UNIVERSITY OF LA SALETTE, INC.

Senior High School

CHAPTER 3

Marketing Oppor-
This unit will help you understand the difference between a consumer and a business market. It covers
the factors that influence behavior and relevant concepts.
It is difficult for the businesses to keep track of what is happening in the market because the market is
dynamic. To help businesses, there are trend spotters that identify these changes and trends in the market.
Let’s start!

Content Stand- Performance

The learners demon-
strate an understanding The learners shall be able
of the marketing opportunity to design their own buy-
analysis and consumer analysis ing decision process.

Most Essential Learning

Remember that upon ac-
complishing the module,
you should be able to distin-
guish strategic marketing
from tactical marketing.

Performance Essential Con-

 Strategic

Create a flow chart of your buy-  Tactical

ing decision process. Based
 Micro and macro
from this, write your realization
about the decision process Environment
you created.
 Bargaining

 Buying behavior

 Consumer market

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UNIVERSITY OF LA SALETTE, INC. Senior High School

A How may I serve you?

I want to know your prior knowledge about Market Opportunity Analysis and Consumer Analysis. List down
three basic reasons for making purchases and three reasons for which consumers do not buy products.

Reasons for making Purchases Reasons for which Consumers do not Buy Products

B Introduction
You and your team may be considering a variety of new business ideas and market opportunities, but not
all of them are worth pursuing. It's important to narrow down your options and make sure you focus on the ones
that have the highest potential for success.
Chasing too many growth initiatives can be dangerous for your business. According to Harvard Business
Review, “an executive team's priority list grows, the company's revenue in fact declines relative to its
peers." However, focusing on a small set of promising initiatives can lead to above-average revenue growth.
A Customer Analysis (or customer profile) is a critical section of a company's business plan or marketing
plan. It identifies target customers, ascertains the needs of these customers, and then specifies how the product
satisfies these needs. A customer analysis can be broken down into a behavioral profile (why your product
matches a customer's lifestyle) and a demographic profile (describing a customer's demographic attributes).
A customer profile is a simple tool that can help a business to understand better the current and potential
customers, so they can increase sales and grow their business. Customer profiles are a collection of information
about customers that help determine why people buy or don't buy a product. Customer profiles can also help
develop targeted marketing plans and help ensure that products meet the needs of their intended audience.

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UNIVERSITY OF LA SALETTE, INC. Senior High School

C Discussion
Most Essential Learning
Remember that upon ac-
complishing the module,
you should be able to distin-
guish strategic marketing
from tactical mar-

En-
What are the brands that you really patronize?

How often do you buy those products?

Ex-
How do you assess yourself as a consumer? List down at least five factors that you consider in choosing different products.

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UNIVERSITY OF LA SALETTE, INC. Senior High School

Ex-
Strategic Marketing VS. Tactical Marketing
Marketing strategy is commonly referred to as a core strategy. It is composed of market Segmentation, Targeting,
and brand Positioning—collectively known as STP. Marketing tactics, on the other hand, are more popularly known as the
4Ps of marketing. The 4Ps are composed of product, price, place and promotion. They are put together to influence
consumers to buy the company’s brand rather than the competitions. For clarity, the comparison between strategic
marketing and tactical marketing is shown below:

Strategic Marketing Tactical Marketing

Concept Thought process (Big Idea—Big Picture) Taking action near term (How To)
Purpose To attain the company’s objectives To execute the strategy
Activities Understanding the: Promoting and selling to consumers
 Environment
 Industry
 Customers
 Competition
 Brand
Key Concepts STP (Segmentation—Targeting— Marketing Mix (4Ps for products or 7Ps
Positioning) for services, to include people, process
and physical environment)
Time Table Timeless Time-bound
Absence of the other Side Too much talking—nothing gets done Blind Action—Doing without having a
plan

