ABM128 Principles of Marketing

PRINCIPLES OF MARKETING
ABM128
JAMES G COLONIA
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Preface
The ADZU - SHS RIGHT Learning Kit for ABM 128: Principles of Marketing is aligned with
the competencies of the K – 12 Basic Education Curriculum set by the Department of Education.
This module is designed interactively to cater to the needs and demands of 21 st- century education.
The course, as stipulated in the curriculum guide, deals with the principles and practices in
marketing goods and services. It focuses on the development of integrated marketing programs
that will help businesses to grow. Also, the learners will be allowed to conceptualize a mini-
marketing plan and to orally defend it before a group of marketing professionals, thus enabling
them to develop their skills and interest in pursuing a career in marketing in the future.
The RIGHT Learning Kit is divided into two units: Unit I. are the Marketing Principles and
Strategies, Customer Relationship: Customer Service, Market Opportunity Analysis and
Consumer Analysis and Unit II. are the Developing the Marketing Mix, and Managing the
Marketing Effort and Workshop and Presentation of Marketing Plan. The lessons are designed to
be student-friendly, easy to read, and understand. Each lesson features learning components such
as Marketing Vocabulary and Marketer’s Concepts, Self-Reflection, and Marketer’s Expertise
which provide opportunities for students to analyze and discuss marketing concepts and strategies
as they are applied in real-life scenarios. Through blended learning, the students are expected to
gain valuable insights from the discussions, preparing them to engage in effective marketing
planning and decision making.
To facilitate academic performance: Unit evaluations will make sure that learners can express
skills and content in written form. Mid-term and Final Performance Tasks will allow learners to
apply their knowledge and skills to diverse real-life learning situations. Finally, Quarterly
Examinations (QE) will measure learning at the end of every quarter.
The RIGHT Learning Kit is made, revised, and lay-out by MS. ARLENE A. MIGUEL, LPT,
MBA and MR. JAMES G. COLONIA, LPT of the ABM Program from the Ateneo de
Zamboanga University – Senior High School for the school year 2023-2024.
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Contents
Preface ............................................................................................................................................ iii
COURSE OUTLINE ...................................................................................................................... vi
UNIT I. MARKETING PRINCIPLES AND STRATEGIES, CUSTOMER RELATIONSHIP:
CUSTOMER SERVICE, AND MARKET OPPORTUNITY ANALYSIS AND CONSUMER
ANALYSIS ..................................................................................................................................... 1
Lesson 1. Marketing Principles and Strategies ............................................................................... 1
CONTEXT ...................................................................................................................................... 1
EXPERIENCE ................................................................................................................................ 1
Prelection .................................................................................................................................... 1
Concept Notes ............................................................................................................................. 2
Guided Practice ........................................................................................................................... 9
REFLECTION-ACTION .............................................................................................................. 10
EVALUATION ............................................................................................................................. 10
Lesson 2. Customer Relationship: Customer Service ................................................................... 11
CONTEXT .................................................................................................................................... 11
EXPERIENCE .............................................................................................................................. 11
Prelection .................................................................................................................................. 11
Concept Notes ........................................................................................................................... 11
Guided Practice ......................................................................................................................... 15
EVALUATION ............................................................................................................................. 16
Lesson 3. Market Opportunity Analysis and Consumer Analysis ................................................ 17
CONTEXT .................................................................................................................................... 17
EXPERIENCE .............................................................................................................................. 17
Prelection .................................................................................................................................. 17
Concept Notes ........................................................................................................................... 18
Guided Practice ......................................................................................................................... 37
EVALUATION ............................................................................................................................. 39
UNIT II. DEVELOPING THE MARKETING MIX, MANAGING THE MARKETING EFFORT
AND WORKSHOP AND PRESENTATION OF MARKETING PLAN ................................... 41
Lesson 4. Developing the Marketing Mix..................................................................................... 41
CONTEXT .................................................................................................................................... 41
EXPERIENCE .............................................................................................................................. 41
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Prelection .................................................................................................................................. 41
Concept Notes ........................................................................................................................... 42
Guided Practice ......................................................................................................................... 60
EVALUATION ............................................................................................................................. 61
Lesson 5. Workshop and Presentation of Marketing Plan ............................................................ 62
CONTEXT .................................................................................................................................... 62
EXPERIENCE .............................................................................................................................. 62
Prelection .................................................................................................................................. 62
Concept Notes ........................................................................................................................... 62
Guided Practice ......................................................................................................................... 67
EVALUATION ............................................................................................................................. 68
REFERENCES .............................................................................................................................. 70
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COURSE OUTLINE
Subject: ABM128 (Principles of Marketing)

Semester: FIRST
Midterm/Final Term
Inclusive Content/ Topic
Dates:
WEEK 1 SCHOLA BREVIS
Unit I. Marketing Principles and
Strategies, Customer Relationship:
Customer Service, and Market Opportunity Analysis and
Consumer Analysis
WEEK 2 Lesson 1. Marketing Principles And Strategies
Formative Assessments:
Prelection: Picture Prompt
Guided Practice: Group Activity- Let’s Do This: Starbucks Marketing Strategy
and Individual Activity (Self-Test)
Reflection-Action: My Marketing Idea!
WEEK 3 Summative Assessments: Short Quiz (First Session)
QUIZ 1- Lesson 1 (30 points)
Test I. Fill in the Blanks (20 Points)
Test II. Short Response (10 Points)
WEEK 4 Lesson 2. Customer Relationship: Customer Service
Prelection: Patronizing a Product
Guided Practice: Group Activity- What I Learned: Customer Relationship and
Customer Service and Individual Activity (Self-Test)
Reflection-Action: Customer Relationship Experience
WEEK 5 Summative Assessments: Short Quiz (Second Session)
Test II. Customer Satisfaction (15 Points)
WEEK 6 Lesson 3. Market Opportunity Analysis And Consumer Analysis
Prelection: Market and Opportunity Trends
Guided Practice: Group Activity- The Marketing Microenvironment and
Macroenvironment of a Local Business and Individual Activity (Self-Test)
Reflection-Action: Positive Thoughts
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Unit II. Developing The Marketing Mix, Managing The Marketing Effort
and Workshop and Presentation of Marketing Plan
WEEK 7 Lesson 4. Developing The Marketing Mix

Prelection: Watson’s Marketing Mix
Guided Practice: Group Activity- Marketing Mix and Individual Activity
(Self-Test)
Reflection-Action: Marketing Mix Take-Aways
WEEK 8 Summative Assessments: Short Quiz (Second Session)
Test II. Target Market (10 Points)
Test III. True or False (10 points)
WEEK 9 PERFORMANCE TASK
Macro and Micro Environment Analysis: Accountancy, Business, and
Management Strand of Ateneo de Zamboanga University Senior High School
Redirecting on Comprehensive Application of Knowledge and Integration of
New Technology in Upgrading its Curriculum in a Contemporary Approach
(ABM123,ABM125,ABM127 and ABM128)
WEEK 10 MIDTERM EXAMINATIONS
WEEK 11 Lesson 4. Developing The Marketing Mix

Prelection: Watson’s Marketing Mix
Guided Practice: Group Activity- Marketing Mix and Individual Activity
(Self-Test)
Reflection-Action: Marketing Mix Take-Aways
WEEK 12 Summative Assessments: Long Quiz (Second Session) QUIZ
4- Lesson 4 (50 points)
Test I. Identifications (20 Points)
Test II. Word Search (20 Points)
Test III. Short Answer (10 points)
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WEEK 13 Lesson 5. Workshop And Presentation Of Marketing Plan
Prelection: Unscramble the Marketing Plan Terms
Guided Practice: Group Activity- Mind Map and Individual Activity (Self-Test)
Reflection-Action: My Learning from the Course
WEEK 14
CONSULTATION
WEEK 15 Summative Assessments: Long Quiz (Second Session)

Test I. Word Scrabble (15 Points)
Test II. Enumeration (20 Points)
WEEK 16 PERFORMANCE TASK & FPBA
Case Study- Defense and Submission: Accountancy, Business, and

Management Strand of Ateneo de Zamboanga University Senior High School
Redirecting on Comprehensive Application of Knowledge and Integration of
New Technology in Upgrading its Curriculum in a Contemporary Approach
(ABM123,ABM125,ABM127 and ABM128)
WEEK 17 Review Week + Post-Assessment
WEEK 18 FINAL TERM EXAMINATIONS
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UNIT I. MARKETING PRINCIPLES AND STRATEGIES,
CUSTOMER RELATIONSHIP: CUSTOMER SERVICE, AND
MARKET OPPORTUNITY ANALYSIS AND CONSUMER
ANALYSIS
Lesson 1. Marketing Principles and Strategies
CONTEXT
Learning Competencies
At the end of the lesson, the student can:
1. define and understand marketing
a. Principles
b. Goals
c. Approaches
Value Integration: Competence
EXPERIENCE
Prelection
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Concept Notes
Definition of Marketing
Broadly defined, marketing is a social and managerial process by which individuals and
organizations obtain what they need and want through creating and exchanging value with others.
In a narrower business context, marketing involves building profitable, value laden exchange
relationships with customers. Hence, we define marketing as the process by which companies
create value for customers and build strong customer relationships in order to capture value from
customers in return. (Kotler and Armstrong, 2012, p. 5)
Another definition of Marketing is the activity, set

of institutions, and processes for creating,
communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large according to the
American Marketing Association (AMA).
(Baquillas, 2017, p. 3)
Image source: canva.com
Principles of Marketing
The marketing mix is one of the major concepts in modern marketing. The marketing mix is the
set of tactical marketing tools that the firm blends to produce the response it wants in the target
market. The marketing mix consists of everything the firm can do to influence the demand for its
product. The many possibilities can be collected into four groups of variables—the four Ps. (Kotler
and Armstrong, 2012, p. 51)
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Product
Product is about creating value. A product can be goods or services that are offered to the market.
Goods are items that you can touch physically, hence they are called tangible products. While, and
services are intangible benefits a customer enjoys that are performed by people or machines.
(Baquillas, 2017, pp. 5-6)
Today, as products and services become more commoditized, many companies are moving to a
new level in creating value for their customers. To differentiate their offers, beyond simply making
products and delivering services, they are creating and managing customer experiences with their
brands or companies. (Kotler and Armstrong, 2012, p. 224)
Price
Price captures the value of a product's offering when you put a price tag that equates to the benefits
the product offers to customers. When you go to school, you are not only spending money on
tuition. You are also spending your time and effort to pass your subjects so you can graduate.
( Baquillas, 2017, p.7)
A price has been the major factor affecting buyer choice. A price still remains one of the most
important elements that determines a firm’s
market share and profitability. It is the only
element in the marketing mix that produces
revenue. Price is also one of the most
flexible marketing mix elements. At the
same time, pricing is the number-one
problem facing many marketing executives,
and many companies do not handle pricing
well. Some managers view pricing as a big
https://i.ytimg.com/vi/Ye0WG8zZUr
o/maxresdefault.jpg
headache, preferring instead to focus on
other marketing mix elements. However,
smart managers treat pricing as a key strategic tool for creating and capturing customer value. In
pricing, no matter what the state of the economy, companies should sell value, not price. (Kotler
and Armstrong, 2012, p. 290)
Place
Place includes the necessary

