PRINCIPLES OF MARKETING

Chapter 3: Market Opportunity Analysis and Consumer

Analysis

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Objectives
Distinguish between strategic and marketing
planning in terms of objectives and
processes.
Analyze the elements of macro- and micro-
environment and their influence to marketing
planning.
Define marketing research, its importance to
a business enterprise and identify the steps in
marketing research.
Describe the consumer and business markets.
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
The Olympics: Branding on a Global Stage

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Strategic Planning

The process of developing and maintaining a

strategic fit between the organization’s goals
and capabilities and its changing marketing
opportunities.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Steps in Strategic Planning

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Defining a Market-Oriented Mission
Mission statement – a statement of the
organization’s purpose – what it wants to
accomplish in the larger environment.
Company Product- Oriented Definition Market- Oriented Definition

Revlon We make cosmetics. We sell lifestyle and self-

expression; success and status;
memories, hopes and dreams

Nike We sell athletic shoes and We bring inspiration and

apparel. innovation to every athlete.
McDonalds We are the world’s best and To be our customers’ favorite
most profitable quick-service place and way to eat.
restaurant.
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
Setting Company Objectives and Goals

Marketing
Business objectives
objectives
•Build profitable •Increase market
customer share
relationships •Create local
•Invest in research partnerships
•Improve profits •Increase promotion

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Designing the Business Portfolio

The business portfolio is the collection of

businesses and products that make up the
company
Portfolio analysis is a major activity in strategic
planning whereby management evaluates
the products and businesses that make up
the company
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
Analyzing the Current Business Portfolio

Strategic business units can be

Company division
Product line within a division
Single product or brand

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Growth-share matrix

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Planning Marketing

Major functional departments in each unit

must work together to accomplish
strategic objectives.
Partner effectively with other companies
in the marketing system to form a
competitively superior external value
delivery network.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

The Marketing Environment

- includes the actors and forces outside

marketing that affect marketing
management’s ability to build and
maintain successful relationships with
customers.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

The Microenvironment

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 The Microenvironment

Marketing Intermediaries
• Helps the company
promote, sell, and
distribute its products to
final buyers.
• Includes resellers, physical
distribution firms, marketing
services agencies, etc.
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
The Macroenvironment

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Marketing Research

The systematic design, collection, analysis,

and reporting of data and findings
relevant to a specific marketing situation
facing the company.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Marketing Research Process

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Databases & Database Marketing
is the process of building, maintaining, and using customer databases
and other databases (products, suppliers, resellers) to contact, transact,
and build customer relationships.

Customer databases
• Name, address, telephone #
• Purchase history
• Demographics
• Psychographics Data mining
• Mediagraphics

Data Warehouses For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Creative Research means
Internet sources
Check out rivals

Rivals

Student projects
Marketing partners

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Analyzing and Using Marketing
Information
Customer Relationship Management
Managing detailed information
about individual customers and
carefully managing customer touch
points to maximize customer loyalty.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Analyzing and Using Marketing
Information
Customer Relationship Management Touchpoints

Customer Sales force Service and Web site

purchases contacts support visits
calls

Satisfaction Credit and Research

surveys payment studies
interactions

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Consumer markets
Consumer buyer behavior: buying behavior
of final consumers – individuals and
households that buy goods and services
for personal consumption.
Consumer market : all of the personal
consumption of final consumers.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Cultural Factors

Culture Social Class

Subculture For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Social Factors
Reference Groups

Family

Role and Status For K-to-12 use only. Sheila G. Vega. WVSU-CBM
 Personal Factors

Age

Personality

Life Cycle Stage For K-to-12 use only. Sheila G. Vega. WVSU-CBM
 Personal Factors Values

Lifestyle

Occupation

Economic situation For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Psychological Factors

Motivation
Perception
Learning
Beliefs and Attitudes

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Types of Buying Behavior

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Types of Buying Behavior

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

For K-to-12 use only. Sheila G. Vega. WVSU-CBM
 Activity 4
Breaking the Habit
Try to convince a friend/market to switch from their
favorite family health soap to using your brand of
liquid soap. Or from a powdered laundry detergent to
liquid laundry detergent. (Make a short re-
enactment).
Identify a market that you believe would be most
receptive of your message, come up with a proposal
on how you plan to make them switch to your brand
of soap/detergent.
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
 Activity 4
Breaking the Habit
Notes: Present this in a form of promotional mockups
of ads that will clearly present your message to this
market.
Assume that a large bar of family soap costs P5.00
to produce, while 250ml of your liquid
soap/detergent costs P15.00 to produce. Thus, you
cannot compete through price.
Presentation time is 3-5minutes per group

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

APPLE: The Keeper of all Things Cool

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Business Markets
Business buyer behavior
 refers to the buying behavior of the organizations that buy
goods and services for use in production of other products
and services that are sold, rented, or supplied to others.

