Lecmktnew2013

Lectures in Principles
of Marketing
1st Semester 2013- 2014
Prepared by :Professor Rhomy B. Nuqui, MBA

Chapter 1
An overview of Marketing
The World
of
Marketing

Many people think marketing is
personal selling

Marketing is advertising- it
communicates the product……

Marketing makes the product available in
different channel/stores.

Merchandising and inventory
of products stocks to
attracts…….

And more such as branding and
creating customers, sales and profit

Marketing
Management
Philosophies

PRODUCTION
CONCEPT
Production concept- this concept
holds consumer will favor on
products that are highly available and
affordable.
CHINA is one of the biggest
manufacturer in the world of
consumer product and proven to
supply products high availability at a
cheaper prices.

PRODUCT
CONCEPT
 Product concept- it holds that consumer
will favor product with most quality,and
improved features.
 This concept can be observed on personal
devices such as cellphone, laptap and Ipad
which satisfy consumer in terms of
extended innovative feature such wifi ready
and photo editor.

SELLING
CONCEPTS
 Selling Concept- this concept holds
consumers will not buy enough volume of
products unless the product is under an
aggressive seling and promotions.
 This concept emphasized that consumers
are said to be “promotion driven” to
motivate them in their purchase decision.

MARKETING
CONCEPTS
Marketing concept-
this concept holds that
organizational goal can
be achieved by
identifying the needs
and wants of consumer
by delivering satisfaction
better than competitors.
FEDEX deliver
overnight mail and
packages all over the
world by maitaining their
company mission as
communicated in their
Brand tagline” We live to
deliver”.

SOCIETAL
MARKETING
CONCEPTS
Societal marketing Concept- this
concept is not just to offer and sell the
product to achieved satisfaction but also
to maintain social responsibility and
concern with the customer’s well being.
Midas hotel is very visible and
cooperative in joining environmental
program with other company such as
“Run for the Pasig River” campaign.

 Marketing Defined(kotler, Armstrong, marketing global
perspective)
 A social and managerial process whereby individuals and groups
obtain what they need and want through creating and
exchanging products and value with others.
 Some marketing professionals like professor greg carpenter, mostly new
products are sixty percent unknown to the market. Learning
must happen to consumer to expects success for these products.
Consumer must realize what they want and this is possible as
they experience new products coming in the market.

Marketing Explained
• The company is responsible in satisfying the needs of
customer by providing them product with superior
value
• having price right for the value, making it always
available in a strategic distribution points
• and communicates effectively its positioning and
image so these product will sell easily in the market.
• The brand essence and value or why it is uniquely
different from others and the brand direct connection
to consumer’s need priority.
• Company are taskto develop product that will meet the
desire and demand of the market.

 Marketing Applied
 Outstanding marketing companies understand the market by applying
segment priority needs that will answer the satisfaction of consumers.
 Needs are basic necessity for survival and wants are shaped in
psychological and culture of a person.
 Demands are backed up by purchasing power and expectation are
benefits of consumer about the product in the long run.
 Marketing research handles and gather the consumers information
and evaluate these data as a basis in their decision making on what to
produce and deliver to the market.

 Phcare was lunch in 2003 satisfying the 80% category
of non -users of feminine wash who relized that pH care
balance was suitable for vagina’s daily care protection
and it contain enough pH which is 3.5.
 Unlike lactacyd of Sanofi which is more position as
medicine against infection.
 PH care is double price lower than the dominant brand
and highly available in almost retail store unlike the
brand leader which is very prominent on leading drug
store and PH care was launch using the powerful
endorsement of Sharon Cuneta and her daughter KC
plus prominent women like Dawn Zulueta.

Needs,Wants,
Demands and
Expectations
 Needs are tate of felt deprivation
on the basic necessities for survival.
 Wants are felt needs shapes by
individula personality and cuture.
 Demands are wants of consumers
backed up by purchasing power.
 Expectations are benefits enjoy by
consumer in terms of product
performance results in continuous
use aside from its value and
satisfaction given to consumer.

 Building Customer
Relationships starts
with:
• Customer satisfaction- when the
total customer satisfaction with the
product has been met or exceeded.I
• t is not only on the product itself but
more so with customer services and
how you deal with them during
transaction as well as after services
that a marketer can do with the
customer after purchase.

 SHOPWISE AND WALTER MART provide so many services
that are convenient to shoppers such as:
 “ prestige lane” for frequent shoppers aside from their everyday
discount products.

Price satisfaction to
customer and sales to
company
Sun Broadband
company provides
the lowest rate and
fast internet
connection among its
competitors.

 Partners for Profit: the achievent of customer
success (Relationships marketing)
 The above examples emphasize the efforts of the
company to render superior value customer satisfaction in
return customer endorse the product to others and create
a word of mouth or a widespread of viral marketing.
This is the result of “ Relationship Marketing” by having
customer as a “ Partners for Profit”.

TOPIC EVALUATION
 Instructions: Determine the following product weather
Need, wants, Expectations OR COMBINATION.
1. Cars like BMW, Mercedezbenz and Ferrari.
2. Town house with ample potable water with car garage for two
cars and enough space to entertain at least 50 guest.
3. Fresh vegetable and fish in the wet market

4. Jucilicious “chicken joy” for lunch.
5. Quality education at State UniversitY.
6. Thrilling experience watching a 3D
movie at Imax CINEMA
7. Fresh air and water to survive.

8. Pleasure trip along top Asian countries.
9. Award winning acting of Leonardo D
Caprio on his movie Inception
10. A simple apartment along sampaloc
manila


Assignment:
 Answer the exercises on your workbook to apply what
you have learn in chapter 1 including cases and thinking
application and all the topic exercises.
 Assignment will be submitted one week.
 Any duplication of the answers will invalid your
assignment.

HOSPITALITY
MARKETING
Introduction to:

BACKGROUND
Marketing as applied in : Hospitality and Tourism
 Previewing the concepts:
 This chapter unfolds the significance of marketing in the field of
hosptality services in hotel travel and Tourism.
 It answers the questions why marketing is very useful in the field of
hotel and Restaurant management and Tourism industry.
 How marketing strategy is applied in different service oriented
establishments such as hotel, restaurants and travel.

INTRODUCTION TO HM
 Food is one of the basic necessity to survived in this
world. Its always been a priority of every consumer in
their weekly budget. It has the biggest slice in the total
consumption of household expenditures. Food is
everywhere and anywhere in whatever form and served to
customers. Restaurant is one of the biggest venue for
food where people gather together, bonding and spent
money just to satisfy their hunger for food.

 Restaurant can be a fine dining like Gloria Maris or Via
Mare, a fast food chain or quick service restaurant like
McDonald and Jollibee, a small kisok or booth like binalot
and waffle time or a food packed in a styrofor and deliver
by a simple vendor in dfferent offices or exhibit in the
middle of the street consumed heavily at a fix price at eat
all you can restaurant like cabalen.

Figure 1. the fastfood chain industry:)
35
20
15
15
10 5
Food chain
jollibee
mcDonalds
kfc
mang inasal
chowking
max's

Marketing Insights:
Jollibee alone is 65% of the total foodcahin industry not to
include chowking, Greenwich which comprises a total of 75 %
which declares Jollibee Food corporation a market dominating
brand.( summit media, entrepreneur magazine 2009)
In the case McDonald’s, the world’s largest food service
organization. McDonald’s holds more than 40% share of the
US fast-food burger market, many times the share of its
nearest competitor. However, if you ask the same question in
the Philippines, the answer that you’ll get will be Jollibee.

Jollibee Foods Corporation is not a household name when
it comes to the global market. But in the Philippines, it’s
the king of the burger market. One industry analyst said
“if McDonald’s is the Goliath of fast food, Jollibee is its
Filipino David.”( hubpages,yahoo.com)
Insight: being a local market leader can lead to be
successful also in the global market or viseversa.

Marketing for Hospitality and Tourism
includes: ( kotler 2010)
1. Food with integrity
2. Fresh ingredients
3. Organic, Naturality Raised Foods
4. Restaurant Environment
5. Pricing
6. Loyalty
7. Social networking
The above mentioned factors are just some of the significant elements in your
passport to success in the food and hospitality industry.

Food handler should always put themselves on the shoe of a
customer or what we called “ customer orientation”.
You don’t just satisfy the company but more so with the
customer.
Customer satisfaction will lead to repeat buying and later on lead
to company’s profit expectations.
Cabalen restaurant a popular pampanggas restaurant satisfy their customer
who wants to eat more at a reasonable price with their daily promo of “ eat
all you can” in all their branches.

Hospitality marketing defined: (kotler 2010, hospitality and
Tourism marketing)
Is a service oriented activity between a company and the
customer from the approahed stage, order taking, handling and
assembling the order up to finally serving the product to the
customer.
It is a misconception of considering marketing is only selling and
advertising but it is more of a hands on and customized and
personalized handling of every client.
Hospitality marketing is a face to face encounter between a service
manager and a walk in customer.

