UNIVERSITY OF MINDANAO

College of Business Administration Education

Marketing Management Program

Physically Distanced but Academically Engaged

Self-Instructional Manual (SIM) for Self-Directed Learning

(SDL)

Course/Subject: MM223 (Marketing Management)

Name of Teacher: Melanie Joy Lim- Barriga

THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY; NOT

FOR REPRODUCTION AND DISTRIBUTION OUTSIDE OF ITS
INTENDED USE. THIS IS INTENDED ONLY FOR THE USE OF
THE STUDENTS WHO ARE OFFICIALLY ENROLLED IN THE
COURSE/SUBJECT.
EXPECT REVISIONS OF THE MANUAL.
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TABLE OF CONTENTS

Course Outline: MM 223 Marketing Management 4

Course Outline Policy 4

Module 1: (Week 1-3) 10

Unit Learning Outcomes
Metalanguage
Essential Knowledge 11
Overview & Introduction to Strategic Marketing Management

▪ Definition & Nature of Marketing Management 11

▪ Creating Customer Value, Satisfaction & Loyalty 12

▪ Identifying Market Segments & Targets 13

▪ Types of Markets 14

The Importance of Market Segmentation 15

▪ Benefits of Segmentation 15

▪ Criteria for Segmenting 16

▪ Segmentation Strategies 16

▪ Segmenting Methods 16

Winning markets through market-oriented strategic planning 17

▪ 10 steps for in creating a strategic Marketing 18

Plan
▪ Gathering information and scanning the 20
environment
▪ Marketing Environment 20

Self-Help Section 22

Let’s Check 22

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Let’s Analyze 24

In a Nutshell 24

Question Time 25

Keywords 25

Module 2: Consumer and Business Buying Behavior ( Week 4-5) 26

Unit Learning Outcomes
Metalanguage
Analyzing Consumer and Business Buying Behavior 27

• Consumer Buying Process 28

• Characteristics of a Business Market 28

• Stages in the Business Buying Process 29

Dealing with Competition 29

• Internal Analysis 30

• 4 Critical Features of Internal Analysis 30

• PESTLE Analysis: A Tool for Business Analysis 31

Segmenting, targeting, positioning and differentiation 33

• Bases Of Segmentation 34

• Differentiation and Positioning 35

• Perceptual Positioning Map 36

Developing A Positioning Statement 37

Self-Help Section 37

Let’s Check 37

Let’s Analyze 37

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In a Nutshell 38

Question Time 38

Keywords 39

Module 3- Product and Market Development/ Managing the total 40

Marketing Effort (Week 6-7)
Unit Learning Outcomes
Metalanguage
Product Development 41

• Six stages of new product development 41

• Market Development 43

• Common market development strategies 44

Managing the Total Marketing Effort 45

• Elements in analyzing the market: 46

• Market Planning 50

• Marketing Control 52

Self-Help Section 53

Let’s Check 53

Let’s Analyze 53

In a Nutshell 54

Question Time 55

Keywords 55

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Course Outline: MM223 – Marketing Management

Course Coordinator: Melanie Joy Lim- Barriga

Email: [email protected]
Student Consultation: By appointment
Mobile: 0923-410-2077
Phone: (082) 286-7388
Effectivity Date: May 26, 2020
Mode of Delivery: Blended (On-Line with face to face or virtual
sessions)
Time Frame: 54 Hours
Student Workload: Expected Self-Directed Learning
Requisites: None
Credit: 3
Attendance Requirements: A minimum of 95% attendance is required at all
scheduled virtual or face to face sessions.

Course Outline Policy

Areas of Concern Details

Contact and Non- Contact Hours This 3-unit course self-instructional manual
is designed for blended learning mode of
instructional delivery with scheduled face to
face or virtual sessions. The expected
number of hours will be 54 including the
face to face or virtual sessions. The face to
face sessions shall include the summative
assessment tasks (exams).

Assessment Task Submission Submission of assessment tasks shall be on

3rd, 5th, 7th and 9th week of the term. The
assessment paper shall be attached with a
cover page indicating the title of the
assessment task (if the task is
performance), the name of the course
coordinator, date of submission and name
of the student. The document should be
emailed to the course coordinator. It is also
expected that you already paid your tuition
and other fees before the submission of the
assessment task.
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If the assessment task is done in real time

through the features in the Blackboard
Learning Management System, the
schedule shall be arranged ahead of time by
the course coordinator.
Turnitin Submission (if To ensure honesty and authenticity, all
necessary) assessment tasks are required to be
submitted through Turnitin with a maximum
similarity index of 30% allowed. This means
that if your paper goes beyond 30%, the
students will either opt to redo her/his paper
or explain in writing addressed to the course
coordinator the reasons for the similarity. In
addition, if the paper has reached more than
30% similarity index, the student may be
called for a disciplinary action in accordance
with the University’s OPM on Intellectual
and Academic Honesty.

Please note that academic dishonesty such

as cheating and commissioning other
students or people to complete the task for
you have severe punishments (reprimand,
warning, expulsion).
Penalties for Late The score for an assessment item submitted
Assignments/Assessments after the designated time on the due date,
without an approved extension of time, will
be reduced by 5% of the possible maximum
score for that assessment item for each day
or part day that the assessment item is late.

However, if the late submission of

assessment paper has a valid reason, a
letter of explanation should be submitted
and approved by the course coordinator. If
necessary, you will also be required to
present/attach evidences.
Return of Assignments/ Assessment tasks will be returned to you
Assessments two (2) weeks after the submission. This will
be returned by email or via blackboard
portal.

For group assessment tasks, the course

coordinator will require some or few of the
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students for online or virtual sessions to ask

clarificatory questions to validate the
originality of the assessment task submitted
and to ensure that all the group members
are involved.
Assignment Resubmission You should request in writing addressed to
the course coordinator his/her intention to
resubmit an assessment task. The
resubmission is premised on the student’s
failure to comply with the similarity index
and other reasonable grounds such as
academic literacy standards or other
reasonable circumstances e.g. illness,
accidents financial constraints.
Re-marking of Assessment You should request in writing addressed to
Papers and Appeal the program coordinator your intention to
appeal or contest the score given to an
assessment task. The letter should explicitly
explain the reasons/points to contest the
grade. The program coordinator shall
communicate with the students on the
approval and disapproval of the request.

If disapproved by the course coordinator,

you can elevate your case to the program
head or the dean with the original letter of
request. The final decision will come from
the dean of the college.
Grading System All culled from BlackBoard sessions and
traditional contact
Course discussions/exercises – 30%
1st formative assessment – 10%
2nd formative assessment – 10%
3rd formative assessment – 10%
4th exam (summative) – 40%

Submission of the final grades shall follow

the usual University system and
procedures.
Preferred Referencing Style Depends on the discipline; if uncertain or
inadequate, use the general practice of the
APA 6th Edition
Student Communication You are required to create a umindanao
email account which is a requirement to
access the BlackBoard portal. Then, the
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course coordinator shall enroll the students

to have access to the materials and
resources of the course. All communication
formats: chat, submission of assessment
tasks, requests etc. shall be through the
portal and other university recognized
platforms.

You can also meet the course coordinator in

person through the scheduled face to face
sessions to raise your issues and concerns.

For students who have not created their

student email, please contact the course
coordinator or program head.
Contact Details of the Dean Dr. Vicente Salvador Montano
Email:
[email protected]
Phone: 082-227-5456 loc 131
Contact Details of the Program Ms. Joanna Lyn Mercado
Head Email: [email protected]
Phone: 082-3050647 local 102
Students with Special Needs Students with special needs shall
communicate with the course coordinator
about the nature of his or her special needs.
Depending on the nature of the need, the
course coordinator with the approval of the
program coordinator may provide alternative
assessment tasks or extension of the
deadline of submission of assessment tasks.
However, the alternative assessment tasks
should still be in the service of achieving the
desired course learning outcomes.
Instructional Help Desk Reil Romero
Email: [email protected]
Phone: 09090618789 (CALLs only)
Help Desk Contact Rhoda Neileen P. Luayon
Facebook page: UM GSTC MAIN CBAE
Library Contact Brigida E. Bacani, Head, LIC
library.umindanao.edu.ph

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CC’sVoice:

Welcome future Marketers. Welcome to this course MM 223 Marketing

Management.

Marketing Management is designed to introduce you to the full range of

activities performed by a marketing-oriented manager. This subject is
designed to introduce you to the key principles and activities necessary for
you to have an appreciation of the importance of the role that marketing
plays in the ‘tool kit’ of every organizational leader and manager.

CO:

After you have completed this course, you should be able to:

1. critically analyze an organization's marketing strategies

2. evaluate marketing implementation strategies
3. formulate and assess strategic, operational and tactical marketing
decisions
4. plan and conduct an investigation into an organization’s marketing
strategy, and communicate findings in an appropriate format.

Let us begin!

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Marketing Management (Week 1-3)

Unit Learning Outcome: At the end of the unit, you are expected to:

1. Discuss marketing management

2. Explain the elements of the marketing mix
3. Analyze how to build customer satisfaction, value and retention
4. Explain how changes in the demographic and economic environments affect
marketing decisions.

METALANGUAGE
Like any field, success in marketing management is all about how effectively you can
market yourself and your products. Unfortunately, that’s sometimes easier said than
done. See, the issue is that there’s no shortage of buzzwords floating around – and
that makes it more than a little difficult to get started.

Here’s a glossary of some of the most common marketing terms you’ll encounter as we
go along.

Marketing Management is the analysis, planning, implementation and control of

programs designed to bring about desired exchanges with target audiences for the
purpose of personal and of mutual gain.

"Marketing Planning is the process of developing marketing plan incorporating overall

marketing objectives, strategies, and programs of actions designed to achieve these
objectives."

The four (4) elements of Marketing, better known as the Marketing Mix are: Product,
Price, Promotion and Place of distribution

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Definition of Marketing
According to American Marketing Association,
"Marketing is an organizational function and a set
of processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders."

