Antonio Errol Ybanez Jr.

, DBA, CSEE

Dr. ANTONIO ERROL B. YBANEZ, JR.

 What is a Business?

As a continuing economic
decision-making activity involving
managerial, legal and social
processes of using inputs to
produce or create goods and/or
provide services of value to satisfy
human needs in exchange of profit.
 Effects of NO Marketing
1. Product or service will be unknown
2. No other way to bring sales and revenue
3. No solid reputation (product/brand differentiation)
4. Difficult to transfer, exchange and distribute goods
5. No healthy competition (small and new players
has little chance to compete)

Without marketing,
NO business!
 Simple Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

Information
4
 Marketing
by Phillip Kotler

a social and managerial

process

 bywhich individuals, groups

or companies obtain what
they need and want

 through creating, offering,

and exchanging products
of value with others.
 Marketing
The Core Concepts

Needs, wants Marketers

Markets
and demands and prospects

Products Relationships
(goods,
service, ideas) and networks

Exchange
Value, cost &
and
satisfaction
transactions
 Four Key Elements

Research-1
(Finding out)
2 Planning
(the vision)

3
 through creating, offering,
Strategy
and exchanging
(the ‘how’)products
of value with others.
4
Tactics (At the
sharp end)
 Business
Mission
Statement
Marketing
Objectives
Process /
Situation or
SWOT
Cycle
Analysis

Marketing Strategy

Target Market
Strategy

Marketing Mix
Product Place/Distribution

Promotion Price

Implementation
Evaluation, Control
 4 Ps in Marketing Mix
PRODUCT
Quality, Brand Name,
Features, Design,
Convenience, Value,
Packaging, Accessories,
Warranties
Target
Market
PROMOTION PLACE
Advertising, Channels, Location,
Personal Selling, Coverage, Inventory,
Sales Promotion, Transportation,
Public Relations Logistics
 What do we Market?

Goods Persons
Services
Experiences
Events Places
Ideas Organizations
Information Properties

Something that is viewed as capable

of satisfying a need or want
 What is a Product?

Anything that is offered to the

market for attention, acquisition,
use or consumption that satisfies
a want or a need
 Types of Products

PRODUCTS

Consumer Industrial
Services
Products Products

12
 Product Items, Lines, and Mixes

A specific version of a product

that can be designated as a
Product Item
distinct offering among an
organization’s products.

A group of closely-related
Product Line
product items.

All products that an

Product Mix
organization sells.

13
 Product Mix
How many product lines
Width
a company has?
How many products are there
Length
in a product line?
How many variants of each
Depth
product exist within a product line?
How closely related the
Consistency
product lines are in end use?
 Product Levels
Core benefits Rest and sleep
Basic product Bed, bathroom, towels, desk,
dresser, and closet
Expected product Clean bed, fresh towels, working
lamps, relative degree of quiet
Augmented product Cable TV
Potential product High speed internet connection
Product Development Process
Product Differentiation

The process of
distinguishing a
product or offering
from others to make it
more attractive to
a target market
Product Differentiation
Strategy

Challenge:

come up with a strategy

which does not only create
value for the product but
also makes it difficult for
rival companies to emulate
 Product Differentiation

Design Delivery

Ordering
Style
Ease Installation

Conformance
Features Customer
Consulting
Product
Form Performance Durability

Reparability Customer
Consulting Customer
Training

Reliability
Maintenance
 Service

• Any act of performance that one

party can offer another that is
essentially intangible and does not
result in the ownership of anything;

• its production may or may not be

tied to a physical product.
 Categories of Service Mix
1. Pure tangible good - No services accompany
toothpaste, soap, salt the product

2. Tangible Goods with Without its services, its

accompanying services - sales would shiver
cars/computers and warranty

3. Hybrid - restaurants (food Consists of equal parts of

goods and services
and services)
Consists of major
4. Major Service w/ accompanying
services along with
minor goods and services - additional services or
airlines serve food and drinks supporting goods

5. Pure service - baby sitting, Consists primarily of

massage a service
 Major Characteristic of Services

Intangibility – Services are intangibility cannot be seen, tasted,

felt, heard or smelled before purchase.

Inseparability - Services are produced and consumed

simultaneously.

Variability or Heterogeneity – Services are highly variable

Perishability – Services cannot be stored.

