SENIOR HIGH

Principles of Marketing
SCHOOL

Supplementary Materials
(Module 3)

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PRINCIPLES OF MARKETING
(Localized Module)
3rd Quarter – Module 3
Week 5 – Week 6
Market Opportunity Analysis and
Consumer Analysis

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For the learner:
Welcome to the Introduction to Philosophy of the Human Person Alternative Delivery Mode (ADM)
Module on Principles of Marketing.

The hand is one of the most symbolized part of the human body. It is often used to depict skill, action
and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning
resource signifies that you as a learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for guided and
independent learning at your own pace and time. You will be enabled to process the contents of the
learning resource while being an active learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or competencies
you are expected to learn in the module.

What I Know This part includes an activity that aims to check what
you already know about the lesson to take.

What’s In This is a brief drill or review to help you link the current
lesson with the previous one.

What’s New In this portion, the new lesson will be introduced to you
in various ways such as a story, a song, a poem, a
problem opener, an activity or a situation.

What Is It This section provides a brief discussion of the lesson. This aims to
help you discover and understand new concepts and skills.

What’s more This comprises activities for independent practice to

solidify your understanding and skills of the topic.

What I have learned This includes questions or blank sentence/paragraph to

be filled in to process what you learned from the lesson.

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 Assessment This is a task which aims to evaluate your level of
mastery in achieving the learning competency.

Additional In this portion, another activity will be given to you to enrich

Activities your knowledge or skill of the lesson learned. This also
tends retention of learned concepts.

Answer Key This contains answers to all activities in the module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a
separate sheet or the prescribe answer sheet of your teacher in answering the exercises.

2. Do not forget to answer What I Know before moving on to the other activities included in the
module.

3. Read the instruction carefully before doing each task.

4. Observe honesty and integrity in doing the tasks and checking your answers.

5. Finish the task at hand before proceeding to the next.

6. Return this module to your teacher/facilitator once you are through with it.

7. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult
your teacher or facilitator. Always bear in mind that you are not alone.

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 Week 5
What I Know Day 1-2
Direction: Multiple Choice. Read the sentences and choose the correct answer that describe in the
sentences. Write your answer in your answer sheet.

1. A term used by marketers in referring to the various factors and potent players that
make an impact on the ability of the company to establish and sustain a profitable
relationship with its target customers.
a. macro environment c. microenvironment
b. tactical marketing d. marketing environment
2. The means that the marketers identify in reaching the goals.
a. macro environment c. tactical marketing
b. marketing environment d. strategic marketing
3. The plan that marketers design in accomplishing goals.
a. marketing environment c. tactical marketing
b. strategic marketing d. macro environment
4. Comprises of individuals or institutions that provide resources necessary for the company.
a. macro environment c. suppliers environment
b. microenvironment d. marketing intermediaries
5. Individuals of institutions that support the operations of marketing by promoting,
selling, distributing the goods to the consumers.
a. suppliers environment c. customers environment
b. market intermediaries d. competitors environment
6. Comprises of groups that have possible concerns or effect on the ability of the company
to attain its goals.
a. competitors environment c. suppliers environment
b. customers environment d. public environment
7. Consists of complaints that produce products in the same category in the market.
a. customers environment c. competitors environment
b. suppliers environment d. public environment
8. These factors can force or restrain different groups or individuals in the given society.
a. political factors c. cultural factors
b. economic factors d. technological factors
9. These are natural resources that are needed as inputs by marketers or that are affected
by marketing activities.
a. natural factors c. demographic factors
b. technological factors d. economic factors
10. Systematic design, collection, analysis, and reporting of data to a specific marketing
situation facing an organization.
a. strategic marketing c. marketing research
b. tactical marketing d. descriptive research

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 Market Opportunity Analysis and Consumer Analysis
Week 5-6

Marketing is a big battlefield and going out in the combat without a plan is suicide. Strategizing your
move and creating deadly tactics will outwit your competitor….

So plan!
The Big Idea

In a market where competition is fast and tough, marketing a brand is strenuous. Marketers must
learn how to strategize their moves and foresee the opportunities for their brands to attain
competitive advantage.

Finding competitive edge amid the highly competitive brands is not an easy task. Marketers should
carefully weigh every information they generate from different environments and turn it into their
advantage by creating a marketing strategy and tactics that sell.

In this lesson, the use of strategic marketing and tactical marketing in creating marketing plans will
be discussed. The different marketing environment and how these environments create impact in
the marketing plan of a brand will also be explored. Moreover, lastly, this lesson will teach the
readers the various elements of marketing research that will be helpful in fine-tuning the marketing
plan.

What I Need to Know

The Game Plan

At the end of the lesson, learners should be able to:
1. Distinguish between strategic and marketing planning regarding objective and process.
2. Analyze the elements of macro-environment and micro-environment and their influence on
marketing planning.
3. Define marketing research, its importance to a business enterprise and identify steps in
marketing research.

Get Down to Business

One of the important lessons that a marketing practitioner should appreciate in creating a strategic
marketing plan is the relationship of strategic planning and marketing.