There are four (4) elements in the

Marketing Mix ( better known as 4 Ps)
• Product- either a tangible good or
an intangible service that is seem
to meet a specific customer need
or demand.
• Price- covers the actual amount
the end user is expected to pay
for a product. How a product is
priced will directly affect how it
sells.
• Place- or placement has to do
with how the product will be
provided to the customer. Distribution is a key element of placement. The
placement strategy will help assess what channel is the most suited to a
product.
• Promotion- • includes advertising, sales promotions, special offers and public
relations. Whatever the channel used, it is necessary for it to be suitable for
the product, the price and the end user it is being marketed to.

Definition of Management

According to Harold Koontz, "Management is the art of getting things done through
and with people in formally organized groups."
Management consists of the interlocking functions of creating corporate policy and
organizing, planning, controlling, directing an organization’s resources in order to
achieve the objectives of the policy.

Definition of Marketing Management

According to Philip Kotler, "Marketing Management is the analysis, planning,
implementation and control of programmes designed to bring about desired
exchanges with target audiences for the purpose of personal and of mutual gain. It
relies heavily on the adoption and coordination of product, price, promotion and
place for achieving responses.”

Nature of Marketing Management

It Combines the Fields of Marketing and Management

As the name implies, marketing management combines the fields of marketing and
management. Marketing consists of discovering consumer needs and wants,

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creating the goods and services that meet those needs and wants; and pricing,
promoting, and delivering those goods and services. Doing so requires attention to
six major areas - markets, products, prices, places, promotion, and people.

Management is getting things done through other people. Managers engage in five
key activities - planning, organizing, staffing, directing, and controlling. Marketing
management implies the integration of these concepts.

Marketing Management is a Business Process

Marketing management is a business process, to manage marketing activities in
profit seeking and nonprofit organizations at different levels of management, i.e.
supervisory, middle-management, and executive levels. Marketing management
decisions are based on a thorough knowledge of marketing roles and a good
understanding of supervisory and management strategies and their implementation.
Brand managers and sales managers are there to conduct the marketing strategy
processes. We, as customers, see the results of such process in the form of
products, prices, advertisements, promotions, etc.

Marketing Management Process

The activities of marketers both reflect and shape the world we
live in. Every year new products
and services are launched and
some of them succeed on an
unprecedented scale. As in the
case of Apple's iPod, iPhone,
and also iPad. They all are great
inventions and highly successful
in market.

The company needs to find

ways, according to the marketing principle, to
identify unfulfilled consumer needs and desire and
offer goods that meet certain needs and wishes.
This can be achieved in a series of steps which is
called method of marketing.

After reading this you will understand - what is

marketing process, and the steps involved in
marketing process.

Creating Customer Value, Satisfaction, and

Loyalty
• Total customer value is the perceived
monetary value of the bundle of economic, functional, and psychological
benefits customers expect from a given market offering because of the
products, services, personnel, and image involved.
• Total customer cost is the perceived bundle of costs that customers expect to
incur in evaluating, obtaining, using, and disposing of the given market
offering, including monetary, time, energy, and psychic costs.
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• Total Customer Satisfaction sees whether the buyer is satisfied after a

purchase. This depends on the offer’s performance in relationship to the
buyer’s expectations and whether the buyer interprets any deviations between
the two.
• Happiness is the happiness or dissatisfaction that a consumer experiences as
a result of contrasting the perceived output (or outcome) of a product to
expectations. When the result falls short of expectations, otherwise the
consumer is disappointed. If performance matches expectations, the
customer is satisfied; if it exceeds expectations, the customer is highly
satisfied or delighted.
• Customer assessments of product performance depend on many factors,
especially the type of loyalty relationship the customer has with the brand.
• Customer loyalty describes the decision of a customer to continue purchasing
from a particular business, due to the belief that the business offers the best
combination of product, customer experience and price within its category. A
strong consumer loyalty can discourage a company from switching quickly to
a rival based on simple factors such as better ads or a better price.

Identifying Market Segments & Targets

What Are Markets

Markets are a group of potential buyers with needs and wants and the purchasing
power to satisfy them.

Defining the Market

A basic definition of a market is a group of potential buyers with needs and wants
and the purchasing power to satisfy them.

The Market is People: Because trade includes two or more people, the market
can be thought of as organizations, individuals or groups. Individuals
constitute consumers only if they understand their need or desire for an
current or potential product at the moment.

Individuals and household members are the main consumer segment but
business institutions and other structured behavioral structures do serve
legitimate markets.

However, people or organizations must meet all five of the following basic
criteria in order to represent a valid market:
• There must be a true need or want for the product, service, or idea; this
need may be recognized, unrecognized, or latent.
• The person or organization must have the ability to pay for the product
via means acceptable to the marketer.
• The person or organization must be willing to buy the product.
• The person or organization must have the authority to buy the product.
• The total number of people or organizations meeting the previous
criteria must be large enough to be profitable for the marketer.

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The Market is a Place: The market can also be thought of as a place or as

a geographical area within which trading occurs. International markets,
American markets, a shopping center, and even the site of a single retail
store can be called a market.

Such market recognition is useful for the purposes of marketing decision

taking as variables such as product functionality, quality, location of
facilities and advertising design are all influenced by geographic factors.
Finally, a market can be somewhere other than a geographical area, such
as a catalog or advertising that allows you to position an order without a
marketer.

Types of markets
The primary types of markets are consumer markets, industrial markets, institutional
markets, and reseller markets.

These categories are not always clear-cut. In some industries, a business may be in
a different category altogether or may even encompass multiple categories. It is also
possible that a product may be sold in all four markets.
1. Consumer Markets
Consumer markets include individuals and households who buy
consumer goods and services for their own personal use. They
are not interested in reselling the product or setting themselves
up as a manufacturer.

2. Industrial Markets
The industrial market consists of organizations and the people who
work for them, those who buy products or services for use in their
own businesses or to make other products. For example, a steel
mill might purchase computer software, pencils, and flooring as
part of the operation and maintenance of their business.

3. Institutional Markets
The institutional market is made up of various types of profit and
nonprofit institutions, such as hospitals, schools, churches, and
government agencies. Institutional markets differ from typical
businesses because they are motivated by satisfying esoteric,
often intangible, needs rather than profits or market share.
Because institutions operate under different restrictions and
employ different goals, marketers must use different strategies to
be successful.

4. Reseller Markets
All intermediaries that buy finished or semi-finished products and
resell them for profit are part of the reseller market.

All products are sold via resellers except products obtained directly
from the producer. Producers are always aware of the fact that
successful reseller marketing is equally important to consumers
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as successful marketing.

The Importance of Market Segmentation

Segmentation splits buyers into groups with similar needs and wants to best utilize a
firm’s finite resources through buyer based marketing.

Market segmentation pertains to the division of a set of consumers into persons with
similar needs and wants. Segmentation of the market allows for better allocation of
the finite resources of a firm. A company has to make choices in serving particular
customer groups because of limited capital. With growing variation in modern
consumers ' preferences, businesses are taking note of the value of serving a
multiplicity of different markets.

Market segmentation can be defined in terms of the STP acronym, meaning

Segment, Target and Position.

Benefits of Segmentation
While there may be theoretically ‘ideal’ market segments, in reality, every
organization engaged in a market will develop different ways of imagining market
segments, and create product differentiation strategies to exploit these segments.
Market segmentation and related product differentiation strategy may provide a
temporary competitive advantage for a company. The strategies used to target the
right consumer are often market segmentations.

In essence, the marketing objectives of segmentation analysis are:

• To reduce risk in deciding where, when, how, and to whom a product, service,
or brand will be marketed
• To increase marketing efficiency by directing effort specifically toward the
designated segment in a manner consistent with that segment’s
characteristics
Market segmentation is a twofold process that includes:
• Identifying and classifying people into homogeneous groupings, called
segments.
Determining which of these segments are viable target markets.

The Segmented Market

The premise of segmenting the market theorizes that people and/or
organizations can be most effectively approached by recognizing their
differences and adjusting accordingly. By emphasizing a segmentation
approach, the exchange process should be enhanced, since a company can
more precisely match the needs and wants of the customer.

Although differentiation of product is an important strategy for separating a

brand from rivals, it also differentiates between one product and another. For
example, a company such as Franco-American Spaghetti has differentiated
its basic product by offering various sizes, flavors, and shapes. The objective
is to sell more product, to more people, more often. The problem is not
competition; the problem is the acknowledgment that people within markets
are different and that successful marketers must respond to these differences.
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• Choosing a Target Market from within a Defined Segment

While it is relatively easy to identify segments of consumers, most firms do not
have the capabilities or the need to effectively market their product to all of the
segments that can be identified. Instead, you have to pick one or more target
markets (segments). A business chooses its target audience because it has
the highest attachment to a product or service in question. It is in essence the
most likely to buy the product.

Criteria for Segmenting

• An ideal market segment meets all of the following criteria:
• It is possible to measure.
• It must be large enough to earn profit.
• It must be stable enough that it does not vanish after some time.
• It is possible to reach potential customers via the organization’s promotion
and distribution channel.
• It is internally homogeneous (potential customers in the same segment
prefer the same product qualities ).
• It is externally heterogeneous. In other words, potential customers from
different segments have different quality preferences.
• It responds consistently to a given market stimulus.
• It can be reached by market intervention in a cost-effective manner.
• It is useful in deciding on the marketing mix.

