Lesson 1:

New Product Development

- is a process that involves the conceptualization and creation of innovative

products that will catch the attention of customers and ensure their loyalty to
a particular brand.

Idea Generation

- This involves the company's sales and executive teams which generate
ideas based on market trend research. Scientists can also contribute to the
generation of ideas.

Idea Screening

- Only those ideas with potential for a successful sales performance are
retained, while those that have a high chance of failure are eliminated.

Concept development and Testing

-Once an idea for a new product is selected, it is further developed as a

concept.

Market and Business Planning

- The target market is concretely identified and characterized and the profit
objectives are planned. In addition, the other components of the 4Ps are
identified - the price, placement, and promotion of the product.

Product Development

- This stage involves the efforts of both the marketing and research
departments of companies. It may take months or years to create a product
prototype to ensure that it will pass both technical and commercial
standards.
Test Marketing

- Once a product prototype is developed, its marketability is tested with a

particular group of customers in a specific location.

- The reactions of customers toward the product are gathered and analyzed.
This will help address any problem concerning the marketability of the
product before it is officially introduced to potential customers.

Commercialization

After the product prototype has been tested, the company or firm will make
its final decision on launching the product. Commercialization can be a soft
launch or a full-scale launch.

During a Soft Launch

- The product will be tested with a limited number of customers. Unlike test
marketing, however, it is not only the marketability of the product that is
being tested also the usability and features of the product.

This often involves one or two components of the 4Ps in the marketing mix.
In addition, a soft launch may involve price discounts and lower- budget
promotion schemes, like the use of flyers and brochures.

Product Line

- A product line is a group of similar products offered by the same company

under the same brand. The products in a product line may differ in sizes,
variants, or flavors. They may also differ in specific types but are all under a
general class.

The product life cycle

- is defined as the period of time that a product is introduced, sold, and
eventually removed from the market.

4 Stages of Product Life Cycle

Introduction

- It is the stage when the product is launched in the market. Companies

spend great amounts of money to develop and introduce their products to
customers. Thus, marketers are expected to find ways to launch products in
the best way possible without incurring large costs.

Growth

-This is the stage when the product gains acceptance in the market or for the
firm or company to start to increase. This is also the point when a product
may be sold under different brands. These brands attempt to make their
own, distinct versions of the product being sold.

Maturity

- At this stage, the product has been in the market for a long period and
competition has also increased. With this, marketers face the challenge of a
possible decline in the sales of the product. They, then, attempt to address
this challenge by improving the features of the product or even cutting down
its price.

Decline

-This is the stage when the profits and sales for the product continue to
decrease.

Consumers may begin to favor a new product which will eventually prevail in
the market. With this, companies and firms may be left with no choice but to
ultimately drop the product to avoid incurring huge costs and low profits.
Selecting and Training Employees

-Companies and firms must select employees who will help them deliver
excellent services to their customers. These employees must be trained and
oriented to meet the needs of customers.

Associating Effective Customer Service with Employee Motivation

-Training must be done in an environment that inspires employees and

satisfies their needs. This will lead to greater productivity and will motivate
employees to put more effort into delivering services to customers.

Delivering high-quality service

- When employees are satisfied, aware of the company's objectives, and

knowledgeable about the needs of customers, they will be able to provide
high-quality services. This will ultimately lead to the satisfaction of
customers.

Building a Strong and Loyal Customer Base

- When customers are satisfied with a service, they will recommend it to

other people. Eventually, the popularity of the service will increase. As long
as the company and its employees maintain the high quality of their service,
they can build a loyal customer base that will continually patronize their
services.

Lesson 2:

PRICE - is defined as the set amount customers have to pay to purchase a

product. Setting a price for a particular product entails many marketing
decisions such as choosing the right pricing approach or strategy for a
particular product or service.

PRICING APPROACHES
there are various pricing approaches that marketers can adopt in their
product offerings. Marketers should carefully choose the most appropriate
approach for their products depending on the situation.

COST-BASED PRICING

In cost-based pricing, the fixed and variable costs are determined as the
basis of the selling price.

FIXED COSTS

Fixed costs are expenses that firms cannot do away with regardless of
production volumes, such as water bills, electricity bills, and rent.

VARIABLE COSTS

On the other hand, variable costs are direct expenses on materials and labor
that are utilized in the production.

