PRICING STRATEGIES

PRICING STRATEGIES IN BUSINESS

1.​ PENETRATION PRICING
FACTORS AFFECTING PRICING DECISIONS
Setting a low price to enter a competitive market and
attract customers quickly. The goal is to gain market
Internal Factors
share early on, then gradually increase prices once a
customer base is established.
1)​ Cost Structure:
When to Use:
The cost of production, distribution, marketing, and
●​ For new products in a highly competitive
selling. Pricing must cover costs while ensuring
market.
profitability.
●​ To quickly gain market share.
2)​ Company Objectives:
Example:
If the goal is growth or market share, pricing may be
A new streaming service might offer a 6-month
adjusted to encourage demand.
subscription at a discounted price to attract users and
3)​ Product Lifecycle: build a subscriber base.

New products may be priced higher, while older

products may be discounted to clear inventory.
2.​ SKIMMING PRICING
4)​ Brand Image and Positioning:
Setting a high initial price to maximize profits from
Premium brands often charge higher prices, while early adopters before gradually lowering the price. This
value-based brands may focus on competitive pricing. strategy is often used for innovative products or
technologies.

External Factors When to Use:

1)​ Market Demand: ●​ For new and unique products with high
The level of consumer demand affects how a product demand.
can be priced. Higher demand may allow for higher ●​ To capture maximum revenue from consumers
prices. who are willing to pay a premium price.

2)​ Competition: Example:

Competitors' pricing strategies play a crucial role in
determining your price. ​
When Apple launches a new iPhone, it uses skimming
3)​ Economic Conditions: pricing by setting a high price at first, then gradually
Economic downturns may require price reductions, reducing it after a few months.
while strong economies might allow price increases.

4)​ Government Regulations: 3.​ COST-BASED PRICED

Price controls, tariffs, and taxes can limit how
companies price their products. Setting a price based on the costs of production,
distribution, and other expenses, plus a fixed margin or
5)​ Consumer Perception: markup. It ensures that the company covers its costs
How customers perceive the product in terms of quality and makes a profit.
and value influences their willingness to pay.
When to Use:
Example:
●​ In industries with stable costs and demand.
A luxury car brand may use higher pricing based on its ●​ When businesses have clear cost structures.
brand positioning and consumer perception, while an
economy car brand might consider cost-based pricing Example:
to remain competitive in a price-sensitive market.
A furniture manufacturer may charge cost-plus
pricing by adding a set markup to the total cost of
producing each item.
 4.​ VALUE-BASED PRICING If demand changes significantly with a price change,
the product is considered price elastic. If demand does
Setting the price based on the perceived value of the not change much, it’s price inelastic.
product to the customer rather than the cost of
production. The goal is to capture a higher price by Formula:
demonstrating value to customers.
Price Elasticity of Demand=
When to Use:
% Change in Quantity Demanded
% Change in Price
●​ For products or services with a unique value
proposition.
ELASTIC PRODUCT:
●​ In luxury goods, technology, or services where
●​ Luxury items or non-essential goods that
perception of value is key.
customers can easily replace.
Example:
Example: Designer clothes or concert tickets.
​
A premium coffee shop might charge higher prices for INELASTIC PRODUCT
their beverages based on their brand value and ●​ Necessities or products with fewer substitutes.
customer experience rather than just the raw cost of
ingredients. •Example: Gasoline or medicine.

PSYCHOLOGICAL PRICING AND PRICE ELASTICITY

SUMMARY:
●​ Psychological Pricing ●​ Pricing Decisions
Is a pricing strategy that leverages consumers’
emotional responses and perceptions to make prices Pricing is influenced by both internal and external
seem more attractive or reasonable. factors.

●​ Pricing Strategies

EXAMPLES OF PSYCHOLOGICAL PRICING Choose between strategies like penetration, skimming,

TECHNIQUES: and cost-based pricing based on market and product
goals.
1.​ CHARM PRICING
Using prices like $9.99 instead of $10.00 to make ●​ Psychological Pricing
products appear cheaper. Utilize tactics like charm pricing and prestige pricing to
influence consumer perception.
2.​ PRESTIGE PRICING
Setting a high price to signal quality or luxury (e.g., $500 ●​ Price Elasticity
for a designer bag).
Understand how demand for products changes in
response to price fluctuations.
3.​ BUNDLE PRICING
Offering a set of products at a price lower than if
bought individually (e.g, “buy 1 get 1 free”).
PRODUCT STRATEGY
WHAT IS PRODUCT STRATEGY?
In retail, the price of a bottle of perfume may be set at
$49.99 instead of $50, which seems like a better deal PRODUCT STRATEGY
due to charm pricing.
Is a plan for developing and marketing a product to
meet customer needs and business goals. It involves
PRICE ELASTICITY OF DEMAND defining the product’s features, target marketing,
positioning, and long-term goals.
●​ PRICE ELASTICITY
Key Aspects:
Refers to how sensitive the quantity demanded of a
product is to a change in price. 1.​ Aligns with overall business strategy
2.​ Focuses on customer needs and satisfaction
3.​ Guides product development, marketing, and
sales efforts
Example: Example:

