MARKET

 Market refers to the group of consumers or organizations that is interested in the product, has the
resources to purchase the product, and is permitted by law and other regulations to acquire the
product.
sexual preference such as pink market,
TARGET MARKET – The market a company which caters to the members of the lesbian,
wants to sell its products and services to, and it gay, bisexual or transgender or LGBT
includes a targeted set of customers for whom it community.
directs its marketing efforts.
4. Segmenting by Age – identifying market
MARKET STRUCTURE – Focuses on those segments on the basis of age such as
characteristics which affect the nature of tweens, teens, baby boomers, seniors, or
competition and pricing. millennials.

MARKET SYSTEM – Network of buyers, 5. Segmenting by Income and Expenditure

sellers and other actors that come together to Patterns – the markets involved in the
trade in a given product or service. Direct market income classes A, B, C, D, E which may be
players: producers, buyers, consumers. further divided based on the amount they
are willing to spend on certain things.
CONSUMER MARKETING – Creating and
selling products, goods and services to C. STRATEGIES FOR REACHING
individual buyers, as opposed to trying to appeal TARGET MARKETS
to businesses.
 Undifferentiated Marketing: When a firm
Ex: Selling toys, books, movies
produces only one product or product line
and promotes it to all customers with a
A. SELECTING A TARGET MARKET
single marketing mix.
Steps:
1. Segment Or Divide Your Market  Differentiated Marketing: When a firm
2. Identify, Evaluate and Select A Target produces numerous products and promotes
Market them with a different marketing mix
3. Marketing Mix Strategies designed to satisfy smaller segments.

B. MARKET SEGMENTATION  Concentrated Marketing (niche

1. Geographic Segmentation – dividing an marketing): When a firm commits of all its
overall market into homogenous groups on marketing resources to serve a single
the basis of their locations (barangay, town, market segment.
city, region or country)  Micromarketing: Involves targeting
potential customers at a very basic level
2. Demographic Segmentation – dividing such as by ZIP code, specific occupation,
consumer groups according to lifestyle or individual household.
characteristics such as sex, age, income,
occupation, education, household size, and D. MARKET RESEARCH
stage in the family life cycle.
 Interview: Face to face interview,
Telephone interview, Focus Group
3. Segmenting by Gender – dividing the
Discussion
market based on gender, or even based on
 Survey

MARKETING PLAN

 Document containing the market objectives, market strategies, and the activities that will be
undertaken to execute these strategies.
 Must be based on valid assumptions about financial, physical, and human resources that will be
available in the business venture.
Future opportunities must also be
COMPETITOR ANALYSIS presented.
- Must be based on an intelligent assessment
of the business environment.
B. Defining the target market
Pricing Strategies – must consider the - In early in the twentieth century, Henry
purchasing power of the customers as well as the ford succeeded in selling the model t (one
price levels of similar products available in the style, one color, one size)
market - Recognize the value focusing on a
particular segment of the market, given
Distribution Strategies – must consider that people have different needs, wants,
transportation costs or the costs of operating a preferences, and expectations.
retail outlet: 4 p’s – product, price, place
(distribution), and promotion (marketing mix) Steps:
1. Decide what general market or industry you
INDUSTRY ANALYSIS wish to enter.
- Documentation of current strategies of 2. Divide the market into smaller groups based
competitors like visiting their websites, on customer characteristics.
getting hold of company catalogs, flyers 3. Select segment.
and brochures, reading newspapers and 4. Prepare marketing plan integrating product,
magazine, articles, and interviewing price, PLACE, promotion, PEOPLE,
customers, suppliers, and distributors. PACKAGING, AND POSITIONING

MADI QUESTIONS C. Setting the market goals and objectives

- Provides a useful way of identifying
- SMARTER GOALS: Specific,
unmet or unsatisfied customer needs and
Measurable, Attainable, Realistic and
expectations.
Result-oriented, Time Bound, Ethical and
M – What is missing? (“Kulang”)
Recorded
A – What is annoying? (“Nakakabuwisit”)
- MARKET GOALS CAN BE
D – what is disappointing? (“Nakakabanas”)
EXPRESSED: Market share, market
I – what is irritating? (“Nakakainis”)
penetration, revenue for territory, new
product launched, number of distributors,
STEPS IN PREPARING THE MARKETING
customer service responsiveness, sales
PLAN
promotion, and advertising expenditures.
A. Assessing the business situation
Example: Pan de sal entrepreneur have the
- Describe present market conditions and objectives of the year: 10% market share, 70%
how the company’s goods and services market awareness, 3 new product launched,
fare against those of its competitors.
distribution of 1000 flyers in the nearby church,
market and schools.

