Professional Documents
Culture Documents
College Department
S.Y. 2017 - 2018
First Semester
Submitted To:
Hannah Dara Vanzuela Garay-Nugroho
Business Policy and Strategy Instructor
Submitted By:
Amparo, Angel May K.
Borja, Maria Arrah
Cabahug, Ana Mae L.
Dumanon, John Ninyo M.
Pepito, Cheevie Khaye
Isobal, Christian
Plaza, Gilberto Jr.
Tabaranza, Rhodney
Tan, Marriz B.
A41
February 2018
Chapter I
Introduction
*Rationale
….……..
This study is conducted for the primary purpose of presenting the significant
impact of the use of social media as a marketing tool in achieving business goals and
objectives. This study also aims to give readers additional information relating to the
relevance of a marketing strategy in a business.
This study intends to compare and look into Pedro’s and Burgito’s marketing
strategy. Specifically, this paper pursues to answer the following queries:
2. Why did Pedro’s and Burgito’s use social media as a marketing tool?
3. What are the benefits of using social media as a marketing tool for Pedro’s and
Burgito’s?
4. How can social media strategy have a significant impact in achieving the business
goals and objectives of Pedro’s and Burgito’s?
Objectives:
This study seeks to identify and understand the following areas relating to
marketing strategy:
● To provide information about the current marketing strategy used by Pedro’s and
Burgito’s.
● To find out the reason why Pedro’s and Burgito’s use social media as a marketing
tool in the business.
● To identify the benefits of using social media as a marketing tool in the business.
● To determine whether or not the social media strategy have a significant impact
in achieving Pedro’s and Burgito’s business goals and objectives.
● To give ideas to the readers on how to achieve the business goals and objectives
through social media strategy.
The fundamental purpose of this study is to help citizens, specifically the current
and aspiring businessmen, realize the importance of marketing strategy in achieving
the business goals and objectives. The contributions of this study will be of interest to
the following:
● Businessmen,
● Customers,
*Operationalization of Terms
Chapter II
Theoretical Background
The way social networks have impacted our personal and professional lives is far
greater than most of us could have anticipated. The evolution of social networks in
the past 10 or even 5 years has been truly remarkable. Having 92% of marketers
reporting that social media is important to their business, gives us a clear view that
marketers believe social media holds weight (Zeckman, 2015). With the ongoing rise
in social media usage and marketing on and through the platform, modern businesses
are continually challenged to alter their strategies. Today, social media has been a
staple marketing tactic for nearly every business, helping brands build awareness,
share and interact with customers and prospects, and create important touch points in
the changing customer journey. However, both green and seasoned marketers are still
trying to nail down what a successful social media marketing strategy looks like
(Burgess, 2017).
In the current modern society, social media are commonly used in order to
connect people together throughout the world using the Internet. Whether it is
through social networks, forums, blogs or media sharing websites, people can now
have a conversation online, also called interactive dialogue, with anybody and on any
subject, permitting them to share their experiences and valuable information.
Furthermore, Social Media Marketing and more particularly Social Networks are
becoming increasingly important in consumers’ purchasing decisions, mainly because
they amplify word-of-mouth. They may even become more important than
advertising as a trusted source of information. However, it is important to stress the
fact that, in Social Media Marketing, marketers have less control over messaging and
positioning. (Arca, 2012).
Definition of marketing strategy
According to The Balance, the 5P’s of marketing mix which lays out the building
blocks of a Marketing Strategy includes the following:
1. All products and their packaging must support the brand’s positioning.
Functionality and design need to be carefully considered and developed to clearly
communicate product benefit(s).
• How is your product different from your competitors and what benefits does
it provide your customer?
2. Price plays a critical role in both market positioning and customer perception.
Brands selling a premium product or service can command above average prices.
Those who want to be perceived as price leaders need to offer lower prices to gain a
competitive edge.
4. Promotion strategy must take all of the brand’s marketing objectives and create
specific tactics that will deliver against them. This can include brand awareness,
recall of key communication points, shifts in preference, and more.
• How are you going to let the market know about your product or services?
• How will you tell them about the features and benefits you provide to entice
them to check out what you offer?
• What marketing tactics will you use and what do you anticipate will be the
results of each method?
