PRINCIPLES OF MARKETING QUARTER 1 1

Chapter 2: Market Opportunity Analysis &

Consumer Analysis
Tickle Your Thoughts
You probably know by now that setting up a business isn’t as simple as thinking
of a product, creating them and then selling them. Products and services exist in a
changing marketplace and a very diverse profile of customers. By understanding each
factor and how they relate to each other, marketers are able to create greater value
for their customers.

Setting Goals
As you complete understanding this lesson, you are expected to acquire the
following competencies:
 Distinguish between strategic and tactical marketing planning in terms of
objectives and processes.
 Analyze the elements of macro- and micro-environment and their influ-
ence to marketing planning.
 Define marketing research, its importance to a business enterprise and
identify the steps in marketing research .

EXPLORE

Activity 1: Alfonseño Trend

Study the nature of businesses currently patronized by the people in our
town of Alfonso. What product or service trends do you see is growing in our ar-
ea? Give an example of business under this product and service line and state
why do you think this trend caught the attention of Alfonseños.

Product/ Service of the Business:_______________________________________

Example of Business Under the Product/ Service Line:______________________
Reasons why Alfonseños patronize the product:
1.________________________________________________________________
2.________________________________________________________________
3.________________________________________________________________

VICTORIOUS CHRISTIAN MONTESSORI COLLEGE ALFONSO, INC.

PRINCIPLES OF MARKETING QUARTER 1 2

FIRM UP

Strategic Marketing versus Tactical Marketing

Tactics and strategy are often interchangeably used when talking about
gaining an objective. But while the two words may seem synonymous, they mean
different things, especially in marketing. The strategy is the direction towards the
goal. Tactics are the action taken to support the strategy. Simply put, strategy re-
fers to the plan to achieve a goal while the tactic is how you execute the plan.
When creating your marketing plan, strategic marketing comes first because it
deals with the direction of your business growth in relation to your competitors. It
is a long-term goal that is broad. Next, comes tactical planning which consists of
the actual process involved in improving your competitive position.

Strategic Marketing
To gain a competitive edge in marketing for manufacturing, you need a thor-
ough understanding of your target customer’s demographics and buying habits. To
decide what your business goals are, you must be up-to-date on industry trends
and your competitive position. Once you’ve formulated your goals, you need to de-
velop a strategy to achieve those goals. Strategic planning involves recognizing the
threats and opportunities presented by the industry. What are the strengths and
weaknesses in manufacturing? Does your company have the strength and financial
capability to tackle those threats and grab those opportunities? Strategic mar-
keting considers the long-term goals of your company such as expanding your busi-
ness, exploring new demographics, or creating a new brand. Therefore, it needs
the insight of your financial department who can analyze if you have adequate
funds to realize your goals.

Tactical Marketing
While strategic marketing looks at the goals of the company, tactical mar-
keting focuses on the details to achieve that goal. With a strategy in place, the ac-
tions or tactics needed to reach your goal can be set into motion.

Creating tactics to support your marketing strategies involve detailed profiles of

your customers. Only by knowing your target demographic can you choose the right
advertising media and determine which marketing channel is most effective.
Tactical marketing often involves generating leads, building websites, placing ads,
and following up. It includes advertising, sales promotions, and other activities that
directly support your strategic marketing plan. And because your strategic mar-
keting plan included establishing a budget, tactical planning preparation should
take into account its financial limitations in carrying out these activities.

VICTORIOUS CHRISTIAN MONTESSORI COLLEGE ALFONSO, INC.

PRINCIPLES OF MARKETING QUARTER 1 3

The Marketing Environment

The marketing environment of a company is composed of the people, insti-
tutions, and forces outside marketing that influencer marketing management’s
ability to develop and maintain a successful relationship with its target customers.
Constantly watching and adapting to the changing marketing environment is im-
portant because the marketing environment offers both opportunities and
threats. By conducting a regular and systematic environmental analysis, the com-
pany can revise and adapt marketing strategies to cope with the new challenges
and opportunities in the marketplace.
The marketing environment is the combination of the microenvironment
and macro environment.

