CHAPTER 1 1.

Price Shoppers-This group

is interested in the best deal
Target market is the buyer of the
for a product. They are
product.
commonly called as
According to Philip Kotler PRAKTIKAL and price
(p.d.), a target market is a well- conscious.
defined set of customers whose 2. Brand-Loyal Customers –
needs the organization plans to This group believes that their
satisfy. present brands are superior
to others and are willing to
DESCRIPTION OF THE TARGET
pay fair prices for products
MARKET
just into acquire it.
1. Distinguish or determine the 3. Status Seekers – People
consumer from the customer. who are interested in
2. Explore the benefits of the prestigious or called
proposed product to the (signature) brands or known
target market product categories and
3. How and why would the willing to pay at any price.
target market buy the 4. Service or Feature
product or service? Shoppers – This group seeks
4. Is there a potential to a high value on customer
increase the target market? service and product features
and will pay for them.
Business-to-business markets
5. Convenience Shoppers –
include:
People who value nearby
1. Target market locations, long store hours
2. Frequency of product and are willing to pay for
purchase easier shopping.
3. Tendency for replacement
NEW CONSUMER REALITIES IN
needs versus expansion
2016
purchasing process
4. Estimates of market size, Seamless Sensation – The online
initial targeted geographic and offline experiences are
area, enterprise’s targeted intertwined as consumers navigate.
market share.
TIPS IN IDENTIFYING MARKET
Business-to-consumer markets PROBLEM
include:
1. Focusing only on
1. Demographic factors, such as innovation and the
income level, age range, competition
gender, educational level, 2. Focusing only on
Ethnicity of the target customers
market, 3. Focusing only on revenue
2. Psychographic factors of the
PROBLEM-SOLVING RESEARCH
target market;
3. Behavioural factors such as 1. Distribution Research: It
frequency of product determines on how to
purchase and shopping transfer the product from the
behavior of the target manufacturer to ultimate
market. user ko
2. Market Segmentation:
Categories of Consumer
They are group customers by
 similar characteristics or
similar purchase behaviours.
These are the hindrances or
3. Pricing Research: It
something material that block or
determines the ideal price for
intend to block passage. It is a
the product. Setting the price
natural formation or structure that
for the product is one of the
prevents or hinders movement or
most important marketing
action or even separates the new
steps.
businesses.
4. Product Research: It tests
the new or revised products
or completing test Marketing.
Here are a few examples of barriers
5. Promotional Research: It
to entry:
determines the best research
in the area of disseminating
information
1. Investment (project that
A market analysis is a requires a huge investment)
quantitative and qualitative 2. Technology (application of
assessment of a market ability to the combination of scientific
respond positively. and engineering Knowledge)

HOW TO DO A MARKET 3.Investment (project that requires

ANALYSIS? a huge investment)

1. Demographics and 4. Brand (the huge marketing costs

Segmentation required to get to a certain level of
appreciation)
Demographics is the statistical
characteristics of human 5. Regulation (licenses and
population (as age or income) permits in particular)
6. Access to resources
Segmentation is the process of
( exclusivity with suppliers,
dividing into segments with similar
accessibility of suppliers)
characteristics. Markets are needed
7. Access to distribution
to slice it into different segments.
channels (exclusivity with
2. Target Market distributors, availability of
intermediaries)
This is the type of customers that
8. Location (place, venue where
are focused within the market. It is
the business is located)
focused on the more qualitative
side of the market analysis by CHAPTER 5
looking at what drives the demand.
BRAND NAME
3. Market Need
Based from Dr. Pereda from his
Investors must determine the book Principles of Marketing, a
needs of the market through brand is name or mark that is
analysis based from research intended to identify the seller’s
conducted focusing on their needs. product and differentiate it from
the product of the competitors.
4. Competition
PRODUCT BRANDING
Determining the competitor’s
positioning and describe their A brand is a name or mark that is
strengths and weaknesses. intended to identify the seller’s
product and differentiate it from
the product of the competitors.
BARRIERS TO ENTRY
Advantages of Branding Advantages of Co-Branding