Strategic planning is a wide procedure that address the whole business, or a part of the business like
marketing.

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Marketing planning is a process that staff from operational and managerial levels work together to
create and implement effective marketing strategies.

Marketing strategies can be derived from the strategic plan, which is designed to provide the company,
its division, or individuals with a road map to achieve specific goals and objective.

Marketing plan, on the other hand, describe the action needed to interest potential customers and
persuade them to purchase the commodities being offered by the companies.

Strategic planning can recognize internal and external impacts and opportunities to regard in designing
the strategies and tactics. On marketer’s point of view, strategic planning is important to marketing
because it can determine new market opportunities at the same time identify new competitive
challenges.

What Is It

Distinguishing Strategic Marketing from Tactical Marketing

In designing a marketing plan, learners must understand the concept of strategic marketing and tactical
marketing. These two components are essential factors in crafting an effective marketing plan. However,
many marketers are still confused with the two relative elements. Here are some points that will draw a
distinction between strategic marketing from tactical marketing.

Marketing starts with setting up the goals of the company. It answer the question “what needs to be
achieve?” The company formulates the goals based on the vision and mission of the company.

In attaining these marketing goals, the company will conduct planning to reach the desired goals. This is
where the strategic marketing takes place in the entire process of marketing.

Strategic marketing is the plan that marketers design in accomplishing goals. It attends to the managing
of the business growth regarding sales, competition and brand imaging which is necessary for attaining
competitive advantage in the market.

On the other hand, marketers will identify specific means to reach the goals based of the strategic plan.
This is where the tactical marketing takes in the marketing process.

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Tactical Marketing is the means that the marketers identify in reaching the goals. It deals with the
identified activities of the marketers for the realization of the goal.

The strategic marketing and tactical marketing works together and should complement each other.
Strategic marketing is the concept or the idea on how to reach the marketing goals. Moreover, the
tactical marketing is the set of actions that are needed to achieve the goals. The marketers should
harmonize the two elements of the marketing plan to create a winning marketing campaign.

Strategic Marketing (The

Tactical
Idea) Marketing (The Action)
Marketing
Goals

Figure 3.1 Marketing Planning Process

Fresh Perspective: Planning Marketing Strategies and Tactics

In planning for marketing campaign, the first thing that marketers do is to design a marketing strategy
for the brand. Marketers should have a strong knowledge of the trends in market. Meaning, the
marketers must know the current standing of his product in the industry, identify the direct and indirect
competitors, and understand the profile of the customer and their buying habits.

The strategic marketing planning process includes:

 Industry research
 Market research
 Competition
 Market segmentation
 Market positioning

After crafting the strategic marketing plan, the marketers will think of ways to realize the strategic goals.
Thus, the marketer will think of tactical marketing plan, which involves activities that will communicate
the brand in the market such as sales promotions, events and advertising promotions. Marketers should
develop activities or programs that will truly support the strategic marketing goals.

The tactical marketing planning process includes:

 Promotion (advertising, personal selling, sales promotion)

 Distribution plan
 Pricing plan

Simple Example:
Marketing Goals: to increase sales revenue by 10% at the end of the first semester.

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Marketing Objective: to increase the brand awareness of the target market by 50% at the end of the
first semester.

Marketing Strategy: invite the target market to visit the outlets and try the product by developing
promotional materials that will reach and influence them.

Marketing Tactic:
1. Produce radio advertisement and air it in the three leading FM radio stations.
2. Conduct product sampling to shoppers who will visit the outlet.
3. Offer shoppers discount and membership card upon availing the product.

Exploring Marketing Environment

Dynamic and fast changing, the Philippines is one of the markets in Asia that demonstrates flexibility
through embracing the gift of modernity amidst its diversified traditional socio-cultural characteristics.
Complicated as it may seem, the Philippine market has entwined its soul to the convenience and the
luxury of new technologies, which has shaped the majority of its consuming public in all aspects of life
though times.

To be appeased with the dynamic movement of the market, the companies must examine and be
familiar with the factors and other key players in its environment that would greatly affect the
performance of their business in connecting to its relationship with the customers. Therefore, scanning
the marketing environment will immensely help the marketer in designing the blueprint for the
marketing campaign.

Marketing environment is a term used by marketers in referring to the various factors and strong
players that make an impact on the ability of the company to establish and sustain a profitable
relationship with its target customers.

Aside from the help that it will give in planning marketing programs, the study of marketing
environment will also provide the following advantages:

1. It can give the company a clear picture of competitive landscape that would help them in
competing with the other brand contenders.
2. The company will easily see the opportunities and threats that would affect the operations
of the business.
3. The company will be able to take advantage of the possibilities that will arise.

In the concept of marketing environment, the learners should understand the relationships of the
following variable:

1. The Internal Environment

2. The External Environment
a. Microenvironment
b. Macro environment

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Internal Environment

The internal environment comprises of factors inside the company that affects the performance of
marketing efforts. This includes the internal public and functional divisions (as discussed in Lesson 1-
Basic Organizational Structure) inside the organization.