Non-Ownership - Services are rendered but there is no transfer

of title
 Service Monitoring

• Continuous auditing of competitor

service levels versus own
company

• Importance -performance analysis

 Importance-Performance Analysis

High Concentrate Keep up the

here good work

Low Possible
Impor- Priority overkill
tance

Performance High
Determinants of Service Quality

Reliability - dependably and accurately

Assurance - trust and confidence

Tangibles - appearance

Empathy - caring

Responsiveness - prompt service

 Pricing Strategies
Market skimming • High price, low volume

Value pricing • Based on consumer perception

Loss leader • Below cost to attract sales

Psychological
• E,g. P99.00, P999.00
pricing

Going rate (price

• Prices set following lead of rivals
leadership)

Tender pricing • Bidding

Price • Different price, same good /
discrimination service
 Pricing Strategies
Destroyer /
• Aims to force out competitor
predatory

Absorption cost • To cover fixed and variable cost

Target pricing • Target level of growth

Cost-plus • Average cost plus mark-up

Influence of • Prices change as demand

elasticity change

Penetration
• Low price, high volume
pricing
 PLACE

Retail Mail Order

Wholesale Direct
Peer
to
Sales
Internet
Peer Multi
Channel
 Major Strategy Planning Decisions

• Distribution availability goals

– Ideal market exposure level
– Distribution customer service level

Price • Channel type (direct, indirect)

Product
• Who manages the overall
Target channel
Market
• How to manage transportation,
Promotion storage and materials handling
Place
• Kinds of middlemen
 Transportation

Retailing
Wholesaling
 Role of Promotion

Communicate: awareness, value

and benefits of the product to:
1. Attract, persuade, urge and
remind customers
2. Build brand and positioning
(product differentiation)
3. Counter competition
 Five Major Types of Promotion

Advertising

Direct Sales
marketing Promotion
Promotion
Mix

Personal Public
selling Relation
 Advertising

• Any paid non-personal communication and

promotion of ideas, goods or services transmitted to
a target audience through mass media.

• E.g., Yellow Pages, Direct Mail, Radio Newspapers,

Magazines, Television and Cable, Trade Shows,
Electronic Media (Internet, social media, email, etc.)
 Developing advertising strategy

Two Basic Questions:

• What is your marketing
message?
• Which marketing media
will you use to deliver that CONSIDERATIONS
message?  Target-audience
media habits
 Product
 Message
 Cost
Functions of
Advertising
• To differentiate products from
their competitors
• To communicate product info
• To urge product use
• To expand product distribution
• To increase brand preference
and loyalty
• To reduce overall sale costs
 The 5 Ms of Advertising
MESSAGE
- Message generation
- Message evaluation
and selection
MONEY
- Message execution
Factors to consider:
- Social-responsibility
- Stage in PLC review MEASUREMENT
MISSION - Market share and -Communication
- Sales goals consumer base impact
MEDIA
- Advertising - Competition and - Sales impact
objectives clutter - Reach, frequency,
impact
- Advertising frequency
- Major media types
- Product
substitutability - Specific media vehicles
- Media timing
- Geographical media
allocation
 Media Selection
Reach (R) : the no. of different persons or
households exposed to a particular media schedule
at least once during a specified time period.

Frequency (F) : the no. of times within the specified

time period that an average person or household is
exposed to the message

Impact (I) : the qualitative value of an exposure

through a given medium
 Designing the Message

Attention: noticing the advertisement

Interest : desire to learn more about the
product
Desire : favorable attitude including a
wish to own or use the product
Action : trying or repeatedly buying and
using the product
 MESSAGE EXECUTION

THEME CREATIVE COPY

 7-up is not a cola.  “the Un-cola”

 Let us drive you in our bus  “Take the bus & leave
instead of driving your car. the driving to us.”

 Shop by turning the pages of  “Let your fingers do

the telephone directory. the walking.”

 We don’t rent as many cars,  “We try harder.”

so we have to do more for
our customers.
 Evaluating Advertising
Effectiveness

• Communication-Effect Research
• Seeks to determine whether an ad is
communicating effectively

Three Methods of Pretesting How effective is the

advertising campaign?
• Direct rating method
• Portfolio tests
• Laboratory tests

• Sales Effect Research

 Sales Promotion
The short-term incentives to encourage the
purchase or sale of a product of service.

