Principles of Marketing

1. Explain the relationship between market analysis and

planning.
2. Analyze the company’s situation, markets, and environment
(the marketing audit and SWOT analysis)
3. Identify target market and positioning.
4. Explain the significance of the marketing mix to motivate
the potential market to buy the product or service (the
marketing plan).
 MARKET ANALYSIS
• A process of identifying your target market based on the possible
market potentials. This includes analyzing customers’ needs and
wants, market trends, competitors, and the environment.
• Industry trends is also important factors to consider in analyzing
market. Marketing plans can’t but put together without some
form of analysis thru:
A. finding and measuring business opportunities
B. targeting and dividing market into niches
C. suggesting product placement and position in mind of
CAREER GROWTH

consumer
 In analyzing target market, marketers need to
understand this fundamentals of analyzing the
target market.

TECHNICAL SKILLS
SITUATION ANALYSIS
The process of analyzing:
• Consumer characteristics & trends
• Current and potential Collaborators
• Resources of the Company
• The Context or environmental factors
• Current and potential Competitors
 SITUATION ANALYSIS
Another way to analyze potential market is through the use of
PESTL analysis. A PESTL analysis is composed of Political,
Economic Factors, Environment, Societal Trends, and
Technological Developments.

Political - Determines the extent to which the government may

influence on certain industry. For instance: government impose new
taxes, tax policies, Fiscal policy, trade tariff etc.
PERFORMANCE REVIEWS

Economic - Determines the economy’s

FEEDBACK COLLECTION performance that can
directly affect the performance of the industry. For instance,
Inflation rate, foreign Direct Investment, Inflation Rate, economic
growth and etc.
 SITUATION ANALYSIS
Social - These factors analyze the effect of social environment of the market.
For example, cultural trends, demographics, populations etc.

Technological - These factors pertain to innovations in technology that may

affect the operations of the business. Examples are, automation, research
and development, technological awareness.

Legal - This factors have both internal and external sides of the business. For
PERFORMANCE REVIEWS
example are laws that affect the operations of the business. Examples;
consumer laws, safety standards, labor
FEEDBACK laws.
COLLECTION

Environmental - These factors include all those that influence by the

surrounding environment. Factors of business environment are climate,
geographical locations, global changes in climate etc.
 CONDUCTING SWOT ANALYSIS
• In a SWOT analysis (or a situation assessment), you are going to
identify your company’s Strength, Weaknesses, Opportunities
and Threats. Such an analysis is very important to the
preparation of your plan and to the success of your operation
because it helps you focus on key issues.

• A SWOT analysis is PERFORMANCE REVIEWS

a good auditing tool to demonstrate whether
a particular plan is working
FEEDBACK and to gauge the current market
COLLECTION
environment.
 SWOT
STRENGTHS– areas where the operation excels. Example: well-trained staff, good location,
well-kept and clean facilities, strong marketing abilities, high food quality, and service that
exceeds customer’s expectations.
WEAKNESSES - barriers to success. Example: boring menu, dirty premises, poor quality
products, poor service, high staff turnover, poor reputation, limited abilities or resources for
marketing.
OPPORTUNITIES – chances to increase revenue or decrease costs. Example: ineffective
Implementing effective training programs often
competitor, volume discount with a reputable supplier, a new business opening in your area,
presents various challenges that organizations must
an increased
navigate. number
Common of tourist
obstacles includeattractions.
mployee
THREATS – refers
resistance, where to the
staff may feel barriers that
apprehensive about could prevent the company from reaching its
participating in training sessions. To address this, it's
objectives. Example: increased number of competitors, a price war with a competitor,
important to communicate the benefits of training
increased taxes, poor economic conditions, or road construction that disrupts current traffic
clearly, emphasizing how it can enhance their skills
patterns.
and improve job performance. Fostering a positive
mindset toward learning can significantly increase
SWOT
STRENGHTS WEAKNESSES
Good Reputations Damage Reputations
Knowledge and experience New in the market
Quality Product Undifferentiated product
Affordable Price Brand Name
Good Locations Poor Quality

