CONSUMER DECISION MAKING ●​ External Search- online reviews, -​ Satisfaction- meets or exceeds

advertisements, word-of-mouth, experts. expectations, leading to brand

It is the process individuals go through when loyalty.
selecting, purchasing, and using products or 3.​ Evaluation of Alternatives (consideration) -​ Dissatisfaction- fails to meet
services. Understanding this helps marketers -​ This is the stage when a customer is expectations, possibly leading to
influence consumer behavior effectively. comparing options to make the best complaints or returns
choice. -​ Cognitive Dissonance- buyer’s
Stages of the Consumer Decision-Making -​ Consumers compare brands, features, remorse; uncertainty after a
Process and prices. purchase.
1.​ Problem Recognition (awareness) -​ Use decision criteria such as quality,
-​ The first step of the consumer price, reputation, and personal Types of Consumer Buying Decision
decision-making process preferences. ●​ Purchase Involvement- how much time
-​ Most important stage of the buying we spend considering alternatives before
process, because every sale begins 4.​ Purchase Decision (conversion) making a purchase
when a customer becomes aware that -​ During this stage, buying behavior turns
they have a need for a product or service. into action- it’s time for consumers to buy! 1.​ Routine (Habitual) Buying Decision or
-​ The consumer realizes a need or problem -​ In executing a purchase intention, the Nominal Decision Making
(e.g., running out of milk) consumer may make up to five -​ Low involvement, frequent purchases,
-​ Can be triggered by internal (hunger subdecisions: brand (brand A), dealer and minimal effort.
desire) or external factors (advertising, (dealer 2), quantity (one computer), -​ Consumers buy out of habit without much
social influence). timing (weekend), and payment method thought
(credit card). -​ Example: buying milk, bread, or
2.​ Information Search (research) -​ Can still be affected by last-minute factors toothpaste
-​ Consumers look for information about like discounts or peer pressure.
possible solutions 2.​ Limited-Decision Making
-​ During this stage, customers want to find 5.​ Post-Purchase Behavior (re-purchase) -​ Moderate involvement, occasional
out their options -​ After making a purchase, consumers purchases, and some comparison
consider whether it was worth it, whether -​ Consumers may evaluate a few
Types of Information Sources: they will recommend the product to alternatives before buying.
●​ Internal Search- previous experiences, others, whether they would buy again, -​ Example: choosing a new brand of
personal memory. and what feedback they would give. clothing or a restaurant for dinner.
-​ Possible outcomes:
 3.​ Extensive Decision-Making the same values, interests, and a.​ Family of orientation- consists of
-​ High involvement, complex purchases, behaviors. parents and siblings
and significant research. b.​ Family of procreation- consists of
-​ Consumers carefully compare features, 2.​ Social Factors spouse and children
prices, and reviews. ●​ Reference groups are all the groups that ●​ Roles and Status
-​ Example: buying a car, house, or have a direct (face-to-face) or indirect a.​ Role consists of the activities a
expensive electronics. influence on their attitudes or behavior. person is expected to perform
●​ Membership groups (direct influence) b.​ Each role in turn connotes a
4.​ Impulse Buying a.​ Primary groups- with whom the status.
-​ Spontaneous, unplanned purchase based person interacts fairly
on emotions or immediate desire continuously and informally such 3. Personal Factors
-​ Consumers do not compare or evaluate as family, friends, neighbors, and ●​ Age
alternatives beforehand. coworkers. ●​ Life cycle stage
-​ Example: buying a chocolate bar at the b.​ Secondary groups- such as ●​ Occupation
checkout counter or a trending product religious, professional, and ●​ Wealth
seen online. trade-union groups, which tend to ●​ Personality- a set of distinguishing human
be formal and require less psychological traits that lead to relatively
Factors Influencing Consumer continuous interaction consistent and enduring responses to
Decision-Making c.​ Aspirational groups- those a environmental stimuli.
person hopes to join ●​ Values
1.​ Cultural Factors d.​ Dissociative groups- those whose ●​ Lifestyle- a person’s pattern of living in
●​ Culture- fundamental determinant of a values or behavior an individual the world as expressed in activities,
person’s wants and behavior. rejects interests, and opinions.