Apple's product strategy focuses on premium, Jollibee’s brand is associated with joy, Filipino culture,
user-friendly products with innovative design. It targets and affordability.
tech-savvy users willing to pay more for performance
and style.
6. PACKAGING AND LABELING

Design and information presented on the product’s

COMPONENTS OF PRODUCT STRATEGY container.
1.​ TARGET MARKET Example:
Defines the specific group of customers the product Eco-friendly paper packaging of The Body Shop appeals
intended for. to environmentally conscious consumers.
Example:

Colgate targets health-conscious families for its 7. PRODUCT LIFECYCLE MANAGEMENT

toothpaste products.
Understanding and managing a product’s journey from
introduction to deadline.
2.​ PRODUCT POSITIONING

How a product is perceived by customers in

comparison to competitors. STAGE MARKETING FOCUS

Example: Introduction Awareness and trial

Nike positions itself as a brand for performance, Growth Brand loyalty and market
empowerment, and athletes. expansion

Maturity Defend market share,

3.​ PRODUCT FEATURES AND BENEFITS innovate

Describes what the product offers and how it solves the Decline Harvest, discontinue, or
customer’s problems. reposition

Example:

A Samsung phone may offer features like

BRANDING
high-resolution cameras and long battery life to attract
users who love photography and efficiency.
WHAT IS BRANDING?

BRANDING
4.​ PRODUCT LINE AND MIX
Is the process of creating a unique name, image, and
Refers to the total group of products a company offers. identity for a product in the minds of consumers.

a)​ PRODUCT LINE: group of related products (e.g., It goes beyond logos and colors—it includes the values,
Nestle’s coffee line: Nesacfe, Nespresso) personality, and promise the product or company
b)​ PRODUCT MIX: All product lines a company conveys.
sells (e.g., Nestle’s mix includes coffee, cereals,
pet care, etc.) Key Definition:

“A brand is a name, term, design, symbol, or any other

feature that identifies one seller’s goods or service as
5. BRANDING
distinct from those of other sellers.” – American
Includes the product’s name, logo, and identity to make Marketing Association
it recognizable.
COMPONENTS OF A BRAND 2.​ Perceived Quality
3.​ Brand Associations
●​ BRAND NAME
4.​ Brand Loyalty
A word or phrase used to identify a product.
Example:
●​ LOGO AND SYMBOL
People are willing to pay more for Nike shoes because
A graphic representation of the brand of strong brand equity—quality, reputation, and
emotional appeal.
●​ TAGLINE OR SLOGAN

A catchy phrase that communicates the brand’s

message. BRAND POSITIONING
●​ BRANDS COLORS AND TYPOGRAPHY
BRAND POSITIONING
Consistent use of color and font styles creates identity.
Is how a brand is perceived in the minds of consumers
●​ BRAND PERSONALITY compared to competitors.

Human traits associated with the brand. Positioning Statement Template:

●​ BRAND PROMISE For [target market], [brand] is the [category] that

[unique value proposition].
The value customers expected every time they interact
with the brand.
Example:

For budget-conscious travelers, Cebu Pacific is the

TYPES OF BRAND airline that provides affordable and safe flights with a
cheerful experience.
●​ PRODUCT BRAND
REAL-WORLD EXAMPLES
Focused on a specific item.
Local brand: Andok’s
●​ SERVICE BRAND
• Positioning: Affordable and tasty roasted chicken for
Focused on intangible offerings Filipino families.
• Tagline: “Sarap ng Kahit Kailan”
●​ CORPORATE BRAND
• Brand Personality: Friendly, Pinoy, home-style
Represents the entire company Global Brand: Apple
• Positioning: Premium, innovative, user-friendly
●​ PERSONAL BRAND technology.
Associated with an individual • Tagline: “Think Different”
• Brand Personality: Creative, modern, sleek
●​ GEOGRAPHIC BRAND

Promotes location-based identity Summary

●​ CO-BRANDING
1.) Branding is more than a logo—it shapes how
Two brands collaborate
consumers view and interact with a product.

2.) Strong branding builds trust, loyalty, and business

WHAT IS BRAND EQUITY? value.

BRAND EQUITY 3.) Key elements include name, logo, personality, and
promise.
Is the value a brand adds to a product beyond its
functional benefits. 4.) Understanding and applying branding concepts can
significantly improve marketing effectiveness.
Components of Brand Equity:

1.​ Brand Awareness

 3.​ PLACE (DISTRIBUTION)
THE MARKETING MIX (4Ps)
Refers to how the product reaches the
I. Introduction to Marketing Mix customer—through locations, logistics, and channels.
Key Concepts:
MARKETING MIX ●​ Direct vs. IndirectChannels
Refers to the set of controllable marketing tools that a ●​ Retailing vs. E-commerce
company uses to influence the demand for its product ●​ Distribution Intensity: Intensive, Selective,
or service. It is commonly known as the 4Ps: Exclusive
1.​ Product ●​ Location Strategy
2.​ Price
3.​ Place Example: Shopee uses online distribution with free
4.​ Promotion shipping promotions to reach customers nationwide.
Student Example: A t-shirt printing business takes
These elements must work in harmony to satisfy the orders on Facebook and delivers via J&T or Lalamove.
needs of the target market and achieve business
objectives.
4.​ PROMOTION
“The Marketing Mix is the tactical or operational part of
Includes the activities that communicate the product’s
a marketing plan.” — Philip Kotler
value and persuade customers to buy.

