The Marketing

Plan
Marketing Process
1. Identifying the customers’
needs where you are tasked to
create a meaningful value
proposition.
2. You study what the customers
want or desire for you to build
a unique selling proposition.
3. It is imperative to identify the
most strategic market or group.
Value Proposition
and
Unique Selling
Proposition
Value Proposition (VP)
 Simply states why a
customer should buy
a certain product or
service
 It is the major driver
in customer purchase
or service availment.
The following are some tips for the
entrepreneur on how to create an effective
value proposition to the target customers:

1.Prepare a situation
analysis that details
the problem(s) of the
customers.
The following are some tips for the
entrepreneur on how to create an effective
value proposition to the target customers:
2. Make your value
proposition straight to
the point, simple, and
specific; in short, there
should be no
complications.
The following are some tips for the
entrepreneur on how to create an effective
value proposition to the target customers:

3. Highlight the value of

your product or
service so that
customers will easily
get what benefits you
can provide.
The following are some tips for the
entrepreneur on how to create an effective
value proposition to the target customers:

4. Adapt to the language

of your market.
5. Add credibility-
enhancing elements.
The following are some tips for the
entrepreneur on how to create an effective
value proposition to the target customers:

6. Differentiate your value

proposition with your
competitors.
 Aling Tere’s
Sari-Sari Store
 Proposed value proposition:

“Tindahang maaasahan,
bukas kahit anong oras!”
Unique Selling Proposition (USP)
 Refers to how you will
sell the product or
service to your
customers.
The following are some tips for the
entrepreneur on how to create an effective
unique selling proposition to the target
customers:

1. Identify and rank the

uniqueness of the
product or service
attribute.
The following are some tips for the
entrepreneur on how to create an effective
unique selling proposition to the target
customers:

2. Be very specific

3. KISS (Keep It Short

and Simple)
 Unique selling proposition for Aling
Tere’s Sari-Sari Store
7Ps Product Place Price Promotion People Packaging Process
or
Service
USP Retail Near a call Competit Signage Three Semi- The only
convenience sari-sari
Description products center, a ive shifts of store
public Aling store that
operates 24
hospital Tere’s hours a day,
and a assistants 7 days a
constructi (6 AM-2PM,
week
2PM-10PM,
on site 10PM-6PM)

Unique? No No No No Yes Yes Yes

Ranking 3 2 1
of USPs

 Proposed unique selling proposition:

“Tindahang maaasahan, bukas kahit anong oras.”
Marketing Research
 Comprehensive process of
understanding the customers’
intricacies and the industry
they revolve in
 The result of marketing
research is the entrepreneur’s
major investment in a
business, as it will lead him or
her to the most effective
strategies to employ.
Market Size
 Simply the size the arena
where the entrepreneur’s
business will play.
 The only way to do this is
to conduct a strategic
marketing research from
reliable sources using
dependable methods.
Market Size
 1st step: Estimate the
potential market (market
space or market universe)
 2nd step: Eliminate the
customers who are probably
unlikely to buy the product or
avail the service
 3rd step: Estimate the
market share
Market Size Computation:
Market size = # of families
who eat rice X average
consumption per annum