MARK-UP

A mark-up is then added based on the target sales volume, after which, the
company determines the price. This approach normally utilizes a sales
forecast instead of a demand forecast.

SALES FORECAST

Sales forecast estimates the number of goods that can be sold within a
specified period

SALES FORECAST

Sales forecast estimates the number of goods that can be sold within a
specified period and the accompanying costs and the predicted profits.

DEMAND FORECAST
On the other hand, a demand forecast estimates the market demand for a
good in the future.

BREAK-EVEN POINT

The break-even point, or the state when company revenues equal the
expenses, can also be determined based on the fixed and variable costs.

In perceived value pricing, the prices of product are set based on the
customer's perceived value the value that the customer feels he or she will
attain from the good. The customer's perceived value determines his or her
willingness to pay for the good Unlike the cost-based approach, the customer
perceived value is considered over the costs related t the goods. This pricing
approach may seem arbitrary however, it can actually augment the
marketing of the goods. The goods whose prices are is based on the
customer's perceived value may appeal to more potential buyers.

In perceived value pricing, the prices of products are set based on the
customer's perceived value or the value that the customer feels he or she
will attain from the good.

In competitive pricing, the price of goods are based on the prices of

competing goods. This pricing approach is mostly applicable in a market
structure where there are several businesses engaged in selling a similar
product.

SETTING THE PRICE FOR A PRODUCT

The following are factors to consider in setting the price of a product.

1. Marketing objectives

2. Research and development costs

 3. Market structure

4. Elasticity of demand

5. Laws

MARKETING OBJECTIVES

These are the goals that companies set as part of their marketing strategy in
promoting their goods to customers.

RESEARCH AND DEVELOPMENT COSTS

Some companies invest in research and development in the

conceptualization of their goods. This is common for highly technical
products or specialized services whose development often incurs high costs.
These costs are considered in pricing the goods.

MARKET STRUCTURE

In considering the market structure in which the company operates, a

uniform price is set for all sellers. In a monopolistic competitive market
where there are many sellers, the goods must have some form of
differentiation which the manufacturer uses as a basis for setting prices.

ELASTICITY OF DEMAND

Prices are also affected by the elasticity of demand or the relationship

between consumer demand and the changes in the price of goods.
DIFFERENT TYPES OF DEMAND ELASTICITY

There is an elastic demand if the consumers respond to a change in price.

Goods that are usually subject to elastic demand are non-basic necessities
such as gadgets, cars, and spa services.

If consumers do not respond much to a change in price, there is an inelastic

demand. Basic necessities such as food, shelter, and education are usually
subject to inelastic demand.

LAWS

The laws passed by the government must also be considered in pricing the
goods. These laws serve to restrict, reinforce, or simply monitor the prices
set by sellers on their goods.

In product-bundle pricing, individual products are put together to create

one whole bundle or set which is then offered to customers. The resulting
bundle is usually priced lower than the sum of the prices of the individual
goods. Many companies actively use this pricing scheme since it improves
the marketability of products to consumers.

Product line pricing involves the separation of goods and their variations
into categories by creating price gaps to emphasize differences in quality.
This serves to create a perception among consumers that there are different
quality levels of the products. This, in turn, influences the customers'
perceived value of the products.
In market penetration pricing, a low initial price is set to attract
customers, improve sales, and eventually eliminate competition. It is based
on the law of demand which states that a lower price will result in higher
demand. At present, customers are "price- sensitive" and would prefer a
good with the lowest price, so this scheme can be effective. However, when
sales increase because of a low price, companies also anticipate a lower
production cost because costs are offset by the profit from the quantities
produced

Lesson 3:

PLACE

The third "P" in the marketing mix is Place or the channel of distribution. All
products intended for consumers for their personal consumption as well as
those for industrial and production purposes need a channel of distribution.
Establishing an excellent channel of distribution ensures that the product will
reach the target customers. Distribution entails the use of marketing
intermediaries who are people or organizations responsible for linking the
producers or manufacturers to consumers. They may also interact with other
intermediaries in bringing products and services to consumers.

MARKETING INTERMEDIARIES

Marketing intermediaries are necessary because of the expertise they can

provide in distributing the products to the final customers. While employing
intermediaries entail additional costs to the producer or manufacturer, their
accessibility to target customers provide greater efficiency for customers to
compare one product or brand to another without having to go directly to the
manufacturer itself.

