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Polytechnic University of the Philippines

Sto. Tomas Batangas Branch 1

Chapter 1

THE PROBLEM AND ITS

BACKGROUND

This chapter is an introduction to the thesis. It includes the theoretical

framework, statement of the problem, scope and delimitations, significance of
the study and the definition of terms are presented.

INTRODUCTION

Marketing is key to any business' success and is vital in keeping the

business' operations sustained and running. Any business may offer their
products or services and it would just go unnoticed without proper marketing,
leaving any business without sales and thus shutting down businesses.
Marketing is studied by companies in order to amplify their sales, get locally
or internationally known and to promote a healthy competitive environment.
Every business uses marketing, but not all businesses use marketing as well
as others and this what sets small businesses apart from the bigger ones.

Most aspects of a business depend on successful marketing. Overall

marketing covers advertising, public relations, promotions and sales.
Marketing is a process by which a product or service is introduced and
promoted to potential customers.

Needless to say, Marketing goes hand in hand with knowing the

consumption patterns of buyers. Customers base their buying decisions on
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both rational and emotional reasons. Getting your customers to have an

emotional attachment to a business' brand is one of the keys to keeping them
loyal. As well it is one of the key factors in gaining referrals and
recommendations. Understanding customer buying behaviors make it easier
to select the best marketing strategy.

THEORETICAL FRAMEWORK

The current study is anchored on the 4 Ps of Marketing Mix by E.

Jerome McCarthy in 1960. Marketing Mix is consist of Product, Place, Price,
and Promotion.

Marketing Mix is about putting the right product or a combination

thereof in the place, at the right time, and at the right price. Marketing Mix as
a basis of knowing the different Marketing Practices.

The product in service marketing mix is intangible in nature. It is an

item that is built or produced to satisfy the needs of a certain group of
people. A product has a certain life cycle that includes the growth phase, the
maturity phase, and the sales decline phase. It is important for marketers to
reinvent their products to stimulate more demand once it reaches the sales
decline phase. A product needs to be functionally able to do what it is
supposed to, and do it with a good quality.

To position and distribute the product in a place that is accessible to

potential buyers. This comes with a deep understanding of your target
market. Understand them inside out and you will discover the most efficient
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positioning and distribution channels that directly speak with your market. The
right place means greater chances of sales over a longer period of time. This
translates into greater market share, more profits and better ability to track the
changes in the marketplace in thinking, styles, fashion and needs.

The price of the product is basically the amount that a customer pays
for to enjoy it. Adjusting the price of the product has a big impact on the entire
marketing strategy as well as greatly affecting the sales and demand of the
product. A pricing strategy takes into account segments, ability to pay, market
conditions, competitor actions, trade margins and input costs, amongst
others. It is targeted at the defined customers and against competitors.

Promotions have become a critical factor in the service marketing

mix. Promotions refer to the entire set of activities, which communicate the
product, brand or service to the user. The idea is to make people aware,
attract and induce to buy the product, in preference over others. In terms of
Marketing Practices of Vegetable Vendors. Word of mouth is what they use in
their product promotion. Word of mouth is an informal communication about
the benefits of the product by satisfied customers and ordinary individuals.

Consumption patterns is the way elements of consumption are

combined to form level of consumption as a whole. There are three ways to
describe level of consumption:
By the kinds and amounts of goods & services consumed in the
household
By the way these good are organized for use the tendency for
products to be chosen in clusters, with choice of product leading to
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choice of others of the same style & the activities associated with
product use
By the values that underlie the choices of household

Ever since it has been proclaimed as the sole end and purpose of all
production consumption has been performing an essential role in economic
theory. Although consumption was approached by economists prior to
Keynes, it is only in his work that consumption gained its due importance,
starting with the famous formulation of the psychological law. Subsequently,
several other theories brought consumption to the Centre of the economic
research the most widely acknowledged being the contributions brought by
James Duesenberry, Milton Friedman, Franco Modigliani and Richard
Brumberg. The aim of this paper is to analyze some of the most important
theories of consumption from the perspective of the past influences on current
consumption patterns. The notion is certainly easy to assimilate at an intuitive
level, it is present in the economic theory, and may be rather conveniently
applied to consumption.
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INPUT PROCESS OUTPUT