activities to make the products
available to consumers. Companies
are concerned about where they sell
their products. Goods and services
are now normally offered in malls
where there are supermarkets for
groceries, boutique stores for
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apparels, spas for massage therapies, and clinics for medical consultations. (Baquillas, 2017,pp. 8-
9)
Place in the marketing mix encompasses the entire process of taking a product from the
manufacturer and making it accessible to the consumer, which can include all intermediaries and
distributors. This can include both in-person and online places, such as storefronts and websites.
Promotion
Promotion is the component that informs, persuades, and reminds potential buyers of the value
they can get from the product. Being creative is at the heart of this component. You constantly see
products being advertised on TV billboards, magazines and newspapers, inside the malls, and
practically everywhere. It outlines the tactics you'll use to raise awareness about your product and
get people interested in buying it. The goal of a promotion strategy is to introduce potential
customers to your product and convince them to make a purchase.
Goals of Marketing
Marketing goals are

statements of what results the
company wants to achieve
with its marketing efforts.
Just like any other goal,
marketing goals should be
clear. Goals must be credible
and realistic as well.
(Camilar-Serrano, 2016, p.
17)
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Marketing Goals vs. Marketing Objectives
Marketing Goals. These are top-level broad goals to show how the business can benefit from
channels. So, goals are the broad aims used to shape strategy. They describe how marketing will
contribute to the business in key areas of growing sales, communicating with audiences and saving
money.(Camilar-Serrano, 2016, p. 18).
Marketing Objectives. Specific SMART objectives to give clear direction and commercial
targets. Objectives are the SMART targets for marketing which can be used to track performance
against targets.(Camilar-Serrano, 2016, p. 18)
SMART stands for:
Marketing KPIs. Key Performance

Indicators (KPIs) are used to check that the
marketing activities of a company are on track.
KPIs are specific metrics which are used to
track performance to make sure the firm is on
track to meet specific objectives.
In a diagram, the relationship defining goals,

objectives and KPIs is as follows:
Goals of Marketing
Companies may add other goals, but they must be thought carefully. Here are some examples of
noteworthy goals:
1. Identifying target market - Target market is the segment of the market most likely to
purchase the firm’s products or services. The marketing goal can be to use market research
to pinpoint specific demographic characteristics, such as age, gender, income and
educational level that help identify the ideal customer.
2. Increasing sales and profits - one major goal of any company’s marketing. The first step
in increasing sales and profits is to set a target and time frame for increasing them. For
example, the firm may want to increase sales and profits by 5% each in the current quarter.
3. Increasing brand awareness - Consumer product companies often run far- reaching
advertising campaigns to build brand awareness or consumers’ awareness which are aided
and unaided. Aided awareness means consumers recognize a brand name when someone
mentions it. Unaided brand awareness is when consumers think of a particular brand when
they need a product.
4. Increasing Market Share - Companies also create various marketing strategies to increase
market share, which is the percentage of unit and peso sales a company handles in their
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industry. One way to build market share is by using a lower pricing strategy, especially
when introducing new products.
5. Countering competitive strategies - There are times when the marketing goal will be to
counter a competitive strategy. For example, a plumbing competitor may be aggressively
adding lots of new lavatories and vessels to its product line to gain more exposure in kitchen
and bath showrooms.
6. Reputation- Companies should strive for a good reputation. A company’s main

reputational goals should be fourfold which are to be:
a. The supplier of choice to customers

b. The employer of choice to employees
c. The partner of choice to distributors, and
d. The company of choice to investors
7. Increasing distribution channels - distributions are the methods used to get the
company’s products into the hands of consumers, such as selling them through retail outlets
or making them available online. The more distribution channels available, the more ways
customers have to make a purchase and the greater chances are of making a sale. (Camilar-
Serrano, 2016, pp. 21-22)
Approaches to Marketing
A. Traditional Approaches. It focuses on identifying the right customer and understanding

their attitudes, behaviors, and motivations to encourage purchase (Villet, 2013)
To appreciate how the 4Ps can be made relevant to the consumers, we need to look at the 4 Ps
from the customer’s perspective. Lauterborn (1993) names it as the 4Cs (Kar, 2011). (Chua-
Delayco, 2016, p. 102)
The 4Cs are defined below: (Chua-Delayco, 2016, p. 102)

 Customer’s needs - this refers to the needs that have to be satisfied
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 Customer’s cost - this refers to the value that has to be given up by the customer
to be able to acquire the product that can satisfy his need.
 Customer’s convenience- This refers to the ease of acquiring or getting a product
that can satisfy his need.
 Communication to customer- This refers to the information that reaches the
consumer to be aware about a product that can satisfy his need.
B. Contemporary Approaches. The focus of contemporary marketing extends beyond

merely attracting new customers. Today's marketing strategies also include instilling customer
loyalty and a sense of brand devotion, thereby creating a more sustainable business model. A
healthy contemporary marketing strategy includes prioritizing the needs and desires of consumers
and creating a product or service that satisfies the needs. (“Contemporary Approaches to
Marketing”)
1. Remodeled Marketing Mix. In this remodeled marketing mix, Dr. Roberto distinguishes
the base P from the support Ps. The base P is the product which is the value offering. Then,
the other Ps are classified as the three support Ps. This is responsible for bringing the base
P to the target market:
 Placement (to make the product available)
 Pricing (to make it affordable)
 Promotion (to get the target consumers to know, want, and buy the product)
2. From 4Ps to 7Ps. The approaches in marketing are continuously evolving to respond to
the changing environment, one of which is technology and its use (computer databases,
app advertising, and use of social media).
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https://www.smartinsights.com/traffic-building-strategy/offer-and-
message-development/aida-model/
In this approach the 4Ps was redefined in 1981 to the 7Ps by Booms and Bitner, as cited by Villet
(2013), by adding process, people, and physical environment to the model. (Chua-Delayco, 2016,
p. 103)
A relevant theory for technology and its use is the AIDA (awareness, interest, desire, and action)
model. In marketing, we use the acronym AIDA to refer to the engagement stages that a consumer
goes through when exposed to marketing communication. (Chua-Delayco, 2016, p.103)
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Guided Practice
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REFLECTION-ACTION
EVALUATION
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Lesson 2. Customer Relationship: Customer Service
CONTEXT
1. define “relationship marketing”
2. explain the value of customers
Value Integration: Competence, Character, and Culture
EXPERIENCE
Prelection
Concept Notes
Definition of Relationship Marketing
Customer relationship marketing is perhaps the most important concept of modern marketing.
Some marketers define it narrowly as a customer data management activity (a practice called
CRM). By this definition, it involves managing detailed information about individual customers
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and carefully managing customer “touch
points” to maximize customer loyalty.
Most marketers, however, give the
concept of customer relationship
management a broader meaning. A
customer relationship management is the
overall process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction. It deals
with all aspects of acquiring, keeping, and
growing customers. (Kotler and Armstrong, 2012, p. 12)
The key to building lasting customer relationships is to create superior customer value and
satisfaction. Satisfied customers are more likely to be loyal customers and give the company a
larger share of their business.
Benefits of Relationship Marketing

(Camilar-Serrano, 2016, pp. 55-57)
1. Understanding customer characteristics - relationship marketing helps the company

understand its customer better. It also helps the company get valuable feedback from its
customers and understand their needs and expectations.
2. Delivery and meeting expectations - if the company knows what its customers’ needs are,
it will help reduce wastage due to trial and error methods. When required product features
and specifications are known, it is easier to make modifications that will please customers
and increase sales turnover.
3. Repeat Business- people would not be interested in getting involved in any business
transaction with a seller who appears rude or indifferent to their needs. People buying
wouldn’t feel any special need to resist switching sellers if they are not given an incentive
to stay bounded.
4. Prevents negative transition- trust and loyalty go hand in hand and it is super beneficial
for all business. It will help prevent customers from turning to competitors. Enhancing and
maintaining relationships with existing customers will prevent the tendency of customers
to switch to other products/services for a better offer.
5. Word-of-mouth marketing- A happy customer will always promote business by telling
ten other people about the amazing services or performance received from a company.
Research suggests that people are more motivated to try a new product/service based on
reviews from an existing customer they know than they will be from persuasion by
advertisements.
6. Increasing customer base- It is no secret that a happy customer will bring in new ones.
Apart from customer referrals, there are several other ways to increase customer
satisfaction by employing methods of utilizing social networking websites, blogs, informal
surveys, benefits on loyalty cards, timely response to complaints and requests as a constant
reminder of its presence around customers through consistent communication.
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7. Reduced marketing costs- benefits also include lesser marketing costs and more value
creation. This can be explained by stating the following statistics: Every 5% increase in
customer retention can increase a company’s annual profits at least 25% to as much as
125%, while simultaneously leading to a reduction of 10% in marketing costs.
8. Minimization of customer price sensitivity- A happy customer will be willing to pay
more for a product if there is a guaranteed satisfaction of products and after sales services
attached to the price. Hence, a company will gain repeat business from its existing
customers in the long term even if there is a rise in prices at which it sells its products and
services.
9. Identification with the company- The benefits are reaped both by the company and the
customers. It helps customers identify more with the company. Staying in touch with
customers makes them feel like they are important to the company.
10. Product market expansion- this one is tricky and most companies fail to recognize this
benefit. The company’s employees must be ready to deliver beyond the company’s
boundaries on customer demand. A company that is willing to venture outside its set
boundaries, can constantly grow with the support of its customers through this marketing.
The Value of Customers
Customer value and customer satisfaction are key building blocks for developing and managing
customer relationships. (Kotler and Armstrong, 2012, p. 12-13)
Customer value is the relationship between benefits and the costs including money, stress, and
time to sacrifice that is necessary to get those benefits. Or simply stated in a mathematical
equation: Benefits-Cost=Customer Value. (Camilar-Serrano, 2016, p.65).
In customer value, attracting and retaining customers can be a difficult task. Customers often face
a bewildering array of products and services from which to choose. A customer buys from the firm
that offers the highest customer-perceived value—the customer’s evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of competing offers.
Importantly, customers often do not judge values and costs “accurately” or “objectively.” They
act on perceived value.
Customer satisfaction depends on the product’s perceived performance relative to a buyer’s

