Why do we need a marketing plan? VI.

Strengths and Weaknesses

Marketing planning helps you develop products and VII. The Market
services in your business that meet the needs of your A. Market Size
target market. B. Market Needs
C. Market Trends
Good marketing helps your customers understand why VIII. Marketing Objectives
your product or service is better than, or different from, IX. Marketing Strategies
the competition. A. Product/Service Strategy
1. Target market
Developing a marketing plan requires research, time and 2. Brand positioning
commitment, but is a very valuable process that can B. Pricing strategy
greatly contribute to your business success. C. Distribution strategy
D. Advertising and promotion strategy
Marketing is for all business - big or small X. Tactical Implementation
Without customers, your business would not survive. To XI. Marketing Budget
attract and retain customers, your business needs to XII. Feedback and Control
understand the value of marketing. XIII. Financial Projections

It's important to have a marketing plan, but it's just as CHAPTER 1: MARKETING PRINCIPLES AND
important to keep it up to date STRATEGIES
A marketing plan is not a document you create once and
store in your bottom drawer. It's a living guide that you Marketing
should develop as your business grows and changes. The American Marketing Association defines marketing
as “the activity, set of institutions, and processes for
Set yourself a reminder to review your marketing plan creating, communicating, delivering, and exchanging
regularly. offerings that have value for customers, clients,
partners, and society at large.”
You don't have to start with a blank sheet of paper
To write an effective marketing plan you'll need The Philippine Marketing Association defines marketing
discipline, time and focus. The process can seem as a “science and a profession guided principally by the
challenging, but it's also rewarding, creative and even universal principles of ethics, corporate citizenship and
fun! social responsibility.”

WORKSHOP AND PREPARATION OF MARKETING PLAN Goals of Marketing

Below is a brief outline of mini-marketing plan: The goals of marketing can be summarized as follows:
I. Executive Summary
II. Study Background 1. Understand the market and its consumers, and
A. Brief history of the company satisfy their changing needs and wants.
B. Mission and vision
C. Product/service offerings 2. Introduce and innovate products and services
III. Macroenvironmental Analysis that improve human condition and the quality
A. Economic of life.
B. Politicolegal
C. Sociocultural 3. Design and implement effective customer-
D. Demographic driven marketing strategies.
E. Technological
F. Natural 4. Develop marketing programs that deliver
IV. Opportunities and Threats superior value to consumers.
V. Microenvironmental Analysis
A. The company 5. Build and maintain mutually beneficial and
B. Suppliers profitable customer relationships.
C. Marketing intermediaries
D. Customers 6. Capture customer value to create profits.
E. Competition
F. Publics
 7. Promote value transactions with full regard to
According to Use: According to
society’s well-being. Differentiation:

The Marketing Process Consumer goods Undifferentiated goods

Industrial goods Differentiated goods
The Situation Marketing Strategy
According to Durability: According to Type:
Analysis Formulation
Consumables Convenience
Microenvironmental Market Semi-Durable Shopping goods
Macroenvironmental Segmentation Durable Goods Specialty goods
The Market Target Market Unsought goods
Customer Selection
Competition Value Proposition
According to Use:

Consumer goods - are goods that are purchased for

Implementation and Marketing Mix consumption. Examples of these are soft drinks,
Control Decisions hamburgers, candy, cigarettes, and other similar items.

Implementation Product Industrial goods - are purchased in order to make

Monitoring Price other goods, to serve as a raw material or input in the
Marketing mix Place
production of other goods. Typical examples are
adjustment Promotion
aluminum, which are used to manufacture kitchen
equipment and cans or electronic cables, and wires, which
Products, Services, and Experiences serves as electrical conducts for home appliances, among
What do organizations market? As consumers, we are others.
most familiar with the marketing of goods and services.
Other than these, however, marketing organizations According to Differentiation:
also market experiences, ideas, advocacies, and even
personalities. Undifferentiated goods - are products whose physical
characteristics are so identical, that it would be difficult,
Marketing Products if not impossible, to distinguish one purchased from one
Products or goods are physically tangible items. As such, vendor or another. Most undifferentiated goods are
they are generally perceivable by the human senses and products that are sourced from nature.
can, therefore, be inspected prior to purchase.
Differentiated products - are varied in their
Products Levels characteristics and features that they are readily
distinguishable from one another. Example is Vehicle
brand.
Credit Items
AUGMENTED PRODUCT Installment Branding – provides a product or service a unique
Installation
FORMAL PRODUCT distinguishing name, logo, symbol, or image which is
Warranty
used to differentiate it from other similar products and
CORE/GENERIC Service
services.