Consumer promotions: samples, coupons, cash refund

offers, prices off, premiums, prizes, patronage rewards, free
trials, warranties, tie-in promotions, cross-promotions, point-
of-purchase displays, and demonstrations.

Trade promotions : prices off, advertising and display

allowances, and free goods.

Business and sales force promotion: trade shows and

conventions, contests for sales reps, and specialty
advertising.
 FREEmiums

Free Food Free Delivery Free Parking

Free Free
Free Samples
Consultation Gift Wrapping

Free Product or
Service after a Free Trial,
Free Seminars number of uses or Pay later
purchases
Prices Off Sales Promo

Buy one, P99.00 all

Take one products

Last 5 minutes, 20% off on

weekdays /
80% off weekends

Rewards for
Gift certificates
Frequent Use
 Occasions for Discounts

Soft Opening Grand Opening Holiday sales

Special Day
Closing sales Anniversary
sales

Father’s Day Mother’s Day Birthday

 What’s Going on Inside?

Aircon Security Well-lit

24 hours open Loud music Colorful Lights

Clown / Magic
show /
Manghuhula
 Public Relations
• Involves building good relations with the
company’s various publics by obtaining
favorable publicity, building up a good
corporate image, and handling or heading
off unfavorable rumors, stories, and events.

• E.g., Press releases, Sponsorships, Special

Events, Web pages
 Personal Selling
• the personal presentation by the firm’s
sales force for the purpose of making
sales and building customer relationships.
• E.g., Sales presentations, Trade shows,
Incentive programs
 Direct Marketing
• making direct connections with carefully targeted
individual consumers to both obtain an immediate
response and cultivate lasting customer
relationships – by using direct mail, telephone,
direct-response television, e-mail, and the Internet
to communicate directly with specific consumers.

• E.g., Catalog, Telemarketing, Kiosks

 The 7 Ps of Marketing Mix

Price
Product

Place
Physical Marketing
Environment Mix

Process Promotion
People
 The 7 Ps of Marketing Mix
Price
Product
Place

Physical Marketing
Environment Mix
Promotion
Process
People
Employees
Management
Culture
 The 7 Ps of Marketing Mix
Price
Product Place

Physical Marketing
Environment Promotion
Mix

People
Process
Especially relevant to Service Industries
How are services consumed?
 The 7 Ps of Marketing Mix
Price
Place
Product

Marketing Promotion
Physical
Mix
Environment
Smart
Run-down
Interface People
Comfort
Facilities Process
II. Analyzing marketing
opportunities
 Market Research – Black Box Theory

Nobody knows what

is in the black box

Inside the Never presume

consumer’s that you know the
mind is a customer unless
black box you ask him

Market Research is a discipline and an attitude

 Definitions

Needs- a state of felt deprivation reason why a consumer

will buy a product

Wants - The form taken by a reason why a consumer

human need as shaped by will prefer one brand
culture and individual personality over another

Demands - Human wants that reason for a choice is

are backed by buying power backed up by capacity
to pay
 Stages in New Product Adoption
2. Interest -
The consumer
1. Awareness
seeks information 3. Evaluation
The consumer about the product The consumer
becomes aware of the considers
product but lacks whether trying
information about it. the new product
makes sense
4. Trial
The consumer tries the
5. Adoption
new product on a small
The consumer decides to
scale to improve his
make full and regular
estimate of its value
use of the product
 Seven Basic Questions
1. What is unique about my product/service?
2. Who are my customers and where are they located?
3. What is the market potential?
4. How will my customers buy?
5. At what price, my customers willing to spend?
6. Who are my competitors?
It’s not
your
7. What is my share in the market? answers
but your
questions
that matter
most!
How to conduct field research

Objective What do you need to know?

Samples From whom?

Method What process will you use?

Structure What type of questions?

Analysis What will you do with the info?

Cost How much will you pay and is it worth it?

Timing When do you need it?

