OVERVIEW OF THE MODULE

Course Description:
The course deals with the principles and practices in marketing goods
and services. It also focuses on the development of integrated marketing
programs that will help grow businesses.

What this module is about:

This module will discuss the marketing functions and the different
marketing strategies. This will also tackle the importance of consumer
behavior and how it affects the marketing strategy as well as the life cycle of
the product and the new strategies in product development. Most importantly,
this module will help students how to make their own marketing plan for a
business.

The following lessons will be covered in this module:

Module 1: Marketing Functions

Lesson 1: Seven Functions of Marketing
Lesson 2: Promotional Mix
Lesson 3: Market Segmentation and Targeting
Module 2: Marketing Strategy
Lesson 1: Components of Marketing Strategies
Lesson 2: Purpose of Marketing Strategies
Module 3: Product Marketing
Lesson 1: New Product
Lesson 2: Product Life Cycle
Lesson 3: Branding
Module 4: Marketing Plan
Lesson 1: Elements of Marketing Plan
Lesson 2: Crafting a Marketing Plan
How to learn this module:
There are some pointers that you have to follow as you go over this
module. These pointers will help you achieve the objectives of this module
successfully.
• Do not forget to take the pre-test.
• Go through the pages one by one since the topics are related to
one another. If you miss one page, you may not understand the
succeeding pages.
• Perform the activities as instructed and be sure to finish them.
• If ideas are not clear, you can always go back to the pages where
they are discussed.
• At the end of the module, do not forget to take the posttest.

Course Learning Outcomes

1. Apply basic concepts that underline each of the functional areas of

business (marketing, finance, human resources management,
productions and operations management, information technology, and
strategic management) and employ these concepts in various business
situations.

2. Plan and implement business-related activities.

At the end of this course, the students should be able to:

1. Explain the functions of marketing;

2. Determine market segments and target customers;
3. Use marketing information and research to develop marketing
strategies for organizations;
4. Make product marketing decisions based on product life cycle and
product portfolio structure;
5. Develop a marketing plan.

Final Task

Create a Business plan incorporating the Marketing Plan following the

format given.
 MODULE 1
Marketing Functions

LESSON 1. Functions of Marketing

Introduction

Business marketing is a marketing practice of individuals or

organizations (including commercial businesses, governments and
institutions). It allows them to sell products or services to other companies or
organizations that resell them, use them in their products or services or use
them to support their works. It is a way to promote business and improve
profit too.

Business marketing is also known as industrial marketing or business-

to-business (B2B) marketing. Business-to-government marketing, while still
classified within the B2B discipline due to the sharing of dynamics, does differ
slightly.

Marketing is the study and management of exchange relationships. It

is the business process of identifying, anticipating and satisfying customers'
needs and wants. Because marketing is used to attract customers, it is one of
the primary components of business management and commerce. Marketers
can direct product to other businesses (B2B marketing) or directly to
consumers (B2C marketing).

Regardless of who is being marketed to, several factors, including the

perspective the marketers will use. These market orientations determine how
marketers will approach the planning stage of marketing. This leads into the
marketing mix, which outlines the specifics of the product and how it will be
sold. This can in turn be affected by the environment surrounding the product,
the results of marketing research and market research, and the characteristics
of the product's target market.

Once these factors are determined, marketers must then decide what
methods will be used to market the product. This decision is based on the
factors analyzed in the planning stage as well as where the product is in the
product life cycle.

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Objectives: after going through the module you will be able to

1. explain the functions of marketing;

2. determine market segments and target customers.

Discussion

The Significance of Marketing

Most people barely grasp the essence of marketing. Everyone has

heard this word, but if you ask what it is, every second man keeps silent,
because he does not find an answer to this question. Marketing can be
compared to art. And if you understand all specific of this art, you will
understand how it works and takes possession of skills of successful
business.

SEVEN FUNCTIONS OF MARKETING

Distribution

If talking shortly this is how you plan to distribute your products. You
have to understand all the advantages and disadvantages of your company,
in order to know how it is more profitable to distribute your products.

For example:

A new company that produces handmade items, to create a reputation,

will choose a well-known store, in order to earn the trust of customers. As
soon as clothes were distributed to a popular boutique, the brand is gaining
popularity. After the company has recommended itself, it is possible to switch
to the Internet and expand in this direction. Thus, the company will no longer
depend on another brand and will open new opportunities for itself.