●​ Each culture consists of small e.​ Opinion leader- the person who ○​ Time famine: multitasking
subcultures that provide more specific offers informal advice or ○​ Money-constrained: low cost
identification and socialization for their information about a specific products
members. Subcultures include product or product category. ○​ Core values
nationalities, religions, racial groups, and ●​ Family- the most important consumer
geographic regions buying organization in society, and family 4. Psychological Factors
●​ Social classes appear as a result of members constitute the most influential ●​ Motivation
social stratification, homogenous primary reference group.
divisions, hierarchically ordered, share
 ○​ Biogenic- arise from physiological like and forget good points about ○​ Short-term memory (STM)-
states of tension such as hunger, competing products. temporary and limited repository
thirst, or discomfort. ○​ Subliminal perception- of information
○​ Psychogenic- arise from ○​ Long-term memory (LTM)- more
psychological states of tension ●​ Learning- induces changes in our permanent, essentially unlimited
such as the need for recognition, behavior arising from experience repository
esteem, or belonging. ○​ Drive is a strong internal stimulus
impelling action 5. Situational Factors
Three of the best-known theories of human ○​ Cues are minor stimuli that ●​ Time & Occasion- buying behavior
motivations determine when, where, and how changes depending on special events.
a.​ Freud’s Theory- behavior is guided by a person responds. (holidays, birthdays).
subconscious motivations ○​ Discrimination means we have ●​ Economic Conditions- recession vs.
b.​ Maslow’s hierarchy of needs- behavior is learned to recognize differences in economic growth impacts spending
driven by lowest, unmet need sets of similar stimuli and can ●​ Marketing efforts- advertising, discounts,
c.​ Herzberg’s two-factor theory- behavior is adjust our responses accordingly and promotions shape decisions
guided by motivating and hygiene factors. ○​ Hedonic bias occurs when people
have a general tendency to How Marketers Influence Consumer
●​ Perception- the process by which we attribute success to themselves Decision-Making
select, organize, and interpret information and failure to external causes.
inputs to create a meaningful picture of ●​ Brand positioning- creating a strong
the world ●​ Emotions brand identity to influence choices
○​ Selective attention- the act of -​ Consumer response is not all cognitive ●​ Advertising & promotions- raising
focusing on a particular object for and rational; much may be emotional and awareness and creating a sense of
some time while simultaneously invoke different kinds of feelings. urgency
ignoring distractions and irrelevant -​ A brand or product may make a ●​ Customer reviews & testimonials-
information. consumer feel proud, excited, or encouraging positive feedback to build
○​ Selective distortion- the tendency confident. trust
to interpret information in a way -​ An ad may create feelings of amusement, ●​ Loyalty programs & discounts-
that fits our preconceptions disgust, or wonder. encouraging repeat purchases
○​ Selective retention- because of ●​ Personalized marketing- using data to
this, we’re likely to remember ●​ Memory offer tailored recommendations
good points about a product we
 BUSINESS MARKETING ●​ Buying process: simple, individual -​ Example: a hospital buying medical
decisions supplies
Business marketing (B2B marketing) ●​ Marketing Channels: mass media, digital
refers to the process of selling goods or services marketing, retail stores Business Buying Process
to other businesses, rather than directly to The processes for making decisions for
consumers. These products are often used for Types of Business Markets organizations and consumers are quite different
production, resale, or daily operations. from each other
1.​ Industrial markets
Key Differences between B2B and B2C -​ Businesses that buy goods and services Step 1: Problem Recognition
Marketing to use in production (e.g., raw mats, -​ In this step, a company recognizes a
machinery) problem or need that requires to be
1.​ B2B -​ Example: a car manufacturer buying steel solved by acquiring a particular product
●​ Target Audience: businesses, for production or service
manufacturers, wholesalers -​ Identifying a need (e.g., company needs
●​ Decision-making Process: rational, 2.​ Reseller Markets new software)
logical, based on business needs -​ Businesses that buy goods to resell at a
●​ Purchase volume: large quantities, bulk profit Step 2: General Need Description
orders -​ Example: supermarkets purchasing -​ Involves determining the quantity and
●​ Relationship focus: long-term goods from wholesalers quality of the product and thus preparing
relationships, contracts a general need description
●​ Buying process: complex, multiple 3.​ Government markets -​ Determining product requirements
decision-makers -​ Local, state, or national governments that
●​ Marketing Channels: direct sales, trade purchase goods/services for public Step 3: Product Specification
shows, professional networks services -​ At this step, the technical and other
2.​ B2C -​ Example: a government agency buying value-related specifications of the product
●​ Target Audience: individual consumers computers for schools are examined.
●​ Decision-making Process: emotional,
personal preferences 4.​ Institutional Markets Step 4: Supplier Search
●​ Purchase volume: smaller, individual -​ Nonprofit organizations, hospitals, -​ The next step in buying for a business is
purchases churches, and universities that buy to identify the most suitable vendors.
