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“The aim of marketing is to know and understand the customer so well that the product or service fits him

and sells itself.” Peter Drucker CHAPTER I The Problem

RATIONALE Successful businesses, companies, trade outlets, and allied institutions to a large extent depend on marketing as the main system for monitoring and adapting to the increasingly changing marketplace. The marketing practice is not simply selling or advertising as perceived by some marketing educators or even sales and marketing executives, but more importantly, a whole process of matching the company to its best opportunities, in response to the need of the times. “Selling, with all its complexities, is only a phase of the total marketing effort. It represents one of the so-called marketing functions, defined as those activities that help facilitate the flow of goods from the producer to the consumer. All marketing activities are aimed at fostering increased sales at some time and in some way. In fact, such activities are designed purposely to winning a large, secure share of profitable markets.” 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. (Lamb, Hair, McDaniel 2010) Entrepreneurship, in the simplest sense, refers to the ability of an individual to determine and come up with the proper combination of the resources available in his environment and

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transform this into an output of either goods or services to obtain a fair profit at the price the entrepreneur sets. As of 2009 count, there are 780,437 business enterprises operating in the Philippines and employ 70% of the workforce. Of these, 99.6% (777,357) are MSME‟s of which 91.4% (710,822) are micro enterprises, 8.2% (63,529) are small enterprises, and 0.4% (3,006) are medium enterprises. In region 1, there are 42,224 MSME‟S which generated a total employment of 131,215 - 88,242 employees for micro enterprise, 35,448 employees for small enterprises, 8,087 employees for medium enterprises. (www.dti.gov.ph/NSO Industry and Trade Statistics Department, 2009) Recognizing the potential of small and medium enterprises (SMEs), the government has declared policies to promote, support, strengthen, and encourage the growth and development of micro businesses in consonance with the trend towards economic globalization. Entrepreneurship gives social benefits especially in times of economic crisis. The SME‟s serve as the foundation for employment and confidence for countries of poor economy. When jobs in the formal private sector and government are lost, the number of informal sector SME‟s often increases because these enterprises have low barriers to entry and maybe the only feasible alternative for many people to earn a living. They provide an affordable supply of consumer goods. Also, SME‟s are usually at lesser disadvantage than larger firms when local currencies decline in value and imports become more costly because the goods produced by the SME‟s typically have less imported content than those of their competitors. While SME”s are usually more labor - intensive, they require less skilled labor. As a result, the relative competitiveness of SME‟s may even improve in a weak economy.

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The marketing practices of Home-based industries are taken into consideration in this study for the purposes of helping the entrepreneurs improve their marketing strategies; enhance the marketability of the home-based products. In this connection, quality management, production, storage, marketing and good customer services are equally important in this study. In addition, this study aims to evaluate marketing practices and business opportunities, whether these are really economic opportunities and whether these are profitable. This study also aims to help the entrepreneurs develop an effective strategy to innovate their products to penetrate greater markets. The researchers choose the home based industries because after graduation they wanted to become entrepreneurs of home-based industries and would like to penetrate the potential markets in Ilocos Norte, the Philippines and even beyond. They wanted to be the pioneer in the market with quality performance both locally and internationally. Furthermore, if given the chance to be employed in those regulatory agencies which concerns these SMEs, they already have ideas to start with for the improvement and development of these SMEs.

Low prices are charged to maximize revenue through gain in market share by undercutting competitors. open society and positive cultural values. and hence to the community as a whole.. The reason for this is that self-interest drives actors to beneficial behavior. the market will settle on a product distribution and prices that are beneficial to all the individual members of a community. Feliciano R. Their key factors are political stability. (http:en//wikipedia. and withdraw capital from those less efficient in creating value. efficient public administration. .14 THEORETICAL FRAMEWORK The importance of entrepreneurship as the key link between knowledge and its commercial exploitations. (Fajardo. Investors invest in those industries most urgently needed to maximize returns. There are several other theories. which are noneconomic in nature. Growth is a process while development is a product. So. States that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it. Efficient methods of production are adopted to maximize profits. a link upon which economic growth and wealth creation depend has been already recognized.org//wiki//invisible hand 2010) Non-Economic Theories. These are some growth and development theories: Invisible Hand Theory. All these effects take place dynamically and automatically. development is the result of growth.

If the competitors all have similar strategies. Power of suppliers. Suppliers do have power. Generally competitive rivalry will be high if: There is little differentiation between the products sold between customers. If it costly for the organization to move from one supplier to another (known also as switching cost). This happens when: There is little differentiation over . Buyers or customers can exert influence and control over an industry in certain circumstances. It is costly to leave the industry hence they fight to just stay in (exit barriers). Raw materials are needed to complete the finish product of the organization. A starting point to analyzing the industry is to look at competitive rivalry. It identifies five forces that determine the long-run profitability of a market or market segment. If it is easy for customers to move to substitute products for example from coke to water then again rivalry will be high. A model that can be used as tool to better develop a strategic advantage over competitors within an industry. If there is no other substitute for their product.15 1994) Porter’s Five Forces model of strategizing the market. If entry to an industry is easy then competitive rivalry will likely to be high. Competitors are approximately the same size of each other. These forces could be the basis of identifying marketing practices within and outside the organization. This power comes from: If they are the only supplier or one of few suppliers who supply that particular raw material. Competitive rivalry. Suppliers are also essential for the success of an organization. Power of buyers.

would government legislation prevent them or encourage them to enter the industry. Switching to another product is not costly. Threat of substitutes Are there alternative products that customers can purchase over your product that offer the same benefit for the same or less price? The threat of substitute is high when: Price of that substitute product falls. The threat of a new organization entering the industry is high when it is easy for an organization to enter the industry i. how quickly they can achieve economy of scales. would they have access to suppliers. Threat of new entrant. . An organization will look at how loyal customers are to existing products.16 the product and substitutes can be found easily. Buyers are willing to substitute. It is easy for consumers to switch from one substitute product to another. entry barriers are low. Customers are sensitive to price.e.

17 SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impacts of inputs on costs or differentiation Switching costs of firms in the industry Presence of substitute input Threat in forward integration Cost relative to total purchases in industry THREATS OF NEW ENTRANTS Barriers to entry Absolute cost advantage Propriety learning curve Access to input Government policy Economies of scale Capital requirement Brand equity Switching costs Access to distribution Expected retaliation Propriety products DEGREE OF RIVALRY Exit barriers Industry concentration Fixed costs/ variable added Industry growth intermittent overcapacity Switching costs Brand identity Diversity of rivals Corporate stakes THREATS OF SUBSTITUTE Switching costs Buyer inclination to substitute Price performance Trade – off substitutes BUYER POWER Buyer bargaining Buyer volume Buyer information Brand identity Price sensitivity Threat of backward integration Product differentiation Buyer concentration vs Industry Substitutes available Buyer‟s incentives Figure 1. Porter’s Five Forces of Strategizing the Market .

and number of years they are in the business. while their business profile shall be described in terms of the capitalization. which shall attempt to determine how the present marketing problems and practices affects the home based industries in the locality. place and promotion. age. . highest educational attainment. The marketing practices and problems of home based industries will focus along the four P‟s in marketing. price. The personal profile shall include their sex. The profile of the entrepreneurs and marketing practices and problems of home-based industries comprise the independent variables of the study while strategies to enhance marketability of home based products constitute the dependent variable of the proposed study. civil status. the product. Two components of the profile of home based industry owners are considered in the study – personal (socio-demographic) and business profile variables.18 CONCEPTUAL FRAMEWORK The research paradigm shown in Figure 1 depicts the conceptual framework of the study. which will be the basis in developing or enhancing marketing strategies for the study. ownership.

highest educational attainment  Business profile of the home-based industries . Research Paradigm . price.promotion  Problems encountered by the entrepreneurs in terms of the practices adapted product. promotions.capitalization .age . and .number of years in business Strategies to Enhance Marketability of Home .ownership .price. .19  Socio-demographic profile of the Entrepreneurs . Figure 2.Based Products  Marketing practices adapted by the entrepreneurs .civil status .product.line of business .place.sex . place. .

price. highest educational attainment? 2. Specifically.20 STATEMENT OF THE PROBLEM Statement of the Problem Generally. sex. place.2 product.2 3.3 3. this study determined the marketing practices and problems of home-based industries in Ilocos Norte as basis in developing strategies to enhance marketability. civil status.1 1.4 age.1 4.3 2. and promotion? 4.1 3.2 1.4 ownership.4 product.1 2. answered the following problems: 1.2 2. What is the socio-demographic profile of the entrepreneurs in terms of: 1. line of business capitalization Number of years in the business? 3.3 1. price.based industries in terms of the following: 2. What are the marketing problems encountered by the entrepreneurs along: 4. What is the business profile of the home . . What are the marketing practices followed by the entrepreneurs along: 3.

