Group 1 Presentation

STRATEGIC MARKETING VS TACTICAL

MARKETING
Marketing strategy is commonly referred to
as core strategy. It is compose of marketing
segmentation, targeting, and brand
positioning collectively know as the 4ps of
marketing. The 4Ps are compose of product,
place, price, and promotions. They are put
together to influence consumers to buy the
company’s brand rather than the
competition’s
COMPARISON OF STRATEGIC MARKETING
AND TACTICAL MARKETING
Concept Thought process (Big Taking action near
idea-Big Picture) term
(How to)
Purpose To attain the To execute the strategy
company’s objectives
Activities - Understanding the Promoting and selling
environment to the consumers
- Understanding the
industry
- Understanding the
customers
- Understanding the
competition
- Understanding the
brand
Key Concepts STP (Segmentation – Marketing mix ( 4Ps for
Targeting = product or 7Ps for
Positioning) services, include
people, process and
physical environment
Timetable Timeless Time-bound
Absence of the Other Too much talking – Blind action – Doing
Side Nothing gets done without having a plan
Marketing is about value creation
(serving customers better than
competition) and value capture (profit
maximization)
MARKETING PROCESS

Marketing Marketing Marketing

Marketing
Analysis Planning Implementation
Control

Marketing strategy formulation must begin by

analyzing external factors of the business,
focusing on seeking opportunities first rather
than on the marketing mix.
THE MARKETING ENVIRONMENT

Marketing environment includes the

forces outside of marketing, consisting
of macro-environment (national issues)
and micro-environment (company
issue), frameworks are PESTLE trends,
industry Analysis, as well as Key
Factors for Success. For the micro-
environment, a popular framework is
the 6cs.
MACRO-ENVIRONMENT
PESTLE Trends

For the organizational factors in macro-

environment, one popular type of
macro=environment analysis is called PESTLE the
acronym PESTLE stands for for Political,
Economic, Social, Technological, Legal, and
Environmental forces. As listed in exhibit, these
external forces can offer opportunities or threats,
and affect how a firm can start and/or stay in a
relationship with their customers.
PESTLE TRENDS

1. Political factors
2. Economic factors
3. Social factors
4. Technological factors
5. Legal factors
6. Environmental factors
 1. Political factors - (how and to what degree do government
policies affect the economy)

 Tax policy - The Philippines has one of the highest tax structures
in Asia. For insurance corporate income tax in the Philippines in
at 30% at value-added tax is at 12% compared to 12.5-25% and
10% respectively in Indonesia, and 20% and 10% respectively in
Vietnam.

 Labor Law - kasambahays(house helps ,estimated to be

numbering some 2.5M in the Philippines) are entitled to a
contract, pay slip, minimum rage, paid leaves entitled to
additional 5 days of vacation leave on top of their regular rest
day.
 Environmental Law - Black sand mining is not allowed by thr
Department pr Environment and Natural Resources (DENR).
This prevents erosion of land and depletion of fishes.

 Trade restrictions - President Donald Trump man of the

united states of America expressed protectionism criticizing
US companies that outsource jobs outside the US as well as
escaping tax liability in the united states.

 Tariffs - As agreed by the Philippines with the ASEAN trade in

goods agreement (ATIGA) dressed chicken can be imported
at low 5% import duty since 2010,down from an earlier 30%
 Political stability - A 2013 siege in Zamboanga by the MNLF
faction of nur misurfi put the Zamboanga economy on a
standstill for 3weeks, president stage this time in Marawi
city.

 Health - senior citizens 60 years old and above get 20%

discount in drugstore (for prescribed drugs) and restaurants.

 Education - President Benigno Aquino II signed into law the

K12 education system adding 2 more years ( grade 11 and
grade 12) in 2015 before students can be allowed to enroll in
the collegiate level.
 Infrastructure- Secretary Ramon Lopez
of the Department of Trade and
Industry (DTI) encouraged big business
to support making sure they have more
SMEs as part of their supply chain
 2.Economic Factors - ( the impact of the country’s
financial indicators on how business operate and make
decisions)

 Economic growth - A higher economy growth means

goods and services, expressed in gross national product
(GNP) or gross domestic product (GNP) in a country.

