BUSTAMANTE, HOSHI CHEYANNE MARKETING MANAGEMENT

BSBA MM 3-3 MAY 26, 2023 (6th Meeting)

SEGMENTATION TARGETING and POSITIONING (STP)

SEGMENTATION
- Is a marketing process of dividing potential market into distinct and viable
units of consumers, and selecting one or more segments as a target
consumers to be reached with a specific and distinct marketing mix.
- (keywords on segmentation)
- Distinct because you are going to base your
segmentation on different characteristics such as
psychographic, demographic, geographic.
- Viable because the units should have a critical mass or
enough number of people in order for you to be able to
have a profitable business with that segment. So if that
segment does not have enough critical mass of
consumers then it may not be viable, because you do
not have enough consumers to purchase and consume
your products. (REMEMBER: you have sales goals to
achieve and if your segments are not viable, it will be
difficult for you to reach your sales goals)
- Note: you just don’t segment your target
or potential market just for the sake of
segmenting it and targeting the
consumers, you also derive benefits
from segmentation.

ADVANTAGE or BENEFITS OF SEGMENTATION:

A) Customer needs are made similar and homogenous to customize your
marketing mix
- Segmentation will enable you to homogenize or make it a group of
something that they have something in common. (so when you blend or
combine your marketing mix, you can customize that marketing mix, as far as
a product, channels of distribution, the message that you transmit in your
communication and as far as the pricing is concern)
- Example: seniors segment or teenager segment or young adult
college segment.
B) Profit potential
- The realization of profit goal is easier and more efficient to achieve,
because marketing effort is focused on a specific group of customers
C) Growth
- Segmentation creates opportunities for growth (your company's growth/
your sales growth/ market share will grow/ your positioning will grow) within
specific groups as the segment expands and enlarges (since the market
segment will expand and enlarge. More people will be added and the
segment will be more mature and advance on their age).
 D) Retaining Customer
- It is easier to establish, develop and maintain lasting relationships with
customers and consumers in a specific segment. (it's easier to maintain
customers)
E) Focused Use of Resources
- You produced products for a specific group of consumers ONLY. (you
DO NOT produce products by guessing or blinding guessing, you KNOWwhat
does consumers in the target segment that you are faced with the products
that they want, the preference and everything)
F) Market Share
- Acquiring share of the market is made effective by having a certain share
of the market and expanding the share as more consumers emerge from
the segment.
G) What’s the benefit for the consumers and customers:
1) Segmentation provides greater choice of products to the
consumers and customers.
2) Segmentation provides a better match of products or service
offering to your consumers. (Product or service offerings match more
closely to the needs and wants of the customers and consumers.)
H) Benefits of segmentation for the Company:
1) Better, more efficient and effective marketing effort
2) Segmentation facilitates identifying prospects who are most likely
to buy the product.
3) Marketers will know their customers better (demand for service),
to provide better service.
4) Resources are used more efficiently and wisely
5) Smaller segments may be easier to dominate.
6) Marketing and sales activities will be closely focused- leading to:
A. more sales
B. lower costs
C. higher profitability

Market Segmentation Methods

1. Geographic segmentation- (the easiest one) one geographic segment
consists of a lot and a diverse characteristics of consumers. (includes babies,
toddlers, elementary pupils, highschool students, college students,
employees, etc.)
If your product is consumed by everybody then you can do
geographic segmentation. (Toothpaste, bath soap, laundry
detergents, condiments, canned goods, etc.)

2. Demographic Characteristics- (gender, age, occupation, social status, etc.)

3. Behaviors and Motivations- if you want to target a specific type of people
based on their behavior and the motivation is what were the reasons of the
customers for buying the product.
4. Lifestyle features- (where there are customers who either buy cheap
products in a wet market or in a supermarket)
Other methods of segmentation:
1. Geo-demographic
2. Behavior in the product field
3. Psychographics
4. Social Value Groups

MARKET TARGETING
1.Satisfying customer needs provides focus for product development and marketing
strategy.

a. PRODUCT DEVELOPMENT: is the process where the research and development of

the companies involved in order to improve a product or develop a new product in
response to a deed that you identified in the market.

2. Targeting does not exclude consumers who do not fit the marketing
criteria.(demographic, geographic, psychographic etc.)

3. Marketing money and brand message and brand message are directed to the
consumers who are more likely to buy the product. Marketing money is the budget you
spend on marketing. ex: taste tests should be held in supermarkets.

4. Market targeting is an affordable way to reach potential customers and generate

sales- segmentation is choosing only in the block of people. In targeting, you pursue these
people already.

How do we determine the target market?

1. Know your current customer base.
a. You determine the reasons for buying from you.
b. You establish common characteristics and interests among these current customers.
c. Which customers bring in the most business?

2. Check your current competition.

a. What customers are your competitors targeting?
b. Who are your competitor's current customers?
c. Don't go after or grab the market, now held by competitor
d. Find a niche market that your competitor is overlooking

3. Analyze your product or service offering

a. List each feature or attribute of your product.
b. List the benefit that each feature or attribute provides.

4. Determining your target market list, the customers who have a need that the
benefits will fulfill.

5. Choose specific demographics to target.

6. Consider the psychographics of your target.
A. Personality
B. Attitudes
 C. Values
D. Hobbies
E. Behavior

What are the questions that you need to ask after you have determined your target
market?
● Are there enough customers or people in my target market?
● Will my target market really benefit from my product/service offering?
● Do I understand what drives my target to make decisions?
● Can my target market afford my product service offering?
● Can I reach my target market with my message?

CONCLUSION: You develop a profile of your target market and communicate with them
through effective advertising. Then you can be sure that if you know the profile of your target
market that your communication will be effective in the sense of cost, in the sense of
message and in the sense of accessibility.