As discussed in Chapter 1, marketing is about value creation (serving customers better than competition) and value
cap- ture (profit maximization). In order to do that, marketers fol-
low a Mission Identification Objective Setting marketing pro-
cess as Situation Analysis shown below:

Strategy Evaluation and Marketing Strategy

Control Development

STEP 1: Mission Identification

The company’s mission statement is articulated. A mission statement defines what an organization is, why it exists, its
reason for being, its primary customers, and the products and services it produces, and its geographical area of operation.
STEP 2: Situational Analysis
This step assesses and evaluates the market, customer, competitors, and the company’s internal and external environment.
The objective is to identify the company’s strengths and weaknesses, (SW) as well as the available opportunities and possi-
ble threats (OT).
STEP 3: Objective Setting
Objectives are marketing targets that are specific, measurable, attainable, and realistic and time bound (SMART).
STEP 4: Marketing Strategy Development
The development of a marketing strategy involves market segmentation, identification of target market, positioning,
selection of broad marketing strategies, and the translation of strategies into action plan.
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 Cost Leadership - this strategy is primarily for achieving low cost leadership among industry competitors. It can be
achieved through low cost supply contracts, overhead expense control, economies of scale, and comprehensive
cost-cutting efforts, among others.
 Differentiation - it seeks to achieve superior product attributes and features that are different from the industry competitors.
This results in pronounced consumer preference for the company products.
 Focused - efforts are concentrated on a relatively small but profitable market. The development of products and services
primarily ensures that the needs and wants of this market are addressed and that satisfaction is provided.

These strategies may be implemented through the following subcategories of strategies:

 Forward integration – involves gaining ownership or increased control over distributors or retailers.
Example: The Philippines Daily Inquirer buying 418 newspaper stands in Metro Manila
 Backward Integration – involves gaining ownership or increased control over suppliers.
Example: Nestle Philippines purchasing a cow farm and dairy facility in General Santos City.
 Horizontal Integration - involves purchase of or increased control over competitors.
Example: Pizza Hut buying a controlling interest in Shakey’s
 Market Penetration - the objective of this strategy is to increase market share of current products or services in current
markets through greater and more intensive marketing efforts.
Example: Krispy Kreme launching P56 million advertising campaign directed at current customers.
 Market Development - involves the introduction of existing products or services into a new geographical area
or market.
Example: the University of Santo Tomas opening a campus in Cebu City.
 Product Development - involves the improvement of current products or services or the development of new
products with the purpose of increasing sales.
Example: Coca-cola introducing Coke in tetra pack.
 Related Diversification - involves introducing new but related products or services.
Example: Motolite introducing solar powered automotive batteries.
 Unrelated diversification - involves introducing new but unrelated products or services.
Example: Banco de Oro opening a chain of BDO ice cream parlors.
 Retrenchment - involves halting or reversing declining sales and profits through cost or asset reduction.
Example: Shoemart selling off its hardware department and laying off 847 of is department store employees.
 Divestiture - this involves selling a division or part of an organization.
Examples: JG Summit selling Cebu Pacific
 Liquidation - this involves selling all of a company’s assets, in parts or as a whole, for their tangible worth.
Example: SM Prime Holdings selling all its companies and the Sy Family retiring from the business.

STEP 5: Strategy Evaluation and Control

The terms ‘evaluation’ and ‘control’, although almost always appearing in tandem, are not necessarily the same thing.

Through the process of strategic evaluation and control, the strategists attempt to answer set of questions, as below.

 Are the premises made during strategy formulation proving to be correct?

 Is the strategy guiding the organization towards its intended objectives?

 Are the organization and its managers doing things which ought to be done?

 Is there a need to change and reformulate the strategy?

 How is the organization performing?

 Are the time schedules being adhered to?

 Are the resources being utilized properly?