Segmentation Strategies
There are two major segmentation strategies followed by marketing organizations: a
concentration strategy and a multi-segment strategy.
• In the concentration strategy, a company chooses to focus its marketing
efforts on only one market segment. Only one marketing mix is developed.
This approach is beneficial as it helps the company to evaluate only one
segment's needs and wants and then concentrate all its resources on that
segment. The primary downside of concentration is that if demand decreases
within the market, the financial condition of the company will decline as well.
• In the multi-segment strategy, a company focuses its marketing efforts on two
or more distinct market segments. The organization does so by developing a
distinct marketing mix for each segment. They then develop marketing
programs tailored to each of these segments. This strategy is advantageous
because it can increase total sales since more marketing programs are
focused at more customers. The disadvantage of this strategy is the higher
costs stemming from the need for multiple marketing programs.
Segmenting Methods
Segmentation of a market to define a target consumer base can be done in a variety
of methods such as:
1. Geographic Segmentation
Geographic criteria—nations, states, regions, countries, cities,
neighborhoods, or zip codes–define the market segments. The
geo-cluster approach combines demographic data with
geographic data to create a more accurate profile of a specific
consumer. In areas prone to rain, you can sell things like

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raincoats, umbrellas, and gumboots. In hot regions, you can sell

summer wear, while in cold regions, you can sell warm clothes.
2. Demographic Segmentation
This consists of dividing the market into groups based on variables
such as age, gender, family size, income, occupation, education,
religion, race, and nationality. Demographic segmentation
variables are among the most popular bases for segmenting
customer groups because customer wants are closely linked to
variables such as income and age and because there is a
plethora of demographic data available.
3. Psychographic Segmentation
In psychographic segmentation, consumers are divided according to
their lifestyle, personality, values, and social class. Foreigners
within the same demographic group can exhibit very different
psychographic profiles.
4. Behavioral Segmentation
Consumers are divided into groups according to their knowledge of a
product, attitude towards, use, or response. It is basing on the
consumer 's behavior.
5. Occasions
Companies can segment the market according to the occasions of
use, such as whether the product will be used alone or in a
group, or whether it is being purchased as a present or for
personal use.
6. Benefits
Companies can segment the market according to the benefits
sought by the consumer.
7. Usage Rate
The use levels could also segment markets. It has been proposed,
for example, that targeting heavy users will lead to further sales.
Usage segmentation could divide the market by heavy users
versus light users.

Winning Markets through Market Oriented Strategic Planning

Market-oriented Strategic Planning is the managerial process of developing and
maintaining a viable fit between the organization’s objectives, skills, resources and
its changing market opportunities.

The aim of Strategic Planning is to shape the company’s businesses, products,

services, and messages so that they achieve targeted profits and growth.
Strategic Planning

Strategic Planning calls for action in three key areas.

1. Managing a company’s businesses as an investment portfolio.
2. Assessing each business’s strength by considering market growth rate and
company’s positioning.
3. Establishing a strategy

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10 steps for in creating a strategic Marketing Plan

1. Purpose. Write your business purpose. Example: 3M is a diversified

technology company with a worldwide presence in the following markets:
consumer and office; display and graphics; electro and communications;
health care; industrial and transportation; and safety, security and protection
services.
2. SWOT Analysis. Analyze your market situation. Describe the changes,
problems, and opportunities that your business currently faces:
• Your customers: Are they undergoing economic or lifestyle changes that
affect their buying decisions? Are they using new communication or
purchasing channels that require adjustments in how you reach and serve
them? Are their numbers growing or declining in your current market area?
• Your competition: How much direct and indirect competition do you face?
Are new businesses competing for your customers’ dollars or threatening
your business? Have competitors closed, leaving a hole that you can fill?
• Your market environment: Do you foresee economic changes that will
affect your business? What about building or road changes that may alter
buying patterns or access to your business? Will your company be
affected by regional or industry events that can boost business if you
promote around them? If your business is weather-reliant, are forecasts in
your favor?
3. Set goals and objectives. Before planning your marketing strategies,
establish what you aim to achieve. For example, win three new major clients
or increase revenues by 10 percent.

• Put your goal and objectives in writing and then stick with them for the
duration of the marketing-plan period. Each time a marketing opportunity
arises, ask, “Will this opportunity help us meet our goal? Does this
opportunity support one or more of our objectives?” If the answer to either
question is no, quickly pass on the opportunity.
4. Define your market. Define your market in terms of geographics (where target
customers live), demographics (who your customers are in factual terms such
as age, gender, religion, ethnicity, marital status, income level, education, and
household size), and psychographics (how your customers live, including their
attitudes, behavioral patterns, beliefs, and values), then:

Develop marketing tactics that appeal to your target market.

• Create advertising messages that align with the unique interests and
emotions of existing and prospective customers.
• Select effective communication vehicles.
• Weigh marketing opportunities based on their ability to reach those who
match your customer profile.
5. Define your company’s position and brand statements and creative strategy:
• Your position is the available and meaningful niche that only your business
can fill in your target consumer’s mind.
• Your brand is the set of characteristics, attributes, and implied promises
that people remember and trust to be true about your business.

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• Your creative strategy is the formula you follow to uphold your position and
brand in all your marketing communications.
6. Set your marketing strategies. Detail the strategies you’ll follow, including:
• Product strategies: How will you add, alter, or promote products to develop
customers and sales? Will you introduce products, revise products, or shift
emphasis to a certain product or package of products?.
• Distribution strategies: Will you alter the means by which you get your
product to customers? Will you partner with other businesses or open
outlets for off-premise sales? Will your website play an expanded role in
getting your message or product to customers?
• Pricing strategies: Over the marketing-plan period, will you adjust the
pricing strategy of your business — by, for instance, moving up from low-
cost pricing or adding more affordable alternatives to your current
premium-price position? Will you announce new prices or payment
options, a frequent buyer pricing schedule, quantity discounts, rebates, or
other pricing offers?
• Promotion strategies: How will you use advertising, online
communications, public relations, and promotions to support your
marketing strategies?
7. Outline your tactics. Detail the tactics you’ll employ to implement your
strategies. For example, if one of your strategies is to introduce a new
product, the sequence of tactics may look like this:
• Select an ad agency and develop product identity and ads.
• Establish a direct-mail program and direct-mail list.
• Create sales literature and product landing pages.
• Develop a publicity plan.
• Place ads.
• Implement social media and blogger outreach programs.
• Send direct mailers.
• Generate industry and regional-market publicity.
• Train your staff.
• Unveil the product at a special event.
• Track results.
• Adjust communications prior to a second wave of communications.
8. Establish your budget. Your strategy will determine how much the business
should commit to its marketing program. Start at zero and include costs for ad
creation, media placements, direct mail, website and new page designs, trade
show fees, displays, packaging, and other marketing tactics. If you require
additional staffing to implement your plan, incorporate those costs into your
budget. Then add a contingency of 10 percent to cover unanticipated costs.
9. Blueprint your action plan. One easy way to prepare this blueprint is to create
an action agenda in calendar form. Begin by entering all key events that affect
your marketing plan, such as trade shows, community events, and major
buying season launch dates. Then use the calendar to detail the marketing
actions your plan requires, along with the budget for each action, the
deadline, and the responsible party.

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10. Think long term. In the final section of your marketing plan, list growth
opportunities to research over the coming year for possible action in future
marketing-plan periods, such as:
• New or expanded business locations to serve more consumers
• New geographic market areas outside your current market area
• New customers different from those in your current customer base
• New products or product packages that will inspire additional
purchases
• New pricing strategies
• New distribution channels
• New customer-service programs
• Mergers, business acquisitions, recruitment of key executives, and
formation of new business alliances

Gathering information and scanning the environment

A marketing information system consists of people, equipment, and procedures to
gather, sort, analyze, evaluate, and distribute needed, timely, and accurate
information to marketing decision makers.

Marketing Information System consists of:

• People
• Equipment to gather, sort, analyze, evaluate and distribute needed,
timely and accurate information to marketing decision makers.
• Procedures

3 components
a) Internal records system
b) Marketing intelligence system
c) A Marketing research system

Analyzing the environment! How important is it?

Marketing Environment
The term Marketing Environment refers to the forces
and factors that affect the organization ability to build
and maintain good relationship with its customers.
Marketing climate affects the organization, impacting
the organization. Marketers must communicate at
micro- and macro-level with internal and external
citizens, and create internal and external ties. The key elements of marketing
environment are as follows:-
• Internal Environment,
• Micro Environment, and
• Macro Environment.

Internal Environment
Internal factors like men, machine, money, material, etc., on which marketing
decision depends consists internal marketing environment. The internal environment

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refers to the forces that are within the organization and affects its ability to serve its
customers. It includes marketing managers, sales representatives, marketing
budget, marketing plans, procedures, inventory, logistics, and anything within
organization which affects marketing decisions and its relationship with its
customers.

Micro Environment
Individuals and organizations that are close to the marketing organization and
directly impacts its ability to serve its customers, makes Marketing Micro
Environment. The micro environment refers to the influences that are close to the
organization of the marketing and directly influence the consumer experience. This
covers the company itself, its vendors, intermediaries in distribution, clients, sectors
or divisions, rivals and audiences. For the marketing agency, happenings in micro-
environments are fairly controllable.

Macro Environment
Macro environment refers to all forces that are part of the larger society and affects
the micro environment. It includes demography, economy, politics, culture,
technology, and natural forces. Macro environment is less controllable.

Factors influencing the market can be categorized under 6 different titles,

demographic, economic, ecology, technology, regulatory-political and society-
culture.

• Demographic factors: are associated with changing nature and volume of

population. It follows how people are conducting themselves in the new world,
increasing per capita income, urban migration, ethnically diverse cities and
mega cities. These are some demographic factors companies are monitoring.
For example, a country like India and China are showing highest
concentration of youth population where as Japan is showing high number of
retired workers. Therefore, demand and consumption of product will also be
different.
• Economic factors: tackle functions such as purchasing power parity, level of
wages, savings and interest rates among many others. For example, high-
income countries are more able to afford luxury goods compared to countries
with low income rates. The level of savings and the interest rate decide both
the borrowing power and consumer purchasing power.
• Ecological factors: consist of natural resource composition in a given county.
For example, demand for fossil fuel has sky rocketed in recent years there by
increasing general price level in the market. Companies, therefore, are
looking forward to designing products which eco-friendly design that is they
are less fuel dependent and give out less pollution.
• Technology factors: like internet and connectivity are changing the face of
business. More and more people are doing business online. Science and
medicine are also part of technology factors. Challenge for the company is to
keep up with innovation and offer products, which are not obsolete.
• Political environment: is also changing with more and more market based
system rather than the socialist system. Furthermore, regulatory requirements

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like competition policy, investment policy, tax policy, etc. companies should
investigate before taking their business to a particular country.
• Culture environment: deals with factors like opinion people have towards
themselves, others, organization and society in general. People have become
more eco conscious, contributing one or many causes they can relate to, want
organization to be responsible for their action and are looking to open society
with meaningful co-existence.

Please refer to the references below

to further understand Marketing
Management and its importance to
an organization.

