Module 3

The Marketing
Plan

Mau
 1. Describe the unique
selling proposition
Module and value
Objective proposition that
differentiates one’s
product / service
from existing
At the end of products / services.
this module, I
can:
Mau
 2. Determine who
Module the customers
are in terms of
Objective the following:

1. Target market
At the end of 2. Customer
this module, I requirements
can: 3. Market size
Mau
 3. Validate customer-
related concerns
Module through the
Objective following:
a.Interview
b.Focus group
At the end of discussion
this module, I c.Observation
can: d.Survey

Mau
 4. Describe the
marketing mix (7ps)
Module in relation to the
business opportunity
Objective and vice versa:
a.Product
b.Place
c. Price
At the end of d.Promotion
this module, I e. People
can: f. Packaging
g.Process
 5. Develop
Module
Objective a brand
name.
At the end of
this module, I
can:
 Business Plan
• A comprehensive paper that
contains the situation analysis,
objectives, strategies and tactics
• How to monitor and control the
enterprise
• The 7p’S
Mau
MARKETIN
G
IT IS A COMBINATION
OF DIFFERENT
ACTIVITIES THAT
COMMUNICATE THE
BENEFITS OF A
COMPANY’S PRODUCT Mau
Marketing is all
about knowing
the customers
Mau
MARKETING
PROCESS

IS IDENTIFYING THE
CUSTOMERS’ NEEDS
WHERE YOU ARE TASKED
TO CREATE MEANINGFUL
VALUE PROPOSITION. Mau
 Value
Proposition

states why a
customer should
buy a certain
product or service
Mau
Value Proposition is
the major driver of
customer purchase

Mau
 Tips to create effective
value proposition

1 2 3
Value Highlight the
Prepare proposition values of your
situation Should be product or
straight to the service
analysis point
Mau
 Tips to create effective
value proposition

4 5 6

Adapt to the Add Differentiate

language of your value
credibility
your market proposition
enhancing with your
elements competitor
Mau
Unique selling
proposition

This refers to
how you’ll sell
The product to
your customers
Mau
Unique Selling
Proposition is
how you
advertise or
promote your
product Mau
Tips to an effective
unique selling
proposition

Mau
 “Why 1
should I
Identify the
choose uniqueness of the
you over product or service
others?” attributes
Mau
Mau
Mau
 2
Be very
specific
Mau
 3
kiss Keep it
short and
simple
Mau
KNOW YOUR
CUSTOMER

Mau
 Market research
A comprehensive process of understanding the
customer’s intricacies and the industry they
revolve in.
 One of the most critical task
 The result is the entrepreneur’s major
investment
 Aims to scrutinize the target market
Mau
 Market size
• Area where the entrepreneur’s
business will play
• Number of individuals in a certain
market who are potential
buyer/seller

Mau
 Research
1
methods
2 3

Eliminate the
Estimate customers who
Estimate
potential are probably market
unlikely to buy
market the product share
Mau
 Primary and
Secondary
Target Market
Dharlene
Dharlene
 What is primary target?
Primary target
market are those
buyers who has the
highest volume of
sales.
Dharlene
Dharlene
 What is secondary target?
Secondary target
market are those
buyers known to be
one of the future
primary target.
Dharlene
Dharlene
How to tap a primary
and secondary target?

Market
Intelligence
Dharlene
 Market Intelligence
 It includes customer
profiling.
It drives the entrepreneur
on what correct strategies
and tactics to employ.
 Market Segmentation
Dharlene
Market Segmentation
The process of grouping
similar or homogeneous
customer according to
demographic,
psychographic, geographic
(location), and behavior.
Dharlene
 a r ke t
M o n
e n t a t i
Segm

Dharlene
 Demographic

It is also called as Socioeconomic

variables:
socioeconomic
segmentation. It is a • Income range and
process of grouping social class
customers according to • Occupation
relevant socioeconomic • Gender and age
variables for the • Religion
business venture. • Ethnicity Dharlene
Income range and the social
class

Represent the purchasing

power of the market.

Dharlene
 Occupation

It is better to consider the daily routine

where goods and services can be properly
positioned.

Dharlene
Gender and Age group

Life cycle of customer and their

gender influence their buying
behavior.

