesses that Sell to Businesses

customers believe or think.
Considerations: Needs and wants,
attitude, social class, personality traits,
knowledge and awareness, brand
concept, lifestyle.
4. Behavioral segmentation –
Considerations: perceptions,
knowledge, reactions, benefits, loyalty,
responses.
Forms of Market Segmentation:
1. Mass marketing
 Marketing of a product to the

Step 1 – Identify The Appropriate Targeting
entire market with no
Strategy
differentiation at all.
The strategy used to select a target
2. Segment marketing
market is affected by target market
 Designing different products characteristics, products attributes, and the
and services to meet the needs organization’s objectives and resources
of different target groups.
3. Niche marketing
 When a company focuses its

efforts on a limited segment in
the market.
4. Individualized marketing
 Involves customizing offers and,

in some cases, products that fit
individual needs.
MARKET TARGETING
-Refers to a concept in marketing which Step 2 –Determine Which Segmentation

helps the marketers to divide the market into Variables to Use
small units comprising of likeminded people Segmentation variables are the
characteristics of individuals, groups, or
organizations used to divide a market into

segments  Certain products, particularly
raw materials like steel,
petroleum, plastics, and
lumber, can be used in
numerous ways in the
production of goods.
Step 3 – Develop Market Segment Profiles
A market segment profile describes the

similarities among potential customers within a
segment and explains the differences among
people and organizations un different
segments.
Step 4 – Evaluate Relevant Market Segments
After analyzing the market profiles, a

Segmentation Variables for Business
marketer should be able to narrow his or her
Markets
focus to several promising segments that
1. Geographic Location warrant further analysis.
 Demand for some consumer Marketers should examine the

products can vary considerably following:
among geographic areas
A. Sales Estimates
because of differences in
climate, terrain, or regional  Market Potential
customer preferences.
 The total amount of a
2. Type of Organization product that customers
will purchase within a
 Company segments a market by
specified period at a
types of organizations within
specific level of
that market because they often
industry-wide
require different product
marketing activity.
features, distribution systems,
price structures, and selling  Company Sales Potential
strategies
 The maximum
3. Customer Size percentage of market
potential that an
 An organization’s size may
individual firm within
affect its purchasing procedures
an industry can expect
and the types and quantities of
to obtain for a specific
products it wants.
product.
4. Product Use
B. Competitive Assessment

 Identifying your competitors and 6. Positioning strategy based on Cultural
evaluating their strategies to determine Symbols
their strengths and weaknesses relative
7. Positioning strategy based on
to those of your own product or
Competitors
service . A competitive analysis is a
critical part of your company marketing Steps To Product Positioning
plan.
1. Know your target audience well
C. Cost Estimates
2. Know what your customers expect out
 Marketers also must consider whether of you.
the organization can reach a segment at
costs equal to or below competitors’ 3. Identify the product features
costs. If the firms costs are likely to be 4. Unique selling Propositions
higher, it will be unable to compete in
that segment in the long run. 5. Know your competitors
MARKET POSITIONING 6. Ways to promote brands
-The process of creating an image of a 7. Maintain the position of the brand

product in the minds of the consumers is called MARKETING POSITIONING STRATEGY
as positioning.
 A positioning strategy is a deliberate
Positioning helps to create first branding plan or process that operates
impression of brands in the minds of target on the symbolic levels of consumer
audience. consciousness, where meanings and
In simpler words positioning helps in associations – even of individual words
creating a perception of a product or service – really hold weight.
amongst the consumers. MARKET SEGMENTATION, TARGETING AND
Seven (7) approaches to positioning POSITIONING PROCESS
strategies:
1. Using Product characteristics or

Customer Benefits as a positioning
strategy
2. Pricing as a positioning strategy
3. Positioning strategy based on Use or

Application
4. Positioning strategy based on Product

Process
5. Positioning strategy based on Product

Class

SUMMARY has been taken on what your
core product is going to be
3. Augmented Product
• by-products of the core and

actual products
4. Extended Product/Modified Product
• When more feature/s are

added to the actual product to
attract more users.
THE MARKETING MIX: PRODUCT • A modified product refers to

the modification done to the
THE MARKETING MIX: PRODUCT existing product in order to
capture the demand or needs
-This is either a service or a good that
of the market
has been manufactured to meet specific
customer needs or demands. 5. Potential Product
-A “product” is a good, or a service, • These are products that may

received in an exchange. undergo obsolescence or
product demise (product
• GOOD or GOODS
decline)
• A good is a tangible physical
Different Product levels:
entity, such as an IPAD or a
EXAMPLES
Jollibee Burger.
• Level 1: Core Product
• SERVICE
• Level 2: Actual Product
• Service is an intangible result of
the application of human and • Level 3: Augmented
mechanical efforts to people or
Product
objects.
LEVELS OF PRODUCT AND SERVICES
Five (5) Different Product levels:
1. The Core Or Generic Product
• is also known as benefits and is

general intangible in nature.
2. Actual Product
• is the one which is

manufactured after a decision

4. UNSOUGHT PRODUCTS
PRODUCT: Two(2) General Categories • These are goods and services

that are not attractive enough
• Consumer Products
to get the attention of the
• If the end user of the product is consumers. These are also
the consumer, then the product avoided sometimes.
is a consumer product
• However, these products may
• Business Products be needed at some future time
when there is an emergency.
• If the end user is a business,
then it is categorized as a
business product.
CLASSIFICATION OF BUSINESS PRODUCTS

