CHAPTER I: OVERVIEW OF MARKETING: AN INTRODUCTION and quantified, and some new approaches to the explanation of

marketing knowledge.
Chapter Objectives ▪ 1940-1950 Period of Reappraisal. The concept and traditional
At the end of the chapter, the student is expected to: explanation of marketing was reappraised in terms of new needs for
• Explain the meaning of Marketing; marketing knowledge.
• Describe the stages of Marketing thought; ▪ 1950-1960 Period of Reconception. Traditional approaches to the
• Understand the behavioural concepts relevant to Marketing; study of marketing were supplemented by increasing emphasis upon
• Discuss the goals of Marketing; managerial decision making, the societal aspects of marketing, and

• Describe the traditional approaches to marketing; and quantitative marketing analysis.

• Identify and explain contemporary marketing approaches. ▪ 1960-1970 Period of Differentiation. As marketing expanded, new
concepts took on substantial identity as significant components of

Introduction the total structure of thought.

• Marketing started in the early part of the twentieth century (between ▪ 1970 Period of Socialization. Social issues and marketing became

1900 and 1910) out of questions and issues neglected by its mother much more important. It is the influence not of society upon

science, economics\ marketing, but of marketing upon society that became a focus of
interest.
• In the early years of study and teaching of trade practices, the word
“marketing” was not used. Instead, “trade,” “commerce,” and
What Is Marketing?
“distribution” were the common operations of the area to which the
Marketing is managing profitable customer relationships.
term “marketing” is identified today.

Goals
Stages of Marketing Thought
1. Attract new customers by promising superior value.
▪ 1900-1910 Period of Discovery. In the early years, teachers of
2. Keep and grow current customers by delivering satisfaction.
marketing sought facts about the distributive trades. The concept of
“marketing” occurred, thus, the terminology was given to it.
Marketing Defined
▪ 1910-1920 Period of Conceptualization. Many marketing concepts
A social and managerial process by which individuals and groups obtain what
were initially developed. Its concepts were classified, and terms
they need and want through creating and exchanging products and value with
were defined.
others.
▪ 1920-1930 Period of Integration. Principles of marketing were
postulated, and the general body of thought was integrated for the
OLD View of Marketing: Making a Sale – “Telling & Selling”
first time.
New View of Marketing: Satisfying customer needs
▪ Paul W. Ivey was the first to use as a book title Principle of
Marketing, although others and previously used “principles” in
Marketing as one of the Functions in Business Organization A simple
connection with advertising, retailing and credit granting.
business organization consists of the following functions:
▪ 1930-1940 Period of Development. Specialized areas of marketing
1) Finance and accounting,
continued to be developed, hypothetical assumptions were verified
2) Human resource management,
3) Production and materials management, and
4) Marketing The Marketing Mix
The marketing mix developed by E. Jerome McCarthy (McCarthy 1975:44)
Functions in Management consists of 4Ps – product, price, place, and promotion – all of which influence
The different functions of managers in a business organization are as follows: buyer’s decision and responses. Each Ps relates to and is dependent on every
• Planning, other Ps. The Ps are controllable variables that a company may use in
• Organizing, mapping a successful marketing strategy.
• Staffing,
• Directing/supervising, and Conceptual Approach

• Evaluating of personnel, plans and programs in the different This approach studies ideas of marketing rather than the activities of

departments of the company. marketing.

Its emphasis is on theoretical analysis and development of new concepts

Goals of Marketing whether of consumer, products, marketing institution, functions, processes, or

The four goals of a marketing system: policies.

• Maximize consumption, The concept of marketing is more important than the definition of marketing.

• Maximize consumer satisfaction, The conceptual approach is recognized when marketing is defined to bring out
various ideas for which “marketing stands.”
• Maximize choice, and
• Maximize life quality (Kotler 2000)
Systems (Holistic) Approach
A system is a set of interacting or interdependent groups coordinated to form
The Strategic 3Cs Concept
a unified whole and organized to accomplish a set of goals (Markin 1979:28).
3Cs Key Objectives
Thus, marketing is perceived as whole, interdependent units, the marketing
1. Customers To satisfy the needs, wants and expectations of target
process conceptualized as “flows” and the marketing structure as “systems”
customers.
(Bartels 1976:202)
2. Competition To outperform competition.
3. Company To ensure corporate health and profit. Marketing:

Contemporary Marketing Approaches With the maturation of marketing

thought, approaches to the analysis of marketing were advanced.
Marketing Management
The following are some of the approaches and concepts in marketing:
This concept is a managerial approach to marketing. It emphasizes marketing
1) Marketing mix
management as a decision making process and how decision makers,
2) Conceptual approach
specifically the marketing manager, handles specific marketing problems and
3) Systems or holistic approach
situations.
4) Marketing management
Marketing activities and strategies are evaluated and developed to achieve
5) Macro-marketing
specific management objectives. The approach establishes the position of the
6) Social marketing; and
“marketing manager” as a top- level position in a company’s organization.
7) Comparative marketing. (Llanes and Jurado: 1980)
Macro Marketing Approach
Macro Marketing is the study of marketing activities, institutions, and
processes from the national (societal) perspective. It looks at the aggregate
flow of goods and services in an economy to determine if it benefits the society
in terms of its resource consumption and environmental effects.

Social Marketing
Kotler and Andreason – Social Marketing as “differing from other areas of
marketing only with respect to the objectives of the marketer and his or her
organization. Seeks to influence social behaviours not the benefit the
marketer, but to benefit the target audience and the general society.

Comparative Marketing
Focus on the systematic study of similarities and differences between national
marketing systems across time, space and sectors for the purpose of theory-
building and theory.

References:

Principles of Marketing.[Link]
marketing-chapter-1-49586357
 CHAPTER 2
5. Treat customers as individual who are respected and valued.
CUSTOMER RELATIONSHIP: CUSTOMER SERVICE

6. Listen to customer.
OBJECTIVES

a) The learners shall be able to identify and describe relationship development 7. Build a strong brand identity.
strategies
8. Surround customers with valuable information by using emails, websites,
b) The learners shall be able to evaluate the effectiveness of customer’s content, social media, and other methods of outreach but do not be invasive.
relationship; and
9. The business must have a website.
c) Demonstrate situation that demands for customer relationship.

10. Reward loyal customers.

Customer Relationship is a marketing approach that focuses on creating an

on-going and long-term relationship with customers. 11. Nothing strengthens a bond more that appreciation.

Benefits in developing and implementing customer relationship 12. Create a blog about the business where discuss is more casual and
inviting.
1. Consistent customer experience

[Link] feedback Partnering with Other Company Departments

[Link] Profitability 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
[Link] advocate 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 to
5. Innovation its work but also on how well the various departments coordinate their
activities.
Strategies in Developing Customer Relationship
PARTNERING WITH OTHER MARKETING SYSTEMS
1. Make every customer interaction count
There are more companies nowadays that are partnering with other members
2. Follow-through on commitments and claims about products or services. of the supply chain – suppliers, distributor, and, ultimately, customers – to
improve the performance of the customer value delivery network. Competition
3. Develop Employees. no longer happens between individual competitors only. Rather, it happens
between the whole value delivery networks.
4. Offer benefits and product value that responds to the customer’s desires.
Lesson 3: Customer Service Strategy in the Philippine Business Customer Relationship: Customer Service. [Link]
Enterprise [Link]

CUSTOMER SERVICE is the act of taking care of the customer’s needs by

providing and delivering professional, helpful, high quality service and
assistance before, during, and after the customer’s requirements are met.

