ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

MODULE 1 Pages
Marketing Principles and Strategies
The four Marketing Principles --------------------------------------------- 2-3
Goals of Marketing ----------------------------------------------------------- 3
Traditional and Contemporary Approaches to Marketing --------------- 4-5
Assessment Activities ------------------------------------------------------------------ 6-7

MODULE 2
Customer Relationship: Customer Service
Customer Service and customer-driven marketing ---------------------- 8-9
Customer relationship management --------------------------------------- 10
Customer lifetime value ------------------------------------------------------ 11
Successful customer relationship strategies ------------------------------ 11
Assessment Activities ------------------------------------------------------------------ 12

MODULE 3
Market Opportunity and Consumer Analysis
Strategic marketing vs. Tactical marketing ------------------------------- 13-15
Marketing Environment ------------------------------------------------------ 15-16
Marketing research ----------------------------------------------------------- 16-17
Consumer and organizational markets ------------------------------------ 18-19
Segmentation, targeting and positioning --------------------------------- 20-22
Assessment Activities ------------------------------------------------------------------ 23-24

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Marketing is a form of communicating or promoting the value of a product, service or brand

to the consumers. The “by word of mouth” marketing may be the simplest, oldest, and most
natural way of marketing a service or a product for profit and nonprofit purposes.

The American Marketing Association defines marketing as "the activity, set of institutions,
and have processes value for customers, for creating, clients, communicating, partners, and
delivering, society at large.”
Alternately, the Philippine Marketing Association defines marketing as a "science and a
profession guided principally by the universal principles of ethics, corporate and corporate
social responsibility."

According to business.org:
“The 4P Matrix dates back to the 1960s, and is arguably the most frequently used marketing
matrix because it’s simple and it works.”
“The 4P Matrix can help you define your marketing options, whether you’re planning to
launch a new product or you’re evaluating an existing one.”

The (4) four Marketing Principles

Product
ORGANIZATIONS EARN REVENUES and generate profits by offering products and In this category, we focus on the benefits and features of the product. We should also
services. These are offered to both individual customers and organizations. The profits consider product interaction. Below is a list of some considerations:
generated pay for the costs and expenses of their business. These include factory and office
rentals, salaries of employees, and utilities, among others. Profits are generated when • Who wants the product and why? What needs does it satisfy? Does it solve
products offered by the organization are purchased and paid by the customer and money is problems for the consumer, or help them overcome challenges?
the typical mode of payment. • Which of the product’s features help it meet the needs of the consumer?
• Does the product have a competitive advantage? If so, what is it? A competitive
Offering products and services to customers and ensuring that these are purchased are advantage is something the product has that makes it stand out from competitors’
among the major functions of marketing. Without marketing, most businesses may cease to goods. It could be the price, quality, a guarantee, or after-sales service.
exist and may not be able to sustain their operations. Profits is one of the major driving • Ask representative samples of consumers to try out the product. Take careful note
forces and the main motivation of business operation. For this reason, marketing is often of their feedback regarding its pros and cons. Also, ask them whether the product
referred to as the “lifeblood” of every business. lacks features. Ask them how it compares to competing products.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Place
Where the manufacturer makes the product and where people buy it can significantly You need to determine how you will get your marketing message to your target market, and
influence its price. Location can also affect customer service and how quickly you can when you will begin promoting it. If the product is seasonal, knowing when and how to
respond to orders and customer requests. promote it is crucial.
In this category, you should consider the following factors:
According to The Marketing Mix:
• Where is the best place to sell it? Where are consumers or potential purchasers “Promotion is a very important component of marketing as it can boost brand recognition
going to look for it? and sales. Promotion is comprised of various elements like the sales organization, public
• How are you going to get the product to where the consumers are? relations, advertising, and sales promotion.”
• Is this a B2B or B2C product? B2B means business-to-business, while B2C
means business-to-customer. In other words, are you going to sell to businesses or
directly to consumers? With some products, the government is the main customer.
The government might even be the only customer. A company that sells mainly to
the government is a B2G (business-to-government) business. Defense contractors
are usually B2G businesses.

Price
The price of your product can determine many things, including your profit margin and
investments for future growth. Price also determines what kind of discounts or special deals
you can offer.