Classification of consumer products
INDUSTRIAL PRODUCT
1. CONVENIENCE PRODUCTS
1. RAW MATERIALS
• Goods and services that we
2. FINISHED PRODUCTS
normally buy and consume
frequently (sometimes daily) 3. EQUIPMENT
because of its necessity.
4. SUPPLIES
• Consumer product that takes
PRODUCT PACKAGING AND LABELLING
little thought, is routine,
purchased often, appeals to a Product packaging
large target market, and the
consumer purchases with little • Refers to the physical appearance of a
planning. product
2. SHOPPING PRODUCTS • Key part of the marketing plan for any

business that makes or sells products.
• A shopping product is a type of
product that requires consumer • A product’s package can be the selling
research and comparison of point for many consumers by delivering
brands a sense of quality while also reflecting
the product’s brand image.
3. SPECIALTY PRODUCTS
• Specialty products are goods

and services that are more
expensive and are distributed
exclusively by an authorized
distributor/dealer. Normally
these are products or services
with global brands.

Product LABELLING • ADDITIONS
• A label is a carrier of information about • Add a new feature to your

the product. product that makes it more
attractive to consumers to
• The attached label provides customers
enhance your marketing efforts.
with information to aid their purchase
decision or help improve the experience • CHANGES IN APPEARANCE
of using the product.
• Improving your product without
Product LABELLING INCLUDES: actually changing its contents
provides a new marketing
• Care and use of the product
opportunity.
• Recipes or suggestions
• NEW PRESENTATION
• Ingredients or nutritional information
• Present the product in a new
• Product guarantees way, so that group who may
not have noticed your product
• Manufacturer name and address before can become customers.
• Weight statements NEW PRODUCTS
• Sell by date and expiration dates Improving and updating products is an ongoing
• Warnings task as consumer "needs and wants"
continuously change.
Product LABELLING
Some of the key approaches to
product labeling that need to be considered
are:
• A clear identification of what the

product is
• Some form of quantity measure
• Sometimes ingredients
• Health and safety warnings
• Usage date
• Brand ownership
NEW PRODUCT DEVELOPMENT
• Brand contact information
• Brand/firm identification numbers STAGE 1: IDEA GENERATION

• Country of origin • New product ideas have to come from
somewhere. But where do
organizations get their ideas for NPD?
EXISTING PRODUCT STRATEGIES

• Sources include: STAGE 6: Product development
• Market Research -At this stage the prototype is

produced.
• Employees
-The prototype will undergo a serious
• Consultants
test, and will be presented to a selection of
• Competitors people made up of the target market segment
to see if changes need to be made.
• Customers
STAGE 7: TEST MARKETING
• Distributors & Suppliers
-Testing the product within a specific
STAGE 2: IDEA SCREENING geographic area. The product will be launched
-This process involves shifting through within a particular region so the marketing mix
the ideas generated above and selecting ones strategy can be monitored and if needed
which are feasible and practical to develop. modified before national launch.
Pursing impractical ideas is expensive and a STAGE 8: Commercialization
waste of resources. -If test marketing is successful the
product is ready for national launch. The
STAGE 3 : Concept development & Testing following decisions regarding the launch need
to be made:
• The organization may have come across
what they believe to be a feasible idea, • Timing of the launch
however, the idea needs to be taken to • How the product will be
the target audience. launched
• Note the idea taken to the target • Will there be a national roll out
audience is not a working prototype at or will it be region by region?
this stage, it is just a concept.
PRODUCT LIFE CYCLE (PLC)
STAGE 4: Marketing Strategy & development -It describes the stages a product goes
through from when it was first thought of until
-A proposed marketing strategy will be it finally is removed from the market. Not all
written laying out the marketing mix strategy of products reach this final stage. Some continue
the product, the segmentation, targeting and to grow and others rise and fall.
positioning strategy and expected sales and
profits. STAGES OF PRODUCT LIFE CYCLE
STAGE 5: Business analysis
-The business analysis stage looks more

deeply into the Cash flow the product could
generate, what the cost will be, likely market
share and the expected life of the product.