1. A vision for customer service

2. Assessing customer needs

3. Hiring for Service

4. Organizational goals for customer service

5. Customer Service Training

6. Employee Accountability

7. Rewarding Good Service

THE SUKI SYSTEM IN THE PHILIPPINES

SUKI SYSTEM is a system of patronage in which a customer regularly buys

their merchandise from a certain client.

SUKI – a partner system of doing business in the Philippines, wherein a

customer buys certain products from a particular vendor, who in turn offers
discounts and other perks for such exclusivity. Filipinos use the word suki to
refer to both buyers and sellers, indicating their equal roles and obligations in
an eponymous relationship

References
 CHAPTER 3 Strategic Marketing versus Tactical Marketing

MARKET OPPORTUNITY ANALYSIS AND CONSUMER ANALYSIS • This become the basis of long Term plan used in strategic marketing
• To accomplish the long term goal, marketers also develop short term
OBJECTIVES
action plan and do tactical marketing

• Distinguish between strategic and tactical marketing planning in

Strategic marketing considers the long-term goals of your company such as
terms of objectives and processes
expanding your business, exploring new demographics, or creating a new
• Discuss the components of microenvironment and macro
brand. Therefore, it needs the insight of your financial department who can
environment
analyse if you have adequate funds to realize your goals.
• Establish the purpose of market segmentation, targeting, and
positioning in creating marketing strategies Tactical marketing often involves generating leads, building websites, placing
ads, and following up. It includes advertising, sales promotions, and other
LESSON 1: STRATEGIC MARKETING VS. TACTICAL MARKETING
activities that directly support your strategic marketing plan. And because your
strategic marketing plan included establishing a budget, tactical planning
Strategic Planning is a broad process that can address the entire business,
preparation should take into account its financial limitations in carrying out
or a portion of the business such as marketing.
these activities.
Marketing planning is written based from strategic plans.
STRATEGIC PLANNING PROCESS

1. Defining the Corporate Mission

STRATEGIC PLANNING • According to Peter Drucker, it is time to ask some fundamental
questions such as:
Strategy is a plan for reaching a specific goal.
a. What is the business?

 In business, a strategy is a broad goal, such as increasing sales or market b. Who is the customer?
c. What is of the value to the customer?
share or creating a particular image for the business.
d. What will the business be?
 When creating marketing plans start with broad strategies and support the e. What should the business be?
with specific tactics.
• Good mission include:
Planning is the process of predicting future events and conditions and of
1. Industry scope
determining the best way to attain the goals and objectives of the organization.
2. Products and application scope

Strategic Planning is a management process of creating and maintaining fit 3. Competence scope

between the objectives and resources of the organization and the changing 4. Market- segment scope

market opportunities. 5. Vertical Scope

6. Geographical Scope

2. Environmental scanning
 Is the collection and interpretation of information about forces, events, and Six Components of Micro environment
relationships that may affect the future of an organization.
The Company
 It allows the company to constantly look for threats and opportunities before
they are fully apparent. Various groups in an organization like the top management, finance,
operations, human resourcing, research and development (R&D), accounting
3. Goal Formation
etc needs to be taken into account by the marketing management for
 In order to be effective, goals must be attainable, consistent,
designing the marketing plans. Marketing managers needs to work closely
comprehensive and intangible.
with them as that will help them to make decisions with broader strategies and
4. Strategy Formulation
plans. With marketing team taking the lead, other departments like
 Strategy describes the game plan for achieving those goals.
manufacturing, finance, legal and human resources takes the responsibility for
 Michael Porter provided three generic types for strategic thinking:
understanding the customer needs as well as creating customer value.
Overall cost leadership Differentiation Focus
Suppliers
5. Implementation
 The process is the putting of the marketing strategies and plans The suppliers are an important part of an organization’s overall customer value
into action delivery network. They are the ones who provide inputs to business like raw
6. Feedbacks and Control materials, parts, cutting tools, equipment etc. The quality and reliability of
 The internal and external environments of an organization are vendors are very essential for smooth functioning of business of any
constantly changing. organization. Marketing managers must have a control on the suppliers’
 Such changes can make the organization’s strategies obsolete. It availability and costs. Any shortage or delays of supplies, in terms of natural
is, thus, essential to periodically review, evaluate and control the disasters or other events can cause damage to sales in short run and lead to
strategies that the organization has been implementing. customer dissatisfaction in the long run.
 Timely evaluation and control would help managers take corrective
measures to keep everything on track. Marketing Intermediaries

The marketing intermediaries are also an important component for company’s

overall value delivery network. They include those individuals or firms who
help the company in promotion, sales and distribution of its goods to the final
buyers. Examples includes middlemen (agents or merchants) who help the
company find customers, physical distribution firms such as warehouses or
LESSON 2: THE MARKETING ENVIRONMENT transportation firms that help the company in stocking and moving goods from
their origin to the destination and marketing service agencies such as market
Micro environment refers to the environment which is in direct contact with
research and advertising firms.
company and affects the routine activities of business straight away. It is a
collection of forces or factors that are close to the organization and can
Competitors
influence the performance as well as the day to day activities of the firm.
Competitors are rivals who compete with the organization in market and marketers have special interest in the demographic environment because it
resources as well. According to the marketing concept, a company needs to consists of people and people are the driving force for development of
provide greater customer value and satisfaction that its competitors, in order to markets. The large and diverse demographics offer both opportunities as well
be successful. The marketers must not only try to simply adapt to the needs as challenges for businesses.
and demands of target customers, but also try to attain strategic advantage
against the competitors by positioning their products strongly in the market. Economic environment

General Public The economic environment consists of factors that can affect consumer
purchasing power as well as the spending patterns. As an example, it is not
The public refers to the group of people who have an actual or potential advisable for a company to start exporting its goods to a country before having
interest in company’s product or who can have an impact on the organizations examined the citizens spending patterns. Important economic criteria includes
ability to achieve its objective. There are seven types of publics identified in a GDP, GNI, Import duty rate, unemployment, inflation, spending patterns as
company’s marketing environment which includes financial publics, media well as the disposable personal income.
publics, government publics, citizen-action publics, internal publics, local
publics and general public. Natural environment

Customers It refers to the natural resources or physical environment that are required as
inputs by marketers or which is affected by the marketing activities. The
The most important actors in the company’s microenvironment are its ecological conditions have become a crucial factor to consider as the
customers. The whole of value delivery network aims to engage the target environmental concerns have grown strongly in the recent years. Example, air
customers and create strong relationships with them. There are five types of and water pollution, floods, droughts, etc.
customer markets that companies might try to target. These include consumer
markets, business markets, government markets, reseller markets, and the Technological environment
international markets.
Technology has a crucial influence in the macro environment. An organization
Macro environment refers to the major external and uncontrollable factors needs to perform a thorough research on the spread and use of technology,
that influence the decision making of an organization. A company does not before investing in any of marketing activities. The company needs to have an
operate alone in its business environment, but operates in a larger context. It understanding of the technology penetration as well as user interface
comprises of forces that provide opportunities, but at the same time also pose technology in the region and make plans accordingly for their communication
threats to company. and campaigns.

