DIVISION OF NAVOTAS CITY

Principles of
Marketing
(Quarter 1)
First Semester

S.Y. 2020-2021
NAVOTAS CITY PHILIPPINES
Principles of Marketing for Senior High School
Alternative Delivery Mode
Quarter 1
Second Edition, 2021

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: John E. Cordero

Editors: Belinda I. Salazar
Reviewers: : Liza D. Escoto
Illustrator:
Layout Artist: John E. Cordero
Management Team: Alejandro G. Ibañez, OIC- Schools Division Superintendent
Isabelle S. Sibayan, OIC- Asst. Schools Division Superintendent
Loida O. Balasa, Chief, Curriculum Implementation Division
Grace R. Nieves, EPS In Charge of LRMS
Lorena J. Mutas, ADM Coordinator
Vergel Junior C. Eusebio, PDO II LRMS

Inilimbag sa Pilipinas ng ________________________

Department of Education – Navotas City

Office Address: BES Compound M. Naval St. Sipac-Almacen Navotas City
____________________________________________
Telefax: 02-8332-77-64
____________________________________________
E-mail Address: [email protected]
____________________________________________
 Table of Contents

What I Know ................................................................................1

Module 1......................................................................................3

Module 2......................................................................................12

Module 3......................................................................................19

Module 4......................................................................................29

Module 5......................................................................................35

Assessment ..................................................................................44

Answer Key ..................................................................................46

References ...................................................................................49
Directions: Read each statement carefully. Choose the letter which corresponds
to the correct answer and write it in a separate sheet of paper.
1. What is the definition of marketing?
A. It is a management process responsible for identifying, anticipating, and
satisfying customer requirements profitably.
B. It is a process of planning, organizing, staffing, directing, and controlling
the organization.
C. C. It is a matter regarding the management, creation, and study of money
and investments.
D. It is the method of putting the right person in the right position.
2. Which of the following statements about marketing is TRUE?
A. It is concerned with marketing the sale; contract law is concerned with the
exchange.
B. It only needs one person willing to pay for a marketing exchange to take
place.
C. It is only possible if an exchange is possible
D. It is consumer exploitation.
3. What is a comprehensive document or blueprint that outlines a company's
advertising and marketing efforts for the coming year? It describes business
activities involved in accomplishing specific marketing objectives within a set
time frame.
A. Annual Plan C. Long-range Plan
B. Marketing Plan D. Strategic Plan
4. Which of the following involves generating leads, building websites, placing
ads, and following up? It includes advertising, sales promotions, and other
activities that directly support your strategic marketing plan. And because
your strategic marketing plan included establishing a budget, tactical
planning preparation should consider its financial limitations in carrying out
these activities?
A. Annual Plan C. Long-range Plan
B. Marketing Plan D. Strategic Plan
5. Which of the following that gives a summary of the strengths and weaknesses
of the company together with the opportunities and threats it faces? Next,
headquarters decides what portfolio of businesses and products is best for the
company and how much support to give each one?
A. Executive Summary C. PESTLE Analysis
B. SWOT Analysis D. Tactical Planning

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6. What is the combination of internal and external forces that could affect the
ability of the company to establish and sustain a good customer relationship
to its client?
A. Internal environment C. Marketing environment
B. Macro-external environment D. Micro- external environment
7. What statement distinguishes a macro-external environment from the micro-
external environment?
A. Macro-external environment forces can be controlled by the business
while the micro- external environment cannot be.
B. Macro-external environment forces cannot be controlled by the business
while micro- external environment forces can be.
C. Suppliers is an example of macro-external environment forces while men
are an example of micro- external environment forces.
D. Company policy belongs to macro-external environment while
demographic environment is for micro- external environment.
8. When a research topic is predetermined, the researchers must look for
supporting documents (books, journals, magazines, newspapers, articles,
brochures, theses, and dissertations) related to the researcher’s present idea
and organize it. Which part of the marketing research study?
A. Introduction C. Research Findings
B. Recommendations D. Research Conclusions
9. Can you create a marketing research proposal that would discuss how COVID-
19 affects the country’s market economy?
A. Yes, because all consumers and producers comprised the market is
concerned.
B. No marketing research study because of the COVID-19 pandemic.
C. No, because there is no regular economic activity in the market.
D. Either A or B
10. Which of the following is NOT TRUE about the buyer decision process for new
products?
A. Innovators are NOT risk-taking customers who don’t seek changes.
B. Early adopters are guided by respect.
C. The early majority are deliberate. Although rarely leaders, they adopt new
ideas before the average person.
D. The late majority are skeptical. They adopt an innovation only after most
people have tried it.

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 MODULE1

This module was designed and written with you in mind. It is here to help you master
the random variable and probability distributions. The scope of this module permits
it to be used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

The module is focus only in one:

● Lesson 1 – Marketing and Its traditional approaches

Learning Competencies:
● Define understand marketing (ABM_PM11-Ia-b-1)
● Describe the traditional approaches to marketing (ABM_PM11-Ia-b-2)
● Discuss the goals of marketing

After going through this module, you are expected to:

▪ The learners demonstrate an understanding of the marketing principles, goals,

and traditional and contemporary approaches to marketing.

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 Lesson Introduction to Marketing:
Definitions, Goal and
1
Approaches
Type Organizations Earn Revenues and generate profits through supplying
services and products to each person customers and organizations. The profits
generated pay for the expenses and fees of their enterprise. These protected
manufacturing facility and office leases, salaries of employees, and utilities, among
others. Profits are generated while the products offered by the organization are
bought and paid for by means of the client. Money is the everyday mode of payment.

Offering products and services to customers and ensuring that there are
purchased are most of the important capabilities of advertising and marketing.
Without advertising, maximum groups may also give up existing and may not be able
to preserve their operations. Profit is one of the diving forces, if not the principle of
motivation, of an enterprise operation. For this cause, marketing is frequently
referred to as the “lifeblood” of each business.

Defining Marketing

▪ Marketing is defined by the American Marketing Association as “the activity,

set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and
society at large.” If you read the definition closely, you see that there are four
activities, or components, of marketing:
1. Creating. The process of collaborating with suppliers and customers to
create offerings that have value.
2. Communicating. Broadly, describing those offerings, as well as learning
from customers.
3. Delivering. Getting those offerings to the consumer in a way that optimizes
value.
4. Exchanging. Trading value for those offerings.

The Role of Marketing

1. Identify customers. The business or organization must understand
customer wants, demands, and needs. They also need to identify the target
market (to whom they would sell their products and services) and how to
reach them.

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 2. Satisfy customers. Make the right products or services available to the right
people at the right time. Make everyone feel better off from the exchange .
3. Retain customers. Give customers a reason to keep coming back. Find new
opportunities to win them.
4. Creation of products and services. Anything the company offers for sale to
the buyers to satisfy their demands, wants, and needs.
5. Distribution. It entails how a company is going to deliver its products and
services to their respective customers.
6. Pricing. Make sure you’re not losing any profits by selling too low. However,
you don’t want to overcharge and then not see any return because
customers found a cheaper alternative.
7. Promotion. It involves confirming an advertisement is seen in the right
places by the right people.
8. Selling. The selling process begins once you’ve completed market research
and determined what your prospects want and need.

▪ Goal of Marketing
The goals of marketing can be summarized as follows:

1. Understand the market and its consumers and satisfy their changing
needs and wants.
2. Introduce and innovative products and services that improve human
condition and the quality of life.
3. Design and implement effective customer -driven marketing strategies.
4. Develop marketing programs that deliver superior value to consumers.
5. Build and maintain mutually beneficial and profitable customer
relationships.
6. Capture customers value to create profits
7. Promote value transactions with full regard to the well -being of societies.

According to use: consumer and industrial goods

When classified according to use, products / goods can be consumer goods or

industrial goods.

▪ Consumer goods are goods that are purchased for consumption. Examples
of these are soft drinks, hamburgers, candies, cigarettes, and other similar
items.
▪ Industrial goods are purchased to make other goods, to serve as a raw
material or input in the production of other goods. Typical example is
aluminum, which is used to manufacture kitchen equipment and cans, or
electronic cables and wires.

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Marketing Approaches

The study of marketing has been approached in more than one way. To some, it has
meant to sell something at a shop or marketplace; to some, it has meant the study
of individual product and its movement in the market; to some, it has meant the
study of persons-wholesalers, retailers, agents, etc., who move the products and to
some, it has meant the study of the behavior of commodity movement and the way
the persons involved to move them. The approach to the study of marketing has
passed through several stages before reaching the present stage. There is a process
of evolution in the development of these approaches.

1. Traditional Approaches

A. The Production Concept. This concept is the oldest of the concepts in business.
It holds that consumers will prefer products that are widely available and
inexpensive. Managers focusing on this concept concentrate on achieving high
production efficiency, low costs, and mass distribution. They assume that consumers
are primarily interested in product availability and low prices. This orientation makes
sense in developing countries, where consumers are more interested in obtaining the
product than in its features.

B. The Product Concept. This orientation holds that consumers will favor those
products that offer the most quality, performance, or innovative features. Managers
focusing on this concept concentrate on making superior products and improving
them over time. They assume that buyers admire well-made products and can
appraise quality and performance. However, these managers are sometimes caught
up in a love affair with their product and do not realize their market needs.
Management might commit the “better-mousetrap” fallacy, believing that a better
mousetrap will lead people to beat a path to its door.

C. The Selling Concept. This is another standard business orientation. If left alone,
it holds that consumers and businesses will ordinarily not buy enough of the selling
company’s products. The organization must, therefore, undertake an aggressive
selling and promotion effort. This concept assumes that consumers typically show
buying inertia or resistance and must be coaxed into buying. It also assumes that
the company has a whole battery of effective selling and promotional tools to
stimulate more buying. Most firms practice the selling concept when they have
overcapacity. They aim to sell what they make rather than make what the market
wants.

Contemporary Approaches

A. The Marketing Concept. This is a business philosophy that challenges the above
three business orientations. Its central tenets crystallized in the 1950s. It holds that
the key to achieving its organizational goals (the selling company) consists of the
company being more effective than competitors in creating, delivering, and
communicating customer value to its selected target customers. The marketing

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concept rests on four pillars: target market, customer needs, integrated marketing,
and profitability.

B. Relationship Marketing Concept. It is believed that all marketing activities are to

establish, maintain, and strengthen meaningful long-term relationships with
customers. Extensive customer databases are created, maintained, and updated.
Customer profiles, purchase habits, and preferences are tracked and monitored. This
is to ensure that customer’s needs are fulfilled, and the relationship with them is
maintained.

C. The Societal Marketing Concept. This concept holds that the organization’s task
is to determine the needs, wants, and interests of target markets and deliver the
desired satisfactions more effectively and efficiently than competitors (this is the
original Marketing Concept). Additionally, it holds that this all must be done in a way
that preserves or enhances the consumer’s and the society’s well-being.

According to differentiation: Undifferentiated and differentiated Goods

▪ Undifferentiated goods are products whose physical characteristics are so

identical, that it would be difficult, if not impossible, to distinguish one
purchased from one vendor or another. Most undifferentiated goods are
products that are sourced from nature. Typical example of an undifferentiated
good is rock salt.
▪ Differentiated goods are varied in their characteristics and features that they
are readily distinguishable from one another. If one were to park white colored
vehicles of each model from all local car manufacturers side-by -side, Toyota
Corolla would still be readily distinguishable from the Mazda 3, the Nissan
Sentra, and The Honda Civic. This ability of manufacturers to successfully
distinguish their products from other competitors is called Branding.

According to Durability: Consumables, Semi – Durable and Durable Goods

Based on durability, products are either consumables, semi -durable, or durable

goods. Durability refers to the length of time a consumer can derive benefits from the
product or good purchase.

▪ Consumable is a product whose benefit can only be used by a consumer for

only a short period of time, sometimes only a few minutes. For this reason,
many misinterpret consumables to exclusively include food, drinks, and other
edible items. Although these are consumables, nonedible items such as
detergents and toiletries are also considered consumables.
▪ Semi-durables provide benefits to the consumer for a longer period, usually
spanning several months. Semi-durables are manufactured for a longer term
by the consumers. Examples of semi-durables are clothes, shoes, belts, and
jackets.

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According to Type: Convenience, Shopping, Specialty, and Unsought
Goods

▪ Convenience goods are products that are purchased frequently, are

usually inexpensive, and do not require much purchase effort and evaluation.
Examples are newspapers, gum, and candies. The key to the successful
marketing of convenience goods is its availability in as many retail outlets as
possible, catering to consumer needs where and when it arises.
▪ Shopping goods are purchased less frequently than convenience goods,
relatively more expensive, and require some amount of information search
and evaluation prior to purchase. Examples of shopping are clothes, shoes
and handbags.
▪ Specialty goods are goods that require unusually large effort on the part of
consumers to require. Example of Branded luxury merchandise, work of art,
and homes.
▪ Unsought goods are goods that consumers seldom actively look for, and
are usually purchased for extraordinary reasons, such as fear or adversity
rather than desire. Examples are investments, memorial plans etc.

Emerging Types of Marketing and their Applications:

Based on a 2017 report by Kleiner Perkins Caulfield and Byers, an internet

trend investment firm, 3.4 billion people use the internet. Therefore, the internet has
become an easy and quick way to research, reach and engage customers.

1. Search engine optimization is majorly concerned with increasing a business’

visibility and rankings on search engine result pages. It is a simple way of attracting
organic traffic of potential customers to a website. SEO can be maximized with paid
adverts (Google AdWords), strategic content marketing and social media networks.

2. Pay per Click advertising: This is advertising presented on search engine result
pages or web pages where the advertiser is only charged based on the number of
times someone clicks on the ads to go to the advertiser's targeted website.

3. Email marketing is a type of marketing based on the distribution of messages

through emails. Email marketing provides direct contact with customers and allows

businesses to create relationships with their customers. Updates, exciting news, and
call to actions can be sent directly to customers.

4. Referral marketing: is a type of marketing where an individual or customer pleased

with the results gotten from a product refers the product to another person. It's a
very subtle form of marketing that can provide great results especially when the
person referring is an Influencer in that industry.

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5. Affiliate marketing: is a prominent type of internet marketing where a third party
promotes a product and earns commission, or a piece of the profit gotten from every
sale made through that referral.

6. Video marketing: Videos act as one of the most interactive types of online
marketing and can prove to be a great way to raise awareness about a business or
product. In fact, according to Mushroom networks, YouTube is the second biggest
search engine. Therefore, video marketing can prove to be a great way to pass
messages to target customers.

7. Inbound marketing is a very powerful contemporary marketing strategy that

focuses on different tactics to draw consumers in and convince them to buy goods.
It is one the result-oriented types of marketing that uses content to drive results. A
key subset of Inbound marketing is Content marketing which the Content Marketing
Institute refers to as "a strategic marketing approach focused on creating and
distributing valuable, relevant, and consistent content to attract and retain a clearly
defined audience."