The following are the internal factors:

1. Workforce – manager, supervisors, technical workers, administrative assistants
2. Equipment – Computers, printers, camera, photocopier machines
3. Facilities – training room, board room, manufacturing plant
4. Materials – Paper, ink, batteries
5. Finance – Capital, sales, revenue

These internal factors should be managed effectively to deliver quality service and thus maintain a
harmonious relationship with the customers. One of the important factors that need to be managed is
the workforce or the employee.

Based in the discussion in Chapter II, the workforce or the employees are very vital in the operation of
the company’s business. The management should be able to motivate its people through offering
rewards, study grants, career advancement programs or promotion, employee support programs, health
benefits, insurance and competitive compensation. These offerings will promote productivity and
efficiency in delivering the employee’s tasks.

Motivated employees emanate positive attitude towards work. The more they are motivated in reaching
their goals, the greater the chance for the company to achieve its marketing goals. The workforce is the
backbone of the company. They are an asset to the company. Hence, it is just to give them the support
they need in delivering quality service to the customers.

Equipment such as computers, printers, and manufacturing machines are one of the determinants of
employee’s productivity. For artists, they need a good set of computer designed for producing creative
outputs that are needed for the production of labels, packaging and promotional materials. For
manufacturing plant operators, they need highly reliable machines that have the capacity to deliver

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quality products in the given target quantity in a specific timeline. For the account executives, they need
a laptop and other portable gadgets for client presentations. Even for the maintenance workers, they
need vacuum and electric floor polisher to maintain the cleanliness of the office.

Everyone in the company, from the top management to the laborers, utilizes, equipment to deliver their
duties and responsibilities. The company should always consider the management of equipment. They
need to conduct audit and maintenance program to secure the reliability and durability of the
equipment needed for the operation of the business.

The company should also manage office supplies and raw materials need for effective operations of the
business. No matter how high the motivation of the employees to perform his duties, their intention will
be defeated if there are no materials available to support the employees efforts. Thus, safeguarding the
availability of the materials for the employee is providing them a chance to deliver their work efficiently.

In every aspect of the business, the factor is always involved. Finance supports the operation of the
business. In the production, for instance, the company will not be able to produce products if there is no
budget for buying equipment that the workers need for delivering their jobs. Essentially, finance
balances the capital and revenue to support the marketing efforts of the company. Thus, poor finance
management will greatly affect the operations of the company.

In the chapter, I, the discussion on the basic organizational structure reveals the interrelated functions
of each division in reaching the marketing goals. It presented the idea that aside from the Marketing
Division, other divisions such ad Human Resource and Training, Accounting and Finance, and Production
and Operations division have their contribution in attaining the marketing goals. Moreover, these are
part of the internal environment that needs to be managed to support the efficient implementation of
the marketing process.

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External Environment

Microenvironment is part of the external environment in marketing. It consists of factors that are near
to the company, which has an impact on the delivery of the products and services. These factors are
individuals or institutions that affect the marketing programs of the company. These are the supplier,
the market intermediates, customers, competitors, and public.

Suppliers

Market
Public intermediates

Company

Competitor Customer

Fig. 3.2. Micro Environment in Marketing

The Suppliers Environment comprises of individuals or institutions that provide resources necessary for
the company. It has considerable effect of the marketing operation of the company. For example, if the
suppliers of flour increase the price in the business market, the price of bread products and other
products that utilize flour as an ingredient in producing products will be affected. Therefore, the
marketing operation of the company will also be affected.

The Market Intermediates are individuals or institutions that support the operations of marketing by
promoting, selling, distributing the goods to the consumers. These are distributors, department store,
grocery stores, and financial organizations. A typical scenario where a company is affected by this
environment is when, for example, a department store launches 50% discount promotion in all items
during holidays. The company should mark down the price of its product to 50% to match the promotion
of the department store that distribute the company’s product. This may work as an advantage to the
company or it may not. Depending on the agreement between the company and department store.

The Customer Environment as discussed in Chapter II – Types of Customers according to market, this
environment is complicated since that each has different types of needs to be satisfied. Thus, the
marketer should analyze this environment to establish and maintain a harmonious relationship with
them.

The Competitors Environment consists of companies that produce products in the same category in the
market. An example of this is ready to drink fruit juice category. There are many ready to drink fruit juice
out in the market. Consumers may find them in different sizes, flavors, and packaging, which are
produced by numerous companies. If a company offers products in the same category, it is a smart
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move for the

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company to pay a closer look its competitors. In this tough environment, the marketers should find a
way to outsmart its competition by seeing the entire picture using the lens of the paying customers.

The Public Environment comprises of groups that have possible concerns or effect on the ability of the
company to attain its goals. In this environment, learners may find the following:

1. Financial Publics – banks and other investment institutions

2. Media Publics – radio, television and print media or networks
3. Government Publics – Department of Trade and Industry, Department of Education,
Department Social Welfare and Development
4. Citizen Action Publics – environmental groups, gender empowerment groups, child
protection groups

The marketing programs of the company may call the attention of the public, which is based on
its thrust and priorities. For example, during a major disaster, many companies help victims of
disasters by giving them goods that will help them in surviving the calamity. This good gesture of
companies, as part of their corporate social responsibility, may call the attention of media
groups and will feature the company’s story of helping the victims of disasters in their media
channels. This will be a good publicity and at the same time free mileage to the company.

