Chapter 1

THE MARKETING SYSTEM: It is a social process which directs and economizes flow of
Its Nature and the Elements goods and services from producers and consumers in a way which
effectively matches supply and demand and accomplishes the
objectives of society. It is the performance of activities which seeks to
Marketing is a dynamic and the most up-to-date activity, it
accomplish an organization’s objective by anticipating customer o
being present in everywhere we go. It is always centered around the
client needs and directing a flow of needs-satisfying goods and services
customer who is the concern of anybody under marketing
from producer to consumer or client,
management responsibility.
It is also known as a total system of interacting business
The prime goal of a marketing system is the efficient utilization
activities designed to plan, price, promote and distribute want-
of those resources that nature has made available to man in order to
satisfying products and services to present and potential customers.
satisfy man’s unlimited needs. In this context, the marketing manager
Synthesizing the preceding definitions, we can thus come up
thus outlines strategies to generate revenues by creating products and
with the following acceptable definition of marketing.
services that are wanted, needed and that will satisfy needs at a profit
Marketing is a system concerned with the planning and
and in a socially service that enhances the quality of human life and
development of products and services, determination of prices,
society, making it not only profit-oriented but also marketing
creation of promotional programs and distribution system to present
development oriented.
and prospective market for satisfaction of their existing needs and
wants, thus maximizing profit in the long-run.
Definition of Marketing
Marketing is working with markets attempting to actualize
Analysis of the Definition
potential exchanges, a human activity directed at satisfying needs and
Production and distribution complement the total marketing
wants through the exchange processes.
system. The first element in the definition is that “marketing is a
It is also defined as a complex business process directed
system”. As such, it requires planning to determine the products o
towards satisfaction of consumers’ present and future wants through
services that must be produce. It also involves the organization of basic
supply of goods and services and in the end would reward those
resources involving money or budget and machineries which will be
engaged in such activities.
utilized for creating the goods and services. Finally, the direction and
It is the process in a society by which the demand structure for
control of these elements make it a system in itself, for purposes of
products and services is anticipated or enlarged and satisfied through
evaluating whether products planned were successful of failures thus
the conception, promotion, exchange and physical distribution of such
requiring further development.
goods and services.
 The second element in the definition is “the product or service
planning and development, pricing, promotion and place of
distribution”. Known as the marketing mix, these four variables are or
in some references known as the four P’s of marketing. Below
illustrates the elements.
As a marketing manager, the first task of any service and
profit-oriented entrepreneur is the determination of the right products
or service, to produce or sell, evaluation of whether existing products
or services require modification. This function is known as product
planning and development.
As a businessman, profit maximization in the long-run is
aimed, so that reasonable price determination is necessary. These
products can be sold best with the help of promotional programs which
include administration of personal selling, advertising, publicity, public
relations and sales promotions.
Finally, marketing objectives can only be achieved if these
products and services will reach the hands of the consumers.
Development of strategic places of distribution o selling outlets should
be planned, so that consumers can avail of the goods and services
when their needs arise.
Third element in the definition is the “presence of current and
potential market”. Market consists of the buyers or users of the
products or services. Product planning and development is undertaken
to fulfill demand of current buyers and thereby perceiving or
forecasting needs of a future market. This can be done by developing
the products o services, their features and benefits.
Fourth element is “satisfaction of existing human needs and
wants”. It is said, based on economic principle, that human needs and
wants are insatiable. Within this context, it can be seen that buyers
continuously demand for new or developed goods for their satisfaction.
It is within these needs that new products should be planned and
developed. And within these needs satisfactions can sales assurance be
obtained, as human requirements are fulfilled.
Operational Dimensions of Marketing
The total marketing system operates around these dimensions:
the marketing organizations or marketers; the things to be marketed;
the target market of the buyers.
In the layman’s language, marketers may mean the buyers. But
within the marketing context, marketers are the marketing
organization, the product or service sellers. Specifically, they are the
producers, manufacturers, wholesalers or retailers of goods. Producers
are those institutions who buy raw materials and process these into
final products. Examples are institutions who buy raw materials such as
animal or cow-skin for shoe-making. Manufacturers are those buying
intermediate or half-finished materials and process these into final
products. Examples are institutions who buy dyed- leather products
measured per meter for use in shoemaking. Wholesalers are
institutions who buy final-finished products and resell them in bulk in
the same original form. Retailers are those who buy finished products
and re-sell in small quantities and in the same form to final users.
Things to be marketed account for any of the following: the
products, the services, the ideas, the institutions or people. In
marketing goods, it may not only be the tangibles but can also be those
intangibles. Products are those tangibles such as pens, appliances and
shoes. Services are the intangibles, such as the ideas of selling spa
outlets, barber shops, health and beauty shops or catering services.
Ideas are sold through institutional advertisements not mentioning any
specific brand but reminding people about public services of the
company, values, policies. Institutions, are sold by selling organization's
image or goodwil. Example can be selling school by advertising for the
enrollment schedule and course offerings to attract buyers or
enrollees. People can be the concept of selling the platform or goodwill
like that of a political candidate. His promise during the campaign is his
platform or the product, and those who will elect him is a realization of
the buying process.
Target markets are the buyers of the goods. They can be the
present product users or they can be the prospective buyers being
targeted by the marketing organizations.
Market shall not mean "palengke", but "people" with needs to
satisfy, capacity or money to spend, and willingness to buy. These
people, as a target market, are grouped into two classifications: the
consumer market and the industrial market.
Consumer market are those who buy goods for their own
personal use or purpose, Such as buying a personal computer to
accomplish one's academic requirements. Industrial market are those
institutions or people who buy industrial goods either for.the purpose
of using in business operations; such as buying units of computer for a
recruitment agency operations; or for re-sell purpose, like buying the
same product for re-selling to clients or companies. Objective of the
industrial market, whatever is their purpose in buying the product, is
mainly to gain profit out of the purchased industrial goods.
Marketing Concept VS. Selling Concept
These two concepts are now new organizations within
marketing. They are known to be marketing management philosophies.
A businessman is given these two concepts as his options, and has to
decide which among the two shall be chosen. But of course, since the
context of the course is marketing- it is hereby suggested and
recommended that marketing concept will bring better results than the
other.
Marketing concept is a management orientation which holds
that they key task of the organization is to determine the needs and
wants of the target markets and to adapt the organization to delivering
the desired satisfactions more effectively and efficiently than its
competitors.
Selling concept is a management orientation which assumes
that consumers will either buy or not buy enough of the organization's
products unless the organization makes a substantial effort to
stimulate their interest in its products.
Commonly, these marketing and selling concepts are
confusing. These were drawn as the main contrasting point of both.