 Interest rate- A higher interest rate means more

interest expense to get paid and higher cost of capital.
 Exchange rate- A higher foreign
exchange rate has two meanings:
exporters gets more pero when they
ship out goods while imported products
become more expensive to buy due to
more peso for every dollar.
 3. Social Factors - ( how the demand for company’s products
and how firms should operate are affected by social
demographics, attitudes, and opinions on issues like careers and
culture, education and ethics, health and safety, housing and
fashion, immigration and diversity , among others.)

 Career – Occupational choice is affected by four factors

psychological, social, economic, and cultural. An individual’s job
choice is molded by their family, morals, values, intelligence,
ability, finances, and many other factors.

 Culture- is a way to translate your culture into compelling content

that piques interest, inspires people, and helps you form a
stronger relationship with them.
 Education - is a program designed to prepare secondary
and postsecondary students to conduct the critical business
functions associated with directing the flow of products and
services from the producer to the consumer.

 Ethics - a collection of principles of right conduct that shape

the decisions people or organizations make.

 Health - it involves creating, communicating, and delivering

health information and interventions using customer-
centered and science-based strategies to protect and
promote the health of diverse populations (CDC, 2005).
 Safety – The perceived safety of households has negatively
affected the popularity of knock-on-your-door type of direct
sales.

 Housing - it represents the market for properties being

purchased and sold either directly to buyers or through real
estate brokers.

 Fashion and Lifestyle - fashion industry is dynamic, wherein

some sectors have faced a slowdown in sales as consumers
shift their spending towards lifestyle goods and experiences
the lifestyle brands have emerged in the marketplace.
 Immigration - immigration is likely to increase
the demand for labor, as migrants expand
consumer demand for certain goods and
services, immigration may increase competition
for existing jobs in certain occupational sectors
but it can also create new jobs.

 Diversity - is a marketing paradigm which sees

marketing as a way to connect with the different
individuals in the market.
 4. Technological factors – (how technological aspects
affect innovation, productively, investment, and cost)

 R&D - A higher quantity of patents indicate extent of

innovation of a country. Patents affect entry in a particular
industry. In entertainment, internet, youtube, remote
controls, video players, and netflix's on demand movies have
not affected not just the viewing behavior but also the way
people think.

 Automation - an automated company can create production

efficiency and productivity meaning more output in less time
and less cost.
 Technology incentives - having incentives
affects investments decisions, so the
frequency of upgrading technology maybe
sooner than later.

 Rate of technological change - each change

in technology can affect cost, innovation,
mindset, and product life cycle decisions, as
well as influences outsourcing decisions.
 5. Legal factors – (how the laws of country can affect
how companies adopt policies as to its operation, cost
structure, and the demand for its product.)

 Discrimination law - refers to legislation designed to

prevent discrimination against particular groups of
people.

 Consumer law - is the group of laws that protect the

public at large from unfair and predatory business
practices.
 Antitrust Law - prohibit a number of business
practices that restrain trade.

 Employment Law - is the collection of laws and

rules that regulate relationships between employers
and employees.

 Health and Safety Law - to 'ensure so far as is

reasonably practicable the health, safety and
welfare at work of all their employees'.
 6. Environmental factors – ( ecological and environmental
aspects that can affect businesses such as insurance, tourism,
farming.)

 Weather - Weather targeting, or weather-based advertising is the

practice of targeting consumers by local weather (past, current,
or future). In other words, serving ads, or delivering promotions
which correspond to the viewer’s weather conditions.

