What is Marketing?

The process of continuously and profitably satisfying target customer’s

needs, wants, and expectations superior to competition

Marketing Concept:
Focuses on identifying and satisfying the needs of customers during the
development and marketing of a product or service

Communicating information about those goods and services to prospective buyers

Making the products available when and where customers want them
Pricing merchandise and services
Providing after-sales service and following-up

Traditional marketing
product:
creatingexchangesfortangible
goods(ex:soap)

service:
creatingexchangesforintangible
goods(ex:insurance)

Non-traditional
Marketing
a. A person marketing- efforts to cultivate the attention, interest, and preferences of a
target market toward a person
a. Ex. Celebrity endorsements
b. Place marketing- efforts to aattract people and organizations to a particular geographic
area.
a. Ex. BTS promoting Korea
c. Cause Marketing- identification and marketing of a social issue cause or idea to selected
target markets,
-many profit-seeking firms link their products to social causes
-Strong support among customers and employees for cause-related
marketing
d. Event marketing- marketing of sporting, cultural, and charitable activities to selected
target markets.
-also includes sponsorship of such events by firms.
- event sponsorships have gained effectiveness in increasing brand
recognition, enhancing image, boosting purchase volume
 e. Organization Marketing- Intended to persuade others to:
accept the organization’s goals
recieve its services
contribute to the organization in some way
adopted by mutual-benefit organizations, service
organization, and government organizations
The Marketing Plan

Unique Selling Proposition

A description of the qualities that are unique to a particular product or service and that
differentiates it in a way which will make customers purchase it rather than its rivals. (The
Economist 2009)

Value Proposition
“It’s a short statement that sets out the benefits (value) of a business, product or
service to customers. Or more simply, it helps to answer the essential question on every
customer’s lips: "Why should I choose you?".

Target Market, Market Size & Other Variables

Target Market
• A specific group of consumers at which a company aims its products and services.
(Entrepreneur.com n.d.)
• For entrepreneurs, it is basically the consumers who an entrepreneur chooses to sell his
or her products or services to.
• These consumers are chosen by entrepreneurs because they may be the reason why the
product or service was even created in the first place.
• Defining a business’ target market is very important because since doing marketing
involves a lot of resources, an entrepreneur can avoid wasting money on marketing and
advertising to the wrong consumers.
• Determining a Target Market would require entrepreneurs to study and define all of its
target market’s segments—Market segmentation
Market Segmentation
• Marketing Segmentation is a marketing term that refers to aggregating prospective
buyers into groups or segments with common needs and who respond similarly to a
marketing action
• It is a technique that entrepreneurs use to define more specifically a company’s target
consumers and dividing them in groups based on qualities that they have in common.
• Entrepreneurs that use market segmentation narrow down and identify a specific target
market within a entire population and tailor their marketing strategies and efforts to
appeal to them
o GEOGRAPHIC- classifying customers through geographic boundaries such as:
Location, city, state, region, country.
 o DEMOGRAPHIC- gender, race, family size, income, occupation
o PSYCHOGRAPIC- Intrinsic traits: Lifestyle, personalities, opinions, attitudes,
motivations
o BEHAVIORAL- Based on how they react, behave, and their pattern of decision
making and buying process: benefits sought, purchase, usage, intents,
engagement
Market Research
• According to Philip Kotler, Marketing Research is a systematic problem analysis, model
building and fact finding for the purpose of improved decision-making and control in the
marketing of goods and services. This is why Marketing Research is an integral part of
the entrepreneurial business planning process.
• It provides the entrepreneur relevant data that will help develop further his or her
marketing strategies such as segmentation and product develop.
• Entrepreneurs, through information gathered by Marketing Research, can now
determine if the business, its products/services, and its target consumers could lead to a
successful business venture in the future.
o Primary research- Primary Research is the original research conducted directly by
▪ the entrepreneur or via someone the entrepreneur has hired to obtain
information and collect data specifically for his or her objective.
▪ To put it simply, these are researches that are done by the entrepreneur.
▪ Qualitative Research and Quantitative Research.
o Secondary Research
▪ Data already collected by outside institutions like the government,
organizations, private companies, and others.
▪ These researches contain information that can help an entrepreneur with
his or her market research.
▪ Nowadays, entrepreneurs gather secondary information through the use
of the internet and online websites.
• Market Research Process:
o 1. Define the Problem and research objective
o 2.Develop the research plan
o 3. Collect the information
o 4. Analyze Information
o 5.Present Findings
o 6.Make the decision
MARKETING MIX
Marketing Mix is the combination of the elements of marketing and what roles each element
plays in promoting your products and services and delivering those
products and services to your customers.