1.​ PRODUCT Promotion Tools:

Is what a business offers to its customers. It can be a ●​ Advertising (TV, radio, online)
physical good, service, or digital product. ●​ Sales Promotion (discounts, bundles, free
Key Concepts: samples)
●​ Product Design and Features ●​ Public Relations (events, press releases)
●​ Quality and Branding ●​ Direct Marketing (emails, text messages)
●​ Packaging and Labeling ●​ Digital and Social Media Marketing
●​ Product Life Cycle (Introduction, Growth, Example:​
Maturity, Decline) Jollibee uses emotional TV ads and Facebook promos
●​ After-sales Services to build customer loyalty and drive sales.
Example:​ Student Example:​
Apple's iPhone – Sleek design, high performance, A student-led milk tea stall uses TikTok to post
strong brand equity, and continuous innovation. behind-the-scenes videos and giveaways.
Student Example:​
A student business selling personalized
Summary
notebooks—unique designs, sturdy covers, and free
1.​ The 4Ps—Product, Price, Place, and
name printing.
Promotion—are the building blocks of a
successful marketing strategy.
2.​ PRICE
Is the amount of money customers must pay to obtain 2.​ Each P must align with the others and reflect
the product. the needs of the target market.
Pricing Strategies:
●​ Penetration Pricing (low prices to enter a 3.​ By mastering the 4Ps, marketers can better
market) position their offerings and influence customer
●​ Skimming (high initial price, then gradually decisions.
lowered)
●​ Competitive Pricing
●​ Psychological Pricing (₱99.95 instead of ₱100)
●​ Bundle Pricing
Example:​
Coca-Cola in sari-sari stores uses psychological pricing
(₱15) to attract buyers and match competitors.
Student Example:​
A student café sells coffee at ₱50 per cup using a
bundle promo: Buy 2, get 1 free.
 PROMOTION AND INTEGRATED •An agent presenting Sun Life Insurance plans to a
family.
MARKETING COMMUNICATION (IMC)

Advertising, Public Relations, Sales Promotion, and Digital Marketing and Social Media Strategies
Personal Selling
The use of online platforms to promote products,
A.​ Advertising services, and brands.

A paid form of non-personal communication through Key Strategies:

various media.
1.​ Search Engine Marketing (SEM)
Types:
Paid ads on search engines (e.g., Google Ads)
[Link]: TV, radio, print, billboard
2.​ Content Marketing
[Link]: YouTube ads, Google display, Facebook ads
Blogs, videos, or articles that educate and build trust
Example:​
Jollibee’s “Kwentong Jollibee” Valentine series 3.​ Email Marketing
(emotional storytelling via video ads)
Newsletters and promotional offers

4.​ Influencer Marketing

B.​ Public Relations (PR)
Collaboration with online personalities
Strategic communication to build positive relationships
with the public. 5.​ Social Media Ads

Tools: Paid ads on platforms like Facebook, TikTok, Instagram

[Link] releases 6.​ Engagement Campaigns

[Link] coverage Polls, contests, or hashtags

[Link] social responsibility (CSR) campaigns Example:​

National Book Store uses Instagram Reels to feature
Example: book reviews and launches; also runs “Like & Share”
contests.
SM Foundation’s disaster relief efforts receive news
coverage and improve brand image.

Integrated Marketing Communications (IMC)

C.​ Sales Promotion The strategic coordination of all promotional tools and
Short-term incentives to boost sales. channels to deliver a consistent and clear message.
Examples:
1. Discounts, coupons, “Buy 1, Take 1” IMC Components:
2. Flash sales (e.g., Shopee 6.6 Sale)
[Link] brand voice across platforms
3. Sampling booths at grocery stores
•Purpose: Encourage immediate purchase or trial
[Link] messaging in ads, social media, email, PR, and
sales promotions
D.​ Personal Selling
[Link]-platform campaign timing
Direct, face-to-face selling by a sales representative.
Features: Benefits:
1. Personalized approach
2. Common in B2B or high-value items (e.g., real estate, [Link] impact
insurance)
•Example: [Link] reinforcement
[Link] use of marketing resources 3.​ Warehousing and inventory
4.​ Transportation and logistics
Example:​ 5.​ Retail/last-mile delivery
Coca-Cola’s global “Taste the Feeling” campaign was
adapted across: Example:​
A Philippine clothing brand sources fabric from
[Link] commercials Vietnam, produces shirts in Bulacan, stores them in a
Manila warehouse, and delivers them nationwide via
[Link] pre-roll ads
J&T Express.
[Link]-store displays
Trends in SCM:
[Link] sponsorships
●​ Just-in-time (JIT) inventory
●​ Use of logistics apps and software
[Link] media posts
●​ Green logistics and sustainable sourcing

PLACE DISTRIBUTION STRATEGIES

Key Concepts and Discussions RETAILING AND E-COMMERCE TRENDS

Distribution Channels and Supply Chain A.​ Retailing

Management
Selling goods or services directly to consumers for
personal use.

