Entrepreneurship & Sales PDF

Entrepreneurship & Sales LESSON 3 – Marketing Contents An Overview of Marketing Marketing Principles Marketing Environment Market Research Consumer Behavior How to develop social media campaign? An Overview of Marketing What is Marketing? Marketing refers to business activit...

Entrepreneurship & Sales LESSON 3 – Marketing Contents An Overview of Marketing Marketing Principles Marketing Environment Market Research Consumer Behavior How to develop social media campaign? An Overview of Marketing What is Marketing? Marketing refers to business activities associated with communicating, advertising, delivering, or selling products or services to customers. A company undertakes the activities to promote the sale of a product or service to the target audience. Marketing involves getting consumers interested in the product offerings by conducting marketing research and gaining a better understanding of the customer’s interests, tastes, and preferences. In the process, the marketing personnel creates a marketing plan, which entails all the activities and channels that the company will use to draw the customer’s attention to the products or services offered. An Overview of Marketing Marketing refers to the activities pursued by a company to promote its products or services to the target market. The goal of marketing is to draw the consumers’ attention to the company’s products and create a relationship with existing customers. It involves product development, product distribution, advertisement, selling, and the delivery of products to the end consumer. An Overview of Marketing Evolution of Marketing The history of modern marketing can be traced to the 1950s when companies used various marketing methods to draw the customers’ attention to a product. Before then, companies used print media to place ads that enticed consumers to buy their products and services. With the introduction of TV and the internet, companies became more creative in how they communicated product information to consumers. They conducted marketing campaigns across multiple platforms as advertisers competed to outdo other competing products in the market and get customers interested in their products. An Overview of Marketing Types of Marketing An Overview of Marketing 1. Traditional Marketing Traditional marketing refers to any marketing channels that existed before the advent of the internet. Examples of traditional marketing channels include print, telephone books, direct mail, phone, radio, and TV.. The channels above charge a fee that corresponds to the size of the ad, and it helps reach the targeted audience. Traditional marketing is considered one of the oldest marketing methods, and it is important when an advertiser wants to reach the local audience. An Overview of Marketing 2. Digital Marketing Digital marketing is the opposite of traditional marketing, and it leverages the internet to reach the target audience. The main forms of digital marketing include search engine marketing, content marketing, social media marketing, email marketing, PPC advertising, search engine optimization (SEO), etc. Digital marketing enjoys an advantage over traditional marketing because businesses can control what and how their target audiences see their ads, and they can measure the results of their advertisements in real-time. An Overview of Marketing 3. Relationship Marketing The relationship marketing strategy focuses on enhancing existing customer relationships to build customer loyalty and long-term engagement. The purpose of relationship building is to create stronger emotional connections between the customer and the brand as a way of maintaining formidable customer relationships. Without building relationships with existing customers, existing customers may look for alternative brands that offer better customer service. An Overview of Marketing 4. Brand Marketing Brand marketing is a marketing strategy that promotes the company’s products or services in a way that makes the brand stand out. The strategy focuses on shaping the public perception of the brand name and creating an emotional appeal with the target audience through humor, creativity, and storytelling. For example, Apple Inc.’s strong brand equity can be attributed to its success in positioning itself as an innovative player in the technology industry. Apple products are associated with product quality, and the company uses creative communication to enhance sales for individual products and the overall brand name An Overview of Marketing Marketing vs. Advertising The terms marketing and advertising are often confused with each other, but they come with different meanings. Marketing incorporates business activities such as product development, market research, customer support, etc., and it uses different channels to reach the target audience and create an interest in a company’s products. Activity 1 Aggressive need for Marketers Activity Link: https://docs.google.com/forms/d/e/1FAIpQLSdP_v0xaHMFJt3Ej72 RdVvyA6UBAroWOiOT0cxTfeLZyXQ7jQ/viewform?usp=sf_link Marketing Principles The 7 Key Marketing Principles are: Product Price Place Promotion People Process (or Positioning) Physical Evidence (or