● POSITIONING - is to influence the consumer perception of a brand or product in

relation to the perception of competing brands or products. Sign that a brand is
superior to a consumer is when the consumer mentions the brand name first thing
when finding a product.
- Positioning is to make a product or brand occupy a clear, unique,
advantageous and high position in the consumers’ mind. What brings
about positioning:
1. Branding - creating identity of a product by giving it a name, package,
colorful, eye-catching color combination, nice labeling, good
features…external identity of the product
2. Advertising and promotion - the more you bombard your target
market with messages about your product, will contribute to the
positioning of the product because it communicates everything about
the product. Psychological, health benefits
3. Pricing - the more affordable, more it is remembered
4. Product development - give new uses of the product. ex. Corned
beef chunky pwede isigang.
- New features
5. Sales - consumers will perceived the products with more sales is
more good quality
6. Distribution and operation - pertains to the accessibility of products
to the consumers. Operations- delivery, accuracy of the order taking,
complaint solutions

Examples of positioning strategies

1. Through specific demographic
2. High price strategy - to create perceived quality. High prices can create a high
quality perception to consumers. To influence consumers to perceive
3. Distribution - your product says much about the quality. Where it is found will say a
lot about its quality. ex. products sold in bangketa vs in malls
 4. Affinity - appeal to a customer based with common personal preferences to obtain
loyalty to the group. Bandwagon style.
5. Low price strategy - projecting an affordable image by selling low priced goods
6. Differentiation strategy for positioning - a well positioned company will beat the
competition that has a comparable offering. Well recognized and positioned
company.

How do you bring about positioning the company?

1. Clearly communicate what the company does

2. Point out the relevance of the company to the present conditions
3. Defining the unique features that makes the company different from competition.

Ways in successfully reaching and winning a market - when you reach a customer
you must win them a swell:
1. Brand positioning strategy - making sure that you expose the consumer to your
brand so they can experience and remember your product. Then you can win them
2. Product positioning strategy - the image of the company must match the product
portfolio. Must be diverse and well positioned in the market. The company and the
product should be positioned equally well
3. Competitive pricing strategy - product brands having a can only be used when
your product or brand has a good market reputation. You can price premiumly your
products and they will still buy because of reputation. Strategy based on the rep of
the product
4. Competitive positioning strategy - company offering is better than similar offering
in the market. Unique points must be pointed out accurately and use these
compelling differences to claim superiority of the product over competing brands.
Presumes that your offering is better than similar in the market
5. Leveraging outside experts for compelling market positioning strategies - use if
you cannot find the expertise, skills, knowledge, genius of experts to develop
effective and efficient go-to planning execution.

Popular styles of brand positioning

1. Arm wrestling - pepsi vs cola. Each one uses each other tool peps
2. Big fish, smaller pan - creating a niche within an underserved market segment.
There is an identifying segment of the existing market whose needs are not met by
existing market leaders.
3. Reframe the market style - makes the benefits highlighted by the previous market
leaders as irrelevant or boring. Used if you are offering an innovation or
advancements that is previously unattainable. And or there is a shift in market needs
or expectations
4. Change the game style -
- used when there is no market category for what you have to market. ex. angkas,
before is not a public transpo.
- Used when your strengths or offerings don't fit in specific category
- New need emerged that is not being served by any existing category
JUNE 09, 2023

MARKETING MIX
Marketing mix are not meant to be enumerated, they are meant to be combined and
blended in order to get the desired response from the market and the desired response from
the market is purchase and consumption of your offering.

Desired response - purchase and consumption

I. Product -
a. A product is anything one receives in an exchange including tangible (something you
can hold, received physically) and intangible assets (something you cannot hold
physically), expected benefits which may be a good, service, or idea.
b. Anything that is able to satisfy a want or a need.
c. Set of tangible attributes including packaging, color, price, quality, and brand, plus the
services and reputation of the seller.

Product Life Cycle

1. Introductory stage
a. Full scale launch of a product into the marketplace
b. Marketing costs are normally high and sales normally increase slowly. Sales
will move slowly.
c. Profits are usually negative because of research and development costs and
high introduction costs.

2. Growth stage -
a. If the new product survives the introductory stage, it goes to the growth stage.
b. Sales grow at an increasing rate.
c. Many competitors enter the market
d. Profits are healthy.
e. Distribution is major key to success during the growth stage
f. Wholesalers, dealers,and retailers are acquired as they become your
customers.
g. Adequate distribution establishes a strong market position or presence.
h. Toward the end of the growth stage, prices begin falling (prices will stabilize
according to the charge set by competitors.) and profits peak.

3. Maturity stage -
a. Sales begin to level off (sales will stabilize, not increase much and not
decrease much)
b. Market approaches saturation (product is all over the place. product is
available anytime anywhere when consumer demand)
c. Marginal competitors start dropping out of the market (not the big competitors,
but the smaller ones because prices and profits continue to fall.)
d. Dealer margins also shrink resulting in less space for mature items. (most
profitable position is in the top most shelf, eyelevel)
 e. Promotion to dealers (wholesalers, groceries and retailers) by marketers often
intensifies in order to retain loyalty. (give them credit, extra service,
promotional material)
f. Heavy consumer promotion is required to maintain market share.
4. Decline stage -
a. Sales drop as demand falls
b. Many competitors are out of the market
c. The rate of decline is attributed to the rapid change of consumer taste.
d. Substitute products are adopted

What can we do to extend product life cycle

1. Promoting more frequent use of the product by current customers.
2. Find new target markets for the product.
3. Pricing the product below the market so when you price the product below the
market. (to entice more people particularly whose demand is price sensitive. as the
price goes down, demand goes up) (you adjust the price in margin, not cost)
4. Develop new distribution channel
5. Adding new ingredients or deleting new ingredients.
6. Making a dramatic new guarantee. (ariel detox - removes engraved stains)