The macro environment, on the other hand, has greater societal factors that affect the entire business
programs in the industry. The following are the factors that make impact on the macro environment:

1. Political Factors – this includes legal, government agencies and pressure groups. These
factors can force or restrain different groups or individuals in the given society. Business
activities such as marketing programs are subject to various laws, policies, and regulations
developed by the government to protect the companies, consumers and public interest. For
example, sales promotion such as discounts is subject to the scrutiny and approval of the
Department of Trade and Industry or DTI. The company has to apply for DTI permit for the
sales promotions activities like discounts. This regulation will serve both the customers and
the company’s rights and protection. The challenge that most companies are facing is the
expanding legislation and the changing government agency implementation of regulations.
Thus, the marketers should be fully aware of these trends in laws, policies, and regulations
concerning business and commerce because it will greatly affect the implementation of the
company’s marketing programs.

2. Economic Factors – this consist of variables that affects the consumers purchasing power
and patterns. The marketer should study the following trends under the economic
environment:

a. Gross National Product or GNP

b. Consumer’s growth income
c. Income distribution
d. Impact of oil price about transportation fares and commodity prices
e. Recession or economic decline

The said factors have a significant implication of the buying and consumption patterns of the
customers. Giving a practical example is when the price of oil in the market increases, the
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likelihood of increasing the price of the commodities in the market is largely conclusive.
However, there is no adjustment in the wages of the workers. Thus, the income of the
household will be stuck while the prices of commodities are moving upward. With this scenario,
household’s capacity to buy more commodities out of their income decreases. There will be
fewer commodities that can put into their baskets given the depreciated value of their budget.
The buying of their usual goods they consume is at risk. They might sort to alternative products
that offer at the lower price. In this type of situation, marketers should have a ready marketing
strategy that will make this threat an opportunity to sell.

Marketers should identify the socio-economic status of the customers to strategize the
marketing program better. In the book Principles of Marketing, AC-as presented a table showing
the social and economic status of Filipinos in 2001.

Percentage Estimated Philippine Social Class Differentials

1% Upper-Class
Large landowners
Highly successful professionals
Prominent business people
Top government officials
10% Upper-Middle Class
Owner of farms over 20 hectares
Most professionals
Operators of medium-size business
Middle-echelon government administrators
Some university professors
Bank, department stores, factory manager
20% Lower-Middle Class
Lower-echelon government workers
Most professors and teachers
Owners of farm of 3 to 9 hectares
Nurse
Some small business people
32% Upper Lower Class
Factory workers
Skilled workers
Small farmers
Store clerks
Office workers
Most sari-sari store owners
37% Lower-Lower Class
Unskilled laborers farmers
Most household servants
Landless farm labor – most tenant farmers
Most physically handicapped
Peddlers, scavengers

Table 3.1 Socio-Economic Class

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3. Cultural Factors – these institutions and other factors that make an impact on the basic
values, perspective, choice and other behaviors. In the country, the cultural environment is
comprising of the following:

 Language
 Festival
 Food
 Religion
 Customs, Traits and Traditions

Divided by Several islands, clustered in 18 regions from Luzon, Visayas and Mindanao. The
Philippines offers rich, colorful and diversified culture because of its geographical characteristic.
The cultural environment that can be seen in Luzon is partly different from the Visayas, which is
also different from Mindanao.

Language. The country’s primary language is Filipino. However, regarding local language, the
country has several dialects such as Tagalog, Ilocano, Pangasinan, Kapampangan, Bicolano,
Cebuano, o Bisaya, Hiligaynon, and Waray-Waray. Foreign languages can also be found in the
country such as English, Mandarin, Fookien, Cantonese and Spanish.

The language barrier can affect the effective of the implementation of the marketing programs
like advertising. For example, many people in Visayas region are not well versed in Filipino
Therefore, using Filipino as a medium in advertising the product or service in the Visayas is not a
smart thing to do because it will not be comprehended perfectly by the Visayan communities.
The best thing to do is to have a Bisaya version of the advertisement that will be distributed in
the Visayas Region. In this way, the advertising material will be easily understood in their
communities.

Food. The country has rich taste when it comes to food. From the traditional recipes to the
modern cultural twist, modern Filipinos are adventurous eaters. In traditional perspective, the
Philippines offers varieties of food depending on the region. In Northern Philippines, Ilocanos
are famous for their Pinakbet and Kapampangans are known for Sisig. In Central Philippines, the
Bicolanos offer very spicy food like Bicol Express and Ilonggos provides delectable dish like
Kabios Baboy Langka or KBL. Moreover, in Southern Philippines, people in Mindanao offers Satti
and Rendang.