Packaging) Marketing Principles 1. Product The first of these seven marketing principles is product. A product can be defined as simply an item that addresses a consumer’s wants or needs. Some products are goods, or tangible objects. If someone asked you what your company’s product is, you would probably be able to quickly reel off the details. An important key here is that your product must meet the wants and needs of your customers. Marketing Principles How to Apply It? Conduct market research to make sure your product stands out. Market research is the process of obtaining information about your target market so you can understand whether a certain product will succeed. You can conduct market research via methods like: Customer surveys or questionnaires Interviews Satisfaction analysis User persona research Competitive analysis Marketing Principles 2. Price The second marketing principle is price. The price is simply the amount a consumer pays for a product. Coming up with your pricing, however, isn’t always that easy. It takes careful market research to understand what your competitors are charging for comparable products, what your customers expect to pay for your product and what you should actually charge. Marketing Principles How to Apply It? Coming up with your pricing can be a tricky task. Start by calculating the costs needed to create your product and bring it into the market. Make sure to add up not only the goods you need to make your product, but any materials used for promotion and packaging as well as the production time. Next, put your profit margin on top of that number. Figure out what percentage of profit margin you want to earn. Then divide your total variable costs (the number you came up with in the first step) by one minus your desired profit margin. Finally, you’ll add in the fixed costs associated with running your business. Marketing Principles 3. Place Place is the location where your product is available for consumers to purchase. Place is all about providing access for the consumer. It doesn’t have to be a physical, brick-and- mortar store; it could also be a website or other online location. One out of every four people shops online. The key is to make your products as accessible as possible so the buying journey will be convenient for consumers. Marketing Principles How to Apply It? Think about the distribution channels where your product is offered. In what places or what ways do you sell your product? And, importantly, are these the places where your target audience spends their time? Think bigger than your store and consider where else you could market your product — such as a trade show, festival or another local store. Marketing Principles 4. Promotion There are several types of promotional marketing strategies, including: Social media marketing. Platforms might include Facebook, Instagram, Twitter, YouTube, Pinterest, LinkedIn or Tik Tok depending on your brand audience. Public relations. Public relations is a way to manage how the public views your brand. Email marketing. Send marketing emails and/or email newsletters to help leads move through the sales funnel. Marketing Principles Content marketing. This is typically long-form content such as blog posts, videos, e- books, podcasts or webinars. Advertising. Advertise your company through radio, television, mobile ads or other types of ads. Search marketing. SEO, or search engine optimization, can help your website rank more highly in search engine results. Direct marketing. With direct marketing, you go straight to your ideal customer to communicate with them. Sales promotion. A sales campaign is a special offer designed to stir up interest around your product. Marketing Principles How to Apply It? When you promote your brand, include both explicit promotions and content that simply seeks to provide value. In addition to finding the right promotional balance, you’ll need to figure out what you are communicating (your message) and how often to communicate it. Spotify is an example of a brand with an excellent overall marketing strategy. This well- known music app uses data to design creative campaigns that speak directly to users. The company does a good job of getting on top of social media trends. And what’s more personalized than your Spotify Wrapped at the end of the year? These shareable campaigns cement brand loyalty and provide exposure to a new audience. Marketing Principles 5. People (or Positioning) The people you’re selling to — and the people in your company who are doing the selling — are an important aspect of marketing. Whether the “people” you’re referring to are customers interacting with your brand or the employees who make the magic happen, people are a component of your marketing that you can’t overlook. Some researchers prefer to use the word Positioning instead. This refers to positioning the product correctly to get it in front of the right audience. Marketing Principles How to Apply It? Implement this marketing principle by improving your customer service. For a retail store, focus on training all employees (even the ones who may feel as if customer service isn’t their job) on any new products and the latest deals. They should be encouraged