VI.

FACTORS AFFECTING THE MARKET

A. Demand

Price is the main determinant of behavior of people as have been shown by the Law of

Demand, but other factors also exist which can greatly impact the demand for the

services propositioned. Some of them are the tastes and preferences, population, and the

income of the target market.

The population of Baguio City pose no problem to the researchers for it grows

exponentially as time passes by. This is evident on the computations made by the

researchers showing that the populace continually grows over time. Another element is

the income of the target market. This is actually related to the main determinant of

demand which is the price. When the income for an individual is fixed and the price

assigned for a product or service is high, more often than not, that person will opt not to

consume that particular good since his/her income have already been budgeted for their

needs and therefore, almost nothing can be saved from it. What more can be used to buy

that item offered? Lastly, taste and preferences greatly affects how the consumers will

react to businesses who are new to the market. These new players must live up to their

target market’s standard to be able to have them as loyal customers.

B. Supply

Two factors affecting the supply for the same service have been identified by the

researchers. One is the emergence of a new player in the market and another is the

decrease in the cost of providing the service.

 It would be inevitable that a business with the same service and same target

market will emerge. It may be established on a different location. That is why a business

should always be doing and offering the market something new to not have them be tired

of you. There should be endless preparations for strengthening marketing promotion and

improving the service already provided by the business. It should also be noted that

substitutes can also pose a threat to the business such as fitness centers. Another factor is

the decrease in the cost of providing the service. It affects the supply in a way that the

business can offer more than what they offer currently if they were able to find a way to

minimize and manage their costs. However, careful consideration must be given to the

demand for it may cause them harm for providing too much than what the market are

willing to consume.

VII. MARKETING PROGRAM

A. Service

The main target market of the product would be the aging sector of the Baguio City

population. Elderberry Recreation Center services are available from 7:00am to 6:00pm

from Monday to Saturday. The services however is limited to the center’s members.

Membership may be availed for a minimum amount of Php1,500 per month.

B. Place

Facing the West Philippine Sea, the center will be established on a house and lot at

Gulfview, Suello Village, Baguio City. The prominent feature of the location is its

relaxing environment that is not too far from the city for the convenience of the elders

who need a break from the fast-paced life of being in an urban place.

C. Price
 Prices established are affordable and reasonable in relation to the benefits that will be

provided to customers. To avail of the service, one must be a member. Three membership

plans are set out: basic, standard and premium. Basic membership is worth Php1,500 a

month, standard membership Php2,000 a month and premium membership amounting to

Php3,000 a month. Access to the various facilities of the recreation center depends on the

membership plan availed of by the member.

D. Advertising and Promotion

i. Newspaper advertisement

This form of advertisement features promptness and efficiency.

Total Cost:

Baguio Midland Courier* = Php2,000

ii. Internet

In a world where technology is a need, the internet is the most widely used advertising

tool because of its convenience and low cost.

Total Cost:

As part of Telecommunication Expenses = Php2,280 including expenses for cable and

telephone