Companies from the food industry in the Philippines such as restaurants, fast food chains, and
all food products pay close attention to these variables. For them, the ever-changing taste buds
of Filipinos serve as their bible in formulating their menus, flavors, ingredients and cooking
styles. Example, Sisig is a famous dish from the Luzon. Thus, many food companies saw the
potential of the dish as highly marketable. That is why many food technologies of different
companies developed the dish and became part of their menu. Now aside from pork sisig, there
are beef sisig, chicken sisig, bangus sisig, and squid sisig for the non-eater. Moreover, it is now
available in cans so that it will be consumed by people anytime, anywhere.

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Religion. The Philippines is a Christian nation. Most of the people in the country are Roman
Catholic. Islam is found largely in Mindanao region. Religion has a great impact on the beliefs
and values of Filipinos. Some celebrated holidays and festivals in the country are related to
religions.

In the subject of moral and spiritual values, companies should realize that religious dogmas have
an effect on the marketing operations. For instance, a man with a strong commitment to his
Christian faith will ignore the discounted price of condom because, in some Christian religions,
only the natural method of family planning is acceptable.

Many marketers depict customs, traits and traditions in the product and service advertisements.
This is because many audiences can easily relate themselves to the advertisement if the scenes
portrayed popular customs like Manpo Po or traits like Utang na loob for instance.

Thus, understanding the cultural factors will provide the marketers better understanding of the
cultural characteristics of the different market that may be used as an opportunity for the
company to draw a competitive advantage.

4. Natural Factor – these are natural resources that are needed as inputs by marketers or that
are affected by marketing activities. The natural environment is affected by the following:
 Protection of resources
 Ecotourism
 Recycle and reduce waste

The production of products may be affected by the shortage of natural resources such as forest,
agricultural products, marine products, minerals, oil and coal. As a source of the raw materials in
producing the products become insufficient, the cost of the raw materials will increase. This
means the price of the product will also increase.

5. Technological Factors – these are variables that produce new technologies, create new
products, and discover marketing opportunities. The technological environment affects the
operations of the business through the birth of new technologies. For example, the
companies that have used telemarketing in the 90’s and e-marketing in 2000 are now
learning and implementing digital marketing.

The learner curve of the companies in the use of new technologies is critical competition.
The company that adapts and adjusts faster to new technologies has a greater edge to its
competitors. However, this has an effect to company regarding:

 Expenses in training employees and hiring consultants or new employee to

facilitate the changes brought by the new technology
 Time and effort in training people
 Purchasing of equipment to support the new technology
 Changes in the organizational structure especially if the new technology will
require creating another division or unit.

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6. Demographic Factors – It deals mainly with the population of human according to size,
density, location, age, gender, race, occupation and other statistics essential in the
description of the market.

The demographic environment is essential to marketing. It helps companies to identify

potential market for products and services. It serves as a baseline for strategizing the
marketing activities. For instances, if demographic environment of the target customers
show tendency to be busy, active and young executives in prime business areas in Metro
Manila, marketers, may focus on producing advertisements that highlight the fast and easy-
to-use features of the product, which will be placed in the prime business areas to ensure
maximum reach and exposure.

In studying the demographic environment, the marketers must understand and fully
observe the following:

 The customers are aging – the age of the customers changes yearly. The youth of
the yesterday is the adult of today. So as the time passes, the market grows old and
many of its needs changes. For example, as young adults, they enjoy drinking soft
drinks. However, as these young adults reach old age, their product preference
changes. Most of them will switch to more healthy drinks that will provide them
with needed nutrients in combating the old age-related diseases like diabetes and
hypertension.

This is a marketing phenomenon that marketers must foresee. If this will happen,
marketers must find opportunities to maintain their relationship by developing the
product or service based on the changing needs of the aging customers. Companies
may offer low in calories, zero cholesterol or sugar-free products to satisfy the new
needs of the customers.

 New markets are immerging – The marketers must also consider the birth of new
market that is potential new customers of the product. For instance, the girls in
their teen years today are potential users of cosmetic products, as they become
ladies in the future. Some companies see this as opportunities to bridge these future
users of their products. Thus, they offer pressed powder and lipstick for teenagers.

The marketers must understand that the age of the market evolves.
Hence, here are the age generations that marketers may refer:

a. The baby boomer. This age generation is the middle age group going to old
age in the market today.
b. The generation X or Gen X, which is synonymous to ‘MTV generations’ due
to the heavy influence of Music Television channel in the 80s era. Started
after the baby boomers, this age generation is now entering the middle age
group of the market.
c. The generation y may also refer to echo boomers or millennial generation.
This age generation occupies the youth segment (children and teens) of the
market today. They are characterized by heavy dependence on new
technologies.

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  The family structure changes – The family is the prime target customers of many
companies. Its changing structure will affect how marketers develop strategies in
promoting the product in the market. Different types of the family have different
buying decision process and the purchasing roles of the members.

For example, earning the same monthly income, in the joint family or also called
undivided family, where two or more generations being related to either paternal or
maternal line are living in one household, product preference and consumption is
different from nuclear family or also called elementary family, where there are only two
parents and their children living in a household.