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Product/Service Management

Product management is
the planning of the assortment
at all stages of their production.
The goal of product
management is to create a
balanced volume of products in
terms of maximizing sales in
the longest term.

Promotion

This is one of the most important functions of marketing. The goal of

promotion is to increase demand and increase brand awareness. Promotion
should be seen as an integral part of the marketing complex. Have you
noticed that the opening of a new supermarket or store is always
accompanied by substantial discounts and promotions? This technique called
as an advertising tactic.

For example:

A new store can offer one product for free, with the purchase of two
identical products. "2+1=1". Or the supermarket can offer a discount on the
goods during the first days after the opening. These are effective advertising
strategies that attract customers.

Price

This is one of the most difficult aspects of marketing. Fixing the price of
a product requires extensive market research, since this can lead to large
losses of the firm.

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Prices are constantly changing. The growth and fall in prices is directly
related to the economy of the country and the growth in demand for the
product.

For example:

Let’s consider a business that sells seasonal vegetables. If the firm is

the only one that sells this kind of goods in this territory, then it can afford to
set the price above the market prices. In this case, the buyer will have
nowhere to go and he will buy this vegetables.

Selling

The sale depends on how much your product is preferable to people.

For example:

You can sell your products directly or indirectly. If you have a store
where you sell your own products, you can personally make sure that you
have staff that will help customers. If this is an online sale, then you need to
have explanatory brochures for each of the products.

Financing

The basis for the emergence of business is a good investment. The

company must have sufficient financial resources to advertise their product.
As soon as the product begins to gain popularity, the company should spend
more to make its product easily accessible.

For example:

If the company is based on online advertising, the marketing tools will

be limited to creating a website to launch its product, etc.

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Marketing Functions

Marketing Information Management

This function includes understanding your target audience, which

involves understanding the interests of customers, and their needs.

For example:

Carrying out customer surveys is one of the most effective ways to

understand what your customers think of your company. The company can
send a part of its promo-personnel to shopping centers and other stores to
interview customers. This information is analyze and helps to develop more
efficient business models.

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Marketing Functions

EXERCISE 1

MATCHING TYPE: Match the statement from column B with the correct description
in column A. write only the letter on the space provided

A B

____ 1. Financing a. deciding how to get goods in customer’s hand

____ 2. Selling b. information on trends and competing products

____ 3. Promotion c. improving a product

____ 4. Distribution d. money necessary to run the business

____ 5. Pricing e. effort to inform and persuade customers

____6. Marketing Information management f. b2b marketing of goods

____7. Product Service Management g. how much to charge for the goods

EXERCISE 2

1. Explain the importance of knowing the seven functions of marketing.

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

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LESSON 2. Promotional Marketing Mix

Introduction

In the broad sense, promotion consists of coordinated seller-initiated

efforts to establish channels of information and persuasion to foster the sale
of goods or services or the acceptance of ideas or points of view.

It is an element in an organization mix that is used to inform and

persuade the market regarding the organization’s products and services.

Elements of Promotional Mix

Most widely used methods of promotion are personal selling and

advertising. Other methods are sales promotion, publicity, and public
relations.

1. Personal selling is an activity of information and persuading a market

on a person basis to buy the merchandise offered for sale.

2. Advertising involves any paid non-personal communication of

information about goods, services, ideas or institutions through any of the
media of mass communication with intent to sell or secure favorable
consideration. Advertising shall also mean any paid form of non-personal
presentation and promotion of ideas, goods or services by an identified
sponsor.

3. Sales promotion refers to those sales activities which supplement

both personal selling and advertising, coordinate them and help make them
more effective. It includes techniques intended for broad consumer
participation which contain promises of gain such as prizes, in cash or in kind,
as reward for the purchase of a product, security, service or winning in a
contest, game, tournament and other similar competitions which utilize mass
media or other widespread means of information. It shall also mean
technique purely intended to increase the sales, patronage and or goodwill of
a product.

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4. Publicity is the dissemination of news and information about a

person, product, service, idea or institution through mass media in order to
create impressions to the public. It uses mass media without openly paying
for them.

5. Public relations refer to the activities of an organization, person or

institution directed toward one or more groups of people, such as employees,
consumers, dealers and stockholders, for the purpose of creating goodwill
and an understanding of its policies.

Personal Selling

This is the oldest and most important method of promotion. It is

unique, hard to replace force in modern marketing because it
makes possible two-way communication of ideas between a
seller and a buyer. It is the only form of sales promotion that
can encourage and make immediate, on-the-post use
of response from buyers.

