PRINCIPLES

OF
MARKETING
 CHAPTER 3
MARKET
OPPORTUNITY
ANALYSIS and
CONSUMER ANALYSIS
 STRATEGIC MARKETING
PROCESS
Mission Situation Objective
Identification Analysis Setting

Strategy Marketing
Evaluation and Strategy
Control Development

1. Cost Leadership
2. Differentiation
3. Focused
Step 1: Mission
Identification
 The company’s mission statement
is articulated. A mission
statement defines what an
organization is, why it exists, its
primary customers, the products
and services it produces, and it’s
geographical area of operation.
Step 2: Situation Analysis
 Thisstep assesses and evaluates the
market, customers,competitors, and
the company’s internal and external
environment. The objective is to
identify the company’s strength and
weaknesses, as well as the available
opportunity and possible threat.
Step 3: Objective Setting
 Objectives are marketing that are
SMART. These enable a company to
control its marketing plan and provide a
consistent focus for all functions of an
organization. These objectives include
sales revenues, market share, and
profits. They are used as basis for
strategy Selection and development.
Step 4: Marketing Strategy
Development
 The development of a marketing
strategy involves market
segmentation, identification of
target market, positioning,
selection of broad marketing
strategies, and the translation of
strategies into action plans.
 Cost leadership
This is a strategy primarily for achieving low cost
leadership among industry competitors.
 Differentiation
Seeks to achieve superior product attributes and
features that are different from industry
competitors.
 Focused
Efforts are concentrated on a relatively small but
profitable market.
 SUB CATEGORIES:
1. Forward Integration – this involves
gaining ownership or increased control
over distributors or retailers.
Ex. A known newspaper company buying
418 newspaper stands in Metro Manila
2.Backward Integration – this
involves gaining ownership or
increased control over supplies.
Ex. A consumer goods company in
the Philippines purchasing cow
farm and dairy facility in General
Santos City
3.Horizontal Integration – this
involves purchase of or
increased control over
competitors.
Ex. A Pizza company buying a
controlling interest in another
pizza company.
5. Market Development – this
strategy involves the
introduction of existing
products or services into a new
geographical area or market.
Ex. A private learning institution
opening a campus in Cebu City.
6. Product Development – this
strategy involves the improvement
of current products or services or
the development of new products
with the purpose of increasing
sales.
Ex. A company on carbonated
beverages introducing each
product line in tetra pack.
7. Related Diversification – this
involves introducing new but
related products or services.
Ex. Battery manufacturer
introducing solar power automative
batteries
8. Unrelated Diversification –
this involves introducing new
but unrelated products or
services.
Ex. A bank opening a chain of
ice cream parlors.
9. Retrenchment – this involves
halting or reversing declining sales
and profits through cost or asset
reduction.
Ex. A shopping mall selling off each
hardware department and laying
off 847 of its department and
employees.
10. Divestiture – this involves selling a
division or part of an organization.
Ex. Conglomerate selling an airline

11. Liquidation – this involves selling of all

company's assets, in parts or as a
whole, for their tangible worth.
Ex. Prime holding company selling all its
companies
 TACTICAL MARKETING
PROCESS
Marketing Action Marketing
Strategies Plans/Tactics Activities

Activity Responsibility/ Activity

Budgets Accountability Timetables

Monitoring
and Control