What strategies can be proposed to enhance marketability of home-based industries? Scope and Delimitations of the Study This study was focused on the marketing practices and problems of the home-based industries in Ilocos Norte.4 place. The study will provide material evidence that benefits the following: Home .based entrepreneurs. . marketability and profitability of home-based products. . There are forty six (46) home-based business registered with the Department of Trade and Industry . The study determined the present stability. This study will therefore be beneficial to the homebased entrepreneurs in order to improve their socio-economic life and insure their economic activity.Ilocos Norte providing and supplying the needs of the people. 5.3 4. although only twenty (20) were taken as samples for this study. promotions. which were the bases in developing strategies to enhance marketability and export performance. Importance of the Study: The marketing practices of home-based industries are taken into consideration in this study for the purpose of helping the entrepreneurs improve their marketing strategies.21 4. enhance the marketability of the home-based products. This study was conducted from June 2011 to March 2012.

. This refers to all interactions between a customer and a product provider at the time of sale. and thereafter. The result of the study will affirm that the home-based entrepreneurs are focusing to consumer‟s demand. Other Regulatory Agencies. This study will also provide Local Government Units (LGU‟s) on basis of adapting measures to ensure the quality and safety of home-based products for the benefit of both producers and the consuming public. The Researchers. trainings and programs to improve the quality and packaging of homebased products so that they would be more competitive in the market. Definition of Terms: The following terms are hereby defined for the guide of the reader. This study would serve as reference material for future researchers on assessing the quality and profitability of home-based products.22 Consumers. Results of the study will be a basis of the regulatory agencies to develop more intensive researches. Customer service. Customer service adds value to a product and builds enduring relationship. The outcome of the study will serve as guide for them to engage in homebased businesses in the future and improve the same if they will be employed in the regulatory agencies conducting oversight supervision over the industry. Other Researchers. DTI. DOST.

It refers to the management process through which goods and services move from concept to the customer. It refers to the ultimate and exclusive right conferred by a lawful claim or title. Ownership. merchandising. partnership. selection. packaging. distribution. It refers to the number of years the industry has been operating until the conduct of the study. it consists in coordination of four elements called 4P's: (1) identification. including product features. handicrafts. especially as these elements affect sales result. and marketing budget. and (4) development and implementation of a promotional strategy. use. Marketing. This refers to the levels and interplay of the elements of a product's or service's marketing efforts. etc. (3) selection of a distribution channel to reach the customer's place. corporation or cooperative. Place. pricing. rent. whether single proprietorship. possess. sell. It refers to the general category applied to the home – based industries for example meat processing. cooperative. give away. pottery. As a practice. and subject to certain restrictions to enjoy. . and development of a product. This pertains to any business activity/enterprise engaged in industry. It refers to the location of the market and means of distribution used in reaching it. Number of years in business. or corporation. Marketing Mix. occupy. (2) determination of its price. partnership. or even destroy an item of property. agri-business/services. It could be single proprietorship. advertising.23 Home – based industries. Line of business.

It refers to the advancement of a product. Profile. and highest educational attainment. Business profile covers the number of years in operation. civil status. . sex. line of business and number of workers. weight. It refers to the manual. Their personal profile is described in terms of their age. Product. or other measure of a good or service.24 Price. usually repeated to create multiple units of the same item. It refers to a good or service that most closely meets the requirements of a particular market or segment and yield enough profit to justify its continued existence. The term implies personal and business profile of the home – based entrepreneurs who serve as respondents of the study. mechanical or chemical steps used to create an object. Promotion. Generally involves the use of raw materials. Production process. or point of view through publicity and/or advertising. idea. It refers to a value that will purchase a definite quantity. machinery and manpower to create a product.

Magna Carta of Micro.” The term “independently owned means ownership is by a private individual. must have value falling under the following categories: By Asset Size* Micro: Small: Medium: Large: Up to P3. 2003). plant and equipment are situated.000.25 CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES This chapter presents reviewed materials which have both direct and indirect hearing of the study. cooperative.000. MSMEs may also be categorized based on the number of employees: .000. agri-business/services.001 .000. SMALL BUSINESS DEFINED A small business is one in which is “independently owned and operated and which is not dominant in its field of operation.P100. or a corporation.P15. partnership. inclusive of those arising from loans but exclusive of the land on which the particular business entity's office.000.000 P3. The term “not dominant” indicates that a small business does not control a sizeable share of its market (Medina. a partnership.001 . Small and Medium Enterprises (RA 6977 amended by RA 9501 of 2008) defines Micro.000 P15.000.000 above P100.000 Alternatively. small. and medium enterprises (MSMEs) as any business activity/enterprise engaged in industry. whether single proprietorship. or corporation whose total assets.

199 employees More than 200 employees (*As defined under Small and Medium Enterprise Development (SMED) Council Resolution No. 2 promotes. The Magna Carta stipulates a mandatory lending quota for financial institutions at 6% of loanable funds to small enterprises.9 employees 10 -. Barangay Micro Business Enterprises (RA No.Four guiding principles were set as key policies for SME development: A minimum set of rules and simplification of procedures and requirements. 01 Series of 2003 dated 16 January 2003) The Declaration of Policy. up to 2007. RA 9501. support entrepreneurs. reduction in local taxes. encouragement of private sector participation. & ensure their continuing viability & growth and thereby attain countryside industrialization. 9178 of 2002) The Barangay Micro Business Enterprises Act of 2002 was enacted to support eligible microenterprises as well as the informal sector through incentives to local government registered barangay micro-enterprises (BMBE). Sec. particularly rural/agri-based enterprises. The State shall recognize the specific needs of the MSMEs & shall undertake to promote entrepreneurship. strengthens and encourages the growth and development of MSMEs in all productive sectors of the economy. . and decentralization. exemption from income tax. supports.26 Micro: Small: Medium: Large: 1 .99 employees 100 -. and 2% to medium enterprises. coordination of government efforts for coherence of objectives. encourage the establishment of MSMEs.

Entrepreneurs need manpower for their business operation. This is true especially when these entrepreneurs are already able to . Furthermore. It has been found out through international research that entrepreneurs tend to multiply during times of economic slumps and recessions. They make life more comfortable and convenient for us.27 exemption from payment of minimum wages. it is the small and medium enterprises that make up the great bulk of the Gross Domestic Product (GDP) of a country. This is particularly true in Southeast Asia. and technology assistance from government agencies. business would be a logical choice for livelihood. Contributions of Entrepreneurship to the Economy Entrepreneurship employs the various resources present in the economy. financial support from government financial institutions. the contribution of entrepreneurs is their ability to gain international popularity and prestige for their country. It is said that entrepreneurship is the backbone of the Philippine economy. Another contribution of entrepreneurs is their ability to innovate goods and service. They provide employment opportunities to various individuals. and this is precisely what entrepreneurs bring to society. Contrary to the popular belief. They make products more accessible and easier to use. Many of these resources tried to be utilized and maximized. therefore. Professional growth and skills enhancement are also important contributions of entrepreneurs. If people lose employment opportunities due to economic slowdowns. The root of the word “entrepreneur” means to innovate. Economists estimate that 50-80% of the GDP of most countries actually comes from SME‟s. make productive use of otherwise non-productive resources. Entrepreneurs.

It said that all big enterprises come from small beginnings. speaking engagements and others. These people accumulate great learning experiences. Small businesses and schools offering courses for small business development and management become the seedbed of tomorrow‟s products and daily convenience. Furthermore. entrepreneurs also profoundly inspire budding and potential entrepreneurs. only business people can teach others to venture into business. workshops. When the local economy is not vibrant. Another important contribution of entrepreneurs is their willingness to take risks. which may be passed on to other business people through seminars. Importance and Benefits of Small Businesses The small business sector continues to create many of the new ideas and innovations that future generations tend to take for granted. people tend to emigrate into cities and metropolitan areas. potential or actual. and encourage local people to stay and contribute to the community‟s productivity. Local producers and suppliers of services from a great part in the day-to-day activities of every community-be it a small town or a large municipality. Although a lot of people don‟t recognize it. risks that society will otherwise be hesitant to take. it is the vibrancy of the local economy that continues to draw investors into an area. Small businesses contribute to the gross national product (GDP) of a country and meet local needs that many of the national producers do not offer.28 export their products or even bring their businesses abroad. It is said that only a master can produce a master. The entrepreneurs‟ country of origin becomes known while allowing the other country to earn via stronger currencies. likewise. or . Successful entrepreneurs become paragons for their entrepreneurs.