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Advertising

Advertising is a form of communication. It pays for the use of

the communication media. It is non-personal, unlike personal
selling. It communicates facts and information, not the actual
goods, services, ideas or institutions. It is openly persuasive
and convincing, in order to sell or secure favorable
consideration.

Types of Advertising

1. Product and institutional advertising.

2. Primary and selective demand advertising

3. Cooperative advertising

Promotion

Sales promotion as a tool in marketing gives rise to increase in

product usage as well as expansion of markets for a product or
introduction of new product.

Sales Promotion Devices

1. Samples 2. Coupons 3. Price-off Promotion

4. Premiums 5. Consumer contests 6.Trading stamps

7. Retailer coupons 8. Retailer display 9. Demonstrations

10. Deals 11. Display

Publicity

Publicity is any promotional communication about an

organization and/or its products where the message is not paid
for by the organization benefiting from it. As contrasted from
advertising which is paid form, publicity is non-paid. Similarity of

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both is the use of mass media. Publicity can be a promotional

information or “plugging” for a product or service by a
personality in an interview or a person in his speech. It can also
be a non-personal news story appearing in mass media.

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EXERCISE 1
Identification – Read and analyze carefully each of the statement/s and put
your answers on the space provided.

_________________ 1. This involves any paid non-personal communication

of information about goods, services, ideas or institutions through any of the
media of mass communication with intent to sell.

_________________ 2. In personal selling, the sales person must be

prepared and have a full knowledge about the product, the market,
competition and techniques of selling.

_________________ 3. This is done by outlining a profile of prospects,

developing list of potential buyers.
_________________ 4. Refers to those sales activities which supplement
both personal selling and advertising. This involves techniques for broad
consumer participation which contain promises of gain such as prizes, in cash
or in kind as a reward for purchase of a product, security, service or winning in
a contest, game and other similar competitions.
_________________ 5. It is an activity of informing and persuading a market
on a person to person basis to buy the merchandise offered for sale.

EXERCISE 2: Identify two (2) choices or items of products and fill-in the
blanks on the table.

Product name

Product Description
1.
Advertising medium 2.
3.

Sales Promotion 1.
Strategies/Techniques/Devices 2.
3.

Direct Marketing Techniques

1.
2.
3.

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Exercise 3

Make a list of all the sales promotion devices that you observed in each
store listed below. Analyze which of these devices do you think is effective.
Search in the web for the definitions of the listed promotion devices
mentioned earlier.

1. Supermarket:
a. _____________________
b. _____________________
2. Department Store:
a. _____________________
b. _____________________
3. Drugstore:
a. _____________________
b. _____________________
4. Specialty store:
a. _____________________
b. _____________________

Exercise 4

List down the difference between public relations and publicity.

Public Relations Publicity

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Marketing Functions

LESSON 3. Marketing Segmentation and Targeting

SEGMENTING AND TARGETING

In marketing, segmenting, targeting

and positioning (STP) is a broad
framework that summarizes and
simplifies the process of market
segmentation. Market segmentation is
a process, in which groups of buyers
within a market are divided and
profiled according to a range of
variables, which determine the market
characteristics and tendencies. The
processes of segmentation, targeting
and positioning are parts of a
chronological order for market
segmentation.

• Segmentation comprises identifying the market to be segmented;

identification, selection, and application of bases to be used in that
segmentation; and development of profiles.
• Targeting is the process of identifying the most attractive segments from
the segmentation stage, usually the ones most profitable for the business.
• Positioning is the final process, and is the more business-orientated stage,
where the business must assess its competitive advantage and position
itself in the consumer's minds to be the more attractive option in these
categories.

Segmenting a market has widely been debated over the years as

researchers have argued over what variables to consider when dividing the
market. Approaches through social, economic and individual factors, such as
brand loyalty, have been considered along with the more widely recognized
geographic, psychographics, demographic and behavioral variables proposed

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by Philip Kotler. Segmenting a market therefore, is a process of organizing the

market into groups that a business can gain a competitive advantage in. They
must, however, avoid over-fragmenting the market as the diversity can make
it difficult to profitably serve the smaller markets. [5] The characteristics
marketers are looking for are measurability, accessibility, sustainability and
actionability.

• Measurability – The understanding of size, purchasing characteristics and

value needs of a particular segment

• Accessibility – The ability to communicate with the segment in an effective

manner

• Sustainability – The segment is profitable enough to differentiate itself

from other segments in the market and maintains the value the business
offers.