Dharlene
Dharlene
 Sex and Age Group Potential Product or service demand

Products: trendy clothes, rubber shoes, soft

Male teenagers drinks, chips, prepaid cell phone load
Services: Cool hangouts places, barber
(13-19) shops

Products: Beauty products, bags, clothes,

Single females perfumes, magazines, shoes
Services: spa, beauty clinics, gyms, movie
(20-30) houses

Products: Food and grocery items, children’s

Married couples cloth
with kids (30-50) Services: Theaters, babysitters, theme parks,
travel packages

Senior Citizens Products: Fruits and vegetables, hair dye,

medicines
(60 onwards) Services: Travel package, health services.

Dharlene
 Religion and ethnicity

The religion and ethnicity affect the

ways of the buyers buy product or
avail of services.

Dharlene
Lenten Season

Ramadan

Muslims
Dharlene
 Psychographic

Process of • Perception
• Motivations
grouping customers
•Physiological
according to their •Psychological
perceptions, way of • Aspiration
life, motivation, and • Deprivation
inclinations. • Inclinations
Dharlene
Perception
Process wherein an individual
receives external stimuli using five
senses of hearing, touching, smelling,
seeing, and tasting.

Dharlene
 Physiological
Motivation
It is the need of a
person.

Dharlene
 Psychological
Motivation
It involves what the
customer like or
dislikes.

Dharlene
But MOTIVATIONS
are also
affected by
aspirations and
deprivation
Dharlene
 Aspiration

The customer
wants to achieve.

Dharlene
 Deprivation
It involves the
customer’s recognition
of certain voids to fill.

Dharlene
 Customer’s
Inclination
Preferring one product over
another as a result of gaining a
refreshing experience when
using the product.

Dharlene
Dharlene
 Geographic

Simply
grouping
customers
according to
their
location.
 Behavioral

Process of • Occasion
grouping the • Loyalty
customers • Usage of products
according to or availability of
their actions. service
Dharlene
 Occasion

It affect the
customers’ buying
behavior.

Dharlene
Dharlene
 Loyalty

Result of
maintaining
satisfied customer.

Dharlene
 Usage of product

How often a
product is being
used or the service
is being availed.
Dharlene
Talking to
your
Customer Dharlene
 It is good to have a
marketing research for the
Entrepreneur to estimate
the market size, market
share, and other general
market assumption.
Dharlene
Marketing Research
1.Should have a solid objective.
2.Good timing of executing
A. Geography
3.Establishing the research
design that will effectively
implement the steps.
Dharlene
 The interview
• Most reliable, and credible of
getting information from the
customer because it is a face to
face contact between the
researcher and respondents.

Dharlene
Two Types of Interviews:

1.Unstructured
Interview
2. Structure Interview
Dharlene
 Unstructured Interview
• Informal Type
• The respondents are answering
freely
• The one who’s conducting the
research must be friendly.

Dharlene
Dharlene
 Structured Interview
• Formal type
• Specific questions, which can be
answer by yes or no, forced
ranking, and multiple choices.
• Cannot omit or add information.

Dharlene
Dharlene
 Three Challenges can
be faces during research:

1.Setting an appointment with an

interviewee.
2.The respondents’ indifference to
show their opinion.
3.Getting unbiased answers.

Dharlene
Kheza
 A process of mining
customer and non customer
experience and insights about
a specific product or service.

Kheza
A preparatory step in crafting
a quantitative survey.

Kheza
 FGD session must be
recorded by either audio or
video and usually lasts
from one to two hours.

Kheza
What’s unique about FGD ?

Kheza
DISCUSSION
A.

Kheza
 should be able to explain to
the participants the purpose of
FGD and the ground rules
before starting.

Kheza
 B. P R O D U C T
U S A G E,
A T T I T U D E, and
IMAGE DISCUSSION

Kheza
Kheza
C.

Kheza
Kheza
D.

Kheza
PARTICIPAN
TS

Kheza
 selected based on the
objective of the
entrepreneur and should
be homogenous as much
as possible.
Kheza
Kheza
 If an entrepreneur wants to
know if there is an
opportunity for a beauty
salon business in his or her
area, then he or she will
choose to have female salon
experts. Kheza
 O
F
FG
D Kheza
 The researcher can get
combined insights from the
participants.

Kheza
 The participants are more
spontaneous and enthusiastic .
It can be observed by various
perspective.

Kheza
 of
FGD
Kheza
It obtains qualitative data.

Kheza
 Examination of the focus
group session is difficult and
requires more time.

Kheza
 There are potentially biased
answers from the participants.