Needless to say. . adding to operational costs. Another key limitation of small businesses is their inability to employ specialists or highly skilled laborers in their enterprises. Running an enterprise on your own involves hard work and having to make most decision on your own. In fact.29 worse.efficient when capitalization and other resources are not abundant. businesses are open during holidays. This could mean more manual labor exhausted in producing products rather than the use of machines and equipment. catering to limited or niche market and quicker responds to trends and situations. With regard to the benefits of being small. relatively low overhead costs. Challenges for Small Businesses Being small does have some disadvantages. The need for training these laborers and consequent costs is a prime consideration for the entrepreneurs in terms of the quality and range of products he wants to offer to his clients. quality and productivity will be affected. Having a strong local economy allows a more distributed growth and development in a country. It is rather difficult to achieve economies of scale and cost . Consequently. Usually. The more enterprises the more transactions and government revenues are generated. small businesses survive and prosper for many different reasons: small businesses develop more personal relationships. to other countries. the presence of micro-enterprises and small businesses contribute to the revenues of local communities. the time involved in running an enterprise exceeds the time needed in working for an employer. Errors in production and nomconformity to quality standards of some products are bound to occur.

30 Better technology and better information (or production processes) may not necessarily be ready available for small enterprises. unlike their bigger counterparts who can afford to buy newer equipment. assuming the product features are medium distinctiveness. We can assume the product has low price elasticity. many small entrepreneurs rely on their own pockets for funding. Those challenges. their immediate family. and to maintain a research and development department. would imply that although entrepreneurship is worth pursuing either as a course or as a way of livelihood. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling . (Azarcon. 2008) Pricing Strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. has some cross elasticity there is no expectation that demand of the product will rise. Pricing strategies for products or services include the following: Competition based pricing. Products have little distinctiveness from competitor's product assuming that: product has high price elasticity. relatives and friends. Cost plus pricing Cost-plus pricing is the simplest pricing method. Unlike corporations which can easily increase capitalization by increasing offered shares of stocks. Products have perishable distinctiveness from competitor's product. et al. Competitive pricing is based on three types of competitive product: Products have lasting distinctiveness from competitor's product. Access to greater financing presents yet another formidable challenge to entrepreneurs. low cross elasticity and demand of the product will rise. it remains largely not for the fainthearted.all of this add up to a mere fraction of the capital of big businesses. Setting the price based upon prices of the similar competitor products. needless to say.

This appears in 2 forms. therefore „skimming‟ the market. Setting a price based upon analysis and research compiled from the targeted market. In market skimming goods are sold at higher prices so that fewer sales are needed to break even. are firstly dispatched into the market at a high price. To gain further market share. Market-oriented pricing. . Creaming or skimming. a seller must use other pricing tactics such as economy or penetration. Loss leader or leader is a product sold at a low price (at cost or below cost) to stimulate other profitable sales. This strategy is employed only for a limited duration to recover most of investment made to build the product. This strategy is often used to target "early adopters" of a product or service. This method although simple has two flaws. Selling a product at a high price. such as DVD players. These early adopters are relatively less price-sensitive because either their need for the product is more than others or they understand the value of the product better than others. sacrificing high sales to gain a high profit. Full cost pricing which takes into consideration both variable and fixed costs and adds a % markup. it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price. Usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range.31 price. The other is Direct cost pricing which is variable costs plus a % markup. the latter is only used in periods of high competition as this method usually leads to a loss in the long run. This method can come with some setbacks as it could leave the product at a high price to competitors.

The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction. selling a product at $3. Direct mail. An organizations promotional mix strategy can consist of: Advertising.wikipedia. ( http://en. Pertains to the sending of publicity to a named person within the organization. Selling a product service one to one. The art of good public media relations is not only to obtain favorable publicity within the media. Public Relations. Direct mail allows an organization to use their resources more effectively by allowing them to . Involves developing positive relationships with the organizations media public. The price will be raised later once this market share is gained. Setting the price low in order to attract customers and gain market share. Could involve using money off coupons or special offers. Psychological pricing designed to have a positive psychological impact. For example. based solely on the price. but it also involves being able to handle successfully negative attention.org/wiki/Pricing_strategies) Promotion Strategies A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers. Commonly used to obtain an increase in sales.00. rather than $4. Any non-personal paid form of communication using any form of mass media.99. Personal Selling.32 Penetration pricing. Sales Promotion.95 or $3.

It requires greater partnership between seller and reseller. Intensive Distribution consists of the manufacturer placing the goods or services in as many outlets as possible.learnmarketing. 2009). increasing the chance of improving sales.net/promotion. it can gain adequate market coverage with more control and less cost than intensive distribution. It is used when the producer wants to maintain control over the service level and outputs offered by the resellers. Promotions and selling your services online. (http://www. . Exclusive deals between suppliers and retailers are becoming a mainstay for specialists looking for an edge in a business world that is increasingly driven by price. the producer hopes to obtain more dedicated and knowledgeable selling. response rate increase thus. Selective Distribution involves the use of more than a few but less than all of the intermediaries who are willing to carry a particular product. Internet Marketing. It is used by established companies and by new companies seeking distributors. By personalizing their advertising.htm) Distribution Strategies Depending on the type of product being distributed there are three common distribution strategies available: Exclusive Distribution means severely limiting the number of intermediaries. (Kotler and Keller.33 send publicity material to a named person within their target segment. The company does not have to worry about too many outlets. Often it involved exclusive dealing arrangements. By granting exclusive distribution.

locale of the study. Banna. population and sampling. commercial. It is the capital of Ilocos Norte.34 CHAPTER III RESEARCH METHODOLOGY This chapter presents the research design. particularly in Laoag City . Salmorin (2006) state that a descriptive study is concerned with conditions or relationships that exist. the marketing practices and problems by the home . RESEARCH DESIGN This study employed the descriptive research design. The . The City of Laoag is a 1st class component city in the province of Ilocos Norte. The study was conducted in the province of Ilocos Norte. and industrial hub. SOURCE OF DATA Locale of the Study. although it often considers past events and influences as they relate to current conditions. Batac.based industries. opinions that are held. processes that are going on. Paoay and Currimao where the sample homebased businesses are located. or trends that are developing. Philippines. and the province's political. the source of the data. It is the location of the Ilocos region's only international airport. instrumentation and data collection procedure and tools for data analysis. effects that are evident. This study identified and described the personal profile of the home-based business owners and their business profile. Sarrat. It is primarily concerned with the present.

The foothills of the Cordillera Central mountain range to the east. Sarrat is famous for their hand-woven binakol cloth. about 11. Paoay. Philippines. Banna is a 4th class municipality in the province of Ilocos Norte. Sarrat. When it comes to empanada. Currimao. is the town‟s known product. The town is located in the northwest corner of the island of Luzon. Philippines. Solsona is a 4th class municipality in the province of Ilocos Norte. Piddig. San Nicoleños are famous for their traditionally designed pots (called "bangas") and their warm hospitality towards visitors. The municipalities of Banna. and the South China Sea to the west are its physical boundaries. creating north and south areas. . It is situated geographically east of Laoag City for an approximately 7km road distance. Philippines. The town is crossed and cut into two by the Padsan River. hollow blocks factories and metal crafts. Solsona and San Nicolas. Rice coffee. Batac is a component city in the province of Ilocos Norte. and Bacarra form its boundaries. Batac has the best. At present. Paoay. The town is famous for the production of charcoal briquette.35 municipalities of San Nicolas. San Nicolas is a 2nd class municipality in the province of Ilocos Norte. most industries in the city are small-scale consisting of small-scale food processing factories. jewelry-making. Philippines. Sarrat is a fourth class municipality in the province of Ilocos Norte. Vintar. which is made from specially chosen hybrid rice locally grown. Pinili and San Nicolas form its boundaries. Other municipalities that form part of its boundaries are: Vintar. rice mills. Philippines.2 km from the eastern shores of the South China Sea.

promotion. Philippines. packaging. Part III focused on the marketing practices of the entrepreneur based on pricing. table napkins. Population and Sampling of the Study. highest educational attainment.six enumerated home .six (46) home . INSTRUMENTATION AND DATA GATHERING PROCEDURE The questionnaire was the main instrument employed to obtain information from its twenty (20) respondents. Pinili in the East. which will cover the ownership. civil status. advertising and distribution. South China Sea in the West. number of years in business and number of workers. line of business. which will cover the age. The top twenty home – based industries based on capitalization among the forty.based businesses registered with the Department of Trade and Industry. Handloom products such as blankets. Part IV focused on the marketing problems encountered by the home-based industries. There are forty . Part II focused on the business profile. Philippines. Paoay and Batac in the North. gender. table runners and clothing materials are the famous in the municipality. and.36 Paoay is a 4th class municipality in the province of Ilocos Norte.based industries were taken as sample for the study. The following were the major part of the questionnaire: Part I will focus on the respondent‟s profile. Currimao is a 5th class municipality in the province of Ilocos Norte. Surrounded by Badoc and in the South. Native delicacies are the town‟s pride. . pillow cases towels placemats.