• Actionability – The capability of an organization to create a competitive

advantage with its offering in the specific segment of the market.

There are two approaches to segmenting a market – a discovery

approach or an analytic approach. Each approach is appropriate to the type of
business and market they are approaching.

An analytic approach is a much more research and data based

approach, where two sets of information are derived and used to segment the
market. The two approaches give the business an idea for the future
profitability of a segment, and the tendencies and behaviors it portrays. The
first approach gives them an idea on the future growth of the segment, and
whether its investment outcome is worthwhile. This, therefore, will usually be
done in advance. The second approach is more based around the
observation of the buying behaviors of the segment and is more based around
primary research.

The discovery approach is more suited to a market with a limited

customer base, and the process of discovering segments is based on interest
in the offer or a similar offer the business may be able to provide. Because of

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this, a discovery-based approach is a much timelier process by which to

determine the profitable segments. Both approaches can benefit from
elements of the other and, in most situations, work well in unison with each
other when determining a profitable and defined segment.

TARGETING is a follow on process from segmentation, and is the

process of actually determining the select markets and planning the
advertising media used to make the segment appealing. Targeting is a
changing environment. Traditional targeting practices of advertising through
print and other media sources, has made way for a social media presence,
leading a much more 'web-connected' focus. Behavioral targeting is a product
of this change, and focuses on the optimization of online advertising and data
collection to send a message to potential segments. This process is based
around the collection of 'cookies', small pieces of information collected by a
consumer's browser and sold to businesses to identify potential segments to
appeal to. For example, someone consistently accessing photography based
searches is likely to have advertisements for camera sales appear, due to the
cookie information they deliver showing an interest in this area. Whilst
targeting a
market, there are
three different
market coverage
choices to
consider –
undifferentiated,
differentiated and
niche
marketing. Choos
ing which
targeting choice
to pursue
depends on the product or service being offered. Undifferentiated marketing is
the best option to focus on the market as a whole and to promote products

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that have a wide target segment, whilst differentiated and niche marketing are
more specialized and focus on smaller, more selective segments.

POSITIONING is the final stage in the 'STP' process and focuses on how the
customer ultimately views your product or service in comparison to your
competitors and is important in gaining a competitive advantage in the
market. Therefore, customer perceptions have a huge impact on the brands
positioning in the market. There are three types of positioning that are key in
positioning the brand to a competitive advantage; these are functional
positioning, symbolic positioning, and experiential positioning. Functional
Positioning is focused on the aspects of the products or services that can fulfill
consumers' needs or desires. Symbolic Positioning is based on the
characteristics of the brand that fulfill customers' self-esteem. Experiential
positioning is based around the characteristics of the brands that stimulate the
sensory or emotional connection with the customers. A combination of the
three is key to positioning the brand at a competitive advantage to its
immediate competition. Overall, positioning should provide better value than
competitors and communicate this differentiation in an effective way to the
consumer.

Positioning (marketing)

Positioning refers to the place that a brand occupies in the minds of

the customers and how it is distinguished from the products of the
competitors. In order to position products or brands, companies may
emphasize the distinguishing features of their brand (what it is, what it does
and how, etc.) or they may try to create a suitable image (inexpensive or
premium, utilitarian or luxurious, entry-level or high-end, etc.) through
the marketing mix. Once a brand has achieved a strong position, it can
become difficult to reposition it.

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 MODULE 1
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Positioning is one of the most powerful marketing concepts. Originally,

positioning focused on the product and with Ries and Trout grew to include
building a product's reputation and ranking among competitor's products.
Schaefer and Kuehlwein extend the concept beyond material and rational
aspects to include 'meaning' carried by a brand's mission or myth. Primarily,
positioning is about "the place a brand occupies in the mind of its target
audience". Positioning is now a regular marketing activity or strategy. A
national positioning
strategy can often be used,
or modified slightly, as a
tool to accommodate
entering into foreign
markets.

The origins of the

positioning concept are
unclear. Scholars suggest
that it may have emerged
from the burgeoning
advertising industry in the
period following World War
I, only to be codified and popularized in the 1950s and 60s. The positioning
concept became very influential and continues to evolve in ways that ensure it
remains current and relevant to practicing marketers.

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EXERCISE 1
Market Segmentation: The following are domestic products in the Philippines,
identify the segments or variety of each given product.