 What needs to be done to ensure that resources are utilized properly and objectives met?
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UNIVERSITY OF LA SALETTE, INC. Senior High School

Tactical Marketing
Complementing the strategic marketing process, the tactical marketing process determines the means or tactics to im-
plement the strategies. It involves the identification of specific activities, timetables, responsibilities, and budgets and their
implementation. The objective is to ensure that the strategies are implemented successfully.

Activity Timetables
Marketing Strategies Action Plans/Tactics Marketing Activities

Monitoring & Control Activity Budgets Responsibility/Accountability

For example, a company de-

termines to increase sales by 10% by the end of the calendar year. After careful consideration, it selects market pene-
tration as its strategy. The current task is to identify the tactics, or activities that it should undertake to ensure that the strate-
gy will be successful. The firm may decide to increase selling prices. It may opt to do intensive promotions, or it may

The Marketing Environment

Marketing environment includes the forces outside of marketing, consisting of macro-environment (national issues)
and micro-environment (company issues), both of which can influence marketing decisions. For macro-environment, a
popular framework are PESTLE and Industry Analysis. For micro-environment, a popular framework is the 6Cs.
Macro-Environment
Macro Analysis Tool 1: PESTLE Analysis
For the organizational factors in macro-environment, one popular type of macro-environment analysis is called
PESTLE. These external forces can offer opportunities or threats, and affect how firm can start and/or stay in a relation-
ship with their customers.
1. Political Factor - how and to what degree government policies affect the economy.
Tax Policy Political Stability
Labor Law Health
Environmental Law Education
Trade Restrictions Infrastructure
Tariffs
2. Economic Factors – The impact of a country’s financial indicators
on how busi- nesses operate and make decisions.
Economic Growth Exchange Rate
Interest Rates Inflation Rate

3. Social Factors– how the demand for a company’s product and how firms should operate are affected by social
demographics, attitudes, and opinions on issues.
Careers Safety
Culture Housing
Education Fashion
Ethics Immigration
Health Diversity

4. Technological Factors– how technological aspects affect innovation, productivity, investment, and cost.
Research and Development Technology Incentives
Automation Rate of Technological Change

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UNIVERSITY OF LA SALETTE, INC. Senior High School

5. Legal Factors– how the laws of a country can affect how companies adopt policies as to its operation, cost structure, and
the demand for its products.
Discrimination Law Consumer Law
Antitrust Law Employment Law
Health and Safety Law
6. Environmental Factors - ecological and environmental aspects that can affect businesses such as insurance, tourism, and
farming.
Weather
Climate & Climate Change
Macro Analysis Tool 2: Industry Analysis
Five interacting forces that affect the profitability of an industry. These forces enable firms to identify
competitive pressures (those with high threat) as well as opportunities in the marketplace. The force that has the
most impact in the industry of the firm should be watched closely, with one’s corporate and marketing strategy
formulated accordingly. The framework is unique because profit is affected not just by competitive activities but
also by the extent of bargaining power of suppliers and customers.
1. Threat of New Entrants - Your position can be affected by people's ability to enter your market. So, think about how
easily this could be done. How easy is it to get a foothold in your industry or market? How much would it cost, and
how tightly is your sector regulated?
If it takes little money and effort to enter your market and compete effectively, or if you have little
protection for your key technologies, then rivals can quickly enter your market and weaken your position. If you
have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

2. Threat of Substitutes - refers to the likelihood of your customers finding a different way of doing what you do. For ex-
ample, if you supply a unique software product that automates an important process, people may substitute it by
doing the process manually or by outsourcing it. A substitution that is easy and cheap to make can weaken your
position and threaten your profitability.

3. Rivalry among Existing Competition - looks at the number and strength of your competitors. How many rivals do you
have? Who are they, and how does the quality of their products and services compare with yours?

Where rivalry is intense, companies can attract customers with aggressive price cuts and high-impact
marketing campaigns. Also, in markets with lots of rivals, your suppliers and buyers can go elsewhere if they feel
that they're not getting a good deal from you.

On the other hand, where competitive rivalry is minimal, and no one else is doing what you do, then
you'll likely have tremendous strength and healthy profits.