 Determining Research Objectives

1. How much sales can I make this year and the following
years?
2. What is the total market size for my business/product?
3. What is the market share of my brand and my
competitors?
4. Why does a customer choose one brand over the
other?
5. How do customers behave when purchasing a product?
6. How price sensitive are the customers?
7. Will they buy my new product?
Define Research Scope and Limitations

1. Identify target respondents

Consumer research, Trade Research, Purchaser
Consumer Retailer, Wholesaler, Decision-maker,
Influencers, and Other channels

2. Set geographic limits

Be guided by business plan timeframe
Temper with resources limit

3. Determine type of info required (Quantitative/Qualitative)

Be guided by research objectives
Determine what you will use data for
 Market
Segmentation
A process of
dividing the total
heterogeneous
market for a good or
service into several
segments
 Bases for Segmenting Markets

Geography Psychographics
Region of the world Social class
Country Lifestyle
Region of the country Personality
State
City
Demography
Age
Gender
Behavior
Family size
Purchase occasions
Family life cycle
Benefits sought
Income
User status
Occupation
Usage rate
Education
Loyalty status
Ethnicity
Readiness stage
Nationality
 Market Targeting

A group of customers (people or firms)

at whom the seller specifically aims its
marketing efforts

Target Market

A specific group of consumers at which a

company aims its products and services.
 Four Crucial Questions

1. Is there a target segment where we might

enter the market, in which we offer the
customer clear and compelling benefits,
at a price customer is willing to pay?

2. Are these benefits, in the customers’

minds, different from and superior in
some way – better, faster, cheaper or
whatever – to what’s currently offered
by other solutions?
 Four Crucial Questions

3. How large is this segment, and how

fast is it growing?

4. Is it likely that our entry into this

segment will provide us entry into
other segments that we may wish to
target in the future?
Who is a Customer?

Anyone who is in the market

looking at a product / service
for attention, acquisition,
use or consumption
that satisfies a want or a need
 Customer
• Has needs, wants, demands and
desires
• Understanding these needs is
starting point of the entire
marketing
• These needs, wants …… arise
within a framework or an
ecosystem
• Understanding both the needs
and the ecosystem is the starting
point of a long term relationship
 How Do Consumers Choose Among
Products & Services?

Value - the value or benefits the customers gain from

using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
– Performance > Expectations => Satisfaction
– Performance < Expectations => Dissatisfaction

69
 Levels of Customers’ Expectation

Level 3
Value-added
Intimacy
Characteristics and features that
Customers did not expect (Latent)

Level 2
Specifications
Options and trade-offs And
Available for selection by customers
Requirements
(Explicit)
Level 1
Minimum performance levels
Base Expectations
Always assumed Present (Implicit)
Customers Problem Solution

• As a priority, we must bring to our

customers “WHAT THEY NEED”

• We must be in a position to
UNDERSTAND their problems

• Or in a new situation to give them

a chance to AVOID the problems
 What do Customer looks for?

Value = Benefit / Cost

Benefit = Functional Benefit + Emotional Benefit

Cost = Monetary Cost + Time Cost +

Energy Cost + Psychic Cost

72
 CUSTOMER WINDOW
Customer Wants

Customer is
unhappy because Bravo! Continue –
desired services Improve Services
are not delivered
Customer Customer
Does Not
Stop doing
Gets
Get
Don’t worry, services and
Be Happy educate customer
services

Customer Does Not Want

 Matching Demand and Supply

DEMAND SIDE SUPPLY SIDE

• Differential pricing (peak to off- • Part-time employees (hired to
peak periods)
serve peak demand)
• Non-peak demand (Mcdonald’s • Peak-time efficiency
breakfast service)
(paramedics assist physicians)
• Complementary Service • Increased consumer
(Mabuhay Lounge in Airport for
participation (self-service)
passengers)
• Shared services
• Reservation systems (to
manage the demand level of • Facilities for future
airlines, hotels, etc) expansion (amusement park
buys surrounding land for later
development)
 Stages of Customer Interaction

75
 Factors Leading to
Customer Switching Behavior

Core Service
Pricing Inconvenience Service Encounter
Failure Failures

• High, • Location, hours, • Service • Uncaring,

unfair, waiting time for mistakes, impolite,
deceptive appointment or billing errors, unrespon-
service service sive,
catastrophe unknowledg
e-able
 Factors Leading to
Customer Switching Behavior

Response to
Ethical Involuntary
Service Competition
Problems Switching
Failure

• Negative, • Cheat, • Provider • Found

reluctant, unsafe, closed, better
no hard sell, customer service
response conflict moved
of
interest
 Drivers of Customer Satisfaction
• Many aspects of the firm’s value proposition
contribute to customer satisfaction:
 The core product or service offered