D. Developing marketing strategy and

action programs

PRODUCT - Include the description of the

product/service, brand name, image, packaging,
warranty, delivery time, and after-sales service.

PRICING – Price decision must be from cost-  PRICING METHOD

based pricing, competition-based pricing, and Cost-Based Pricing
value-based pricing. A retail store selling shoes in Makati city.
A company buys the shoes for php 150
PLACE – channel for distributing one’s per piece (cost of goods) from a Marikina
product: channel’s directness; customer’s supplier.
convenience; and cost-effectiveness. Overhead costs for maintaining the
store are estimated at php 50,000.
PROMOTION – Entrepreneur must make his The entrepreneur expects to buy and
product known to his potential consumers by sell 1,000 units, which translate to a unit
utilizing media such as print, radio and overhead cost of php 50 per shoe.
television, internet, website, Facebook site and He adds up php 50 for profit, resulting
advertisement. in a final price of php 250.
Entrepreneurs must calculate both variable costs
PEOPLE – Show professionalism and courtesy. and fixed costs.
- A company full of happy, courteous, and
loyal people is a very good indication that o Variable Costs = those incurred on each
they are satisfied the way they are treated. unit that is produced, such as direct labor,
raw material, commission given to the
PACKAGING – Refers to the way your product salesperson, or cost of packaging.
or service appears from the outside. o Fixed costs (overhead) = cost of things
- Develop the habit of standing back and such as facilities and equipment.
looking at very visual element in the
packaging of your product or service Value-Based Pricing
through the eyes of a critical prospect. o Value-based pricing = entrepreneurs must
be aware of the value attached by customers
POSITIONING – Develop the habit of thinking to products or services.
continually about how you are positioned in the The account for the huge price difference
hearts and minds of your customers. could be “intangible benefits” like prestige, pogi
points, brand.
TYPES OF PROMOTION
1. Discounted products
2. Free delivery and acknowledgement
return.
3. Flash sales
4. Buy more, save more.
5. Product Giveaways or Branded Gifts

E. Preparing the budget for the action plan

- The budget needed to execute the marketing
strategies and activities.
- Financial projections
 INFORMATION NEEDS FOR MAJOR
SECTIONS OF THE BUSINESS PLAN

THE BUSINESS PLAN

 is a document that describes the various

external and internal elements involved in
starting a business or in expanding and
existing venture, amidst a dynamic business
environment.
 serves as a guide like a road map that direct TYPICAL CONTENT OF MAJOR
the entrepreneur to his desired destination. SECTIONS OF THE BUSINESS PLAN
o Where am I now? – Where am I
going? – How will I get there?
 Allow the entrepreneur to determine the WHY DO SOME BUSINESS PLANS FAIL?
resources he/she needs to set up the venture
and to sustain its operations in the few  Document is sloppy and looks
years. unprofessional.
 Executive summary is not coherent and is
IMPORTANCE OF BUSINESS PLAN
too long.
1. It helps determine whether a proposed or
existing business venture is viable given its
target market.
2. It guides the entrepreneur in mobilizing the
resources needed by the business.
3. It serves as a tool in helping get financing
for the business.

VALUE OF THE BUSINESS PLAN TO

SELECTED USERS
 Unclear on why people would want to buy
the product or service.
 Unclear on whether the product can be
readily produced.
 Sales and financial projections are
unreasonably optimistic.
 Inadequate description of the qualifications
and experience of the management team
 Inadequate assessment of the potential
threats to the business.

HOW TO PRESENT A BUSINESS PLAN?

1. Tell a compelling story.

2. Exhibit confidence and
professionalism
3. Cover the basic
4. Adopt a cooperative attitude when
answering questions.