CHANNEL OF DISTRIBUTION

-A channel of distribution is classified according to distribution intensity or

the extent of using the different marketing intermediaries for a product to
reach its target customers.
DISTRIBUTION OF ENTITY

A distribution entity has three levels: intensive, selective, and exclusive.

INTENSIVE

It is intensive when a product needs many intermediaries.

SELECTIVE

It is selective when there are few intermediaries needed.

EXCLUSIVE

It is exclusive when only one intermediary is needed.

There are two main marketing or distribution channels

RETAILERS

WHOLESALERS

The conventional or typical channel of distribution starts when the product

goes to the wholesaler from the manufacturer.
Then, the wholesaler distributes the product to the retailers, and retailers will
finally sell the product to the consumers.

Manufacturers, wholesalers, and retailers act independently of each other,

which results in the tendency to maximize their own Individual profits at the
expense of the overall profits of the market.

Retailing - as defined by the American Marketing Association, refers to all

activities involving the sale of goods or services directly to the final
consumers. Individuals engaged in retailing are collectively called retailers.

Retailers - get their goods from wholesalers and resell them to consumers
usually in smaller quantities. In the channel of distribution, retailers are the
link between the wholesalers and the consumers. Thus, retailers maintain a
good relationship with customers in order to ensure healthy patronage and
offset the purchase cost of products. Retailers usually display their goods in
their stores or shops and mostly rely on advertisements to promote their
products. However, retailers can only cater to customers in a limited area.

Retailing as part of Philippine Culture:

Sari-Sari stores - are small retail shops found in neighborhoods that cater
to the residents of a particular community. The word sari-sari is a Filipino
term that means "variety." Sari-sari stores are also found in the streets where
retailing is less formal and the products offered are limited.

Supermarket - are the most common form of retailing because there is a

low manpower requirement for maintenance and high efficiency in providing
the product to customers. Supermarkets utilize a self- service approach
where customers locate, compare, and obtain the goods they need and
collect them all in their push carts before heading to the counter payment.
The goods a te displayed on Shelves, freezers, and gondolas which are free-
standing blocks of shelves used to display goods. Sign boards indicating the
category are placed on shelves so customers can easily locate the products
they need.

Drugstores - are composed of pharmacies that are found in supermarkets

or malls, or as stand-alone stores in convenient locations. They sell
prescription and over-the-counter drugs as well as personal products, food
and beverages, and beauty products. Some malls or supermarkets that have
drugstores are SM Malls, Ayala Malls, and Puregold. The largest drugstore
chains in the country are Mercury Drug and Watson's.

Department stores - These refer to large stores that offer a variety of

products that are organized into departments or areas, such as clothes for
men, women, or kids, pieces of jewelry, home appliances, fashion
accessories, bags, shoes, toys, and kitchenware. Department stores are
usually Located in malls. Some famous malls that have department stores
are SM Malls and Ayala Malls, while there are also stand-alone department
stores such as Rustan's, H&M, and Uniqlo.

Convenience stores - these are retail stores that carry a limited number of
goods, such as basic food items, personal care products, office supplies,
over-the-counter drugs, and commonly purchased items.

Kantar Worldpanel - an international consumer monitoring company,

conducted a study in 2015 and found that convenience stores are the
fastest-growing retail channels in the Philippines. Their survey of 3,000
Filipino homes in urban and rural areas in the country reveals that 18.5% of
Filipino households are now buying from convenience stores. That is 2%
higher than in 2014.
Non-store retailing - this approach in retailing involves the selling of goods
in other media aside from a physical store. One of the common forms is
online retailing. Sellers can now set up online stores where they can offer
their goods for sale. Customers, then, can choose among the products, order
them online, and even request personal customizations before purchase.
Since they have no physical stores, online retailers usually offer a delivery
service that is either free of charge or paid upon delivery. Pick-ups or meet-
ups are sometimes offered as an option as well. The most common products
sold online are apparels, shoes, bags, accessories, books, kitchenwares,
gadgets, food, and grocery items.

Wholesaling - includes all activities involved in selling products to

merchandisers or producers for business use. Merchandisers buy goods from
wholesalers and then resell those to customers. Many wholesalers are
classified as middlemen who purchase goods from producers or
manufacturers and sell them to retailers or directly to consumers. They carry
a wider assortment of products which are offered cheaper when bought in
bulk.