to address customers by name, and they should always be willing to go the extra mile for a customer. Having a “script” for employees to fall back on in common situations can help. Marketing Principles 6. Process Process is what happens behind the scenes as you create your product or service. From the employees who are doing the hands-on work, to the employees who sit in offices answering emails, it’s all part of your business’ process. This principle can also refer to the entire customer experience journey — the service a customer receives from your company, from start to finish. Your goal is to make this process as smooth and enjoyable as possible. Marketing Principles How to Apply It? Optimize your internal processes to help your team work more efficiently. Streamlining your workflow will increase productivity as well as improving the quality of the work. Analyze your current workflow and go from there to improve. Consider introducing automation, or creating resources to train new employees so they can easily jump on board the processes you’ve already instilled. Marketing Principles 7. Physical Evidence (or Packaging) Physical evidence consists of anything your customer sees or experiences when interacting with your business. Is your store clean and bright? Is your website well- designed and optimized for browsing? Do you have good customer reviews? These can all serve as signals to a potential customer that you’re a reputable business and you’ll be easy to work with. If you’re a service-based business, physical evidence becomes especially important. Physical indicators of your product might include things like your website or business cards. Marketing Principles It’s essential for these pieces of evidence to be right on brand and to align with the rest of your marketing. Since customers may not be able to view a tangible item before converting, it’s important to provide as much evidence as you can to convince them to take the plunge. Some researchers add Packaging as the final principle of marketing. In this case, they’re referring to the way that your products (or services) are presented to customers. 72% of US consumers say that a product’s packaging design has an impact on their decision to buy. It’s clear that packaging is extremely important. Marketing Principles How to Apply It? Physical evidence can be almost anything. It might be five-star customer reviews. Or an immediate response to a customer service message. Or a deliverable that’s turned in well ahead of time. This marketing principle will vary from industry to industry and business to business. Essentially, however, anytime you do your work well, this counts as physical evidence for your company. To put the alternate seventh principle, Packaging, into practice, consider the following tips. First, make sure the packaging of a single product makes sense within your entire brand strategy. All packaging should be on-brand and reflect not only the product itself, but also your overall brand. Marketing Environment Marketing environment is the combination of external and internal factors and forces that affect the company’s ability to establish a relationship and serve its customers. The marketing environment of a business consists of an internal and an external environment. Marketing Environment Internal Environment components can be grouped under the Five M’s of the business, which are: Men: The people of the organization including both skilled and unskilled workers. Minutes: Time taken for the processes of the business to complete. Machinery: Equipment required by the business to facilitate or complete the processes. Materials: The factors of production or supplies required by the business to complete the processes or production. Money: Money is the financial resource used to purchase machinery, materials, , and pay the employees. Marketing Environment The External Environment has two (2) types: Micro Marketing Environment Macro Marketing Environment Marketing Environment Micro Environment Micro Environment include suppliers, market intermediaries, customers, partners, competitors and the public. Suppliers include all the parties which provide resources needed by the organization. Market intermediaries include parties involved in distributing the product or service of the organization. Partners are all the separate entities like advertising agencies, market research organizations, banking and insurance companies, transportation companies, brokers, etc. which conduct business with the organization. Marketing Environment Customers comprise of the target group of the organization. Competitors are the players in the same market who targets similar customers as that of the organization. Public is made up of any other group that has an actual or potential interest or affects the company’s ability to serve its customers. Marketing Environment Macro Environment The Macro Environment can be divided into 6 parts: Demographic Environment Economic Environment Physical Environment Technological Environment Political-Legal Environment Social-Cultural Environment Market Research Market research, also known as "marketing research," is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product