Super segmentation- combining several portions/ segment of the market as one because of an

exploitable common similarity among those market

*Can only use super segmentation if:

A. Common exploitable similarity

B. Upper & Lower segments

*If the product is for mass consumption there is no need for super segmentation.

Employing the marketing mix (4Ps) People, Product, Price, Place, Promotion.

Level of Acceptance

Origination of Info

Transmission of Info

Receiving of Info

Store Data Action Initiated

Understanding Acceptance of data

Storage

Reference

Information System > Communication: Promotion Advertising

Mechanism of:

Information origination Transmission Reception Interpret Action (feedback,

Understand/accept/ignore, evaluate& measure performance, reward/punish performance, pay
debt/ collected payables, promote/fire employees)

Management Information System

Intra-Company among all units

1. Cost 10. R & DD Projects

2. Revenue Sales 11. Product Evolution
3. Actual performance vs. quota & 12. Balance Sheet
symbols 13. Compensation Program
4. Accounts Payable/ receivable 14. Employee Attendance Record
5. Production volumes & schedules
6. Price changes
7. Spoilage
8. Returns
9. Defections
Transaction Processing System

-external link to channel/ customers/ collaborators/ consumers

1. Suppliers
2. Customer (when they give feedback/ market
intelligence, when they push strategy)
3. Advertising agency
4. agents
5. Radio/TV/Print Media

1. Credit Card Transaction

2. Complaints/ Suggestion

3. Purchase Record Details

4. Credit Extensions

5. Business Volumes

6. Customer Profile

Inventory Management and Control

1. Prevent/ minimize outlet stock out of your product: by establishing inventory recorder level
2. Time & place utility of your deliveries
3. Optimize your transport capability cost: establish economic recorder quantity
4. Warehouse is timely notified
5. Transport schedule

*Information technology is a value

Market Research – where the company gets the feedback from the consumers of the result of
advertising and promotion

Information Technology

• With infrastructure: Bus, train, roads, bridges, and skyways in communication

Physical:

1. Computers
2. Smartphones
Soft:
3. RFID (Rapid Frequency Identification
Device) 1. Social media
4. Store Supply Chain 2. Applications
3. Messages in social media
Obsolescence – high risk information technology

Customer Relations Management

Customer- centric- keep the customers in our minds, heart and abilities

Problems

Customer
Need Wants

Goals

Major Aspects of CRM

1. Identifying and building customer and customer relations

a. Prospecting - lifestyle observation, customer profile, business natural volume, geographic
locations and preferences
b. Qualify your prospects based on demographic data/ lifestyle data obtained
c. Salesmanship
-answer me a question/ question me an answer
-never answer with yes or no
d. Close the deal and give your virginity promise less deliver more.

Manage existing customers & retain customers for a long lasting mutually beneficial relationship by
customer experience:

a. Condition that customer go through

b. Situation

Technique of Prospecting:

• PCM/ Pan Company Marketing Technique

o PCM suggest that all employees of the company should be well versed on the products
lines, their attributes, their points of parity & differentiation with other products (from
Chairman- CR Cleaners).

Customer Experience can be:

1. Negative
• Leads to dissatisfaction which leads to complaint and stop purchasing (forgetting and loss of
sales or resolving complaints & makes customers positive experience)
2. Positive Experience
• Leads to positive experience > Satisfaction > positive reinforcement > and goes to repeat
purchase > brand loyalty
Brand Loyalty

Brand loyalty customers

-retain this customer

-have lasting relationship

Touch Points- either personal and inpersonal (websites, order complaints, system resolution)

• Watch our touch points

1. Marketer/ sales man 4. Deliveries
2. Product – price, attribute, image a. Transport
(computer image), Brand b. Handlers
(packaging, label, advertisement, 5. Product handling and warehousing
promotions) 6. Advertisements
3. Recorder system a. Promise
a. Manual b. Endorser
b. Online 7. Telephone operator
c. Automatic- inventory recorder a. Security guard
quantity b. Secretary