 Support services and systems

 The technical performance of the firm

 Interaction with the firm and it employees

 The emotional connection with customers

• Ability to add value and to differentiate as a firm

focuses more on the top levels
78
II. Planning Marketing
Programs
 Concept

Bring them closer together

 The 4 Ps (Sellers View) and
the 4 Cs (Buyers View)

PRODUCT PRICE

Customer
Cost
Solution
4 Ps

4 Cs
PLACE PROMOTIONS

Convenience Communication
Know your Competitors

• Who are they?

• What are their 4Ps?

• How are they addressing the 4Cs?

• What is your competitive

advantage?
Strategic Marketing Management

 Concerned with how we will create

value for the customer

Asks these:
 What is the organization’s main
activity at a particular time? –
Customer Value

 What are its primary goals and

how will these be achieved? –
how will this value be delivered
 Example
Competitive Analysis: Customer Perception Factors

Your Competitor
Factor Points Comp. #1 #2 #3
Product / service features
Price
Quality/Durability
Perceived value
Customer service/relationship
Credit Policies
Corporate image
 Basic Questions
In Creating a Marketing Plan

What am I selling?
Product, benefits & message
Whom am I selling it to?
Target market
How will I sell it?
Strategy and tactics
What are the desired results?
Forecasts
How much will it cost?
Marketing budget
 Porter’s Five Forces
Industry Competition Model
Porter’s Five Forces High Mod Low
Threats of potential entrants
Economies of scale
Resource requirements
Access to distribution channels
Brand and customer loyalty
Cost disadvantages
Threats of substitutes
Availability of attractively priced substitutes
How satisfactory the substitutes (quality)
Performance and other relevant attributes
Cost of switching
Suppliers’ bargaining power
Are they supplying major customers?
Do they sell it at a much cheaper price?
Are you an established supplier or just starting
to build a customer base?
 Porter’s Five Forces
Industry Competition Model

Porter’s Five Forces High Moderate Low

Customers’ bargaining power:
Are switching costs low?
Are there few buyers?
Are buyers more informed?
Do they practice discretion when buying the product?
Intensity of rivalry among existing firms:
Is the number of competitors increasing?
Is demand growing?
Is competition undercutting prices?
Are switching costs involved?
How aggressive is the competition in its mktg. efforts?
Have competitors been acquiring weaker firms?
 BUSINESS ETHICS
Peter Drucker

“The first responsibility to society is to operate at a profit …

Business is the wealth-creating and
wealth-producing organ of society …

But what is important is that management realizes that

it must consider the impact of every business
policy and action upon society.

It has to consider whether the action is likely

to promote the public good,
to advance the basic beliefs of society,

to contribute to its stability, strength and harmony …

the ultimate responsibility of management,
to itself, to the enterprise, to our heritage, to our society
and to our way of life.”
III. Creating
Effective
Branding
What is a Brand?

A name, term, sign,

symbol, or design, or a
combination of them,
intended to identify the What is
goods or services of one Branding?
seller or group of sellers
and to differentiate them
Providing goods and
from those of competitors services with the
American Marketing Association
power of the brand.
Why brands?

• Signals the source of the product

• Protects customer and producer

from competitors

• Consumers form relationships with

brands, not products or companies

• Forms a trust-based connection

with consumer and distinguishes it
from competition
 Why is it hard to build brands?

• Proliferation of competitors
• Pressure to compete on price
• Fragmenting markets and media
• Complex brand strategies and relationships

• Bias towards changing strategies

• Bias against innovation
• Pressure to invest elsewhere
• Short term pressures
 Getting to Know a Brand

Although the branding

process is often the
first step in defining a
brand, they are really
built by customer
experience...

93
 What Great Brands Have

 They worked long and hard at

communicating what they stand for
and why they are relevant

 More than anything else, understand

people

 Connect to customers by consistent

communications.
94
 Customer Experience (CEX)

“CEX are living in the perception

of the customer, and hence are
solely managed by the customer,
not by any company, thru an end
to end experience”.

