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Lectures in Principles of Marketing

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Ralph Jerome Laranang

on 24 October 2014

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Transcript of Lectures in Principles of Marketing

5. A combination of letters and numbers such as G2000, C2 RTD ice tea, C5 shortcut way
6. It can be a familiar sound like selecta rolling store,nokia ringtone
7. A prominent shape such triangle for Toblerone and bell shape for kisses chocolates and bone shape for safeguard and the classic shape of coca cola bottle signify sexy body.
8. It can be a color design, logo like crocodile for lacoste and check sign for Nike

6. What type of shampoo you are using now?
8. Rate the brand of shampoo: Which of the following attributes of the shampoo are you more concern when choosing for your hair care? (enumerate your chosen features and attributes that you feel will be art of their decision making)
9. What is your total salary/budget bracket to spend for your haircare?
!0. What is your perception with the brand that you may possibly choose for your hair?

6. Hongkong express, Tiger airways and Zest airlines a low popular budget airlines in the country.

7. Credit card companies like Visa and Master Card honored on luxury hotels

8. Burger Machine and scott burger offers buy one take one promo.

9. Discount stores like 999 and 168 mall in Divisoria.

10. Hagen daz, dairy ice cream and magnum.

Thinking Exercises:
Identify the closest segmentation variables of the following brand of products: example: PH care answer: Age and gender

1. Night bars that offers beers and hard imported liquors.
2. Resorts world a high end shopping center.
3. Yakimix and Vikings eat all u can restaurant in MOA and Malate area.
4. Second hand cars such as toyota and Honda.
5. Sogo hotel, wise and nice hotel on busy streets of manila.


Market Positioning process:
-The way the product is defined by consumers on important attributes.

The place occupied by the product in the minds of consumers relative to competitors product.
It also refers to the USP/ or Unique Selling Propositions of every brand to its target market differentiating your company as a whole to your surrounding competition in your respective industry.

Kabayan Hotel focuses on OFW’s as their current target market which give them good income

Legend hotel targeted the family market while sogo focus lovers.

Eurotel is a sister company of sogo aiming to capture foreign and local transient who wish to have long vacation period in the country who wants to have a european experience in terms of hotel accomodation.

Robinson land’s gohotels.ph enjoy sales when they decide to serving the regular and frequent travelers segment such as businessmen, auditors and sales executives



Market Targeting – the process of evaluating available market segments in terms of:

Segment size and growth
Segments structural attractiveness
Company objectives and resources

The “ Beauty seekers segment” are more concern with how they look, conscious about their social life, they manage to be glamour and beautiful in spite of their age even at 50’s and 60’s
The entry of the “ Male Merosexuals” a goup of segments highly influence by male french culture.these are glamour , masculine, straight guys of the 21st century who wear more cosmetics than women, fashionable, vain and trendy.

Legend hotel focus more on the family group segments while victoria court focus more on couple like husband and wife, lovers.( by civil status, family size,)

Manila Diamond Hotel and Pan pacific Hotel caters to a high income group and profesdsionals such as CEO and president of companies. ( by income)

CamSur and Boracay concentrates more on nationality such as Tourism in Asia and aMERICA.( by nationality and location)

Eurotel targets the foreign national who looks for class accomodation but of a more practical budget.

Types of segmentation:

1. demographic segmentation- divide the market by age, gender, income, family size, profession,etc.
2. Geographic segmentation- subdivide the market by locations such as by city, region, nation etc.
3. Psychographic segmentation- subdivide the maket on their attitudes that relates to social issues,personal interests and specific product attributes.
4. Behavioristic segmentation-is subdivided in terms of consumer behavior

Competitive forces includes: Pure Monopoly, Monopolistic competition, Oligopoly and Monopoly.

Gasoline suppliers like Petron, shell, Caltex were suspected on having an increasing bargaining power as suppliers affecting consumers or few suppliers operating the market or Oligopoly system.


Demographic factors- pertain to population characteristics, size and density and location.
Economic- it pertains to customer expenditures affecting their income.
Technological- it refers to inventions and innovations from applied science and engineering research.
Natural- it pertains to any fortuitous event that is uncontrollable to the market such as natural calamities.
Political – it pertains to restrictions and policy implemented by the government affecting the business operations.

From the consumer ever changing needs and wants, The task of the market is to respond and compete with this dynamic changes in the product and services market.
Consumers evolved into “ Prosumers” , who tend to be very highly sophisticated in their buying behavior. Internet become a part of their daily consumer habit and make them more updated and upgraded in the product technology they encounter in the environment.
Everything is fast facing, clothing, food, furniture, lifestyle and technology are somehow unstoppable in their changes in the market.

As we always agree, what is constant in this world is change. In every change there is resistance or barrier to anything that can influenced to what is currently existed.
In marketing, we are surrounded by so many forces that highly affect and influences company’s major decision to uplift business in a higher level of growth and development.

Telecommunication Company identified digital technology as an opportunity in the past facing age of communication and eventually digital threatened and obsolete the analog system. Until now digital is still the preferred by consumer.

Fashion come and go, it’s the trend that affects the product life cycle. In the jeans industry ,Gone are days that bellbottom pants are so in, until the hip hops puts the mood for techno and pop. Now the market is surrounded by tight and skinny jeans.

Havaianas sets the trend for the flip flops slippers in fashion for footwear

Environmental scanning defined:

It pertains to the process scanning the environment by spotting a trend and eventually determines if it posed an opportunity or threats to the market.
The process of acquiring information which can be a potential trends to the company.

GSM outdated analog system in the telecommunication industry banking on the digital trend of connecting in wireless phone.


MACROENVIRONMENT- pertains to external factors in the environment
MICROENVIRONMENT- it pertains to the internal factors of the environment

Business Culture- consists of effective rules of the game, the boundaries between competitive and unethical behavior.

Consumer Bill of Rights- this certified the ethics of exchange between buyers and sellers “ caveat emptor” let the buyers beware emphasized the rights of consumer regarding the product such as choice, safety and quality upon demand.

Whistle blowers- are employees who report unethical or illegal actions of their employees.
Code of ethics- are formal statement of rules of conduct
Moral Idealism- are normally individual rights such as personal opinion.
Social responsibility- refers to idea that organizations are part of the larger society and are accountable to the society for their actions.
Green Marketing- marketing efforts to produce and environmentally- sensitive product such as biodegradable, less toxic and eco friendly product.