(INDEPENDENT LEARNING ACTIVITY)

Activity 1. For each of the following questions, write A if the statement is TRUE
and B if the statement is FALSE for each question.
1. Distribution involves making products available to the consumer.
2. No single pricing formula will work for all businesses, nor is there a
formula that will assure maximum profits in all situations.
3. A brand helps a company differentiate its offerings from those of
competitors
4. Understanding the characteristics and motivations of the ultimate
consumer is one of the most important responsibilities of a Marketing
Manage
5. The aim of market segmentation is to identify groups of buyers based on
similarities and then develop a marketing strategy based on those
similarities
6. Competitive analysis strives to discover a competitive advantage.
7. Information gleaned from an assessment of competition helps companies
plan their own marketing strategies.
8. Firm’s must consider the product’s stage in the life cycle, its importance to
the firm’s portfolio, the competitor’s intentions and resources, the
product’s price, and quality sensitivity, when responding to a competitor’s
price change.
9. The ideal price for any product or service is one that is acceptable to both
the buyer and the seller (perceived value).

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 10. Distribution includes both physical movement of products and the
establishment of intermediary relationships to guide and support the
movement of products.

Activity 2.

a. Assume you are about to graduate. How would you apply marketing principles to
your job search? In what ways would you be able to market yourself and impress
the human resource specialists create, communicate, and deliver value as a
potential employee, and what would that value be, exactly? How would you prove
that you can deliver that value?

__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

b. Is marketing always appropriate for political candidates? Why or why not?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Activity 3. Read each item carefully. Use a separate sheet for your answer. Write
only the letter of the correct answer for each test item.

1. What is the definition of marketing?

A. It is a management process responsible for identifying, anticipating, and
satisfying customer requirements profitably.
B. It is a process of planning, organizing, staffing, directing, and controlling
the organization.
C. It is a matter regarding the management, creation, and study of money
and investments.
D. It is the method of putting the right person in the right position.
2. Which of the following statements about marketing is TRUE?
A. It is concerned with marketing the sale; contract law is concerned with the
exchange.
B. It only needs one person willing to pay for a marketing exchange to take
place.
C. It is only possible if an exchange is possible
D. It is consumer exploitation.
3. Which of the following is true in setting marketing objectives to reach goals?
A. Marketing strategies must be developed to attain marketing objectives.
B. Increasing sales is a better strategy than increasing profits.
C. Increasing profits is best achieved by reducing costs.
D. All of the above
4. Which is the MOST basic concept underlying marketing?

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 A. barter B. human needs C. products and services D. transactions
5. Which of the following is NOT a role of marketing?
A. Creation of products and services C. Satisfy customer
B. Identify customer D. Hiring employees

CONCEPT TRANSFORMATION
Activity 1. Product Commercial Video Presentation: look for your favorite product
inside your house then use it as your materials for the commercial video. You will be
given 5 minutes of video recorded and send it to my email account.
▪ Fill out the table below and select the appropriate approaches that you think
would help improve courier / network services to meet the needs of your
customers.

Name of courier/ network Marketing Goals Approaches

1.

2.
3.
4.
5.
6.
7.
8.
9.

10.

Activity 2. In not more than ten (10) sentences, answer the question briefly but
substantially.

a. How does COVID 19 affect marketing?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

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 MODULE 2

This module was designed and written with you in mind. It is here to help you
master the random variable and probability distributions. The scope of this module
permits it to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged to follow
the standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.

The module is focus only in one topic:

● Lesson 1 – Customer Relationship Management and its Marketing Strategies

▪ Learning Competencies:
✔ define “relationship marketing” ( ABM_PM11-Ic-d-5)
✔ explain the value of customers (ABM_PM11-Ic-d-6)
✔ identify and describe “relationship development strategies” (ABM_PM11-
Ic-d-7)
✔ illustrate successful customer service strategy in the Philippine
business enterprise (ABM_PM11-Ic-d-8)

After going through this module, you are expected to:

✔ develop a program for customer service

12
 Lesson Customer Relationship
2 Management and its Marketing
strategies

The relationship involves marketing communications, sales support, technical

assistance, and customer service. The relationship is measured by the degree of
customer satisfaction through the buying cycle and following receipt of goods or
services. See also customer relationship management. Customer satisfaction has
always been a key element in the pursuit of corporate goals and objectives. However,
the current competitive environment fostered by liberalization and globalization of
the economy, and the rising customer expectations for quality; service and value
have prompted many companies to organize their business around customers they
serve, rather than around product lines or geographic business units.

Five (5) Tips to Learn off Skilled Customer Service Representative:

1. Make your customers feel appreciated.

One of the first customer service tips is to make sure your customers feel
appreciated and valued. It is one of the most successful ways to earn
customer loyalty and differentiate yourself from your competitors. Fun and
inexpensive reward programs, raffles, or contests can all help your
customers feel like a part of the family.
2. Develop a bespoke service for your individual customer segments.
Anticipate their needs and tailor your service accordingly. Customers all have
slightly different needs and taking a one-size-fits-all approach will cause some
of them to fall through the cracks. Instead, identify the reasons why they are
seeking out your business, and make sure you fulfill those needs.
3. Welcome customer service complaints – And really listen to what
problems are out there.
Listen, listen, listen! One of the most common customer service complaints
is that the sales staff did not listen to them. Avoid this by making sure that
you and your employees are skilled listeners. Take the time to really hear
the customer, without letting yourself get distracted.
4. Always focus on positive forward-looking solutions – Not negative blame-
ridden dialog. Stay positive. When you are dealing with a difficult customer,
it is easy to become flustered or focus on the negative aspects of the situation.

13
 In those cases, be sure you are focusing on what you can do to fix the problem
rather than focusing on what went wrong. It is okay and even necessary for
you to let an irate customer vent for a bit but try not to let it run on too long.
5. You can always improve customer service skills simply by being honest
and upfront. Be humble. When you make a mistake, do not be afraid to own
up to it and apologize. Most customers realize that you are only human, and
while they might get frustrated, most will be reasonable. A sincere apology
goes a long way.

The following are some of the more popular customer service practices
in the Philippines.
Customer Service Practice Practicing Organizations
Free delivery Most department and fast-food chains
Automated in-home ordering Most department stores and drug stores
system
Gift wrapping /plastic book Most department stores and bookstores
jacket
Merchandise/ document pick-up Select courier services

Free parking Some churches and religious organizations

Valet Parking Some hotels and resorts

Reservation, installment plans Some large department stores, bookstores

Drive – Thru Most fast-food outlets

Characteristics of Relationship Marketing:

1. It focuses on the long-term rather than the short-term.
2. It focuses on partners and customers rather than on the company’s products.
3. It puts more emphasis on customer retention and growth than on customer
acquisition.
4. It relies on cross-functional teams rather than on departmental-level work.
5. It relies more on listening and learning than on talking.

Benefits in developing and implementing customer relationship

1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation

Four Brand Benefits

To establish a long-term relationship with their customers, firms must create
value based on several benefits since customers’ needs are multi-faceted. Contrary
to popular belief, offering lowest price may not exactly be the correct route to attain
loyal customers as there are four (4) benefits that customers look for.

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1. Functional benefit
▪ product/service attribute that provides the customer with functional utility or that
which satisfies the customer’s practical needs
▪ answers the question “Why should I buy your product or service?”
Examples:
a. Pilot Pen Company created G-TEC pens for customers like students
who prefer extremely fine writing.
Congratulations! You’ve earned a badge! Time to unlock new concept!
b. From sling laptop bags, laptop manufacturers introduced laptop
backpacks for students’ convenience.
2. Emotional benefit
▪ product/service attribute that provides the customer with a positive
feeling when they purchase or use it
▪ answers the question “How will I feel when I own or use the product or
the service?”
Examples:
a. A product wrapped with a Hallmark wrapper tends to give a feeling of
“importance” to the receiver of gift, compared to the same product
wrapped in an ordinary, low-cost wrapper.
b. A wooden toothbrush labeled as eco-friendly gives the customer an
“eco-warrior” feeling or a sense of “responsible human being”.
3. Social benefit
▪ product/service attribute that considers how the customer wants to be
perceived by others when they purchase or use it
▪ answers the question “How will others perceive me when I use your
product or service?”
Examples:
a) Holding a cup of Starbucks coffee offers the consumers a sophisticated
self-image than holding a cup of low-cost coffee.
b) A student wearing an original Nike shoe is perceived to be from a wealthy family
than a student wearing Class A shoes.
4. Economic benefit
▪ product/service attribute that considers how much a consumer can
save using the product/service
▪ answers the question “Why is your offer priced the way it is?”
Examples:
a. A Bluetooth speaker that can be used as power bank can costs higher
than a regular Bluetooth speaker. However, customers can consider it
more economic than buying a Bluetooth speaker and a power bank
individually.
b. A 3-in-1 hair tool that can be used to blow dry, straighten, and curl
your hair in one cost higher than a hair drier, hair straightening iron,
or curling iron. However, customers can consider it more economic
than buying those hair tools individually.

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Customer Service
• the process of ensuring customer satisfaction with a product or service
• can take on many forms – salesperson assistance, product delivery, technical
advice, help desks, or other means

Examples of Customer Service Practices in the Philippines

Customer Service Practice Practicing Organization(s)

free delivery most restaurants and fast-food chains
free gift wrapping/plastic book jacket most department stores and bookstores
free appliance installation most appliance centers
drive-through most fast-food outlets
valet parking some hotels and resorts
reservations, installment plans some large department stores, bookstores
free parking some churches and religious organizations
complimentary refreshments, waiting most car dealerships
lounge
help desks, touch phone access, 24- most utility firms and telecommunication
hour customer hotline firms

Activity 1. Match column A with the correct answer on column B, write only
the letter of answer on the separate sheet.
Column A Column B
1. Process of managing an organization's A. Salesperson
interaction with its current and future
customers
2. Cost for maintaining existing customers B. share of customer
3. Cost for getting new customers C. Acquisition cost
4. The person most responsible for sealing the D. CRM
deal with a customer.
5. The extent to which a product's perceived E. customer perceived
performance matches a buyer's expectations value
6. The customer's evaluation of the difference F. customer satisfaction
between all the benefits and all the costs of a
marketing offer relative to those of competing
offers
7. Marketing relationships in which customers, G. customer-managed
empowered by today's new digital technologies, relationships

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 interact with companies and with each other to
shape their relationships with brands
8. working closely with partners in other company H. customer lifetime value
departments and outside the company to jointly
bring greater value to customers
9. The value of the entire stream of purchases that I. partner relationship
the customer would make over a lifetime of management
patronage
10. The portion of the customer's purchasing that J. Retention cost
a company gets in its product categories

Activity 2. Reflective Learning Sheet

During the current COVID-19 pandemic, global markets are severely

disrupted. Businesses are forced to explore innovative solutions to overcome the
growing negative implications of this unprecedented crisis.

Due to various quarantine measures imposed by governments around the

world, certain industries have been affected much more than others. As only
businesses involved in the value chain of essential commodities are operational, the
rest of the industries need to evaluate how they will respond to business unusual.
The existing business continuity plans may not be sufficient to address the fast-
changing variables presented by COVID-19.

a. Can businesses still use relationship marketing despite this pandemic

situation? Explain.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Activity 3. In your own understanding, explain the importance of the four brand
benefits and customer service in relationship marketing.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

17
Activity 1. Narrate your recent shopping experience, was it pleasant? Were you
satisfied? Explain how customer service played a role in your experience.

________________________________________________________________________

Activity 2. Give examples of customer service and practicing organizations

Customer Service Practice Practicing Organization(s)

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.
Activity 3. Think of products you use in your home. Classify them according to
(Give at least 2 examples each and explain why you classified them as such.)

Functional benefit Emotional benefit

Social benefit Economic benefit

18
 MODULE 3

This module was designed and written with you in mind. It is here to help you master
the random variable and probability distributions. The scope of this module permits
it to be used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

The module is focus only in one topic:

● Lesson 1- strategic marketing vs. tactical marketing, Marketing Environment

and Marketing research

Learning Competencies:

✔ distinguish between strategic and marketing planning in terms of

objectives and processes (ABM_PM11-Ie-i-9)
✔ analyze the elements of macro- and micro-environment and their
influence on marketing planning (ABM_PM11-Ie-i-10)
✔ define marketing research, its importance to a business enterprise
and identify the steps in marketing research (ABM_PM11-Ie-i-11)

After going through this module, you are expected to:

✔ conduct marketing research interpret market buying behavior on

product or service and identify the product or service target market.

19
 Strategic Marketing vs. Tactical
Lesson Marketing, Marketing
3 Environment and Marketing
research
▪ In business, marketing is the action a company takes to create brand awareness
and place product in front of prospects. When creating your marketing plan,
strategic marketing comes first because it deals with the direction of your
business growth in relation to your competitors. It is a long-term goal that is
broad. Next, comes tactical planning which consists of the actual process
involved in improving your competitive position.
▪ A strategic plan is a document that establishes the direction of an organization.
It can be a single page or fill up a binder, depending on the size and complexity
of the business and work.

MARKETING ENVIRONMENT

Marketing Microenvironment

The microenvironment in marketing includes all those micro factors that affect
business strategy, decision making and performance. It is vital for business success
to conduct macro environment and microenvironment analysis before decision-
making. Macro environment factors include political, economic, social, technological,
and legal factors. On the other hand, company microenvironment factors include
customers, suppliers, competitors, employees, shareholders and media.

20
 1. Organization itself /The company
Marketing may be the “lifeblood of an organization, but it cannot exist
independently of other organizational functions.
2. Suppliers
Suppliers provide raw materials, utilities, labor, capital and equipment. The
availability and prices of these supplies should be monitored .
3. Market intermediaries
Intermediaries are channels that link the organization to its customers. Most
products are delivered and distributed to customers through intermediates.
4. Customers
Customers create the demand for products and services. They can either be
customers or end-users, businesses, or organizations.
5. Competition
The demand for a company’s products and services is affected by the nature
and intensity of competition.
6. Publics
Publics may include any individual or entity with an actual or potential
interest in the company and its products or services.
Marketing Macro – environment
The organization along with its other forces carries its functions in the larger area of
the macro environment. There are certain factors and forces of the macro
environment that are responsible for the provision of opportunities & threats to the
organization. Six types of forces are present in the macro environment of the
organization, which are as below:

1. Demographic - A company’s demographic macroenvironment consists of

changes in population characteristics.
2. Economic- The economic macro environment represents economic factors
that can directly affect an organization. Examples of these are inflation rate,
foreign exchange rates, consumer spending shifts, and consumer price index
among others.
3. Natural- The natural macro environment refers to natural resource inputs
and environment concerns. The uncontrolled use of finite natural resources
including fossil fuel in organizational activities has heightened concern for the
sustainability of the natural environment.
4. Technological- is composed of current and impending technological change.
This is sometimes the single factor that can cause the rapid acceleration or
bring about the untimely demise of products, services, or companies.
5. Political-legal – A highly uncertain political situation, such as an impending
national election, may affect the stability of businesses.. A new administration
may have different economic and monetary priorities and may favor a
divergent legislative agenda.

21
 6. Socio - Cultural – Each geographical area has a specific culture that dictates
how business is conducted. Culture is defined as the beliefs, customs, arts ,
etc. of a particular society, group, place or time.