A.​ Distribution Channels Retail Formats:

The pathways through which goods and services flow [Link] stores (e.g., sari-sari, department stores)
from producers to consumers.
[Link] (e.g., 7-Eleven)
Types:
[Link]-up shops and kiosks
1.​ Direct Channel:
[Link] stores and marketplaces
Manufacturer → Consumer (e.g., online shopping from a
brand's website) Trends:

2.​ Indirect Channel: [Link] retail (e.g., in-store cafes, live demos)

Manufacturer → Intermediaries (wholesaler/retailer) → [Link]-checkout counters

Consumer
[Link]-to-door delivery integration

•Channel Levels:
•Zero-level: Direct to customer
B.​ E-COMMERCE TRENDS
•One-level: Retailer involved
•Two-level: Wholesaler and retailer involved Buying and selling of goods/services online.
•Example:
A local bakery sells directly at its shop (direct) but also EMERGING TRENDS:
delivers to coffee shops (indirect). ●​ Mobile commerce (m-commerce)
●​ Live selling (e.g., Facebook Live or TikTok Live)
●​ Cash-on-delivery and digital wallets (e.g., GCash,
B.​ Supply Chain Management (SCM) Maya)
●​ Social commerce (shopping through
Coordination of production, shipment, and delivery of
Instagram/Facebook)
products from suppliers to customers.
EXAMPLES:
Key Components:
A home-based soap maker sells via Shopee, does live
1.​ Procurement of raw materials selling on Facebook, and offers same-day delivery via
2.​ Production and manufacturing GrabExpress.
OMNICHANNEL MARKETING ​
Example:​
A seamless and integrated customer experience across ​
multiple physical and digital channels. A TV commercial for a laundry detergent plays on
ABS-CBN without the company directly hearing what
Difference from Multichannel:
viewers think.
1.​ Multichannel:

Different platforms, often disconnected (e.g., separate c)​ Broad Audience Targeting
in-store and online experience)
Characteristic: Traditional marketing often aims to
2.​ Omnichannel: reach as many people as possible, not specific
individuals.​
Integrated journey (e.g., buy online, pick up in-store; ​
same promotions across platforms) Example:​
Benefits: A billboard along EDSA showing a fast-food promo is
●​ Improved customer satisfaction seen by everyone who passes by—regardless of
●​ More touchpoints for customer engagement whether they are interested or not.​
●​ Data-driven personalization
Example:
SM Supermalls integrates mobile app promotions,
d)​ High Cost for Reach
in-mall QR codes, Facebook ads, and physical store
events in one synchronized campaign.
Characteristic: Traditional marketing methods usually
TRADITIONAL MARKETING require a big budget, especially for mass exposure.

WHAT IS TRADITIONAL MARKETING? Example:​

A company spends ₱500,000 for a 30-second television
ad aired during primetime hours.
TRADITIONAL MARKETING

Refers to any type of marketing that isn’t online. This e)​ Physical Presence and Tangibility
includes print, broadcast, direct mail, phone, and Characteristic: Traditional marketing materials can be
outdoor advertising like billboards and flyers. physically held or seen in real-world spaces.​
​
It is called “traditional” because it was the primary form
Example:​
of marketing before the rise of the internet and digital
​
technologies.
A real estate agent hands out brochures during a
CHARACTERISTICS OF TRADITIONAL MARKETING housing fair showcasing available lots in Cavite.

a)​ Offline Channels f)​ Limited Customer Interaction

Characteristic: Traditional marketing uses physical or Characteristic: There's minimal or no opportunity for
non-digital platforms. customers to engage with the content directly.

Example:​ Example:​
A local bakery distributes printed flyers to nearby An FM radio ad promoting a new cellphone doesn’t
houses to promote their new pandesal variety. allow listeners to comment or react instantly like they
would on Facebook.

b)​ One-Way Communication

Characteristic: Messages are sent from the business to

the customer without direct feedback.​
TYPES OF TRADITIONAL MARKETING DISADVANTAGES OF TRADITIONAL MARKETING

a.​ Print Marketing 1.​ Higher cost (e.g., TV ads are expensive)
2.​ Limited interaction with the audience
Includes newspapers, magazines, brochures, and flyers.​
3.​ Difficult to measure results (ROI)
​
4.​ Less targeted compared to digital tools.
Example: A sari-sari store in a barangay advertising its
5.​
opening via flyers distributed to nearby homes.
TRADITIONAL vs. DIGITAL MARKETING
b.​ Broadcast Marketing

Covers television and radio commercials. FEATURE TRADITIONAL DIGITAL

MARKETING MARKETING

Example: Jollibee’s television commercials during PLATFORM Offline (TV, Online (social
noontime shows. print, radio) media, email)

c.​ Outdoor Marketing COMMUNICATI One-way Two-way

ON

Billboards, tarpaulins, posters, and transit ads (e.g., COST Generally Usually more
jeepneys, buses). higher affordable