Six Components of Macro environment Political environment

Demographic environment The developments in the political environment strongly affect the marketing
decisions. This involves laws, government agencies, as well as the pressure
Demography can be defined as the study of human population in context of groups that can influence or give constrains to various individuals or
size, density, age, location, gender, race, occupation and other statistics. The organizations in a given society.
Cultural environment Marketing Process:

The cultural environment links to factors which affects the basic values, 1. Analysis of the Opportunities in the Market

preference, perceptions and behaviour of the society. Organizations needs to

2. Selection of the Target Market
understand the cultural beliefs and practices prevalent in society for marketing
decision making. Failure of companies in understanding foreign cultures can
lead to many cultural blunders. For example, a symbol having a positive 3. Development of Marketing Mix
meaning in one culture can have a negative meaning in some other culture.
The marketing mix is composed of the following four P’s.

01- Product: means any offering (goods or services) to the market by the
S T P
company.
Segmentation Targeting Positioning 02- Price: means the money paid by the customers to obtain the
Identifying similar Determining which Creating a concept to product.
groups of customers: groups of customers to appeal to the target
aim for and making market to occupy the
03- Place: means the efforts which ensure the availability of the product
dividing the market into
them the focus of the right spot in the mind of in the market to customers.
identifiable and distinct marketing programme target consumers
groups (segments) 04- Promotion: means all the efforts by the company that ensure the
sale of products to customers through better provision of information
about the advantages of the product.

4P’s of marketing mix are from the seller perspective. In certain cases the 4C’s
are replaced by the 4P’s which are

- Product means Customer Solution

- Price means Customer Cost
- Place means Convenience
- Promotion means Communication

3. Marketing Control Which the performance results of the marketing plans

and strategies are evaluated and necessary steps are taken to ensure the
accomplishment of overall marketing objectives of the company.
LESSON 3: MARKETING PLANNING

References
Planning is forecasting future events and identifying strategies to achieve
organizational objectives in the future. Market Opportunity Analysis and Consumer
Analysis.[Link]
Marketing Planning is the foundation for all marketing strategies decisions
[Link] and Macro Environmental
Marketing Plan set out how to put marketing strategy into practice. factors.[Link]
analyzed-companies-bobin-philip
 CHAPTER 4 2. Formal Product – This is the actual physical or perceived
DEVELOPING THE MARKETING MIX characteristics of the product including its level of quality,
special features, styling, branding and packaging.
OBJECTIVES
3. Augmented Product – These are the support items that
• Define a product and differentiates the product,
complete the total product offering such as after-sales
services, and experiences.
service, warranty, delivery and installation.
• Identify and describe the factors to consider
when setting prices and new product pricing
2 Types of Products:
and its general pricing approaches.
1. Consumer Products –wide array of manufactured good
• Discuss the structure of distribution channels, which are purchased for personal, family and/or
its functions, and nature of supply chain household purposes.
management.
2. Industrial Products – are goods that are sold to other
• Define and identify relevant promotional tools, businesses, and used to produce other goods.
namely, sales promotion, advertising, personal
selling, public relations, and direct marketing to Categories of Consumer Products:
create awareness and persuade the target
1. Convenience Products –products that appeal to a very
market.
large market segment

2. Shopping Products –products consumers purchase and

Lesson 1: Product
consume on a less frequent schedule compared to
Product is a key element in the overall market
convenience products.
offering. Marketing-mix planning begins with formulating
3. Specialty Products –products that are likely to carry a
an offering that brings value to target customers. This
high price tag relative to convenience and shopping
offering becomes the basis upon which the company
products.
builds profitable relationships with customers.
4. Unsought Products –products whose purchase is
unplanned by the consumer but take place as a result of
PRODUCT DEFINED
marketer’s actions.
Product is anything in the form of good,
service, or idea consisting of a bundle of tangible and
Categories of Industrial Products:
intangible attributes that can be offered to a market that
might satisfy a want or need and is received in exchange 1. Raw Materials – products obtained through mining,

for money or something else of value. harvesting, fishing, and other trades, that are key
ingredients in the production of higher-order products.
2. Processed Materials – these are products created
3 Components of a Product:
through the processing of basic raw materials.
1. Core Product – This is the end benefit for the buyer. The
3. Equipment –products used to help with production or
core product is what the buyer really buying.
operations activities.
4. Basic Components – products used within more linked with customers in terms of production and
advanced components. consumption and so it is said that service is inseparable.

5. Advanced Components –products that apply basic 4. Perishable – services are not a stock of fixed assets and
components to produce products that offer an important it is not possible store services in inventories.
function required within a larger product.
6. Product Component –products used in the assembly of a Experiences

final product though these could also function as stand-

Among these two extremes (goods & services), many
alone products.
goods-and-services combinations are possible.
7. MRO (Maintenance, Repair and Operating) Products –
Today, as products and services become more
products used to assist with the operation of the
commoditized, many companies are moving to a new
organization but are not directly used in producing goods
level in creating value for their customers. In order to
or services.
make a distinction of their offers, beyond just making
products and delivering services, they are creating and
Differentiate: Goods, Services and Experiences
managing customer experiences with their brands or
Goods Attributes
company.
1. Physical objects for which a demand exists Experiences have constantly been an essential
2. Their physical attributes are preserved over time part of marketing for some companies. Experiences
3. Ownership rights can be established come about whenever a company intentionally uses
services as the stage and goods as props to engage an
4. They exist independently of their owner
individual. Tangible goods and intangible services are
5. They are exchangeable
brought as one to create a memorable experience for
6. Unit ownership rights can be exchanged between
customers at a point in time.
institutions
Today, all kinds of firms are recasting their
7. They can be traded on markets traditional gods and services to create experience.
8. They embody specialized knowledge in a way that is Companies that market experiences become conscious
highly advantageous for promoting the division of labor that customers are really buying much more than just
Services Features products and services. They are buying what those offers
will do for them. “A brand, product, or service is more
1. Intangible – intangible things that are not physical objects than just a physical thing. Humans that connect with the
and only exist in connection to other things. brand add meaning and value to it,” says one marketing
2. Heterogeneous – heterogeneous refers to the executive. “Successfully managing the customer
multifaceted different experience that may had from a experience is the ultimate goal,” adds another.
single type of service is considered as a factor to
distinguish goods from services. PRODUCT LIFE CYCLE
3. Inseparable – services may be said to be inextricably As consumers, people purchase millions of
 products every year. Just like humans, these products In some cases, re- pricing the product by discounting it
have a life cycle. Older, long- established products can reach out to a target market that has normally seen
eventually become less popular, while in contrast, the the product as being just out of reach.
demand for new, more modern goods usually increases 3. Re-Branding – can be somewhat extreme approach to
quite rapidly after they are launched. extending its life cycle, but it can also be a valuable
Since most companies know the different method. This result in changing not only the packaging,
product life cycle stages, and that the products they trade but the name and total appearance of the product could
all have a limited life span, the majority of them will invest be changed also.
a lot in new product development in order to make 4. Expanding Abroad – in some cases, a product life cycle
certain that their businesses continue to grow. can only go so far in one place. Expanding the product in
a foreign country to reach out to a totally unserved
Four Stages of Product Life Cycle market can make longer the product life cycle on a
1. Introduction Stage – this stage of the cycle could be the different level.
priciest for company launching a new product.
2. Growth Stage – this stage is normally characterized by a THE PRODUCT MIX
strong growth in sales and profits. Product mix, also known as product assortment, refers to
3. Maturity Stage – at this stage, the product is established the total number of product lines that a company offers to
and the aim doe the manufacturer is now to keep the its customers.
market share they have built up. Firms ought to pick their product mix cautiously as they
4. Decline Stage – eventually, the market for a product will will need to generate a profit from each of the products in
start to get smaller. the product mix.
Firms may choose to split their product mix into
As that life cycle nears an end, the company groups knowns as product lines. A product line is a
must decide what to do. Decisions could be to retire the number of products grouped together based on similar
product altogether or extend the life cycle of the product characteristics.
through a number of strategies.