51 – 5.00 3.51 – 3.51 – 2. TOOLS FOR DATA ANALYSIS The following statistical tools will be used in analyzing the data gathered: For sub – problems 1 and 2. letters were forwarded to the top 20 highest capitalized home-based industry owners with the approved communication from the Dean of School of Business and Accountancy. The questionnaire was administered from September to October 2011.00 – 1. For sub – problems 3 which delved on the practices adapted by the respondents.50 1. The floating of questionnaires.50 2.37 To facilitate the data gathering. the weighted mean was employed.50 1. and distribution and collection was done by the researchers themselves. Interpretation of the results was based on the following scale of mean values and descriptive interpretation: Scale of Mean Values 4.51 – 4. frequency count and percentage together with the mean will be employed. which will focus on the personal and business profile of the home – based industry owners.50 Descriptive Interpretation Always practiced Often practiced Sometimes practiced Seldom practiced Never practiced .

50 1.00 3.problem 4 which determined the problems encountered by the respondents.51 – 2.00 – 1.50 1. data analysis will also be done by way of weighted mean.51 – 3.51 – 4. Data interpretation was based on the following scale: Scale of Mean Values 4.50 2.50 Descriptive Interpretation Very Serious Serious Slightly Serious Very Slightly Serious Not a Problem .For sub .51 – 5.

The results are presented in Table 1. analyzes and interprets the data gathered in view of the questions dealt with in the determination of the marketing practices and problems of home-based industries in Ilocos Norte. The entrepreneurs are sparingly distributed along the different age brackets with the youngest belonging to the 21 to 25 age bracket and the oldest is above 60 years of age. an individual who gets into the stage of adulthood. civil status and highest educational attainment. the mean age of the entrepreneurs is 44 years. ANALYSIS AND INTERPRETATION OF DATA This chapter presents. Socio-Demographic Profile of the Home Based Entrepreneurs in Ilocos Norte The socio-demographic profile of the 20 entrepreneurs who comprised the respondents of the study were described along four variables their age. As shown by the results reflected in the table. sex. According to the Theory of Human Development of Erik Erikson in which he described the 8 psychosocial developmental stages. Age. The findings imply that the home based industries are ventured on by adults. is characterized to be mature and self- .CHAPTER IV PRESENTATION.

00 55.00 20.00 5.00 . Sex. the home based industries are dominated by female entrepreneurs (18 or 90 percent).00 25. able to make decisions using critical analysis and could assume social and occupational roles which are among the qualities necessary for one wanting to be an entrepreneur. Socio-Demographic Profile of the Entrepreneurs n = 20 Profile Variables Age Bracket 21 – 25 26 – 30 31 – 35 36 – 40 41 – 45 46 – 50 51 – 55 56 – 60 Above 60 Mean Age Sex Male Female Civil Status Single Married Widow/er Highest Educational Attainment High School Level High School Graduate College Level College Graduate f 1 3 1 3 1 4 4 2 1 44 2 18 6 11 3 5 4 2 9 % 5.00 90. According to the results.00 10.00 20. has confidence in his or her abilities.00 15.00 5.00 20. Table 1 likewise reveals the distribution of the respondents according to sex.00 15.00 45.00 15.00 5.directed.00 10.00 30. Table 1.00 10.

As gleaned from the findings.00 5. six (6 or 30 percent) are single while three (3 or 15 percent) are widowers or widows. line of business.00 . Table 2 shows the results. capitalization and number of years in the business. the highest frequency (9 or 45 percent) is posted by the respondent-entrepreneurs who are college graduates. while two (2 or 10 percent) went to college but were not able to pursue a baccalaureate degree.00 65. It is worth noting that all of the 20 entrepreneurs involved in this study have gone through formal schooling which also means that they have acquired the needed literacy skills and knowledge which is of great help to them in running a business even in their own homes.00 25. more than half (11 or 55 percent) of the respondents are married. Table 2.00 70. Based on the results. Highest Educational Attainment.00 25. Business Profile of the Home Based Entrepreneurs in Ilocos Norte The business profile of the home based entrepreneurs was described along four variables which include ownership. The group is followed by five (5 or 25 percent) who were able to get into the secondary level but did not graduate just like four (4 or 20 percent) of the respondent-entrepreneurs.00 30. Business Profile of the Home Based Industries n = 20 Profile Variables Ownership Sole Proprietorship Partnership Cooperative Line of Business Food processing Handicraft Pottery Number of Workers 1 to 5 6 to 10 f 15 0 5 13 6 1 5 14 % 75.00 0.Civil Status.

These three ventures dominate the home based industry in the province since these are regarded as part of the Ilocano heritage. which means that for every business venture.00 10. which implies that the enterprise is run by an organized group of individuals who share in running the operations and bound by their constitution and by-laws. . In fact.00 5. having become likewise a sort of family tradition handed on from generation to generation. while five (5 or 25 percent) have only 1 up to 5 employees. According to the results. There is only one (1 or 5 percent) among the home based entrepreneurs who have 16 and more workers manning the operations of the business. The rest of the home based entrepreneurs are engaged in handicrafts (6 or 30 percent) and pottery (1 or 5 percent). both foreign and local. there is only one owner. the results reflected in Table 2 reveal that more than `half (13 or 65 percent) of the home based entrepreneurs are engaged in food processing. Only five (5 or 25 percent) are cooperatives. the number of workers under the employ of the home based industry range from 1 up to 16 and above. the enterprise is one of the distinctive attractions of the province frequented by tourists. of which the province is noted for. Number of Workers. According to the results.00 5. Majority of the entrepreneurs (14 or 70 percent) are shown to have from to 10 employees working for them.00 85. As to line of business.11 to 15 16 and above Number of Years in Operation 1 to 2 3 to 4 5 and above 0 1 2 1 17 0.00 Ownership. Line of Business. most of the home based enterprises are sole proprietorship (15 or 75 percent).

home based industries are classified as micro to small enterprises.1 Marketing Practices Followed by the Entrepreneurs Along Product Marketing Practices Along Product Quality of the product is ensured by Proper classification of raw materials Standard procedures on production Mean Descriptive Interpretation Often practiced Always practiced 4. Table 3.4 depict the results on the marketing practices of the 20 home based entrepreneurs along the four aspects namely. price. The marketing practices of the entrepreneurs along product were grouped into two – practices relative to ensuring the quality of the product and the practices relative to the enhancement of the product by making it innovative. product. The respondents indicated the frequency of their observance of each of the behavior reflective of their practice along the aforementioned aspects of marketing.1 to 3. This finding implies that a big number of the businesses have established their market share or patronage.35 4. home based industries in the province have relatively limited operational scope.80 . Marketing Practices of the Home Based Industries in Ilocos Norte Tables 3. most (17 or 85 percent) of the home based enterprises covered in this study have been operating for about 5 years and more. The rest of the respondent-enterprises are relatively new in the industry having been in operation for 1 up to a maximum of 4 years.Considering the size of their workforce.1 in terms of the obtained Likert mean scores. Because most of these ventures are family businesses. Number of Years in Operation. Marketing Practices Along Product The different marketing practices of the respondents along the aspect of product are presented in Table 3. place and promotions. As shown by the obtained figures.

On the other hand. the obtained mean score of 4.51 .50 1. The highest means score of 5. .1 reveals that the practices along product are always practiced based on the obtained composite mean of 4.67 Often practiced Always practiced Always practiced Always practiced 3.55.44 4.2. denoted that such are also always practiced by the entrepreneurs.50 4.50 1.Proper packaging and storage of finished products Product safety Cleanliness in the place of production Sub Mean Product is enhanced and made innovative through Additional variance in the products Continuously improving the proce4ss of production Procurement of guaranteed quality raw materials Adaptation and enhancement of products that are already available in the market Sub Mean Composite Mean Legend: Scale of Mean Values Interpretation 4.51 .22 5.00 4. the obtained sub mean is 4.00 3.00 .80 4.51 .50 2.00 5. In the case of the practices as to enhancing the product and made innovative.4.55.00 was obtained with both the items which state that the entrepreneurs ensure the quality of their products by product safety and by cleanliness in the place of production.67. In terms of the practices relative to ensuring the quality of the product.43 4.51 .3.94 4.55 4.5.80 along enhancing the product is the item which states that product is enhanced and made innovative through procurement of guaranteed quality raw materials.55 Often practiced Always practiced Always practiced Often practiced Often practiced Always practiced Descriptive Always practiced Often practiced Sometimes practiced Seldom practiced Never practiced Table 3. the practice which obtained the highest mean score of 4. which likewise denoted that such behavior is always practiced. which is always practiced.1.