TARGETING Broad Highly targeted

Example: Local political candidates using posters and
tarpaulins during election campaigns.
MEASUREMENT Limited Measurable and
d.​ Direct Mail analytics trackable

Sending printed materials to customers via postal

services. Summary

Example: A real estate company sending brochures to

Traditional marketing remains relevant, especially in
potential homebuyers.
areas with limited internet access. It includes a wide
range of tools like TV, radio, print, and outdoor ads.
e.​ Telemarketing

Using phone calls to reach customers and promote While digital marketing is growing, traditional methods
products. are still trusted and effective in certain markets,
particularly for local businesses in the Philippines.
Example: A bank calling clients to offer new loan or
credit card products.
DIGITAL MARKETING
WHAT IS DIGITAL MARKETING?
ADVANTAGES OF TRADITIONAL MARKETING

1.​ Wider reach in areas with limited internet DIGITAL MARKETING

access refers to the use of digital channels, platforms, and
2.​ Tangible and memorable materials (e.g., technologies to promote products or services to
brochures and posters) consumers. Unlike traditional marketing, it leverages
3.​ Builds brand familiarity through consistent the internet and digital devices.
visual and audio exposure
4.​ Effective for local marketing and targeting Key Characteristics:
older demographics 1.​ Interactive and measurable
2.​ Cost-efficient, especially for SMEs
3.​ Can reach a global or hyper-local audience
4.​ Works in real-time and allows for quick
feedback
Importance in Business: ●​ CHOOSE CHANNELS
●​ CREATE CONTENT
Over 76 million Filipinos are internet users (as of 2024). ●​ MONITOR AND ANALYZE

Social media use is extremely high—making platforms

DIGITAL MARKETING AND E-COMMERCE
like Facebook, Instagram, and TikTok critical for
marketing. A.​ SOCIAL MEDIA MARKETING (SMM)

E-commerce platforms like Shopee, Lazada, and TikTok The use of social media platforms (e.g., Facebook,
Shop are growing rapidly. Instagram, TikTok, X/Twitter) to promote products and
engage with consumers.

Objectives:
TYPES OF DIGITAL MARKETING
[Link] brand awareness
●​ SOCIAL MEDIA MARKETING
[Link] website traffic
Promoting products on platforms like Facebook,
Instagram, and tiktok. [Link] leads and sales

●​ SEARCH ENGINE OPTIMIZATION (SEO) [Link] community and customer loyalty

Optimizing website content to rank high on google Example:​

A local coffee shop posts daily Instagram stories with
●​ EMAIL MARKETING
promotions and uses Facebook Ads targeting 18-35 year
Sending promotional emails to customers olds in their city.

●​ CONTENT MARKETING Tips for Success:

Creating blogs, videos, and articles to attract customers. [Link] platform-specific strategies (e.g., reels for
Instagram, short videos for TikTok)
●​ PAY-PER-CLICK (PPC)
[Link] consistent posts using tools like Hootsuite
Paid ads on Google or social media. or Meta Business Suite

●​ AFFILIATE MARKETING [Link] to messages and comments to build

engagement
Partnering with influencers or bloggers to promote
products.

B.​ SEARCH ENGINE OPTIMIZATION (SEO)

ADVANTAGES The process of improving a website’s visibility in search

●​ Cost-effective compared to TV or print ads engine results through unpaid (organic) strategies.
●​ Highly targeted advertising
Types of SEO:
●​ Trackable and measurable (via analytics)
●​ Two-way communication with customers 1.​ On-page SEO:

DISADVANTAGES Keyword optimization, meta tags, quality content

●​ Requires internet access and digital literacy
●​ Can be time-consuming to manage multiple 2.​ Off-page SEO:
platforms
●​ Risk of negative reviews or online backlash Backlinks, social sharing

3.​ Technical SEO:

DIGITAL MARKETING STRATEGY FRAMEWORK Site speed, mobile-friendliness, secure connection

(HTTPS)
●​ SET GOALS
●​ IDENTIFY TARGET AUDIENCE
Example:​
DEMAND FORECASTING
A local pet grooming service adds blog articles like “5
Tips to Keep Your Dog’s Coat Shiny” and uses keywords Introduction to Demand Forecasting​
like “dog grooming in Cebu” to rank higher on Google.
DEMAND FORECASTING
Tools: is the process of estimating the future demand for a
product or service based on historical data, market
[Link] Keyword Planner trends, and other relevant factors.

[Link] SEO plugin (for WordPress) It is an essential aspect of business management,

helping organizations plan their production, inventory,
[Link] Search Console
and financial strategies effectively.

C. CONTENT MARKETING
IMPORTANCE OF DEMAND FORECASTING IN
A strategic approach focused on creating and
BUSINESS
distributing valuable, relevant, and consistent content
to attract a clearly defined audience. 1.​ Inventory Management

Types of Content: Accurate demand forecasting helps businesses

●​ Blogs and articles maintain optimal inventory levels, reducing the risk of
●​ Infographics overstocking or stockouts.
●​ Videos and vlogs
●​ E-books and guides 2.​ Production Planning

Manufacturers use demand forecasts to plan

production schedules, ensuring efficient resource
INFLUENCER MARKETING AND VIRAL CAMPAIGNS utilization.