The 4 P’s of Marketing:
product, Price, Place and Promotion
Every brand needs to have marketing mix strategy that interacts with customer’s motivation in buying the product. It served as an influencer to their purchase decision process defending on how each of the 4 P’s is executed in the market. Let us define one by one the 4P’s of Marketing as follows:

Product- can be tangible or intangible that is offered in the market
Price- pertains to the amount or what is exchange for the product
Place- pertains to channel of distribution or where to find the product or its availability
Promotion- the means of the company in communicating the brand to its target market.

Designing a Business Portfolio

The collection of businesses and products that make up the company and analyzed them in the BCG / Boston Consulting Group by classifying their current SBU’s/strategic Business units acoording to the growth share matrix such as:

Stars- are those product which currently has high market share and high market growth.
Cash cow- are brands with high market share but currently experiencing low market growth
Question marks- are products/brands that has low market share but a promising high market growth
Dogs- products that currently has low market share and low market growth.

3. Managing perceive risk- high risk people perceive when acquiring service increases loyalty to companies that provide them with consistent product in the past.
4. Managing capacity and demand- it enable the company to operate at a maximum capacity.
5. Managing consistency- it means that customer will received the expected product without unwanted surprises.

Perishability of services


Consider watching a 3D movie at IMAX for Php. 300 pesos, the ticket price is twice the ordinary movie house but compare the experience inside IMAX cinema with the 3D glass on 18th floor size screen, the value is more than enough to what you actually paid for.

Exchange and Relationships:
It pertains to a trade of value between a seller or provider and the buyer/consumer and the relationship the marketer created while performing the transactions.

Restaurant manager normally give a a first time customer in the store by providing them a “welcome drinks” or free dessert charege on the house” making customer feel the importance and remember the place after leaving and even tell it to others.

Customer needs and Wants and Demands and Expectations

Needs- it refers to a state of felt deprivation on the basic necessity for survival. Or simply the things that we can’t live without.

Wants-are felt needs shaped by culture and individual personality or normally products that are already a luxury.

Demands and expectations- these are needs and wants back up by purchasing power or something that customers expects in the long run after using the product.

Marketing Insights:

Jollibee alone is 65% of the total foodcahin industry not to include chowking, Greenwich which comprises a total of 75 % which declares Jollibee Food corporation a market dominating brand.( summit media, entrepreneur magazine 2009)

In the case McDonald’s, the world’s largest food service organization. McDonald’s holds more than 40% share of the US fast-food burger market, many times the share of its nearest competitor. However, if you ask the same question in the Philippines, the answer that you’ll get will be Jollibee.

The Image of Toyota
Since time immemorial, Toyota was already a household brand in the “ peoples car market” have a good rates of loyal customers and good car quality perceptions not unitl Honda launch their car brands in the market carrying a new influenced in car designs, they were able to drive the market in a great percentage of brand shifters. Now Honda has been noted as the number one car dealer in the Philippines replacing the the market leader. Toyota learned from the customer research that image is one of the major reason why customers shifted to Honda. Because most toyota owners after they purchased the car, later on convert it into a taxi cab. So most taxi that we see around are Toyota. In short, Toyota had a poor image in the market which impact to their sales especially with the entry of new competitors.

Marketing makes the product available in different channel/stores.

Marketing is advertising- it communicates the product……

PRODUCT WARRANTY- protects the buyer and gives essential information about the product.
An express warranty is a written guarantee such as “ 100% pure cotton”
An implied warranty can be unwritten guarantee that produuct is good and fit for its purpose when it was sold.


One brand name everywhere
Adaptations and modifications
Different brand names in different markets such as:
e.g. sprite is kin in korea,
philip is benson hedges,
rejoice is pert plus


Persuasive labeling- focuses on promotional theme or logo, and consumer information is secondary such as standard promotional claim:
“ New”, “improved” and “ super”
Discounts promo “ save 10 pesos off” etc.

Informational Claim such as “ low fat, light, reduced cholesterols, less salt, no sugar, low carb and fresh.


It refers to a term, name, symbols, design, logo, graphics or combination of these design to distinguish the product from its competitors.
A brand can be of the following:
1. A proprietary name like Microsoft , Jollibee and Johnson and johnson
2. A group of numbers for chinese entrepreneurs such as 168 mall and 501 jeans from Levis
3. A combination of letters or acronyms or abreviations such as TRINOMA mall/Trianglr North of Manila, TGIF restaurant ,DKNY and YSL designers product and MOA for mall of Asia
4. A nickname like MCDO for McDonalds food chain

Classification of consumer products:

1. convenience
2. shopping
3. specialty
4. unsought

1.Product line- are groups of closely related product, variety of assortments available for consumption such as the variety offers by Jollibee as you examined their menu board, you can obviously see that every product are related with one another.

2.Product mix- are the total number of product lines offered by the company or breath and depth of their total line of items offer for sale.the title on top of the jollibee menu board are the actual product mix such burger, meal, side items etc.


Pertains to the heart of an organization’s marketing program, is usually the starting point in creating a marketing mix.
Marketing manager has to come up with product first to determine the price, design, a promotion strategy and also its distribution channel.


“ the starting point in creating a Marketing Mix”

Chapter 10

Conduct a field consumer research on shampoo haircare study most preferred by people in your neighborhood.
Awareness data:
When thinking about shampoo, what brand(s) come to your mind? What else. ( enumerate schools you want to use for this research)
Where did you learn about this brand? where else?( enumerate sources)
Do you rely and persuaded with brand that are commercially advertised?
What brand of shampoo have you heard or read in the past 6 months?
What is your insight about this brand? (major feature and characteristics)

Group research presentation

43% of non- users of mouthwash considered” toothpaste” as also a mouthwash, so they believed that toothpaste is enough.
32% feels that Mouthwash is only for people with bad breath and I don’t have any, “ its not necessary”.
31% are among users of mouthwash
86% dilute mouthwash with water to the extent of as much as 2/3 to ¾ of the solution
The challenge is to educate users in the advantages of using the product undiluted and if possible convincingly show to the non- users in the ads that this is false.
What is true is that they need to complement toothpaste everytime they brush their teeth with mouthwash to neutralize bad breath- causing bacteria.

The case of Mouthwash market( Listerine’s more usage strategy)

The data quantifies the 35% of the menstruating female population.
The marketing challenge is to find out how to convert the “ non- napkin using segment” by planning to launch an ads campaign for Modess.
Research data finds out that the 35% non- users are a dedicated group of users of “pasador” or indigenous home made sanitary protection or the so called discarded diaper cloth, undershirt and other used materials.
These are the said to be primitive napkin substitutes.
Female were ask why they do not want to use a more and hygenic commercial sanitary pads.