 Climate, and Climate Change – A growing awareness of the

potential impact of climate change is affecting how companies
operate and products they offer. This is creating opportunity for
new markets, as well as diminishing or destroying existing one.
INDUSTRY ANALYSIS
 1. Threat of New Entrants
 2. Threat of Substitutes
 3. Rivalry among Existing Competition
 4. Bargaining Power of Customers
 5. Bargaining Power of Suppliers
1. Threat of new entrants - The threat
of new entrants can be affected by any
of the following factors.
 Economic of Scale – We can observe this in the
car market where sine newer entrants could not
fare as well due to lack of volume to do marketing
campaigns

 Product differentiation – Competition in the

beauty salon market has somehow changed since
the likes of David’s Salon, and Ricky Reyes
opened their chain stores using the popularity of
their names and positive image, thus increasing
the industry’s entry barrier.
 Capital requirements - The lowering of capital can
attract more people who may be interested to invest
in a business.

 Switching costs – The ability to change suppliers from

one to another affects new entrants

 Access to distribution – All chain stores are known to

have a revenue model not just based on margin of
traded items but also based on “other income” such
as listing fee, product highlight, anniversary support,
store opening support, and over two dozen similar
opportunities to earn. Without paying a listing fee, it is
practically impossible to be carrier by big chains of
supermarkets.
 Cost disadvantage independent of scale – National
Book Store gets not just preferential rental rate but
preferential location as an anchor store of SM Malls.
This advantages is hard to replicate by competition

 Government Policy – While government policies

may encourage new entrants, inconsistent
implementation of these policies may discourage
new entrants as well. An example is when the
government has already signed contracts with
foreign firms, but gets delayed or cancelled after
an eventual investigation to review such contracts
by Congress, which may send an inconsistent
signal to foreign investors.
 2. Threat of substitutes - Substitute
should be considered from the
perspective of buyers and how they
make purchase decisions. Example of
substitutes are marble for wood, mobile
text for greeting cards, orange juice for
coffee, zippers for button
 3. Rivalry among existing
competition - is described to be the
most intense in a price war, followed by
promo war. Which can significantly
lower profitability. Rivalry among
existing competition is considered high
when prices are adjusted downwards
frequently.

Rivalry is affected by the following

factors:
 Number of major or equally balanced competition –
In the banking industry, many players are perceived
to be undifferentiated, and compete using the same
business model. The depositors who have loyalty to a
bank will invest their excess fund based on which
bank can offer them better returns.

 Industry Growth – Solar energy is fast growing in the

Philippines since it is more environmental-friendly
and offers lower prices versus electricity. Many
companies are starting to emerge in this market with
companies trying to compete to be the dominant
player. Solar Philippines appears to have the edge
with their high profile installation of solar panels in
SM Malls, with their large solar farm utility models in
Calatagan, Batangas, and Tarlca, to name a few.
 Fixed cost – Five-star hotels have expensive properties and operating costs,
thus, they do heavy promotions to increase consumer patronage and lower
their per unit fixed cost. Taken together, all of the promotion in an industry
will lead to fierce competition.

 Product differentiation - Product differentiation is a marketing strategy that

strives to distinguish a company's products or services from the
competition. Successful product differentiation involves identifying and
communicating the unique qualities of a company's offerings while
highlighting the distinct differences between those offerings and others on
the market. Product differentiation goes hand-in-hand with developing a
strong value proposition to make a product or service attractive to a target
market or audience.

 Switch costs – The airline industry invented the Frequent Flyer Program (FFP)
to create a barrier to switch carriers. Instead of shopping for the best price,
customers added a new dimension in their purchase decision – the benefits
associated with a FFP, like free upgrades, free flights and other perks. In the
case of Philippines Airlines, the benefit of loyal customers includes check-in
using the shorter business class line as well as use of lounge
 Unused plant capacity or enlarged new capacity – In the
telecom industry, Sun Cellular launched their popular unli calls
in 2003 since they were new and had mostly unused capacity.
The PLDT-Smart group eventually bought them in 2011. Another
example is when Asia Brewery used the excess capacity of their
beer factory to produce a new beverage category – Cobra
Energy Drink, affecting other energy drink categories.

 Diversity of competition – Firms will tend to protect their “cash

cows” that bring in positive cash flow and profit versus
relatively smaller competitors. Smaller companies without much
advantage to highlight tend to offer a lower price, thus leading
to more rivalry.
 Strategic Stakes - are high when a firm is losing
market position or has potential for great gains. This
intensifies rivalry. High exit barriers place a high cost
on abandoning the product.