4. Bargaining Power of Customers - Here, you ask yourself how easy it is for buyers to drive your prices down. How many
buyers are there, and how big are their orders? How much would it cost them to switch from your products and
services to those of a rival? Are your buyers strong enough to dictate terms to you? .

When you deal with only a few savvy customers, they have more power, but your power increases if you
have many customers.

5. Bargaining Power of Suppliers - This is determined by how easy it is for your suppliers to increase their prices. How
many potential suppliers do you have? How unique is the product or service that they provide, and how expensive
would it be to switch from one supplier to another?

The more you have to choose from, the easier it will be to switch to a cheaper alternative; but, the
fewer suppliers there are, and the more you need their help, the stronger their position and their ability to charge you
more, that can impact your profit.

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UNIVERSITY OF LA SALETTE, INC. Senior High School
Micro-Environment
As discussed in the preceding section, marco-environment deals with national issues while micro-environment deals
with company issues. In this section, we expand our analysis from the 3Cs of marketing namely; Company, Customers, and
Competition, to add three more variables namely; Channel, Complementors, and Communities. This makes up the 6Cs of
micro-environment analysis. Note that the goal is to find opportunities to win in the marketplace.

1. Company - think about a value chain within a company where one department supplies another department materials,
information and relationships so a company can be both efficient and effective in creating value to their customers.
2. Customers - There are five types of customers that have to be considered. Let’s take rice as an example:
 Consumer Markets - individual buyers who buy for their own use. Donya Mria rice is an example.
 Business Markets - organizational buyers who buy as input to their own products. Rice sold to the Jollibee Food
Group becomes a business market.
 Government Markets - government agencies that buy to produce public services. Rice bought by Department of
Social Welfare and Development (DSWD) that are then given to calamity victims is an example.
 International Market - buyers are from different countries. Taking advantage of wider flat lands, 50% lower
production cost and preferential zero tariff for European countries in Myanmar, SL Agritech intends to plant their
soft and sticky rice in Myanmar and export to the Philippines and elsewhere.
 Reseller Markets - organizational or individual buyers who buy for resell at a profit without adding anything to
the product. An example would be retailers like Robinson supplying companies as part of employee benefits.
3. Competition - the two types of competition that need to be considered from customer’s perspective are:
 Direct Competition - similar offerings from the perspective of the customers.
 Indirect Competition - offerings deemed as substitutes to another product or service like chocolate vs. flower on
Valentine’s Day, or watching a movie vs. walk in the park to spend two hours of discretionary time.
4. Channel – Individuals or companies who buy and resell the company’s products to final buyers. Examples are:
 Retailers like Waltermart.
 Direct sellers like Herbalife and Waters Philippines, including their distributors.
 Home TV shopping as seen on TV.
 Online retailers like Lazada and Zalora.
5. Complementors – Individual or businesses who can help an organization understand, promote and/or sell its products or
services.
 Physical Distribution – companies or individuals who store and transport the company’s product to final buy-
ers.
 Marketing Agencies – companies or individual who help understand and/or promote (such as advertising
agencies or manpower agencies) the company’s products to final buyers.
 Financial Intermediaries – companies or individuals who help give credit for the company’s products to final
buyers. An example is BPI Family Bank, which finances entrepreneurs who would like to buy a franchise.
6. Communities – Public stakeholders where the organization needs to be sensitive to their public opinions.
 Media Public – mass media or social media, including columnist and bloggers, who can publish articles or
create social media post influencing customer’s opinion.
 General Public – attitude or change in attitude that can affect a company’s sales volume. For instance, tattoos,
once associated with prisoners or street gangs, are more acceptable as forms of fashion or self-expressions.
 Local Public – neighborhood and community groups who can question a company’s effect on the local area. An
example is opening a bar selling beer and alcohol near a school.
 Citizen-action publics – environmental or health groups can question the action of a company publicly. For
instances, some companies producing genetically modified food have experienced groups rallying in front of
their office.
 Employees – individuals who are employed within an organization. Sexual discrimination or sexual harassment
of employees or bosses is an example.
 Suppliers – organizations or individuals who are employed to help an organization produce products or get
specific jobs done. For instance, suppliers may reveal they were asked to deliver products with substandard
specifications.
In reality, firms usually sequence their analysis from macro-environment to micro-environment to find if they have
the opportunity or right to win in the marketplace.

