Business Marketing Module 3 - Market Opportunities Analysis and Consumer Analysis

BUTUAN DOCTOR’S COLLEGE
JC Aquino Avenue, Butuan City 8600
Student’s Name: Teacher: MA. SABINA B. TEJAMO
Section: Date of Completion:
Strand: ABM 3 Lesson: 3 Week: 5 & 9
Subject: BUSINESS MARKETING Score: Teacher Signature:
The learners demonstrate an understanding of the importance of

Course Outcome information, the market characteristics affecting consumer behavior
and the bases of market segmentation.
Topic MARKET OPPORTUNITY ANALYSIS AND CONSUMER ANALYSIS

1. Distinguish between strategic and marketing planning in
terms of objectives and processes
Most Essential Learning 2. Analyze the elements of macro-and macro environment and
Competencies: their influence to marketing planning
3. Define marketing research, its importance to a business
enterprise and identity and the steps in marketing research
4. Describe the consumer and business markets.
The learners shall be able to conduct marketing research, interpret

Learning Objective/s: market buying behavior on product or service and identify the product
or service target market
INTRODUCTION
Today, in this competitive business environment, constant growth and profitability are never
a guarantee. With advancements in technology, life cycles of products and services keep
shortening. Additionally, business models keep changing and new competitors enter from
various industries. This persistent instability makes it very crucial for businesses to seek new
market opportunities to grow and stay ahead of the competition. It is in this context that the
real importance of market opportunity analysis comes into the picture. It helps businesses to
examine various factors like direct and indirect competitors, brand value propositions,
existing regulations, supply chains, and the general business environment. All these factors
help frame winning business strategies and allow your business to flourish positively amidst
the competitive environment.
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LESSON 3.1 STATEGIC AND MARKETING PLANNING IN TERMS OF OBJECTIVES AND

PROCESSES
What is Strategic Planning?
Strategic planning- is an organizational management activity

that is used to set priorities, focus energy and resources,
strengthen operations, ensure that employees and other
stakeholders are working toward common goals, establish
agreement around intended outcomes/results, and assess and
adjust the organization’s direction in response to a changing environment. It is a disciplined effort
that produces fundamental decisions and actions that shape and guide what an organization is, who
it serves, what it does, and why it does it, with a focus on the future. Effective strategic planning
articulates not only where an organization is going and the actions needed to make progress, but also
how it will know if it is successful.
WHAT IS A STRATEGIC PLAN?

A strategic plan is a document used to communicate with the organization the
organizations goals, the actions needed to achieve those goals and all of the
other critical elements developed during the planning exercise.
WHAT IS A MARKETING PLANNING?

Marketing planning is the process of anticipating future events and developing strategies to achieve
organizational objectives. It involves designing activities relating to marketing objectives. Marketing
planning of an organization is planning for that organization’s revenue-generating activities.
4 Types Of Marketing Plans And Strategies
1. Market Penetration Strategy
When a firm focuses on selling its current products to

existing customers, it is pursuing a market penetration
strategy. The marketing activities that will dominate in
this type of marketing plan are those that emphasize
increasing the loyalty of existing customers so that
they are not vulnerable to loss to competitors,
attracting competitors’ customers, increasing the frequency of product use, and converting nonusers
into users.
Increasing awareness through marketing communications and increasing availability through

expanded distribution are common marketing activities in this type of plan. Identifying new use
occasions and new uses for a product may increase usage frequency or convert current nonusers into
users. For example, the advertising campaign for orange juice that has the tagline “It’s not just for
breakfast anymore” was an effort to expand usage. Price promotions might be used to encourage
competitors’ customers to try the firm’s product if there is reason to believe that such a trial will result
in repeat purchases. Loyalty programs can be very effective in retaining existing customers. This
strategy reduces risk by relying on what the firm already knows well—its existing products and
existing customers. It is also a strategy where investments in marketing should pay back more quickly
because the firm is building on an existing foundation of customer relationships and product
knowledge.
2. Market Development Strategy
The efforts to expand sales by selling current products in new markets are referred to as a market
development strategy. Such efforts may involve entering new geographic markets, such as
international markets. Creating product awareness and developing distribution channels are key
marketing activities. Some product modification may be required to better match the needs of the
local market. For example, as fast food restaurants have moved into international markets, they have
often changed their menus to better match the food preferences of customers in local markets.
Expanding into a new market with an existing product carries some risk because the new market is
not well known to the firm and the firm and its products are not well known in the market. The return
on marketing investments in such a strategy is likely to be longer than for a market penetration
strategy because of the time required to build awareness, distribution, and product trial.
3. Product Development Strategy
Creating new products to sell to existing customers, a product development strategy, is a common
marketing strategy among firms that can leverage their relationships with existing customers. For
example, American Express has been able to leverage its relationships with its credit card customers
to also sell travel-related services. Similarly, cable television companies have expanded their offerings
into Internet and telephone services. Research and development activities play a dominant role in this
strategy. The time required to develop and test new products may be long, but once a product is
developed, creating awareness, interest, and availability should be relatively rapid because the firm
already has a relationship with customers. A product development strategy is also riskier than a
market penetration strategy because the necessary product may not be possible to develop, at least
at a cost acceptable to customers, or the product developed does not match the needs of customers.
4. Diversification Strategy
A diversification strategy involves taking new products into new markets. This is really the creation of
a completely new business. This is the riskiest of strategies and the strategy likely to require the most
patience in waiting for a return on investment.

STRATEGIC MARKETING VS TACTICAL MARKEKTING
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 refers to the plan to
achieve a goal while the tactic is how you execute the plan.
In business, marketing is the action a company takes to create brand awareness and place product in
front of prospects. 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 and tactical marketing don’t oppose each other; they complement the other.
Essentially, strategic marketing is the concept while tactical marketing is the action. Let’s take a closer
look at what each type of marketing involves.
Strategic Marketing
To gain a competitive edge in marketing for manufacturing, you need a thorough 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 develop 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?
Your strategy shouldn’t be all things at once. Focus on an element where you can fill the gap and
where you can gain a competitive advantage. Fulfilling the needs of this industry problem becomes
your goal – your strategy.
Strategic marketing considers the long-term goals of your company such as expanding your business,
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 marketing focuses on the details
to achieve that goal. With a strategy in place, the actions 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 marketing plan included establishing a budget, tactical
planning preparation should take into account its financial limitations in carrying out these activities.
Strategic marketing and tactical marketing are interdependent and employed in combination. Your
marketing plan starts with a strategy and followed by detailed tactics. The presence of both forms of
marketing is essential to the success of your marketing.
Which one will grow your business? Strategic marketing.
Most companies start with tactical marketing by choosing activities such as email, pay-per-click, SEO,
social media, trade shows, etc. This is a big mistake!
Starting with tactical marketing without first addressing strategic marketing is like building a house
without a blueprint. It's based on a strategy of hope which is guaranteed to fail.
To get the highest impact on your marketing spend, start with strategy, then move to tactics. Strategy
drives growth. Ignoring strategy and starting with tactics is like burning a pile of cash in your parking
lot.
KEYWORDS TO REMEMBER:
 This become the basis of long-Term plan used in strategic marketing
 To accomplish the long-term goal, marketers also develop short term action plan and do
tactical marketing
 Strategic marketing considers the long-term goals of your company such as expanding your
business, 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 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 marketing plan included
establishing a budget, tactical planning preparation should take into account its financial
limitations in carrying out these activities.
STRATEGIC PLANNING PROCESS
1. Defining the Corporate vision

Your vision must be:
• concise: able to be easily remembered and
repeated
• clear: defines a prime goal
• Time horizon: defines a time horizon
• future-oriented: describes where the company is
going rather than the current state
• stable: offers a long-term perspective and is unlikely to be impacted by market or technology

changes
• challenging: not something that can be easily met and discarded
• abstract: general enough to encompass all of the organization's interests and strategic
direction
• inspiring: motivates employees and is something that employees view as desirable
2. Defining the corporate mission
A mission statement is a short statement of why an organization exists, what its overall goal
is, identifying the goal of its operations: what kind of product or service it provides, its primary
customers or market, and its geographical region of operation. It may include a short
statement of such fundamental matters as the organization's values or philosophies, a
business's main competitive advantages, or a desired future state—the "vision".
A mission is not simply a description of an organization by an external party, but an expression,

made by its leaders, of their desires and intent for the organization. The purpose of a mission
statement is to communicate the organization’s purpose and direction to its employees,
customers, vendors, and other stakeholders. A mission statement also creates a sense of
identity for its employees. Organizations normally do not change their mission statements
over time, since they define their continuous, ongoing purpose and focus.
According to Peter Drucker, it is time to ask some fundamental questions such as:
a. What is the business?
b. Who is the customer?
c. What is of the value to the customer?
d. What will the business be?
e. What should the business be?
Good mission includes:
1. Industry scope
2. Products and application scope
3. Competence scope
4. Market- segment scope
5. Vertical Scope
6. Geographical Scope
3. Define the objective
WHAT ARE OBJECTIVES?
Objectives are the specific measurable results of the initiative. Objectives specify how much of what
will be accomplished by when. For example, one of several objectives for a community initiative to
promote care and caring for older adults might be: "By 2024 (by when), to increase by 20% (how

much) those elders reporting that they are in daily contact with someone who cares about them (of
what)."
There are three basic types of objectives. They are:
1. Process objectives.
These are the objectives that provide the groundwork or implementation necessary to
achieve your other objectives. For example, the group might adopt a comprehensive plan for
improving neighborhood housing. In this case, adoption of the plan itself is the objective.
2. Behavioral objectives.
These objectives look at changing the behaviors of people (what they are doing and saying)
and the products (or results) of their behaviors. For example, a neighborhood improvement
group might develop an objective for having an increased amount of home repair taking place
(the behavior) and fewer houses with broken or boarded-up windows (the result).
3. Community-level outcome objectives.