- Thomas Wieberneit & Ian Golding

95
 Brand Equity

A set of assets (liabilities)

linked to a brand’s name Brand Equity Equation
and symbol that adds to
the value (that subtracts Assets xxx
from the value) provided Less Liabilities xxx
by a product or service to Equity xxx
a firm and/or that firm’s
customers
 Benefits of Brand Equity

How much customers are

willing to pay for your brand

 Allows you to premium price

 Generates demand
 Makes it easy to extend your
products and services
 Helps in risk management

97
 Benefits of Brand Equity

In organization, it is the process

of placing an image of being
a great place to work in the
minds of employees and
prospective employees.

 Have value
 An asset
 Helps you keep and
attract great staff
 Motivates employees
98
 Brand Loyalty
Strategic Value

• Reduces the marketing costs

of doing business
• Provides trade leverage
• Helps attract new customers
• Provides a firm with time to
respond to competitive threats
• Treat the customer right

• Stay close to the customer

• Measure/manage customer
satisfaction

• Create switching costs

• Provide extras
 Positioning is…
• The act of designing the company’s
offer and image so that it occupies a
distinct and valued place in the
target customer’s mind.

• Owning a piece of consumer’s

mind

• Not what you do to a product,

it’s what you do to the mind of
the prospect
 Strong Positioning Statement

1. For whom is the product designed?

2. What kind of product is it?
3. What is the single most important benefit
it offers?
4. Who is the most important competitor?
5. How is your product different from the
competitor’s?
6. What significant benefit can the customer
get from your product or service?
 Strong
Positioning Statement

Product (Company, Service,

Person)
is the one category of product
that provides the target customer
with key benefit
because reason they should
believe you can deliver the
benefit
 Marketing Strategy
A process that can allow an
organization to concentrate its
(always limited) resources on the
greatest opportunities to increase
sales and achieve a sustainable
competitive advantage.

A key part of
the general
corporate strategy
 Marketing Strategy Planning Process

Narrowing down to focused strategy with quantitative & qualitative screening

criteria

Customers
Needs and other
Segmenting
Dimensions Product Price
Targeting &
S. Segmentation Target
Company W.
Mission, O. Market
Objectives, &
Resources T. Positioning &
Differentiation Promotion Place

Competitors
Current &
Prospective
External Market Environment
MARKET Firm’s Sales
SHARE
= Total Market Sales
Market Share
Reasons to Increase

Sales growth
Economies
in a stagnant
of Scale
industry

Increased
Reputation bargaining
power
 Types of Marketing Strategies
1. Based on market dominance
Philippine’s Top Fast Food Industry

Leader Challenger

Followers
 Types of Marketing Strategies

2. Based on dimensions of strategic scope & strength

Porter Generic Strategies

Cost Leadership

Unlimited Cebu Pacific’s

Call and Text Offers PISO Fare
 Porter Generic Strategies …

Product differentiation

Telecommunication Utilities Utilities

Focus
 Con’t.-Types of Marketing Strategies

3. Based on Innovation
Deals with the firm's rate of the new product development
and business model innovation.

Innovation Strategies
Pioneers, Close Followers, Late Followers
 Con’t.-Types of Marketing Strategies

4. Based on Growth
Horizontal integration
 Con’t.-Marketing Growth Strategies

Vertical integration

Apple Inc.
• Computer Designs Motion Picture Industry
• Hardware • Studios
• Accessories • Production of films
• Operating System • Distribution
• Software • Theaters
 Con’t.-Marketing Growth Strategies

Diversification

Disneyland
Resort
Resort Paris

Disney
Cruise Line
Hong Kong
Disneyland

Walt Disney Tokyo Disney

World Resort Resort
 Con’t.-Marketing Growth Strategies

Intensification

Above The Promotions

Line (ATL)

Service
Below The Line
(BTL)
On Ground Customer
Events Support
 5 Modes of Entry into Foreign Market

Indirect Direct Joint Direct

Licensing
Exporting Exporting Ventures Investment

Domestic-based export department

Overseas sales branch or subsidiary
Traveling export sales representatives
Foreign-based distributors or agents

Commitment, Risk, Control, Profit potential

Type of strategies, used in business &
marketing, that try to draw parallels
between business and warfare, and
then apply the principles of military
strategy to business situations
 is the organized deployment of
resources to achieve specific objectives.
 No enemies but competitors
 Don’t fight for land, but compete for market share
 To gain or win at the expense of competitors
 Success depends on battling competitors for market share
 Learned the
principles of
guerrilla warfare

by Mao Tse Tung

 Learned the dynamic and
unpredictable nature of military
strategy.

