2nd Periodical OUTLINE LECTURE NOTES in PRINCIPLES OF MARKETING

Marketing Mix Define:

It is about putting the right product or a combination thereof in the place, at the right time, and at the right
price. The difficult part is doing this well, as you need to know every aspect of your business plan. It’s a blend of
four strategy elements – product, distributions, promotions and pricing – to fit the need and preferences of
specific target market. (Kurts and Boones 2014)

A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the 1960s. His creation become
the concept of the business around the globe. The marketing 4Ps becomes the foundations of marketing mix.

Let us talk about PRODUCT!

PRODUCT - a product is an item that is produce in order to satisfy the need and wants of a certain target market
for example a group of people, individual and even organizations. The product can be tangible or intangible in
nature as it can be in a form of good or services.

SERVICES - are a form of product that consists of activities, benefits, or satisfactions offered for sale that are
essentially intangible and do not result in the ownership of anything.

Do you know that companies are now creating and managing customer experiences with their
brands or company?

3 LEVELS OF PRODUCT
* Each level adds more customer value.
1. CORE PRODUCT - is NOT the tangible physical product. You can’t touch it. That’s because the core
product is the BENEFIT of the product that makes it valuable to you. It addresses the question: What is
the buyer really buying?
2. ACTUAL PRODUCT - is the tangible, physical product. You can get some use out of it. They need to
develop product and service features, a design, a quality level, a brand name, and packaging.
3. AUGMENTED PRODUCT - is the non-physical part of the product. It usually consists of lots of added
value, for which you may or may not pay a premium. It offer additional consumer services and benefits
EXAMPLE:
* A note corresponding to the core customer value reads "At the most basic level, the company asks, “What is
the customer really buying?”
Product: Harley-Davidson motorcycle
Core Product: they are not just buying a motorcycle. They are buying the Harley experience—freedom,
independence, power, and authenticity.
Actual Product: Brand name gives prestige to the buyer, its features makes it worth buying, designs makes it
more appealing, and the packaging makes it convincing to the buyers to purchase it.
Augmented Product: it has product support, warranty, after-sale service and deliver and credit features that
make it more appealing to the buyer.

Classifications of Products
1. Consumer goods - are product intended for customers final consumptions and can be classified according
to the following criteria’s: rate of consumptions and tangibility and consumer shopping habits (Medina 2008).

1. Rate of consumptions and Tangibility – consumer product that is based on the rate of consumptions are
further classified into: durables, nondurables, and services.

2. Durable products – are tangible product which have a long interval between repeat purchases because of
their long lasting nature.. Examples are: car, electric fan, washing machine, cabinets, flat iron, and bikes.

3. Non – durable products – a type of tangible products which have stronger repeat purchases because they
are consumable. Examples are: detergents like surf and champion, processed meats like CDO and Mekeni and
snacks like Sky Flakes Biscuits and Jack n Jill snacks.

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4. Services – products which are essentially intangible because there are no physical items involved. Examples
are: telecommunications, health services, entertainment, financial, car rentals, and etc.

Consumer shopping habit – based on consumers shopping routine, consumer good maybe classified as:
convenience goods, shopping goods, specialty goods, and unsought goods.

1. Convenience goods – are goods that are purchased with a minimum effort. Most of this goods are available
in sari -sari store, convenience store. Examples: bread, can goods, soap, shampoo, noodles etc.

2. Specialty goods – goods that are not easy to find and that the consumer will seek to buy and cannot be
easily substitute. Examples medicine, designer’s cloths, designer’s jewellery and exotic foods.

3. Shopping goods – are goods that are bought only after a thorough effort has been established. A comparison
has been made between competing brands before deciding to buy. Example: mobile phones, apparels, bags,
etc.

4. Unsought goods – are goods that are unknown and unwanted by the buyers. Resulting to buyers are not
interested to buy the product and no reason to seek them.

2. Industrial goods - are those products purchased for further processing or for use in conducting a business.

The categories are as follows:

1. Installations – refers to industrial product with long life, they form part of major capital equipment of an
industrial firms. Examples: elevator, computers, air condition unit etc.

2. Accessory equipment – goods that are used as an aid in productions. Mostly shorter usable life. Examples:
tools in trucks, car pillow, etc.

3. Raw materials - goods that are unprocessed and become part of another product. Examples: fish, lumber,
diamond, sliver etc.

4. Components parts and materials – processed industrial goods that will be used and become part of other
finished product. Examples are: string in a guitar, know on radio and etc.

5. Supplies – items that are considered as an aid in operating process but not totally part of the finished product.
Examples are: Ball pen, Pencil, crayons, paper clips etc.

6. Services – are company expense in the operations of the business. Examples: General services, HR services
etc.

3. Organization marketing consists of activities undertaken to create, maintain, or change the attitudes and
behavior of target consumers toward an organization

4. Person marketing consists of activities undertaken to create, maintain, or change the attitudes or behavior
of target consumers toward particular people.

5. Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior
toward particular places.

6. Social marketing uses commercial marketing concepts to influence individuals’ behavior to improve their
well-being and that of society.

Individual Product and Service Decisions

1. Communicate and deliver benefits by product and service attributes like quality, features, style and
design
2. Product quality refers to the characteristics of a product or service that bear on its ability to satisfy stated
or implied customer needs.
3. Product Features - Assessed based on the value to the customer versus its cost to the company
4. Style describes the appearance of the product.
5. Design contributes to a product’s usefulness as well as to its looks.

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 6. Brand is the name, term, sign, or design or a combination of these, that identifies the maker or seller of
a product or service.
7. Packaging involves designing and producing the container or wrapper for a product.
8. Labels identify the product or brand, describe attributes, and provide promotion.
9. Product support services augment actual products.

Four Service Quality

1. Intangibility refers to the fact that services cannot be seen, tasted, felt, heard, or smelled before they
are purchased.
2. Inseparability refers to the fact that services cannot be separated from their providers.
3. Variability refers to the fact that service quality depends on who provides the services as well as when,
where, and how the services are provided.
4. Perishability refers to the fact that services cannot be stored for later sale or use.

Marketing Strategies for Service Firms

1. Internal marketing means that the service firm must orient and motivate its customer-contact
employees and supporting service people to work as a team to provide customer satisfaction.
2. Interactive marketing means that service quality depends heavily on the quality of the buyer-seller
interaction during the service encounter.
- Managing service differentiation creates a competitive advantage as to offer, delivery and image.
- Managing service quality enables a service firm to differentiate itself by delivering consistently
higher quality than its competitors provide.
- Managing service productivity refers to the cost side of marketing strategies for service firms in
terms of employee hiring and training and service quantity and quality.