●​ Relationship focus: one-time, or products for operations. -​ The organizational buyers evaluate the
occasional purchases potential vendors and suppliers based on
 the effectiveness and quality of their -​ First-time purchase requiring extensive A.​ Relationship Marketing
products and services. research -​ Building long-term partnerships with
-​ Example: a company purchasing customers
Step 5: Solicitation of Proposals industrial machinery for the first time -​ Providing after-sales support and
-​ Requesting bids and proposal from consistent quality
suppliers Factors Influencing Business Buying
Behavior B.​ Content Marketing
Step 6: Supplier Selection -​ Creating informative bogs, whitepapers,
-​ Choosing the best vendor based on A.​ Environmental Factors and case studies to attract business
quality, price, service. -​ Economic conditions (e.g., inflation, clients.
supply chain issues)
Step 7: Order-routines Specification -​ Technological changes (e.g., automation, C.​ Trade Shows & Industry Events
-​ Placing the order and specifying terms AI) -​ Showcasing products/services at B2B
-​ Legal and regulatory factors events to build networks
Step 8: Performance Review/ Post-purchase
Evaluation B.​ Organizational Factors D.​ Digital Marketing (B2B focus)
-​ Evaluating supplier performance for -​ Company policies and purchasing -​ LinkedIn Marketing: professional
future purchases. procedures networking for lead generation
-​ Budget constraints and financial priorities -​ Email Marketing: sending newsletters and
Types of B2B Buying Situations personalized offers
1.​ Straight Rebuy C.​ Interpersonal Factors -​ SEO for B2B: optimizing websites to rank
-​ Routine purchase with little evaluation -​ Influence of decision-makers within the for business-related searches
-​ Example: a company reordering office company
supplies -​ Vendor relationships and trust E.​ Account-Based Marketing (ABM)
-​ Targeting high-value clients with
2.​ Modified Rebuy D.​ Individual Factors personalized marketing campaigns
-​ Buyer wants to change product -​ Personal preferences of managers or
specifications, price, or suppliers procurement officers Pricing in Business Markets
-​ Example: a restaurant switching to a -​ Experience and risk tolerance of buyers
different meat supplier for better quality 1.​ Cost-Plus Pricing- adding a fixed
Business Marketing Strategies percentage profit to production costs.
3.​ New Task Buy
 2.​ Competitive Pricing- setting prices based Types of Market Segmentation Dividing the market based on consumer
on competitors’ strategies behaviors, such as:
3.​ Value-Based Pricing- pricing based on A.​ Demographic Segmentation
the perceived value for the buyer Dividing the market based on measurable ●​ Usage rate (light, moderate, heavy users)
4.​ Negotiation-Based Pricing- prices characteristics such as: ●​ Loyalty status (brand loyal, switchers,
determined through negotiations new customers)
●​ Age (teens, adult, seniors) ●​ Benefits sought (convenience, quality,
SEGMENTING AND TARGETING MARKETS ●​ Gender (male, female, non-binary) price)
●​ Income level (low, middle, high income) ●​ Purchase occasion (holiday shoppers,
Market segmentation and targeting are ●​ Education level (highschool, graduate, daily buyers
essential strategies in marketing that help postgraduate)
businesses identify and reach their ideal ●​ Occupation (students, professionals, Targeting: Choosing the Right Market
customers effectively retirees) Segment

What is Market Segmentation? B.​ Geographic Segmentation What is Targeting?

Market segmentation is the process of Dividing the market based on location, After segmenting the market, businesses
dividing a broad consumer or business market including: select one or more segments to focus on, known
into smaller groups (segments) with similar as target markets.
characteristics, needs, and buying behaviors ●​ Region (urban, suburban, rural)
●​ Climate (tropical, cold, humid)
●​ country/state/city Types of Targeting Strategies
Why is Segmentation important? C.​ Psychographic Segmentation
●​ Helps businesses tailor marketing efforts Dividing the market based on lifestyle, 1.​ Mass Marketing (Undifferentiated
to specific audiences values, and personality traits: Marketing)
●​ Improves customer satisfaction by -​ Targeting the entire market with a single
offering relevant products/services ●​ Lifestyle (health-conscious, eco-friendly, strategy
●​ Increases marketing efficiency by adventurous) -​ Suitable for basic products like salt or
focusing resources on high-potential ●​ Personality (introverts vs. extroverts) sugar
customers ●​ Values & Interests (sustainability, luxury,
●​ Enhances competitive advantage by affordability) 2.​ Differentiated Marketing (Segmented
differentiating from competitors Marketing)
D.​ Behavioral Segmentation
 -​ Creating different marketing strategies for 3.​ Communicate the brand message ●​ Reduces business risks- provides data to
different segments consistently support decision-making
-​ Example: a skincare brand offering ●​ Improves marketing strategies- helps in
separate products for men and women Positioning Strategies targeting the right audience with the right
message.
