FDNMARK LECTURE 1.docx

Marketing 4 P's Product Price Place Promotion (buy sb drink to show-off sa crush, wherein she looks aesthetic and sophisticated) Help me create a jowa product The jowa that you're willing to buy **Attention - get the attention of customer** **Communication** is not the only think for action...

Marketing 4 P's Product Price Place Promotion (buy sb drink to show-off sa crush, wherein she looks aesthetic and sophisticated) Help me create a jowa product The jowa that you're willing to buy **Attention - get the attention of customer** **Communication** is not the only think for action in order for customers to buy the product, you want to give them more information and lead them (for the first 6 sec of a commercial, u need to get their attention first by saying the advantages and benefits) Ex: "Gusto mo bang Manalo sa Lotto" "Kailangan mo ba ng Pera ngayon? **Product** (something that is used to solve problems, ex: salonpas (kapag masakit ung likod) an alternative is massage but it's a service **Tangible** -- when you bought it exactly the same, you see offered exactly the same way (could see them in specific details, they are tactiles) place it inside your bag and can share with your friends (ex: sa starbucks ung mocha coffee, kasi same recipe nmn sa iba) **Intangible** - Anything to do with service or experience, when the service is different (example: education same subject pero iba ung prof, so iba iba ung insights and all) (ex: sa starbucks is ung service like ung mga ilaw and vibe) Personal Seller - Personal Selling (parang ung sa sm ace hardware, ung salesman ngdedemo ng blender) - TV Shopping (You just have to turn on TV, then you get to the channel that offers a lot - of products) 3 things to talk about a Product - **Features** - Describe the product as is (anong material, how many layers, colors, dimensions, 199 kilograms, load capacity of table) - Capacity (kunwre maximum jowa u can) - **Advantage** - When you hear lines that express a comparison (mas matibay toh kesa sa iba, mas sulit) - It can offer something more - Pro tip in advantage: there is an empirical comparison there has to be a one step before statement, "sabihin mo this 199 kilogram table is better than this 100 kilogram table" - Compare yourself to competitors, extract what you can better that the rest 2 Kinds of Competitors \*Direct competitors -- When dlsu has a competitor which is UP or Ateneo/ kunware starbucks and coffee project (direct competitor), offering exactly the same products/services \*Indirect Competitors -- If you have no competitors, look for alternatives, kunwre may coffee pero may MILKTEA nmn - **Benefits** - Effect - **Solution Result** (what is the result after solving the problem) - Ask yourself what's the problem of your customer - Ex: eating when you're hungry, kaya BUSOG ka which is the benefit, kaya masarap matulog - Ex: Essential foods has health benefit, sa mga supplements magiging matangkad ka - Needs (people have to have that are essential for them to survive) \*Want -- something you don't really need at the end of the day Product Life Cycle (Next Lesson) **Price** - How much are you willing to spend - What is the process that you have to go through to get it - What task to be done for you to able to get it **Place** - Lives in - Studies in - Born in **Promotion** - What do you that creates your brand - Promotion is communication Pde may picture like visualization ng jowa na gusto mo Selection - You cannot please EVERYBODY - You cannot satisfy EVERYBODY - **TAKE NOTE: your professor is already a part of your market, kaya kapag ngppresent isama mo sya** Call to Action: **TARGET YOUR MARKET** STP = SEGMENTATION, TARGETTING, POSITIONING Positioning statement \- summarized -what you value most and what solution are you promising to your target market Analytical Frameworks - Analysis - A lot of thinking involve to arrive at solutions for THE BIG IDEA - Be excited of the result of an analytical framework to get insights \* If \_ \_ , Then \_ \_ \_ So what \_ \_ \_, Then what? PSYCHOLOGY OF COLORS - Colors actually have a lot of frequencies - Red stimulates us a lot, if you're product is red it will be easy to catch the attention of the public - Red also active the interest of people in FOODS - Blue (comforting) - Green (Energizing) \*Sell your product to the market \*We are end consumers -- we consumer the products that we're buying \*Prototype -- approach first somebody else, investors, established personas/companies Product Life Cycle (PLC) 1. INTRODUCTION - Get a connection and engagement with the public - In terms of trends, the first type of customers that buy the products initially even if they don't even know the effects of it yet---these are called INNOVATORS. - **INNOVATORS** (Customers who are the first ones to buy, even though they don't know anything about the product) (Motivator is PRIDE, kasi kunwre sabi "you cannot buy this, only elite people can buy this" kaya sympre bibilhin mo ok sge bilhin ko yan kahit 10 units pa yan) - **If the product is so Unique, chances are, its introductory Price is HIGH** - Always accept feedbacks (negative/positive), then analyze if it's valid wherein you can improve and innovate things like altering your materials. - If you conducted improvements, your costs will lessen. - **LEADERS** are your next market (political power of companies like board of trustees and etc. (wants every peso to be worth it) (have influence to this specific company, the motivator there is pride to command respect, I want to be the best of the best) 2. GROWTH - The company already has conducted some revisions and improvement in costs) - There is a sudden pickup of sales, a lot of people are buying that's why the company is receiving a lot of profits - Motivation: confidence, if im doing what my boss is doing 3. MATURITY -attract followers (they buy what their leaders buy) -not much efforts and adjustment, business as usual \- everything is already perfect -you don't know how long time will prolong for that maturity phase -give the product that will capture the market, like 80% off to get rid of all your inventory -not all product will appreciate its value throughout time (ex: you bought a car, when you started the machine so you don't know how to drive