When setting the price, you must make sure that the consumer feels that the purchase is Goals of Marketing
worth it. In other words, he or she must perceive it as a good and worthwhile deal.
The goals of marketing can be summarized as follows:
1. Understand the market and its consumers, and satisfy their changing needs and wants
As far as the consumer is concerned, price is not everything. Quality, for example, and after-
2. Introduce and innovate products and services that improve human condition and the
sales service also matter. However, price is an important consideration.
quality of life
3. Design and implement effective customer-driven marketing strategies
Your product’s price must be competitive. If there are rivals in the marketplace, you need to
4. Develop marketing programs that deliver superior value to consumers
know as much as you can about their pricing strategies.
5. Build and maintain mutually beneficial and profitable customer relationships
6. Capture customer value to create profits
Promotion 7. Promote value transactions with full regard to society’s well being
If you want people to buy your product, you must make sure they know about it. Among the
four marketing principles, promotion is one that many people do not take seriously enough.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

production costs resulting in lower prices. However, this concept is relevant only if
customer tastes and preferences are stable and product demand is high.
2. The Product Concept
The product concept assumes that customers will always prefer and patronize
products of high quality. Resources are focused on product improvement and
innovation. Product attributes and features are continuously enhanced. While this
may be important, too much preoccupation on product quality may neglect the
customers' changing needs.
3. The Selling Concept
The selling concept emphasizes aggressive selling and promotional efforts. It
assumes that customers are generally timid and must be persuaded into buying.
The objective is to sell what is manufactured rather than manufacture what the
market wants.

Traditional Approaches to Marketing

Evident up to the late 1960s, traditional approaches in marketing focused on production
methods, product quality, and effective selling method as profit in marketing.
1. The Production Concept
The production concept assumes that customers prefer products that are
Contemporary Approaches to Marketing
inexpensive, affordable, and widely available. Efforts are concentrated in expanding
In contrast, contemporary marketing approaches are centered on the customer,
distribution, and improving production efficiency. The objective is to lower
relationships, and the well-being of society.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

1. The Marketing Concept considers the needs of both the customer and the product REFERENCES:
offered. The objective is to provide a solution to the customer's actual or perceived
problem. The key is to be more effective in the creation, communication, and
delivery of this customers. Principles of Marketing. Pages1-14 Authors, Real C. So, Oscar O. Torres. Publisher, Vibal, 2016

2. The Relationship Marketing Concept believes that all marketing activities are for the https://marketbusinessnews.com/financial-glossary/marketingprinciples/
purpose of establishing, maintaining, and strengthening meaningful long-term
https://www.smartsheet.com/strategic-marketing-processes-and-planning
relationships with customers. Extensive customer databases are created,
maintained, and updated. Customer profiles, purchase habits, and preferences are
tracked and monitored. This is to ensure that customers' needs are fulfilled and the
relationship with them is maintained.
3. The Societal Marketing Concept is similar to the marketing concept. However,
beyond providing solutions to customers, the societal marketing concept goes
further to include considerations that protect the customers' well-being and
interests, as well as the interests of the environment and society.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Name: _____________________________________________________________

Year & Section: ______________________________________________________

Important
RemInderS Find the words related to the topic. And define each word based on your
understanding or what you have learned in this module. 50pts
• Tear this activity sheet and submit on the scheduled date along with the other
activity (ies) the instructor may have asked the students to do on a separate paper.
• If you are sending something you’ve done online such as MS presentation (s),
pictures, pdfs and alike as an attachment, then you may send them to my email
at [email protected] following this format:
(SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME e.g.
IC1MA_BINABAN_PRINCESS_SCAVENGERS HUNT), or send a digital copy from
your flash drive together with this activity sheet.

Identify the following marketing principles. Draw if product, if place,

if price, and if promotion.

_________1. TV Ads _________6. Greenwich

_________2. Jollibee _________7. Billboards

_________3. School _________8. Church

_________4. Radio Ads _________9. Discounts

_________5. Leaflets _________10. Mall

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Create your ideal business or products you want to put in the future by using the
illustration in Marketing Process. Starts with the mission up to the implementation.
100pts

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Because customers have varying needs and preferences over time, organizations must be
able to offer products and services at the time when customers need them. Marketers
cannot force the customers to buy any products or services that the company offers. Instead,
consumer needs and wants must be understood and anticipated, as well as be satisfied
adequately and exceedingly. Companies must predict customer needs.