Marketing concept is focused on the buyer's needs while selling
concept is focused on the seller's need. With these foregoing, it can be
deduced that buyer's interest is satisfaction of needs, while seller's
concerns are maximization of profit and social service to enhance
quality of human Iife and society. Both these goals can be
systematically achieved through the use of marketing concept. But how
it is achieved? Producing quality and reasonably priced goods that are
needed, will result to profitable sales level, So as the buyers need for
quality goods are satisfied, sellers need for more profit and sales are
also achieved.
On the extreme, selling concept wants to economize, so no
research was made. Pace of conceptualization and actualization are
done at faster rate. The philosophy wants immediate production
without discovering: Is it wanted? Are the products needed? Can there
be sales or profits? With the availability of the products, the
businessman wanted to immediately dispose it for a profit so they will
be using means to convince people to buy products. Promotional
programs and personal selling shall be resorted to.
The Marketing system
The marketing organizations or the marketers must know how
to improve its services to the market. In order to satisfy this need, the
marketers should be equipped with concepts or tools to bet the
complexity of the marketing organization's environment. Thus, this
requires the presence of the marketing system to grasp marketing
opportunities.
Marketing system deals with identification of major
institutional components in an organization's environment that interact
to produce results in the marketplace.
As previously presented, there are two interacting elements in
the system: the marketing organizations and target market. The
marketing organization is defined as the marketers, the sellers of
goods or services who can either be the producer; the manufacturer,
wholesaler or retailer. The target market on the other hand are the
buyers who can be classified as to consumer market or industrial
market.
There are two sets of flows: the information flow and
distribution-payment flows.
Market Segmentation
A business firm that Is non-consumer-oriented will hesitate
to differentiate, its market from competitors. A company that is
consumer-oriented is never resistant to market segmentation.
Market segmentation is the process of knowing the overview of the
entire target market, but differentiating them from competitors by
recognition of sub-markets with similarity in needs but differs in
demographic, geographic, economic, cultural and psychological
ways.
The strategy of segmentation tries to find a market and
penetrate it to the greatest extent possible through customized
product, services and marketing strategies to satisfy their needs. San
Miguel Beer Division, for example, realized that everybody may not
want pale pilsen' type of beer, but others may prefer beet of lower or
higher alcohol content that is why lágerlite, 'red horse beers were
introduced. Jollibee introduced several product mixes not only
hamburger or spaghetti because of presence of needs from other
market segments who prefer other varieties than mentioned.
In short, this strategy is customer-oriented, which requires
identification of customer needs in a submarket. Then, a product or
service must be designed to satisfy the submarket's needs.
Bases for Market Segmentation
Presented here are the different bases for segmenting the
market But methods of choosing the basis may vary with one product
or service to another. These bases can be the possible choices for
segmenting the market:
1. Identify whether buyers are: consumer market or industrial
market.
2. Demographic bases:
A. Population -its distribution and composition.
a.1. Total population
a.2. Regional distribution
a.3. Urban, rural distribution
B. Age groups
 b.1. Children can be interrelated in some ways, like income bracket with age; age
b.2. Teenagers with education or occupation, and the like.
b.3. Young adults -20-34
b.4. Younger middle-aged 35-49 Classifications of Market and Goods
b.5. Older age - 50 above
C. Gender category The target market is grouped into two: the consumer market
c.1. Male those people who purchase goods and services for their own personal
c.2. Female use; the industrial market-those people who buy goods and services for
3. Cultural bases business use or for re-sell purpose in order to gain profit.
a. Race
b. Religion Consumer Goods
C. Nationality
d. Education These are products purchased by the consumer market.
e. Occupation Enumerated are the classifications of consumer goods according to
4. Economic bases consumer's buying habits:
A. Income bracket
1. Convenience goods
a.1. High income group-A
a. Consumers know what, how, when and where to buy these
a.2. Upper middle income group - B
products because they have complete product knowledge.
a.3. Lower middle income group-C
b. Consumers do not exert so much effort in buying, since they
a.4 Low income group -D
are purchased in accessible outlets like sari-sari stores.
5. Psychographic (psychological) basis
c. If temporary or permanent product unavailability exists,
a. Personality
consumers are willing to accept substitute brands.
b. Buying attitudes
d. These products are not bulky and have low unit prices.
c. Product benefits desired
Examples: toothpaste, seasoning, candies, cigarettes.
Marketing considerations: These should use intensive product
In reviewing the preceding bases, it does not mean using all of
distribution; wider product selection by carrying several
them at a single time for segmenting market of a single product or
brands.
service. Keep in mind that consumers’ buying behavior cannot be
2. Shopping goods
accounted by only one segmenting basis but it is developed by
a. They are sub-classified into service goods or fashion goods.
combining several variables or bases from mentioned. These factors
 b. Generally, consumers "shop-around" before buying. They
compare prices, styles or other product features before deciding for
the best buy.
c. Market may not have full-product knowledge, so product
information is solicited as they shop around.
d. Service goods have high unit value, bulky and require
servicing like delivery, installation, repair and maintenance.
Examples: RTW, shoes, appliances, furniture
Marketing considerations: Fewer retail outlets for shopping
goods are required but advantageous if they are near each
other for consumers convenience to go from one outlet to
another, as they compare features. Image or reputation of the
outlet may be important to buyers, than manufacturer's
brands.
3. Specialty goods
a. Consumers are willing to exert special buying effort these
and may spend time to reach exclusive dealers of these
products.
b. Consumers are after the brand prestige irrespective of its
high price.
c. Consumers, in some cases, may not accept substitute brands
Examples: Signature items like: LV bags, Nine West, DKNY, and
Guess.
Marketing considerations: Exclusive distributorship or
dealership is used for these products. Franchise agreement is
utilized. for control of sales territories and effective
distribution.
Industrial Goods
These are products purchased by the industrial users or make
classified according to the broad uses as differentiated from consumer
goods which are classified on the basis of buying habits.
1. Raw materials
a. Products which will become a part of another final product.
b. Products when integrated to produce another product can
be unidentifiable or cannot be physically separated.
Examples: Flour for making breads; eggs for processing milk.
Marketing considerations: Supply may be low or limited,
standardization and grading is essential. Distribution can be
direct from producer or manufacturer to industrial user.
2. Fabricating materials and parts
a. These are industrial goods which will become a part of
another final product but are identifiabie in finished form.
b. These are assembled products with no further change in
form.
Examples: Sparkplugs and fan belts in automobiles; buttons on
dresses.
Marketing considerations: Purchase in bulk ahead of the selling
season. Direct personal selling is done between producer and
consumer. Branding may be unimportant.