Kheza
Kheza
preferred and practical methods of
generating ideas because the
researcher documents the
behavioral patterns of people or of
objects or events without
necessarily requiring them to
participate in the research.
OBSERVATION

Human
observation
Kheza
Kheza
EXAMPLES OF
HUMAN
OBSERVATION

Kheza
CUSTOMER PURCH
ASE
PAT T E R N S

Kheza
MYSTERY SHOPPI
NG

Kheza
OBSERVATION

Machine
Observation
Human
observation
Kheza
VIDEO CAMERAS OR
CLOSED - CIRCUIT
TELEVISION

Kheza
positioned within the business
premises and records the
customers in their organic
shopping or service behavior.

Kheza
TRAFFIC COUNTE
RS

Kheza
to determine foot traffic or
vehicular traffic in a particular
location so that the marketing
researcher will be able to know
where to sensibly install a
tarpaulin, signage or billboard.

Kheza
W E B ANALY T I C S

Kheza
an online tool that tracks the
performance of a web site as to
the number of its visitors, the
contents they usually access,
and other information relevant
to website owner.
BARCODE SCANNE
RS

Kheza
helps researchers understand
the purchase behavior of the
customers by reading the
product codes and generate
relevant sales information.

Kheza
 Application to a supermarket
business:
A barcode scanner is usually use so
that they will be able to analyze the
customer's purchase behavior and
inclinations.
Kheza
GPS TECHNOLOGY

Kheza
technology that allows tracking
of vehicles and pedestrians
exposed to out – of – home
advertisements.

Kheza
Observation only becomes a
relevant research tool if it
meets the following
conditions:

Kheza
 1. If the person, object, or
event is indeed observable.

Kheza
 2. If the person does the
activity regularly or the event
happens on a regular basis.

Kheza
 3. If doing an interview or
FGD is becoming intrusive of
the privacy of the person.

Kheza
 4 . If the subject of
observation does not take too
long to produce relevant
information.
Kheza
Kheza
 A process of getting answers
from a sample of respondents
derived from a particular
population.

Kheza
A survey is very simple and
practical to run because it
requires preparation of
predetermined questions
answerable by definite
responses using equitable
scales.
Kheza
SURVEY SNAIL MAIL

TELEPHONE FACE TO FACE

INTERACTION

Kheza
1. S A M P L I N G
TECHNIQUES

Kheza
SAMPLE

Kheza
 a percentage of a specific
population carefully chosen by
the researcher to generally
represent the whole
population.
Kheza
PROBABILITY

SAMPLING
TECHNIQUE

Kheza
PROBABILITY

SAMPLING
TECHNIQUE

NON
PROBABILITY
Kheza
AMPLING E RROR

Kheza
a range of inaccuracy to which
a sample might vary from the
particular population.

Kheza
2. S A M P L E SIZE

Kheza
 must be able to calculate first
the appropriate sample size in
conducting survey.
3. Q U E S T I O N N A I R E
BLUEPRINT

Kheza
A. Be specific and direct with
the questions and answers
required.

Kheza
 B. Be flexible with the
respondents’ convenient way
of answering the
questionnaires.

Kheza
 C. Ensure that each question
is necessary and not repetitive.

Kheza
D. Always put yourself in the
shoes of your respondents.

Kheza
E. Make sure that questions
are arranged in a coherent
order that will lead to the
answers required.

Kheza
 F. The questionnaire should
look professional, be divided
into strategic parts, and be
properly numbered.

Kheza
Kheza
 a widely accepted strategic
marketing tool that combines
the original 4Ps (product , place,
price, promotion) with the
additional 3Ps (people, packaging,
process).
Kheza
Kheza
 Marketing mix will be able to
address marketing components
of both goods and services or
even the hybrids.

Kheza
7Ps

Kheza
Kheza
 conduct situation
analysis

set SWOT
objectives 7Ps analysis

come up with
marketing strategies
Kheza
 -a product is any physical good, service
or idea that is created by an
entrepreneur or an innovator in serving
the address needs of the customers and
addressing their existing problems.
Dakila
Level 1: Core benefits of the product or
service
Level 2: Physical Characteristics of the product
or service
Level 3: Augmented Benefits of a Product or
service
Dakila
Level 1: The Core Benefits of the
Product or Service

the core benefits of the

product or service are the major factors
why a customer buys a product or avails
of a service. For example, a customer
buys coffee because he or she wants to
feel energetic and alert the whole day.