These are often the product or result of behavior change in many people. They are focused on
change at the community level instead of an individual level. For example, the same
neighborhood group might have an objective of increasing the percentage of people living in
the community with adequate housing as a community-level outcome objective.
It's important to understand that these different types of objectives aren't mutually exclusive. Most
groups will develop objectives in all three categories.
Objectives should be S.M.A.R.T. + C.:

1. Specific - That is, they tell how much (e.g., 10%) of what is to be achieved (e.g., what behavior
of whom or what outcome) by when (e.g., by 2025)?
2. Measurable- Information concerning the objective can be collected, detected, or obtained.
3. Achievable - It is feasible to pull them off.
4. Relevant to the mission - Your organization has a clear understanding of how these objectives
fit in with the overall vision and mission of the group.
5. Timed -Your organization has developed a timeline (a portion of which is made clear in the
objectives) by which they will be achieved.
6. Challenging- They stretch the group to set its aims on significant improvements that are
important to members of the community.
3.2Marketing Environment: Macro and Micro Marketing Environment
The marketing environment of a company is composed of the people, institutions, 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 important because the
marketing environment offers both opportunities and threats.
For example, an alliance with the supplier and distributor may help an organization to get a
competitive edge over its rivals.
On the other hand entry of many competitors poses a threat to the organization as some of their
customers may shift to a new seller.
By conducting a regular and systematic environmental analysis, the company 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.
According to Philip Kotler, “A company’s marketing environment consists of the internal factors &
forces, which affect the company’s ability to develop & maintain successful transactions &
relationships with the company’s target customers”.
According to Pride &Ferrell, “The marketing

environment consists of external forces that
directly or indirectly influence an organization’s
acquisition of inputs and generation of
outputs”.
To sum up, the marketing environment is a set

of diverse, dynamic and uncontrollable forces
that impinge on an organization’s marketing
operations and opportunities.
Let’s look at this chart that shows the micro

(internal) and macro (external) elements of the
marketing environment.
Macro Environment of Marketing

Macro environment factors which consist of external forces. These external factors influence
the company’s marketing strategy is a great length.
The external environment factors are uncontrollable and the company finds it hard to tackle
the external factors.
Elements of macro-environment of marketing are;
1. Demographic factors.
2. Economic factors.
3. Natural forces.

4. Technology factors.
5. Political factors.
6. Cultural factors.
a. Demographic Environment
Demography is the study of human populations in terms of size, destiny, location, age, gender, race,
occupation, and other statistics. This is the very important factors that help the marketer to divide
the population into different market segments and target markets. Demographic data also helps in
preparing geographical marketing plans, age, and sex-wise plans.
b. 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 (per capote
income) changes it also changes the buying behavior and spending pattern of the family or country.
c. 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.
d. Technological Environment
Technological forces are perhaps the most dramatic forces which are changing rapidly. These macro-
environmental forces create a new product, new markets and marketing opportunities for marketers.
e. 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.
f. 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.
g. Micro Marketing 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.
It includes the company itself, its suppliers, marketing

intermediaries, customer markets, competitors, and
the public.
5 components of the micro environment of

marketing are;
1. Internal Organizational Environment.

2. Marketing Channel.
3. Types of Market.
4. Competition.
5. Organizational Objectives.
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.
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 organization can sell:
1. the consumer, 3. government,
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2. producer, 4. reseller,
5. and international markets.
Competition
The fourth component consists of the competitors facing the organization.
Organizational Objectives
The fifth component consists of all the public’s that have an actual or potential interest in or impact
on the organization’s ability to achieve its objectives: financial, media, government, citizen action, and
local, general, and internal publics
Differences between Macro and Micro Environment of Marketing
Point of difference Macro-environment Microenvironment
Meaning External environment of an organization. Inter environments of an organization.
Nature Very complex. Less complex to perceive.
Marketer interacts with, the elements The marketer interacts with other functional
The task of the marketer
prevailing outside the organization. areas of the organization.
Factors remain beyond the control of Factors may be controlled to a large extent by
Extent of control
marketers. a marketer.
It creates a huge impact on shaping marketing Remains comparatively independent are

Impact
decisions. shaping marketing decisions.
Factors reveal the capabilities of an

Factors may create an opportunity or pose a
organization to exploit the opportunities or to
Function threat to the marketing activities of an
combat the threat through its marketing
organization.
activities.
Micro and macro refer to economic environments within which marketing takes place. Though not
exactly opposites, broad differences exist between macro marketing and micromarketing.
The differences between macro environments and micro-environments may be relevant to identify
in the following table:
How environmental factors affecting the consumer decision process?

1. Economic factors
Economic factors play an important role in consumer buying behavior decisions. It also directly affects
the purchasing power of consumers.
If consumers’ purchasing power is weak, they cannot decide to buy goods or services even if they like
very much.
But, if they have purchasing power, they can take a prompt decision to buy goods or services they
like.
Income level, the income of their family members, liquid asset, spending attitude, credit facility, etc.
are the economic factors to determine consumers’ buying decision.
2. Technological factors
Technological forces are perhaps the most dramatic forces which are changing customer habit by
introducing a new product for the customer.
3. Cultural factors
Culture is crucial when it comes to understanding the needs and behaviors of an individual.
Throughout his existence, an individual will be influenced by his family, his
friends, his cultural environment or society that will “teach” him values, preferences as well as
common behaviors to their own culture and buying behavior.
4. Demographic factors
Demography is the study of human populations in terms of size, destiny, location, age, gender, race,
occupation, and other statistics. This is very important because these factors directly influence
consumer decision making.
3.3THE MARKETING RESEARCH
Marketing research is the systematic gathering, recording, and analysis

of qualitative and quantitative data about issues relating to marketing products and services. The
goal is to identify and assess how changing elements of the marketing mix impacts customer
behavior.
This involves specifying the data required to address these issues, then designing the method for
collecting information, managing and implementing the data collection process. After analyzing the
data collected, these results and findings, including their implications, are forwarded to those
empowered to act on them.
Market research, marketing research, and marketing are a sequence of business activities; sometimes
these are handled informally.

The field of marketing research is much older than that of market research. Although both involve
consumers, Marketing research is concerned specifically about marketing processes, such as
advertising effectiveness and salesforce effectiveness, while market research is concerned specifically
with markets and distribution. Two explanations given for confusing Market research with Marketing
research are the similarity of the terms and also that Market Research is a subset of Marketing
Research. Further confusion exists because of major companies with expertise and practices in both
areas.
Marketing research is often partitioned into two sets of categorical pairs, either by target market:
• Consumer marketing research, (B2C) and

• Business-to-business (B2B) marketing research.
Or, alternatively, by methodological approach:
• Qualitative marketing research, and

• Quantitative marketing research.
•
Consumer marketing research is a form of applied sociology that concentrates on understanding the
preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to
understand the effects and comparative success of marketing campaigns.[citation needed]
Thus, marketing research may also be described as the systematic and objective identification,
collection, analysis, and dissemination of information for the purpose of assisting management
in decision making related to the identification and solution of problems and opportunities in
marketing. The goal of market research is to obtain and provide management with viable information
about the market (e.g. competitors), consumers, the product/service itself etc.
The purpose of marketing research (MR) is to provide management with relevant, accurate, reliable,
valid, and up to date market information. Competitive marketing environment and the ever-
increasing costs attributed to poor decision making require that marketing research provide sound
information. Sound decisions are not based on gut feeling, intuition, or even pure judgment.
Managers make numerous strategic and tactical decisions in the process of identifying and satisfying
customer needs. They make decisions about potential opportunities, target market selection,
market segmentation, planning and implementing marketing programs, marketing performance,
and control. These decisions are complicated by interactions between the controllable marketing
variables of product, pricing, promotion, and distribution. Further complications are added by
uncontrollable environmental factors such as general economic conditions, technology, public
policies and laws, political environment, competition, and social and cultural changes. Another
factor in this mix is the complexity of consumers. Marketing research helps the marketing manager
link the marketing variables with the environment and the consumers. It helps remove some of the
uncertainty by providing relevant information about the marketing variables, environment, and
consumers. In the absence of relevant information, consumers' response to marketing programs
cannot be predicted reliably or accurately. Ongoing marketing research programs provide
information on controllable and non-controllable factors and consumers; this information enhances
the effectiveness of decisions made by marketing managers.
Traditionally, marketing researchers were responsible for providing the relevant information and
marketing decisions were made by the managers. However, the roles are changing and marketing
researchers are becoming more involved in decision making, whereas marketing managers are
becoming more involved with research. The role of marketing research in managerial decision making
is explained further using the framework of the DECIDE model.
Marketing research techniques come in many forms, including:
• Ad Tracking – periodic or continuous in-market research to monitor a brand's performance using

