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CHAPTER III
MARKETING ASPECT
Software Application for Advertising”, is to know and study the marketability aspect
the market by those business entities who wants to extend their advertising
business users due to wider coverage of Hyper Deals advertising. But before this
will be finally realized, a further scientific and organized study must be conducted
in order to check and balance the feasibility of Hyper Deals in advertising industry
and also it’s possible income- generating services to be offered to the users and
developers alike.
This aspect of the study will tackle the target market which the Hyper Deals
will be introduced and be used, the demand and supply relation of putting and
sustaining the application in the market with projected computations and analysis,
the market share the Hyper Deals will probably get and the marketing strategy in
introducing the application to the users. All of these important matters will be due
explained in this chapter of the study. This chapter is considered by the proponents
to be the crucial and most important part of the study because this will give an
overview of how will Hyper Deals work in the market, including its distribution,
future development and upgrading and its total marketability. This chapter will
TARGET MARKET
likely to buy and which will benefit the company’s products or services. For new
businesses, identifying the target market is one of the most complex element to
consider for in the absence of it, the business itself will not prosper. In order to
determine potential customers, knowing the market can be of great help to know
which could be the great source of income. The target market for the proposed
service application are the different business entities within the range of Cebu City
with a capital of PHP 25,000 above or those considered small and medium to large
City. They are chosen as the target market because they will be the instrument in
customers. The proponents assumes that it is the most qualified target market
knowing that most, if not all of the business entities are now engaging into online
advertisements. Also, Filipinos has the hype of binge shopping when there are
fingers but with the help of research and data request from the places or locations
where the survey will be done. This study employs two sets of respondents –
customer user and business user. The customer user information are gathered by
requesting the figures from the offices assigned where it must be collected. In the
C H A P T E R T H R E E 49
case of this study, as the respondents are USJR students and staff, the data are
retrieved from the Office of the Registrar for the students’ population. The request
covers 6 years of data, 5 historical and the current or present data. The business
population which is also the target market of Hyper Deals, are then collected
through research of number of tenants the defined malls roofed. The business user
respondents are from three big malls in the metropolitan. SM City Cebu and
Robinsons Galleria in North Reclamation Area and the Ayala Center Cebu in Cebu
Business Park. The respondents are the tenants, stalls, shops and kiosks found
inside the malls stated. The proponent may collect useful data for a conclusion to
be drawn which is also important to navigate the validity of the study. The sample
population are then computed using the Cochran Formula. The proponents used
Cochran formula for small population since the population of the two groups of
There are total of 900 tenants and 5,768 students. Out of these numbers, 129
Table 9
RESPONDENTS
MALLS 2018 POPULATION
(M.E. = .08)
The data for past five years of the three malls are not displayed in the table
above since the mall administration officers forbid to give the information due to
Table 10
COLLEGE
SCHOOL
ARTS AND TOTAL
YEAR COMMERCE ENGINEERING NURSING
SCIENCES
RESPOND RESPON RESPON RESPO
2018- ENTS DENTS DENTS NDENT
TOTAL (M.E. = TOTAL (M.E. = TOTAL (M.E. = TOTAL S (M.E.
2019
0.05) 0.05) 0.05) = 0.05)
3515 1134 1031 88 5768
1st Sem
219 71 64 6 360
The tables presented below are information regarding the results of the
proposed target market is essential to this study in order to get useful information
to be used for determining the marketability of the project. The real purpose of
gathering these information are in order for the proponents to evaluate the
questionnaires were distributed within (3) three malls within the area of Cebu City
C H A P T E R T H R E E 51
and to the college students of University of San Jose Recoletos Main Campus.
entities and to the students through their class schedules to conduct a random
we have surveyed.