1. Brands make it easy to 1. It creates broader customer

identify the product or appeal.
service. 2. It develops greater brand
2. It assures the buyer that they equity.
get the same quality of 3. It expands the middlemen
products. brand in the market.
3. It reduces price comparison
Disadvantages of Co-Branding
4. It adds prestige to the
product of the seller 1. Coordination is oftentimes
5. It helps in product market difficult with the producer
segmentation and the middlemen.
2. It entails legal contract which
can be complex and difficult .
Selecting a Good Brand Name 3. Licensing agreement is
necessary.
1. It should suggest about the
4. It requires mutual trust
product or service
between the two parties.
2. It must be easy to pronounce
and remember THE DIFFERENT STRATEGIES
3. It must be simple and short USED TO SELL MORE
PRODUCTS

1. Branding Within a Product

Mix
4. It must be distinct or different
a. Separate Name for
from others
Each Product – This is
5. It must be adaptable to new
often termed as family
company product that may
branding. It is simple
be added.
and less expensive to
6. It must be capable of
introduce new and
registration and legal
related products to a
protection
line. The prestige of the
BRANDING STRATEGIES brand can be spread
more easily as it
The producers and middlemen are
appears on several
partners in the distribution of the
products.
products to their target consumers.
b. The Company Name
1. Producer’s Strategy Combined with the
Product Name – The
The manufacturers have to
company name is best
establish a wide distribution
suited for marketing
system and rely heavily on their
products that are
capability to penetrate the market
related in quality and
with the amount of resources in
use. Customers look at
promoting the brand to its target
quality products and
market.
mind setting for the
2. Middleman’s Strategy brand quality is the
objective of the
This is also called as co-branding
marketing organization.
where the producer and sole
distributor carry the brand name of
the manufacturer and that of the
middlemen.
 c. The Company Name brand acquisition is
Alone – Branding with resorted in order to
the company name protect the existing
alone places a great brand that had reached
burden on the its maturity and
producers’ reputation declining stage. This is
for quality. Other to refocus customer
products carrying the attention to new
same brand name may innovative products
not make the grade with new brand name
and this will affect the with different features
other products in the and added benefits to
market. the customer.
2. Branding for Market
REASONS FOR THE
Saturation
EXISTENCE OF BRANDS
a. Introduction of Line
Extension – This is the 1. Identification-Brands
strategy where brand enable consumers to
names Introductied into easily distinguish one
new forms and sizes of product from another.
an existing product 2. Protection – It
category. The are enables the owner of
extend organization the brand name to
might introduce line enjoy the goodwill
variety and to come associated with the
and low risk products to name so as not to be
meet customer taken advantage by
demand for variety and others.
to command more shelf 3. Positioning – It
space of the enables the owner to
middlemen. communicate the
b. Introduction of benefits of his product
Brand Extension – vis-à-vis competition.
This strategy calls for
CRITERIA FOR CHOOSING A
the extension of the
BRAND NAME
brand name to new or
modified product 1. Distinctive – Is the brand
categories. It aims to closely associated with
penetrate the market another product?
easily with new product 2. Word Association – Does it
categories as the brand have a pleasant meaning?
name had performed 3. Legal Requirements – Can
excellently in the it be registered?
market. This will 4. Memorability-Can your
develop product name be remembered
recognition with low easily?
advertising cost. 5. Pronounceability – Can it
c. Introduction of New be pronounced easily?
Brand Name It is the 6. Limitations – Is the brand
strategy where a new name too limiting to be
brand name is attached used for expansion?
to a new product
THE STRUCTURE OF PRODUCT
category. Corporate
DESCRIPTION
 1. Identifier It is the customer’s rejection or
2. Title or topic acceptance of the product. This
3. Purpose or aims could be true in clothing, cars or
4. Composition furniture and other fixtures.
5. Derivation
3. Product Quality
6. Format and presentation
7. Development Skill This is set of features and
Required attributes of a product or service
8. Quality criteria that determine its ability to satisfy
9. Quality tolerances human needs.
10. Quality method
4. Product Warrantees
11. Quality skills
required One very important attribute of the
12. Quality product is warrantee. It is the state
Responsibilities where the buyer is assured that the
product meets the specifications
The product description should be
stated in the product labels.
AUDIENCE-FRIENDLY, speak to
the target, so that conversions will PROTOTYPE USEFULNESS FOR
be optimized. LICENSING

Based from Josiah Go’s book on Prototype development is not

Fundamentals of Marketing essential, but can add value to a
project.
Convenience products are the
lowest risk and lowest effort Step 1: Document It
products where either none or very
This is the first step of patenting
small decision-making is made by
the idea and keeping it from being
target consumers before buying
stolen. Write the idea down in an
the products.
inventor’s journal and have it
There are two types of convenience signed by a witness.
products:
Step 2: Research It
1. Staple goods such as rice,
The company will need to research
sugar, and other
the idea from a legal and business
commodities, and
standpoint.
2. Impulse goods such as
candies, and snack food Step 3: Make a Prototype