Customer service is the process of ensuring customer satisfaction with

a product or service. Customer service can take on many forms—
salesperson assistance, product delivery, technical advice, help desks, Call center
representatives is
or other means. It involves activities designed to enhance customer
one of the most in
satisfaction, or the perception that a product has met or exceeded demand jobs in the
expectations. This perception can be shaped and influenced by the Philippines where
they assist
level and type of service that customers receive before, during, and customers with
after the actual purchase. Good customer service can cause customers online transactions
and/or
to perceive the value offered superior over its competitors. This is reservations,
because a customer not only buys a product and service, but also the product
entire purchase or shopping experience. information, and
many others as via
• Customer Service and customer-driven marketing telecommunication.
• Customer relationship management Creating a Customer Service Program
• Customer lifetime value Customer loyalty and retention
• Successful customer relationship strategies Customer retention relies on building customers' product loyalty and satisfaction. Studies
suggest it is more expensive to find a new customer than to retain a current customer.
Customer-Driven Marketing About 80% of companies use customer satisfaction as an indication of performance. In
recent surveys, businesses say maintaining or increasing customer satisfaction is one of their
A customer is a person or organization that transacts with businessperson or business major challenges.
organization to buy goods or services for monetary or other valuable consideration. Satisfied customers are loyal customers. Loyal customers tell others and advertise the
Acquiring and keeping customers is the end goal of businesses because customers create
benefits of your products and services. This is an important additional marketing tool for
demand. Through customers' purchases, organizations are able to cover manufacturing
costs, operating expenses, and generate profits. Because businesses have to be sustainable, your business.
products or services are not expected to be purchased only once. They need to be purchased Having loyal customers:
over and over again in order to maintain profitable and sustainable operations. • Creates great word-of-mouth referral (potentially reducing advertising costs)
• Means repeat business
Consumables such as soft drinks and candy are bought frequently. Other products like
shopping goods are purchased less frequently. A mobile phone may be bought once every • Increases their chances of staying with your business
year, and a car, perhaps every five years. Real estate and properties may be purchased every • Creates more stable demand for your services and products
10-15 years, or even longer.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

• May reduce the negative reactions by customers when there is a breakdown in the Systems and processes
delivery of your product or service. The way your customers buy from you is very important, because if the buying experience is
frustrating or difficult a customer may not even complete their first purchase, let alone
Steps for creating an effective customer service program return. The following are some tips for your systems and processes:
A customer service program formalizes the level of customer service you aim to provide, and • Record customer service standards and relate them back to business goals.
what practical things you will do to achieve this. • Include the best point-of-sale system.
Establishing a successful customer service program in your business requires commitment • Reward customers with a customer loyalty program.
from yourself and your staff. You need to plan it, develop it, implement it and sustain it. It • Record client details in a Customer Relationship Management (CRM) database.
also involves training and feedback. • Seek post-sale feedback from clients.
Steps to take: • Establish a customer complaint policy.
• Think about what your customers need. • Recognize and reward staff behaviour that you want repeated.
• Plan how you will meet their needs. Write a document outlining the program's • Review recruitment practices to ensure you employ the right front-line staff.
aims, details, and how it will be implemented throughout your business. • Include a staff training program and review staff performance regularly.
• Deliver training to your staff, including training for any new systems. • Ask key staff what they already do to provide good customer service.
• Implement the program, making sure all staff are confident with it. • Encourage ideas, suggestions and observations from all staff and establish an
• Sustain the program by reviewing changing customer needs and feedback. anonymous staff suggestion box if staff are uncomfortable sharing ideas.
• Encourage and support staff through a staff recognition program.
If your program is working well it will keep your customers happy, which, in turn, will mean
higher profits for you. Managing Customer Service Quality

In order to ensure the consistency of customer service quality, organizations conduct rigid
Your customer service program
customer service training and assess periodically how well services are delivered. This
Staff
assessment can result in the identification of customer service problems, improvements,
Your people need to work together to put the needs of the customer first. Staff should treat
and current levels of customer satisfaction.
customers as individuals and listen to their comments, complaints and requests — this all
adds up to a great customer service attitude. Importantly, your staff should thank customers
Maintaining customer service quality is important. Disgruntled customers tend to tell others
to ensure that they feel valued, important and needed.
about a bad service experience more often than a pleasant one. This can lead to
Your staff are the first point of contact for your customers, so it is important that they:
deterioration of the organization's image. It shall be perceived as being unable to deliver the
• Have the right attitude
level of service expected by customers.
• Are well trained
• Enjoy their work
Companies can best manage customer service quality by:
• Contribute to improvements • Establishing service objectives with specific and measurable targets
• Advocate your business. • Committing sufficient organizational resources towards the achievement of these targets