3. Installations
a. These are major equipment of the industrial user.
b. They affect operating scale for production quota of the
company
Examples: Adding dozen of computer units in a business
entity; the adding three passer machines for a tin can business.
Marketing considerations: Presale and post sale services
are needed, with no middlemen involve. Pre-sale includes
 negotiation period before closing of sale through personal
selling
4. Accessory equipment
a. They facilitate or aid in the production operation of the
industrial market.
b. It will not be part of any final product nor gives significant
effort in production scale.
Examples: Cash registers or point-of-sale machines for
supermarkets.
Marketing considerations: Direct selling is used for bulky
orders. Middlemen are used for geographically dispersed
market.
5. Operating supplies
a. These are the convenience goods of industrial market.
b. They have low unit price; short-lived, which facilitate
business operations.
Examples: Pens, pencils, typewriting papers.
Marketing considerations: lt demands broad distribution.
Price wars can happen since products are highly
competitive.
Chapter 2
THE PRODUCT
Product: Defined
The presence of human needs require the existence of
products.
Product Is that bundle of utility (satisfaction) which the buyer
receives as the result of a lease or purchase. It includes the physical
good or service itself (its form, taste, odor, color and texture), functions
or the product in sure, the package, the label, the warrant the
manufacturer’s and retailer's services, after-sale service, e confidence
or prestige received by the brand and the manufacture and retailer's
reputation, and any other symbolic utility received from possession or
use of the goods or service.
Product functions may include its features, wherein the more
features the item offer, the higher will be its value. Packages can make
use of materials like paper, glass, plastic, tin or composite. Composite
packages integrate paper, plastic and tin in its design materials. Labels
can be directly printed or embossed on the package called graphic
label, or those detached types in the form of paper labels wrapped
around packages. Warranty assures consumers of product quality
which promises repair, refund or replacement. Services by
manufacturers or retailers include delivery, installation and
maintenance. Manufacturer's reputation is the image of the bran itself;
whereas, retailer's reputation is the name of the selling outlet where
the product was purchased.
A product is something that is viewed as capable of satisfying a
need or want. It can be an object, service, activity, person, place,
organization or idea.
 A product is simply a set of tangible physical and chemical
attributes assembled in an identifiable form.
The definitions can give us a conclusion that consumers do not
only buy or pay for the tangible attributes of the product like the
physical features, but more of the intangible attributes like the
benefits. A food chain outlet does not have to sell its hamburgers or
spaghetti, but the taste. A school institution does not have to sell its
course offerings but the curriculum.
"New" Products
Competition is very apparent and dynamic in marketing which
makes it necessary for a company to modify its existing products to
meet ever-changing consumer needs.
Presented here are the recognizable categories of "new"
products:
1. Innovative products. These exist out of a real need, and no Subsitute
can be available. Products where a company pioneered in the concept
and other may just follow. Examples are remote control television
system as introduced by Sony; the introduction of high quality washing
machine detergent like Pride.
2. Replacement products. Those with significant difference from
existing products. These products when introduced may phase-out the
old product concept. Examples can be new car modes of Toyota,
Honda, Ford, Mazda, or Mitsubishi, replacing the old models.
3. Imitative products. These are products new to the imitating
Company but not from other companies. Imitation of a patented
product can be illegal, so what can be possible is partial adoption of
product idea. Examples are the introduction of 7-up soda, two-liter
size; ready mix instant noodles and seasonings; the disposable diaper
concept.
New products can be innovative for a company but imitative
for other firms using "follow-the-market leader" strategy. it can be a
replacement products for some, but imitative to others. So the
classification varies with timing of introduction and market perception.
Product Planning and Development
Product planning embraces activities which enable producers
and middlemen to determine what should constitute a company's
product line.
Under this activity two questions can be answered, these are:
1. What products to produce? A question asked by producers
or manufacturers.
2. What products to sell? A question asked by wholesalers and
retailers.
Product development is a more limited term encompassing the
technical activities of product research, engineering and design.: This is
distribution of new or improved products for present market. it is
conceived with innovative product ideas based on market needs.
Product features and modification like introduction of new s1Zes,
colors, Shapes, flavors or creating several quality levels to better satisfy
the present market. For example, Safeguard pink is a new quality level
as compared to, Safeguard gold; the Magnolia Lite n Creamy for figure
conscious people; and the Colgate toothpaste in sachet new size for
small budget or for travel purposes.
Product development is undertaken to achieve stability in sales and
profits, and to avoid possible maturity of an existing product, by
reviving interest of consumers on new features.
According to Kotler, the following are the possibilities for
product development:
1. The company can develop new product features or contents by
attempting to adapt, modify or magnify, substitute, rearrange, reverse
or combine existing features.
2. The company can create different quality versions of the product.
3. The company can develop additional models and sizes.
Steps in Product Development Process
Product development process originates from the generation
of ideas to other steps outlined here. For every stage, the following
shall be the managerial decisions to consider:
1. Whether to proceed to next stage. This is done when, after
evaluation of current stage product development is still
feasible.
2. Whether to abandon the product. Irrespective of the stage
level, if it is obvious that possible development may not be
lucrative, it is wiser to phase-out the idea of development.
3. Whether to secure additional information. This is done if
data is insufficient, further feasibility study or research is
needed.
The following are the steps in the development process:
1. Idea generation. Product ideas may come from external sources or
internal sources. Suggestions for possible development may originate
from company's own salespeople, non-marketing employees,
middlemen like distributors or dealers of goods, competitive products,
research companies, inventors and best source are the consumers. It is
said that the market can be the best source since they know what they
want and this planned development, as per suggestion, is intended to
satisfy their defined needs and wants.
2. Screening of ideas. Not all the ideas generated can be feasible. This
step chooses the best ideas by considering whether they are
compatible with resources, objectives, demand, cost and above all
profitability. Feasible ideas may be considered for further study.
3. Formal business or economic analysis. Objectives of this step are
further qualification of demand, risk, investment, cost and profitability.
A venture team as a committee can be assigned for cost-analysis of the
new-product development idea who shall define:
a. Product development features.
b. Sales and profit forecast for new product development.
c. Program for marketing strategies. This includes timetable of activities
for production, test marketing, promotion, and introduction.
d. Whether additional feasibility study is needed.
4. Product development. Product engineering design is prepared,
prototype production, product testing, process design, procuring
patents and trademark. In short 'actually developed' product is now
produced.
5. Test marketing. This is a commercial experiment conducted in
limited geographic areas to ascertain product feasibility. Test marketing
is different from product test. The former tests product in real
conditions and the latter tests product function in artificial conditions.