Four Dimensions of a Company’s Product Mix

Strategies in Extending the Product Life Cycle
1. Product Mix Width – the number of product lines in the
1. Re-Packaging – provides a way for the company to give product mix.
a mature product a new image, particularly if the
2. Product Line Length – the number of different products in
product’s earlier image has limited its target audience.
a product line.
Fresh packaging can draw in a new part of the market by
3. Product Line Depth– the number of subgroups the
tapping into that market’s visual preferences.
product line contains.
2. Discounting – designing a new pricing strategy does not
4. Product Consistency – pertains to how closely related
have to be a short-term alternative for a mature product.
product lines are to one another in terms of use,
 production and distribution. utilize the product strategy in strategic planning and
marketing to identify the direction of the company’s
Product line manager’s takes product line decisions activities.
considering the sales and profit of each items in the line Good product strategies either meet an existing
and comparing their product line with the competitors’ need with a quality solution or create a need by offering
product lines in the same markets. Product mix decision something so modern and special that customers decide
refers to the decisions about adding a new or getting rid they don’t want to live without it.
of any existing product from the product mix, adding a
new product line, lengthening any existing line, or Types of Product Strategies:
bringing fresh variants of a brand to enlarge the business 1. Product Positioning – placing a brand in that part of
and to boost the profitability. market where it will have approving acceptance
compared with competing brands.
1. Product Line Length– marketing managers have to settle
2. Product Elimination – cuts in the composition of a
on the best length of the product line by adding fresh items
company’s product portfolio by pruning the number of
or dropping existing items from the line. products within a line or by totally divesting a division or
2. Product Line Expansion
business.
a. Product Line Stretching Decision – takes place when a 3. Product Repositioning – reviewing the current position of
business adds fresh product to the product line and the the product and its marketing mix and seeking new
latest product types are of a higher or lower quality than position for it that seems more appropriate.
present products in the product line. 4. New Product – a set of the following alternatives: Product
i. Downward stretching means adding low-end items in the improvement/modification, Product imitation, Product
product line. innovation
ii. Upward stretching means adding high-end items in the 5. Product Overlap – competing against one’s own brand
product line. through introduction of competing products, use of
iii. Two-way stretching means stretching the line in both private labels and selling to original equipment
directions if an organization is in the middle range of manufacturers.
market. 6. Diversification– developing unfamiliar products and
b. Product Line Filling Decision–it means adding more markets through:
items within the present range of the product line. a. Concentric diversification – product/s introduced are
related to existing ones in terms of marketing or
technology
PRODUCT STRATEGIES b. Horizontal diversification – new product/s are unrelated
Product strategy is often called the roadmap of to existing ones but are sold to the same customers
a product and outlines the end-to-end vision of the c. Conglomerate diversification – product/s are entirely new
product and what the product will become. Companies
7. Product Scope–determined by taking into account the
 overall mission of the business unit. Internal Factors
8. Value Marketing–delivering on promises made for the 1. Marketing Strategy – Price is only one element of the
product or service. company’s broader marketing strategy. Thus, before

9. Product Design – deals with the degree of setting price, the company must settle on its overall
standardization of a product. marketing strategy for the product or service.
2. Objectives – Pricing may play an essential function in
helping to achieve company objectives at many levels. A
firm can set prices to draw new customers or profitability
Lesson 2: Pricing keep existing ones. It can set prices low to avoid
competition from entering the market. It can help continue
Pricing is one of the most important elements of
the loyalty and support of resellers or ignore government
the marketing mix, as it is the only mix, which generates a
intervention.
turnover for the organization. The remaining 3p’s are the
3. Marketing Mix – Price choices must be harmonized with
variable cost of the organization. It costs to produce and
product design, distribution, and promotion decisions to
design a product; it costs to distribute a product and
structure a reliable and valuable integrated marketing
costs to promote it.
program. Decisions prepared for other marketing mix
Price is a key element relating directly to total
variables may influence pricing decisions.
revenue and ultimately to the profit of the organization.
4. Other Organizational Considerations – Management
However, it is the most flexible component of the
must fix on who within the organization should set prices.
marketing mix.
Companies handle pricing in a variety of ways. In small
companies, prices are often fixed by top management
PRICING DEFINED
rather than by the marketing or sales departments. In
Price is the amount of money charged for a large companies, pricing is typically handled by divisional
product or a service. More broadly, price is the sum of all or product line managers. In industrial markets,
the values that customers give up to gain the benefits of salespeople may be permitted to bargain with customers
having or using a product or service. Traditionally, price within definite price ranges. Even so, top management
has been the major factor affecting buyer choice. sets the pricing objectives and policies, and it often
Although in recent years, non-price factors have gained approves the prices planned by the lower-level
increasing importance. management or salespeople. In industries in which
pricing is a key factor, companies usually have pricing
PRICE DETERMINANTS departments to set the best prices or help others in
Beyond customer value perceptions, costs, and setting them.
competitor strategies, the company must consider
several additional internal and external factors.
 External Factors NEW PRODUCT PRICING
1. Nature of the Market – Both consumer & industrial buyers Pricing strategies typically alter as the product passes through
weigh the price of a product or service against the its life cycle. The introductory stage is especially demanding.
benefits of possessing it. The seller’s pricing freedom Companies launching a new product and face the challenge
varies with different types of markets presenting a of setting prices for the first time. They can decide between
different pricing challenge for each. two broad strategies which are market-skimming pricing and
a. Pure Competition – market consists of many buyers and market-penetration pricing.
sellers trading in a uniform commodity.