Product
• is anything that can be offered to a market that might satisfy a want or need.
• In retailing, products are called merchandise.
• In manufacturing, products are bought as raw materials and sold as finished goods.
• Role of PRODUCT/SERVICE in the MIX: To satisfy consumer needs and wants!
• The tangible product or the intangible service that the enterprise offers to its customers
in order to satisfy their needs, and to produce their expected results.
o Product Packaging- What shows off your product/service in the best light
o Effectively communicates the product’s/service’s benefits
to the customer
o Creates an identity for the product/service
o Differentiates the product from both its competitors and
others within the brand.
o Shelf-life of products
o LEVELS OF PRODUCTS
▪ Core Benefit/ Core Product- the fundamental need that the customer
satisfies when they buy the product.
• “Fundamentally, why is the customer buying
this product?”
▪ Actual Product- ▪The Product features and its design. Products typically
have lots of features but very few actual benefits (core benefits) to the
customer.
• ▪Example: Returning to our mobile phone example, then the
actual product consists of the design and features of the phone,
including:
• ▪Dimensions.
• ▪Color.
• Screen size.
• ▪Bluetooth compatibility.
• ▪App ecosystem size.
• ▪Packaging.
▪ Augmented Product- non-physical parts of the product.
▪ Warranty, customer service
▪ Important way to tailor your product to meet the
needs of specific customers
PRODUCT/ SERVICE PROCESS
1. Idea Generation
2. Research Development
3. Testing
4. Analysis
5. Roll-out

Product Positioning
• The process marketers use to determine how to best communicate their products'
attributes to their target customers based on customer needs, competitive pressures,
available communication channels and carefully crafted key messages
• Effective product positioning ensures that marketing messages resonate with target
consumers and compel them to take action
• Controlling the Consumer’s Perception of your product