 Exit barrier – Major appliances and automotive vehicles

need after-sales services. These prevent manufactures
from leaving or exiting that particular market or risk
permanently damaging their brand, as consumers may
believe their suppliers have abandoned them. Inability
to leave ramps up competitive rivalry.
4. BARGAINING POWER OF CUSTOMERS
 Chooks-to-Go offered pricing that is a
bit lower than Andok’s and Baliwag.
This is because of two realities – they
were the manufacturer, and they had
the ability to choose chicken weight
appropriate to their lower pricing
strategy. This lower price offset the
bargaining power of price-sensitive
customers. The bargaining power of
customers are affected by the following
 Volume purchase by customers – With the exceptions of brands
with high customer loyalty such as infant formula and cigarettes,
these few buyers control and dictate the customers for the same
line or expand to a new product line to target new customers, to
spread the risk of possible purchase withdrawals while trying to
form a good relationship and an alliance with the customer.

 Buying price vis-à-vis product cost – With small margins,

industrial buyers would have to constantly negotiate for better
deals, better terms, and better concessions. Jollibee, and
McDonald’s – affected by their inability to adjust prices upward
due to fixed price points acceptable to consumers – will certainly
leverage their large volume to try to drive raw materials costs
lower and improve margins.
 Number of suppliers in an industry – A look at the number of banks in
the Philippines would make one easily conclude that they would
compete for the savings of the same customers. It is with this in mind
that banks aggressively promote themselves to attract multiple
patronage knowing fully well that most Filipinos would do business
with more than bank, especially after the 1983-84 bank run fiasco
where the confidence level of bank customers was at its lowest.

 Actual or perceived differentiation – Well-known brands enjoy a

higher stature than unknown brands, as the become simplifiers of
choice. Take Coca-Cola or Colgates as examples. Higher brand stature
or loyalty gives higher bargaining power to brand owners. They enjoy
higher recall and recognition, as well as prestige and brand
association, versus other brands in all parts of the Philippines - a
result of decades of advertising and consistent brand promotion.
 Switching costs – When a business relationship is
converted into a friendship, suppliers make it more
difficult to their customers to change to other
suppliers. That’s why golf tournaments are getting
more popular in the corporate world due to psychic
rewards.
 Threat of backwards integration - The process leads to
lack of supplier competition that will lead to low
efficiency resulting in potentially higher costs. In due
course, there are high chances that the flexibility will
get reduced owing to previous investments upstream
and also downstream.
 Quality of the seller – In the same feeds industry,
Purina pioneered an upscale feeds formulation that is
much more expensive but is more cost efficient, thus
reducing the bargaining power of their target
customers until comparable quality could emerge.
 Full information – Online Stores give greater
bargaining power to consumers. They do not have to
visit brick-and-mortar stores, and are even given
access to customer’s feedback as well. In the case of
bookstores, even sample chapters, ranking of books,
and other related purchases are published for the
convenience of the customers.
 Seller’s ability to influence their
customer’s purchasing decisions – In
the appliance market, customers can
be influenced by the store’s sales
personnel on what brand to purchase
as they rely on the salesperson’s
experience with various brands,
particularly items from a new product
category on the shelves..
5. BARGAINING POWER OF SUPPLIERS
 This framework is a standard part of business strategy.
The bargaining power of the supplier in an industry
affects the competitive environment and profit
potential of the buyers. The bargaining power of
suppliers is one of the forces that shape the competitive
landscape of an industry and helps determine the
attractiveness of an industry. The other forces
include competitive rivalry, bargaining power of buyers,
the threat of substitutes, and the threat of new entrants.

The bargaining power of suppliers is affected by the

following factors:
 Industry dominance – Ajinomoto, Mercury Drug, and Nescafe
coffee are examples of dominant brands with high bargaining
powers. However, dominance as well as bargaining power as
a supplier can be compromised when strong challengers or
substitutes gain acceptance and market share. In the case of
coffee, Kopiko gained popularity through their brown coffee,
while Great Taste made a big comeback via their Great Taste
White Coffee. Mercury Drug’s bargaining power will be
affected if Robinson’s South Star Drug and TGP combined can
gain a critical mass in volume from their dominance in store
count, numbering over 2000 stores.