expectations. If the product’s performance falls short of expectations, the customer is dissatisfied.
If performance matches expectations, the customer is satisfied. If performance exceeds
expectations, the customer is highly satisfied or delighted. Outstanding marketing companies go
out of their way to keep important customers satisfied. Most studies show that higher levels of
customer satisfaction lead to greater customer loyalty, which in turn results in better company
performance.
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Examples of Companies Using Relationship Marketing
Characteristics of Good Customer Service
Good customer service makes a customer feel special and unique, and this comes right down to
efforts made and behavior exhibited by the company and also the marketing staff.
1. Promptness is the promise for delivery of products must be on time. Delays and
cancellations of products should be avoided.
2. Politeness is almost a lost art. The importance of courtesy such as saying 'hello,' 'good
afternoon,' 'sir,' and 'thank you very much' are a part of good customer service. For any
business, using good manners is appropriate whether the customer makes a purchase or
not.
3. Professionalism refers to all customers who should be treated professionally, which means
the use of competence or skill expected of the professional. Professionalism shows the
customer they're cared for.
4. Personalization like using the customer's name is very effective in producing loyalty.
Customers like the idea that whom they do business with knows them on a personal level.
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Guided Practice
What I learned!
Customer Relationship/Customer Service
Form a group of six or seven members. Complete the table
below.
Understand the following statements and give your
reaction based on your understanding of what a customer
relationship and customer service are.
REACTION/S I agree or
STATEMENT/DEFINITION disagree… and why?
1. Customer service is the

interaction between the buyer of a
product and the company that
sells it.
2. Good customer service is

critical to business success,
ensuring brand loyalty one
customer at a time.
3. Recent innovations have

focused on automating customer
service systems but the human
element is, in some cases,
indispensable.
4. Companies must be very

observant even from the very first
encounter of customers with the
product or services.
5. Most of the Philippine

businesses invest in this customer
service strategy.
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REFLECTION-ACTION
EVALUATION
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Lesson 3. Market Opportunity Analysis and Consumer Analysis
CONTEXT
1. distinguish between strategic and marketing planning in terms of objectives
and processes
2. analyze the elements of macro- and micro-environment and their influence to
marketing planning
3. define marketing research, its importance to a business enterprise and identify
the steps in marketing research
4. differentiate the buying behavior and decision making of individual/
household customer versus the business (organizational) customer
5. identify and segment market for a product or service
6. select the appropriate target market segment and its positioning
Value Integration: Competence and Culture
EXPERIENCE
Prelection
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Concept Notes
Strategic and Marketing Planning Objectives and Processes
Strategic Planning is a process by which the company defines the general direction it will take
and translates this into broadly defined goals. It begins with defining the mission of the company,
then setting objectives and goals, and finally, designing its business portfolio. (Te, Baltazar-Marte,
Abrina, 2018, p. 52)
The company must first define its mission as a business. The following are some examples.
Then, the company needs to set its overall company objectives at the corporate level, which are
then translated into the respective department’s objectives and goals. Finally, after setting realistic
objectives and goals per department, the collective products and businesses to offer on the market
can then be designed. This collection of businesses that the company owns is referred to as a
business portfolio.(Te, Baltazar-Marte, Abrina, 2018, p. 52).
Strategic Marketing vs. Tactical Marketing
If there is a strategy, then there are tactics. Strategy and tactics are usually interchangeably used
when talking about an objective. But while the two words may seem synonymous, they mean
different things, especially in marketing. The strategy is the direction towards the goal. Tactics are
the actions taken to support the strategy. Simply put, strategy refers to the plan to achieve a goal,
while a tactic is how you execute the plan.
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Strategic Marketing
Strategic marketing is a well-defined general plan. It is the process of planning, developing, and
implementing thought-out courses of action to attain a competitive edge in a company's chosen
niche. Strategic planning in marketing focuses on the long-term goals of the company. A company
should do a situation analysis to secure a definite share of the market, ensure they identify its
mission, survey the industry situation, define specific objectives, and develop, implement, and
evaluate a plan to guarantee they can provide their customers with the products they need and
when they need them. Of course, the fundamental objective of any company or business will be
customer satisfaction so they may dominate the market and become leaders in their industry, thus
providing substantial business satisfaction.
Three Phases of Strategic Marketing Process
1. The Planning Phase. This is the most important phase as it analyzes internal strengths and
weaknesses, external completion, changes in technology, industry culture shifts and
provides the overall picture of the organization operation. Its key components are:
● Defining SWOT analysis or situation analysis (PEST analysis and Porter’s five
forces analysis)
● The marketing program focuses on the “how” aspect of 4Ps (product, place, price,
and promotion)
● Market-product focus and goal setting, the 4Ps strategy
2. The Implementation Phase. This is the action of the process. Companies ensure that they
will be able to carry out the plan so that the hours spent on planning will not be wasted.
The four components of this phase are:
● Obtaining financial resources
● Designing marketing organization
● Developing planning schedules
● Executing the marketing plan
3. The Evaluation or Control Phase. This is the checking phase of the strategic marketing
process. It involves ensuring that the results of the implementation or program are in line
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with the goals set. To evaluate the effectiveness of the company’s marketing strategy, they
must pay attention to:
● Strategy versus tactic, or the defined goals and actions to achieve goals
● Measurable versus vague, or milestones of the achieved goals
● Actionable versus contingent, avoid dependency on outside forces
● The marketing strategy should be backed by a business plan with tactical moves to
accomplish goal
Tactical Marketing
Tactical marketing refers to the actions taken on by a company to execute the planned strategy.
It is also described as a detailed action program covering a short-term period. Tactical marketing
centers on the details necessary to achieve that goal. It focuses on short-term specific actions,
bringing the company closer to established strategic plans.
In preparing an action plan, tactical marketing must focus on winning and keeping customers. Its
strategy includes numbers, facts, and objectives. A good action plan lays out all the tools and
tactics to be used to achieve sales goals. An action plan for marketing is prepared for the following
purposes:
● it enlists all the marketing activities that are needed to be done by a company every
month;
● it helps in identifying the marketing tools that should be used for specific marketing
processes;
● it helps the company to be ready for the costs of different marketing plans;
● it helps the marketing department to be aware of the items that they need to do and
the deadlines for those items to be implemented; and
● it serves as a guide in all the marketing needs of the company and it can also show
the needed work to be done to achieve these needs.
Marketing budgets possibly be difficult to establish for both small and large businesses. If you're
a small business, you may wonder which marketing expenses you should start reviewing. If you're
a large business, having multiple marketing teams or operations can make it harder to ensure that
everyone across the department gets what they need. To create a marketing budget, consider the
following:
● Know your buyer's journey.

● Align your budget with your marketing goals.
● Beware of hidden costs.
● Remember where your priorities lie.
● Spend your budget smartly.
● Prepare to measure ROI (return on investment)
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Developing Marketing Objectives and Marketing Strategies
A marketing objective states what is to be accomplished through marketing activities. These

objectives can be given in terms of product introduction, product improvement or innovation, sales
volume, profitability, market share, pricing, distribution, advertising, or employee training
activities. (Pride, Ferrell, 2017, pp. 27-28)
It should possess certain characteristics.
a. First, a marketing objective should be expressed in clear, simple terms so all marketing
and non-marketing personnel in the company understand exactly what they are trying to
achieve.
b. Second, an objective should be measurable, which allows the organization to track
progress and compare outcomes against beginning benchmarks.
c. Third, a marketing objective should specify a timeframe for its accomplishment, such
as six months or one year.
d. Finally, it should be consistent with both business-unit or corporate strategies. This
ensures that the company’s mission is carried out consistently at all levels of the
organization by all personnel. Marketing objectives should be achievable and use company
resources effectively, and successful accomplishment should contribute to the overall
corporate strategy.
A marketing strategy is a plan of action for identifying and analyzing a target market and
developing a marketing mix to meet the needs of that market.
Selecting an appropriate target market may be the most important decision a company makes in
the strategic planning process and is crucial for strategic success. The target must be chosen before
the organization can adapt its marketing mix to meet the customers’ needs and preferences. If a
company selects the wrong target market, all other marketing decisions are likely to be in vain.
Marketers should determine whether a selected target market aligns with the company’s overall
mission and objectives.(Pride, Ferrell, 2017, pp. 28-29)
Elements of Macro and Micro- Environment Influencing Marketing Planning
The Marketing Microenvironment
The marketing microenvironment includes forces that are internal to the company or those that are
relevant to its operation. It is composed of the company itself, its suppliers, market intermediaries,
customers, competition, and its various publics. (So.,Torres, 2016, pp.33-34)
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1. The Company.
Marketing may be the
“lifeblood” of an organization,
but it cannot exist
independently of other
organizational functions.
These functions include
research and development,
finance, operations, and
human resources. Marketing
cannot function in a vacuum as
marketing decisions must
always be aligned with the
organization’s goals and
strategies.
2. Suppliers. Suppliers provide raw materials, utilities, labor, capital, and equipment. The
availability and prices of these supplies should be monitored. Effective partnership or
relationship management with suppliers is essential. The performance of suppliers can
directly impact an organization’s ability to continuously satisfy its consumers. Substandard
raw materials will negatively affect product quality, and the unstable supply process may
hurt profits and affect the organization’s ability to provide superior value to customers.
3. Market Intermediaries. Intermediaries are channels that link the organization to its
customers. Most products are delivered and distributed to customers through
intermediaries. The most common intermediaries include agents, wholesalers, and
retailers; marketing services agencies; physical distribution companies; and financial
institutions. Also referred to as middlemen. Aside from distribution, market intermediaries
also help in the promotion of products.
4. Customers. Today marketing of a firm begins and also ends with the customers.Customers
create the demand for products and services. They can either be customers or end-users,
businesses, or organizations. Marketers must keep a close watch on both customers and
consumers of products and services. It must monitor and track any changes in the tastes
and preferences of the consumer, along with changes in the buying habits of the customer.
According to Peter. F. Drucker, “There is only one valid definition of business purpose,
which is to create a customer.” The business enterprises aim to earn profit through serving
the customer demand. It now thinks more in terms of profitable sales rather than more sales
volume for its sake. (Micro Environment of Business: 6 Factors of Micro Environment of
Business, n.d.)
5. Competitors. The demand for a company’s products and services is affected by the nature
and intensity of competition. Any company which is a rival of another. Direct competitors
are companies who offer the same products and services aimed at the same target market
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and customer base. Indirect competitors are companies that offer the same products and
services, but the end goals are different. One of the most effective ways to attract customers
away from competitors is not only to offer something unique, but also something that you
know is missing from the market.
Types of Competitors (Pride, Ferrell, 2017 ,pp. 47-48)
a. Brand competitors- firms that market products with similar features and benefits
at the same customers at similar prices
b. Product competitors- forms that compete in the same product class but market
products with different features, benefits, and prices.
c. Generic competitors- firms that provide very different products that solve the
same problem or satisfy the same basic customer need
d. Total budget competitors- Firms that compete for the limited financial resources
of the same customers
6. Public. Publics may include any individual or entity with an actual or potential interest in
the company and its products or services. These include the shareholders, the community,
financial institutions, media, the government, and society.(So, Torres, 2016, p. 34).
The seven types of publics are:
a. The financial public impacts the company’s ability to acquire funds like banks,
investors or stockholders, and others.
b. The media publics carries news, features, and editorial opinion
c. Government publics’ government updates such as; legal matters, new policies,
etc.
d. Citizen-action publics are minority groups, environmental groups, any other
related groups that may query the company’s marketing decisions
e. Local publics are residents and community organizations taking care of
community issues and
f. The general public is the public’s image of the company that influences its buying
behavior
g. Internal publics include workers, managers, volunteers, and board of directors
The Marketing Macro Environment
In business, the macroenvironment refers to the economic, politico-legal, sociocultural,

