Professional Documents
Culture Documents
Development of
Marketing Strategy
Define the meaning Evaluate how
01 of product, price,
place, promotion,
03 effective the
marketing mix to the
people, packaging, organization;
positioning, and their
LEARNING OUTCOMES
importance;
Determine the
appropriate
02 strategies in pricing,
products, place,
04 Discuss the product
life cycle to create
strategies; and
promotion,
packaging,
positioning, and
people;
01
MIX and
MARKETING
STRATEGY
MARKETING MIX – is the combination
of controllable elements or variables
Marketing Mix and Strategy
a) Durable goods – are the physical products that are used over a
long period of time. These products are expensive because of the
quality of the materials used. Example: Steel, Stainless, Appliances.
02
THE
ENTERPRISE
CUSTOMER SERVICE IN THE
TYPES OF CUSTOMER
SERVICE
• Self-serve Customer Service
SERVICE
• Email support
• IVR – Interactive Voice Response
• Phone support
• Inadequate definition of customer
S • Strong employee attitudes W
for product/market development
• Excellent customer service
• Confusing service policies
• Large market share
• Too many levels of reporting in
• Personal relationships with
the organizational structure
Company’s strength and
customers
• Limited product availability
• Leadership in product innovation
• Lack of involvement from top
• Highly efficient, low-cost
management in developing a new
manufacturing
service
• High integrity
• Lack of quantitative goals
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ATTRIBUTE-BASED
SURVEY QUESTIONNAIRE
04
OF
GATHERING
DATA
METHODS OF GATHERING Observation
means a gathering of information for research, maybe defined as perceiving
data through the senses; sight, hearing, taste, touch and smell. The sense of
sight is the most important and the most used among the senses. It is most
direct way and the most widely used in studying behavior.
Questionnaire
is composed of written questions related to a particular topic, with space
provided for indicating the response to each question, intended for submission to
a number of persons for reply; commonly used in normative survey studies and
in the measurement of attitudes and opinions.
Interview
DATA
These are the person who replies to something such as survey or set of
questions. They are the sample size over the population in the study.
The following are
abundant sources of
data or information:
1. The Bureau of Census and Statistics – population, housing, industry and trade.
2. The Land Transportation Commission – vehicles, cars, trucks, motorcycles, jeeps, etc.
3. The Department of Education and its regional offices, and schools, colleges, and
SOURCES OF DATA
universities (public and private) – where all enrolments and graduates are recorded.
4. The Supreme Court and all lower courts of justice – where records of judicial cases are
kept.
5. All police regencies and offices – where all criminal cases are recorded.
6. The Department of Health – where all births, deaths and pathological cases are
registered.
7. The Securities and Exchange Commission – where all trade, industrial and commercial
establishments and other organizations, profit or non-profit, are registered.
8. All other department, offices, and entities of the government, and private
organizations, entities or offices – where different kinds and classes of data and
information are registered.
05
PRODUCT
LIFE CYCLE
& PRICE
What Is a Product Life Cycle?
• The term product life cycle refers to the length of time a product is
introduced to consumers into the market until it's removed from the shelves.
• The life cycle of a product is broken into four stages—introduction, growth,
maturity, and decline.
• This concept is used by management and by marketing professionals as a
factor in deciding when it is appropriate to increase advertising, reduce
prices, expand to new markets, or redesign packaging.
• The process of strategizing ways to continuously support and maintain a
product is called product life cycle management.
How Product Life Cycles Work?
How Product Life Cycles
02 INTRODUCTION 04 MATURITY
05
CYCLE
DECLINE
There are four generally accepted stages in the life cycle of a product—
introduction, growth, maturity, and decline.