References:
Chand, Smiriti. http://www.yourarticlelibrary.com/marketing/role-of-marketing-top-10-
important-role-of-marketing-in-making-a-product-successful/32289
http://www.economicsdiscussion.net/marketing-management/what-is-marketing-
management/31788
https://courses.lumenlearning.com/boundless-marketing
Hassan, Mansoor, https://www.business2community.com/marketing/why-is-
marketing-important-9-reasons-why-you-really-do-need-it-02186221
Mahea, Timothy. https://www.linkedin.com/pulse/20140915080650-84228363-the-
role-of-marketing-in-organizations-by-timothy-mahea
https://ocw.mit.edu/courses/sloan-school-of-management/15-810-marketing-
management-fall-2010/lecture-notes/MIT15_810F10_lec01.pdf

CONGRATULATIONS, you just finished the introduction

and the basic information you need to know in the study of
Marketing Management. As to how much you have
learned and understood, please proceed to the multiple
choices. Encircle the letter of your answer.
1. Value-added services’ means_________
a) Better value at a premium
b) Costlier services
c) Additional services
d) Better value at a discount
e) At par services

2. Marketing is the activity, set of ……………… & processes for creating,

communicating, delivering & …………… offerings that have value for
customers, clients, partners & society.
a) Institutions, satisfying
b) Organizations, exchanging
c) Institutions, exchanging
d) Organizations, understanding

3. A market survey is required for________

a) Deciding marketing strategies
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b) Deciding product strategies

c) Deciding pricing strategies
d) All of these
e) None of these

4. Market segmentation is useful for

a) Preferential marketing
b) Targeting existing client
c) Identifying prospects
d) Knowing customers’ tastes
e) All of the above

1. Market segmentation can be resorted to by means of

a) Segmenting by age
b) Segmenting by income
c) Segmenting geographically
d) All of these
e) None of these

6. The ultimate aim of the marketing is to provide

a) More business to the company
b) More profit
c) More staff
d) More production
e) More products

7. Marketing strategy means________

a) Ideas for new employment
b) Old techniques of selling
c) Techniques for improving marketing activities
d) Techniques for increasing production
e) Networking

8. Effective marketing helps in

a) Developing new product
b) Creating a competitive environment
c) Building demands for products
d) All of these
e) None of these

9. Marketing management is ________.

a) developing marketing strategies to move the company forward
b) managing the marketing process
c) monitoring the profitability of the company’s products and services
d) the art and science of choosing target markets and getting, keeping,
and growing customers through creating, delivering, and
communicating superior customer value

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10. Which one of the following is a key to build lasting relationships with
consumers?
a) Price of the product
b) Need recognition
c) Customer satisfaction
d) Quality of product

Role of Marketing Management

This activity should be completed in around 15 minutes,

plus any additional discussion time.

As you have probably gathered, the word “marketing” is

obviously related to the word “market”. You should note that
the word marketing is a verb, which means that marketing is
an active process of “going to market” (that is, helping a firm
(or organization) go to market).

But what does “going to market” mean? Think about a street market where there are
buyers and sellers. The sellers work together to attract large numbers of buyers, but
are also in competition with each other to win sales from the buyers. The buyers are
looking for a good deal and to buy products that they are interested in.

Your task in this exercise is to review the following list. To what extent, do you think,
that these goals reflect the role of marketing for a firm. Try to score each one on this
scale (Definitely a role of marketing management, probably a marketing
management role, probably not a marketing management role or definitely not a role
of marketing management).

1. To add value for consumers,

2. To win customers,
3. To outperform its competition,
4. To make a difference to society and
5. To achieve the firm’s other defined objectives.

Question: Given your view of whether the above goals are a role of marketing, how
would you then describe the role of marketing in your own words.

In simple terms, marketing management is the operation of

developing strategies by which a product or service is
introduced and promoted to the potential customers. It is,
briefly, a set of actions that strives to find effective ways to
achieve predetermined marketing goals through discovering,
defining and meeting the needs of the customers.

Market segmentation is important for any business because it allows them to

precisely reach a consumer with specific needs and wants. In the long run, this
benefits the company because they are able to use their corporate resources more
effectively and make better strategic marketing decisions.
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Do you have points for clarification? Write your questions

below and after your question is answered, write the
answers, as well.

QUESTIONS ANSWER
1.
2.
3.

1. market
2. brand
3. target market
4. consumer
5. segmentation
6. marketing strategy
7. marketing plan
8. product
9. analyze
10. value
11. customer satisfaction
12. customer loyalty

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Module 2: Consumer and Business Buying Behavior/ Competition/ STP (Week

4-6)

Unit Learning Outcome: At the end of the unit, you are expected to:

1. Discuss the unique aspects of consumer and business buying behavior

2. Assess business markets and consumer markets.
3. Explain the participants in the buying business process.
4. Explain why business buying is acutely affected by the behavior of
consumers.
5. Explain the major influences on buying decisions

METALANGUAGE

Study of buying behavior is most important for marketers as they can understand the
expectation of the consumers and business markets. It helps to understand what
makes them buy a product. It is important to assess the kind of products liked by
consumers and business markets so that they can release it to the market

Here’s a glossary of some of the most common terms you’ll encounter as we go along.

• Consumer behavior - the totality of consumers' decisions with respect to the

acquisition, consumption, and disposition of goods, services, time, and ideas by
human decision-making units over time.
• Business markets- consist of individuals and organizations that buy goods for
purposes of further production, resale, or redistribution.
• Competition is the rivalry between companies selling similar products and
services with the goal of achieving revenue, profit, and market share growth.
• Internal analysis examines your organization’s internal environment in order to
assess its resources, competencies, and competitive advantages.
• Competition in business is the contest or rivalry among the companies selling
similar products and/or targeting the same target audience to get more sales,
increase revenue, and gain more market share as compared to others.
• Segmenting, targeting and positioning (STP) is a broad framework that
summarizes and simplifies the process of market segmentation

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Analyzing Consumer and Business Buying

Behavior
Consumer buyer behavior refers to the buying behavior
of final consumers individuals and households who buy
goods and services for personal consumption.
Consumer market refers to the combination of all the
personal consumption of final consumers.

In addition to a company's marketing mix and factors present in the external

environment, a buyer is also influenced by personal characteristics and the process
by which he or she makes decisions. A buyer's cultural characteristics, including
values, perceptions, preferences, and behavior learned through family or other key
institutions, is the most fundamental determinant of a person's wants and behavior.

The buyer's behavior is

influenced by four major
factors:
• cultural,
• social,
• personal,
• and psychological.

Social, cultural, personal

and psychological forces
play a big part in defining
consumer buying behavior.
Cultural, sub-culture and
social class play an important is finalizing consumer behavior. For example,
consumer growing up in US is exposed to individualism, freedom, achievement,
choice, etc. On sub-culture level influence of religion, race, geographic location and
ethnicity define consumer behavior.

Social class consists of consumer with the same level of income, education, taste,
feeling of superiority and inferiority. Over time consumer can move from one social
level to another.

Culture alone cannot define consumer behavior; social forces also play an important
role.

Social forces consist of family, friends,

peer groups, status and role in society.
Groups which have direct or indirect
influence on consumer are referred to as
reference groups.

Primary groups consist of friends, family

and peers with whom consumer has direct
contact for considerable time.
Secondary groups are association where
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interaction is at formal level and time devoted is less.

Consumer buying behavior is influenced by individual’s own personality traits. These

personality traits do not remain the same but change with the life cycle. The choice
of occupation and corresponding income level also play part in determining
consumer behavior. A doctor and software engineer both would have different
buying pattern in apparel, food automobile etc. Consumers from similar background,
occupation and income levels may show a different lifestyle pattern.

An individual buying behavior is influenced by motivation, perception, learning,

beliefs and attitude. These factors affect consumer at a psychological level and
determine her overall buying behavior.

Complex buying behavior requires high involvement of buyers, as it is infrequent in

nature, expensive, and they are significant differences among the available choice
e.g. automobile. Grocery buying is referred to
as habitual buying, which requires less
involvement as few differences among
brands, frequent and inexpensive.

Consumer Buying Process

Buying process involves purchase need,

decision makers, information search,
alternatives evaluation, purchase decision
and post purchase behavior. Companies try
hard to understand consumer experience
and expectation at every stage of buying
process. Marketers need to figure the right
combinations which will initiate purchase
need e.g. marketing programs.

Companies should ensure consumer have readily available information to take the
decision e.g. internet, friends. Consumers evaluate alternatives based on their brand
perception and belief. Companies need to work hard to develop products, which
match this perception and belief every time. Final purchase decision is taken looking
other’s perception of the brand. Post purchase if expectations meet actual
performance consumer is
satisfied and more likely to
repurchase or recommend
the brand to others.

Business markets, on the

other hand, consist of
individuals and organizations
that buy goods for purposes
of further production, resale,
or redistribution. Businesses
(including government and
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nonprofit organizations) are a market for raw and manufactured materials and parts,
installations, accessory equipment, and supplies and services. The variables
impacting the business buyer are similar to those of the consumer buyer in some
ways but very different in others. The business buyer is usually often more
professional, price-oriented, qualified for the job and risk-averse than the customer
buyer. Moreover, with the business buying climate, the position and power of
potential vendors become more concerned and convincing.

Consumer and business markets and buying behavior have to be understood before
sound marketing plans can be developed.
• Business buyer base is
smaller in comparison to
consumer market.
• Consumer-supplier
relationship is much stronger
in a business market owing to
few players in the field.
• Customer and supplier
are very dependent on each
for survival.
• Buying for the business
is a responsibility of purchase
department which adheres to company rules and regulations.
• The buying decision is influenced by many players ranging from technical
experts to the finance department. This means that sales people have to do
multiple visits and present information to different departments. In business
market there is no distribution channel, thereby reducing overhead cost.

Dealing with the Competition

What is competition?
Competition is the rivalry between companies selling similar products and services
with the goal of achieving
revenue, profit, and
market share growth.
Market competition
motivates companies to
increase sales volume by
utilizing the four
components of the
marketing mix, also
referred to as the four P's.

