Marketing

Management Aspect

A lecture on
Marketing presented
by: Prof. Greg Borja,
MBA, CPME
The new definition of Marketing:

The process by which companies

create value for customers and
build strong relationships in order
to capture value from customers
in return

- Philip Kotler
What do these Brands have in
common?
"Marketing's work should not
be so much about selling, but
about creating products that
don't need selling

TEN DEADLY MARKETING

SINS, Philip Kotler
Selling vs. Marketing
Concept
The Marketing Process
 STP = D USP
Segmentatio Differentiation Unique Selling
n Proposition
Targeting
Positioning
 Market Segmentation

Market Segment a group of consumers

who respond in a similar way to given set
of marketing effort.

Segmenting consumer markets

Segmenting business markets
Segmenting international markets
Requirements for effective segmentation
 4 Bases for Market
Segmentation
(for consumer markets)

Geographic,
Demographic,
Psychographic,
Behavioral
 Geographic
Variable Typical Breakdowns
Region (Major sub-regions) Luzon, Visayas, Mindanao.
(Regions) Ilocos, Central Luzon, NCR

City Size/Population Under 1000, 1,000-5,000,

5,001-10,000, .

Density Urban, suburban, rural

Climate Rainy, sunny/ tropical

(hot-weather), fair,.
 Demographic
Variable Typical Breakdowns
Age Under 6, 6-11, 12-19, 20-34, 35-49, 50-64,
65+ ..

Gender Male, female

Sexuality Masculine, feminine

Marital Status Single, married, divorced, widow, ..

Family Life Cycle Toddler, young, teenager, post-graduate,

yuppie, single & head of the family, single &
married w/o children

Family Size 6 members in a family (2 parents, 1 brother-

eldest, 3 sisters)

Income (monthly) Below P5,000, P5,001-P10,000, P10,001-

P15,000, P15,001-P20,000, P20,001-P25,000
 Demographic
Variable Typical Breakdowns
Occupation Professional and technical, manager, public
official, clerical and sales, farmers, retirees,
housewife, unemployed, student,

Education Grade school or less; some high school; high

school graduate; some college; college graduate;
some graduate studies; graduate degree holder,

Religion Catholic, Christian (Born Again, Iglesia ni Kristo,

etc.), Islamic, Jewish, Buddhist.

Race/Nationality Asian, White, Hispanic, Chinese, Filipino-

Chinese, (locals) Tagalog, Ilocano, Cebuano, etc.
 Psychographic

Variable Typical Breakdowns

Social class Lower lowers, upper lowers, lower

middles, upper middles, lower uppers,
upper uppers

Lifestyle (Hobbies) Active, Sporty, Fashionista

Personality Compulsive, authoritarian, ambitious,

conservative, libreal, etc.
 Behavioral
Variable Typical Breakdowns

Use Occasion Regular occasion, special occasion

Benefits sought Quality, service, economy

User Status Non user, ex-user, potential user, first-time

user, regular user

Usage Rate Light user, medium user, heavy use

Loyalty status None, medium, strong, absolute

Readiness stage Unaware, aware, informed, interested,

desirous, intending to buy

Attitude Toward Product Enthusiastic, positive, impressed, negative,

hostile
 Segmenting Business Markets
Geographically
by industry
by company size
by its customer operating characteristics
by situational factors
and by other company characteristics.
Segmenting International Markets

Geographically (continent, region),

by Economic Status,
by Culture,
by its political make up,
Or by distinct buying needs and behavior
of their people.
 Requirement for effectiveness
Segmentation:
Make sure that your segments are:
Measurable can be measured
Accessible can be effectively reached and
served
Substantial - large or profitable to serve
Differentiable responds differently
Actionable can be designed for attracting
and serving the segments.
 Market Targeting
Evaluating Market segments to Target:
Segment size and growth
Segment structural attractiveness
Company objectives and resources
Selecting target market segments:
decides which and how many segments it
will target, target market consists of set of
buyers who share common needs or
character that the company decides to serve.
 Target Marketing Strategy
Undifferentiated
Targeting broadly (mass) marketing

Differentiated
(segmented)
marketing

Concentrated
(niched)
marketing

Micromarketing
(local or
individual)
marketing
Targeting narrowly
Undifferentiated (mass) marketing - a market-coverage
strategy in which a firm decides to ignore market segment
differences and go after the whole market with one offer.