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

• Collecting customer feedback on service quality regularly counter every time he/she shops. This updates his/her purchasing history. The information
• Reviewing target accomplishment can yield customer purchased value, preferences, and buying habits, among others.
• Identifying customer service weaknesses and connecting them
Relationship marketing is a facet of customer relationship management (CRM) that focuses
on customer loyalty and long-term customer engagement rather than shorter-term goals
Organizations must constantly bear in mind that it is better to exceed customer service
like customer acquisition and individual sales. The goal of relationship marketing (or
expectations than to simply fulfill or underachieve them.
customer relationship marketing) is to create strong, even emotional, customer connections
to a brand that can lead to ongoing business, free word-of-mouth promotion and
Managing Customer Service Differentiation
information from customers that can generate leads.
How can organizations make their customer service stand out? How can they protect their
services from being duplicated by competitors? For physical products, differentiation can be
easily undertaken and protected through patents. This is, however, not the case with
Importance of Relationship Marketing
services. Acquiring new customers can be challenging and costly. Relationship marketing helps retain
Customer-centered organizations can differentiate their customer service through: (1) the customers over the long term, which results in customer loyalty rather than customers
development and training of competent customer contact personnel and (2) designing and purchase once or infrequently.
implementing a superior service delivery environment and process.
Relationship marketing is important for its ability to stay in close contact with customers. By
understanding how customers use a brand’s products and services and observing additional
Customer Relationship Management (CRM) is a process of managing an organization's
unmet needs, brands can create new features and offerings to meet those needs, further
interactions with current and future customers. The rationale for CRM is the recognition that
strengthening the relationship.
companies can sustain long-term profitability by attracting and maintaining their most
valuable customers. These are customers that can directly or indirectly generate the greatest
revenues and financial returns. But how can these customers be identified? This can be done
through the use of consumer databases.
Initially, marketing companies create and maintain customer databases that record and keep
the following information: customer names, birthdates, contact numbers, and physical and
email addresses. The information progresses to include customers' buying history and
behavior, i.e., what they buy, when and where they buy, in what quantities and prices, and
their responses to sales promotion efforts.

While most consumers may not be willing to share personal information, product retailers
utilize different strategies to coax customers into sharing. A common practice is through a
shopper's club. Benefits of joining the club include earning points on purchases or
participation in in-store contests. The customer swipes his membership card, at check-out

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Customer Lifetime Value (CLV) is the forecasted sales or profits that a company can derive SUCCESFUL CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES
from the entire span of the future relationship with a particular customer. The following are effective guidelines in the implementation of customer relationship
A customer's lifetime value can be based upon the potential value and profitability of their management:
relationship with the company. 1. Adopt the right mindset towards customer service
The CLV perspective has several distinct implications: 2. Purchase or develop CRM Software
• It considers a longer-term perspective of a company's relationship with customers 3. Quantify customer acquisition and retention costs Keeping the
in contrast to a short-term view of "take the customer's money and run. 4. Develop and implement a customer service training program customer
• It calculates and compares costs of acquiring new customers and keeping old ones. 5. Empower salespersons to make decisions satisfied
This can be used to determine the revenues that are lost when an existing customer 6. Establish communication lines between your customer and
should be the
switches to another product. Costs for getting new customers are called acquisition customer contact staff
goal of the
costs, whereas, costs for maintaining existing customers are called retention costs. 7. Shop your competition
company.
These are normally in the form of customer support and promotional incentives. 8. Keep innovating customer service
• It highlights the importance of market segmentation, with the recognition that 9. Promote genuine customer service with a passion
some customer groups are more profitable than others.