or service. Market Research consists of a combination of primary information, or what has been gathered by the company or by a person hired by the company, and secondary information, or what has been gathered by an outside source. Market Research Primary Information is the data that the company has collected directly or that has been collected by a person or business hired to conduct the research. This type of information generally falls into two categories: exploratory and specific research. Secondary Information is data that an outside entity has already gathered. This can include population information from government census data, trade association research reports, or presented research from another business operating within the same market sector. Consumer Behavior Understanding Consumer Behavior is a key element of a marketing strategy. In fact, before implementing a strategy, it is essential to fully understand the needs and expectations of the consumers you want to influence. To do this, we need to understand how the consumer will react and be influenced by your marketing strategies. To delve deeper into the preferences of your target audience, some of the questions you must answer are: How do the consumers perceive the information? How do you capture their attention? What are their needs? What factors influence them to make a purchase decision? Are they price, quality, commercial offer, others? How to develop Social Media Campaign? Social Media Marketing is the practice of using social media channels to sell or promote a brand, product or service. Social media marketing helps businesses: Increase brand awareness Build engaged communities Sell products and services Measure brand sentiment Provide social customer service Advertise products and services to target audiences Track performance and adjust larger marketing strategies accordingly How to a Develop Social Media Campaign? Step 1. Choose social media marketing goals that align to business objectives Step 2. Learn everything you can about your audience Step 3. Get to know your competition Step 4. Do a social media audit Step 5. Set up accounts and improve profiles Step 6. Find inspiration Step 7. Create a social media content calendar Step 8. Create compelling content Step 9. Track performance and adjust your social media strategy accordingly Activity 2 Develop Social Media Campaign Develop material for a Social Media Campaign of your own promoting Goods or Services for submission to your lecturer by email within 7 days. Your Campaign should be in the form of PowerPoint and or can include materials developed using photoshop or other software. Case Study Tony Tan Caktiong Tony Tan Caktiong, is another of those Chinese immigrant family who went to the Philippines in hope for a better future. Tony is born on January 5, 1953 in Fujian, province of China. His father worked in a restaurant in China and as a cook in a Buddhist monastery in Manila before setting up his own restaurant in Davao City. Tony Tan Caktiong attended high school at Chiang Kai Shek and graduated from the University of Santo Tomas with a degree in chemical engineering in 1975. Tan had initially planned an ice cream parlor when he founded Jollibee, then added dishes such as hamburgers, french fries, and fried chicken. Filipino culture is mostly family-oriented, and they promoted Jollibee's ad that way - large families would gather at the dinner table, sharing a bucket of spicy and crispy fried chicken. This is why much of Jollibee's success is due to the way the brand perfectly embodies Filipino identity and culture. At the age of 22, inspired by a visit to an ice cream plant, he set out to gain his own foothold in the restaurant business: relying on family savings, after considering many fast-food related franchise opportunities, he seized a franchising opportunity with Magnolia Dairy Ice Cream in 1975 and opened two ice cream parlors the Cubao Ice Cream House and Quiapo Ice Cream House. Amongst The Most Successful Entrepreneurs also from the Philippines are: Henry Sy (The Shoe Mart) Tony Tan Caktiong (Jollibee Foods Corporation) Socorro Ramos (National Book Store) John Gokongwei Jr. (J.G. Summit Holdings) Edgar Sia (Mang Inasal) Mariano Que (Mercury Drug Corporation) Cresida Tueres (Greenwich Pizza) Cecilio Kwok Pedro (Lamoiyan Corporation) Jollibee Group was founded in 1975 by Tony Tan Caktiong. With the help of his wife Grace, his family, and in-laws, they started everything with a small family business selling ice cream in the streets of Manila. Three years after starting, the family saw the opportunity for hot meals. Jollibee's main feature is the way their food menu focuses on the palette of their audience. It was originally made to cater the Filipino taste, providing banana-ketchup spaghetti with hotdogs and fried garlic rice to have with breakfast meals. In reality, today Jollibee is an American-style fast-food restaurant specializing in chicken, burgers, and spaghetti along with several Filipino-influenced dishes. Established in the Philippines, the company has made its way into international markets. They operate more than 1400 stores out of which more than 270 are situated in East Asia, North America, Middle