measures such as brand awareness, brand preference, and product usage. (Young, 2005)
• Advertising Research – used to predict copy testing or track the efficacy of advertisements for
any medium, measured by the ad's ability to get attention (measured with AttentionTracking),
communicate the message, build the brand's image, and motivate the consumer to purchase the
product or service. (Young, 2005)
• Brand awareness research — the extent to which consumers can recall or recognize a brand
name or product name
• Brand association research — what do consumers associate with the brand?
• Brand attribute research — what are the key traits that describe the brand promise?
• Brand name testing – what do consumers feel about the names of the products?
• Buyer decision making process— to determine what motivates people to buy and what decision-
making process they use; over the last decade, Neuromarketing emerged from the convergence
of neuroscience and marketing, aiming to understand consumer decision making process
• Commercial eye tracking research — examine advertisements, package designs, websites, etc. by
analyzing visual behavior of the consumer
• Concept testing – to test the acceptance of a concept by target consumers
• Coolhunting (also known as trendspotting) – to make observations and predictions in changes of
new or existing cultural trends in areas such as fashion, music, films, television, youth culture and
lifestyle
• Copy testing – predicts in-market performance of an ad before it airs by analyzing audience levels
of attention, brand linkage, motivation, entertainment, and communication, as well as
breaking down the ad's flow of attention and flow of emotion. (Young, p 213)
• Customer satisfaction research – quantitative or qualitative studies that yields an understanding
of a customer's satisfaction with a transaction
• Demand estimation — to determine the approximate level of demand for the product
• Distribution channel audits — to assess distributors’ and retailers’ attitudes toward a
product, brand, or company
• Internet strategic intelligence — searching for customer opinions in the Internet: chats, forums,
web pages, blogs... where people express freely about their experiences with products, becoming
strong opinion formers.
• Marketing effectiveness and analytics — Building models and measuring results to determine
the effectiveness of individual marketing activities.
• Mystery consumer or mystery shopping – An employee or representative of the market research
firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The
shopper then records the entire experience. This method is often used for quality control or for
researching competitors' products.
• Positioning research — how does the target market see the brand relative to competitors? –
what does the brand stand for?
• Price elasticity testing — to determine how sensitive customers are to price changes
• Sales forecasting — to determine the expected level of sales given the level of demand. With
respect to other factors like Advertising expenditure, sales promotion etc.
• Segmentation research – to determine the demographic, psychographic, cultural, and behavioral
characteristics of potential buyers
• Online panel – a group of individuals who accepted to respond to marketing research online
• Store audit — to measure the sales of a product or product line at a statistically selected store
sample in order to determine market share, or to determine whether a retail store provides
adequate service
• Test marketing — a small-scale product launch used to determine the likely acceptance of the
product when it is introduced into a wider market
• Viral Marketing Research – refers to marketing research designed to estimate the probability that
specific communications will be transmitted throughout an individual's Social Network. Estimates
of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to
estimate ROI on specific combinations of messages and media.
9 Key stages in your marketing research process
Marketing research is the term used to cover the concept, development, placement and evolution of
your product or service, its growing customer base and its branding – starting with brand awareness,
and progressing to (everyone hopes) brand equity. Like any research, it needs a robust process to be
credible and useful.
Marketing research uses four essential key factors known as the ‘marketing mix’, or the Four Ps of
Marketing:
a. Product (goods or service)

b. Price (how much the customer pays)
c. Place (where the product is marketed)
d. Promotion (such as advertising and PR)
These four factors need to work in harmony for a product or service to be successful in its
marketplace.
The marketing research process – an overview
A typical marketing research process is as follows:
a. Identify an issue, discuss alternatives and set out research objectives

b. Develop a research program
c. Choose a sample
d. Gather information
e. Gather data
f. Organize and analyze information and data
g. Present findings
h. Make research-based decisions
i. Take action based on insights
Step 1: Defining the marketing research problem

Defining a problem is the first step in the research process. In many ways, research starts with a
problem facing management. This problem needs to be understood, the cause diagnosed, and
solutions developed.
However, most management problems are not always easy to research, so they must first be
translated into research problems. Once you approach the problem from a research angle, you can
find a solution. For example, “sales are not growing” is a management problem, but translated into
a research problem, it becomes “why are sales not growing?” We can look at the expectations and
experiences of several groups: potential customers, first-time buyers, and repeat purchasers. We can
question whether the lack of sales is due to:
• Poor expectations that lead to a general lack of desire to buy, or

• Poor performance experience and a lack of desire to repurchase.
This, then, is the difference between a management problem and a research problem. Solving
management problems focuses on actions: Do we advertise more? Do we change our advertising
message? Do we change an under-performing product configuration? And if so, how?
Defining research problems, on the other hand, focus on the whys and hows, providing the insights
you need to solve your management problem.
Step 2: Developing a research program: method of inquiry
The scientific method is the standard for investigation. It provides an opportunity for you to use
existing knowledge as a starting point, and proceed impartially.
The scientific method includes the following steps:

• Define a problem
• Develop a hypothesis
• Make predictions based on the hypothesis
• Devise a test of the hypothesis
• Conduct the test
• Analyze the results
This terminology is similar to the stages in the research process. However, there are subtle differences
in the way the steps are performed:

• the scientific research method is objective and fact-based, using quantitative research and
impartial analysis
• the marketing research process can be subjective, using opinion and qualitative research, as
well as personal judgment as you collect and analyze data
Step 3: Developing a research program: research method
As well as selecting a method of inquiry (objective or subjective), you must select a research method.
There are two primary methodologies that can be used to answer any research question:
• Experimental research: gives you the advantage of controlling extraneous variables and
manipulating one or more variables that influence the process being implemented.
• Non-experimental research: allows observation but not intervention – all you do is observe
and report on your findings.
Step 4: Developing a research program: research design
Research design is a plan or framework for conducting marketing research and collecting data. It is
defined as the specific methods and procedures you use to get the information you need.
There are three core types of marketing research designs: exploratory, descriptive, and causal. A
thorough marketing research process incorporates elements of all of them.
Exploratory marketing research

This is a starting point for research. It’s used to reveal facts and opinions about a particular topic, and
gain insight into the main points of an issue. Exploratory research is too much of a blunt instrument
to base conclusive business decisions on, but it gives the foundation for more targeted study. You can
use secondary research materials such as trade publications, books, journals and magazines and
primary research using qualitative metrics, that can include open text surveys, interviews and focus
groups.
Descriptive marketing research

This helps define the business problem or issue so that companies can make decisions, take action
and monitor progress. Descriptive research is naturally quantitative – it needs to be measured
and analyzed statistically, using more targeted surveys and questionnaires. You can use it to capture
demographic information, evaluate a product or service for market, and monitor a target audience’s
opinion and behaviors. Insights from descriptive research can inform conclusions about the market
landscape and the product’s place in it.
Causal marketing research

This is useful to explore the cause and effect relationship between two or more variables. Like
descriptive research, it uses quantitative methods, but it doesn’t merely report findings; it uses
experiments to predict and test theories about a product or market. For example, researchers may
change product packaging design or material, and measure what happens to sales as a result.

Step 5: Choose your sample
Your marketing research project will rarely examine an entire population. It’s more practical to use a
sample - a smaller but accurate representation of the greater population. To design your sample,
you’ll need to answer these questions:
• Which base population is the sample to be selected from? Once you’ve established who your
relevant population is (your research design process will have revealed this), you have a base
for your sample. This will allow you to make inferences about a larger population.
• What is the method (process) for sample selection? There are two methods of selecting a
sample from a population:
1. Probability sampling: This relies on a random sampling of everyone within the larger
population.
2. Non-probability sampling: This is based in part on the investigator’s judgment, and often
uses convenience samples, or by other sampling methods that do not rely on probability.
• What is your sample size? This important step involves cost and accuracy decisions. Larger
samples generally reduce sampling error and increase accuracy, but also increase costs. Find
out your perfect sample size with our calculator.
Step 6: Gather data

Your research design will develop as you select techniques to use. There are many channels for
collecting data, and it’s helpful to differentiate it into O-data (Operational) and X-data (Experience):
• O-data is your business’s hard numbers like costs, accounting, and sales. It tells you what has
happened, but not why.
• X-data gives you insights into the thoughts and emotions of the people involved: employees,
customers, brand advocates.
When you combine O-data with X-data, you’ll be able to build a more complete picture about success
and failure - you’ll know why. Maybe you’ve seen a drop in sales (O-data) for a particular product.
Maybe customer service was lacking, the product was out of stock, or advertisements weren’t
impactful or different enough: X-data will reveal the reason why those sales dropped. So, while
differentiating these two data sets is important, when they are combined, and work with each other,
the insights become powerful.
With mobile technology, it has become easier than ever to collect data. Survey research has come a
long way since market researchers conducted face-to-face, postal, or telephone surveys. You can run
research through:
• Email
• SMS
• Slack
• WhatsApp

• Social media (polls and listening)
Another way to collect data is by observation. Observing a customer’s or company’s past or present
behavior can predict future purchasing decisions. Data collection techniques for predicting past
behavior can include market segmentation, customer journey mapping and brand tracking.
Regardless of how you collect data, the process introduces another essential element to your research
project: the importance of clear and constant communication.
And of course, to analyze information from survey or observation techniques, you must record your
results. Gone are the days of spreadsheets. Feedback from surveys and listening channels can
automatically feed into AI-powered analytics engines and produce results, in real-time, on
dashboards.
Step 7: Analysis and interpretation
The words ‘statistical analysis methods’ aren’t usually guaranteed to set a room alight with
excitement, but when you understand what they can do, the problems they can solve and the insights
they can uncover, they seem a whole lot more compelling.
Statistical tests and data processing tools can reveal:
• Whether data trends you see are meaningful or are just chance results
• Your results in the context of other information you have
• Whether one thing affecting your business is more significant than others
• What your next research area should be
• Insights that lead to meaningful changes
There are several types of statistical analysis tools used for surveys. You should make sure that the
ones you choose:
• Work on any platform - mobile, desktop, tablet etc.

• Integrate with your existing systems
• Are easy to use with user-friendly interfaces, straightforward menus, and automated data analysis
• Incorporate statistical analysis so you don’t just process and present your data, but refine it, and
generate insights and predictions.
Here are some of the most common tools:
• Benchmarking: a way of taking outside factors into account so that you can adjust the
parameters of your research. It ‘levels the playing field’ – so that your data and results are
more meaningful in context. And gives you a more precise understanding of what’s happening.
• Regression analysis: this is used for working out the relationship between two (or more)
variables. It is useful for identifying the precise impact of a change in an independent variable.