A.​ INFLUENCER MARKETING 3.​ Financial Planning

A form of social media marketing involving Businesses use demand forecasts to estimate future
endorsements and product placements from revenues, budgeting, and cash flow management.
influencers—individuals with a large and engaged
following. 4.​ Marketing Strategy

Types of Influencers: Helps in setting appropriate pricing, promotional

campaigns, and distribution channels.
●​ Mega (1M+ followers)
●​ Macro (100k–1M) 5.​ Customer Satisfaction
●​ Micro (10k–100k)
●​ Nano (1k–10k, ideal for local businesses) Meeting customer demand efficiently leads to higher
satisfaction and loyalty.

B.​ VIRAL MARKETING CAMPAIGNS

TYPES OF DEMAND FORECASTING
Marketing techniques that rely on users to share
content quickly, resulting in rapid spread (like a “virus”). 1.​ Qualitative Forecasting

Key Elements of a Viral Campaign: Based on expert opinions and market research, suitable
for new products with limited historical data.
●​ Emotional connection (humor, awe, shock)
●​ Easy to share (short videos, memes) Example: A new smartphone brand launching its first
●​ Call-to-action or challenge product may rely on surveys and expert opinions to
forecast demand.
 2.​ Quantitative Forecasting 4. Delphi Method

Uses historical data and mathematical models to Experts provide forecasts iteratively until a consensus is
predict future demand. reached.

Example: A supermarket uses sales data from the past Example: A pharmaceutical company consulting
five years to forecast next month’s demand for industry experts to forecast demand for a new drug.
groceries.

3. Short-Term Forecasting
CHALLENGES IN DEMAND FORECASTING
Predicts demand for a short period (days to months),
1.​ Data Limitations
often used for inventory replenishment.
Lack of reliable historical data can affect forecast
Example: A bakery forecasting demand for cakes for accuracy.
the upcoming holiday season.
2.​ Market Uncertainty
4. Long-Term Forecasting Unexpected events (e.g., pandemics, economic
downturns) can disrupt demand patterns.
Predicts demand over a long period (years), useful for
strategic planning. 3.​ Changing Consumer Preference
Shifts in consumer behavior can make historical data
Example: A car manufacturer forecasting demand for
less reliable.
electric vehicles over the next five years.

4.​ Competitor Actions

New competitors or disruptive innovations can impact
METHODS OF DEMAND FORECASTING demand

Conclusion
1.​ Time Series Analysis
Uses historical data to identify trends and patterns. Demand forecasting is a crucial tool for businesses to
Example: A clothing retailer analyzes monthly sales make informed decisions regarding inventory,
data to identify seasonal trends in fashion demand. production, marketing, and financial planning.

By understanding various forecasting methods and

challenges, businesses can enhance their ability to
2. Causal Models
predict market trends and meet customer demand
Examines relationships between demand and
efficiently.
influencing factors (e.g., price, marketing, economic
conditions). CUSTOMER RELATIONSHIP MANAGEMENT (CRM) and
RETENTION STRATEGIES

Example: A hotel forecasting room bookings based on

BUILDING BRAND LOYALTY AND CUSTOMER
tourist arrival trends and economic conditions.
RETENTION

3. Market Research
WHY FOCUS ON RETENTION?
Surveys, focus groups, and customer feedback help
1.​ It costs 5x more to acquire a new customer
predict demand.
than to retain an existing one.
2.​ Loyal customers tend to spend more and refer
Example: A beverage company testing a new flavor
others.
through customer surveys before launching
3.​ Retention improves long term profitability and
nationwide.
brand equity.
STRATEGIES FOR BUILDING LOYALTY Formula:

●​ Consistent customer experience across all Repeat Purchase Rate = (Number of Returning
touchpoints. Customers ÷ Total Customers) × 100
●​ Personalized communication and offers
excellent service Example:
●​ Loyalty rewards and membership perks
Out of 100 customers, 30 made a second purchase:
●​ Engagement through social media and
feedback loops
(30 ÷ 100) × 100 = 30% repeat purchase rate
METRICS TO MEASURE RETENTION:

1.​ Customer Lifetime Value (CLV)

●​ CHURN RATE
2.​ Repeat Purchase Rate
3.​ Churn Rate Measures the percentage of customers who stop
4.​ Net Promoter Score (NPS) buying or leave your service during a specific period.

Why it matters?

●​ CUSTOMER LIFETIME VALUE (CLV) 1.​ Helps you spot retention issues early.
2.​ High churn can signal dissatisfaction or better
Estimates the total revenue a business can earn from a
competition.
single customer over the entire duration of their
relationship. Formula:

Why It Matters? Churn Rate = (Number of Customers Lost ÷ Total

Customers at Start) × 100
1.​ Helps determine how much you can spend on
acquiring new customers. Example:
2.​ Identifies your most valuable customer
segments. If you had 200 customers and lost 40 in a quarter:​
3.​ A higher CLV usually indicates strong retention (40 ÷ 200) × 100 = 20% churn rate
and loyalty.