PRODUCT SATISFYING A prototype is a model of the

FEATURES invention that puts into practice all
the things that were written in the
Product patronage in the market is
inventor’s journal
conditioned by the strategies and
policies employed by the Step 4: File a Patent
manufacturer and the marketing
There are two main patents to
organization on the product’s
choose from:
attributes
a. Utility patent (for new
1. Design
processes or machines)
It matters to the elements that b. Design patent (for
collectively form of good or service manufacturing new,
that will satisfy customers and gain non obvious
competitive advantage. ornamental designs). If
the invention is really
2. Product Colors
 valuable, someone will Constructive interaction
infringe
Query
c.
 Variant
Advantages of Prototype:
 Result in
1. It tests and refines the
Paper and pencil
functionality of the design.
2. It makes it possible to test Audio recording
the performance of various
Video recording
materials.
3. It will help you describe your
product more effectively
CHAPTER 6
4. It will encourage others to
take it more seriously. MARKETING MIX is the
combination of controllable
PATENTING
elements or variables needed to
Create a thorough record of the develop strategy to attain
invention. satisfaction to the market
particularly both in customers and
MAKING INVENTION A REALITY
consumers.
1. Create a prototype
MARKETING STRATEGY are the
2. Create a presentation
tactical activities that combine all
3. Present an invention to a
of its marketing goals into one
manufacturer
comprehensive plan. It should be
4. Produce your invention
drawn from market research
5. Advertise your invention
through survey using
EVALUATION OF PROTOTYPE questionnaire, conducting interview
and personal observation.
Participative users based their
evaluation of a paper or machine PRODUCT
prototype on their expectation and
A product is anything that can be
problems to identify usability
offered for satisfaction. It may be
problems.
an idea, a physical entity (a good),
METHOD OF EVALUATION a service, or any combination of
the three.
Planning
PRODUCT DESCRIPTION
RUNNING SESSIONS
NECESSITIES
OUTPUT
1. Cite the uniqueness of
QUALITATIVE EVALUATION product over other existing
TECHNIQUE products in terms of
characteristics, variations
1. Produces a description,
and the like.
usually in non-numeric
2. May be subjective LEVELS OF PRODUCT
methods
Tangible products are the basic
3. Introspection-by designer
physical appearance which can be
– by users
a service or idea having precise
4. Direct observation –
specifications and or model
simple of
number. It is offered under a
THREE GENERAL APPROACH given/specified description.

Simple observation
Augmented product includes the Non-good service is personal
image and service features of a service on the part of the seller,
certain entity. It gives emphasis on most common are the expertise
the intangible benefits that the and profession
customer will be getting from
CUSTOMER SERVICE IN THE
buying the product.
ENTERPRISE
Generic product emphasizes the
1. Define/list the customer
impact of the product to the
service the company can
consumer, not the seller. This will
provide.
signify the purpose of its existence
2. What are the company’s
and the primary objective in
service strengths and
creating the product.
weaknesses?
TYPES OF PRODUCT 3. Give strategies for
improving the company’s
1. Goods are sale of the
customer service.
physical products from the
manufacturer to the CHARACTERISTICS OF
consumer or final and SERVICES
ultimate user.
1. Intangibility is the services
Durable goods are the physical that cannot be displayed,
products that are used over a long transported, stored,
period of time. packaged or inspected before
buying.
Example: Steel, stainless,
2. The credibility of the
appliances
service provided most of the
b. Non-durable goods are the time counts.
physical products that are quickly 3. Inseparability is the service
and easily be consumed or worn provider and services that
out, become obsolete, cannot be separated. It
unfashionable or no longer popular. cannot accomplish the
purpose if one is missing.
Example: Products made with
4. Variability is when the
plastic
service is difficult to
2. Services are intangible standardize because it varies
products that satisfaction can upon the performance of the
be measured in future provider
preferences.
CONSUMER PRODUCTS
Example: Relaxation in salon and
These are goods and services
spa Education from school
destined/produced for the final
a. Rented-goods services are the consumer for personal, family,
consumer rented facility of the or household use.
sellers in a certain period of time.
Convenience products are
Example: Car rental, space or office purchased with the minimum or
for rental less effort because the buyer
has knowledge of product
b.Owned-goods services are the
characteristics prior to shopping
repair and maintenance services
rendered by the sellers to the 1. Staples are low priced items
products of the customer. that are routinely purchased
on a regular basis and are
Example: Laundry business, car
wash
 products that are used every rapidly consumed and are
day. necessary for the day-to-day
2. Impulse products are the operation of the firm.
items that the consumer 4. Component materials are
does not plan to buy. semi-manufactured goods
which undergo further
Shopping products are
changes in form and later to
products that the consumers
be a part of the finished
acquire through further
products.
knowledge and information in
5. Installations are very
order to make final purchase
expensive materials, non-
decision.
portable goods which are
1. Attribute-based shopping used in the production
products provide customers process and do not become
with information and part of the finished
evaluated product features, 6. Fabricated parts are
performance, options, finished products of other
warranties and other factors. companies which form part of
2. Price-based shopping the manufactured
products enable customers to
Market Research is the process
judge product attributes to
or sets of multiple activities that
be the same and look around
link the marketing organization
for the least expensive item.
with its customers through
Specialty products are the information gathering and analysis.
items with particular brands and
Marketing Research Sloven’s
stores to which consumers are
Formula
loyal.
Formula: n= N /1+ Ne²
INDUSTRIAL PRODUCTS
RESEARCH DESIGN MAY BE
QUANTITATIVE OR QUALITATIVE
Industrial products are goods
or services purchased for
use/consumption in the Quantitative is employed on data
production/manufacturing of that have been assigned numerical
other goods or services, in the value.
operation of a business or for
Qualitative mode of research is
resale to other customers.
not based on precise measurement
These are the following: and quantitative claims.