Enhancement of CRM

1. Modern Customer Contacts (ex. SNS)

2. Information Technology (Inventory Reorder Equipment Monitoring)
3. Enhancement E-commerce (Ex. WWW/ inbound system of information flow (customer problem
& complaints) outbound system of information flow (advertisement, product education
(pamphlets) & customer problem resolve)
4. Data Warehousing
a. A storage of operational (sales performance) data Use for decision
b. Storage of customer data making & forecasting
5. Data Mining
• Extraction of actionable data from large repositories of information
6. Marketing intelligence & information system in order to monitor competition action
7. Total quality management
Ingredients to Lasting Profitable Relationship

1. Experience
2. Enhancement- to level up
3. Relationship
a. Establish exchanges
*Product for money
*Suggestions- actions
*Problems/ complaints- solutions
1. Prospecting
2. Understanding the demographic characteristics of the customers
3. Qualify your prospects
4. Close the deal – the prospect becomes the customer

Develop Exchange

a. Give discounts
b. Pull Strategy

Maintain Exchange

a. Do enhancement
b. Do push strategy
c. Category management – systematic merchandising

Business Process Reengineering (BPR)

Example: Business Process Outsourcing (BPO)

 BPR must involve radical thinking approach

Benefits of BPR

1. Cost reduction
2. Improvement in profit
3. Convenience offered to the customer/ maintenance of the quality of the service
4. Improvement in the overall efficiency of the organization

Information System

Management Information System (MIS)

- information within the company or the result of transaction between customers and company

1. Planning the Goal:

a. Sales volume & amount
b. Your target customers
c. Your potential customers
d. Your target sales growth
e. Your target market share
f. Your brand positioning target
 g. Your product/ brad portfolio target
h. Your company profit goals

Management- achieving result through and with other people

Example:

1. Ten years’ plan- guides performance of people

2. Standard of performance- measures performance of people

Transaction Processing System

1. Information between the company and the clustomers

Information System and Technology -> Communication

Information System

• Adjustable platform to achieve results

>> Mechanism to create understanding and acceptance involving:

1. Origination
2. Transmission
3. Receiving
Information
4. Understanding
5. Acceptance
6. Acting on

Information Technology

• Medium to drive the system

>> Infrastructure uses internet and devices used for logistics, channels of distribution and other
relevant external organization.

SUPPLY CHAIN (Value Creation)

Raw Material Point of Conversion

Suppliers Marketing

Value creates obligation to comply with Value = contract with supplier

contract
Assurance – is the benefit based on contract

>> Sales

>> Continues and reliable source of availability of raw materials

Point of Conversion Marketing Production

Value

1. Product Formulation
2. Guaranteed Supply of Raw materials

Benefit:

1. Finished Goods
2. Facilitate the operation of production to produce goods

Value

1. Marketing
2. Wholesales

Value: Trade Discount (Benefits)

1. Distribution of Products 1. Better/ Higher profit

2. More Sales 2. Lower cost of goofs

• Value creation is the result of conjoint analysis

• Price/ Value Relationship- conjoint analysis

Value – created in order to yield a benefit – received by: (a company, a person, an organization)
Value is created by the company, person, and organization

*Benefit goes to the creator of value to the recipient or object of value >> Reciprocal benefits or
mutually beneficial

-> Value is anything that is done to:

1. Provide convenience to consumers

2. Provide easy steps to operate a product
3. To provide comfort or pleasure
4. Provide savings
5. To increase market share
6. Improve profit
7. To position the brand at superior level
8. To improve corporate image
Example: Company A manufactured 2 product (value)

Benefit 1

1. Pleasure
2. Fun
3. Good taste

Benefit 2

1. Company to money

Strategic Marketing Characteristics:

1. Strategic Marketing should be goal based
2. Strategic Marketing should be focused
3. Strategic Marketing should be coordinated action
4. Strategic Marketing should be pro-active action
5. Strategic Marketing should be responsive
6. Strategic Marketing should be optimal

*Marketing coordinates with production process

*Marketing coordinates with the finance to control the cost + margin > price should be forecasted too.