Period for testing the market is an average of six months, so possible
risks of this marketing program are:
a. Competitive reaction by disrupting the research.
b. Competitive reaction by taking advantage of the time lag.
Therefore, if test market was discovered to be successful by a
competitor, they may introduce a new product of same
concept ahead of the introductory period of the market testing
company.
6. Commercialization. Full-scale production and product introduction
can be realized if test marketing was successful. Now, the new product
is born and enters the product life cycle. Product fate or destiny may
not only be on the hands of the marketing company but also of the
external competitive environment.
It should also be noted, however, that schedule depends on YP
of products. Some products take Longer to conceptualize, produce and
distribute.
Stages in the Product Life Cycle

In the analysis of the steps, effective timetable should be planned to 1. Introduction stage. This is the stage when the product is lunched in
avoid possibility of product failure due to wrong timing of introduction the market. The marketing organization should ensure in this stage that
or competitive reaction. Assuming that the marketing organization the buyers are aware of the product, educated about its advantages
intends to develop a product where selling season is second quarter of and to try it. The marketer is more concerned with increasing primary
the year. The following can be the guidelines for scheduling the plans: demand than battling with competition. Informative promotion is
1. ldea generation - September 20A needed to tell potential customers about the advantages and uses of
2. Screening of ideas - October 20A the newly introduced product. Thus, manufacturers initially had to sell
3. Formal business or economic analysis consumers the value of medical insurance in general before selling the
- November to December 20A brands like Philcare or AsianLife.
4 Product development: Expenses for promotion is at maximum because of these
a. Small-scale production - January 20B objectives:
Intended for test marketing a. To tell consumers about the new product.
b. Large scale production - March 20B Intended b. To encourage consumers to try the new product.
for Initial Introduction based on forecasted market demand. c. To convince middlemen to distribute the new product.
5. Test marketing - February 20B 2. Growth stage. Also known as the "market acceptance" stage.
6. Commercialization - April 20B This is when sales and profits increase at an increasing rate
Product ‘tryers’ are now repeat buyers. Competitors are now reacting,
The steps outlined were qualified by time for effective so the marketing organization must develop selective demand, thru the
sequencing of activities. It is noted that product development is use of "buy our brand" strategy by promoting product benefits, rather
production, classified into two Scales: the small!-scale-lesser quantity. than a simple "try our product'" strategy.
for test marketing quota, so that if it becomes a failure, lesser costs can During this stage, the company wants to sustain rapid sales
be incurred against immediately producing in large quantity, wherein growth as long as possible. The company does not want that the
expenses can be higher if it fails at this step. if test marketing result is product will reach the next stage of maturity. This can be avoided by
successful, full scale production can be planned to achieve sales and planning for a product development. If the product is developed, the
profits as forecasted.
life cycle again goes back to and from introductory to growth and never
matures nor declines.
The company aggressively plans for market-expanding
strategies to reach a favorable competitive position, at increased cost.
This stage is a trade-off between high market share, high sales and
profits against high cost for product development, promotion and
distribution, just to evade from the position of a maturing and dying
product.
3. Maturity stage. On this stage, sales and profits start to decline. More
competitors enter the market with more advanced product
development. This stage is divided into three phases.
a. Growth maturity. Sales rate declines because of distribution
saturation, unwillingness of middle to re-sell manufacturers product.
b. Stable maturity. Sales become level-off or at break-even because of
market saturation, unwillingness of market.to buy due to loss of
interest on the product.
c. Decaying maturity. Sales continue to decline; customers shift to
other brands or available substitute.
4. Decline and possible abandonment stage. New products or brands
eventually enter the industry. Obsolescence of the company's products
sets in. As new concepts come in, they replace the old ones.
Continuous decline in sales can be attributed to technical development,
changes in fashion or tastes of consumers or lower costs of substitute
brands.
Reasons Why New Products Fail
Some new products, while still experiencing introductory or
competitive stages in the product life cycle fail, due to any of these
reasons:
1. Inadequate market analysis. Inability to determine market demand,
buying motives and overestimation of potential sales of the new
product which can be the result of insufficient marketing information,
2. Product deficiencies. This means poor quality of new products.
3. Lack of effective marketing' effort. Insufficient marketing strategies
as follow-up after introductory marketing programs,
4. Higher costs than anticipated. Possible presence of inflation rate
where prices of raw materials had increased from idea generation to
commercialization periods,
5. Competitive strength and reaction. Ease of competitive entry, where
other companies may simultaneously beat timing of introduction.
6. Poor timing of introduction. This can be a premature or post mature
product introduction
7. Technical or production problems. Inability to supply the quantity
demanded.
Possible Solutions to Avoid Product Failure
1. Organizational changes aimed at strengthening new product
planning.
2. .Better marketing research to evaluate market needs and prospects.
3. Improved screening and evaluation of ideas and products.
To be successful in employing the solutions mentioned, the company
should have at least one of these three advantages:
1. Product advantage. Emphasizing that the new product is of better
quality and has a more reasonable price than products of competitors
2. Marketing advantage, using greater number of distribution outlets or
intensive distribution, as applicable to the new product, compared to
competitors
3. Advertising advantage. Greater number of mass media usage or
effective advertising copy structure
Product Line and Product Mix
A product line possesses the following characteristics:
1. A group of products closely related to each other.
2. They are intended for same uses or they function in similar manner.
3. They may possess similar physical characteristics.
4: Sold to the same customer group.
5. Marketed through the same types of outlets with given price lines.
Examples: Home furnishings, Men's accessories, Appliances.
Product mix include:
1. The complete list of all products offered tor sale or produced by a
company.
2. It is a composite of all products, brands, or items within each product
line.
Examples; Dining table, china cabinet, belts, shoes, sacks washing
machines, television set.
This strategy is implemented if market demand is very low and cannot
even offset maintenance costs.
3. Alteration of existing product. Redesigning of an industrial product or
new packaging design for consumer products
4. Positioning of the product. This is the consumers' perception of a
product, its image against competitors’ products and other products
being sold by the same company. Improved product position is
achieved simply by. shifting promotional theme or target market like
Perla detergent soap, originally promoted as laundry soap, now it
emphasizes its effect on the skin, thereby some consumers even use it
as facial cleanser.
5. Trading up and trading down. Trading up is adding high-priced, well-
known brand in order to increase sales of existing low-priced items.
This appeals to consumers' psychological comparison between a high
priced item equivalent to a better quality product.
Trading down is adding low-priced products in order to increase sales
of existing high-priced items. This appeals to mass market - who may
not enter an outlet known to have high priced line, but being aware of
its trading down strategy,
may buy from this store.