Market size profit = market

size X average net profit per
kilo
Market Size Computation:
Potential Market share
= market size profit X
estimated market share
Potential Market share
profit = market size X
estimated market share X
net profit per kilo
Rice Retailing Business in
Mr. Antonio’s Barangay
Given:
 475 families eat rice
 1 kilo of rice per day
 Equal market shares of
20%
 ₱10 average net profit per
kilo of rice
 Reduced markup of ₱2
Market Share Computation:
Compute for the:
 Market size
 Market size profit
 Potential market
share
 Potential market
share profit
Customer Requirements
Specific features and
characteristics that
the customers need
from a product or a
service
Primary Target Market
and
Secondary Target
Market
 Market Intelligence – includes
customer profiling, drives the
entrepreneur on what correct
strategies and tactics to
employ.
 Market segmentation – process
of grouping similar or
homogeneous customers
according to demographic,
psychographic, geographic,
and location.
A. Demographic Segmentation
Process of grouping
according to relevant
socioeconomic
variables for the
business venture.
A. Demographic Segmentation
1. Income range and
the social class
– these represent the
purchasing power of
the market
(FYI) Socioeconomic class of the
Philippines to the 2011(SWS)
 Class D – 60% of the families
earning approximate of
₱191,000/year
 Class E – 30% of the families
earning only ₱62,000/year
 Class C – 9% of the population
earning ₱603,000/year
 Class AB – only 1% of the families
earning ₱1,875,000/annum
A. Demographic Segmentation
2. Occupation
– should be considered not
just to determine the
customers’ income but also
their daily routine where
goods/services can be
properly positioned.
A. Demographic Segmentation
3. Gender and age group
– data that must be
mined because the life
cycle of customers and
their gender influence
their buying behavior.
Sex and Age Group Potential Product or Service Demand

Male teenagers (13-19) Products: Trendy clothes, rubber shoes, soft

drinks, chips prepaid cellphone load, sport apparel
Services: Cool hangout places, gyms, barber
shops

Single females (20-30) Products: Beauty products, bags, clothes,

perfumes, magazines, shoes
Services: Spa, beauty clinics, gyms beauty salons,
coffee shops, movie houses
Married couples with kids Products: Food and grocery items, diapers, milk
(30-50) products, baby clothes
Services: Theaters, babysitters, theme parks,
travel packages
Senior citizens Products: Fruits and vegetables, hair dye,
medicines
Services: Travel packages, health services
A. Demographic Segmentation
4. Religion and ethnicity
– affect the way they
buy products or avail of
services ; examples: food
choices, events and holidays,
traditions and beliefs, spending
habits, and conservativeness.
B. Psychographic Segmentation
 Process of grouping
customers according
to their perceptions,
way of life,
motivations, and
inclinations
B. Psychographic Segmentation
1. Perception
- process wherein an
individual receives
external stimuli using
the five senses
B. Psychographic Segmentation
2. The customers’ way of
life will give an
entrepreneur an overview
of what products or
services can best suit the
problems of the
customers that happening
on a daily basis.
B. Psychographic Segmentation
3. A person’s motivation

Physiological Psychological
Motivation Motivation
- needs of the - involve
person customer’s
- seek to avoid preferences
pain and give - what customer
pleasure likes or dislikes
Motivation are also affect

Deprivation
Aspirations - involves the
- what the customer customer’s
wants to achieve recognition of
(inner peace, certain voids to fill
financial stability, (lack of financial
work-life balance) security, lack of love,
lack of knowledge)
B. Psychographic Segmentation
4. Customers’ inclinations
- involve preferring one
product over another as a
result of gaining a
refreshing experience when
using the product, possibly
due to the product’s unique
features
C. Geographic Segmentation
 simply grouping
customers according to
their location
 encompasses the
cultures, beliefs,
preferences, politics, and
lifestyle of a certain
geography
D. Behavioral Segmentation
 Process of grouping the
customers according to
their actions
 behaviors are instigated
by occasions, desired
benefits, loyalty, and
usage of products or
availment of services
D. Behavioral Segmentation
1. Occasions
– drastically affect the
customers’ buying
behavior
- Christmas season, Valentine
season, summer season,
birthdays and graduations
D. Behavioral Segmentation
2. Using customers’
desired benefits
- Entrepreneur determines
the exact needs of the
customers and offer the
most suited product or
service for them
D. Behavioral Segmentation
3. Loyalty – result of
maintaining satisfied
customers
- Loyalty programs and
rewards separate loyal
customers from the new
ones
D. Behavioral Segmentation
4. Usage of products or
availment of service
- Entrepreneur can
group customers as light
users, medium users or
heavy users
Note:
Although segmentation
is a strategic and an
efficient way of
classifying and grouping
customers, there is also
a term in marketing call
market aggregation.
 Market Aggregation
- happens when an
entrepreneur wants to
target a broader market as
possible because the
product or service that the
business offers is suited for
an undifferentiated
market.
 Talking To Your Customer
Marketing Research should first have a
solid objective