The Purpose and Importance of Marketing Research

1. Identify viable new products and services

2. Enable risk reduction
3. Identify market opportunities and threats
4. Determine the level of customer satisfaction
5. Pinpoint and anticipate market trends or changes
6. Decide on the best advertising medium
7. Pre-test and post -test advertising and promotional campaigns
8. Evaluate the results of test marketing
9. Evaluate the results of packaging, brand name, and label testing
10. Determine consumer price awareness and sensitivity
11. Undertake location studies

Step in the Marketing Research Process

Establishmen
Research need Problem/Opport
determination t of Research
unity definition
Objectives

Determination Information Research

Data collection Sources/Type Design
forms design of Data Access
Methods s Determinatio
Identification n

Sample size Report

and sampling Data preparation
plan Data Analysis
Collection and
determination presentation

Figure 4. Marketing research process

22
 The Consumer Buying Process

The consumer buying process outlines the steps a consumer goes through
when buying a product/service. It is important for marketers to know this
process to understand how consumers buy.

Need/problem Information Alternatives

recognition search evaluation

Post-purchase Purchase
behavior decision

Figure 5. The consumers Buying Process

1. Problem /need recognition

- This initial step in the consumer buying process is the most
important of all because the failure of a consumer to recognize
a need for a problem will not result in any sale.
2. Information search
- After having recognized the need or problem, the consumer will
search for ways to address the need or solve the problem.
3. Alternative evaluation
- The consumers compare the attributes, features, and selling
prices of the various brands of products or services capable of
addressing his/her recognized need or solving his/her problem.
4. Purchase decision
- After evaluating the brands of products/service that will best
address his/her need to solve his/her problem and provide the
highest value, the consumer shall process to make the
purchase.
5. Post- purchase behavior
- The consumer shall make a judgment of the product/service's
ability to satisfy his /her recognized need or problem.

23
Bonus: 5 Customer Value Creation Ideas
➢ Make the value/price ratio seem bigger than it is. Go extra mile, give them a gift,
extra service. Make them feel that they’re appreciated.
➢ Make your service or products easy to buy. Offering different ways to pay
for it, delivery, etc.
➢ Create areal Unique Value Proposition. This holds especially true if you’re
dealing with B2B. Communicate with your costumer, why they should buy
your product over competition.
➢ Work on your brand. Your business name itself should be synonymous with
value. Develop a unique method to treat your customers, handle complaints
with care, etc.
➢ Provide stellar customer service. Treating them as such can be extremely
rewarding for both parties.

STRATEGIC PLANNING VERSUS TACTICAL PLANNING

STRATEGIC PLANNING

Marketing Guru, Philip Kotler (2003), defined strategic planning as a process of

developing and maintaining a strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities.

STRATEGIC MARKETING VS. TACTICAL MARKETING

Strategic Planning is a broad process that can address the entire business, or a
portion of the business such as marketing while Marketing planning is written
based from strategic plans.

STRATEGIC PLANNING

1. Strategy is a plan from reaching a specific goal.

2. In business, a strategy is a broad goal, such as increasing sales or market share
or creating an image for the business.
3. When creating marketing plans start with broad strategies and support it with
specific tactics.
4. Planning is the process of predicting future events and conditions and of
determining the best way to attain the goals and objectives of the organization

5. Strategic Planning is a management process of creating and maintaining fit

between the objectives and resources of the organization and the changing market
opportunities.

Marketing Strategy - Shaped by your business strategy, your marketing strategy is

your purpose; it's the offering you deliver, how you will deliver it and why your
marketing efforts will help you achieve your company’s mission and strategic goals.
Once you have your strategy, only then will you be able to develop an effective
marketing plan according to The Laire Group Team published at
www.lairedigital.com

24
MARKETING PLAN
A marketing plan is a business document written for the purpose of describing
the current market position of a business and its marketing strategy for the period
covered by the marketing plan. Marketing plans usually cover a period of one to
five years.
A marketing plan is a comprehensive document or blueprint that outlines a
company's advertising and marketing efforts for the coming year. It describes
business activities involved in accomplishing specific marketing objectives within
a set time frame.

Marketing Strategy Marketing Plan

The “Why” Behind your Marketing The Road Map the Execution
Efforts “Plan”
Its purpose is to describe how your Its purpose is to lay out your
marketing goals will help you achieve marketing campaign efforts on a
your business goals tactical level
What offering you will deliver, who What you will do, where you will do it,
you will deliver, who you will deliver it when you will implement and how
to, how you will deliver it and who you will track success.
your competitors are.
It helps you make the most of your It supports your strategy and is the
investment, keep your marketing action plan you’ll uses to implement
focused, and measure your sales your marketing efforts.
results.
Source: The Laire Group Team | April 23, 2018 lairegroup.com

Parts of Marketing Plan

1. Executive Summary – presents the highlight of the plan. It is the overview of

the proposed plan.
2. Current Marketing Situation - provides data on the present product, its market,
and how products are distributed and promoted.
3. Environment Analysis - discusses the various external factors that affect the
marketability of the product. This defines the product’s strength and weaknesses,
as well as the various threats and opportunities facing the product.
4. Objectives - consist of marketing goals in sales, target market, positioning,
market share, and profit.
5. Marketing Strategies - consist of the company’s game plan, indicating how
objectives will be achieved.
6. Action Programs - indicate the steps that the company would undertake to
ensure that marketing strategies would achieve. It includes identifying the
persons involved, the timeframe, and the budget.
7. Budget – is an important component that puts into details the cost of
implementing the marketing plan.
8. Controls – indicate how progress will be monitored and reviewed by the
Management.

25
Activity 1. Read each statement carefully. Choose the letter which corresponds to
the correct answer and write it in a separate sheet of paper.
1. Which of the following is part of an organization’s marketing environment?
a. The organization’s micro-environment
b. The organization’s macro-environment
c. Any internal or external force that affects the organization’s ability
to create, communicate, deliver, and exchange offerings of value.
d. All the options listed are part of an organization’s marketing
environment
2. The process of breaking the marketing environment into smaller
parts to gain a better understanding of it is known as ____________.
a. The internal environment c. The macro -environment
b. Environmental analysis d. The micro-environment
3. Which of the following statements is correct?
a. The internal environment includes those factors that are not
controllable by the organization
b. Weaknesses are internal factors that marketers seek to minimize
c. The internal environment includes factors that are controllable by the
organization
d. Both b and c
4. Which of the following is not a part of an organization’s external
environment?
a. Customers c. The micro-environment
b. Competitors d. The external environment

5. Primary producers such as wheat farmers construct dams to

influence their businesses.
a. Internal environment c. Micro-environment
b. External environment d. Macro-environment
6. A level of competition characterized by consumers often having
limited financial resources.
a. Generic competition c. Brand competition
b. Monopolistic competition d. Total budget competition
7. Which of the following would not be a part of an organization’s micro-
environment?
a. Competitors c. Customers
b. Partners such as suppliers and retailers d. Economy

26
 8. A market structure in which there is only one supplier and there are
substantial, potentially insurmountable, barriers to new entrants is known
as___________.
a. Oligopoly c. Monopolistic competition
b. Monopoly d. Pure competition
9. Working for the Aldin supermarket chain, you are very aware of the activities
of your company's competitors; Coles and John and find that you frequently
make changes to your businesses in response to actions they have taken.
You also notice that they react when you make changes to your business
offering. This competition is occurring within the ___________.
a. Internal environment c. The competitive environment
b. Micro-environment d. The macro-environment
10. To overcome legal regulations, an industry body may attempt to influence
which aspect of its marketing environment?
a. Political c. Competitive
b. Sociocultural d. Economic

Activity 2. Kindly differentiate the Strategic and Marketing versus Tactical

Marketing.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Activity 3. Reflective Learning Sheet

Amid the current COVID-19 pandemic, global markets are severely

disrupted. Businesses are forced to explore innovative solutions to overcome the
growing negative implications of this unprecedented crisis.

Due to various quarantine measures imposed by governments around

the world, certain industries have been affected much more than others. As only
businesses involved in the value chain of essential commodities are operational, the
rest of the industries need to evaluate how they will respond to business unusual.
The existing business continuity plans may not be sufficient to address the fast-
changing variables presented by COVID-19.

1. Can you site businesses use out-of-the-box marketing strategy despite of this
pandemic situation? Explain.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

27
 Self - Learning Assessment
Activity 1. Mini – Marketing Research Group Guidelines
The purpose of the research project is to challenge the students to think line a
marketing manager/researcher by applying the knowledge accumulated throughout
the chapter. Work in a group of 3-4 members to conduct your own research study
by formulating a research problem, determining the research methodology to be
used, collecting the data, analyzing the data, determining the findings of the
research, and writing and presenting the research report online.
Conduct a mini-marketing research by group/Individual. Follow the guidelines
and format provided:
Step 1. Choose a topic
Step 2. Develop a research proposal
Step 3. Data Collection
Step 4. Analysis data
Step 5. Write and present the research report through online
▪ Title page (1 page)
▪ Table of content ( 1 page)
▪ Executive summary (5-10 pages max.)
▪ Brief statement of problem and research objectives
▪ Major findings
▪ Conclusions
▪ Recommendation

Oral Presentation: The oral presentation should be approximately 10-12

minutes.

Activity 2. Can you cite or enumerate businesses that use customer service
strategy? Explain how it will help the business.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

28
 MODULE 4

This module was designed and written with you in mind. It is here to help you
master the random variable and probability distributions. The scope of this module
permits it to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged to follow
the standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.

The module is focus only in one topic:

● Lesson 1 – Consumer Market Behavior: How People Make Buying Decisions

Learning Competency:

✔ differentiate the buying behavior and decision making of individual/

household customer versus the business (organizational) customer
(ABM_PM11-Ie-i-13)

After going through this module, you are expected to:

✔ conduct marketing research, interpret market buying behavior on product

or service, and identify the product or service target market

Consumer Behavior: How People Make

Lesson Buying Decisions
4

Consumer behavior is influenced by many things, including environmental and

marketing factors, the situation, personal and psychological factors, family, and
culture. Businesses try to figure out trends so they can reach the people most likely
to buy their products in the most cost-effective way possible. Businesses often try to
influence a consumer’s behavior with things they can control such as the layout of a
store, music, grouping and availability of products, pricing, and advertising. While
some influences may be temporary and others are long lasting, different factors can

29
affect how buyers behave—whether they influence you to make a purchase, buy
additional products, or buy nothing at all. Let’s now look at some of the influences
on consumer behavior in more detail.

Consumers are of different gender and ages. They have varying income levels, live in
different regions of the country, and have various personalities and psychological
profiles. This makes developing a single way to sell to consumers difficult as they are
influenced by different factors when buying goods and services. Consumer purchases
are initiated by marketing stimuli. Marketing stimuli refer to the elements of the
marketing mix, oftentimes referred to as the four P’s: product, price, place, and
promotion. Consumers are influenced by the products /services that they see, hear
from mass media, the internet, and through word of mouth.

Consumer Market and buying behavior

The consumer buying process outlines the steps a consumer goes through when
buying a product /service. It is important for marketers to know this process to
understand how consumers buy.
Purchase Decision
Psychological Inputs
Marketing Inputs

Product choice
Brand Choice
Culture Location Choice
Attitude Purchase
Products timing
learning
Price Purchase
Perception
Place amount
Promotion Purchase
frequency

Figure 2. The Consumer Behavior Model

▪ Characteristics influencing purchase behavior (Source: Stock photo)

30
Factors That Affect Consumer Behavior:
1. Culture – This refers to the general or overall culture of a group. This includes
customs, arts, social institutions and achievements of a particular nation, people
of another social group.
2. Social Factors – This is all about the norms of behavior, among smaller groups
where a consumer belongs to. These are reference groups, family, roles and status,
norms
3. Personal Factors- These are the demographics of the individual that affect the
manner by which products or services are viewed and treated. Examples: Age, life
cycle, stage occupation and economic circumstances.
5. Psychological Factor- This is how individual behaves and it is the result of how
we are raised, who we interact with or what our histories are. Examples:
Motivation, perception, learning, beliefs, and attitudes.
Three Major Types of Buying Situations

1. Straight Rebuy – This is a business buying situation wherein the buyer routinely
re-order products or services without any modification
2. Modified Rebuy – This is a business buying situation wherein the buyer wants to
modify product specifications, prices, terms, or suppliers.

3. New Task – A business buying situation in which a buyer purchases a product or

a service for the first time.

People differ in their innovativeness if readiness to try new products.

Five different adoption categories can be identified as:

1. Innovators are risk taking customers who seek changes. They usually try the new
product in the introduction phase of the product life cycle.
2. Early adopters are guided by respect. They are opinion leaders in their
communities and adopt new idea early about carefully.

3. The early majority are deliberate. Although rarely leaders, they adopt new ideas
before the average person.

4. The late majority are skeptical. They adopt an innovation only after most people
have tried it.

5. Laggards are tradition bound. They are suspicious of changes and adopt the
innovation only when it has become something of a tradition itself.

31
Activity 1. Read each statement carefully. Choose the letter which corresponds to
the correct answer and write it in a separate sheet of paper.
1. Which of the following is the best explanation of consumer buying behavior?
a. A consumer purchasing a product
b. A consumer deciding
c. A consumer's behavioral state
d. The sum of all factors that influences a consumer's purchasing decision
2. You are hungry and investigate the fridge only to find you don't have any food.
What stage of the buying process are you at?
a. Need c. Problem recognition
b. Want d. Information search
3. You are going to buy a house in the next few months. Which one of the
following purchasing behaviors are you likely to employ?
a. Complex buying c. Dissonance-reducing
b. Habitual buying d. Variety

4. An ________ is a person who identifies a need or desire, makes a purchase,

and then disposes of a product.
a. marketer c. influencer
b. consumer d. content generator
5. Jenny Rowlins is absolutely exhausted after her shopping trip to pick out a
dress for her sorority's formal event. The stores were crowded, and none of her
favorite shops carried a dress that she liked in her size. After spending hours
at the mall, Jenny gave up and decided to order her dress online and just
return it if it wasn't exactly right. This story is an example of how consumer
behavior is a(n) ________.
a. Industry c. art form
b. Process d. theory
6. Which of the following is the study of the processes involved when individuals
or groups select, purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires?
a. lifestyle marketing c. consumer behavior
b. role theory d. marketing research
7. Which of the following time periods is encompassed in the study of consumer
behavior?
a. pre-purchase c. post-purchase
b. purchase d. all of the above

8. According to the basic marketing concept, a firm exists to ________.

a. influence popular culture c. nurture relationships
b. dominate market share d. satisfy needs

32
 9. Why is age a common demographic category used in understanding consumer
behavior?
a. Different age groups have different needs and wants.
b. Age is easier to categorize than gender.
c. Generational groups tend to be similar.
d. all of the above
10. Which theory suggests that consumer expectations of achieving desirable
outcomes motivate behavior?
a. drive theory c. expectancy theory
b. role theory d. equity theory

Activity 2. Reflective Learning Sheet

During the current COVID-19 pandemic, global markets are severely

disrupted. Businesses are forced to explore innovative solutions to overcome the
growing negative implications of this unprecedented crisis.

Business environments are affected, and few had close because of this
pandemic situation. Due to various quarantine measures imposed by the
government. The existing business continuity plans may not be enough to address
the fast-changing variables presented by COVID-19 pandemic.

1. Can businesses still use concept of Customer Value despite of this pandemic
situation? Explain.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________

Activity 3. Answer the following questions based from real life situation. Use a
separate sheet for your answer.