1. San Miguel Corporation/Product: Beer

a. _______________

b. ______________
c. _______________

2. Colgate Toothpaste
a. ______________
b. ______________

c. ______________

3. Coca-cola Company /Softdrinks

a. _________________
b. _________________
c. _________________

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Feedback

1. What are the things that captures your attention in module 1?

___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________

2. How are these things becomes beneficial to you?

___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________

Summary

This module discussed the seven functions of marketing namely distribution,

pricing selling, promotion, financing, marketing information management and product
service management. Knowing the seven functions of marketing is important
because marketing is like art. And if you understand all specific of this art, you
will understand how it works and takes possession of skills of successful
business.

Promotion of a product is one of the key in the success of a business

hence; using the different kinds of promotion is beneficial to one’s business.
The elements of promotional mix include personal selling, advertising, Sales
promotion, Publicity and Public relations. The processes of segmentation,
targeting and positioning are parts of a chronological order for market
segmentation. Segmentation comprises identifying the market to be

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segmented; identification, selection, and application of bases to be used in

that segmentation; and development of profiles. Targeting is the process of
identifying the most attractive segments from the segmentation stage, usually
the ones most profitable for the business. Positioning is the final process, and
is the more business-orientated stage, where the business must assess its
competitive advantage and position itself in the consumer's minds to
be the more attractive option in these categories.

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Marketing Strategy

LESSON 2. Components of Marketing Strategies

MARKETING STRATEGY
Marketing strategy is a long-term, forward-looking approach and an
overall game plan of any organization or any business with the fundamental
goal of achieving a sustainable competitive advantage by understanding the
needs and want of customers.

Scholars like Philip Kotler continue to debate the precise meaning of

marketing strategy. Consequently, the literature offers many different
definitions. On close examination, however, these definitions appear to center
around the notion that strategy refers to a broad statement of what is to be
achieved.

Strategic planning
involves an analysis of
the company's strategic
initial situation prior to
the formulation,
evaluation and selection
of market-
oriented competitive
position that contributes
to the company's goals
and marketing
objectives

Strategic marketing, as a distinct field of study emerged in the 1971s,

and built on strategic management that preceded it. Marketing strategy
highlights the role of marketing as a link between the organization and its
customers.

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Marketing Strategy

Four fundamentals of marketing strategy?

The marketing mix is a crucial tool to help understand what the

product or service can offer and how to plan for a successful product offering.
The marketing mix is most commonly executed through the 4 P's
of marketing: Price, Product, Promotion, and Place. Carefully considering the
marketing mix will enable a business to understand how it can differentiate its
product or service and thus build a marketing strategy to drive sales.

A marketing mix is a foundational tool used to guide decision making

in marketing. The marketing mix represents the basic tools that marketers can
use to bring their products or services to the market. They are the foundation
of managerial marketing and the marketing plan typically devotes a section to
the marketing mix.

The 4Ps
The traditional marketing mix refers to four broad levels of marketing decision,
namely: product, price, promotion, and place

Product
The product aspects of marketing deal with the specifications of the
actual goods or services, and how it relates to the end-user's needs
and wants. The product element consists of product design, new
product innovation, branding, packaging, labeling. The scope of a
product generally includes supporting elements such as warranties,
guarantees, and support. Branding, a key aspect of the product
management, refers to the various methods of communicating a brand
identity for the product, brand, or company.

Pricing
This refers to the process of setting a price for a product, including
discounts. The price need not be monetary; it can simply be what is
exchanged for the product or services, e.g. time, energy, or attention or
any sacrifices consumers make in order to acquire a product or
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 MODULE 2
Marketing Strategy

service. The price is the cost that a consumer pays for a product—
monetary or not. Methods of setting prices are in the domain of pricing
science.

Place (or distribution)

This refers to how the product gets to the customer; the distribution
channels and intermediaries such as wholesalers and retailers who
enable customers to access products or services in a convenient
manner. This third P has also sometimes been
called Place or Placement, referring to the channel by which a product
or service is sold (e.g. online vs. retail), which geographic region or
industry, to which segment (young adults, families, business people),
etc. also referring to how the environment in which the product is sold
in can affect sales.

Promotion
This includes all aspects of marketing
communications; advertising, sales promotion, including promotional
education, public relations, personal selling, product
placement, branded entertainment, event marketing, trade shows
and exhibitions. This fourth P is focused on providing a message to get
a response from consumers. The message is designed to persuade or
tell a story to create awareness.