• STAGE 1 – INTRODUCTION STAGE
• Most expensive for a company

launching a new product.
• STAGE 2 – GROWTH STAGE
• Typically characterized by a
strong growth in sales and
profits.
SERVICE:
• Businesses invest more money NATURE AND CHARACTERISTICS
in the promotional activity to
SERVICE INTANGIBILITY
maximize the potential of this
growth stage. -In service intangibility the services
cannot be seen, tasted, felt, heard or smelled
• STAGE 3 – MATURITY STAGE
before they are bought.
• The product is established and
SERVICE INSEPARABILITY
the aim for the manufacturer is
now to maintain the market • Services are produced and consumed at
share they have built up. the same time and cannot be separated
from its providers.
• STAGE 4 – DECLINE STAGE
• Service inseparability means that the
• The market for a product will
service cannot be separated from their
start to shrink
providers whether the provider are
• This shrinkage could be due to people or machines.
the market becoming saturated
SERVICE VARIABILITY
(i.e. all the customers who will
buy the product have already -This means that the quality of the
purchased it), or because the service is dependent on who provides the
consumers are switching to a service and includes when, where and how
different type of product. these services are provided
PRODUCT LIFE CYCLE EXAMPLES: SERVICE PERISHABILITY
• Here is the example of watching • This means that the service cannot be
recorded television and the various stored for later sale or use.
stages of each method:
• The perishability of a service is not a
• Introduction – 3D TVs problem if the demand for the service is
high and steady.
• Growth – Blue ray discs/DVR
•
• Maturity – DVD
• Decline – Video cassette

THE MARKETING MIX: PRICE o VALUE-ADDED PRICING
 Attaching
PRICE - is the value paid for a product in
value-added
marketing exchange
features and
MAJOR PRICING STRATEGIES services to
differentiate a
 PREMIUM PRICING
company’s
• Strategy of consistently pricing
offers and to
at the high end of the possible
support
price range to help attract
charging higher
status conscious consumers.
prices.
The high pricing of a premium
product is used to enhance and
 COST BASED PRICING
reinforce a product’s luxury
• Cost–based pricing is also known as
image.
Cost Plus.
o CONDITIONS:
• Involves setting prices based on the
o They believe the high
costs for producing, distributing and
price is an indicator of selling the product.
good quality • The only problem with cost-based
o They believe it to be a pricing is if it is priced at a level not
sign of self-worth acceptable to the market (beyond
o They require flawless their price expectation). The price
performance in this thus becomes unattractive.
application • DEMAND-BASED PRICING
 OPTIONAL PRICING  only when a thorough
• When a company sells a base research is conducted
product at a relatively low and the demand for the
price, but sells complementary product is known
accessories at a higher price.
 CUSTOMER VALUE BASED PRICING
 The customer decides whether
a product’s price is right.
 Effective customer-value based
products are understanding
how much value a consumer
places on the benefits they
receive from that particular
product and setting a price that
captures this value.
 Uses buyers’ perception of
value, not the sellers cost as the
key to pricing

 Costs-plus Pricing positioning of price within the
the simplest Cost-based Pricing market place.
Method • EXAMPLE:
• Cost-plus pricing is the simplest • The seller will charge Php99
pricing method. It is also called instead Php100 or Php199
mark-up pricing and means instead of Php200. The reason
nothing else than adding a why this method work, is
standard markup to the cost of because buyers will still say
the product. they purchased their product
under Php200.
 PRICE BUNDLING
• The organization bundles a
group of products at a reduced
price. Common methods are
buy one and get one free
promotions
• EXAMPLE:
 Cost-based pricing Markup price
• Soft-drink bundled in a six-pack
• Now suppose the company
container can come cheaper
wants to earn a 20 percent
than when buying it per piece.
markup on sales.
 PRODUCT LINE PRICING
• The markup-price in cost-based
• Refers to the practice of
pricing is determined by the
reviewing and setting prices for
following formula:
multiple products that a
company offers in coordination
with one another
 PENETRATION PRICING
• “A penetration strategy is the
price war; this strategy goes for
the deepest price cuts driving at
OTHER PRICING STRATEGIES every moment to have your
price be the lowest on the
market,”
• The practice of setting an initial
price much lower than the
eventual standard price.
 PRICE SKIMMING
• Strategy designed to maximize
profits by adjusting the fee for a
product or service over time.
• The organization sets an initial
 PSYCHOLOGICAL PRICING high price and then slowly
• The seller here will consider the lowers the price to make the
psychology of price and the product available to a wider

market. The objective is to skim  GEOGRAPHIC PRICING
profits of the market layer by • Geographic pricing involves
layer. reduction for transportation
 COMPETITION-BASED PRICING costs or other costs associated
• Competition-based pricing with the physical distance
involves setting prices based on between the buyer and the
competitors’ strategies, costs, seller
prices, and market offerings.  TRANSFER PRICING
• Setting a price in comparison • Transfer pricing occurs when
with competitors. one unit in a company sells a
• In reality a firm has three product to another unit.
options
SUMMARY OF PRICING STRATEGIES
1. these are to price lower
2. price the same
3. price higher than
competitors.
PRICING FOR BUSINESS MARKETS
 PRICE DISCOUNTING
1. TRADE DISCOUNTS
o A trade discount is the amount

by which a manufacturer
reduces the retail price of a
product when it sells to a
reseller, rather than to the end
customer.
2. QUANTITY DISCOUNTS
o Deductions from list price that

reflect the economies of
purchasing in large quantities.
3. CASH DISCOUNTS
o A cash discount, or “price

reduction,” given to a buyer for
paying promptly or in cash.
4. SEASONAL DISCOUNTS
o A seasonal discount is a price

reduction given to buyers
buying goods or services out of
season.