1. Accessory equipment is METHODS OF GATHERING DATA

selected priced portable
1. Observation means a
goods which last long period
gathering of information for
of time, requiring a moderate
research, may be defined as
amount of consumer decision
perceiving data through the
making.
senses: sight, hearing, taste,
2. Raw materials are
touch, and smell.
unprocessed basic materials
2. Questionnaire
from extractive and
3. Interview
agricultural industries.
3. Industrial or operating SAMPLING TECHNIQUES
supplies are inexpensive
convenience goods which are
These are the things needed to be kinds and classes of data and
considered: the size of the information are registered.
population, the study population
PRODUCT LIFE CYCLE
RESPONDENTS OF THE STUDY
The Product Life Cycle concept
These are the person who replies to describes a product’s sales, profits,
something such as a survey or set customers, competitors, and
of questions. They are the sample marketing emphasis from its
size over the population in the beginning until it is removed from
study. the market.

SOURCES OF DATA Stages of Product Life Cycle

The following are abundant sources I. Product

of data or information: Development

1. The Bureau of Census and The company must think of a new

Statistics – population, product.
housing, industry and trade.
The new product planning process
2. The Land Transportation
involves a series of steps:
Commission – vehicles,
cars, trucks, motorcycles, 1. Idea Generation - searching
jeeps etc. and looking for new product
3. The Department of or business opportunities.
Education and its regional The employees, channel
offices, and schools, members, competitors, and
colleges, and universities customers can be a great
(public and private) – source.
where all enrolments and
Methods:
graduates are recorded.
4. The Supreme Court and a. Brainstorming all the
all lower courts of justice members of the group
– where records of judicial can contribute in
cases are kept. sharing ideas,
comments, and
suggestions.
5. All police regencies and b. Analyzing Existing
offices – where all criminal Products a successful
cases are recorded. product that captures
6. The Department of Health great market can be
– where all births, deaths and analyzed as a basis in
pathological cases are creating a new product.
registered. c. Reading Trade
7. The Securities and Publications an
Exchange Commission – inspirational story of a
where all trade, industrial successful
and commercial entrepreneur can lead
establishments and other into a development of a
organizations, profit or non- new product.
profit, are registered d. Visiting Suppliers’
8. All other departments, Facilities – Supplier’s
offices, and entities of the raw materials can be
government, and private used as a method to
organizations, entities or innovate and modify
offices – where different existing product.
 e. Surveys getting production;
feedback coming from distribution.
the customers and
potential market. e. Profitability
2. Idea Screening – ideas time to recover
which are unsuitable, initial cost; per
unattractive, or poor are unit profits;
junked. Ideas together with distribution
attributes are rated on the intermediaries;
basis of a rating from 1-10. control over
3. Concept testing – which price; Return on
have passed the Investment.
screening stage will now
require feedback from the 5. Product Development –
customer. ideas are converted into
4. Business Analysis is a tangible form. This stage
review of market factors, involves:
revenues, cost and trends, a. Product
a. Demand construction: type
Projections – and quality of
sales potential; materials, method of
sales growth; production, production
rate of time and cost
repurchase; requirements per unit,
distribution plan capacity, sizes and
intensity. colors
b. Cost b. Packaging: materials
Projections- used in promotion or
per unit cost; storage; cost; sizes and
raw materials colors;
cost; cost of c. Branding: choice of
existing new or existing name;
facilities and exclusivity; trademark
resources; protection
breakeven d. Product positioning:
point. selecting a market
c. Competition – segment
market share of e. Consumer attitude
company and and usage testing.
competitors; 6. Test Marketing-involves a
strengths and selling of a fully developed
weaknesses of product in a selected city and
competitors; observing the actual or on