STAGES OF PRODUCT LIFE • Introduction: This phase generally
includes a substantial investment in
advertising and a marketing campaign • When a product is successfully
focused on making consumers aware of
introduced into the market, demand
the product and its benefits. increases, therefore increasing its
• Growth: If the product is successful, it
popularity.
then moves to the growth stage. This is • These newer products end up pushing
characterized by growing demand, an older ones out of the market, effectively
increase in production, and expansion in replacing them.
its availability. • Companies tend to curb their marketing
• Maturity: This is the most profitable
efforts as a new product grows. That's
stage, while the costs of producing and because the cost to produce and market
marketing decline.
the product drop.
CYCLE
• Decline: A product takes on increased • When demand for the product wanes, it
competition as other companies emulate may be taken off the market completely.
its success — sometimes with
enhancements or lower prices. The
product may lose market share and begin
its decline.
STAGES OF PRODUCT LIFE
• The stage of a product's life
cycle impacts the way in which
it is marketed to consumers. A
IMPORTANT! new product needs to be
explained, while a mature
product needs to be
differentiated from its
CYCLE
competitors.
Special • Back in 1965, Theodore Levitt, a
STAGES OF PRODUCT LIFE Considerations marketing professor, wrote in the
Harvard Business Review that the
innovator is the one with the most to
lose because so many truly new
• Companies that have a good handle products fail at the first phase of
on all four stages can increase their life cycle—the introductory
profitability and maximize their stage. The failure comes only after
returns. Those that aren't able to the investment of substantial money
may experience an increase in their and time into research, development,
marketing and production costs, and production. And that fact, he
ultimately leading to the limited shelf wrote, prevents many companies
life for their product(s). from even trying anything really new.
CYCLE
06
DEVELOPING
PRICING
STRATEGIES
1. Objective
a. Sales Based
DEVELOPING PRICING
- the cocern of the company is to increase sales by offering new product design,
product lines, and promotional items.
b. Profit Based
- the firm is interested in maximizing profit,earning a satisfactory profit, optimizing
FIVE STEPS IN
a. Penetration pricing uses low prices to capture/ attract the larger/ mass
market for a product or service. the preference of the mass majority of the market
will be the basis of the price set.
FIVE STEPS IN
b. Skimming pricing uses high prices to attract the market segment more
STRATEGIES
concerned with the product quality, uniqueness or status than price. The seller
chooses high price in order to determine who will really patrionize the product.
3. Price Strategies
is the practice of setting prices based on the cost of the goods or services being
sold.
c. Competition-based price startegy is when the firm sets prices in relation the
competitors. The entrepeneur must research the prices set by their competitors.
4.Implementing
Price Strategies
a. Customary pricing - when one price is maintained over an extended perod of time.
DEVELOPING PRICING
b. Variable pricing- when thee price responds to costs fluctuations or differences in demand.
c. One-price policy - when the price is charged to all customers buying the product or service
under similar conditions.
d.Flexible pricing - based on customers ability to negotiate or buy power of the customer.
FIVE STEPS IN
STRATEGIES
f. Price-quality association- when the consumers believed that highprice represents high
qulaity and low prices represent low quality.
g. Prestige pricing - when customers set price floors and will not buy at prices below the
floors.
4.Implementing
Price Strategies
h. Leader pricing - selling key items at a low prices to gain consumer loyalty within its product
line.
DEVELOPING PRICING
i. Multiple-unit pricing - when the entrepreneur offers discounts to consumer for buying in
large quantities.
j. Price lining - instead of setting one price for a single model of a good or service, the firm
sells two models of different quality and features at different prices.
FIVE STEPS IN
STRATEGIES
k. Price bundling - when the firm offers a basic product, optons and customer service for one
total price.
l. Unbundled pricing - when the firm offers sells by individual components and allows
customer to decide what to buy.
m. Geographic pricing - when the prices are set depending on the distance of the buyer to the
seller.
5. Price Adjustments
a. List prices are regularly quoted prices to customers, as in catalogs, price tags
and purchase orders. The salesman must have a clear and updated price so when
FIVE STEPS IN
b. Escalator clauses happen when the contract which allows price increase after
the sale is concluded before delivery is made. The seller must communicate to the
buyer that there is a price adjustment due to some reasons (increase of raw
materials or gasoline) and must agree to the new price.