TWO TYPES OF WHOLESALERS:

Merchant Wholesalers - buy goods in bulk from producers and then resell
them to retailers with a mark-up. They are sometimes referred to as
distributors.

Full-service Wholesalers - provide a wide range of services to their

customers such as recruitment of salespeople, conducting inventory, and
delivery of goods. They have a higher income than merchant wholesalers,
but the cost of their operations is also higher because of the wide range of
services they provide to customers

There are four types of full-service wholesalers:

1. General merchandise wholesalers offer a wide variety of goods. Their
products include non-perishable goods, such as cosmetics, laundry
detergents, and cigarettes.

2. Limited line wholesalers provide an assortment of goods that are

limited to a few specific product lines but offer a broad selection of items. For
example, a hardware store might offer products related to automotive repair,
electric machinery, and plumbing, among others.

3. Specialty line wholesalers are comprised only of a single product line

but offer extensive customer service for the products. A rack jobber is a type
of specialty line wholesaler who maintains the displays and stock of goods in
retail stores. They usually handle non-food items such as cosmetics, books,
magazines, etc.

4. Brokers and Agents are also considered wholesalers. Brokers facilitate

the purchase and sale of goods between buyers and sellers, acting as a third
party in transactions. On the other hand, an agent acts on behalf of one
transacting party. In general, they negotiate the price, terms and conditions,
and other aspects of the transaction between manufacturers and customers.
They also ensure a fair or advantageous purchase or sale of goods for the
firm they represent.

Both retailers and wholesalers are effective channels of distribution which

assist in ensuring that products reach end-users or consumers.

Lesson 4:
Percentage of sales or profits method

- A common approach is to allocate a set percentage of sales or net profits to

promotions.

Competitor-based method

- Another option is to set the promotional budget by comparing it to a

competitor's budget, adjusting it to be less, equal to, or more.

Task-based method

-A more sophisticated approach involves planning the tasks and promotions

to be completed within a specific time frame and allocating the budget based
on those tasks' requirements.

Combination approach

-The success of a promotional campaign depends on using the right mix of

budgeting methods and adjusting them based on the company's situation.

Advertising

- is a nonpersonal form of communication meant to bring a product or

service to the attention of potential or current customers.

- "placement of announcements and persuasive messages in time or space

purchased in any of the mass media by business firms, nonprofit
organizations, government agencies, and individuals who seek to inform
and/or persuade members of a particular target market or audience about
their products, services, organizations, or ideas."

- It is the most expressive among the promotion types because it relies

heavily on visuals, color, words, and sound.

Reach

-is the percentage of the target market who is exposed to a particular

advertisement
Frequency

-is the number of times the target audience is exposed to the message

Impact

-is the value of the exposure to the target audience.

Mediums:

Televisions

• The most widely used medium today.

• Various time slots (morning, noontime, mid-afternoon, early evening,

primetime, and late evening)

• Rates (different rates to different time slots and ratings of the shows)

Print Ads

•Vary greatly depending on factors such as size, color, and the popularity of
the publication selling the ad space.

Billboards

• Depend on size and location

• Are placed strategically along expressways and highways

Advertising on the INTERNET

Websites

• Websites offer some flexibility and creativity

• May be used as the stores as well as repositories of information such as
events, new product offerings, and job vacancies

• It is also an avenue for customer service

2 Types of Websites

1. Intermediary website

2. Destination site

--Intermediary Website---

• Acts as a gateway to different content.

• Common examples are social network sites like Facebook, Twitter, and
Linkedin.

---Destination Site---

• Provides information on specific subjects, products, and services.

• Examples include travel companies, manufacturer websites, and the like.

To Inform

- Advertising is a tool for informing target customers abou a new product, a

new feature, on an added benefit of a product

To Persuade

- The ultimate goal of advertising is to persuade customers to buy a product

To Compare
- One of the best ways of comparing one brand to another is through the use
of advertisements

To Remind

- Advertising helps in brand recal and reminds customers about th product

from time to time

Advertising messages can be expressed through the following

execution styles:

Lifestyle

- This shows how a product fits a certain lifestyle. Sanitary napkins like
Modess, Whisper, and Kotex usually execute their ads using lifestyle as a
theme.

