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Iya Janessa Olie Vosotros l MKTG 1A Motivation - what makes you act in a certain

MARKETING
way or in a certain scenario, whether you are
aware of it or not.

3 PRIMARY FACTORS OF CONSUMER

Consumer decision-making Process
MOTIVATION:
Integral to many industries; the process by
1. Emotions: People use their feelings to
which consumers evaluate making a
learn about things, jobs, products,
purchasing decision.
and other people. These feelings can
change depending on the situation.
5 STAGES OF CONSUMER 2. Situation: It is possible that particular
DECISION-MAKING PROCESS: concepts will become more
prominent or top of mind as a result
of situational cues, which will cause
1. Problem Recognition: “trouble people to behave in ways that they
spotting” First step in the would not normally do.
decision-making process. Begins 3. Personality: Different individuals have
with determining the needs of the different levels of value for different
customer. human needs. Making and keeping
2. Searching and Gathering Information: strong bonds with family and friends
product reviews is very important to some people,
3. Considering the Alternatives: the while the need to explore (to find and
buyer weighs options according to make new things) is an important
cost, quantity, quality of the goods, motivator for others.
value-added features, or other
important considerations. Prior to
selecting the product that best suits 3 MAJOR COMPONENTS OF FILIPINOS
your needs, check user reviews and BUYING BEHAVIOR ACCORDING TO
alternative product costs. PERNER:
4. Buying the Product or Service: the 1. Beliefs: It's possible for a consumer to
consumer chooses what to purchase have both positive and negative
and where to purchase it. opinions about an item
5. Post-Purchase Evaluation: The final 2. Affect (feelings): Consumers also hold
phase of the decision-making certain feelings toward brands or
process involves the consumer other objects.
assessing or analyzing the item they 3. Behavioral Intentions: what the
have purchased. consumer plans to do with respect to
the object (buy or not buy)

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Behavior Model Decision Making Unit (DMU)

a guide that helps us understand how - a collection or team of individuals
consumers choose products to satisfy who participate in a buyer decision
themselves. It involves observation and focus process. Generally DMU relates to
on what affects or influences their decisions business or organisational buying
and actions to meet their wants and needs. decisions rather than to those of a
family for example
- consists of a group of people who
TYPES OF BEHAVIOR MODELS: take collective decisions about the
1. Learning Model: a guide to the process purchasing of goods and / or services.
in which individuals make selections
while shopping. It focuses on how
6 Roles according to Kotler:
individuals learn and make decisions
based on their prior experiences. 1. Users: These are the people who are
actually going to work with the
purchased goods or services and they
2. Economic Model: function as an exert influence on the specifications.
instrument that assists individuals in Both customers and employees may
making informed decisions while take on this role.
shopping. It’s all about finding the 2. Influencers: They can exert influence
best deal for your money. on the purchasing process by setting
preconditions. They can be found at all
levels of the organization.
3. Psychoanalytical Model: It seeks to
3. Buyers: the actual negotiator with
understand the underlying emotions
the supplier. The buyer takes up one of
and desires that influence your
the most important roles within the
purchasing decisions.
DMU.
4. Initiators: the player who recognizes
a problem and tries to find a solution
4. Sociocultural Model: represent the
for this problem. This is the most
various factors that contribute to
important person in DMU.
your purchasing decisions. They
5. Deciders: the player who is ultimately
emphasize the impact of your family,
responsible for choosing the supplier
friends, and broader social
and as a result takes up an important
environment on your choice of
position within the DMU or Strategic
products.
Business Unit.
6. Gatekeepers: Responsible for the
information provision within the DMU.

