INITAO COLLEGE Course Code: FP3

Jampason, Initao, Misamis Oriental Course Title: Entrepreneurial Marketing Strategies

1st Semester, S.Y. 2020 - 2021 Unit: 3 (Lecture)

INSTRUCTOR: ELIAZAR C. RAMIREZ

Topic: Desired Learning Outcomes:

MARKET DEVELOPMENT  Identify different issues of market development and problems

Distinguish the importance of Market Development
Duration: 3 hrs
INTRODUCTION

Under the modern concept of marketing, markets are willing and able to satisfy their needs. In economics this is called
effective demand. Entrepreneurs are resourceful and creative. They can create customers or buyers.

ACTIVITY

Target market refers to the buyers who are willing and able to purchase goods and services. They can be segmented
based on their age, sex, race and education. What do you think are the other segmentation factors?

ABSTRACTION

The market study is aimed at determining and analyzing the demand and supply for the product/service in the past and
making projections of demand and supply in the future; ascertaining its competitive position in the industry and designing
the marketing program for the product/service.

ANALYSIS

THE MARKET FEASIBILITY

Market is where and to whom a product is sold. A description of who the buyers/users of the product are and where
they are located are the starting considerations, as these determine the size of the market.

Size of the market is usually expressed by the number of households in a particular area, the population under
certain age group, the number of persons in a particular income bracket, the number of buyers in a particular area, etc.
Once the market size is determined, the demand and supply situation are analyzed.

The market feasibility study should be able to present enough data to show:
 The size and characteristics of the market.
 The demand for the product.
 The supply available; and
 The competitive situation.

Demand Analyses

The demand analysis is meant to determine the pattern for consumption for the product and the
characteristic of the market in the immediate past to determine what is likely to happen to the consumption pattern soon.
Implicit in the demand analysis is the analysis of consumption custom idiosyncrasies and buyer buying habits.

Supply Assessment

The supply situation for the product in a particular market is likewise assessed as to source and the quantity and
quality available. Past and future supply trends and a study of factors affecting these demands are first presented.

Once the demand and supply situation is ascertained, an analysis is made to determine whether there is a gap
between demand and supply. If the product demand is more than the supply, entry of the new venture or the expansion of
an existing one is favorable. Otherwise, it is not advisable to go on with the project.
Competition

Aside from the demand and supply situation, the competitive situation must also be analyzed. Although the
demand-supply situation is favorable, entry to the market may be very competitive.

Competition in the market is analyzed in terms of the number of competitors, the prevailing prices, quality of the
product, other services that accompany the sales of the product, the promotion given to the product, the channels of
distribution and the terms and conditions given to effect sales and ultimate buyers of the product.

THE MARKETING PROGRAM

An understanding of the market situation and the activities of competitors in the market is important in the design
of the company’s marketing program.

The understanding of the market and competitive situation should enable the firm to identify a specific market
segment where there is an opportunity for profit and growth.

The program includes product(s) determination of product quality, the prices at which it will be sold, the promotion
(if any) for the product(s), the channels of distribution or the middlemen, the terms and conditions that will be given to
these middlemen as well as the terms that will be given to the ultimate buyers, and a schedule of when the product(s) will
be made available.

Marketing Concept vs. Selling Concept

The marketing concept determines the needs of the customers first, then develop the product and service to
satisfy such needs. In short, marketing is customer oriented. On the other hand, the selling concept uses a reverse
strategy. The enterprise makes the product first. Then it uses various ways of persuading people to buy the product. The
focus of selling is on the needs of the seller instead of the buyer.

To implement the marketing concept, an enterprise must:

1. Get information about its customers and potential customers.

2. Determine customers’ needs and how well the products of the firm and its competitors satisfy such
needs.
3. Direct the marketing resources and activities of the firm to improve products and services, together
with reasonable prices for customers’ maximum satisfaction.

Marketing Plan

A marketing plan is an outline of actions designed to achieve a specific set of goals. It must be compatible with
marketing resources and the external environment of the enterprise.

The external environment of the enterprise consists of economic, political, social, and technological forces.

Steps in Developing a Marketing Plan

1. Assess the marketing environment: 3. Choose a target market with strategies on:
 Present and potential market  Product
 Marketing program/strategies  Pricing
 Availability of resources  Promotion
2. Formulate specific marketing objectives:
 Distribution
 Reasonable 4. Monitor and evaluate the operations of the marketing
 Realistic
program through:
 Relevant to firm’s goals
 Marketing research
Marketing Strategies  Marketing information system (computer-based)
According to Professor Phillip Kotler, a marketing strategy is a consistent, appropriate, and feasible set of
principles through which a particular enterprise hopes to attain its long-run customer and profit objectives in a particular
competitive market.
 A marketing strategy considers the following factors:

1. Competitive size and market position of the enterprise

2. Resources, objectives, and policies of the enterprise
3. Marketing strategies of competitors
4. Buying behavior of target market
5. Stage of product-life cycle
6. Character of the economy

Basically, marketing strategies are the tools of achieving the goals of the enterprise. Every marketing strategy
must have a marketing mix as well as a target market.

Marketing mix consists of the ingredients of marketing. These are the product, the price of the product, the
 sex
promotion of the product, and the distribution of the product. Such combination is designed to reach a target market. The
 income
latter refers to the buyers who are willing and able to purchase goods and services.
 occupation
 urban/rural residence
The target market can be segmented based on their:
 age
 race
 education
 social classes

Marketing strategies consist of (1) product strategy, (2) price strategy, (3) promotion strategy and (4)
distribution(place) strategy.

APPLICATION

The marketing concept has been put into action by many successful enterprises like Eastman Kodak, Ford Motor
Company, and Apple Computer.