BRANDING
- Brand is a name, term, symbol, design, or combination of any of those to give identity
to the product and differentiates them from competitor’s product.
- Brand name is part of the brand that can be spoken including letters like y.n.c.a.,
NBA, PBA, UAAP, NCAA. so when you mention these letters, it stands for a
tournament. And numbers like 7/11.
- Brand marks may not be spoken (Yellow M of mcdonalds, Mermaid in starbuck, Bee
in Jollibee)

Purposes of branding
1. Identification
2. Facilitate repeat purchase and sales
3. Have a brand for new products to sell

Packaging
- Are containers to protect and promote a product and for convenient handling

Functions of packaging
1. To contain and protect products
2. To promote products
3. Facilitates product storage, product use, product handling
4. Packaging facilitates recycling and reduced environmental damage

Labeling
1. Persuasive labeling - focuses on promotional logos rather than consumer
information. nothing than just attracting consumers.
2. Informational labeling
 a. Helps consumers make proper product selection and lower their doubts about
the product after the purchase.
b. You can attach a confidence tag. Labels of confidence that are attached:
- Durability
- Cleanability
- User friendly
- Low fat
- Diet
- Zero sugar
- No salt
- Reduced fat
- Reduced sugar

New products
- A product that is new to the world, market, producer, and seller.
- Why do we develop new products? We develop new products in order to sustain or
increase profits that include sales, increase market shares, and eventually profits.

New product development process

1. New product strategy - leads new product development to the objectives of the
company. Specifies the roles that new products must play in the goals and objectives
of the company.
2. Strategy must describe the characteristics of the product it wants to offer and
the market it wants to serve.
a. Idea generation - use the input from employees, distributors, competitors,
collaborators, rnd, and outside consultants you this by:
1. brainstorming
2. Focus group
3. Market survey
b. Screening - eliminate crazy ideas that came out during brainstorming and select
what seems feasible and reasonable or that is within the scope of your new product
strategy
c. Business analysis - feasibility study
1. Determine the demand, the costs, sales, and profitability estimates (not an
accurate figure but rather a calculated guess regarding the demand level of
the product.)
2. Costs and sales are estimated and profitability estimates are made. When
you estimate the sales, you add your margin. After estimating sales, you can
estimate profits after estimating operating expenses and tax payments.
a. Newness of the product. Is it the only one existing in the market or are
there substitute products like the one I want to develop?
b. Size of the market you can expect.
c. Nature of competition you will face
- Those three are three important components to estimate sales.

d. Development - develops prototypes of the product together with the prototypes of the
product. Passed on to production so it can adjust its operation to produce a new product.
 d. The company outlines a scratch of marketing strategy, sketch of
marketing strategy . Marketing strategies are specific actions in order
to market a new product.
e. The marketing division decides on the element of branding.
f. Marketing division promotes preliminary promotion price and
distribution strategies.
g. Technical feasibility of manufacturing the product is done as well as
the cause that is thoroughly examined.
h. Test marketing -
1. Product is introduced in a limited way to determine the reactions of the potential
customer/ consumers in a market situation.
2. The new product developed is tested in the marketplace where demographics and
purchasing habits reflect the overall market. (marketplace is the target locality where
your consumers are located)
3. The company should have good distribution in test markets or cities. (should have
many agencies in a test marketplace) (sampling is giving products free, test market is
selling products at a penetrating price.)

j . Commercialization - decision when the new market is made. What are the tasks to give
in commercialization
1. Ordering production equipment and raw materials and related materials _ wax paper,
poster
2. Start production rents
3. Building inventories and finished goods as well as raw materials
4. Shipping products to distribution points
5. Training the sales horse on product knowledge and pricing
6. Announcing the new product to the trade (your industry)
7. Communicate and advertise your product to consumers

Adoption process
1. AIDA - aid awareness, interest, desire
2. Expand AIDA - awareness to knowledge (information that has been understood by
the consumers)
3. After knowledge, goes to liking.
4. From liking general things you narrow down to your preference.
5. After preference, you develop conviction.
6. Purchase of product.

You achieve the adoption process by advertising and communication.

A new product needs to spread in the market, you need to diffuse. Diffusion of innovation,
information of the new product. Innovation is a product perceived as new by potential
adopters (consumers).

Diffusion is a process by which adoption of innovation spreads.

The diffusion process is the spread of new product service from the source of invention to its
ultimate users as adopters.
Adoption is the consummation of a product. Diffusion is the spread of the product through
consumers.

5 Adopters of adoption process

1. Innovator -
a. eager to try new ideas and products is almost an obsession.
b. well educated with high income, venture-some
2. Early adopters - adapt easily in the product life cycle. Respect for new offering is their
dominant characteristic.
3. Early majority - consumers who are deliberative to adopt new ideas or products. Collect
more information and evaluate more brands before adopting.
- Laggards - takes them longest to adopt and belong to the lowest economic class.
- Suspicious of new products
- Tradition-bound - cannot move on from traditional practices to millennial new
practices.
- Do not seem to be motivated by advertising or personal selling.
4. Late majority - adopt new products by reliance on group norms because they are
skeptical. (group norms are group standards that are not written but you see them being
done so you follow these majority)

5. The laggards - adopt new products by their tradition.

Product Management - Positions to direct the marketing effort in marketing the new product
or in marketing the product.

1. Brand manager - responsible for a single brand. Responsible for enabling the
product to fight in the market, positioning is high, recognizable, product and brand
image is good and acceptable.
2. Product manager - responsible for several brands within a product line or group.
(product line or product category - dairy products (butter margarine cheese cream
milk)
3. Category manager - responsible for multiple product lines (dairy, cooking oil,
beverages, coffee)
JUNE 16

Element of price in marketing mix

a. Price is the amount that is equivalent to the revenue. Revenue is sales.
b. Price is the perceived value of a good or product or service. In other words,
the consumer becomes willing to pay for the amount of money because they
perceive it as a fair value for the good, product, service they are buying.
c. Price is the amount of currency (cash) exchanged for a product or service.