East, South East Asia, and Europe. Jollibee is giving head-on competition to its international competitors such as Burger King, KFC, & Subway. Even in its home country, Jollibee is ruling on the #1 position followed by McDonald’s and KFC. The main reason Jollibee’s products stand out from the rest is their understanding of Filipino taste. Filipinos’ palate is slightly inclined towards the sweeter side. Therefore, Jollibee modifies its menus in accord with the regional taste of its consumers. As fried chicken is a popular product in the Philippines, Jollibee introduced their style of the chicken way back in 1981 named Jollibee Chicken Joy which soon became their No.1 product and bestseller among all outlets. Chicken Joy is now one of Jollibee’s signature products. Jollibee maintains the highest quality food standards which makes their fast-food products more likable. The following are some Signature Products of Jollibee: Chicken Joy is a counterpart to KFC’s Fried Chicken (but way better). It has a crispy texture on the surface and a mouth-watering palatable flavour from the inside. Chicken Joy is accompanied by smooth and delicious gravy, now that’s what you call a match made in heaven, right? Chicken Dippers are boneless chicken pieces served along with hot gravy. When they are dunked in hot saucy gravy leaves customers’ mouths full of taste. Who doesn’t like desserts? Jollibee also offers sweet, tangy Peach Mango Pie which has a flaky crust from the outside and slimy, tacky pie mix on the inside. Jollibee products are decently priced to satisfy the overall demand of consumers from different classes. The company employs competition-based pricing. Because Jollibee is a price taker, they must accept the current market rate, which is decided by supply and demand dynamics. They ought to keep the prices of their products in line with the prices charged by their competitor. As a result, pricing should not be a barrier to entry. Jollibee’s mission is to render high-quality, great-tasting food at a budget-friendly rate. The combo meals offered by Jollibee are much cheaper than its competitor McDonald’s by almost 10%. KFC’s bucket of 6 is priced at ₱439.00 (INR 650.30) in the Philippines where Jollibee offers the same for just ₱399.00 (INR 591.75) It has been 43 years since Jollibee was established and since then the company has had more than 1400 stores. Jollibee’s origin in the Philippines is what made the company successful. The company is committed to expanding its store across other countries so that everyone can have a taste of their products. They strategically place their outlets in populated areas that allow them to grab the attention of large masses. Some of their stores are located in malls and on highways so that passengers can grab a quick meal to satiate their hunger. Jollibee is aggressively active in its promotional campaigns. The company focuses highly on its advertisements over several platforms such as TV, newspapers, radio, likable makes and maintains a direct engagement with customers on social media handles. They also use the strategy of community influencers for their promotions. Their marketing strategy involves short films based on a real story that depicts family love and happiness multiplied when they have a meal together. As the family is a key ingredient of the company their in-store environment makes consumers comfortable like at home. Jollibee makes people emotionally attached to their stores. It is important to consider the Marketing Mix of Jollibee and how it continues to help their growth. Jollibee with its advertising and promotional campaign is surely on a bright path. Their promotional strategy gives them access to a large audience without making the prices of the products unaffordable. Their geographical pricing allows them to maintain steady revenue from different markets. And most importantly their homely relation and understanding of their customers’ needs and demands will bring them a huge success over the coming years. Jollibee also launched a television program for kids named Jollitown which was continued for almost five years before its completion on October 12. Jollibee’s targeted audience was children as they can be easily influenced so they introduced kid’s meals in their menus along with limited-edition toys. This strategy worked as children got intimidated to buy kids meals for the sake of toys. Drive-thru and free delivery services gave momentum to Jollibee’s marketing campaigns. They have launched their app called ‘Jollibee Ordering’ and for its promotion, they are giving out their signature Peach Mango Pie for two weeks on every order placed by an account. Today, Tony Tan Caktiong is the founder and chairman of Jollibee Food, one of the world's fastest-growing Asian restaurant chains. Together with partner Edgar Sia II, Caktiong also owns a stake in the fast-growing DoubleDragon Properties. Tony Tan Caktiong’s Personal Stats: Age: 69 Source of Wealth: Food, Self-Made Residence: Manila, Philippines Citizenship: Filipino Marital Status: Married Children: 3 Additional Reading Pridebites: Roles and Decisions of Entrepreneurs and Investors Ludvig Levasseur And Jacqueline Gomes Insert text Q&A Session