Identify the target market segment for

the research project

Analyze proper timing for research

execution (able to get maximum results
when he/she identifies the respondent’s
answering pace)

Establish a market research design that

will effectively implement the steps
mentioned
 Qualitative Quantitative
research research
-includes -involves
identifying analyzing the
the written customers’
or spoken preferences
opinions of by using
customers relevant
statistics
Common Methods of Collecting
Data from the Target
Customers
Focus group
Interview
discussion

Observation Survey
1. INTERVIEW
Most reliable and credible ways
of getting relevant information
Face-to-face contact between the
entrepreneur and a respondent
where the researcher asks
pertinent questions that will give
him significant pieces of an
information about the problem
that he will solve.
Two main types of Interviews
1. Unstructured interview
- informal type of interview
and does not follow a specific
set of questions
- respondent can answer
freely including everything
that he/she feels about the
issues raised
- produces qualitative data
Two main types of Interviews
2. Structured interview
- employs a specific set of
questions and produces
quantitative data
- Specific questions usually
answerable by yes or no,
forced ranking, multiple
choice or choose-the-best
answer
Challenges in an interview
1. Involves setting an
appointment with an
interviewee
2. Involves the respondent’s
indifference to how they share
opinions
3. Involves getting unbiased
answers for such a challenge
(limited memory, difficulty of the
questions, environment they are in)
2. FOCUS GROUP DISCUSSION
commonly used by market
researchers to capture
qualitative results from target
customers
process of mining customer and
noncustomer experience and
insights about a specific product
or service
Through a FDG, the researcher will able to generate
relevant concerns and issues of customers such as:
views and inclinations toward a
product or service
perceptions or impressions on new
product or services model
innovations of the older product or
service
inventive concepts on promotions
price elasticity, and initial feedback
of customers on marketing tactics
and advertising
Moderator
keeps the discussion spontaneous
and on the right track
His/her role is to encourage a
group of participants to talk
about a list of topics prepared
prior to the FGD
ensuring all angles are covered
and the discussion doesn’t go too
far from the topic
2. FOCUS GROUP DISCUSSION
Usually lasts from one to two
hours
More credible if the actual
product or a potential
product/service is showcased in
the FGD to elicit reactions from
the participants
Preparatory step in crafting a
quantitative survey
FDG advantages as compared to the interview
1. Researcher can get combined
insights from the participants
2. Participants are more
spontaneous and enthusiastic
because of the interaction with
coparticipants, thereby sharing
more insights to the researcher
3. It can be observed by various
spectators
FDG disadvantages:
1. It obtains only qualitative data
2. Examination of the focus
group session is difficult and
requires more time
3. There are potentially biased
answers from the participants
because they will encounter
peer pressure
3. OBSERVATION
one of the preferred and
practical methods of
generating ideas because
the researcher documents
the behavioral patterns of
people or of objects or
events
3. OBSERVATION
watch and examine the
customers’ behavior in
their raw state without
biases and pretentions,
thereby providing more
accurate results and faster
process
3. OBSERVATION
reliable because it
allows the researcher
to see the real and
actual behavior of
customers rather than
hearing what they need
to say
3. OBSERVATION
Key to observation is
that the researcher
must be keen and
accurate on what
he/she really wants to
observe
Human observer
-records information
as it occurs or as it
happens using his or her
five senses
Examples of human observation

1. Customer purchase
patterns – uses the
researcher to understand the
buying behavior of the
customer such as determining
their pain points, buying
patterns, location, price, or
promotion
Examples of human observation