REFERENCES:

Principles of Marketing. Pages 17-26 Authors, Real C. So, Oscar O. Torres. Publisher, Vibal, 2016

https://searchcustomerexperience.techtarget.com/definition/relationship-
marketing#:~:text=Relationship%20marketing%20is%20a%20facet,customer%20acquisition%20and%
20individual%20sales.

https://www.business.qld.gov.au/running-business/consumer-laws/customer-
service/improving/creating-program

https://blog.alexa.com/how-to-calculate-customer-lifetime-value/

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Name: _____________________________________________________________ CROSS

1. Is a person or organization that transacts with businessperson or business
Year & Section: ______________________________________________________ organization to buy goods or services for monetary or other valuable
consideration.
2. A strong feeling of support or allegiance.
3. The action of buying something.
4. The exchange of a commodity for money; the action of selling something
Important 5. The activity or condition of competing
RemInderS 6. Is an object or system made available for consumer use
DOWN
1. An amount that has to be paid or spent to buy or obtain something.
• Tear this activity sheet and submit on the scheduled date along with the other
2. Visit one or more stores or websites to buy goods.
activity (ies) the instructor may have asked the students to do on a separate paper.
3. The way in which two or more people or groups regard and behave toward each
• If you are sending something you’ve done online such as MS presentation (s),
other.
pictures, pdfs and alike as an attachment, then you may send them to my email 4. Are intangible and do not have a physical existence
at [email protected] following this format: 5. The action or business of promoting and selling products or services, including
(SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME e.g. market research and advertising.
IC1MA_BINABAN_PRINCESS_SCAVENGERS HUNT), or send a digital copy from 6. A regular gathering of people for the purchase and sale of provisions, livestock,
your flash drive together with this activity sheet. and other commodities.

Is the market driven by customer needs and wants? Give at least 5 examples of products or
services that are offered because of customer needs.

Create a “slogan” that shows the importance of customer relationship in the business. It
must be your own work and not copied on the internet. Make it attractive and creative.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

The Strategic Marketing Process seeks to establish a clear and concerted direction for all
marketing activities of an organization. It includes plans to reach specific goals/objectives.

To gain a competitive edge in marketing for manufacturing, you need a thorough

understanding of your target customer’s demographics and buying habits. To decide what
your business goals are, you must be up-to-date on industry trends and your competitive
position. Once you’ve formulated your goals, you need to develop a strategy to achieve
those goals.

• Strategic marketing vs. Tactical marketing

• Marketing Environment
• Marketing research
• Consumer and organizational markets
• Segmentation, targeting and positioning

Market opportunity analysis is a tool to determine and access the desirability of a business
opportunity. It forms a portion of the business strategy; wherein, before launching a new
product or service, the market is analyzed to identify the anticipated revenues and profits
from it.

Consumer analysis is the process where information about the consumer is found out from
market research like the needs of the consumer, the target market and the relevant
demographics so that this information can be used in market segmentation for further steps
of market research. It is very useful in predicting consumer behaviour.

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Strategies can be broadly classified into three categories. These are cost leadership, Example: Pizza Hut buying a controlling interest in Shakey's
differentiation, and focused. 4. Market penetration - The objective of this strategy is to increase market share of
current products or services in current markets through greater and more intensive
Cost leadership-This is a strategy primarily for achieving low cost leadership among industry
marketing efforts.
competitors. Cost leadership can be achieved through low cost supply contracts, overhead
Example: Krispy Kreme launching a P56 million advertising campaign
expense control, economies of scale, and comprehensive cost-cutting efforts, among others.
directed at current customers
Example: While 16" desk fans ordinarily retail for PI, 000, local appliance brand
5. Market development - This strategy involves the introduction of existing products
Nikon is able to market the same at P635 through mass production.
or services into a new geographical area or market.
Example: The University of Santo Tomas opening a campus in Cebu City
Differentiation seeks to achieve superior product attributes and features that are different
6. Product development - This strategy involves the improvement of current products
from industry competitors. This results in pronounced consumer preference for the
or services or the development of new products with the purpose of increasing
company's products.
sales.
Example: Apple introduces its version of the smartphone that does not have a
Example: Coca-Cola introducing Coke in tetra pack
keyboard but is activated and controlled by thought.
7. Related diversification - This involves introducing new but related products or
services.
Focused this is a strategy in which efforts are concentrated on a relatively small but
Example: Motolite introducing solar powered automotive batteries
profitable market. The development of products and services primarily ensures that the
8. Unrelated diversification - This involves introducing new but unrelated products or
needs and wants of this market are addressed and that satisfaction is provided.
services.
Example: Family Mart concentrates on the very high-end niche market by converting
Example: Banco de Oro opening a chain of BDO ice cream parlors
its operations into convenience stores with superior customer service, selling purely
9. Retrenchment - This involves halting or reversing declining sales and profits through
imported and high quality products and gourmet food prepared by resident chefs.
cost or asset reduction.
Example: Shoemart selling off its hardware department and laying off 847
Cost leadership, differentiation, and focused strategies may be implemented through the
of its department store employees
following subcategories of strategies:
10. Divestiture - This involves selling a division or part of an organization.
1. Forward integration - This involves gaining ownership or increased control over
Example: JG Summit selling Cebu Pacific
distributors or retailers.
11. Liquidation - This involves selling all of a company's assets, in parts or as a whole,
Example: The Philippine Daily Inquirer buying 418 newspaper stands in
for their tangible worth.
Metro Manila
Example: SM Prime Holdings selling all its companies and the family
2. Backward integration - This involves gaining ownership or increased control over
retiring from business
suppliers.
Example: Nestle Philippines purchasing a cow farm and dairy facility in
The Tactical Marketing Process
General Santos City
Complementing the strategic marketing process, the tactical marketing process determines
3. Horizontal integration - This involves purchase of or increased control over
the means or tactics to implement the strategies. It involves the identification of specific
competitors.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