Michael Porter’s five force

model is appropriate in
identifying competitive
forces, which affect
business in any given environment. These five forces are the threat of companies
from same segment, threat of new entrants in the segment, threat from substitute
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products, threat from the increase in consumer’s bargaining power and threat from
supplier’s bargaining power. If in the same segment there are too many players, if
the segment is reaching saturation, if no further scope of expansion than to continue
operation is difficult for the company. If the entry barrier is low and far from making it
easy for businesses to enter, rendering the segment unattractive, but if the entry
barriers are high, then entering the segment will be better off for the company.

Internal Analysis

An internal analysis examines your organization’s internal environment in order to

assess its resources, competencies, and competitive advantages. Performing an
internal analysis allows you to identify the strengths and weaknesses of your
organization. This knowledge aids the strategic decision making of management
while they carry out the strategy formulation and execution process.

4 Critical Features of Internal Analysis

An internal analysis highlights three factors: an organization’s competency,

resources, and competitive advantage.

Specifically, the study examines strengths and weaknesses, helping firms make
smart decisions that promise business sustainability and profits.

1. Resources are necessary…but not all

An internal analysis highlights several areas of interest to understand and prioritize
benefits as a competitive advantage. Specifically, it examines the usefulness of
resources alongside a company’s primary objectives, mission, and strategies.

‘Resource’ is a broad term. In the case of business, resources tend to be financial,

physical, intangible, and physical assets.

Not all resources are valuable. They may be a hindrance if they don’t help the
company reach goals.

Companies seek long-term competitive advantages. They will invest in resources

that ensure they have a leg up on the competition. But resources that do not merit
benefits must be cut. Otherwise, they become a weakness.

While internal analysis looks at resources as a benefit or disadvantage, the

company’s relationship with resources must be examined too.

2. Resource and company relationships must be positive

How organizations work with resources or the relationship the two have, may put it
on a beneficial path. A company must first understand the resources at their
disposal, how valuable it is, and whether this aligns with business goals or not.

If it is valuable and it aligns with the objectives, the organization will dedicate
appropriate management to foster a relationship that yields an advantage. The
results provided by the resource informs teams whether they’re working well, need to
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configure their plan of action or cut their losses.

3. The strengths of supplies. Strengths has to do with both money and the
organization.
The resources have to be worthwhile. Otherwise it is a suck time and a waste of
energy. Companies need exploitable capital. It needs to offer a competitive edge.
And one that will last a long time, if possible.

4. Internal analysis and Weakness

Weak organizations are at a disadvantage. They are incapable of keeping up with
competitors. And therefore, can never surpass them. The internal analysis will
highlight organizational weaknesses to reduce or eliminate them.

Beginning strategy formulation after this analysis will ensure your strategic plan has
been formulated to take advantage of strengths and opportunities, and offset or
improve weaknesses & threats. Your organization can then be confident that you're
funneling your resources, time, and focus effectively and efficiently.

PESTLE Analysis? A Tool for Business Analysis

What is PESTLE Analysis? PESTLE analysis, which is sometimes referred as PEST

analysis, is a concept in marketing principles. Moreover, this concept is used as a
tool by companies to track the environment they’re operating in or are planning to
launch a new project/product/service etc.

PESTLE is:
1. Political
factors
These factors
determine the
extent to which a
government may
influence the
economy or a
certain industry.
For example, a
government may
impose a new
tax or duty due
to which entire
revenue
generating
structures of
organizations might change. Political factors include tax policies, Fiscal policy, trade
tariffs etc. that a government may levy around the fiscal year and it may affect the
business environment (economic environment) to a great extent.

2. Economic factors
These factors are determinants of an economy’s performance that directly impacts a
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company and have resonating long term effects. For example, a rise in the inflation
rate of any economy would affect the way companies’ price their products and
services. In addition, it will influence a consumer's buying power, and adjust demand
/ supply models for that economy. The economic factors include inflation, interest
rates , foreign exchange rates, trends of economic development, etc. It also
accounts for the FDI (foreign direct investment) depending on certain specific
industries who’re undergoing this analysis.

3. Social factors
These factors scrutinize the social environment of the market, and gauge
determinants like cultural trends, demographics, population analytics etc. An
example for this can be buying trends for Western countries like the US where there
is high demand during the Holiday season.

4. Technological factors
These factors pertain to innovations in technology that may affect the operations of
the industry and the market favorably or unfavorably. This refers to automation,
research and development and the amount of technological awareness that a market
possesses.

5. Legal factors
These factors have both external and internal sides. There are certain regulations
that influence a specific country 's market climate and there are other policies that
companies adopt for themselves. Legal research takes these two viewpoints into
account and then outlines the methods in the light of these rules. For example,
consumer laws, safety standards, labor laws etc.

6. Environmental factors
These factors include all those that influence or are determined by the surrounding
environment. This aspect of the PESTLE is crucial for certain industries particularly
for example tourism, farming, agriculture etc. Factors of a business environmental
analysis include but are not limited to climate, weather, geographical location, global
changes in climate, environmental offsets etc.

There are certain questions that one needs to ask while conducting this analysis,
which give them an idea of what things to keep in mind. They are:

• What is the political situation of the country and how can it affect the industry?
• What are the prevalent economic factors?
• How much importance does culture has in the market and what are its
determinants?
• What technological innovations are likely to pop up and affect the market
structure?
• Are there any current legislations that regulate the industry or can there be
any change in the legislations for the industry?
• What are the environmental concerns for the industry?

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Segmenting, targeting, positioning and differentiation

A marketing strategy is all of a company's marketing goals and objectives combined

into a single comprehensive plan. ... Put simply; a marketing strategy is a strategy
designed to promote a good or service and make a profit.

Marketing’s goal is to create value for

customers and build profitable customer
relationships in order to capture value
back afterwards. But how does the
company create this customer value? The
marketing strategy addresses exactly that.
It is the marketing logic by which the firm
wants to create this customer value and
achieve these profitable customer
relationships. But consumers are in the centre of marketing. Therefore, we should
not just establish a marketing strategy – it should be a customer-driven marketing
strategy.
First of all, the company has to know which customers it will serve. This will segment
the market on the basis of certain parameters applicable to the company. Instead, it
will pick one or more parts of the market to cover. We call these two steps
segmentation and targeting. Finally, the company decides how it is going to serve
the selected customers. This involves differentiating itself from other offerings in the
market (differentiation) and aiming at a position in the market and in customers’
minds (positioning).

To do so, the company must classify the overall market, then break it into smaller
segments. Next, pick the most promising ones and then concentrate on how the
selected segments will support and please the customers. Through offering superior
value , the company will never ignore the critical importance of centring the
marketing campaign around the needs of the customers. Only then, it can survive in
today’s competitive marketplace. But before we can satisfy customers, we first have
to understand their needs and wants. Therefore, the process of establishing a
marketing strategy requires thorough and careful customer analysis.

Segmentation – Step 1 of the Marketing Strategy

Marketers cannot appeal to all buyers in all markets OR appeal in the same way
(diverse needs). Often firms identify the segments it can serve best to build the right
relationships with the right customers. To create value for targeted customers, the
firm must segment, target, position (perception – think of the product in a particular
way) & differentiate its product.

Market Segmentation is the process of dividing a market up into distinct groups of

buyers who have different needs, characteristics or behaviours, and who might
require separate products or marketing programs. A Segment is a group of
consumers who respond in similar way to a given set of marketing efforts (demand is
influenced by the same factors).

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Bases Of Segmentation
▪ Geographic – nations, states, regions, cities
▪ Demographic – age (glare, taste, touch), gender, family size, family life
cycle, income, occupation, religion, race, nationality
▪ Psychographic – social class, lifestyle, socio-economic, values - AIO or
personality characteristics
▪ Behavioral – occasions (Valentine’s Day), types of benefits sought, user
status (new, regular, ex/non), usage rate, loyalty status, attitude &
readiness stage

Marketers use multiple segmentation bases to get a smaller & better defined target
group. E.g. Geo-Demographic Segmentation – GEO - City, DEMO - low income =
low income city dwellers.
• Business Markets are segmented by personal characteristics,
demographics, operating variables, situational factors & purchasing
approaches.
• International Markets are segmented by Geographic’s, Economics
(Developed), Political/Legal, Cultural (language). Inter-Market
Segmentation is segments of consumers with similar needs/buying
behaviours located in different countries.

Requirements For Effective Segmentation

1. Measurable – size, purchasing power & profile of the segment must
be measurable
2. Accessible – can effectively reach & serve the segment
3. Substantial – large or profitable enough to serve
4. Differentiable – the segments are conceptually distinguishable &
respond differently to marketing mix programs
5. Actionable – effective programs can be designed for attracting &
serving the segments
Targeting – Step 2 of the Marketing Strategy

Targeting is about evaluating each segment’s attractiveness & selecting

1 or more segments to enter. A target market is a group of customers
for whom a seller designs a particular marketing mix.

Evaluating Market Segments

▪ Size & Growth – collect data on growth rates, sales & expected
profitability. Right size & growth is a relative matter
▪ Structural Attractiveness – number & aggressiveness of competitors,
substitute products & powerful buyers/suppliers
▪ Company Objectives & Resources – Mesh with the company’s long run
objectives

Selecting Target Market Segments

▪ Undifferentiated/Mass Marketing
Ignore market segment differences & target the whole market with 1 offer
(to appeal to the most buyers)

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Focuses on the common needs of consumers rather than on what is

different

▪ Differentiated/Segmented Marketing
Firm decides to target several market segments & designs separate offers
for each one
Gain stronger market position & more sales in each targeted segment
Attain higher total sales but usually at a higher costs (compared to mass
marketing)
E.g. Toyota Corporation - Corolla, Camry, Aurion + Lexus

▪ Concentrated/Niche Marketing
Firm targets a large share in a few segments or niche’s
Fine tune market mix effectively to its targeted niche
usually less competition – may be overlooked by large competitors
Many firms start up in niches & broaden markets served after
establishment

▪ Micro & Local/Individual Marketing

Tailoring products & marketing programs to the needs/wants of specific
individuals & local customers

Local Marketing – easier with communications technology, higher

marketing costs, may dilute brand image
Individual Marketing – 1 to 1 marketing, custom made products, new
technologies help e.g. Nike+.