Price
• Price is the amount of money or goods for which a thing is bought or sold.
• The price of a product may be seen as financial expression of the value of that product.
• Price is also the marketing variable that can be changed most quickly, perhaps in
response to a competitor price change.
• Role of PRICE in the MIX: To make product or service affordable to target consumers.
• One of the most important elements of the marketing mix, as it is the only element of
the marketing mix, which generates a turnover for the organization
• How much a consumer pays for in a product/service (based on its VALUE)
• It is also a very important component of a marketing plan as it determines your firm’s
profit and survival.
• Adjusting the price of the product has a big impact on the entire marketing strategy as
well as greatly affecting the sales and demand of the product.
o Things to consider:
▪ If a company is new to the market and has not made a name for
themselves yet, it is unlikely that your target market will be willing to pay
a high price.
▪ Although they may be willing in the future to hand over large sums of
money, it is inevitably harder to get them to do so during the birth of a
business.
▪ Pricing always help shape the perception of your product in consumers
eyes. Always remember that a low price usually means an inferior good in
the consumers eyes as they compare your good to a competitor.
▪ Consequently, prices too high will make the costs outweigh the benefits in
customers eyes, and they will therefore value their money over your
product. Be sure to examine competitors pricing and price accordingly.
Pricing Factors
• Fixed and Variable costs
• Competition
• Company objectives
• Proposed position strategies
• Target group and willingness to pay
Customer Demand- customers are sensitive to the price level of a product or service.
• A product or service is said to have elastic demand if an increase in proce lower its
demand or vice versa
• Not being affected by this is known as inelastic demand: ex. Gasoline, concert tickets,
medical procedure. Etc.
Value
• The extent to which a good or service is perceived by its customer to meet their needs
or wants, measured by a customer’s willingness to pay for it.
• Depends more on the customer’s perception of the worth of the product than on its
intrinsic value.
Traditional Pricing Strategies
• Skimming (high)
• Premium (high)
• Economy (Low)
• Penetration (Low)
1. PRICE SKIMMING or SKIMMING PRICING
a. Price skimming sees a company charge a higher price because it has a substantial
competitive advantage. However, the advantage tends not to be sustainable. The
high price attracts new competitors into the market, and the price inevitably falls
due to increased supply.
b. Assumes that certain customers will pay a higher price because they view it as a
prestige item.
c. ▪ Most practical when there is little threat of short-term competition or when
startup costs must be recovered rapidly; also, because of the high cost of
introducing a new product.
d. Works well for products that create excitement amongst “early adopters”
e. Best used in introduction or early growth stage of a product life cycle
f. Electronic items provide many great examples
2. PREMIUM PRICING
a. Premium pricing is used for products or services that areclearly of a higher luxury
value than anything else on the market.
b. ▪ Premium pricing is reserved for 5-star hotels, first-class airline tickets, and other
products that give the customer the perception of being of the highest quality.
c. While premium pricing isn’t useful for commodity goods, it does make your
product or service seem more desirable and more buzz-worthy than the less
expensive, similar products on the market.
 3. ECONOMY PRICING
a. Economy pricing is useful for companies who are keeping their overhead low.
b. For example, generic grocery store brands of products
c. usually have a lower price than the name-brand items, due to the lack of
advertising or out-of-store promotion. Because these companies save on those
aspects of the product, they are able to keep their pricing low.
d. Companies who use economy pricing count on the fact that their lower price
compared to the product next to them on the shelf will increase the number of
sales.
e. Economy pricing does particularly well during times of economic recession.
4. PENETRATION PRICING
a. Penetration pricing is a pricing strategy in which the price of a product is initially
set low to rapidly reach a wide fraction of the market and initiate word of mouth
b. ▪ This pricing is typically used when the market is saturated or there are already
many variants of the same product present in the market
c. ▪The strategy works on the assumption that customers will switch to the new
product because of the lower price.
d. Penetration pricing is most commonly associated with marketing objectives of
enlarging market share and exploiting economies of scale or experience.
OTHER TYPES OF PRICING STRATEGIES
1. FOLLOW-THE-LEADER PRICING
a. Uses a particular competitor as a model in setting prices.
b. A small business competing with a larger firm is seldom in a position to consider
itself the price leader.
c. Even if different brands have different characteristics, customers often do not
perceive such differences to pay a premium. Thus, small businesses selling
commodities (with MSRP) are better holding down cost to be able to price at the
same level
2. VARIABLE PRICING
a. Prices have two levels: a standard list price, and a price concession for customers
who either have knowledge and bargaining strength, or those that purchase large
quantities.
b. In some fields of business, firms make two-part pricing decisions, but will only
advertise one uniform price. Ex. Divisorial
3. PRODUCT LINE PRICING
a. Establishes distinct price categories at which similar items of retail merchandise
are offered for sale.
b. Example: Men’s Suits at $250, $400, and $800.
c. The amount of inventory stocked at different quality levels depends on the
demand and income evels of customers.
d. Advantage of simplifying the selection process for the customer and reducing
minimum inventory needed.
 4. PRODUCT BUNDLE PRICING
a. Here sellers combine several products in the same package. This also serves to
move old stock. • Blu-ray and videogames are often sold using the bundle
approach once they reach the end of their product life cycle.
b. You might also see product bundle pricing with the sale of items at auction,
where an attractive item may be included in a lot with a box of less interesting
things so that you must bid for the entire lot.
c. It’s a good way of moving slow selling products, and in a way is another form of
promotional pricing.
5. PSYCHOLOGICAL PRICING
a. It is a pricing tactic, which is based on the idea that certain prices have a
psychological impact on the consumer.
b. It basically uses the consumer’s emotional response in order to encourage sales.
Odd pricing conventions make products or services appear attractive and
significantly cheaper than they actually are.
c. Customers have an innate inclination to respond to certain types of pricing.
Instead of appealing the rational side of consumers, the psychological pricing
appeals to their emotional side. Ex. $0.99
Place
• Place in the marketing mix refers to the channel, or the route, through which goods
move from the source to the final user.
• Place could be the intermediaries, distributors, wholesalers and retailers.
• Role of PLACE in the MIX: To make product/service available consistent with consumers’
purchasing pattern
• With the Pandemic, most businesses are forced to find new platforms and new ways
where they can be accessed by their target consumers.
• Outlines where the product or service is sold, and how it is delivered or made-available
to the market.
• For most small businesses this Pandemic, majority of them sell their products and
services ONLINE.
• The online world and internet is also considered a place in Marketing.