activities, timetables, responsibilities, and budgets and their implementation. The objective Once the tactics and activities are identified, they are developed into an action plan. An
is to ensure that the strategies are implemented successfully. action plan is a sequential series of marketing activities. It includes timetables for each
activity, pinpointed responsibilities or accountabilities for each, and the corresponding
Tactical marketing often involves generating leads, building websites, placing ads, and budgets. Oftentimes, it is necessary to utilize two or more action plans to ensure successful
following up. It includes advertising, sales promotions, and other activities that directly implementation. These are monitored regularly to ensure effectiveness.
support your strategic marketing plan. And because your strategic marketing plan included
establishing a budget, tactical planning preparation should take into account its financial The Marketing Microenvironment
limitations in carrying out these activities. The marketing microenvironment includes forces that are internal to the company or those
that are relevant to operation. It is composed of the company itself, its suppliers, market
intermediaries, customers, competition, and its various publics. The consideration of these
is important as they affect the company's ability to build and maintain sustainable
relationships with current and prospective customers.

For example, a company determines to increase sales by 10% by the end of the calendar
year. After careful consideration, it selects market penetration as its strategy. Tie current
task is to identify the tactics, or activities that it should undertake to ensure that the strategy
will be successful. The firm may decide to increase selling prices. It may opt to do intensive
promotions, or it may invest in heavy product advertising.

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Identifying Strengths and Weaknesses Identifying Strengths and Weaknesses

A thorough and impartial analysis of a company's microenvironment can effectively After relevant economic, politicolegal, sociocultural, demographic, technological, and
identify the company's competitive strengths and weaknesses. natural macroenvironment factors have been identified and analyzed, the company shall
now proceed to identify threats or opportunities among these factors. Although both
Strengths and weaknesses can either be controllable or uncontrollable. The factors present opportunities and threats are external in nature and essentially uncontrollable,
within the company are within the firm's control. The five other forces (suppliers, market opportunities are favorable to a company and, therefore, can be capitalized on, while threats
intermediaries, customers, competition, and the various publics) are essentially are unfavorable and require mitigation.
uncontrollable although they are within the sphere of the company's influence.
Microeconomic factors that are favorable to a firm are classified as strengths, while Marketing Research is a function under a business organization’s Marketing Information
unfavorable factors are termed as weaknesses. Companies should utilize strengths as the System (MkIS) is primarily for the gathering, analysis, and timely distribution of information
foundation for effective strategies, with the most dominant and sustainable strength as its for the use of marketing decision makers.
major competitive advantage. Weaknesses, on the other hand, should be eliminated with
aggressive action, and eventually be converted to strengths.
The Purpose and Importance of Marketing Research
• Identify viable new products and services
The Marketing Macroenvironment • Enable risk reduction
All business organizations operate within a particular macroenvironment. The marketing • Identify market opportunities and threats Marketing
macroenvironment includes factors that are external to the organizations. Essentially, these • Determine the level of customer satisfaction Research is the
can neither be influenced nor altered by the company. However, they can affect a company’s
• Pinpoint and anticipate market trends or changes function
operational viability. They can be opportunities, which a business organizations can take responsible for
• Decide on the best advertising medium
advantage of, or threats, which the company must avoid. acquiring and
• Pre-test and post-test advertising and promotional
evaluating
campaigns
market and
• Evaluate the results of test marketing
consumer-based
• Evaluate the result of packaging, brand name and label information for
testing decision making
• Determine consumer price awareness and sensitivity and
• Undertake location studies determination of
marketing
Steps in the Marketing Research Process strategic
direction.
1. Research need determination
2. Problem/Opportunity definition
3. Establishment of research objectives
4. Research Design determination