The case of “Modess converts” of non- user segment in the early 70’s

Comments on the following cases of advertising brand research taken from DR. Ned roberto from his book “ user –friendly Marketing research on how to use MR in advertising to make profitable marketing decisions.

UAI Advertising Research- pertains to consumer’s usage of the product, awareness of the brand and image perception about the brand.
This pertains to the technique in Analyzing the market and competitive Environment and Evaluating your product’s marketing performance.
It gathers two sets of data “ core” and “ classification” data which includes awareness, product usage, purchase data, attitude data and product and image data.
It diagnosed for uncovering marketing problem.

Identify the problem
Plan the research design and gather secondary data
Specify sampling procedures.
Collect primary data
Analyze the data
Prepare and present the report
Follow up

Steps in Marketing Research Project:

Everyday information about developments in the marketing environment that managers use to prepare and adjust marketing plans.
pertains to an interactive flexible, computerized information system that enables managers to attain and manipulte information as they are making decisions.

Marketing Information

Measuring message effectiveness is a difficult and expensive task.
The quality and value gained in advertising research outweights the cost.
The advertisers were able to know what effective message to proposed to the target audience that can possibly attain its marketing objectives.
Advertising research enables management to evaluate advertising’s contribution in achieving reasonable ROI.
Recall and memory are indicators to measures print advertising effectiveness.
“message research”- is undertaken to test effectiveness of advertising messages.


Decision Support Systems and Marketing Research

Chapter 9

Possible solution to the problem
Each alternative should be distinct with one another
Site the advantages and disadvantages for each alternatives.
Each alternative is subject for recommendation base on the choice of the group.

VI. Alternative courses of Action

The factors why such problem arises.
SWOT analysis of the brand/company against the competition
Competitors analysis

V. Areas of Consideration

It should be “ SMART” statement, specific, measurable, attainable, realistic and within the time bound.
To be able to increased sales by 15% by tapping new group of consumers such as teens and kids within the end of the year.
To be the leading brand in the papaya soap industry by trying to become a significant market challenger in the competition.
To generate 10% increase in profit from last year 5% net after tax at the end of the year.

IV. Statement of Objective

The year when case happens ( use current year)
Revised the case content if theres any changes about the brand or the company
How is the current year affects the brand in its respective industry
How is the industry situation on the current year.

II. Time Frame:

Brief highlight of the brand
Market situation in terms of competition
Brand diagnosis

I. Background of the case

Positioning strategies and product differentiation
Singapore air lines has the famous singapore girl as theircompetitive advantage for being charming, friendly, caring and energetic well mannered flight attendant who pays attention to all passengers demand in having a comfortable flights to their destination. Their major qualifications are intelligent, physical appearance and young.

Go Hotels by Robinsons Corporation starts their operartion by accepting on line booking for customers.

Cathay Pacific is one of the very first airlines who transacts on line booking and on board checking for customers.

Behavioral segmentation
The customers are divides into groups based on their knowledge, attitude and use or response to a product or the method of understanding behavior tendency of customers in the following variables: purchase frequency, user status, loyalty status and readiness.
Loyal customer most likely not entice with a price cut of competitors promotion.
Customers will go bar hopping depending on the location like quezon city can be attractive for customers if they are looking for a comedy bars and restaurant

Psychographic Segmentation variabes

It divides the customers into different groups based on social class, lifestyle and personality characteristics. It is more concered of asking customer on “ what you do” instead of who you are and “ how you spend your money” instead of how you earn?
They are more concerns on social issues such as: religion, politics, job , human rights etc., some of their personal interest is on family, food, shopping, friends, entertainment etc.

Figure 1-5: demographic segmentation variables
Age and life cycle, gender , income class, profession, family size, religion, civil status, class status, nationality.
Demographic segmentation examples:
Night bars like encore and white avenue caters to those who are at their LDA or legal drinking age which is 18 since they offer variety of liquors.( segmented by age and lifestyle )

It pertains to the process of subdividing the market into a distinct subsets of consumers, wherein every subset is called market segment or group of people sharing similar products or brands.
This market segments can be a possible target market or the specific group of potential customers meant for your product.

Market segmentation defines:

Product can’t be all things to all consumers or it is not possible for a particular product to be appealing to all kinds of market.
Consumers have unique needs and desires or segments are actually heterogenous in nature.
To identify the most feasible users that can give the most sales and profit to your product.

Why segments?

Market can be people who have the desire, willingness and ability to buy a product.
It can also be a company with needs and wants to buy a specific product for their operation.
Market segment- are sub- group of people with similar product preference.
Market segments can be a possible target market for a firm
This are subdivided market from a general market.

Background of the Topics

To identify the characteristics of market and market segments
The significance of market segmentation process
To identify the criteria of successful market segmentation
The bases of segmenting a consumer markets
The steps involved in segmenting markets
The How and Why company do positioning strategies and how product differentiation plays a role.

Learning objectives:

Segmenting and Targeting Markets

Chapter 8

Buying centers such as:
Evaluative Criteria
Service Buying situation includes:
New Buy
Modified Rebuy
Straight Rebuy

Business buying behavior are participated by the ff:

Raw materials- unprocessed extractive or agricultural products such as lumber, wheat, vegetables, leather materials etc.
Accessory equipment/supporting goods- generally less expensive and shorter lived than major equipment.
Major equipment such as expensive machines, generators and mainframe computers

Types of business products

Demand- derived demand for CM and inelastic demand for BM.
Purchase Volume- BM has bigger and larger volume of quantities purchase than CM.
Location of Buyers- BM are more geographically concentrated than CM.
Distribution structure- BM has a multi- channel or more points to pass than CM.
Nature of Buying- CM directly approach sellers while BM uses purchasing agents or country manager to deal business.
Type of negotiations
Use of reciprocity
Use of leasing
Methods of Promotions

Business market VS Consumer market can be compare in terms of:

Is a cooperative agreement between business firms which can take in form of licensing or distribution agreements, joint ventures. It can strengthen operations and better compete.
Relationship commitment- a firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely.
They maybe between manufacturers
manufacturers and customers
Manufacturers and suppliers
Manufacturers and channel intermediaries

Strategic Alliances/strategic Partnership

Relationships marketing is a strategy that entails seeking and establishing on going partnerships with customers.
-They act as business suppliers which uses platforms like Facebook, twitter, and other social networking sites to advertise themselves as well as promoting, informing, persuading and reminding business clients about what they can offer.
RM also leads to a long term relationships with customers and a way to build competitive advantage that is hard for competitors to copy.
The case of FEDEX Powership program includes series of automated shopping, tracking ,and invoicing systems that save customer time and money while maintaining their loyalty to FEDEX.