 Availability substitutes – Ajinomoto’s dominance in the MSG

market, as well as the dominance of Knorr in the flavored
cube market, are affected by the increasing popularity of
another category, Maggi Magic Sarap.
 Importance of buyer to seller – Bee is an important in the sari-sari
store with high purchase size (together with “pulutan”) as well as
the frequency of usage. Highly advertised and promoted brands
like Red Horse can ask for better payment terms from their trade
customers as the brand gives these retailers very high store traffic
and turnover, especially in the Luzon area where per capita
consumption of beer is about 40 liters a year versus only 4 liters
in Visayas and Mindanao.

 Importance of input to buyer - The soft drinks market uses a lot of

sugar as a key ingredient. However, the availability of lower priced
high fructose corn syrup as a sugar substitute has compromised
the standing of sugar as an ingredient. This was further affected
with health concerns leading to the popularity of diet drinks. The
plan of the Duterte government to tax sugar beverages will
further impact the role of sugar, a key ingredient in soft drinks, in
the marketplace.
 Product differentiation – The Apple brand is known to
have a cut-like following, with loyalty levels reinforced
with the regular introduction of new products and new
product categories , each one better than the previous.
The key was not just functional benefits bit in the social
benefit Apple gives to the users of its product - a cool
and differentiated image.

 Switching costs – Strong direct selling companies have

exclusive arrangements with many of their sales leader.
Called independent distributors, these high earning “foot
soldiers” are prohibited from selling competitive
products or they risk being dropped from the company’s
active dealers list, and suffer loss of earnings and/or
exclusive privileges as a result of their disloyalty.
 Threat of forward integration –
Suppliers or lessors to tenants like SM
Malls have trmendous resources to
expanmd. Aside from selling clothes
and fashion itens in SM Department
Store, they have forwards integrated by
having tie-ups with the likes of Uniqlo
of Japan.
KEY FACTORS FOR SUCCESS AND SWOT
Another important tool that can be used in
marketing analysis is called Key Factors for
Success, which is the source document of
Strength and Weakness (SW) analysis, one half
of SWOT analysis, with OT being the acronym
for Opportunities and Threats.
Key Factors for Success of Selected Industries
 When KFS is managed well in
established markets, companies have
higher chances to be successful. Firms
who have not succeeded 100% as per
plan must refocus their attention on the
KFS to know which strategy to prioritize
next to avoid failure again. But It does
not guarantee that by following KFS will
make a company successful as they
serve only as a guide.
EXAMPLE:
EXAMPLES:
EXAMPLES:
 By following Logic of Strategy (LOS) of
being different than being better, It can
make companies game-changing
innovators.The “what-and-how-else”
questions involve removing or
bypassing any traditional barriers or
interference growth.
EXAMPLE OF GAME-CHANGING INNOVATIONS:
 The strengths and weaknesses of a firm
are measured against their target
competition. Strength of one ,therefore
is actually a weakness of another.
EXAMPLE:
 An exception about Strength of being a
weakness of another is when firms
make their weakness irrelevant by
redefining rules of the world industry.
Example is the Amazon.com
 If a company is very strong or very weak in an area,
but that strength or weakness is not a key factor for
success in the industry, it cannot be considered a
corporate strength or weakness. Remember the
basic mathematical equation we learned in school
that anything multiplied by zero is still zero. To gain
sustainable competitive advantage, firms must be
superior in at least one LOI while maintaining
competitiveness in other areas or on the average,
better competition in all LOI. This will be identify their
core competence in the firm’s established market.
 Marketers must try to establish a cluster of
strengths or differentiation to avoid being easily
matched by competition. This system or cluster of
KFS must be explored by forcing on the right
target market and offering the right product. For
instance, Abenson’s strength as a retailer did not
happen by accident. Their planned strengths vis-
à-vis other appliance retailers is not in having one
strength but in building a cluster of mutually
dependent or complementary activities. This gives
Abenson economies of scale to move out
inventory quickly, giving them better overall
margins and better terms and in turn making it
harder for competition to imitate immediately.
MICRO-ENVIRONMENT
 As discussed in the preceding section,
Macro-Environment deals with national
Issues while MICRO-ENVIRONMENT
deals with company issue. In this
section, we expand our analysis from
the 3C’s of Marketing namely,
Company, Customer, and Competition,
to add 3 more variables namely,
Channel, Complementors And
Communities.
6CS OF MICRO-ENVIRONMENT ANALYSIS