Customer needs and Wants and Demands and Expectations
Needs- it refers to a state of felt deprivation on the basic necessity
for survival. Or simply the things that we can’t live without.
Wants-are felt needs shaped by culture and individual personality or
normally products that are already a luxury.
Demands and expectations- these are needs and wants back up by
purchasing power or something that customers expects in the long
run after using the product.

Figure 1-1: Needs, wants and Expectations as Illustrated:
“ I need to to celebrate my birth day in a cozy restaurant with enough parking space. It
should of course have variety of delicious food from the main course to dessert. I want it
to provide the venue with good sound system so the guest may dance during party time.
I want it near my place of work and within the main street so my guest can easily find
taxi after the party. I also want enough space for entertaining at least 200 guest with
good security within the area. I expect other popular establishment surrounding my
party venue.”

Customer value- are the benefits gain by the customer in consuming the product
against the buying cost.

Consider watching a 3D movie at IMAX for Php. 300 pesos, the ticket price is twice
the ordinary movie house but compare the experience inside IMAX cinema with
the 3D glass on 18th floor size screen, the value is more than enough to what you
actually paid for.
Exchange and Relationships:
It pertains to a trade of value between a seller or provider and the buyer/consumer and
the relationship the marketer created while performing the transactions.
Restaurant manager normally give a a first time customer in the store
by providing them a “welcome drinks” or free dessert charege on the
house” making customer feel the importance and remember the
place after leaving and even tell it to others.

Satisfactionsurveyaregiventocustomerstorate
thecustomerserviceperformanceofthestore.

Assignment no: 001
 Title: needs and wants and expectations
 Refer to your workbook to see the given situations to
identify clearly Needs, wants, demands and expectations.
 Cut properly the exercises and use stapler .
 Assignment will be collected one week after it was given
to you by your professor.
 Late assignment will not be accepted.

Service characteristics
of hospitality and
tourism marketing
Chapter 2

Characteristics of service
marketing:
INTANGIBILITY

VARIABILITY- the quality
depends on who is providing the
service.

Management strategies for
service business
 Healthy service profits and growth- superior performance
 Satisfied and loyal customers- repeat purchase
 Greater service value- efficient customer value creation
 Internal service quality- superior employee selection and
training.
 Internal marketing- customer – contact employee motiation
 Interactive marketing- perceive service quality defends on
employee interaction.

Management strategies for
service Business
1. Tangibilizing the service product
 Trade dress
 Employee uniform and costumes
 Physical surroundings
 Greening of the hospitality industry

2. Managing employees- human resource and marketing
department must work closely together.
a. Internal marketing- involves the effective training and
motivation of customer- contact employees and supporting
service personnel

3. Managing perceive risk- high risk people perceive when
acquiring service increases loyalty to companies that provide them
with consistent product in the past.
4. Managing capacity and demand- it enable the company to
operate at a maximum capacity.
5. Managing consistency- it means that customer will received the
expected product without unwanted surprises.

Learning
objectives
 The importance of Strategic Planning
 Define SBU’s/strategic Business Units
 The significance of Marketing plan
 Defining appropriate mission for the company

 Describe the components of situation analysis
 Identify the sources of competitive advantage
 Evaluating criteria for a good marketing objectives
 The target market strategies
 The Marketing mix
 Implementation and control in the marketing plan

Strategic Planning
Pertains to the managerial process
of creating and maintaining a fit
between the organizations’
objectives and resources and the
evolving market opportunities.
It focuses on the “game plan” or
strategies of the company in
achieving its goal.
The impact to the 3C’s of
Marketing

Cebu Pacific’s: fun
flights game plan
the strategy of “Every JUAN can fly
• Low cost, Great Value, ticket
booking revolution
• Creative pricing strategie
• They start selling cheaper
package ticket tour around asia
by affiliating with different travel
agency and hotels around the
world.
• Tag as “ game changer”

The Process of
Planning Marketing
strategy
Marketing strategy are plan of
action that a company can executes
and implement to achieve its goals
which includes:
• Tapping its desired target market
and
• Develop and implement an
effective marketing mix in their
marketing program.

Key
Results
Areas
Sales -which can be improved
by customer strategy
Market Share- byoutperforming
your primary target and lead the
competition
Profit- by generating reasonable
profit at the end of the period. In
marketing we believe that
satisfaction of customers may
lead to profit that eventually
satisfy the company.

The case of JFC in the
food chain industry
jollibee alone is 65% not to nclude
chowking, Greenwich which
comprises a total of 75 % of the total
industry market share in the foodchain
category which declares Jollibee Food
corporation a market dominating
brand. ( as of 2008,jollibeepublication) last
2013 JFC bought the 75% stocks of Mang
Inasal declaring them as the owner of the said
brand
35
20
15
15
10 5
Foodchain
jollibee
mcDonalds
kfc
manginasal
chowking
max's

Examine the following to understand how strategy works for the improvement
of the Firm’s KRA:
Sales:
 Street eatery such as “tapsilog” carinderia are open 24/7 targets
the blue collars and the night shift workers as new users for the
product.
 Evaporated milk are not just coffee creamer are reposition as ”
the cooking milk” to increase consumption for the product when
they captured the household and culinaries with their new
kitchen recipes
 Zero sugar cola- tapped the gyms and fitness centers as new
territorials to develop new market segments or those people who
can not take sugar content on the regular coke but cannot resist
on softdrinks.

Market share
 SMART-PLDT bought digitel company who own
sun cellular to dominate the biggest market share in
the telecom industry.
 Cebu Pacific steal share of the market in the sea and
land transport industry offers the lowest rate fare to
customers adopting cost advantage strategy to gain
brand shifters.

profit
 Branded and signature product are low sales but high profit due to high
mark up margin on top of the cost.
 Nokia launch new series adopting price skimming or launching the new
brand with a high initial price.
 Starbucks price is enough for the company to retain profit without targeting
too much sales or adopting the strategy of having a low sales but high
profit.


1. Mission
Defining Mission statement- Defining
mission is a statement of the
organization’s purpose or direction on
what it wants to accomplished in the
larger environment .
Mission can be of the following
intensions:
• to create and serve customers, or to
make profit by providing right price
product and services.
• It can also be outperforming the
competition or
• maybe provide employment
opportunity for people and

2. Objective and
Goals
Setting Objectives and Goals- is
building profitable relationship with
customer through:
Effective relationship marketing and
being partners for profit
By developing better products and
getting them to market faster at a
lower costs.
The case of C2’s Health goal in dominating
RTD Beverage market. ( Blue Ocean
Strategy)

3. The Business portfolio/
the SBU ( strategic Bussiness
unit)
 Developing the Business portfolio- is the
company’s appropriate strategy for every SBU/
strategic business unit or defining a separate
strategy for every brand offered in the market.
 Every brand is considered one SBU with separate
marketing plan and strategy from the other brand
of the company’s product.
 The case of UNILEVER Corporation
 Personal care products are strategically marketed
with distinct strategy against their household and
food products.

Designing a Business Portfolio
• The collection of businesses and products that make up the
company and analyzed them in the BCG / Boston Consulting
Group by classifying their current SBU’s/strategic Business
units acoording to the growth share matrix such as:
1. Stars- are those product which currently has high market
share and high market growth.
2. Cash cow- are brands with high market share but currently
experiencing low market growth
3. Question marks- are products/brands that has low market
share but a promising high market growth
4. Dogs- products that currently has low market share and low
market growth.

The Boston Consulting Group/BCG Matrix

4. Strategies for
Growth
Developing Strategies for Growth
 A portfolio planning is a tool for identifying company growth
opportunities through market penetration, market development,
product development and diversification.
 The Growth Opportunity Portfolio enable the company to
detrmine what growth strategy can be done regarding the SBU’s
in terms of product and market expansion grid.(
ansoff/marketing management 2009). By working closely with
partners in other company departments and even outside the
company to bring greater satisfaction to customers.

Growth Opportunity in the market can be classified by using
portfolio planning tool for identifying company growth and
opportunities through:
Market penetration- a strategy by increasing the consumption of
consumers without changing the product.
Market development-a strategy by identifying new group of
consumers or segments of users to the current product.
Product development- the company develop new product for the new
group of segments.
Diversification- a srategy for company growth by starting up or
acquiring business outside the company’s current business and market.

Figure 1-6 :Ansoff Model of Opprtunity og Growth Matrix
existing new
existing
Market penetration diversification
new
Market development Product development
Insights:

Growth strategy applied:
market penetration
 The case of Selecta’s 3-1 plus 1 generates heavy
consumption of ice cream taking the advantage of
various flavors in one container.
 Bounty fresh chicken’s create “ chooks to go” increase
consumptions and create new market on neighborhood.

