MARKETING

OUTLINE OF THE LESSON

What is Marketing?

The 8P’s of Marketing:

Product Branding
Price Importance of Branding
Packaging
People Making your IMC
Place (Integrated Marketing
Plan)
Positioning
Promotion 2

Prospect
WHAT IS
MARKETING?
￮ Creating and accumulating
customers.
￮ These are designed to capture a
market share and defeat
competitors.

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Getting the right goods,

“
to the right people,
in the right place,
at the right time,
at the right price,
with the right level of
communication profitably.

- Chartered Institute of Marketing

 “
The aim of marketing is
to make selling
unnecessary
- Peter Drucker
 THE CUMULATIVE
FUNCTION OF
MARKETING IS TO:

CREATE COMMUNI
VALUE -CATE
DELIVER
7
8P’S
Prospect

People Positionin
g

Packaging
Marketing Product
Mix

OF MARKETING
Promotion Price

Place
 SEEING a). PROSPECT
IDENTITY
SCREENING b). POSITIONING
1). PRODUCT
2). PRICE
CORE
3). PLACE (4PS)
SEIZING
4). PROMOTION
i). PACKAGING
AUXILIARY
ii). PEOPLE
1
Positioning
The act of designing the company’s offer &
image so that it occupies a distinct and
valued place in the target customer’s
minds.
Automobile
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Chocolates
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Overlapping Objectives
1. Enterprise perspective
- Scans the market environment and
decides to position itself with the products
that specifically address the needs of the
chosen target market.
2. Competitive perspective
- Different and distinguishes itself from its
competitors
3. Takes the customer’s perspective
- The way customers perceive the product
or service in mind.
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 M.V.P
￮ Main Value Proposition or
￮ Unique Selling Proposition

￮ A value proposition is a
statement that answers the
'why' someone should do
business with you.
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“ For macho guys
(and “macho
wannabes”)
- Harley Davidson

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“

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“

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2
Product
Tangible good or intangible service that the
enterprise offers to its customers in order to
satisfy their needs and to produce their
expected results.
General
types of
Products:
1 2 3 4

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 BREAKTHROUGH
PRODUCT

iPhone New performance benefits

One of the biggest
breakthrough product of
this generation

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General types
of Products
Differentiated Products
New space in the mind of the
customer different from the
space occupied by existing
products.
There are ADDITONAL benefits in
an existing product.

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General types of
Products
Copycat Products Niche Products
These products does not Do not intend to
make much impression on compete directly with
the consumer’s minds. the giants
Aggressive advertising Targets specific group of
may add to market people
demand but at a greater
cost than the leading
bands.

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Add a Footer 30
Add a Footer 31
3 Levels of Product 33
34
 AUGMENTED
(Warranty)
CORE BENEFIT
(Transportation)

ACTUAL PRODUCT
(Tesla, Electric)

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3
Packaging
The process of putting the product in
a package or container. It can also
mean the bundle of products or
services that are put together to
attract the customers.
Container used
for the product
Materials used for the
container:
- Paper, plastics, Stickers, etc.
- It identifies the product,
describes its features and
benefits, and complies with
government rules on specifying
its contents, weight, chemical
composition and potency.
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Bundle of
products/service
What products go
together and are
sold together?

Most of the time these are

products that complements
each other.
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Pet Rock

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Price that comes
with location.
1. The cost of buying or renting,
renovating, and operating the
location.

2. Customer volume, drop-in

rates (what percentage of
customer traffic would stop by
the store) and sales
conversion ratios (what
percentage of drop-ins would
purchase something from the
store). 41
CONSIDER QUALITY AND
FUNCTIONALITY
There is more to just aesthetics
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Price that comes
with location.
3. Revenues based on the
volume and mix of goods
and services expected to be
sold at certain prices.

4. Profits.

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 2
EXACT FIT OF TO
TARGET
CUSTOMER
FACTORS OF
LOCATION
IMAGE & LOCATION
CONDITION
Physical look, sanitary
conditions, crime and safety
levels.