B2B/e- commerce- the use of internet to facilitate activities between organizations.
Today commercial websites really exist, look more like consumer sites with social media and building community applications.
You can request product, choose and then later place an order by mail or by call if all specifications had been done by the company.
The case of You Tube has a “ how to guide for B to B marketers about effectively using on line videos to promote other brands”.

Business marketing on the Internet
(business to business/B2B)

Describe business marketing
Describe the role of internet in business marketing
The role of Relationship marketing and strategic Alliances in business marketing.
Identify the four major categories of business market customers
Describe different types of business goods and services.
Describe the unique aspects of business buying behavior

Learning objectives:


The importance of Understanding Consumer Behavior

Regulatory Forces are restrictions and government policy and laws applied on business operations such as BFAD, Consumer protection, Optical Media Board and Intellectual Proprietary rights.

Technological Forces involved inventions and innovations from applied science and engineering research like:

Technology’s impact on customer value, Market space availability, Electronic Commerce, Internet and Commercial on line services.
Today’s retail industry is surrounded by increasing number of alternative products and private label brands. It answers the problem on tight budget of many households due to economic difficulty.

THE Micro environment Explained:

the company- pertains to their objectives and goals according to their marketing plans
suppliers- it refers to the over- all value delivery system of materials needed in their operation.
marketing intermediaries- act as in between company and its consumer by promoting, selling and distribution of their products.
customer- refers to the different types of consumer groups
competitor- it refers to companies providing greater customer value and satisfaction in the market place.
public- are groups that has an actual interest on the company’s achievements of its goals.

the food and travel industry, has an ever changing market from consumer taste preference, venue to eat and exciting places to go.
Foods are reinvented, services are more personalized and customize to achieve better customer satisfaction.
In this dynamic world of hospitality marketing,Manager should consider innovation, style and even design of product and services offer to meet the level of satisfaction of customer.

This chapter will focus on current changes and the transition of customer to a much challenging level of satisfaction.

And the different environmental factors affecting product and service operation as well as the psychological factor affecting customer purchase decision.



Pertains to moral standards and principles against which behavior is judge which includes,honesty, integrity, fairness and sensitivity i n ethical behavior(O’GUIIN,advertising and IBP 2006)
Advertising for Children- skippies are children ten years old below.
The newly recognized target market and considered a powerful influencers to parents. Normally kids ads are more lenghty and descriptive.
Most advertisers uses cartoon and animation to clearly get the kid’s attention to the message of the adssuch as ads on everyday milk and its benefits, healthy food that can increase intelligence as well as vitamins for strong and active energy. Childrencan easily absorbs deceiving ads due to their young minds.

Ethics defined in advertising

Gen X – 18 to 35 years old
Gen Y- 17 below/ high school teens
Skippies- 12 y/o below/kids
Beauty seekers segments- young adult and matured in 40’s to 50’s who are into active used of cosmetic products, beauty enhancement, still vain and concious of being glamour
Male Metrosexuals- straight guys who are so concious with their looks, glamour, wear more cosmetics than women
Dual earners- family where both parents are working
Single parent- independent provider for the family
The Baby Boomers born in the early 60’s which are considered now as group of segments who are stable, generated a lot of properties, with successful carreer, having a high purchasing power

Examine the following:

Is one that cannot be copied by the competition like:
Video on Demand the cable movie subscription service has a steady hold over the movie rental market.
Consider the million subscriber of sky cable in the country.
The case of iphone aplication and download system


Product Development

The case of Virgin airlines which includes a bar at the back area of the business class.
The case San Mig Coffee from the usual beer products of SMC.

The Case of Retail Malls such as SM expansion by developing condominium within the malls of Shoe Mart.

Johnson pure essentials of J and J by tapping the younger and adult market in consuming refreshing face powder.
Smart for kids, Sustagen prime and junior variants
Lipovitan IRA for women market

Market development strategy

The case of Selecta’s 3-1 plus 1 generates heavy consumption of ice cream taking the advantage of various flavors in one container.

Bounty fresh chicken’s create “ chooks to go” increase consumptions and create new market on neighborhood.

Growth strategy applied:
market penetration

Growth Opportunity in the market can be classified by using portfolio planning tool for identifying company growth and opportunities through:

Market penetration- a strategy by increasing the consumption of consumers without changing the product.
Market development-a strategy by identifying new group of consumers or segments of users to the current product.
Product development- the company develop new product for the new group of segments.
Diversification- a srategy for company growth by starting up or acquiring business outside the company’s current business and market.

Developing Strategies for Growth
A portfolio planning is a tool for identifying company growth opportunities through market penetration, market development, product development and diversification.
The Growth Opportunity Portfolio enable the company to detrmine what growth strategy can be done regarding the SBU’s in terms of product and market expansion grid.( ansoff/marketing management 2009). By working closely with partners in other company departments and even outside the company to bring greater satisfaction to customers.

4. Strategies for Growth

Branded and signature product are low sales but high profit due to high mark up margin on top of the cost.
Nokia launch new series adopting price skimming or launching the new brand with a high initial price.
Starbucks price is enough for the company to retain profit without targeting too much sales or adopting the strategy of having a low sales but high profit.


Street eatery such as “tapsilog” carinderia are open 24/7 targets the blue collars and the night shift workers as new users for the product.
Evaporated milk are not just coffee creamer are reposition as ” the cooking milk” to increase consumption for the product when they captured the household and culinaries with their new kitchen recipes
Zero sugar cola- tapped the gyms and fitness centers as new territorials to develop new market segments or those people who can not take sugar content on the regular coke but cannot resist on softdrinks.

Examine the following to understand how strategy works for the improvement of the Firm’s KRA:

2. Managing employees- human resource and marketing department must work closely together.
a. Internal marketing- involves the effective training and motivation of customer- contact employees and supporting service personnel

Characteristics of service marketing: INTANGIBILITY

Hospitality marketing defined: (kotler 2010, hospitality and Tourism marketing)
Is a service oriented activity between a company and the customer from the approahed stage, order taking, handling and assembling the order up to finally serving the product to the customer.

It is a misconception of considering marketing is only selling and advertising but it is more of a hands on and customized and personalized handling of every client.

Hospitality marketing is a face to face encounter between a service manager and a walk in customer.

Food handler should always put themselves on the shoe of a customer or what we called “ customer orientation”.

You don’t just satisfy the company but more so with the customer.

Customer satisfaction will lead to repeat buying and later on lead to company’s profit expectations.

Cabalen restaurant a popular pampanggas restaurant satisfy their customer who wants to eat more at a reasonable price with their daily promo of “ eat all you can” in all their branches.