1. Company
2. Customer
3. Competition
4. Channel
5. Complementors
6. Communities
 1.Company - can indicate a plus for
relative strength and minus for relative
weakness for each departments
performance. A weakness in a specific
functional area means improvement
projects are needed. Which they can
team from some of the companies cited
below.
EXAMPLES:
 R&D-CDO Foodsphere created San Marino corned
tuna in the Philippines ,courtesy of the creativity of
their R&D. Sourcing- Nestle Philippines does not just
buy but teach farmers the correct way to plant
coffee. Purchasing- Jollibee’s negotiation for purchase
price of Key raw materials is handed personally by
senior executives who are also family members.
Production- URC (Universal Robina Corporation)
manufacturers products for both local and
International markets, and is aware of the need to be
disciplined in coordination and capacity to ensure
stock availability for all their clients.
 Warehouse - Phil TAO( ) and CSGT ( )
are two of the reputable logistics and
distribution companies in the
Philippines. Finance- Globe has a
finance group that look into the
business case of marketing personnel
to ensure that while a good marketing
campaign can win more customers. It
must win them in a profitable way
before they recommend a marketing
 Marketing- Unilevers Marketing
campaign is based on consumer
insighting their product is needed.
Operations- Companies like Zuellig
Pharma, and Philip Morris Fortune
tobacco use a mobile technology
solution, and data analytics to capture
sales calls and sales order on the spot.
 Sales - Online Shop-selling books like
Amazon, allow book shopper the
quality based on reviews, provide
sample chapter, and suggest what
other customers are buying together
with the book they want. Credit-
Lending companies like Home credit
approve the credit line of their credit
applicants in a quick way using a credit
scoring system.
 Order processing – Century pacific, the
maker of century tuna and many other
products has an order fill rate (or
served order) to over 95%.
 Delivery - P&G created streamline
logistics(SLOG) campaign in 1998 to
improve delivery turn per truck.
 2. Customers – There are 5 types of
customers that have to be considered. Let’s
take rice is an example.
 Consumer markets – individual buyers who
buy for their own use.
 Business markets – organizational buyers
who buy as input to their own products.
 Government markets – government agencies
that buy to produce public services.
 International markets – buyer are from
countries. Taking advantage of wider
flat lands, 50% lower production cost
and preferential.
 Reseller markets – organizational or
individual buyers who buy for resell at
a profit without adding anything to the
produc.
 3. Competition – The 2 types of
competition that need to be considered from
customer’s perspectives are:
 Direct competition – similar offerings from
the perspective of customers
 Indirect competition – offerings deemed as
substitutes to another product or service like
chocolate vs flowers on Valentine’s Day, or
watching a movie vs walk in the park to
spend 2 hours of discretionary time
 4. Channel – Individuals or companies who
buy and resell the company’s products to
final buyers. Examples are:
 Distributors.
 Wholesalers.
 Retailers.
 Direct sellers.
 Home TV Shopping as seen on TV.
 Online retailers.
 5. Complementors – Individual or businesses who can
help an organization understand, promote and/or sell its
products or services.

 Physical distribution – companies or individuals who

store and transport the company’s products to final
buyers.
 Marketing agencies – companies or individuals who help
understand and/or promote the company’s products to
final buyers.
 Final intermediaries – companies or individuals who help
give credit for the company’s product to final buyers.
 6. Communities – Public stakeholders where the
organization needs to be sensitive to their public opinions.