Dakila
Level 2: Physical Characteristics of the
Product or Service

Once the core benefit has

been satisfied and options
are available to the customer,
the tendency is to look for
the second layer of section.

Dakila
Level 3: Augmented Benefits of a
Product or Service

Are only additional benefits; a customer

will still get the core benefits of a product
or service even without the augmented
benefits. However , in case of common
products and services where there are
number of competitors, the differentiator
comes from the physical evidence.
Dakila
 For example:
the customer can choose a coffee that
comes with a loyalty card, so that when
he or she accumulates say , 10 coffee
drinks he or she be able to get a free
coffee drink
Dakila
The entrepreneur must research about the
area’s population, the traffic, the people’s
common paths, their buying behavior and
their preferences for the location.

Dakila
Price is the peso value that the entrepreneur
assign to a certain product or service after
considering its costs, competition, objectives,
positioning and target market. IT is the only P in
the 7Ps that generates revenue for the business.

Dakila
 Common Pricing Strategies

1. Bundling – this refers to two or more

products or services in one
reduced price.

For example:
manicure and pedicure for P150

Dakila
 Common Pricing Strategies

2. Penetration pricing – this refers to

setting low prices to increase market
share ,but the entrepreneur will
eventually increase the price once the
desired market share is achieved

For example:
Super 8 and Ultramart

Dakila
 Common Pricing Strategies

3. Skimming – this is the opposite

penetration pricing where prices are
initially high and then they are lowered
to offer the product or service to a
wider market
For example:
Technology base products like
Cellphone, printer, etc.
Dakila
 Common Pricing Strategies

4. Competitive pricing – this refers to

pricing different products or services
within a parallel product array using
varying price points
For example:
Cetaphil, Dove and Coca Cola
products.

Dakila
 Common Pricing Strategies

5. Product line pricing – this refers to

benchmarking prices with the
competitors
For example:
Colgate and Close Up; Jollibee and
Mc Donald; 7 Eleven and Ministop

Dakila
 Common Pricing Strategies

6. Psychological pricing – this considers

the psychology and positioning of
price in the market

For example:
Php500.00 to Php499.75

Dakila
 Common Pricing Strategies

7. Premium pricing – this refers to

setting a very high price to reflect
elitism and superiority

For example:
Lamborghini, Apple, Canon

Dakila
 Common Pricing Strategies

8. Optional pricing – this refers to

adding an extra product or service
on top of the original to generate
more revenue.

For example:
meal on top of the airfare

Dakila
 Common Pricing Strategies

9. Cost-based pricing – the basis

of markup is the cost of sales.
For example:
Cost + Mark-up
Cost = Php15.00 ;
Selling Price = Php20.00
Earning = Php5.00
Dakila
 Common Pricing Strategies

10.Cost plus pricing – the

markup is based on a certain
percentage of cost.
For example:
Cost + %
Cost = Php15.00 ;
mark –up (%) = 30%
Selling Price = Php19.50
Dakila
 Profit Determination
Variable cost or Controllable costs –
cost proportion to the number of
product created/manufactured or
services performed. (can be
controlled)
For example:
Number of raw materials = number of
finished products.
Number of service rendered = number of
materials used.
Dakila
 Profit Determination
Variable cost or Controllable costs –
cost proportion or equal to the
number of product
created/manufactured or services
performed. (can be controlled)
For example:
Number of raw materials = number of
finished products.
Number of service rendered = number of
materials used.
Dakila
involves presenting the products or services
to the public and how these can address the
public needs, wants, problems, or desires.
The main goal of promotion is
to gain attention
Dakila
A Strong Integrated Marketing Communication
Plan should be devised to deliver the compelling
messages effectively………
1. Value Proposition or unique selling
proposition of the product or
service;
2. Product or service image;
3. Business image; or
4. Business value and philosophy

Dakila
 Different Promotional
Tools
1. Advertising
2. Selling
3. Sales promotions
4. Public relations

Dakila
 Different Promotional Tools
1. Advertising - this is a type of
communication that influences the
behavior of customer to choose the
product or service of the entrepreneur over
the competitors.
Advertisement tools: Advertisement tools:

1. Television 4. Mobile phones

2. Radio 5. Print
3. Internet 6. Out-of-home

Dakila
 Different Promotional Tools
2. Selling – this is the act of trading of products
for a price or fee.
Steps in Selling:
1. Identifying of target customer.
2. Handling of objection
3. Closing of sales
4. Monitor customer satisfaction
5. Assessment of personnel

