- why are they buying your products in the

Entrepreneurship first place

- how you are positioned
What is Marketing? Example: Chocolates - Positioning Map
- Creating and accumulating customers.
- These are designed to capture a market > High Quality and High Price
share and defeat competitors. a. Ferero Rocher
- Not just about promotions but also creating b. Cote d Oo
a target market (identify which customers c. Lindt
should one entertain)
- Getting the right goods to the right people, > Low Price and High Quality
in the right place, right time at the right a. Mars
price, with the right level of communication
profitability (Chartered Institute of > Low Quality and Low Price
Marketing) a. Kit Kat
b. M&M’s
* The aim of marketing is to make selling
unnecessary (Peter Drucker)
> Low Quality and High Price
MARKETING SELLING
a. Dairy Milk

Customer Focused Product Focused

OVERLAPPING OBJECTIVES
Long-Term Short-Term Enterprise Perspective
Relationships Transactions - scans the market environment and decides
Pull Strategy Push Strategy to position itself with the products that
specifically address the needs of the
to solve problems of to get more chosen target market
the customers commission or money
from customers Competitive Perspective
- different and distinguishes itself from its
The Cumulative Function of Marketing is competitors
to:
a. Create value (make awareness to your Takes the customer’s perspective
audience) - the way the customers perceive the product
b. Deliver (seal the deal) or service in mind
c. Communicate (through advertisements or
personal endorsements) MVP (Main Value Proposition or Unique
Selling Proposition)
8P’s of Marketing - A value proposition is a statement that
Identity answers the why someone should do
a. Prospect (Seeing) business with you
- the act of designing the company’s offer Example: 

and image so that it occupies a distinct Subway’s tagline is if you want to eat fresh,
and valued place in the target customer’s or get a healthier alternative, eat subway
minds * they’re not trying to be the best but they
want you to choose them
b. Positioning (Screening)
- communicate to the customer
* for people in the states, this is effective > Uniqlo (as a brand tries to offer an
since a lot of them usually eat burgers (ang innovative product — heat tech, foldable and
pinoy kasi makanin) lightweight materials)

“For macho guys (and “macho wannabes”) c. Copycat Products

— Harley David - does not make much impression on the
* For the Harley David companies, they try to consumer’s minds
change the idea for their consumers (kasi - have products that are hard to distinguish
lang users nila usually is matatanda na lalo from your competitors since you are
na expensive products nila) competing with a wide range of market
- more aggressive in the market
Core (4Ps) - aggressive advertising may add to market
a. Product (Seizing) demand but at a greater cost that than the
- tangible good or intangible service that the leading brands
enterprise offers to its customers in order Example: 