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Marketing Research
To formulate the marketing mix, the marketer needs to have a strong understanding of its target market. Unless
the marketer is a seasoned professional and industry expert, it would be dangerous to formulate a marketing strategy
without feedback from customers and consumers, as personal opinions may either be wrong or no longer updated. Market
research is therefore an indispensable tool for marketers to know what needs to be done, albeit creativity will still be
needed in terms of how to communicate and execute the strategy.
It is a function responsible for acquiring and evaluating market and consumer-based information for decision
making and determination of marketing strategic direction.
A. Types of Marketing Research
 Observational – social phenomenon is observed in its natural setting, and observations can be made any one time or
regularly within a period of time.
 Experimental – includes laboratory experiments and test marketing. Results from two sets of samples are compared.
 Qualitative – includes focus groups, im depth interviews, and projective techniques. This type of research uses only a
small number of respondents. Thus, results are not reflective of the general population.
 Quantitative – one example of this type of research is the use of surveys. It is used to test observations. The number of
respondents is relatively large and randomly selected, and the results are generally reflective of the population.
A. Steps in Marketing Research

Steps in Marketing Research How to do it? Example

1. Define your research problems or This gives focus and clarity on why you Know the voice of channel customers,
issues are doing market research and how data specifically pain points and context of
will be used in making decisions. pain points of distributors.
2. Choose your market research Determine if you need qualitative and/ In-Home visit plus in-depth interview
approach or quantitative approach, then of distributors
determine the specific type of
marketing research you will use to
attain your research goals.
3. Create your research design Draft and test the questions to be asked Ask about their dislikes as well as their
to the right sampling target and plan wishlists. Subdivide respondents via
how data will be analyzed. new distributors, lapsed distributors and
top performing distributors.
4. Collect the Data This involves having the invited One-on-one interview.
respondents answer your research
completely.
5. Interpret the Data Cluster and convert the “what” to “so Lapsed distributors lack confidence.
what” to gain insights or new truths. They quit after experiencing a sales
rejection even after passing their sales
training.
6. Recommend Solutions Convert “so what” to “now what”, Offer demo assistance and coaching to
meaning, the actions that should be lapsed distributors who easily get
taken by the target user/s. It may be discouraged.
possible to recommend different actions
for different users.

For a detailed understanding of marketing research, the book “User-friendly Marketing Research”
by Dr. Eduardo Roberto is highly recommended.