Dakila
 Different Promotional Tools
3. Sales promotions – these are short term
promotional gimmicks wherein practical
incentives and appealing activities are
incorporated to entice the customers to
buy the product or avail of the service.
Example of Sales Promotion:
1. Sales discount or discount coupons.
2. Raffles
3. Contests and games
4. Promo items
5. Product or service bundles
6. Trade fairs or exhibit
Dakila
 Different Promotional Tools
3. Sales promotions – these are short term
promotional gimmicks wherein practical
incentives and appealing activities are
incorporated to entice the customers to
buy the product or avail of the service.
Example of Sales Promotion:
7. Sample distributions of free taste/free
trials
8. Premiums
9. Point-of-purchase promotions
10. Advertising specialties
11. Rewards
Dakila
 Different Promotional Tools
4. Public relations – these are image building
initiatives of the entrepreneur to make the name
of the business reputable to stakeholders, such as
the target customers, government agencies,
business partners, media, and the public. Unlike
advertisements, PR do not directly promote
products or services.
PR Strategies:

1. Press conferences
2. Launching events
3. Strong media relations through press
kits.
Dakila
 Different Promotional Tools
4. Public relations – these are image building
initiatives of the entrepreneur to make the name
of the business reputable to stakeholders, such as
the target customers, government agencies,
business partners, media, and the public. Unlike
advertisements, PR do not directly promote
products or services.
PR Strategies:
4. Social responsibilities events
5. Lobbying
6. Web public relations

Dakila
People play a vital role in servicing
customers even though the entrepreneur
sells only physical goods.

People….. Its not just about the quality of

products anymore, but how employees
serve customers well. Dakila
How the product or service is
presented to customer.

Dakila
What does

Do?
Dakila
 Is/It/Can…….

1. The first element the customer

see.
2. Determine the uniqueness of the
product from competitor.
Dakila
 Is/It/Can…….

3. Preserves the shelf life of the

product or service.
4. Entices customers to purchase the
product or service.
Dakila
 Is/It/Can…….

5. Provide “Servicescape”

Dakila
The step-by-step procedure
or activity workflow that the
entrepreneur or employee
follow to effectively and
efficiently service customers.

Dakila
The step-by-step procedure
or activity workflow that the
entrepreneur or employee
follow to effectively and
efficiently service customers.

Dakila
 TWO TYPES OF
PROCESS

1. Internal
Process
2. External
Process

Dakila
TWO TYPES OF PROCESS
1. Internal Process –
Back-office
operations,
wherein employees
or machines
process customers’
requests without
necessarily being
seen by the
customer.
Dakila
TWO TYPES OF PROCESS
2. External
Process –
Includes the
actual servicing
where
customers are
part of the
process.
Dakila
 Fundamentals
of
Brand Management

Jeanette
Brand

Jeanette
 Brand –
Refers to the
identity of a
company, of a
product, of a
service, or of an
entrepreneur
himself or herself.
Jeanette
 BRAND
MANAGEMENT
Jeanette
 Is the supervision of the
tangible (Include the
product itself, its packaging,
Brand its price, and its location)
and intangible elements
Management (Include the perception and
relationship of the customers
with the brand) of a brand.
Jeanette
BRANDING
Jeanette
 Is the process of
integrating the
strategies formed from
Branding the marketing mix to
give an identity to the
product or service.
Jeanette
THE GOALS OF BRANDING
Include the following:

1. Establishing to target customers

that the business is reliable and
trustworthy and that the product or
service is the superior solution to
their current problem.
Jeanette
Include the following:

2. Differentiating with competitors; and

3. Driving customer loyalty and

retention.

Jeanette
BRAND NAME
Jeanette
 Is a major
differentiator of the
Brand
entrepreneur
Name against the
competitors.
Jeanette
TO BE DIFFERENT AND CATCHY, A
BRAND NAME MUST POSSESS THE
FOLLOWING CHARACTERISTICS:

Jeanette
 •Unique
Brand •Extendable
Name •Easy to remember
•Can describe the
should benefits of the product
be…….. or service.
Jeanette
 •Can be converted to other
Brand dialects or languages in case
the entrepreneur expands to
Name other territories.
•Can describe a product
should category.
•Can describe a concrete
be…….. qualities.
•Positive and inspiring
Jeanette
End of Module#3

Dakil