6. Product differentiation and market segmentation. Market
segmentation had been defined earlier. Product differentiation
involves creation of consumer awareness about the different features
of a product. This consumer education about the product can be
effectively achieved by using advertising as a tool.
Brands
A brand is a word, mark, symbol, or a combination of them used to
identify the marketer's product or service.
A brandname is something which can be vocalized or spoken.
A brandmark is à non-registered design, symbol or product logo.
A tradename is a registered company name.
A trademark is a brand registered under the Intellectual Property Office
(IPO), and therefore given legal protection.
Trademarks can be recognized with the presence of any of the lawing
words or symbols on product labels or package:
1. Reg.Phil.Pat.off. Registered under the Philippine Patent Office.
2. R- means registered.
3. *- asterisk mark.
4. c-copyright under.
5. Trademark under.
ways:
Classifications of Brands. Brands are classified as follows:
1. According to ownership.
a. Manufacturer's brands. Those brands owned by the
producer or manufacturer. Examples: Eden by Mondelez
International; Nido full cream milk by Nestle, Phils.
b. Distributor's or middlemen's brands. Those brands owned
by wholesalers or retailers. Examples: Parisian shoes by SM;
Lady Rustan's RTW by Rustan's.
2. According to extend of geographic coverage.
a. National brands. Those that are sold in the entire Philippines
or internationally and are advertised. Example: Samsung
electronic gadgets.
b. Private brands. They may be sold on limited areas, and are
not advertised. Example: Homemade pastries.
3. According to use by owner of brand.
a. Primary brands. Those that are advertised and of high-
quality materials
b. Secondary brands. Used for special purposes and can be a
low-quality merchandise.
4. According to number of products covered.
a. Individual or separate name brands. A name or brand
intended for one product only. Examples: Tide by Procter and
Gamble for its laundry soap; Safeguard by Procter and Gamble
for its health soap.
b. Family or blanket brands. A name or brand intended for
several products or group of product. Examples: Panasonic is a
brand for appliance; Johnson and Johnson is a brand of baby
care and personal care lines like oil, cologne, lotion, soap and
shampoo.
Generic brands. Product name may become generic in several
1. Products which do not carry official brand names at all,
other than identification of their contents, manufacturer
or middleman’s name. These generic products may be
common for staple goods like food products and drug
items. In supermarkets, these are the generic pasta,
noodles, beans, paper towels or dog food.
2. These can be products with outstanding brand names and
have been promoted so well that many people use them
generically, Examples are: Kodak, Xerox, Frigidaire, Band-
Aid, Colgate, Kleenex.
Importance of branding for sellers. Manufacturers and
middlemen can be provided the following specific benefits of
branding:
1. Branding simplifies sales promotion
2. Branding encourages repeat sales
3. Branding provides protection against substitutions
4. Branding minimizes comparisons
5. Branding aids in segmentation
6. Branding facilitates the introduction of a new item
7. Branding affords greater price stability
8. Branded merchandise are preferred by many middlemen

Characteristics of good brand names
1 It must be easy to remember. It is advisable to create one to
three-syllable brand names. It will be easier to remember,
pronounce and spell for consumer retention of the term.
Examples: Coke, Milo, Marlboro.
2. It must suggest something about product benefits or use.
Examples: Pronto floor wax - for quick, fast action. Joy
dishwashing soap -for easy, light dishwashing task.
3. It must be distinctive. Symbols, colors must be easily
recognized and not too confusing for consumers.
4. It must be legally protected. Therefore, it must not be an
imitation of any patented brands by competitors and must be
registered under the patent office.
Packaging
Packaging is a group of activities in product. planning which
involve designing and producing container or wrapper for a product.
Containers like tin can, glasses are for liquid-based products, while
wrappers like tin foil, paper, carton are for solid-based products.
Reasons for packaging. The following are some reasons for
1. For product protection during its route from producer, manufacturer
to the final user, and protection during storing period before
consuming.
2. It implements a company's marketing program through product
differentiation by customers.
3. It increases profit possibilities, particularly when other customers
buy the product primarily because of the package.
Packaging strategies. Packaging may utilize the following
methods:
1. Family packaging involves making the package identical for all
products using common feature on all packages. Example:
Johnson's baby cologne varieties and baby oil have the same package
design.
2. Reuse packaging is designing and promoting package which can
serve other purposes when contents are consumed.
Examples: decorative tin can for powdered milk brands; crystal or
elegant glasses for coffee brands.
3. Multiple packaging is placing several units of a product in a single
container. Examples: Tennis balls come in three-in-one package; Knorr
bullion cubes in two-in-one pillow case Wrapper or more cubes in
carton pack.
While packaging can be costly, it can help reduce distributor
expenses. Protective packaging is important for manufacturers o
wholesalers, since it reduces cost of goods damaged on ship me
which somehow delay production or cause of lost sales.
Packaging provides retailers with better protection thereby
reducing store costs by minimizing breakage, preventing discoloration
and stopping theft. Packages that are easy to handle can cut-costs by
speeding price marking, improving handling and display, and saving
space.
A good package sometimes gives a firm more effective
promotion that it could possibly afford with advertising. The package
may actually be seen by potential customers than the company's
advertising8. Thus, the following factors account for considering
packaging as an independent selling tool:
1. Selt-service. For product sold on self-service basis, In supermarkets
or department store, the package performs the sales tool of attracting
attention, describing product features.
2. Consumers affluence. Consumers willingness to pay a little more for
the convenience, appearance, dependability and prestige of the
package.
3. Innovational opportunity. Innovative packaging can bring about large
sales. This can attract brand switchers, like Del Monte Pineapple Juice
easy-open-can.
Labels
A label is that part of a product which carries verbal information about
the product or the seller. Labeling requires careful planning and policy
formulation. Eye-catching graphics are important, particularly if the
label covers large portion of the package. The label's primary purpose
should be to inform buyers by fairly representing the contents of the
package. Both the vignette (illustration) and the copy should accurately
describe the contents of the package and guide the costumer how to
use it.
Types of Labels. Labels may come in the following forms:
1. Brand label. Brand alone applied to the product or package.
Examples are bananas for export brand-labeled Del Monte.
2. Grade label. Identifies product quality by letter, number of word.
Letter Ą or number 1 may mean premium quality. Premium means first
class quality. Examples are Lorins fish sauce-Premium, primarily
intended as sauce and secondly as seasoning; Del Monte pineapple
juice 'sweetened.
3. Descriptive labels are written or illustrative information about the
product use, construction, care or performance. Examples are list of
ingredients, expiration date, directions for use.