• T-test is used for comparing two data groups which have different mean values. For example,
do women and men have different mean heights?
• Analysis of variance (ANOVA) Similar to the T-test, ANOVA is a way of testing the differences
between three or more independent groups to see if they’re statistically significant.
• Cluster analysis: This organizes items into groups, or clusters, based on how closely associated
they are.
• Factor analysis: This is a way of condensing many variables into just a few, so that your
research data is less unwieldy to work with.
• Conjoint analysis: this will help you understand and predict why people make the choices they
do. It asks people to make trade-offs when making decisions, just as they do in the real world,
then analyzes the results to give the most popular outcome.
• Crosstab analysis: this is a quantitative market research tool used to analyze ‘categorical data’
- variables that are different and mutually exclusive, such as: ‘men’ and ‘women’, or ‘under
30’ and ‘over 30’.
• Text analysis and sentiment analysis: Analyzing human language and emotions is a rapidly-
developing form of data processing, assigning positive, negative or neutral sentiment to
customer messages and feedback.
Stats IQ can perform the most complicated statistical tests at the touch of a button using our online
survey software, or data from other sources. Learn more about Stats iQ now.
Step 8: The marketing research results
Your marketing research process culminates in the research results. These should provide all the
information the stakeholders and decision-makers need to understand the project.
The results will include:
• all your information

• a description of your research process
• the results
• conclusions
• recommended courses of action
They should also be presented in a form, language and graphics that are easy to understand, with a
balance between completeness and conciseness, neither leaving important information out or
allowing it to get so technical that it overwhelms the readers.
Traditionally, you would prepare two written reports:
• a technical report, discussing the methods, underlying assumptions and the detailed findings
of the research project
• a summary report, that summarizes the research process and presents the findings and
conclusions simply.

There are now more engaging ways to present your findings than the traditional PowerPoint
presentations, graphs, and face-to-face reports:
• Live, interactive dashboards for sharing the most important information, as well as tracking a
project in real time.
• Results-reports visualizations – tables or graphs with data visuals on a shareable slide deck
• Online presentation technology, such as Prezi
• Visual storytelling with infographics
• A single-page executive summary with key insights
• A single-page stat sheet with the top-line stats
You can also make these results shareable so that decision-makers have all the information at their
fingertips.
Step 9 Turn your insights into action
Insights are one thing, but they’re worth very little unless they inform immediate, positive action.
Here are a few examples of how you can do this:
• Stop customers leaving – negative sentiment among VIP customers gets picked up; the
customer service team contacts the customers, resolves their issues, and avoids churn.
• Act on important employee concerns – you can set certain topics, such as safety, or diversity
and inclusion to trigger an automated notification or Slack message to HR. They can rapidly
act to rectify the issue.
• Address product issues – maybe deliveries are late, maybe too many products are faulty.
When product feedback gets picked up through Smart Conversations, messages can be
triggered to the delivery or product teams to jump on the problems immediately.
• Improve your marketing effectiveness - Understand how your marketing is being received by
potential customers, so you can find ways to better meet their needs
• Grow your brand - Understand exactly what consumers are looking for, so you can make sure
that you’re meeting their expectations
7 Stages or Steps Involved in Marketing Research Process

1. Identification and Defining the Problem: ...
2. Statement of Research Objectives: ...
3. Planning the Research Design or Designing the Research Study: ...
4. Planning the Sample: ...
5. Data Collection: ...
6. Data Processing and Analysis: ...
7. Formulating Conclusion, Preparing and Presenting the Report:
3.4 THE CONSUMER AND BUSINESS MARKET
Difference Between Business Market and Consumer Market

• Categorized under Business | Difference Between Business Market and Consumer Market
The selling environment in any business transaction presents unique differences. As such, business
markets and consumer markets are different in many aspects, although often overlooked. While the
business markets consist of businesses that acquire products and services used in the production of
other goods and services, consumer markets consist of businesses that sell goods to the final
consumers. This article outlines the differences between business markets and consumer markets.
What are a Business Markets?
As mentioned, business markets refer to organizations, businesses or entities that acquire products
and services for use in the production of other services and products. These include goods that are
supplied, sold or rented to others. Among major players in business markets include fisheries,
agriculture, mining, transportation, construction, mining, communication, finance, distribution and
insurance services.
Many people are investing in more resources and

money in business markets. A case in point is Tesla’s plan
to invest $5 billion in its new eclectic car and battery,
commonly referred to as ‘Gigafactory’ in Europe.
Different suppliers will then provide accessories and
parts.
Characteristics of business markets include;
a. Presence of fewer but larger buyers- While the buyers may be few, they often buy in large
quantities
b. Geographically concentrated customers- Customers in these markets are at vast geographical
locations
c. Final customer demand-driven- Since production is tailored for the final consumer, the
products are tailored towards the final consumers’ wants and needs
d. Inelastic demand- The prices in these markets do not affect the demands as they do not
change much
e. Quick fluctuation in demand- Since businesses prefer to buy sat the lowest prices, an increase
in prices decreases the products purchases since high price selling products do not sell well in
the market
f. Professional purchasing units- Due to the need of maintaining a high level of professionalism,
the purchasing process is very detail-oriented.
g. Has a formalized buying process- The purchasing process involves following the organization’s
protocol and the complete chain of command.
What are Consumer Markets?

This is a market whereby businesses or producers sell their products or services directly to the
final consumers.
Marketing in consumer markets involves dividing the consumers into markets and targeting them
according to their likes, interests, dislikes, values and opinions.
Characteristics of consumer markets include;
1. Demographic characteristics- This is the foundation for understanding consumers and

include ethnicity, age, income, gender, occupation, religion, nationality, social class,
education and social class.
2. Behavioristic characteristics- These include consumer interests in a product such as how
they intend to use it.
3. Psychographic characteristics- This entails the kind of lifestyle the customer lives, their
interest, opinions and attitudes as well as personal values.
4. Geographic characteristics- This is information regarding where the consumer lives. It
includes the climate, religion or how densely populated the geographical area is.
Features of consumer markets include;
a. Consumer focused market- The consumer market solely focuses on the consumers
b. Branding is carried out to change or improve the consumer’s perception of the product
c. Packaging- This is done to attract buyers in the market
d. Promotion- Brands use different promotional tools to increase sales
e. Demand- The demand for consumer products is elastic since it is affected by income and price
Examples of these markets include clothing stores, grocery stores, franchises and car
dealerships.
Similarities between Business market and Consumer market - Both play an important role in the
supply chain
Differences between Business market and Consumer market
Definition
Business markets refer to organizations, businesses or entities that acquire products and services for
use in the production of other services and products. On the other hand, consumer markets refer to
markets whereby businesses or producers sell their products or services directly to the final
consumers.
Demand
While business markets have inelastic demand, consumer markets have an elastic demand.
Number of buyers

Business markets have fewer buyers who often buy in large quantities. On the other hand, consumer
markets have many buyers who purchase in small quantities.
Buying process
While business markets have formalized buying processes whereby the purchasing process involves
following the organization’s protocol and the complete chain of command, consumer markets do not
have formalized buying processes.
Decision making
Since business markets entail many products, decision making before purchases are made is slow. On
the other hand, the decision making in consumer markets is fast since impulse buying is rampant.
3.5 MARKET SEGMENTATION, MARKET TARGETTING AND MARKET POSITIONING
What is STP marketing and what role does it play in boosting conversions and revenue?
We look at the Segmentation, Targeting, Positioning framework illustrated by real-life examples.
Segmentation targeting positioning marketing is a core concept in modern-day marketing. Without

it, marketing campaigns would be generic, have little to no personalization, and overall would not be
able to convert at a level most businesses would deem effective.
Let’s delve into the intricacies of the STP Model and see how implementing this framework into your
eCommerce business can yield amazing results.
WHAT IS STP (SEGMENTATION, TARGET AND POSITIOING)
STP marketing is an acronym for Segmentation, Targeting, and Positioning – a three-step model that
examines your products or services as well as the way you communicate their benefits to specific
customer segments. In a nutshell, the STP marketing model means you segment your market, target

select customer segments with marketing campaigns tailored to their preferences, and adjust your
positioning according to their desires and expectations.
STP marketing is effective because it focuses on breaking your customer base into smaller groups,
allowing you to develop very specific marketing strategies to reach and engage each target audience.
In fact, 59% of customers say that personalization influences their shopping decision and another 44%
said that a personalized shopping experience would influence them to become repeat customers of a
brand.
STP marketing represents a shift from product-focused marketing to customer-focused marketing.

This shift gives businesses a chance to gain a better understanding of who their ideal customers are
and how to reach them. In short, the more personalized and targeted your marketing efforts, the
more successful you will be.
The STEP Formula

If you are looking for a simple way to remember and summarize the STP marketing concept, the
acronym STEP is extremely useful:
Segmentation + Targeting Equals Positioning
This formula clearly illustrates that each segment requires tailored positioning and marketing mix to
ensure its success. Let’s take a closer look at each of the three steps in the STP marketing model.
Segmentation
The first step of the STP marketing model is segmentation. The main goal here is to create various
customer segments based on specific criteria and traits that you choose. The four main types
of audience segmentation include:
1. Geographic segmentation: Diving your audience based on country, region, state, province,
etc.
2. Demographic segmentation: Dividing your audience based on age, gender, education level,
occupation, gender, etc.
3. Behavioral segmentation: Dividing your audience based on how they interact with your
business: What they buy, how often they buy, what they browse, etc.
4. Psychographic segmentation: Dividing your audience based on “who” your potential
customer is: Lifestyle, hobbies, activities, opinions, etc.

Targeting
Step two of the STP marketing model is targeting. Your main goal here is to look at the segments you
have created before and determine which of those segments are most likely to generate desired
conversions (depending on your marketing campaign, those can range from product sales to micro
conversions like email signups).
Your ideal segment is one that is actively growing, has high profitability, and has a low cost of
acquisition:
1. Size: Consider how large your segment is as well as its future growth potential.
2. Profitability: Consider which of your segments are willing to spend the most money on your
product or service. Determine the lifetime value of customers in each segment and compare.
3. Reachability: Consider how easy or difficult it will be for you to reach each segment with your
marketing efforts. Consider customer acquisition costs (CACs) for each segment. Higher CAC
means lower profitability.
There are limitless factors to consider when selecting an audience to target – we’ll get into a few more
later on – so be sure that everything you consider fits with your target customer and their needs.
Positioning
The final step in this framework is

positioning, which allows you to set your
product or services apart from the
competition in the minds of your target
audience. There are a lot of businesses
that do something similar to you, so you
need to find what it is that makes you
stand out.
All the different factors that you

considered in the first two steps should
have made it easy for you to identify your
niche.
There are three positioning factors that

can help you gain a competitive edge:
1. Symbolic positioning: Enhance the self-image, belongingness, or even ego of your customers.
The luxury car industry is a great example of this – they serve the same purpose as any other
car but they also boost their customer’s self-esteem and image.
2. Functional positioning: Solve your customer’s problem and provide them with genuine
benefits.