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Four major types of Research Design: • Referral sampling

• Observational • Quota Sampling
• Experimental
• Qualitative Types of probability sampling:
• Quantitative • Simple random sampling
• Systematic sampling
5. Information source/ type identification • Cluster sampling
Two basic types of information: Primary, Secondary • Stratified sampling

6. Determination of data access methods 9. Data collection

Four most popular ways of data access method: 10. Data analysis
• Person administered surveys 11. Report preparation and presentation
• Computer-administered surveys
• Self-administered surveys Making Marketing Research-based Decisions
• Hybrid Surveys • External factor research
• Observational research
7. Data Collection forms design • Test marketing
Major parts of survey questionnaire: • Target market studies
• Introduction • Concept, product development, and product studies
• Screening • Pricing tests
• Core • Location studies
• Classification • Advertising pre- and post-testing
Types of questions used in questionnaires: • Usage, attitude, and image studies
• Categorical response questions - Dual or multiple choice
• Open-ended questions - own words or opinions Consumer and Organizational Markets
• Metric questions - use scale method ex. 1-10
Consumer Markets include individuals and/or households who purchase products and
8. Sample size and sampling determination/ Census services for personal consumption. Consumer normally makes purchases in smaller
Sampling methodology can either be nonprobability or probability based. quantities due to their tendency to costume products gradually over a period of time.
Types of nonprobability sampling: Moreover, consumers tend to be more emotional about their purchases. The purchases are
• Convenience sampling at times impulsive or spontaneous.
• Judgment sampling

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The Consumer Buying Process outlines the steps a consumer goes through when buying Consumer Markets and Buying Behavior
a product/service.

Buyer Characteristics influencing Purchase Behavior

The Consumer Buying Roles
There are five roles individuals may portray in a consumer buying decision:

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Organizational Markets are all the individuals and companies who purchase goods and Organizational Segmentation Variables
services for some use other that personal consumption. The organizational market is far Similar to consumer markets, organizational markets must also be segmented.
less in number than the consumer market, buy less frequently but in greater volume. The
three types of organizational markets are: (1) Industries that purchase goods and services
for the purpose of producing other products and services or for use in their production and
operating process. (2) Resellers are entities that buy goods and services in order to resell
them a profit. (3) Government that purchase goods and services for the purpose of
producing public services or to transfer them to third government since most of these
institutions are under local or national government.

Types of Organizational Buying Decisions

• New task
• Straight rebuy
• Modified rebuy

Organizational Buying Roles

Organizational Buying Behavior

• There are far less organizational accounts than consumer accounts
• Organizational accounts are more concentrated geographically
• The volume of products and services organizations buy are much larger than
consumer markets
• The buying decision and processes of organizational buyers are more structured
• The buying decision of organizational accounts involves a lot of negotiation and
takes much longer to complete
• Organizations normally buy on extended payment terms
• Organizational markets purchases more rational and less emotional

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

• There are many participants playing different roles in the organizational buying Market Segmentation is the process of dividing the market into homogeneous parts or
process, most of them possessing highly specialized capacities groups. It is necessary to divide the total population into parts or segments with particular
• Organizations place larger orders and are fewer, firms usually establish close characteristics to identify the segments where marketing efforts will be controlled.
relationships with these organizations. Market segmentation is very important for business to make sales and subsequent generate
• Organizational markets have access to more information regarding profits.
products/services

The Organizational buying process is illustrated below:

Target Market
A target market refers to a group of potential customers to whom a company wants to sell
its products and services. This group also includes specific customers to whom a company
directs its marketing efforts. A target market is one part of the total market for a good or
service.

After segmenting the market into various homogeneous parts (or segments possessing
similar characteristics), the marketer decide which part(s)/segment(s) he/she wants to
actively pursue. The target market of a product or service is defined as its most probable and
most logical consumers, and may likewise be its heaviest consumers. A company may decide
its products target market to be.