Brand Equity and Brand Value

• Brand equity is the differential effect that knowing the brand name has on customer response to the
product or its marketing.
• Brand value is the total financial value of a brand.

Brand Name Selection

1. Suggests benefits and qualities 4. Extendable
2. Easy to pronounce, recognize, and remember 5. Translatable for the global economy
3. Distinctive 6. Capable of registration and legal protection
Brand Development Strategies
1. Line extensions occur when a company extends existing brand names to new forms, colors, sizes,
ingredients, or flavors of an existing product category.
Example: KFC has extended its “finger lickin’ good” chicken lineup well beyond original recipe and now
offers grilled chicken, boneless fried chicken, chicken tenders, hot wings, and chicken bites. A line
extension works best when it takes sales away from competing brands, not when it “cannibalizes” the
company’s other items.
2. Brand extension extends a current brand name to new or modified products in a new category.
Example: Starbucks has extended its retail coffee shops by adding packaged supermarket coffees.
3. Multibrands: Companies often market many different brands in a given product category.
Example: the brand name Sony is used on most if not all of their products. Sony is the company or parent
brand name, but you will also see it on televisions, and on their PlayStation series.
4. New brands: A company might believe that the power of its existing brand name is waning, so a new
brand name is needed. Or it may create a new brand name when it enters a new product category for
which none of its current brand names are appropriate.
Example, Toyota created the separate Lexus brand aimed at luxury car consumers and the Scion brand,
targeted toward millennial consumers.
5. Multibranding: offering too many new brands can result in a company spreading its resources too thin.
And in some industries, such as consumer packaged goods, consumers and retailers have become
concerned that there are already too many brands, with too few differences between them.
Example: P&G, PepsiCo, Kraft, and other large consumer-product marketers are now pursuing
megabrand strategies—weeding out weaker or slower-growing brands and focusing their marketing

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 dollars on brands that can achieve the number-one or number-two market share positions with good
growth prospects in their categories.

Let us talk about PRICE!

PRICE - The next variable in the marketing mix is the price. The profit of the firms depend on the price set by
the company. Company use several forms of pricing strategy.

Price define as the amount of money charge for a specific product or services over the counter. For instance,
twenty thousand pesos charge for tuition fee is a price.

Pricing Approaches
Price of product or services may be set based on different approaches that the company has to arrive with
(Medina 2008)
1. Cost Based approach – a pricing strategy that is based on the cost of the product. IN this particular approach
total cost will be calculated and margin of profit is added. There are two types of cost based pricing.

a. Cost plus pricing - this methods use by adding a certain percentage of cost on top of the total cost.
Formula: Price = direct cost + overhead + profit margin
b. Target Rate of Return - a pricing approach enables the company to set profit with a satisfactory return.
Formula: P= DVC + F/X + RK/X
WHERE P = Selling Price X = standard unit volume
DVC = direct unit variable cost R = desired rate of return; and
F= fixed cost K= capital (total operating assets)

2. Buyer Based approach - a pricing approach deals with the perceptions of the buyers or base on the behavior
of the customers. Methods employ for this approach are the following (Medina 2008):

a. Perceived value Pricing – established pricing based on the perceptions of the buyers. Cost has slight to do
with retailing price.
b. Price Quality Relationship Pricing – a pricing practice hinges on the observations of the customers that
high price with high quality, low price low quality.
c. Odd Numbered Pricing – a psychological pricing below a peso amount. For instance, 99.75 rather than a flat
100.

d. Loss Leader Pricing – pricing practice where the company reduce the price of some items which will
generally result to low yield of return.
e. Pricing Lining Pricing – a practice of selling merchandise at a limited number of pre – determined price level

3. Competition based approach- pricing set by the company based on the price charge by the competitors.
There are two kinds of competition based pricing (Medina 2008).
a. Going rate – pricing strategy based on the competitors price. Price maybe a little higher or a bit lower.
b. Sealed rate- the company set a price a little bit lower than that of competitors.

Marketing Channels (Distribution Channel)

- is a set of interdependent organizations that help make a product or service available for use or consumption
by the consumer or business user.

What is Physical Distribution?

A marketing functions which facilitates the movement of product from manufacturer down to the ultimate
consumer. On the broader scope, physical distribution facilitate the movements of raw materials, parts, supplies
to the business productions line. It also includes such important decision such as customer service, inventory
control, material handling, protective packaging, order processing and warehousing.

Retailing includes all the activities in selling products or services directly to final consumers for their personal,
non-business use.
Retailers are businesses whose sales come primarily from retailing.

Wholesaling includes all activities involved in selling goods and services to those buying for resale or business
use.
Firms engaged primarily in wholesaling activities are called wholesalers.

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Number of Channel Levels
• Physical flow of products – refers to the movement of the physical product from the manufacturer
through all the parties who take physical possession of the product until it reaches the final consumer.
• Flow of ownership – shows the movement of title through the channel.
• Negotiation flow – encompasses the institutions that are associated with the actual exchange
processes.
• Information flow – identifies the individuals who participate in the flow of information either up or down
the channel.
• Promotion flow – refers to the flow of persuasive communication in the form of advertising.

Types of marketing channels

Consumer Goods:
Producer--------------------------------------------------------------- Consumer
Producer------------------Retailer------------------------------------------ Customer
Producer -------Wholesaler ------------Retailer ----------------------- Customer

Producer------broker------wholesaler--------Retailer--------------------Customer

Business Good
Producer ----------------------------------------------------------------- Consumer
Producer -----------------------Broker---------------------------------------Customer

Producer ------------------------ Wholesaler ---------------------------- Customer

Producer -------Agent ------ Wholesaler----- Customer ----------Services

Service
Provider -------------------------------------Consumer or Business User
Service Provider ------------Broker ----------------- Consumer or Business User

A shorter marketing channels uses few intermediaries. This due to some reason like demographics
concentrations and small number of business purchasers. Examples are Haircuts, dentals, massage, manicure
and other short channel business.

Direct Selling - the simplest and shortest marketing channels. The seller carries directly the product to the
business purchaser or to the ultimate customer .This way the marketers will create a direct contact with the
prospect buyers. Examples are: AVON, NATASHA, BOARDWALK, ROYALE, ETC.

CHANNELS USING MARKETING INTERMEDIARIES (Kurtz and Boon 2013):

Many companies all over the world are using marketing channels to reach their potential customers around the
globe. Below are the different forms of marketing channels:

Producer to Wholesaler to Retailer to Consumer

Traditionally, producers produce product then pass on to the wholesaler to ultimate retailer to the customers.
Many producers hire representative to serve small time retailer.