Differentiated (mass) marketing - a market-coverage

strategy in which a firm decides to target several market
segment and design separate offers for each.

Concentrated (niched) marketing - a market-coverage

strategy in which a firm goes after a large share of one or
few segments or niches.

Micromarketing (local or individual) marketing - the

practice of tailoring products and marketing programs to
the needs and wants of specific individuals and local
customer groups-includes local marketing and individual
marketing
You may choose to TARGET or to have multiple
Target Markets, but always identify who is your
PRIMARY TARGET MARKET and
SECONDARY TARGET MARKETS
(Know what or who to prioritize)
 Positioning for Competitive
Advantage
Positioning maps
Choosing a positioning strategy
Communicating and delivering the
chosen position

POSITIONING basically asks the

question
How do you want your products to be
perceived?????
 Positioning the Two Brands
Brand A Brand B

A Germicidal Soap A Beauty Bar

Examples of Product Positioning Maps for Fast Food
Choosing a positioning strategy
Consist of three steps:
Identifying possible competitive advantage
Choosing the right competitive advantage
Selecting an overall strategy positioning strategy
Identifying possible competitive advantage
The key to winning target customer and building
profitable relationships with them is to understand
their needs better than competitors do and deliver
more value.
Choosing the right competitive advantage
After discovering several potential competitive
advantages, it must choose the ones on which it will
build its positioning strategy.
 Selecting and overall Positioning Strategy
(Positioning Options)

Positioning by Product Attribute: Nakasisiguro gamot ay laging bago

Positioning by Price: Your low price, great value airline

Positioning by User Segment: Mabuhay! Weve been expecting you

Positioning by Usage Behavior:

Creating the dream cleavage every woman deserves
 Positioning by Product Source: Made in Korea

Positioning by Product Category: The 70% Isopropyl Alcohol

 Positioning Against Competition:
Recommended by 8 out of 10 dentists

Positioning by Experience or Feeling:

It must be Shangri-La!
Developing the positioning statement
Example:

For all classes of families, SM is the only

mall that provides you with everything that
you need, its fun, enjoyable and affordable at
the same time

Thus the tagline:

Here at SM.
Weve got it all for you
 Communicating and delivering
the chosen position
Positioning strategy

Maintain position through:

Consistent performance and communication
Monitoring and adapting to consumer needs and competitors strategies

Promotion Distribution Product Pricing

strategy strategy strategy strategy
 The Marketing Mix
(The 4 Ps of Marketing)
Marketing decisions generally fall into the
following four controllable categories:
Product
Price
Place (distribution)
Promotion
The Marketing Mix
7Ps Price, Product, Promotion, Place,
People, Process, Physical Environment
Traditional 4Ps extended to encompass
growth of Service Industry
 Summary of Marketing Mix
Decisions
Product Price Place Promotion

Brand name List price Distribution Advertising

Functionality Discounts channels Personal selling
Appearance Allowances Channel members Public relations
Styling Wholesale Inventories Direct marketing
Quality pricing Warehousing Internet marketing
Safety Cash, early Market coverage Digital and
Packaging payment Locations mobile
Seasonal
Warranty Transportation marketing
pricing
Accessories Bundling Logistics/reverse Communication
Service/Support Service levels message
Media channels
Promotional
budgeting
 Creating Customer Value and
Relationships
4Ps 4Cs

PRODUCT = CUSTOMER SOLUTION

PRICE = CUSTOMER COST
PLACE = CONVINIENCE
PROMOTION = COMMUNICATION