Business buying process

 is the process where business buyers determine which
products and services are needed to purchase, and then
find, evaluate, and choose among alternative brands.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Buying Situations

Straight Rebuy New Task

Modified Rebuy

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Examples of Organizational
Markets:
Manufacturers
Restaurants and quick-service food chains
Wholesalers and retail chains
Marketing and distribution companies
Local Government Units (LGUs)
Non-profit organizations
Hospitals and health centers
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
 Buying Process

Problem Recognition
General Need Description
Product Specification
Supplier Search and/or Proposal Solicitation

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Buying Process

Supplier Selection
Order-Routine Specification
Performance Review

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Market Segmentation

Dividing a market into smaller segments

with distinct needs, characteristics, or
behavior that might require separate
marketing strategies or mixes.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Market Segmentation
Segmenting Consumer Markets

Geographic Demographic
segmentation segmentation

Psychographic Behavioral
segmentation segmentation

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Market Segmentation
Segmenting Consumer Markets
Geographic segmentation divides the market into
different geographical units such as nations, regions,
states, counties, or cities.
Demographic segmentation divides the market into
groups based on variables such as age, gender, family
size, family life cycle, income, occupation, education,
religion, race, generation, and nationality.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Market Segmentation
Segmenting Consumer Markets
Age and life-cycle stage segmentation is the
process of offering different products or using
different marketing approaches for different age
and life-cycle groups.
Gender segmentation divides the market based
on sex (male or female).
Income segmentation divides the market into
affluent, middle-income or low-income consumers.
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
 Market Segmentation
Segmenting Consumer Markets

Psychographic segmentation
divides buyers into different
groups based on social class,
lifestyle, or personality traits.

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Market Segmentation
Segmenting Consumer Markets
Behavioral segmentation divides
buyers into groups based on their
knowledge, attitudes, uses, or
responses to a product
Occasions
Benefits sought
User status
Usage rate
Loyalty status For K-to-12 use only. Sheila G. Vega. WVSU-CBM
Market Targeting

Target market consists of a set of

buyers who share common needs
or characteristics that the
company decides to serve

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Market Targeting
Choosing a target market
Depends on:
Company resources
Product variability
Product life-cycle stage
Market variability
Competitor’s marketing strategies

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Product Position
Product position is the way the product is
defined by consumers on important
attributes—the place the product occupies
in consumers’ minds relative to competing
products
 Perceptions
 Impressions
 Feelings

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

 Positioning

- Is the act of establishing a strong brand

image for a product;
- Telling the market exactly what your
product is, who is it for, what it is not;

For K-to-12 use only. Sheila G. Vega. WVSU-CBM

Positioning
• Associated with Crispy
Fried Chicken
• Filipino tradition
• family bonding
• unique kind of fried
chicken experience.
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
Positioning

• “Mag Sarsi ka para

maiba”
• Subtext: if you drink the
popular soda brand, then
you are being too much
of a conformi s t .
For K- to -12 us e only. Sheila G. Vega. WVSU-CBM
 Activity 5
The Burger Market
• Identify as many categories as you can
determine in the local quick service burgers
industry, and then create your own distinct
category where you hope your product can
stand out. Give your burger outlet a name,
explain your category, describe your product
concept – description, price, packaging, and
other distinguishing features.
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
 Post activity assessment
• How well did the group come up with a
Burger Idea?
• How thorough is the summation of existing
categories?
• How viable is the proposed category?
• How innovative is the product proposal?
For K-to-12 use only. Sheila G. Vega. WVSU-CBM
The End

For K-to-12 use only. Sheila G. Vega. WVSU-CBM