MODULE 3: MARKETING Group 3

PLAN
 HUMANISTA MARKET
Trade your Products
Prepare 7 squares of paper
(exact size only) each student.
Make your own strategy.
DRAW THE FOLLOWING:
Fish (1pc) 10.00 Pesos
Chicken (1pc) 15.00 Pesos
Eggs (2pcs) 8.00 Pesos
Sitaw (2pcs) 5.00 Pesos
Beef (1pc) 20.00 Pesos
 STATUS:
30 below – Poor
30 – 49 – Average
50 above – Rich
WHAT HAVE YOU
LEARNED?
OBSERVE THE PICTURES
 OBJECTIVES
1. Describe the Unique Selling Proposition and
Value Proposition that differentiate one’s
product/service from existing
products/services.
2. Determine who the customer-related
concerns through the following:
a. Target Market
b. Customer Requirements
c. Market Size
3. Validate customer-related concerns through the
following:
a)Interview b) Focus Group Discussion
c)Observation d) Survey
4. Describe the marketing mix (7ps) in relation to the
business opportunity and vice versa
a. Product b. Place
c. Price d. Promotion
e. People f. Packaging
g. Process
5. Develop a Brand Name.
 WHAT IS BUSINESS PLAN?
Is a comprehensive paper that
details the situation analysis,
objectives, strategies, and tactics,
and how to monitor and control the
enterprise.
 VALUE
PROPOSITION AND
UNIQUE SELLING
PROPOSITION
 MARKETING PROCESS
Knowing Customers
Starts with identifying customers’ needs
where you are tasked to create a
meaningful value proposition.
Study what the customers want or desire
for you to build a unique selling
proposition.
 VALUE PROPOSITION (VP)
States why a customer should buy a
certain product or service.
Is the major driver in customer purchase
or service availment.
 TIPS FOR ENTREPRENEUR ON HOW TO
CREATE VALUE PROPOSITION TO TARGET
CUSTOMERS:
1. Prepare a situation analysis that details the
problem(s) of the customers
2. Make your value proposition straight to the
point, simple, and specific; in short, there
should be no complications. Your value
proposition has to target your major
objective.
3. Highlight the value of tour product or
service so that customers will easily get
what benefits you can provide.
 TIPS FOR ENTREPRENEUR ON HOW TO
CREATE VALUE PROPOSITION TO TARGET
CUSTOMERS:
4. Adapt to the language of your market.
Ensure that your target market understands
clearly what you are trying to say and avoid
putting unnecessary and inexplicable phrases.
5. Add credibility-enhancing elements such as
actual testimonials from customers, partners,
and other stakeholders, putting specific
assurance elements and social acceptability
metrics found in social media or press
materials.
6. Differentiate your value proposition with
your competitors.
 UNIQUE SELLING PROPOSITION

Refers to how you will sell the product or

service to your customers.
After creating VP, you have to figure out how
to advertise or promote certain unique
features of the product or service
characteristics, promotion strategies and
tactics, distribution centers and supply chains,
pricing, physical attributes or physical
evidence, human resources or human capital,
and market positioning strategies.
 ALING TERES
SARI SARI STORE
 TIPS FOR ENTREPRENEUR ON HOW TO
CREATE UNIQUE SELLING PROPOSITION TO
TARGET CUSTOMERS:
1. Identify and rank the uniqueness of the
product or service attribute.
2. Be very specific
3. KISS (Keep it Short and Simple)
IDENTIFICATION OF RANKING UNIQUENESS
Product
Promoti Packa
7Ps or Place Price People Process
on ging
Service
Three
shifts of
Near call The only
Aling
Center, a Semi- sari – sari
Tere’s
USP Retail public conve store that
Competi Assistan
Descripti product hospital, Signage nienc operates
tive ts (6am-
on s and a e 24 hours a
2pm,2p
construc store day, 7 days
m-
tion site a week
10pm,10
pm-6pm

