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MARKETING ASPECT

The Marketing is considered the


most important area. This is so because
it describes market situations where the
product can be identified through the
demand analysis.
Product Description the primary (
and secondary, if any) product/s of the
proposed project is/are to be vividly
described in this section.

Industry Profile it describes the general


trade practices of an
industry or
business which sells the same product.
Some of these practices are pricing,
sales,
methods
of
transportation,
promotion, channels of distribution,
supplies, packaging resources available,
the values of people, and also the
opportunities, threats, strengths and
weaknesses of the industry.

Demand in this section the


student/researcher pinpoints the specific
customers who are willing and are able
to buy the proposed product/s. This
could be done through segmenting the
market
geographically
and
demographically.
Demographical
segmentation

determines to whom, in a particular


place, the products will be offered. It

a) Sex b) Age c) Religion d) Educational


Attainment e) Ethnic Group f) Income
level g) occupation and h) credit
availability.
Supply it represents the number of
sellers/producers selling similar or
substitute products.
Supply is
referred to as the competitors.

The first thing to do is to enumerate the


competitors, their location, and their
capacity/size.
Then
the
student/researcher will determine the
5 year historical supply as well as the
5 year future supply by using one of
the projection methods.

Marketing Plans or strategies should be


done in order to attract customers
and even the customers of the
competitors.
1. Occupants Who are the target
markets?
What are their values, culture,
religion etc.?
2. Object What makes the products
attractive to the target market-

Packaging, color, shape, size, etc?


3. Objective What is/ are their
objective/s in buying the productstatus symbol, price quality, etc?
4. Occasion When do the customers
usually buy the products- daily,
weekly,
during
birthdays,
anniversaries, or christmas season?

5. Outlet Where could the target


buyers buy the productsfrom the
wholesalers,
retailers,
brokers,
contractors?
6. Organization in the Family What is
the customers role in the family
initiator, buyer, or decision maker?

5 Ps of Marketing Mix
1. Product - What should be done with the
product so that it will be more attractive
than the competitors products?
2. Promotion What promotional activity
should be done in order to compete with
the promotions of the current suppliers?
3. Pricing What terms of sale will
increase the selling value of the
products-n/30,2/10, n/30? What pricing
technique can be used

In determining the selling price of the products?


Pricing Techniques:
a. Cost Plus Method it is the simplest
method. The cost of the product is figured
out and tacked on a little something for
profit.
b. Market-Oriented Method - this is not based
on cost, but on the interaction of demand
and supply,
c. Loss Leader Strategy - Some products
may be sold at a losing preposition to attract
customers

to go to their stores. The mark-up is taken from


other products.
d. Psychological Pricing Stating the price on
a lower scale. For example: P2.95 instead
of P3.00.
e. Value for Money Pricing this pricing
approach is not aimed at maximizing profit
per single purchase but in bulk of
quantity/frequent sale. This sales tactic is
an ideal mechanism in tapping potential
sales through more purchases, thus

clearing inventory gluts and crating an image of


fresh supply. This pricing concept targets
either or both the diet and price conscious
consumers.
f. Pricing Factor Segmentation the seller
subdivides the market into groups
responsive to price and price deals, product
quality,etc.
Ex. No left-over, No sharing buffets 50%
Discount per pack
50% Discounts on all products a t
8:45p.m. everyday

This strategy favors both the consumer


and the seller. On the part of the consumers,
they get the benefit of quality and good tasting
products at reduced prices. On the other hand,
the seller avoids wastage and minimizes cost
of storage.
Example2 Midnight Specials This is offered
by Motels (9:00 p.m. to 6:00p.m. at the price of
3 hours stay.)

Example 3 Discounting Plan


The company offers lower charges for the
following calls.
- Night calls
- Sundays and Holidays
- Morning overseas calls during weekend
hours
Example 4 Season Specials
40 % discounts on all room categories.

g. Marked Down Pricing in cases where


demand is limited and competition is
intense, the usual mark-up pricing approach
is temporarily suspended in favor of a
markdown to capture a segment of the
market. The concept behind the markdown
pricing is the thought that the lower you
can make your price, the more you sell, and
you generate revenues sufficient to cover
costs and provide a profit.
h. Bonus-Pack Pricing for the end-users, this
is commonly used so that they will buy more
than

the required quantity. A good example is the :


Buy 34 at the price of 30

4. Place or the Channel of Distribution


This describes how one will reach his customers.
He may use the services of the middlemen, if his
location is far from his customers. If this is so,
include also in the budget the compensation which
is given to the middlemen. The compensation
could be in the form of commissions, fringe
benefits, promotional assistance or other forms.