demographic, technological, and natural environments. (So, Torres, 2016, pp. 35-36)
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1. Economic Environment. The economic
environment represents economic factors that can
directly affect an organization. Examples of these are
inflation rate, foreign exchange rates, consumer
spending shifts, and consumer price index. Economic
factors are significant because they indicate the cost of
doing business as well as consumer buying power.
2. Political Environment. The political

environment includes both political and legal factors.
A highly uncertain political situation, such as
impending national election, may affect
the stability of businesses. A new administration may
have different economic and monetary priorities and may favor a divergent legislative
agenda.
3. Socio-Cultural Environment. Each geographical area has a specific culture that dictates how
business is conducted. Culture is defined as the beliefs, customs, arts, etc., of a particular
society, group, place, or time. Any elements of the production process or any products or
services that are harmful to society should be eliminated to show your organization is taking
social responsibility. A recent example of this is the environment and how many sectors are
being forced to review their products and services to become more environmentally friendly.
4. Demographic Environment. A company’s demographic macroenvironment consists of

changes in population characteristics. These include population rate, gender, age, income,
composition patterns, civil status, and family size.
5. Technological Environment. The technological environment is composed of current and

impending technological change. This is sometimes the single factor that can cause the rapid
acceleration or bring about the untimely demise of products, services, or companies.
6. Natural Environment. The natural environment refers to natural resource inputs and
environmental concerns. The uncontrolled use of finite natural resources including fossil fuel
in organizational activities has heightened concern for the sustainability of the natural
environment. Other equally pressing issues are pollution, global warming, and the rampant
denudation of forests. Although legislation is in place, the preservation of the natural
environment is a major factor to consider in a company’s activities.
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Marketing Research
Marketing research is the function responsible for acquiring and evaluating market and
consumer-based information for decision making and the determination of marketing strategic
direction. (So, Torres, 2017, p. 37) It is the process of collecting and analyzing data to address a
specific marketing program. To develop successful strategies and action programs, marketers
require current information about the environment, the competition, and the market segments to
be served. Marketing research helps marketers learn more about their customers’ requirements,
expectations, perceptions, and satisfaction levels.
Importance to a Business Enterprise
Companies have complete information about their products from production to distribution.
However, it is a challenge for the companies to know what happens to the product after it is
purchased. Who uses the product, how it is used, how much or how little of it is used, and the
general attitudes of the consumer toward the product are not known explicitly.
Although marketing research can be costly, it is indispensable. The following are some of the
issues that can be addressed by marketing research:
● Identify viable new products and services

● Enable risk reduction
● Identify market opportunities and threats
● Determine the level of customer satisfaction
● Pinpoint and anticipate market trends or changes
● Decide on the best advertising medium
● Pre-test and post-test advertising and promotional campaigns
● Evaluate the results of test marketing
● Evaluate the results of packaging, brand name, and label testing
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● Determine consumer price awareness and sensitivity
● Undertake location studies
Steps in Marketing Research
Step 1: Research Need Determination
This initial step in the marketing research process is necessary in order to save effort, time, and
cost. The problem situation has to be assessed initially to determine if marketing research is needed
at all. The research may no longer be necessary if the required information for decision-making is
already available.
Step 2: Problem/Opportunity Definition
Both problems and opportunities can be subjects of marketing research. However, to set the
general research direction and operational parameters, the problem/opportunity must be defined in
precision.
Step 3: Establishment of Research Objectives
The purpose of research activities is to gather precise information to address information gaps.
Aside from their specific, research objectives must be clear, detailed, and operational.
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Step 4: Research Design Determination
At this step, methods and procedures for the collection and analysis of information must be
determined. There are four major types of marketing research designs:
a. Observational - social phenomenon is observed in its natural setting, and observations can
be made by one time or regularly within a period of time.
b. Experimental - includes laboratory experiments and test marketing. Results from two sets
of samples are compared.
c. Qualitative - includes focus groups, in-depth interviews, and projective techniques. This
type of research uses only a small number of respondents. Thus, results are not reflective
of the general population.
d. Quantitative - one example of this type of research is the use of surveys. It is used to test
observations. The number of respondents is relatively large and randomly selected, and the
results are generally reflective of the population.
Step 5: Information Source/Type Identification
The two basic types of information utilized in market research are primary and secondary
information.
a. Primary information refers to data gathered by the researcher himself/herself for the
specific research problem.
b. Secondary information is information acquired from previously conducted research,

journals, periodicals, and other similar sources.
Step 6: Determination of Data Access Methods
One of the most popular ways of data access in consumer surveys is through person-administered
surveys. This could either be administered through face-to-face or telephone interviews. A faster
method of data access is computer-administered surveys. This method likewise benefits from the
elimination of the need for time-consuming data tabulation, as computers can generate this
information in real time. A third method is self-administered surveys, where the respondents
complete the surveys on their own. A fourth data access method that utilizes multiple data methods
are hybrid surveys. This method is rather complex to develop and administer.
Step 7: Data Collection Forms Design
The survey questionnaire, which is the most common form used in data collection, must be
carefully and meticulously prepared. A typical survey questionnaire has the following major
parts:
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a. Introduction - contains a greeting, introduction, researcher introduction and affiliation,
purpose, and a statement assuring the respondent of confidentiality/anonymity.
b. Screening - are the series of questions designed to eliminate respondents who are not
qualified to take part in the survey.
c. Core- the body of the survey questionnaire
d. Classification- questions used to classify respondents into different groups for
stratification and analysis purposes.
Step 8: Sample Size and Sampling Plan Determination
In order to achieve 100% accuracy in the conduct of consumer surveys, it is ideal to give
questionnaires to every member of the target population. This type of survey is called census.
Step 9: Data Collection
This is the stage in the process where the questionnaires are administered to the selected
respondents. Although a seemingly mechanical step, some problems may arise in data collection
such as: fieldworker errors, break offs, item omission, or when a potential respondent refuses to
be a participant in the survey.
Step 10: Data Analysis
At this stage, collected data is summarized and generalized. The differences and relationships
between and among data are determined.
Step 11: Report Preparation and Presentation
The last step in the marketing research process is the preparation and presentation of the report
findings, interpretations, conclusions, and recommendations to marketing decision makers.
Buying Behavior and Decision Making of Individual/ Household Customer versus the
Business (Organizational) Customer
Consumer Behavior
Consumer behavior is the study of how people make decisions about what they buy, want, need
or act in regards to a product, service, or company. It is critical to understand consumer behavior
to know how potential customers will respond to a new product or service. It also helps companies
identify opportunities that are not currently met. (Camilar-Serrano, 2016, p. 151)
To fully understand how consumer behavior affects marketing, it’s vital to understand the three
factors that affect consumer behavior: psychological, personal, and social.
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1. Psychological Factors. Psychological factors can include perception of a need or situation,
the person’s ability to learn or understand information, and an individual’s attitude. Each
person will respond to a marketing message based on their perceptions and attitudes.
2. Personal Factors. Personal factors are characteristics that are specific to a person and may
not relate to other people within the same group. These characteristics may include how a
person makes decisions, their unique habits and interests, and opinions. When considering
personal factors, decisions are also influenced by age, gender, background, culture, and
other personal issues.
3. Social Factors. Social influencers are quite diverse and can include a person’s family,
social interaction, work or school communities, or any group of people a person is affiliated
with. It can also include a person’s social class, which involves income, living conditions,
and educational level. The social factors are very diverse and can be difficult to analyze
when developing marketing plans. (Camilar-Serrano, 2016, p. 152)
Describe Consumer Market
The consumer market pertains to buyers who purchase goods and services for consumption rather
than resale. However, not all consumers are alike in their tastes, preferences and buying habits due
to different characteristics that can distinguish certain consumers from others.
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In order to successfully reach their target market, marketers must have some idea of how much
time and effort consumers will put into a purchase decision.
1. Problem Recognition/Recognition of need. The recognition of need is the first and the
most important step in the
buying process. If there is no
need, there is no purchase. This
recognition happens when there
is a lag between the consumer’s
actual situation and the ideal and
desired
one.(Camilar-Serrano, 2016, p.
155-156)
The recognition of a need by a