Market development strategy
 Johnson pure essentials of J and J by tapping
the younger and adult market in consuming
refreshing face powder.
 Smart for kids, Sustagen prime and junior
variants
 Lipovitan IRA for women market

Product Development
 The case of Virgin airlines which includes a bar at
the back area of the business class.
 The case San Mig Coffee from the usual beer
products of SMC.
Diversification-.
 The Case of Retail Malls such as SM expansion by
developing condominium within the malls of Shoe
Mart.

Insights:
Growth opportunity matrix define
how company expand its growth
potential in:
 capturing bigger slice of the
market and also tapping new
areas of the market space
 as well as new segments of the
industry by improving current
marketing strategy , creating new
users
 and adapting new opportunities
for the campany.

CONDUCTING SITUATION
ANALYSIS
 Understanding the potential environment in which the product or service will
be marketed.

Environmental
scanning
 The collection and interpretation of information about forces,
events, and relationships in the external environment.
 The process spotting a trend and determined if it pose an
opportunity or threats in the market.

Fastfood chain is surrounded
by strong competitiors
diverting the taste of pinoy on
chinese style of food.
chowking meet the taste
and preference of pinoy
in the “ pinoy chinese
noodles” segments

Competitive Advantage
such as:
Cost advantage
In terms of price against
leading brand of laundry
soaps such as Bonux for P
and G to answer the low
end price competition.

PRODUCT SERVICE
DIFFERENTIATION
THE CASE OF:
BANCO DE ORO the
2nd largest Retail
banking due to service
advantage against
leading banks. They are
open till 6pm daily and
open in mall branches
on weekend.

NICHE
ADVANTAGE
SEEKS TO TARGET EXCLUSIVE
MARKET OR SINGLE GROUP
OF SEGMENT.

BUILDING
SUSTAINABLE
ADVANTAGE
 Is one that cannot be copied by the
competition like:
 Video on Demand the cable movie
subscription service has a steady hold
over the movie rental market.
 Consider the million subscriber of sky
cable in the country.
 The case of iphone aplication and
download system

Setting Marketing Objective
Pertain to statement of what is to be accomplished through marketing activities. It
should be SMART, specific, measurable, attainable, realistic and time bound.

The case Nestle
 One good example of a marketing plan carrying
a hollistic brand campaign is the launching of
NESTLE Corporation’s “Choose Wellness,
Choose Nestle” a campaign shift of the
company into a healthy brand in all their product
lines.it communicates for example that coffee
has the highest source of anti oxidants which is
vital to the body metabolism

Describing the Target Market
 Marketing strategy involves the activities of selecting and describing
one or more target markets and developing and maintaining a
marketing mix that will produce mutually satisfying exchanges with
target markets.
 MOA/market opportunity analysis

Examine the following:
 Gen X – 18 to 35 years old
 Gen Y- 17 below/ high school teens
 Skippies- 12 y/o below/kids
 Beauty seekers segments- young adult and matured in 40’s to 50’s who are
into active used of cosmetic products, beauty enhancement, still vain and
concious of being glamour
 Male Metrosexuals- straight guys who are so concious with their looks,
glamour, wear more cosmetics than women
 Dual earners- family where both parents are working
 Single parent- independent provider for the family
 The Baby Boomers born in the early 60’s which are considered now as group
of segments who are stable, generated a lot of properties, with successful
carreer, having a high purchasing power

The 4 P’s of Marketing:
product, Price, Place and Promotion
Every brand needs to have marketing mix strategy that interacts
with customer’s motivation in buying the product. It served as an
influencer to their purchase decision process defending on how
each of the 4 P’s is executed in the market. Let us define one by
one the 4P’s of Marketing as follows:
• Product- can be tangible or intangible that is offered in the
market
• Price- pertains to the amount or what is exchange for the
product
• Place- pertains to channel of distribution or where to find the
product or its availability
• Promotion- the means of the company in communicating the
brand to its target market.

Figure 1-7: Integrated Marketing Mix
Developing an integrated marketing
mix
• Marketing mix- the set
of controllable tactical
marketing tools-product,
price, place, promotion
that blends to produce
the response it wants in
the target market.
• SWOT analysis-an over
all evaluation of the
company’s strenghts,
weaknesses,
opportunities and
threats.

MARKETING
STRATEGY AND
THE
MARKETING
MIX
THE 4P’S OF MARKETING (PRODUCT,
PRICE, PLACE AND PROMOTION)

Marketing strategy
 The goal in HM is to create value for customers and build
profitable customer relationships. Next is:
 Marketing strategy or the logic by which the company
does the action to achieve this objectives such as:
1. Decide which customers to be served ( segmentation and
targeting)
2. How to differentiate its service and position the company
in terms of the marketing offer.( positioning)
3. Identifies the total market and divide them into smaller
segments, selects the most promising group that can give
the company the most profits.

Starbucks’s Marketing
Mix and its Target
Market segments
Product: Lifestyle Coffee Bar which offers freshly bean
coffee and cozy ambiance.
Price: Php. 100 – to 200 per servings
Place: Normally based on high end Malls along
Makati, Manila and Quezon City or newly
reinvented places such as Global City and
Eastwood.
Promotion: word of mouth, no formal advertising
but offers in store customer
promotions.

Target Market
 Gen X, college students from private and
exclusive University, Yuppies or Young
Professionals and corporate people and
businessman.

Assignment 2>
 Develop an integration of marketing mix of any
popular brand of consumer product.
 Describe in details what kind of product is your
chosen brand.
 Identify the most appropriate target market who wish
to have for the said brand.
 Develop also your own strategy or what to include in
your product offer to make it interesting to the
consumer.
 Enumerate your details using the 4P’s of Marketing.

ETHICS AND
SOCIAL
RESPONSIBILITY
CHAPTER 3

background
• Companies are not just into producing and
creating or developing new products for
profit reason.
• They also considered the well being of the
consumer by producing less toxic and
environmental friendly product that can still
satisfy consumers and generate profit for the
organization.
• Organizations are affected by restrictions
and policies imposed by the government.
They served as eye and ears for the legal
operation of every business.

Ethics
1. Refers to the moral
principles or values that
generally govern the
conduct of individual or
a group.
2. Ethics pertains on the
physical action that can
be observed both for
customer and company
particularly their
offerings for their target
market.

Social
responsibility
• Retailing business such as
hypermarket and
supermarket requires the
use of environmental
packaging every Wednesday
in all of their outlets to
contribute for maintaining a
green environment.
• The use of suggestion box,
comment cards, on line
customer response or
consumer net were establish
to handle any ethical cases
on day to day transactions
between retailers and
buyers.

Insights:
 The goal of the company is not just to sell but they have to
consider the importance of the well- being of their customers
in the society they belong.
 Major manufacturing plant closed to residential areas
established a waste management system along the area by
securing equipment for their waste disposal process in their
daily operations.
 Aside from donating a garbage container in the residential
community, It gives assurance for the people living in nearby
the factory plus providing a short term employment and
livelihood program to these residences.

 Whistle blowers- are employees who report
unethical or illegal actions of their employees.
 Code of ethics- are formal statement of rules of
conduct
 Moral Idealism- are normally individual rights such
as personal opinion.
 Social responsibility- refers to idea that
organizations are part of the larger society and are
accountable to the society for their actions.
 Green Marketing- marketing efforts to produce and
environmentally- sensitive product such as
biodegradable, less toxic and eco friendly product.

 Business Culture- consists of effective rules of the game, the
boundaries between competitive and unethical behavior.
 Consumer Bill of Rights- this certified the ethics of
exchange between buyers and sellers “ caveat emptor”
let the buyers beware emphasized the rights of
consumer regarding the product such as choice, safety
and quality upon demand.

Ethics of Competition- it composed of industrial espionage which pertains to the collection of
trade secrets and also in the case of Bribery.