The above mentioned factors are just some of the significant elements in your passport to success in the food and hospitality industry.

Marketing for Hospitality and Tourism includes: ( kotler 2010)

1. Food with integrity
2. Fresh ingredients
3. Organic, Naturality Raised Foods
4. Restaurant Environment
5. Pricing
6. Loyalty
7. Social networking

Jollibee Foods Corporation is not a household name when it comes to the global market. But in the Philippines, it’s the king of the burger market. One industry analyst said “if McDonald’s is the Goliath of fast food, Jollibee is its Filipino David.”( hubpages,yahoo.com)

Insight: being a local market leader can lead to be successful also in the global market or viseversa.

Figure 1. the fastfood chain industry:)

Restaurant can be a fine dining like Gloria Maris or Via Mare, a fast food chain or quick service restaurant like McDonald and Jollibee, a small kisok or booth like binalot and waffle time or a food packed in a styrofor and deliver by a simple vendor in dfferent offices or exhibit in the middle of the street consumed heavily at a fix price at eat all you can restaurant like cabalen.

Food is one of the basic necessity to survived in this world. Its always been a priority of every consumer in their weekly budget. It has the biggest slice in the total consumption of household expenditures. Food is everywhere and anywhere in whatever form and served to customers. Restaurant is one of the biggest venue for food where people gather together, bonding and spent money just to satisfy their hunger for food.


Marketing as applied in : Hospitality and Tourism
Previewing the concepts:
This chapter unfolds the significance of marketing in the field of hosptality services in hotel travel and Tourism.
It answers the questions why marketing is very useful in the field of hotel and Restaurant management and Tourism industry.
How marketing strategy is applied in different service oriented establishments such as hotel, restaurants and travel.



Introduction to:

Few years back, Toyota launch Camry and Altis high end edition car to revive its prestige in the market, but still toyota is just one of the follower of Honda. AS of today looking at the future direction of Toyota, what would you suggest to be able to make Toyota a serious challenger and be a leader in the car market?

8. Pleasure trip along top Asian countries.
9. Award winning acting of Leonardo D Caprio on his movie Inception
10. A simple apartment along sampaloc manila

4. Jucilicious “chicken joy” for lunch.
5. Quality education at State UniversitY.
6. Thrilling experience watching a 3D movie at Imax CINEMA
7. Fresh air and water to survive.

Instructions: Determine the following product weather Need, wants, Expectations OR COMBINATION.
Cars like BMW, Mercedezbenz and Ferrari.
Town house with ample potable water with car garage for two cars and enough space to entertain at least 50 guest.
Fresh vegetable and fish in the wet market


Building Customer Relationships starts with:
Customer satisfaction- when the total customer satisfaction with the product has been met or exceeded.I
t is not only on the product itself but more so with customer services and how you deal with them during transaction as well as after services that a marketer can do with the customer after purchase.

Marketing Applied
Outstanding marketing companies understand the market by applying segment priority needs that will answer the satisfaction of consumers.
Needs are basic necessity for survival and wants are shaped in psychological and culture of a person.
Demands are backed up by purchasing power and expectation are benefits of consumer about the product in the long run.
Marketing research handles and gather the consumers information and evaluate these data as a basis in their decision making on what to produce and deliver to the market.

Merchandising and inventory of products stocks to attracts…….

Lectures in Principles of Marketing

Specialty product- these are items that consumers requires a special effort to search out and buy. Sometimes hard to find or minimal store availability such as antique collections, fishing equiptments, vintage cars etc.

Specialty products

1.Convenience products- items that are frequently bought by consumer with minimal planning and effort such as those available in 7-11 and nearby store ( sari- sari store) along residencial community.

Convenience products

Product – is everything both favorable and unfavorable that a person receives in an exchange.

Anything that is offered to a market for attention, acquisition use or consumption that may satisfy a want or a need. It includes physical objects, services, places , organization and ideas.


What is a product?
Classification of consumer products
What is product item, product line and product mix
Describe marketing uses of branding, packaging and labeling.
Global issues on branding and packaging.
The importance of product warranties.


The “new user” strategy of Johnsons baby powder.
Research findings is a little over 30% of adults used johnson baby powder not only for babies but for themselves.
The challenge is why only 30% why not 60% or better yet, why not all adults?
This led the campaign for Johnson Baby powder whose ads copy is still remembered today: “ If its good enough for baby, its good enough for you”
They hit over 80% unit increase after the advertising launch on media.
“More usage” strategy pertains on powdering baby’s body area that is very much less than of an adult.

Positive results of Advertising research: the case of J&J “ best for baby best for you”


THE CASE OF “ RICE MATE” A rice enhancer ads campaign “ ang murang bigas ay magiging mamahaling kanin” rice flavoring mix.


It refers to the process of planning, collecting and analyzing data relevant to a marketing decision.
3 Roles of MR are:
1. descriptive- includes gathering and presenting factual statements. (e.g. sales history)
2. predictive- to address “ what if” questions.
3. diagnostic- to predict results of a planned marketing decisions.

Marketing Research defined:

Doer are normally research agencies paid by the company (User) to conduct data gathering for their more intelligent and strategic marketing decisions.
Accurate and timely information is the lifeblood of marketing decision making.
It can help the company to maximize sales and efficiently use limited resources.
To prepare and adjust marketing plans based from gathered marketing information.

Doer VS. User

Explain in full details your chosen solutions to the problem following the format below:
Time context: when to execute the solution
Description of the strategy
Person responsible to implement the solution
Desired goal for the solution

VIII. Marketing Action Plan:

Conclude your choice or combination of alternatives for your recommending solutions to solve the case problem.
Site the major reasons for the said choice of recommendations.

VII. Conclusion and Recommendation:

The primary marketing problem encountered in the case.
Statement could be affirmative or question type of statement.
It should be stated clearly and specifically affecting the whole company or the brand situation.

III: identifying the problem

Case study format

In solving Marketing cases

Producers – are often called original equipment manufacturers or OEMs.
Resellers- includes wholesaler and retailing business who buys finish good and resell to final consumers.
Government markets- government agencies who purchased goods for their operation and its constituents.
Institutions such as schools, hospitals, churches,civic clubs etc.

Major Categories of Business Customers (Business markets)

Rustans Group of companies and Starbucks and Kenny Rogers
Canadian brand like Aldo, ODM, Charles and Keith with Suyen corporations
ABSCBN with Endemol
CREDIT cards company and Retailing stores
Reintermediation stratgy- is the reintroduction of an intermediary between producers and users.
Trust- the condition that exist when one party has confidence in an exchange partners reliability and integrity.