2. Mystery shopping
– researcher pretends he/she
is a customer of his/her own
business or to the
competitor’s
- determine the quality of the
customer service
Machine observer
-employs an equipment to
record the information
needed
Examples of machine observation

1. Video cameras or CCTV

– record customers in their
organic shopping or service
behavior
2. Traffic counters –
researcher will be able to
determine where to sensibly
install a tarpaulin or signage
Examples of machine observation

3. Web Analytics
– online tool that tracks the
performance of a Web site
- gives the online
entrepreneur a report on how
his or her web site performs
and how drives awareness
and sales for the business
Examples of machine observation

4. Bar code scanners

– machines help researchers
understand the purchase
behavior of the customers by
reading the product codes and
generate relevant sales
information
Examples of machine observation

4. Barcode scanners
– machines help researchers
understand the purchase
behavior of the customers by
reading the product codes and
generate relevant sales
information
Examples of machine observation

5. GPS technology
– allows tracking of
vehicles and pedestrians
exposed to out-of-home
advertisements
 Observation only
provides the
researcher a façade of
what he/she sees or
watches and does not
let the researcher
necessarily know the
feelings of customers
Observation only becomes a
relevant research tool it meets the
following conditions:
1.If the person, object, or
event is indeed
observable.
2.If the person does the
activity regularly or event
happens on a regular basis
Observation only becomes a
relevant research tool it meets the
following conditions:
1. If doing an interview or FGD
is becoming intrusive of the
privacy of the person
2.If the subject of observation
does not take too long to
produce relevant
information.
4. TRADITIONAL AND ONLINE SURVEYS
process of getting
answers from a sample
of respondents derived
from a particular
population
4. TRADITIONAL AND ONLINE SURVEYS
The respondents will
be given a
questionnaire asking
about their awareness
level, their profile,
preferences, and
behaviors
4. TRADITIONAL AND ONLINE SURVEYS
This advantageous to the
researcher because not
only is it systematized
and easier to analyze, but
there is also a definitive
quantitative result to be
interpreted.
4. TRADITIONAL AND ONLINE SURVEYS
Some of the traditional ways
to conduct a survey are via
telephone, face-to-face
interaction, or snail mail
More efficient way of
conducting a survey is
through the Internet –
through email, Web sites, or
social media sites
In preparation for the survey, the
researcher must identify:
1. Sampling techniques.
- sample is a percentage of a
specific population carefully
chosen by the researcher to
generally represent the
whole population.
- Census – include the whole
population in the research project
 Probability Sampling
- technique wherein
samples are given
equitable chances or
nonzero chances of
being selected from a
population
 Probability Sampling
- apply randomization,
wherein researcher need to
assure that every sample
has an equal representation
for the selection process to
the unbiased
 Probability Sampling
-the advantage of this
sampling is that sample
error can be quantified
-sample error is a range of
inaccuracy to which a
sample might vary from the
particular population
 Nonprobability Sampling
- does not give the samples
equal chances of being
selected, because samples
are instead selected
according to their
accessibility or personal
choice of the researcher
 Nonprobability Sampling
- the scale of error where
the sample deviates from
the population for this
sampling is unidentified, in
short, results of
nonprobability sampling do
not generalize the
population chosen
In preparation for the survey, the
researcher must identify:
2. Sample size.
- researcher must able
to calculate first the
appropriate sample
size in conducting the
survey
In preparation for the survey, the
researcher must identify:
3. Questionnaire blueprint
Here are some tips on how to
create a blueprint for the
questionnaire:

a. Be specific and direct with

the questions and the answers
required.
b. Be flexible with the
respondents’ convenient way
of answering the
questionnaires
c. Ensure that each question
is necessary and not
repetitive
d. Always put yourself in the
shoes of your respondents.
e. Make sure that questions
are arranged in a coherent
order that will lead to the
answers required.
f. The questionnaire should
look professional, be
divided into strategic parts,
and be properly numbered.