 works across a single channel:
from the business directly to
the end user.
THE MARKETING MIX: PLACE 2. Intermediary distribution
Locating the products in close proximity  When you purchase a product

to the firm’s target market groups is taken care from a store, that store is acting
of by distribution, which forms the Place ‘P’ of as a Reseller. The store (in most
the marketing mix. cases) doesn’t manufacture the
products — it purchases them
Distribution typically involves the following from another business.
activities:
NATURE AND IMPORTANCE OF DISTRIBUTION
 The location of the business CHANNELS
 The location of the firm’s target market  Distribution Channels perform a crucial
role in the successful distribution and
 Ways to reach the target market
marketing of all products.
 Warehousing and storage of stock
 The rapidly growing markets and
 A good transport system to transport increasing complexities of distribution
goods to various geographical locations have increased the demand and
requirement of the distribution
 A tracking system to ensure that the
channels.
right goods reach the right place at right
time and in the right quantity The Role of Distribution Channels
 Efficient packaging which takes 1. Distribution channels offer

accommodates for the wear and tear salesmanship
during transport 2. Distribution channels increase
distributional efficiency
 Tracking locations for best placement of
3. The channels offer products in required
the product so that it is available to a
assortments
majority of the consumers.
4. They assist in product merchandising
Distribution Channel 5. The channels assist in executing the
price mechanism between the firm and
 The place or means where a firm places the final customers
or distributes its products and services 6. Distribution channels assist in stock
 The structure may be simple or it may holding
be complicated. Thus, the distribution channels are a vital
constituent of a firm’s comprehensive
 It determines where and when the marketing strategy. They assist in expanding
product will be available to ultimate product reach and availability, as well in
users or consumers. increasing revenue.
Two Basic Types Of Distribution Channels
1. Direct-to-user distribution

 Retailers work directly with the
customer. These intermediaries
work with wholesalers and
distributors and often provide
many different products
DISTRIBUTION CHANNEL STRUCTURES manufactured by different
producers all in one location.
4. Agents and Brokers
 Agents and brokers sell

products or product services for
a commission, or a percentage
of the sales price or product
revenue.
OTHER TYPES OF INTERMEDIARIES IN THE

MARKETING CHANNEL
1. Consumer Channels
 A direct channel carries goods

directly from a producer to the
business purchaser or
consumer. One of the newest
means of selling in a direct
channel is the Internet.
TYPES OF INTERMEDIARIES IN THE MARKETING  An indirect channel is a
CHANNEL producer-retailer-consumer
1. Wholesalers channel
 Wholesalers typically are 2. Business-to-Business Channels

independently owned  B2B distribution channels
businesses that buy from facilitate the flow of goods from
manufacturers and take title to a producer to an organizational
the goods. customer.
2. Distributors and Dealers 3. Channels for Services
 Generally privately owned and  Because services are intangible,
operated companies, selected there is no need to worry about
by manufacturers, that buy storage, transportation, and the
product for resale to retailers, other functions of physical
similar to wholesalers. distribution
3. Retailers  Some services, however, do
need an intermediary, often

called an agent, who helps the -Communication to build and maintain
parties complete the relationships by informing and persuading one
transaction or more audiences.
NUMBER OF INTERMEDIARIES
Three Strategies on the Number of INTEGRATED MARKETING COMMUNICATIONS

Intermediaries (IMC)
1. Exclusive Distribution -Refers to the coordination of

promotion and other marketing efforts to
 distribution of a product
ensure maximum informational and persuasive
through one wholesaler or
impact on consumers.
retailer in a specific
geographical area. Major Goal: To send a consistent message to
customers.
2. Selective Distribution
COMMUNICATIONS
 distribution of a product
through only a limited number A sharing of meaning through the transmission
of channels. of information
3. Intensive Distribution MARKETING COMMUNICATION PROCESS
 distribution strategy seeks to

distribute a product through all
available channels in an area
SUPPLY CHAIN MANAGEMENT (SCM)
-Supply chain management (SCM) is the

active integration and coordination of all supply
chain activities to provide you, the customer,
with the best value.
MARKETING MIX: PROMOTION is made for a car manufacturer. The car manufacturer
(sender) pays for a specific advert with contains a message
specific to a target audience (encoding). It is transmitted
during a set of commercials from a radio station
PROMOTION (message/medium).
The message is decoded by a car radio (decoding) and the

-is the marketing term used to describe
target consumer interprets the message (receiver). He or
all marketing communications activities and she might visit a dealership or seek further information
includes personal selling, sales promotion, from a web site (Response). The consumer might buy a car
public relations, direct marketing, trade fairs or express an interest or dislike (feedback). This
and exhibitions, advertising and sponsorship. information will inform future elements of an integrated
promotional campaign. Perhaps a direct mail campaign
would push the consumer to the point of purchase. Noise
represents the thousands of marketing communications