Producer to Wholesaler to Business User

This channel usually refers to industrial distributorship to take the ownership of the merchandise.

Producer to Agent to Wholesaler to Retailer to Consumer

Small companies are using this type of marketing channels. An agent may or may not take possession of the
product but never the titles.

Producer to Agent to Wholesaler to Business User

Like agents and brokers they can also take the possession of goods but not the title. The agent / broker may
serves as representatives of the firms’ products

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DUAL DISTRIBUTIONS
According to Kurtz and Boone in their book Principles of Marketing (2013), “Dual distribution refers to the
movement of product through more than one channel to reach the firms target market.” Business firms usually
adopt two or more channels to capture the entire market. This strategy is more applicable to medium and large
size of businesses where the company are able to pay corresponding channel expenses.

REVERSE CHANNEL
While traditional channels involves arrangements of goods and services from one place to another. Marketers
should not ignore the reverse channel which intended for return of good to the manufacturer.

FACTORS TO CONSIDER IN MARKETING CHANNEL STRATEGIES

1. MARKET FACTORS – marketers should consider markets capacity to purchase, geographical locations and
its normal order size.

2. PRODUCT FACTORS - marketers also consider the kind of product that the company will offer. Perishable
goods such as fresh fruits and vegetables, milk and fruit’s juice usually move to a short channel.

3. ORGANIZATIONAL FACTORS – organizations ability to manage its channels, broad product line, and
channel control.

4. COMPETITIVE FACTORS – companies with huge financial background, management and marketing need
less of the help of intermediaries. Company with strong finances will offer credit to small retailer, have their own
warehouses, and hire own sales force.

Supply chain management involves managing upstream and downstream value-added flows of materials, final
goods, and related information among suppliers, the company, resellers, and final consumers.

Major Logistics Functions

1. Warehousing – most companies store their goods while they wait it to be sold. A company must decide on
how many and what types of warehouses it needs and where they will be located. The company might use either
storage warehouses or distribution centers. Storage warehouses store goods for moderate to long periods. In
contrast, distribution centers are designed to move goods rather than just store them.

2. Inventory Management –Managers must balance the costs of carrying larger inventories against resulting
sales and profits. Many companies have greatly reduced their inventories and related costs through just-in-time
logistics systems which result in substantial savings in inventory-carrying and inventory-handling costs.
Companies using RFID know, at any time, exactly where a product is located physically within the supply chain.
“Smart shelves” not only tell them when it’s time to reorder but also place the order automatically with suppliers.

3. Transportation - The choice of transportation carriers affects the pricing of products, delivery performance,
and the condition of goods when they arrive—all of which will affect customer satisfaction. In shipping goods to
its warehouses, dealers, and customers, the company can choose among five main transportation modes: truck,
rail, and water, pipeline, and air, along with an alternative mode for digital products—the Internet. Multimodal
transportation involves combining two or more modes of transportation.

4. Logistics Information Management - Companies manage their supply chains through information. Channel
partners often link up to share information and make better joint logistics decisions. From a logistics perspective,
flows of information, such as customer transactions, billing, shipment and inventory levels, and even customer
data, are closely linked to channel performance.

Let us talk about PROMOTION!

PROMOTION
The fourth marketing mix variable – promotion. Promotions is the function of informing, persuading, and
influencing the consumer’s purchase decision (Kurtz and Boone 2013). Elements of Promotional Mix:

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1. PERSONAL SELLING – As Kotler (2018) stated, it is the personal interaction by the firm’s sales force for the
purpose of engaging customers, making sales, and building customer relationships.

2. PUBLIC RELATION – According to Kotler (2018), it involves building good relations with the company’s
various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events.

3. DIRECT and DIGITAL MARKETING - involves engaging directly with carefully targeted individual consumers
and customer communities to both obtain an immediate response and build lasting customer relationships.

4. SALES PROMOTION - includes coupons, contests, cents-off deals, and premiums that attract consumer
attention and offer strong incentives to purchase.

5. ADVERTISING - according to Kurtz and Boone (2013), “it is any paid, non-personal communications through
various media about a business firm, not – for- profit organization, product, or idea by identified sponsor in a
message intended to inform, persuade, or remind members of particular audience.”

ADVERTISING OBJECTIVES SPECIFIC GOALS

1. TO INFORM target customers about: 1. New Product

2. Product Function
3. Correct Usage
4. New Users
5. New Distribution
6. Price Adjustments

2. TO PERSUADE target customers about: 1. Brand Preference

2. Brand Switching
3. Urgency to buy now
4. Action to be taken (like phone-in-inquiry)

DO YOU KNOW that Advertising is maybe the first thing we see and hear in the morning. When we drive
along the high ways we see bill boards, when we read newspaper we see a lot of advertisement. Customers’
exposure to this means that advertisement is everywhere?

Advertising can be classified as:

1. PRODUCT – persuasive appeal about the product and services. It focus on the benefits of the product and its
components.
2. PIONEER – presents messages about a product class to motivate primary claim, like those focused to cars
in common.
3. COMPARATIVE – promotional strategy that emphasizing messages with direct or maybe indirect comparison
with product and or service to its closest competitors.
4. INSTITUTIONAL – an advertising campaign that promotes the ideas, concept, philosophy or good will of the
firms or organizations. Often related to public relation functions.
5. TRADE - strategy that design to stimulate resellers demand using trade media.
6. COOPERATIVE – two or more parties sharing the cost of an advertisement.

Types of Advertising Media

Advertising media are beneficial to the marketers in different ways. A marketers must decide which of the media
flat form to use to advertise the company product or services.

Advertising Strategy
Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the
target market’s attention and interest.

The message can be presented in the following execution styles.

1. Slice of life shows one or more “typical” people using the product in a normal setting.
2. Lifestyle shows how a product fits in with a particular lifestyle.
3. Fantasy creates a fantasy around the product or its use.

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 4. Mood or image builds a mood or image around the product or service, such as beauty, love, intrigue,
serenity, or pride.
5. Musical shows people or cartoon characters singing about the product.
6. Personality symbol creates a character that represents the product.
7. Technical expertise shows the company’s expertise in making the product.
8. Testimonial evidence or endorsement features a highly believable or likable source endorsing the
product. It could be ordinary people saying how much they like a given product.

Selecting Advertising Media

1. Determining reach, frequency, impact, and engagement 3. Selecting specific media vehicles
2. Choosing among major media types 4. Choosing media timing
Advertising Media can be classified into:
a. News Paper d. Television g. Cable TV f. Direct Mail j. Point of purchase
b. Magazines e. Outdoor h. Yellow pages k. Internet
c. Radio f. Direct Mail i. Transit Ads l. Mobile Phones

Broadcast Media
- Which transmit sounds or images electronically such as radio and television.
- It also engage in more senses than reading and adds as well as motion.