potential the spot performance under
competitors. the chosen marketing plan.
d. Required 7. Commercialization – this
Investment – involves the actual marketing
engineering, of the product in the target
patent search, market. The different
product activities to introduce the
development, product to the market must
testing; be presented.
promotion;
II. Introduction
A new product is introduced into maximizing market
the marketplace and the objective share.
is to generate customer interest b. Profit-Based. The firm
is interested in
III.Growth
maximizing profit,
The product gains wider consumer earning a satisfactory
acceptance and the objective are profit, optimizing the
to expand distribution and the return on investment or
range of available product securing an early
alternatives. recovery of cash.
c. Status Quo Based.
IV. Maturity
The firm seeks to avoid
The product’s sales level and reasonable government
companies try to maintain lower actions, minimize the
price, better product features for as effects of competitor
long as possible. actions, maintain good
channel relations,
V. Decline
discourage the entry of
The product’s sales falls as competitors, reduce
substitutes and new competitors demands from
enter the market. suppliers and stabilize
prices.
STRATEGIES FOR MATURE
2. Broad Price Policy provides
PRODUCTS
procedures, rules, and
1. Develop new uses or methods to act in one
functions and new purposes specific situation.
for products. These are the following:
2. Develop new or add latest
product features. a. Penetration pricing
3. Find new classes of uses low prices to
consumers or new potential capture/attract the
markets for present products. larger/mass market for
4. Find new classes of a product or service.
consumers for modified b. Skimming pricing
products. uses high prices to
4. Increase product use for new attract the market
product users. segment more
5. Change marketing policies or concerned with product
strategy. quality, uniqueness or
status than price.
PRICE
3. Price Strategies are ways
Price determines the value of a or some actions to
good or service to the buyer seen accomplish the goals and
to the sellers. objectives of the company in
gaining profit.
FIVE STEPS IN DEVELOPING A
A. Cost-based
PRICING STRATEGY
price strategy
1. Objective may be: sales- is when the firm
based, profit-based and sets prices by
status-quo based. computing
a. Sales Based. The firm merchandise,
is interested in sales services and
growth and/or overhead costs
 then adding the e. Odd pricing are prices
desired profit to set at levels below
those figures even values
B. Demand- f. Price-quality
based price association is when
strategy is the consumers believed
when the firm that high price
sets prices after represents high quality
researching and low prices
consumer represent low quality.
desires and g. Prestige pricing is
makes sure the when customers set
range of prices price floors and will not
is acceptable to buy at prices below
the target those floors.
market. h. Leader pricing is
C. Competition- selling key items at low
based price prices to gain
strategy is consumer loyalty within
when the firm its product line.
sets prices in i. Multiple-unit pricing
relation to the is when the
competitors. entrepreneur offers
4. Implementing Price discounts to consumers
Strategy is the firm for buying in large
readiness to sell the product quantities.
which would be effective if j. Price lining is when
given an attractive price instead of setting one
strategy listed below. price for a single model
a. Customary pricing is of a good or service,
when one price is the firm sells two
maintained over an models of different
extended period of quality and features at
time. different prices.
b. Variable pricing is k. Price bundling is
when the price when the firm offers a
responds to costs basic product, options
fluctuations or and customer service
differences in demand for one total price.
c. One-price policy is l. Unbundled pricing is
when the price is when the firm sells by
charged to all individual components
customers buying the and allows customer to
product or service decide what to buy
under similar m. Geographic pricing is
conditions when the prices are set
d. Flexible pricing is depending on the
based on customer’s distance of the buyer to
ability to negotiate or the seller
buy power of the
customer