Ethics defined in advertising
 Pertains to moral standards and principles against which
behavior is judge which includes,honesty, integrity, fairness and
sensitivity i n ethical behavior(O’GUIIN,advertising and IBP
2006)
 Advertising for Children- skippies are children ten years old
below.
 The newly recognized target market and considered a
powerful influencers to parents. Normally kids ads are
more lenghty and descriptive.
 Most advertisers uses cartoon and animation to clearly
get the kid’s attention to the message of the adssuch as
ads on everyday milk and its benefits, healthy food that
can increase intelligence as well as vitamins for strong
and active energy. Childrencan easily absorbs deceiving

Examine the following and
express your insights and
comment in the aspect of
ethics and social
responsibility it affects to
consumers.

defamation
Defamation- when a certain
communication materials , written
or verbal damages the reputation
of an individual or brands and
these leads to slander and libel
cases.
Like the case of McDonald
unhealthy food

puffery
Puffery- pertains to brands superlative
claim as number one, the best, the
most entails being far better than
competitors creates a
misinterpretation and misleading to
consumers.
“ sa Sustansiya at lasa,wala pa ring
tatalo sa Alaska” ----------Alaska
powdered milk
NIDO, the Worlds number 1 Milk-------
---------------Nido powder

Misleading and
Unfairness
misleading and Unfairness – a
situation when consumer are
misleading to the representation
of the ads or making consumer
convince and believe in what they
see.
In the case of comaparativeTV ads
of a detergent brand executing a
testimonial proof that their brand
can actually removed stains from
ink and food substance and even
grease

Self Regulation
Self regulation like in the case of
cigarretes, infant powdered milk
and alcohol drinks.
Reminder ads at the last part of
the frame:
“ cigarettes smoking is
dangerous to your health”
“ Breast milk is still best for
babies”
“ If you drink , Don’t drive

Deceiving price
Deceiving price- are promotional
gimmicks of the company as come on
factor to their target market like:
in the case of condominium “ pay as
low as P7000 pesos no down payment”
but in reality that is only on the first 6
month, on the 7th month you’ll pay in
full amount of the actual monthly
computation based on the principal
amount.
Hawlett Packard charge a very small
amount on printers but the cartridge are
very expensive.

Brand exposure
Brand exposure or verbal without
permission- any exosure in
advertising is paid, if you wish to
show the brand in a particular
scene in a movie or sitcom, you
may do so through product
placement but you have to pay the
lenght of exposure by seconds or
minutes.
Sharon Cuneta in all of her movies
we can observed product
placements in all of her brand
endorsements

Privacy or
Appropriation
Privacy or Appropriation- the use
of pictures and images owned by
someone without permission
posted on a brand promotional
materials like posters and
billboards, or in giveaway
calendars as freebies for loyal
customers.
Copyright or no parts of the
product can be reproduced,
written permission is required

Malicious title
Malicious title/ branding
may also impact on the
ethical aspects of
advertising like “
chupachups” lolllipops
with a popular tagline “
the joy of sucking”, or the
rap song title of Andrew E.
Mali Vodka sounds
sexually malicious in
repetition.

demeaning
Demeaning and double
meaning ads message – it
plays on to people and more
concern with the negative
meaning the “ Red Horse, Ito
ang Tama” connotes
negatively and it encourages
brand preference and brand
shifters because of its claim
as a “ extra strong beer”.

deception
Deception like promising a
benefit or quick results to
customers like in the case of
Ponds Age Miracle , wrinkle
free in 6 weeks, or whitening
soaps in 7 days. (truth in
advertising

THE MARKETING
ENVIRONMENT
CHAPTER 4

Learning Objectives:
 The External Environment and how it affects
the Company
 The social factors affecting Marketing
 The significance of Demographic trends
 The impact of Technology to the company
 The political and legal environment affecting
the marketing operations
 The basics of foreign and domestic
competition.

In marketing fashion and trend are normally
in short term.Designs come and go brought
about by marketing environment where
everything is ever changing, what is in now
will be out tomorrow.

• the food and travel industry, has an ever changing market from
consumer taste preference, venue to eat and exciting places to go.
• Foods are reinvented, services are more personalized and
customize to achieve better customer satisfaction.
• In this dynamic world of hospitality marketing,Manager should
consider innovation, style and even design of product and services
offer to meet the level of satisfaction of customer.
• This chapter will focus on current changes and the transition of
customer to a much challenging level of satisfaction.
• And the different environmental factors affecting product and
service operation as well as the psychological factor affecting
customer purchase decision.

Environmental scanning defined:
It pertains to the process scanning the environment by spotting a trend and
eventually determines if it posed an opportunity or threats to the market.
The process of acquiring information which can be a potential trends to the
company.
• GSM outdated analog system in the telecommunication industry banking on the
digital trend of connecting in wireless phone.
THE MARKETING ENVIRONMENT COMPOSED OF INTERNAL
FACTORS AND EXTERNAL FACTORS SUCH AS:
MACROENVIRONMENT- pertains to external factors in the environment
MICROENVIRONMENT- it pertains to the internal factors of the environment

• As we always agree, what is constant in this world is change. In every change
there is resistance or barrier to anything that can influenced to what is currently
existed.
• In marketing, we are surrounded by so many forces that highly affect and
influences company’s major decision to uplift business in a higher level of
growth and development.
Insights:
1. Telecommunication Company identified digital technology as an opportunity in the past
facing age of communication and eventually digital threatened and obsolete the analog system.
Until now digital is still the preferred by consumer.
2. Fashion come and go, it’s the trend that affects the product life cycle. In the jeans industry
,Gone are days that bellbottom pants are so in, until the hip hops puts the mood for techno
and pop. Now the market is surrounded by tight and skinny jeans.
3. Havaianas sets the trend for the flip flops slippers in fashion for footwear

• From the consumer ever changing needs and wants, The task of the
market is to respond and compete with this dynamic changes in the
product and services market.
• Consumers evolved into “ Prosumers” , who tend to be very highly
sophisticated in their buying behavior. Internet become a part of their
daily consumer habit and make them more updated and upgraded in the
product technology they encounter in the environment.
• Everything is fast facing, clothing, food, furniture, lifestyle and
technology are somehow unstoppable in their changes in the market.

THE Micro environment Explained:
1. the company- pertains to their objectives and goals according
to their marketing plans
2. suppliers- it refers to the over- all value delivery system of
materials needed in their operation.
3. marketing intermediaries- act as in between company and its
consumer by promoting, selling and distribution of their
products.
4. customer- refers to the different types of consumer groups
5. competitor- it refers to companies providing greater customer
value and satisfaction in the market place.
6. public- are groups that has an actual interest on the company’s
achievements of its goals.

THE MACROENVIRONMENT COMPOSED OF:
1. Demographic factors- pertain to population
characteristics, size and density and location.
2. Economic- it pertains to customer expenditures
affecting their income.
3. Technological- it refers to inventions and innovations
from applied science and engineering research.
4. Natural- it pertains to any fortuitous event that is
uncontrollable to the market such as natural
calamities.
5. Political – it pertains to restrictions and policy
implemented by the government affecting the
business operations.

Social forces affecting marketing
environment
Social forces includes demographics,
population characteristics such as gen X and
Gen y, baby boomers, maturing households,
the entry of male metrosexuals and the beauty
seekers segment.
 Philippines is a coffee drinking population
while Neighboring country like china,
korea and Indonesia are more of a tea
drinkers.

Competitive forces includes: Pure
Monopoly, Monopolistic competition,
Oligopoly and Monopoly.
• Gasoline suppliers like Petron, shell,
Caltex were suspected on having an
increasing bargaining power as suppliers
affecting consumers or few suppliers
operating the market or Oligopoly
system.

Technological Forces involved inventions and
innovations from applied science and engineering
research like:
• Technology’s impact on customer value, Market
space availability, Electronic Commerce,
Internet and Commercial on line services.
• Today’s retail industry is surrounded by
increasing number of alternative products and
private label brands. It answers the problem on
tight budget of many households due to
economic difficulty.

Regulatory Forces are
restrictions and government
policy and laws applied on
business operations such as
BFAD, Consumer
protection, Optical Media
Board and Intellectual
Proprietary rights.

The importance of
Understanding
Consumer Behavior
CONSUMER DECISION MAKING
CHAPTER 6

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 Consumer buyer behavior refers to the
processes a consumer uses to make purchase
decisions, as well as to use and dispose of
purchased goods or services; also includes factors
that influence purchase decisions and product use.
 Consumer market refers to all of the personal
consumption of final consumers.
Model of Consumer Behavior

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Marketing stimuli consists of the 4
Ps
 Product
 Price
 Place
 Promotion
Other stimuli include:
 Economic forces
 Technological forces
 Political forces
 Cultural forces
Model of Consumer Behavior

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Cultural Factors
• Buyer’s culture
• Buyer’s subculture
• Buyer’s social class
Social Factors
 Reference groups
 Family
 Roles and status
Characteristics Affecting
Consumer Behavior

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Personal Factors
 Age and life-cycle stage
 Occupation
 Economic situation
 Lifestyle
 Personality and self-concept
Psychological Factors
 Motivation
 Perception
 Learning
 Beliefs and attitudes
Consumer Behavior

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Personal Factors
• Occupation affects the goods and services bought
by consumers.
• Economic situation includes trends in:
• Personal income
• Savings
• Interest rates
Consumer Behavior

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Personal Factors
• Lifestyle is a person’s pattern of living as
expressed in his or her psychographics.
• Measures a consumer’s AIOs (activities,
interests, and opinions) to capture information
about a person’s pattern of acting and interacting
in the environment.
Consumer Behavior

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Personal Factors
Primary motivations
• Ideals
• Achievement
• Self-expression
Consumer Behavior