Types of Broadcast Media

1. RADIO
- It has the power to engage in the imagination and communicate on a more personal level than other
forms of media.
- Example: AM/FM Radio and Satellite
2. TELEVISION
- It tells stories, engages in emotions, create fantasies, and can have a great visual impact.
- It is also a good action medium since it demonstrates how things work.
- It brings brand images to life and adds personality to a brand.
3. PRINT

Classifications of Magazines
1. Consumer Magazines - are brought by the general public for information and/or entertainment.
2. Farm Publications - directed to farmers and their families.
3. Business Publications - published for specific businesses, industries, or occupations.

Classifications of Business Publications

1. Professional Publications – magazines directed at a specific professional groups such as National Law
Review for lawyers etc.
2. Industrial Magazines - directed at business people in various manufacturing and production industries.
3. Trade Magazines - targeted to wholesalers, retailers, dealers, and distributors among others.
4. General Business Magazines - aimed at executives in all areas of business such as Forbes, Fortune,
and Business Week.
5. Health Care Publication – targeted to various areas including dental, medical, nursing sciences and
hospital administration.

Types of Newspapers
1. Classified Ads - advertising to sell their personal goods and advertising by local businesses.
2. Daily Newspaper - published each week day in cities and larger towns across the country.
3. Weekly Newspaper - originate in small towns or suburbs where the volume of news cannot support a
daily newspaper.
4. National Newspaper – this is with national circulation such as Business Mirror or Business World.

4. FILMS
- Often called as a movie or motion picture. It is a story conveyed in moving images.
- It is produced by recording photographic images with cameras or by creating images using animation
techniques or visual effects.

FORMATS IN PRINT ADVERTISING

1. THE HEADLINE - Contains the words in the leading position in the advertisement – the words that will be
read first and are situated to draw most the attention. They are usually appear in larger type than other parts of

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the ad. The ultimate role of the headline is to attract attention, engage the audience, explain the visual,
lead the audience into the body of the ad, and present the selling message.
2. THE SUBHEADS - It is an additional smaller headline that may appear above the headline or below it. It
may also appear in the body copy. They are usually set smaller than the headline but larger than the body copy
or text. They generally appear in the boldface or italic type or a different color.
3. THE BODY COPY - It tells the complete story of the ad. It covers the features, benefits, and utility of the
product and/or service. It is set in a smaller type.
4. THE ILLUSTRATIONS - It is the photograph or drawing used in a print advertisement. Its primary function
is to attract attention, and to encourage a purchase of the advertised product. It should also tie the headline and
the copy.
5. THE SLOGANS/TAGLINES - Also called as taglines or theme lines. It provides continuity to a series of
ads in a campaign. It helps promotes a memorable positioning statement in the ads.
6. SEALS AND LOGOS
SEAL- is awarded only when a product meets standards established by a particular organization. -
These organizations are recognized authorities, their seals provide an independent, valued endorsement for the
advertiser’s product.
LOGO Types – are special designs of the advertiser’s company or product name. They appear in all company
ads and like trademarks, it give the product individuality and provide quick recognition at the point of purchase.

PERSONAL SELLING
Personal Selling is the oldest from of promotion. It involves face to face communication between buyers and
sellers. It may also take, video conferencing, over the phone that links between buyers and sellers.
Four Sales Channels
a. Over the counter Selling – selling in retail store, mostly over the counter sales are direct to customer.
b. Field Selling – a personal selling methods usually employs making sales calls on prospective and even
existing client at their offices and homes.
c. Telemarketing – a selling process which conducted by phone that serves two general functions sales and
service and serves two general markets – business and direct customers.
d. Inside Selling – a combinations of field selling strategy applies for inbound and outbound telemarketing
channels with a strong customer orientations.

Public Relations is a form of promotion activities of the company design to make favorable impressions or
image of the company to its stake holder.
There are two components of Public Relations:
1. Publicity – generations of news pertaining to person, product or organizations that appears in broadcast
or electronic media.
2. Public Affairs
Public Affair is part of public dealings deals with civic groups. It consist of two kinds
1. Lobbying – according to Medina (2008) it is “an attempt to persuade a government official to adopt
policies, procedures or legislations in favor of the lobbying group or organization.”
2. Community Involvement – a company initiative to create participations in community like
sponsoring community activities like sponsoring sport events , a musical show or scholarship
programs. Examples: SM Foundations, ABS – CBN Foundations, GMA Kapuso Foundations etc

SALES PROMOTION
Sales Promotion is a short term promotions offers reduce value of the product or services to arouse interest to
the buying public. Sales Methods includes consumer sales promotions and trade sales promotions.

Promotion methods:
a. Retailer Coupons c. Trading Stamps
b. Product demonstrations d. Point of purchase

Promotions techniques to encourage customers to buy new products:

a. Free samples b. Price-off coupons c. Money refunds

Sales Promotions devices:

a. Premiums c. Consumer contest
b. Cents – off offers d. Consumer sweepstakes

Sales promotions methods for re - seller:

a. Buying allowances c. Count and recount
b. Buy – back allowances d. Free merchandise

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Public relations involves building good relations with the company’s various publics by obtaining favourable
publicity, building up a good corporate image, and handling or heading off unfavourable rumours, stories, and
events.
Press relations or press agency involves the creation and placing of newsworthy information to attract attention
to a person, product, or service.
Product publicity involves publicizing specific products.
Public affairs involves building and maintaining national or local community relations.
Lobbying involves building and maintaining relations with legislators and government officials to influence
legislation and regulation.
Investor relations involves maintaining relationships with shareholders and others in the financial community.
Development involves public relations with donors or members of non-profit organizations to gain financial or
volunteer support.

The Role and Impact of P R

• Lower cost than advertising

• Stronger impact on public awareness than advertising
• Has power to engage consumers and make them part of the brand story

Major Public Relations Tools

• News - PR professionals find or create favorable news about the company and its products or people.
Sometimes news stories occur naturally; sometimes the PR person can suggest events or activities that
would create news.
• Special events - ranging from news conferences and speeches, brand tours, and sponsorships to laser
light shows, multimedia presentations, or educational programs designed to reach and interest target
publics.
• Written materials - to reach and influence their target markets. These materials include annual reports,
brochures, articles, and company newsletters and magazines.
• Corporate identity materials - an also help create a corporate identity that the public immediately
recognizes. Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms,
and company cars and trucks all become marketing tools when they are attractive, distinctive, and
memorable.
• Public service activities - Finally, companies can improve public goodwill by contributing money and
time to public service activities.

