CHAPTER 9

MARKETING STRATEGY
AND MARKETPLACE
RESEARCH
 MARKETING AND SMALL BUSINESS

THE MARKETING CONCEPT

MARKET STRATEGY PLANNING

AGENDA TARGET MARKETING

THE MARKETING MIX

TYPES OF MARKET RESEARCH

MARKET SHARE FORECASTING

WHAT IS MARKETING?

• Marketing is a functional area of management that when properly utilized

brings beneficial results. If the firm's management knows in advance the
needs of the market, then it will proceed to satisfy those needs with more
resolution. Knowing the needs in advance, however, will require a kind of
management that fully understands marketing.

• Marketing is defined as "the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods, and
services to create exchanged that satisfy individual and organizational
objectives".
 As applied to small business,
MARKETING marketing means identifying what
the customers want and satisfying
AND SMALL this want through the right product,
BUSINESS the right price, the right location, and
the right information.
 1.Who are my concept?

2. What products or service are required by my

costumer?
THE
MARKETING 3. At what price are the products or services required?

CONCEPT 4. At what place are the products or services required?

5. At what time are the products or services required?

6. How do the customers want the products or services delivered?

 Market strategy planning is an activity of small
business which seeks to find attractive
opportunities and develop profitable marketing
MARKET strategies. The strengths and weaknesses of the
business are recognized in strategy planning.
STRATEGY This is followed by an analysis of the external
environment which is useful in identifying
PLANNING attractive market opportunities.

A marketing strategy specifies the following:

1. The target market;
2. The applicable marketing mix; and
3. The size of the market area.
 Identify strengths and
weaknesses of business.

Analyze external
environment.

Identify attractive markets

opportunities

Identify target markets

Determine applicable
marketing mix

Determine size of
Figure 9.1. market area
The Market Strategy Planning Process
 Target marketing refers to the activity that
TARGET seeks “to identify a fairly homogeneous
MARKETING (similar) group pf customers to whom a
company wishes to appeal.”
The following steps are
undertaken target marketing:

1. Identification of the target

market,

2. Identification of the
characteristics of the target
market, and

3. Measurement of the size of

the target market area.
The following steps are
undertaken target marketing:

1. Identification of the target

market,
A target market is defined as the particular
2. Identification of the market segment the company wishes to serve.
This segment is singled out from an array of
characteristics of the target
market segments the firm has chosen to
market, and
explore.
3. Measurement of the size of
the target market area.
The following steps are
undertaken target marketing:

1. Identification of the target

market,
2. Identification of the
characteristics of the target
market, and
3. Measurement of the size of
the target market area.
To be able to serve the target market properly,
its characteristics must be known to the small
business operator. Relevant characteristics
will refer to any of the following: age, sex,
family size, family life cycle, income,
occupation, religion, race, and nationality.
The following steps are
undertaken target marketing:

1. Identification of the target

market, To effectively serve the target market, the
small business operator must know the
2. Identification of the following:
characteristics of the target
1. The number of potential customers, and
market, and
2. The population growth trend of the market
area.
3. Measurement of the size of
the target market area.
 The marketing mix, according to Boyd and
THE Walker refers to “the combination of

MARKETING controllable marketing variables that a

manager uses to carry out a marketing
MIX strategy in pursuit of the firm’s objectives in
a given target market.”
The marketing mix is a blending of the following controllable variables:

1. Product offering (including the breadth of the product line, quality levels, and
customer services);
2. Price;
3. Promotion (advertising, sales promotion and salesforce decision); and
4. Place (or distribution).
Four Variables in Marketing Mix
1. The Product Offering
The product offering must provide customers with value that
will be preferred over the competition.

2. The Price
The right price must be determined in relation to cost of
producing and selling the product.
Four Variables in Marketing Mix
3. The Promotion
Promotion refers to communicating information between the company and
potential buyers to influence buying attitudes and behavior.

Promotion may take the form of any of the following:

• Personal selling
1. Advertising
2. Sales promotion
Four Variables in Marketing Mix

4. The Place
The place refers to making products available in the right
quantities and locations, when customers want them.
 Knowing the needs of the target customers
TYPES OF will be very helpful in designing the right

MARKET marketing mix. To describe the customer, the

proper tool to use is market research.
RESEARCH Market research consists of two basic types,
namely:
1. Primary research; and
2. Secondary research.
Primary Research
• The firm could obtain data from customers directly or indirectly. Directly
contacting the customers is referred to as primary research. When a large
population is involved, the small business operator will be satisfied with using a
sample.

• Primary research may be undertaken by using any of the following techniques:

1. Telephone survey,
2. Mail survey, and
3. Personal interviews.
Secondary Research
• Secondary research is an alternative or a complement to primary research.

• The possible sources of secondary data are the following:

1. The company’s records,
2. Libraries, and
3. Government agencies.
 MARKET- In the preperation of the marketing plan, the
forecast of the company’s market share is an
SHARE important input. market share refers to “the
individual firm’s sales as a percentage of
FORECASTING total market sales.”
In determining the company’s probable market share, the following must
be undertaken:

1. define the physical limits of the target market area.

2. determine the porential sales of the target by considering its demograpgic
characteristics.
3. determin the purchasing power of the target market.
4. determine the total sales revenue of the industry in the target market area.
5. determine the persentage of the total sales that can be effectively served by the
company.
Market share figures, accourding to Bennett,
“are more difficult to obtain since they are
based on sales outside the organization.”
THAT’S ALL
THANK YOU... Presented by:
Johanna Salva Cortado
Rachel Ann Dalimet
Roselyn Jabien