Macro Environment
Macro environment factors which consist of external forces. These external
environment factors are uncontrollable and the company finds it hard to tackle the
external factors. Elements of macro-environment of marketing are:

Demographic Environment
Demography is the study of human populations in terms of size, destiny, lo-
cation, age, gender, race, occupation, and other statistics. This is the very im-
portant factors that help the marketer to divide the population into different mar-
ket segments and target markets. Demographic data also helps in preparing geo-
graphical marketing plans, age, and sex-wise plans.

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PRINCIPLES OF MARKETING QUARTER 1 4

Economic Environment
Economic Environment is those macro factors that affect consumer buying
power and spending patterns. It includes the level of income, policies, and nature of
an economy, economic resources, trade cycles, distribution of income and wealth.
When the income of a family or country changes it also changes the buying behav-
ior and spending pattern of the family or country.

Natural Environment
Natural environment involves the natural resources that are needed as inputs
by marketers or they are affected by marketing activities. So marketers should be
aware of several trends in the natural environment.

Technological Environment
Technological forces are perhaps the most dramatic forces which are chang-
ing rapidly. These macro-environmental forces create a new product, new markets
and marketing opportunities for marketers.

Political Environment
It includes government actions, government legislation, public policies, and
acts which affect the operations of a company or business. These forces may affect
an organization on a local, regional, national or international level. So marketers
and business management pay close attention to the political forces to judge how
government actions which will affect their company.

Cultural Environment
Cultural factors in heritage, living styles, religion, etc. also affect a company’s
marketing strategy. Social responsibility also becomes part of marketing and slowly
emerged in marketing literature. Socially responsible marketing is that business
firms should take the lead in eliminating socially harmful products.

Micro Environment

The micro-environment refers to the forces that are close to the company
and affect its ability to serve its customers. It influences the organization directly
Demographic Environment. Elements of micro environment of marketing are:

Internal Organizational Environment

The first is the organization’s internal environment—its several departments
and management levels as it affects marketing management’s decision making.

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PRINCIPLES OF MARKETING QUARTER 1 5

Marketing Channel
The second component includes the marketing channel firms that cooperate
to create value: the suppliers and marketing intermediaries (middlemen, physical
distribution firms, marketing-service agencies, financial intermediaries).

Types of Market
The third component consists of the five types of markets in which the organ-
ization can sell: the consumer, producer, reseller, government, and international
markets.

Competition
The fourth component consists of the competitors facing the organization.
Businesses should device plans to perform better than their competition.

Organizational Objectives
The fifth component consists of all the public’s that have an actual or poten-
tial interest in or impact on the organization’s ability to achieve its objectives: finan-
cial, media, government, citizen action, and local, general, and internal publics.

DEEPEN

Activity 2: Deeper Look

Using the local business in Alfonso, Cavite you have picked in Activity 1, de-
termine their strategic and tactical marketing plan based on your observation of
their operations.

VICTORIOUS CHRISTIAN MONTESSORI COLLEGE ALFONSO, INC.

PRINCIPLES OF MARKETING QUARTER 1 6

TRANSFER

Activity 3: Going Further

It’s time to expand your business once again. This time, device a strategic
and tactical marketing plan for your business, then a short explanation on how
you will manage effectively the macro and micro environment that affects your
business.
Chosen Product: ________________________________
Product Name: _________________________________
Marketing Management Orientation Used:
______________________________________________
Relationship Marketing #1:________________________
Relationship Marketing #2:________________________ PRODUCT LOGO
Strategic Marketing Plan:_____________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
Tactical Marketing Plan:______________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
How will you deal with and manage the marketing environment?:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

VICTORIOUS CHRISTIAN MONTESSORI COLLEGE ALFONSO, INC.