LOCATIONAL PLANNING
Initial Location Screening
Relevant location Drivers
• Physical Proximity- For most entrepreneurs, locations are chosen
based on how close it is to the target market.
• Ideally, location should be easily accessible
from home or the workplace.
• However, customers would not mind
traveling a bit to go to a well-known, or
highly-acclaimed brand or business.
 •Customer traffic flow- Refers to the people that regularly come
into contact with the business establishment
• It might be near to customer’s homes or
work, or might be situated along their daily
route.
• Higher traffic flows generally translate to
higher drop-in rates
• Industry clustering- Competitors clustered in one location usually
tp draw in a bigger market to the area.
• Choices for consumers are available,
drawing more in, but competition is fiercer.
• Convergence of multiple industries- Locations where multiple
industries converge, that attract customers because of the idea of
a one-stop shopping convenience.
• Population concentration- Urban zones create population
concentrations.
▪ Where people live, goods and services must follow.
• Activity hubs- Places of daily activity such a large schools, high-rise
condominiums or offices, transportation terminals are potential
location for immediate needs and/or client-specific services.
• Growth potential- Because businesses are always looking for new
areas to expand and grow.
▪ New development sites can have great potential for
early locators.
• Business climate- Atmosphere is conducive to doing business:
▪ High economic growth
▪ Good infrastructure
▪ Cheap utilities
▪ Efficient Transport/Logistics
▪ Availability of Labor
▪ Low Crime Rates
ALTERNATE LOCATION BUSINESSES
Home-based Business
• Attractiveness
o Financial considerations- Get a business running quickly and cheaply
▪ Save time and money wasted on
▪ starting up, location, and even
▪ daily commutes
o Lifestyle considerations- Have something interesting? Makemoney doing
it.
▪ Start doing something small scale and see if
it works/sells
▪ Spend more time with family and friends.
 • Challenges
o Professional Image- Maintaining a professional image can be difficult in
home-based businesses.
o The business may encroach upon
o personal family space
o Legal Considerations- Zoning laws/ordinances might cause difficulty in
creating a home-based business
o Taxation and Insurance problems might arise as a
result of the business location.
INTERNET-BASED BUSINESSES (E-Commerce)
• Allows a new venture to compete with bigger businesses on a more level playing field.
• Can help with early cash flow problems by compressing the sales cycle: reduce time
between receiving an order and converting the sale to cash.
• Quicker payments, improved cash flows towards the business.
• Enables smaller firms to build on one of their greatest strengths –customer relationships.
o Type of customer served
▪ Business-to-business (B2B)- outsourcing, I.T, Solutions
▪ Business-to-consumer (B2C)- Lazada, online stores
▪ Consumer-to-Consumer (C2C)- Ebay
o NATURE OF ONLINE PRESENCE
▪ Information-based model
• Offer information but doesn’t charge for its use • Usually used as a
complement to an existing brick-and-mortar facility.
• Most of the time a phone number, “Contact Us” or click-through
button that allows communication can be found.
▪ Content-based model
• Similar to information-based model.
• Still does not sell products or services
• Provides information (content) with the hope of attracting a
healthy stream of visitors that can then be monetized. • Normally
earns revenues from ads
▪ Transaction—based model
• The common visualization of e- commerce
• An internet-based business that sells products or services. • Some
companies merge this with information- or content- based models
▪ Emerging option model
• Youtubers
• Podcast
• Bloggers
Promotion