ADDITIONAL INFORMATION: Web and social media are also important PR channels. Web sites,
blogs, and social media such as YouTube, Facebook, Pinterest, and Twitter are providing new ways to
reach and engage people. As noted, storytelling and engagement are core PR strengths, creating buzz
marketing which plays well into the use of online and social media.

Direct and Digital Marketing - involve engaging directly with carefully targeted individual consumers and
customer communities to both obtain an immediate response and build lasting customer relationships.

• Digital and social media marketing: Using digital marketing tools to engage consumers anywhere,
anytime via their digital devices

• Digital age: Changing customers’ notions of convenience, speed, price, product information, service,
and brand interactions

• Omni-channel retailing: Creating a seamless cross-channel buying experience that integrates in-store,
online, and mobile shopping

• Online marketing refers to marketing via the Internet using company Web sites, online ads and
promotions, email marketing, online video, and blogs.
Marketing Web sites: Engage consumers to move them closer to a direct purchase or other
marketing outcome
Branded community Web sites: Present brand content that engages consumers and creates
customer-brand community

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 Online advertising: Appears while consumers are browsing online
Email marketing: Sending highly targeted, highly personalized, relationship-building marketing
messages via email
• Spam: Unsolicited, unwanted commercial email messages
Viral marketing: Videos, ads, and other marketing content that customers seek out or pass along
to friends

• Social media: Independent and commercial online communities where people congregate, to socialize
and share messages, opinions, pictures, videos, and other content
• Mobile marketing features marketing messages, promotions, and other content delivered to on-the-go
consumers through their mobile devices.
• Direct-mail marketing involves sending an offer, announcement, reminder, or other item directly to a
person at a particular address. Direct mail is well suited to direct, one-to-one communication.
• Catalog marketing is a form of direct marketing through print, video, or digital catalogs that are mailed
to select customers, made available in stores, or presented online.
• Telemarketing involves using the telephone to sell directly to consumers and business customers.
Marketers use outbound telephone marketing to sell directly to consumers and businesses and inbound
toll-free numbers to receive orders from television and print ads, direct mail, or catalogs.
• Kiosk Marketing – it is a touch screen technologies wherein product or service information and ordering
machines placed by companies.

OUTLINE OF LECTURE: MARKET ANALYSIS

Market analysis – a process of identifying your target market based on the possible market potentials. This
includes analyzing customers’ needs and wants, market trends, competitors, and the environment. Industry
trends is also important factors to consider in analyzing market. Marketing plans can’t but put together without
some form of analysis thru:

A. finding and measuring business opportunities

B. targeting and dividing market into niches
C. suggesting product placement and position in mind of consumer

Competitive Advantage – the result of a company matching a core competency to opportunities it has
discovered in the market place.

In analyzing target market, marketers need to understand this fundamentals of analyzing the target market:

Planning Marketing: Partnering to Build Customer Relationships

Marketing plays a key role in the company’s strategic planning in several ways:

First, marketing provides a guiding philosophy—the marketing concept—that suggests the company strategy
should revolve around creating customer value and building profitable relationships with important consumer
groups.

Second, marketing provides inputs to strategic planners by helping to identify attractive market opportunities
and assess the firm’s potential to take advantage of them.

Finally, within individual business units, marketing designs strategies for reaching the unit’s objectives.

Partnering with Other Company Departments

Each company department can be thought of as a link in the company’s internal value chain. That is, each
department carries out value-creating activities to design, produce, market, deliver, and support the firm’s
products.

The firm’s success depends not only on how well each department performs its work but also on how well the
various departments coordinate their activities.

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Marketers must find ways to get all departments to “think consumer” and develop a smoothly functioning value
chain. One marketing expert puts it this way: “True market orientation . . . means that the entire company
obsesses over creating value for the customer and views itself as a bundle of processes that profitably define,
create, communicate, and deliver value to its target customers…. Everyone must do marketing regardless of
function or department.”

Partnering with Others in the Marketing System

To create customer value, the firm needs to look beyond its own internal value chain and into the value chains
of its suppliers, distributors, and, ultimately, its customers.

Companies are partnering with other members of the supply chain to improve the performance of the customer
value delivery network. The customer value delivery network partners with each other to improve the
performance of the entire system in delivering customer value.

For example, Ford’s performance against Toyota depends on the quality of Ford’s overall value delivery
network versus Toyota’s. Even if Ford makes the best cars, it might lose in the marketplace if Toyota’s dealer
network provides a more customer-satisfying sales and service experience.

Figure 1: Managing Marketing Strategy and the Marketing Mix

Marketing strategy involves two key questions: Which customers will we serve (segmentation and targeting)?
How will we create value for them (differentiation and positioning)? Then the company designs a marketing
program—the four Ps—that delivers the intended value to targeted consumers.

At its core, marketing is all about creating customer value and profitable customer relationships.

Customer Value-Driven Marketing Strategy

The strategic plan defines the company’s overall mission and objectives. Thus, marketing strategy refers to the
marketing logic by which the company hopes to create customer value and achieve profitable customer
relationships.

Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its
control, which are product, price, place, and promotion.

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To find the best marketing strategy and mix, the company engages in marketing analysis, planning,
implementation, and control. Through these activities, the company watches and adapts to the factors and forces
in the marketing environment.

Figure 2. Managing Marketing: Analysis, Planning, Implementation, and Control

Managing the marketing process requires the four marketing management functions as illustrated in this figure.

They include analysis, planning, implementation, and control.

The company first develops company-wide strategic plans and then translates them into marketing and other
plans for each division, product, and brand.

Through implementation, the company turns the plans into actions.

Control consists of measuring and evaluating the results of marketing activities and taking corrective action
where needed.

Finally, marketing analysis provides the information and evaluations needed for all the other marketing
activities.

Situation Analysis -> STP -> Marketing Mix -> Implementation in the Market Place

Situation Analysis

The process of analyzing:

- Consumer characteristics & trends - Current and potential Collaborators
- Resources of the Company - The Context or environmental factors
- Current and potential Competitors

STP Marketing (Segmentation, Targeting and Positioning)

Market segmentation requires dividing a market into smaller segments with distinct needs, characteristics, or
behaviors that might require separate marketing strategies or mixes.

Market targeting (or targeting) - consists of evaluating each market segment’s attractiveness and selecting
one or more market segments to enter.

Differentiation - involves actually differentiating the firm’s market offering to create superior customer value.

Positioning - consists of arranging for a market offering to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers.