(𝑡)2 (𝑝)(𝑞)
𝑛𝑜 =
(𝑑)2
(1.96)2 (.5)(.5)
𝑛𝑜 = (.05)2
= 384
And
(1.96)2 (.5)(.5)
𝑛𝑜 = (.08)2
= 150
Where:
(The alpha level of .05 and .08 indicates the level of risk the
researcher is willing to take that true margin of error may exceed the
sample size is 384 and for a population of business user is 900, the required
However, since this sample size exceeds 5% and 8 % of the population (5,
sample size.
𝑛𝑜
𝑛1 =
𝑛0
1+
𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛
384
𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑛1 = 384 = 360
1+
5768
150
𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠 𝑛1 = 150= 129
1+
900
C H A P T E R T H R E E 53
Where:
The sample size or respondents for customer user and business user
respectively is 360 and 129. That is 489 total respondents for the survey.
The formula have given the proponents the sample population shown in the
calculations below for all the respondent groups involved, USJR main students and
staff and SM City Cebu, Robinsons Galleria and Ayala Center Cebu tenants. Table
11 in the next page will show the number of sample population surveyed by the
Table 11
SAMPLE
2018 TOTAL POPULATION
RESPONDENTS
POPULATION
M.E. = .05 M.E. = .08
Customer User
Group:
USJR Main
Commerce 3515 220
CAS 1031 64
Engineering 1134 71
Nursing 88 5
TOTAL 5768 360
Business User
Group:
SM City Cebu 500 71
Robinsons
200 29
Galleria
Ayala Centre
200 29
Cebu
TOTAL 900 129
business user group and 359 for the customer user group.
In gathering the data for survey using the random sampling really helps in
and degree of confidence. The proponents were able to know the preferences of
mostly used in their sale and product or service promotion. Table 12 in the next
Table 12
n = 129
ADVERTISEMENT
TOTAL RANK
CHANNEL
Posters
126 1
(Traditional)
TV and Media 48 3
Online 117 2
Friends 23 4
TOTAL 314*
*Multiple Responses
considerably be a basis for the possible usage of Hyper Deals as an online platform
application for advertising. This implies that Hyper Deals have a great potential to
C H A P T E R T H R E E 56
shows the estimated budget the business respondents expend for advertising their
sale or promotion.
Table 13
n = 129
ESTIMATED
ADVERTISEMENT TOTAL RANK
BUDGET
1000-10000 47 1
10001-50000 42 2
50001-100000 48 1
100001-200000 3 3
Others 0
TOTAL 140*
*Multiple Responses
Table 13 shows that most business respondents either incurs PHP 1,000 to
PHP 10,000 and PHP 50,000 and PHP 100,000 for advertisement. This implies
that small or beginning businesses use the PHP 1,000-10,000 bracket for their
advertisement expenses while bigger or old businesses incurs the PHP 50,000 to
C H A P T E R T H R E E 57
PHP 100,000 range maybe due to bigger range of customers and considerable
This table shows the interest of the business respondents in using the
Table 14
n = 129
Table 14 shows that most business respondents are interested to know and
than the 5 percent uninterested group. This implies that Hyper Deals App
demand as of a result of the survey conducted in the three malls in Cebu City.
C H A P T E R T H R E E 58
This item is to determine how much the target market will be willing to pay
the app per day per ad. Table 15 is the possible budget the business respondents
Table 15
n = 129
PRICE
TOTAL PERCENTAGE
RANGE
P100 56 43%
P150 63 49%
P200 8 6%
Others 2 2%
TOTAL 129 100%
Table 15 shows that most business respondents are willing to pay PHP 150
for the ad they will be posting in Hyper Deals. This information is to be considered
in pricing the service Hyper Deals will offer in the market. Second in row with 43 %
says that they are only willing to pay PHP 100 in Hyper Deals if they will use it for
advertising. This implies that the businesses are willing to pay considerably PHP
Table 16 presents the average days the sale or special product or service
Table 16
WEIGHTED
BUSINESS USER
TOTAL AVERAGE per
GROUP
ITEM
DAYS
1 5 5
2 3 6
3 60 180
4 34 136
5 7 35
6 3 18
7 13 91
8 0 0
9 0 0
10 0 0
Others(12) 1 12
Others(30) 2 60
Others(60) 1 60
TOTAL 129 603
WEIGHTED AVERAGE 5
The results tell that the average number of days a business conducts
This average number, 5, is necessary in computing for the revenue the Hyper
Deals and other forecasts regarding the business quantifiable amounts and values.