obtained the lowest mean score of 3. The findings imply that the entrepreneurs are aware of the importance of implementing desired marketing practices along product considering their significance in ensuring the viability and success of the home based industry engaged in.5.95 Often practiced Often practiced Sometimes practiced Often practiced Often practiced Descriptive Always practiced Often practiced Sometimes practiced Seldom practiced Never practiced .51 .17 4.2.22.51 .16 4.50 Mean Descriptive Interpretation 4.51 .00 .50 1.00 3. Similarly. the item which states that product is enhanced and innovative through additional variance in products.20 3.94 in the cluster.50 1.2 presents the results on the extent to which marketing practices along price are implemented by the entrepreneurs.1.4. Table 3. The result denotes that such is often practiced.50 2. the lowest mean score of 4.2 Marketing Practices Followed by the Entrepreneurs Along Price Marketing Practices Along Price Price is Based on costs incurred for production with minimal mark-up Based on the supply and demand Based on competitors' pricing scheme but at a lower price Based on the current price of the products Composite Mean Legend: Scale of Mean Values Interpretation 4.In contrast.3. interpreted as often practiced was obtained with the item which states that quality of the product is ensured by proper packaging and storage of the finished products. Marketing Practices Along Price Table 3.28 3.51 .

as all three cited practices revealed similar interpretation of the obtained mean scores.03. methods of distribution and mode of transportation. The highest mean score of 4.3 presents the results. The findings imply that the home based entrepreneurs possess marketing acumen such that they are very much aware of the different forces which must be handled and confronted with price. As gleaned from the table. As regards making the place of distribution attractive to customers. practices along price are often practiced. how the place is improved. the practices are always put into action. . indicated that overall.28 was obtained with the practice wherein price is based on the supply and demand. denoting that such is sometimes practiced only. these practices are followed or implemented often by the respondents. based on the obtained composite mean of 3.95. Marketing Practices Along Place The different marketing practices which are followed by the entrepreneurs along place are subdivided into five aspects – in terms of the practices relatives to how the place of distribution is made attractive to customers.17. although the item is often practiced. Table 3. The findings denoted that the respondents observe cleanliness and sanitation and makes it a point to create a friendly atmosphere. the composite mean of 4.According to the results. obtained with the marketing practices along place. good public relations and continuing efforts to improve the ambiance. the item which states that price is based on competitors’ pricing scheme but a lower price obtained the lowest mean score of 3. On the other hand. channels of distribution.

15 Often practiced Pick-up and delivery 4.58 Always practiced Observation of cleanliness and sanitation 5.38 practiced Composite Mean 4.97.06 Often practiced Public utility vehicle 3.25 Often practiced Sub Mean 3.02 Sometimes practiced Freight services 2.73 Often practiced Private cars/jeeps/trucks 4.90 Always practiced Sub Mean 4.00 Always practiced Requiring salespersons to have good public relations skills 4.97 Often practiced Channels of distribution Retailers or wholesalers only 4.03 Often practiced .87 Always practiced Place of distribution is improved by Expansion of outlets 4. Table 3.friendly atmosphere 5.71 Sometimes practiced Sometimes Sub Mean 3.56 Often practiced Ultimate consumers only 3.54 Often practiced Delivery only 4.As to improvement of the place of distribution.00 Always practiced Establish a customer .72 Often practiced Sub Mean 3.3 Marketing Practices of the Entrepreneurs Along Place Marketing Practices Along Place Mean Descriptive Interpretation Place of distribution is made attractive to customers by Continuously improving the ambiance 4.26 Often practiced Putting up of additional outlets in nearby locations 3.68 Often practiced Sub Mean 3.98 Often practiced Mode/s of transportation used in the delivery of products to consumers Hired jeeps/bus/tricycle 3. The result shows that the respondents work on the expansion of their outlets and put up additional outlets in nearby locations.95 Often practiced Methods of distribution Pick-up only 3. the findings revealed that the marketing practices are carried out often based on the obtained sub mean of 3.56 Always practiced Distributors only 3.

In terms of methods of distribution.50 Descriptive Always practiced Often practiced Sometimes practiced Seldom practiced Never practiced In terms of channels of distribution. followed by delivery only with a mean of 4. .Legend: Scale of Mean Values Interpretation 4.50 1.00 .51 . When it comes to the modes of transportation used by the respondents.15 and third is pick up only which obtained the mean of 3. the findings showed the different practices such as the use of pick-up and delivery obtained the highest mean score of 4. Often practiced by the entrepreneurs as to channel of distribution is that of relying on distributors only.4. assessment of customer satisfaction.71 was obtained with freight services. denoting that their use as mode of distribution is sometimes practiced only.25.5. although all were interpreted similarly. retailers or wholesalers only are shown to be the channel that is always practiced as indicated by the obtained mean of 4. Results are shown in Table 3.06.51 .2.51 . Marketing Practices Along Promotion The marketing practices along promotion were directed on product promotion.56. other customer services and approaches to maintain customer patronage.00 3.50 2.50 1.3.4. Collectively these practices are followed often.56. as shown in the lowest obtained mean of 3.51 . the findings show that the preference is on private cars/jeeps or trucks which obtained the highest mean score of 4. denoting that such is often practiced. The lowest mean of 2.1.54.

50 1.83 Customer preferences are based on the number of sales 4.4.51 .15 Other customer services Food tasting for free 3.75 Maintain cleanliness of the place of product 4.3.Table 3.00 3.4.50 3.5.93.95 Sub Mean 3.50 2.76 Food tasting for free 3.54 Composite Mean Legend: Scale of Mean Values Interpretation 4.50 Sub Mean 4. .50 1.1.36 Free delivery 3.66 Approaches to maintain customer patronage Continuously improving the product /customer service quality 4.2.38 Customers' satisfaction on the products is assessed through Interviews and feedbacks from customers 3.50 Trade fairs and exhibits 4.51 .51 .00 .93 Descriptive Always practiced Often practiced Sometimes practiced Seldom practiced Never practiced Always practiced Often practiced Always practiced Often practiced According to the Table 3.53 Sub Mean 3.4 Marketing Practices of the Entrepreneurs Along Promotion Marketing Practices Along Promotion Mean Descriptive Interpretation Sometimes practiced Seldom practiced Always practiced Sometimes practiced Often practiced Sometimes practiced Often practiced Often practiced Often practiced Often practiced Sometimes practiced Often practiced Often practiced Product promotion is done by Advertising in broadcast media 2.50 Bonus packs 3.33 Sub Mean 4.59 Print media 2.13 Exposure to trade fairs and exhibits 4.51 . the marketing practices relative to promotion are shown to be often practiced as revealed by the obtained composite mean of 3.

1 up to 4.15. which means that the entrepreneurs highly prefer such venues for the promotion of their products. as indicated by the sub mean of 3.In terms of means in which product promotion is made.76 is promotion by way of trade fairs and exhibits. Among the approaches that are carried out to maintain customer patronage. which is understandable considering the cost involved.65. Practices along assessment of customer satisfaction are often practiced by the entrepreneurs. as indicated by the obtained sub mean of 4.50 is product promotion through print media. . Shown to be seldom practiced based on the lowest mean of 2.50. Often practiced is the customer satisfaction assessment through trade fairs and exhibits as revealed by the highest obtained mean of 4. one of their main goals is that of getting feedbacks as regards the product they can offer to the clients.3 reflect the results on the marketing problems which are encountered by entrepreneurs engaged with the various home-based industries.75.95 was obtained with free delivery.38. always practiced is the practice of continuously improving the product/customer service quality as indicated by the highest obtained mean of 4. the marketing practices are done often as shown in the obtained sub mean of 3. The findings imply that since they interact directly with customers during trade fairs and exhibits. The marketing practice which obtained highest mean of 4. Problems Encountered by the Home Based Industries in Ilocos Norte Tables 4. the practices are shown to be sometimes practiced only. The result is expected considering the advantages of joining trade fairs and exhibits wherein the entrepreneurs are given the opportunity to get in close contact with customers. as an additional customer services that is provided by the respondents. The highest mean of 3. Along other customer services.

11 2. Table 4. Marketing Problems Along the 4 Ps The different marketing problems encountered by the home based entrepreneurs along product.11 3. price.1 Marketing Problems Encountered by the Entrepreneurs Problems Along Product Deteriorating quality over time Quality is dependent on the raw materials Quality is dependent on the production processes Sub Mean Along Price Difficulty in increasing price when cost of materials increases When cost of materials increase.namely.11 2.82 2.85 2.68 3.93 3.43 Moderately serious Moderately serious Moderately serious Moderately serious Slightly serious Slightly serious Slightly serious 3.22 3..40 3.The different problems were clustered into three. Table 4. product and promotion. the marketing problems met by the entrepreneurs along the four Ps of marketing – price.1 below presents the results.14 3.99 Moderately serious Moderately serious Moderately serious Moderately serious . place and promotion were determined and are discussed in this section. second cluster includes the problems encountered with customers and thirdly. there is standard pricing Sub Mean Along Place Cost of delivery Limited channel of distribution Unreliable delivery Sub Mean Along Promotion Expensive promotional strategies Identification of best promotional strategy Sub Mean Composite Mean Mean Descriptive Interpretation Moderately serious Moderately serious Highly serious Moderately serious 2.00 3.33 2. place.26 2. the problems encountered by the entrepreneurs relative to production.