b. Monopolistic Competition – market consists of many Market-Skimming Pricing

buyers and sellers who trade over a range of prices Many companies that create new products set high initial
rather than a single market price. prices to “skim” revenues layer by layer from the market. This
c. Oligopolistic Competition – market consists of not many is sensible under the following conditions:
sellers who are extremely responsive to each other’s 1. Product’s quality and image have to support its higher
pricing and marketing strategies. price, and sufficient number of buyers must desire the
d. Pure Monopoly – market only has one seller. product at that price.
2. Demand – Buyers are less price conscious when the 2. Costs of producing a smaller volume are not so high that
product they are buying is inimitable or when it is high in they can call off the advantage of charging some extra.
quality, prestige, or exclusiveness. Or substitute products 3. Competitors must not be able to penetrate the market
are hard to find or when they cannot easily compare the without difficulty and destabilize the high price.
quality of substitutes.
3. Economy – Economic conditions can have a strong Market Penetration Pricing
impact on the firm’s pricing strategies. Economic factors Companies set a low preliminary price to break in the market
like a boom or recession, inflation and interest rates affect fast and deeply to draw a large number of buyers quickly and
pricing decisions because they affect consumer spending, gain a huge market share. The high sales volume results in
consumer perceptions of the product’s price and value, declining costs, letting companies to trim down their prices
and the company’s costs of producing and selling a even more. Quite a few conditions have to be met for this low-
product. price strategy to succeed:
4. Other Environmental Factors – Companies should 1. The market must be extremely price conscious so that a
distinguish what impact its prices will have on other low price creates more market growth.
elements in its environment. The company must set
2. Production and distribution costs must decline as sales
prices that offer resellers a reasonable profit, push their
volume raises.
support, and assist them to sell the product well. The
3. The low price should assist ban the competition, and the
government is another vital external pressure on pricing
penetration price must preserve its low price situation. Or
decisions. Lastly, social concerns may require to be
else, the price lead may be merely short-term.
taken into consideration.
 1. Cost Plus Pricing – involves adding a certain percentage
GENERAL PRICING APPROACHES to cost in order to fix the price.
Demand-Oriented Approaches – consider the underlying 2. Break-Even Pricing – firm determines the level of sales
expected customer tastes and preferences more heavily needed to cover all the relevant fixed and variable costs.
than cost, profit and competition. 3. Experience Curve – the most experienced producer
1. Skimming – pricing strategy in which marketer sets a benefits from having lower costs than its competitors.
relatively high price for a product/service at first, then
Profit-Oriented Approaches – involves setting prices for products
lowers the price over time.
that will guarantee to make money on each sale.
2. Penetration –technique of setting a relatively low initial
price, often lower than the eventual market price, to 1. Target Profit – pricing method in which a seller sets

attract new customers. prices with the purpose to make a certain amount of
money.
3. Prestige – physiological pricing strategy that sets prices
of luxury products to the expectations of a niche class of 2. Target Return on Sales – setting typical prices that will

customers who associate higher prices with superior give companies a profit that is a specified percentage.

quality. 3. Target Return on Investment – one way of considering

4. Price-Lining – also referred to as product line pricing, is a profits in relation to capital invested.
marketing process wherein products or services within a Competition-Oriented Approaches – involve setting prices based
specific group are set at different price points. on competitors’ strategies, costs, prices, and market offerings.
5. Odd-even – psychological pricing where price is set based
1. Customary – some products where tradition, a
on customer’s perception of a significant difference in cost
standardized channel of distribution, or other competitive
between products priced at a whole number value and
factors dictate the price.
products priced slightly below this whole number.
6. Target – pricing method that involves identifying the price 2. Above, at or Below – subjective feel for the competitors’

at which product will be competitive in the marketplace. price or market price using benchmark.

7. Bundle – companies sell a package or set of goods or 3. Loss Leader – deliberately sells a product below its

services for a lower price than they would charge if the customary price to attract attention to it.

customer bought all of them separately.

8. Yield management – process of understanding,
Lesson 3: Distribution
anticipating, and influencing consumer behavior to
maximize yield or profits from a fixed, perishable Distribution channels consist of physical access point where
resource. the product is provided to customers and the methods of
transporting or storing goods before making them available
for clients. They also refer to the sales channels used, like
Cost-Oriented Approaches – the cost side of the pricing is given
online or via shops and distributors or other intermediaries.
emphasis not the demand side.
 STRUCTURE OF DISTRIBUTION CHANNELS FUNCTIONS OF DISTRIBUTION CHANNELS
Distribution function of marketing is comparable to the place
1. Information Provider
component of the marketing mix in that both center on getting
the goods from the producer to the consumer. A distribution 2. Price Stability

channel in marketing refers to the path or route through which 3. Promotion

goods and services travel to get from the place of production 4. Financing
or manufacture to the final users. 5. Title
6. Help in production function

Business-to-business (B2B) distribution occurs between a 7. Matching demand and supply

producer and industrial users of raw materials needed for the 8. Pricing
manufacture of finished products. 9. Standardizing transactions
10. Matching buyers and sellers
Business-to-customer (B2C) distribution occurs between a
producer and final user.
CHOICE OF DISTRIBUTION CHANNELS
The choice of distribution channels is a vital decision. Aside
Four Main Types of Marketing Channel from being the link between producers to buyers,
Producer - Customer – producer sells the goods or provides distribution channels provide the means in executing the
the service directly to the consumer. Bakery sells cakes marketing strategy.
and pies to customers. There are three considerations in the choice of
distribution channels and intermediaries. Channel and
Producer - Retailer - Consumer – purchases are made by intermediaries that will:
the retailer from the producer or manufacturer and then 1. Offer the best coverage of the target market – knowing
the retailer sells the merchandise to the consumer. the density or the number of stores in a specific place.
Works best for manufacturers of shopping goods.
a. Intensive Distribution – company tries to place its
products and services possibly in many outlets.
Producer - Wholesaler/Distributor - Customer –
b. Exclusive Distribution – only one outlet carries the
wholesalers buy the products from the manufacturer/distributor and
company’s products in a particular place.
sell them to the consumer.
c. Selective Distribution – company picks a few retails
outlets in a particular place to distribute its products.
Producer - Agent/Broker - Wholesaler or Retailer - 2. Best satisfy the buying requirements of the target market
Customer – involves more than one intermediary before product – channel and intermediaries need to satisfy at least
gets into the hands of the consumer. Fishermen contact an agent, some of the interests buyers would desire to be fulfilled
agent then distributes the fish to the wholesalers, and wholesaler’s when they buy a company’s products or services.
sells to the consumers. a. Information – vital requirement when buyers have
 restricted knowledge or wants particular data regarding a 1. Customer Relationship Management
product or service. 2. Customer Service Management
b. Convenience – means less hassle. Channel and 3. Demand Management
intermediaries must be proximate or driving time to reach
4. Order-fulfillment
is at a minimum.
5. Manufacturing Flow Management
c. Variety – reflects buyer’s interests to have numerous
6. Supplier Relationship Management
choices of competing and complementary products.
7. Product Development and Commercialization
d. Attendant Services – requirement for intermediaries of
8. Returns Management
large home appliances that needs delivery, installation
and credit.
Logistics Components of the Supply Chain
3. Be most lucrative – being profitable is determined by
Logistics is the strategic managing of the efficient flow and
profit margins earned for each channel member and for
storage of raw materials, in-process inventory and
the channel as a whole.
finished goods from the point of origin to point of
consumption.
NATURE OF SUPPLY CHAIN MANAGEMENT
A supply chain consists of the various firms included in
1. Sourcing and Procurement – lessen the costs of raw
executing the activities needed to produce and transport
materials and supplies, buyers and sellers can develop
a product or service to consumers or industrial users.
cooperative relationships that lessen costs and improve
Supply chain management (SCM) – is the supervision of
efficiency with the aim of trimming down prices and
materials, information, and finances as they move in a
increasing profits.
process from supplier to manufacturer to wholesaler to
2. Production Scheduling – goods are scheduled and
retailer to consumer.
produced based on past sales and demand and then
sent to retailers to resell.
Main Goals of Supply Chain Management
3. Order Processing – processes requirements of the
1. Shared Efficiency
customer and sends the information into the supply chain
2. Optimized Transportation and Logistics
through the logistic information
3. Quality Improvement 4. Inventory Control – develops and maintains enough
4. Long-Term Stability variety of materials or products to meet a manufacturer’s
or consumer’s demands.
Key Processes of Supply Chain Management 5. Warehousing and Materials Handling – storage aids
Business process consists of bundles of interlinked activities manufacturers manage supply and demand or
that stretch across firms in the supply chain. They are production and consumption.
key areas that some or all of the involved firms are 6. Transportation – concerns the decision on the mode of
continuously working to reduce costs and generate transportation that will move the goods from supplier to
earnings for everyone in the supply chain management.
 producer and from producers to customers. portable printed medium.
a. Cost – the total amount of charge by the carrier to move 2. Guerrilla Advertising – broadly used term for anything
the product from point of origin to destination. unconventional and usually encourages the consumer to