We are all affected by the spread of corona virus since March, 2020 that led
to the decision of the Department of Education to move the opening of classes from
June, 2020 to October 5, 2020. The Department of Education through the guidance
of the IATF decided that the Learning Delivery Mode is Modular and Online method
of instruction hence face to face modality is prohibited. This development led to the
high demand of gadgets and modern technology. Stakeholders especially the parents
wanted the best for their children. They seek for the best gadgets and suppliers in
the market. Many brands are offered in the market or through on-line marketing. In
this regard, your parents asked you to decide what brand are you going to buy for
use in your studies. You’re too excited to purchase a mobile phone or a laptop.

33
1. Describe the process that you went through in your purchase that
need thorough deliberation.

__________________________________________________________________________________
__________________________________________________________________________________

__________________________________________________________________________________

2. Did you go around to look for the best price?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

3. Did you choose quality over price or vice versa?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

4. What is your deciding factor in choosing the product?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Activity 1. What purchasing decisions have you been able to influence in your family
and why? Is marketing to children a good idea? If not, what if one of your competitors
were successful in doing so? Would it change your opinion? Write your answer in the
separate sheet.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

34
 MODULE 5

This module was designed and written with you in mind. It is here to help you
master the random variable and probability distributions. The scope of this module
permits it to be used in many different learning situations. The language used
recognizes the diverse vocabulary level of students. The lessons are arranged to follow
the standard sequence of the course. But the order in which you read them can be
changed to correspond with the textbook you are now using.

The module is focus only in one topic:

● Lesson 1 – Market Segmentation, Targeting and Positioning

Learning Competencies:

✔ identify and segment market for a product or service (ABM_PM11-Ie-i-14)

✔ select the appropriate target market segment and its positioning
(ABM_PM11-Ie-i-15)
After going through this module, you are expected to:

✔ Segment the markets based on several segmentation variables

✔ Target a segment by identifying the fit between segment profitability and
organizational capability
✔ Position your product/service so that it occupies a distinct and valued place
in the target customers’ minds

Lesson Marketing Segmentation, Targeting and

5 Positioning

The development of a successful marketing strategy begins with an

understanding of the market for the good or service. A market is composed of people
or institutions with need, enough purchasing power and willingness to buy. The
marketplace is heterogeneous with differing wants and varying purchase power. The
heterogeneous marketplace can be divided into many homogeneous customer
segments along several segmentation variables. The division of the total market into
smaller relatively homogeneous groups is called market segmentation. Products
seldom succeed by appealing to everybody. The reasons are simple: not every

35
customer is profitable nor worth retaining, not every product appeal to every
customer. Hence the organizations look for a fit between their competencies and the
segments’ profitability. The identified segments are then targeted with clear
marketing communications. Such communications are referred to as positioning the
product or service in the mind of the customer to occupy a unique place. This
involves identifying different points of differentiation and formulating a unique selling
proposition (USP). In today’s marketplace, differentiation holds the key to marketing
success. This lesson is about marketing strategy formulation which consists of
market segmentation, targeting and positioning.

Segmenting the Consumer Markets

Consumer markets are those where the products are purchased by ultimate
consumers for personal use. Industrial markets are those where the goods and
services are purchased for use either directly or indirectly in the production of other
goods and services for resale. Market segmentation of these markets uses different
variables.

The consumer market segmentation variables appear to fall into two broad classes:
consumers’ background characteristics and consumers’ market history. The
following tables illustrate the most important factors and variables that have been
found useful for market segmentation.

Well known ways to segment your audience include:

1. Demographics

Breakdown by any combination: age, gender, income, education, ethnicity,

marital status, education, household (or business), size, length of residence,
type of residence or even profession/Occupation. An example is Firefox who
sell 'coolest things', aimed at a younger male audience. Moshi Monsters,
however, is targeted to parents with fun, safe and educational space for
younger audiences.

2. Psychographics
This refers to 'personality and emotions' based on behavior, linked to purchase
choices, including attitudes, lifestyle, hobbies, risk aversion, personality, and
leadership traits. magazines read and TV. While demographics explain 'who' your
buyer is, psychographics inform you 'why' your customer buys.

There are a few different ways you can gather data to help form psychographic
profiles for your typical customers.

36
a. Interviews: Talk to a few people that are broadly representative of your target
audience. In-depth interviews let you gather useful qualitative data to really
understand what makes your customers tick. The problem is they can be
expensive and difficult to conduct, and the small sample size means they may
not always be representative of the people you are trying to target.
b. Surveys: Surveys let you reach more people than interviews, but it can be
harder to get as insightful answers.
c. Customer data: You may have data on what your customers tend to purchase
from you, such as data coming from loyalty cards if an FMCG brand or from
online purchase history if you are an ecommerce business. You can use this
data to generate insights into what kind of products your customers are
interested in and what is likely to make them purchase. For example, does
discounting vastly increase their propensity to purchase? In which case they
might be quite spontaneous.

3. Belief and values

Refers to Religious, political, nationalistic, and cultural beliefs and values. The
Islamic Bank of Britain offers Sharia-compliant banking which meets specific
religious requirements. A strange but interesting example of religious
demographics influencing marketing that you might not have guessed is that
Mormons are really into 'multi-level marketing'. They're far more likely to be
engaged in the practice than any other US group. Going the extra mile with
demographic research can lead to discovering new marketing opportunities
and thinking outside the box. For example, did you know 55-64-year-olds are
the most likely age group to buy a new car? But you don't tend to see them in
the car ads. An opportunity waiting to be seized!

4. Life Stages
Life Stages is the Chronological benchmarking of people’s lives at different
stages. An example is Saga holidays which are only available for people aged
50+. They claim a large enough segment to focus on this life stage
5. Geography

Drill down by Country, region, area, metropolitan or rural location, population

density or even climate. An example is Neiman Marcus, the upmarket
department store chain in the NCR now delivering to Mindanao.

6. Lifestyle

This refers to Hobbies, recreational pursuits, entertainment, vacations, and

other non-work time pursuits. Companies such as on and off-line magazine
will target those with specific hobbies i.e. FourFourTwo for football fans. Some
hobbies are large and well established, and thus relatively easy to target, such
as the football fan example. However, some businesses have found great
success targeting very small niches very effectively. A great example is the
explosion in 'prepping' related businesses, which has gone from a little heard
of fringe activity to a billion-dollar industry in recent years.

37
 7. Behavior

Refers to the nature of the purchase, brand loyalty, usage level, benefits
sought, distribution channels used, reaction to marketing factors. In the
environment, the benefits sought are often about ‘how soon can it be
delivered?’ which includes the ‘last minute’ segment - the planning in advance
segment. An example is Parcelmonkey.co.uk who offer same day, next day and
international parcel deliveries.

8. Benefit

Benefit is the use and satisfaction gained by the consumer. Stationery offers
similar products to other stationery companies, but their clients want the
benefit of their signature packaging: tissue-lined Nile Blue boxes and tied with
navy ribbon!

Market Segmentation - Meaning, Basis and Types of

Segmentation
What is Segmentation?
Segmentation refers to a process of bifurcating or dividing a large unit
into various small units which have similar or related characteristics.

Market Segmentation
Market segmentation is a marketing concept which divides the complete market set
up into smaller subsets of consumers with a similar taste, demand, and preference.
A market segment is a small unit within a large market comprising like-minded
individuals. One market segment is totally distinct from the other segment. A market
segment comprises individuals who think on the same lines and have similar
interests. The individuals from the same segment respond in a similar way to the
fluctuations in the market.

Basis of Market Segmentation

1. Gender
The marketers divide the market into smaller segments based on gender. Both
men and women have different interests and preferences, and thus the need
for segmentation. Organizations need to have different marketing strategies
for men which would obviously not work in case of females. A woman would
not purchase a product meant for males and vice versa. The segmentation of
the market as per the gender is important in many industries like cosmetics,
footwear, jewelry, and apparel industries.

38
2. Age Group
Division based on the age group of the target audience is also one of the ways
of market segmentation. The products and marketing strategies for teenagers
would obviously be different than kids.
Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams
Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags
Age group (20 years and above) - Cosmetics, Anti-Ageing Products,
Magazines, apparels and so on.
3. Income
Marketers divide the consumers into small segments as per their income.
Individuals are classified into segments according to their monthly earnings.
The three categories are:

High income Group

Mid Income Group
Low Income Group
Stores catering to the higher income group would have a different range of
products and strategies as compared to stores which target the lower income
group. Pantaloon, Carrefour, Shoppers stop targets the high-income group as
compared to Vishal Retail, Reliance Retail or Big bazaar who cater to the
individuals belonging to the lower income segment.
4. Marital Status
Market segmentation can also be as per the marital status of the individuals.
Travel agencies would not have similar holiday packages for bachelors and
married couples.

5. Occupation
Office goers would have different needs as compared to school / college
students. A beach house shirt or a funky T Shirt would have no takers in a
Zodiac Store as it caters specifically to the professionals.

Types of Market Segmentation

1. Psychographic segmentation
The basis of such segmentation is the lifestyle of the individuals. The
individual’s attitude, interest, value help the marketers to classify them into
small groups.
2. Behaviouristic Segmentation
The loyalties of the customers towards a brand help the marketers to
classify them into smaller groups, each group composed of individuals loyal
towards a brand.
3. Geographic Segmentation
Geographic segmentation refers to the classification of markets into various
geographical areas. A marketer can’t have similar strategies for individuals
living at different places.

39
 Nestle promotes Nescafe all through the year in cold states of the country
as compared to places which have well defined summer and winter seasons.
McDonald’s in Philippines does not sell beef products as it is strictly against
the religious beliefs of the countrymen, whereas McDonald’s in US freely
sells and promotes beef products

How to select the Target Market?

Is it essential for the organizations or marketers to identify the set of people
whom they want to target? Marketers must understand the needs and
expectations of the individuals to create its target market. The target audience
must have similar needs, interests, and expectations. Similar products and
brands should entice the individuals comprising the target market. Same
taglines and advertisements attract the attention of the target audience and
prompt them to buy.

Types of Positioning Strategies

There are several types of positioning strategies. A few examples are positioning

by:

1. Product attributes and benefits: Associating your brand/product with

certain characteristics or with certain beneficial value.
2. Product price: Associating your brand/product with competitive pricing.
3. Product quality: Associating your brand/product with high quality.
4. Product use and application: Associating your brand/product with a specific
use.
5. Competitors: Making consumers think that your brand/product is better than
that of your competitors.

Activity1. Read each statement carefully. Choose the letter which corresponds
to the correct answer and write it in a separate sheet of paper.
1. It pertains to where the population is located.
a. demographic b. geographic c. psychographic d. behaviorgraphic
2. It refers to the general characteristics of the population.
a. geographic b. psychographic c. behaviorgraphic d. demographic
3. It must have the financial means to afford the purchase price of the product
or service.
a. reachable b. financially capable c. homogeneous d. all of the above
4. It must be within physical reach to permit product distribution
a. homogeneous b. reachable c. financial capable d. non-homogeneous

40
 5. It must react similarly to specific marketing stimuli.
a. Homogeneous b. financial capable c. reachable d. financial
6. It is a process of communicating the image of a brand into the minds of
customers.
a. segmentation b. targeting c. positioning d. all of the above
7. Which of the following statements is true about geographic segmentation?
a. Dividing consumer groups based on lifestyles
b. Dividing markets based on location
c. Understanding the benefits, the product has to offer
d. Dividing consumer groups based on social status
8. Which of the following statements is true about Lifestyle segmentation?
a. Understanding how people and developing product and services that
match that way of life
b. Dividing the market into distinct groups of buyers
c. Understanding what consumers like or dislike about their life
d. Developing stylish products for that segment
9. The three steps process within marketing segmentation includes
_____________.
a. Segmentation. Differentiation and positioning
b. Targeting, Segmentation and Positioning
c. Segmentation, Targeting and Positioning
d. Positioning. Mass Marketing and Segmentation
10. What do mean by A.I.O?
a. Activities, Innovation and Opinions
b. Action, Interpretation and Opportunities
c. Activities, Interest and Opinions
d. Activities, Interest and Options

Activity 2. Presented in column A are conceptual information about marketing, find

the best match provided in column B.

Column A Column B
1. Analyzing the different parts of A. Light
the market
2. How customer perceived the product B. Cost Leadership
3. Low volume C. Perceptual Map
4. Heavy D. Repositioning
5. Deciding where market E. Market
segments to enter
6. Offering products with price F. Healthy
lower than the competing
products
7. Unique products G. Targeting
8. Altering its place in consumer’s H. High Volume
Mind
9. Use to show consumers I. Differentiation
Perception
10. Unhealthy

41
Activity 3. Based on the car examples, how do car manufacturers use the following
segments when marketing products? Use a separate sheet of paper for your answer
and be guided with the rubrics given in constructing your idea.

* Behavioral * Demographic * Geographic * Psychographic

Activity 1. Is it possible for a product with no distinct differentiating feature to be

successful in the market? Give examples. (Write your answer in the separate sheet)

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________
Activity 2. Now that we are experiencing the effect of the COVID-19 pandemic, how
would you position your town as a local tourist destination? What would your unique
selling point for the municipality? In your opinion, what kinds of travelers will be
most attracted to this unique selling point?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________

42
Activity 3. Match the given conceptual information about marketing segmentation in
column A to the given answers in column B.

Column A Column B

1. It offers an opportunity to pinpoint exactly A. Behavioral

what messaging will drive your customers to
make a purchase.
B. Demographic
2. It divides markets by decision-making
patterns such as purchase, consumption, and
usage.
C. Geographic
3. It divides markets according to lifestyle,
personality traits, values, and interest of
consumers.
D. Market
4. It creates different target customer groups by
including factors such as climate
E. Market
5. It sorts market by age, gender, education,
Segmentation
income, family size, race, gender, and
occupation
F. Psychographic
6. It consists of various segments.

43
Directions: Read each statement carefully. Choose the letter which corresponds
to the correct answer and write it in a separate sheet of paper.
1. Which entails the gathering of qualitative and quantitative data about the
company’s products and possible markets?
A. Market Planning C. Market Control
B. Market Analysis D. Market Implementation
2. Which of the following statement is not true about marketing concept?
A. The management takes “customer first”
B. The marketing concept is a customer-centered
C. It focuses on persuading customers by explaining the benefits of the product
D. It is a customer focus and value which are the routes in achieving sales and
profits
3. Which of the following sorts of a market by elements such as, age, gender
education, income, family size, race, occupation, nationality and more?
A. Behavioral Segmentation
B. Demographic Segmentation
C. Geographic Segmentation
D. Psychographic Segmentation
4. Which of the following is the main purpose of market segmentation?
A. Higher return of investment of the business
B. Identify different groups within target audience
C. Increase production and labor of the business
D. Proper allocations of business expenditures
5. Which of the following is the main purpose of market segmentation?
A. Higher return of investment of the business
B. Identify different groups within target audience
C. Increase production and labor of the business
D. Proper allocations of business expenditures
6. Save customer service costs in check by occasionally doing cost -benefit analysis
approach of estimating the strengths and weaknesses of alternatives to satisfy
transactions for a business. This is called ___________.
A. Promote genuine customer service with passion.
B. Keep innovating customer service.
C. Shop your competition.
D. Establish communication line between your customer and customer contact
staff.
7. Which statement is FALSE regarding customer value?
A. Customer value can be increased by increasing the quality of a product or
service.
B. Customer value is equal to the perceived benefits minus the perceived costs in
the mind of a customer.
C. The product or service that is the highest quality will always have the highest
customer value.
D. Customer value can be increased by lowering the cost of a product or service.