Pricing Objectives
Profit oriented pricing objectives
a. Profit maximization - achieved if you are very wise at adding
your margin to the cost to produce the product, good or
service. The margin you add is what you will use to pay
operating expenses, taxes, and more. cost + margin = price.
The only thing that restricts you from adding a huge margin is
the competition.
b. Satisfactory profits - if we cannot get maximum profits then
we should at least be satisfied with satisfactory profit or profits
at a reasonable level.
c. Target return on investment - when owners of a company or
investors put money in a company, they expect an ROI. They
didn't donate the money, instead they expect money to grow.

Sales oriented pricing objectives - based on market share or on units sales (no. cans,
packages, boxes, etc.) not talking abt profit but about volume.
a. Market share - means the company’s product sales should be a percentage of the
total sales for the industry. (4 companies in the industry selling the same products as
you. ex. C1 - 1M, C2 - 2M, C3 - 3M, C4 (you) - 1M (Total market = 7M) 1M / 7M =
your relation of sales in the market. Indication of your shares in the market.
b. Sales maximization - sell as much as you can and ignore profits competition and
the marketing environment.
● This is temporary, used to sell excess inventory.
● When you want to sell old models before introducing old models.
c. Status quo pricing objectives - seeks to maintain existing prices or simply meet
competition by following the price leader in the industry.

Price Policy - initial price for a product and the intended direction for price movements over
the product life cycle. Also called pricing strategies:
1. Price skimming - charging the highest possible price because the product or service
is unique, one of a kind, novelty.
2. Penetration pricing - temporary pricing policy because initial price is low in order to
capture all price sensitive in the market so it can be accepted and consumed in the
market and when it gains popularity, you leave that penetration policy and go back to
regular pricing (cost + margin)
3. Value marketing pricing - offering target market a high quality product at a fair price
and with good service
 4. Discount, allowances, and rebates -
a. Cash discounts - is a reduction in price offered to consumers or business
users or marketing channels in return for prompt payment.
b. Quantity discounts - multiple units purchased, get a price reduction. Could
also be purchased within a minimum purchase amount.
c. Cumulative quantity discount - applies to buyers total purchases majoring
specified period. Intended to enhance customer loyalty.
d. Functional discounts - price reduction to wholesalers and retailers for
performing channel functions. Channel functions:
Highlight, promote product to consumers seasonal discounts
e. Buying out of season merchandise - candles sa undas, christmas
decorations, swimsuits during not summer.
f. Promotional allowance - a payment to a dealer, wholesaler or retailer for
promoting or pushing your products.
g. Rebates - cash refund given to consumers for purchase of a product during a
specific period.

Geographic pricing - when you need to transport goods and products from one location to
another region.
1. FOB (fee on board) Origin Pricing - price tactic that requires buyer to absorb the
fee cost from shipping point.
2. Uniform delivered pricing - seller pays actual charges for the purchases flat rate
basis. (fixed price for delivery fee regardless of location).
3. Zone pricing - price you charge flat rate to all customers in a given zone. You create
your own “zone” and give appropriate rates for each zone.
4. Freight absorption pricing - the seller pays for the transport cost totally or partially
and not passed on to the buyer.
5. Base point pricing - incorporates the freight cost from a given point regardless of
city or town from which the goods are shipped.

Special Price Tactics

1. Single price tactic - offering all goods and services in one store at the same price.
Everything is 99 pesos, 88 pesos.
2. Flexible or viable pricing - customers pay different amounts for the same
merchandise or brand of equal quality. Tiangge stores offer different prices according
to the customer's ability to pay for the product.
3. Professional services pricing - mostly used by doctors, lawyers, engineers,
dentists, surveyors, consultants. Unregulated pricing according to their confidence.
4. Price lining - offering the product line with several brands at specific price points.
Product line is a composite of products that has several brands.
5. Leader pricing / loss leader pricing - pricing a merchandise at a low price to make
an impression that all products in the outlet are affordable but many of the
merchandise in the store is expensive.
6. Bait pricing - attract customers in a store through false or misleading price
advertising. Persuade customers to buy ordinarily priced products in the store.
7. Odd - even pricing - pricing 199, 299, 399 is cheaper than 200, 300, 400
8. Price building tactic - marketing 2 or more products in a single package for a
special price.
Unfair pricing practices
1. Price discrimination - practice of charging different prices to different customers for
the same products.
2. Predatory pricing - charging a very low price for a product with the intent of driving
competitors out of business and market.
3. Price fixing - agreement between two or more companies on the price they will
charge for a product, not to eliminate competitors but to gather customers equally. To
leave customers with no choice. (hardware, construction supplies)
4. Unfair trade practice - prohibits wholesalers and retailers from selling below cost
(amount of money wholesalers and retailers to acquire your goods).

Elements of promotion
○ Promotion is really communication. One element in the mix that enables you
to communicate or inform your market about your offerings.
○ Communication by the marketer that informs, persuades and reminds
potential buyers of a product or service to influence an opinion or/and elicit
their response.

Promotional strategies
● Advertising
● Personal selling
● Sales promotion
● Public relation
.

Communication is a process by which we exchange and share meanings to inform,

persuade, and remind.

When do you communicate

● When a company creates a new product. You need to inform and persuade
● When a company changes an existing product. You need to inform persuade and
remind
● When company desires to increase sales of an increasing goods or service

What must we impart during communication

1. The selling message to potential customers (affordability of the product)
2. We impart product information (product attributes, benefits, name, and all other
points of differentiation) to target market and other publics.
3. We impart information about the company and its products in order to
establish a collection between the manufacturer and the products themselves.

2 major categories of communication in marketing

a. Interpersonal communication is a direct face to face communication employed by
sales persons speaking directly to customers.
 b. Mass communication refers to communicating to large audiences. Directed to
consumers as a whale usually thru television, social media, fb, ig, tt, radio, or
newspaper.