A joint family with seven members may buy products for the elderly like medicines and
supplementary food because the grandparents are part of the households and
dependent on the main family’s income. Thus, this may affect the family’s budget
allocation and product preference. The family will choose products with a price that
suits the family’s budget, and at the same time satisfy the needs of each member.

On the other hand, a nuclear family with four members has a bigger chance to purchase
products with greater value for each member because the budget allocation is divided
into a lesser number.

The marketers must also consider the role of each member of the family in purchasing.
Here are some guide questions that will identify the critical role of the family members:

1. Who identifies the needs to purchase products for the family?

2. Who are interested in buying and seek information to the products?
3. Who influences to evaluate choices, set and the final choice?
4. Who makes the final decision?
5. Who does the actual buying?

Conducting Marketing Research

Whether for individuals, institutions, products or services,

marketing research has proven its worth in putting depth
and precision in planning and implementing campaigns.

Through marketing research, companies get information such as consumer insights that are pertinent in
developing superior brands and establishing meaningful relationships with customer. For instance,
marketers conduct marketing research to find out how customers will think, feel and act on certain
marketing programs, what motivates them to buy the products or service, and why they prefer this
brand above any other brands in the market.

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These facts are pertinent in developing a plan for products or services. It will give the marketers ideas in
formulating strategies and tactics in attaining the marketing goals. Thus, it will provide the companies a
competitive advantage.

According the Kotler and Armstrong, marketing research is systematic design, collection, analysis and
reporting of data of a specific marketing situation facing an organization.

In conducting a marketing research, marketers follow a systematic procedure in gathering and analyzing
data. This procedure has four steps as shown in figure 3.3.
Figure 3.3. The Marketing Research Process, Kotler and Armstrong

Implementing the research plan- collecting and analyzing the data

Defining the problem and
Developing
research the
objectives
research plan for collecting information
interpreting and reporting

Step 1. Defining the problem and research objectives. In this step, the marketing team must determine
the problem and the research objectives. Though this step is usually the hardest part of the process, the
researchers should understand the nature of research and the possible best source of information.

In determining the problem, the marketing group may be guided by these two (2) questions:

1. Why is there a need to conduct a marketing research?

2. What particular gap in marketing that needs to be addressed?

Utilizing these two questions, the marketing group may arrive at various answer like:
“We would like to find out why our brand is not gaining attention to the market despite our
massive advertising efforts.”

“We have to know the reason why brand X has captured the majority of the market share wile
brand Y and brand Z are sharing a little portion of the market.”

“We want to know the perception of the customers on the existing product features of our brand
against the other brands.”

Whatever reasons companies have in conducting marketing research, may it be about sales, competition
or consumers behavior the marketing team should carefully weigh the factors and come up with a
relevant research problem.

After the marketing team identifies the research problem, they have to formulate their research
objectives. In formulating the research objectives, the marketing team may base it in the three types of
research of objectives.

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 1. Exploratory research – the main purpose of this research is to collect initial information that
will help defines problems and suggests hypotheses.
2. Descriptive research – the main purpose of this research is to describe marketing problems,
situations or markets, such as the market potential for a product or the demographics and
attitude of customers.
3. Causal research – the main purpose of this research is to test hypotheses about cause –and-
effect relationships.

The marketing team must understand that the statement of the problem and research objective serves
as a guide in the total research process. Thus, the entire marketing team should concur on the identified
problem and objectives in the marketing research plan.

to collect initial information that will help define problems and suggest hypotheses
Exploratory
Research
Descriptive Research
to describe marketing problems, situations or markets, such as the market potential for a product or the d

Casual Research to test hypotheses about cause-and-effect relationship

Figure 3.4 Types of Research Objectives, Kotler and Armstrong

Step 2. Developing a research plan for collecting information. In this stage, the marketing team must
develop a research plan that would be the basis of the information that needs to be gathered efficiently
in attaining the research objectives.

Marketing research plan may contain the following variables:

- Statement of the problem
- Research objectives
- Significance of the research
- Scope of research
- Existing data
- Research approaches
- Research methods
- Sampling plans
- Research tools or instrument
- Research cost

The research team must prepare a written proposal containing the marketing research variables. The
written proposal is useful in presenting the ideas to the management and in implementing the research
later on.

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In gathering information needed for the planning the marketing research, the marketing researchers may
gather secondary data and/or primary data defending on the information needs of the management.

Secondary data – these are existing information gathered to serve some other purpose or use. In
gathering secondary data, the marketing team may refer to its internal database or may call on services
from other sources of information like business data services and government information services.

The advantages of using secondary data:

1. Low cost
2. Can be acquired faster because the data is already available

The downside of using secondary data is when the specific information needed by the company may not
exist, or the information is not updated.

Primary Data – these are information gathered to serve the specific purpose of the research. The
research team should ensure that all information collected is significant, precise, updated and impartial.

In gathering primary data, the marketing researchers consider research approach methods, sampling and
instrument.