5.

People this refers to the salesmen


who will be selling and promoting the
products, Do they know the product?
Are they committed to the company?
Are they motivated and satisfied?

Chapter 3
TECHNICAL ASPECT
The technical study discusses how
the products are to be produced, when
these products are to be produced, how
much will it cost to produce the products,
where to produce the products and what
technology to be used.

Production Process/Process Flow


The production process discusses how the
products will be produced, specifying each step that
will be involved, and the time involved.
Production Process/Process Flow the production
process discusses how the products will be produced,
specifying each step that will be involved, and the
time involved. The said steps will be shown in a
process flow chart where some of the following
symbols will be used.

Transportation
Storage
Operation
Inspection
Delay
Equipment, Machinery, Furniture and Fixtures this
part discusses or describes the technology that will
be used manual, mechanical, automated, or
robotics.

If production process is done manually, then the


use of equipment, machinery, furniture and fixture will
be limited. However, the student will still make a list
of all the

the needed equipment, and other facilities. The list


should include the description, the specification, and
the prices of the listed assets. If it is mechanical,
automated, or robotics, the student will also do the
same.
Building The student should determine whether it is
necessary to put up, to rent, or to lease a building. If a
building is to be constructed, he should provide a
computation for the cost of the building. This includes
the determination of the life of the building as well as
the depreciation method to be used.

If the students proposes to rent a building, he should


determine the historical and the current rent so that he
will be able to project the rentals. When it is necessary
to renovate the building to fit the requirements of the
production process, the cost of renovation should
likewise be included.
Location - the student is required to gather maps in
order to show where the proposed project will be
located. In the discussion, the student should also
describe the distance of the proposed project from its
competitors as well as its supply of raw materials,
public markets, roads, communication facilities. He
need to discuss also the environmental conditions of
the place whether it be rural, urban, or near schools,

Layout/Floor Plan This topic specifically discusses


how the place (factory, store, or office) looks like and
how it is arranged.
It is recommended that the student presents the
drawings including dimensions so that readers could
easily visualize how the proposed venture will be.
Layout/Floor Plan this topic specifically discusses
how the place ( factory, store or office) looks like and
how it is arranged.
It is recommended that the student presents the

drawings including dimensions so that readers could


easily visualize how the proposed venture will be.
Capacity/Scheduling
The student, after describing the location,
layout, building, equipment, machineries, furniture
and fixture can now discuss its capacity. He should
be able to determine the maximum capacity, the
production schedule, the number of shifts per day,
number of working hours per day, etc.
Waste Disposal there are some processes that
produce unhealthful wastes. Here, the student
should discuss how to dispose the wastes and also
the cost of disposing.

Utilities and Other Operating Costs this part


describes the amount, cost, and sources of utilitiesfuel, water, and electricity. It also includes other
costs that the proposed project will incur like
supplies, telephone, telex, maintenance, repairs,
insurance, taxes, licenses, and SSS contribution.
The provision foreseen costs such as miscellaneous
cost and contingencies is also included.
Production Costs it includes the initial raw material
costs, labor costs, operating costs, and other costs,
and other costs to produce the product.

Chapter 4
Organization and Management Study

This chapter describes the form of


business organization that is best suited for
the proposed subject, the organizational
structure, the number of personnel needed,
their qualifications, their compensation, and
the projected time table before the project is
implemented.

Forms of Business Organization


There are four types of business
organizations:
1. Single proprietorship
2. Partnership
3. Corporation
4. Cooperatives
Organizational Structure the student should
be able to enumerate the positions needed
and their respective job descriptions and
job specifications.

Personnel Requirement based on the


organizational structure , the student should
determine the number of workers needed in
the organization.
Qualification Standards the student
discusses the qualifications of workers.
Three kinds of qualifications standards:
a. Personal this refers to the personality
required of a worker his traits, manners,
values, the way he talks his appearance, etc.

Experience this refers to the length of


working experience required of a worker, and
also related job experiences.
Academic this refers to the workers
academic qualifications or the educational
attainment required to perform the job better.
Compensation Package After determining
the number of workers needed and their
qualifications, express their efforts in monetary
form. Salaries and wages required by law and
the result of the wage survey.