consumer can be caused in
different ways. Different
classifications are used:
a. Internal Stimuli
(physiological need felt
by the individual as
hunger or thirst) which
oppose the external
stimuli such as exposure
to an advertisement, the
sight of a pretty dress in
a shop window or the mouth-watering smell of a chocolate cake when passing by a bakery.
b. Classification by Type of Needs:
1. Functional need- the need is related to a feature or specific functions of the product
or happens to be the answer to a functional problem.
2. Social need- the need comes from desire for integration and belongingness in the
social environment or for social recognition.
3. Need for change- the need has its origin in a desire from the consumer to change.
c. The Maslow’s Hierarchy of needs- developed by the eponymous psychologist, this one
of the best known and widely used classifications and representations for hierarchy of
needs.
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2. Information Search. Once the need is identified, it’s time for the consumer to seek
information about possible solutions to the problem. He will search more or less information
depending on the complexity of the choices to be made but also his level of involvement. (Camilar-
Serrano, 2016, p. 157)
3. Alternative Evaluation. Once the information is collected, the consumer will be able to
evaluate the different alternatives that offer to him, evaluate the most suitable to his needs and
choose the one he thinks it’s best for him.
In order to do so, he will evaluate their attributes in two aspects.
a. Objective characteristics- such the features and functionality of the product

b. Subjective characteristics- such as perception and perceived value of the brand by the
consumer or its reputation.
The consumer will then use the information previously collected and his perception or image of a
brand to establish a set of evaluation criteria, desirable or wanted features, classify the different
products available and evaluate which alternative has the most chance to satisfy him.
The process will lead to what is called the evoked set. The evoked set is the set of brands or
products with a probability of being purchased by the consumer. This is because the consumer has
a good image of it or the information collected is positive.
On the other hand, an inept set is the set of brands or products that have no chance of being
purchased by the shopper. This is because the consumer has a negative perception or has had a
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negative buying experience with the product in the past. While inert set is the set of brands or
products which the consumer has no specific opinion. (Camilar-Serrano, 2016, p. 157-158)
4. Purchase Decision. Now that the consumer has evaluated the different solutions and
products available to respond to his need, he will be able to choose the product or brand that seems
most appropriate to his needs. Then proceed to the actual purchase itself. His decision will depend
on the information and the selection made in the previous step based on the perceived value,
product’s features and capabilities that are important to him. But his consumer buying decision
process and his decision process may also depend or be affected by such things as the quality of
his shopping experience or of the store (or online shopping website), the availability of a
promotion, a return policy or good terms and conditions for sale.(Camilar-Serrano, 2016, p. 158)
5. Post-purchase behavior. Once the product is purchased and used, the consumer will
evaluate the adequacy with his original needs or whether he has made the right choice in buying
this product or not. He will feel either a sense of satisfaction for the product. On the contrary, he
will feel disappointed if the product has fallen far short of expectations.
Satisfaction on the product will influence his future decisions and buying behavior. If the product
has brought satisfaction to the consumer, he will then minimize stages of information search and
alternative evaluation for his next purchases in order to buy the same brand. In this manner, he
will become a loyal customer.
On the other hand, if the experience with the product was average or disappointing, the consumer
is going to repeat the 5 stages of the consumer buying decision process during his next purchase
but exclude the brand from his evoked set.(Camilar-Serrano, 2016, p. 158-159)
Describe Business Market
The business market comprises all the organizations that buy goods and services for use in the
production of other products and services that are sold, rented, or supplied to others. It also
includes retailing and wholesaling firms that acquire goods for the purpose of reselling or renting
them to others at a profit. In the business buying process, business buyers determine which
products and services their organizations need to purchase, and then find, evaluate, and choose
among alternative suppliers and brands.
Types of Business Purchase Decisions (Camilar-Serrano, 2016, p. 159, 161)
1. Straight Rebuy - These purchase situations involve routine ordering. In most cases buyers
simply reorder the same products or services that were previously purchased. In fact, many
large companies have programmed re-purchases into an automated ordering system that
initiates electronic orders when inventory falls below a certain predetermined level.
2. Modified Rebuy- These purchases occur when products or services previously considered
a straight repurchase are some reason now under a reevaluation process. There are many
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reasons why a product is moved to the status of a modified repurchase. Some of these
reasons include: end of purchase contract period, change in who is involved in making the
purchase, supplier is removed from an approved supplier list, mandate from top level of
organization to reevaluate all purchasing, or strong marketing effort by competitors.
3. New Task Purchase - As the name suggests, these purchases are ones the buyer has never
or rarely made before. In some ways new task purchases can be considered as either minor
or major depending on the total cost or overall importance of the purchase.
Segment Market for a Product or Service
Market Segmentation is the process of dividing a big market into smaller segments of buyers
with distinct needs, characteristics, or behaviors, so that they can be reached more efficiently and
effectively and offered with products that match their needs. (Baquillas, 2017, pp. 92-93)
Jennifer Maine identified the top five reasons for market segmentation and these are:
1. Better Satisfy Customer Needs and Wants - Segmentation allows the identification of
different customer segments and preferences. For a company that caters to different
consumer segments all at the same time, products can be suited to each segment’s
preferences. Consumers may change their preferences as they get older, but by identifying
these changes along the way, companies can provide solutions throughout the life “life
cycle” of the customer.
2. Better Communication- Different segments require different communication styles. By

identifying several segments and not justifying and not just blindly putting everyone
together into one segment, better marketing collateral may be created so they suit the style,
tone, and language of the segment.
3. Opportunity for Growth- there are some segments that do not normally buy a company’s
product. In such a case, a company can choose to cater to this segment by offering a
different product, so that this segment will not need to go to the competitor to find the
product that they need.
4. Increased Innovation- By segmenting the market, new needs may be discovered, which
in turn would lead to innovation in finding solutions to this need. A small segment of the
market with unique needs that are unsatisfied may be targeted with products that are sold
at a premium price.
5. Higher Profits/Market Share- A company that goes after several segments in the market
by offering different products is a company that increases its profits by increasing its
market share. With consumers having different but similar preferences, companies are able
to maximize their manufacturing potential by having products that are almost the same but
only differ in a few areas.
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The Most Common Bases for Market Segmentation
1. Geographic Segmentation. Geographic segmentation divides the market into

geographical units such as countries, regions, or cities.
Examples of geographic segmentation are:

a. Personal care brand
b. Fast-food brand
c. Local potato chips/bottled iced tea manufacturer
2. Demographic Segmentation. Demographic segmentation divides the market into

segments based on demographic variables such as age, gender, income, occupation, education,
religion, and others. This is a popular way of segmenting the market because they are easy to
measure and identify, and most consumer needs and wants can be easily associated with the
demographic characteristics of a segment. (Baquillas, 2017, p.94)
Examples of Demographic Segmentation are:

a. Age
b. Life Stage
c. Gender
d. Income
e. Religion
3. Psychographic Segmentation. Oftentimes, demographic segmentation is not enough to

understand a particular segment of the market. Companies use psychographic segmentation to
better understand consumers. This type of segmentation divides the market into segments based
on psychological or personality traits, lifestyles, and values. It combines psychological and
demographic characteristics of the market. It digs deeper into the customers’ aspirations, interests,
life goals, and lifestyles. (Baquillas, 2017, p. 96).
4. Behavioral Segmentation. In behavioral segmentation, the market is divided into

segments based on consumers’ knowledge of, attitude toward, use of, or response to a product.
Behavioral segmentation looks at several behavior variables: occasion, benefits sought, user status,
usage rate, and loyalty status. (Baquillas, 2017, p. 97).
Examples of Behavioral Variables for Behavioral Segmentation

a. Occasion
b. Benefits sought
c. User Status
d. Usage Rate
e. Loyalty status
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Selection of Appropriate Target Market Segment and its Positioning
While you can segment the market in any way that you want, there are several considerations for
it to be effective. First, the market segments have to be measurable and significant. They must be
big in market size or big in market value- either the population is big or the market has significant
purchasing power of the capacity to buy more expensive products. The market segments need to
be accessible for easier communication and delivery of goods. They also need to be differentiable,
which means that they react differently and have different needs and wants.
After segmentation, companies need to choose the right market segment or segments to pursue and
offer their products to. This is called targeting or target marketing.
Target Market Defined
A target market is a set of buyers who have common needs and characteristics that the company
decides to serve. In choosing the right segment for the product, a company may choose to do mass
marketing, multi-segment marketing, niche marketing, or one-to-one marketing. (Baquillas, 2017,
pp. 99-101)
1. Multi-segment Marketing. It focuses on two or more segments of the market in one

product category. For example, a big food manufacturer has different brands of cereals
catering to different tastes of the market.
2. Niche Marketing. In niche marketing, the company chooses to target a small market with
big purchasing power. Products marketed using niche marketing are almost always in the
premium category, and naturally dictates a higher price.
3. One-to-One Marketing. One-to-one marketing is the opposite of mass marketing. It

provides individualized attention to customers to build a long-lasting and personalized
relationship with them.
4. Mass Marketing. Mass marketing is a “one size fits all” approach that focuses on the
common concerns of a big market and targets them with one offer. Most products that use
mass marketing strategy focus on the most common need- to buy products at a low cost.
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Market Positioning Strategies
Companies want their consumers to

remember their brands in a positive light.
When consumers remember brands, there is
a higher chance that they will consider
buying these brands in their next purchase.
Positioning is placing a product’s distinct
characteristics- brand, offerings, endorser,
and history- in the consumers’ minds
relative to its competitors.
In order to position a product in the market,

the company has to decide on a
differentiation strategy or competitive
advantage. Competitive advantage is a
product’s advantage over its competitors
gained by offering consumers better value.
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Guided Practice
Group Activity: The Marketing Microenvironment and Macroenvironment of a Local