3 basic tasks of promotion/comm

1. Informing - informative promotion is used mostly on early stages (introductory to
growth stage) of lifecycle. Reason for using this:
● To increase your brand and product awareness.
● Inform market of new product attributes
● Suggest new uses for a product
● Correct false impressions about product
● Building company image

2. Persuading - motivating consumers to buy a product, persuasive promotion is to

stimulate a purchase or an action (inquiry). Persuasion is the main promotion /
communication goal when the product enters the growth stage of the product life
cycle. It aims to accomplish:
● Build brand preference.
● Encourages brand switching
● Influence customers to buy NOW
● Aims to change customers’ perceptions of product attributes. Natural
attributes can start to move to emotional attributes.

3. Reminding promotion - used to keep product and brand name in the public’s mind.
This promotion prevails during the maturity stage of the life cycle in order to trigger
memory.

Promotional mix / strategies

1. Advertising is impersonal one way mass communication paid for by the company to
the consumers and it can be transmitted by different media such as elevation, print,
billboards, and transit cards. Successful brands like coca cola, colgate were made by
heavy advertising. To this day advertising is used for 2 reasons:
● To maintain brand awareness
● To preserve market shares.

5 phases of advertising
1. Determining the advertising objectives - what do you want (persuade, inform, or
remind)
2. Set an advertising campaign budget that should include the media (tv, radio) you're
going to use.
3. Determine the message to be transmitted to the target market.
4. Select the message vehicle- the message vehicle can either be an announcer or an
endorser, a popular personality.
5. You evaluate the campaign
6. Evaluating campaigns to know the ROI and effect of advertising onto your target
market.
2. Personal selling is a planned face-to-face presentation to one or more prospective
buyers for the purpose of making a sale.

Advantages of personal selling

1. Provides detailed explanation or demonstration of the product. Needed for complex
products or goods.
2. A salesperson can vary the message according to the motivation and interest of the
prospect.
3. Personal selling enables the rectification or overcoming the objectification of the
prospect.
4. Directed only to qualified prospects
5. Personal selling costs can be controlled as it does not include a lot of personnel.
6. Effective in closing the sale

3. Sales promotion is an activity that involves short term incentives to induce the purchase
of a good or service.
a. Coupons - incentive that entitles consumers to an immediate reduction of price when
they buy the product.
b. Premium - extra item offered to consumers in exchange.
c. Sampling- allows the customer to try a product risk free.
d. A point of purchase display- is a promotional display set up at the retailers’ location
to build traffic, advertise the product, or induce impulse buying. Examples: ads on
grocery carts and bags, TV monitors at supermarkets, shelf “talkers”.

MARKETING MANAGEMENT: JUNE 23, 2023

Public Relations is the marketing function that evaluates public attitudes, identifies
areas within the organization that the public may be interested in, and executes a
program of action to each public understanding and acceptance.

PR tools used in communicating with the media:

1. Press relation: Placing net-worthy information in the news media to attract
attention to a person, good or service.
2. Product publicity: Publicizing specific products.
3. Corporate communications: Creating internal and external communications to
promote understanding of the firm or institution.
4. Lobbying: Dealing with legislators and government officials to promote or defeat
legislation and regulations.
5. Counseling: Advising management about public issues and company positions
and image.

Publicity is public information about a company, good, or service appearing in the

mass media as a news item. Public relations and publicity prepare news releases
and persuade media personnel to print or broadcast something about the firm’s
production or organization.

Basic Functions of Intermediaries

1. Transactional functions:
● contacting buyers
● promoting products
● negotiating the sale
● taking on the risks associated with owning and keeping a product inventory.

2. Logistical functions
- transporting and delivering of goods, sorting out and accumulating, allocating,
and assorting products into homogeneous or heterogeneous collections.
For example, grading agricultural products is a process of sorting.
Handling goods
allocating is “breaking bulk”
assorting function is performed by supermarkets or other retailers.

3. Facilitating functions
Feedbacks
Extend Financing

Types of Wholesaling Intermediaries:

1. Merchant Wholesalers- Channel that buys goods from manufacturers and resells
them to business, government agencies, and other wholesalers or retailers.

Categories:
1. Full-service wholesalers assemble an assortment of products, provide credit
for clients, offer promotional help and technical advice, maintain a sales force
to contact customers, and deliver merchandise and may offer research,
planning, installation, and repair. They also offer fast delivery in emergencies.
2. General merchandise wholesalers stock a full assortment of products within
a product line. For example, a hardware wholesaler will stock a full array of
tools, paints, ropes, chains. These wholesalers are common in the drug,
grocery, and clothing markets.
3. Specialty merchandise wholesalers offer part of a product line to target
customers but in greater depth than general merchandise wholesalers offer.
These wholesalers have excellent product knowledge in their specialized line
of merchandise.
4. Industrial distributors are full-service merchant wholesalers that sell to
manufacturers rather than to retailers.
a. They stock products, such as: hardware products, office supplies,
equipment used in the operation of the business, machinery used in
 making raw materials and semi-finished goods into finished products
(grinders, dryers)
5. Rack jobbers perform the merchant wholesalers’ functions and some are
usually carried out by the retailer, namely stocking non-food merchandise on
racks or shelves. They serve drug, grocery, and general merchandise
retailers. Rack jobbers typically sell on consignment.

Truck jobbers perform the functions of salesperson and delivery person. They
carry a limited line of semi-perishable merchandise, such as milk, bread,
snack foods, beer, and candy. Truck jobbers sell for cash. Their customers are
supermarkets, restaurants, and hotels.
6. Mail-order wholesalers sell goods by catalog to businesses, institutions,
government, and other organizations.