to satisfy their needs > Tide and Ariel (compared to the products of
brand x)
General Types of Products: > Freshman Body Wash (they only change
a. Breakthrough Products the components in order to compete)
- something new or fresh for the eyes of the
people d. Niche Products
- for our generation, iPhone products can be - do not intend to compete the products
seen as a breakthrough product (nobody directly with the giants
expected that someone can have a - target specific group of people
computer which can be handheld) Example:
- product with new performance benefits > There are shoes for basketball or soccer
Examples: only
> Virtual Reality (before a lot of people > Wooden Toothbrush (they target
doubted this but technology never stopped environmentalists)
advancing)
> Scrub Daddy (multipurpose scrub) 3 Levels of Product
> Amazon Go (take whatever you like any a. Core Benefit - why are you buying the
just walk out) product
Example:
b. Differentiated Products you buy cars for transportation
- existing products
- new space in the mind of the customer b. Actual Product - brand name, features,
different from the space occupied by quality level, design, packaging
existing products Example:
- there are additional benefits in an existing how is the quality or is the design perfect for
products you (Tesla, electric)
Examples:
> Transition Lenses (you don’t need to c. Augmented Product - delivery and credit,
choose which glasses should you bring — after-sale service, warranty, installation
shades or your lenses) Example:
> Apple watch (upgrading what wristwatches you check for it’s warranty or the add ons
can offer — apps, count your steps, take (added installations)
pictures)
b. Price (Seizing)
- is the price reasonable for the consumers? 2. Customer Volume, drop-in rates (what
percentage of customer traffic would stop
Auxiliary by the store) and sales conversion ratios
a. Packaging (what percentage of drop-ins would
- the process of putting the product in a purchase something from the store)
package or container. It can also mean the
bundle of products or services that are put Price that comes with location
together to attract the customers. 3. Revenues based on the volume and mix
of goods and services expected to be sold at
Container used for the product certain prices
* Materials used for the container
- paper, plastics, stickers, etc. 4. Profits
- it defines the product, describes its
features and benefits, and complies with “ The positioning of the business would
government rules on specifying its match the positioning of the place”
contents, chemical composition and
potency FACTORS OF LOCATION
a. Image and Location Condition
Bundle of products or services - physical look, sanitary conditions, crime
* What products go together and are sold and safety levels.
together? - aesthetic should match the position of the
- most of the time, these are products that business.
complement each other
* Petron gasoline stations are usually set
Example: near the road since the target market of the
> THE PET ROCK business is focused
- in selling the pet rock, your consumers
would hesitate in accepting a random rock b. Exact fit of to target customer
if you hand it to them directly but if you - foot traffic connected to the target market.
enhance your product through the - pathways and intersections should
packaging or layout, they might consider contribute the business’ success.
the item
c. Clustering or dispersing of competitors
Consider the quality and functionality - clustering of competitor establishments
* there is more to just aesthetics oftentimes result in drawing a bigger
market to the location because the
b. Place competing establishments would, most
- the nature of the business and the type of probably, be offering a wider range of
product significantly determines the most choices and, possibly, more competitive
appropriate place for the business prices
- however, some enterprises prefer to be in
What are the 3 important L’s? a monopoly situation and far removed from
“Location, location, location” competitors
- Harold Samuel, founder of Land securities
1944 * Jollibee decided to build their store beside
Mcdo in order to get the same target
Price that comes with location market (para pag puno sa Mcdo, merong
1. the cost of buying or renting, Jollibee)
renovating and operating the location
d. Neighborhood conditions b. Customer traffic flow
- this includes the aesthetics of a location, - higher traffic flows mean higher drop-in
its safety levels, sanitary conditions, crime rates for stores along the traffic route
situation, etc.
c. Industry clustering
* The yard food park in katipunan did not - similar businesses co-located in a
work because the business, although having particular site draw in a bigger market
a good location for its aesthetic ambiance, crowd than if the business were standing
alone.
e. Future area development programs
- the location may not have the correct d. Convergence of multiple industries
economics, in short run but it promises - central business districts, commercial
larger returns in the medium or long term. centers, shopping strips and public market
Early positioning in the location is sought magnetize multiple industries which
to pre-empt other locations provide one-stop-shop convenience to all

 customers.
* Siargao does not have fixed pathways
which is why there are tourist spots that are e. Population concentrations
not yet discovered even by the people who - urbanization creates population centers.
live near the area Where people live, goods and services
follow. The greater number of people, the
f. Fiscal and regulatory requirements greater the number of needs and wants to
- seek place that has favorable tax rates, be satisfied.
good governance, excellent infrastructure
and great public service. Some places f. Activity hubs
have special regional government permit, - activity hubs such as large schools, high
different wage or salary rates. rise buildings, public parks, transportation
terminal, and entertainment centers
* For a visually impaired person, in order to provide good location potential for food
apply a PWD card in manila, one should establishments and client specific services.
have a 600 grade but in Cavite, one can
already apply for a PWD card if you have a g. Growth potentials
200 grade. -