3. Experiential positioning: Focus on the emotional connection that your customers have with
your product, service, or brand.
The most successful product positioning is a

combination of all three factors. One way to
visualize this is by creating a perceptual
map for your industry. Focus on what is
important for your customers and see where
you and your competitors land on the map.
A perceptual map of popular clothing

retailers
Benefits of STP marketing

If you aren’t already convinced that STP marketing is going to revolutionize your business, we’re
breaking down the key benefits that STP marketing has over a traditional marketing approach.
Because STP focuses on creating a precise target audience and positioning your products/services in
a way that is most likely to appeal to that audience, your marketing becomes hyper-personalized.
With personalization:
• Your brand messaging becomes more personal and empathetic because you have your
customer personas and know exactly whom you’re talking to;
• Your marketing mix becomes more crystalized and yields higher return on investment
because you’re no longer wasting budget on channels that your audience simply ignores;
• Your market research and product innovation become more effective because you know
exactly whom to ask for advice and feedback in the development phase.
Yieldify’s recent research shows that eCommerce leaders are adopting personalization at an
unprecedented rate – 74% of eCommerce sites now claim to have now adopted some level
of personalization strategy. Their reasons?
Fifty-eight percent found that personalization helps increase customer retention, 55% cited
conversion and 45% found that personalization actually helped minimize the cost of new customer
acquisition.
Finally, STP marketing levels the playing field. The framework allows small businesses and startups to
find success in their niche markets when they normally wouldn’t have the reach to compete with the
larger whole-market businesses in their industry.
How to create an STP marketing strategy: The full STP model
We covered the three stages of the STP marketing model, looked at the benefits and examples of this
approach. While this provides you with an excellent overview of the concept, we want to get into the
detail of creating an STP marketing strategy that serves your business.

Below you will find 7 steps to creating a solid marketing strategy using the full STP model.
1. Define the market

The global market is far too big and far too vast for anyone – even the biggest corporation with the
most resources – to address. That’s why it’s important to break it down into smaller chunks and clearly
define the part you are going after.
Typically, to evaluate your business opportunity, you will need to define your TAM, SAM, and
SOM: Total Available Market, Serviceable Available Market, and Serviceable Obtainable Market.
Think of it as an iceberg. The

very top peeking from under
the water is your SOM –
that’s the portion of the
market that you can
effectively reach.
SAM is is the portion of the

total available market that
fits your product or service
offering. Whereas TAM is
the total available market, in
other words, “the overall
revenue opportunity that is
available to a product or
service if 100% market share was achieved.”
For example, back when Airbnb was starting to pitch investors, they used the TAM, SAM, SOM model
to explain their business potential. Their total available market (TAM) then was valued at $1.9 billion
dollars and included any type of accommodation that travelers were booking worldwide.
Because their service offering was

targeted more at the budget
travelers who were using online
booking engines to find their stay. In
this case, the SAM was valued at $532
million dollars. Lastly, their SOM
came in at $10.6 million dollars and
signified the revenue obtainable for
Airbnb.
Similarly with a consumer product,

we can look at Diet Coke and say that its TAM would include the total beverage market. Its SAM would
narrow it down to soft drinks, and SOM would zero in on the carbonated sugar-free drinkers out there.
There are several routes you can choose when defining a market. You can do so by:
• Industry classification (agriculture, retail, transportation, etc.

• Product category (apparel, health and beauty, food and beverage, etc.)
• Country (United States, United Kingdom, etc.)
2. Create audience segments

Now that you’ve adequately defined your target market, it’s time to segment it using geographical,
demographic, behavioral, and psychographic variables.
Each segmentation variable helps you tap into a different aspect of your audience and when you use
them in unison you can create niche segments that really make an impact on your overall marketing
effort.
For example, if you split your serviceable obtainable market into men vs women (demographic
variables) you are still left with a pretty broad audience segment. However, if you start layering other
segmentation variables on top, you can create a precise audience that you can make the biggest
impact on.
Perhaps you go after women (demographics) in the United States (geographics) who prefer to spend
money on luxury products (psychographics) who follow you on social media or have visited your
website in the past (behavior).
As you can see, this layering method

creates a hyper-focused audience
segment that allows you to create an
extremely personalized experience. And
as we mentioned before,
personalization has a huge impact on
the success of your marketing efforts.
3. Construct segment profiles

When you’ve landed on your viable
market segments, it’s time to develop
segment profiles. Segment profiles are
very similar to your ideal customer
personas but they act as subsets of your main persona – they are detailed descriptions of the people
in each segment.
Describe their needs, behaviors, demographics, brand preferences, shopping traits, and any other
characteristics. Each profile should be as detailed as possible to give you and your business a good
understanding of the people within each segment. This will allow you to compare segments for
strategy purposes.

4. Evaluate the attractiveness of each segment

Cross-referencing your findings with available
market data and consumer research will help you
assess which of your constructed segments can
bring in the biggest return on your investment.
Consider factors like segment size, growth rates,
price sensitivity, and brand loyalty.
With this information, you will be able to evaluate
the overall attractiveness of each segment in terms
of dollar value.
5. Select target audience/s

Now that you have detailed information on all of your segments, you need to spend some time
deciding which ones are the most viable to use as your target audiences. You’ll need to take into
account your overall business strategy, the attractiveness of the segment, and the competition that
exists in that segment.
The best way to determine the most viable segment is by performing cluster analysis. Quite a complex
and technical topic on its own (check out this guide to get more insights), clustering in the context of
eCommerce segmentation means using mathematical models to identify groups of customers that
are more similar to one another than those in other groups.
Your ideal audience segment is one that is both large and still growing, and you are able to reach with
your marketing efforts. You’ll also want a segment that aligns with your business strategy – it makes
no sense to focus your efforts on a segment of men in Australia if you are phasing out your menswear
and don’t offer free shipping to Australia.
6. Develop a positioning strategy

Next, you need to develop a
positioning strategy that will give
you the best edge to compete in
the selected target audience.
Determine how to effectively
position your product, taking into
account other competitors – focus
on how your positioning can win
the largest amount of the market
share.
There are several positioning

strategies paths you can follow:
1. Category-based
positioning – This calls for determining how are your products or services better than the
existing solutions on the market.

2. Consumer-based positioning – This calls for aligning your product/service offering with the
target audience’s behavioral parameters.
3. Competitor-based positioning – This is a pretty straightforward approach that calls to prove
you are better than competitor X.
4. Benefit-based positioning – This calls for proving the benefits that customers will get from
purchasing your product or service.
5. Price-based positioning – This calls for distinguishing based on the value for the money people
get when purchasing your product/service.
6. Attribute-based positioning – Competitors, price, and benefits aside, this calls for zeroing in
on a unique selling proposition that makes your product or service stands out from the rest.
7. Prestige-based positioning – This calls for proving that your products supply a certain boost
in status to those who purchase.
7. Choose your marketing mix
The last and final step in this long and winding process is to actually implement your strategy. For
that, you will need to determine a marketing mix that will support your positioning and help you
reach the target audience(s) that you’ve chosen.
A marketing mix consists of the so-called 4 Ps: Product, Price, Place, and Promotion:
• Product takes into consideration factors like variety, quality, design, branding, features,
packaging, services, availability, convenience.
• Price takes into consideration factors like pricing strategy, list price, penetration price,
premium, discounting, payment methods, credit terms, payment period.
• Place takes into consideration factors like channels, coverage, location, inventory, logistics,
trade channels.
• Promotion takes into consideration factors like advertising, public relations, social media,
sponsorship, influencer marketing, content marketing, product placement, sales promotion.
A carefully-curated marketing mix will

ensure business success. However, if you
do leave gaps in it, all the precious work
you did at the previous stages might go to
waste.
Here’s an example to illustrate a poor

marketing mix: Let’s say you want to sell
a luxury skincare product to women in
their 40s.
Your goal is to position it as a high-end
addition to their skincare routine that
targets concerns related to mature and aging skin. So you invest in print marketing and get your
product featured in a couple of popular women’s magazines that skew towards the 30+ audience. You
also make sure to price the product accordingly so it indicates the luxury category.

However, your packaging is cheap and poorly designed, while the product itself is sold in drugstores.
This inconsistency, which isn’t aligned with the overall positioning strategy, will prevent you from
reaching your target audience in the first place; those who get reached will experience dissatisfaction
resulting in negative word-of-mouth, which will eventually make your sales slumber.
Conclusion
Using the STP process, businesses can identify their most valuable customer segments and create
products and marketing communications that target those customers. This helps you create engaging,
personalized marketing campaigns that convert visitors to customers at a high rate.
If you want to use clever segmentation and behavioral targeting methods in your eCommerce
marketing strategy, get in touch with Yieldify and we’ll be happy to help!
Key Takeaway
What is STP in marketing?
STP marketing (Segmentation, Targeting, and Positioning) is a three-step marketing framework.