PURPOSE OF MARKETING STRATGIES

Marketing strategy is the comprehensive plan formulated particularly

for achieving the marketing objectives. It provides a blue print for attaining
these marketing objectives. It is the building blocks of a marketing plan. A
marketing strategy helps an organization to concentrate its scarce resources
on the best possible opportunities so as to increase the sales.

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Marketing Strategy

A marketing strategy is designed by:

1. Choosing the target market:

By target market we mean to whom the
organization wants to sell its products. Not all the
market segments are fruitful to an organization.
There are certain market segments which
guarantee quick profits, there are certain segments
which maybe having great potential but there may
be high barriers to entry. A careful choice has to
be made by the organization. An in-depth
marketing research has to be done of the traits of
the buyers and the particular needs of the buyers
in the target market.

2. Gathering the marketing mix

By marketing mix we mean how the organization
proposes to sell its products. The organization has
to gather the four P’s of marketing in appropriate
combination. Gathering the marketing mix is a
crucial [art of marketing task. Various decisions
has to be made such as:

• What is the most appropriate mix of the four P’s

in a given situation
• What distribution channels are available and
which one should be used
• What developmental strategy should be used in
the target market
• How should the price structure be designed?

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 MODULE 2
Marketing Strategy

Importance of Marketing Strategy

• Marketing strategy provides an organization an edge over it’s

competitors.
• Strategy helps in developing goods and services with best profit
making potential.
• Marketing strategy helps in discovering the areas affected by
organizational growth and thereby helps in creating an
organizational plan to cater to customer needs.
• It helps in fixing the right price for organization’s goods and services
based on information collected by market research.
• Strategy ensures effective departmental coordination.
• It helps an organization to make optimum utilization of its resources
so as to provide a sales message to its target market.
• A marketing strategy helps to fix the advertising budget in advance,
and it also develops a method which determines the scope of the
plan for example it determines the revenue generated by the
advertising plan.

There are three primary purposes of marketing.

1. Capturing the attention of your target market.

2. Persuading a consumer to purchase your product
3. Providing the customer with a specific, low-risk action that is easy to
take.

SWOT Analysis for Smart Marketing Strategy

A key component to marketing and strategic planning is conducting a

SWOT analysis. SWOT is the acronym for analyzing Strengths,
Weaknesses, Opportunities, and Threats, and is an effective tool for
developing an overall marketing strategy, or for planning individual
campaigns.

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 MODULE 2
Marketing Strategy

A SWOT analysis helps you understand internal and external factors

that can make or break your success toward your marketing goal. The SWOT
analysis process is a brainstorming technique.

SWOT analysis is a simple but useful tool that marketers can use to
better understand the business environment. Through findings made in
SWOT, a business can effectively penetrate the market place and quickly
capitalize on opportunities.

Creating Marketing SWOT Analysis

Step 1. Strengths

What does the company/product do better than (or at least equivalent

to) the competition. This could be:

• Specific product attribute advantage

• Brand perceived value
• Customer service of company.

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 MODULE 2
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Step 2. Weaknesses

What does the company/product do that is not good as the

competition? How is this going to affect your customer’s sales?

Thought needs to be given to how you can compensate for or

overcome these issues. What is the cost of overcoming these issues?

Is it necessary to overcome the issues or are they something you can

accept and deal with?

Step 3. Opportunities

What area of the market could you enter with some modifications to the
product/service or company? The main elements here could include:

• Change size, shape and color

• Additional services
• New packaging
• Different distribution points
• New promotional focus

Step 4. Threats

What action could threaten the product or standing in the3 market?

• New competitor entry

• Major product failure
• Reduction in promotional spend
• Customer changes
• Changes in the market

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Marketing Strategy

EXAMPLE OF SWOT ANALYSIS

To help you get a better sense of what a SWOT example actually looks
like, we are going to look at UPer Crust Pies, a specialty meat and fruit pie
café in Michigan’s Upper Peninsula. They sell hot, ready-to-go-pies and
frozen take-home options, as well as an assortment of fresh salads and
beverages.

The company is planning to open its first location in downtown

Yubetchatown and is very focused on developing a business model that will
make it easy to expand quickly and that opens up the possibility of
franchising. Here’s what their SWOT analysis might look like:

SWOT ANALYSIS for UPer Crust Pies

Strengths Weaknesses
Location: Our first location downtown Lack of capital: all startup funds will
will draw in visitors and downtown come from loans and investor.
shoppers
Lack of Reputation: We haven’t
Uniqueness: We stand out as a established ourselves as reputable
unique alternative to fast food and we meat pie provider yet.
offer consistently high-quality food in
a distinctive atmosphere.