Research Approaches:
1. Observation research – collecting data through observation of famous people, actions and
reactions to situations.
2. Survey research – collecting data through inquiry to people on their knowledge, choices,
perception, attitude and behavior.
3. Experimental – collecting data through the choice of matched groups of subjects, exposing
them into different treatments and controlled tests.

Contact Methods:

1. Mail questionnaires – information can be attained by emailing the questionnaires to the

target customers.
2. Telephone interviews – target respondents can be reached through phone calls.
3. Personal interview (Focus interview and focus group interview) – the personal interview is a
good source of rich information because it does not only provide researchers with answers
to the questions but also, the researcher can observe the nonverbal reactions of

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the

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 interviewee. Focus group interview consists of five (5) to six (6) being interviewed at the
same time. It is usually in a form of discussion.
4. Online – gathering data using online survey or online focus group interview using a web
camera.

Sampling Plan:
The term sample refers to a segment of the population selected for the marketing research to represent
the population as a whole (Kotler and Armstrong).

The marketing researchers select a sample that would best represent the target population to make an
accurate analysis of the generated customer’s insights.

There are three (3) factors that needed to be considered in designing the sample in marketing research.
These are the following:

1. Sampling unit – It refers to the subject (person or group of people) that will be studied.
Marketing researchers may select one sample among the target population of the research
to represent the whole. For example, when studying the buying behavior of college students
in Metro Manila on fast food products, a single college students in a university can be a
sampling unit.

2. Sampling size – it refers to the number of subjects to be included in the study. Example, how
many students should be included in the study? The size of the sample may be determined
depending on the statistical considerations and the cost of research. The reliability of the
results may be affected by the sampling size.

3. Sampling procedures – It refers to the process of selection of the sample. How the subject in
the sample be selected? The marketers may use probability samples or nonprobability
samples in their selection.

Probability Sample:
a. Simple random sample
b. Stratified random sample
c. Cluster (area) sample

Nonprobability Sample:
a. Convenience sample
b. Judgement sample
c. Quota sample

Research instruments:

Marketing researchers may use questionnaires and/or mechanical instrument in gathering primary data.

Questionnaires. It is the most common research instrument. Many researchers use questionnaires as a
tool in gathering data whether for a personal interview, mail, telephone and/or online.

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Questionnaires are flexible instrument of the researcher. Marketing researchers may ask closed-end
questions or open-end questions to the respondents depending on the objective of the research.

Closed-end questions provide possible answer to choose. For example:

Where did you learn the services being offered by the shop?

a. Referred by family, friends or colleagues

b. Through TV, radio and print advertisements
c. Online Ads via e-mail or Facebook accounts
d. Others

Open-end questions provide respondents to use their words in answering the questions. This allows
marketing researchers to understand the consumers better by finding out what they are thinking. For
example:

a. What is your stand in the changing concept of beauty among Filipino women?
b. What is your point of view on Filipino women using skin-whitening products, like soap,
lotion, pills, capsules, or injectable serum?
c. What is your opinion on products that offers skin whitening results in just one (1) week?

Mechanical Instrument. Marketing researchers can also use mechanical devices to monitor the behavior
of the customers. Some companies use people meters or retail scanners in getting information on the
consumer behavior.

Step 3. Implementing the research plan – collecting and analyzing the data. In this stage, the marketing
researchers implement the research plan. The research team is carefully administering the collection of
data to secure reliability and accuracy of the results.

After the data collection, the marketing research team will thoroughly process and analyze the
information being gathered or generated from the target respondents. In this process, the research
team must secure utmost accuracy and completeness of the data to be treated and analyzed. In the
research process, this is the most tiring and expensive stage. Thus, the marketing research team should
be prepared and equipped.

Step 4. Interpreting and reporting the findings. In this stage, the marketing researchers will interpret
the processed data and come up with findings and conclusions before reporting it to the management.

The marketing research team should report the significant findings and insights that will help management
in making major decisions.

On the other hand, managers also have a major role in interpreting the generated data. Managers’
insights are pertinent in giving an in-depth interpretation of the information.

The interpretation stage is the most crucial part of the market research process. Some companies hire
marketing research specialist and statisticians who will work together with the marketing research team
and managers just to ensure accurate and reliable interpretation of the information.

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 What’s More Week 5
Day 3-4

The Synergy

1. Read the case study below.

Mommy’s Choice instant noodles have been in the industry for ten years. The brand has earned its
position as number one instant noodles among the lower class market because of its affordability and its
distinct Filipino flavors such as Beef Sinigang , Seafood Pinangat and Chickem Sinampalukan noodles.
The management of Mommy’s Choice would like to step up its position in the market. They want to
conquer the middle-class market.

Activity 1: Given this case study, please answer the following:

a. What will be the marketing goal, marketing strategy and marketing tactics of Mommy’s
Choice to conquer the middle C market?