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Personal Factors
Personality and Self-Concept
• Personality refers to the unique psychological
characteristics that lead to consistent and lasting
responses to the consumer’s environment.
Consumer Behavior

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Personal Factors
Personality and Self-Concept
Brand personality refers to the specific mix of human
traits that may be attributed to a particular brand:
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
Consumer Behavior

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Motivation
• A motive is a need that is sufficiently pressing to direct
the person to seek satisfaction.
• Motivation research refers to qualitative research
designed to probe consumers’ hidden, subconscious
motivations.
Consumer Behavior

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• Perception is the process by which people select,
organize, and interpret information to form a meaningful
picture of the world from three perceptual processes:
• Selective attention
• Selective distortion
• Selective retention
Consumer Behavior

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• Learning is the changes in an individual’s behavior
arising from experience and occurs through interplay of:
• Drives
• Stimuli
• Cues
• Responses
• Reinforcement
Consumer Behavior

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Beliefs and Attitudes
• Belief is a descriptive thought that a person has about
something based on:
• Knowledge
• Opinion
• Faith
Consumer Behavior

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Beliefs and Attitudes
Attitudes describe a person’s relatively consistent
evaluations, feelings, and tendencies toward an
object or idea.
Consumer Behavior

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Types of Buying Decision Behavior
• Complex buying behavior
• Dissonance-reducing buying behavior
• Habitual buying behavior
• Variety-seeking buying behavior

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Complex Buying Behavior
• Occurs when consumers are highly motivated in a
purchase and perceive significant differences among
brands.
• Purchasers are highly motivated when:
• Product is expensive
• Product is risky
• Product is purchased infrequently
• Product is highly self-expressive

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• Dissonance-reducing buying behavior occurs
when consumers are highly involved with an
expensive, infrequent, or risky purchase, but see
little difference among brands.
• Post-purchase dissonance occurs when the
consumer notices certain disadvantages of the
product purchased or hears favorable things about
a product not purchased.

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• Habitual buying behavior occurs when consumers
have low involvement and there is little significant
brand difference.
• Variety-seeking buying behavior occurs when
consumers have low involvement and there are
significant brand differences.

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The Buyer Decision Process
Five stages in the buyer decision process
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

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Need Recognition
• Need recognition occurs when the buyer
recognizes a problem or need triggered by:
• Internal stimuli
• External stimuli

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Information Search
Information search is the amount of information
needed in the buying process and depends on:
• The strength of the drive,
• The amount of information you start with,
• The ease of obtaining the information,
• The value placed on the additional information, and
• The satisfaction from searching.

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Evaluation of Alternatives
Evaluation of alternatives is how the consumer
processes information to arrive at brand
choices.

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Purchase Decision
• The purchase decision is the act by the
consumer to buy the most preferred brand.
• The purchase decision can be affected by:
• Attitudes of others
• Unexpected situational factors

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Post-Purchase Decision
• The post-purchase decision is the satisfaction
or dissatisfaction the consumer feels about the
purchase.
• Relationship between:
• Consumer’s expectations
• Product’s perceived performance

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The Buyer Decision Process for
New Products
Stages in the Adoption Process
• Awareness is when the consumer becomes
aware of the new product but lacks information.
• Interest is when the consumer seeks
information about the new product.

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The Buyer Decision Process for
New Products
Stages in the Adoption Process
• Evaluation is when the consumer considers
whether trying the new product makes sense.
• Trial is when the consumer tries the new
product to improve his or her estimate of value.
• Adoption is when the consumer decides to
make full and regular use of the product.

Learning objectives:
 Describe business marketing
 Describe the role of internet in business marketing
 The role of Relationship marketing and strategic Alliances
in business marketing.
 Identify the four major categories of business market
customers
 Describe different types of business goods and services.
 Describe the unique aspects of business buying behavior

BUSINESS MARKETING
 Is also called industrial marketing is the marketing of
goods and services to individuals and organizations for
purposes other than personal consumption.
 A product that is purchased for personal or family
consumption or as a gift is a consumer good.
 If its intended for business such as PC units in the office
that is a business product.
 In short any purchased of product from a supplier
company intended to use for business by another company
it is considered “BUSINESS MARKETING”.

Business marketing on the
Internet
(business to business/B2B) B2B/e- commerce- the use of internet to facilitate activities
between organizations.
 Today commercial websites really exist, look more like
consumer sites with social media and building community
applications.
 You can request product, choose and then later place an order
by mail or by call if all specifications had been done by the
company.
 The case of You Tube has a “ how to guide for B to B
marketers about effectively using on line videos to
promote other brands”.

Disintermediation: trends in
B2B internet marketing
 The elimination of intermediaries such as wholesaler or
distributor from a marketing channel.
The case of Dell Computers and WALTER mart
 Dell sell directly to business buyers and consumers
through the use of Twitter they were able to sell their
overstock inventory.
 Large retailers like waltermart use a
disintermediation strategy to help reduce costs and
prices.

RELATIONSHIPS MARKETING
AND STRATEGIC ALLIANCES
 Relationships marketing is a strategy that entails seeking and
establishing on going partnerships with customers.
-They act as business suppliers which uses platforms like Facebook,
twitter, and other social networking sites to advertise themselves as well as
promoting, informing, persuading and reminding business clients about what
they can offer.
 RM also leads to a long term relationships with customers and
a way to build competitive advantage that is hard for
competitors to copy.
The case of FEDEX Powership program includes series of
automated shopping, tracking ,and invoicing systems that
save customer time and money while maintaining their loyalty
to FEDEX.

Strategic Alliances/strategic
Partnership
 Is a cooperative agreement between business firms which can
take in form of licensing or distribution agreements, joint
ventures. It can strengthen operations and better compete.
 Relationship commitment- a firm’s belief that an ongoing
relationship with another firm is so important that the
relationship warrants maximum efforts at maintaining it
indefinitely.
 They maybe between manufacturers
 manufacturers and customers
 Manufacturers and suppliers
 Manufacturers and channel intermediaries

Examples of Strategic Alliances of
business companies
 Rustans Group of companies and Starbucks and Kenny Rogers
 Canadian brand like Aldo, ODM, Charles and Keith with Suyen
corporations
 ABSCBN with Endemol
 CREDIT cards company and Retailing stores
Reintermediation stratgy- is the reintroduction of an
intermediary between producers and users.
Trust- the condition that exist when one party has confidence
in an exchange partners reliability and integrity.

Major Categories of Business
Customers (Business markets)
 Producers – are often called original equipment
manufacturers or OEMs.
 Resellers- includes wholesaler and retailing
business who buys finish good and resell to final
consumers.
 Government markets- government agencies who
purchased goods for their operation and its
constituents.
 Institutions such as schools, hospitals,
churches,civic clubs etc.

Business market VS Consumer
market can be compare in terms of:
 Demand- derived demand for CM and inelastic demand for BM.
 Purchase Volume- BM has bigger and larger volume of quantities purchase
than CM.
 Location of Buyers- BM are more geographically concentrated than CM.
 Distribution structure- BM has a multi- channel or more points to pass than
CM.
 Nature of Buying- CM directly approach sellers while BM uses purchasing
agents or country manager to deal business.
 Type of negotiations
 Use of reciprocity
 Use of leasing
 Methods of Promotions

Types of business products
 Raw materials- unprocessed extractive or
agricultural products such as lumber, wheat,
vegetables, leather materials etc.
 Accessory equipment/supporting goods-
generally less expensive and shorter lived than
major equipment.
 Major equipment such as expensive machines,
generators and mainframe computers

Business buying behavior are participated by the ff:
 Buying centers such as:
 Initiator
 Influencers
 Gatekeepers
 Deciders
 Purchaser
 Users
Evaluative Criteria
 Quality
 Service Buying situation includes:
 New Buy
 Modified Rebuy
 Straight Rebuy

Quiz 1 FINALS
Consumer behavior and consumer market

IDENTIFICATION
1. It pertains to the actions that a person takes in or response in
buying a product.
2. This is the stage when consumer is trigger to finally buy the
product defending on when and where to buy it.
3. It refers to the psychological factor that gives an urged to a
person to reply on a particular stimuli.
4. His is the most significant stage of the consumer- buying
decision process.
5. Type of buying wherein the consumer is hanging between so
many available options of product with significant
differences with one another.

6. Consumer uses different criteria or parameter to measure
his decisions in choosing the right product from the
available brands.
7. When customer gets interested he start to gather data and
information about the product he is intending to buy.
8. These are product that said to be 60% unknown or just
existed within 6 months.
9. It refers to the beautiful picture that a customer have in
mind about a particular product that he encounter for the
first time.
10. These are customers experiences that made it a pattern in
his consumer buying decision.