Examples of Strategic Alliances of business companies

The elimination of intermediaries such as wholesaler or distributor from a marketing channel.
The case of Dell Computers and WALTER mart
Dell sell directly to business buyers and consumers through the use of Twitter they were able to sell their overstock inventory.
Large retailers like waltermart use a disintermediation strategy to help reduce costs and prices.

Disintermediation: trends in B2B internet marketing

Is also called industrial marketing is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.
A product that is purchased for personal or family consumption or as a gift is a consumer good.
If its intended for business such as PC units in the office that is a business product.
In short any purchased of product from a supplier company intended to use for business by another company it is considered “BUSINESS MARKETING”.




Stages in the Adoption Process
Evaluation is when the consumer considers whether trying the new product makes sense.
Trial is when the consumer tries the new product to improve his or her estimate of value.
Adoption is when the consumer decides to make full and regular use of the product.

The Buyer Decision Process for
New Products

Purchase Decision
The purchase decision is the act by the consumer to buy the most preferred brand.
The purchase decision can be affected by:
Attitudes of others
Unexpected situational factors

The Buyer Decision Process

Need Recognition
Need recognition occurs when the buyer recognizes a problem or need triggered by:
Internal stimuli
External stimuli

The Buyer Decision Process

Habitual buying behavior occurs when consumers have low involvement and there is little significant brand difference.
Variety-seeking buying behavior occurs when consumers have low involvement and there are significant brand differences.

Types of Buying Decision Behavior

Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands.
Post-purchase dissonance occurs when the consumer notices certain disadvantages of the product purchased or hears favorable things about a product not purchased.

Types of Buying Decision Behavior

Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior

Types of Buying Decision Behavior

Characteristics Affecting
Consumer Behavior

Psychological Factors
Beliefs and Attitudes
Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Characteristics Affecting
Consumer Behavior

Psychological Factors
Beliefs and Attitudes
Belief is a descriptive thought that a person has about something based on:

Characteristics Affecting
Consumer Behavior

Psychological Factors
Learning is the changes in an individual’s behavior arising from experience and occurs through interplay of:

Characteristics Affecting
Consumer Behavior

Psychological Factors
A motive is a need that is sufficiently pressing to direct the person to seek satisfaction.
Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations.

Characteristics Affecting
Consumer Behavior

Personal Factors
Personality and Self-Concept
Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment.

Characteristics Affecting
Consumer Behavior

Personal Factors
Lifestyle is a person’s pattern of living as expressed in his or her psychographics.
Measures a consumer’s AIOs (activities, interests, and opinions) to capture information about a person’s pattern of acting and interacting in the environment.

Model of Consumer Behavior

Consumer buyer behavior refers to the processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.
Consumer market refers to all of the personal consumption of final consumers.

Social forces includes demographics, population characteristics such as gen X and Gen y, baby boomers, maturing households, the entry of male metrosexuals and the beauty seekers segment.

Philippines is a coffee drinking population while Neighboring country like china, korea and Indonesia are more of a tea drinkers.

Social forces affecting marketing environment

In marketing fashion and trend are normally in short term.Designs come and go brought about by marketing environment where everything is ever changing, what is in now will be out tomorrow.


The External Environment and how it affects the Company
The social factors affecting Marketing
The significance of Demographic trends
The impact of Technology to the company
The political and legal environment affecting the marketing operations
The basics of foreign and domestic competition.

Learning Objectives:

Malicious title/ branding may also impact on the ethical aspects of advertising like “ chupachups” lolllipops with a popular tagline “ the joy of sucking”, or the rap song title of Andrew E. Mali Vodka sounds sexually malicious in repetition.

Malicious title

Privacy or Appropriation- the use of pictures and images owned by someone without permission posted on a brand promotional materials like posters and billboards, or in giveaway calendars as freebies for loyal customers.
Copyright or no parts of the product can be reproduced, written permission is required

Privacy or Appropriation

Brand exposure or verbal without permission- any exosure in advertising is paid, if you wish to show the brand in a particular scene in a movie or sitcom, you may do so through product placement but you have to pay the lenght of exposure by seconds or minutes.

Sharon Cuneta in all of her movies we can observed product placements in all of her brand endorsements

Brand exposure

Self regulation like in the case of cigarretes, infant powdered milk and alcohol drinks.
Reminder ads at the last part of the frame:

“ cigarettes smoking is dangerous to your health”
“ Breast milk is still best for babies”
“ If you drink , Don’t drive

Self Regulation

Defamation- when a certain communication materials , written or verbal damages the reputation of an individual or brands and these leads to slander and libel cases.
Like the case of McDonald unhealthy food


Examine the following and express your insights and comment in the aspect of ethics and social responsibility it affects to consumers.

The goal of the company is not just to sell but they have to consider the importance of the well- being of their customers in the society they belong.
Major manufacturing plant closed to residential areas established a waste management system along the area by securing equipment for their waste disposal process in their daily operations.
Aside from donating a garbage container in the residential community, It gives assurance for the people living in nearby the factory plus providing a short term employment and livelihood program to these residences.


Companies are not just into producing and creating or developing new products for profit reason.
They also considered the well being of the consumer by producing less toxic and environmental friendly product that can still satisfy consumers and generate profit for the organization.
Organizations are affected by restrictions and policies imposed by the government. They served as eye and ears for the legal operation of every business.


Product: Lifestyle Coffee Bar which offers freshly bean coffee and cozy ambiance.
Price: Php. 100 – to 200 per servings
Place: Normally based on high end Malls along Makati, Manila and Quezon City or newly reinvented places such as Global City and Eastwood.
Promotion: word of mouth, no formal advertising but offers in store customer promotions.

Starbucks’s Marketing Mix and its Target Market segments

The goal in HM is to create value for customers and build profitable customer relationships. Next is:
Marketing strategy or the logic by which the company does the action to achieve this objectives such as:
Decide which customers to be served ( segmentation and targeting)
How to differentiate its service and position the company in terms of the marketing offer.( positioning)
Identifies the total market and divide them into smaller segments, selects the most promising group that can give the company the most profits.

Marketing strategy



Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
MOA/market opportunity analysis

Describing the Target Market

Pertain to statement of what is to be accomplished through marketing activities. It should be SMART, specific, measurable, attainable, realistic and time bound.

Setting Marketing Objective

THE CASE OF: BANCO DE ORO the 2nd largest Retail banking due to service advantage against leading banks. They are open till 6pm daily and open in mall branches on weekend.


chowking meet the taste and preference of pinoy in the “ pinoy chinese noodles” segments

Fastfood chain is surrounded by strong competitiors diverting the taste of pinoy on chinese style of food.