NEW PRODUCT DEVELOPMENT STRATEGY
With the presence of rapid changes in technology, competition
and tastes, a marketing company rely on its current products. The
market expects new and improved products. Competitors will try their
best to provide them. Around this environment, any marketing
organization needs a new product development program.
A company can obtain new products in two ways. One is
through acquisition by buying a whole company, a patent or a license
to produce someone else's product. The other is through a new-
product development by setting its own research and development
department.
A firm has to generate many new-product ideas, In order to
finish few good ones. From fifty eight ideas, about twelve pass initial
Screening test which are compatible with company objectives and
resources. From twelve, seven survive evaluation of profit potential;
three survive product development stage; two survive test marketing
and one is commercially successful.-Thus, fifty eight ideas must be
generated to find a good one.
idea-generation Techniques
1. Attribute testing. This is also known as product modification analysis.
This calls for writing down the major attributes of an existing product
and then modifying each attribute in search for an improved product.
2. Need/problem identification. The customers are interviewed and are
asked to name problems or deficiencies they found in. an existing
product.
3. Brainstorming. This session is conducted when a firm needs. to
generate many ideas related to a proposed product development.
Criticism is ruled out during this meeting. Combination and
improvement or ideas is encouraged.
Commercialization
This is the launching of a new product. During this stage, the
company is facing largest costs to date. It may build-up or rent a full-
scale manufacturer facility and will have to spend more for advertising
and sales promotion purposes.
Timing is the first decision made in commercialization. Decision
of whether it is the right time to introduce the product is made
Geographical strategy identifies whether the product is to be
introduced in a single locality, region, several regions, national market
or international market. The company needs to identify the best
prospect groups for promotion and distribution. Development of action
plans for introductory marketing strategy are also made.
PRODUCT MANAGEMENT ORGANIZATION
Firms manufacturing several products or brands often
establish product or brand management organization. This does not
replace functional management organization, but serve as another
layer of management.
This organization is headed by a product or brand manager
responsible for specific products or brands. He sees to it that products
under his administration are unique and cognizable from the rest.
The Product Manager's Role
1. To develop product planned, see that they are implemented,
monitor results, and take corrective action.
2. The manager develops a competitive strategy for the product
3. Prepares a marketing plan and sales forecast.
4. Works with advertising agencies to develop promotion campaign.
5. Stimulate sales force and distributor support for the product.
6. Analyzes the product performance.
7. Initiates product improvements to meet changing market needs.
Advantages of Product Management Organization
1 The product manager harmonizes the marketing mix for the product.
2.The product manager can react quickly to problems in the
marketplace than a committee or specialist.
3. Smaller brands are less neglected because they have a product
advocate.
4. Product management is an excellent training ground for young
executives, for it involves them in almost every area of company
operations.
Steps to Make Product Management System Work
1 Clearly state the limit of the product manager's role and
2. Build a strategy development and review process to provide an
agreed framework for the product manager's operations.
3. Consider areas of potential conflicts between product responsibility
for the management of a product managers and functional specialist
when defining their respective roles.
4. Set up formal process that forces top management to settle conflicts
between product management and functional line management.
5. Establish a system for measuring results that is consistent with the
product managers responsibilities.
Types of Product Team Structures
1. Vertical product team. This consists of product manager, associate
product manager and product assistant. The product manager is the
leader and primarily deals with other executives to gain their
cooperation. The associate product manager assists in this task and
also does some paper works. The product assistant does most of the
paper works and runs errands.
2. Triangular product team. This consists of à product manager and
product assistants. One takes care of marketing research
and the other, marketing communication.
3. Horizontal product team. This consists of a product manager and
several specialists from marketing and other functions. Each team
consisting of a team leader and representative
from sales, marketing, laboratory, engineering, accounting and
marketing research.
PRODUCT ADOPTATION PROCESS
This involves through which an individual or ordinary customer
goes through acceptance or rejection of a new product idea. This is
cycle through which an innovation id perceived.
Stages of Adoption Process
1. Awareness. The period or time frame within which a customer learns
about a new product. Common media are mass communication or
"word-of-mouth" information. A consumer may still lack details about
the product and he may not even know how it works.
2. Interest. The consumer is stimulated to seek information about the
innovation. He becomes interested on the products and secures facts
about it. A "search shopping" activity is conducted. Labels and
packages inspections are done.
3. Evaluation. The mental evaluation stage He views himself mentally
when using the innovation. He analyzes whether it would make sense
to try the innovation.
4. Trial. This is the initial use of the innovation. The consumer tries the
innovation on a small-scale to improve his estimate of its value.
5. Adoption. The Customer decides on either adoption or rejection. A
satisfactory evaluation and trial may lead to adoption of the product
and regular use.
Adopter Categories
1. The innovators. The trendsetters who tend to be young and well-
educated. They are likely to be mobile and sophisticated. They are
eager to try a new idea and willing to take risks.
2. The early adopters. The opinion leaders, who are well- respected
their peers. They tend to be younger, more mobile, more creative
than later adopter. this group tends to have greatest contact of all
the groups with salespeople.
3. The early majority. They have a great deal of contact with mass
media and salespeople. They avoid risk and wait to considerate new
idea after many early adopters have tried it and liked it.
4. The late majority. The late followers. They are skeptical and
Conscious about new ideas. Less likely to follow opinion leaders and
early adopters.
Characteristics of Innovation Affecting Adoption Rate
1. Relative advantage
2. Compatibility
3. Complexity
4. Divisibility
5. Communicability
PRODUCT POSITIONING
This is the system of designing the company's image and value
offer so that the market segment can understand and appreciate what
the company stands for in relation to its competitors. Product
positioning is also the image that the product projects in relation to
competitive products or to other products marketed by the company in
question.
Several positions may be considered by the company. It might
go after the "low-price position", "high-quality position", "high-service
position'", or "advance-technology position”. In this case the company
is establishing a competitive advantage. Competitive advantage grows
out of value a firm is able to create for its buyer that exceeds the firm's
cost of creating it. Value is what buyers are willing to pay, it may be a
cost leadership approach or price differentiation approach.
Types of industry for Product Positioning
1. Volume industry. These are companies which strive for low cost
position or the highly differentiated position. They gain high profit at
mass production. Prices are low for big orders.
2. Stalemated industry. This has few potential advantages like a steel
industry where it is hard to differentiate the product or its
manufacturing cost .selected market segments.
3 Fragmented industry. These are made-to-order industries
4. Specialized industry. Companies specializing in production for
selected market garments.
Positioning Errors for Products
1 Under-positioning. Consumers have unclear perceptions or ideas
about a company. They may see it as similar to another firm and are
vague of what the company stands for.
2. Over-positioning. They may see a company broadly in terms of
product offering or price lines.