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Buying Centers 3. Roles and Status: Each individual has

various roles (parent or employee)
Groups of individuals within organizations
that can influence their purchasing
that decide what to buy are known as buying
behavior based on the expectations
centers.
that come with those roles.
Professional Buyer: people who, in a way, shop
for a living.
Situational Factors:
1. Physical Environment: including store
BUYING SITUATIONS:
layout, cleanliness, and ambiance can
1. Impulsive Buying: Making an affect consumer mood and
unplanned purchase which is the purchasing behavior.
tendency of a customer to buy goods 2. Time: time available for shopping can
and services without planning in dictate purchasing behavior, leading
advance. to impulse buys or planned
2. Straight Rebuy: business-to-business purchases.
buying situation where a company 3. Social Surroundings: Each individual
reorders the same product or service has various roles (parent or
from the same supplier without any employee) that can influence their
changes. purchasing behavior based on the
3. Modified Rebuy: A buying situation in expectations that come with those
which an individual or organisation roles.
buys goods that have been
purchased previously but changes
either the supplier or some other SEGMENTATIONS
element of the previous order.
the process of splitting your audience into
smaller groups based on specific traits.
INFLUENCES:
Social Factors Customer Targeting
1. Family Members: Can significantly finding and contacting a specific group of
influence buying decisions, whether customers from your list to get them
through direct influence or through interested again and boost sales with
the socialization process. tailored messages and offers.
2. Reference Groups: Groups that
This strategy helps businesses customize
individuals identify with, such as
their marketing, products, and services to fit
friends, colleagues or celebrities can
the specific needs and preferences of
impact preferences and choices.
different groups, instead of trying to use a
one-size-fits-all approach.

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Targeting: Businesses evaluate each Product Life Cycle

segment's potential to determine which
Key idea in marketing; which describes a
ones to target. In this case, this evaluation
product's path from conception to final
considers factors such as segment size,
demise. It provides a framework for
Growth Potential, and Competitive intensity.
comprehending how goods perform in the
marketplace over time.
Positioning: last phase of analysis, businesses
develop tailored marketing strategies to
5 STAGES OF PRODUCT LIFE CYCLE:
appeal specifically to the chosen segments.
1. Introduction: begins when a
product is launched. Awareness is
Product Positioning built through marketing efforts, but
sales are typically low as consumers
a form of marketing that presents the
are unfamiliar with the product.
benefits of a product to a defined target
audience.
Benefits: 2. Growth: sales start to increase
rapidly as more consumers become
1.Meeting customers’ expectations
aware of and interested in the
2. Winning customer loyalty product. The market expands, and
3. Attracting different customers profits begin to rise. Competitors may
enter the market with similar
_________________________________________________
offerings.
PRODUCT DEVELOPMENT,
MANAGEMENT STRATEGIES AND
ANALYSIS 3. Maturity: Sales reach their highest
point in this stage and then stabilize.
The market becomes saturated, with
Product Development many competitors vying for the same
customers. Companies focus on
involves the creation or enhancement of a
brand loyalty, improving customer
product with the primary goal of addressing
service.
the specific needs and preferences of a target
audience.
4. Decline: sales begin to decrease due
to factors such as changing consumer
Unique Value Proposition (UVP) - a marketing
preferences or new innovations.
strategy that explains how a product or
service is better than its competitors.

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Tangible Products 3. Go-to-Market Strategy – Plan the product

launch, pricing, distribution, and marketing.
those physical products that you can
Test on a small scale before full release.
perceive with any or all of your five senses.

4. Customer Education – Provide materials

Intangible Products
like tutorials to help customers understand
intangible products are such assets that you and use the product effectively.
can't see, touch, or feel. These products don't
have any physical existence or property.
5. Post-launch Monitoring – Track sales,
feedback, and usage data to make
Products improvements quickly.
A product is any item you sell to serve a
customer's needs or wants.
STRATEGIES IN MANAGING EXISTING
PRODUCTS:
Services 1. Product Lifecycle Management – Adapt
an organization that provides an intangible strategies based on the product's stage
valuable offering to customers and is often (introduction, growth, maturity, or decline).
handled by an individual or group of people
who address a need or want of a client
2. Continuous Improvement – Regularly
update the product based on customer
Tangibility: products are physical, while feedback to stay competitive.
services are experiential.
Ownership: customer own products, but not 3. Marketing and Promotion – Refresh
services. marketing efforts to maintain customer
interest.