26. Price.50 1. The findings imply that the root cause of the entrepreneurs‟ problems along price is the cost of raw materials for production as it affects greatly the price of their products.82.2. was rated higher than their problem with standard pricing when the cost of materials increase.1. is the problem on quality being dependent on the production process.50 2.14. difficulty in increasing price when cost of materials increases. was obtained with deteriorating quality over time. In contrast. The highest mean of 3. based on the obtained sub mean of 3. which means it is highly serious.5.51 . the lowest mean of 2.Legend: Scale of Mean Values Interpretation 4.51 . Place. Between the two identified problems in this aspect of marketing.68. This is because most of the . The findings imply that the production process is the most evident problem of the respondents.3. The lowest mean of 2. As gleaned from the table.00 3.00 .51 .51 . which is expected considering the escalating cost of fuel in the country.11 was obtained with the problem on unreliable delivery.4. The only problem rated to be moderately serious is cost of delivery.50 1. the marketing problems of the respondents relative to the product are moderately serious. denoting that there are shortfalls in their procedural standards. Based on the results. The results reveal that the marketing problems which the respondents encounter along price are moderately serious as shown by the obtained sub mean of 3. the marketing problems encountered by the respondents are rated overall as slightly serious. denoting that it is moderately serious.50 Descriptive Exceedingly serious Highly serious Moderately serious Slightly serious Not serious Product.

00 3. jeeps or trucks. Table 4.51 . the problems are deemed moderately serious as indicated by the obtained sub mean of 3. these are handle4d by them accordingly.83 2.4. the problems with customers are moderately serious as indicated by the obtained composite mean of 3. Problems Encountered with Customers Table 4. The findings imply that the entrepreneurs are able to deal with their customers and that even if there are difficulties met by them particularly as to attitude or behavior.08 Descriptive Exceedingly serious Highly serious Moderately serious Descriptive Interpretation Moderately serious Moderately serious Moderately serious Moderately serious .08.50.3.11. The problem on identification of best promotional strategy is rated higher than the problem on expensive promotional strategy. Delayed payments obtained the highest mean of 3.51 .50 2.5.50 2.51 .50 Mean 3.91 3. although similarly interpreted as moderately serious.entrepreneurs make use of private cars. As to promotion.2 Problems Encountered by the Entrepreneurs with Customers Problems Delayed payments Customer flight Arrogant customers Composite Mean Legend: Scale of Mean Values Interpretation 4. The findings imply that it is difficult for the respondents to determine the promotional strategy that would best work for them.2 reflects the problems encountered by the respondents with the customers. Promotion. Based on the results. hence they have a hold on them so that delivery can be made as scheduled.

51 . is only moderately serious. Table 4. which means it is manageable by the entrepreneurs. This problem nevertheless.2.50 Slightly serious Not serious Problems Encountered with Production Based on the results presented in Table 4.5.00 . The highest mean of 3.00 .51 .1.50 2.2.17 2.65 2. the lowest mean of 2. the different problems encountered by the respondents relative to production are moderately serious as denoted by the obtained composite mean of 2.03 3.61 Descriptive Exceedingly serious Highly serious Moderately serious Slightly serious Not serious Descriptive Interpretation Moderately serious Moderately serious Slightly serious Moderately serious Moderately serious Slightly serious Moderately serious Moderately serious Moderately serious .3 Problems Encountered by the Entrepreneurs in Production Problems Absence of a standard production process Poor technology/machinery used No quality standard established Fast turnover of labor Wastage Non-adherence to quality standard Change in weather Insufficient capital Composite Mean Legend: Scale of Mean Values 4.17.73 2.1.1.51 . is the problem with no quality standard established.50 1. On the other hand.4. The findings imply that the hoe based entrepreneurs have the capability to handle their problems in production. which means it is slightly serious.3.50 1.50 1.82 2.08 was obtained with the problem on change in the weather which hinders their production.61.51 .50 Mean 2.00 3.3.58 2.79 2.51 .08 2.

. and promotion? 4) What are the problems encountered by the entrepreneurs along with product. the study answered the following sub – problems: 1) What is the socio – demographic profile of the entrepreneurs in terms of: age. overall. problems which are expected to crop up with home based industries like other business organizations do not pose a major threat or risk to the entrepreneurs. civil status. pricing. sex. pricing. Summary This study analyzed the marketing practices and problems of home – based industries in Ilocos Norte. and number of years in operation? 3) What are the marketing practices followed by the entrepreneurs along with the product. they have also learned about trouble shooting such that even when things go offhand. and highest educational attainment? 2) What is the business profile of the home – based industries in terms of: ownership. line of business. place. place and promotions? 5) What strategies can be proposed to enhance the marketability of home – based industries? The nature of the research is descriptive research design because it looked into the marketing practices and problems of home – based industries in Ilocos Norte. they are still in control of everything so that their operations are not affected significantly. capitalization. CHAPTER V SUMMARY. Perhaps because they were able to learn the rudiments of the business and they have acquired the acumen to run it. Specifically. and the recommendations offered based on the findings and conclusions made.Thus. CONCLUSION AND RECOMMENDATIONS This chapter presents the summary of the findings and conclusions reached.

enhancement and made innovative. 75% of the homes – based entrepreneurs are sole proprietors. indicated that overall. indicated that they have always practiced these ways of ensuring the quality of product. In terms of pricing – the obtained composite mean of 3.Findings The salient findings of the study include the following: On the profile of business owners and their establishments. these practices are implemented often by the respondents. methods of distribution and mode of transportation – the obtained composite mean of 4. Majority of the entrepreneurs were females with 18 or 90% of the distribution. assessment of customer satisfaction. As to the practices followed by the entrepreneurs along with product . the channels of distribution. On the marketing practices followed by the home – based entrepreneurs. The different marketing practices which followed by the entrepreneurs along with place which is sub – divided into five aspects – in terms of the practices relative to how the place of distribution is made attractive to customers. 55% of the respondents are married and 45% of them are college graduates. In the number of years of operations. as the oldest. As to the practices implemented along with promotion were directed on product promotion.0. indicated that they often practiced their pricing methods. All of the business owners belong to the adult stage as their ages which range from 21. Majority of the entrepreneurs are shown to have 6 to 10 employees working for them and 1 home – based entrepreneur who has 16 workers. as the youngest. how the place is improved. up to 60. 65% of home – based entrepreneurs are engage in food processing. 17 or 85% have been operating for 5 years and 3 or 5% are relatively new to in the industry for 1 up to 4 years. The mean age was 44 obtained with the 20% frequency.55.the obtained composite mean of 4.95. other customer .

second cluster includes the problems encountered with customers and thirdly. isang tuka income. The packaging of the home – based products should be developed with appropriate aesthetics to . the following conclusions are drawn: Home – based industries in Ilocos Norte can survive regardless of the presence of marketing problems.08. The marketing problems along the 4 Ps – obtained a composite mean of 2. indicated that promotional practices were often practiced by the respondents. unique products and a friendly atmosphere.99.6. On the problems encountered with the customers – obtained a composite mean of 3. On the problems encountered by the entrepreneurs. the problems encountered relative to production. Recommendations From the foregoing findings and conclusions. place and promotion. On the problems encountered with production – obtained a composite mean of 2. price. indicated that these problems relative to customers were moderately serious.services and approaches to maintain customer patronage – the obtained composite mean of 3. enhanced value proposition.” They must learn to think outside the box in order to view a wider market and acceptance of their home – based products.93. indicated that problems relative to production were moderately serious. Conclusions Based on the findings of the study. the following are recommended: The researchers recommend that the entrepreneurs must learn to compete by differentiation. indicated that overall these problems were moderately serious. However they must not be easily contented with the “pang – isang kahig. To the neophytes in this kind of business they have to adopt strategies to its extent to make them enhancing their marketability. The different problems were clustered into three – namely the marketing problems met by the entrepreneurs along the four Ps of marketing – product.

should also implement a policy to hotel owners. The Department of Trade and Industry must implement campaigns in patronizing home – based products thru proposing its value and uniqueness. to offer it. . Develop SME financing support programs and strengthen the institutions that provide direct and appropriate financial services to SMEs. They should do further researches on how innovate to attract buyers from surrounding communities.further attract consumers. The local government unit. The agency should also conduct seminars especially on food safety to educate the entrepreneurs on proper handling of foods. They must have knowledge on market conditions and keep updated with the changes in trends. They should provide support for industrial linkages of SMEs with leading local operational industries to strengthen and improve SME operational environment. They should observe standardized production procedures to ensure the quality of their products. souvenir shops or in areas where tourist visits. as a support in uplifting the home-based products.