Respondent
answers based F Marketing
on Marketing Data Practices and
i Analysis
Mix as Consumption
Data
standards on g gathering
Patterns of
determining through Calamba
marketing u Vegetable
survey
practices r and Vendors
Research determined
Different e
Consumption
Patterns
gathered on the
respondents

Marketing
Practices and Feedback
Consumption
Patterns of Figure 1
Calamba
Paradigm of the Study
Vegetable
Vendors

The main concern of this study is to know the marketing practice and
consumption patterns of Calamba vegetable vendors. This will help establish
a legitimate classification of the marketing practices and consumption
behavior present in Calamba vegetable vendors.

Figure 1 shows the input, process and output of this study. Input points
the issues the researchers wanted to answer. In the process of determining
the result, the researchers gathered data through conducting survey and
research. Data gathered are then analyzed to determine marketing practices
and consumption patterns of Calamba vegetables vendors decisions process
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and actions that might be taken based on findings, which serves as the
output.

STATEMENT OF THE PROBLEM

The main objective of the study is to help the vegetable vendors

Calamba determine the most efficient way to market or sell their products.
It specifically aims to answer the following questions:

1. What is the respondents demographic profile?

2. What are the problems that the respondents encounter as they sell
their products the traditional way?
3. What course of action can be proposed based on the findings of the
study?

SCOPE AND DELIMITATIONS

The study is focused on the vegetables vendors of Calamba Public

Market in Crossing Calamba Laguna. Since the location in Calamba public
market is centralized, it has many different vegetable vendors. The study also
focus on the consumer patterns of vegetable vendors. the respondents in the
study is composed of 50 vegetable vendors in different variety with the age of
20 years old and above the constraints about the researchers are money ,
time and willingness of respondents to cooperate the study .
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SIGNIFICANCE OF THE STUDY

This study may add to the improvement of the accompanying segments:

Vegetable Vendors in Calamba Public Market. With this study, they

will know if their marketing practices and consumption patterns can be
improved. Information assembled about the practices and patterns will
serve as a guidelines for them to consider better courses on the most
proficient method to showcase their vegetables and to have an
appropriate utilization on their items.

Future vendors. This study can help them to comprehend what is

going on inside the field that they gone into. It will likewise give
significant data that will assign a helpful recommendation to the
enhancements to their future business.

Future researchers. Study will serve as reference of future inquiries

about who will conduct related study.

DEFINITION OF TERMS

Buyers. Individual(s) who selects what items will be stocked in a store, based
on his or her predictions about what will be popular with shoppers.

Consumption pattern. The way elements of consumption are combined to

form level of consumption as a whole.
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Consumer. One that consumes, especially one that acquires goods or

services for direct use or ownership rather than for resale or use in production
and manufacturing.

Marketing mix. A business tool used in marketing and by marketers. The

marketing mix is often crucial when determining a product or brand's offer,
and is often associated with the four Ps: price, product, promotion, and place.
Marketing practices.

Market share. The percentage of a market (defined in terms of either units or

revenue) accounted for by a specific entity.

Pricing strategy. It can be used to defend an existing market from new

entrants, to increase market share within a market or to enter a new market.

Profit. Is a financial benefit that is realized when the amount of revenue

gained from a business activity exceeds the expenses, costs and taxes
needed to sustain the activity. Any profit that is gained goes to the business's
owners, who may or may not decide to spend it on the business.

Showcase. A situation or event that makes it possible for

the best features of something to be seen.

Utilization. The primary method by which asset performance is measured

and business success determined. In basic terms it is a measure of the actual
revenue earned by assets against the potential revenue they could have
earned.
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Vegetables vendors. The one who sells different varieties of vegetables in

the market.

Word of mouth. The passing of information from person to person by oral

communication, which could be as simple as telling someone the time of day.