• What about any incentives or coupons you'll use to attract business?
5. People in the newly added "P" to the marketing mix, and is important in creating or
delivering your product or service.
• Who are these people (i.e. sales people, virtual assistants) and what do they
do (i.e. sales calls, customer service)?
Product
According to Andrew Whalley (2010), products differ in the way; they do things,
how they are used, how they are distributed and at whom they are aimed. There are
two types of product: the consumer products and industrial products. These include
the following:
Consumer Products
Durable goods. These products are expected to last a considerable length of time.
They are not used up all at once but can be used repeatedly.
Non-durable goods. These products are used up in the process of consumption. They
do not last.
Service products. These cannot be stored at all. Normally, they are used there and
then. Services present marketers with particular challenges.
Convenience goods. These are products that customers buy frequently and think little
about. They are of little value and have many close substitutes so they need strong
branding and eye-catching colours and designs to make them stand out from the rest.
Shopping goods. These carry a higher associated risk for a customer than
convenience products do. They may be higher priced or it may be that the cost of
product failure is high. These products are therefore sometimes referred to as high-
involvement purchases.
Speciality goods. These are unusual, and often quite expensive, products which are
commonly sold in niche markets. They may be high-risk products and so customers
may need extensive emotional support and encouragement from the supplier before
they buy.
Industrial products
Capital goods. There are durable products. They are designed to last for a number of
years. They are usually high cost, bought infrequently and carry high potential risk.
Consequently great care is normally taken over these purchases.
Accessories. These are smaller capital items, which support the business. As they are
lower cost, they normally represent a lower financial risk to a company.
Raw materials. These are goods that will be processed, and added to, by the business.
They are often generic products. Together they become the finished article.
Sub-assemblies, components and parts. These have already been manufactured but
are not finished goods. They are brought by businesses to incorporate into their own
products.
Supplies. These are non-durable minor items which are used by the business and are
smooth running.
Services. These are provided by a third party to a business, usually so that it can
concentrate on running its own operation efficiently.
Price
According to Andrew Whalley (2010), there are many ways to price a product.
There are twelve pricing strategies and these are the following:
• Premium pricing, is used where there is uniqueness about the product or service.
This approach is used where a substantial competitive advantage exists, that is
also sustainable in the long-term.
• Economy pricing. Exactly as the name implies this is no frills low price. The cost
of marketing and manufacture are kept to a minimum. Supermarkets often have
economy brands for soups, spaghetti, etc. Note to maintain such pricing policies
means a tight organizational reign on costs which does not sit philosophically
well with the marketing concept, as such companies using economy pricing are
often product or production-oriented.
• Price skimming. The aim is to charge a high price because you have a substantial
competitive advantage and you can maximize your financial return because
customers have to meet your price to purchase the product. However, such
advantage is rarely, if ever, sustainable in the long-term as such high returns
encourage competitors.
• Psychological pricing. This approach is used when the marketer wants the
consumer to respond on an emotional, rather than rational basis. For example
‘price point perspective’, $6.99 instead of $7. In fact, you can see examples of
this everyday in the high street and local shops.
• Product line pricing. Where there is range of product or services the pricing
reflect the benefits of parts of the range. This is often used in ‘families’ of
products where a variety of product offerings exist.
• Optional product pricing. In this, the seller attempts to increase the amount
customer spend once they start to buy. Optional ‘extras’ increase the overall price
of the product or service. For example, airlines will charge for optional extras
such as guaranteeing a window seat or reserving a row of seats next to each
other.
• Product bundle pricing. Here, sellers combine several products in the same
package. This also serves to move old stock or to get trial samples to consumers.
• Promotional pricing, is uniquitous. You can see examples everyday online and
on the high street the most common is the BOGOF (Buy One Get One Free)
offer.
Place
4. Types of intermediary.
Promotion
Promotion includes all of the tools available to the marketer for marketing
communications. As with the marketing mix, marketing communications has its own
promotions mix, where different aspects of the promotions mix can be integrated to
deliver a unique campaign (Whalley, 2010). The elements of the promotions mix are:
• Personal Selling
• Sales Promotion
It is defined as the deliberate, planned and sustained efforts to establish and maintain
mutual understanding between an organization and its publics. It can be split into
proactive - communications designed to build understanding - and reactive -
communications designed to counter misunderstanding.