With the STP process, you segment your market, target your customers, and position your offering to
each segment.
What is STP marketing example?
The most classic example of STP marketing is the Cola Wars of the 1980s. Both Pepsi and Coca-Cola
used STP marketing to increase their market shares after the introduction of New Coke.
Why is STP important in marketing?
STP marketing is important because it focuses on creating precise market segments and positioning
products and services to match their needs, wants, and expectations.
Glossary of Business Terms

Bargaining power - In negotiating, capacity of one party to dominate the other due to influence,
power, size, status, or through a combination of different persuasion tactics.
Competition - the rivalry between companies selling similar products and services with the goal of
achieving revenue, profit, and market share growth.
Market - a group of actual and potential buyers with similar needs and wants interacting with sellers
offering various products or services to satisfy those needs and wants
Market potential / potential market - what a whole market segment might buy under ideal conditions
Market segment - a fairly homogenous group of customers who will respond to marketing mix in a
similar way
Market segmentation - the process of dividing the total market into several groups seeking similar
benefits from a product or service and requiring separate marketing mixes
Market trends - changes and developments in buying and selling in the market
Product – the tangible offering of a firm that satisfies customer’s needs and wants
Strategic marketing – identification of one or more sustainable competitive advantages a firm has in
the markets it serves (or intends to serve), and allocation of resources to exploit them.
- is the process of recognizing the various leads a company has in the market it serves or seeks to
serve and allotting resources to exploit this leads.
3.5 BUYING BEHAVIOR AND DECISION MAKING OF INDIVIDUAL/HOUSEHOLD

CUSTOMER VERSUS THE BUSINESS CUSTOMER (ORGANIZATION)
Have you ever been in that situation where you can’t decide what to buy, when to buy, or if you’re
going to buy a particular product or service? Well, actually every consumers has been there.
Understanding the whys of this will help the business market their business better to the consumers.
You must remember that the goal of marketing is to help consumers make buying decisions without
remorse. In order to achieve this, the business must be able to understand their behavior to know the
best product or service to market or the best way to market existing product or services.
There are other factors affecting buyer behavior aside from what were discussed in the previous
module. Consumer markets, where organizations sell to end-users, and business markets, where
organizations sell to resellers or to support their own company’s operations, have similarities as well
as differences.
The way that we perceive, react, or are affected by products and services is a function of a hot of
factors. The following are factors that tend to affect consumer behavior:
Factors Affecting Buyer Behavior: Consumer Market
1. Cultural Factors
This refers to the general or overall culture of a group of people. For instance, there is a thing called
Filipino culture, but there are also distinct cultural behaviors within and among sub-cultures of the
Filipino culture.
a. Culture and Sub-Culture

• Muslims bury their deceased relatives within 2 days. Buddhists, on the other hand, do not
move the body of their deceased for 8 hours so that the spirit of the deceased can realize what
has happened. Both believe death is transition from one life to another.
• Chinese-Filipino, as a sub-culture, differentiates itself from the mainstream Filipino culture
when they avoid wearing the color black or all white during important celebrations, as these
colors are associated with mourning.
b. Social Class
• When boarding a plane, hierarchy is most evident with those in first class are asked to board
first, then the business class, then premium economy, with the economy class as last to board.
The hierarchy shows ranking of wealth, power, and prestige.
• Buying a real estate property is dependent on how the consumer perceives the quality of
their desired neighborhood and the status symbol that comes with a high-end development,
among others. The same is true for car purchase, which is directly related to self-image.
Conspicuous consumption of branded and expensive luxury products like bags and cars by the
noveau-riche is possible for consumers wanting to increase their social standing even while
the rich buys luxury products based on their discretionary income.
2. Social Factors (How people around us can influence buyer behavior)

This is all about the norms of behavior among even smaller groups, namely the social groups where a
consumer belongs to
a. Family, Reference Groups, Roles and Statuses
WHEN I CAN’T DECIDE WHICH PROGRAM IN COLLEGE TO TAKE
MY FAMILY AND FRIENDS:
3. Personal Factors (How personal circumstance can influence buyer behavior)

Aside from external social factors, the demographics of the individual also affect the manner by which
products and services are viewed and treated.
a. Age
• Some condominiums are located near schools and are designed to target students
• Newly married couples are a good market for home appliances.
b. Occupation
• EQ Dry Diapers are bought by working mothers who want a restful sleep at night since they
work during the day.
• Call Center employees working on night shifts have encouraged more restaurants to open
24 hours.
c. Economic Circumstance
d. Personality
• Actress Kris Aquino has a candid brand personality. She has been honest about her many
failed relationships and people love her transparency.
• Under Armour is a brand that exudes excitement, especially with basketball star Stephen
Curry as endorser.
• Casio watches has G-Shock shock-resistant watches and Pro Trek that has rugged persona
for people with active lifestyles.
• Charriol is a watch brand that projects sophistication.
e. Lifestyle
• With customers having healthier mindsets, crackers such as graham and breadsticks, with
relatively lesser calorie and cholesterol will continue to rise against salty snacks like potato
chips.
• Millennials are now saving and spending relatively more in travel than in clothes, this as part
of their activities, interests and opinions as can be seen in Facebook posts.
4. Psychological Factors
This is how an individual behaves and behavior is a very intimate thing. It is the result of how
we are raised, who we interact with, what our histories are, and much more.
a. Motivation
• After satisfying basic physiological and safety needs, single people start to satisfy their social
needs to belong. Within this group, some yuppies enroll in upscale graduate schools not just
to study but also to look for their potential spouse.
• Donations and helping others are example of satisfying a person’s self-actualization needs.
Among the Philippines’ top philanthropists helping Filipinos are rags-to-riches billionaires
SM’s Henry Sy, PNB’s Lucio Tan, JG Summit’s John Gokongwei, and Megaworld’s Andrew Tan.
b. Perception
• Netflix has a documentary called, “Forks Over Knives” showing research correlation of
high dairy consumption to high osteoporosis cases such as in the US and New Zealand. It also
showed that eating fruits and vegetables is not just a way to stay healthy but can even reverse
cancer and heart disease.
• Red wine has been experiencing increasing demand, as people perceive it to be good for the
heart as well as giving the drinker a sophisticated image.
c. Learning
• Made in Germany is a label connoting precision quality and reliable products.

• Universal Robina Corporation’s Agro Industrial Group launched a dog food line, and asked
educated dog owners not to change the dog food of puppies even if they already looked
bigger because their nutritional needs as puppies are different from older dogs.
d. Beliefs and Attitudes

• Some consumers think that installing chimes can bring good
luck to homes and offices. Businessmen like the number
8 so car plates numbers are being charged a premium of
P20,000-P30,000 if the numbers end in several 8 or when 168
(meaning: one road to prosperity) is requested.
• A diamond ring is a must in every engagement and wedding.
A Tiffany’s ring gives a prestige image as well.
factors Affecting Buyer Behavior: Business Market
1. Environmental Factors
Business buyers are influenced heavily by factors in the current and expected economic
environment, such as the level of primary demand, the economic outlook, and the cost of the money.
When economic uncertainty rises, business buyers cut back their new investment and attempt to
utilize their inventories. There are many other factors includes in environment factors, these are
economic development, supply conditions, technological changes, political and regulatory
developments, competitive development and culture and customs. These have impact on business
market directly or indirectly.
2. Organizational Factors
All buying organizations have their own objectives, policies, procedures, structures, and
systems. The business marketers must understand all these factors well because so many queries are
connected to these factors. Like how many people are involved in buying decisions? Who they are?
What are the evaluation criteria? What are the company’s policies and limitation for their buyers?
3. Interpersonal Factors
Usually buying center includes many participants, who influence each other. So, interpersonal
factors also influence the business buying process. Though, it is quite difficult to assess such
interpersonal factors and group dynamics. Managers do not wear labels that differentiate them as
important or unimportant buying participants, and powerful influencers are often buried behind the
scene. Interpersonal factors may include authority, status, empathy, and persuasiveness of
participants in business buying process.
4. Individual Factors
Individual has a vital role in business buying process. Each participant in the business buying-
decision process brings in personal motives, preferences, and perceptions. But these individual factors
are affected by personal characteristics of each person, such as, age, education, income, professional
identification, their job status, personality, and attitudes towards risk. All buyers have different buying
style.

So these are all the factors that influence business buyers. Marketers have to keep all these factors in
their mind while making marketing plans or products or services.
Here is a summary of the influences under each of the factors. (Business is similar to Organizational
factors)
The Buying Decision Process: Consumer Market

John Dewey introduced 5 stages which consumers go through when they are considering a purchase:
1. Problem or need recognition

This is the first stage of the Consumer Decision Process in which the consumer is able to recognize
what the problem or need is and subsequently, what product or
kind of product would be able to meet this need. It is oftentimes
recognized as the first and most crucial step in the process
because if consumers do not perceive a problem or need, they
generally will not move forward with considering a product
purchase.
A need can be triggered by internal or external stimuli. Internal

stimuli refers to a personal perception experienced by the
consumer, such as hunger, thirst, and so on. For example, an
elderly, single woman may feel lonely so she decides that she
wants to purchase a cat. External stimuli include outside
influences such as advertising or word-of-mouth. For example,
a consumer who just moved to Minnesota may not realize he needs a heavy winter coat until he sees
a store advertising for it, which triggers the need in his mind.
Making a Decision: When making a decision, a person first needs to identify and define the problem
or need recognition.