C H A P T E R T H R E E 60
Table 17
WEIGHTED
BUSINESS USER
TOTAL AVERAGE per
GROUP
ITEM
DAYS
1 2 2
2 4 8
3 25 75
4 59 236
5 16 80
6 10 60
7 3 21
8 3 24
9 1 9
10 2 20
Others(12) 4 48
TOTAL WA 129 583
WEIGHTED AVERAGE 5
C H A P T E R T H R E E 61
result implies that most businesses conducts independent sale and promotions of
their products or services five times a year. This figure will be useful in computing
revenue and other related amounts for the next five years from 2019 to 2023.
service.
Table 18
n = 360
ADVERTISEMENT TOTAL
RANK
CHANNEL RESPONSES
Posters
214 2
(Traditional)
TV and Media 145 4
Online 321 1
Friends 199 3
TOTAL *879
*Multiple Response
C H A P T E R T H R E E 62
Table 18 shows that customers of the general public are informed of a sale
approach and through their friends or oral passage of information in the society
where they co-exist. This implies that the buyers of this era mostly prefer online in
Table 19
n = 360
WAY OF
TOTAL PERCENTAGE
BUYING
Table 19 shows that most customers prefer buying personally than ordering
and buying online. This means that most people go to the store or malls personally.
Hyper Deals operates as a leisure walk advertising app which means the nearer
the user to the store the better the ad will pop up on their smartphones.
Table 20 in the next page presents what operating system the customers
Table 20
n = 360
OPERATING
TOTAL RANK
SYSTEM
Android 284 1
Is 101 2
Windows 10 3
Others 1
TOTAL *396
*Multiple Response
The table shows that Android is the mostly used operating system of the
smartphones the customer respondents are using. Hyper Deals is an Android app
OS. This implies that most of the customers are using smartphones compatible of
downloading Hyper Deals. A greater chance for business for the application.
C H A P T E R T H R E E 64
Table 21
n = 360
ADVERTISEMENT TOTAL
RANK
CHANNEL RESPONSES
Posters
140 2
(Traditional)
TV and Media 129 3
Online 322 1
Friends 98 4
TOTAL *689
*Multiple Response
approach like posters and billboards. This implies that Hyper Deals will have a
promotion of their preferred products or services. Businesses can gain using Hyper
Table 22 presented in the next page shows the interest of the customer
Table 22
n = 360
TOTAL
PERCENTAGE
RESPONSES
promotion while the rest prefers not to be updated and some are yet undecided.
This implies that most customers are very interested in the notification feature of
Hyper Deals
page.
Table 23
Hyper Deals
n = 360
TOTAL
PERCENTAGE
RESPONSES
Table 23 shows that most of the customer respondents would like to receive
their personal preference. This implies that most of the customers are interested
Hyper Deals.
C H A P T E R T H R E E 67
respondent to know a sale or special promotion through the use of Google Map.
