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Management Aspect

A lecture on
Marketing presented
by: Prof. Greg Borja,

The new definition of Marketing:

“The process by which companies
create value for customers and
build strong relationships in order
to capture value from customers
in return”

- Philip Kotler

What do these Brands have in

"Marketing's work should not
be so much about selling, but
about creating products that
don't need selling”

SINS, Philip Kotler

Marketing Concept .Selling vs.

The Marketing Process .

STP = D USP  Segmentatio  Differentiation  Unique Selling n Proposition  Targeting  Positioning .


Market Segmentation Market Segment – a group of consumers who respond in a similar way to given set of marketing effort.  Segmenting consumer markets  Segmenting business markets  Segmenting international markets  Requirements for effective segmentation .

Behavioral . Demographic. 4 Bases for Market Segmentation (for consumer markets) Geographic. Psychographic.

000. Central Luzon. NCR City Size/Population Under 1000.001-10. 1. Density Urban. . Mindanao. 5. Geographic Variable Typical Breakdowns Region (Major sub-regions) Luzon. fair. …. rural Climate Rainy. (Regions) Ilocos.000.….000-5. Visayas. sunny/ tropical (hot-weather). suburban.

P15. Family Life Cycle Toddler.000.. single & head of the family. widow. divorced.000 . P5. 20-34. 65+ ….. Demographic Variable Typical Breakdowns Age Under 6. post-graduate. 12-19.000. 6-11. P10.000. …. 3 sisters) Income (monthly) Below P5.000. 50-64. 1 brother- eldest.001-P25. single & married w/o children Family Size 6 members in a family (2 parents. P20.001- P15.001-P10.001-P20. feminine Marital Status Single. Gender Male. female Sexuality Masculine. 35-49. young. married. yuppie. teenager.

farmers. (locals) Tagalog. White. some high school. Race/Nationality Asian. college graduate. unemployed. some graduate studies. graduate degree holder. clerical and sales. some college. Islamic. manager. retirees. Ilocano. . …… Education Grade school or less. student. housewife. Demographic Variable Typical Breakdowns Occupation Professional and technical. Chinese. Christian (Born Again.). Hispanic. Iglesia ni Kristo. Filipino- Chinese. Cebuano. etc. Buddhist. Jewish. Religion Catholic. etc. public official. high school graduate.

Sporty. libreal. conservative. etc. upper middles. ambitious. upper uppers Lifestyle (Hobbies) Active. lower uppers. . Psychographic Variable Typical Breakdowns Social class Lower lowers. upper lowers. authoritarian. lower middles. Fashionista Personality Compulsive.

desirous. intending to buy Attitude Toward Product Enthusiastic. regular user Usage Rate Light user. informed. interested. strong. medium. special occasion Benefits sought Quality. economy User Status Non user. heavy use Loyalty status None. first-time user. negative. absolute Readiness stage Unaware. Behavioral Variable Typical Breakdowns Use Occasion Regular occasion. aware. hostile . ex-user. medium user. positive. service. impressed. potential user.

Segmenting Business Markets  Geographically  by industry  by company size  by its customer operating characteristics  by situational factors  and by other company characteristics. .

 Or by distinct buying needs and behavior of their people.  by Culture.  by Economic Status.  by its political make up. . region).Segmenting International Markets  Geographically (continent.

large or profitable to serve Differentiable – responds differently Actionable – can be designed for attracting and serving the segments. Requirement for effectiveness Segmentation: Make sure that your segments are: Measurable – can be measured Accessible – can be effectively reached and served Substantial . .

. Market Targeting Evaluating Market segments to Target:  Segment size and growth  Segment structural attractiveness  Company objectives and resources Selecting target market segments: decides which and how many segments it will target. target market consists of set of buyers who share common needs or character that the company decides to serve.

Target Marketing Strategy Undifferentiated Targeting broadly (mass) marketing Differentiated (segmented) marketing Concentrated (niched) marketing Micromarketing (local or individual) marketing Targeting narrowly .

a market-coverage strategy in which a firm goes after a large share of one or few segments or niches. Micromarketing (local or individual) marketing .Undifferentiated (mass) marketing .a market-coverage strategy in which a firm decides to target several market segment and design separate offers for each. Differentiated (mass) marketing .a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Concentrated (niched) marketing .the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups-includes local marketing and individual marketing .



You may choose to TARGET or to have multiple Target Markets. but always identify who is your PRIMARY TARGET MARKET and SECONDARY TARGET MARKETS (Know what or who to prioritize) .

Positioning for Competitive Advantage  Positioning maps  Choosing a positioning strategy  Communicating and delivering the chosen position POSITIONING basically asks the question… How do you want your products to be perceived????? .

Positioning the Two Brands Brand A Brand B A Germicidal Soap A Beauty Bar .

Examples of Product Positioning Maps for Fast Food .

.Choosing a positioning strategy Consist of three steps:  Identifying possible competitive advantage  Choosing the right competitive advantage  Selecting an overall strategy positioning strategy Identifying possible competitive advantage The key to winning target customer and building profitable relationships with them is to understand their needs better than competitors do and deliver more value. Choosing the right competitive advantage After discovering several potential competitive advantages. it must choose the ones on which it will build its positioning strategy.

great value airline . Selecting and overall Positioning Strategy (Positioning Options) Positioning by Product Attribute: Nakasisiguro gamot ay laging bago Positioning by Price: Your low price.

Positioning by User Segment: Mabuhay! We’ve been expecting you Positioning by Usage Behavior: Creating the dream cleavage every woman deserves .

Positioning by Product Source: Made in Korea Positioning by Product Category: The 70% Isopropyl Alcohol .

Positioning Against Competition: Recommended by 8 out of 10 dentists Positioning by Experience or Feeling: It must be Shangri-La! .


Developing the positioning statement .

“We’ve got it all for you” . its fun. SM is the only mall that provides you with everything that you need.Example: “For all classes of families. enjoyable and affordable at the same time” Thus the tagline: Here at SM….

Communicating and delivering the chosen position Positioning strategy Maintain position through: • Consistent performance and communication • Monitoring and adapting to consumer needs and competitors’ strategies Promotion Distribution Product Pricing strategy strategy strategy strategy .

The Marketing Mix (The 4 P’s of Marketing)  Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) Promotion .

The Marketing Mix .

People. Process.7Ps – Price. Place. Product. Promotion. Physical Environment Traditional 4Ps extended to encompass growth of Service Industry .

Summary of Marketing Mix Decisions Product Price Place Promotion Brand name List price Distribution Advertising Functionality Discounts channels Personal selling Appearance Allowances Channel members Public relations Styling Wholesale Inventories Direct marketing Quality pricing Warehousing Internet marketing Safety Cash. early Market coverage Digital and Packaging payment Locations mobile Seasonal Warranty Transportation marketing pricing Accessories Bundling Logistics/reverse Communication Service/Support Service levels message Media channels Promotional budgeting .