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Segmenting Consumer Markets

• Geographic segmentation - divides the market into different geographical units such as nations,
regions, states, counties, cities, or even neighborhoods.
• Demographic segmentation - divides the market into segments based on variables such as age, life-
cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
Segmenting Consumer Markets

Age and life-cycle stage segmentation - divides a market into different age and life-cycle groups.

Gender segmentation - divides a market into different segments based on gender.

Income segmentation - divides a market into different income segments.

• Psychographic segmentation - divides a market into different segments based on social class, lifestyle,
or personality characteristics.
• Behavioral segmentation - divides a market into segments based on consumer knowledge, attitudes,
uses of a product, or responses to a product.
Behavioral Segmentation

Occasions refer to when consumers get the idea to buy, actually make their purchase, or use the
purchased item.

Benefits sought refers to finding the major benefits people look for in a product class, the kinds of people
who look for each benefit, and the major brands that deliver each benefit.

User status: nonusers, ex-users, potential users, first-time users, and regular users of a product.
Marketers want to reinforce and retain regular users, attract targeted nonusers, and reinvigorate
relationships with ex-users.

Usage rate - means grouping markets into light, medium, and heavy product users.

Loyalty status - means dividing buyers into groups according to their degree of loyalty.

Segmenting International Markets

Companies can segment international markets using one or a combination of several variables.

 Geographic location: Nations close to one another will have many common traits and behaviors.
 Economic factors: Countries may be grouped by population income levels, or by their overall level of
economic development.
 Political and legal factors: Type and stability of government, receptivity to foreign firms, monetary
regulations, and the amount of bureaucracy.
 Cultural factors: Grouping markets according to common languages, religions, values and attitudes,
customs, and behavioral patterns.

Intermarket segmentation involves segmenting consumers with similar needs and buying behavior even
though they are located in different countries.

To be useful, market segments must be:

Measurable. The size, purchasing power, and profiles of the segments can be measured.
Accessible. The market segments can be effectively reached and served.
Substantial. The market segments are large or profitable enough to serve.
Differentiable. The segments are conceptually distinguishable and respond differently to marketing mix
elements and programs.

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Actionable. Effective programs can be designed for attracting and serving the segments.

Another way to analyze potential market is through the use of PESTL analysis. A PESTL analysis is composed
of Political, Economic Factors, Environment, Societal Trends, and Technological Developments. This is also
consider as external analysis of the firms where marketer has to take advantage. In analyzing external
environment one has to consider the possible effect of this factors to your marketing strategy once implemented.
Marketing must be profound enough to the possible upshot of your marketing strategy versus external analysis.

Political - Determines the extent to which the government may influence on certain industry. For instance:
government impose new taxes, tax policies, Fiscal policy, trade tariff etc.

Economic - Determines the economy’s performance that can directly affect the performance of the industry. For
instance, Inflation rate, foreign Direct Investment, Inflation Rate, economic growth and etc.

Social - These factors analyze the effect of social environment of the market. For example, cultural trends,
demographics, populations etc.

Technological - These factors pertain to innovations in technology that may affect the operations of the
business. Examples are, automation, research and development, technological awareness.

Legal - This factors have both internal and external sides of the business. For example are laws that affect the
operations of the business. Examples; consumer laws, safety standards, labor laws.

Environmental - These factors include all those that influence by the surrounding environment. Factors of
business environment are climate, geographical locations, global changes in climate etc.

CONDUCTING A SWOT ANALYSIS

In a SWOT analysis (or a situation assessment), you are going to identify your company’s Strength,
Weaknesses, Opportunities and Threats. Such an analysis is very important to the preparation of your plan and
to the success of your operation because it helps you focus on key issues. A SWOT analysis is a good auditing
tool to demonstrate whether a particular plan is working and to gauge the current market environment.

STRENGTHS– areas where the operation excels. Example: well-trained staff, good location, well-kept and clean
facilities, strong marketing abilities, high food quality, and service that exceeds customer’s expectations.

WEAKNESSES - barriers to success. Example: boring menu, dirty premises, poor quality products, poor
service, high staff turnover, poor reputation, limited abilities or resources for marketing.

OPPORTUNITIES – chances to increase revenue or decrease costs. Example: ineffective competitor, volume
discount with a reputable supplier, a new business opening in your area, an increased number of tourist
attractions.

THREATS – refers to the barriers that could prevent the company from reaching its objectives. Example:
increased number of competitors, a price war with a competitor, increased taxes, poor economic conditions, or
road construction that disrupts current traffic patterns.

STRENGHTS WEAKNESSES
Good Reputations Damage Reputations
Knowledge and experience New in the market
Quality Product Undifferentiated product
Affordable Price Brand Name
Good Locations Poor Quality

OPPORTUNITIES THREATS

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 Company Expansions Potential Entrants
Additional product line Competitors
Buy out competition Government Restrictions
More brand recognition Economic Situation
Products growing demand Inflation Rate
Expand new market Changing taste and preferences of
customer

Figure 3: SWOT Analysis: Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T)

Managing the marketing function begins with a complete analysis of the company’s situation. The marketer
should conduct a SWOT Analysis. This refers to an overall evaluation of the company’s strengths (S),
weaknesses (W), opportunities (O), and threats (T).

KEY TO REMEMBER: A firm must analyze factors in the external and internal environments it
faces throughout the strategic planning process. These factors are inputs to the planning process.
As they change, the company must be prepared to adjust its plans. Different factors are relevant
for different companies. Once a company has analyzed its internal and external environments,
managers can begin to decide which strategies are best, given the firm’s mission statement.

MARKETING STRATEGY – consists of the major decisions you must make about the segments of a market,
which one or ones you can profit by addressing, how to position your products and services in that market, and
why that market should buy your products and services.

- Involves the allocation of resources to develop and sell products or services that consumers will perceive to
provide more value than competitive goods
- Marketing requires a great deal of information about consumer needs
- Marketing research gives the marketing manager data needed to make decisions
- required because managers are often hundreds or thousands of miles distant from end users
- Market analysis is the only way firms can stay in touch with customers and their needs

DEVELOPING A MARKETING STRATEGY:

1. Select target market. 2. Determine product positioning. 3. Prepare value proposition.

ABOUT TARGET MARKETS:

 Avoiding Mass marketing, which means treating everyone in the market as having the same needs and
wants. This is good if what you sell truly appeals to everyone the same way; then you can do mass
production, mass distribution, and mass communication, and reap the economies of scale that these
things provide.
 Target Marketing – treats people as different from each other and tries to make a focused appeal to a
distinct portion of customers called “target customers or target market.”