Table 24
n = 360
TOTAL
PERCENTAGE
RESPONSES
sale or special promotion with the integration of Google Map with a share of 780
percent. This implies that customers are also interested in Google Map integration
of Hyper Deals. An interest in the app of the customers will drive them to download
Future data for the population of the target market is needed in this study to
services that would in turn aid the proponents compute the amounts as to revenue,
calculation of the marketability and feasibility of this study. Since historical data for
the business user is not available, it is assumed that the current population of the
three malls will be constant for the next five years. It is assumed this way since
they are primarily into renting space and need an expansion of their establishment
to realize adding tenants. It is seen that the three establishments will have no
Table 25
SM CITY
500 500 500 500 500 500
CEBU
ROBINSONS
200 200 200 200 200 200
GALLERIA
AYALA
CENTER 200 200 200 200 200 200
CEBU
TOTAL 900 900 900 900 900 900
C H A P T E R T H R E E 69
DEMAND
something the market will buy for a reasonable price. It is the balancing factor of
the supply in the market. The demand for the service app comes in with the quality
of the service that the customers are willing to avail at a specified price. It surely
represents the eagerness of the customers to avail of the service at a given price.
The proponents conducted a survey and the results are provided in prior and
proposed service.
proposed project for each year. It gives an overview to the management and
investors and other parties interested in the business. It will determine if there will
demand for the proposed application for the next 5 years. The projected annual
the respondents who are willing to avail the service application multiplied by
projected population of the target market. The application will commence and will
be available to the market on January 2019. The remaining months will be used to
compute the projected demand for the particular year. On the following year, the
C H A P T E R T H R E E 70
proponents will be using the 12 months since the application will be operating for
the entire year. In the next page is table 26 showing the projected annual demand
Table 26
interested in using the app, the average number of days of advertising of business
SUPPLY
order to define the potential number or quantity of what a business will contribute
C H A P T E R T H R E E 71
or disseminate to the market. It is a guiding and computing factor in order for the
market to adjust as to its quantity and price needs. Law of supply and demand
states the when supply is higher than the demand, there is a surplus, so the price
will go down, and many people will avail products or services affected by the
surplus supply. On the other hand, when the supply is lesser than the demand, the
price will go up since less people can avail of a product or service and it creates a
competition between the buyers. We can observe that every movement of supply
affects the market and its behavior. In the case of Hyper Deals, there is no concrete
supply need for it is an application, uploaded once in Google Play, and let the
people download the app. It can be concluded that Hyper Deals have infinite
supply in the market as it will always be available for downloading in Google Play.
No specific supply can be drawn out from this study. But the proponents have
studied related supply study as to the application to give the readers and users of
Table 27
PROJECTED
COMPETITOR'S PROJECTED
ANNUAL
YEAR SALES ANNUAL
DEMAND (Table
PERCENTAGE SUPPLY
26)
2019 21375 80% 4,275
2020 21375 80% 4,275
2021 21375 80% 4,275
2022 21375 80% 4,275
2023 21375 80% 4,275
C H A P T E R T H R E E 72
Projected annual supply for Hyper Deals services is 4, 275, 20% projected
adding 20% of the applications or websites closely related to Hyper Deals. They
are Lozada, Shoppe, Zalora and Facebook. The proponents assume that these
related applications and websites have an equal share of 20% each. Hyper Deals
is the first of its kind to be introduced in the market but there are related
100%. Since there are close related business like Hyper Deals, competitor’s sale
percentage is 80%. That is why the supply is 20% of the annual demand of Hyper
Deals.
Table 28
PROJECTED PROJECTED
PROJECTED
ANNUAL ANNUAL
YEAR DEMAND-
DEMAND (Table SUPPLY
SUPPLY GAP
26) (Table 27)
2019 21375 4,275 17,100
2020 21375 4,275 17,100
2021 21375 4,275 17,100
2022 21375 4,275 17,100
2023 21375 4,275 17,100
The projected demand and supply gap is equal to 17,100 since the demand
of the service of Hyper Deals as computed in table 26 is 21, 375 and the supply is
C H A P T E R T H R E E 73
4,275 as shown in table 27. To get the projected demand and supply gap, demand
market, that is earned by a particular company over a specified time period. Market
share is computed by taking the company's sales over a period and dividing it by
the total sales of the industry over the same period. Hyper Deals’ projected market
Table 29
PROJECTED
DEMAND- MARKET PROJECTED
YEAR SUPPLY SHARE MARKET
GAP IN UNITS SHARE %
(Table 28)
2019 21,375 4,275 20%
2020 21,375 4,275 20%
2021 21,375 4,275 20%
2022 21,375 4,275 20%
2023 21,375 4,275 20%
C H A P T E R T H R E E 74
The projected market share for Hyper Deals for the next five years has been
a constant 20% since the same population is considered in computing such values
in the table.