Marketing Goal Marketing Strategy Marketing Tactics

Activity 2
b. How will you describe the external marketing environment of Mommy’s Choice?
1. Microenvironment
a. Consumers environment
b. Competitors environment
c. Public environment
2. Macro environment
a. Political factors
b. Economic factors
c. Cultural factors
d. Natural factors
e. Technological factors
f. Demographic factors

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 Additional Activities Week 6
Day 1-2

Read the case study below.

Kinis Pinay Corporation or KPC, the leading manufacturing company of whitening products in the
Philippines, plans to launch another soap that would cater infants and toddlers. KPC intends to name the
soap as ‘Baby Puti’ Milk Soap because of its after effect benefits. ‘Baby Puti’ helps to smoothen and
whiten baby’s skin without irritation. However, KPC is not sure if the mothers will like the idea. Thus,
they would like to hire a group of the market researcher to conduct market research for the product.

Activity 3: Based on the case study, please answer the following:

1. What approach in market research is suitable for the case? Please support your answer.
2. Design a market research plan for ‘Baby Puti’ Milk Soap. Please be guided with the matrix
below.

Statement of the problem

Research objective/s

Sampling unit

Sampling size

Sampling procedure

3. Develop a questionnaire and distribute it to 10 mothers.

4. Gather the questionnaire and interpret the answers of the target respondents.

5. Based on the findings, what will be your recommendation to KPC

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 Week 6
What I have Learned Day 3

Raise The Bar

I. Identification. Write the correct answer.

1. It deals mainly with the population of human according to size, density, location, age,
gender, race, occupations and other statistics essential in the description of the market.
2. These are institutions and other factors that make an impact on the basic values,
perspective, choice and other behaviors.
3. These are natural resources that are needed as inputs by marketers or that are affected
by marketing activities.
4. This includes legal, government agencies and pressure groups. These factors can force or
restrain different groups or individuals in the given society.
5. A term used by marketers in referring to the various factors and potent players that make
an impact on the ability of the company to establish and sustain a profitable relationship
with its target customers.
6. It refers to the process of selection of the sample.
7. The main purpose of this research is to collect initial information that will help define
problems and suggests hypotheses.
8. It refers to the subject (person or group of people) that will be studied. Marketing
researchers may select one sample among the target population of the research to
represent the whole.
9. Systematic design, collection, analysis and reporting of data to a specific marketing
situation facing an organization.
10. The main purpose of this research is to describe marketing problems situations or
markets, such as the market potential for a product or the demographics and attitude of
customers.

II. Enumeration. Write the correct answer.

1-5. Five (5) factor in internal environment in marketing.
1.
2.
3.
4.
5. _
6-8. Three (3) approaches in marketing research.
6.
7.
8.
9-10. Two (2) types of sample procedure.
9.
10.

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 Week 6
Go Extra Mile Day 4
1. Interview two sets of family. Get the following detains:
VARIABLES FAMILY A FAMILY B
1. Number of Household
members
2. Monthly income
3. MonthlyAmount spends
in basic commodities
(food, water, electricity,
etc.)

2. Using same sets of family, ask the following questions:

QUESTIONS FAMILY A FAMILY B
a. Who identifies the
needs to purchase
products for the family?
b. Who are interested in
buying and seek
information to the
product?
c. Who influences to
evaluate choices, set
criteria and the final
choice?
d. Who makes the final
decision?
e. Who does the actual
buying?

3. Based on the gathered data, compare the answer to the two families and write your findings.

4. What are the significant similarities and different between the two families?

Assessment

1. Strategic marketing is .
a. A concept of how a goal can be achieved
b. Knowing what your competitors are selling
c. Any action taken to implement the organization's goal
d. A concept of the time frame during which a goal should be achieved.

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2. The specific steps that must be taken to implement the marketing strategy are the .
a. marketing goals b. marketing plans
c. marketing tactics d. marketing strategies

3. Which of the following is not a commonly used term to describe an element of the
business environment?
a. Micro-environment. b. Macro-environment.
c. Extrinsic Environment d. None of the above

4. Which of the following does not form part of an organization’s micro-environment?

a. Intermediaries b. Customers
c. Statute legislation d. Suppliers

5. Which of the following does not form part of a firm’s macro-environment?

a. internal environment b. economic environment
c. technological environment d. political environment

6. . What are the two types of external environments in business?

a. Micro and macro b. Marketing and legal
c. Social and economic d. Customers and suppliers

7. What are the factors found in the micro environment?

a. Economic, social, political, legal, technical and ethical factors
b. Factors that directly impact the operation of the company
c. General factors that the business typically has no control over
d. Suppliers, customers, marketing intermediaries, financiers and public perceptions

8. Whichc.ofCompetetive d. Economicmicro-environment?
the following would not be a part of an organization's
a. Competitors b. Suppliers
10. The influences in a society and/or its culture/s that affect
c. Customers people's
d. The attitudes, beliefs,
economy
behaviours, preferences, customers and lifestyles are known as
a. Technological
9. In an attempt forceslegal regulations, an industry
to overcome b. Demographic forces to
body may attempt
c. Socio
influence cultural
which aspectforces
of its marketing environment?d. Legal forces
a. Socio cultural b. Political

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