* Permits and licenses are checked by Summary of the relevant location drivers
officials on a regular basis. (Empirical)
1. Physical proximity to target market
Summary of (Imperative) 2. Customer Traffic Flow
1. Image attraction 3. Industry clustering
2. Exact fir to target customers 4. Convergence of multiple industries
3. Clustering or non clustering of competitor 5. Population concentrations
4. Neighborhood conditions 6. Activity hubs
5. Future area development programs 7. Growth potential
6. Fiscal and regulatory requirements
5. Promotion
RELEVANT LOCATION DRIVERS - function of informing, persuading, and
a. Physical proximity to target market influencing the consumer’s purchase
- ideally the best locations should be easily decision.
accessible from the home or workplace
- raising customer awareness of a product 5. Bandwagon - end users are being
or brand, generating sales, and creating influenced by the greater mass upon
brand loyalty consuming the product

TYPES OF PROMOTION Example:

a. Advertising A commercial showing the an iPhone user to
- any paid form of non personal presentation upgrade his phone to Samsung because the
and promotion of ideas, goods, or service public
by an identified sponsor. (Broadcast, print,
internet, mobile.) b. Sales Promotion
- short term incentives yo encourage the
5 Approaches to advertising: purchase of making sales and building
1. Fear - the use of fear can be an effective customer relationships
way to motivate the consumers to take
action, whether it be purchasing a c. Personal Selling
product, signing up for a service, or - personal presentation by the firm sales
donating to a charity. force for the purpose of making sales and
building customer relationship (Sales
Example: Presentation, Trade shows, Incentive
Ponds use the teenager’s fear of getting programs)
pimples so they would be motivated to use
their products. d. Public Relations
- building good relationships with the
2. Humor - an effective promotion in the company’s various publics by obtaining
past favorable publicity, building good corporate
image and handling at heading off
Example: unfavorable humor, stories, and events
In advertising, commercials sometimes use (Press relatives, sponsorships, events,
parodies and jingles in order to captivate the web pages)
attention of their consumers.
e. Direct Marketing
3. Stories - using subtle ways which might - direct connections with carefully targeted
be relevant to the present situations in individual consumers to both obtain an
order to attract their consumers immediate response and cultivate lasting
customer relationships (Catlogs, direct-
Example: response, TV, Kiosks, Internet, Mobile
Close up ads that promote different Marketing)
campaigns and use real life stories
Consumer Decision Making Process
4. Sex Appeal - “The Axe Effect” 1. Need recognition (As users, you know
your specific needs)
Example: 2. Search for information (You have certain
In axe product commercials, the axe product standards that you are interested in for
users spray perfume or body spray which the products you are using)
contain chemicals that result to women being 3. Evaluation of Alternatives (You filter your
attracted to the body spray or perfume user. specs upon looking at your alternatives)
4. Purchase Decision (In direct marketing,
your consumers should be influenced)
5. Post-purchase Evaluation (The consumer Quiz 1 and 2
may either come back or choose a new (Thursday ng after Undas, sa same week
company where he or she will buy) planning din ng para sa vid)

Quiz 1 (before bazaar)

Traditional vs. Digital
* Traditional examples are billboards, Quiz 2 (after bazaar)
magazines, newspapers
Video Ad November 8 (Uploaded and
* Digital processes examples include boosted online)
advertisements shared online Presentation end of November

There are products that can only be seen in Marketing Plan

social media and there are some that are
only viewed in television. Kung para sa 6. Price
masa, usually sa tv siya nakikita. Effectivity - what are the customers willing to give up in
depends on your target market. order to purchase your product

Factors for an Effective Promotion Factors affecting your product pricing:

- The credibility of the communicator ✓ Availability of the competing products
Consumers need to know who you are, if you ✓ Presence of substitute products
can be trusted or not. ✓ Type of Product
✓ Cost of making the products
- The message and the medium of the ✓ Stages of the product in the market
message ✓ Demographic profile of the target
Builds the consumer’s interest in using your consumers
products.
Basis for pricing
- The receptiveness of the audience to all 1. Cost-Plus Based
that is being communicated - in cost based pricing, either a fixed amount
You need to get feedbacks from the your or a percentage of the total product
product consumers. manufacturing cost is added as profit to
the cont of the product to arrive at its
Reminder: selling price
Task 1: Video Ad- Criteria
- Teamwork PRICE = Cost + Mark Up
- Purpose
- Message Advantages of Cost Based Pricing
- Credibility - A straight-forward and simple strategy
- Medium - Ensures that all production and overhead
- Engagement costs are covered before products are
- Creativity calculated
- Quality - Ensures a strategy and consistent rate of
- Editing profit generation
- Time elements - To find the maximum possible

#Deadlines 2. Value Based

November 11-14 Bazaar - the value is relative to costs in determining
the worth of a product
 2. Change different prices in different
For new products geographical areas to take care of
PRICE = Unused benefits additional logistics to accommodate the
lower purchasing power in porrer
For used products geographic areas
PRICE = Unused benefits — Depreciation 3. Discount pricing given to loyal and regular
Price = Rematining Benefits customers to maintain the patronage

3. Competitive Based 7. People

- the price of competing products is used a - individual employees or workers who are
benchmark. The business may sell its directly involved in the marketing and sales
product at a price above or below such of the product or service. Culture of the
benchmark… organization

Unusual behavior of cheap products * People are your biggest assets in business.
Product’s Price < Competitor’s Price People are the ultimate marketing strategy

Usual behavior of luxury products 8. Prospect

Product’s Price < Competitor’s Price - these are your target market, your
customers
Salon A Salon B Salon C
Low Cost Value for De Luxe In your market segmentation, you group
Money Service together customers with the same attributes

Php 45 Php 85 Php 125

Demograp Geographi Psychogra Behavioral
Located 1 hr Located 15 Located next hics cs phics
away by car or mins away by to your office
Country, Age, Lifestyle,
transit car or transit
City, Gender, AIO:
Next available Next available Next Density, Income, Activity,
appointment is appointment is appointment is Language, Interest,
in 3 weeks in 1 weeks in 1 day Climate, Opinion,
Area, Concerns,
Hours: Hours: Hours: Population Personalit
Mondays to Mondays to Mondays to y, Values
Fridays Fridays Saturdays Attributes,
(9am-5pm) (8am-10pm) (8am-10pm) Perceptio
n,
Estimated wait Estimated wait By
Preferenc
at salon is at salon is 30 appointment
e,
about 2 hours -45 minutes — estimated
Lifestyle,
wait at salon is
Preceptio
about 0-15
n,
minutes
Motivation

* Pricing affects branding Build a brand Mantra

Other pricing Strategies Brand Mantra can guide your employees in
1. Introductory or promotional pricing to amplifying marketing plans
launch a new product
BRANDING
- brand — name, design, color,
symbol,quality, features or a combination
of those elements that make the product
separate and distinct from similar products
of competitors

Branding serves 2 purposes

1. To be different
2. Avoid commodity image
3. Fill a space in the consumer’s minds

Commodity - basic products or materials that

are exchanged in commerce

*If a product is mass produced, there are

problems that will be encountered such as
not being able to reach the type of standards
being given or getting the products or
services you offer getting rejected

* It is necessary to fill in the gap in the minds

of your consumers to attain superiority.

We all remember the first, but not the

second
Branding and brand equity goes hand-in
hand

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
- They position the brand , and not the
product, at the back of the mind

Color Emotion Guide

1. Yellow - Optimism, Clarity and Warmth
2. Orange - Friendly, Cheerful and
Confidence
3. Red - Excitement, Youthful and Bold
4. Violet - Creative, Imaginative Wise
5. Blue - Trust, Dependable and Strength
6. Green -Peaceful, Health Growth
7. Gray - Balance, Calm and Neutral