OPPORTUNITIES THREATS
Company Expansions Potential Entrants
Additional product line Competitors
Buy out competition Government Restrictions
More brand recognition Economic Situation
Products growing demand Inflation Rate
Expand new market Changing taste and preferences of
customer
MARKETING STRATEGY
It consists of the major decisions you must make about the segments of a market,
which one or ones you can profit by addressing, how to position your products and
services in that market, and why that market should buy your products and
services.
• Involves the allocation of resources to develop and sell products or services that
consumers will perceive
PERFORMANCE REVIEWS
to provide more value than competitive goods.
• Marketing requires a great deal of information about consumer needs.
• Marketing research gives the marketing manager data needed to make
decisions.
• Required because managers are often hundreds or thousands of miles distant
INCREASED EMPLOYEE RETENTION
from end users.
• Market analysis is the only way firms can stay in touch with customers and their
needs.
DEVELOPING MARKETING STRATEGY
1. Select target market.
2. Determine product positioning.
3. Prepare value proposition.
ABOUT TARGET MARKETS:
• Avoiding Mass marketing, which means treating everyone
in the market as having the same needs and wants. This is
good if what you sell truly appeals to everyone the same
way; then you can do mass production, mass distribution,
and mass communication, and reap the economies of scale
that these things provide.
• Target Marketing – treats people as different from each
other and tries
FEEDBACK to make a focused appeal to a distinct
SURVEYS
portion of customers called “target customers or target
market.”
ABOUT TARGET MARKETS:
REMEMBER:
1. If a company selects the wrong target market, all other
marketing decisions are likely to be in vain.

2. Careful and accurate target market selection is crucial to

productive marketing
FEEDBACK SURVEYS efforts.
NARROWING THE FIELD:
1. Potential customers – those who may have an interest
in your products and services.
2. Customers who can afford your product. – The wealthy
people, businesses, etc
3. Customers to target – the specific target market or
markets you plan to address.
 SELECTING TARGET MARKETS:
 When you select target markets, you must consider two factors: the potential
profitability of the target market and your ability to address their needs and
wants.
 In terms of the market segment’s profitability, a segment makes a good target
market for you when it has most of the following characteristics:

1. Large enough PERSONALIZED LEARNING

2.Steady or growing in numbers, not declining
3.Not saturated with competitors
4.Able to be attracted with the promotion budget you can expend
5.Profitable enough, given the costs you must incur and the revenues you can
obtain.
 In terms of your capability, a market makes a good target market for
you when it has the most of the following characteristics:

1. You have the capability to offer more value than competitors can
offer: better food, better drink, or better service.
2. Addressing this market fits in with your operation’s image or brand
identity.
3. You have the means to reach the market segment with promotions.
ADAPTIVE LEARNING
4. You have the capital and other resources to enter, serve, and survive
REMOTE LEARNING PLATFORMS
in the market segment
STRATEGIES FOR TARGET MARKETING:
1. CONCENTRATE ON ONE MARKET SEGMENT – this strategy enables you to
supply a more limited set of products and services (with the related limited
facilities, equipment, and production requirements) and use a limited variety
of promotional methods.
2. SERVE MULTIPLE MARKETS WITH THE SAME PRODUCTS AND SERVICES –
This strategy implies that you are supposed to provide the same things to
different target markets but use different promotional messages. National
restaurant chains use this strategy.
3. SPECIALIZE IN ONE THING – This means that you must only pick one thing
and do itFEEDBACK
very well.SURVEYS
4. SERVE ONE MARKET SEGMENT WITH SEVERAL PRODUCTS – Using wealthy
people as an example target market serve more than just French haute cuisine;
also serve Russian and Italian cuisine of the very best quality.
 POSITIONING PRODUCTS AND
SERVICES IN THE MARKET:

Market Positioning refers to how a company ensures its target

market notices and considers its products or services. This
involves simplifying the message and emphasizing the unique
qualities of the product.
Implementing effective training programs often
presents various challenges that organizations must
Branding also plays a role in positioning, with a strong product
navigate. Common obstacles include mployee

name helping to communicate key qualities.

resistance, where staff may feel apprehensive about
participating in training sessions. To address this, it's
important to communicate the benefits of training
clearly, emphasizing how it can enhance their skills
and improve job performance. Fostering a positive
mindset toward learning can significantly increase
 POSITIONING PRODUCTS AND
SERVICES IN THE MARKET:

Value Proposition is the statement of the value customers will receive from a
product, answering the question: “Are the benefits worth the cost?”
Customers assess products based on the benefits versus the price, time, and
convenience required.

•Example: Magnolia’s dressed

Implementing effective training programs often
chicken became a bestseller by using clean,
plastic
presents packaging
various with
challenges that the Magnolia
organizations must brand, ensuring freshness and trust.
navigate. Common obstacles include mployee
resistance, where staff may feel apprehensive about
Positioning Maps help businesses
participating in training sessions. To address this, it's
understand how consumers perceive their
brands
important comparedthetobenefits
to communicate competitors
of training based on important buying factors.
clearly, emphasizing how it can enhance their skills
and improve job performance. Fostering a positive
mindset toward learning can significantly increase
MARKET PLANNING:

MARKET
It is the set of all actual and potential buyers of a product. In
its’ original meaning, market was a physical place where
buyers and sellers gathered to exchange goods and services.
To an economist, a market is all the buyers and sellers who
FEEDBACK SURVEYS
transact for a good or service.
 MARKET PLANNING:
Sellers have not always practiced through this philosophy. Their thinking passed
through three (3) stages:
1. Mass Marketing – the seller mass produces, mass distributes, and mass promotes one
product to all buyers. At one time, McDonalds produced only one size of hamburger for
the entire market, hoping it would appeal to everyone. The argument for mass marketing
is that it should lead to the lower costs and prices and create the largest potential
market.
2. Product-variety Marketing – the seller produces two or more products that have
different features, styles, quality, and sizes and so on. Today, McDonalds offers regular
hamburgers, Big Macs and quarter pounders. The product line is designed to offer
variety toFEEDBACK
buyers rather than to appeal to different market segments. The argument for
SURVEYS
product-variety marketing is that consumers have different tastes that vary over time.
Consumers seek variety and change.
3. Target Marketing – the seller identifies market segments, selects one or more, and
develops products and marketing mixes tailored to each selected segment. Example:
McDonalds developed salad line to meet the needs of diet conscious diners.
THE MARKETING PLAN
• A marketing plan is document or a blueprint of company’s
marketing strategy for the next years. It establish business
activities that Supports Company’s marketing objectives
within the specified time frame.
• According to Philip Kotler (2003, pp. 115-116), marketing
plans are developed for individual products, lines, brands,
channels, or customer groups. The marketing plan is one of
FEEDBACK SURVEYS
the most important outputs of the marketing process.
PURPOSE OF A MARKETING PLAN
1. Serves as a road map for all marketing activities of
the firm for the next year.
2. Ensures that marketing activities are in agreement
with the corporate strategic plan.
3. Forces marketing managers to review and think
through objectively all steps in the marketing process.
4. Assists in the
FEEDBACK budgeting process to match resources
SURVEYS
with marketing objectives.
IMPORTANT NOTE: Marketing planning involves choosing marketing strategies that will help the company attain its
overall strategic objectives.
 ELEMENTS OF A MARKETING PLAN

Executive Summary - is a short document or segment of a

paper, created for business commitments, that reviews a
longer report or proposal or a group of related reports in such
a way that prospective readers can rapidly become
accustomed with a huge body of material without having to
read itADAPTIVE
all. LEARNING
REMOTE LEARNING PLATFORMS
 TIPS OF WRITING THE EXECUTIVE
SUMMARY
1. Write it for top executives.
2. Limit the number of pages to between two and four.
3. Use short sentences and short paragraphs.
4. Organize the summary as follows: Describe next year’s
objectives in quantitative terms; briefly describe marketing
strategies
ADAPTIVEto meet goals and objectives; identify the costs
LEARNING
necessary as well as key
REMOTE LEARNING PLATFORMS
resources needed.
5. Read and reread before final submission.
Current Marketing Situation - In this section, you describe your existing
and potential markets – the people who are in your market area. Some
considerations include the number of existing customers, why they are in
your market area, a description of your returning customers, and a
description of new customers you hope to attract.

Target markets – these are based upon the type of restaurant and
restaurant concept you have selected.

MarketADAPTIVE
trendsLEARNING
– it refers to the long-term increases or decreases in
some factor
REMOTEoutside
LEARNINGyour operation, for example an increase or decrease
PLATFORMS
in population, economy, competition, costs or prices, wages or popularity
of particular products. You must pay attention to those trends that might
affect your operation.
Market growth – determine whether the target market is in a growth mode or a
decline mode. If a market is in a growth mode, you can aggressively market to
this population and try to increase your customer base. If a market is in decline,
you may want to target your resources toward another area that has more
potential.

Opportunity and issue analysis: An overall analysis of the firm’s internal and
external environment. This section discuss the firm Strengths, Weaknesses,
Opportunities and Threats commonly called as SWOT analysis.

Objectives - Listing of what you want to attain in your marketing plan. Your
marketing plan LEARNING
ADAPTIVE objectives should deal with number of customers (probably by
segment), total revenue, percentage of market to capture, and average check, to
REMOTE LEARNING PLATFORMS
name a few. Your marketing objectives should be in writing because written
objectives enable you to focus your energies on specific areas of your business.
Your marketing objectives should be reasonable, measurable and have a time
frame.
Marketing strategy - Shape and reshape the company's businesses and
products so that they yield target profits and growth.

Action programs - A detailed program design to make the marketing

strategy become feasible. It list down programs intended to meet the
marketing objectives.

Financial projections
ADAPTIVE LEARNING- A detailed financial assumptions of the company
using the recommended strategy. Usually express in a five year
REMOTE LEARNING PLATFORMS
comprehensive financial projections.