He felt that in a situation of chaos

and confusion, strategy should be
based on flexible principles.

Strategy comes not from formula or

rules of engagement, but from
adapting to what he called "friction"
(minute by minute events).
 “The Art of War” by Sun Tzu

People learned the tactical side of

military strategy and specific tactical
proscriptions which business strategists
call "first-mover advantage.”

Sun Tzu said:

"Generally, he who occupies the field of

battle first and awaits an enemy is at
ease, he who comes later to the scene
and rushes into the fight is weary.”
 Herman Kahn
Surprise Free Future

• Father of scenario planning

• “Thinking About the Unthinkable” nuclear
warfare through game theory
• Much anticipated shifts that never arrive
on schedule
• People convinced themselves that it will
not arrive
• By the time it arrived, people were
unsurprised, but woefully unprepared
 Pierre Wack
of Royal Dutch Shell

Used scenario planning to help evaluate events

that may affect the price of oil

 Helped managers imagine the decisions

they might have to take

 Of the major oil companies, only Shell was

prepared emotionally for the change. The
company’s executives responded quickly.
 Steps in Scenario
Planning by Shell

1. Decide drivers for change/assumptions

2. Bring drivers together into a viable
framework
3. Produce 7-9 initial mini-scenarios
4. Reduce to 2-3 scenarios
5. Draft the scenarios
6. Identify the issue arising
 A Word to Ponder

“The highest form of victory

is to conquer by strategy;
to win a battle by fighting
is not the best strategy;
to conquer the enemy
without having to resort to war
is the highest,
most admirable form
of generalship.”
 Developing Growth Strategies

Product/ Market Expansion Grid

Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development

New 2. Market
Markets 4. Diversification
Development
 Boston Consulting Group Approach:
Analyzing Current SBUs

Relative Market Share

High Low

Stars Question Marks

?
Market Growth Rate
High

• High growth & share • High growth, low share

• Profit potential • Build into Stars/ phase out
• May need heavy • Require cash to hold
investment to grow market share
Cash Cows Dogs
• Low growth, high share • Low growth & share
Low

• Established, successful • Low profit potential

SBUs
•Produce cash
 The New Marketing Paradigm

OLD VIEW NEW VIEW

Marketing as a Function As a Business Philosophy
Separate function Integrated with other functions
Product management Market & account management
Feature positioning for Better positioning for
mass market segmented market
Domestic focus Global focus
Consumers Value creation for stakeholders
Short-term sales, share Long-term profit and
objective satisfaction
 The New Marketing Paradigm

OLD VIEW NEW VIEW

Transactional Long-term relationship
partnerships
Limited use of IT Expanded use of IT strategies
Self-sufficiency Co-marketing and strategic
alliances
Price discounts Value-based pricing
Product quality Quality provider
Media and sales “power”; Message effectiveness
efficiency
Foundations of New Marketing

Unexpected
 Why Use Digital Marketing?
• Increase website traffic
• Increase brand recognition
• Generate leads
• Improve search engine rankings
• Increase online sales conversions
• Improve internal communications

If your business is not on the

internet, then your business
will be out of business.
Bill Gates
 Digital vs. Traditional

Digital Marketing Traditional Marketing

Reach out to maximum people Limited audience

Targeted or Client Specific Global Marketing

Marketing
Versatile (can make changes in Non-versatile (Cannot be
the advertisements) altered once published)
Immediate Communication Delayed Communication
 Benefits to Marketers
 Quick adjustments to market conditions
 Lower costs
 Relationship building
 Audience sizing
 Who Are You?

Digital Natives Digital Immigrants

Internet as the main source Internet as the second source of
of information information

A program teaches them Read the manual for a program

how to use it by using it

Read emails on the screen Print their emails or have it print

Edit documents on the Edit documents on the printed
screen copy

Send people a URL Take people physically to see

together an interesting website
Digital Natives
(1984 Up)

A person who was

born during or after the
general introduction of
digital technologies and
through interacting with
digital technology from an
early age, has a greater
comfort using it.