Choosing A Market Coverage Strategy

I. Limited Resources? - Concentrated

II. Uniform Products? (steel, grapes) - Mass/Undifferentiated,
III. Many Products? - Differentiated
IV. Competitor Uses Segmentation? - Cannot use Undifferentiated
V. Buyers have same tastes? - Undifferentiated
VI. New Product? - Undifferentiated or Concentrated

Differentiation and Positioning – Steps 3 + 4 of the Marketing Strategy

• Positioning
A products position is the way the product is defined by consumers on
important attributes – the place the product occupies in consumers’ minds
relative to competing products - based on perceptions, impressions &
feelings. E.g. Porsche positioned as a performance car.

Step 1 – Identify A Set Of Differentiating Competitive Advantages Upon

Which To Build A Position (General To The Industry)

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Perceptual
Positioning Map
shows consumer
perceptions of their brand
against competing brands
on important buying
dimensions

Step 2 – Identifying And Choosing The Right Competitive Advantages

Competitive advantage (gained by providing greater customer
value - lower prices / more benefits) occurs from differentiation

▪ Product Differentiation – features, performance, style, consistency,

reliability, durability & design
▪ Service Differentiation – speedy, convenient or careful delivery,
installation or repair
▪ Channel Differentiation – channel coverage, expertise & performance.
Amazon has smooth functioning direct channel
▪ People Differentiation – hiring & training employees better than
competitors
▪ Image Differentiation – establish images to convey offerings distinctive
benefits & positioning + symbols & sponsorship

A company needs to avoid under positioning, over positioning &

confused positioning. Differences that are important, distinctive,
superior, communicable, pre-emptive (can’t copy), affordable & profitable
are worth establishing
Possible positioning strategies can include product attributes, benefits
offered usage occasions, users, against a competitor, away from
competitors, product class.

Step 3 – Selecting An Overall Positioning Strategy

The full positioning of a brand is known as the value proposition – the
full mix of benefits upon which a brand is differentiated & positioned. It
is the answer to why should I buy your brand?

▪ More For More – most upscale G/S, higher price, vulnerable to

more for the same. E.g. IPhone
▪ More For The Same – Lexus Vs BMW
▪ Same For Less – Discount stores, Surplus Shop
▪ Less For Much Less – Php 99 Store
▪ More For Less – hard to sustain long term

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Developing A Positioning Statement

This position must be communicated & delivered & monitored & adapted over
time to meet consumer needs. E.g. more for more – high quality products,
high price, distribute through high quality dealers & advertise in high quality
media.

Please refer to the references below to further

understand Marketing Management and
its importance to an organization.

http://destinydawnmarie.blogspot.com/2007/04/analyzing-consumer-and-business-
markets.html
https://www.executestrategy.net/blog/internal-analysis
https://www.managementstudyguide.com/competition-strategy.htm
https://pestleanalysis.com/what-is-pestle-analysis/
https://www.managementstudyguide.com/consumer-buying-behaviour.htm
http://www.unistudyguides.com/wiki/Topic_5_-
Marketing_Strategy:Segmenting,_Targeting,_Differentiation_And_Positioning

CONGRATULATIONS, you have finished the 2nd part of the

Marketing Management course. As to how much you have
learned and understood, make a list of 5 of your favorite
brands and their major competitor. Make an analysis of
each brand.
• Name: ________
• Product/service: (brief description including major features and benefits)
• Pricing: _________
• Major strengths of competing brand versus your product/service: ________
• Major weaknesses of competing brand versus your product/service: _________

Great job! We just finished the coverage of the 2nd module of the
course Marketing Management. At this point, you are to apply what
you have learned in the first 2 modules.

Here’s what you need to do: (Individual activity)

VII. Give an example of a product and provide the ff: Brand
name, features, advantages & benefits; price, place of distribution
and promotion.
VIII. Then, list the market segment(s) that is being targeted by this product. Briefly
describe each segment.

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• Any product, good, or service that is developed must have a

target market in mind in order to be effectively marketed and sold.
• There are six types of target markets: a) Consumer Markets;
b) Industrial Markets (made up of industrial companies); c)
Commercial Markets; d) Government Markets; e) International and
Global Markets and f) Markets segmented for strategic targets.
• Some may find the term or label “consumer” somewhat offensive as it is
considered to be more descriptive of plain consumption rather than recognizing
the person behind the purchase.
• It is important to note that consumers (or customers) play a vital role in the
economic system of a nation.
• Marketers are now starting to work on individualizing the concept of “A
Consumer,” by engaging in personalized marketing, permission marketing, and
mass customization.
• Markets can be more tightly defined as a people who have a true need or
want for the company’s offering, the ability to pay for it, and the willingness
and authority to buy it. The total number of buyers must be large enough to be
profitable for the company.
• Markets can also be a place such as a shopping center. This identification of
markets is useful for marketing decision-making purposes because
geographic factors influence factors such as product features , quality,
location of facilities and promotional design.

Do you have points for clarification? Write your

questions below and after your question is
answered, write the answers, as well.

QUESTIONS ANSWER
1.
2.
3.

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∙ consumer behavior ∙ consumer purchase decisions

∙ consumer buying decision-making ∙ consumer consumption
∙ buyer behavior ∙ business market
∙ consumer attitudes ∙ consumer perception
∙ consumer culture ∙ consumer motivation

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Module 3- Product and Market Development/ Managing the total Marketing

Effort

Unit Learning Outcomes: At the end of this unit, you are expected to:

1. Discuss important decisions in developing a product & market development

strategy.
2. Discuss how a company build and manage its product offerings and brand
equity.
3. Discuss the common challenges of developing successful new products
4. Analyze what steps can a company take to build a stronger customer focused
culture.
5. Assess how a company can improve its marketing-implementation skills.

METALANGUAGE
The marketing organization will have to redefine its role from managing customer interactions to
integrating and managing all the company’s customer-facing processes. Those responsible for the
marketing function must not only develop effective marketing plans but also implement them
successfully.

Here’s a glossary of some of the most common terms you’ll encounter as we go along.

• Marketing concept -The notion that customers form the starting point for all business planning
• Marketing information system (MIS) -A sub-system within the Management Information System
(MIS) comprised of people, equipment and procedures to gather, sort, analyze, evaluate and
distribute information for marketing decision making
• New product development (NPD)- covers the complete process of bringing a new product to
market.
• Marketing strategy- is based on research that focuses on a business's competitors, customers,
market size and the potential for market growth. The strategy will help to determine what
aspects of the business have the most influence on its customers.
• Strategic analysis refers to the process of conducting research on a company and its operating
environment to formulate a strategy. ... Identifying and evaluating data relevant to the
company's strategy. Defining the internal and external environments to be analyzed.

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Product development - involves developing new

products or services and placing them into existing
markets.

A company can develop a new product by two ways:

• Acquisition- To buy a patent or license to produce other’s product.

• New Product Development- A new product means original products, product
improvements and modification and new brand that a firm develops through
his own efforts and research.

There are six stages of new product development

1. Idea Generation
To start a new product it is needed to make a system, search for new product ideas.
To develop a new product the company has to generate so many ideas. For
example, Pharmaceutical companies may require about 8000 starting ideas for a
successful new product.

Resources to Generate Ideas

• Ideas for new product development includes internal sources. Successful

companies have developed a system, which encourage every employee to
contribute his part to seek new ways of improving production, product and
services. Kodak claims that it gives monetary, holidays, or recognition award
for those employees who submit the best ideas.
• Researching competitor’s products and services is a good source of
generating new ideas.
• Distributors and suppliers can well contribute in developing a new product
idea, because they are very close to the market and know about the problems
and possibilities of new product. Suppliers can also give help, concepts and
materials that can help in the new product development.
• Top management is another source of new ideas generation.
• Other sources of generation ideas include investors, marketing research
firms, industrial publication, and advertising agencies.

2. Idea Screening
When the company collect ideas from different resources the stage come to screen
the entire ideas. In screening company must avoid two types of errors:

• Drop Error means that when a company drop a good idea, if a company
dismiss many drop errors it standards are too conservative.
• Go Error occurs when company allow a poor idea to move in development
and commercialization.

The screening purpose is to drop poor ideas, as soon it is possible. Most

businesses need the definition of new product concepts in the standard form which
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can be checked by the standard committee. The definition shows the product
concept of the target market size, the quality of the product, the time and expense of
production, the cost of manufacturing and the rate of return. The executive
committee reviews the proposal under a collection of certitude.

3. Business Analysis
After management develops the product concept and marketing strategy, it can
evaluate the proposal’s business attractiveness. Management needs to prepare
sales, costs, and profit projections to determine business objectives. The
organization can look at sales history to predict sales, and perform consumer opinion
surveys. To determine the product amount, it will then measure the minimum and
maximum revenue. After estimating the cost and profit required for the commodity,
including marketing expenses for manufacturing R&D, and funding costs.

4. Product Development
If the production concept passes the business test, it moves to R&D or engineering
to be developed into a physical production. This stage is also called large jump
investment.

The R&D department will develop one or more physical versions of the product
concept. It will be hopeful to design a prototype that will satisfy consumers, and can
be produced quickly over at budgeted cost. It may take a week, a month, or a year.
The prototype must have required functional features, and also convey the intended
psychological characteristics.

5. Testing Market
After the satisfaction of the management with functional and physical performance
the product is ready to dress up with a brand name and packing and put into market
test. Marketing testing costs can be high, and it can take time for rivals to achieve
advantages. If management is sure about new product, otherwise the company will
do little to no marketing research.

Company usually select three ways for using test marketing:

• Standard Marketing. A company finds a small number of representative test
cities and conduct marketing campaign and uses different ways (consumers &
distributors surveys etc) to find the performance of new product.
• Controlled Marketing. Under this method a research firm manages a panel of
stores that will carry new products for fee. The research firm deliver the
product to specific stores and controls shelf position. Sales result can be
measured through electronic scanner at checkout.
• Simulated Cost Marketing. In this marketing a research firm shows ads and
promotion form a variety of products including new product promotion.
Company gives some amount to customers and invites them at selected
stores. The researchers are studying how many customers are buying new
goods. Then they question the reason for purchasing a new product, or not.
Via phone and other tools the company stays in contact with customers and
asks them about the use and quality of a new product.