STRATEGIES IN MANAGING NEW

PRODUCTS: 4. Cost Management – Look for ways to
1. Market Research – Study customer needs, reduce production and operational costs as
market trends, and competitors to ensure the product matures.
your product meets demand.

5. Portfolio Management – Review product

2. Product Development – Focus on creating performance and retire underperforming
a unique product with a clear value products.
proposition, incorporating early feedback.

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4. Technological - challenges adjusting

6. Customer Retention - keep customers
to tech trends, including new
engaged with loyalty programs, upgrades, or
products and services.
personalized offers.
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Branding
Portfolio Management
the process of creating the brand identity of
The centralized management of one or more
a company; the process where a business
portfolios to achieve strategic objectives. It
makes itself known to the public and
involves selecting the right mix of projects
differentiates itself from competitors.
and products to optimize returns and
resource allocation.
Effective portfolio management is crucial Brand Equity
for organizations aiming to achieve
a term used to describe the value of having a
strategic goals while managing risks and
recognized brand; name given to the value of
optimizing resource allocation.
a company’s brand
Active Portfolio Management, Passive Portfolio
Management and Investors.
ADVANTAGES OF BRANDING:
Awareness:
SWOT Analysis
Consistency in the Marketplace
a technique used to identify strengths,
weaknesses, opportunities, and threats for Customer Loyalty
your business or even a specific project. Protection from Competition
1. Strength
2. Weaknesses
DISADVANTAGES OF BRANDING:
3. Opportunities
4. Threats Expensive
Negative Attributes
PEST Analysis
1. Political - refers to the political Brand Development
factors that hinders a business
strategic process of building and shaping a
2. Economic - refers to outside
brand’s identity.
economic issues that can play a role
in a company’s success
3. Social - refers to the social Brand Sponsorship
environment of a given industry’s
a marketing technique whereby brands
market, how consumer needs are
contribute to social events to gain more
shaped and what brings consumers to
exposure.
the market for a purchase.

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Pricing Wholesale
The term is used in economics and finance, is involves selling products in bulk, usually to
the act of establishing a value for a product retailers or other businesses.
or service.

Promotion Management
Pricing Objectives
it involves planning, implementing, and
the goals of a company aims to achieve controlling the communication of a brand’s
through its pricing message to its target audience.

Pricing Decision Logistic

the process of selecting an optimal price for refers to the overall process of managing
a product or service, based on factors such as how resources are acquired, stored, and
demand, supply, competition, and cost of transported to their final destination.
production.

Logistic Management
These Factors may include:
It involves identifying prospective
- Customer's willingness to pay distributors and suppliers and determining
- Competitors' pricing strategies their effectiveness and accessibility.
- Perceived value of the product or
Logistics managers are referred to as
service
logisticians.
- Cost of production
- Brand identity
- Market demand Distribution Network
- Target customers
can be seen as the flow of goods from a
- The total costs of running your
producer or supplier to an end consumer.
business, including fixed and variable
consists of storage facilities, warehouses, and
costs
transportation systems that support the
movement of goods
RETAIL AND WHOLESALE
focus on two major parts of the distribution
Distribution Management System (DMS)
process.
a set of software that control the flow of
commodities from manufacturer to end user
Retail
involves selling products directly to
consumers.

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include discounts, coupons, contests,

3 TYPES OF DMS
or gifts.
1. Parallel Feeders - Results in increased
reliability at a higher expense.
2. Ring Main - It can be used to provide 3. Personal Selling - it is a promotional
a system reliability level that is strategy that allows the marketer to
comparable to that of the parallel orally communicate with the
design customers.
3. Radial - Must be situated in the
middle of the consumers in order for
this system to be utilized. 4. Public Relations - The marketing
department performs an important
role in managing the public’s opinion
Channel of Distribution of a business.
A distribution channel is the web of
companies, people, and middlemen that
5. Publicity - is an activity that is similar
makes it easier for a good or service to get
to advertisements. It involves the
from the producer to the final customer.
promotion of a product or service
through the press in the form of
news, stories, and features.
4 CHANNELS OF DISTRIBUTION:
1. Distributors
2. Wholesalers 6. Direct Marketing - refers to directly
3. Retailers reaching out to customers which can
4. Online Stores be done through various means such
as email marketing, direct mail,
telemarketing, door-to-door sales,
TYPES OF PROMOTION: etc. directly communicate with the
1. Advertisement - a specific marketing specific audience to boost sales
communication activity that involves
placing marketing messages or more
7. Sponsorship - exposes the company
specifically, advertisements on a
to a large audience and enhances the
purchased area within a medium such
image and awareness of the brand or
as radio, television, print, outdoor
product.
mediums, or digital marketing
channels including blogs and social
media.
8. Trade Fair and Exhibition - Businesses
may promote and demonstrate their
goods and services to a specific
2. Sales Promotion - to encourage
audience through trade shows and
buyers to make immediate
exhibits.
purchases within a fixed period using
various market strategies that