Business
PART I. Form Groups of five or six members and do the following.
A. Choose a local business in Zamboanga City (for example, a bakery, laundry shop, malls
etc.). Fill out the table with the required information.
Company Name Nature of Business
B. From your answers in Item A. Identify the stakeholders in the marketing microenvironment
and describe the nature of the company’s relationship with those stakeholders. Write your
answers in the table below.
The Stakeholders Nature of Relationship
1. __________________________________ 1. __________________________________
2. __________________________________ 2. __________________________________
3. __________________________________ 3. __________________________________
4. __________________________________ 4. __________________________________
5. __________________________________ 5. __________________________________
C. Enumerate the macroenvironmental forces below. For each one, identify one issue that may
present an opportunity for the identified local business, and another issue that can pose a
threat or have an adverse effect on the business.
Macro Environment Opportunity Threat
Political
Economic
Social
Technological
Legal and Regulatory
Environmental
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PART II. What have I learned so far? Discuss what you have learned so far about the lessons in
consumer analysis. Write your answers below. Afterwards, share with the class the group’s output.
1. How would you distinguish between individual and business customers' flow of buying
behavior and decision-making?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
2. How important is market segmentation in developing the brand positioning of the business?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
3. Applying your understanding about identifying the target market, who do you think is the target
market of the ABM strand? Explain your opinion.
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
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REFLECTION-ACTION
EVALUATION
39
40
UNIT II. DEVELOPING THE MARKETING MIX, MANAGING
THE MARKETING EFFORT AND WORKSHOP AND
PRESENTATION OF MARKETING PLAN
Lesson 4. Developing the Marketing Mix
CONTEXT
1. define a product and differentiates the product, services, and experiences
2. identify and describe the factors to consider when setting prices and new
product pricing and its general pricing approaches
3. discuss the structure of distribution channels, its functions, and the nature of
supply chain management
4. define and identify relevant promotional tools, namely, advertising, sales
promotion, personal selling, public relations, and direct marketing to create
awareness and persuade the target market to buy the product or patronize the
service
Value Integration: Competence and Character
EXPERIENCE
Prelection
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Concept Notes
Image source: Pearson

Cengage Marketing
The Product, Services, and Experiences
A marketing mix is a combination of tools you can use to satisfy customers and meet company
objectives. Developing the right marketing mix is essential to business success. Consumers
sometimes call a marketing mix "the offering" or "the offer." There are two basic steps you must
take before developing the marketing mix. The first is to identify your overall goal or marketing
strategy. The second is to identify your target audience. Then you can proceed to develop the
marketing mix.
A product is any goods, tangible or intangible, offered to the market or sold to customers for their
use or consumption. These products should satisfy customers’ needs and wants. Product is a
broadly defined term that also includes events, persons, places, organizations, ideas. Product,
simply defined, is anything in the form of good, service, or idea, whether tangible or intangible
that is sold to customers to satisfy their needs and wants in exchange for money or something of
value.
A. Product
What is a Product?
A product is anything that can be offered to a market for attention, acquisition, use, or
consumption which might satisfy a want or need. It includes physical objects, services, persons,
places, organizations, and ideas, or mixes of these entities. This includes physical objects, services,
events, persons, places, organizations, ideas, or combinations of the following.
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What is a Service?
Services are a form of product that consists of activities, benefits, or satisfaction offered for sale;
essentially intangible; do not result in ownership of anything. Examples include dermatologist,
hotels, banking, and etc.
A company’s offer to the marketplace often includes both tangible goods and services. The
continuum consists of:
1. A pure tangible good, such as soap

2. A tangible good with accompanying services such as automobiles that offer accompanying
repair services.
3. A hybrid offer consisting of equal parts of goods and services such as restaurants.
4. A service with accompanying minor goods such as airline trip with accompanying snacks
5. A pure service such as a doctor’s exam (Ac-ac, 2014, pp. 128-130)
6. Today, as products and services become more and more commoditized, many companies
are moving to a new level in creating value for their customers.
● To differentiate their offers, they are developing and delivering total
customer experiences
● Experiences are memorable while some products and services are not.
Many companies nowadays are moving to a new level in creating value for their customers as
products and services become more commoditized. Product differentiation is very important in
their marketing strategy. It is no longer only about the competition of products or services being
offered. The most important satisfaction is the customer “experiences” with the brand or the
company. Again, the product is not only about its tangible features. It can also include other market
offerings such as organizations, persons, places, and ideas. Companies’ marketing consists of
activities to create, maintain, or change the attitudes and behavior of customers depending on the
market trends.
Levels of Products and Services
1. Core product. It is the most basic level. It refers to the benefits of the products or services
to the customers. For example, the core product of smartphones is constant connectivity.
2. Actual product. This is when the marketer turns the core benefit into tangible
characteristics of the product. Promotions and packaging are the important factors in this level.
The customers’ perceptions identify how the company showcases its products and services without
losing the product benefits. Most of the high-quality products have the characteristics of this level.
Often customers are particular about the brand or image of the company.
3. Augmented Product. We notice marketers are offering add-ons to customers upon

purchasing the product. Initially, it is considered as part of a marketing tactic, but marketers or
companies are giving extra services to customers to make their purchase experiences satisfying.
Example: Jollibee, McDonald's, or any other fast-food store regularly uses an augmented level.
43
When developing products, marketers must :(Ac-ac, 2014, 130-131)
1. Identify the core consumer needs that the product will satisfy
2. Design the actual product
3. Find ways to augment the product in order to create the bundle of benefits that will provide
the most satisfying experience.
Product Classifications
Marketers have developed several product-classification schemes based on product characteristics.

(Ac-ac, 2014, pp. 131-132)
a. Consumer Products- are those bought by final consumers for personal consumption.
b. Convenience Products - are consumer products and services that the consumer usually
buys frequently, immediately, and with a minimum of comparison and buying effort. They
are usually low-priced, and marketers place them in many outlets to make them readily
available when customers need them.
c. Shopping Products - are consumer products that the consumer, in the process of selection
and purchase, characteristically compares on such bases as suitability, quality, price, and
style. Consumers spend time and effort in gathering information about these products.
d. Specialty Products- are consumer products with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special purchase
effort.
e. Unsought Products- are consumer products that the consumer either does not know about
or knows about but does not normally think of buying. Classic examples are like life
insurance, pension plan, and educational plan.
f. Industrial goods. These are products bought by individuals or companies for the creation
of new products sold to the market. The three groups of industrial products are:
a. Raw materials- include raw b. Capital goods- aid in the c. Supplies and
materials and manufactured buyer’s production or services- operating
materials and parts. Raw materials operations, including supplies (lubricants,
consist of farm products (wheat, installations and accessory coal, paper, pencils) and
cotton, livestock, fruits, vegetables) equipment, major purchases repair and maintenance
and natural products (fish, lumber, like generators, large computer items (paint, nails,
crude petroleum, iron ore) systems, elevators, etc. brooms)
Product Life Cycle
The product life cycle is composed of four stages: introduction, growth, maturity, and decline.
This concept is used by companies and by marketing experts as a factor in deciding when it is
44
appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging,
or perhaps drop the product already.
Service Marketing
Service marketing is marketing based on relationships and value. It may be used to market a
service or a product. With the increasing importance of services in the global economy, service
45
marketing has become a subject that needs to be studied separately. Marketing services are
different from marketing goods because of the unique characteristics of services, namely,
intangibility, heterogeneity, perishability, and inseparability. The defining characteristics of a
service are:
Types of Services
Core Services. A service that is the primary purpose of the transaction. An example: a haircut or
the services of a lawyer or teacher.
Supplementary Services. Some services are rendered as a corollary to the sale of a tangible
product. Home delivery options are offered by restaurants above a minimum bill value.
Marketing Strategies for Service Companies
If differentiation is important for new products, it’s even more important for service marketing. A
company must use strategies that consider the satisfaction of both employees and customers to be
able to sell their services.
46
Branding
A brand is a name, sign, symbol, or design, or a combination of these that identifies the maker or
seller of a product or service. Branding has become so strong that hardly anything goes unbranded.
Brand equity is the value of a brand, based on the extent to which it has high brand loyalty, name
awareness, perceived quality, strong brand associations, and other assets such as patents,
trademarks, and channel relationships. Powerful brand names command strong consumer
preference.
B. Price
Factors to Consider When Setting Prices and New Product Pricing and Its Approaches
Price is the amount of money charged for a product or service or the sum of the values that
consumers exchange for the benefits of having or using the product or service. All profit and non-
profit organizations must set prices on their products and services.
47
Major Pricing Strategies
For every product, the company has to choose a price for every product. But determining the price
can take many ways. Most importantly, it should follow a predetermined strategy. Three major
pricing strategies can be identified: customer value-based pricing, cost-based pricing, and
competition-based pricing.
1. Customer value-based pricing is setting the price based on buyers’ perceptions of value
rather than on the seller’s cost. Good pricing usually starts with customers and their perceptions
of value. Eventually, the customer will decide whether a product is worth its price or not. The
types of value-based pricing are:
2. Cost-based pricing refers to the company’s costs and is the primary consideration. It is
the setting of prices based on the costs for producing, distributing, and selling the product, plus a
fair rate of return for its effort and risk. The company must watch its costs carefully. If it costs the
company more than competitors to produce and sell a similar product, the company will need to
charge a higher price or make less profit, putting it at a competitive disadvantage. The types of
costs are:
48
New Product Pricing
Companies bringing out a new product face the challenge of setting prices for the first time. Two
new product pricing strategies are available:
1. Price-Skimming and Market-Penetration Pricing. Price-skimming. The first new

product pricing strategy is called price-skimming. It is also referred to as "market-skimming
pricing." It is setting a high price for a new product to skim maximum revenues layer by layer
from the segments willing to pay the high price; the company makes fewer but more profitable
sales. Examples are smartphones or Android phones. When they are first introduced, the selling
price in the market is much higher, but after 6 months, the price is marked down because new
updated versions are launched soon. Market skimming makes sense only under certain conditions.
a. First, the product’s quality and image must support its higher price and enough buyers must
want the product at that price.
b. Second, the costs of producing a smaller volume cannot be so high that they cancel the
advantage of charging more.
c. Finally, competitors should not be able to enter the market easily and undercut the high
price.
2. Market-Penetration Pricing. Rather than setting a high initial price to skim off small but
profitable market segments, some companies use market-penetration pricing. It refers to setting a
low price for a new product to attract a large number of buyers and a large market share.
49
Under Armour brand is a good example of a company that has demonstrated successful market
penetration. The company sells performance apparel, and in recent years it has surpassed Adidas
to become the number-two athletic-wear provider in the U.S. The company has persistently
focused on selling athletic footwear, clothing, and accessories, and was able to capture a leadership
position in the market with that strategy.
Product Mix Pricing
Most products are part of a broader product mix. Consequently, they must be priced accordingly.
Pricing is difficult because the various products have related demand and costs, and face different
degrees of competition. We now take a closer look at the five product mix pricing situations.
C. Place
Place, the third marketing tool, refers to the distribution or the methods and location you use for
your products or services to be easily accessible to the target customers. It is also referred to as
marketing channels or channels of distribution. Producing a product or service and making it
50
available to buyers requires building relationships, not just with customers, but also with key
suppliers “upstream” in the company’s supply chain, and distributors and resellers that act as
intermediaries to help move the product “downstream.”
● Upstream from the company is the

set of companies that supply the raw
materials, components, parts, information,
finances, and expertise needed to create a
product or service.
● Downstream marketing channel

partners, such as wholesalers and retailers,
form a vital connection between the company
and its customers.
Chains and channels comprise the value

delivery network. It is the network made up
of the company, suppliers, distributors, and
ultimately customers who partner with each
other to improve the performance of the
entire system in delivering customer value. The supply chain is the make-and-sell view of the
company or business, while the demand chain is the sense-and-respond view of the market.
Planning in this marketing mix should start by identifying the needs of target customers, to which
the company responds by organizing a chain of resources and activities to create customer value.
Structure of Distribution Channels
A distribution channel is a set of interdependent organizations involved in the process of making

a product or service available for use or consumption by the consumer or business user. A
distribution channel moves goods from producers to consumers. It overcomes the major time,
place, and possession gaps that separate goods and services from those who would use them.
Members of the marketing channel perform many key functions. They are:
1. Information gathering and distribution