6. Commercialization
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It is the next stage when the company introduce new product into market. Company
will face its largest costs. In this stage the company must arrange full scale
manufacturing facility. The company may spend in millions on advertising, sales
promotion of new product in the first year.

Timing. To launch a new product market entry time is very important. If another
company is near to launch the product, company has three choices:

• First enter his product

• Parallel entry of the product
• Late entry of the product.

• Where (Geographic Strategy). The company must decide to launch a new

product in a single locality, a region, in a nation or launched it internationally.

• To whom (Target Market Prospect). Within the rollout markets, the company
must target its initial distribution and promotion to the best prospects.

• How (Introduce Market Strength). The company should develop an action

plan for introduction the new product into the rollout markets.

Following are some common examples of product development.

• Packing wheat flour in retail bags for household consumption.

• Packing cooking oil in retail pouches for household consumption.
• Converting land line phones into wireless handsets for easy portability and
full-time access to communication.
• Modify desktop computers into light-weight laptops to ease portability.
• Transform a traditional library into an e-library to facilitate faster searching and
accessibility of electronic books and other digital documents.

Market development
Market development is a marketing strategy in which a company tries to sell an
existing product to a new group of consumers.

It can be done by the seller selling the commodity within a new geographic region.

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Also, it may seek to portray it in different media. If the company currently sells to
young people , for example, it may seek to put ads in magazines that older
consumers read. In other words, it is a strategic step a company takes to exploit an
existing market further. It takes this step rather than trying to look for a new market.
In an effort to boost sales, the company pitches its product to a new segment of
consumers.

Market development also includes trying to get current customers to spend more.

BusinessDictionary.com has the following definition of the term: “The expansion of

the total market for a product or company by:
• entering new segments of the market
• converting non-users into users
• increasing usage per user.

Market development – new users or uses

A market development strategy involves exploiting the market
further. Companies can do this by getting new users. However,
they can also boost sales by getting consumers to use their
products in new ways, i.e., new uses.

We can define ‘new users’ as:

• New demographic segments. In other words, selling to different types

of consumers. For example, if the company has targeted women, it
may now try to target men. Demographics is the study of people, as
well as the factors that affect them. Over the past two decades,
companies which sell cosmetics and skin products have been targeting
men. They 'd just be targeting women customers in the past. New
geographic segments. This means promoting the product in different
parts of the country, or even other countries.
• New psychographic segments. Psychographic segmentation involves
dividing a market into different segments based on consumers’
personality traits, values, or interests. It may also involve dividing the
market into segments based on people’s lifestyles.

Market development – what to consider

Before you implement a market development strategy, you will need
to answer the following questions:

• Is the strategy profitable? If so, what is the likely return on

investment?
• Will you need to introduce modified products?
• Will you need to introduce new products?
• Have you researched your target consumers extensively enough?

Common market development strategies:

Pricing- implementing price structures and strategies to target a set of
customers.
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o Example: Airlines offering a discounted domestic airfare for groups on

off-peaks (July). This strategy is aimed at corporate groups who may
want to conduct their corporate teambuilding activities during this time.

Distribution. Developing new distribution channels to reach target customers

where they shop including physical and digital locations.
o Example: Iced coffee offered through online

Branding. Developing a new brand for products to reach target market.

o Example: Procter & Gamble Microban 24, a line of surface
antibacterial cleaning products that the company says kills bacteria for
24 hours. Microban 24 comes in both sanitizing spray and cleanser
forms and as a bathroom cleaner.

Promotion. Reaching a new target market with tailored marketing messages

such as offers, promotional videos and coupons.
o Example: Starbucks successfully keeps customers engaged with its
gamified mobile app. Integrating the brand’s rewards system with the
ability to customize and order drinks via the app, it makes use of
information such as purchase history and location to get as personal as
possible.

Sales. Developing a pipeline of leads, opportunities and quotes to close sales

with the target market.
o Example: a software company that traditionally sell to large firms begin
to target mid-sized companies.

Managing the Total Marketing Effort

This is in reality the production marketing program's action step, in which a

appropriate marketing mix for a target market is set. For the management of
marketing efforts four functions are adopted which are as follow.

01- Analysis of the Market in which the company identifies the internal strengths and
weaknesses along with the external opportunities and threats.

What is a market analysis?

A market analysis is a quantitative and qualitative assessment of a market. It looks
into the size of the market both in volume and in value, the various customer
segments and buying patterns, the competition, and the economic environment in
terms of barriers to entry and regulation.

How to do a market analysis?

The objectives of the market analysis section of a business plan are to show to
investors that:

• you know your market

• the market is large enough to build a sustainable business

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Elements in analyzing the market:

The first step of the analysis consists in assessing the size of the market.

Demographics and Segmentation

When assessing the size of the market, your approach will depend on the type of
business you are selling to investors. If your business plan is for a small shop or a
restaurant then you need to take a local approach and try to assess the market
around your shop. If you are writing a business plan for a restaurant chain then you
need to assess the market a national level.

Depending on your market you might also want to slice it into different segments.
This is especially relevant if you or your competitors focus only on certain segments.

Volume & Value

There are two factors you need to look at when assessing the size of a market: the
number of potential customers and the value of the market. It is very important to
look at both numbers separately, let's take an example to understand why.

Imagine that you have the opportunity to open a shop either in Town A or in Town B:

Table: Town A vs. Town B

Town A B

Market value Php200m Php 100m

Potential customers 2 big companies 1,000 small companies

Competition 2 competitors 10 competitors

Although Town B looks more competitive (10 competitors vs. 2 in Town A) and a
smaller opportunity (market size of Php 100m vs. Php 200 in Town A), with 1,000
potential customers it is actually a more accessible market than Town A where you
have only 2 potential customers.

Potential customer?

The definition of a potential customer will depend on your type of business. For
example if you are opening a small shop selling office furniture then your market will
be all the companies within your delivery range. As in the previous example, most
organizations are likely to have only one person in charge of buying furniture, and
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when evaluating the number of potential buyers you should not take into account the
scale of such businesses. However, when determining the business value, you will
be factoring it.

Market value

Estimating the market value is often more difficult than assessing the number of
potential customers. The first thing to do is to see if the figure is publicly available as
either published by a consultancy firm or by a state body. It is very likely that you will
find at least a number on a national level.

If not then you can either buy some market research or try to estimate it yourself.

Methods for building an estimate

There are 2 methods that can be used to build estimates: the bottom up approach or
the top down approach.

The bottom up approach consist in building a global number starting with unitary
values. In our case the number of potential clients multiplied by an average
transaction value.

When coming up with an estimate yourself it is always a good practice to test both
the bottom up and top down approaches and to compare the results. If the numbers
are too far away then you probably missed something or used the wrong proxy.

Once you have estimated the market size you need to explain to your reader which
segment(s) of the market you view as your target market.

Target Market
The target market is the type of customers you target within the market. For example
if you are selling jewellery you can either be a generalist or decide to focus on the
high end or the lower end of the market. This section is relevant when your market
has clear segments with different drivers of demand. In my example of jewels, value
for money would be one of the drivers of the lower end market whereas exclusivity
and prestige would drive the high end.

Now it is time to focus on the more qualitative side of the market analysis by looking
at what drives the demand.

Market Need
This section is very important as it is where you show your potential investor that you
have an intimate knowledge of your market. You know why they buy!

Here you need to get into the details of the drivers of demand for your product or
services. One way to look at what a driver is, is to look at takeaway coffee. One of
the drivers for coffee is consistency. The coffee one buys in a chain is not
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necessarily better than the one from the independent coffee shop next door. But if
you are not from the area then you don't know what the independent coffee shop's
coffee is worth. Whereas you know that the coffee from the chain will taste just like in
every other shop of this chain. Hence most people on the move buy coffee from
chains rather than independent coffee shops.

From a tactical point of view, this section is also where you need to place your
competitive edge without mentioning it explicitly. In the following sections of your
business plan you are going to talk about your competition and their strengths,
weaknesses and market positioning before reaching the Strategy section in which
you'll explain your own market positioning. What you want to do is prepare the
reader to embrace your positioning and invest in your company.

To do so you need to highlight in this section some of the drivers that your
competition has not been focussing on. A quick example for an independent coffee
shop surrounded by coffee chains would be to say that on top of consistency, which
is relevant for people on the move. Another driver for coffee shop demand is the
place itself as what coffee shops sell before most is a place for people to meet. You
'd then show your competition. And in the Strategy section clarify that you should
concentrate on locals looking for a place to meet rather than takeaway coffee and
that the quality and atmosphere of your local shop will be your differentiating factor.

Competition
The aim of analyzing competition is to give a fair view of who you are competing
against. You need to explain your competitors' positioning and describe their
strengths and weaknesses. You should write this part in parallel with the Competitive
Edge part of the Strategy section.

The idea here is to analyse your competitors angle to the market in order to find a
weakness that your company will be able to use in its own market positioning.

One way to carry the analysis is to benchmark your competitor against each of the
key drivers of demand for your market (price, quality, add-on services, etc.) and
present the results in a table.

Below is an example for a furniture shop in Cebu City. As you can see from the table
all the actors on the market are currently focused on the low medium range of the
market leaving the space free for a high end focused new player.

Table: side by side competitive analysis

Competitor 1 Competitor 2 Competitor 3

Company (Small shop) (Small shop) (Chain) Company A

Revenues Php 750,000 N.A. Php 1,500,000 Php 400,000

(year 1 target)

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N0. of 10 5 20 5
employees

Size 1 shop in Liloan, 1 shop in 3 shops in Colon 1 shop in

Cebu, Maryville, Lapu-Lapu
1 shop in Talamban City
Consolacion,
Cebu

Price Low Average Average High

Quality Low Average Average Superior

Choice Large Low Very large Average

Delivery No Php250 Free w/ minimum Free

purchase Php 50k
Barriers to Entry
This section is all about answering two questions from your investors:
1. what prevents someone from opening a shop in front of yours and take 50%
of your business?
2. having answered the previous question what makes you think you will be
successful in trying to enter this market? (start-up only)
As you would have guess barriers to entry are great. Investors love them and there
is one reason for this: it protects your business from new competition!