Unique? No No No No Yes Yes Yes

Ranking
3 2 1
of USPs
 HOW TO SOLVE?
Market size of rice business in San
Isidro= number of families who eat
rice x average consumption per
annum
 HOW TO SOLVE?
 Market size of rice business in San Isidro=
number of families who eat rice x average
consumption per annum
 Market size= 475 families x 1 kilo per day x 365
days= 173, 375 kilos of rice
 Market size profit= 173 375 kilos x P10=P1,733,750
 Potential Market Share=market sizex estimated
market share= P1733750 x 20% =P364750
 Potential Market Share=P173375 x 20% x P8 =
P277400
 CUSTOMER REQUIREMENTS
 Customers are said to be the lifeblood of the
business.
 Their thoughts, feelings, and experiences shape
the decisions of the business. Thus, the phrase
“customer is always right” is a mantra that most
successful entrepreneurs follow.
 Are specific features and characteristics that the
customers need from a product or a service.
 They must know who buys, and what, when,
where, how, and the most importantly why the
buy.
 The customer is the voice of every business that
entrepreneur should listen to.
 PRIMARY AND SECONDARY
TARGET
 Entrepreneurs must focus only on customers
whom they can serve beneficially because they
will be wasting resources if they will target all,
or worse, target none.
 The entrepreneur can tap a primary target and
secondary target market as resources are limited
during the start up stage.
 MARKET INTELLIGENCE – Customer Profiling
 MARKET SEGMENTATION- similar customers
 A secondary target market is also necessary to
spread out capital expenditure and risks as well.
DEMOGRAPHIC SEGMENTATION
Also called as socioeconomic segmentation is
the process of grouping customers according
to relevant socioeconomic variable for
business venture.
These data help the entrepreneur target
customers accurately and classify their
respective needs, wants and desires.
Income range and social class of the
customers are very important factors for the
entrepreneur to consider because these
represent the purchasing power of market.
DEMOGRAPHIC SEGMENTATION
Occupation should also be considered not just
to determine the customers’ income but also
their daily routine where goods and services
can be properly positioned.
Gender and age group are data must be mined
because the life cycle of customers and their
gender influence their buying behavior.
DEMOGRAPHIC SEGMENTATION
Gender and Age Group Potential Product and service demand
Products: Trendy clothes, rubber shoes,
soft drinks, chips, prepaid cell phone
Male teenagers (13-19) places gyms, barber shops
Services: Cool hangout
places,gyms,barbershop
Products: Beauty Products, bags, clothes,
perfume
Single females (20-30)
Services: Spa, beauty clinics, gyms beauty
salons, coffee shops, movie houses
Products: Food and grocery items,
diapers, milk products, baby clothes
Married couples with kids (30-50)
Services: Theatres, babysitters, theme
parks, travel packages.
Products: Fruits and vegetables, hair dye,
medicines
Senior Citizens (60 onwards)
Services: Travel packages, health
services.
DEMOGRAPHIC SEGMENTATION
Religion and ethnicity also should be taken to
account because these affect the way they
buy products or avail services. Examples food
choices, events, and holidays, traditions and
beliefs, spending habits, and
conservativeness.
 PSYCHOGRAPHIC
Segmentation is a process of grouping
customers according to their perceptions, way
of life, motivations, and inclinations.
Perception is a process wherein an individual
receives external stimuli using the five senses
A product or service can be perceived
differently by different people.
A person’s motivation can be either
physiological or psychological.
 PSYCHOGRAPHIC
Physiological motivations involve the needs of
the person (e.g., food, clothing, shelter); they
seek to avoid pain and give pleasure.
Psychological motivations involve customer’s
preferences (what the customer likes or
dislikes).
Motivations are also affected by their
aspirations and deprivations. Aspirations are
what the customer wants to achieve.
Deprivation involves the customer’s
recognition of certain voids to fill.
 PSYCHOGRAPHIC
Customers inclinations involve preferring one
product over another as a result of gaining a
refreshing experience when using product,
possibly due to product’s unique features or
due to it giving more value than other
products.
The entrepreneur must be aware of what
makes the customers buy the products, so he
or she will know how to segregate the
customers based on their way of life.
 GEOGRAPHIC
Geographic segmentation is simply grouping
customers according to their location.
Examples: culture, beliefs, preferences,
politics, and lifestyle of a certain grography.
 BEHAVIORAL
Behavioral segmentation is the process of
grouping the customers according to their
actions. These behaviors are instigated by
occasions, desired benefits, loyalty, and usage
of products or availment of services.
Using customers’ desired benefits in
behavioral segmentation is efficient because
the entrepreneur determines the exact needs
of the customer and offer the most suited
product or service for them.
 BEHAVIORAL
Loyalty is the result of maintaining satisfied
customers. The goal of every entrepreneur is
to inform, persuade, and remind customers to
buy the product or avail of the service
consistently.
Usage of products or availment of service is
also behavior segmentation factor that
describes to the entrepreneur how often a
product is being used or the service is being
availed.
 BEHAVIORAL
Although segmentation is a strategic and an
efficient way of classifying and grouping
customers, there is also a term in marketing
called market aggregation.
TALKING TO YOUR CUSTOMERS
Ask them about their specific thoughts and
desires.
Marketing research should first have a solid
objective, which states the research’s
purpose.
Next analyze proper timing for research
execution.
 THE INTERVIEW
One of the most reliable and credible ways of
getting relevant information from the target
customers.
Face to face contact between the
researcher/entrepreneur and a respondent
Two main types are structured and
unstructured.
 FOCUS GROUP DISCUSSION
(FGD)
Is commonly used by market researchers to
capture qualitative results from target
customers.
Through the FGD, the researcher will be able
to generate relevant concerns and issues of
customers such as their views and inclinations
toward a product or service, inventive
concepts on promotions, price elasticity, and
initial feedback of customers on marketing
tactics and advertisements.
 OBSERVATION
Is one of the preferred and practical methods
of generating ideas because the researcher
documents the behavioral patterns of people
or subjects or events without necessarily
requiring them to participate in the research
process.
Examples of human observation are: customer
purchase patterns, Application to a printing
business, Mystery Shopping, and Application
to laundry business.
 OBSERVATION
Examples of machine observation are: Video
games or closed-circuit television (CCTV)-
Application to a gym business, traffic
counters- application to a convenience store
business, web analysis,-application to online
buy and sell business, barcode scanners-
application to a supermartket business, GPS
technology-application to a fast food
restaurant.
 OBSERVATION
Observations only becomes a relevant research
tool if it meets the following conditions

