Professional Documents
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Marketing Management Finals
Marketing Management Finals
Marketing Management Finals
SEGMENTATION
- Is a marketing process of dividing potential market into distinct and viable
units of consumers, and selecting one or more segments as a target
consumers to be reached with a specific and distinct marketing mix.
- (keywords on segmentation)
- Distinct because you are going to base your
segmentation on different characteristics such as
psychographic, demographic, geographic.
- Viable because the units should have a critical mass or
enough number of people in order for you to be able to
have a profitable business with that segment. So if that
segment does not have enough critical mass of
consumers then it may not be viable, because you do
not have enough consumers to purchase and consume
your products. (REMEMBER: you have sales goals to
achieve and if your segments are not viable, it will be
difficult for you to reach your sales goals)
- Note: you just don’t segment your target
or potential market just for the sake of
segmenting it and targeting the
consumers, you also derive benefits
from segmentation.
MARKET TARGETING
1.Satisfying customer needs provides focus for product development and marketing
strategy.
2. Targeting does not exclude consumers who do not fit the marketing
criteria.(demographic, geographic, psychographic etc.)
3. Marketing money and brand message and brand message are directed to the
consumers who are more likely to buy the product. Marketing money is the budget you
spend on marketing. ex: taste tests should be held in supermarkets.
4. Determining your target market list, the customers who have a need that the
benefits will fulfill.
What are the questions that you need to ask after you have determined your target
market?
● Are there enough customers or people in my target market?
● Will my target market really benefit from my product/service offering?
● Do I understand what drives my target to make decisions?
● Can my target market afford my product service offering?
● Can I reach my target market with my message?
CONCLUSION: You develop a profile of your target market and communicate with them
through effective advertising. Then you can be sure that if you know the profile of your target
market that your communication will be effective in the sense of cost, in the sense of
message and in the sense of accessibility.
Ways in successfully reaching and winning a market - when you reach a customer
you must win them a swell:
1. Brand positioning strategy - making sure that you expose the consumer to your
brand so they can experience and remember your product. Then you can win them
2. Product positioning strategy - the image of the company must match the product
portfolio. Must be diverse and well positioned in the market. The company and the
product should be positioned equally well
3. Competitive pricing strategy - product brands having a can only be used when
your product or brand has a good market reputation. You can price premiumly your
products and they will still buy because of reputation. Strategy based on the rep of
the product
4. Competitive positioning strategy - company offering is better than similar offering
in the market. Unique points must be pointed out accurately and use these
compelling differences to claim superiority of the product over competing brands.
Presumes that your offering is better than similar in the market
5. Leveraging outside experts for compelling market positioning strategies - use if
you cannot find the expertise, skills, knowledge, genius of experts to develop
effective and efficient go-to planning execution.
MARKETING MIX
Marketing mix are not meant to be enumerated, they are meant to be combined and
blended in order to get the desired response from the market and the desired response from
the market is purchase and consumption of your offering.
I. Product -
a. A product is anything one receives in an exchange including tangible (something you
can hold, received physically) and intangible assets (something you cannot hold
physically), expected benefits which may be a good, service, or idea.
b. Anything that is able to satisfy a want or a need.
c. Set of tangible attributes including packaging, color, price, quality, and brand, plus the
services and reputation of the seller.
2. Growth stage -
a. If the new product survives the introductory stage, it goes to the growth stage.
b. Sales grow at an increasing rate.
c. Many competitors enter the market
d. Profits are healthy.
e. Distribution is major key to success during the growth stage
f. Wholesalers, dealers,and retailers are acquired as they become your
customers.
g. Adequate distribution establishes a strong market position or presence.
h. Toward the end of the growth stage, prices begin falling (prices will stabilize
according to the charge set by competitors.) and profits peak.
3. Maturity stage -
a. Sales begin to level off (sales will stabilize, not increase much and not
decrease much)
b. Market approaches saturation (product is all over the place. product is
available anytime anywhere when consumer demand)
c. Marginal competitors start dropping out of the market (not the big competitors,
but the smaller ones because prices and profits continue to fall.)
d. Dealer margins also shrink resulting in less space for mature items. (most
profitable position is in the top most shelf, eyelevel)
e. Promotion to dealers (wholesalers, groceries and retailers) by marketers often
intensifies in order to retain loyalty. (give them credit, extra service,
promotional material)
f. Heavy consumer promotion is required to maintain market share.
4. Decline stage -
a. Sales drop as demand falls
b. Many competitors are out of the market
c. The rate of decline is attributed to the rapid change of consumer taste.
d. Substitute products are adopted
BRANDING
- Brand is a name, term, symbol, design, or combination of any of those to give identity
to the product and differentiates them from competitor’s product.