Channels for Consumer Products:

1. Direct Channel- the product move from producer direct to the consumers
2. Retailer Channel- producer to retailers to consumers
3. Wholesale Channel- producer to wholesalers to retailers to consumers
4. Agent/Broker Channel- producer to agent/broker to wholesalers to retailers to
Consumers

Channels for Industrial Products:

Agents/Brokers
1. They work for buyers and sellers.
2. Brokers represent the buyer or seller in finding another party to complete the
transaction.
3. Buyer or seller and then lets the two parties resolve matters.
4. brokers receive a fee from either seller or buyer engaging their services.

Categories of Agents and Brokers:

1. Manufacturers’ agent- represents one manufacturer or several manufacturers of
complementary lines and follows the terms set by the manufacturer. Agents are paid
on commission.
2. Selling agent is an intermediary that is used mostly by small firms on a
commission basis and contracted to sell the manufacturer’s entire output. They also
work on commission.

Manufacturers’ Branches and Offices- Large manufacturers owned and controlled

wholesale institutions that carried inventory. The distinction between manufacturers’
sales offices and sales branches is that branches carry inventory and offices do not.
Segmentation- process of dividing market into viable, similar, and identifiable goods
to enable marketers to tailor their marketing mix to tailor the needs of one or more
specific segments.

Bases for Segmenting Consumer Market:

1. Geographic segmentation refers to segmenting markets by region of the country
or world, market size, market density or climate.
a. Climate is used for geographic segmentation because of its impact on
residents’ needs and purchasing behavior. Snow blowers, fur coats, air
conditioning and heating systems are products with varying appeal,
depending on climate.
b. Market density means the number of people within a unit of land.
c. Region
- finding new ways to generate sales.
- assessing which brands sell best in that region.
- introducing new regional brands intended to appeal to local
preferences.
2. Demographic segmentation is a method of dividing markets based on
demographic variables such as age, gender, income, family cycle.
3. Psychographic segmentation- It is a market segmentation by personality,
motives, lifestyle, and geodemographics.
4. Micromarketing is developing marketing programs tailored to prospective buyers
who live in small geographic regions and who have very specific lifestyle and
demographic characteristics.

Criteria for Successful Segmentation:

1. Sustainability- is a segment, must be large enough to warrant developing and
maintaining a special marketing mix.
2. Identifiable and measurable – segments must be identifiable and their size
measurable.
Segments that provide concrete measures of segment are: population within
geographic boundaries, the number of people in various age categories, and other
social and demographic characteristics.
3. Accessibility – the marketer must be able to reach members of targeted
segments with customized marketing mixes. For example, the senior citizens are
hard to reach because of hearing disabilities, or some are illiterate.
4. Responsiveness- a market is a valid segment if it responds to the same
marketing mix.

Four Basic Steps in Marketing Process

1. Analyzing and identifying marketing opportunities
2. Selecting target markets
3. Developing marketing Mix
4. Managing the marketing effort
 MARKETING MANAGEMENT: JUNE 30, 2023

Management is a business process employed to achieve desired results through

and with other people.
- Should be goal centered; leads to the achievement of the desired result
through and with other people
- Keywords: Desired result; through and with other people
1. Division of labor - specialization of people and skills
2. Authority - power to give orders and do your responsibility; your right to give
orders; responsibility - tasks need to be done
3. Discipline - obedience and respect help the organization run smoothly
4. Unity of command - each employee should receive orders from only one
superiors
5. Unity of direction - the efforts of everyone in the organization should be
coordinated and focused in the same direction towards achieving the desired
result
6. Subordination of individual interest must be observed for the benefit of
the individual interest - give priority to the interest of the company before
your own interest
7. Remuneration - employee should be paid fairly in accordance t their
contribution to the company
8. Centralization vs. decentralization - centralization - one authority figure for
anything to happen; nothing happens without the authority of one company
Decentralization -
9. Stability and tenure of Personnel - personnel must be given time to learn
10. Initiative - formulating and carrying out a plan on your own without being told;
starting something
11. Harmonious relationship among organizational unit helps bring about
organizational success

1. PLANNING
2. ORGANIZING
3. CONTROLLING
4. LEADING

PLANNING - Function a manager does to pre-determine and define the desired

results

WHAT ARE THE DESIRED RESULTS?

❖ Your objectives and goals
❖ You can't start a process without knowing your objectives and goals
❖ The broadest desired result is the vision
DESIRED RESULT
1. Vision - general statement of the result the company wants to achieve over
the long term; it states the dream and what the company, the products and
series, the people, will become as a recognized entity that impacts or affects
the local, national, and global community.
2. Mission - is the desired result that states the desired of the company needs
to achieve for its business operation or its products and services, customers
and clients, geographic bonds it wants to cover**
3. Goals - The goals desired results covered a span of long term (10 years),
medium term (5 years) and short-term (1 year)
■ The business process that needs to be done to produce and
market, and sell, to fabricate, to transport, to mine, to gather
■ The product or service that results from the business process; to
produce consumer goods, beverages, consumable goods
■ Customer/ Client that the product or service may be offered
■ Geographic coverage - For all the members of the family in the
entire Philippines and to make 20% gross sales.
■ The benefit that is desired for the company
4. Objectives
Objectives should be:
- Sustainable
- Measurable
- Attainable
- Realistic
- Time-limited
● Standard of Performance -
○ 2 million should be attained in 1 year
○ After 6 month 1 million should be sold
○ All wholesalers should be carrying all the product
○ All supermarkets in the NCR are carrying the product
● The objective will be 1 year the standards will be monthly, weekly, daily
● Targets are weekly results desired to achieve the objectives; program
of **

- It is important to do SWOT and PESTLE Analysis to understand what you

have in the company and what is happening outside the company.
- Assumptions that support desired results that you want to define
- Forecasting is the process of analyzing future trends
- Estimate and predict, make assumptions and this will support your
objectives and goals

OTHER PLANNING ACTIVITIES

1. Programs - is the sequential, chronological, and methodological list of tasks
and events that lead in achieving the desired result.
2. Schedule - is the time set to achieve the desired result, the completion of
events
3. Policy - is a long-standing solution or response to a recurring question,
situation, or issue. Guide the action of the people.
a. Good Policy
i. The policy must be understood and accepted by everybody in
the company
ii. The policy must be stable and not changed frequently because it
serves as a guide to action.
iii. The policy must be applied uniformly at all levels of the company
and to everybody
iv. The policy must be written and the preparation of the policy
should be participated by all pertinent positions in the company.
 MARKETING MANAGEMENT: JULY 4, 2023

**Recap ni Sir from prev discussion

Vision is actually a statement that desired resolution, but it is a very broad and
general statement and it is the eventual result that an organization or a company will
hope to achieve in a span of 10 to 20 years.