• Direct Marketing
The purpose of this is to increase awareness and to encourage trial, largely through
face-to-face contact of supplier and customers. They offer the opportunity for
companies to meet with both the trade and the customers, for both to build
relationships outside traditional sales meetings. They are heavily used with Business-
to-Business marketing, especially within technology and engineering based products.
• Advertising
• Sponsorship
People
According to Andrew Whalley (2010), people are the most important element of
any service or experience. Services tend to be produced and consumed at the same
moment, and aspects of the customer experiences are altered to meet the individual
needs of the person consuming it. Most of us think of a situation where the personal
service offered by individuals has made or tainted a tour, vacation or restaurant meal.
Remember, people but from people that they like, so the attitude, skills and
appearance of all staff need to be first class. Some ways to add value to a person’s
experience, as part of the marketing mix are training, personal selling and customer
service.
• Training
All customer facing personnel need to be trained and developed to maintain a high
quality of personal service. Training should being as soon as the individual starts
working for an organization during an induction which exposes the new employee to
the organization’s culture for the first time, as well as briefing them on day-to-day
policies and procedures.
• Personal Selling
There are different kinds of salesperson. There is the product delivery salesperson.
There is the order taker, and these may be either internal or external. The internal
sales person would take an order by telephone, e-mail or over a counter. The external
sales person would be working in the field. In both cases, little selling is done. There
is the missionary who promotes faith, building goodwill with customers with the
long-term aim of generating orders. The forth type is the technical salesperson. Their
in-depth knowledge supports them as they advise customers on the best purchase for
their needs. Finally, there are creative sellers. Creative sellers work to persuade
buyers to give them an order. This is tough selling, and tends to offer the biggest
incentives. The skill is identifying the needs of a customer and persuading them that
they need to satisfy their previously unidentified need by giving an order.
• Customer Service
According to Brand Uniq, many business owners fail to see the benefits of
incorporating Marketing strategy in the overall strategic business process. A well-
crafted strategic plan:
• Provides the business with focus and direction by identifying the best
opportunities worth pursuing as well as the threats to be avoided;
• Identifies the tools that the company can effectively use to fight competition and
gain market share;
• Saves company time and money by focusing the resources on attracting the right
employees and investing only om marketing initiatives that support the overall
business objectives;
• Differentiates a company from competition by identifying the distinctive
advantage and the supporting elements;
A marketing strategy helps you create products and services with the best
chances for making a profit. This is because marketing strategy starts with
marketplace research, taking into consideration your optimal target customer, what
your competition is doing and what trends might be on the horizon. Using this
information, you determine the benefit customers and clients want, what they’re
willing to pay and how you can differentiate your product or service from the
competition.
Part of a marketing strategy is setting the right price for your product or service
based on what you learned in your market research. If you learned that customers
want a high-end product in your category, your pricing strategy might require you to
sell at prices that create a high-end perceived value. If your target customer is bargain
conscious and is willing to accept fewer bells and whistles on your product in
exchange for paying less, your pricing strategy will require you to sell at or below the
competition’s price.
Once you know what product features you’ll offer, who your target customer is
and what your price points will be, you can select where you want to sell to maximize
your marketing effectiveness. Younger customers will be more likely to shop using a
smartphone or on a website, paying with PayPal or a credit card. Older customers
might prefer to shop at retail outlets. If your market research shows you need to be in
retail stores but you don’t have a sales force, you can use a wholesaler or distributor.
Your market research will help you create your brand, or image you want to
establish about your business. Without marketplace research and a strategic
marketing plan, you might respond to solicitations from advertising salespeople on an
individual, reactionary basis, sending messages that don’t fit in with the brand
identity you’ve created based on your product development efforts. A marketing
strategy lets you determine if a particular magazine, radio station or website fits into
your selling plans.
• Organizational Impact
When you have a marketing strategy, your departments can better work with
each other, because they are all working from the same plan. For example, your
advertising people will talk with your product development people to determine what
message you should send about your benefit. Your sales people will talk with the
people responsible for managing your image to determine if they can offer discounts,
coupons or rebates without damaging your brand.