MARKETING STRATEGY
business or service distribution in order to achieve a certain goal in the long run.
Hyper Deals must be coordinated and organized in a manner that the business
user will not regret of using it in order to sustain them using the app and to be able
usage of Hyper Deals is also one of those goals in which the proponents are taking
into consideration. In order to meet these plans, proper and right marketing
of the application, the general public who will use the app and the ultimate user,
the business entities. Marketing strategy is very important for this will be the
starting point of introducing the app in the market and also its sustainability in the
Marketing strategy can be seen and perfected by these following criteria of a good
spreading the word about the proposed service of Hyper Deals. Gaining customers
proponents will have to build strong foundation about the business for the potential
customers to put their trust in it. The proponents have formulated the following
C H A P T E R T H R E E 75
advertising and promotion schemes of Hyper Deals introduction to the market. The
of the services proposed. The type of advertising option will be based on the
chosen target audience and what the effective ways to reach as many of them as
possible in a lesser cost. The proponents also evaluate the advertising options to
the kind of environment that the proposed service have. There will be promotions
to create an incentive to buy upon availing the service. The following lists are for
Coupons
discount and other related rewards when presented to the partner business stores
of Hyper Deals. In this strategy, more buyers will be interested to shop to the
The customer user of the application can accumulate reward points in every
purchase he makes using Hyper Deals and the accumulated points may be used
to get discounts and other related merits from the partner businesses of Hyper
Deals. In this way, more buyers will be attracted to shop to partner businesses of
Hyper Deals due to the merits and rewards the customers can get.
C H A P T E R T H R E E 76
Online Advertising
For reaching and interacting, sharing and creating content with others
through online communities. Facebook and other social media platform might be
Facebook page and account is also part of this advertising strategy. The
screenshots of the Facebook account and page of Hyper Deals is shown in the
next page.
Event Sponsorships
whole, Hyper Deals plans to sponsor small events through advertising the event,
like back to school every June or August of some universities in Cebu and the
events.
Center Cebu and Robinsons Galleria in order for the business entities and the
general public to know the application. There will also be posters in University of
San Jose Recoletos main and Basak campuses. The posters will include QR
Promotions
Free trial – the app services, advertising, will be free of use for the
first advertisement for a week for the business users who will
Free use – the app is off free use for the general public who will use
online and hard copy. Hard copy will be given upon request of the
business user.
Logo design is important for a business for its identity and unique
commercial personality in the market. Having a business name and/or logo will
C H A P T E R T H R E E 78
give the business a sense of confidence and dignity in the market, specifically in
advertising industry. The image shown below is the logo and name of the business
that will manage the affairs of Hyper Deals. Its components are discussed why
such image, color and font are designed to a specific purpose. This image is given
in exchange of the packaging and product design since we are into application
The Colors Red and Blue– this symbolizes that Hyper Deals is
a Filipino-made application for the colors, red and blue, are the
patriotism.
business entities.
present generation.