- Brand name is part of the brand that can be spoken including letters like y.n.c.a.,
NBA, PBA, UAAP, NCAA. so when you mention these letters, it stands for a
tournament. And numbers like 7/11.
- Brand marks may not be spoken (Yellow M of mcdonalds, Mermaid in starbuck, Bee
in Jollibee)
Purposes of branding
1. Identification
2. Facilitate repeat purchase and sales
3. Have a brand for new products to sell
Packaging
- Are containers to protect and promote a product and for convenient handling
Functions of packaging
1. To contain and protect products
2. To promote products
3. Facilitates product storage, product use, product handling
4. Packaging facilitates recycling and reduced environmental damage
Labeling
1. Persuasive labeling - focuses on promotional logos rather than consumer
information. nothing than just attracting consumers.
2. Informational labeling
a. Helps consumers make proper product selection and lower their doubts about
the product after the purchase.
b. You can attach a confidence tag. Labels of confidence that are attached:
- Durability
- Cleanability
- User friendly
- Low fat
- Diet
- Zero sugar
- No salt
- Reduced fat
- Reduced sugar
New products
- A product that is new to the world, market, producer, and seller.
- Why do we develop new products? We develop new products in order to sustain or
increase profits that include sales, increase market shares, and eventually profits.
d. Development - develops prototypes of the product together with the prototypes of the
product. Passed on to production so it can adjust its operation to produce a new product.
d. The company outlines a scratch of marketing strategy, sketch of
marketing strategy . Marketing strategies are specific actions in order
to market a new product.
e. The marketing division decides on the element of branding.
f. Marketing division promotes preliminary promotion price and
distribution strategies.
g. Technical feasibility of manufacturing the product is done as well as
the cause that is thoroughly examined.
h. Test marketing -
1. Product is introduced in a limited way to determine the reactions of the potential
customer/ consumers in a market situation.
2. The new product developed is tested in the marketplace where demographics and
purchasing habits reflect the overall market. (marketplace is the target locality where
your consumers are located)
3. The company should have good distribution in test markets or cities. (should have
many agencies in a test marketplace) (sampling is giving products free, test market is
selling products at a penetrating price.)
j . Commercialization - decision when the new market is made. What are the tasks to give
in commercialization
1. Ordering production equipment and raw materials and related materials _ wax paper,
poster
2. Start production rents
3. Building inventories and finished goods as well as raw materials
4. Shipping products to distribution points
5. Training the sales horse on product knowledge and pricing
6. Announcing the new product to the trade (your industry)
7. Communicate and advertise your product to consumers
Adoption process
1. AIDA - aid awareness, interest, desire
2. Expand AIDA - awareness to knowledge (information that has been understood by
the consumers)
3. After knowledge, goes to liking.
4. From liking general things you narrow down to your preference.
5. After preference, you develop conviction.
6. Purchase of product.
A new product needs to spread in the market, you need to diffuse. Diffusion of innovation,
information of the new product. Innovation is a product perceived as new by potential
adopters (consumers).
The diffusion process is the spread of new product service from the source of invention to its
ultimate users as adopters.
Adoption is the consummation of a product. Diffusion is the spread of the product through
consumers.
Product Management - Positions to direct the marketing effort in marketing the new product
or in marketing the product.
1. Brand manager - responsible for a single brand. Responsible for enabling the
product to fight in the market, positioning is high, recognizable, product and brand
image is good and acceptable.
2. Product manager - responsible for several brands within a product line or group.
(product line or product category - dairy products (butter margarine cheese cream
milk)
3. Category manager - responsible for multiple product lines (dairy, cooking oil,
beverages, coffee)
JUNE 16
Pricing Objectives
Profit oriented pricing objectives
a. Profit maximization - achieved if you are very wise at adding
your margin to the cost to produce the product, good or
service. The margin you add is what you will use to pay
operating expenses, taxes, and more. cost + margin = price.
The only thing that restricts you from adding a huge margin is
the competition.
b. Satisfactory profits - if we cannot get maximum profits then
we should at least be satisfied with satisfactory profit or profits
at a reasonable level.
c. Target return on investment - when owners of a company or
investors put money in a company, they expect an ROI. They
didn't donate the money, instead they expect money to grow.
Sales oriented pricing objectives - based on market share or on units sales (no. cans,
packages, boxes, etc.) not talking abt profit but about volume.
a. Market share - means the company’s product sales should be a percentage of the
total sales for the industry. (4 companies in the industry selling the same products as
you. ex. C1 - 1M, C2 - 2M, C3 - 3M, C4 (you) - 1M (Total market = 7M) 1M / 7M =
your relation of sales in the market. Indication of your shares in the market.
b. Sales maximization - sell as much as you can and ignore profits competition and
the marketing environment.
● This is temporary, used to sell excess inventory.