that a consumer is exposed to everyday, all competing for – television, radio, newspapers, magazines, outdoor
attention. means and so forth – are used for advertising the product.
It is used to develop attitudes, create awareness, and
 Sender (Source) transmit information in order to gain a response from the
target market. There are many advertising ‘media’ such as
A person, group, or organization with a newspapers (local, national, free, trade), magazines and
meaning attempts to share with a receiver or an journals, television (local, national, terrestrial, satellite)
cinema, outdoor advertising (such as posters, bus sides).
audience. Celebrity endorsers
 Coding process (encoding) Public Relations (PR)
Converting meaning into a series of signs or -defined as ‘the deliberate, planned and
symbol. sustained effort to establish and maintain
mutual understanding between an organization
 Decoding process and its publics’ .
Converting signs or symbols into concepts and Personal Selling
ideas.
-face to face contact between a seller’s
 Receiver representative and those people with whom
the seller wants to communicate. Non-profit
The individual, group, or organization that organization, political candidates, firms and
decodes a coded message. individuals use personal selling to communicate
 Noise with the public.
Personal selling includes face-to-face personal
Anything that reduces a communication’s clarity communication and presentation with prospects (potential
and accuracy. and actual customers) for the purpose of selling the
products. It involves personal conversation and
 Feedback presentation of products with customers. It is considered
as a highly effective and costly tool of market promotion.
The receiver’s response to a decoded message.
advertising vs. personal selling
Role of promotion in Marketing mix
Focus on how to attract the attention of

consumers and motivate them to take action or
make a purchase and to ensure the right
consumers are reached and objectives are met.
PROMOTIONAL MIX
Advertising
Sales Promotion
-defined as any paid form of non-
personal presentation and promotion of ideas, -includes activities that seek to directly
goods, and services by an identified sponsor. It induce or indirectly serve as incentives to
is a way of mass communication. It is the most motivate, a desired response on the part of the
popular and widely practiced tool of market target customers company sales people and
promotion. Major part of promotional budget is middle men and their sales force. These
consumed for advertising alone. Various advertising media activities add value to the product. In sales

promotion the activities like discounts, gifts, exhibitions, conferences, seminars,
contests, premiums, displays and coupons are meetings.
included. 9. Displays, point of purchase, show windows,
Sales promotions tend to be thought of as being all and in store signs and banners.
promotions apart from advertising, personal selling, and 10. Catalogs, booklets, brochures, bulletins,
public relations. For example, the BOGOF promotion, or post card, price lists, flyers/handouts,
Buy One Get One Free. Others include couponing, money-
off promotions, competitions, free accessories (such as package inserts, manuals, folders, suffers,
free blades with a new razor), introductory offers (such as pamphlets, books, house organs, house
buy digital TV and get free installation), and so on. Each magazines, newsletters, histories,
sales promotion should be carefully costed and compared
with the next best alternative.
instruction sheets, instruction books annual
reports, and any printed material that
Types of Sales Promotion described the product or gives product
1. Specially ads imprinted novelties, calendars, information for the purpose of selling,
match boxes, souvenirs etc.) and business training, installing, using and/or servicing.
gifts. 11. Direct mail and some of the items listed
2. Temporary price reductions via coupons, above, when used for direct mail.
extended, interest free or low interest 12. Sponsorship special events and charity
credit-refunds. rebates: price off deals, linked sales promotions.
combination offers; bonus packs, multiple advertising vs. sales promotion
packs; other methods.
3. Promotions designed to get trials, such as
coupons, refunds, rebates, price off deals,
bonus packs. Samples, offers, trial sizes,
free trials, special guarantees, premium,
self-liquidating premiums, reusable
containers, and souvenirs.
4. Business, industrial, trades and magazines
Direct Marketing
and technical papers; Journals, publications.
5. Directories and buyer’s guides. -any marketing undertaken without a
6. Trading stamps redemption coupons, distributor or intermediary. In terms of
divided coupons and continuity premiums. promotion it means that the marketing
7. When held for a firm’s, sales people middle company has direct communication with the
customer.
men, or customers. Meetings, sessions,
seminars, symposium, conferences, For example, Nintendo distributes via retailers, although
conventions, show rooms, classes, fashion you can register directly with them for information which
is often delivered by e-mail or mail.
shows, demonstrations, taste tests and
exhibits. Direct mail is very highly focused upon targeting
consumers based upon a database. As with all marketing,
8. When held for a number of competing the potential consumer is targeted based upon a series of
vendors, trade shows, world fairs, state attributes and similarities.
fairs, county fairs, fairs, shows, conventions,
OTHER FORMS OF PROMOTION

Trade Fairs and Exhibitions Viral Marketing
-Such approaches are very good for -An attempt to get consumers to share
making new contacts and renewing old ones. a marketer’s message, often through e-mail or
Companies will seldom sell much at such online videos, in a way that spreads
events. The purpose is to increase awareness dramatically and quickly.
and to encourage trial. They offer the
opportunity for companies to meet with both
the trade and the consumer.
Sponsorship Objectives of Promotional Activities