REMEMBER:
1. If a company selects the wrong target market, all other marketing decisions are likely to be in
vain. 16
2. Careful and accurate target market selection is crucial to productive marketing efforts.
NARROWING THE FIELD:

1. Potential customers – those who may have an interest in your products and services.
2. Customers who can afford your product. – The wealthy people, businesses, etc
3. Customers to target – the specific target market or markets you plan to address.

SELECTING TARGET MARKETS:

 When you select target markets, you must consider two factors: the potential profitability of the target
market and your ability to address their needs and wants.
 In terms of the market segment’s profitability, a segment makes a good target market for you when it has
most of the following characteristics:
1. Large enough
2. Steady or growing in numbers, not declining
3. Not saturated with competitors
4. Able to be attracted with the promotion budget you can expend
5. Profitable enough, given the costs you must incur and the revenues you can obtain.
 In terms of your capability, a market makes a good target market for you when it has the most of the
following characteristics:
1. You have the capability to offer more value than competitors can offer: better food, better drink, or
better service.
2. Addressing this market fits in with your operation’s image or brand identity.
3. You have the means to reach the market segment with promotions.
4. You have the capital and other resources to enter, serve, and survive in the market segment

Undifferentiated Marketing

Using an undifferentiated marketing (or mass-marketing) strategy, a firm might decide to ignore
market segment differences and target the whole market with one offer.

This mass-marketing strategy focuses on what is common in the needs of consumers rather than on
what is different.

Differentiated Marketing

Using a differentiated marketing (or segmented marketing) strategy, a firm decides to target several
market segments and designs separate offers for each.

It hopes for higher sales and a stronger position within each market segment. But it also increases the
cost of doing business.

Concentrated Marketing

Using a concentrated marketing (or niche marketing) strategy, instead of going after a small share of
a large market, the firm goes after a large share of one or a few smaller segments or niches.

It can market more effectively by fine-tuning its products, prices, and programs to the needs of carefully
defined segments.

It can market more efficiently, targeting its products or services, channels, and communications
programs toward only consumers that it can serve best and most profitably.

Micromarketing- is the practice of tailoring products and marketing programs to suit the tastes

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 of specific individuals and locations.

Micromarketing includes local marketing and individual marketing.

Local marketing involves tailoring brands and promotions to the needs and wants of local customer
groups—cities, neighborhoods, and even specific stores.

Individual marketing - is the tailoring of products and marketing programs to the needs and preferences of
individual customers.

KEY NOTE: A marketing strategy consists of specific strategies for target markets, positioning, the marketing
mix, and marketing expenditure levels. It outlines how the company intends to create value for target customers
in order to capture value in return. In this section, the planner explains how each strategy responds to the threats,
opportunities, and critical issues spelled out earlier in the plan.

STRATEGIES FOR TARGET MARKETING:

1. CONCENTRATE ON ONE MARKET SEGMENT – this strategy enables you to supply a more limited set of
products and services (with the related limited facilities, equipment, and production requirements) and use a
limited variety of promotional methods. This strategy is the one usually selected by individual or small chain
restaurants having more limited funds. Also, it is the strategy to select when first entering a market. No national
chain starts as a national chain; it starts as a single restaurant.

2. SERVE MULTIPLE MARKETS WITH THE SAME PRODUCTS AND SERVICES – This strategy implies that
you are supposed to provide the same things to different target markets but use different promotional messages.
National restaurant chains use this strategy.

3. SPECIALIZE IN ONE THING – This means that you must only pick one thing and do it very well.

4. SERVE ONE MARKET SEGMENT WITH SEVERAL PRODUCTS – Using wealthy people as an example
target market serve more than just French haute cuisine; also serve Russian and Italian cuisine of the very best
quality.

POSITIONING PRODUCTS AND SERVICES IN THE MARKET

 Market positioning – refers to how you get your target market to notice your products and services and
consider them for purchase. You first simplify the message so harried customers can notice it among the
vast number of other messages they are receiving. Then you craft the message to highlight the unique
and special qualities of your products and services.
 A product position is the way the product is defined by consumers on important attributes
 A major consideration in market positioning is the power of being first – being the first to market or being
the first in market position. Both of these positions are stronger than all other positions. If you are first,
you have the advantage. However, how can you make your target market remain loyal to your product
just because you are in first place? This sounds weak. Rather, you should emphasize the qualities that
made you first.
 If you are not in first place with your product and cannot realistically attack the first place product, you
must use a different tactic. Find your own niche; that is, find an unoccupied position in the field of products
that you can fill. Differentiate your product from the competition. There are many ways to differentiate
your product: larger, faster, cheaper, higher quality, different features, bundled with something, bundled
with better things, time of day, age, location and convenience, to name a few.
 Yet another tactic is to give your product a better name, especially one that describes its salient qualities.
 Value Proposition – is a statement of the value your target customers will experience when they
purchase your products and services – how you expect target customers to assess the product and its
cost against the benefits they will receive. Generally, “value” means receiving more than was put out to
obtain the thing of value. When customers buy your food, they do so because they expect to receive
more in benefits than they invested in cash, time, or convenience.

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 Example: Magnolia’s dressed chicken became a bestseller in the wet market after wrapping the chicken
in plastic packaging with the Magnolia brand logo. It ensures fresh product since it is cleanly wrapped
and guaranteed the brand name of Magnolia.
 The question that the value proposition must answer for your target market is, “Are the benefits worth the
cost?” In other words, what benefits does your product provide that your target market considers worth
purchasing? Preparing your value proposition for each target market defines the way you are going to
promote your products and services to this market. It lays the foundation for many decisions, activities,
and expenses. However, before you get to those, you should prepare a marketing plan.

 Positioning maps show consumer perceptions of their brands versus competing products on important
buying dimensions.

Selecting an Overall Positioning Strategy

More for more positioning involves providing the most upscale product or service and charging a higher price
to cover the higher costs.

More for the same positioning involves introducing a brand offering comparable quality but at a lower price.

The same for less positioning can be a powerful value proposition—everyone likes a good deal.

Less for much less positioning involves offering products that offer less and therefore cost less. This involves
meeting consumers’ lower performance or quality requirements at a much lower price.

More for less positioning is the winning value proposition.

In the long run, companies will find it very difficult to sustain such best-of-both positioning.

Developing a Positioning Statement

Company and brand positioning should be summed up in a positioning statement.

The statement should follow the form: To (target segment and need) our (brand) is (concept) that (point of
difference).

REMEMBER: Customer engagement, value, and relationships are at the center of marketing
strategy and programs.

VITAL INFORMATION: Companies must find the game plan for long-run survival and growth that makes the
most sense given its specific situation, opportunities, objectives, and resources. This is the focus of strategic
planning—the process of developing and maintaining a strategic fit between the organization’s goals, capabilities
and its changing marketing opportunities.