BIBLIOGRAPHY Books Azarcon, Ernie Roy B., et al., 2008. Entrepreneurship Principles & Practices (A Modular Approach), 2nd edition. Baguio City: Valencia educational Supply. Kotler, Philip and Keller, Kevin Lane. 2006.Marketing Management,12th edition. New Jersey: pearson Education Inc. Lamb, Hair, McDaniel, 2010 Medina, Roberto, 2008. Entrepreneurship and Small Business Management. Quezon City: Rex Printing Company.

Internet www.dti.gov.ph/NSO Industry and Trade Statistics Department, 2009) www.learnmarketing.com/porter5forces

http//en.wikipedia.org./wiki/invisiblehand

APPENDICES

APPENDIX A LETTER REQUEST TO THE DTI FOR THE LIST OF HOME – BASED INDUSTRIES IN ILOCOS NORTE July 28, 2011 Engr. Benjamin Garcia Provincial Director Department of Trade and Industry Ilocos Norte Dear Sir: The undersigned are fourth year students of School of Business and Accountancy, Divine Word College of Laoag and currently taking up the subject BA OO9 – Introduction to Business Research. We would like to ask permission from your good office for us to conduct our study entitled “Marketing Practices and Problems of Home-Based Industries in Ilocos Norte.” In line with this, may we request for the list of registered small and medium enterprises with their line of business/production. Thank you very much for your support to this academic endeavor.

Respectfully yours, (Sgd.)Catherine V. Hidalgo (Sgd.)Jefferson E. Ilac (Sgd.)Venice Pauline F. Luis (Sgd.)Madelynne M. Miguel (Sgd.)Raina Krista G. Pedro (Sgd.)Evangeline G. Simeon

Foronda Thesis Adviser Noted by: (Sgd.Ranay Dean. School of Business and Accountancy APPENDIX B LETTER REQUEST TO THE RESPONDENTS Dear Sir/Madam.)Raina Krista G. Good day and God Bless you.)Dr. Sylvia Lalaine Grace L. Greetings with peace! We.” We would like to ask your help by answering our questionnaire about the marketing practices adopted and the problems you encounter with regards to your homebased business.)Prof. Ilac (Sgd. Hidalgo (Sgd. Rest assured that the data we will gather from you will be kept confidential and for reference purposes only.)Madelynne M.)Catherine V. (Sgd. Respectfully yours. Thank you for your consideration. are conducting our research entitled: “STRATEGIES TO ENHANCE THE MARKETING PRACTICES AND PROBLEMS OF HOME-BASED INDUSTRIES IN ILOCOS NORTE.)Jefferson E. the students of Bachelor of Science in Business Administration from Divine Word College of Laoag. Frelyn L. Pedro .(Sgd. Miguel (Sgd.

)Evangeline G. Personal Profile of Entrepreneurs/Vendors Name (optional): Age: ______ 20 below ______ 21 – 25 ______ 26 – 30 ______ 31 – 35 ______ 36 – 40 ______ 41 – 45 ______ 46 – 50 ______ 51 – 55 ______ 56 – 60 ______ Above 61 _______ _________________________________ Gender: ( ) Male ( ) Female ( ) Married ( ) Widow(er) ( ) Separated Civil Status: ( ) Single Educational Attainment: ( ) Elementary Level . Part I.Ranay Dean.)Dr. Simeon (Sgd.)Venice Pauline F. Please put a check ( ) or write the answer(s) in the spaces provided for. School of Business and Accountancy APPENDIX B QUESTIONNAIRE INSTRUCTIONS: This questionnaire is designed to gather information in the present status of the Marketing practices and problems encountered by the home-based industry owners in Ilocos Norte.(Sgd. Sylvia Lalaine Grace L. Luis (Sgd. Foronda Thesis Adviser Noted by: (Sgd. Frelyn L.)Prof.

Business Profile 1. Number of Workers _______ 1 – 5 _______ 5 – 10 _______ 11 – 15 _______ 15 above 4.( ) Elementary Graduate ( ) High School Level ( ) High School Graduate ( ) College Level ( ) College Graduate : Degree Completed: __________________________ Part II. Line of business _______ Food processing _______ Handicraft _______ Pottery 3. Ownership _______ Sole Proprietorship _______ Partnership _______ Cooperative ______ Corporation 2. Number of years in operation ______ 1 – 2 3–4 above 5 .

4 – often. 2 – seldom. Base on costs incurred production with minimal mark – up Base on the supply and demand 5 5 4 4 3 3 2 2 1 1 Base on competitors’ pricing scheme but at a lower price 5 4 3 2 1 Base on the prevailing price of the product Keeping the price of the product to close to the profit margin set by the LGU 5 4 3 2 1 5 4 3 2 1 PRODUCT How do you enhance and make your product innovative? Accurate blending of ingredients Additional flavors Maintain the quality of product 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 How do you sustain the excellent value of the product? .PART III: MARKETING PRACTICES Instructions: encircle the numerical rating corresponding to the frequency of observance of each of the given behavior based on the following scale: 5 – always. 3 – sometimes. 1 – never PRICE Strategies in pricing the product.

Purchase of quality of ingredients Proper treatment and storage Continuously improving the process of production Customers’ satisfaction over the product Interviews and feedbacks from consumers Customer preferences are based on the number of sales Exposure to trades fairs and exhibit Approaches to maintain customer foods Continuously improving the product quality/ customer service Maintain cleanliness of the place of product 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 5 4 3 2 1 5 5 4 4 3 3 2 2 1 1 5 4 3 2 1 5 4 3 2 1 PLACE How do you improve safety and sanitation of your product? Cleanliness is always observed Improve the handling of the product 5 4 5 3 4 2 3 1 2 1 How do you improve and innovate your distribution and place? Putting up of outlet/s Additional manufacturing location Additional distribution channels 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 .

What are your channels of distribution? Retailers or wholesalers only Distributors only Ultimate consumers only All of the above 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 Methods of distribution Pick –up only Delivery only Pick – up and delivery Free delivery 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 Modes of transportation used to deliver the products to your consumers Hired jeeps/bus/tricycle Private cars/jeeps/trucks Public utility vehicle Freight services 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 PROMOTION How do you promote your product? Advertising in broadcast media Print media Trade fairs and exhibits 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 .

Food tasting for free Bonus packs Food tasting for free 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 IV. 3 – moderately serious. 2 – slightly serious. 4 – highly serious. 1 – not serious PRICE Problems encountered in setting the price Difficulty in increasing price when material costs increases When materials increases there is no standard pricing 5 4 3 2 1 5 4 3 2 1 Delayed payments of customers PRODUCT Problems on the product Easy spoilage Deteriorating quality over time Quality is dependent on the raw materials Quality is dependent on the production processes No standard production process 5 4 3 2 1 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 5 5 4 4 3 3 2 2 1 1 . PROBLEMS ENCOUNTERED IN: Instructions: encircle the numerical rating corresponding to the frequency of observance of each of the given behavior based on the following scale:5 – exceedingly serious.

Poor technology/ machinery used in production No quality standard established in production Fast turnover of labor Wastage No adherence to quality standard PLACE 5 5 5 5 5 4 4 4 4 4 3 3 3 3 3 2 2 2 2 2 1 1 1 1 1 Problems encountered in the distribution of the product Cost delivery No enough channel of distribution Unreliable delivery Change in weather PROMOTION Problems encountered in promoting your product Expensive promotional strategies Identification of best promotional strategy Customer flight Arrogant customers 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 .