Basic Formula:
●​ NET PROMOTER SCORE (NPS)
CLV = Average Purchase Value × Purchase Frequency ×
Customer Lifespan Measures how likely your customers are to recommend
your product or service to others, based on a scale from
Example: 0 to 10.

If a customer spends ₱1,000 per purchase, shops 4 Question Asked:

times per year, and stays loyal for 5 years:
"On a scale of 0–10, how likely are you to recommend us
​ to a friend or colleague?“
CLV = 1,000 × 4 × 5 = ₱20,000
Calculation:

●​ Promoters (score 9–10): Loyal enthusiasts

●​ REPEAT PURCHASE RATE ●​ Passives (score 7–8): Satisfied but
unenthusiastic
This metric shows the percentage of customers who ●​ Detractors (score 0–6): Unhappy customers
have purchased more than once within a certain time
period. NPS = % of Promoters − % of Detractors

Why it matters?

1.​ Indicates customer satisfaction and loyalty.

2.​ Higher rates mean customers are coming back
without needing extra marketing spend.
Role of CRM Systems in Business ●​Change in customer needs and values (e.g.,
focus on safety, affordability)
WHAT IS CRM? RESPONSE TACTICS:

CRM stands for Customer Relationship Management. 1.​ Shift to digital marketing and e-commerce
It refers to: 2.​ Revise product messaging to be more
●​ A technology that manages a company’s empathetic
relationships and interactions with customers 3.​ Offer contactless services or deliveries
and prospects. 4.​ Implement flexible return policies
●​ A strategy to improve business relationships. 5.​ Support the community through CSR initiatives

Key Functions of CRM Systems: EXTENDED MARKETING MIX — PEOPLE,

PROCESS PHYSICAL EVIDENCE
1.​ Track customer data and history
2.​ Segment customers based on behavior or IMPORTANCE OF CUSTOMER SERVICE IN
preferences MARKETING (PEOPLE)
3.​ Automate emails, follow-ups, and promotions
4.​ Improve customer service and support People in the marketing mix refers to everyone involved
5.​ Provide insights for decision-making in the delivery of the service or product—employees,
salespeople, customer support, and even customers
Examples of CRM Tools: themselves.

[Link] Why It Matters:

[Link] 1.​ Customer-facing staff are the brand

ambassadors.
[Link] CRM
2.​ Positive interactions build customer loyalty and
[Link] brand trust.

[Link] Philippine options: QNE CRM, Mustard Seed [Link] service leads to negative reviews and loss of
CRM business.

Examples:
CRISIS MANAGEMENT AND MARKETING
IN THE NEW NORMAL 1.​ A friendly barista at Starbucks can turn a
routine coffee run into a memorable
WHAT IS A MARKETING DISTRUPTION? experience.
2.​ Lazada’s fast and responsive chat support helps
MARKETING DISRUPTION build customer confidence during online
purchases.
Is a significant unexpected event that negatively affects
customer behavior, market demand, operations, or
communication channels.
STRATEGIES FOR SUCCESS:
Common Disruptions: ●​ Staff training in communication,
problem-solving, and empathy
●​ Pandemics (e.g., COVID-19) ●​ Hiring based on attitude and customer
●​ Economic Crises orientation
●​ Natural Disasters ●​ Motivating frontliners through incentives and
●​ Geopolitical Conflicts recognition
●​ Technology Outages or Failure

IMPACT ON MARKETING:
●​ Decreased customer spending
●​ Supply chain interruptions
●​ Store closures
●​ Shift to digital-first strategies
BLUEPRINTING AND CUSTOMER EXPERIENCE A sleek, minimalist coffee shop like % Arabica uses
(PROCESS) high-end design and aroma to convey premium quality.

ETHICAL CONSIDERATIONS IN MARKETING

SERVICE BLUEPRINTING
CONSUMER RIGHTS AND CORPORATE SOCIAL
Is a visual tool that maps out the service delivery RESPONSIBILITY (CSP)
process from start to finish, including both frontstage
(what the customer sees) and backstage (what Consumer Rights (According to UN Guidelines):
happens behind the scenes) activities.
●​ Right to Safety
protection from harmful products

STEPS IN SERVICE BLUEPRINTING: ●​ Right to Be Informed

●​ Customer actions accurate product and service information
What the customer does (e.g., orders food)
●​ Right to Choose
●​ Frontstage access to a variety of products at competitive prices
Interactions with staff (e.g., greeted by a waiter)
●​ Right to Be Heard
●​ Backstage access to redress and fair treatment
Invisible processes (e.g., kitchen prepares food)
Corporate Social Responsibility (CSR):
●​ Support processes ●​ CSR refers to a company's responsibility to go
Systems in place (e.g., POS system) beyond profit and consider social,
environmental, and ethical impacts.
●​ Physical evidence Key CSR Activities:
Tangible cues (e.g., clean tables, printed receipt) ●​ Sustainable packaging and eco-friendly
practices (e.g., Unilever’s “Love Beauty and
Why it matters: Planet”)
●​ Identifies pain points in the customer journey ●​ Supporting education and local communities
●​ Helps improve efficiency and service quality (e.g., Jollibee Foundation's school feeding
●​ Enhances customer experience by minimizing program)
friction ●​ Fair labor practices and ethical sourcing

