MARKETING: FUNCTION, GUIDE AND EXAMPLE A TOPIC PRESENTED DURING THE SEMINAR WORKSHOP ON FEASIBILITY STUDY

HELD AT AVR ROOM GRADUATE SCHOOLCAPITOL UNIVERSITY

CAGAYAN DE ORO CITY, PHILIPPINES

BY: VENUS B. MORALES, DM RESOURCE PERSON

MARKETING PLANGENERAL OBJECTIVES:1. Discuss the nature and importance of the

marketing function in an enterprise.2. Explain the various items in a marketing plan.3. Write your individual group’s marketing plan for the

identified project idea.LESSONS Lesson 1 – The Marketing Function of an Enterprise

Lesson 2 – Marketing Plan: Guide and Example

SPECIFIC OBJECTIVES:1. Explain Marketing, Marketing Management

and Marketing Strategy;2. Identify and Explain the responsibilities of

the marketing manager, and,3. List down and discuss the variables in

marketing mix4. Discuss the major steps in developing the

firm’s marketing strategy.

LESSON 1- THE MARKETING FUNCTION OF AN ENTERPRISE

Marketing Function of

an Enterprise

1. Marketing Goods and Services

2. Market Segmentation

3. Variables in the Market Mix

4. Marketing Strategy

Marketing Concepts- Goods, services, market, marketing, market demand, marketing management, marketing manager

Understanding the consumer and customer

Buying behaviour

1. MARKETING GOODS AND SERVICES

a good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility.

a service is an intangible commodity. More specifically, services are an intangible equivalent of economic goods.

Market- refers to the consumers and customers for the goods and services produce by the enterprise.

Marketing – may be defined as all activities involved in providing customer satisfaction by facilitating the exchange of goods and services from where they are produced by the ultimate consumers.

Market Demand- exists when there are buyers for the product in which products are made because there is a market that needs or wants them.

Marketing Management- is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities.

 Marketing managers- are often responsible for influencing the level, timing, and composition of customer demand. The managers has the responsibility of analyzing and interpreting the consumer/customer needs and wants after which he prepares the projected demand for the firm’s products and services for a given period.

Marketing concepts

Consumer- is the one who uses the product. Customer- is the one who buys the product.

“The customer and the consumer may be the same person. However, it is also possible that the customer is different from the consumer”.

An entrepreneur who wants to understand his market must first understand man’s motivation for buying a particular product or products.

Understanding the consumer and customer

THE MASLOW TRIANGLE

Buying behavior

Feeling a need

Information search

Purchase Decision

Uses of the product

After-purchase feelings

The market can be classified according to:1. Income: High, Middle, Low2. Age: Infants (1 day to below 2 yrs. Old) Pre-schoolers (2-6 yrs. Old) Grade Schoolers (7-12) Young professionals (20-39) Adult professionals (40-59) Senior Citizens (60 and above)3. Sex – Male/female4. Educational Attainment- no education, elementary, high school, college, college

graduate5. Socio-cultural background – according to race or ethnic background, religion,

etc.6.Geographical Location – rural, urban, town, province, region, other specific

location7. By occupation- farmers, teachers, bank executives, musicians, engineers, etc. In what way will the market segmentation help in marketing activities?

2. MARKET SEGMENTATION

3. VARIABLES IN THE MARKETING MIX

Stage 1- Introduction

Stage 2- Growth

Stage 3- Maturity

Stage 4- Decline

PRODUCT LIFE CYCLE

PRODUCT

PRICE

Cost-oriented pricing

Demand-oriented pricing

Competition-oriented pricing

Other pricing strategy

3 basic method: 1. Cost-oriented pricing- All cost are added and divided by the

number of products made in order to arrive at the cost per unit produced.

To illustrate, if it costs P40 to make 20 balloons, then the cost per balloon is P2 (40/20). Assuming a 20% mark-up, each balloon should be sold at P2.40

2 different pricing techniques under this method:

1. Cost-plus (as in above illustration)

2. Break-even technique

TOTAL COST= TOTAL SALES

Price- is the value placed on goods and services offered to the public.

This approach is based primarily on how many buyers want or demand the product.

A high price when demand is strong, low price when demand is weak. An unsuspecting buyer maybe charged a higher price while a hesitant

buyer maybe given a lower price.

Competition-oriented pricing Pricing is based chiefly on what his competitors are charging, this

does not mean that it charges exactly the same price as the competitors do but rather it keeps its price constantly higher or lower than competition by certain percentage.

Other pricing strategies

-dictated by the type of target market

-price structure

Demand-oriented pricing

Loss-leader pricing

- here a low price is set for the most popular item hoping to attract many buyers who are expected to buy other goods in the store.

Psychological pricing

- is pricing an item a few centavos below a whole price to give semblance of a discount or savings.

Buy-one take-one

- gives also an impression of a bargain purchase. Target-earnings pricing

-a firm sets the price for its products according to the price that would give the desired earnings or sales.

Other Pricing Strategies

PLACE OR CHANNELS OF DISTRIBUTION

4. MARKETING STRATEGY

1. Research the market

2. Segment the market

3. Communicate your Unique Selling Proposition (USP)

4. Build Long-Lasting

Relationships with Customers

5. Develop a Distribution Plan

STEPS IN THE MARKETING STRATEGY

DIFFERENCE BETWEEN SELLING AND MARKETING

GUIDE AND EXAMPLE

LESSON 2- MARKETING PLAN:

1. What is the product?2. How does it compare in quality? In price with it’s competitors?3. Where will the business be located?4. What geographical areas will be covered by the project?5. Within the market area, to whom will the business sell it’s

product?6. Is it possible to estimate how much of the product is currently

being sold? 6.1 Market survey checklist 6.1.1 Wholesalers’/Importers’ checklist 6.1.2 Retailers’ checklist 6.1.3 Customers’ or consumers 'checklist

MARKETING PLAN:GUIDE

7. What share or percent of this market can be captured by the business?

8. How much of the product will be sold?9. What is the selling price of the product?10. What promotional measures will be used

to sell the product?11.What marketing strategy is needed to

ensure that sales forecasts are achieved?12. How much do you need to promote and

distribute your product?Note: Analyze your proposed product/service

answering the 12 guide questions.

Description of the product Comparison of the product with its competitor Location Market Area Main Customer Total Demand Market Share Selling price Sales forecasts Promotional measures Marketing strategy- Product, Price, Promotion Distribution Marketing Budget

MARKETING PLAN: EXAMPLE

THANK

YOU

FOR LISTENING

THE END