Is a the person,object,or event is indeed

observable.
If the person does the activity regularly or the
event happens on a regular basis.
If doing an interview or FGD is becoming
intrusive of privacy of the person.
If the subject of observation does not take too
long to produce relevant information.
 TRADITIONAL AND ONLINE
SURVEYS
A process of getting answers from a sample
respondents derived from a particular
population.
Very simple and practical to run because it
requires preparation of predetermined
questions answerable by definite responses
using equitable scales.
The emerging and more efficient way of
conducting a survey is through the internet.
 TRADITIONAL AND ONLINE
SURVEYS
Sampling Techniques
Nonprobability sampling
Sample size
Questionnaire blueprint
The Marketing Mix:
The 7Ps of
Marketing
 MARKETING MIX
A widely accepted strategic marketing tool
that combines the original 4Ps (product,
place, price, promotion) with the traditional
3Ps – people, packaging, and process- in
formulating marketing tactics for a product or
service.
Serves as customer needs and wants and at
the same time achieve the profitability
objective.
A widely accepted strategic marketing tool
that combines the original 4Ps (product,
place, price, promotion) with the traditional
3Ps – people, packaging, and process- in
formulating marketing tactics for a product or
service.
Serves as customer needs and wants and at
the same time achieve the profitability
objective.
Entrepreneurs must use 7Ps model to do the
following: conduct a situation analysis; set
objectives; conduct a strength, weakness,
opportunity, and threat (SWOT) or
competitive analysis; and ultimately come up
with strategies and tactics A challenge to a
budding entrepreneur is to ask the following
key questions at the onset:
Product – What product or service is the most
appropriate for he opportunity, and why will
customers buy or avail them?
Place – What location is the best suited for the
business where there are more potential
customers? Can they conveniently transact on-
site or online? How is the process of distribution
of products or performance of services?
Price – What is the most appropriate price, and
what pricing strategies will be used for the
target customers?
Promotion – What is the most effective
advertisement or combination of
advertisements, and which advertising tool
should be used to drive awareness and
increase sales?
People – What type of people need to be
hired? What are the basic skills needed for the
job? What leadership style will be applied by
the entrepreneur?
Packaging - What is the best packaging for
the product that is attractive enough to
customers and cost – efficient at the same
time? What physical evidence does the
entrepreneur need to set up so as to sell the
service?
Processing – What is the most compelling
feature of the product or the business that
will make a difference in the lives of the
customers? What sets the product or service
from the rest?
 7PS – PRODUCT

Is any physical good, service, or idea that

is created by an entrepreneur or an
innovator in serving the needs of the
customers and addressing their existing
problems.
PRODUCT - LEVEL 1: CORE BENEFITS OF
THE PRODUCT OR SERVICE