b. Transit Time – the total time for the carrier to pick-up, participate or interact with the piece in some way. Flash
delivery, handling and movement from point of origin to mob is one perfect example.
destination. 3. Broadcast Advertising – a mass-market form of

c. Reliability – consistency of the carrier on delivering the communication comprising of television and radio.

goods on time and satisfactory condition to. 4. Outdoor Advertising – also known as out-of-home (OOH)

d. Capability – ability of the carrier to provide applicable advertising, this is a broad term that describes any type

equipment and conditions for moving the goods of advertising that gets to the consumes when they are
outside of the home.
e. Accessibility – ability of the carrier to transport the goods
5. Public Service Advertising – are mainly designed to
a particular route or network.
enlighten and educate instead of to sell a product or
f. Traceability – relative ease that a shipment of goods can
service.
be located and transferred.
6. Product Placement Advertising – promotion of branded
goods and services within the context of a show or movie,

Lesson 4: Promotion instead of an explicit advertisement.

7. Cellphone and Mobile Advertising – latest form of
Promotion is all the communication methods used by a advertising, one that’s spreading fast, uses cellphones,
company to inform both customers and prospects about their iPads, Kindles, Nooks and other portable electronic
products or services. devices.
8. Online Advertising (Digital) – internet users see an
PROMOTIONAL MIX TOOLS advertisement via the Internet (World Wide Web). There
Promotions refer to the entire set activities, which are ads on this very page, and most other websites
communicate the product, brand or service to the user. being visited, as they are the prime revenue driver for the
The idea is to make people aware, attract and induce to Internet.
buy the product, in preference over others.
Sales Promotion
Advertising Sales Promotion is the process of persuading a possible
Advertising is bringing a product or service to the customer to purchase the product. Sales promotion is
attention of potential and current customers. Every single designed to be used as a short-term tactic to boost sales.
tactic available to the advertiser falls into one of the 1. Money Off Coupons – customers receive coupons or cut
following: coupons out of a newspapers or a product’s packaging
1. Print Advertising – an advertisement printed on paper, be that enables them to purchase the product next time at a
it newspapers, magazines, newsletters, booklets, flyers, reduced price.
direct mail, or anything else that would be considered a 2. Competitions – buying the product will let customer to
 take part in a chance to win a prize. Public Relations
3. Discount Vouchers – a voucher works like a money-off Public Relations include ongoing activities to ensure the overall
coupon. Examples would be Gold’s gym tied up with company has a strong public image. Public relations activities include helping
Metrodeal offering vouchers for membership services at the public understand the company and its products.
a discounted rate. Public relations involve cultivation of favorable relations for
4. Free Gifts – it is a free product when customers buy organizations and products with its key publics through the use of a variety of
another product. communications channels and tools. These days, the role of public relations

5. Point of Sale Materials – posters or display stands, ways is much broader and includes:

of presenting the product in its best way or show the 1. Building awareness and a favorable image for a company or client

customer that the product is here. within stories and articles found in relevant media outlets

6. Loyalty Cards – customer earn points for buying certain 2. Closely monitoring numerous media channels for public comment
goods or shopping at certain retailers that can later be about a company and its products
exchanged for money, goods, or other offers. 3. Managing crises that threaten company or product image
4. Building goodwill among an organization’s target market through
Personal Selling community, philanthropic and special programs and events
Personal Selling is a promotional method in which the sales
person uses skills and techniques for building personal Like other aspects of marketing promotion, public relations is used to
relationships with another party (those involved in a purchase address several broad objectives including:
decision) that result in both parties obtaining value. 1. Building Product Awareness

Personal selling is a strategy that salespeople use to 2. Creating Interest

convince customers to purchase a product. The 3. Providing Information

salesperson uses a personalized approach, tailored to 4. Stimulating Demand
meet the individual needs of the customer, to 5. Reinforcing the Brand
demonstrate the ways that the product will benefit him.
1. Ask Questions – salesperson needs to know why the Marketing have at their disposal several tools for carrying out public relations.
customer is interested in the product or service. The key tools available for PR include:
2. Address Concerns – salesperson should ask the 1. Media Relations – efforts to publicize products or the company to
customer to share any concerns he has about the members of the press such as TV and radio, newspaper,
product or service. magazine, newsletter and Internet.
3. Ask for the Sale – salesperson can directly ask if the a. Press Kits – information such as a news release,
customer has decided to buy the company’s product or organization background key spokesperson biographies
service. b. Audio or Video News Releases – prerecorded features
4. Follow-up – a good salesperson always follow-up with distributed to news media that may be included within
both prospects and clients subsequent to making a media programming.
presentation.
 c. Matte Release – small local newspapers may accept References
articles written by companies often as filler material when
their publication lacks sufficient content. Principles of Marketing by Prof. Angelita Ong Camillar-

d. Website Press Room – online press room that caters to Serrano, DBA.

media needs and provides company contact information

[Link]
2. Media Tours – new products can be successfully publicized when [Link]
launched with a media tour.

3. Newsletters – marketers who captured names and addresses of

customers and potential customers can use a newsletter for
regular contact with their targeted audience.
4. Special Events – these run the range from receptions to elegant
dinners to stunts.

5. Speaking Engagements – speaking before industry conventions,

trade association meetings, and other groups provides an
opportunity for customers.
6. Sponsorships – companies and brands use sponsorships to help
build goodwill and brand recognition by associating with an event
or group.
7. Employee Communications – for many companies communicating
regularly with employees is important in keeping employees
informed of corporate programs, sales incentives, personal issues,
as well as keeping them updated on new products and programs.
8. Community Relations and Philanthropy – for many companies
fostering good relations with key audiences includes building
strong relationships with their regional community.