5. Price Adjustments
added to the total price. The seller can include this or disregard to better gain
customer loyalty and profitability of the company.
d. Mark-ups happen when the company is raising regular selling prices because
FIVE STEPS IN
demand is unexpectedly high or cost are rising. The entrepreneur must be careful
STRATEGIES
e. Markdowns are reductions from original selling prices to mett lower prices of
competitors, overstocking, shop-worn merchandise, and increase customer
traffic. This activity can affect profit generation.
PRICING STRATEGY
1. Cost-plus Pricing
The price set by the firm may be
2. Demand Pricing
established through any of the
3. Competitive Pricing
following methods:
4. Market Pricing
07
PLACE/
DISTRIBUTIO
N
PLACE DISTRIBUTION
PLACE/DISTRIBUTION
Distribution Strategy refers to
the process of moving goods
A place is making the products and services from the company
available in the right quantities to the customer. The
and locations where customers distribution channel that will be
want them. adapted must provide a
strategic advantage to the
company.
COMMON DISTRIBUTION
COMMON DISTRIBUTION CHANNELS
• Retailers are the ones who sell directly to customers in the store. They buy
product without any intermediaries or middlemen.
• Manufacturer's representative is wholesalers employed by one or several
producers and paid on commission according to quantity sold.
• Wholesalers are channel members that sell to retailers or other agents for
further distribution through the channel until they reach the final users.
• Brokers are distributors who buy directly from distributor or wholesaler and
sell to retailer or end user.
CHANNELS
• Direct sale is when the company/firm's plan is to move goods directly to the
ultimate users. This is the most effective channel.
• Original equipment manufacturer sales involve selling a manufactured
product and which is later sold as a finished product to the end user.
• Direct mail includes printed materials used in a targeted campaign to
consumers. These are sent directly to consumers: these include Catalogs,
letters, e-mail and other direct appeals.
DIRECT INDIRECT
CHANNEL DISTRIBUTION
Direct channel distribution is Indirect channel distribution is
the transfer or movement of the transfer or movement of
goods and services from goods or tangibles products
BASIC TYPES OF
Retailing Wholesaling
• refers to those business activities • is buying or handling of merchandise
involved with the sales of goods and
and its subsequent resale to
services to the final consumer for
organizational users, retailers and/or
personal, family or household use. It is
other wholesalers but not the sale of
the final stage in a channel of
significant volume to final consumers.
distribution.
PHYSICAL DISTRIBUTION
Personal Selling
Purpose of Packaging
1. To protect the product on its way to the costumer.
2. To provide protection after the product is purchased.
3. It becomes part of the company’s trade marketing program.
4. It becomes part of the company’s marketing program.
P Pleasant
I Participate in
FIVE-STEP PRIDE PROCESS:
Working the Activities
Environment and Programs
Recognize,
Reward and
R Reinforce the D Develop Skills
and Attitude
Good Behavior
Evaluate and
E Measure
Performance
The following tips can help someone to become
succesful in networking career:
1. Be confident when dealing to others but be humble so.
2. Both of you are important in the meeting
3. Make the first meeting successful remember firm
impression last.
4. Share information to create understanding.
5. Praise other people,
Credits: avoid being arrogant.
This presentation
6. Let other people
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created monopolize a conversation.
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7. Thank someone.
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8. Ask for referrals & images by Freepik.
infographics
9. Bring the best ideas, avoid talking nonsense or junk ideas
10. Ask for referrals
11. Bring the best ideas, avoid talking nonsense or junk ideas
12. Be conscious in time, some people are busy
THANK
YOU!
VALERIO LINAAC
AMORES BALT
GOCHUICO RETUERTO
ABLANQUE
DALIDIG