The core benefits of a product or service

are the major factors why a customer
buys a product or avails of a service. For
example, a customer buys coffee
because he or she wants to feel
energetic and alert the whole day.
 PRODUCT - LEVEL 2: PHYSICAL
CHARACTERISTICS OF THE PRODUCT OR
SERVICE
Once the core benefit has been satisfied
and options are available to the
customers, the tendency is to look for
the second layer of selection, i.e. which
has a better packaging for products or a
better physical evidence or customer
experience for services. In the previous
example, the customer can choose a
coffee with more appealing packaging or
a more aromatic smell.
PRODUCT - LEVEL 3:AUGMENTED BENEFITS
OF A PRODUCT OR SERVICE

Augmented beliefs are only additional

benefits. Example the customer can
choose a coffee drinks, he or she will be
able to get a free coffee drink.
 PLACE

The place refers to a location or the

medium of transaction.
A strategic location depends on the
nature of the business and the primary
target market.
 PRICE

Is the peso value that the entrepreneur

assigns to a certain product or service
after considering its costs, competition,
objectives, positioning, and target
market.
The only P in 7ps that generates revenue
for business.
 MOST COMMON PRICING STRATEGIES

Bundling- This refers to two or more

products or services in one reduced price.
(e.g. 3 in 1 coffee for P8.00, manicure and
pedicure for P150)
Penetration pricing- This refers to setting
low prices to increase market share, but
the entrepreneur will eventually increase
the price one the desired market share is
achieved (e.g. a mobile app-based
transportation service offering reduced
booking fee of P15 as its introductory
price).
 MOST COMMON PRICING STRATEGIES

Skimming- opposite penetration pricing

where prices are initially high and then
they are lowered to offer the product
service market. (e.g. a real estate company
offering top-tier projects is now offering
low-cost housing same quality to serve the
middle market segment).
Competitive Pricing- Benchmarking prices
to the competitiors(e.g., milk tea prices are
competitively priced).
 MOST COMMON PRICING STRATEGIES

Product Line Pricing- Pricing different

products or services within a parallel
product array using varying price points
(e.g., LED TV is more expensive than the
LCD TV).
Psychological Pricing- the psychology
and positioning of price in the market
(e.g. price of haircut is P199).
 MOST COMMON PRICING STRATEGIES

Premium Pricing- This refers to setting a

very high price to reflect elitism and
superiority (e.g. prices of signature
clothes, bags, perfumes).
Optional Pricing- adding an extra
product or service on top of the original
to generate more revenue (e.g. meals on
top of the airfare).
 MOST COMMON PRICING STRATEGIES

Cost-based Pricing- The basis of markup

is the cost of sales. For example the
entrepreneur will compute the cost of
coconut juice by adding the cost of the
coconut juice(P10) and the plastic
container (P4). He/she can set the price
at P20 to earn P6 per coconut juice.
 MOST COMMON PRICING STRATEGIES

Cost Plus Pricing- The basis of markup is

based on a certain percentage of cost
(e.g. the entrepreneur wants to set a 50%
markup on the coconut juice cost which
is P14x50%=P7; the new price is P14 +
p7=P21.
 MOST COMMON PRICING STRATEGIES

Cost Plus Pricing- The basis of markup is

based on a certain percentage of cost
(e.g. the entrepreneur wants to set a 50%
markup on the coconut juice cost which
is P14x50%=P7; the new price is P14 +
p7=P21.
The profit of an entrepreneur can be
determined only if there is a proper
computation of costs associated with the
product or service. There are two
classification of costs.
 VARIABLE COSTS OR CONTROLLABLE
COSTS

The cost are directly proportional to the

number of services performed. For
example the variable costs involved in a
car wash business is the cost of cleaning
materials. The business will incur lower
costs when there are few customers.
FIXED COSTS OR UNCONTROLLABLE COSTS

These are costs not directly proportional

to the manufacturing of a product or to
the performance of the service. These
are usually cost of equipment, employee
remuneration, rental cost, and utilities.
These are considered fixed costs because
the business will still incur these costs
whether or not they provide more or
less.
GENERAL PRICING GUIDELINES TO MAKE
BUSINESS SUSTAINABLE AND THRIVING

Do not price the product or service

below its cost
Monitor competitors’ prices, and ensure
that your prices are at par with them
unless the product or service is really
way superior to the competitors’.
Align prices with the 6Ps (product, place,
promotion, people, packaging, and
processing)
GENERAL PRICING GUIDELINES TO MAKE
BUSINESS SUSTAINABLE AND THRIVING