The collection and interpretation of information about forces, events, and relationships in the external environment.
The process spotting a trend and determined if it pose an opportunity or threats in the market.

Environmental scanning

Understanding the potential environment in which the product or service will be marketed.


Growth opportunity matrix define how company expand its growth potential in:
capturing bigger slice of the market and also tapping new areas of the market space
as well as new segments of the industry by improving current marketing strategy , creating new users
and adapting new opportunities for the campany.


The Boston Consulting Group/BCG Matrix

Developing the Business portfolio- is the company’s appropriate strategy for every SBU/ strategic business unit or defining a separate strategy for every brand offered in the market.
Every brand is considered one SBU with separate marketing plan and strategy from the other brand of the company’s product.
The case of UNILEVER Corporation
Personal care products are strategically marketed with distinct strategy against their household and food products.

3. The Business portfolio/ the SBU ( strategic Bussiness unit)

SMART-PLDT bought digitel company who own sun cellular to dominate the biggest market share in the telecom industry.
Cebu Pacific steal share of the market in the sea and land transport industry offers the lowest rate fare to customers adopting cost advantage strategy to gain brand shifters.

Market share

Marketing strategy are plan of action that a company can executes and implement to achieve its goals which includes:
Tapping its desired target market and
Develop and implement an effective marketing mix in their marketing program.

The Process of Planning Marketing strategy

Pertains to the managerial process of creating and maintaining a fit between the organizations’ objectives and resources and the evolving market opportunities.
It focuses on the “game plan” or strategies of the company in achieving its goal.
The impact to the 3C’s of Marketing

Strategic Planning

Describe the components of situation analysis
Identify the sources of competitive advantage
Evaluating criteria for a good marketing objectives
The target market strategies
The Marketing mix
Implementation and control in the marketing plan

The importance of Strategic Planning
Define SBU’s/strategic Business Units
The significance of Marketing plan
Defining appropriate mission for the company

Learning objectives

1. Tangibilizing the service product
Trade dress
Employee uniform and costumes
Physical surroundings
Greening of the hospitality industry

Management strategies for service Business

Healthy service profits and growth- superior performance
Satisfied and loyal customers- repeat purchase
Greater service value- efficient customer value creation
Internal service quality- superior employee selection and training.
Internal marketing- customer – contact employee motiation
Interactive marketing- perceive service quality defends on employee interaction.

Management strategies for service business

VARIABILITY- the quality depends on who is providing the service.

Partners for Profit: the achievent of customer success (Relationships marketing)
The above examples emphasize the efforts of the company to render superior value customer satisfaction in return customer endorse the product to others and create a word of mouth or a widespread of viral marketing. This is the result of “ Relationship Marketing” by having customer as a “ Partners for Profit”.

The company is responsible in satisfying the needs of customer by providing them product with superior value
having price right for the value, making it always available in a strategic distribution points
and communicates effectively its positioning and image so these product will sell easily in the market.
The brand essence and value or why it is uniquely different from others and the brand direct connection to consumer’s need priority.
Company are taskto develop product that will meet the desire and demand of the market.

Marketing Explained

Marketing Defined(kotler, Armstrong, marketing global perspective)
A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Some marketing professionals like professor greg carpenter, mostly new products are sixty percent unknown to the market. Learning must happen to consumer to expects success for these products. Consumer must realize what they want and this is possible as they experience new products coming in the market.

Selling Concept- this concept holds consumers will not buy enough volume of products unless the product is under an aggressive seling and promotions.
This concept emphasized that consumers are said to be “promotion driven” to motivate them in their purchase decision.


Product concept- it holds that consumer will favor product with most quality,and improved features.
This concept can be observed on personal devices such as cellphone, laptap and Ipad which satisfy consumer in terms of extended innovative feature such wifi ready and photo editor.


Production concept- this concept holds consumer will favor on products that are highly available and affordable.
CHINA is one of the biggest manufacturer in the world of consumer product and proven to supply products high availability at a cheaper prices.


Marketing pertains to the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

Its not only mean personal selling
Marketing is advertising
Marketing is making the products available in stores and merchandising displays but also maintaining inventories of products for future sales

Marketing defined:

Unsought products- are items that are limited in nature, consumer has lesser awareness for the existence of these product. Sometimes you know it or you dont know but you dont inially want it such as burial insurance, palm computers., for rent coffin etc.

Unsought products

Stages in the Adoption Process

Awareness is when the consumer becomes aware of the new product but lacks information.
Interest is when the consumer seeks information about the new product.

The Buyer Decision Process for
New Products

Post-Purchase Decision
The post-purchase decision is the satisfaction or dissatisfaction the consumer feels about the purchase.
Relationship between:
Consumer’s expectations
Product’s perceived performance

The Buyer Decision Process

Information Search
Information search is the amount of information needed in the buying process and depends on:
The strength of the drive,
The amount of information you start with,
The ease of obtaining the information,
The value placed on the additional information, and
The satisfaction from searching.

The Buyer Decision Process

Five stages in the buyer decision process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase behavior

The Buyer Decision Process

Complex Buying Behavior
Occurs when consumers are highly motivated in a purchase and perceive significant differences among brands.
Purchasers are highly motivated when:
Product is expensive
Product is risky
Product is purchased infrequently
Product is highly self-expressive

Types of Buying Decision Behavior

Characteristics Affecting
Consumer Behavior

Psychological Factors
Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes:
Selective attention
Selective distortion
Selective retention

Characteristics Affecting
Consumer Behavior

Personal Factors
Primary motivations

Characteristics Affecting
Consumer Behavior

Personal Factors
Occupation affects the goods and services bought by consumers.
Economic situation includes trends in:
Personal income
Interest rates

Deception like promising a benefit or quick results to customers like in the case of Ponds Age Miracle , wrinkle free in 6 weeks, or whitening soaps in 7 days. (truth in advertising


Demeaning and double meaning ads message – it plays on to people and more concern with the negative meaning the “ Red Horse, Ito ang Tama” connotes negatively and it encourages brand preference and brand shifters because of its claim as a “ extra strong beer”.


misleading and Unfairness – a situation when consumer are misleading to the representation of the ads or making consumer convince and believe in what they see.

In the case of comaparativeTV ads of a detergent brand executing a testimonial proof that their brand can actually removed stains from ink and food substance and even grease

Misleading and Unfairness

Puffery- pertains to brands superlative claim as number one, the best, the most entails being far better than competitors creates a misinterpretation and misleading to consumers.