As the Internet continues to weave its way into the fabric of everyday business
and personal life, and as the second wave of Internet entrepreneurship takes root,
companies of all types are addressing how best to make the Internet a fundamental
part of their business and their competitive strategies (Cravens & Piercy, 2016). In
today’s digital age, businesses need more than one strategy and a strategy for every
opportunity. There are Ten Marketing Strategies to fuel business growth online and
the number one strategy on the list is using Social Media. Businesses can't ignore
social media because that's where all the so-called magic is happening. Some
businesses have been built solely on the backs of social media. It can be intimidating
at first, but as you build momentum, you'll find posting on social media to get easier
and easier over time. Of course, businesses could also hire a social media manager if
they have money to burn. But if they don't, they just have to be themselves, be
authentic. They should post their thoughts, their products or anything that they find
relevant and useful that would help their audience either learn more about them and
their business, or about the industry that they’re in. It is efficient to use direct
messages on platforms like Facebook, Instagram and even Snapchat or Twitter to
reach out to other successful businesses or even to communicate with potential
customers who might be looking for your products and services. This is indeed a very
powerful marketing (Adams, 2015).
• Participation
Social media encourages contributions and feedback from everyone. Social media
includes delivery of ideas at the time of online conversation. It tries to bridge the gap
between companies and audience. With all the new channels of social media, people
are enjoying this process of participation.
• Openness
Social media success requires honesty, transparency and authenticity. You should
maintain a trust worthy relationship with your customers in your SMM (social media
marketing) strategy. One fake or negative comment can destroy your online
reputation.
• Build relationships
• Reliability
To make your profile reliable, you need to consistently show your online presence.
Effective social media marketer visits their targeted sites regularly. They also get
involved with new users and promote their products. They talk to their target
audience on a regular basis.
• Build communities
Social media sites allow you to build communities quickly, this helps you
communicate more effectively. Communities share common interests, such as a love
of photography, a political issue or a favorite TV show. These communities help you
to know about your target audience. You can also support other communities which
you think are good for your business.
• Customer service
It is very essential to take care of your customers. Social media networks are all
about helping each others. It’s about providing value to your customers, not just
promotion.
• Avoid spamming
Don’t give importance only to promoting your links. Also share insightful content
about your company. Do not send the same message to your community again and
again, it works as a spam and it may irritate your customers.
Social media marketing is the most powerful platform for small businesses. An
effective social media marketing campaign grows your business and brings more
traffic to your website. Therefore, social media marketing is the best marketing
strategy allows you to promote your company at the same time build relationships
(Damani, 2012). According to Ashley Zeckman (2015), 92% of marketers report that
social media is important to their business. The top three most important social
platforms for marketers are Facebook, LinkedIn, and Twitter.
As social media has grown in functionality and reach over the years, it has
changed the ways brands interact with their audience of current and potential
consumers. Whether or not you use social media, it has changed your business (Siu,
n.d.). A study conducted by the Altimeter Group indicated that companies use social
media to accomplish various business objectives, such as increasing annual sales
growth. Small businesses recognize the benefit of social media as a communication
platform that facilitates two-way communication between a company and its
stakeholders. This supports company processes and objectives including customer
relationship management, market research, customer base expansion and customer
retention, product marketing, cost control initiatives, public relations, sales and
recruiting (Nordmeyer, n.d.).
• Customer Relationship Management
Tom Funk writes in “Social Media Playbook for Business: Reaching Your Online
Community with Twitter, Facebook, LinkedIn, and More" that the principle
advantage of a social media program is the opportunity to strengthen the relationship
between a company and its customers. Through real-time online connections with
existing and potential customers, a company conveys information regarding its brand.
In turn, the company might benefit from positive word-of-mouth that is exponentially
broadcast across a social network. Funk states that the greater the frequency and
degree of engagement, the stronger the relationships become and the greater the
impact of the relationships on sales, customer satisfaction and product reputation.
• Customer Retention
Funk writes that 67 percent of Twitter users who become followers of a brand are
more likely to buy the brand's products. This sales result is due in part to a company's
use of social media to convey brand values, create positive word of mouth and
enforce the connection between the company and its customers. These enhance a
company's efforts to build customer loyalty.