44
8. What is the role of Market Research?
A. Enables the business to make managerial judgment on issues faced
B. Allows answers to business questions to appear
C. Should only be recognized as aid to managerial judgment and not a substitute
for it
D. It is an accurate form of evaluating a business decision
9. All are types of segmenting the market EXCEPT:
A. Consumer Segmentation
B. Demographic Segmentation
C. Geographic Segmentation
D. Psychographic Segmentation
10. Which of the following is the main purpose of market segmentation?
A. Higher return of investment of the business
B. Identify different groups within target audience
C. Increase production and labor of the business
D. Proper allocations of business expenditures

45
 46
What's More
Activity 3
1. A
2. A
3. A
4. B
5. D
What's More What's More What can What can What can
Activity 2 Activity 1 I do ? I do ? I do ?
1. A
Activity 1 Activity 2 Activity 3
Depends on 2. A
the students 3. A Depends Depends Depends
answer 4. A on the on the on the
5. A student student student
6. A answer answer answer
7. A
8. A
9. A
10.A
Module 1
What I Know
1. A
2. A
3. C
4. D
5. C
6. C
7. B
8. A
9. A
10. A
 47
What's More What's More What I What I
Activity 2 -depend 1. D can do ? can do ?
on the students 2. B
3. D Depends Depends
answer
4. D on the on the
Activity 3- depend 5. B students students
on the students 6. D answer answer
answer 7. D
8. B
D 9. B
B 10. A
D D Module 3
What's More
Activity 3
Depend on
the students
answer
What's More What's More What can What can What can
Activity 2 Activity 1 I do? I do? I do?
Depend on 1. D
the students 2. J Activity 1 Activity 2 Activity 3
answer 3. C
Depends Depends Depends
4. A
5. F on the on the on the
6. E students students students
7. G answer answer answer
8. I
9. H
10. B
Module 2
 48
1. B
2. C
3. B
4. B
5. C
6. C
7. C
8. D
9. A
10. B
Assessment
What’s More What’s More What’s More What Can I What Can I
Activity 2 Do Do
Activity 1
Activity 3 1. F Activity 1 Activity 3
1. B
2. B 2. D Depends on 1. E
Depend on 3. I 3. B the students 2. A
the students 4. A
answer 4. B answer 3. F
5. H 5. A 4. C
6. C 6. C 5. B
7. J 7. B Activity 2 6. D
8. E
8. D
9. D Depends on
9. C
10. G the students
10. C
answer
MODULE 5
What's More What's More What can
Activity 2 Activity 1 I do ?
-depends on 1. D
Depends
the students 2. C on the
answer 3. A students
Activity 3 4. B answer
-depends on 5. C
the students 6. C
answer 7. D
8. D
9. D
10. C
Module 4
References:
▪ Kotler, P. & Armstrong, G .(2015). Principles of Marketing, Fourth Edition
(pp.122-157)
▪ Kotler , P. & Saunders , J. (1999), Principles of Marketing, Second European
Edition (pp.120-135)
▪ Anderson, Paul and Art Rosenberg. The Executive’s Guide to Customer
Relationship Management. Doyle Publishing Company, Houston, 2000.
▪ CGI Group Inc. White Paper, Building Competitive Advantages through ,
Customer Relationship Management, January 2001.
▪ CRM at the Speed of Light: Capturing and Keeping Customers in Internet Real
Time, Paul Greenberg
▪ A.B. Principles of Marketing. Reprint, Philippines: Rex Book Store,2017.
▪ https://www.yieldify.com/blog/types-of-market-segmentation/
▪ https://www.yieldify.com/blog/types-of-market-segmentation/
▪ Torres, O. and So , R. (2019), Principles of Marketing , Published and printed
by Vibal Group, Inc. (pp. 56-68)

49
 DIVISION OF NAVOTAS CITY

Principles of
Marketing
(Quarter 2)
First Semester

S.Y. 2020-2021
NAVOTAS CITY PHILIPPINES
Principles of Marketing for Senior High School
Alternative Delivery Mode
Quarter 2
Second Edition, 2021

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of
the Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
an agency or office may, among other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this module are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from their
respective copyright owners. The publisher and authors do not represent nor claim ownership
over them.

Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writer: John E. Cordero

Editors: Belinda I. Salazar
Reviewers: : Liza D. Escoto
Illustrator:
Layout Artist: John E. Cordero
Management Team: Alejandro G. Ibañez, OIC- Schools Division Superintendent
Isabelle S. Sibayan, OIC- Asst. Schools Division Superintendent
Loida O. Balasa, Chief, Curriculum Implementation Division
Grace R. Nieves, EPS In Charge of LRMS
Lorena J. Mutas, ADM Coordinator
Vergel Junior C. Eusebio, PDO II LRMS

Inilimbag sa Pilipinas ng ________________________

Department of Education – Navotas City

Office Address: BES Compound M. Naval St. Sipac-Almacen Navotas City
____________________________________________
Telefax: 02-8332-77-64
____________________________________________
E-mail Address: [email protected]
____________________________________________
 Table of Contents

What I Know ................................................................................53

Module 1......................................................................................54

Module 2......................................................................................61

Module 3......................................................................................69

Module 4......................................................................................81

Assessment ..................................................................................92

Answer Key ..................................................................................93

References ...................................................................................96
Directions: Read each statement carefully. Choose the letter which corresponds
to the correct answer and write it in a separate sheet of paper.
1. What is the first step in the 4Ps of marketing?
a. Determine the product c. Determine the place
b. Determine the price d. Determine the promotion
2. What is another name for the 4Ps of marketing?
a. The Marketing Mix c. The Advertising Mix
b. Social Media d. The Production Strategy
3. How does a company make a product innovative?
a. Develop different features
b. Create the same product as a competitor with a different name
c. Market the product
d. A good price points
4. Which of the following is not a category into which promotional activities are
classified?
a. Personal selling c. Point-of-purchase communications
b. Public relations d. Yield management
5. It can be a meal or some other tangible item that a hotel or restaurant provides
to its guest. It can also be an intangible service or a hotel or restaurant’s concept.
a. Price c. Promotion
b. Product d. Place
6. All activities involved in selling goods and services directly to the final consumer
for their personal non-business use is called________.
A. Retailing C. Supermarkets
B. Wholesaling D. Category killer
7. Off price retailer that sells a limited selection of brand name grocery items,
appliances, clothing at deep discount to members who pay annual membership
fee.
A. Off price retailer C. Warehouse club
B. Factory outlet D. Chain store
8. Off price retailing operation that is owned and operated by a manufacturer and
that normally carries the manufacturer's surplus, discontinued or irregular
goods. This statement belongs to ________.
A. Price retailer C. Warehouse club
B. Factory outlet D. Chain store
9. A wholesaler that does not take title to the goods and whose function is to bring
buyers and sellers together and assist in negotiations.
A. Merchant wholesaler C. Agent
B. Broker D. E-Tailer
10. A retail store that carries a narrow product line with deep assortment within that
line is called __________.
A. Specialty store C. Supermarket
B. Department store D. Convenience store

53
 MODULE1

This module was designed and written with you in mind. It is here to help you master
the developing marketing mix. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary
level of students. The lessons are arranged to follow the standard sequence of the
course. But the order in which you read them can be changed to correspond with
the textbook you are now using.

The module is focus only in one topic:

● Lesson 1 – The Four (4) P’s of Marketing

Learning Competencies:

✔ design a new product or service, decide types of pricing approach, and choose
distribution methods and promotion tools that respond to market trends
(ABM_PM11-IIa-e-19)
✔ identify and describe the factors to consider when setting prices and new
product pricing and its general pricing approaches (ABM_PM11-IIa-e-17)

After going through this module, you are expected to:

✔ Distinguish between the three major components of an offering—product,

price, and service.
✔ Explain, from both a product-dominant and a service-dominant approach,
the mix of components that compose different types of offerings.
✔ Distinguish between technology platforms and product lines.

54
 Lesson The Four (4) P’s of Marketing
1

Who invented the 4 Ps of marketing?

It was Neil Borden who first popularized the idea of the marketing mix in the
1950s. Borden defined a marketing executive as somebody who fuses ingredients to
make the right recipe for marketing a product. Later, it was Jerome McCarthy who
sublimated the concept of 4Ps of marketing from Borden's ideas of a marketing
mix.

McCarthy had highlighted that the 4Ps viz. Product, price, promotion, and place
are the initial control elements that are available to shape a marketing plan. He also
articulated the changing of the balances of these variables in long term perspective
with the product remaining the hardest to change.

What factors determine the marketing mix?

Any company which intends to find the right pitch for their product needs to consider
an array of factors before setting out to do it. The marketing mix for any product
will be determined by two factors viz.

Internal Factors

It includes the factors which lie within the organization or is concerned with the
inner atmosphere of the firm. The internal factors are primarily:

● Nature of products
● Product stages in its overall life cycle
● Availability of funds
● Company objectives

External Factors

External Factors concerned with the factors outside the organization. They include
the following aspects:

● Degree of competition
● Efficiency of channel
● The buying behavior of a consumer
● Control from the government side

55
Importance of 4Ps Marketing

▪ It creates synergy
The four Ps of Marketing: Product, Price, Promotion, Place when blended
properly creates coordination that gives a right pitch to the product. It follows the
principle:” the whole is greater than the sum of its parts.”
▪ Brand loyalty and value
Since the approach focuses on the needs of the customers and their
satisfaction the product consequently earns consumer loyalty and esteem.
▪ Serves as a link
The product features, pricing, and place strives to factor in the expectations of
a customer. The promotional aspects give to the customer what your company
proposes to offer and thus position the products better. Thus, a link is being forged
between the consumer and the organization.
▪ Enables proper integration
The designing of the 4 Ps needs critical thinking and perceptiveness. If they are
merged correctly, then your product will find a unique space in the customer’s mind.
▪ Guides decision
The interdependence and the overarching nature of one element over another
guide you in decision making. For example: if your product pricing is high, then in
your promotional activity, you will have to target well off customers, and your product
design must be quality based. The channels of distribution and location etc. will also
be guided by this decision.
▪ Higher sales volume
The result of all the efforts is higher customer satisfaction and greater market
share which is compounded by an increase in the sale of the products.

Place

Intermediate provides access and convenience for the products consumers. The
following are other key functions of intermediaries:
● Information collection and dissemination – marketing intermediaries,
particularly retailers, provide product manufactures with viral marketing
reach information on consumer profiles and product movements.
● Product storage and movement – manufactures warehousing facilities are
relieved of large amounts of merchandise.
● Operational Financing – distribution channels that take care of storage
and transport assume the costs of these activities.
● Product promotion – intermediates, particularly retailers, help in the
development and implementation of communication programs to enhance
product sales.
● Risk taking – most marketing intermediates eventually pay for merchandise
they carry. They assume financial risk if the product does not sell as
expected.

56
Promotion

Promotion as used in the 4 P’s is a general term which includes the following:
advertising, promotions, personal selling, publicity, and public relations.
Advertising pertains to any paid and public presentation of products, services,
or ideas, by an identified sponsor through medium and defined as any paid and
public presentation of products, services. Or ideas, by an identified sponsor
through medium. The most common objectives of advertising are:
● To build awareness . To persuade
● To inform . To remind
Brand awareness is the extent to which consumers are familiar with the
distinctive qualities or image of a brand of goods or services. Achieving a high
level of awareness provides the brand the following advantages.
● Learning advantages – which heavily influence the formation and strength
of associations that comprise the brand's image.
● Consideration advantages – which increase the likelihood that the brand
will be included in the consumer's consideration set, or the set of brands
that receive serious consideration for purchase.
● Choice advantages – which can affect choices among brands included in
the consideration set.

Price

The Meaning of Price

Price is the money, good, or service exchanged for the ownership or use of a
good or service. When one hundred pesos in paid for a sack of corn, that amount is
the price of the corn. When a boy is asked to carry a sack of corn from the parking
area to the store and is paid a kilo of corn, the price of the service is one kilo of corn.
When a bundle of sweet potato tops is exchanged for a bundle of string beans,
each is the price of the other.

Pricing Defined

Pricing may be defined as those activities involved in the determination of the

price at which products that will be offered for sale considering the various objectives
of the firm.

Pricing Objectives
Before setting prices, the firm’s pricing objectives must first be determined. Pricing
objectives may consist of any of the following:

1. Profit-oriented objectives
2. Sales-oriented objectives
3. Status quo-oriented objectives

57
Profit-Oriented Objectives

Profit-oriented objectives call for profit generation. This may either be:

1. To achieve the target return on investment or on net sales; or

2. To maximize profit

The Target Return Objective. This refers to the pricing objective requiring a certain
level of profit. Most often, it is stated in terms of percentage of sales or on capital
investment. An example is the 21 percent return on investment required by a
companies, or the 2 percent return on sales required by another firm.

The Profit Maximization Objective. This refers to the pricing objective of seeking
as much profit is possible. This may be achieved by increasing the quantity sold or
increasing the profit margin. However, even if the firm succeeds in the attempt, it
will not be for long because the situation will invite competition and will ultimately
result to a decrease in profits in the long run.

Activity 1. Read each statement carefully. Choose the letter which corresponds to
the correct answer and write it in a separate sheet of paper.
1. This element of market mix refers to the tangible good or the intangible service
that the enterprise offers to its customers to satisfy their needs and to produce
their expected results.
a. Positioning c. Place
b. Product d. Packaging
2. It is the way the customers perceive the enterprise and its products or services in
their minds.
a. Packaging c. Positioning
b. Price d. Product
3. To create a customer awareness, to arouse customer interest, to educate
customers as they evaluate their buying choices, and to close the sale and deliver
the products are attributed to this marketing mix.
a. Product c. Price
b. People d. Positioning
4. The following are marketing except _______.
a. Promotion c. Place
b. Price d. Profit

58
5. Which of the following descriptions provides the best definition of the marketing
mix?
a. The way products are arranged in a retail store to maximize sales
b. The way a business combines the main marketing elements to sell products
that meet the needs and wants of customers
c. The way a business distributes its products through retailers and
wholesalers
d. The way products are priced and packaged
6. Which of the 4 P's of the marketing mix concerns the various outlets and channels
a business uses to distribute its products?
a. Product c. Place
b. Price d. Advertising
7. _____________ _ involves direct communication between sellers and potential
customers.
a. Advertising c. Sales promotion
b. Public relations d. Product selling
8. The following statements are sales promotion EXCEPT________.
a. Loyalty program c. Samples
b. TV commercial d. Coupons
9. It serves to contain and protect, and sometimes, identify and promote the
product. This statement belongs to __________.
a. Packing c. Pricing
b. Labeling d. All of the above
10. __________is a display of information about a product on its container,
packaging, or on the product itself.
a. Pricing c. Labeling
b. Packing d.Promotion

Activity 2. Fill in the blanks by choosing the appropriate word or group of words in
the box. Write the correct answer on the space provided before the number.
Specialty dealer Reputation
Wholesalers Wholesale Channel
Sales strength

____________1. This refers to the sales capacity of the prospective distributor and is
indicated by the quality, the actual number, and the technical competence of the
salesperson.
____________2. This is a very important requirement in determining the possibility of
profitable relationship.
____________3. Is the type of channel where the wholesaler and the retailer provide
linkage between the producer and the consumer.
____________4. It is a type of distributorship, that buy the products in bulk, typically
taking ownership and therefore transferring the risks involved with ownership into
their hands.