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Elements of an Ideal Target Market Selecting a Good Brand Position

• Substantial- the selected target market must be large enough in terms
of quantity and/or total consumption capability. Perceptual Mapping involves the identification of a competitive brand’s position
• Financially capable – must have financial means to afford the purchase using two variable or axes.
price of the product/service.
• Reachable – must be within physical reach to permit product distribution
and it should also be reachable by various marketing activities.
• Homogeneous – must react similarly to specific marketing stimuli.

Key Takeaways
• A target market refers to a group of customers to whom a company
wants to sell its products and services, and to whom it directs its
marketing efforts.
• Consumers who make up a target market share similar characteristics
including geography, buying power, demographics, and incomes.
• Identifying the target market is important for any company in the
development of a marketing plan.
• Not knowing who the target market is could cost a lot of money and
time for a company.

Positioning is the process of communicating the image of a brand into the minds Communicating Brand Position
of consumers. The objective is to make the brand stand out in comparison to its The brand position of a product/service must be consistent and communicated effectively
competition. to its target market. The continuous and consistent communication of the brands positioning
Elements of a Good Brand Position: to its target market is important to create impact in the market. All elements of the product
• Unique must be consistent to the brands selected positioning.
• Beneficial Some of elements to be considered in communicating brand position are:
• Credible • Packaging
• Labeling
• Selling price
• Advertising
• Brand endorser
• Tagline

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Identifying and Selecting Competitive advantage REFERENCES:

Competitive advantage is defined as superiority an organization over its competitor. It
typically answers the question “Why should the customer purchase from this company Principles of Marketing. Pages 69-91 Authors, Real C. So, Oscar O. Torres. Publisher, Vibal, 2016
instead of its competitors?”
https://www.smartinsights.com/marketing-planning/marketing-strategy/marketing-strategy-vs-tactics-difference/

Three major types of competitive advantage: https://www.mmmatters.com/blog/strategic-marketing-vs-tactical-

• Cost advantage – results when a firm has the ability to produce products or service marketing#:~:text=Tactical%20marketing%20often%20involves%20generating,support%20your%20strategic%20
marketing%20plan.
at a lower cost compared to its competitors.
• Differential advantage – when a company’s product or service differs from its https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11977-consumer-analysis.html
competitors and are perceived by consumers to be better or of greater value. https://www.infinitiresearch.com/thoughts/market-opportunity-analysis-
• Focus advantage – when a company knows its target market very well, and can impact#:~:text=Market%20opportunity%20analysis%20is%20a,revenues%20and%20profits%20from%20it.
service its needs better than any of it competitor.
https://www.investopedia.com/terms/t/target-market.asp

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 ASIAN INSTITUTE OF COMPUTER STUDIES (AICS)

Name: _____________________________________________________________ 6. This process outlines the steps a consumer goes through when
buying a product/service.
Year & Section: ______________________________________________________
7. The stronger influence on buying behavior.
8. The process of dividing the market into homogeneous parts or
groups.
9. The process of communicating the image of a brand into the
Important
minds of consumers.
RemInderS
10. Price involves the identification of a competitive brand's position
using two variable or axes.
• Tear this activity sheet and submit on the scheduled date along with the other
activity (ies) the instructor may have asked the students to do on a separate paper.
• If you are sending something you’ve done online such as MS presentation (s),
pictures, pdfs and alike as an attachment, then you may send them to my email
at [email protected] following this format:
(SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME e.g.
IC1MA_BINABAN_PRINCESS_SCAVENGERS HUNT), or send a digital copy from
your flash drive together with this activity sheet.

In your opinion and based to what you have learned in the module, is it possible for
a product with no distinct differentiating feature to be successful in the market?
Give examples. (Max. of 250words)
Directions: Write the correct answer in each questions. 2pts each
1. Seeks to achieve superior product attributes and features that
are different from industry competitors.
2. One of the Marketing Microenvironment which create the
demand for products and services.
3. This process determines the means or tactics to implement the
strategies.
4. The function responsible for acquiring and evaluating market and
Write an original caption for the featured photograph.
consumer-based information for decision making and the
A few rules:
determination of marketing strategic direction.
▪ Keep it simple and clever (no dissertations, please -- 250 characters or fewer).
5. This methods utilize the principle of randomness.
▪ It must be your original work.

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CRITERIA
CONTENT 50%
IDEA 25%
GRAMMAR 25%
TOTAL: 100%

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