2. Promotion
3. Contact with prospective buyers
4. Matching-buyers with sellers
5. Negotiation so ownership can take place
6. Others include:
a. Physical Distribution
b. Financing
c. Risk taking
51
Types of Channel Partners
Channel partners are businesses that are owned and operated independently from the
manufacturer, and that is contracted by the manufacturer to perform a specific function in the
movement of the product.
A. Retailers. These are individuals engaged in retailing. Retail is the sale of goods and services
from businesses to an end-user (called a customer). Retailing is defined as all activities required
to market consumer goods and services to ultimate consumers who are purchasing for
individual or family needs. They simply focus their offering to appeal to individual consumers,
knowing that some businesses may also choose to purchase from them. Retail marketing is the
process by which retailers promote awareness and interest in their goods and services to
generate sales from their consumers. Retail is one of the most important, and certainly the most
visible, of marketing channels. Every store that is open to the public, from your corner
convenience store to the big malls in the market, is a retailer, and so are local bank branches,
regular gasoline stations, and favorite restaurants, and many others. Read: Retailing as a
Business.
52
Retailing: Sari-Sari Stores as Philippine Culture
https://ayamontebon.files.wordpress.com/2013/10/popcreative-infographic2013-11.jpg
Sari-sari stores are small retail shops found in neighborhoods; sari-sari means “variety”.
They cater to residents of a particular community. These stores are also found in the streets,
a less formal retailing business. Sari-sari stores are a very important part of Filipino culture.
It is mostly preferred by low-income families. They establish the store in an accessible
location. Buyers can avail of products on credit or “utang”, the store sells necessities, and
offers goods per piece or “tingi”. The competition is very stiff in this kind of retail business
because of too many competitors. Owners can put up a business as an extension of their
homes. At present, there are more than a million sari-sari stores in the Philippines. These
stores are also known for price wars. The existence of supermarkets, convenience stores,
or shopping malls is another competitor. Sari-sari stores continue to dominate in retail and
always are the “social center” in their respective communities. They are also offering
expanded services such as being the distribution point for suppliers for their products.
Some are not just selling mobile phone loads, but also are payment centers now for utility
bills and remittances.
B. Wholesalers. “A wholesaler is a person whose business is buying large quantities of goods

and selling them in smaller amounts, for example, to shops.” ( Source :
Collins.Dictionary.com) Wholesalers can sell their products for a lower unit price as they
are selling in bulk, which reduces the handling time and costs involved. They are
companies that buy from producers and sell to retailers, business customers, and other
wholesalers.
Wholesaling includes all activities involved in selling goods and services to those buying
for resale or business use. Wholesalers are the merchant middlemen or distributors who
53
sell mainly to retailers, other merchants, commercial, industrial, or institutional users. They
buy principally for resale or business use. Other intermediaries are:
1. The drop shipper is an intermediary that takes orders and payment from the
customer, then arranges to have the merchandise shipped to the customer directly
from the supplier.
2. Rack jobber is a wholesaler that buys merchandise and resells it on “racks” inside
a retail store, in partnership with the retailer.
3. A broker is a wholesaler that does not take title to goods and whose function is to
bring buyers and sellers together and assist in negotiation.
4. An agent is a representative, either of a buyer or a seller, who performs only a few
functions and does not take title to goods.
Nature and Functions of Supply Chain Management
Making products available is not easy in the Philippines with over 7,100 islands. Top wholesaler,
Suy Sing operates in GMA, Luzon, and more recently, in the Mindanao area. Visayas is a challenge
as there is no link by land to different islands in the regions. Even freight from Manila to Visayas
and Mindanao can even be more expensive than shipping from Manila to Hong Kong.
Supply chain is part of the operating model of a company (with the other part being the offering
model for a company to grow). Supply chain built around the needs of customers effectively and
efficiently can provide lesser waste and superior return. Consider the streamlined logistics project
of major manufacturers with major retailers. Sharing information is a trait of a forward thinking
supply chain operation.
D. Promotion
Promotion is the part of marketing where you advertise

and market your product, also known as a promotional
strategy. Promotion is a type of communication between
the buyer and the seller. The seller tries to persuade the
buyer to purchase their goods or services through
promotions. It helps in making the people aware of a
product, service, or company. It also helps to improve
the public image of a company.
54
Relevant Promotional Tools to Create Awareness and Persuade the Target Market to Buy
the Product or Patronize the Service
The Marketing Communication Mix
A company’s total marketing communication mix is called its promotional mix. The promotional
mix is a specific mix of advertising, personal selling, sales promotion, public relations, and direct-
marketing tools that a company uses to pursue its advertising and marketing objectives.
The five major tools are:
1. Advertising- any paid form of nonpersonal presentation and promotion of ideas, goods, or
services by an identified sponsor. Advertising is centuries old. During the Golden age in Greece,
for example, town criers announced the sale of cattle, crafted items, and even cosmetics.
Advertising objective is a specific communication task to be accomplished with a specific target

audience during a specific period of time. Advertising objectives can be classified by primary
purpose as:
a. Informative advertising, which is advertising used to inform consumers about a new

product or feature and to build primary demand.
55
b. Persuasive advertising, which is advertising used to build selective demand for a brand
by persuading consumers that it offers the best quality for their money.
c. Comparative advertising, which is advertising that compares one brand directly or

indirectly to one or more brands.
d. Reminder advertising, which is advertising used to keep consumers thinking about a

product.
2. Sales Promotion- short-term incentives to encourage the purchase or sale of a product or

service. This promotional strategy is done through special offers with a plan to attract people to
buy the product.
In the Philippines, the Department of Trade and

Industry imposes a sales promotion permit. Any
person or company conducting sales promotion
campaigns including beauty contests, national
in character, sponsored and promoted by
manufacturing enterprises shall first secure a
Sales Promotion Permit from the concerned
Department (DTI or DOH) prior to the
launching thereof. This provision aims to
protect consumers from misleading
advertisements and fraudulent sales promotion
practices. (Article 116 of the R.A. 7394,
otherwise known as the Consumer Act of the
Philippines).
The DTI shall enforce the provisions of Chapter

VI of R.A. 7394 and its implementing rules and
regulations: Provided, That with respect to
food, drugs, cosmetics, devices and hazardous
substances, it shall be enforced by the Department of Health. (Article 109 of the R.A. 7394)
56
3. Personal Selling- personal presentation by the firm’s sales
force for the purpose of making sales and building
relationships. They can employ salespersons to promote and
sell your products as part of the business communication plans.
Personal selling can be a bit costly, though, because companies
will need to hire professional salespeople to promote them. If
done right, the profit gained could outweigh the cost.
57
4. Public Relations- building good
relations with the company’s various
publics by obtaining favorable
publicity, building up a good
“corporate image”, and handling or
heading off unfavorable rumors,
stories, and events. Most companies
are doing this by sponsoring or
donating something good for the
neighborhood and the community like
holding an open house or being
involved in community activities.
They engage the local media and hold
press conferences as
part of their promotional strategy.
5. Direct Marketing- direct communications with carefully targeted individual consumers to

obtain an immediate response- the use of mail, telephone, fax, e-mail, and other non-personal tools
to communicate directly with specific consumers.
58
59
Guided Practice
60
REFLECTION-ACTION
Marketing Mix Take-Aways

Write your takeaways from the lesson about the marketing mix.
A. List three (3) new things you learned during the lesson.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
B. What are the three (3) things you should take into consideration to enhance your
understanding of the marketing mix?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
C. What are the three (3) things from the lesson D. If you were to choose among the 5Cs core
that are still confusing and you still have values, which one do you think you can apply
questions? in the marketing mix lesson and why?
_____________________________________ _____________________________________
_____________________________________ _____________________________________
_____________________________________ _____________________________________
_____________________________________ _____________________________________
_____________________________________ _____________________________________
_____________________________________ _____________________________________
EVALUATION
61
Lesson 5. Workshop and Presentation of Marketing Plan
CONTEXT
1. integrate the marketing concepts and techniques learned by preparing a
marketing plan present a mini-marketing plan, orally and in writing
Value Integration: Competence
EXPERIENCE
Prelection
Concept Notes
Creating the Marketing Plan
A marketing plan is a strategic roadmap that businesses use to organize, execute, and track their
marketing strategy over a given period. Marketing plans can include separate marketing strategies
for the various marketing teams across the company, but all of them work toward the same
business goals.
The strategic planning process ultimately yields a marketing strategy that is the framework for a
marketing plan, a written document that specifies the marketing activities to be performed to
implement and evaluate the organization’s marketing strategies. Developing a clear and well-
written marketing plan, though time-consuming, is important. It provides a uniform marketing
vision for the firm and is the basis for internal communications.
62
How to Write a Marketing Plan
A marketing plan is not necessarily long, but it depends on the nature of the business and the
significance of the needed strategies. Some companies prefer a detailed marketing plan that
includes short-term and long-term marketing strategies. The most hideous part is the action plan
in preparation for the implementation phase, since concepts were discussed in the previous lesson
about marketing planning.
These are just three helpful points that should be established and kept in mind before doing the
marketing plan.
1. Completion date- —a 2. The responsible parties- A 3. The budget- When putting