Mission which is the next lower step down. And as far as the specificity of the
decided result really just it tells us what major options?

Goals make the vision and mission seem to be a reality because now these goals
will require action and you can see specifically what, umm, what is done in order to
achieve results.
- It is in the level of goals where the continuing modules of work are identified.
- As far as the quantifications of your sales, the coverage of your sales, the
penetration of the market, the market share that you want to achieve, the
positioning that you want to achieve, all those are in the goals.

Objectives are now really the annual results.

- These are the time limited one year results that we need to achieve that leads
to the achievement of the goal leads to the achievement of mission and leads
to the achievement of vision
—-------------------------

Budgeting is a planning activity that involves the allocation of resources such as

funds, manpower, capital assets, capacity, materials over a short, medium and long
term.

What do you budget for funds?

● FUNDS - Make funds available for various business functions. (production,
marketing, sales, administration, research and development, quality control,
logistics, etcetera.)
● MANPOWER - Asset that you need to budget in manpower
○ You particularly have to focus on the highly skilled manpower.
○ These are people who have very specific high skills to perform
technical processes, particularly in production and in digitalization and
in research and development.
■
● CAPITAL ASSETS - will be your equipment, your production machinery, your
scientific digits, your trucks, your forklifts, your buildings, your structures, your
roads, your streets, your farms, etcetera.
 ○ These are things that the company can acquire and reduce over a long
period of time in their business operations.
■ you have to determine which are available locally.
■ you'll have to be determined which are important.
■ you find out which assets are computer based, computer center,
digital base digital center.

● CAPACITY - the ability to do work or the ability to deliver work or the ability to
produce.
○ map the optimum utilization of your current equipment and machines.

NOTE: Don't forget to budget for miscellaneous needs and for the wages and
salaries of your existing group of your existing personnel.

Characteristics of Budgets
1. Budgets must be based on annual goals and objectives.
2. It must be guided by the profit goals of the company.
3. it must be accepted, approved and understood by all organizational unit
heads of the company, particularly finance and human resources and
production.
4. Budget must be accurate and reflect up-to-date costs and price trends in the
market.

Problem Solving and Decision Making

It is a skill that is needed by a manager day in and day out from fights between two
employees.

Technique of Problem Solving and Decision Making

1. Recognize something that is not normal in the operation.
2. Probe/ Probing and Investigating - Question; Investigate; Ask everything
3. Identify the real problem
4. Generate alternative courses of action
5. Evaluate each alternative course of action
6. Make a choice or make a decision to solve the problem
7. Implement your decision
8. Solve the ramifying problems in the implementation
9. Evaluate the implementation and the solution

ORGANIZING is a management function that covers the identification of tasks and

grouping them into work modules or units.
● Assigning people who are qualified to perform the work and creating
relationships in order to achieve desired results.
● Organizing further involves division of Labor, coordination of efforts in
establishing hierarchy of supervision and leadership.
 ● The key phrases and words in organizing are:
○ (1) identification of tasks and grouping them into units
○ (2) assigning people who are qualified to perform the work modules
○ (3) creating relationships in order to achieve desired results and it also
involves division of Labor, coordination of efforts and establishing a
hierarchy of supervision and leadership.

Define the hierarchy of supervision and leadership

1. Identifying the tasks and group them into work modules
Hierarchy of Supervision and Leadership
1. Top management - consists of the Chief Executive Officer or the President
and the Board of Directors
2. Middle management - consists of the vice presidents for each business
function, vice president for production, marketing, finance, Human Resources
administration, research and development.
3. Supervisory Management - includes the department managers, the section
chiefs, the four men and the team leaders.

A relationship that needs to be had in an organization

1. Vertical relationship (also called Line Relationship/ Command and Obey
Relationship) - a relationship that goes from top to bottom
2. Horizontal Relationship (also called Staff Relationship/ Advice and Counsel
Relationship) - Production cannot command marketing, Marketing cannot
command finance and finance cannot command human resources

Delegation is assigning responsibility in a command-obey relationship from the

superior position to the subordinate position and the provision or giving of
commensurate authority to perform assigned tasks and to achieve desired results.

Accountability is created in the receiving position or unit.

- It is the obligation in the position of an incumbent or employee to perform the
required tasks in order to achieve desired results.

Authority is the right, privileges, and power given to a position to require

performance and action in order to achieve desired results.
● Low Authority - Investigate, study the project, and recommend action.
● Medium Authority - Investigate and advise me on your planned action.
● High Authority - investigate and take action but you'll have to advise me on
the action you took/ you investigate and take action don't let me know
anything about it.
Responsibility is the task or work in a position given to a position or unit that needs
to be done in order to achieve desired results.

Barrier to delegation
1. job has to be done right
2. lack of confidence and trust in your employees
3. lack of self-confidence on the part of the supervisor
4. Fear of being called lazy
5. Vague task/work definition
6. fear of competition from the subordinates
7. reluctance in taking risks
8. lack of controls that provide early warning of problems with delegated tasks

How you can organize your units or your work

1. You can organize them according to business function
2. based on product and our service you can organize
3. based on customer/client

MARKETING MANAGEMENT: JULY 14, 2023

Controlling is a management function that monitors, measures, corrects, and

recognizes performance in order to achieve desired results
- It is a management function that monitors inputs, performance and outputs,
measures them against standards, goals, and objectives, and corrects
deviation in order to achieve the desired results.