11. Whether to buy or not to buy happens on what stage of
the consumer buying process?
12. It pertains to a particular status of consumer in the
society that determines his buying ability.
13. These are beliefs that a group of consumer acquired form
another group of people like Filipinos now are into eating
noodles which they learned from the chinese.
14. It pertains to consumer distinct characteristics or image
projected in the public as perceived by others.
15. A state when consumer determine the need to buy a
product from a particular internal or external stimuli.

1. Oprah winfrey is labeled as the “world’s Queen of
Talk”.personality
2. “ feng Sui” is normally adopted by many businessmen to
identify the profit potential of a business proposal. culture
3. It is where we leraned the basic socialization and
interaction with one another.family
4. Eating spicy foods of Filipinos were actually acquired
from the indian recipes.sub culture
5. How to eat OREO in the ads shows influential behavior to
many kids in the family.learning

6. Lebron James visited the country and he was now identified and
followed by most men in his style of playing I basketball.personality
7. When SM stages sales promotion, people take the advantage of
buying in bulk to save more.motivation
8. Luxury cars like BMW, Volvo and Ferrari are meant for people
with explicit lifestyle or to people in the high end level of
living.social class
9. When Rice in the box was launch, Some people gets the
impressions of eating inconveniently their meal anywhere
anytime.perception

10. Some company do not schedule the payday on Monday thinking
that would mean an everyday outflow of their cash or more
expenses.beliefs
11. fraternities, academic organizations or even religious groups
influences individual behavior and attitude and adopt what is
existing in the group.reference groups
12. Colgate and safeguard are two brands that is credible of having
consumers who supports and repeatedly used their product for the
longest time.brand loyalty
13. Some students are really good defending on the kind of
professors who handles them in every subject. So students are
Teacher- factor.motivation

Segmenting and
Targeting Markets
Chapter 8

Learning objectives:
 To identify the characteristics of market and market segments
 The significance of market segmentation process
 To identify the criteria of successful market segmentation
 The bases of segmenting a consumer markets
 The steps involved in segmenting markets
 The How and Why company do positioning strategies and how
product differentiation plays a role.

Background of the Topics
 Market can be people who have the desire, willingness and
ability to buy a product.
 It can also be a company with needs and wants to buy a specific
product for their operation.
 Market segment- are sub- group of people with similar product
preference.
 Market segments can be a possible target market for a firm
 This are subdivided market from a general market.

Why segments?
 Product can’t be all things to all consumers or it is not
possible for a particular product to be appealing to all
kinds of market.
 Consumers have unique needs and desires or segments
are actually heterogenous in nature.
 To identify the most feasible users that can give the most
sales and profit to your product.

SEGMENTING- breaking down the
general market into manageable
segments.
TARGETING- -choosing a specific
segments as your intended target
market
POSITIONING- aligning the marketing
mix to yield distinctive appeal for target
segments.
STP PROCESS

Market
segmentation defines:
 It pertains to the process of subdividing the
market into a distinct subsets of consumers,
wherein every subset is called market segment
or group of people sharing similar products or
brands.
 This market segments can be a possible target
market or the specific group of potential
customers meant for your product.

Figure 1-3: Airlines actual segmentation of Travellers by differented services rendered
ECONOMY CLASS MABUHAY CLASS/ BUSINESS CLASS
Economy Class Passengers get regular service such as food and drinks,
newspapers and ordinary seat.
Mabuhay Class
Tiger and Zest
Airline
Are first class passengers go on carpeted check in counter, stay in
an exclusive waiting lounge and get first priority to board and to
deplane while enjoying immediate attention from flight attendants
like having a welcome drinks, face towels, international
magazines, better choices of food and drinks plus bigger seats with
wider in between spaces for better comfort.
Considered as low cost regional carrier offers a low budget airfare
with a simple seats and refereshments and convenient travel with
minimum services offered.
As pointed out in figure1-4: airline company had a broad segments of travelers and its
impossible to satisfy them all simultaneously in one sitting. So tyhey segments the available
seats and servises according to their characteristics and the value of what they pay for the offer.

TypeofSoaps SegmentationProfileoftheTargetmarket
OlayBeautyBar Targetstothefragrancesegmentofwomenintheirprime
yearswhowantstoachieveyoungerlookingoryouthful
skinneed.
Safeguardgermicidalsoap Targetthefamilyblanketsegmentwhowantssuperior
skingermprotectionforthewholefamily.
Zestforyoungadults Formenwithactivelifestyleandonthegoyoungadults
Ivorymildmoisturizingsoap Targetsthesensitiveskinsegmentsofthetoiletsoapusers
category

Types of segmentation:
1. demographic segmentation- divide the market by age,
gender, income, family size, profession,etc.
2. Geographic segmentation- subdivide the market by
locations such as by city, region, nation etc.
3. Psychographic segmentation- subdivide the maket on
their attitudes that relates to social issues,personal
interests and specific product attributes.
4. Behavioristic segmentation-is subdivided in terms of
consumer behavior

Figure 1-5: demographic segmentation variables
 Age and life cycle, gender , income class, profession,
family size, religion, civil status, class status, nationality.
 Demographic segmentation examples:
 Night bars like encore and white avenue caters to those
who are at their LDA or legal drinking age which is 18
since they offer variety of liquors.( segmented by age and
lifestyle )

• Legend hotel focus more on the family group segments while
victoria court focus more on couple like husband and wife,
lovers.( by civil status, family size,)
• Manila Diamond Hotel and Pan pacific Hotel caters to a high
income group and profesdsionals such as CEO and president
of companies. ( by income)
• CamSur and Boracay concentrates more on nationality such
as Tourism in Asia and aMERICA.( by nationality and
location)
• Eurotel targets the foreign national who looks for class
accomodation but of a more practical budget.

Psychographic Segmentation variabes
 It divides the customers into different groups based
on social class, lifestyle and personality
characteristics. It is more concered of asking
customer on “ what you do” instead of who you are
and “ how you spend your money” instead of how
you earn?
 They are more concerns on social issues such as:
religion, politics, job , human rights etc., some of
their personal interest is on family, food, shopping,
friends, entertainment etc.

• The “ Beauty seekers segment” are more concern
with how they look, conscious about their social life,
they manage to be glamour and beautiful in spite of
their age even at 50’s and 60’s
.
• The entry of the “ Male Merosexuals” a goup of
segments highly influence by male french
culture.these are glamour , masculine, straight guys
of the 21st century who wear more cosmetics than
women, fashionable, vain and trendy.

Behavioral segmentation
The customers are divides into groups based on their knowledge, attitude and
use or response to a product or the method of understanding behavior tendency
of customers in the following variables: purchase frequency, user status, loyalty
status and readiness.
Loyal customer most likely not entice with a price cut of competitors
promotion.
Customers will go bar hopping depending on the location like quezon city can
be attractive for customers if they are looking for a comedy bars and restaurant

TARGETING PROCESS INCLUDES:
MARKET TARGETING
Market Targeting – the process of evaluating available market
segments in terms of:
• Segment size and growth
• Segments structural attractiveness
• Company objectives and resources

• Kabayan Hotel focuses on OFW’s as their current target market
which give them good income
• Legend hotel targeted the family market while sogo focus lovers.
• Eurotel is a sister company of sogo aiming to capture foreign and
local transient who wish to have long vacation period in the country
who wants to have a european experience in terms of hotel
accomodation.
• Robinson land’s gohotels.ph enjoy sales when they decide to
serving the regular and frequent travelers segment such as
businessmen, auditors and sales executives

MARKET POSITIONING AND
DIFFERENTIATION
Market Positioning process:
-The way the product is defined by consumers on important
attributes.
• The place occupied by the product in the minds of
consumers relative to competitors product.
• It also refers to the USP/ or Unique Selling Propositions of
every brand to its target market differentiating your
company as a whole to your surrounding competition in
your respective industry.

ExaMine the figure illustartion below:
One of the popular and top drive in
motel with various theme rooms for lovers and couple. As the logo implied a
private and intimate stay with exciting theme rooms such as japanese, jungle,
native, sporty, garden type etc.

FIGURE1-8:HOTELPositioningintermsofimagetheyprojecttothemarket
anddistinctoffers
Victoriacourt Positionas“driveinmotel”
Sogohotel Positionmoreaslowcost“walkin
motel”
Legendhotel Positionas“wholesomefamilyhotel
PanPacificHotel Firstclassinternationalhotel

Positioning strategies and product differentiation
• Singapore air lines has the famous singapore girl as
theircompetitive advantage for being charming, friendly, caring
and energetic well mannered flight attendant who pays attention
to all passengers demand in having a comfortable flights to their
destination. Their major qualifications are intelligent, physical
appearance and young.
• Go Hotels by Robinsons Corporation starts their operartion by
accepting on line booking for customers.
• Cathay Pacific is one of the very first airlines who transacts on
line booking and on board checking for customers.