Strategic Marketing > Business Process

Characteristics:

1. Goal- based
- business process
- product/ service
- customer
- geographic
- benefit
2. Focused- you have 2 desired result to achieve
3. Coordinated- unifying actions of all those involved
a. Involves many people –internally in the company and externally in the supply chain.
4. Proactive Action- (anticipatory)
a. Proactive- doing something before problem occur (consumer directed)
b. Preemptive- doing something before the problems occurs (competitor directed)
5. Responsive- acting after a complaint, problem, issue has been voiced out.
6. Optimal- (minimum/maximum) just right.

Time Series Analysis Method

• Demand changes come from 4 primary sources
1. Underlying Trend
a. Generation change- example: baby boomers is decreasing population
b. Customer preferences
 c. Technological advances
2. Economic & Trade Cycle
a. Prosperity/ Depression/ Social Unrest
Tight economic condition – high interest/ high inflation
3. Randomness
a. Style, innovation + Inventions, preference
b. Something that happens that was not anticipated
4. Seasonality
a. Typhoon/ summer/ rainy/ unemployment/ Christmas/ Valentines/Undas / Enrollment/
Graduation

Forecasting
• Necessary to define the goals
• Planning activity
• Assumptions head to forecasting

Other forecasting method

A. STIMULATION METHOD
– technique that is useful in studying Marketing Systems:

1. Sell directly to consumers/ enacting the actual scene

2. Sell to wholesalers & retailers
3. Sell through interenet
4. Sell without cass

*Important in planning and controlling

Controlling- monitor, measure & correct performance

Classes of Stimulation

1. Through computer models of the behavior of Marketing system components

a. Marketer
b. Sales force
c. Logistics
d. Outlet
e. Customer & consumer
2. Computer models of different Marketing Instruments:
a. Prices
b. Advertising
c. Promotion
d. Push & pull strategy
e. Credit
f. Discounts
 3. Technology tools
4. Marketing games
B. EXPERT SYSTEM
• Computer programs which contains human knowledge and expertise to generate reasoned
advice or instruction.
C. NEURAL NETWORKS
• Provide the marketer with the ability to design a decision- support tool in less time and less
effort.

>> Neural Systems used structured input and output data to develop patterns of decision
making.
• Input (what you cost)
a. Invest in advertising
b. Improve product and attribute
c. Improve brand
d. Improve recall
• Output (what you get/ result)
a. Popularize product
b. Popularize sale
c. Develop loyalty
d. Purchased first before any brand
D. DATA MINING
• Analysis of a large mass of data
E. CONJOINT ANALYSIS
• Concerned with the measure of psychological judgement or information
a. Consumer preferences
b. Convenience in acquisition
c. Ease of use/ simplicity of procedure
d. Accessibility of product & service
e. Product image & reputation

Uses of Conjoint Analysis

1. Product and service design

2. New product introduction & product not to sell
3. Price/ value relationship
4. Attitude measurement
5. Promotional congruence test
6. Functional and symbolic product character
7. Ranking hypothetical product against existing competitors
8. Suggesting modifications to existing products
 F. RULE-BASED FORECASTING
• Combines expert system & quantitative technique- linear regression
a. Casual
b. Dependent variable

Judgmental Bootstrapping

a. Creates structured procedures from experts judgment for marketing the product.
b. Use for Repetitive forecasting chores:
• Linear Regression Analysis
• Casual Variable
• Dependent Variable

Approaches to Forecasting

1. Consultation Method- Real Time Info

>> either thru:
a. Survey – market research
b. Personal questioning
c. Experts (marketing managers, advertising agency, marketing professionals, DTI)
2. Statistical Extrapolation
a. Historical data on consumption (demand), sale (capacities, supplier)
b. Regression analysis
c. Determine historical rate of changes in: Demand, Pricing, Supply
d. Use historical rate of changes to project your future: Demand, Pricing, Supply
e. Linear Regression Analysis
- Casual Variable: What can cause something to happen?
- Dependent Variable: What results or outcome is obtained from the cause