When a company decides to brand its products, it must

recognize that there are two responsibilities that
Featur accompany branding:
es
Stylin ● All Products carrying the brand must have
g quality consistency
● The brand must be advertised and promoted

Classifications of Products/Goods Brand Equity - Once the customer begins to attach value
Products that are marketed can be generally classified to the brand than to the product itself.
according to use, differentiation, type, and durability.
According to Durability:
 1. Intangibility – Physical products are tangible.
Durability refers to the length of time a consumer can As such, they can be inspected by consumers
derive benefit from the product or good purchase. prior to purchase. On the other hand, services
are intangible.
Consumable - is a product whose benefit can only be
used by a consumer for only a short period of time, 2. Variability – Because services are performed by
sometimes only a few minutes. This includes foods and human beings, no service provider can render
drinks. the same service exactly the same way every
single time.
Semi-durables - provide benefits to the consumer for a
longer period of time, usually spanning several months. 3. Inseparability – because services are rendered
Semi durables are manufactured for long term use by by people, the service provider must be present
consumers. Examples of semi-durables are clothes, shoes, each and every time the service is provided.
belts and jackets, etc. Services are rendered and consumed
simultaneously.
Durables - are products that are manufactured to last a
long time. They are capable of providing consumers with 4. Perishability – unconsumed services cannot be
years of beneficial use. Durables are usually expensive, stored or warehoused.
and many, therefore, require an augmented product to
market them effectively. Examples of durable goods are Hierarchy of Goal, Objective and KPIs (Key Performance
automobiles, houses, major household appliances, etc. Indicator)

According to Type: 1. Marketing Goals

are broad aims used to shape strategy. They
Convenience goods - are products that are purchased describe how marketing will contribute to the
frequently, are usually inexpensive, and do not require business in key areas of growing sales,
much purchase effort and evaluation. Examples are communicating with audiences and saving
newspapers, gum, and candy. money.

Shopping goods - are purchased less frequently than Developing Marketing Goals - Considerations:
convenience foods, are relatively more expensive and 1. Attainability – goals must be realistic so
require some amount of information search and that important parties who will be
evaluation prior to purchase. Consumers of shopping reaching must see each goal as
goods consider features, evaluate, attributes and reasonable.
compare prices. Examples of shopping goods are shoes,
clothes, and handbags. 2. Consistency – set goals that are
consistent with one another.
Specialty goods - are goods that require unusually large
effort on the part of consumer to acquire consumers are 3. Comprehensiveness – goals of each
usually willing to travel great distances to where these functional area should relate to the
goods can be purchased. Example are branded luxury organization’s goals.
merchandise, work of art, automobiles and homes.
4. Intangibility – goals are not strategies,
Unsought goods - are goods that consumers seldom objectives, and even tactics; they are
actively look for, and are usually purchased for outcomes the organization wishes to
extraordinary reasons, such as fear or adversity, rather realize.
than desire. Examples are investment, memorial plans,
and life insurance. 2. Marketing Objectives
are SMART targets for marketing which can be
Marketing Services used to track performance against targets. SMART
is:
Services are generally considered more difficult to
market due to its four major attributes: ● Specific – Objectives should be well-defined,
and clear to other team members and to
 stakeholders who also understand the program Market - the group of individual or organizational
or plan. customers who have both the willingness and financial
capability to purchase a particular product or service.
● Measurable - involves selecting what will be Market demand - is the total demand of all potential
measured to show improvement, impact or customers for a specific product/service over a period in
success. a specific market area.

● Actionable - Objectives should be within reach Measuring Market Demand

for your team or program, considering available Market demand can either be primary or selective.
resources, knowledge and time.
● Primary demand refers to the total demand for
● Relevant - Objectives should align with a all brands of a particular product or service. It is
corresponding goal. Consider if and how sometimes referred to as total industry demand.
successfully completing an objective will be
relevant to achieving the goal. ● Selective demand is the demand for a specific
brand of product or service.
● Time-bounded - Objectives should be
achievable within a specific time frame that isn't Potential, Latent, and Current Demand.
so soon as to prevent success, or so far away as
to encourage procrastination. ● Potential demand is defined when there is no
demand yet for a particular product/service, but
Hierarchy of Goal, Objective and KPIs there exists a market with sufficient financial
capability to purchase.