MARKET – is the set of all actual and potential buyers of a product. In its’ original meaning, market was a
physical place where buyers and sellers gathered to exchange goods and services. To an economist, a market
is all the buyers and sellers who transact for a good or service.

 Sellers have not always practiced through this philosophy. Their thinking passed through three (3) stages:
1. Mass Marketing – the seller mass produces, mass distributes, and mass promotes one product to all
buyers. At one time, McDonalds produced only one size of hamburger for the entire market, hoping it
would appeal to everyone. The argument for mass marketing is that it should lead to the lower costs and
prices and create the largest potential market.
2. Product-variety Marketing – the seller produces two or more products that have different features,
styles, quality, and sizes and so on. Today, McDonalds offers regular hamburgers, Big Macs and quarter

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 pounders. The product line is designed to offer variety to buyers rather than to appeal to different market
segments. The argument for product-variety marketing is that consumers have different tastes that vary
over time. Consumers seek variety and change.
3. Target Marketing – the seller identifies market segments, selects one or more, and develops products
and marketing mixes tailored to each selected segment. Example: McDonalds developed salad line to
meet the needs of diet conscious diners.

Target Marketing helps sellers to find better marketing opportunities and allows companies to develop the
right product for each target market. Companies can adjust their process, distribution channels, and
advertising to reach each market efficiently. Instead of scattering their marketing efforts, they can focus on
buyers who have the greatest purchase interest.

The Marketing Plan

A marketing plan is document or a blueprint of company’s marketing strategy for the next years. It establish
business activities that Supports Company’s marketing objectives within the specified time frame.

- According to Philip Kotler (2003, pp. 115-116), marketing plans are developed for individual products, lines,
brands, channels, or customer groups. The marketing plan is one of the most important outputs of the marketing
process.

PURPOSE OF A MARKETING PLAN

1. Serves as a road map for all marketing activities of the firm for the next year.

2. Ensures that marketing activities are in agreement with the corporate strategic plan.

3. Forces marketing managers to review and think through objectively all steps in the marketing process.

4. Assists in the budgeting process to match resources with marketing objectives.

IMPORTANT NOTE: Marketing planning involves choosing marketing strategies that will help the company
attain its overall strategic objectives.

Market implementation is the process of turning marketing strategies and plans into marketing actions to
accomplish strategic marketing objectives. Whereas marketing planning addresses the what and why of
marketing activities, implementation addresses the who, where, when, and how.

Marketing Department Organization

The company must design a marketing organization that can carry out marketing strategies and plans.

1. Functional Organization. Under this organization, different marketing activities are headed by a functional
specialist.

2. A company that sells across the country or internationally often uses a Geographic Organization. Its sales
and marketing people are assigned to specific countries, regions, and districts.

3. A company with different products or brands may create a Product Management Organization. Under this
approach, a product manager develops and implements a complete strategy and marketing program for a
specific product or brand.

4. A Market or Customer Management Organization approach is best suited for companies that sell one
product line to many different types of markets and customers who have different needs and preferences.

5. Large companies that produce different products, flowing into many different geographic and customer
markets, employ a Combination of the functional, geographic, product, and market organization forms.

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More and more, companies are shifting their brand management focus toward customer management—moving
away from managing only product or brand profitability and toward managing customer profitability and customer
equity.

Marketing control refers to measuring and evaluating the results of marketing strategies and plans and taking
corrective action to ensure that the objectives are achieved. This may require changing the action programs or
even changing the goals.

Marketing return on investment or marketing ROI is the net return from a marketing investment divided by the
costs of the marketing investment. It measures the profits generated by investments in marketing activities.

ELEMENTS OF A MARKETING PLAN

 Executive Summary - is a short document or segment of a paper, created for business commitments,
that reviews a longer report or proposal or a group of related reports in such a way that prospective
readers can rapidly become accustomed with a huge body of material without having to read it all.

TIPS FOR WRITING THE EXECUTIVE SUMMARY

1. Write it for top executives.

2. Limit the number of pages to between two and four.

3. Use short sentences and short paragraphs.

4. Organize the summary as follows: Describe next year’s objectives in quantitative terms; briefly describe
marketing strategies to meet goals and objectives; identify the costs necessary as well as key resources
needed.

5. Read and reread before final submission.

 Current Marketing Situation - In this section, you describe your existing and potential markets – the
people who are in your market area. Some considerations include the number of existing customers, why
they are in your market area, a description of your returning customers, and a description of new
customers you hope to attract.

Target markets – these are based upon the type of restaurant and restaurant concept you have selected.
Market trends – it refers to the long-term increases or decreases in some factor outside your operation,
for example an increase or decrease in population, economy, competition, costs or prices, wages or
popularity of particular products. You must pay attention to those trends that might affect your operation.

Market growth – determine whether the target market is in a growth mode or a decline mode. If a market
is in a growth mode, you can aggressively market to this population and try to increase your customer
base. If a market is in decline, you may want to target your resources toward another area that has more
potential.

 Opportunity and issue analysis: An overall analysis of the firm’s internal and external environment.
This section discuss the firm Strengths, Weaknesses, Opportunities and Threats commonly called as
SWOT analysis.

 Objectives - Listing of what you want to attain in your marketing plan. Your marketing plan objectives
should deal with number of customers (probably by segment), total revenue, percentage of market to
capture, and average check, to name a few. Your marketing objectives should be in writing because
written objectives enable you to focus your energies on specific areas of your business. Your marketing
objectives should be reasonable, measurable and have a time frame.

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  Marketing strategy - Shape and reshape the company's businesses and products so that they yield
target profits and growth
 Action programs - A detailed program design to make the marketing strategy become feasible. It list
down programs intended to meet the marketing objectives
 Financial projections - A detailed financial assumptions of the company using the recommended
strategy. Usually express in a five year comprehensive financial projections.
KEY NOTE TO REMEMBER:

1. Using SWOT Analysis as a guide of where the firms stands in the market is important.
2. Most organizations use their own unique formats and terminology to describe the marketing plan.
3. Every marketing plan is, and should be, unique to the organization for which it was created.
4. The success of the marketing strategy depends on the feasibility of marketing implementation.
5. Creating and implementing a marketing plan allows the organization to achieve its marketing objectives
and its business-unit and corporate goals.
6. Although the creation of a marketing plan is an important milestone in strategic planning, it is by no means
the final step.
7. To succeed, a company must have a plan that is closely followed, yet flexible enough to allow for
adjustments to reflect the changing marketing environment.

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