Strong Management: We have

assembled a team that embraces
different disciplines with expertise in
all areas of the business.
Opportunities
Area growth: Yuubtchatown is
growing by 8.5% annually.
Working families with children:
This is a growing population, both in
numbers and in their choice of
convenient foods. Two income
families have less time to prepare a
meal.
Threats
Competitors: one competitor sells
similar pies, and has loyal customers
as well as a relationship with
businesses that regularly buy from
them.
Being unprepared for opening
numbers: Initial poor service or
product quality could discourage
customers from returning.

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 MODULE 2
Marketing Strategy

With your SWOT analysis complete, you’re ready to convert it into real
strategy. After all, the exercise is about producing a strategy that you can
work on during the next few months.

The first step is to look at your straights and figure out how you can use
those straights to take advantage of your opportunities. Then look at how
your strengths can combat the threats that are in the market. Use this
analysis to produce a list of actions that you can take. Analyze how external
opportunities might help you combat your own internal weaknesses. Minimize
the weaknesses so you can avoid the threats.

Based on the SWOT Analysis, here are the potential strategies for
growth to help you through how to translate your SWOT into actionable goals.

UPer Crust Pies: Potential Strategies for growth

1. Investigate investor: UPer Crust Pies might investigate its

options for obtaining capital.

2. Create a Marketing Plan: Because UPer Crust Pies wants to execute

a specific marketing strategy – targeting
working families by emphasizing that their
dinner option is both healthy and convenient
– the company should develop a marketing
plan.

3. Plan a grand opening: A key piece of that marketing plan will be

the store’s grand opening, and the
promotional strategies necessary to get
UPer Crust Pies target market in the door.

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 MODULE 2
Marketing Strategy

EXERCISE 1

Create a SWOT Analysis of a potential business you may open. and

base on the SWOT Analysis, list potential strategies for growth to help you
through how to translate your SWOT into actionable goals.

STRENGHTS WEAKNESSES

OPPORTUNITIES THREATHS

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 MODULE 2
Marketing Strategy

Feedback

1. Based on the given facts, why is it important to know the

benefits of marketing strategy?
________________________________________________
________________________________________________
________________________________________________

Summary

Marketing strategy is a long-term, forward-looking approach and an

overall game plan of any organization or any business with the fundamental
goal of achieving a sustainable competitive advantage by understanding the
needs and want of customers.
A marketing mix is a foundational tool used to guide decision making in
marketing. The marketing mix represents the basic tools that marketers can use to
bring their products or services to the market.

The traditional marketing mix refers to four broad levels of marketing

decision, namely: product, price, promotion, and place

SWOT analysis is a simple but useful tool that marketers can use to
better understand the business environment. Through findings made in
SWOT, a business can effectively penetrate the market place and quickly
capitalize on opportunities.

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 MIDTERM EXAM
Business Marketing

Name: _______________________________ Score: _________________

Multiple Choice: Write the letter of the correct answer before every number.