 Financial publics – organizations or individuals who can

ease or hinder an organization’s access to credit.
 Media public – mass media or social media, including
columnists and bloggers, who can publish articles or create
social media posts influencing customer’s opinions.
 National Government public – government laws can be
created that can ease or restrict company’s actions.
 Local Government public – mayors or powerful
councilors can create problem for uncooperative
businesses.
 General public – attitude or change in attitude that can
affect a company’s sales volume.
 Local public – neighborhood and community groups who
can question a company’s effect on the local area.
 Citizen-action publics – environmental or health group
cab question the action of a company publicly. For
instance, some companies producing genetically
modified food have experienced groups rallying in front
of their office.
 Employees – individuals who are employed
within an organization. Sexual discrimination
or sexual harassment by employers or
bosses is an example.
 Suppliers – organizations or individuals who
are employed to help an organization
produce products or get specific jobs done.
For instance, suppliers may reveal they
where asked to deliver products with
substandard specifications.
RIGHT TO WIN ANALYTICAL
 PESTLE Trends
 Industry Analysis
 Key Factors for Success
 6C’s
 As summary, marketers must look outside of the
firms to consider the effect of PESTLE trends to
their marketing mix. They can then look at the
industry they operate to understanding where
profitability can be compromised or grown. Key
factors for success (also known as Logic Industry)
are used to understand the existing winning
variables of the industry as well as using the LOI
as basis to redesigning innovation of what to add
or what to abandon when new industry rules are
created.
Finally, the 3C’s if marketing is expanded
into the 6C’s in order to analyze
opportunities, as well as may affect the
company’s operations if attention is not
given to one of the 6C’s. Strong
sensemaking skills are required to analyze
these macro- and micro-environments.
MARKETING RESEARCH
 To formulate the marketing mix, the marketer
needs to have a strong understanding of its
targetr market. Unless the marketer is seasoned
professional and industry expert, it would be
dangerous to formulate a marketing strategy
without feedback from customers and
consumers. Market research is therefore an
indispensable tool for marketers to know what
needs to be done, albeit creativity will still be
needed in terms of how to communicate and
execute the stragy.
TYPES OF MARKET RESEARCH
 Marketing research can be broadly
divided into qualitative and
quantitative methods. Typically,
qualitative market researches are
conducted initially which are validated
subsequently with quantitative market
research, although qualitative
researches are also used to probe
deeper into information ( such as
knowing “why”) gathered from
COMPARISON OF FGD’S AND IDI’S
 Some IDIs are done in pairs, like when
the purchase decision is a joint decision
between husband and wife, or there is
a need to compare and explore
attitudinal and behavioural difference
between two groups (like married
versus single).
 In FGDs or mini-FGDs of 4-5 people (for
experts or when discussing sensitive
topics), discussions center on an
important or a focus area defined by a
client company. Among common
questions asked in IDIs for the purpose
of having input to formulate marketing
strategies and tactics are questions
about dislikes, wish list, overkill, and
likes of a brand or a company.
 Among the popular quantitative market
researches is the Usage, Attitude and
Image studies (UAI), which help
marketers understand the consumer’s
product usage and attitude (used in
market segmentation) as well as image
( used in brand positioning).
TYPICAL QUESTIONS ASKED IN USAGE, ATTITUDE AND IMAGE
STUDY
 Market research allows the marketers and entrepreneurs to answer
the various “W” question (who, what, when, etc.) such as:

1. In the macro level, market segmentation answers the question,

“What are the groupings of similar customers?”
2. In the macro level, these questions can be answered.

a. Decision Making Unit (DMU) points to “who purchases the

product?”
b. Decision Making Process (DMP) answers the question, “How,
where, and when the purchase made?”
c. Consumer motivation and preferences guide the marketer to
answer, “What do the consumers want and why?”
Since market research takes time and
costs money, research should be done
only to uncover an unknown or there is
a need to validate what you know.
Finally, market research is still not final
but should be used as a reference
because a seasoned entrepreneur or
marketer’s point of view or gut feel is
as important to explore.
6 STEPS IN MARKETING RESEARCH
THAT’S ALL THANK YOU
ADELANTE