3. Confused positioning. Buyers may have different impressions about a
company or product. Some may say Company A has better engineered
products and others may say it is poorly engineered.
Positioning Strategies
1. Positioning in relation to a competitor.
2 Positioning by product attribute.
3. Positioning based on price and quality.
4. Positioning in relation to produce use.
5 Positioning in relation to a target market.
6. Positioning in relation to a product class.
PRODUCT AND SERVICE POLICY Decisions
Product Policy
Serve as guide for making product decisions. They are derived
from product development objectives of whether to market products
requiring minimum to service; or to market products superior to those
of competitors.
A manufacturer may handle an incomplete line or one part of
product line which he believes to be saleable under a short line product
policy. Offering all or most of the items making up a line for wide
selection of products is a full-line product policy.
Service Policy
A manufacturer may decide to market its products with
accompanying services. Degree of service offering may depend on its
policy. Below are the types of service policies:
a. Consumer education;
b.Providing for product installation, inspection and repair;
c. Providing free service under the terms of a written guarantee or
contract.
The guarantee is an assurance that the manufacturer's product
is of standard quality. It may be manufacturer-sponsored or
middlemen- sponsored. The guarantee contract may offer any of the
following options:
a. Product replacement;
b. Remedy defective product free of charge or lower fee:
C. Purchase price refund.
TRADEMARK, TRADENAME AND SERVICEMARK LAW
Trademark includes any distinctive word, name, symbol,
emblem, sign or device or any combination thereof adopted and used
by a manufacturer sold or dealt in by others. Mark means any visible
sign that is capable of distinguishing the goods (trademark) or services
(servicemark) of an enterprise shall include a stamped or marked
container of goods.
Tradename means the name and designation identifying or
distinguishing an enterprise. The term includes individual name and
surnames, first name, trade name, device or words used by a
manufacturer, industrialist, merchants, agriculturist and others to
identify their business, vocation, or occupations. A name or designation
may not be used as a tradename if by its nature or the use to which
such name or designation may be put, is contrary to public order or
morals and if, in particular, it is liable to deceive trade circles or the
public as to the nature of the enterprise identified by that name.
According to Section 124, the application for the registration of
the mark shall be in Filipino or in English and shall contain the
following:
1. A request for registration;
2. The name and address of the applicant;
3. The name of a State of which the applicant is a national or where he
has domicile; and the name of a State in which the applicant has real
and effective industrial or commercial establishment, if any
4. Where the applicant is a juridical entity, the law under which it is
organized and existing;
5. The appointment of an agent or representative, if the applicant is
not domiciled in the Philippines;
6. Where the applicant claims the priority of an earlier application, an
indication of:
a. Name of the state whose national office the earlier application was
filed or if filed with an office other than national office, the name of
that office.
b. The date on which the earlier application was filed, and;
c. Where available, the application number of the earlier application.
7. Where the applicant claims color as a distinctive feature of the mark,
a statement to that effect as well as the name or names
of the color or colors claimed and an indication, in respect of that color,
of the principal parts of the mark which are in that color;
8. Where the mark is a three-dimensional mark, a statement to that
effect;
9 One or more reproductions of the mark prescribed in the
Regulations;
10. A transliteration or translation of the mark or some part of the
mark;
11. The names of the goods or service for which the registration is a
sought grouped according to the classes;
12. A signature by or other self-identification of the applicant or his
representative.
Filing Date
The filing date of an application shall be the date on which the
Office received the following indications and elements in English or
Filipino:
1. An express or implicit indication that the registration of a mark is
sought;
2. The identity of the applicant;
3. Indications sufficient to contract the applicant or his representative,
if any;
4. A reproduction of the mark whose registration is sought;
5. The list of the goods or service for which the registration is sought.
NO filing date shall be accorded until the required fee is paid.
Duration
A certificate of registration shall remain in force for ten (10)
years; provided, that the registrant shall file declaration of actual use
and evidence to that effect, or shall show valid reasons based on the
existence of obstacles to such use, as prescribed by the Regulations,
within one (1) year from the fifth anniversary of the date of
registration. Otherwise, the Office shall remove the mark from the
Register.
Remedies and Infringement
Any person who shall, without the consent of the owner of the
registered mark:
1. Use in commerce any reproduction, counterfeit, copy or
colorable imitation of the registered mark or the same
container or a dominant feature thereof in connection with the
sale, offering for sale, distribution, advertising of any goods for
services including other preparatory steps necessary to carry
out the sale of any goods or services on or in connection with
which such use is likely to cause confusion, or to cause
mistake, or to deceive; or
2. Reproduce, counterfeit, copy or colorably imitate a
registered mark or a dominant feature thereof and apply such
reproduction, counterfeit, copy or colorable imitation to labels,
signs, prints, packages, wrappers, receptacle or advertisements
intended to be used in commerce upon or in connection with
which such use is likely to cause confusion, or to cause
mistake, or to deceive, shall be liable in a civil action for
infringement by the registrant for the remedies herein after
set forth; provided, that the infringement takes place at the
moment any of the acts stated.
Two Registers of Marks
Principal register. Those which the owner uses to distinguish his
goods, business or service from those of others unless it consist of:
1. immoral and deceptive or scandalous matter;
2 National flag or insignia;
3. Name, portrait or signature of a living person or deceased;
4. Mark or tradename, infringing up on a registered active mark
or tradename;
5. Descriptive mark, tradename or service mark. The mark or name
should have been in actual use in commerce for not less than two
months in the Philippines before the date of filing.
The mark or name should have been actual use in commerce
for not less than two months in the Philippines before the date of filing.
Supplementary register. All marks and tradename not
registrable in the Principal Register such as label, package,
configuration of goods,word, phrase, slogan, surname, geographical
numeral, or device, any combination of any foregoing.
PATENT LAW
Patent is a grant issued by the Philippine government giving
inventor the right to exclude others from making, using, selling,
importing the product.of his invention within the Philippines in
exchange for his patentable information or disclosure.
Patentable inventions- any technical solution of a problem in
any of human activity.that IS new, involves an inventive step and is.
adustrially applicable shall be patentable. it may be, or may relate to, a
product, or process or an improvement of any of the foregoing.
Non-patentable inventions. The following shall be excluded
from patent protection;:
1. Discoveries, Scientific theories and mathematical models;
2. Schemes, rules and methods of performing mental acts, playing
games or doing business and programs for computers;
3. Methods for treatment of the human or animal body by surgery or
therapy and diagnostic methods practiced on the human or animal
body; process for the production of plants or animals: Anything which
is contrary to public order or morality
4. Plant varieties or animal breeds for essentially biological process for
the production of plants or animals.