Aesthetic should match the

position of the business.
FACTORS OF
LOCATION
EXACT FIT OF TO
TARGET CUSTOMER
Foot traffic connected to the
target market.

Pathways and intersections

should contribute the
business’ success.
 3
CLUSTERING OR
DISPERSING OF
COMPETITORS
WHERE DO WE FIND…

Where it
is: near
the road
 1
IMAGE & LOCATION
CONDITION
5
FUTURE AREA
DEVELOPMENT
PROGRAMS
FACTORS OF
LOCATION
Fiscal and Regulatory
Requirements
Seek place that has favorable
tax rates, good governance,
excellent infrastructure and
great public service. Some
places have special regional
government permit, different
wage/salary rates.
FACTORS OF
LOCATION
FUTURE AREA
DEVELOPMENT PROGRAMS
The location may not have the
correct economics in the short
run but it promises larger
returns in the medium or long
term. Early positioning in the
location is sought to pre-empt
other locators.
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FISCAL AND
REGULATORY
REQUIREMENTS
FACTORS OF
LOCATION
NEIGHBORHOOD
CONDITIONS
This includes the aesthetics of a
location, its safety levels,
sanitary conditions, crime
situation, etc.
 4
NEIGHBORHOOD
CONDITIONS
SPOT THE DIFFERENCE
SPOT THE DIFFERENCE
FACTORS OF
LOCATION
CLUSTERING OF
COMPETITOR
Clustering of competitor establishments
oftentimes results in drawing a bigger market to
the location because the competing
establishments would, most probably, be
offering a wider range of choices and, possibly,
more competitive prices.

However, some enterprises prefer to be in a

monopoly situation and far removed from
competitors.
“ The positioning of the
business
should match
the positioning of the
place.

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RELEVANT LOCATION DRIVERS
EMPIRICAL FACTORS
Convergence of multiple industries
Central business districts, commercial centers, shopping
strips and public market magnetize multiple industries
which provide one-stop-shop convenience to all customers.
Physical proximity to target market

Ideally, the best

locations should be
easily accessible
from the home or
the workplace.

B. Relevant Location
Drivers
 Activity hubs

Activity hubs such as

large schools, high rise
buildings, public parks,
transportation
terminal, and
entertainment centers
provide good location
potential for food
establishments and
client specific services.
Growth potentials

Can you place a start up mall in

here?
The answer is “No” because the
place had already reached its
maximum growth for mall
 1. Physical Proximity to target
market
SUMMARY
2. Customer Traffic Flow
RELEVANT
3. Industry Clustering
LOCATION
4. Convergence of Multiple
DRIVERS Industries
(IMPERATIVE) 5. Population Concentration
6. Activity hubs
7. Growth Potential
SUMMARY
MARKETING MIX - PLACE
Factors of Location
Price that comes Relevant Location Drivers
with location. (Imperative) (Empirical)
1. Image Attraction 1. Physical Proximity to target
market
2. Exact Fit To Target Customers
2. Customer Traffic Flow
3. Clustering or Non-clustering of
Competitor 3. Industry Clustering
4. Neighborhood Conditions 4. Convergence of Multiple
Industries
5. Future Area Development
Programs 5. Population Concentration
6. Fiscal And Regulatory Policy 6. Activity hubs
7. Growth Potential
Industry clustering
Similar businesses co-
located in a particular
site draw in a bigger
market crowd than if
the business were
standing alone.
Population concentrations
Urbanization creates
population centers. Where
people live, goods and
services follow. The greater
the number of people, the
greater the number of needs
and wants to be satisfied.
Customer traffic flow

Higher
traffic flows
mean
higher
drop-in
rates for
stores
along the
 1. Image Attraction
SUMMARY 2. Exact Fit To Target Customers
FACTORS IN 3. Clustering or Non-clustering of
LOCATION Competitor
4. Neighborhood Conditions
(IMPERATIV 5. Future Area Development
E) Programs
6. Fiscal And Regulatory Policy
4
Place
The nature of the business and
the type of the product
significantly determine the most
appropriate place for the
business.
“ The location
is perfect.
- TARGET

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Factors in Location
Image and Exact fit to target Clustering of
Location customers competitor
Condition establishments
Is the foot traffic
Physical look, connected to the
sanitary target market?
conditions, crime
and safety levels

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Factors in Location
Future Area of Fiscal and Regulatory
Development Requirements
Signs of development in Low tax rates, good
the area governance, excellent
infrastructure and great
public service.