o Build Awareness
-is where an organization pays to be
associated with a particular event, cause or o Create Interest
image. Companies will sponsor sports events o Provide Information
such as the Olympics or Formula One. The o Stimulate Demand
attributes of the event are then associated with o Reinforce the Brand
the sponsoring organization.
PROMOTIONAL MIX STRATEGIES
Online Promotion
Marketers can choose from two (2) basic
-will include many of the promotions
promotion mix strategies:
mix elements which we considered above. For
example, advertising exists online with pay per 1. Push promotion
click advertising which is marketed by Google.
You can sponsor are website for example. A push promotional strategy involves taking
Online businesses regularly send out the product directly to the customer via
newsletters which are targeted using e-mail and whatever means, ensuring the customer is
mailing lists, which is a form of direct aware of your brand at the point of purchase.
marketing. Indeed, websites are premium
“Taking the product to the customer”
vehicle in the public relations industry to
communicate particular points of view to Examples of push tactics
relevant publics.
o Trade show promotions to encourage
Word-of-mouth communication retailer demand
-Personal information exchanges of o Direct selling to customers in showrooms
communication that customers share with one
or face to face
another about products, brands, and
companies. o Negotiation with retailers to stock your
Buzz Marketing product
-An attempt to incite publicity and o Efficient supply chain allowing retailers an
public excitement surrounding a product efficient supply
through a creative event.
o Packaging design to encourage purchase

o Point of sale displays  Appealing looking packaging
 Point of sale displays
 Radio ads
Examples
 TV ads
Nintendo – At E3, the video game industry's largest trade  Email ads
convention, Nintendo hired 250 brand ambassadors to work at  Direct mail ads
their booth. The ambassadors were there to show attendees new  Pay per click ads
games, answer their questions, and introduce them to a new
gaming system. Nintendo hired this army of short term staff to
aggressively push their games towards consumers with a helpful,
human face.
Dunkin Donuts – The doughnut maker distributed coupons to

mobile phone users in the Boston area. They sent the coupons to
people who had opted into a program after responding to ads run
on radio stations and online. The company saw a huge number of
people redeem the coupon and try one of their new products COMPETITIVE STRATEGIES
because they provided an easy incentive
How to Develop
Clorox – The maker of over 60 consumer brands including Hidden Competitive Strategies?
Valley, noticed that sales of ranch dressing went up 10% after
they started marketing it as a dip for frozen foods like pizza. The Some questions to help you define or develop your
company began looking for other ways to market nontraditional competitive strategy
uses for classic products. If they could push new uses on
consumers, they could increase demand. What is the intention of your business?
Saks Fifth Avenue – Any time a user downloads the luxury • Purpose delineates the reason for your
retailer’s mobile app, they are enrolled into a program to begin
organization’s existence. According to
receiving mobile notifications about sales, new products, and in-
management guru Peter Drucker, a business’s
store events. The retailer used the power of mobile technology to
keep interested customers informed on all the latest news about purpose should lie outside of itself and in
the store. society. Thus, his argument is that the only
convincing definition of business purpose is to
2. Pull promotion generate a customer.
What are its core competencies?

A pull strategy involves motivating
customers to seek out your brand in an active A few examples of such competencies are:
process. • Experience in putting together and programming
computer managed cutting machines
“Getting the customer to come to you”
• Experience in the design, manufacture and
Examples of pull tactics testing of miniaturized solid-state electronic
parts
o Advertising and mass media promotion
• Experience in budgeting, planning and
o Word of mouth referrals controlling costs
• Experience in fulfilling difficult customer delivery

o Customer relationship management schedules
o Sales promotions and discounts What is your business today?
• You can use your answers to previous questions

Examples to define your business. This definition of your
business as it is currently will provide the focus
 Trade show promotions
required to make your present operations
 Direct selling to customers in showrooms
 Negotiating with retailers to stock a product effective.
 Maintaining an efficient supply chain

• A guerilla strategy would be suitable if it is
What is your primary method of growth? possible to eliminate, minimize or circumvent
the chief barriers by reducing the scope of your
• Do you plan to grow by acquisition or internal operations.
expansion? Whichever be the method you
choose; it calls for a distinctive competitive • A defensive strategy would be suitable when
strategy. If you opt for acquisition, delineate neither of the above conditions is satisfied.
your acquisition criteria.
What is the scope of your products, services, and
What are your product and market priorities? markets?
To answer this question, you can think along the lines of: Consider what the main area of concentration of your
marketing strategy is. You may want to concentrate
– which market segments are of top priority and the goods on your current markets, or you may want to develop
or services you offer to these niches, fresh markets.
– which specific markets and/or goods:
-get routine priority, COMPETITIVE ADVANTAGE
– are being abandoned,
– receive decreased effort and an advantage over competitors gained by offering
resources, consumers greater value, either by means of lower prices
– are in the process of creation, for the or by providing greater benefits and service that justifies
future higher prices.
WHO ARE YOUR COMPETITORS?

What are your goals for the future?
• All businesses face competition.
• Your goals should cover all activity that adds to • Indeed, you could find yourself competing with
the achievement of your vision. This includes businesses from other countries. Your
operating, financial, social and other conditions competitor could be a new business offering a
that are required to bring your vision to fruition. substitute or similar product that makes your
Decide on the indicators that you can utilize to own redundant.
measure goal performance. Specify the
qualitative or quantitative values of those You can get clues to the existence of competitors from:
indicators that would describe goal achievement. • local business directories
What obstacles do you need to overcome to achieve • your local Chamber of Commerce
those goals? • advertising
• press reports
• Try to spot the major obstacles to accomplishing • exhibitions and trade fairs
each of your business goals. You may notice that • questionnaires
because obstacles or barriers are to do with • searching on the Internet for similar products or
system relationships or root causes, they are services
comparatively few. It is up to your business to • information provided by customers
overcome the considerable barriers associated • flyers and marketing literature that have been
with your industry’s competitive structure. sent to you - quite common if you're on a
bought-in marketing list
• Just one barrier can hamper multiple goals. • searching for existing patented products that are
Which strategic approach would you utilize to overcome similar to yours
those obstacles? • planning applications and building work in
progress
Decide on the strategic approach you intend to adopt
(offensive, defensive or guerilla) WHAT YOU NEED TO KNOW ABOUT YOUR COMPETITORS
• An offensive strategy would be suitable if it is Monitor the way your competitors do business. Look at:
possible to overcome, neutralize or alter some
chief barriers by the application of available • the products or services they provide and how
resources. they market them to customers
• the prices they charge