• Refers to raising customer awareness of a product or brand, generating sales, and

creating brand loyalty.
• Role of PROMOTION in the MIX: To build and improve consumer demand.
• the communications strategy adopted by an enterprise to elicit the patronage, loyalty,
and support not only from its customers but also from its other significant stakeholders
• Involves disseminating information about a product, product line, brand, or company.
• To generate sales and profits, the benefits of products have to be communicated to
customers. in marketing this is commonly known as “promotions”.
OBJECTIVES FOR PROMOTION
• Build awareness
• Create Interest
• Provide information
• Stimulate demand
• Reinforce the brand

PROMOTION MIX
Specific Combination of promotional methos such as print or broadcast advertising, direct
marketing, personal selling, point of sale display, merchandising, etc. used for one product ot a
family of products.

FACTORS THAT GUIDE ENTREPRENURS WHEN DEVELOPMING A PROMOTIONS MIX

• Nature of the product Market
• Overall marketing strategy
• Buyer Readiness stage
• Product life cycle stage

ADVERTISING: To effectively inform, persuade, and remind the target consumers.

"advertising is any paid form of non-personal presentation and promotion of ideas, goods and
services through mass media such as newspapers, magazines, television or radio by an
identified sponsor".
-Kotler and Armstrong

SALES PROMOTIONS: To convince customers to buy immediately

an activity designed to boost the sales of a product or service.
t may include an advertising campaign, increased pr activity, a free-sample campaign, offering
free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions
with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal
letters on other methods.
more than any other element of the promotional mix, sales promotion is about “action”. it is
about stimulating customers to buy a product. it is not designed to be informative – a role which
advertising is much better suited to.

d. loyalty cards, bdo rewards

e. bundles packages 50% off
f. Price reductions
PUBLIC RELATIONS: To offer a positive image of the company and the brand, as well as promote
an advocacy

“the planned and sustained effort to establish and maintain goodwill and mutual understanding
between an organization and its publics.”

public relations activities include, press releases. company literature, videos, websites and
annual reports.

PERSONAL SELLING: To get the customers to buy

personal selling is the oral communication with potential buyers of a product with the intention
of making a sale.

personal selling may focus initially on developing a relationship with the potential buyer, but will
always ultimately end with an attempt to "close the sale.”

Ex. Yakult carts, selecta ice cream, real estate kiosks in malls

PUBLICITY:
publicity refers to non-personal communications regarding an organization , product , service ,
or idea not directly paid for or run under identified sponsorship.

it usually comes in the form of news story, editorial, or announcement about an organization
and/or its products and services.

techniques used to gain publicity include news releases , press conferences , feature articles ,
photographs , films , and videotapes.

DIRECT MARKETING
direct marketing is concerned with establishing an individual relationship between the business
offering a product or service and the final customer.

the planned recording, analysis and tracking of customer behaviour to develop a relational
marketing strategies”. – institute of direct marketing
ex. Direct response adverts on television and radio, mail order catalogues, E-Commerce,
Magazine Inserts, Direct Mail, Telemarketing