● Latent demand results when customers in a

Vision
market are unable to satisfy specific desires
Goals because there exists no products/service in the
market that can satisfy them. It can also result
Objectives when the product/service is available, but is
priced beyond their reach.
CSFs and KPIs
In order to satisfy latent demand, marketing
Metrics and organizations must either:
● Introduce goods currently unavailable
that are desired by customers.
Marketing KPIs - or Key Performance Indicators are
● Influence and persuade customers to
used to check that the marketing activities of a company
reallocate their expenditures towards
are on track.
the company’s product.
● Offer credit, installment, or similar
CSF - Critical Success Factor
terms to make the product affordable to
customers.
Needs, Wants and Demands

● Current demand is defined as the number of

Consumer needs
people of a particular market at present that
are defined as physiological necessities required for
would actually purchase the product or service
human survival. These universal needs include food ,
offered.
shelter, and clothing.

Competition
Wants
are more psychological, indicating preferences that can
A competitor is any company in an industry or a similar
improve the consumer’ life condition.
industry that offers a similar product or service.

Demand (Market and Market Demand)

Levels of Competition
A firm’s competition can be classified either as a desire,
generic, form, or brand competitor.
Desire “What desire Generic “What do I The Concept of Market Share
Competitors do I want to Competitors want to eat?”
satisfy?”
The effectiveness of marketing strategies in an industry
can be measured using what is referred to as market
Eat Sandwich
share. Market share, expressed in percentage, is the
Text Dimsum
Read Pasta share of a company’s revenues in the total revenues of
Drink Chicken its industry in a particular year.
A ' s Annual Revenue
A ' s Market Share= ×
Total Annual Revenue of A ' s Industry
Form “What kind of Brand “What kind of
Competitors sandwich?” Competitors hamburger Traditional Approaches and Contemporary Approaches
sandwich?”
to Marketing
Chicken Wendy’s
Cheese Mcdonald’s
Traditional Approaches to Marketing
Hotdog Jollibee
Hamburger Burger King Evident up to the late 1960s, traditional approaches in
marketing focused on production methods, product
quality, and effective selling methods as profit drivers in
marketing.
Customer – Perceived Value
Is the quantitative difference between the expected 1. The Production Concept
benefits and costs of a particular product in comparison assumes that customers prefer products that are
to a similar product or service. inexpensive, affordable, and widely available.

Customer – Value Proposition 2. The Product concept

Is a comparison of the benefits offered by a company’s assumes that customers will always prefer and
products to its customer in relation to the amount it is patronize products of high quality.
asking the customer to pay. Customers always ask the
question: what’s in it for mer?” 3. The Selling Concept
emphasizes aggressive selling and promotional
Utility, Value and Satisfaction efforts. It assumes that customers are generally
timid and must be persuaded into buying. The
Utility - refers to the total satisfaction consumers objective is to sell what is manufactured rather
place on a product or service. than manufacture what the market wants.

Value - refers to the value customers place on a product Contemporary Approaches to Marketing
or service. Since consumers have different needs and In contrast, contemporary marketing approaches are
buying capacities, consumers assign varying values on centered on the customer, relationships, and the well-
the same product or service. Like the benefits they will being of society.
gain in that product
1. The Marketing Concept
Satisfaction - is the measure of how well customer considers the needs of both the customer and
expectations from a purchased product or service have the product offered.
been met.
2. The Relationship Marketing Concept
To ensure maximum customer value and satisfaction, believes what all marketing activities are for the
marketers must: purpose of establishing, maintaining, and
strengthening meaningful long term
● Balance product or service quality and price. relationships with customers.

● Establish consistency among product 3. The Societal Marketing Concept

availability, level of customer service, and this concept is similar to the marketing concept.
efficiency. However, beyond providing solutions to
customers, the societal marketing concepts go
● Create a buying atmosphere and deliver further to include considerations that protect
purchase convenience.
 the customers’ well-being and interests, as well ● Collecting customer feedback on service quality
as the interests of the environment and society. regularly.

● Reviewing target accomplishment.

TRADITIONAL CONTEMPORARY
● Identifying customer service weaknesses and
Make standard Customer and connecting them.

Sales and product Target selected Managing Customer Service Differentiation

For physical products, differentiation can be easily
undertaken and protected through patents. This is,
Practice mass Importance on
however, not the case with services.