2. Information search
Information Search is a stage in the Consumer Decision Process during which a consumer searches for
internal or external information.
Information search is considered the second of five stages that comprise the Consumer Decision
Process. During this stage, a consumer who recognizes a specific problem or need will then likely be
persuaded to search for information, whether it be internally or externally. This is also when the
customer aims to seek the value in a prospective product or service. During this time, the options
available to the consumer are identified or further clarified.
Information search can be categorized as internal or external research:
Internal research refers to a consumer’s memory or recollection of a product, oftentimes triggered or

guided by personal experience. This is when a person tries to search their memory to see whether
they recall past experiences with a product, brand, or service. If the product is considered a staple or
something that is frequently purchased, internal information search may be enough to trigger a
purchase.
External research is conducted when a person has no prior knowledge about a product, which then
leads them to seek information from personal sources (e.g. word of mouth from friends/family )
and/or public sources (e.g. online forums, consumer reports) or marketer dominated sources (e.g.
sales persons, advertising) especially when a person’s previous experience is limited or deemed
inefficient.
• Examples of personal sources that are marketer dominated, include sales person advice in
a retail store.
• Personal sources that are not marketer dominated include advice from friends and family.
• Television advertising and company websites are examples of non-personal sources that are
marketer dominated
• Online forums are non-
personal sources that are non-
marketer dominated.
3. Evaluation of alternatives
During the evaluation of

alternatives stage, the
consumer evaluates all the
products available on a scale of
particular attributes.
Evaluation of alternatives is the third stage in the Consumer Buying Decision process. During this
stage, consumers evaluate all of their product and brand options on a scale of attributes which have
the ability to deliver the benefit that the customer is seeking. The brands and products that consumers
compare – their evoked set – represent the alternatives being considered by consumers during the
problem-solving process.
Sometimes known as a consideration set, the evoked set tends to be small relative to the total number
of options available. When a consumer commits significant time to the comparative process and
reviews price, warranties, terms and condition of sale and other features it is said that they are
involved in extended problem solving.
Unlike routine problem solving, extended or extensive problem solving comprises external research
and the evaluation of alternatives. Whereas, routine problem solving is low-involvement, inexpensive,
and has limited risk if purchased, extended problem solving justifies the additional effort with a high-
priced or scarce product, service, or benefit (e.g., the purchase of a car). Likewise, consumers use
extensive problem solving for infrequently purchased, expensive, high-risk, or new goods or services.
In order for a marketing organization to increase the likelihood that their brand is part of the evoked
set for many consumers, they need to understand what benefits consumers are seeking and
specifically, which attributes will be most influential to their decision-making process. It is important
to note that consumers evaluate alternatives in terms of the functional and psychological benefits
that they offer. The company also needs to check other brands of the customer’s consideration set to
prepare the right plan for its own brand.
During this stage, consumers can be

significantly influenced by their attitude as well
as the degree of involvement that they may
have with the product, brand, or overall
category. For example, if the customer
involvement is high, then he or she will
evaluate several brands, whereas if it’s low, he
or she may look at only one brand. In low
involvement buying, the activity is usually
frequent, habitual to a certain extent and there
is generally little difference between the
brands. No strong attachment exists between
the buyer and the brand. Promotions are
simple and repetitive. Conversely, high
involvement buying involves products with
many differences. The behavior is more complex and the research is more detail oriented.
Ultimately, consumers must be able to effectively assess the value of all the products or brands in
their evoked set before they can move on to the next step of the decision process.
4. Purchase
During the purchase decision stage, the consumer may form an intention to buy the most preferred
brand or product.

The purchase decision is the fourth stage in the consumer decision process and when the purchase
actually takes place. During this time, the consumer may form an intention to buy the most preferred
brand because he has evaluated all the alternatives and identified the value that it will bring him.
According to Philip Kotler, Keller, Koshy and Jha (2009), the final purchase decision, can be disrupted
by two factors:
1. Negative feedback of others and our level of motivation to comply or accept the feedback. For
example, after going through the need recognition, information search, and alternative evaluation
stages, one might choose to buy a Nikon D80 DSLR camera, but a close photographer friend might
share negative feedback, which could drastically influence personal preference.
2. The decision may be disrupted due to a situation that one did not anticipate, such as losing a job or
a retail store closing down.
During this stage, the consumer must decide the following:

• From whom they should buy, which is influenced by price point, terms of sale, and previous
experience with or awareness of the seller and the return policy.
• When to buy, which can be influenced by the store atmosphere or environment, time
pressures and constraints, the presence of a sale, and the shopping experience.
• This is also a time during the which the consumer might decide against making the purchase
decision. Alternatively, they may also decide that they want to make the purchase at some
point in the near or far future perhaps because the price point is above their means or simply
because they might feel more comfortable waiting.
5. Post-purchase behavior
Post-purchase behavior is when the customer assesses whether he is satisfied or dissatisfied with a
purchase.
Post-purchase behavior is the final stage in the consumer decision process when the customer
assesses whether he is satisfied or dissatisfied with a purchase. How the customer feels about a
purchase will significantly influence whether he will purchase the product again or consider other
products within the brand repertoire. A customer will also be able to influence the purchase decision
of others because he will likely feel compelled to share his feelings about the purchase.
Cognitive dissonance, another form of buyer’s remorse, is common at this stage. This is when the
customer may experience feelings of post-purchase psychological tension or anxiety. For example,
the customer might feel compelled to question whether he has made the right decision. They may
also be exposed to advertising for a competitive product or brand which could put into question the
product that they have chosen. A customer may also have a change of heart and decide that he no
longer has a need for this particular product.
The Buying Decision Process: Business Market
1. Awareness and Recognition

The process begins when a company identifies a need for a purchase. It may want to replace an
existing item, replenish stocks or buy a new product that is just available on the market. You can also
stimulate a need that the company may not be aware of by advising them of issues and challenges
that other companies in their industry face.
The buying team next works with the requesting department to firm up on the requirement. Your
sales team can provide advice and guidance at this stage by offering discussion papers or inviting
decision makers to workshops or seminars on the topic.
2. Specification and Research

When the buying team has agreed requirements, it prepares a detailed specification that sets out
quantities, performance and technical requirements for a product. Your sales team can support this
stage by advising the buying team on best practice or collaborating with the buying team to develop
the specification. Buying teams then use the specification to search for potential suppliers. They may
search the internet to find products or companies that provide a match to their specification, so it is
important that your website features keywords that match your customers’ product or service needs.
3. Request for Proposals

When the buying team has identified potential suppliers, it asks for detailed proposals from the
suppliers. The team may issue a formal document known as a request for proposal, or it may outline
requirements and invite potential suppliers to make a presentation or submit a quotation. If the
product or service has a precise specification, the buying team may simply ask for price quotations. If
the product is more complex, it may ask for proposals on how a supplier would meet the need.
4. Evaluation of Proposals
The buying team evaluates suppliers’ proposals against criteria such as price, performance and value
for money. As well as evaluating the product, they assess the supplier on factors such as corporate
reputation, financial stability, technical reputation and reliability. You can influence decisions at this
stage by providing company information, case studies and independent reports that review your
company and products.
5. Order and Review Process

Before the buying team places an order with the chosen supplier, they negotiate price, discount,
finance arrangements and payment terms, as well as confirming delivery dates and any other
contractual matters. When the order is complete and delivered, the buying team may add a further
stage by reviewing the performance of the product and the supplier. This stage may include
imposition of penalty charges if the product fails to meet the agreed specification.
Buying Roles
1. Users – The users will be the ones to use the product, initiate the purchase process, generate
purchase specs, and evaluate product performance after the purchase.
2. Influencers – The influencers are the tech personnel who help develop specs and evaluate alternate
products. They are important when products involve new and advanced technology.
3. Deciders – Deciders choose the products.
4. Buyers – Buyers select suppliers and negotiate the terms of purchase.

5. Gatekeepers – Gatekeepers are typically secretaries and tech personnel. They control the flow of
information to and among others within the buying center. Buyers who deal directly with a vendor
are gatekeepers.
Types of Buying Behavior

A consumer’s buying decision depends on the type of products that they need to buy. The behavior
of a consumer while buying a coffee is a lot different while buying a car.
Based on observations, it is clear that purchases that are more complex and expensive involve higher
deliberation and many more participants.
Consumer buying behavior is determined by the level of involvement that a consumer shows towards
a purchase decision. The amount of risk involved in a purchase also determines the buying behavior.
Higher priced goods tend to high higher risk, thereby seeking higher involvement in buying decisions.
1. Complex buying behavior

Complex buying behavior is encountered particularly when consumers are buying an expensive
product. In this infrequent transaction, consumers are highly involved in the purchase decision.
Consumers will research thoroughly before committing to invest.
Consumer behaves very different when buying an expensive product or a product that is unfamiliar
to him. When the risk of buying a product is very high, a consumer consults friends, family and experts
before making the decision.
For example, when a consumer is buying a car for the first time, it’s a big decision as it involves high
economic risk. There is a lot of thought on how it looks, how his friends and family will react, how will
his social status change after buying the car, and so on.
In complex buying behavior, the buyer will pass through a learning process. He will first develop beliefs
about the product, then attitudes, and then making a thoughtful purchase choice.
For complex buying behavior customers, marketers should have a deep understanding of the
products. It is expected that they help the consumer to understand about their product. It is important
to create advertising message in a way that influences the buyer’s beliefs and attitudes.

2. Dissonance-reducing buying behavior

In dissonance-reducing buying behavior consumer involvement is very high. This might be due to high
price and infrequent purchase. In addition, there is a low availability of choices with less significance
differences among brands. In this type, a consumer buys a product that is easily available.
Consumers will be forced to buy goods that do not have too many choices and therefore consumers
will be left with limited decision making. Based on the products available, time limitation or the
budget limitation, consumers buy certain products without a lot of research.
For example, a consumer who is looking for a new collapsible table that can be taken for a camping,
quickly decides on the product based on few brands available. The main criteria here will be the use
and the feature of the collapsible table and the budget available with him.
Marketers should run after-sale service camps that deliver focused messaging. These campaigns
should aim to support consumers and convince them to continue with their choice of their brand.
These marketing campaigns should focus on building repeat purchases and referrals by offering
discounts and incentives.
3. Habitual buying behavior

Habitual Buying Behavior is depicted when a consumer has low involvement in a purchase decision.
In this case the consumer is perceiving only a few significant differences between brands
When consumers are buying products that they use for their daily routine, they do not put a lot of
thought. They either buy their favorite brand or the one that they use regularly – or the one available
in the store or the one that costs the least.
For example, while a consumer buys a loaf of bread, he tends to buy the brand that he is familiar with
without actually putting a lot of research and time. Many products fit into this category. Everyday use
products, such as salt, sugar, biscuits, toilet paper, and black pepper all fit into this product category.
Consumer just go for it and buy it – there is no brand loyalty. Consumers do not research or need
information regarding purchase of such products.
Habitual buying behavior is influenced by radio, television and print media. Moreover, consumers are
buying based on brand familiarity. Hence marketers must use repetitive advertisements to build
brand familiarity. Further to initiate product trial, marketers should use tactics like price drop
promotions and sales promotions.
Marketers should attract consumers using visual symbols and imagery in their advertising. Consumers
can easily remember visual advertisements and can associate with a brand.
4. Variety seeking buying behavior
In variety seeking consumer behavior, consumer involvement is low. There are significant differences
between brands. Here consumers often do a lot of brand switching. The cost of switching products is
low, and hence consumers might want to try out new products just out of curiosity or boredom.