Thinking Exercises:
Identify the closest segmentation variables of the following brand
of products: example: PH care answer: Age and
gender
1. Night bars that offers beers and hard imported liquors.
2. Resorts world a high end shopping center.
3. Yakimix and Vikings eat all u can restaurant in MOA and Malate
area.
4. Second hand cars such as toyota and Honda.
5. Sogo hotel, wise and nice hotel on busy streets of manila.

6. Hongkong express, Tiger airways and Zest airlines a low
popular budget airlines in the country.
7. Credit card companies like Visa and Master Card honored on
luxury hotels
8. Burger Machine and scott burger offers buy one take one
promo.
9. Discount stores like 999 and 168 mall in Divisoria.
10. Hagen daz, dairy ice cream and magnum.

Assignment no:001 market
segmentation
Answer exercises on page 87to
page 88.
To be submitted next meeting.

Case study format
In solving Marketing cases

I. Background of the case
Brief highlight of the brand
Market situation in terms of
competition
Brand diagnosis

II. Time Frame:
 The year when case happens ( use current
year)
 Revised the case content if theres any
changes about the brand or the company
 How is the current year affects the brand in
its respective industry
 How is the industry situation on the current year.

III: identifying the
problem
The primary marketing problem
encountered in the case.
Statement could be affirmative or
question type of statement.
It should be stated clearly and
specifically affecting the whole
company or the brand situation.

IV. Statement of
Objective
 It should be “ SMART” statement, specific,
measurable, attainable, realistic and within the time
bound.
 To be able to increased sales by 15% by tapping new
group of consumers such as teens and kids within
the end of the year.
 To be the leading brand in the papaya soap industry
by trying to become a significant market challenger
in the competition.
 To generate 10% increase in profit from last year 5%
net after tax at the end of the year.

V. Areas of
Consideration
The factors why such problem
arises.
SWOT analysis of the
brand/company against the
competition
Competitors analysis

VI.Alternative courses of
Action
Possible solution to the problem
Each alternative should be distinct with
one another
Site the advantages and disadvantages
for each alternatives.
Each alternative is subject for
recommendation base on the choice of
the group.

VII. Conclusion and
Recommendation:
 Conclude your choice or combination of
alternatives for your recommending solutions
to solve the case problem.
 Site the major reasons for the said choice of
recommendations.

VIII. Marketing Action
Plan:
 Explain in full details your chosen solutions
to the problem following the format below:
 Time context: when to execute the solution
 Description of the strategy
 Person responsible to implement the solution
 Desired goal for the solution

Quiz
MID TERM PERIOD
TOPIC: MARKET SEGMENTATION, MARKET TARGETING, MARKET POSITIONING

IDENTIFICATION
1. It subdivides the market into a distinct
subsets of consumer wherein every
subsets can be target market.
2. It segments the market by age, gender,
income, family size and social status.
3. It segments the market by location, cities,
urban, rural, sub urban or even by nation.
4. It evaluates the chosen target market in
terms of size and growth potential.

5. It pertains to the place occupies by the
brand into the minds of consumer.
6. Target Marketing strategy follows the
STP process. What are STP stands for?
7. Infant powdered milk are segmented by
what variables?
8. Starex van, L- 300 van and Adventure
are brand of cars which has bigger
spaces segmented by what variables?

9. Avida offers a more affordable rent to
own condo units for singles and
bachelor individual or segmented by
what variable?
10.It refers to subdivided market with
homogenous needs and wants for a
particular product.

True or false
1. Product with halal seal are said to be
product segmented by location since
christians don’t normally consume with
such restrictions.
2. Positioning includes USP and
differentiation of one brand against
competition.
3. “ the refreshing way to burn fats ” is a
positioning of fitrum with L- carnetene.
4. Jollibee are more of a family market,
while Burger king goes for yuppies.

5. Positioning can be communicated
through its basic slogan or tagline.
6. Eurotel are segmented by age and gender
as well as size of the consumer income.
7. Luxury cars such as Volvo and Ferrari are
segmented more to male metrosexuals
rather than income and lifestyle.
8. San Mig Light are segmented more for
male and some female consumers than
vice versa.

9. Family life cycle are variables similar to
identifying the market in terms of age
bracket.
10.Target market are selected in the
targeting process rather than in the
segmentation.

Identify who’s positioning are the
following:
1. 100% real juice with no preservatives
added.
2. One stop store under one roof.
3. They are open on weekend on mall
branch and up to 6 pm on weekdays to
served more customers.
4. So pure oil in flakes with omega 3.
5. Energy boosting chocolate drink which
contain malt.
6. Number 1 casual lifestyle clothing

7. Position as having maximum quality of
laundry at a minimal cost. “Sing bango
pero di sing mahal.”
8. A classic jeans position as “ never goes
out of style”
9. Analgesic brand positioned as fast relief
on muscle pain.
10. An energy drink position as isotonic
drink that replaces lost body fluids.

QUIZ 2
The Image of Toyota
Since time immemorial, Toyota was already a household brand in
the “ peoples car market” have a good rates of loyal customers and good car
quality perceptions not unitl Honda launch their car brands in the market carrying
a new influenced in car designs, they were able to drive the market in a great
percentage of brand shifters. Now Honda has been noted as the number one car
dealer in the Philippines replacing the the market leader. Toyota learned from the
customer research that image is one of the major reason why customers shifted to
Honda. Because most toyota owners after they purchased the car, later on convert
it into a taxi cab. So most taxi that we see around are Toyota. In short, Toyota had a
poor image in the market which impact to their sales especially with the entry of
new competitors.
Few years back, Toyota launch Camry and Altis high end edition car to
revive its prestige in the market, but still toyota is just one of the follower of
Honda. AS of today looking at the future direction of Toyota,
1. what would you suggest as a strategic planning to be able to make Toyota a
serious challenger and be a leader in the car market?

2. What would you proposed a s a future strategy for Toyota in the
current competition?
3. How would you maintain and increase customer loyalty for Toyota
cars?
4. What positioning will you do to make toyota a choice of quality by car
buyers?

Decision Support
Systems and Marketing
Research
Chapter 9

OVERVIEW OF Marketing RESEARCH
 Measuring message effectiveness is a difficult and expensive task.
 The quality and value gained in advertising research outweights the
cost.
 The advertisers were able to know what effective message to proposed
to the target audience that can possibly attain its marketing objectives.
 Advertising research enables management to evaluate advertising’s
contribution in achieving reasonable ROI.
 Recall and memory are indicators to measures print advertising
effectiveness.
“message research”- is undertaken to test effectiveness of

Marketing Information
 Everyday information about developments in the
marketing environment that managers use to prepare and
adjust marketing plans.
DECISION SUPPORT SYSTEM (DSS)
pertains to an interactive flexible, computerized
information system that enables managers to attain and
manipulte information as they are making decisions.

Doer VS. User
 Doer are normally research agencies paid by the company
(User) to conduct data gathering for their more intelligent
and strategic marketing decisions.
 Accurate and timely information is the lifeblood of
marketing decision making.
 It can help the company to maximize sales and efficiently
use limited resources.
 To prepare and adjust marketing plans based from
gathered marketing information.

Marketing Research defined:
 It refers to the process of planning, collecting and
analyzing data relevant to a marketing decision.
3 Roles of MR are:
1. descriptive- includes gathering and presenting
factual statements. (e.g. sales history)
2. predictive- to address “ what if” questions.
3. diagnostic- to predict results of a planned
marketing decisions.

Steps in Marketing Research
Project:
1. Identify the problem
2. Plan the research design and gather secondary data
3. Specify sampling procedures.
4. Collect primary data
5. Analyze the data
6. Prepare and present the report
7. Follow up

Marketing RESEARCH CAN
BE MEASURED BY THE
FOLLOWING:
 RECOGNITION AND RECALL
 PHYSIOLOGICAL AROUSAL
 PERSUASIONS
 SALES RESPONSE
THE CASE OF “ RICE MATE” A rice enhancer
ads campaign “ ang murang bigas ay magiging
mamahaling kanin” rice
flavoring mix.

Research techniques (CRVP)
copy research validity project
 UAI Advertising Research- pertains to consumer’s usage of the
product, awareness of the brand and image perception about
the brand.
 This pertains to the technique in Analyzing the market and
competitive Environment and Evaluating your product’s
marketing performance.
 It gathers two sets of data “ core” and “ classification” data
which includes awareness, product usage, purchase data,
attitude data and product and image data.
 It diagnosed for uncovering marketing problem.

Comments on the following cases
of advertising brand research
taken from DR. Ned roberto from
his book “ user –friendly
Marketing research on how to use
MR in advertising to make
profitable marketing decisions.