5. Aesthetic creations;
6. Anything which is contrary to pobluc order or morality
Patent Application
Request for a grant of Patent. The request shall contain a
petition for the grant of the patent, the name and other data of the
applicant, the inventory and the agent and the title of the invention.
Specifications stating the: title of the invention, brief
statement of its nature, brief explanation of the accompanying
drawings, if any; complete and detailed description of the invention,
and claims sought to be protected.
Prescribed application fee. No patent may be granted unless
the application identifies the inventor. If the applicant is not the
inventor the Office may require him to submit said authorization.
Procedure for Grant of Patent
Filing date requirement. The filing date of a patent application
shall be the date of receipt by the Office of at least the following
elements:
1. An express or implicit indication that Philippine patent is sought;
2. Information identifying the applicant; and
3. Description of the invention and one or more claims in Filipino or
English.
If any of these elements is not submitted within the period set
by Regulations, the application shall be considered withdrawn.
Term of Patent and Annual Fees
The term of a patent shall be twenty (20) years from the filing
date of the application.
To maintain the patent application or patent, an annual fee
shall be paid upon the expiration of four years from the date the
application was published. Payment may be within three months
before the due date. The obligation to pay the annual fees shall
terminate should the application be withdrawn, refused or cancelled.
If the annual fee is not paid, the patent application shall be
deemed withdrawn or the patent considered lapsed from the day
following the expiration period within which the annual fees were due.
A grace period of six (6) months shall be granted for the
payment of the annual fee, upon payment of the prescribed surcharge
for delayed payment.
Patent Categories
Invention. Any new and useful machine or device,
manufactured product or substance, process of any improvement
thereof that involves an inventive act of a degree more than the skill of
expert artisans of mechanic. Examples: new machine for the harvesting
of palay; a new vaccine for prevention of hepatitis-b; fiber extraction
machine; noiseless generator; or improved irrigation pumps.
Requirements for patentability are: originality, useful purpose including
operativeness; novelty or newness; inventiveness.
Industrial Design. Any new, original and ornamental design for
an article of manufacture. Examples: new design for furniture, shoes,
bags, kitchen utensils, containers and the like. Requirements for
patentability are: practical utility including operativeness; novelty or
newness. Generally intended for manufacture.
Utility Model Any new model or tool or industrial product or
part of same which does not possess the quality of an invention, but
which is practical utility by reason of its form, configuration,
construction or composition. Examples: multi-purpose scissors;
utensils; improved rice. thresher and improved charcoal stove.
Requirements for patentability are: originality; novelty or newness;
ornamentality. Generally intended for personal or household use.
COPYRIGHT LAW
Copyright is the protection extended to expressions and not to
ideas, procedures, methods of operation or mathematical concepts.
Works Protected by Copyright
Literary and Artistic Works. Literary and artistic works,
hereinafter referred to as "works", are original intellectual creations in
the literary and artistic domain protected from the moment of their
creation and shall include in particular:
a. Books, pamphlets and other writings;
b. Periodicals and newspapers;
c. Lecture, sermons, addresses, dissertations prepared for oral delivery,
whether or not reduced in writing or other material form
d. Letters;
e. Dramatic or dramatic-musical composition;
f. Musical compositions, with or without words
g. Movie production;
h. Works of drawing, painting, architecture, sculpture, engraving,
lithography or other works of art; models or designs for works of art;
Original ornamental designs or. models for articles of manufacture,
whether or not registrable as an industrial design, and other works of
applied art;
i. Original ornamental design or medals for article of manufacture
whether or not registrable as an industrial design, and other works of
art;
j. illustrations, maps, plans, sketches, charts and three-dimensional
works relative to a geography, topography, architecture or science;
k. Drawings or plastic works of a scientific or technical character;
l. Photographic works, pictorial illustrations and advertisements;
m. Computer programs;
n. Other literary, scholarly, scientific and artistic works.
Derivative works, which include:
a. Dramatizations, translations, adaptations, abridgments.
b. Collection of literary, scholarly or artistic works and compilations of
data and other materials.
Published edition of work. In addition to the right to publish
granted by the author, his heirs or assigns, the publisher shall have a
copyright consisting merely of the right or reproduction of the
typographical arrangement of the published edition of the work. Works
unprotected are works of the government and unprotected subject
matter.
Rules on Copyright Ownership
Copyright ownership shall be governed by the following rules:
In case of literary and artistic works, copyright shall belong to
the author of the work;
In case of works of joint authorship, the co-authors shall be the
original owners of the copyright but in absence of it, their rights shall
be governed by the rules on co-ownership. if, however, a work of joint
authorship consists of parts that can be used separately and the author
of each part can be identified, the author of each part shall be the
original owner of the copyright in the part he has created;
In case of work created by an author during and in the course
of his employment, the copyright shall belong to the employee, if the
creation of the object of copyright is not a part of his regular duties
even if the employee uses the time, facilities and materials of the
employer. Copyright shall belong to the employer, if the work is the
result of the performance of his regularly-assigned duties, unless there
is an agreement, express or implied, to the contrary;
In the case of work-commissioned by a person other than an
employer of the author and who pays for it and the work is made in
pursuance of the commission, the person who so commissioned the
park shall have ownership of work, but the copyright thereto shall main
with the creator, unless there is a written stipulation to the contrary.
In case of audiovisual work, the copyright shall belong to the
producer, the author of the scenario, the composer of the music, the
lm director and author of the work so adapted.
In respect of letters, the copyright shall belong to the writer.
Limitation on Copyright
The recitation or performance of a work once it has been
lawfully made accessible to the public, if done privately and free of
charge or made strictly for a charitable or religious institution or
society;
The making of quotations from a published work if they are
compatible with fair use and only to the extent justified for the
purpose, including quotations from newspaper articles and periodicals
in the form of press summaries. Provided, that the source and the
name of the author, if appearing on the work, are mentioned.
INTELLECTUAL PROPERTY CODE
The law of the Republic of the Philippines on intellectual property is
Republic Act No. 8293 or what is referred as Intellectual Property Code
which was approved by the incumbent President of the Philippines on
June 6, 1997 and took effect on January 1, 1998. The mandateto
administer and uphold the law is vested in the Intellectual Property
Office.
REGULATING COMPETITION- THE LEGAL ENVIRONMENT

The composition of legal environment in marketing decision

are laws, government agencies, and pressure groups that influence and
compel various organizations and individuals in the business society.
These legislations are expressed primarily to protect
companies from each other. These laws are passed to define and
prevent unfair competition. Second purpose of government regulation
is to protect consumers from unfair business practices. Third purpose is
to protect the larger interest of society against unbridled business
behavior.