Slice of Life

-This depicts scenarios where the product is used in normal, day-to- day
settings. Laundry detergents like Ariel choose ordinary people in their
commercials which often depict a typical day for a housewife, who is washing
clothes.

Fantasy

- This style typically depicts idealized or even exaggerated effects of the

product/ service in question, allowing the customer to fantasize about such a
scenario.

Mood

- This style attempts to build a mood or thematic atmosphere (such as love,

beauty, extravagance, etc.) around a product or service. Perfume ads are
known to utilize this style.
Musical

- This style expresses the message of the ad through music which may be an
existing song adapted and licensed for use in the ad or a jingle composed
specifically for the ad.

Technical/Scientific evidence

- This style uses technical knowledge or scientific evidence to assert the

superiority of the product over its competitors. This is most commonly used
in ads for personal care products, such as soap, toothpaste, and medicine.

Testimonial

- This style features an individual or group of people giving positive feedback

on the product, attesting to the high quality of the product. These endorsers
may or may not be celebrities.

Personal selling

- is a face-to-face technique wherein the salesperson uses his or her

persuasive skills to convince a customer to buy a particular good or service.

Types of sales promotion:

Trade promotions - include freebies, incentives, commissions, and

discounts given to wholesalers, retailers, and distributors. They are given to
add more stocks and increase visibility on store shelves.

Consumer schemes - are sales promotions intended for customers.

A discount coupon elicits a response by giving an incentive to purchase the

product within a specified period. Customers take advantage of this
opportunity to save a few pesos.
Public relations - also create and maintain a positive image of that
organization, company, or individual.

Direct marketing is a form of marketing and advertising in which a

company communicates and interacts with its target audience directly,
without "middlemen" or intermediary entities, such as retailers, distributors,
or wholesalers.

SUMMARY

Advertising - is the most expressive of the promotion types, relying heavily

on visuals, color, words, and sound. Its objectives are to inform, persuade,
compare, and remind.

Personal selling - is a face-to-face technique where a salesperson uses his

or her persuasive skills to convince a customer to buy a particular good or
service.

Good salespersons - can effectively boost sales by building strong and

binding relationships with customers who value the time and effort they put
into promoting a product.

Sales promotions - consist of activities that help increase sales for a

product or service. There are two types: consumer schemes for individual
customers and trade promotions for wholesalers, retailers, and distributors.

Public relations - is the practice of communicating with the media and the
general public to establish a strong relationship between a target audience
and an organization, company, or individual, and create and maintain a
positive image of that organization, company, or individual.

Direct marketing - is a form of marketing and advertising in which a

company communicates and interacts with its target audience directly,
without middlemen or intermediary entities. It is often characterized by a call
to action, giving marketers an immediate way to measure its effectiveness.

Lesson 5:

Marketing Planning Process

In developing a marketing plan, it is crucial to identify and define target

markets. These markets should be divided into segments with distinct needs
and characteristics. It is also important to find out the unfulfilled needs and
wants of consumers, the segment of the population they are coming from,
and the means to satisfy their unfulfilled needs.

The analysis of the internal and external environments is summarized in the

SWOT

(Strengths, Weaknesses, Opportunities, and Threats) Analysis. From there,

the company will come up with strategies that will target chosen market
segments.

Product includes all the efforts related to the item offered. Price refers to
the selling price of the product. Place is the point of sale or making the
product available to consumers.

Promotion is the communication strategy to introduce the product to the

target market and persuade the consumers to buy it.

The performance of the organization based on the implementation of

marketing strategies must be monitored. Any deviation is corrected through
various marketing control measures.

Step 1: Formulate Business

Mission and Objectives

Step 2: Conduct Situation (SWOT)

Analysis and Market Analysis

Step 3: Identify Opportunities (Segmentation, Targeting, Positioning,

Step 4: Implementation of Marketing Mix (Product, Price, Placement,

Promotion)

Step 5: Evaluate Performance and

Execute Marketing Control

PLANNING PHASE

DEVELOPMENT OF

MARKETING STRATEGIES

IMPLEMENTATION PHASE

CONTROL PHASE

Planning Phase: Defining Mission Statement and Objectives

A mission statement describes a company's reason for its existence. A good

mission statement identifies the company's products and services, the
customer's needs that it seeks to satisfy, the target market that it was to
serve, and its approach to satisfy the needs of the customers. It must
likewise describe the identity of the company to distinguish itself from the
competitors.