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UNIVERSITY OF LA SALETTE, INC. Senior High School
Buying Behavior
There are other factors other than the marketing mix and PESTLE analysis that help consumer choose their what, when,
and how much to buy. Consumer markets, where organizations sell to end-users, and business markets, where organizations
sell to resellers or to support their own company’s operations, have similarities as well as differences.
Characteristics Influencing Buyer Behavior in Consumer Markets
Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their
wants. There are different processes involved in the consumer behavior. Initially, the consumer tries to find what commodities
he would like to consume, then he selects only those commodities that promise greater utility. After selecting the
commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the
prevailing prices of commodities and takes the decision about the commodities he should consume.
1. Cultural Factors
Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.
 Culture
Basically, culture is the part of every society and is the important cause of person wants and behavior. The
influence of culture on buying behavior varies from country to country, therefore, marketers have to be very careful
in analyzing the culture of different groups, regions or even countries.
 Sub-culture
Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc.
Marketers can use these groups by segmenting the market into various small portions. For example, marketers can
design products according to the needs of a particular geographic group.
 Social Class
Every society possesses some form of social class which is important to the marketers because the buying
behavior of people in a given social class is similar. In this way, marketing activities could be tailored according to
different social classes. Here, we should note that social class is not only determined by income but there are various
other factors as well such as: wealth, education, occupation etc.
2. Social Factors
Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family,
role and status.
 Reference Groups
Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies
across products and brands. For example, if the product is visible such as dress, shoes, car etc. then, the influence of
reference groups will be high. Reference groups also include opinion leader (a person who influences other because
of his special skill, knowledge or other characteristics).
 Family
Buyer behavior is strongly influenced by the member of a family. Therefore, marketers are trying to find the roles
and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife,
then the marketers will try to target the women in their advertisement. Here, we should note that buying roles change
with change in consumer lifestyles.
 Roles and Status
Each person possesses different roles and status in the society depending upon the groups, clubs, family,
organization etc. to which he belongs. For example, a woman is working in an organization as finance manager. Now
she is playing two roles, one of finance manager and other of mother. Therefore, her buying decisions will be
influenced by her role and status.
3. Personal Factors
Personal factors can also affect the consumer behavior. Some of the important personal factors that influence the buying
behavior are: lifestyle, economic situation, occupation, age, personality and self concept.
 Age
Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that consumers change
the purchase of goods and services with the passage of time. Family life-cycle consists of different stages such young
singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage.
 Occupation
The occupation of a person has significant impact on his buying behavior. For example a marketing manager of
an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase
rugged work clothes.

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UNIVERSITY OF LA SALETTE, INC. Senior High School
 Economic Situation
Consumer economic situation has great influence on his buying behavior. If the income and savings of a customer
is high then he will purchase more expensive products. On the other hand, a person with low income and savings will
purchase inexpensive products.
 Lifestyle
Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle refers to the way
a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer
interests, opinions, activities etc. which his whole pattern of acting and interacting in the world.
 Personality
Personality changes from person to person, time to time and place to place. Therefore, it can greatly influence the
buying behavior of customers. Actually, personality is not what one wears; rather it is the totality of behavior of a man
in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc.
which can be useful to determine the consumer behavior for particular product or service.
4. Psychological Factors
There are four important psychological factors affecting the consumer buying behavior. These are: perception,
motivation, learning, and beliefs and attitudes.
 Motivation
The level of motivation also affects the buying behavior of customers. Every person has different needs such as
physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing
while others are least pressing. Therefore, a need becomes a motive when it is more pressing to direct the person to
seek satisfaction.
 Perception
Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is
called perception. There are three different perceptual processes which are selective attention, selective distortion and
selective retention. In case of selective attention, marketers try to attract the customer attention. Whereas, in case of
selective distortion, customers try to interpret the information in a way that will support what the customers already
believe. Similarly, in case of selective retention, marketers try to retain information that supports their beliefs.
 Beliefs and Attitudes
Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up
brand image and affect consumer buying behavior, therefore marketers are interested in them. Marketers can change
the beliefs and attitudes of customers by launching special campaigns in this regard.

Five Steps in Consumer’s Buying Decision Process

Step 1: Problem recognition (Why do I need to make this purchase?)
Step 2: Information Search (Where do I get my information relevant to my need?)
Step 3: Evaluation of Alternatives (What are available attributes and how do I prioritize these attributes, including
brand image?)
Step 4: Purchase decision (What will I buy (product, brand), from whom (seller), when and how much (price and quantity)?).
Step 5: Post purchase behavior (how do I feel after using the product or service?)

