Chapter 3: LESSONS 1 and 2 • Buyer – consumers who actually make the
purchase
Consumer & Market Analysis/STP
Strategic Marketing Process, Defined
• Seeks to establish a clear and concerted direction
(vision/mission) for all marketing activities of an
organization.
• Includes plans to reach specific goals/objectives.
STEPS in the Strategic Marketing Process:
1. Mission Identification
VISION – what the firm wants to become in the
future; ideal future scenario
MISSION – defines the firm’s purpose of existence’
reason for being, its primary customers, its
products and services, and its geographical area of
operation.
2. Situation Analysis – conduct of SWOT Analysis
(External & Internal Environments)
3. Objective Setting – Objectives must be “SMART”
4. Marketing Strategy Development – involves
market segmentation, identification of target
market, positioning, selection of broad marketing
strategies and translating them into action plans.
5. Strategy Evaluation and Control – involves
periodic monitoring and evaluation: identify
deviations from the plans and implementing
corrective actions accordingly.
CONSUMER MARKET - MICROECONOMICS
• Includes all individuals and/or households who
purchase products and services for personal
consumption.
• Consumers normally purchase on smaller amounts and
gradually over a period of time, and they tend to be
emotional with their purchases (some tend to be
impulsive)
Consumer Buying Roles:
• Initiator - initiates the purchase; idea, suggest
• Influencer – influences others to buy
• Decider – the one who decides on what to buy
• User – those who actually use the product/service
(though necessarily the one buying)
Types of Strategic Marketing Strategies (Porter’s
Generic Strategies)
• Cost Leadership – can be achieved through low
cost supply contracts, overhead expense
control, economies of scale, comprehensive
cost-cutting efforts.
(Example: Swedish furniture retailer IKEA
revolutionized the furniture industry by offering
cheap but stylish furniture. It was able to keep its
prices low by sourcing its products from low-wage
countries and by offering a very basic level of
service)
• Differentiation – seeks to achieve superior
product attributes & features that are different
from rivals. Results in pronounced consumer
preference in company’s products.
(Example: iPhone is differentiated as a
smartphone with excellent camera (retina lens)
features and an unparalleled anti-virus/internal
security system)
• Focused – efforts are concentrated on a
relatively small but profitable market. Products
& services offered ensures that market needs
and wants are addressed and satisfied.
(Example: S&R targeting high-end market selling
only imported products and extending warehouse
club membership, incentives and good customer
service)
Sub-Categories of Strategic Marketing Strategies
➢ Integration Strategy
• Forward Integration - acquisition or taking control
of distributors or retailers
• Backward Integration – acquisition or taking
control of suppliers
• Horizontal Integration – acquisition or taking
control of competitors/rivals
➢ Intensive Strategy
• Market Penetration – increasing market share by
intensive marketing efforts
• Market Development – expansion
measures/increasing geographic presence
• Product Development – innovation; creating new
or improving existing products
➢ Diversification Strategy
• Related Diversification – establishing businesses
that are related to each other
• Unrelated Diversification – establishing
businesses that are unrelated to each other
➢ Defense Strategy
• Retrenchment – downsizing; reduction of costs
primarily manpower
 • Divestiture – divestment; selling of some assets
that are non-performing
• Liquidation – selling off of remaining assets for all
its worth; bankruptcy

The Tactical Marketing Process – operational plan

1. Marketing Strategies
2. Action Plans/Tactics
3. Marketing Activities
4. Activity Timetables
5. Responsibility/Accountability
6. Activity Budgets
7. Monitoring and Control

MARKET SEGMENTATION – subdivide/ group the

market into segments

• The process of defining and subdividing a large

homogenous market into clearly identifiable segments
having similar needs, wants, or demand characteristics.
Its objective is to design a marketing mix that precisely
matches the expectations of customers in the targeted
segment.
• Few companies are big enough to supply the needs of
an entire market; most must breakdown the total
demand into segments and choose those that the
company is best equipped to handle.

SAMPLE : Four basic factors that affect market segmentation are:

1. Clear identification of the segment

2. Measurability of its effective size
3. Its accessibility through promotional efforts
4. Its appropriateness to the policies and resources of
the company.

Marketing Research
• A function of the firm’s MIS (Marketing Information
System) which is the gathering, analysis, and
timely distribution of information for the use of
marketing decision makers.
• Marketing Research is the function responsible for
acquiring and evaluating market and consumer-
based information for decision-making and the
determination of marketing strategic direction.

STP : Segmentation, Target Market, Positioning

 Brand Positioning

• A marketing strategy that aims to make a brand occupy a

distinct position, relative to competing brands, in the
mind of the customer. ... Once a brand is positioned, it is
very difficult to reposition it without destroying its
credibility. Also called product positioning.

VALS (Values, Attitudes, Life Styles) Segmentation

Model

Target Marketing

• Involves breaking a market into segments and then

concentrating your marketing efforts on one or a few
key segments consisting of the customers whose needs
and desires most closely match your product or service
offerings. It can be the key to attracting new business,
increasing your sales, and making your business a
success.
• It provides a focus to all of your marketing activities.

An Ideal Target Market Must BE:

✓ Substantial
✓ Financially Capable Brand Positioning - Sample
✓ Reachable/Accessible
✓ Homogeneous
 • “We’ve got it all for you”
• “We find ways”
• “Ito ang tama!”
• “The Total Bookstore”
• “Melts in your mouth, not in your hands”
• “America’s Best Tasting Hamburger”

Brand Image

Unique Selling Proposition

• A statement that briefly outlines how your organization,
product or service is different from that of your
competitors. It helps make your organization a better
option for your target audience, and why if he or she
choose you over this competitors.

Attributes of a Good Brand Image

• UNIQUE
• BENEFICIAL
• CREDIBLE

Communicating a BRAND
✓ Packaging
✓ Labeling
✓ Price
✓ Advertising
✓ Endorser
✓ Commercial Slogan

Commercial Positioning Statements

• “Hate Late”
• “Langhap-Sarap”