ENTREP 2ND QUARTER- BEA SERRANO  Act of designing what companies offer

 All about creating certain value on mind of

What is Marketing? costumers
- Creating and accumulating customers.  BRAND POSITIONING
- These are designed to capture a market - Develop a unique selling proposition
- share and defeat competitors.  Overlapping Objectives
- Not just about promotions but also creating  Enterprise perspective
- a target market (identify which customers - address the needs of the chosen target
- should one entertain) market
- Getting the right goods to the right people, Competitive perspective
- Different and distinguishes itself from its
- in the right place, right time at the right price,
competitors
with the right level of communication
Takes the customer’s perspective
profitability (Chartered Institute of Marketing)
- The way customers perceive the product or
* The aim of marketing is to make selling service in mind
unnecessary (Peter Drucker)
MVP (Main Value Proposition or Unique Selling
Proposition)
- A value proposition is a statement that
answers the why someone should do
business with you
- Talks about the brand you are

PRODUCT
- Tangible good or intangible services that the
enterprise offers to the customers in order
to satisfy their needs and to produce their
The Cumulative Function of Marketing is to: expected results
a. Create value (make awareness to your
audience) GENERAL TYPES OF PRODUCTS:
b. Communicate (through advertisements or Breakthrough Product
personal endorsements) - New performance benefits, innovative, new
c. Deliver (seal the deal)
in the market, never been introduced
Differentiated Product
8P’s of Marketing
- New space in the mind of the customer
1. Product
different from the space occupied by
2. Place
existing products.
3. Price
- There are additional benefits in an existing
4. Promotion
product
5. Process
Copycat products
6. Physical environment
- These products do not make much
7. People
impression on the consumers’ minds
8. Productivity and quality
- Aggressive advertising may add to market
demand but at a greater cost than the
POSITIONING
leading brands.
 How costumers perceive your product
Niche Products
 Determine what brand u are
 Brain power - Do not intend to compete directly with the
 Core of your business giants
 - Targets specific groups of people, produces ratios (what percentage of drop-ins would
specialized products purchase something from the store)

3 Levels of Product - Revenues based on the volume and mix

 Core benefit of goods and services expected to be sold
 Actual product – brand name, quality level, at certain prices
features, design, packaging
 Augmented product – delivery and credit, - Profits
warranty, installation, services
“The positioning of the business should match
PACKAGING the positioning of the place.”
- The process of putting the product in a
package or container. IMPERATIVE FACTORS OF LOCATION:
- It can also mean the bundle of products or 1. Image and Location Condition
services that are put together to attract the - Physical look, sanitary conditions, crime and
customers safety levels
- Aesthetic should match the position of the
business
 Container used for the product 2. Exact Fit to Target Customers
- Materials used for the container (paper, - Foot traffic connected to the target market
plastics, stickers, etc.) - Pathways and intersections should contribute
- it identifies the product, describes its to the business’ success
features and benefits, complies with
government rules on specifying its contents, 3. Clustering of Competitor
weight, chemical composition and potency - Clustering of competitor establishments
oftentimes results in drawing a bigger market
 Bundle of products/service to the location because the competing
- What products go together and are sold establishments would, most probably, be
together? offering a wider range of choices and possibly,
- Most of the time, these are products that more competitive prices
complement each other - However, some enterprises prefer to be in a
monopoly situation and far removed from
 Consider quality and functionality – there is competitors
more than just aesthetics
4. Neighborhood Conditions
PLACE - This includes the aesthetics of a location, its
- The nature of the business and safety levels, sanitary conditions, crime
- the type of the product significantly situation, etc.
determine the most appropriate place for
the business 5. Future Area Development Programs
- The location may not have the correct
Price that comes with location economics in the short run but it promises
larger returns in the medium or long term. Early
- The cost of buying or renting, renovating, positioning in the location is sought to pre-empt
and operating the location other locators.