Get new customers Take care of old and Customer-centered organizations can differentiate
their customer service through:
Serve anyone
Serve profitable
1. The development and training of competent
Concentrate on local customer contact personnel.
markets; venture to Customized

2. designing and implementing a superior service

CHAPTER 2: RELATIONSHIP - CUSTOMER delivery environment and process.
SERVICE
The following are some of the more popular customer
Customer-Driven Marketing service practices in the Philippines:
A customer is a person or organization that transacts
with a businessperson or business organization to buy Customer Service Practice Practicing Organizations
goods or services for monetary or other valuable
consideration. Free delivery Most restaurant and fast food
chains

Customer Service Automated in-home ordering Rustan’s Supermarket, Mercury

is the process of ensuring customer satisfaction with a system Drug

product or service. Customer service can take on many Free gift wrapping/plastic book Rustan’s Department Store, Fully
forms – salesperson assistance, product delivery, jacket Booked
technical advice, help desk, or other means.
Merchandise/document pick-up DHL and other selected courier
services
Customer Service Programs
Free parking Some churches and religious
Retail establishments have realized that customers are
organizations
not only drawn to sores because of their product
offerings and convenient locations, but also by the Valet parking Some hotels and resorts

superior customer services they provide.

Reservations, installment plans Some large department stores,
Managing Customer Service Quality bookstores
Because service is variable, maintaining high levels of
Complimentary refreshments, Most car dealership
customer service quality may be challenging. In order to waiting
ensure the consistency of customer service quality, lounge
organizations conduct strict customer service training
Help desks, touch phone Telecommunication and
and assess periodically how well services are delivered. access,24- hour customer technical firms most utility firms
Companies can best manage customer service quality hotline and telecommunication firm

by:
● Establishing service objectives with specific and
measurable targets. Customer Relationship Management (CRM)
CRM is a process of managing an organization’s
● Committing sufficient organizational resources interactions with current and future customers. This can
towards the achievement of these targets. be done through the use of consumer databases.

Marketing companies create and maintain customer

databases that record and keep the following
x 24 Number of repeat purchases in a year
information: customer names, birthdates, contact
numbers, and email address. Average retention time in months or years
x5
The information progresses to include customer’s ¿ 240,000 Customer lifetime value
buying history and behavior, i.e., what they buy, when
and where they buy, in what quantities and prices, and
their responses to sales promotion efforts. Successful Customer Relationship Management
Strategies
Customer Lifetime Value (CLV) The Following are effective guidelines in the
CLV is the forecasted sales or profits that a company can implementation of customer relationship management:
derive for the entire span of the future relationship with
a particular customer. 1. Adopt the right mindset towards customer
service
The CLV perspective has several distinct implications: if a product improvement is not anymore
● It considers a long-term perspective of a effective, businesses turn to customer service.
company’s relationship with customers in
contrast to a short-term view of “take the 2. Purchase or develop CRM software
customer’s money and run. Through CRM, a company manages a company’s
interaction with current and future customers
● It calculates and compares costs of acquiring with ease.
new customers and keeping old ones.
3. Quantify, Customer acquisition and retention
Acquisition costs - costs for getting new costs
customers; using CLV, the total cost for acquiring or
retaining a customer can be calculated and
Retention costs - costs for maintaining existing determined.
customers.
4. Develop and implement a customer service
● It highlights the importance of market training program
segmentation, with the recognition that some the customers are the life-blood of any business.
customer groups are more profitable than This makes customer service critically
others. important.

CLV can be measured using the formula: 5. Empower Salespersons to make decisions
the salesperson most responsible for sealing the
deal with a customer. A salesperson should be
Customer Lifetime Value
empowered to make immediate decisions while
Average peso value of a sale to a particular with a customer or potential customer.
customer or customer group
6. Establish communication lines between your
x Number of repeat purchases in a year customer and customer contact staff
communication is essential for the CRM
x Average retention time in months or years
strategies, Personalize and humanize the
business and its atmosphere.
¿ Customer lifetime value

7. Shop your competition

Ex: an athlete who spends P2,000 for every visit to a spa Keep track of what competitors are doing in the
and goes to the spa twice monthly for an expected time area of customer service. Adopt their good
period of five years would have a CLV of: practices to stay ahead of the game.
Customer Lifetime Value

2,000 Average peso value of a sale to a particular 8. Keep innovating customer service
customer or customer group never be satisfied with the level of your service.
Try to discover how the organization can make
the experience of customers better.
9. Promote genuine customer service with a
passion
Customers can easily discern if customer service
is insincere. Customer contact personnel must
internalize that the customer is the actual
source of their livelihood.