According to Funk, companies reach new customers through the conveyance of the
corporate message on a social media channel, the broadcast of positive customer
feedback regarding the corporate message and its products to some of the 100 million
Twitter users and 500 million Facebook users, and the conversion of the feedback to
product purchases. The broadcast of such third-party endorsements complement such
traditional marketing efforts such as print and broadcast advertisements.
• Market Research
Stephen Rappaport writes in "Listen First: Turning Social Media Conversations into
Business Advantage" that social media is a reliable means to explore the culture,
views and lifestyles that influence consumer behavior. The social media arena is a
means to profile a target audience to develop marketing and advertising strategies.
Social media conversations also alert companies to issues that may negatively affect
current market opportunities.
• Product Marketing
A product can be directly marketed to the consumer using social media. Such
marketing amplifies messages that are conveyed by other product promotions,
including website advertisements and press releases.
Funk states that 80 percent of Fortune 100 companies are active in one or more social
media channels, such as Twitter. The ability to listen to a competitor's message
enables a company to develop business strategies and tactics that directly counter that
competitor's initiatives. This helps your company to gain a competitive advantage.
For example, data transmitted by McDonald's regarding future franchise locations is
a key criterion used by Burger King in the selection of its franchise locations. This
gives Burger King a cost advantage in terms of saving market research expenses.
• Public Relations
Corporate news can be conveyed to an audience in real time using multiple social
media channels such as Facebook, Twitter and LinkedIn. According to Funk, a legal
or investor relations department relies on multiple social media channels to improve
audience engagement, which is key to the success of efforts to control bad news that
can "go viral" or be quickly disseminated to a large number of social media
participants once the news emerges.
• Sales
Funk states that sales can be increased by adding social media functions to corporate
websites. For example, customer product ratings, "fan" and "email friend" options
serve as ways to engage website users. This leads to user and company engagement
that contribute to increased product sales.
• Recruiting
In "Social Media for Business: 101 Ways to Grow Your Business Without Wasting
Your Time," Susan Sweeney writes that the social media platform is a cost-effective
way to directly reach potential employees in that four out of five online Americans
participate in a form of social media each month. Such a program also is a means to
determine if a recruiting program resonates with potential employees through the
feedback the company acquires regarding such items as the positions advertised and
the recruitment program itself.
*Synthesis
*Conceptual Framework
*Hypothesis
HO:
HA:
Chapter III
Methodology
*Design
This research paper is designed to give information to the readers about the
marketing strategy of Pedro’s and Burgito’s and how can social media strategy have a
significant impact in achieving their business goals and objectives.
This paper is done by collecting information without any manipulation of the raw
data obtained throughout the entire process. The data is obtained by means of
interview. It involves gathering of information that will show the benefits of social
media as a marketing tool. Pedro’s and Burgito’s are chosen as subject for this
research paper. The use of social media as a marketing tool of both business is
carefully examined using (insert theory). The researchers conducted an interview to
gather information from the owner/manager of the two businesses regarding their
marketing strategy - product, price, place, promotion and people - and their social
media strategy.
*Criteria
Research criteria contained data that are gathered from credible authors, articles,
websites and other sources. The two burger restaurants, Pedro’s and Burgito’s, is
chosen for the interview, since both are similar in nature and uses social media as a
marketing tool. The researchers chose this entities because it is located within Butuan
City and (small or micro business?). The data used are relevant with the research and
the questions are formulated according to the objectives set.
*Method of Analysis
The entities are selected by the researchers using the criteria elaborated above.
An interview with the owner/manager of Pedro’s and Burgito’s was conducted to
evaluate the marketing strategy themselves. Also, reviews from customers on their
social media were utilized. The gathered information are analyzed using qualitative
analysis to arrive at a basis for interpretation and conclusion.
*Interview Results
Based on the feedback of the customers, regarding the food that we offer, yes. But,
they are working out to improve their customer services.
Insert reviews
Insert discussion
Chapter V
*Summary
*Conclusions
*Recommendations
Based on the results of the interview, survey and findings of the study, the
researcher’s recommendations are as follows:
Bibliography
Marketing Strategy, Fifth Edition O.C. Ferrell and Michael D. Hartline 2011