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Relevant location
drivers:
Physical Proximity Customer Traffic Industry
to Target Market flow Clustering
Easily accessible Contact with Competitors
customers clustered in one
“peak hours” and location; a fiercer
“slow hours” competition

Convergence of Population Activity Hubs

Multiple Industries Concentration
large schools,
Central business The greater the
high-rise buildings,
districts, Shopping number of people,
public parks ,
malls, and public the greater the
transportation
markets; one-stop number of wants
terminals and etc.
shopping and needs
experience
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5
Promotion
 PROMOTIONS
Traditional or Non-traditional? 79
PROMOTION
Function of informing,
persuading, and influencing the
consumer’s purchase decision.

Raising customer awareness of a

product or brand, generating
sales, and creating brand loyalty

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Types of Promotions
￮ Advertising
￮ Sales Promotion
￮ Personal Selling
￮ Public Relation
￮ Direct Marketing

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Types of Promotions
Any paid form of non personal presentation and promotion of ideas, goods,
Advertising or service by an identified sponsor.
(Broadcast, print, internet, mobile.)

Short-term incentives to encourage the purchase or sale of a product or

Sales Promotion service.
(Discounts, displays, coupons, demonstrations)

Personal presentation by the firm sales force for the purpose of making sales
Personal Selling and building customer relationship.
(Sales Presentation, Trade shows, Incentive programs)

Building good relationships with the company’s various publics by obtaining

favorable publicity, building good corporate image, and handling or heading
Public Relations off unfavorable humor, stories, and events.
(Press releases, sponsorships, events, web pages.)

Direct connections with carefully targeted individual consumers to both

Direct Marketing obtain an immediate response and cultivate lasting customer relationships.
(Catalogs, direct-response, TV, Kiosks, internet, mobile marketing)
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MARKETING SELLING
Customer Product
Focused Focused
Long-Term
vs
Relationships Short-Term
Transactions
PULL PUSH
STRATEGY
STRATEGY
Some Tricks in Retail
￮ Decoy/ Anchor Price

￮ Giving you a “Gift

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 DIFFERENT APPROACHES TO
ADVERTISING

FEAR HUMOR SEX APPEAL INFORMATIVE BANDWAGON

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FEAR
The use of fear can
be an effective way
to motivate
consumers to take
action, whether it
be purchasing a
product, signing up
for a service, or
donating to a
charity.

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How long can your
widowed wife
maintain the lifestyle
she’s used to after
your death?

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The most iconic
advertisements in
history are the ones
that leave an
emotional impact

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Find your Greatness
Nike

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Star Wars Car Ad

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Budweiser Ad/PR

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SEX APPEAL
“The Axe Effect”

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B
A
N
D
W
A
G
O
N 97
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 Short-term incentives to encourage the purchase or
Sales
sale of a product or service.
Promotion
(Discounts, displays, coupons, demonstrations)

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6
Price
What are we willing to give up for
something in return.
Factors affecting
product pricing:
1. Availability of the competing products
2. Presence of substitute products
3. Cost of making the products
4. Type of product
5.Stages of the product in the market
6. Demographic profile of the target
consumers
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Basis for
Pricing:

1 2 3

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BASIS OF
PRICING
COST-PLUS BASED
VALUE BASED
COMPETITIVE BASED
BASIS OF COST BASED
PRICING
In Cost Based Pricing, either a
fixed amount or a percentage of
the total product manufacturing
cost is added as profit to the
cost of the product to arrive at
its selling price.