The following are examples of mission statements:

* Google's mission is to organize the world's information and make it

universally accessible and useful.

* Facebook's mission is to five people the power to share and make the
world more open and connected.
Goals are accomplishments or action plans set for a longer period. These are
stated in broad or general terms.

"To increase revenues and maximize expenses."

Meanwhile, objectives refer to targets that are achieved within a shorter

period. Marketing objectives should be SMART (Specific, Measurable,
Attainable, Realistic, and Time-bound).

1. to increase annual sales by ten percent and have three corporate accounts
every month

2. to cut monthly utility bills by 12 percent

Market Analysis

Actual and potential size of the market

Companies determine the total sales of the brands under particular industry
so that they can project the potential sales of their product or service.

Market Trends

This component describes the general movements and latest changes in the
market and identifies important reasons for such changes.

This component describes the general movements and latest changes in the
market and identifies important reasons for such changes.

Customers

Marketers need to identify who the consumers are and how they buy
products and services. They must study consumer behavior or how
consumers react to certain brands and how they influenced in their
purchases.
Customer Segments

Marketers divide the market into segments in order to find out if the
company is capable of serving these segments.

Distribution channels. Marketers analyze the channel of distribution based on

effectiveness and growth.

Lesson 6:

SWOT ANALYSIS

-I s done to evaluate the internal and external environment of an

organization or business firm. The analysis determines the strengths and
weaknesses of the company (internal environment) as well as the
opportunities and threats (external environment) to the business.

Strengths

- include the valuable attributes of the company that give it a competitive

advantage. An example is the company being a market leader or having a
good brand image or reputation.

Weaknesses

- refer to attributes that need to be improved or enhanced, such as the lack

of access to technology, limited distribution channels, inaccessible location,
outdated facilities and equipment, poor transportation system, and others.

Opportunities
- are current trends that may be advantageous to the company in the long
term or in the immediate future. It consists of of favorable circumstances for
new markets, higher profits, better sources of raw materials, higher
purchasing power of consumers, better location, and new users, among
others.

Threats

- are external movements that may negatively impact the company. They
include trends or changes which the company cannot control. Examples are
increased price of oil in the world market, entry of new competitors, high
inflation rate, and others.

STRENGTHS

What does your company do better than others?

WEAKNESSES

Which aspects of your company need to be improved?

OPPORTUNITIES

What conditions and trends can positively impact your company?

THREATS

What conditions and trends can negatively impact your company?

PEST ANALYSIS

- is another means to further analyze the external environment of a

company. It looks into the political, economic, social, and technological
(PEST) forces that affect the firm in the conduct of its operations.

Political Factors
- include government restrictions or laws that may intervene or affect the
course of business of the company. Included are tax policies, labor laws,
environmental laws, trade restrictions, tariffs, and legislation.

Economic Factors

- such as economic growth, interest rates, exchange rates, and the inflation
rate affect the firm's operations. Inflation is the increase in the prices of basic
goods and services.

Social Factors

- include demographic aspects such as age, affiliation, religion, civil status,

and economic status. It also covers the target population of a company and
its buying habits, attitudes, ethics, personalities, and values.

Technological Factors

- include research and development activities, automation, licensing and

patents, technological shifts, outsourcing decisions, and so on. Information
technology, particularly the Internet, has significantly improved business and
transactions.

- Production, purchasing, delivery, promotion, and customer service have

been revolutionized through breakthroughs in technology.

SWOT and PEST analyses help companies formulate strategies and align
their vision and mission with the general direction of their business
environment. Start-up companies may be forewarned of significant threats
and be aware of significant opportunities that may boost sales. Those who
are about to venture into new projects may avoid making baseless
assumptions and business decisions that are likely to fail because they have
a more objective view of the business environment.

Lesson 7:

Implementation Phase
Marketers develop marketing strategies for their products or services.
Marketing strategy is the overall game plan of reaching target consumers
and turning them into repeat customers. Effective strategies provide
companies with a sustainable competitive advantage.

Segmentation, Targeting and Positioning In order to best serve customer

needs and wants, marketers first divide the market into segments according
to different categories:

MARKETING TERMS

SEGMENTATION

-is the subdivision of a population into segments with similar characteristics.