C H A P T E R T H R E E 79
The Heart form – every service Hyper Deals will provide to its
Term of sale
paid through online banking, credit and debit card, remittances and other app
offering online payment. This online payment and remittance mode of paying the
services are included in the features of the application. The service fee for using
the advertising feature of Hyper Deals are to be paid immediately upon registration
of the advertisement in the app, unless agreed otherwise. If the business user fails
to comply within the net of thirty (30) days, he will automatically be in default of
payment. If the business users fails to make payment by due date, the business
user will then be charged to an interest of a half (0. 5) percent per month interest
on the unpaid amount and with the suspension of receiving the future services until
full payment is made. In the event that the business user have not paid yet the
payable amount for ninety (90) days from the day of the term, the customer shall
attorney’s fee. If there are any reasons to doubt the solvency or credit of the
business user, the proponents reserve the right to ask for prepayments or
Channel of Distribution
The sole distributor of Hyper Deals in the market is Google Play. Google
Play because Hyper Deals is made for Android users only. Google Play will be
utilized to be the distribution channel of the app in order to be able to avail of the
app’s services. Business entities and general public who wish to avail of the
services just need to go to Google Play store, an online store for Android apps.
Downloading the application through Google Play is just as easy as eating a cake,
inputting the necessary information that the server prepared by Google Play
management will then let the user download Hyper Deals. The application is also
open for the public to know if there are promotions or sales happening in an
individual’s favorite shops. The application will be downloaded for free for both the
Pricing Policy
business. These are the blood of the company in order to bring money or return in
order to continue business operations. Before these goods and services are
Product assembly and service organization involves materials, both tangible like
raw materials and intangible like patents, that is covered by a certain cost. These
costs are necessary in order to generate the goods or services. In order to cover
these certain costs, the business needs to generate or sell the market offering
more than the cost it incurs. That is why the product or service needs to be offered
in the market with a certain price. Price is considered to be the monetary exchange
of the good or service a consumer want to buy. Right and proper pricing of these
market goods will enable the company generate profit thus realizing its main
proponents will show how the service given by Hyper Deals to its target users, the
businesses, price for the use of the apps features and services. The proponents
Table 30
Range
ALLOCATION PERCENTAGE
RESPONDENTS
OF OF
WHO HAVE GIVEN
PRICE RESPONDENTS RESPONDENTS
THEIR BUDGET IN
OPTIONS WHO AS TO THE
HYPER DEALS
ANSWERED CHOSEN PRICE
ADVERTISING
THE FIELD RANGE
Based from the above data, the proponents concluded that the price range
proponents may somehow asses the prices between the price range for the pricing
of the services the Hyper Deals will collate. But in consideration to competitor
based and future contingency costs, it is more appropriate and favorable to base
the final price on such existing outside competitors. The proponents bases the
pricing of the service to the existing almost related online advertising business of
Facebook.
to be offered to the business entities in the market with the Facebook Ad rates.
Facebook pricing is not fixed as it depends upon many factors like the distance the
ad must reach and the specific group of people who may receive the ad with its
C H A P T E R T H R E E 83
location. The pricing depends upon the specific industry of the product or service
to be advertised and the factors affecting the advertisement like the distance it
reached in miles, the click per ad and the click on the website of the business
creating and posting the ad in Facebook. The rates are shown in table 31.
Table 31
Facebook Ad Rate
CPM stands for Cost Per Mile or the cost every 1000 views or
impressions of the ad, CTR for Click Through Rate or the percentage of
impressions per click and the CPC for Click Per Click or the cost per click to the
Table 32
% Basis for
Final Price FINAL
using Outside BASIC
Industry CPM Competitors PRICE
Current Price
The final basic price of the Hyper Deals advertising service is calculated
considering the related market of this online advertising service, Facebook Ad. The
proponents deemed that 50% of the related market rate is sufficient as of the
C H A P T E R T H R E E 85
moment since Hyper Deals is new in the market. Different industries are given
different price, the same with Facebook, to have close competition in online
advertising industry. This price will then be the final basic price to be used in the
start of the operations of the business. The final basic price is computed as an
average per industry per ad factor. CPM is PHP148.05, CTR is PHP68.17 and
CPC is PHP10.25.
proponents. The purpose of the proponents to provide low cost advertising has
been realized. Posting prior to the actual sale of the business entities may also
include discount which is up to 10% depending on the days prior to its actual sale.