deadline must be set in well-crafted marketing plan together a marketing strategy, the
advance for when the depends on how the company company must support the
company wants to establishes the marketing team needed budget as allocated ahead
complete the first draft of roles and responsibilities. They of time. The budget must be
the plan. The marketing need to focus on what they are spent wisely to avoid
team expects the plan to doing and when they need to unnecessary marketing costs. It
be constantly changing. complete the tasks. has a major impact on the
strategies the marketing team
decides to implement.
Marketing Plan Preparation and Oral Presentation
Developing a Marketing Plan
Marketing plans take many forms and can contain different types of information. They are
developed to assist a specific business, so they are written in a way that is most useful for the
people in that business.
I. Executive Summary
The executive summary of a marketing plan provides a brief overview of the entire marketing
plan. The executive summary will contain the key findings of the market research, the company's
objectives, marketing goals, an overview of the marketing trends, the description of the product or
service being marketed, information on the target market, and how to financially plan for the
marketing plan. (Rathburn, n.d.)
II. Analyzing the Market
A market plan is a complex and detailed document that provides guidance for the implementation
of a marketing strategy. Marketing plans are developed in three stages- market analysis, marketing
strategy, and action plans.
63
A market analysis identifies a business’s strengths and weaknesses and the opportunities and
threats it faces. Because of these four factors, a marketing analysis is often referred to as the SWOT
(strengths, weaknesses, opportunities, and threats) analysis.
Company Mission Primary Competitors
The mission or purpose of the company An analysis of the competitors in the same
identifies the nature of the business or the product categories and serving similar
reasons the business exists. It is most often customer groups is an important part of the
developed to describe broad categories of marketing plan. For example, if a competitor is
products or services the business provides. By known for keeping prices very low, it may be
identifying the mission or purpose, marketing difficult for another company to develop a
planners concentrate their efforts in areas strategy that emphasizes price.
where the company is known and works best.
An example of a mission statement for an auto External Environment
dealership is “to offer quality automobiles at
fair prices, to provide fast and effective The market analysis section identifies any
service, and to treat all customers with factors outside of the company, called the
courtesy and respect”. external environment, which may affect its
performance. Those factors include the
Current Markets and Strategies economy, competition, laws affecting the
business, technology, changes in costs, and the
After identifying the mission, the planners expectations and needs of society. An example
briefly review the current marketing efforts of of the effect of technology on businesses was
the company. The review identifies the the introduction and acceptance of transmitting
markets in which the company is operating and legal documents with electronic signatures.
the marketing strategies currently being used
and provides a summary of current results and
effectiveness.
Internal Analysis
The final part of the market analysis should be a thorough and objective review of the current
operating and financial performance of the company. This process is known as an internal
analysis. Analyzing products and production methods, marketing activities, personnel, and
financial performance can point out areas where the company is meeting expectations and where
it is not.
III. Developing the Market Strategy
In terms of the company’s success, the most important part of the marketing plan is the
development of a marketing strategy, or the description of the way marketing will be used to
accomplish the company’s objectives. The marketing strategy begins with the company goals on
which the strategy is based.
64
Determining Goals and Outcomes Specifying the Marketing Mix
The marketing strategy is based on a specific A complete description of each mix element is
statement of the goals the company plans to included in the marketing plan. Product,
achieve or the expected outcomes of the distribution (place), price, and promotion are
marketing efforts. Marketing goals include described specifically and completely so that
such things as increasing sales or profits for everyone involved in implementing the mix
certain products, increasing the market share understands what the company plans to do.
for a product in a particular geographic area or
target market, increasing the effectiveness of Developing a Positioning Statement
particular parts of the marketing mix such as
distribution or customer service, or other One of the most interesting parts of the
specific results. marketing strategy is the positioning
statement, a specific description of the unique
Defining a Target Market qualities of the marketing mix that make it
different from the competition and satisfying
The marketing strategy will clearly identify the to the target market. For example, a discount
target market to be served. The target market store positions itself as the one-stop place to
will be defined completely so it can be located, shop for all home products needed by a family
so people in the business understand the on a budget.
market’s characteristics and its needs and
wants, and so it is clear that the marketing mix
is appropriate for that target market.
IV. Planning for Action
The marketing strategy will not be successful just because it is described in a marketing plan. The
activities of many people must be planned, and procedures must be set up to evaluate the activities.
The final section of the marketing plan identifies actions needed to accomplish and evaluate the
marketing strategy. (Burrow, 2017, pp. 285-288)
Activity Schedule Evaluation Procedures
Completing each part of the marketing Evaluation procedures must be developed to

strategy requires a series of activities. The determine if the action plan is effective. The
needed activities must be determined along evaluation procedures measure whether the
with a description of how and when the marketing activities were completed correctly and
activities will be completed. Responsibility on time. They will also determine if the marketing
for completing each activity must be objectives identified earlier in the marketing plan
assigned. were accomplished.
65
66
Guided Practice
MIND MAP
Instructions: You learned about the marketing plan in today's discussion. You understand the
importance of the marketing plan in business and the necessary marketing strategies to be
included. Before creating the marketing plan for your case study, make a list of what your top
priorities will be in the planning process using the mind map.
67
REFLECTION-ACTION
EVALUATION
68
69
REFERENCES
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https://cpawebsiteimages.blob.core.windows.net/publicimages/Marketing%20Theories/C
onsumer%20Decision%20Making%20Process%20no%20bg.png
. (2023, June 13). . - YouTube. Retrieved July 16, 2023, from
https://drive.google.com/file/d/1G-x-k7QfnbRNv3eC0tITOLlTBBinXi7r/view?usp=shari
ng
Ac-Ac, M. V. M. (2014). Principles of Marketing (Revised Edition ed.). ANVIL Publishing Inc.
Advantages and disadvantages of direct marketing | nibusinessinfo.co.uk. (n.d.). NIBusinessInfo.
Retrieved July 16, 2023, from
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-direct-marketin
g
Baquillas, J. C. (2017). Principles of Marketing. Diwa Learning System Inc.
Camilar-Serrano, A. O. (2016). Principles of Marketing. Unlimited Books Library Services &
Publishing Inc.
Contemporary Approaches to Marketing. (n.d.). Lucid Advertising. Retrieved July 14, 2023 , from
https://www.lucidadvertising.com/contemporary-approaches-to-marketing/ Foundations of
Marketing. (2017). Abiva Publishing House. Go, J., & Go, C. E. (2017). Principles and Practices
in Marketing.
guide, s. (2022, September 30). What is the place in the marketing mix? Definition and Tips.
Indeed. Retrieved July 14, 2023, from
https://uk.indeed.com/career-advice/career- development/what-is-place-in-marketing-mix
Ilano, A.B. (2016). Principles of Marketing (First Edition ed.). Rex Book Store.
Micro Environment of Business: 6 Factors of Micro Environment of Business. (n.d.). Your
Article
Library. Retrieved July 15, 2023, from
https://www.yourarticlelibrary.com/business/micro-environment-of-business-6-factors-
ofmicro-environment-of-business/23370
Rathburn, P. (n.d.). What Is a Marketing Plan? Types and How to Write One. Investopedia.
Retrieved July 17, 2023, from https://www.investopedia.com/terms/m/marketing-plan.asp
So, R. C., & Torres, O. G. (2016). Principles of Marketing. Vibal Group, Inc.
Te, D. M., Marte, R. B., & Abrina, D. V. M. (2018). Principles of Marketing for Senior High
School. C & E Publishing, Inc.
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PRINCIPLES OF MARKETING

Subject: ABM128 (Principles of Marketing)

WEEK 7 Lesson 4. Developing The Marketing Mix

WEEK 10 MIDTERM EXAMINATIONS

WEEK 11 Lesson 4. Developing The Marketing Mix

WEEK 15 Summative Assessments: Long Quiz (Second Session)

Case Study- Defense and Submission: Accountancy, Business, and

WEEK 18 FINAL TERM EXAMINATIONS

Lesson 1. Marketing Principles and Strategies

Value Integration: Competence

Another definition of Marketing is the activity, set

Place includes the necessary

Marketing goals are

SMART stands for:

Marketing KPIs. Key Performance

In a diagram, the relationship defining goals,

6. Reputation- Companies should strive for a good reputation. A company’s main

a. The supplier of choice to customers

A. Traditional Approaches. It focuses on identifying the right customer and understanding

The 4Cs are defined below: (Chua-Delayco, 2016, p. 102)

B. Contemporary Approaches. The focus of contemporary marketing extends beyond

Value Integration: Competence, Character, and Culture

Definition of Relationship Marketing

Benefits of Relationship Marketing

1. Understanding customer characteristics - relationship marketing helps the company

The Value of Customers

Customer satisfaction depends on the product’s perceived performance relative to a buyer’s

Characteristics of Good Customer Service

1. Customer service is the

2. Good customer service is

3. Recent innovations have

4. Companies must be very

5. Most of the Philippine

Value Integration: Competence and Culture

Strategic and Marketing Planning Objectives and Processes

Strategic Marketing vs. Tactical Marketing

Three Phases of Strategic Marketing Process

● Know your buyer's journey.

A marketing objective states what is to be accomplished through marketing activities. These

It should possess certain characteristics.

Elements of Macro and Micro- Environment Influencing Marketing Planning

The Marketing Microenvironment

Types of Competitors (Pride, Ferrell, 2017 ,pp. 47-48)

The seven types of publics are:

The Marketing Macro Environment

In business, the macroenvironment refers to the economic, politico-legal, sociocultural,

2. Political Environment. The political

4. Demographic Environment. A company’s demographic macroenvironment consists of

5. Technological Environment. The technological environment is composed of current and

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Importance to a Business Enterprise

● Identify viable new products and services

Steps in Marketing Research

Step 1: Research Need Determination

Step 2: Problem/Opportunity Definition

Step 3: Establishment of Research Objectives

Step 5: Information Source/Type Identification

b. Secondary information is information acquired from previously conducted research,

Step 6: Determination of Data Access Methods

Step 7: Data Collection Forms Design

Step 8: Sample Size and Sampling Plan Determination

Step 9: Data Collection

Step 10: Data Analysis