CHAPTER II

MARKETING ASPECT

The Marketing Aspect, as a critical aspect in determining the feasibility of a

particular business, ascertains the future demand of the product that will be served to the

target market. It involves the study of current and projected supply, as well as the demand

set-up for the business.

Accordingly, this aspect of the study provides a detailed description of the

products to be served by the company and the target market to whom these products will

be delivered. The environment – micro and macro – wherein the company is located, and

the profile of the target market are examined to create the foundation for marketing

strategies. The population of the target market, the sampling done, and the results from

the survey performed are also presented to render the data needed for analysis of demand,

supply, and demand-supply gap. Other essential information including the supply

capacity, share on demand, market share, pricing strategy are determined as these will be

used for financial projection and growth factor for the business.

PRODUCT DESCRIPTION

Main – ___ foods

Secondary – indoor plants for sale – displayed as part of the place interior design

MARKET DESCRIPTION

Place - busy people, vehicle crowded place, fast foods and street foods around the area,

well-off schools and students, average earners residents Commented [ASR1]:

Comment:
 1. Residents as target market – may family na kasama, bat pa lalabas para kumain,

lutong bahay na lang. considering na low income earners residents sa ubelt, sa

carinderia sila bibili. What if condo residents?

2. Why not students? Average naman allowance ng students around around ubelt.

Primary market. Specifically, college students.

3. Employees? Small to medium mga business sa ubelt, walang sariling canteen,

kumakain sa labas, carinderia pa.

4. Professionals? Difficult to determine and population. As secondary market?

MARKETING ENVIRONMENT

Different factors or forces internal and external to the business might affect the

way it builds and maintain effective relationship with customers. This is called the

marketing environment. It has two levels – the microenvironment and macroenvironment.

The microenvironment is composed of the company itself, suppliers, competitors, and

customers. On the other hand, the macroenvironment encompasses the demographic,

economic, technological, natural, political and legal environment, and socio-cultural

environment surrounding the company.

Microenvironment

Company

Suppliers

Competitors
Customers

Macroenvironment

Demographic Environment

Economic Environment

Technological Environment

Natural Environment

Political and Legal Environment

Socio-cultural Environment

MARKET SEGMENTATION

For any starting company, it has to be accurate on what market it targets to better

position itself and be more focused in terms of new offering and strategies. This can only

be done so if a proper market segmentation has been done. Market segmentation is the

process of subdividing the market into multiple meaningful segments based on marketing

variables which include geographic, demographic, psychographic and behavior.

Through market segmentation, a company can be able to mitigate unnecessary

risks, reduce costs, target customers better, have better retention, and generate more
profits. Simply put, segmenting the entire population of market is essentially critical for

any business to prosper.

Geographic Segmentation

According to municipality and population density in Manila

Municipality – tondo, Sampaloc, santa ana, santa cruz, pandacan, malate, paco, port area,

san Nicolas, quiapo, binondo, san Miguel, ermita, intramuros (arranged by population

density – descending – as of 2015 – ref PSA)

Within 500 meters from the business location

Demographic Segmentation

By occupation – professional, self-employed, semi-professional, clerical/admin, sales,

trades, mining, primary producer, student, home duties, unemployed, retired

Primary - Students, Secondary – Employed, Household

By employment status

By age

By allowance

Psychographic Segmentation

Behavioral Segmentation

By dietary preference

By dining reference

MARKET TARGETING

POPULATION

Historical Population
Market Projection Method

Projected Population

SAMPLE

SURVEY RESULTS

DEMAND ANALYSIS

SUPPLY ANALYSIS

DEMAND-SUPPLY GAP ANALYSIS

SUPPLY CAPACITY

SHARE ON DEMAND

MARKET SHARE

PRICING STRATEGY

MARKET DIFFERENTIATION
MARKET POSITIONING

MARKETING MIX

Product

Price

Place

Promotion

People

Process

Physical evidence

SWOT ANALYSIS

Internal

Strengths

1. Pleasant ambience.

2.

Weaknesses
 1. Limited flexibility in pricing.

2.

External

Opportunities

1. Expansion through branching out.

2.

Threats

1. Increases in price inputs.

2.

PROMOTION MIX

[Intro]

Advertising

Sales promotion

Public relations

Direct marketing

MARKETING PROGRAM

[Intro]

Pre-opening Day Marketing Activities

Annual Marketing Program and Activities

MARKETING EXPENSES

Pre-operating Expenses

Annual Marketing Expenses