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to achieve specific marketing and

Strategic Pricing
sales objectives.
sets a product's price based on the product's 8. Long Term Planning - Consider the
value to the customer, or on competitive long-lasting impacts of pricing
strategy, rather than on the cost of decisions on brand perception and
production. customer relationships
By creating strategic pricing policies, 9. Monitoring and Analysis -
analytics, and processes, you can directly Continuously monitor market
capture customer value and turn that value conditions, customer feedback, and
into shareholder value pricing performance to adapt
strategies as necessary.

9 STEPS IN STRATEGIC PRICING

Distribution Management
1. Market Analysis - Thoroughly analyze
the market, including customer has long been a business challenge. Raw
behavior, competitor pricing goods can arrive too early and go bad before
strategies, and industry trends. they are used. Or, finished products can
2. Value Proposition - Identify and arrive too late, allowing a competitor to seize
emphasize the unique value that the the lion’s portion of market share.
product or service offers compared
to competitors, and set prices
Positioning Strategy - a set of actions and
accordingly.
processes that are designed to improve the
3. Cost Evaluation - Assess production,
image and visibility of a brand, company, or
distribution, and marketing costs to
product.
establish pricing that covers expenses
while ensuring profitability.
4. Pricing Objectives - Clearly define
Market Positioning - a strategic exercise we
pricing goals, such as maximizing
use to establish the image of a brand or
profits, expanding market share,
product in a consumer’s mind
entering new markets, or fostering
customer loyalty.
5. Segmentation and Tiers - Tailor pricing 4 P’s - promotion, price, place and product
to different customer segments or
create pricing tiers based on features,
usage, or customer preferences. DIFFERENT TYPES OF POSITIONING IN
6. Pricing Elasticity - Gauge customer MARKETING:
sensitivity to price changes and
adjust pricing strategies to optimize
revenue. 1. Customer Needs: Knowing your
7. Promotions and Discounts - target market and how you will fulfill
Strategically use temporary price their specific needs.
reductions, promotions, or discounts

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2. Product Price: Positioning your

Public Relations
brand/product as competitively
priced. - relies on earned media to build and
3. Product Quality: Positioning your maintain a positive image.
brand/product as high quality - focuses on managing relationships
4. Product use and application: with the public and building a
Associating your brand/product with favorable reputation through
a specific use strategic communication and
5. Competitors: Positioning your brand storytelling.
as better than your competitors
6. Convenience Positioning: Marketing
Customer Relationship Management (CRM)
focuses on positioning a product or
service as convenient and easy to use
or access for consumers
Customer Loyalty and Development
achieved by consistently meeting or
Unique Selling Point (USP) - the essence of exceeding customer expectations, while
what makes your product or service better development focuses on nurturing
than competitors. long-term relationships through
personalized experiences, rewards programs,
and excellent service.
Market Differentiation - a strategic
positioning tactic an organization can use to
distinguish its products or services from Personal Selling
those of its competitors. This strategy
involves direct interaction between a
involves making your product or service
salesperson and a customer to build
unique and attractive to your target market,
relationships, understand needs, and tailor
thereby gaining a competitive edge.
solutions. It is highly effective for complex or
high-value products.
ADVERTISING AND PUBLIC RELATION
Advertising Personal Selling Process
- focuses on paid media to directly This process includes prospecting,
promote products or services. approaching customers, identifying their
- aims to increase sales and brand needs, presenting solutions, handling
awareness by targeting specific objections, closing the sale, and follow-up to
audiences with persuasive messages. ensure satisfaction.