59
____________5. These are distributors that specialize in either products categories or
in the specialized needs of very distinct target markets.

Activity 1. Select an item that you frequently use: your mobile phone, ballpen, or
pencil, wristwatch, hairbrush, alarm clock, eyeglasses, etc. Study the product and
its packing. Consider also how you use the product. Identify and describe in detail
how you would innovate this product to satisfy your needs and wants better.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Activity 2. Many products are now being sold online because of the global pandemic
(COVID-19). Name three products that you believe should never be bought online
but in a real store. Explain why.
A.
Explanation
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
B.

Explanation
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

C.
Explanation
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

60
Activity 3. Give an example of an effective TV ad. From what you remember, what
made it memorable for you?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

MODULE 2

This module was designed and written with you in mind. It is here to help you
master the developing marketing mix. The scope of this module permits it to be used
in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

The module is focus only in one topic:

● Lesson 1 – Managing Retailing, Wholesaling and Pricing Strategies

Learning Competencies:

✔ discuss the structure of distribution channels, its functions, and the nature
of supply chain management (ABM_PM11-IIa-e-18)
✔ define and identify relevant promotional tools, namely, advertising, sales
promotion, personal selling, public relations, and direct marketing to create
awareness and persuade the target market to buy the product or patronize
the service Week (ABM_PM11-IIa-e-19)

After going through this module, you are expected to:

✔ Distinguish between the three major components of an offering—product,

price, and service.
✔ Explain, from both a product-dominant and a service-dominant approach,
the mix of components that compose different types of offerings.
✔ Distinguish between technology platforms and product lines.

61
 Managing Retailing, Wholesaling
Lesson
and Pricing Strategies
2

Retailing includes all the activities involved in selling goods or services directly to
the final consumer for their personal, non-business use. Retailers are businesses
whose sales come primarily from retailing. Retailing connects brands to consumers
in the final steps (“last mile” of buying process). Shopper marketing means using in-
store promotions and advertising to extend brand equity to the “last mile” and
encourage favorable hi-store purchase decisions. There are different types of
retailers. Self-service retailers serve customers who are willing to perform part of the
service. Limited-service retailers provide some assistance in the service process,
while full-service retailers assist customers in every step of the buying process.

Wholesaling and Retailing

1. Wholesaling- is the sale of goods for resale. Wholesaling is an important product

distribution function. Without wholesalers, product manufacturers would have
to deliver goods directly to retailers.
2. Retailing- Is defined as the sale of goods/services to the final customer for his
personal consumption. Typical examples of retailing establishments are drug
stores, sari-sari stores, restaurants, movie houses, convenience stores and
supermarkets.

Retailers can also be classified by the length and breadth of their product line.

1. Specialty store - a retail store that carries a narrow product line with a deep
assortment within that line.
2. Department store - a retail organization that carries a wide variety of product
lines. Each line is operated as a separate department managed by specialist
buyers or merchandisers.
3. Supermarkets are large, low-cost, low-margin, high-volume and self-service
stores that carry a wide variety of grocery and household products.

62
 4. Convenience stores are Mall stores, located near residential areas and that
carry a limited line of high-turnover convenience goods.
5. Superstore- a store much larger than a regular supermarket that offers a
large assortment of routinely purchased food products, non-food items and
services.
6. Category killer- a giant specialty store that carries a very deep assortment of
a line and is staffed by knowledgeable employees.
7. Service retailers- a retailer whose product line is a service.
Wholesaling

Wholesaling includes all the activities involved in selling goods and services to
those buying for resale or business use. A wholesaler is a firm engaged primarily in
wholesaling activities. Wholesalers add value by performing one or multiple of the
following channel functions:

▪ Selling and promoting and thereby reaching many small customers.

▪ Buying an assortment of buildings. Bulk breaking by buying in large
quantities.
▪ Warehousing and holding stock.
▪ Transportation.
▪ Financing of customers and suppliers.
▪ Risk bearing.
▪ Providing market information.
▪ The management of services and giving advice.

Wholesalers fall into three major groups.

1. Merchant wholesalers are independently owned wholesale businesses that

take title to the merchandise it handles. They include full-service wholesalers,
who provide a full set of services and limited-service wholesalers who offer less
services to their customers. Industrial distributors sell to manufacturers, while
wholesale merchants sell primarily to retailers. Cash-and-carry wholesalers
carry a limited line of fast-moving goods. Drop shippers never carry stock but
select manufacturers who ship the product upon order.
2. Brokers and agents. A broker is a wholesaler who does not take title to goods
and whose function is to bring buyers and sellers together and assist in
negotiation. An agent is a wholesaler who represents buyers or sellers on a
relatively permanent basis, performs only a few functions and does not take
title to goods. Selling agents have contractual authority to sell a manufacturer’s
entire output. Purchasing agents often have long-term relationships with
buyers and make purchases for them.
3. Manufacturers’ sales branches and offices. wholesaling by seller or buyers
themselves rather than through independent wholesalers.

63
Pricing Strategies

▪ Markup pricing – is a pricing strategy that allows the seller a fixed markup
every time the product is sold.
▪ Odd pricing or psychological pricing – a pricing method premised on the
theory that consumers will perceive products with odd price ending as lower
in price than they are.
▪ Loss leader pricing – a pricing strategy frequently utilized by supermarkets.
▪ Price lining – a pricing strategy designed to simplify a consumer buying
decision.
▪ Prestige pricing – a pricing strategy that disregards the unit cost of a product
or service.
▪ Marginal pricing – where business organizations price its product at a range
below its unit costs but higher than its unit variable cost.
▪ Predatory pricing – a pricing strategy is where the firm prices its product
lower than unit variable cost, initially resulting in short term losses.
▪ Going rate pricing – a pricing strategy where a company price its product at
the same level as or very close to its competitors’ prices.

▪ Promotional pricing - a pricing strategy involving a temporary reduction in

the selling price of a product and service to indicate induce trial or to
encourage repeat purchase. Almost all companies, especially those involved
in fast-moving consumer goods (FMCGs), implement promotional pricing at
one time or another.

Price reductions take the form of any of the following:

a. Sale- this is the form where the prices of the products of the firm are
reduced for a limited time.
b. Special event pricing- Under this form, special prices in certain seasons
are made to draw in more customers.
c. Cash rebates- these are offered to customers to encourage them to make
purchases within a specified time.
d. Low-interest financing- this involves low-interest financing to customers.
e. Warranties and service contracts- these involves adding free warranty offer
or service contract.

When new products are introduced into the market, one of the two following pricing
strategies can be used:

1. Price skimming- where the product’s selling price is way above its unit cost.
This allows the company to recover its research and development costs and
expenses. This is usually accompanied by intense expensive advertising and
promotional campaigns.
2. Penetration pricing- a pricing strategy where the new products is priced
only marginally above its unit cost. The objective of this strategy is to

64
 capture a larger part of the market at an early stage by making the product
affordable to the greatest number of people.

Pricing Under Various Market Conditions

Knowing the price of the competitor’s products is important but anticipating his
pricing behavior may even be more important. The kinds of competitive situations
are the following:

a. Pure Monopoly.
This is a competitive situation where there is only one seller in a market. The
monopolist enjoys a very high degree of control over the price of his products.
b. Oligopoly
Only a few firms compete in the sale of a commodity.
c. Pure Competition
There are great number of buyers and sellers in the market. Products sold are
regarded as homogenous and the buyers will be motivated to switch from one
seller to another because of price.
d. Oligopsony
Only a few buyers compete in the purchase of a commodity. The sellers are
helpless in controlling the prices of their products.
e. Monopsony
It is characterized by the presence of only one buyer. The monopolist has a very
high degree of control over the price of the commodity he is buying.

Below the Computation of Markup Price of a Product

𝐹𝐶
UC =VC/U +
𝑈𝑆

Where:
UC = Unit Cost
VC/U = Variable cost per unit
FC = Fixed cost
US = Unit sales
Given:
VC/U = Php10
FC = Php300,000
US = 50,000 units
DMU (Desired Markup )

𝐹𝐶 𝑈𝐶
UC = VC/U + MUP =
𝑈𝑆 (1−𝐷𝑀𝑈)
𝑃ℎ𝑝300,000 𝑃ℎ𝑝16
= Php10 + 50,000
=(1−0.20)

65
 = Php16 = Php20

Markup price (MUP) is Php20

Below is the products target return price:

𝐷𝑅 𝑥 𝐼𝐶
TRP = UC +
𝑈𝑆

Where :

TRP = target return price

UC = Unit cost
DR = desired return
IC = invested capital
US = unit sales

Given:
UC = Ph16
𝐷𝑅 𝑥 𝐼𝐶 0.25 𝑥 𝑃ℎ𝑝1,000,000
DR TRP= 25%= UC + 𝑈𝑆 = 16 + = 21
IC = Php1,000,000 50,000
US = 50,000 units

Target return price (TRP) is Php 21.

Activity 1. Read each statement carefully. Choose the letter which corresponds to
the correct answer and write it in a separate sheet of paper.
1. Where a business organization prices its product at range below its unit cost
but higher than its unit’s variable cost. This statement belongs to _______.
A. Predatory pricing C. Promotional pricing
B. Going rate pricing D. Marginal pricing
2. A pricing method premised on the theory that consumers will perceive products
with odd price endings as lower in price than they are_____________.
A. Loss leader pricing C. Price lining
B. Odd pricing or psychological D. Penetration pricing

66
3. ___________is the network of all the individuals, organizations, resources,
activities, and technology involved in the creation and sale of a product.
A. Supply chain C. Exclusive distribution
B. Intensive distribution D. Selective distribution
4. Positioned between exclusive and intensive distribution, this type of product
distribution involves the use of more than one but not as many dealers as in
intensive distribution.
A. Exclusive distribution C. Product promotion
B. Selective distribution D. Operational financing
5. The following are the steps in determining the pricing strategy except ______.
A. Select a basic approach to pricing
B. Determine your pricing policy
C. Use a random approach
D. Set a price based on the stage of the product life cycle
6. When setting the price for a good, a service, or an idea, which of the following is
not a factor to consider?
A. Costs C. Competition
B. Supply and demand D. Location
7. Which pricing method is used in the introduction stage of the product life cycle?
This statement belongs to _____________.
A. Penetration Pricing C. Cost Benefit Analysis
B. Unit Pricing D. All of the above
8. Involves charging a high price to recover costs and maximize profit as quickly as
possible. This is called _________.
A. Penetration pricing C. Price skimming
B. Unit pricing D. Price lining
9. This is a pricing technique in which higher-than-average prices are used to
suggest status and prestige to the customer.
A. Discount pricing C. Promotional pricing
B. Prestige pricing D. Loss leader pricing
10. Which cost changes depending on the number of units sold?
A. Variable Costs C. Unit Pricing
B. Fixed Costs D. ROI

Activity 2. Fill in the blanks to complete the statement. Choose answers from the
concepts inside the box.
Market skimming location cost-based approach
Oligopoly allowances Pure Monopoly

1. The primary consideration for geographical pricing is the _______________.

2. Under the _____ pricing approach, the total costs are calculated, and a margin of
profit is added.
3. Reductions from list prices to buyers for performing some activity is
called____________.
4. The _____ pricing strategy requires the setting of prices at the upper limit of the
realistic range of choice.

67
5. In an ______ kind of competition, only a few firms compete in the sale of a
commodity.

Activity 1.

Directions: Solve the following problems. Show your concrete solution. Write your
answer in the separate sheet.

𝐹𝐶
1. UC =VC/U +
𝑈𝑆

Where :
TRP = target return price
UC = Unit cost
DR = desired return
IC = invested capital
US = unit sales

Given:
UC = Ph25
DR = 30%
IC = Php2,000,000
US = 20,000 units

Find the markup price of a product.

𝐷𝑅 𝑥 𝐼𝐶
2. TRP = UC +
𝑈𝑆
Where:
TRP = target return price
UC = Unit cost
DR = desired return
IC = invested capital
US = unit sales
Given:
UC = Ph20
DR = 30%
Find
IC the= Target Return Price (TRP).
Php5,000,000
US = 60,000 units

68
 Answer:

Activity 2. Explain why fine dining establishments must have very high markups
over the cost of their foods. Is it possible to be a low-priced fine dining
establishment?

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

MODULE 3

This module was designed and written with you in mind. It is here to help you master
the developing marketing mix. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary
level of students. The lessons are arranged to follow the standard sequence of the
course. But the order in which you read them can be changed to correspond with
the textbook you are now using.

The module is focus only in one topic:

● Lesson 1 – The Marketing Process, Analyzing Marketing and Designing

Marketing Strategies

69
Learning Competencies:

✔ explain the relationship between market analysis, planning, implementation,

and control analyze the company’s situation, markets, and environment (the
marketing audit and SWOT analysis (ABM_PM11-IIf-20/ ABM_PM11-IIf-21)
✔ integrate the marketing concepts and techniques learned by preparing a
marketing plan (ABM_PM11-IIg-j-24)

After going through this module, you are expected to:

✔ Understand the relative importance of each step in the new offering

development process and the functions within each step.
✔ Explain the product life cycle and the objectives and strategies for each stage.
✔ Distinguish between the various forms of testing and analysis that take place
before a new offering is brought to the market.

70
Lesson The Marketing Process, Analyzing
3 Marketing and Designing
Marketing Strategies
Marketing process is a process that involves the customer’s satisfaction
towards their requirements created in terms of value is called the marketing process.
It is a string of actions and their reactions performed by the companies and the
customers to satisfy the customers.

A marketing analysis is a study of the dynamism of the market. It is the

attractiveness of a special market in a specific industry. Marketing analysis is
basically a business plan that presents information regarding the market in which
you are operating in. It deals with various factors and should not be confused with
market analysis.

Steps of Marketing Process

The first step is to analyze the condition to identify the problems or needs of the
customer. Then a basic strategy is made upon those identifications to propose a
value. As a result of this step, a tactical decision is made to handle the value. After
that, a plan is executed and lastly, the results are gathered.

Here are the five major steps of the marketing process:

1. Understand the customer needs

Understanding is the key to a successful business. To understand the needs

of the customer, you must have an insight into a few things. You should:

● Understand the local area

● Understand the country you are targeting
● Know the interest of your customers
● Know how much they can spend on that

71
 You must also keep in mind the budget of both company and customer. You
cannot just bring out a product with extremely high prices and expect your
customers to buy it. Keep variations in your products and their prices

2. Develop a basic strategy

To start a business, you must know:

● What is trending in your area?

● What do they really want to buy?
● Who is your targeted customer?
● What is the level of need for that product?

To get the answers to these queries, you may perform a survey in that area. You
cannot satisfy everyone, there is NO such way. But you can satisfy a great number
of people if they have the same perception towards a product.