● When you want to sell old models before introducing old models.
c. Status quo pricing objectives - seeks to maintain existing prices or simply meet
competition by following the price leader in the industry.
Price Policy - initial price for a product and the intended direction for price movements over
the product life cycle. Also called pricing strategies:
1. Price skimming - charging the highest possible price because the product or service
is unique, one of a kind, novelty.
2. Penetration pricing - temporary pricing policy because initial price is low in order to
capture all price sensitive in the market so it can be accepted and consumed in the
market and when it gains popularity, you leave that penetration policy and go back to
regular pricing (cost + margin)
3. Value marketing pricing - offering target market a high quality product at a fair price
and with good service
4. Discount, allowances, and rebates -
a. Cash discounts - is a reduction in price offered to consumers or business
users or marketing channels in return for prompt payment.
b. Quantity discounts - multiple units purchased, get a price reduction. Could
also be purchased within a minimum purchase amount.
c. Cumulative quantity discount - applies to buyers total purchases majoring
specified period. Intended to enhance customer loyalty.
d. Functional discounts - price reduction to wholesalers and retailers for
performing channel functions. Channel functions:
Highlight, promote product to consumers seasonal discounts
e. Buying out of season merchandise - candles sa undas, christmas
decorations, swimsuits during not summer.
f. Promotional allowance - a payment to a dealer, wholesaler or retailer for
promoting or pushing your products.
g. Rebates - cash refund given to consumers for purchase of a product during a
specific period.
Geographic pricing - when you need to transport goods and products from one location to
another region.
1. FOB (fee on board) Origin Pricing - price tactic that requires buyer to absorb the
fee cost from shipping point.
2. Uniform delivered pricing - seller pays actual charges for the purchases flat rate
basis. (fixed price for delivery fee regardless of location).
3. Zone pricing - price you charge flat rate to all customers in a given zone. You create
your own “zone” and give appropriate rates for each zone.
4. Freight absorption pricing - the seller pays for the transport cost totally or partially
and not passed on to the buyer.
5. Base point pricing - incorporates the freight cost from a given point regardless of
city or town from which the goods are shipped.
Elements of promotion
○ Promotion is really communication. One element in the mix that enables you
to communicate or inform your market about your offerings.
○ Communication by the marketer that informs, persuades and reminds
potential buyers of a product or service to influence an opinion or/and elicit
their response.
Promotional strategies
● Advertising
● Personal selling
● Sales promotion
● Public relation
.
3. Reminding promotion - used to keep product and brand name in the public’s mind.
This promotion prevails during the maturity stage of the life cycle in order to trigger
memory.
5 phases of advertising
1. Determining the advertising objectives - what do you want (persuade, inform, or
remind)
2. Set an advertising campaign budget that should include the media (tv, radio) you're
going to use.
3. Determine the message to be transmitted to the target market.
4. Select the message vehicle- the message vehicle can either be an announcer or an
endorser, a popular personality.
5. You evaluate the campaign
6. Evaluating campaigns to know the ROI and effect of advertising onto your target
market.
2. Personal selling is a planned face-to-face presentation to one or more prospective
buyers for the purpose of making a sale.
3. Sales promotion is an activity that involves short term incentives to induce the purchase
of a good or service.
a. Coupons - incentive that entitles consumers to an immediate reduction of price when
they buy the product.
b. Premium - extra item offered to consumers in exchange.
c. Sampling- allows the customer to try a product risk free.
d. A point of purchase display- is a promotional display set up at the retailers’ location
to build traffic, advertise the product, or induce impulse buying. Examples: ads on
grocery carts and bags, TV monitors at supermarkets, shelf “talkers”.
Public Relations is the marketing function that evaluates public attitudes, identifies
areas within the organization that the public may be interested in, and executes a
program of action to each public understanding and acceptance.
2. Logistical functions
- transporting and delivering of goods, sorting out and accumulating, allocating,
and assorting products into homogeneous or heterogeneous collections.
For example, grading agricultural products is a process of sorting.
Handling goods
allocating is “breaking bulk”
assorting function is performed by supermarkets or other retailers.
3. Facilitating functions
Feedbacks
Extend Financing
Categories:
1. Full-service wholesalers assemble an assortment of products, provide credit
for clients, offer promotional help and technical advice, maintain a sales force
to contact customers, and deliver merchandise and may offer research,
planning, installation, and repair. They also offer fast delivery in emergencies.
2. General merchandise wholesalers stock a full assortment of products within
a product line. For example, a hardware wholesaler will stock a full array of
tools, paints, ropes, chains. These wholesalers are common in the drug,
grocery, and clothing markets.
3. Specialty merchandise wholesalers offer part of a product line to target
customers but in greater depth than general merchandise wholesalers offer.
These wholesalers have excellent product knowledge in their specialized line
of merchandise.