• how they distribute and deliver
• the devices they employ to enhance customer
loyalty and what back-up service they offer
• their brand and design values
• whether they innovate - business methods as
well as products
• their staff numbers and the calibre of staff that
they attract
• how they use IT - for example, if they're
technology-aware and offer a website and email
• who owns the business and what sort of person
they are? LOW COST
• their annual report - if they're a public company • With this strategy, the objective is to become
• their media activities - check their website as the lowest-cost operator
well as local newspapers, radio, television and • This typically involves production on a large scale
any outdoor advertising which enables the business to exploite
economies of scale.
Competitive Intelligence
• It involves continuously collecting and studying COST LEADERSHIP

information about a business’s competitors, • Objective: BECOME THE LOWEST-COST
customers and industry in a legal and ethical PRODUCER IN THE INDUSTRY
manner to achieve a business edge over the COST FOCUS
competitors.  Seeks a lower-cost advantage in just one or a
• As the information collection must be done small number of market segment
lawfully, it should be taken only from publicly WHY LOW COST IS A SOURCE OF COMPETITIVE
available sources. ADVANTAGE? WHY IS COST LEADERSHIP IMPORTANT?
• The intelligence gained can include the – If selling prices are broadly similar, the
competitors’ strengths and weaknesses, their lowest-cost operator will enjoy the
competitive strategy, their response to changes highest profits
in the external environment and any new moves – Lowest-cost operator can also offer the
they would possibly make. lowest prices (gain market share)
PORTER’s GENERIC STRATEGIES (by: Michael E. Porter) DIFFERENTIATION
• With a differentiation strategy, aims to offer a
MICHAEL E. PORTER product that is distinctively different from the
competition, with the customer valuing that
• Michael Porter is an economist, researcher,
differentiation
author, advisor, speaker and teacher.
DIFFERENTIATION LEADERSHIP
• he has brought economic theory and strategy
 The business targets much larger markets and
concepts to bear on many of the most
aims to achieve competitive advantage through
challenging problems facing corporations,
economies and societies, including market differentiation across the whole of an industry.
competition and company strategy, economic DIFFERENTIATION FOCUS
development, the environment, and health care.  The business aims to differentiate within just one
• His research has received numerous awards, and or a small number of target market segments.
he is the most cited scholar today in economics Ways to achieve differentiation
and business. • Superior Product Quality (Features, benefits,
• While Dr. Porter is, at the core, a scholar, his durability, reliability)
work has also achieved remarkable acceptance • Branding (Strong Customer Recognition &
by practitioners across multiple fields. Desire; Brand Loyalty)
• Wide Distribution across all major channels (i.e
the product or brand is an essential item to be
stocked by retailers)
• Sustained Promotion often dominated by
advertising, sponsorship etc.

PORTER’S FIVE FORCES Model THREAT OF SUBSTITUTION
If there are available alternatives, then the threat of

substitution increases.
• How easy is it to find an alternative to this

product or service?
• Can it be outsourced? Or automated?
• Supplier Power
Here are some examples of where the balance of power
lies in different markets
For example, hairdressing or writing a will. Focus is on

expertise, customer service or added value. A threat of
substitutes exists if there are alternative products with
lower prices of better performance parameters for the
same purpose.
SUPPLIER POWER
THREAT OF NEW ENTRY
Markets where there are few suppliers means the
If a new business can be easily started up in your sector suppliers retain the power
without substantial investment - then this is a threat. The
Internet has made this a reality in many sectors, especially • Examine how many suppliers are in the market?
publishing! So ask yourself the questions: • Are there a few who control prices?
• Or many so prices are lower?
• What’s the threat of new businesses starting in • Do your suppliers hold the power?
this sector? • How easy is it to switch, what’s the cost?
• How easy is it to start up in this business? Here are some examples of where the balance of power
• What are the rules and regulations? lies in different markets
• What finance would be needed to start-up?
• Are there barriers to entry which give you Some sectors have monopolistic (one) or oligopolistic
greater power? (few) suppliers, such as utility companies. Sometimes
• Buyer Power. customers have little choice i.e. where to buy domestic
Here are some examples of where the balance of power water suppliers though this is changing. In the jewelry
lies in different markets sector, diamond suppliers often hold the power and can
set prices, withhold supply and restrict sales.
An example is web design, as there are independents in
every location. This is an easy market to enter with few COMPETITIVE RIVALRY
requirements, other than skills, initiative and relevant
Markets where there are few competitors are attractive
hardware and software. This does mean there are many
but can be short-lived. These are highly competitive
new entrants!
markets with many companies chasing the same work
BUYER POWER reduce your power in the market.
Where there are fewer buyers, they often control the • What’s the level of competition in this sector?
market. Questions here include:
• What’s the competitor situation? Many
• How powerful are the buyers?
competitors and you’re all in a commodity
• How many are there?
situation or a few?
• Can the buyers get costs down?
• Do they have the power to dictate terms? Here are some examples of where the balance of power
Here are some examples of where the balance of power lies in different markets
lies in different markets
These include Estate agents, web design and office
An example is the grocery sector since supermarkets tend stationary. Many competitors often buy on price. The
to retain power over suppliers’ due to volume and price of intensity of the rivalry, which is the most obvious of the
contracts. They dictate terms, set prices and can possibly five forces in an industry, helps determine the extent to
end agreements at any time.