The case of “Modess converts”
of non- user segment in the early
70’s
 The data quantifies the 35% of the menstruating female population.
 The marketing challenge is to find out how to convert the “ non-
napkin using segment” by planning to launch an ads campaign for
Modess.
 Research data finds out that the 35% non- users are a dedicated group
of users of “pasador” or indigenous home made sanitary protection or
the so called discarded diaper cloth, undershirt and other used materials.
 These are the said to be primitive napkin substitutes.
 Female were ask why they do not want to use a more and hygenic
commercial sanitary pads.

Positive results of Advertising research: the case of J&J “ best
for baby best for you”
 The “new user” strategy of Johnsons baby powder.
 Research findings is a little over 30% of adults used johnson baby
powder not only for babies but for themselves.
 The challenge is why only 30% why not 60% or better yet, why not all
adults?
 This led the campaign for Johnson Baby powder whose ads copy is still
remembered today: “ If its good enough for baby, its good enough for
you”
 They hit over 80% unit increase after the advertising launch on media.
 “More usage” strategy pertains on powdering baby’s body area that is
very much less than of an adult.

The case of Mouthwash market( Listerine’s
more usage strategy)
 43% of non- users of mouthwash considered” toothpaste” as also a mouthwash, so they
believed that toothpaste is enough.
 32% feels that Mouthwash is only for people with bad breath and I don’t
have any, “ its not necessary”.
 31% are among users of mouthwash
 86% dilute mouthwash with water to the extent of as much as 2/3 to ¾
of the solution
The challenge is to educate users in the advantages of using the product
undiluted and if possible convincingly show to the non- users in the ads that
this is false.
What is true is that they need to complement toothpaste everytime they
brush their teeth with mouthwash to neutralize bad breath- causing
bacteria.

Group research presentation
 Conduct a field consumer research on shampoo haircare study most preferred by
people in your neighborhood.
Awareness data:
1. When thinking about shampoo, what brand(s) come to your mind? What else. (
enumerate schools you want to use for this research)
2. Where did you learn about this brand? where else?( enumerate sources)
3. Do you rely and persuaded with brand that are commercially advertised?
4. What brand of shampoo have you heard or read in the past 6 months?
5. What is your insight about this brand? (major feature and characteristics)

6. What type of shampoo you are using now?
8. Rate the brand of shampoo: Which of the following attributes of the
shampoo are you more concern when choosing for your hair care?
(enumerate your chosen features and attributes that you feel will be art
of their decision making)
9. What is your total salary/budget bracket to spend for your haircare?
!0. What is your perception with the brand that you may possibly
choose for your hair?

PRODUCT
CONCEPT:
“ the starting point
in creating a
Marketing Mix”
Chapter 10

LEARNING OBJECTIVES
WILL BE ON THE
FOLLOWING:
 What is a product?
 Classification of consumer products
 What is product item, product line and product mix
 Describe marketing uses of branding, packaging
and labeling.
 Global issues on branding and packaging.
 The importance of product warranties.

PRODUCT
 Product – is everything both favorable and unfavorable
that a person receives in an exchange.
 Anything that is offered to a market for attention,
acquisition use or consumption that may satisfy a want or a
need. It includes physical objects, services, places , organization
and ideas.

UNILEVER acquired lADY'S CHOICE joint venture and lcensed to
produce selecta ice cream under the Company umbrella

The case of Jollibee foods
Corporation:
The case Fresh and Famous ( new name of Jollibee Food
corporation) buy out chowking, Greenwich under their
Management

PRODUCT
OFFERING
 Pertains to the heart of an organization’s marketing
program, is usually the starting point in creating a
marketing mix.
 Marketing manager has to come up with product first to determine
the price, design, a promotion strategy and also its distribution
channel.

Major Types of Product
1. Durable product- items that are meant for longer uses and usage and
it posses quality such as furnitures and fixtures, electronics, cars etc.
2. Non- durable product- items that are meant for immediate consumption and
disposable in nature such as tissues and napkins,candies, sachets of products

VARIATIONS OF
PRODUCT CAN BE:
 1.Product line- are groups of closely related product,
variety of assortments available for consumption
such as the variety offers by Jollibee as you examined
their menu board, you can obviously see that every
product are related with one another.
 2.Product mix- are the total number of product lines
offered by the company or breath and depth of their
total line of items offer for sale.the title on top of the
jollibee menu board are the actual product mix such
burger, meal, side items etc.

Burger Meals Side
items
Drinks desserts Value
meals
Combo
meals
Cheese
burger
Chicken
joy
French
fries
Hot
beverage
Sundae 39niners Chicken
combo
Yum
burger
Jolly
Spagetti
meal
Salad Softdrinks Applepie Burger
steak
combo
Amazing
aloha
Palabok
fiesta
Atchara Fruitjuices
Champ Burger
steak

.Consumer product- these are items purchased by
consumer for their own personal consumption to satisfy
their needs and wants such as groceries, household
items, personal care products and food.

2.Industrial product –Sometimes
called manufacturing product, it
may be in the form of raw
materials that are meant to
produced another product, or
these items after manufacturing
process becomes a final part of
the product. Some of the popular
industrial products are fabrics,
paper, oil, leather materials,
woods, steel etc.

Classification of consumer
products:
1. convenience
2. shopping
3. specialty
4. unsought

Convenience products
 1.Convenience products- items that are frequently
bought by consumer with minimal planning and
effort such as those available in 7-11 and nearby store
( sari- sari store) along residencial community.

Shopping products
 2.Shopping products- items that
requires more planning and effort,
less frequent in buying and usually
bought on the basis of quality, style,
design, price and features that are
available in a product as actually
demanded by shoppers such as
fashionable bags, shoes, accessories,
watches and clothing apparrels
normally found on shopping center
and malls

Specialty products
Specialty product- these are
items that consumers requires
a special effort to search out
and buy. Sometimes hard to
find or minimal store
availability such as antique
collections, fishing
equiptments, vintage cars etc.

Unsought products
Unsought products- are items that
are limited in nature, consumer has
lesser awareness for the existence of
these product. Sometimes you know it
or you dont know but you dont
inially want it such as burial
insurance, palm computers., for rent
coffin etc.

The Concept of
BRANDING
AND
PACKAGING
“ in the midst of so many mee tooed products and
great immitations, and the entry of class A
product, we tell ourselves at the end of the day,
Theres nothing like the original! “ it is the one
wearing l!”
“ not all that look expensive are impressive”

BRANDING DEFINED:
It refers to a term, name, symbols, design, logo, graphics or
combination of these design to distinguish the product from its
competitors.
A brand can be of the following:
1. A proprietary name like Microsoft , Jollibee and Johnson and
johnson
2. A group of numbers for chinese entrepreneurs such as 168 mall
and 501 jeans from Levis
3. A combination of letters or acronyms or abreviations such as
TRINOMA mall/Trianglr North of Manila, TGIF restaurant
,DKNY and YSL designers product and MOA for mall of Asia
4. A nickname like MCDO for McDonalds food chain

5. A combination of letters and numbers such as G2000, C2
RTD ice tea, C5 shortcut way
6. It can be a familiar sound like selecta rolling store,nokia
ringtone
7. A prominent shape such triangle for Toblerone and bell
shape for kisses chocolates and bone shape for safeguard and
the classic shape of coca cola bottle signify sexy body.
8. It can be a color design, logo like crocodile for lacoste and
check sign for Nike

packaging
 It refers to any container
surrounding the product
which carries benefits to
consumers such as
informational, protection of
the product and perceptual
benefits or the consumers
perception on what they see
on packaging.

LABELING
 Persuasive labeling- focuses on promotional theme
or logo, and consumer information is secondary
such as standard promotional claim:
 “ New”, “improved” and “ super”
 Discounts promo “ save 10 pesos off” etc.
Informational Claim such as “ low fat, light,
reduced cholesterols, less salt, no sugar, low carb
and fresh.

GLOBAL ISSUES IN
BRANDING AND
PACKAGING
 One brand name everywhere
 Adaptations and modifications
 Different brand names in different markets such as:
 e.g. sprite is kin in korea,
 philip is benson hedges,
 rejoice is pert plus

PRODUCT
WARRANTIES
 PRODUCT WARRANTY- protects the
buyer and gives essential information
about the product.
 An express warranty is a written
guarantee such as “ 100% pure cotton”
 An implied warranty can be unwritten
guarantee that produuct is good and fit
for its purpose when it was sold.

Identify the brands in the following slogans and descriptions.
1.“ the taste of the New Generation”
2. ” Lets make it easy”
3. “ we live to deliver”
4. Company using logo of the frog
5. “ Life is Good” mark logo
6. uses combination of colors red white and blue
7. star in a circle
8. “ Live More”
9.“Finger lickin goods and So Good”
10. uses three stripes as a striking mark

TOPIC APPLICATION:
1. Analyze the case of papaya soap on page 96. question
number 1 : group 1, number 2 group 2. question no. 3
for group 3 Explain very well each answer.
2. Answer thinking exercises:
Group 4: question number 1, justify your choice
Group 5: question number 2,

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