4. Industrial distributors are full-service merchant wholesalers that sell to
manufacturers rather than to retailers.
a. They stock products, such as: hardware products, office supplies,
equipment used in the operation of the business, machinery used in
making raw materials and semi-finished goods into finished products
(grinders, dryers)
5. Rack jobbers perform the merchant wholesalers’ functions and some are
usually carried out by the retailer, namely stocking non-food merchandise on
racks or shelves. They serve drug, grocery, and general merchandise
retailers. Rack jobbers typically sell on consignment.
Truck jobbers perform the functions of salesperson and delivery person. They
carry a limited line of semi-perishable merchandise, such as milk, bread,
snack foods, beer, and candy. Truck jobbers sell for cash. Their customers are
supermarkets, restaurants, and hotels.
6. Mail-order wholesalers sell goods by catalog to businesses, institutions,
government, and other organizations.
1. PLANNING
2. ORGANIZING
3. CONTROLLING
4. LEADING
Vision is actually a statement that desired resolution, but it is a very broad and
general statement and it is the eventual result that an organization or a company will
hope to achieve in a span of 10 to 20 years.
Mission which is the next lower step down. And as far as the specificity of the
decided result really just it tells us what major options?
Goals make the vision and mission seem to be a reality because now these goals
will require action and you can see specifically what, umm, what is done in order to
achieve results.
- It is in the level of goals where the continuing modules of work are identified.
- As far as the quantifications of your sales, the coverage of your sales, the
penetration of the market, the market share that you want to achieve, the
positioning that you want to achieve, all those are in the goals.
● CAPACITY - the ability to do work or the ability to deliver work or the ability to
produce.
○ map the optimum utilization of your current equipment and machines.
NOTE: Don't forget to budget for miscellaneous needs and for the wages and
salaries of your existing group of your existing personnel.
Characteristics of Budgets
1. Budgets must be based on annual goals and objectives.
2. It must be guided by the profit goals of the company.
3. it must be accepted, approved and understood by all organizational unit
heads of the company, particularly finance and human resources and
production.
4. Budget must be accurate and reflect up-to-date costs and price trends in the
market.
Barrier to delegation
1. job has to be done right
2. lack of confidence and trust in your employees
3. lack of self-confidence on the part of the supervisor
4. Fear of being called lazy
5. Vague task/work definition
6. fear of competition from the subordinates
7. reluctance in taking risks
8. lack of controls that provide early warning of problems with delegated tasks
4 MAJOR PROCESSES
1. Monitoring - overseeing, supervising performance of people
2. Measures - measure the actual performance of people
3. Deviation - when the actual performance of a person is not equal to the
requirements of the standard.
4. Recognize acceptable and good performance.
Note: (1) You monitor performance of people, (2) measure actual performance of
people against standards of performance,(3) you correct deviation from actual
performance to standard of performance, (4) recognize acceptable and good
performance.
LEVELS OF CONTROL
1. Strategic control
The top post control is a strategic control. Strategic control is done by the
Board of directors by the Chief Executive Officer and the President of the
organization because they are going to look at the overall performance of the
entire corporation.
2. Tactical Control
Tactical control are the controls done by the Department and division
managers after you win the Vice President and the things.
3. Operational Control
The operational control is the daily, weekly, monthly operational controls that
goes on in the organization. The KPI are: (1) Objectives (2) Delegated tasks
(3) special assignments given to each employees
Control Timing
1. Feed-forward Control - When you have stated your goals and objectives and
targets, those are feed forward control mechanisms already because they
already limit the activities and actions of people towards that goal towards
that. (e.g. Standards of Performance)
2. Concurrent Control - Monitors processes, Works in process, Actual
performances of people and adjusting ongoing activities, if necessary,
adjusting and correcting ongoing activities when necessary.
3. Feedback Control - Monitoring products and outputs and learning from past
mistakes,
Control Targets
1. Budgetary and financial controls
a. budgetary means that your budgets are, in themselves standards, they
are quantifications of conditions.
b. Financial controls are seen in your (1) cash flow statement - another
name for cash flow statement is sources and uses of funds. The cash
flow statement involves cash transactions only. a cash flow statement
is really to give you a measure of your cash movements in your
operations. (2) income statement or profit and loss statement -
shows you the profitability picture of the company that we're done with.
(3) balance sheet statement, balance sheet statement - will show
you how the company is growing.
2. Operational Control - Everything that happens in the operation of the
business.
3. Behavioral Control - the company norms and practices.
a. enforcement of policies done uniformly for everybody, regardless of
position or run in the company.
b. Are your grievances expressed? Are you free to express your
complaints, your problems in the workplace?
LEADING
Leading is a management function to inspire, enable, guide, impart knowledge and
skills, enhance understanding and acceptance, and admonish people in order to
achieve desired results.