PHYSICAL EVIDENCE
Why CSR Matters in Marketing:
Tangible elements that support the service experience
●​ Builds consumer trust and brand loyalty
and influence customer perceptions.
●​ Enhances reputation
●​ Attracts ethically-conscious consumers,
Examples:
especially Gen Z and millennials
1.​ Store layout, cleanliness, lighting
2.​ Staff uniforms and name tags
3.​ Receipts, signages, brochures MARKETING ETHICS AND DECEPTIVE ADVERTISING
4.​ Online visuals like website design and app
Marketing Ethics:
interface
Ethical marketing refers to the process of promoting
Why It Matters:
products and services in a way that is truthful,
[Link] credibility and professionalism transparent, and respectful of stakeholders.

[Link] set customer expectations Unethical Practices:

[Link] the brand image 1.​ False claims (e.g., "clinically proven" with no
real evidence)
Example: 2.​ Manipulative pricing (e.g., hidden fees,
bait-and-switch tactics)
 3.​ Greenwashing – falsely promoting products as 1.​ Reduce carbon footprint
eco-friendly 2.​ Use renewable energy
4.​ Stereotyping or objectifying groups in 3.​ Implement fair labor practices
advertising 4.​ Support local communities

Environmental Impact in Marketing

Consequences of Unethical Marketing: •Companies assess and reduce their environmental
impact across the product lifecycle: sourcing,
1. Legal action (e.g., false advertising lawsuits)
production, distribution, and disposal.
•Marketing departments play a crucial role in educating
2. Customer backlash and boycotts
customers and promoting sustainable consumption.
3. Damaged brand reputation

Triple Bottom Line (TBL):

GREEN MARKETING AND SUSTAINABLE
BUSINESS PRACTICES Sustainable businesses focus on three key areas:

Eco-Friendly Marketing and Consumer Behavior 1.​ People

What is Green Marketing? fair treatment and community welfare

Green marketing 2.​ Planet

Refers to the practice of developing and promoting environmental responsibility

products or services based on their environmental
benefits. 3.​ Profit

It includes: long-term economic viability

●​ Eco-friendly product design Example:

●​ Recyclable or biodegradable packaging
Coca-Cola’s “World Without Waste” initiative aims to
●​ Responsible production and logistics
make all packaging recyclable by 2025 and collect a
bottle or can for everyone sold.
Green Consumer Behavior
Today’s consumers are increasingly environmentally
aware. SERVICES MARKETING
Factors influencing green buying decisions include:
●​ Concern for the planet and future generations Characteristics of Services
●​ Willingness to support ethical brands
Unlike tangible products, services have distinct
●​ Desire for healthy, non-toxic products
characteristics that require different marketing
approaches. These are commonly known as the Four I’s:
Marketing Implications:

1.​ Brands must communicate sustainability

a. Intangibility
clearly and honestly.
2.​ Avoid “greenwashing” – making misleading ●​ Services cannot be seen, touched, or stored
environmental claims. before purchase.
●​ Customers rely on brand reputation, online
reviews, and visual cues (like uniforms,
Corporate Sustainability and Environmental Impact
ambiance, and digital platforms).
What is Corporate Sustainability?
Example:​
It is the integration of social, environmental, and You can’t “test drive” a haircut or legal advice before
economic concerns into business operations. availing it.

A sustainable company aims to: Marketing Strategy Tip:

Use testimonials, case studies, service guarantees, and SERVICE QUALITY AND CUSTOMER SATISFACTION
visual branding to build trust.
Service Quality:

A customer’s perception of how well a service meets or

b. Inseparability exceeds expectations.

Services are produced and consumed at the same time

and often require interaction between provider and DIMENSION DESCRIPTION
customer.
Tangible Physical facilities,
Example:​
equipment, appearance
A dental check-up needs both the dentist and the
patient present. Reliability Consistent, accurate
performance
Marketing Strategy Tip:
Responsiveness Willingness to help
[Link] frontline staff for better interaction.
customers quickly
[Link] consistent service experiences through SOPs
and service scripts. Assurance Knowledge and courtesy
of employees

Empathy Caring individualized

c. Inconsistency (Variability) services

Service quality may vary due to differences in people,

processes, and situations.
Customer Satisfaction
Example:​
A barista might make your coffee differently on Occurs when customer expectations are met or
Monday vs. Friday. exceeded. It directly affects:

Marketing Strategy Tip: [Link] loyalty

[Link] service standards, quality monitoring, and staff [Link] business

training to minimize inconsistency.
[Link] word-of-mouth
[Link] customer feedback loops and continuous staff
training. Example:

​
A consistently courteous and efficient team at a bank
d. Inventory (Perishability) branch builds long-term client loyalty.

Services cannot be stored or inventoried—unused

capacity is lost.

Example:​
An empty hotel room tonight cannot be sold
tomorrow.

Marketing Strategy Tip:

[Link] promotional pricing during off-peak times.

[Link] advance bookings and dynamic pricing

(e.g., airline tickets).