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CHAPTER 4: Let the Market Know You Better

Objectives:
1. Know what is positioning
2. Determine the location analysis, geography and atmosphere
determinants

Positioning
Positioning, in the context of a marketing battle plan, has three overlapping
objectives.
First, positioning has an enterprise perspective. The enterprise scans has the
markets environment and decides to position with product that specifically address the
needs of a chosen targets market. Second, positioning has a competitive perspective.
The enterprise has to differentiate and distinguish itself from its competitors. Third,
positioning takes the customers perspective.
Latitude lays out what is important to the different customers segment from their differing
points of view.
Longitude in the marketing map represent the product features and attributes of the
competitors in the market place.
Product
A product is the tangible good or the intangible service that the enterprise offers
its customers in order to satisfy their needs and to produce their expected result. Products
are often identified with their brand names to distinguish them from other products in the
markets.
There are four general types of product that marketed by enterprises:
 Breakthrough products
 Differentiate products
 Copycat products
 Niche products

Packaging
There used to be a time when product came wrapped in ordinary packaging that
prominently displayed the brand name, the main attributes of the product, the company,
logo, and its place of business. Packaging came small, medium, and large sizes without
much variation in the materials, shape, and purpose of the packaging.
Place
“Location.”Location.”Location. This is the often-recited mantra of salespeople who
want to have the best access to their customers. Although finding a good location proves
to be challenging, even more challenging is maximizing the potential to that location.
Initial Location screening
In finding a good location, one needs to consider the following:

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1. The number of customers residing or working in the area, and the number of
customers who frequently pass through the area.
2. The density or number of customers per units are.
3. The access routes to alternative locations and their traffic count in those routes.
4. The buying habits of customers or where they buy, at what time and how
frequent.
5. Locational features such as parking spaces, foot access, creature comfort and
the like.
In additional to the above factors, the final choice of location must be based on the
following:
1. Image and location conditions. This refers to the physical look of a location,
sanitary conditions, crime and safety levels, etc. The reputation of a location is
also important.
2. Exact fit to target customers. Is the location traffic generally composed of
your target customers.
3. Clustering of competitor establishment. This oftentimes result in drawing a
bigger market to the location.
4. Future area development. A certain location might not have the most
customers or the best economics in the short term, but it might become a
central business hub within the next five years.
5. Fiscal and regulatory requirement. An entrepreneur would want to set up
shop in a town or city with low tax and rates, good governance, excellent
infrastructures, and great public service
Relevant Location Drive
1. Physical Proximity to Target Market
For most entrepreneur, location are chosen based on how close it is to target
market. Ideally, the best location should be easily accessible from home or the
workplace.
2. Customer traffic flow
Customer traffic flow refers to the people that regularly come into contract with
your business establishment. Your shop might not be near to customers homes
or workplace, but it might be situated somewhere along their daily routes.
3. Industry clustering
A lot of competitors clustered in one location usually draw in a bigger market to
the area. There stores side-by-side offer more choices to customers done one
stand-alone store.
4. Convergence of Multiple Industries
Locations where multiple industries converge, such as central business
districts, shopping malls, and public market are able to attract more customers
because of one-stop shopping convience.
5. Population Concentrations
Urbanization creates population concentrations. Where people live, goods and
service follow. The greater the number of people, the greater the number of
needs and wants to be satisfied.
6. Activity Hub
Activity hubs such as large schools, high-rise building, public parks, transport
terminals, and entertainment centers provide good location potentials for food
establishment and client-specific services.
7. Growth Potential

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Businesses are always looking for new areas to expand and grow. This is
especially true when crowned population centers become saturated with many
providers of good and service.
8. Business Climate
Enterprise refers locations that are conducive in doing business. This includes
areas with:
 High economic growth
 Stable political situation
 Effective social services
 Good infrastructures
 Cheap utilities
 Efficient transportation and logistics
 Availability of skilled labor force
 Low crime rates
 Good fiscal incentives
 Trusted public officials
9. Cost of doing Business and Producing and Services
For industrial establishment, the more relevant criteria are those locations with
lower cost of doing business and lower cost of producing good and services.

Comparative Location Analysis

Perhaps the most common way by which an entrepreneur survey a potential
location is through comparing it with other locations with more or less the same features
and tenant mix or cluster of competitors.
Geography and Atmosphere Determinants
Another way of looking at a location or place to the sell and product or services
can be based on two major place determinants: geography and atmosphere. Within each
determinants there are extreme opposite qualities that create a dilemma for the
entrepreneur.
For the geography determinant, there are six decision tensions:
1. Concentration versus destination
2. Access versus Abundance
3. Clustered versus Dispersed
4. Developed versus Underdeveloped
5. Physical versus Virtual
6. Upscale versus Downscale
For the atmosphere determinant, there are five decision tensions;
1. Formal versus Informal
2. Exclusive versus Public
3. Conservative versus Adventurous
4. Aesthetics versus Functionality
5. Minimalist versus Maximalist
People
People are the ultimate marketing strategy. People sell and push the product.
People search hard to find the right market. People distribute, promote, price, and sell the
products in the most attractive market places. People aim to peas ethe customers through

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continuing service and product enhancements long after customers have brought the
product.
Figure 4.1. Consumer Evaluation Process
INITIAL PROCESS MID PROCESS FINAL PROCESS
 Comparison of product  Customers who have tried  Taste tests
features and probable the products before  Physical demo
result by:  Professional evaluators  Free trial period
-window shopping guidebook on competing  Money-back guarantee
-internet browsing products offer
-brochures collection and  Testimonials from credible
comparison endorsers
-asking friends and  How often others are seen
relatives actually using the product
 Word of mouth feedback or services
 Gut reaction

Promotion
Promotion is the explicit communication strategy adopted by an enterprise to elicit
the patronage, loyalty, and support not only from customers but also from its other
significant stakeholders.

Price
Price depends on the business objective set by the enterprise. While price is a
major factor for the customer in buying a product, it is not he only factor such as in the
case of buying premium products.
The enterprise should set the prices of its products or services based on its business
objectives such as following:
1. Profit maximization
2. Revenue maximization
3. Market share maximization
4. Attainment of the desired prestage or quality leadership
5. Penetration, survival, or liquidation
6. Scarcity pricing or market skimming
7. Cost recovery
8. Subsidy pricing
9. Marginal pricing
Table 4.2. Profit, Revenue, and Market Share Maximization
Price Volume Total Total Costs* Total profits Unit Costs
Revenues
₱10 100 ₱1,000 ₱800 ₱200 ₱8.00

₱12 90 ₱1,080 ₱750 ₱230 ₱8.33

₱14 75 ₱1,050 ₱675 ₱375 ₱9.00

₱16 60 ₱960 ₱600 ₱360 ₱10.00

₱18 50 ₱900 ₱550 ₱350 ₱11.00

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 Please refer to the link below for a Documentary about: Brand positioning
https://www.youtube.com/watch?v=EvtaQhxBCIU
 Please refer to the link below for a Documentary about:geography and atmosphere determinants
https://www.researchgate.net/publication/5142668_The_Geography_and_Determinants_of_Entrepr
eneurship

Reference:
www.rexpublishing.com.ph
Entrepreneurship by Dr. Eduardo A. Morato Jr.

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