1. A process, in which groups of buyers within a market are divided and

profiled according to a range of variables, which determine the market
characteristics and tendencies.
a. Positioning c. Targeting
b. Segmentation d. Promotion
2. The process of identifying the most attractive segments from the
segmentation stage, usually the ones most profitable for the business.
a. Promotion c. Targeting
b. Segmentation d. Positioning
3. Focuses on how the customer ultimately views your product or service
in comparison to your competitors and is important in gaining a
competitive advantage in the market.
a. Positioning c. Targeting
b. Segmentation d. Promotion
4. The study and management of exchange relationships.
a. Business c. Marketing
b. Business Marketing d. Principles of Marketing
5. The planning of the assortment at all stages of their production.
a. Planning stage c. Product management
b. Product promotion d. Distribution
6. A new company that produces handmade items, to create a reputation,
will choose a well-known store, in order to earn the trust of customers.
a. Financing c. Pricing
b. Promotion d. Distribution
7. Involves any paid non-personal communication of information about
goods, services, ideas or institutions through any of the media of mass
communication with intent to sell or secure favorable consideration.
a. Personal selling c. Promotion
b. Advertising d. Publicity
8. This is the oldest and most important method of promotion. It is unique,
hard to replace force in modern marketing because it makes possible
two-way communication of ideas between a seller and a buyer.
a. Personal selling c. Public relations
b. Publicity d. Sales Promotion
9. A foundational tool used to guide decision making in marketing.
a. Marketing Strategy c. Promotional Mix
b. Business Plan d. Marketing Plan
10. Bundle of utility which the buyer received as the result of an lease or
purchase.
a. Product c. Commodities
b. Services d. Amenities
11. This is a stage wherein a certain product reaches market saturation,
sales are at its peak and majority of the target market are already users
of the product.
a. Growth stage c. Maturity stage
b. Introduction stage d. decline stage
12. Products at this stage were most likely to have been shaken-out by its
strong competitors.
a. Growth stage c. Maturity stage
b. Introduction stage d. decline stage
13. A brand that is associated with an abstract concept, like breast cancer
awareness or environmentalism, rather than a specific product, service,
or business
a. Concept brand c. Commodity brand
b. Equity Brand d. Brand Name
14. A set of individual components, such as a name, a design, a set of
images, a slogan, a vision, a design, writing style, a particular font or a
symbol etc. which sets the brand aside from others.
a. Concept brand c. Identity
b. Brand Identity d. Brand Name
15. Refers to the set of human personality traits that are both applicable to
and relevant for brands.
a. Brand Identity c. Brand Personality
b. Brand Concept d. Brand Recognition
16. One of the initial phases of brand awareness and validates whether or
not a customer remembers being pre-exposed to the brand.
a. Brand Identity c. Brand Personality
b. Brand Concept d. Brand Recognition
17. Real need and no substitute can be available. Products where a
company pioneered in the concept and others may just follow.
a. Imitative Products c. Replacement Product
b. Innovative Product d. New Product
18. These products when introduced may phase-out the old product
concept.
a. Imitative Products c. Replacement Product
b. Innovative Product d. New Product
19. A segmenting approach where two sets of information are derived and
used to segment the market.
a. Analytic approach c. Discovery approach
b. Critical approach d. Targeting approach
20. The process of actually determining the select markets and planning the
advertising media used to make the segment appealing.
a. Positioning c. Segmentation
b. Targeting d. c and b
21. Focuses on how the customer ultimately views your product or service
in comparison to your competitors and is important in gaining a
competitive advantage in the market.
a. Positioning c. Segmentation
b. Targeting d. a and b
22. What are the two classification of product?
a. Durable and non-durable c. Tangible and non-tangible
b. Marketable and non-marketable d. Measurable and non-
measurable
23. The following are the four levels of brand identity except:
a. Values c. Attributes
b. Benefits d. Profile
24. The measurable totality of a brand's worth and is validated by observing
the effectiveness of these branding components.
a. Brand Equity c. Brand image
b. Brand Identity d. Brand Personality
25. A set of individual components, such as a name, a design, a set of
images, a slogan, a vision, a design, writing style, a particular font or a
symbol etc. which sets the brand aside from others.
a. Brand Equity c. Brand image
b. Brand Identity d. Brand Personality
26. Customers' ability to recall and/or recognize brands, logos, and branded
advertising. Brands help customers to understand which brands or
products belong to which product or service category.
a. Brand Equity c. Brand recognition
b. Brand Awareness d. Brand Attribute
27. A name, term, design, symbol or any other feature that identifies one
seller's good or service as distinct from those of other sellers.
a. Trademark c. Brand
b. Identity d. Icon
28. A simple but useful tool that marketers can use to better understand
the business environment.
a. Marketing plan c. SWOT analysis
b. Marketing Strategy d. Marketing Analysis
29. Ability of the customer retrieving the brand correctly from memory
a. Brand recall c. Brand recognition
b. Brand identity d. Brand equity
30. This strategy is key to generating profits; it will decide the success or
failure of your products or services.
a. Marketing Objectives c. Budgeting
b. Situation Analysis d. Pricing Strategy
31. Briefly list and describe all relevant components, the full picture of the
marketing plan.
a. Overview c. Executive Summary
b. Marketing Plan d. Mission Statement
32. It includes the industries that you sell your product or service to. The
foundation for any marketing activities.
a. Buyer c. Distribution channel
b. Target Market d. Distribution market
33. Consider all costs of your distribution and promotional plans in _____
a. Promotional cost c. Distribution cost
b. Capitalization d. Budgeting
34. It describe your marketing activities on a Meta level.
a. Mission statement c. Executive summary
b. Marketing Objectives d. Situation analysis
35. This is the last stage of the product life cycle wherein product sales are
at its lowest. Products at this stage were most likely to have been shaken-
out by its strong competitors; advertising and distribution are minimal.
a. decline stage c. growth stage
b. introduction stage d. maturity stage