Direct Marketing
involves direct communication with
potential customers through channels like

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email, SMS, or mail, aiming for measurable

2. Joint Venturing - a method of
responses or transactions without
international marketing whereby a
intermediaries.
company joins a foreign company to
produce or market a product.
Service Marketing Types of Joint Venture
focuses on promoting intangible products Licensing - a situation where a company
like healthcare, education, or hospitality. called the licenser enters into an agreement
with another company called the licensee in a
foreign market to buy the right to use the
Online Marketing licenser’s manufacturing process and other
utilizes digital platforms such as websites, identities for a fee or royalty.
search engines, and social media to promote Contract Manufacturing - a situation where a
products or services, combining strategies company signs a contract with
like SEO, PPC, and content marketing for manufacturers in a foreign market to
better visibility and engagement. produce its product for them.
Management Contracting - where a domestic
Integrated Marketing Communication (IMC) company provides management services to a
foreign company that supplies the domestic
a coordinated approach that ensures
company capital to operate.
consistency across all promotional
channels, such as advertising, PR, direct Joint Ownership - when a company joins a
marketing, and digital platforms, to deliver a foreign investor to create a business which
unified brand message. will be jointly owned and controlled.
3. Direct Investment - a method of
entering a foreign market by
3 APPROACHES IN INTERNATIONAL
physically siting a business in a
MARKETING:
foreign country.
1. Exporting - the process of selling
goods to other countries with little
or no modification on the goods. It is Product Policy
divided into Direct and Indirect defined as the broad guidelines related to the
Exporting. production and development of a product.
Types of Exporting:
Direct Exporting - a method of selling goods to Corporate Social Responsibility (CSR)
other countries whereby a company handles
refers to a company's commitment to
its own exporting activities.
operating ethically, contributing to
Indirect Exporting - a situation where a economic development, and improving the
company uses independent international quality of life for employees, communities,
marketing intermediaries in exporting their and the environment. It includes initiatives
goods to other countries.

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like sustainability, charitable work, and to tailor products, services, and

ethical business practices. marketing strategies to specific
geographic needs and preferences

Innovation
4. Behavioral: A marketing segment
involves creating new ideas, products, or
which divides the group through their
processes that bring value and drive growth.
distinct Behaviors, Preferences, and
Action.
Marketing and Environmentalism
This concept integrates eco-friendly 5. Needs-Based: A marketing segment
practices into marketing strategies, that targets the Unique Needs and
promoting sustainable products and raising Demand of your Target market. Often
awareness about environmental issues. used in a B2B market.
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MARKET SEGMENTATION & CUSTOMER Market Targeting
TARGETING
Steps of Market Targeting Process:
1. Evaluation market segments
Segmentation 2. Market Targeting Strategies
the process of dividing your audience into
smaller groups with similar traits to
4 Types of Targeting Strategies:
effectively communicate the most relevant
products and benefits to them. Undifferentiated Market Targeting: a mass
marketing strategy that ignores market
5 SEGMENTATIONS
segmentation and goes for the whole
1. Demographic: group of customer market.
based on their age, gender, income,
education, race and occupation
Differentiated Market Target: focused to
Age: Behavioral Patterns, Life Events,
target multiple market segments and design
Communication Style, Gender, Income,
different yet effective marketing mix in each
segment.
2. Psychographics: a marketing method
to divide the audience into different
Concentrated Market Targeting: targets very
market segments based on
specific segments
Psychological criteria

3. Geographic: Divides a market based

on location, such as country, region,
city, climate, or population density,

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Micromarketing Market Targeting: it involves

developing products, services and marketing
programs best match with individuals and
locations

Positioning
refers to how a brand or product is uniquely
defined and perceived in the minds of the
target audience, relative to competitors
It highlights the value and distinct benefits
offered, aligning with customer needs
and preferences.

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