Implement price strategies that are

relevant to your market segment. For
example, tingi (sachet) pricing is more
appropriate in the grassroots locality or
barangay.
Align prices with your business
objectives.
 PROMOTION

Involves presenting the products or

services to the public and how these can
address the public needs, wants,
problems, or desires. In promotion, the
primary target market should be
identified because it will become the
main audience. The main goal of
promotion is gain attention
 PROMOTION

Involves presenting the products or

services to the public and how these can
address the public needs, wants,
problems, or desires. In promotion, the
primary target market should be
identified because it will become the
main audience. The main goal of
promotion is gain attention
 INTEGRATED MARKETING
COMMUNICATION PLAN (IMC)

Value proposition and unique selling

proposition of the product or service
Product or service image
Business image or
Business values and philosophy.
THE FOLLOWING ARE THE PROMOTIONAL
TOOLS

Advertising is a type of communication

that influence the behavior of a
customer to choose the product or
service of the entrepreneur over the
competitors.
Television-regular channels, cable TV
Radio – AM and FM radio
Internet- e-mails, Web sites, blogs, social
media, search engines, podcasts
THE FOLLOWING ARE THE PROMOTIONAL
TOOLS

Mobile Phones- text messages, mobile

applications, mobile internet
Print- newspapers, magazines, flyers,
directories, signage, posters
Out-of-home – billboards, buses, bus stops,
train stations, taxis, street advertisements
THE FOLLOWING ARE THE PROMOTIONAL
TOOLS

Selling- The act of trading a product or

service for a price or fee.
Sales Promotion- short tem promotional
gimmicks wherein practical incentives
and appealing activities are incorporated
to entice the customers to buy the
product or avail of the service.
THE FOLLOWING ARE THE PROMOTIONAL
TOOLS

Public Relations- These are image-

building initiatives of the entrepreneur
to make the name of the business
reputable to stakeholders, such as the
target customers, government agencies,
business partners, media, and the public.
THE FOLLOWING ARE THE PROMOTIONAL
TOOLS

People-one of the three additional Ps in

the marketing mix.
Packaging- is how the product or service
is presented to the customers.
Process- last addition in the marketing
mix. Step by step procedure or activity
workflow that the entrepreneur or
employees follow to effectively and
efficiently serve customers.
FUNDAMENTALS OF BRAND MANAGEMENT

A brand refers to the identity of a

company, of a product, of a service, or of
an entrepreneur himself or herself.
Symbol
A good brand does not entices the
customers instead it makes them loyal to
it.
Sets image to the public
FUNDAMENTALS OF BRAND MANAGEMENT

Branding is the process of integrating

the strategies formed from the
marketing mix to give an identity to the
product or service.
Customers will feel safer if the branding
is stronger
 IMPORTANT ELEMENT OF A BRAND

Unique
Extendable
Easy to remember
Can describe the benefits of the product or
service
Can describe a product category
Can describe concrete qualities.
Positive and inspiring
Can be converted to other dialects or
languages in case the entrepreneur
expands to other territories.
 QUIZ PART 1

1. States why a customer should buy a

certain product or service.
2. Refers to how you will sell the product
or service to your customers.
3. A place where the business will play
4. Customers are said to be ______ of
business
5. Resources are limit that’s why there are
______ and _______ target
 QUIZ PART 1

1. Also called as socioeconomic

segmentation
2. Segmentation is a process of grouping
customers according to their perceptions,
way of life, motivations, and inclinations.
3. is simply grouping customers according
to their location.
4. is the process of grouping the customers
according to their actions.
5. Two main types of interview
 QUIZ PART 1

1. One of the most reliable and credible

ways of getting relevant information
from the target customers.
2. Is commonly used by market researchers
to capture qualitative results from target
customers.
3. Is a comprehensive paper that details the
situation analysis, objectives, strategies,
and tactics, and how to monitor and
control the enterprise.
4. 2 pts why should we have a marketing
plan?
 QUIZ PART 1

1. Value proposition
2. Unique selling proposition
3. Market size
4. Lifeblood
5. Primary and secondary
6. Demographic
7. Psychographic
8. Geographic
9. Behavioral
10. Stuctured and unstructured
11. Interview
12. FGD
13. Business Plan
14. Marketing Plan
15. Because…………….