Here are a few examples of barriers to entry:

• Investment (project that require a substantial investment)
• Technology (sophisticated technology a website is not one, knowing how to
process uranium is)
• Brand (the huge marketing costs required to get to a certain level of
recognition)
• Regulation (licenses and concessions in particular)
• Access to resources (exclusivity with suppliers, proprietary resources)
• Access to distribution channels (exclusivity with distributors, proprietary
network)
• Location (a shop along Monteverde Street)

The answer to the questions above will be highly dependent on your type of
business, your management team and any relations it might have. Therefore it is
hard for me to give any general tips about it.

Regulation
If legislation is an obstacle to your sector entry then I will encourage you to integrate
this section with the previous section. Otherwise this section would be only a tick of
the box exercise where you clarify the key regulations that apply to your company
and what measures you should take to remain consistent with it.

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02- Marketing Planning in which certain marketing plans or strategies are developed
so that the overall objective of the marketing should be accomplished.

The importance of planning

The planning of marketing strategies can be seen as a welcome diversion from the
day-to-day running of a company , providing the ability to bring some fresh thought
into where the business needs to go. Perhaps it can be seen as a necessary evil, a
time-consuming procedure that creates a report that dates rapidly and will soon be
forgotten.

‘Yet plan we must. The process of planning may be more important than the plans
that emerge. The planning occasion requires managers to schedule “thinking time”.
Managers must think about what has happened, what is happening, and what might
happen. Managers must set goals and get agreement. The goals must be
communicated to everyone. Progress towards the goals must be measured.
Corrective actions must be taken when the goals are not being achieved. Thus
planning turns out to be an intrinsic part of good management.’ Kotler on Marketing,
2018.

‘Marketing planning is a systematic

process involving the assessment of
marketing opportunities and resources, the
determination of marketing objectives and
the development of a plan for
implementation and control.

03- Marketing Implementation in which the

developed plans and strategies are
practically implemented in order to achieve
the marketing objectives.

The planning process involves a series of

steps in which it is asked:

1. Where are we now?

2. Where do we want to be?
3. How might we get there?
4. Which way is best?
5. How can we ensure arrival?

1. Where are we now?

This involves a full analysis of the company’s present situation, with an external and
internal audit. Kotler suggests there are six specific dimensions of interest to the
auditor:

• External environment – macro and micro

• Internal environment – covering:

• Marketing strategy
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• Marketing organization
• Marketing systems
• Marketing productivity
• Marketing functions

The audit information is then processed into a SWOT system in which

particular focus is put on assessing strategic drift, competitive advantage
and organizational efficiency. The process of adapting the organizational
strengths to the market place and addressing the limitations takes place
from this study.

2. Where do we want to be?

The mission is now set, objectives decided upon, and strategies related to the
product portfolio and competition decided. The company also decides who its
customers are: the STP process – segmentation, targeting and positioning.

The organization needs to examine its portfolio of products or companies and decide
what strategy to adopt – for example, whether to grow or divest a particular product.

Thereafter, a strategic strategy is implemented with the company taking on a specific

competitive role, one that will give it an edge over competition. Does the business
take a niche role , for example, not challenge the big players, or does it attempt to go
for rapid growth by taking market share from competitors?

Having settled on a particular market to enter or exploit, the marketer must carefully
divide up the market by identifiable segments – segmentation – in order to target the
most profitable areas. Positioning is then decided upon in order to place the product
clearly in the minds of consumers against that of the competition so that it is clearly
differentiated. For example, having segmented the car market and decided to target
the family market with its estates, Volvo positioned its cars as the vehicle for the
safety conscious.

3. How might we get there?

The marketing mix is the toolbox from which marketers can choose elements to
influence the target market. The four Ps – product, price, place and promotion –
make up the marketing mix. Also can be added physical evidence, people and
process to make up the full mix, especially in relation to services.

With the ever increasing digital usage of society, all aspects of the marketing mix
should be considered with digital in mind. Although it is not advisable for companies
to take the entirely digital route, it should play a large part in the planning of the
strategies.

4. Which way is best?

Decisions need to be taken about what is important.

5. How can we ensure arrival?

Following through on the strategy and decisions about the marketing mix, it is
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important to make sure that the plan is implemented. What practical steps are going
to be followed to implement the plan? Internal marketing might be necessary in order
to ensure that everyone in the organization is pulling in the same direction.

The plan and its objectives must also be monitored and evaluated. The success of
the plan can be measured and further steps taken, if problems arise, to correct the
situation.

The beauty of the digital marketing era is that monitoring and evaluation can be far
more in depth than they have ever been before, aiding both in the success of the
present campaign and future planning of strategies.

04- Marketing Control in which the performance results of the marketing plans and
strategies are evaluated and necessary steps are taken to ensure the
accomplishment of overall marketing objectives of the company.

Following are the five vital tools used under the Marketing plan control mechanism:

Marketing Control Process

Marketing control is a systematic and integrated process. A marketer follows the

following steps while exercising control over the marketing operation in an
organization:

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1. Determining Marketing Objectives: The initial step in marketing control is the

setting up of the marketing goals, which are in alignment with the
organizational objectives.

2. Establishing Performance Standards: To streamline the marketing process,

benchmarking is essential. Therefore, performance standards are set for
carrying out marketing operations.

3. Comparing Results with Standard Performance: The actual marketing

performance is compared and matched with the set standards and variation is
measured.

4. Analyzing the Deviations: This difference is then examined to find out the
areas which require correction, and if the deviation exceeds the decided
range, it should be informed to the top management.

5. Rectification and Improvement: After studying the problem area responsible

for low performance, necessary steps should be taken to fill in the gap
between the actual and expected returns.

Thus, marketing can be seen as a complete function, which needs to be performed

successfully through proper control over the related activities, to ascertain the
achievement of the set goals and objectives.

https://www.businessstudynotes.com/marketing/principle-of- marketing/explain-the-
marketing-process-in-detail/
https://simplicable.com/new/market-development
http://studylecturenotes.com/6-stages-of-new-product-development/
https://theinvestorsbook.com/marketing-control.html
http://www.yourarticlelibrary.com/products/product-development-notes-on-new-
product-development-process/13582

Watch https://www.youtube.com/watch?v=zdzUqrFoq3o and

write a not less than 300 word reflection. Submit by
______________________.

I. Case Analysis (Individual)

PyC Connect: Investing in Social Media, Video and Mobile

Background
PyC is a cosmetic retail store exhibiting numerous prestige brands
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of cosmetics including makeup, skincare, body, color fragrance, smile care and hair
care even having their own label. PyC was started and founded by Naome Basilio in
2008 as a single perfume shop in the Philippines. Now it is recognized by variety of
cosmetic brands and making itself prominent in the market, PyC operates 250 stores
in around 20 cities and has 450 stores. PyC has been derived in honor of Basilio’s
parents.
Naome Basilio started from one small perfume shop and her determination to
expand led her to operate 54 perfume shops throughout the Philippines and
continued to expand and the consequences can be seen with bare eyes today. PyC
is operating online also as ‘PyC Connect’ which sells the foremost beauty brands on
its site. PyC Connect started in the Davao City in 2018 and is currently one of the
largest perfume stores in the Philippines.
Cynthia Basilio, Senior Vice President of PyC Connect is charged with developing a
digital marketing strategy for PyC, a prestige beauty care retail chain. In your write-
up, you should review the company’s strategic position and provide specific
recommendations about how she should allocate her budget across the various
digital categories. What should be the strategic goal of PyC’s digital and social
marketing programs? How can she “win” in the digital space? Which segment is
most profitable and what implications does that have for marketing communications?
You may have to make some assumptions and estimates in developing your
marketing plan. These assumptions and estimates should be clearly articulated and
defended. You should defend your full set of recommendations using
appropriate qualitative and quantitative analyses and you should make clear what
this choice would mean for the rest of the marketing plan. Throughout you should
address the risks and uncertainties of your plan, as well as be clear about why your
recommended plan is better than alternatives, as though you were defending your
decisions to senior management.

II. Marketing plan project:

Instructions to be given by the professor.

Each member of the team should upload a docx or PDF copy of the marketing plan
for final exams. More details are to be posted in the coming days.

• A company must establish a series of successful products

over time if it wants to maintain a consistent stream of sales, or
grow sales over time.
• New product generation involves multiple stages and a high
level of financial investment, and has no guarantee of success.
• When a new product is introduced, companies must still convince buyers to
adopt them into their routines, in order for sales to be consistent.

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• Innovation may be ‘continuous’ or ‘discontinuous’ – the former occurring in

established markets, while the latter has the potential to create new markets or
consumer behaviors.

Questions or point of clarifications?

• Innovation ∙ New product

• New product development ∙ Acquisition
• Market analysis ∙ Marketing strategy
• Marketing organization ∙ Marketing systems
• Marketing productivity ∙ Marketing functions

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PART 3: COURSE SCHEDULE

This section calendars all the activities and exercises, including readings
and lectures, as well as time for making assignments and doing other
requirements, in a programmed schedule by days and weeks, to help the
students in SDL pacing, regardless of mode of delivery (OBD or DED).
Note: reading assignments can be calendared for 3 days or for a week with
performance tasks (essay or reflection paper).

Activity Date Where to submit

VI. Online Code of Conduct

(2) All teachers/Course Facilitators and students are expected to

abide by an honor code of conduct, and thus everyone and all
are exhorted to exercise self- management andself-regulation.

(3) Facultymembersareguidedbyutmostprofessionalconductaslear
ningfacilitators in holding OBD and DED conduct. Any breach
and violation shall be dealt with properly under existing
guidelines, specifically on social media conduct (OPM 21.15)
and personnel discipline (OPM21.11).

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Course prepared by:

Melanie Joy Lim-Barriga

Name of Course Facilitator/ Faculty

Reviewed by:

Joanna Lynn Mercado

Program Head, Marketing Management

Approved by

Jestita Gurrea
Asst. Dean

Vicente Salvador E. Montano

Dean

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