DIRECT MARKETING
Direct Marketing occurs when businesses address customers
through a multitude of channels, including mail, e-mail, and phone and in
person. Direct Marketing messages involve a specific “call to action”, such
as “Call this toll-free-number” or “Click this link to subscribe.” The results of
such campaigns are immediately measurable, as a business can track how
many customers have responded through a message’s call to action.
 CHAPTER 5 10. Whch of the following has not contributed to the deeper more
interactive
5. Frequent flyer programs offered by airlines are an example of a nature of today’s customer relationship?
_____. a. E-mail
a. Basic customer relationship b. Online social network
b. Club marketing program c. Traditional advertising
c. Consumer relationship management technique d. Web sites
d. Frequency marketing program
6. Greater consumer control means that companies must rely on Test II: DIRECTION: Write TRUE if the statement is correct and FALSE if
marketing by _____ and than by _____. it is not.
a. Inspiration, competition _____________1. According to the text, marketing means “selling” or
b. Interaction, intrusion “advertising”.
c. Interruption, involvement _____________2. Marketing plays an essential role in creating customer
d. Producing, selling satisfaction.
7. In addition to attracting new customers and creating transactions, _____________3. Marketing discourages the development and spread of
the new
goal of marketing is to _____customers and grow their business. ideas, goods, and services.
a. Educate _____________4. Actually making goods or performing services is called
b. Encourage marketing.
c. Entertain _____________5. Marketing is both a set of activities performed by
d. Recognized organizations and a social process.
8. The product concept says that a company should _____ MANAGING THE MARKETING EFFORT
a. Devote its energy to making continuous product
(The Marketing Process)
improvements.
b. Focus on the target market and make products that meet
those customer’s demands.
c. Improve marketing of its best products
d. Make promoting products the top priority
9. The ultimate aim of customer relationship management is to
produce____
a. A reliable database
b. Customer equity
c. Market share
d. Profits
OBJECTIVES needed for each business, product, or brand. A marketing strategy consists of
specific strategies: target markets, positioning, the marketing mix, and
After finishing this module, you are expected to:
marketing expenditure levels. Marketing Planning

• Analyse the Marketing Process

Marketing Implementation
• Organizing, Implementing, and Controlling the Marketing Effort
Marketing implementation is the process that turns marketing plans into
Market Analysis marketing actions in order to accomplish strategic marketing objectives.
Implementation involves day-to-day, month-to-month activities that effectively
In today’s fast-paced business world, the ability to effectively manage the
put the marketing plan to work. Implementation addresses the who, where,
marketing process from beginning to end has become an extremely important
when, and how. In an increasingly connected world, people at all levels of the
competitive advantage. Successful companies know how to adapt to
marketing system must work together to implement marketing strategies and
continuously changing marketplace through market analysis and planning and
plans.
careful management of the marketing process.
Successful marketing implementation depends on how well the company
blends its people, organizational structure, decision and reward systems, and
THE MARKETING PROCESS
company culture into a cohesive action program that supports its strategies.
Marketing is an on-going business process that consists of four distinct stages Finally, to be successfully implemented, the firm’s marketing strategies must fit
which are analysis, planning, implementation, and control. with its company culture – the system of values and beliefs shared by people
in the organization.
1. Analysis- entails the gathering qualitative data about the company’s product
and possible markets.
Marketing Department Organization
2. Planning- involves constructing strategies that the company can put into
The company must design a marketing organization that can carry out
action to attain results in the target market.
marketing strategies and plans. The most common form of marketing
3. Implementation- the success or failure depends more or less on the work
organization is the functional organization. Under this organization functional
prepared in the analysis and planning stages.
specialists head the various marketing activities.
4. Control- company needs to be responsive of changing market conditions,
A company that sells across the country or internationally often uses a
competitors and customers and fine-tune the marketing strategies for that
geographic organization. Companies with many very different products or
reason.
brands often create a product management organization. A product manager
develops and implements a complete strategy and marketing program for a
Marketing Analysis
specific product or brand. For companies that sell one product line to many
Managing the marketing function begins with a complete analysis of the
different types of markets and customers that have different needs and
company’s situation. The company must analyse its markets and marketing
preferences, a market or customer management organization might be best.
environment to find attractive opportunities and avoid environmental threats.
A market management organization is similar to the product management
The marketer should conduct a SWOT analysis, by which it evaluates the
organization. Market managers are responsible for developing marketing
company’s overall strengths, weaknesses, opportunities, and threats.
strategies and plans for their specific markets or customers.

Marketing planning involves deciding on marketing strategies that will help

the company attain its overall strategic objectives. A detailed marketing plan is
Large companies that produce many different products flowing into many References

different geographic and customer markets usually employ some combination

Managing the Marketing Effort.[Link]
of the functional, geographic, product, and market organization forms.
marketing-effort.
Many companies are finding that today’s marketing environment calls for less [Link]
focus on products, brands, and territories and more focus on customers and Managing-the-Marketing-Effort
customer relationships.
More and more companies are shifting their brand management focus toward
customer management.

Marketing Control
Marketing control involves evaluating the results of marketing strategies and
plans and taking corrective action to ensure that objectives are attained.
Operating control involves checking ongoing performance against the annual
plan and taking corrective action when necessary. Its purpose is to ensure that
the company achieves the sales, profits, and other goals set out in its annual
plan.
Strategic control involves looking at whether the company’s basic strategies
are well matched to its opportunities. A major tool for such strategic control is
a marketing audit. This is a comprehensive, systematic, independent, and
periodic examination of a company’s environment, objectives, strategies, and
activities to determine problem areas and opportunities.

Measuring and Managing Return on Marketing Investment

Marketing managers must ensure that their marketing dollars are being well
spent. Many companies now view marketing as an investment rather than an
expense. Marketers are developing better measures of return on marketing
investment (Marketing ROI) – the net return from a marketing investment
divided by the costs of the marketing environment.
A company can assess return on marketing in terms of standard marketing
performance measures, such as brand awareness, sales, or market share.
Some companies are combining such measures into marketing dashboards –
useful sets of marketing performance measures in a single display.
Increasingly marketers are using customer-centered measures of marketing
impact, such as customer acquisition, customer retention, and customer
lifetime value.
 CHAPTER 6

MARKETING PLAN

OBJECTIVES
At the end of the lesson, the learners will be able to:

1. Integrate the marketing concepts and techniques learned by preparing a marketing plan; and
2. Familiarize with the essential content of marketing a plan

Marketing exists in order to support an organization in achieving its strategic goals–for growth, profitability,
revenue, influence, and so on. The role of marketing is to identify, satisfy, and retain customers.

The marketing plan is the guiding document used by marketing managers and teams to lay out the objectives
that marketing efforts will focus on and the actions they will take to achieve these objectives.

A comprehensive marketing plan paints the big picture of what is happening with an organization internally and
externally. After analyzing the marketing environment, the plan then recommends strategies and tactics
aimed at helping the organization take full advantage of available opportunities and resources to
accomplish its goals. When a marketing plan is completed thoughtfully and skillfully, it helps marketers not
only present the case for what they recommend doing, but it also creates a common vision within the
organization about what’s happening and how people and resources will come together to achieve that
vision.

KEY TAKEAWAYS

• The marketing plan details the strategy that a company will use to market its products to
customers.

• The marketing plan should be adjusted on an ongoing basis based on the findings from the
metrics that show which efforts are having an impact and which are not.