Demographic Segmentation

- Based on variables such as age. gender, income, and education.

Geographic Segmentation

- Involves dividing the market according to the physical location of

customers.

Psychographic Segmentation

- Segments customers according to their social class, lifestyle, or personality

traits.

Multi-Segment Marketing

- A strategy in which a company targets different segments in the same

market with the same product or different versions of it.
Marketing Strategies

- In building a sustainable competitive advantage, marketers may focus on

any of the following general marketing strategies

CUSTOMER EXCELLENCE

- companies retain loyal customers by providing excellent service.

OPERATIONAL EXCELLENCE

- the efficiency and quality of a company's operations.

PRODUCT EXCELLENCE

- emphasizes product quality to meet customer needs.

The Marketing Mix is essential in formulating marketing strategies. It

involves decisions on product attributes, branding, and product positioning to
differentiate a product from competitors. An example is Facebook Messenger,
which integrates features such as payments and messaging to serve both
individuals and businesses effectively.

LABELS

Indicate the name of the product, the manufacturer, the expiration date.
ingredients, and composition of the product. as well as instructions for USE

PACKAGING

Includes the physical features of the product, the preferences of the

customer, and the materials and design of the packaging.

SUPPORT SERVICES

May include free insurance or free check-ups (e.g.. for the first 5,000
kilometers covered by a new car).
Pricing Strategies and Distribution Channels

Marketers should know the different pricing strategies to sustain sales and
profit. Below are some strategies companies can use:

Promotional Pricing

Marketers may temporarily offer lower prices to promote a new product or

service.

Psychological Pricing

A high price may evoke high quality or exclusivity: meanwhile, a lower price
might suggest affordability.

Off-season Discounts

Companies sell products that are slow-moving or not in season at reduced

prices.

Volume Discounts

Discounts are offered to those who buy in bulk.

International Pricing

Product prices vary across countries based on local market conditions.

Distribution Channel

Conventional marketing channels include wholesalers and retailers.

Manufacturers distribute products to wholesalers, who pass them on to
retailers and finally to consumers.

MANUFACTURER ------WHOLESALER ----- RETAILER ------ CONSUMER

TYPICAL MARKETING CHANNEL

There are two types of marketing systems:

1. Vertical Marketing System (VMS) - An improved version of the

conventional system where manufacturers, wholesalers, and retailers
collaborate to streamline operations.

2. Horizontal Marketing System (HMS) - Occurs when two or more

companies cooperate to produce or distribute a product (e.g., joint ventures).

Lesson 8:

CONTROL PHASE

Control in marketing is implemented by setting performance standards

based on the established marketing objectives. The performance and
execution of strategies are monitored and then compared with the standards
set. If deviations occur, corrective actions are done.

Marketing control methods include strategic control, marketing

effectiveness review, marketing audit, annual plan control, profit control, and
efficiency controls.

STRATEGIC CONTROL

It helps the organization in evaluating its activities and determine whether

the company is taking advantage of the best opportunities in terms of target
markets and marketing channels. There are two tools available for strategic
control. marketing effectiveness review and marketing audit.

Marketing Effectiveness Review

This marketing control tool evaluates customer orientation, the integration of

other functions with the marketing function, and coordination of functions
with one another. It also assesses the extent of the marketing information
system and the quality of the current marketing strategies as well as how the
marketing plans are communicated to the lower levels. It also evaluates the
effective use of marketing resources and the responsiveness of the company
to new marketing developments.

Marketing Audit

It is a detailed and systematic analysis of the present and past marketing

activities of the organization. It also forecasts market growth in consonance
with the changing market conditions and gives suggestions on how to
improve sales performance. It evaluates the total marketing operation
including its objectives, policies, procedures, and employees assigned to
achieve marketing objectives.

Marketing audit is done periodically depending on the need of the

organization. Managers conducting marketing audit conduct SWOT analysis
and environmental scanning.

Annual plan control

It determines whether the planned results or outcomes were achieved by

using marketing targets as performance standards. This task is normally the
responsibility of middle and top management. The different tools used are
sales analysis, market share analysis. marketing expense-to-sales ratios, and
customer tracking.

Marketing Plan

The marketing mix efforts are integrated into the development of the
marketing plan. The marketing plan contains a summary of the objectives
and strategies of the firm concerning launching, re-launching, or improving a
product or service.