3. Decision Making

Once you know who you are targeting, now you can make a marketing plan. At this
point, you must decide by drafting:

● Budget
● Product specifications
● Product development (in future)
● Ways and mediums for promoting your product
● The expected date for launching the product

When you draft everything, now you exactly know what you must do. This is
important because elaborated tactical decisions are made for the controllable
parameters of the marketing mix. As a result, this will give you a clear view of what
you want to develop. Moreover, delivering superior quality, what your customer
wants is worth striving for mostly in saturated markets, which are successfully
developed for a while now.

4. Execute a plan

Execute your plan now. You have a draft of your plan, now work on it. To execute
the best plan, focus on three things:

● Sharpen your interest

● Create your competence
● Light up your passion

However, you need to keep your plans simple and easy to execute. Identify what you
are doing and focus on bringing the best out of it. Execution literally depends upon
the process of development. Trust your talents, be confident about what you want to
develop.

72
5. Deliver the results

Your product is ready to be launched. Now you can successfully deliver it in the
market and wait for the feedback. Do not expect to have 100% positive reviews about
your product. Let the critics tell you what you are lacking. Also, let yourself get
excited by the positive reviews. Once you deliver the results in the market you should
be prepared for every type of response. But do not get disheartened by the negative
reviews, they can also help you improve your product in the future.

The Marketing processes

Analyzing Designing
Selecting target
marketing marketing
markets
opportunity strategies

Organizing,
Planning marketing implementing , and
programs controlling the
marketing effort

Figure 1. Marketing process

What is Market Opportunity Analysis?

A tool to identify and access the attractiveness of a business opportunity. It is
a part of the business planning or strategy processes wherein before undertaking a
new product or service, you analyze the market for it to determine probable profit
and revenue from it. One of the most important factors considered and analyzed in
market opportunity analysis is the forecasted demand for the product or the service.

Five steps that can be followed to analyze market opportunity analysis

1. Identify the business environmental forces – The factors to consider while

analyzing the business environmental factors are - Economic conditions and
trends, Legal and regulatory situations and trends, Technological positioning,
and trends (state of the art; related R&D), Relevant social changes and Natural
environment.

73
2. Describe the industry and its outlook – The factors to be considered while
performing industry analysis are - Type of industry, Size -now and in 3-5 years,
Types of marketing practices, Major trends, and Implications for opportunity.
3. Analyze the key competitors – The factors considered here are - Product
description, Market positioning (relative strength and weaknesses, as seen by
customers), Market practices: channels, pricing, promotion, service, Estimated
market share (if relevant) and Reactions to competition.
4. Create a target market profile – The factors to be considered are - Levels:
generic needs, product type, specific brands, End-user focus; also channel
members, Targeted customer profiles, Who are my potential customers, What are
they like as consumers/businesspeople, How do they decide to buy / not buy ,
Importance of different product attributes and What outside influences affect
buying decisions.
5. Set Sales Projections – As many formal or intuitive approaches as possible for
determining this should be used and then the results obtained should be
compared and then a decision should be taken on go or no go for the
product/service in question.

Designing Marketing Strategies

What is a Marketing Strategy?
A marketing strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of the products or services the business
provides. A marketing strategy contains the company’s value proposition, key brand
messaging, data on target customer demographics, and other high-level elements.

Marketing Strategies vs. Marketing Plans

The marketing strategy informs the marketing plan, which is a document that
details the specific types of marketing activities a company conducts and contains
timetables for rolling out various marketing initiatives.

Marketing strategies should ideally have longer lifespans than individual

marketing plans because they contain value propositions and other key elements of
a company’s brand, which generally hold consistent over the long haul. In other
words, marketing strategies cover big-picture messaging, while marketing plans
delineate the logistical details of specific campaigns.

74
 Market
Analysis
Review and Competitive
Reassess

Document the Customer

marketing analysis
plan

Define Value
Marketing Proposition
Mix Definition

Define Set
Markting Marketing
Strategies Goals

Figure 2. Designing Marketing Strategies

Activity 1. Read each statement carefully. Choose the letter which corresponds to
the correct answer and write it in a separate sheet of paper.
1. Primary producers such as wheat farmers, construct dams to influence their
businesses.
A. Internal environment C. Micro-environment
B. External environment D. Macro-environment
2. Which of the following would not be a part of an organizations’ macro-
environment?
A. Competitors C. Customers
B. Both suppliers and retailers D. The economy

3. Working for the Aldub supermarket chain, you are very aware of the activities
of your company's competitors; Hyper-Panda and Fisher Mall and find that you
frequently make changes to your businesses in response to actions they have
taken. You also notice that they react when you make changes to your business
offering. This competition is occurring within the
A. Internal environment C The competitive environment.
B. Micro-environment D. The macro-environment

75
 4. To overcome legal regulations, an industry body may attempt to influence which
aspect of its marketing environment?
A. Sociocultural C. Competitive
B. Political D. Economic
5. The influences in a society and/or its culture/s that affect people's attitudes,
beliefs, behaviors, preferences, customers, and lifestyles are known as
A. Demographic forces C. Sociocultural forces
B. Technological forces D. Legal forces
6. The global financial crisis was an example of what type of macro-environmental
force.
A. Political C. Competitive
B. Sociocultural D. Economic
7. A devaluation of the Australian dollar makes exports cheaper and imports more
expensive. Within the macro-environment, this is known as a__________.
A. Political forces C. Sociocultural force
B. Economic force D. Technological force
8. Marketing metrics are measures that are used to___________.
A. Assess the micro-environment
B. Assess the macro-environment
C. Assess marketing performance
D. Assess marketing planning
9. A new housing estate with landscaping covenants opens in the vicinity of a
garden nursery business. In term of a SWOT analysis, this would represent
A. A strength C. A threat
B. An opportunity D. A weakness
10. As the recently appointed marketing manager for a growing fashion brand, you
spend your first few months in the job understanding the business, your
competitors’ businesses, and the marketing environment. The comprehensive
understanding you are engaged in is known as
A. Marketing planning C. The competitive analysis
B. Situational analysis D. Company analysis

Activity 2. Read and analyze the selection. Answer the question that follows.
The rapidly evolving threat around the COVID-19 virus, commonly referred to
as coronavirus, is impacting the business and investor community across the world.
The global and interconnected nature of today’s business environment poses serious
risk of disruption of global supply chains that can result in significant loss of revenue
and adversely impact global economies. The impact on the global economy may
increase depending on the extent of geographic spread of the virus. However, the
pandemic has already negatively impacted the global economy.

Questions:

1. What are the negative impacts of COVID-19 virus to the following?

a. Students
b. Community
c. Economy (local, national, and global)

76
 ______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2. Cite a business that is making an out-of the-box strategic and marketing
planning in this pandemic. Explain briefly. Use separate sheet of paper for
your answer.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________

Self - Learning Assessment

Directions: Read and Answer the following task in a separate sheet of paper.

Activity 1. Identify two new consumer products sold in a grocery store or by a mass
merchandiser such as Puregold and FisherMall Supermarket. Explain the strategies
used to introduce each of the products and which strategy you feel will be most
successful.

__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________

Activity 2. Identify three television commercials designed to persuade buyers to view

the products being advertised as shopping items rather than convenience items.
What is similar about the strategies employed in the commercials? Do you think the
commercials are successful? Why or why not?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

77
Activity 3. Read and analyze this case analysis. Please try to fill out the chart. Write
it in a separate sheet of paper.
Caliber Technology Inc.
Shaving is a ritual for Filipino men. It is essential part of daily grooming.
Filipino men perform this activity every morning before leaving for work or school.
They are also expected to shave before attending a special event or an important
occasion. The implements used for shaving have evolved from a simple razor used in
barber shop to safety disposable razors, and advanced electric razors. Even if one
intends to keep a mustache, a sport a goatee, or grow beard, shaving is basic and
necessary for personal hygiene.
In the market, the current leader for electric shavers is Vectro. It is
battery operated, portable, weighs only 7 oz. It maintains a strong presence in the
market because of its portability and affordability. It claims to give users a close and
smooth shave. According to the manufacturer, Belloma Industries, Vectro has 9
spinning blades providing close and maximum removal of facial hair. Vectro is
distributed in almost all department stores, specialty men’s outlets, and drug stores.
Although it rarely engages in trade and brand promotions, it maintains consistent
presence through advertisements on television, billboards, and several popular
men’s magazines.
Another strong participant in the industry is Scope Ishigawa Ltd. Scope
is the market leader in japan, its country origin. As a brand, Scope is well-known in
the world for its wide selection of home appliance and car audio systems. Scope’s
participation in the electric shavers’ industry through Matsumoto shaver.
Matsumoto has no distinctive technical advantage over other electric shavers in the
market. However, the shaver has an ergonomic design, making it comfortable for
handling. It can also be operated using conventional batteries, as well as charging it
through a wall outlet. Currently, the company has a network of 312 Scope Electronic
Emporium Outlets, where all Scope appliances are displayed and sold. It advertises
heavily on print media. Occasionally, Scope offers Matsumoto as a bundle or freebie
for every purchase of a television set or car audio system.
Bracken Bick is a company based in Germany. Its electric shaver, Brack,
is known as the “Rolls Royce” of electric shavers. Although priced at a high premium,
the shaver is built for durability. Brack shavers come with a 10-year warranty. The
product is heavy compared to Vectro. Distribution of Brack is limited to high-end
boutique stores. It advertises only in international news and lifestyle magazines.
In the Philippines, the market for electric shavers can be described as
“Filipino men, residing in major urban areas, aged 18-55, belonging to income
classes A, B and upper C, who desire a convenient, modern, and hassle-free shaving
experience.” Caliber Technology Inc. is a local manufacturer and marketer of
personal care implements. It was incorporated on January 7, 2013. The company
has a highly qualified research and development team.
In the Philippines, there is a growing teenage population. After studying
the local market for electric shavers, Caliber decided to develop a line of battery-

78
operated shaving equipment. It intends to introduce three models, each directed at
the high-end, middle, and the low-end market.
Cal-Basic is an affordable and functional model intended for the low-end
market. The model has no outstanding features. The intention is to convert those
who are using conventional safety razors to use electric razors. It is positioned as a
low-price alternative to other battery-operated shavers in the market. Cal-Pro is like
Cal-Basic. However, it boasts of a multi-rotating 9-blade system like Vectro. It also
has an easy-to-hold grip to prevent the unit from slipping and users from accidentally
dropping the unit. Cal-Pro is intended for the middle market.
For the high-end market, there is Cal-Ultra. Advertised as the “electric
shaver of the future”, Cal-Ultra has the following features: electric controlled springs
that retracts and adjust to the contours of the face, 264 microscopic blades that
provides the closest shave possible, luminous ergonomic handle, a miniature light
that highlights the areas to shaved, a built-in timer, an AM/FM radio noise-
cancelling earphones, etc. The body of the Cal-Ultra is made of titanium. The unit
comes in travel carrying case made of sheepskin. It is the lightest electric shaver in
the market and is supported by a 5-year warranty.
A comparison of the brands is as follows:

Brand Manufacturing Cost/Unit

Vectro P 402.70

Matsumoto P 614.85

Brack P 977.40

Cal-Basic P 411.07

Cal-Pro P 615.01

Cal-Ultra P1,327.43

Figure 4: Brand and Manufacturing Cost per Unit Comparisons

Brand Years in the Suggested 2014 Sales 2015 Sales

Philippine Retail Price
Market

Vectro 19 P 575.00 P265,009,456.00 P281,845,098.00

Matsumoto 22 P 799.00 P237,987,156.00 P258,013,587.00

Brack 21 P 1,350.00 P100,767,444.00 P103,540,761.00

Cal-Basic P 450.00

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Cal-Pro P 925.00

Cal-Ultra P 2,450.00

What do you think are the strength, weaknesses, opportunities, and threats for
Caliber’s Electric Razors?

Strengths Weaknesses

Opportunities Threats

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 MODULE 4

This module was designed and written with you in mind. It is here to help you master
the Workshop and Preparation of a Marketing plan. The scope of this module permits
it to be used in many different learning situations. The language used recognizes the
diverse vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

The module is focus only in one topic:

● Lesson 1 – Workshop and Preparation of a Marketing Plan

Learning Competencies:

✔ integrate the marketing concepts and techniques learned by preparing a

marketing plan
✔ present a mini-marketing plan, orally and in writing

After going through this module, you are expected to:

✔ Identify the people responsible for creating marketing plans in organizations.

✔ Write a marketing plan.

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 Lesson Workshop and Preparation of a
4 Marketing Plan
At this point, you are now ready to combine all the knowledge and learning
that you have acquired on the basic principles of marketing. There is no better way
to demonstrate this than through a mini-marketing plan that you will prepare on
your own. A marketing plan’s executive summary should include a summary of the
market, the product to be offered, the strategy behind the plan, and the budget, as
well as any other important information. In this section of the plan, the planner
describes the offering and a brief rationale for why the company should invest in it.
The market section of the plan should describe a firm’s customers, competitors, any
other organizations with which it will collaborate, and the climate of the market. The
strategy section details the tactics the organization will use to develop, market, and
sell the offering. When readers complete the strategy section, they should conclude
that the proposed strategy is the best one available. The budget section of the
marketing plan covers all the resources, such as new personnel, new equipment,
new locations, and so forth, needed to successfully launch the product, as well as
details about the product’s costs and sales forecasts.

Marketing vs. Marketing Concepts

1. Marketing is the promotion of business products or services to a target audience.

It is, in short, an action taken to bring attention to a business' offerings; they can
be physical goods for sale or services offered. Common examples of marketing at
work include television commercials, billboards on the side of the road, and
magazine advertisements. But not all businesses approach the need to market
their goods and services the same way. In fact, there are a few different
approaches to how marketing can be successful for an organization. These
approaches are called marketing concepts, or a philosophy that determines what
type of marketing tools are used by a company.
2. Marketing concepts are driven by a clear objective that considers cost efficiency,
social responsibilities, and effectiveness within a particular market.

The Five Marketing Concepts:

1. The Production Concept. The idea of production concept – “Consumers will favor
products that are available and highly affordable.” This concept is one of the
oldest Marketing management orientations that guide sellers. Companies

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 adopting this orientation run a major risk of focusing too narrowly on their
operations and losing sight of the real objective.
Examples of Production Concept
Following are the examples of production concept in marketing management
a. XYZ Motor Company – XYZ’s Model-T
The whole philosophy of the XYZ company was to perfect the production process
of XYZ’s Model-T. The initial cost of the XYZ’s Model-T vehicle was roundabout
800 US dollars, and it was high at the beginning of the 20th century. The
company followed the production concept and developed its assembly line and
other manufacturing processes. The price jumped from ₱ 70,000 to ₱55,000 and
₱55,000 was an affordable price to many Filipinos at that time.
b. Chinese Smartphone Brands. The best example of the production concept
nowadays. Their phones are available in almost every corner of the Asian
market. You can walk into any phone shop in Asia and can walk out with the
latest and greatest smartphones.

2. Product Concept. The product concept holds that consumers will favor products
that offer the most quality, performance, and innovative features. Here, Marketing
strategies are focused on making continuous product improvements. Product quality
and improvement are important parts of marketing strategies, sometimes the only
part. Targeting only on the company’s products could also lead to marketing myopia
(a stage when the companies are only busy in creating product quality and not
understanding the real needs of customers).