Consumers here, generally buy different products not because of dissatisfaction but mainly with an
urge to seek variety.
For example, a consumer likes to buy a cookie and choose a brand without putting much thought to
it. Next time, the same consumer might may choose a different brand out of a wish for a different
taste. Brand switching occurs often and without intention.
Brands have to adopt different strategies for such type of consumer behavior. The market leader will
persuade habitual buying behavior by influencing the shelf space. The shelf will display a large number
of related but different product versions.
Marketers avoid out-of-stock conditions, sponsor frequent advertising, offer lower prices, discounts,
deals, coupons and free samples to attract consumers.
Conclusion
Consumer buying decisions are depended on the consumer behavior. There are great differences in
the consumer behavior while buying a car versus buying chips. Marketers have to exercise careful
judgement in marketing products to different kinds of consumer behavior.

SELF - ASSESSMENT
A. Match the variables in column A with the method of segmentation in column B. Write the letter as
your answer in the space provided before the number.
COLUMN A COLUMN B
________1. Brand concept a. Demographic segmentation
________2. Income b. Geographic segmentation
________3. Culture c. Psychological segmentation
________4. Knowledge d. Behavioral segmentation
________5. Climate
________6. Social class
________7. Lifestyle
________8. Loyalty
________9. Family size
________10. Density
B. Watch and observe three products being advertised or promoted on television. Evaluate the
segmenting methods used by the producers of the particular products. Write your answers on the
table below.
Product brand name Method used for segmenting

Product 1 ______________________ ______________________________
Product 2 ______________________ ______________________________
Product 3 ______________________ ______________________________
C. Select the best answer by writing the letter on the space provided before each number.
_________1. It is the strategic marketing approach and process that is intended to define the specific
customer of the product.
a. Market identification c. Market size
b. Market segmentation d. Market growth
__________2. It is a strategy that can assist the entrepreneur in identifying the particular
homogenous segment to serve.
a. Market identification c. Market size
b. Market segmentation d. Market growth
__________3. Maria and Jose want to start their restaurant business focusing on grilled foods. Jose is
thinking of idea on limiting the market into their similarities in religion since certain religions prohibit
eating specific species. He wants to find the best strategy to satisfy their needs and wants. If you were
Maria, what would you recommend to Jose?

a. Demographic segmentation c. Behavioral segmentation

b. Geographic segmentation d. Psychological segmentation
__________ 4. A telephone company is providing unlimited call and text services throughout
Mindanao. The features of these services for consumers in Cotabato may be different from those for
consumers living in Cagayan de Oro. If you are the manager of the company, what segment method
will you choose to make sure that the services of your company will fit the needs of the respective
market?
___________5. Avon used segmentation by personality (and profession) in coming out with different
fragrances in the past. They classified women into five groups: energetic, romantic feminine,
experimental, elegant charming and fresh. What method did Avon used?

D. Write True if the statement is correct. Otherwise write False and state your reason briefly.
___________1. The entrepreneurial venture can serve all the requirements of the total market.
____________________________________________________________________
___________2. Market segmentation applies only to small entrepreneurial ventures.

____________________________________________________________________
___________3. In geographic segmentation, the total market may be divided based on the income of
the population.
____________________________________________________________________
___________4. Demographic segmentation involves dividing the total market based on the gender of
the customers.
____________________________________________________________________
___________5. When a wider geographical are has been selected as the target market, it will be
beneficial if the products are localized.
____________________________________________________________________
___________6. It is a must for the entrepreneur to segment the market.

____________________________________________________________________
___________7. All the information you need for your segment is publicly available.
____________________________________________________________________
___________8. Your potential market is your actual market.

____________________________________________________________________
___________9. The size and growth of a segment are considered favorable indicators for doing
business in that particular location.
____________________________________________________________________
___________10. After segmenting the market, the entrepreneur must conduct a proper an
d critical evaluation of every segment.
ESSAY: ILLUCIDATE THE FOLLOWING QUESTIONS BRIEFLY. WRITE YOUR ANSWER ON THE SPACES
PROVIDED:
1. HOW MICRO AND MACRO ENVIRONMENT DIFFER FROM EACH OTHER AND HOW ITS ELEMENTS
INFLUENCES TO MARKETING PLANNING?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
2.DESCRIBE THE CONSUMER ABD BUSINESS MARKEKTS. HOW THEY DIFFER FROM EACH OTHER?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
3. DEFINE MARKETING RESEARCH AND EXPLAIN ITS PROCESS.

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
4. DIFFERENTIATE THE BUYING BEHAVIOR FROM BUYING BEHAVIOR OF AN INDIVIDUAL AND THE
BUYING BEHAVIOR OF A BUSINESS CUSTOMER.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
a. REFERENCES:
b. Buckland, Tom (2018) What is Traditional Marketing at https://www.quora.com/What-is-
traditional-marketing
c. Rai, Sheetal (2018) What is traditional and modern marketing? (pros and cons)
d. https://www.marketing-schools.org/types-of-marketing/traditional-marketing.html
e. https://www.quora.com/What-is-traditional-and-modern-marketing
f. https://www.letslearnfinance.com/difference-traditional-marketing-modern-
marketing.html
g. Definition of Contemporary marketing http://blog.ubrik.com/types-of-marketing
h. https://www.slideshare.net/JohemieLopezQuinones/principles-of-marketing-for-grade-
12-students-77897248?from_action=save
i. https://www.scribd.com/document/360995860/Principles-of-Marketing-11-Edition
j. https://en.wikiversity.org/wiki/Principles_of_marketing#Creating_utility
k. https://www.lucidadvertising.com/blog/contemporary-approaches-to-marketing/
l. https://www.businessmanagementideas.com/marketing/scope-of-marketing-7-major-
scope-of-marketing/19727
m. https://www.yieldify.com/blog/stp-marketing-
model/#:~:text=STP%20marketing%20is%20an%20acronym,benefits%20to%20specific%20
customer%20segments.&text=In%20short%2C%20the%20more%20personalized,more%20
successful%20you%20will%20be.
n. http://www.differencebetween.net/business/difference-between-business-market-and-
consumer-market/https://en.wikipedia.org/wiki/Business_marketing
o. Go, J., & Escareal-Go, C. (2017). Principles and Practices in Marketing in the Philippine
Setting. 14 Ilang-Ilang St., New Manila, Quezon City, Philippines: Josiah and Carolina Go
Foundation.
p. Medina, R. (2008). Principles of Marketing. Manila Philippines: Rex Bookstore, Inc.
q. Ligaya, E. F., Jerusalem, V. L., Palencia, J. M., & Palencia, M. M. (2017). Principles of
Marketing. Sampaloc, Manila, Philippines: Fastbooks Educational Supply, Inc.
r. Ilano, A. B. (2019). Principles of Marketing. Manila Philippines: Rex Bookstore, Inc.
s. file:///C:/Users/User/Desktop/Recent%20Downloads/Coetzee_AJ_Chapter_3.pdf
t. https://www.vtexperts.com/major-influences-business-buyers/
u. https://courses.lumenlearning.com/boundless-marketing/chapter/the-consumer-
decision-process/
v. https://smallbusiness.chron.com/eight-stages-business-buying-decision-process-
21820.html
w. https://clootrack.com/knowledge_base/types-of-consumer-behavior/

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BUTUAN DOCTOR’S COLLEGE

JC Aquino Avenue, Butuan City 8600

Student’s Name: Teacher: MA. SABINA B. TEJAMO

Section: Date of Completion:

Strand: ABM 3 Lesson: 3 Week: 5 & 9

Subject: BUSINESS MARKETING Score: Teacher Signature:

The learners demonstrate an understanding of the importance of

Topic MARKET OPPORTUNITY ANALYSIS AND CONSUMER ANALYSIS

The learners shall be able to conduct marketing research, interpret

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LESSON 3.1 STATEGIC AND MARKETING PLANNING IN TERMS OF OBJECTIVES AND

What is Strategic Planning?

Strategic planning- is an organizational management activity

WHAT IS A STRATEGIC PLAN?

WHAT IS A MARKETING PLANNING?

4 Types Of Marketing Plans And Strategies

1. Market Penetration Strategy

When a firm focuses on selling its current products to

Increasing awareness through marketing communications and increasing availability through

2. Market Development Strategy

3. Product Development Strategy

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STRATEGIC MARKETING VS TACTICAL MARKEKTING

Tactics and strategy are often interchangeably

The strategy is the direction towards the goal.

Which one will grow your business? Strategic marketing.

1. Defining the Corporate vision

• stable: offers a long-term perspective and is unlikely to be impacted by market or technology

2. Defining the corporate mission

A mission is not simply a description of an organization by an external party, but an expression,

Good mission includes:

3. Define the objective

WHAT ARE OBJECTIVES?

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There are three basic types of objectives. They are:

3. Community-level outcome objectives.

Objectives should be S.M.A.R.T. + C.:

3.2Marketing Environment: Macro and Micro Marketing Environment

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According to Pride &Ferrell, “The marketing

To sum up, the marketing environment is a set

Let’s look at this chart that shows the micro

Macro Environment of Marketing

Elements of macro-environment of marketing are;

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g. Micro Marketing environment

It includes the company itself, its suppliers, marketing

5 components of the micro environment of

1. Internal Organizational Environment.

Internal Organizational Environment

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Differences between Macro and Micro Environment of Marketing

Point of difference Macro-environment Microenvironment

Meaning External environment of an organization. Inter environments of an organization.

Nature Very complex. Less complex to perceive.

It creates a huge impact on shaping marketing Remains comparatively independent are

Factors reveal the capabilities of an

How environmental factors affecting the consumer decision process?

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3.3THE MARKETING RESEARCH

Marketing research is the systematic gathering, recording, and analysis

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• Consumer marketing research, (B2C) and