Marketing Plan: Key Elements

PLAN ELEMENT DESCRIPTION

 What is this plan about?

Summary of key points from the marketing plan and what

it will accomplish.
Do this section last. This should provide a holistic overview
of your marketing plan. All this information is covered in
more detail in the rest of the marketing plan. For the
executive summary, provide a clear, concise overview of the
following points:
Company Description
Briefly describe the organization and offerings (products
and/or services) your marketing plan focuses on, and the
Executive problem(s) they solve.
Summary Target Segment
Identify and briefly describe your target segment.
Competitive Advantage
Explain your organization’s competitive advantage.
Positioning Statement
Provide the positioning statement your marketing plan will
apply.
Marketing Plan Objectives
List the objectives of the marketing plan: What will it
accomplish? Be as specific as possible: anticipated increase
in sales, profits, market share, etc.
What organization are you marketing?

Basic information about the organization, its offerings, and

competitive set.

● Company Name:
● Industry:
● location:
● Year founded:
Company Profile
● The number of employees:
● Annual revenue (estimated):
● Major products and/or services:
● Target customers:
● Distribution channel(s):
● Key competitors:
● Website:
 Who is your target audience?

Description of the market for the product or service,

segments and targeting strategy the marketing plan will
address.

● What problem does your product or service solve?

Market ● Describe the total market for your solution: Who are
Segmentation and potential customers?
Targeting ● What are the key segments within this market?
● Identify and briefly describe 1-3 segments that this
company serves.
● Which segment does this marketing plan focus on,
and why? Why do you believe this segment will offer
growth and profit opportunities?
What is your strategy, and why is it the right approach?

SWOT analysis of the external marketing environment and

the internal company environment, and marketing goals
aligned with the company mission and objectives.

Economic Environment
Discuss factors that affect your consumers’ purchasing power
and spending patterns. What is the economic environment
that you are operating in? Is it growth, recovery or recession?
Will it be easy to find staff? What is the current interest rate
i.e. is it increasing or decreasing? What is consumer
confidence like?

Situation and Technical Environment

Company Analysis The technological environment changes rapidly. You need to
make sure that you are aware of trends in your industry and
other industries could affect your business. New technologies
create new markets and can influence your consumers and
competitors.

Industry Environment
What are the trends in your industry? Are there new entrants
in the market? Has a substitute product been introduced? Are
there changes in industry practices or new benchmarks to
use?

Competitive Environment
How many competitors do you have? Who are the key
competitors? What are the key selling points or competitive
 advantages of each one? What is your advantage over
competitors? Is the market large enough to support you and
competitors?

Political Environment
Consider the political environment for the areas that your
business will trade and operate in. Is there a stable political
system? Are there any licenses and regulations that you
should be aware of?

Mission, Objectives & Goals

State the mission or business purpose: what the organization
wants to achieve, in market-oriented terms. (Example:
Disney’s mission could be, “We create happiness by providing
the finest in entertainment for people of all ages.)

List objectives that move the organization a step closer to

achieving the mission. (Example: A Disney objective could be,
“To be the most popular theme park for international visitors.”)

Convert objectives into specific marketing goals that are easy

to measure and evaluate, e.g., SMART. (Example: The
company’s goal is to increase market share of international
theme park visitors by 10% within the next two years.”)
How will you demonstrate good corporate citizenship?
Ethics and Social
Responsibility Recommendations for how to address any issues around
ethics and social responsibility
What information do you need to be successful, and how will
you get it?
Marketing
Information and Discussion of key questions that need to be answered , the
Research information needed and recommendations for how marketing
research can provide answers.
 Who is your target customer, and what influences their buying

Customer decisions?

Decision-Making
Profile of the primary buyer(s) targeted in the marketing plan
Profile (Buyers
and factors that impact their choices.
Persona)

Identifying the Customer and Problem

 Describe a primary decision maker in your target segment:
who they are, what they like, how they make buying
decisions. Describe the primary problem(s) your organization,
product or service will help them solve.

Factors Influencing Customer Decisions

Provide a detailed profile of your target segment using at
least three (3) of the following categories:
● Geographic characteristics: e.g., location, region,
population size or climate.
● Personal and demographic characteristics: e.g., age,
gender, family size, family life stage, income,
personality.
● Social and Psychological characteristics: e.g., culture,
social class, lifestyle, motivation, attitudes, reference
groups, beliefs.
● Situational characteristics: e.g., buying situation, level
of involvement, market offerings, the frequency of use,
brand loyalty.
● B2B/organizational buying considerations: e.g.,
individual factors, organizational factors, business
environment factors, types of complexity
What do you want to be known for?

Positioning and differentiation explain what you want to be

known for in the market, and how you are different from
competitors. Respond to the following questions.

Competitive Advantages
List the competitive advantages of the product, service or
Positioning and organization you’re focusing on: the things that make it
Differentiation different from competitors in positive ways.

Market Niche and Positioning Strategy

Describe the market niche you want to fill, along with the
positioning strategy you recommend using. Why do you
think this is the right approach?
Positioning Statement
Develop a positioning statement using this formula: “To
[target audience], [product/service/organization name] is the
only [category or frame of reference] that [points of
 differentiation/benefits delivered] because [reasons to
believe].

What is the brand you are building? What do people think

about this brand today, and how do they will experience it?

Branding Brand platform describing the brand: promise, voice,

personality, positioning, and strategic recommendations for
building the brand.
How will you impact your target market?

• Product Strategy. Description of the product or

service being marketed.

• Pricing Strategy. How is your product or service

Marketing Mix (4 priced? And why this approach makes sense.

Ps)
• Place: distribution strategy. Recommendations on
distribution strategy and channel partners and
explanations of why this approach makes sense.

• Promotion. What promotional or engagement

strategies will you use? Explain reasons for chosen
approach.
Measurement (KPIs - Key Performance Indicators)
How will you measure the success of the campaign? Select 3-
6 KPIs (key performance indicators) that you will measure.
Briefly explain why each KPI you select will be a good
indicator of whether your campaign is successful.

Examples of KPIs:
Measurement and
● Total sales/revenue
KPIs
● New/incremental sales
● Number of qualified leads generated
● Net Promoter Score
● Website unique visitors
● Number of registrations/sign-ups
● Impressions - views of content
● Engagement - comments, likes, shares, page views,
video views
 ● Followers - social media (Facebook, Twitter, LinkedIn,
YouTube)
● Awareness
How much will this cost?

List marketing budget and resources required to execute your

marketing campaign, and estimate what it will cost. Include
items such as labor, materials and other expenses such as:
print materials, online media tools or development, public
relations services, design services, content development
services, space or equipment rental, etc. Also, estimate the
increased sales or revenue the campaign will generate for the
company.

Budget
Item Purpose Cost
Estimate

Example: White Layout of promotional approach

paper
What will it take to make this happen?

A detailed,
Item #1 step by step plan about what needs to happen, when and
who’s responsible for each step to execute the marketing campaign
Add additional
rows as needed

Action Plan
Date Activity Brief Description Target Responsible

Add additionalType
row as needed
December Example: Add new key Existing Cherry
2021 messages that fit audience/ Elizalde
Website
repositioning
Update Potential
strategy and
audience focus customers
 References

Marketing Plan.[Link]