2. Selling Concept. The selling concept holds the idea- “consumers will not buy
enough of the firm’s products unless it undertakes a large-scale selling and
promotion effort.” Therefore, businesses and companies should carry out
promotional and marketing activities to accelerate their product in the market.
Customers have inner needs, and your job is to convert their inner needs into
buying your product through motivation and persuasion. The selling concept is
very useful for selling unsought goods i.e., insurance. Where you find your target
segment of the market first, and then you persuade them by explaining the
benefits of the product. The final goal is to sell many products, to increase the
net profit.
3. Marketing Concept. The marketing concept holds- “achieving organizational goals
depends on knowing the needs and wants of target markets and delivering the
desired satisfactions better than competitors do.” Here marketing management
takes a “customer first” approach. Under the marketing concept, customer focus
and value are the routes to achieve sales and profits. The marketing concept is a
customer-centered “sense and responds” philosophy. The job is not to find the
right customers for your product but to find your customers’ right products. The
marketing concept and the selling concepts are two extreme concepts and
different from each other. According to Philip Kotler, the marketing concept holds
that the key to achieving organizational goals consists of being more effective than
competitors in integrating marketing activities toward determining and satisfying
the needs and wants of target markets, or determining the needs and wants of

83
 target markets and delivering the desired satisfaction more effectively and
efficiently than competitors.
4. Societal Marketing Concept. The societal marketing concept holds “marketing
strategy should deliver value to customers in a way that maintains or improves
both the consumer’s and society’s well-being.” The purpose of the societal
marketing concept is also to satisfy the needs and requirements of customers
before making any profit. But the emphasis of this concept is to make the
company fulfill social responsibilities for a sustainable future in the long term.

Below is the brief outline of a mini-marketing plan:

I. Executive summary

A marketing plan starts with an executive summary. An executive summary

should provide all the information your company’s executives need to decide without
reading the rest of the plan. The summary should include a brief description of the
market, the product to be offered, the strategy behind the plan, and the budget. Any
other important information, such as how your competitors and channel partners
will respond to the actions your firm takes, should also be summarized. Because
most executives will be reading the plan to make budgeting decisions, the budgeting
information you include in the summary is very important.

II. Study Background

A. Brief history of the company

As the starting point of your papers, select the product brand.
B. Mission and vision
Research on the company’s mission and vision through the internet. These
statements. These statements give you vital information on its philosophy and
long term-direction.
C. Product/service offering
List down the company’s current product offerings, classifying them by type
and indicate their suggested retail prices (SRP).

III. Macroenvironmental Analysis

Assess each of the company’s six macroenvironments. Get the latest data
possible. A marketing plan of a product is a plan of action for the future and is
intended to be implemented in the coming year.

A. Economic
Latest economic data is projected. Inflation rate and peso-dollar exchange rates
are usually critical in determining future cost, price and consumer purchasing
power.

84
 B. Political -Legal
The political macro environment is assessed. Unless there is obvious political
instability, there is no need to project the political environment.
C. Sociocultural
Identify relevant sociocultural factors that may affect the manner of how the
selected brand will be marketed.
D. Demographic
Based on the target market, cite current and relevant figures that may affect
the marketability of the product.
E. Technological
Depending on the industry, identify relevant technological developments that
may favorably or unfavorably affect the chosen brand.
F. Natural
A thorough analysis of the natural macroenvironment is undertaken in this
section pollution, global warming, and ‘act of God,” among others.

IV. Opportunities and Threats

Enumerate the identified opportunities and threats from the

macroenvironmental analysis. Arrange them chronologically. Related them directly
to a specific macroenvironmental factor and justify why they are classified as
opportunities or threats.

V. Microenvironmental analysis
The six microenvironmental factors are assessed and evaluated. Because the
microenvironment is not expressed to change dramatically over short-term.

A. The company
The company is evaluated in terms of its organizational ability to implement
marketing strategies.
B. Suppliers
In this section, the relationship between the company and its suppliers is
assessed.
C. Marketing intermediates
The company distribution network is illustrated and explained in this section.
D. Customers
In this section of the marketing plan, identification of the geographic,
demographic, and psychographic profile of the brand's typical customer is
expected.
E. Competition
This is where the brand competitors and the companies that manufacture
them are identified.
F. Publics
Evaluate the company’s relationship with its publics, corporate stockholders,
the community, and financial institution.

85
VI. Strength and Weaknesses

Enumerate the identified strengths and weaknesses from the

microenvironmental analysis. Arrange them chronologically. Relate them directly
to a specific microenvironment factor and justify why they are classified as
strengths or weaknesses.

VII. The Market

A. Market size

Show the size of your market. The total market is the sum of the group of
individual or organization consumers who have both the willingness and
financial capability to purchase a particular or service.

B. Market needs

Know your market intimately to be able to serve its needs. Understand and
express what exactly the market is looking for in the product that you are
offering.

C. Market trends

Based on the historical trend, the segment or subsegments growth rate is

projected over the plan period.

VIII. Marketing Objectives

Arrange the objectives in sequence. Marketing objectives may include brand

awareness targets and sales revenue objectives.

IX. Marketing strategies

A. Product/service strategy

Product and service strategy should be fully explained. Indicate any innovations
you plan to implement in your product or service.

B. Pricing strategy

Based on the marketing objectives formulated, decide on a general pricing strategy

for the brand.

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 C. Distribution strategy

Review the brand's current distribution strategy to determine if it is still applicable

for the marketing plans implementation period.

D. Advertising and promotional strategy

Propose your advertising and promotions strategy. Based on the advertising and
promotional objectives and target audience profile, decide on the message, creative
style, vehicles, and media you will utilize.

X. Tactical Implementation

Develop tactics for each strategy. Some strategies may only require as little as two
tactical plans, while others may need to be supported by five or more tactics.

XI. Marketing budget

Indicate the total cost involved in the implementation of the proposed marketing
plan. Only third-party expenditures are to be included in the marketing budget.

XII. Feedback and Control

The purpose of this section is to ensure that each of the tactics are carried out as
planned. There should be feedback and control write-up for each of your tactics.

XIII. Financial Projections

The latest available incoming statement of your company can be used. Begin by
calculating the expected revenues to be generated by your marketing plan.

Activity 1. Read each statement carefully. Choose the letter which corresponds to
the correct answer and write it in a separate sheet of paper.
1. Which of the following is NOT part of the market analysis component of a
marketing plan?
A. A customer profiles
B. A SWOT analysis
C. An actual sales forecast
D. A detailed discussion of the major benefits to customers provided by the
product and/or service

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2. SWOT analysis should tell an entrepreneur that __________.
A. what actions he or she might take to avoid a threat.
B. where the business stands relative to the competition.
C. how competitors are likely to react when a new marketing tactic is tried.
D. All of these are correct.
3. Primary producers such as wheat farmers construct dams to influence their
businesses.
A. Internal environment C. Micro-environment
B. External environment D. Macro-environment
4. To overcome legal regulations, an industry body may attempt to influence which
aspect of its marketing environment?
A. Sociocultural C. Competitive
B. Political D. Economic
5. The influences in a society and/or its culture/s that affect people's attitudes,
beliefs, behaviors, preferences, customers, and lifestyles are known as
A. Demographic forces C. Sociocultural forces
B. Technological forces D. Legal forces
6. The global financial crisis was an example of what type of macro-environmental
force.
A. Political C. Competitive
B. Sociocultural D. Economic

7. A devaluation of the Australian dollar makes exports cheaper and imports more
expensive. Within the macro-environment, this is known as a__________.
A. Political forces C. Sociocultural force
B. Economic force D. Technological force

8. Which of the following is part of an organizations’ marketing environment?

A. The organization’s micro-environment
B. The organization’s macro-environment
C. Any internal or external force that affects the organization’s ability to
create, communicate, deliver, and exchange offerings of value
D. All of the above
9. The process of breaking the marketing environment into smaller parts to gain a
better understanding of it is known as________________.
A. The internal environment C. The micro-environment
B. Environmental analysis D. The macro-environment
10. ________ is the process of developing and maintaining a strategic fit between
the organization's goals and capabilities and its changing marketing
opportunities.

A. Strategic planning C. Short-term planning

B. Annual market planning D. Long-range planning

88
Activity 2 . Answer the following task in your notebook.
1. Differentiate Selling concept and Marketing concept.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2. Differentiate Production concept and Product concept.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
3. Give an example of Societal marketing concept in Philippine Business setting and
explain why you consider it as such.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Activity 3. Identify what is asked in each item. Choices are found inside the box.
Write only the letter of the correct answer in your notebook/answer sheet.

A. Executive Summary F. The Market

B. Study Background G. Marketing objectives
C. Macro-environmental analysis H. Tactical implementation
D. Opportunities and Threats I. Marketing Budget
E. Micro-environmental analysis J. Financial projections
K. Topic

1. It has market size, market trends and market needs.

2. Portion of a marketing plan that may include brand awareness target and sales
revenue objectives. They must be specific, measurable, attainable, realistic and time
bounded.

3. A component of a marketing plan that develops tactics for each strategy. Some
strategies may only require a little a two tactical plan, while others may need to be
supported by five or more tactics.

4. On this part of the marketing plan, indicates the total cost involved in the
implementation of the proposed marketing plan.

5. At the point, financial viability of the proposed marketing plan is presented.

6. Part of the marketing plan that outlines the most important findings from your
research. It is a summary of the entire marketing strategy. It offers a high-level
overview of your overall brand objectives, marketing goals and marketing activities.

7. Contains brief history of the company, mission and vision and product/service
offerings

89
8. Component of a marketing plan that makes an assessment on each of the
company’s macro-environments.

9. Part of the marketing plan that enumerates identified opportunities and threats
from the macro-environment analysis.

10. A component of a marketing plan that talks about company, supplier, marketing

intermediaries, customers, competitions and public.

Activity 1. Mini- Marketing Plan Presentation

Prepare a 15-minute PowerPoint presentation of your mini-marketing plan.

Included only important information in your presentation such as:

✔ A brief history of the company

✔ The brand that you have made a mini-marketing plan of
✔ Opportunities and threats facing your company and selected brand
✔ Strength and weaknesses of your company and selected brand
✔ Market size and needs
✔ Market trends
✔ Marketing objectives
✔ Your brand’s target market
✔ Your brands positioning
✔ Your proposed marketing strategies for your selected brand
✔ Your proposed marketing budgets
✔ Financial projections

90
Activity 2. Let’s assume that you are the owner of the Pizza Pizzazaz.

As the owner, how can you market “Pizza Pizzazaz” and generate profits using the
different marketing concepts?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Activity 3. Complete the following statements. Write your statements in your activity
notebook/ answer sheet.

1. As a student, I have learned the different marketing concepts which are

___________________________________________.
2. As a student, it is very important for us to learn the marketing concepts so that
_______________________________________________.
3. Using the knowledge, I have learned in this lesson, I will be able to...
_____________.

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Directions: Read each statement carefully. Choose the letter which corresponds
to the correct answer and write it in a separate sheet of paper.
1. What does a business adjust to create a brand image for a product?
a. The marketing mix c. Product
b. Price d. Promotion
2. What is the most important element of the marketing mix?
a. Price c. No single element
b. Product d. All of the above
3. What does the overall marketing mix of a firm determine?
a. Marketing strategy c. Profit from marketing
b. Marketing objective d. Marketing goal
4. Who is protected by consumer protection laws?
a. Businesses and customers c. Just businesses
b. Just customers d. customer service
5. Which of the following is NOT an element in the marketing mix?
a. Price c. Promotion
b. Profit d. Product
6. _________is defined as any paid and public presentation of products,
services, or ideas by an identified sponsor through a medium.
c. Advertising C. Commercial
d. Promotion D. All of the above
7. It is the extent to which consumers are familiar with the distinctive qualities or
image of a of goods or services?
A. Branding C. Retailing
B. Brand awareness D. Wholesaling

8. Which can affect choices among brands included in the consideration set, even
though there may be no other associations to those brands. This statement
belongs to ___________.
A. Learning advantages C. Choice advantages
B. Consideration advantages D. Both A & C
9. Which heavily influence the formation and strength of associations that
comprise the brands image.
A. Choice advantages C. Consideration advantages
B. Learning advantages D. Both A & B

10. All marketing efforts begin with the identification of the target market of the
product/service.
A. Identifying the target market C. Determining advertising
B. Establishing, advertising objectives D. Selecting media

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 93
What's More What's More What can What can
Activity 2 Activity 1 I do? I do?
1. Sales 1. B
Strength Activity 1 Activity2
2. D
2. Reputation
3. B Depends Depends
3. Whole
Channel 4. D on the on the
4. Wholesale 5. B student student
r 6. C answer answer
5. Specialty 7. B
dealer 8. D
9. A
10. C
Module 1
What I Know
1. A
2. A
3. A
4. D
5. B
6. A
7. C
8. B
9. B
10. A
 94
What's More What's More What I What I
Activity 1 can do? can do ?
1. B
Activity 2 Activity 3 Activity 1
2. D
Depend on 3. B Depends Depends
the 4. B on the on the
students 5. C students students
answer 6. D answer answer
7. B
8. C Activity 2
9. B Depends
10. B on the
students
answer
Module 3
What's More What's More What can What can
Activity 2 Activity 1 I do? I do?
1. D
1. Location Activity 1 Activity 2
2. B
2. Cost-based
3. Allowance 3. A Depends Depends
s 4. B on the on the
4. Marketing 5. C students students
Skimming 6. D answer answer
5. Oligopoly 7. A
8. C
9. B
10. B
Module 2
 95
1. C
2. C
3. A
4. B
5. A
6. B
7. B
8. C
9. A
10. A
Assessment
What's More What's More What's More What can What can
Activity 3 Activity 2 Activity 1 I? I do?
1. D
1. E Depend on Activity 1 Activity 3
the
2. D
2. G
students 3. A Depends Depends
3. H
4. I answer 4. D on the on the
5. J 5. A students students
6. A 6. D answer answer
7. B 7. B
8. D Activity 2
8. C
9. D 9. C Depends
10. E 10. A on the
students
answer
Module 4
References:
▪ Kotler, P. & Armstrong, G .(2015). Principles of Marketing, Fourth Edition
(pp.122-157)
▪ Kotler , P. & Saunders , J. (1999), Principles of Marketing, Second European
Edition (pp.120-135)
▪ Anderson, Paul and Art Rosenberg. The Executive’s Guide to Customer
Relationship Management. Doyle Publishing Company, Houston, 2000.
▪ CGI Group Inc. White Paper, Building Competitive Advantages through ,
Customer Relationship Management, January 2001.
▪ CRM at the Speed of Light: Capturing and Keeping Customers in Internet Real
Time, Paul Greenberg
▪ Torres, O. and So , R. (2019), Principles of Marketing , Published and printed
by Vibal Group, Inc. (pp. 56-68

96
For inquiries or feedback, please write or call:

Department of Education – Schools Division Office Navotas

Learning Resource Management Section

Bagumbayan Elementary School Compound

M, Naval St., Sipac Almacen, Navotas City

Telefax: 02-8332-77-64
Email Address: [email protected]