it will bump the wall, automatically, the car would have depreciated its value) -the lagards (latak) will follow 4. DECLINE -lessen ur sales (free delivery installation, gift giving -decline=end, **Label the products according to their performance** **Boston Consulting Group Matrix (BCG MATRIX) 1-4 QUADRANTS /search mo nalang/** -analyze the product's marketability/sales performance -label properly to have a default set of action -more aware as marketers according to the status of our products -there is already a default information for us **DOG** -if you're a product, you don't want to be called a dog, like if you're product is also sleeping it will not attract any market (you are not the type of person who hoards when there is promotion week) -if there is low movement=low volume of sales -example fast moving consumer good, demanded right away by consumers, pero if these product has been in the rack for 3 months already sympre assume mo there's no sales) \- a product that produces less performance compared to other is called a DOG -phaseout the product -make a version 2.0, improve your product the when you lodge it again to the market you are now labeled as ? (question mark because it has a couple of directions, whether it has success or failure) **YOU HAVE 2 OPTIONS HERE** 1. kill the product or kill the idea 2. love the product but improve it [\*talk to the market ] **Question Mark** -not yet sure whether the product is a best seller (star) or a star -if you will improve you product to perfect what is demanded by the market, then it can be promoted into a **star.** But if not, then your product can be a dog **STAR** -convert the question mark into a star -sweet spot, perfect product to the perfect market -boost you product, ex: your celebrity ambassador napabili nya ng sobra ung product mo, kunin mo ulit sya -be consistent in your STRATEGY which is the mindset -implement a sale, don't just copy paste what you did last year, do some tweaking -the product also has to be the same -advertising costs and expenses kasi iimprove mo product eh **CASH COW** -Keep on selling not as high volume/quantity but there is a constant -You get to sell something without doing anything -if something happens to your constants, something will happen (kunwre senior citizens namatay sila during the pandemic, kaya ung mcdo makati, nirenovate maybe for younger crowd -preserve whatever you have at the moment, maintain a good connection with your constants \*Nitch Market/current Market **BRANDING** - For instance, when there is new product (not yet existing outside, or you yourself has not yet tried), the people would gain awareness/perception about the product and about you - **Perceptions from the public or the market about you or your product, if made consistent over time will result to BRAND** - BRAND NAME eg. DLSU, CSB, McDonald\'s, Landbank - BRAND is the perception, how would you describe it - Distribution (being the facilitator of the sale) - \*add info lng: Mayabang (has tangible results and evidence) is different from Mahangin (wala nmn evidence) Pricing -when it comes to pricing, tataasan mo agad ung introductory price IF YOU ARE THE PRODUCT WHEN ARE YOU THREATENED THAT I WILL NOT BE SELLABLE OR MARKETABLE SA 4 PHASE KA MAGBASED, you should be worried **all the time** in the 4 phases Price -no return in investment, no money in the making -some of the decision makers before they buy a product is based on a price -Never sell anything lower than your cost -Loss Leader (for every item sold, you are gaining losses or negative profits) -VALUE that a company deems to attach, fit, or assign to a product -it is not really divulged or disclosed to the public -ex: For every pair of shoes that you purchase, an exact pair goes to a direct beneficiary from Africa. (the brand is Tom's) -at the very least, the markup is for the rest of the operations of both, they costed you 40 pesos, pero atleast ur a what we call HERO, -\*you could price anything higher than your costs as long as you provide a justification to your public **4 pricing strategies** COST-PLUS BENCHMARKING PSYCHOLOGICAL VALUE-BASED 1\. Cost-Plus - PLUS = PROFIT - COST + PROFIT = RETAIL PRICE - If cost is 10p, then retail price is 1000p, the profit is 990p (value in terms of pesos) - PROFIT = MARKUP ON TOP OF THE COSTS INCURRED - Ex: P10 DIRECT/TOTAL COST + P10 PROFIT/MARKUP = P20 RETAIL PRICE (PRICE TAG) - What will we do if COST + % = RETAIL PRICE \[if I will not use pesos for the second price % = MARGIN (PROFIT MARGIN\] - Sooo like P10 COST + 100% PROFIT MARGIN = P20 RETAIL PRICE - Direct and indirect cost - Loss Leader \*when we attach a price point to a product, do not attach one at a loss, UNLESS, the strategy deems it, answer: DOG CLEARANCE SALE 80% OFF, warehouse 2.Benchmarking - Identify your competitors - Observe their PRICING STRATEGIES - ADAPT ACCORDINGLY Ex: if there is a non-alcoholic beverage competition Competitor A: 20 pesos Competitor B: 25 pesos Competitor C: 30 pesos Pero kapag ikaw na ang 4^th^ competitor, 35 pesos, I can justify it as the best and highest quality among the others - POSITIONING (would like to be considered as high quality product, produce high cost which means high quality, depence on the value) - Decide based on your competitions then decide the price point 3. Psychological - Kapag 19, 29, 39, 49 and so more mabubudol ka na kala mo mura - Psychologically (thinkin), did you think you were able to save (99)? - vs ACTUALLY, were you able to save anything? - To deem that the product has of high quality, and Rounded up numbers (ends with 0s) - Has EXACT PAPER MONEY COUNTERPART 4. Value-based Turon Location, Price, Demand (long line) FORGIVABLE PRICE POINTS Buying product worth P10.18 **Place** -trace the experience of a product Areas/PRIMARY Functions/ Processes in the Value Chain Analysis -supplier -Factory/work in process -Where the finished products are sold (RETAIL -AREA) -Value Chain Analysis -ex: office **SUPPORT FUNCTION** Admin -\> Human Resources -\> Technology -\>Purchasing **PRIMARY FUNCTION** Manufacturing/ Production Inbound (reception of ingredients/materials) Work in Process (cleaning, slicing, wrapping, frying, packaging) Finished Product Marketing and Sales Departments Warehouse/ Stprage Storage AFTER SALES