“ sa Sustansiya at lasa,wala pa ring tatalo sa Alaska” ----------Alaska powdered milk
NIDO, the Worlds number 1 Milk----------------------Nido powder


Refers to the moral principles or values that generally govern the conduct of individual or a group.
Ethics pertains on the physical action that can be observed both for customer and company particularly their offerings for their target market.




Gen X, college students from private and exclusive University, Yuppies or Young Professionals and corporate people and businessman.

Target Market

One good example of a marketing plan carrying a hollistic brand campaign is the launching of NESTLE Corporation’s “Choose Wellness, Choose Nestle” a campaign shift of the company into a healthy brand in all their product lines.it communicates for example that coffee has the highest source of anti oxidants which is vital to the body metabolism

The case Nestle



Cost advantage
In terms of price against leading brand of laundry soaps such as Bonux for P and G to answer the low end price competition.

Competitive Advantage such as:

Defining Mission statement- Defining mission is a statement of the organization’s purpose or direction on what it wants to accomplished in the larger environment .

Mission can be of the following intensions:
to create and serve customers, or to make profit by providing right price product and services.
It can also be outperforming the competition or
maybe provide employment opportunity for people and

1. Mission

How to execute the Steps in Developing a Company’s

the strategy of “Every JUAN can fly
Low cost, Great Value, ticket booking revolution
Creative pricing strategie
They start selling cheaper package ticket tour around asia by affiliating with different travel agency and hotels around the world.
Tag as “ game changer”

Cebu Pacific’s: fun flights game plan



Chapter 2

Service characteristics of hospitality and tourism marketing

Sun Broadband company provides the lowest rate and fast internet connection among its competitors.

Price satisfaction to customer and sales to company

SHOPWISE AND WALTER MART provide so many services that are convenient to shoppers such as:
“ prestige lane” for frequent shoppers aside from their everyday discount products.

Needs,Wants, Demands and Expectations
Needs are tate of felt deprivation on the basic necessities for survival.
Wants are felt needs shapes by individula personality and cuture.
Demands are wants of consumers backed up by purchasing power.
Expectations are benefits enjoy by consumer in terms of product performance results in continuous use aside from its value and satisfaction given to consumer.

Women’s need for feminine hygiene and wants for extra clean and fresh and demands for satsfaction.
Phcare was lunch in 2003 satisfying the 80% category of non -users of feminine wash who relized that pH care balance was suitable for vagina’s daily care protection and it contain enough pH which is 3.5.
Unlike lactacyd of Sanofi which is more position as medicine against infection.
PH care is double price lower than the dominant brand and highly available in almost retail store unlike the brand leader which is very prominent on leading drug store and PH care was launch using the powerful endorsement of Sharon Cuneta and her daughter KC plus prominent women like Dawn Zulueta.

Societal marketing Concept- this concept is not just to offer and sell the product to achieved satisfaction but also to maintain social responsibility and concern with the customer’s well being.

Midas hotel is very visible and cooperative in joining environmental program with other company such as “Run for the Pasig River” campaign.


Marketing concept- this concept holds that organizational goal can be achieved by identifying the needs and wants of consumer by delivering satisfaction better than competitors.

FEDEX deliver overnight mail and packages all over the world by maitaining their company mission as communicated in their Brand tagline” We live to deliver”.


Marketing Management Philosophies

And more such as branding and creating customers, sales and profit

Many people think marketing is personal selling


“ in the midst of so many mee tooed products and great immitations, and the entry of class A product, we tell ourselves at the end of the day,
Theres nothing like the original! “ it is the one wearing l!”
“ not all that look expensive are impressive”

2.Shopping products- items that requires more planning and effort, less frequent in buying and usually bought on the basis of quality, style, design, price and features that are available in a product as actually demanded by shoppers such as fashionable bags, shoes, accessories, watches and clothing apparrels normally found on shopping center and malls

Shopping products

Evaluation of Alternatives
Evaluation of alternatives is how the consumer processes information to arrive at brand choices.

The Buyer Decision Process

Characteristics Affecting
Consumer Behavior

Psychological Factors
Beliefs and attitudes

Personal Factors
Age and life-cycle stage
Economic situation
Personality and self-concept

Deceiving price- are promotional gimmicks of the company as come on factor to their target market like:

in the case of condominium “ pay as low as P7000 pesos no down payment” but in reality that is only on the first 6 month, on the 7th month you’ll pay in full amount of the actual monthly computation based on the principal amount.
Hawlett Packard charge a very small amount on printers but the cartridge are very expensive.

Deceiving price

Retailing business such as hypermarket and supermarket requires the use of environmental packaging every Wednesday in all of their outlets to contribute for maintaining a green environment.
The use of suggestion box, comment cards, on line customer response or consumer net were establish to handle any ethical cases on day to day transactions between retailers and buyers.

Social responsibility

Setting Objectives and Goals- is building profitable relationship with customer through:
Effective relationship marketing and being partners for profit
By developing better products and getting them to market faster at a lower costs.

The case of C2’s Health goal in dominating RTD Beverage market. ( Blue Ocean Strategy)

2. Objective and Goals

jollibee alone is 65% not to nclude chowking, Greenwich which comprises a total of 75 % of the total industry market share in the foodchain category which declares Jollibee Food corporation a market dominating brand. ( as of 2008,jollibeepublication) last 2013 JFC bought the 75% stocks of Mang Inasal declaring them as the owner of the said brand

The case of JFC in the food chain industry

Sales -which can be improved by customer strategy
Market Share- byoutperforming your primary target and lead the competition
Profit- by generating reasonable profit at the end of the period. In marketing we believe that satisfaction of customers may lead to profit that eventually satisfy the company.

Key Results Areas

The World of Marketing

An overview of Marketing

Chapter 1

It refers to any container surrounding the product which carries benefits to consumers such as informational, protection of the product and perceptual benefits or the consumers perception on what they see on packaging.



POSITIONING- aligning the marketing mix to yield distinctive appeal for target segments.

TARGETING- -choosing a specific segments as your intended target market

SEGMENTING- breaking down the general market into manageable segments.

Characteristics Affecting
Consumer Behavior

Personal Factors
Personality and Self-Concept
Brand personality refers to the specific mix of human traits that may be attributed to a particular brand:

Characteristics Affecting
Consumer Behavior

Social Factors
Reference groups
Roles and status

Cultural Factors
Buyer’s culture
Buyer’s subculture
Buyer’s social class

Model of Consumer Behavior

Other stimuli include:
Economic forces
Technological forces
Political forces
Cultural forces

Marketing stimuli consists of the 4 Ps
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