Consumer Buying Behavior Model

Consumer Decision
PESTLE Stimuli Marketing Stimuli Buyer’s Characteristics Buyer’s Decision
Process
 Political 4Ps for Product  Cultural  Problem Recog-  Category
nition
 Economic  Product  Social  Product
 Information Search
 Social  Price  Personal  Brand
 Evaluation of Al-
 Technological  Place  Psychological ternatives  Channel
 Legal  Promotion  Purchase Deci-  Vendor or Sales
7Ps for Service sion Representative
 Environmental
 People  Post-Purchase De-  Timing
cision  Quantity
 Process
 Physical  Payment
Evidence Method

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UNIVERSITY OF LA SALETTE, INC. Senior High School
Market Segmentation
- It is the process of identifying the various segments of a company’s particular market.
The Advantages of Market Segmentation
 It forces the marketer to be aware of realities in the market
 It provides clues in the design of products and marketing programs that will reach the prospective customers.
 It can help identify opportunities for new product development.
 It can help improve the strategic allocation of marketing resources.

Segmentation Strategies
 Concentration or single-segment strategy – refers to the long term decision of the company to deal only with a
particular segment of the market.
 Multi-segment strategy – it calls for providing products or services to two or more segments of the target market.

Bases for Market Segmentation

 Geographic – refers to dividing the market into different units like nations, regions, provinces, cities, towns, or
barangay.
 Demographic – refers to dividing the market into segments on the basis like age, sex, family size, family life cycle,
income, occupation, education, religion, race, nationality.
 Psychographic – refers to the classification of buyers or consumers by some psychological characteristics they possess
in common. They may be grouped according to social class or lifestyle.
 Behavioral – refers to the groupings of buyers on the basis of their knowledge, attitude, use, or response to a product. It
may be segmented according to various categories namely: purchase occasion, benefits sought, user status, usage rate,
loyalty status, readiness stage and attitude toward product.

Elabo-
Some companies market their products without identifying their target market first. After several months of
operation, they profile their customers and classify them geographically, demographically, and psychographically. The most
recurring profile of customers is identified as the target market. Is the whole process be considered as workable? Why or
why not? Use the space provided below for your answer.

ANSWER:

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UNIVERSITY OF LA SALETTE, INC. Senior High School

Evaluate
MUTIPLE CHOICE: Choose the best answer. Write the LETTER of the answer on the answer sheet provided.
1. What presents in very concise manner vital information contained in the marketing plan such as its
marketing objectives, strategy recommendations, marketing budget, projected sales, and profitability.
A. Study Background B. Marketing Obejctives C. Executive Summary D. The Market
2. In setting your goal, it must be SMART, what does letter S mean?
A. Specifically B. Special C. Specific D. Speculate
3. In setting your goal, it must be SMART, what does letter M mean?
A. Measurement B. Main C. Measurable D. Mainly
4. In setting your goal, it must be SMART, what does letter A mean?
A. Achievable B. Attainable C. Appearance D. Agreement
5. In setting your goal, it must be SMART, what does letter R mean?
A. Realistic B. Reachable C. Respect D. Rigorous
6. In setting your goal, it must be SMART, what does letter T mean?
A. TPLEX B. Time consuming C. Time bound D. Time is Gold
7. There are three categories of Marketing Strategy Development; Differentiation, Focused and
______________?
A. Cost Maniac B. Cutting Cost C. Cost Leadership D. Cost Motivator
8. What is the last step in the Marketing Research Process?
A. Data Collection B. Data Analysis C. Preparation and Presentation D. Data Evaluation
9. Which includes forces that are seen within the company?
A. Macroenvironment B. Marketing C. Market D. Microenvironment
10. Which of the following seeks to establish a clear and concerted direction for all marketing activities of
an organization?
A. Tactical Marketing B. Strategic Marketing C. Action Plan D. none of the above