PRICE = COST + MARK UP

 VALUE BASED
BASIS OF
PRICING the value is relative to costs in
determining the worth of a
product.

For new products

PRICE = UNUSED BENEFITS
For used products
PRICE = UNUSED BENEFITS –
DEPRECIATION
PRICE = REMAINING BENEFITS
 COMPETITIVE BASED
BASIS OF
PRICING The price of competing products
is used a benchmark. The
business may sell its product at
a price above or below such
benchmark..
Usual behavior of cheap products
Product’s Price < Competitor’s Pric
Usual behavior of luxury products
Product’s PRICE > Competitor’s Pr
 Salon A Salon B Salon C
Low Cost Value for Money De Luxe Service
Php 45 Php 85 Php 125
Located 1 hr away by Located 15 min away Located next to your
car or transit by car or transit office
Next available Next available Next appointment is
appointment is in 3 appointment is in 1 in 1 day
weeks week Hours: Mon-Sat ,
Hours: Mon-Fri, Hours: Mon-Fri, 8am – 10pm
9am – 5pm 8am – 10pm By appointment –
Estimated wait at Estimated wait at estimated wait at
salon is about 2 hours salon is 30-45 salon is about 0-15
minutes min 109
Price can affect
branding.

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Other Pricing Strategies

Introductory or promotional pricing to launch a new product

Charge different prices in different geographical areas to take care

of additional logistics costs in farther locations or to accommodate
the lower purchasing power in poorer geographic areas

Discount pricing given to loyal and regular customers to maintain

their patronage

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7
People
Individual employees or workers who are
directly involved in the marketing and
sales of the product or service.
Culture of the organization
People are your biggest
assets in the business.
People are the ultimate marketing strategy
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8
Prospect
These are your target market,
your customers.
People are your biggest
assets in the business.
It’s a people’s world
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Add a Footer 117
These are your target market, your
customers.
Demographics
Age Teenagers to early adults (age 14 ' 25)
Income Classes this group has more spending power
Social Class
Ethnic backgrounds
Religious beliefs
Occupation
Domciles
Psychographics
Motivation technology savvy
Perception
Preference
Lifestyle
Technographics well informed about or proficient in the use of modern
Level of Expertise technology
Source: Essay UK - http://www.essay.uk.com/free-119
essays/marketing/samsungs-target-market.php
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Target Market:
Middle-class income earner.
“More than half of our market comes from the ‘young’ market.
Those who earn, for example, about P60,000 and are young,
single or newly weds, which is our target market, are the
ones who can afford to invest in our project,” said Aye Luna,
assistant vice president for marketing of the SMDC.

“There is a big opportunity for the Amaia target market.

This is for the middle class, or the affordable segment of the
market. These are the people with a household income of
about P20,000 to more than P60,000 a month,” said Ricky
Celis, president of the five-year-old Amaia Land Inc.

https://businessmirror.com.ph/amaia-hikes-inventory-for-c-segment-buyers/
https://www.manilatimes.net/smdc-targets-young-market-with-new-
project/13288/
122
Target Market:
Middle-class income earner.

Single/Young Professionals

Families/Households

https://businessmirror.com.ph/amaia-hikes-inventory-for-c-segment-buyers/
https://www.manilatimes.net/smdc-targets-young-market-with-new-
project/13288/
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Build a brand mantra

Brand Mantra can guide

your employees in
amplifying marketing plans.

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1
“ We Find ways”

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2
“Just do it”

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3
“Ang sarap ng
filling mo”

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4 WHAT COMES TO YOUR
MIND WHEN YOU HEAR
THE WORD
“TOOTHPASTE”?
“SOFTDRINKS”?

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Product Based Promotion

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Positioning Based Promotion

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Place Based Promotion

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Packaging Based Promotion

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People Based Promotion

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#Deadlines

November 11 – 14 (Bazaar)

Quiz 1 and 2

Video Ad : November 8 (uploaded and

boosted online)
Presentation end of November

Marketing Plan
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