- Customer volume, drop-in rates (what 6. Fiscal and Regulatory Requirements

percentage of the customer traffic would - Seek place that has favorable tax rates, good
stop by the store) and sales conversion governance, excellent infrastructure and great
 public service. Some places have special  Advertising
regional government permit, different - Any paid form if non-personal presentation
wage/salary rates. and promotion of ideas, goods, or service
by an identified sponsor. (broadcast, print,
RELEVANT LOCATION DRIVERS (EMPIRICAL internet, mobile..)
FACTORS): 5 Approaches to advertising:
1. Physical Proximity to Target Market 1. Fear – can be an effective way to motivate
- Ideally, the best locations should be easily consumers to take action, whether it be
accessible from the home or the workplace purchasing a product, signing up for a
2. Customer Traffic Flow service, or donating to a charity
- Higher traffic flows mean higher drop-in - Ponds use the teenager’s fear of getting
rates for stores along the traffic route pimples so they would be motivated to use
3. Industry Clustering their products.
- Similar businesses co-located in a particular
site draw in a bigger market crowd than if 2. Humor – adds taglines
the business were standing alone - In advertising, commercials sometimes use
4. Convergence of Multiple Industries parodies and jingles in order to captivate
- Central business districts, commercial the attention of their consumers.
centers, shopping strips and public market
magnetize multiple industries which provide 3. Informative - using subtle ways which might
one-stop-shop convenience to all customers be relevant to the present situations in order to
5. Population Concentrations attract their consumers
- Urbanization creates population centers. - Close up ads that promote different
Where people live, goods and services campaigns and use of real life stories
follow. The greater the number of people,
the greater the number of needs and wants 4. Sex Appeal – “The Axe Effect”, more
to be satisfied associated in advertising perfumes, target market
6. Activity Hubs should be age-appropriate, ex: Axe, Old Spice
- Activity hubs such as large schools, high - In axe product commercials, the axe product
rise buildings, public parks, transportation users spray perfume or body spray which contain
terminals, and entertainment centers chemicals that result to women being attracted to
provide good location potential for food the body spray or perfume user.
establishments and client-specific services
7. Growth Potentials 5. Bandwagon – if you want to be part of a
- Can you place a start-up mall in here? specific group, you should buy the product.
- Study a location’s maximum growth for Believing that you are the superior product
development. If it already reached its
maximum, you can no longer start up a  Sales Promotion
business in a condensed area. - short-term incentives to encourage the
purchase or sale of a product or service
PROMOTION (discounts, coupons, promos..)
- Function of informing, persuading, and  Personal Selling
influencing the consumers’ purchasing - personal presentation by the firm sales
decision force for the purpose of making sales and
- Raising customer awareness of a product or building customer relationship (sales
brand, generating sales, and creating brand presentation, trade shows, incentive
loyalty programs), goal here is to make
relationships, once alam mo yung
Types of Promotions: customers mo mas madaling maka-gain ng
 sales. Call to Action – nagbibigay ng
discounts and deals pag tumawag agad Factors for an Effective Promotion
1. the credibility of the communicator – let
 Public Relations your brand be known before communicating
- building good relationships with the your product. Consumers need to know who
company’s various publics by obtaining you are, if you can be trusted or not.
favorable publicity. Building good corporate 2. the message and the medium of the
image, and handling or heading off message – should be appropriate to the
unfavorable humor, stories, and events. target market. Build’s consumer’s interest in
(press releases, sponsorships, events, web products
pages)
3. the receptiveness of the audience to all
 Direct Marketing that is being communicated – make sure
- direct connections with carefully targeted that the people understand the information
individual consumers to both obtain an you throw them and there should be a
immediate response and cultivate lasting feedback to know what you should improve
customer relationships. (catalogs, direct- on or change
response, TV, Kiosks, internet, mobile
marketing) PRICE
- based on algorithms which makes users - what are we willing to give up for something
well-targeted by marketers which also in return
makes the users triggered to purchase their
products Factors affecting product pricing:
1. availability if the competing products
Consumer decision making process 2. presence of substitute products
3. cost of making the products
1. Need recognition - (As users, you know your 4. type of product
specific needs) 5. stages of the product in the market
6. demographic profile of the target consumers
2. Search for information- (You have certain
standards that you are interested in for the
products you are using) Basis for pricing:
1. cost-plus based – either a fixed amount or a
3. Evaluation of Alternatives - (You filter your specs percentage of the total product manufacturing
upon looking at your alternatives) cost is added as profit to the cost of the
product to arrive at its selling price
4. Purchase Decision (In direct marketing, (price=cost+markup)
your consumers should be influenced)
 advantage:
5. Post-purchase Evaluation (The consumer may
- straight-forward and simple strategy
either come back or choose a new company where
- ensures that all production and overhead
he or she will buy)
costs are covered before profits are
calculated
Traditional vs. Digital
- ensures a steady and consistent rate of
Traditional – billboards, prints, radios, television
profit generation
Digital – online, socmeds, algorithms
 disadvantages: nadidisregard yung
There are products that can only be seen in social
customers
media and there are some that are only viewed in
television. Kung para sa masa, usually sa tv siya 2. value based – value is relative to costs in
nakikita. Effectivity depends on your target market. determining the worth of a product.
 For new products - what type of customers fit the products that
your business offers
PRICE = Unused benefits - Market Segmentation
Geographics: country, city, density
For used products
Demographics: age, gender, income,
PRICE = Unused benefits — Depreciation education, social status
Price = Remaining Benefits Psychographics: lifestyle, personality
Behavioral: purchase, usage, intent,
3. Competitive Based occasion, buyer stage, user status,
- the price of competing products is used a engagement
benchmark. The business may sell its product at a
price above or below such benchmark...
Build a Brand Mantra
- Brand mantra can guide your employees on
Unusual behavior of cheap products
amplifying marketing plans
Product’s Price < Competitor’s Price Usual - Emotional modifier – emotions, ano
behavior of luxury products pinaparamdam nila sa mga customers nila
- Descriptive modifier – for what, for whom,
Product’s Price < Competitor’s Price specifications
- Brand functions – is it for performance?
Pricing affects branding
Entertainment? Food?

Pricing Strategies
BRANDING
1. Introductory or promotional pricing to a
- Brand – name, design, color, symbol,
launch a new product
quality, features, or a combination of these
elements that make the product separate
2. Charge different prices in different
and distinct from similar products of
geographical areas to take care of
competitors.
additional logistics costs in farther locations
- With or without the name, it’s easy for
to accommodate the lower purchasing
people to remember what the brand is
power in poorer geographic areas
Purposes:
3. Discount pricing given to loyal and regular
1. To be different – be unique, stand out
customers to maintain their patronage
among the other brands
PEOPLE
2. Avoid commodity image – commodities-
- individual employees or workers who are
mass-produced products, if a product is
directly involved in the marketing and sales
mass-produced bumababa yung tingin a
of the product or service. Culture of the
brand mo and dumadami rejects, gusto
organization
mong tumatak ka sa mga tao and you
- people are your biggest assets in the
should create your identity
business. They are the ultimate marketing
strategy.
3. Fill a space in the consumer’s minds –
through taglines, naaalala yung mga brands
PROSPECT
- these are your target market, your We all remember the first, but not the second. –
customers branding and brand equity goes hand-in-hand
- what type of segment does your customers
belong to Importance of branding
 - They associate the features, attributes,
benefits, or value of the product with the
brand
- Consumers sometimes become familiar with
the brand name than with the product itself
(there is a specific product na naalala lang
but not all the products under them)
- They position the brand, and not the
product, at the back of their mind

Color emotion guide