4 MAJOR PROCESSES
1. Monitoring - overseeing, supervising performance of people
2. Measures - measure the actual performance of people
3. Deviation - when the actual performance of a person is not equal to the
requirements of the standard.
4. Recognize acceptable and good performance.
Note: (1) You monitor performance of people, (2) measure actual performance of
people against standards of performance,(3) you correct deviation from actual
performance to standard of performance, (4) recognize acceptable and good
performance.

Standards of performance - are descriptions and quantifications of conditions that

will indicate acceptable or good performance in achieving the stated goal and
objective.
 ● Negative deviation which is actual performance is less than the standard of
performance.
● Positive deviation, not in a good positive sense, but it's because the actual
performance is more than what the requirement of the standard is.

Are both negative and positive deviations bad?

YES. Where actual performance is less than the standard of performance and the
positive deviation where the actual performance is more than the standard is equally
bad.

LEVELS OF CONTROL
1. Strategic control
The top post control is a strategic control. Strategic control is done by the
Board of directors by the Chief Executive Officer and the President of the
organization because they are going to look at the overall performance of the
entire corporation.

2. Tactical Control
Tactical control are the controls done by the Department and division
managers after you win the Vice President and the things.

3. Operational Control
The operational control is the daily, weekly, monthly operational controls that
goes on in the organization. The KPI are: (1) Objectives (2) Delegated tasks
(3) special assignments given to each employees

Control Timing
1. Feed-forward Control - When you have stated your goals and objectives and
targets, those are feed forward control mechanisms already because they
already limit the activities and actions of people towards that goal towards
that. (e.g. Standards of Performance)
2. Concurrent Control - Monitors processes, Works in process, Actual
performances of people and adjusting ongoing activities, if necessary,
adjusting and correcting ongoing activities when necessary.
3. Feedback Control - Monitoring products and outputs and learning from past
mistakes,

Expanded Control Process

1. Understanding and acceptance of desired results expressed in goals,
objectives and targets.
2. Standards of performance for each result is clearly established and if
applicable, tolerance limits are specified.
 3. Monitoring of performance or work in process through reports and regularly
scheduled.
4. Actual results, outputs, and performance are measured against established
standards and tolerance limits.
5. Recognize performance, good performance, or correct and improve
deviations.
6. The standards of performance and tolerance limits are reviewed to determine
the degree of ease or difficulty of achieving them and they should be adjusted
according to the findings.

Effective control guidance

1. Desired results must be realistic, concrete, and measurable.
2. Every employee in the work process is aware of the standards.
3. Change when necessary, must be introduced at any time in the control
process.
4. Results and data must be accurate
5. Corrections and improvements must be timely introduced and implemented.
6. Supervision is mandatory

Control Targets
1. Budgetary and financial controls
a. budgetary means that your budgets are, in themselves standards, they
are quantifications of conditions.
b. Financial controls are seen in your (1) cash flow statement - another
name for cash flow statement is sources and uses of funds. The cash
flow statement involves cash transactions only. a cash flow statement
is really to give you a measure of your cash movements in your
operations. (2) income statement or profit and loss statement -
shows you the profitability picture of the company that we're done with.
(3) balance sheet statement, balance sheet statement - will show
you how the company is growing.
2. Operational Control - Everything that happens in the operation of the
business.
3. Behavioral Control - the company norms and practices.
a. enforcement of policies done uniformly for everybody, regardless of
position or run in the company.
b. Are your grievances expressed? Are you free to express your
complaints, your problems in the workplace?

Leading is a management function to inspire, enable, guide, impart knowledge and

skills, enhance understanding and acceptance, and admonish people in order to
achieve desired results.
 MARKETING MANAGEMENT: JULY 21, 2023

LEADING
Leading is a management function to inspire, enable, guide, impart knowledge and
skills, enhance understanding and acceptance, and admonish people in order to
achieve desired results.

The process of communicating (it's a gerund, a noun)

Communicating is a management function to create understanding among people
for them to take necessary action to achieve the desired result.

The prime rule of communicating (what we need to understand)

1. Speaking to be understood
a. Make sure you speak clearly and use words to convey what you really
mean.
2. Listening to understand
a. Listen fully without thinking of what to respond
What makes communicating difficult?
1. Different perceptions
2. Language differences
3. Noise
a. Physical Noise - created around our physical environment
b. Internal Noise - prejudices
4. Emotionality - You are physically present but emotionally absent
5. Distrust - lack of trust in your superior/subordinate

Note: You must strive to be understood

Motivating is a management function to inspire, enable, guide, enhance knowledge

and skills,** acceptance, and admonish people in order to achieve desired results.
- Not only inspiring but recognizing what people do
- Admonishing - expressing disappointment and dissatisfaction

WHY DO PEOPLE DO THINGS? -because of their motivation

MASLOW'S HIERARCHY OF NEEDS

1. PHYSIOLOGICAL NEED/ EXISTENCENCE NEED - basic needs/ man’s
need in order to survive (Fees, wages, salaries)
2. SAFETY NEED - Safe working environment (retirement pay- safety need of
man)
3. SOCIAL/LOVE NEED - you need to relate with people, need to become
friendly, need to belong
 4. ESTEEMED SELF-RESPECT NEED - To be recognized for our opinions,
5. SELF-ACTUALIZATION NEED

TRAINING AND DEVELOPMENT - imparting knowledge and skills in order for

people to achieve the desired result.
- Training is the transfer of knowledge and skills to a person to improve and
achieve the desired result.
- Development is also training and a slow and continuous process in training
for people to learn additional jobs to train them in a position in the company.