Example:

Casual Variable:

1. Increased advertising budget

2. Change of package of sardines to easy open can
3. Increase Price

Dependent Variable

1. Improve the positioning of the brand

2. Increase in sales, market, share, loyalty
3. Realize higher sales- elastic demand
4. Realize same sales- elastic demand
5. Realize reduced sales- elastic demand
DELPHI METHOD
• Identify as many experts
a. Several experts
b. Same set of questions
c. Just listen and note
d. Don’t argue with experts
e. Collate all response & categorize them
f. Identify the responses that are common among all experts
g. Use the information derived from the common response in your forecasting
h. Don’t reveal the identity of one expert to another expert

Conclusion on Delphi Method

1. Keep the anonymity of experts from each other/ keep your expert anonymous.
2. The responses that are common or the same among all experts are to be used in you
forecasting. All other responses are discorded.

*Responses should be unanimous to be used in forecasting

DEMAND MANAGEMENT
Tools in Forecasting

1. Scenario Planning- PESTEL/ Real time info

2. Knowledge-based System (KBS) App/ Historical Info
a. Demand- historical demand
b. Consumption pattern- vol/ P sales
c. Demographic charges
d. Income charges
e. Employment
f. Inflation
g. Raw materials
h. Capacities

*Valid assumption will not support your forecast

Forecast: educated guess but it is systematic

Forecast = quota, projection, forecast

Mistakes of Forecasting

1. Under forecasting
2. Over forecasting

*Inaccurate Forecast = unsold product (effect)

Basis of Forecasting

1. Corporate Budget
2. Profit Planning
3. Infrastructure
4. Labor/ number of personnel

Under forecasting effect

1. Unable to meet the demand

2. Stock out
3. Opportunity cost

Deviation

• about the actual performance vs. forecast

Positive Deviation: selling more than forecast

Negative Deviation: selling less than forecast

Deviation Positive Negative – Tolerance Limit

Deviation in Forecast

1. Sales Target
2. Pricing Target
3. Funds

Forecast Value
1. Define the sales volume over 1 year, 5 years and 10 years
2. Funds budgeting
3. Infrastructure- build warehouse, buy trucks, buy machines and buy new related technology,
establish a branch
4. Customer acquisition and retention

Scenario Planning
• Includes vast number of variables in the environment

P- Public Policy: government, politians, regulations

E- Economy: employment, unemployment, wages and disposable income, interest rate and inflation,
lending, exchange rates; import and export.

S- Social Changes: Demographic changes, female and male ratio, family size, education level, standard of
living

T- Technology advances: Internet

E- Psychological Environment: forest, flood control, garbage, biodegradable

L- Legal: laws and regulation and orders= compliance, corrections, renology, criminology

Knowledge-Based System

• Facilitated made easier by knowledge-based system that can strike knowledge from user to
used.

Scenario Planning Strategic Planning Decision 1. They challenge current

mindset
Making 2. Stimulate strategic thinking
Knowledge-based System
process
3. Results and effective
decision
4. Suggest innovative strategies
5. Helps manage uncertainty
6. Contingency planning

FORECASTING
• It is a managerial planning function that estimates future trends, problem and opportunities in
order to established the desired results.

>> estimating: estimated guess

>> when you forecast, you establish assumption- supports your estimates of desired result (goals
and objectives)

>> uses real time historical data

REAL TIME DATA HISTORICAL DATA

1. Customer Feedback- suggestion and 1. Previous year sales record

problems a. Forecasted sale
2. Consumer Feedback- suggestions and b. Actual sales
problems c. Deviation
3. Competitor actions- price chargers, 2. Competitors performance records
customer, addiction and product product brand position
improvement, placement, a. Market share
advertisement, brand positioning b. Positioning
4. Business Trends- foreign exchange, c. Sales
interest rate, SRP, Commodities, Price, d. Placement
fluctuation, oil, grains, imported 3. Statistical data
5. New business/ new product/ brand 4. Expert opinion
threats
*To support your sales forecast: Forecast =
6. New marketing principles
quota = target = goal (interchangeable used)
Primary focus on Forecasting:

Sales Product line

• Raw material cost

• Possible offering form competitors
• Population growth
• Charges by public company

Vision Statement: To become the premier food company in the Philippines

Mission Statement: To manufacture consumer food products that meet the needs and wants of families
in the Philippines

Goals:

- To manufacture and market and earned and processed meals

- To manufacture and market processed fishes
- To manufacture and market fruits and vegetables
- To manufacture and market dairy products

Vision- Board of Directors

Mission- President

Goals- VP President, VP Marketing, VP Financial, HR

Vision and Mission and Goals/Objectives: statement of desired results

SUPPLY CHAIN
- Shows the movement of a raw material to the consumers in the form of a finished
goods

CHAIN:

1. Raw Materials (Resource materials planning)

- Air: Gasses
- Land: Vegetables and Minerals
- Sea and water: Fish and sea creatures
- Fabricated raw meat
2. Inward Logistics
- Transport
- Storage of Raw Materials
3. Point of Conversion
- Raw materials are converted into finished goods
- Marketing
>> source your suppliers
>> Select your suppliers based on quality and price
>> Contract with selected suppliers
 - Sales
>> brand management
>> market research
>> sales
>> customer service
4. Finished Goods
5. Outbound Logistics
>> transport
>> warehousing
>> administration
>> inventory control
6. Channels of Distribution
>> wholesalers (trading company)
>> retailers (puregold)
>> Chains (7/11, Ministop)
>> Agents
>> Supermarkets
>> Sari-sari store > Customers
7. End Consumers

STRATEGIC MARKETING
1. Develop a course of action game plan from each offering in order to achieve the mission and
vision of the company
2. To define goals, objectives and targets over a short, medium and long term period
3. To develop, maintain and retain lasting business relationship with the external members of the
supply chain (collaborators)
a. Suppliers
b. If a firm has no logistics department, it will be the transporters/ trucking/ warehouses
c. T.V. Networks/ Radio Stations/ Media/ Advertising Agency
d. Channel members (customers) 30 % of the business come from the 20 % of your customers
e. Consumers
4. To stay alert to the moves and actions of competition and devise
a. Preemptive or counter offensive action
b. Defensive action - promotions
c. Proactive action to effectively control harmful actions of competitions- solving the concerns
of the customers
 5. Strives to protect the market share, brand positioning, product placement, and sales of
company offering.

Market Shares: portion of the market population that is purchasing/ is loyal to your brand
Positioning: achieving a superior position for your brand in the consumer’s mind.
a. Fast and easy recall
b. Favorable images
c. Willingness to purchase

Placement: making the product present where the consumers buy the product

6. To play a major role in the profit goals of the company

2 variables profit of goals:
a. Cost
b. Margins
7. To create, maintain and retain favorable marketing image among consumers/ customers,
collaborators, shareholders and government.
8. To be a responsible corporate citizen by complying to all rules and regulation

Problem Solving and Decision Making Technique

1. Apparent problems are identified
Example: sales is fast deteriorating
2. Investigate and evaluate the situation
Example:
a. Product
b. Positioning
c. Cost + margin
d. Product placement
e. Objective product packaging
f. Delayed delivery
g. Advertising
 Agency
 Network
 Air time
 Cost
3. Identify the real problem
4. Generate option/alternative courses of action to solve the real problem
5. You may choose 1 options or all options to solve the real problem
6. Devise your strategy – the game plan – the implementation
a. Apparent Problem
b. Investigate the situation
i. Is the offering acceptable
ii. Customer service quality
iii. Pricing too high
c. Identify real problem issue – state the problems in all situation
 i. No sales due to stock out
ii. Customers going to other company
iii. Price is more than the competitor
d. Generate options
e. Choose options/ alternatives
f. Revise strategy