which the value created by an industry that is dissipated F ixed C osts
through the head to head competition. BEP ( P )=
M ark U p
THE VALUE CHAIN MODEL S elling P rice
• This model was first introduced by him in his 2. Break-even in Units :
book “Competitive Advantage: Creating and
sustaining superior Performance” in 1985. F ixed C ost
BEP ( U )=
M ark U p
• Michael Porter proposed this model with the aim
of providing a framework by using which an
organization can analyze and manage its
different activities to get superior performance
and gain the competitive advantage.
• Porter argued that it is important for any

organization to develop a system that facilitate
and allow the management to connect the
machine, money and people in a synchronized
manner to produce the products what
customers need. He said that it is very important
for the management to control and manage all
different activities and their linkages will be act
as a source of competitive advantage.
BREAK EVEN ANALYSIS
FIXED COST - These are expenses you incur with or

without production; they include items like rent, utilities,
interest payments and other ongoing expenses for
facilities.
VARIABLE COST - Include variable costs in your marketing

plan. These costs include labor, raw materials and other
expenses that rise as production increases.
BREAK-EVEN FORMULA
Estimate how much and how many you will have to sell to
pay back the initial investment.
1. Break-even in Pesos:


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PRINCIPLES OF MARKETING

Marketing -Marketing is the process of creating,

• It also assumes that the company has a

• Most firms practice the selling concept

• Their aim is to sell what they make rather

1|Page PRINCIPLES OF MARKETING REVIEWER 2018

• Marketing Mix - set of marketing tools

• The marketing mix refers to the set of

Marketing Mix or 4P’s

PRODUCT- As a process, marketing starts with

 What are their preferences in terms of

Marketers identify a consumer need and then

• Marketing is a process. PRICE- The amount the consumer must exchange

2|Page PRINCIPLES OF MARKETING REVIEWER 2018

Targeting Consumer Wants

• Sales methods, franchising, and

Establishing a Consumer-Driven Sales Strategy

3|Page PRINCIPLES OF MARKETING REVIEWER 2018

• It is the most recognizable type of

Most traditional marketing strategies fall under

TELEMARKETING Digital Marketing- Since we are in the modern

E-Marketing or Online Marketing- The putting up

4|Page PRINCIPLES OF MARKETING REVIEWER 2018

5|Page PRINCIPLES OF MARKETING REVIEWER 2018

 If they appreciate the value, they are

6|Page PRINCIPLES OF MARKETING REVIEWER 2018

Handling Customer Complaint The process of planning, implementing, and

A long-term view, or vision, of what the

7|Page PRINCIPLES OF MARKETING REVIEWER 2018

DEFINING MISSION OBJECTIVES • Core Competencies

 Determines the means for utilizing  Market Opportunity

• Marketing Strategy • S.M.A.R.T

 Utilizes the marketing mix to Marketing Strategy

 Group of individuals that have DEFINING MISSION OBJECTIVES- A written

8|Page PRINCIPLES OF MARKETING REVIEWER 2018

SWOT ANALYSIS Threats are unfavorable external factors or trends

SWOT can be used to:

• When you would want to explore

• Explore possibilities of introducing new

• Identifying possible areas of change

• Make decisions about the direction of BENEFITS WITH SWOT ANALYSIS

9|Page PRINCIPLES OF MARKETING REVIEWER 2018

• Build on Strength C4SIM

The marketing decision about the company’s

Customers have the most direct microeconomic

The workers produce, sell goods or service that

Marketing managers take two general Marketing intermediaries

10 | P a g e PRINCIPLES OF MARKETING REVIEWER 2018

The Media and General Public

Buyer Power: Here you ask yourself how easy it is

MACRO-ENVIRONMENT Ecological, or natural forces in the Macro

11 | P a g e PRINCIPLES OF MARKETING REVIEWER 2018

TECHNOLOGICAL FORCES COMPETITIVE STRUCTURE

A technological force everybody can think of

Other organizations that market products that are

Brand Competition Steps in doing a Market Study

Product Competitors STEP 2: Conduct a study on existing literature and

a) General market situation (socio-demographic)

12 | P a g e PRINCIPLES OF MARKETING REVIEWER 2018