21st century learners

are Digital Natives
Digital Immigrants
(1984 Down)

An individual who
was born before the
existence of digital
technology and
adopted it to some
extent later in life.
 Michelle Phan
An American make-up demonstrator and
entrepreneur who became notable as a beauty
YouTuber.
Phan’s YouTube channel has over 8.85 M
subscribers, 1.04 B total views and 385
uploaded videos.
Born: April 11, 1987, Boston, Massachusetts, US
Education: Dropped out but in March 2014,
received her Honorary Doctorate of Arts degree
Ringling College of Art and Design
In 2015, named to the Forbes 30 under 30 lists;
raised $100 M to value the company Ipsy at
over $500 M.

Source: Wikipedia
 The Philippines is now in 6th place in
mobile internet speed among the 10
members of the ASEAN according to
a report from a global speed test.

Globally, the country moves up to the

86th spot in January 2021. This is a marked
improvement from its 111th rank in the same
period last year.

For the first time, it surged on top of Myanmar

(25.21 Mbps, 88th worldwide) and Malaysia
(23.74 Mbps, 94th). It also stayed ahead of
Cambodia (19.98 Mbps, 106th) and Indonesia
(17.33 Mbps, 121st).
Source: [Link]
 The five ASEAN members with faster mobile
internet speeds than the Philippines are:

Singapore (66.44 Mbps, 22nd worldwide);

Thailand (50.00 Mbps, 36th); Brunei (36.75
Mbps, 56th); Vietnam (34.68 Mbps, 62nd);
and Laos (27.55 Mbps, 80th).

As for fixed broadband speed, the country

improved slightly from 31.44 to 32.73 Mbps.

The country remains 100th worldwide and

sixth in ASEAN.

Source: [Link]
Challenge:
How to translate your information into
products with high perceived value

Great marketers focus on

communicating the value
and translating the utility of
the information
 Marketing Strategies to Thrive
in a New Normal

1
5
Keep your current
customers Design new
communication
strategy

2
4
Go online

Offer exclusive

3
Invest in social
media ads
promos
 Marketing Strategies to Thrive
in a New Normal

1
Keep your current customers

Bringing in new customers can be a struggle, hence, it is

better to focus more on the ones you already have or who
stays with you despite the economic recession.

Growth can be seen in terms of customer loyalty, brand

awareness, organic traffic, social media engagement, and
possible of new prospects.
 Marketing Strategies to Thrive
in a New Normal

2
Move everything online

Create new social media campaigns focus on home-based

workers and e-commerce trends and channels. Moving
online is a capability that will set you apart from competitors
and stand out to potential customers.

Now is the time to increase your online presence.

 Marketing Strategies to Thrive
in a New Normal

2
Move everything online

Examples:

1. Automate your services or email communications thru a cloud

ERP software to allow customers to receive the goods, track
orders, create invoices.

2. Invest in a good CRM software

3. Host informative webinars to build trust and attract new

customers, or even to employees to take their skills up a notch.
 Marketing Strategies to Thrive

3
in a New Normal

Invest in affordable social media ads

Scale you business thru social media ads to bring in leads and
sales. They have always been engaging, affordable and well
targeted.

The FB has granular audience capabilities to reach customers

based on gender, location, hobbies and interest, marital status,
profession, and etc.
 Marketing Strategies to Thrive

4
in a New Normal
Offer exclusive promos

Discounts, freebies and similar saving options could be the

incentive customers need to invest in you.

Run exclusive deals and offers to get people interested in

coming in both old and new customers.
 Marketing Strategies to Thrive

5
in a New Normal
Design new communication strategy thru the 3 Cs

1. Conduct a simplified survey about their current priorities, pain

points and desires. Use the discovered golden nuggets of
information to rethink and adjust your communication strategy.

2. Create an effective content as a way to serve customers better.

Takeaway: Focus on your customers’ priorities as much as your
own (a.k.a. TLC).

3. Convey your message thru your ads, emails, videos, webinars

and podcast episodes
 Portrait of a Better Marketer

1. Have the Passion

2. Willing to learn and experiment

3. Willing to work hard

4. Have a vision

5. Be creative and innovative

6. Seek opportunities
 Portrait of a Better Marketer

7. Be persuasive and know the value

of networking
8. With word of honor
9. Take calculated risks
10. Demand quality and efficiency
11. Be systematic
12. Be confident