MATCHING TYPE: Match the phrases in column A with the words in column B by writing the
LETTER of the answers on the space provided.
Answer COLUMN A COLUMN B
11. Pizza Hut buying a controlling interest in Shakey’s A. Forward Integration
12. MAPUA opening a campus in Batangas B. Backward Integration
13. Coca-cola introducing Coke in tetra pack C. Horizontal Integration
14. JG Summit selling Cebu Pacific D. Market Penetration
15. Phil. Daily Inquirer buying 500 newspaper stands in Isabela E. Market Development
16. Motolite introducing solar powered automotive batteries F. Product Development
G. Related Diversification
17. BDO opening a chain of BDO tapsilogan
H. Unrelated Diversification
18. Starbucks launching a P45 million advertising campaign directed at I. Retrenchment
customers in Isabela J. Divestiture
19. Acer introducing a pocket size laptop K. Liquidation
20. SM Prime holdings selling all its companies to Mr. Pasardan and the
Sy family retiring from business.
21. Xentro mall laying off 50 store employees
22. Apple making product improvements by releasing Iphone 2.0
23. Gerry’s kwek-kwek opening a branch in Cebu City
24. Nestle Phil. Purchasing a cow farm and daily facility in Nueva Ecija.
25. Yellow Cab bought the Green Cab.

VENN DIAGRAM: Compare and contrast Strategic Marketing and Tactical Marketing. Write
your answer on the answer sheet provided. (15 points)

22 PRINCIPLES OF MARKETING by Glenn Mark M. Pasardan, LPT

UNIVERSITY OF LA SALETTE, INC. Senior High School

D Performance Task

Create a flow chart of your buying decision process. Based from this,
write your realization about the decision process you created.

Criteria:

Correctness 25%

Cleanliness 25%

Completeness 25%

Creativeness 25%

E Summary
This unit helped you to understand the difference between a consumer and
business market. It covers the factors that influence the behavior and relevant con-
cepts.
It is difficult for the businesses to keep track of what is happening in the
market because the market is dynamic. To help businesses, there are trend spotters
that identify these changes and trends in the market.
Marketers must look outside of the firms to consider the effect of PESTLE
Analysis to their marketing mix. They can then look at the industry they operate to
understand where profitability can be compromised or grown. Diving deeper into
why industry are winners and why industry losers are losers, key factors for suc-
cess are used to understand the existing winning variables of the industry.
Finally, the 3Cs of marketing is expanded into the 6Cs in order to analyze
opportunities, as well as what may affect the company’s operations if attention is
not given to one of the 6Cs. Strong sense making skills are required to analyze
these macro and micro-environment.
Having this knowledge as a background will make it easier for a marketer to
do research about the consumer and its behavior.

23 PRINCIPLES OF MARKETING by Glenn Mark M. Pasardan, LPT

UNIVERSITY OF LA SALETTE, INC. Senior High School

F Answer Sheet
NAME: STRAND and SECTION:

HOW MAY I SERVE YOU? I want to know your prior knowledge about Market Opportunity Analysis and
Consumer Analysis. List down three basic reasons for making purchases and three reasons for which consumers
do not buy products.
Reasons for making Purchases Reasons for which Consumers do not Buy Products

EVALUATE:
MUTIPLE CHOICE: Choose the best answer, write the LETTER of your answer below.
1. 2. 3. 4. 5.

6. 7. 8. 9. 10.

MATCHING TYPE: Match column A with column B by writing the LETTER of the answers on the
space provided below.

11. 16. 21.

12. 17. 22.

13. 18. 23.

14. 19. 24.

15. 20. 25.

24 PRINCIPLES OF MARKETING by Glenn Mark M. Pasardan, LPT

UNIVERSITY OF LA SALETTE, INC. Senior High School
VENN DIAGRAM: Compare and contrast Strategic Marketing and Tactical Marketing.
Write your answer below. (15 points)

25 PRINCIPLES OF MARKETING by Glenn Mark M. Pasardan, LPT

UNIVERSITY OF LA SALETTE, INC. Senior High School

F Answer Sheet
NAME: STRAND and SECTION:

Performance Task:
FLOW CHART:

REALIZATION:

26 PRINCIPLES OF MARKETING by Glenn Mark M. Pasardan, LPT