Barani. 6. Ilocos Norte Poblacion.Ilocos Norte Brgy. Ilocos Norte Magat salamat. Sinamar. Ilocos Norte Brgy. Ilocos Norte Poblacion. Ilocos Norte Adams. Salbang. laoag City Brgy. Ilocos Norte Brgy. laoag City Brgy. Batac. Currimao. Cabungaan-B.M Paoay. Batac City Brgy. Nagbacalan. Nagbacalan. Salbang. Batac. Barani.M Paoay. laoag Citry Brgy. Ilocos Norte Brgy.M Paoay. Ilocos Norte Sarrat. Batac. laoag City Piddig.Ilocos Norte Brgy. Ilocos Norte .APPENDIX D LIST OF HOME – BASED INDUSTRIES IN ILOCOS NORTE NAME OF FIRM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Cormel Foods Lucky Theo Food Products Muebles Yloco Sarrat Binakol Association Sugarcane Products Producers Association Scufynd Food products Lutong paoay Chichacorn Nagbacalan Loomweavers MPC Aleli Joy's Inabel Victor Angel's Cornick Supreme Lutong Ilocos Namnam's Food products Nana Rosa's Cornick Asosasyon ti Agar-aramid ti Arak Saud shellcraft producers Association Del Mar Mother shellcraft MPC Adam's Tigergrass Broommakers Ass. Ilocos Norte Brgy.Pagudpud. Ilocos Norte Brgy. Mumulaan.Ilocos Norte Adams. Saud. Salbang. Vinmtar. Ilocos Norte Brgy. 8. banna.6. San Nicolas. Ilocos Norte Magat salamat. Payas.M Paoay. Burgos. Burgos. Paaya. Paoay.Ilocos Norte Brgy. 1. Banna.San Nicolas. Ilocos Norte Brgy. Paoay. Golda's Marketing Golda's noodle factory Basilio's Meat Product Pascua Meat products Glory' Empanada Glomy's emapanda San nicolas Bawang Association Elan gardens Ref mad farms Gladfood Products Colyn Food Products Sagpat Honey Collectors Association barangay Nutrition scholars Currimao Native Delicacies Association Siwawer Garlic Association Burgos Local Council for Women San nicolas damilian Association Ama Joe pork skin Rouesa's Puto Veronica's Ceramics Mumulaan MPC ADDRESS 54 Andres Castro St. San Nicolas.Ilocos Norte Brgy.Ilocos Norte Poblacion. Ilocos Norte Poblacion.M Paoay.Ilocos Norte Brgy. Binacag. Ilocos Norte Brgy.Pagudpud. Salbang. 6. Saud. Batac. Ilocos Norte Brgy. Ilocos Norte Brgy. San Nicolas.San Nicolas. Sagpat. Veronica. Paoay.Ilocos Norte Brgy.Ilocos Norte Poblacion. San Nicolas. Ilocos Norte Brgy. Ilocos Norte Brgy.Ilocos Norte Brgy.Ilocos Norte Brgy. Ilocos Norte Brgy. Salbang. Bil-loca. Paoay. Vintar. Solsona.Ilocos Norte Poblacion.

Bangui. San Roque. Ilocos Norte Brgy. Camguidan. Balaoi. Sarrat. Binacag. Ilocos norte Brgy. Iloco . Baruyen. San Jose. Bacarra. Ilocos Norte Brgy. banna. Nambaran. Pagudpud. Ilocos Norte Brgy. Batac City Brgy.39 40 41 42 43 44 45 46 Camguidan MPC Bagnos MPC Camanga MPC Manampa MPc Balaoi DASARAP Weavers and Users ASS. Ilocos Norte Brgy. Badoc. Asosasyon ti Partuat ti E-Kawayan San Juan MPC San Roque MPC Brgy. Ilocos Norte Brgy. Sarrat. Camanga.

CURRICULUM VITAE .

Ilocos Norte Bachelor of Science in Business Administration Major in MANAGEMENT ACCOUNTING 2009-Present DIVINE WORD COLLEGE OF LAOAG Laoag City.CURRICULUM VITAE PERSONAL INFORMATION Name Address Date of Birth Place of Birth Civil Status Citizenship : Catherine Villaran Hidalgo : Brgy. Ilocos Norte 2003-2007 DIVINE WORD COLLEGE OF LAOAG Laoag City. Ilocos Norte 2001-2003 Secondary: Elementary . Metro Manila : Single : Filipino EDUCATIONAL ATTAINMENT Tertiary: DIVINE WORD COLLEGE OF LAOAG School of Business and Accountancy Laoag City. 1990 : Las Pinas. 23 San Matias Sitio Dungtal. laoag City : November 29.

N : December 27. Ilocos Norte 1998-2004 Secondary: . Ilocos Norte Bachelor of Science in Business Administration Major in MARKETING MANAGEMENT 2008-Present San Nicolas National High School San Nicolas. Ilocos Norte : Single : Filipino EDUCATIONAL ATTAINMENT Tertiary: Divine Word College of Laoag School of Business and Accountancy Laoag City. San Nicolas I.CURRICULUM VITAE PERSONAL INFORMATION Name Address Date of Birth Place of Birth Civil Status Citizenship : Jefferson Espejo Ilac : Brgy. 1991 : Badoc. 7. Ilocos Norte 2004-2008 Elementary: Filipinas Elementary School San Nicolas.

Ilocos Norte Bachelor of Science in Business Administration Major in FINANCIAL MANAGEMENT 2008-Present Ilocos Norte College of Arts and Trades Laoag City.CURRICULUM VITAE PERSONAL INFORMATION Name Address Date of Birth Place of Birth Civil Status Citizenship : Venice Pauline Flores Luis : Brgy. 23. Laoag City : June 29. Ilocos Norte 1998-2004 Secondary: Elementary: CURRICULUM VITAE . Ilocos Norte 2004-2008 Gabaldon Elementary School Laoag City. Sitio Dungtal. 1992 : Laoag City : Single : Filipino EDUCATIONAL ATTAINMENT Tertiary: Divine Word College of Laoag School of Business and Accountancy Laoag City.

Gomez St. Ilocos Norte 1998 . 81 Lagasca St.PERSONAL INFORMATION Name Address Date of Birth Place of Birth Civil Status Citizenship : Grace Mendoza Mabuti : Brgy. Laoag City 2004 . 1991 : Batac : Single : Filipino EDUCATIONAL ATTAINMENT Tertiary: Divine Word College of Laoag School of Business and Accountancy Laoag City.2004 Secondary: Elementary: CURRICULUM VITAE . Laoag City : October 22.Present Ilocos Norte College of Arts & Trades P.2008 Mariano Marcos State University Laoag City. Ilocos Norte Bachelor of Science in Business Administration Major in FINANCIAL MANAGEMENT 2008 .

Ilocos Norte 1996-2001 Secondary: Elementary: CURRICULUM VITAE . Pasiocan. Ilocos Norte 2001-2005 Pasiocan Elementary School Bacarra. 39. Ilocos Norte : March 21. Ilocos Norte Bachelor of Science in Business Administration Major in MANAGEMENT ACCOUNTING 2008-Present Ilocos Norte College of Arts and Trades Laoag City. Miguel : Brgy. Ilocos Norte : Single : Filipino EDUCATIONAL ATTAINMENT Tertiary: Divine Word College of Laoag School of Business and Accountancy Laoag City.PERSONAL INFORMATION Name Address Date of Birth Place of Birth Civil Status Citizenship : Madelynne M. 1989 : Bacarra. Bacarra.

Ilocos Norte : March 30. Laoag City. 1992 : Laoag City : Single : Filipino EDUCATIONAL ATTAINMENT Tertiary: Divine Word College of Laoag School of Business and Accountancy Laoag City. Ilocos Norte 1998-2004 Secondary: Elementary CURRICULUM VITAE . 29 Rizal St. Ilocos Norte Bachelor of Science in Business Administration Major in FINANCIAL MANAGEMENT 2008-Present Saint Joseph High School Laoag City. Ilocos Norte 2004-2008 Plaridel Elementary School Laoag City..PERSONAL INFORMATION Name Address Date of Birth Place of Birth Civil Status Citizenship : Raina Krista Gerardo Pedro : Brgy.

PERSONAL INFORMATION Name : Evangeline Andrea Galvez Simeon Address : Brgy. Ilocos Norte 1998-2004 Secondary: Elementary: . 51-A. Ilocos Norte 2004-2008 Holy Spirit Academy of Laoag Laoag City.Present Holy Spirit Academy of laoag Laoag City. Nangalisan Laoag City Date of Birth : November 19. Ilocos Norte Bachelor of Science in Business Administration Major in FINANCIAL MANAGEMENT 2008 . 1991 Place of Birth : Laoag City Civil Status : Single Citizenship : Filipino EDUCATIONAL ATTAINMENT Tertiary: Divine Word College of Laoag School of Business and Accountancy Laoag City.

16 Villanueva St. 1982 : Sanchez Mira. Cagayan : Single : Filipino EDUCATIONAL ATTAINMENT Tertiary: DIVINE WORD COLLEGE OF LAOAG School of Business and Accountancy Bachelor of Science in Business Administration Major in: Management Accounting 2006 – Present ILOCOS NORTE NATIONAL HIGH SCHOOL Laoag City 1996 – 2000 LAOAG CENTRAL ELEMENTARY SCHOOL Laoag City 1991 .1996 Secondary: Elementary: .CURRICULUM VITAE PERSONAL INFORMATION Name Address Date of Birth Place of Birth Civil Status Citizenship : Krystle Fieldad Valdez : Brgy. Laoag City : December 4.