3.​ Concentrated marketing (Niche ●​ Price-Based Positioning: Competing on ●​ Monitors competition- provides insights
Marketing) affordability (e.g., Walmart- “Everyday into competitors’ strengths and
-​ Focusing on one specific market segment Low Prices) weaknesses
-​ Example: a brand selling high-end vegan ●​ Quality-Based Positioning: Competing on ●​ Tracks market trends- keeps businesses
shoes to eco-conscious consumers superior quality (e.g., Apple-”Premium updated on industry developments
Innovation”).
4.​ Micromarketing (local or individual ●​ Convenience-Based Positioning: Types of Marketing Research
marketing) Competing in ease of use (e.g., Amazon-
-​ Customizing products or marketing for “One click shopping”). A.​ Primary Research (First-hand data
very small groups or individuals collection)
-​ Example: personalized starbucks drinks -​ Research conducted directly by the
based on customer preferences. company for a specific purpose
MARKETING RESEARCH
Positioning: Creating a Unique Market Methods of Primary Research
Perception Marketing research is the process of gathering,
analyzing, and interpreting information about a 1.​ Surveys- questionnaires to gather
What is Market Positioning? market, including customers,competitors, and opinions from customers
Positioning is how a brand is perceived in industry trends. It helps businesses make 2.​ Interviews- one-on-one discussions for
the minds of consumers relative to competitors. informed decisions and develop effective in-depth insights
marketing strategies. 3.​ Focus groups- small groups of customers
Steps in Positioning a Brand discussing a product/service
Importance of Marketing Research 4.​ Observation- watching consumer
1.​ Identify key differentiators (price, quality, behavior in real-life settings
service) ●​ Identifies customer needs and 5.​ Experiments (A/B Testing)- testing
2.​ Develop a positioning statement (e.g., preferences- helps businesses different marketing strategies to see what
“The most affordable and durable understand what customers want. works best.
smartphone”).
B. Secondary Research (Existing data analysis) 6.​ Make decisions and take actions- ●​ CRM Systems- stores customer data for
-​ Research that relies on data collected by implement changes based on research better marketing insights
other sources insights ●​ SWOT Analysis- identifies strengths,
weaknesses, opportunities, and threats
Sources of Secondary Research: Research Approaches in Marketing ●​ Competitor Benchmarking- compares
performance with industry rivals.
1.​ Government Reports- economic data, A.​ Qualitative Research (Exploratory)
census reports, etc. ●​ Focuses on opinions, motivations, and PRODUCT CONCEPTS
2.​ Industry reports- market analysis from feelings
research firms. ●​ Uses small sample sizes Product concepts are fundamental to
3.​ Company reports- competitors’ financial ●​ Methods: interviews, focus groups, open marketing and product development. They
statements and sales data ended surveys involve understanding what a product is, its life
4.​ Online data and social media analytics- ●​ Example: a fashion brand conducts cycle, classifications, and strategies for creating
customer reviews, trends, and online interviews to understand why customers value for customers.
discussions prefer certain colors

B.​ Quantitative Research (Statistical)

●​ Uses numerical data for measurable What is a Product?
Steps in the Marketing Research Process results A product is anything that can be offered
●​ Involves large sample sizes to a market to satisfy a customers’ needs or
1.​ Define the problem- identify what needs ●​ Methods: surveys, experiments, data wants. It can be tangible or intangible.
to be researched (e.g., why are sales analysis.
declining?). ●​ Example: a company conducts on online Core Components of a Products
2.​ Develop a research plan- decide on poll to measure customer satisfaction on
research type, data collection methods, a scale of 1-10 1.​ Core benefit level
and budget -​ Fundamental need or want that
3.​ Collect data- conduct surveys, Marketing Research Tools and Techniques consumers satisfy by consuming the
interviews,or analyze existing data product or service.
4.​ Analyze data- use statistical tools and ●​ Google analytics- tracks website visitor -​ Example: smartphone- communication
software to interpret findings behavior
5.​ Present findings- create reports, charts, ●​ Social media analytics- measures 2.​ Generic product level
and recommendations engagement and brand sentiment
 -​ Is a basic version of the product 1.​ Convenience products- low cost, The New Product Development (NPD)
containing only those attributes or frequently purchased, minimal effort. Process
characteristics absolutely necessary for (snacks, soft drinks, toothpaste.) ​ New product development follows a
its functioning but with no distinguishing 2.​ Shopping products- higher involvement, structured process to ensure market success.
features. compared for quality, price, and style.
-​ Example: smartphone- calling, texting (clothing, smartphones, furniture) A.​ Stages of New Product Development
(NPD)
3.​ Expected Product Level DEVELOPING AND MANAGING PRODUCTS
-​ Is a set of attributes or characteristics that 1.​ Idea generation- brainstorming new
buyers normally expect and agree to Developing and managing products product ideas based on customer needs,
when they purchase a product involves creating new products, improving market trends, and technological
-​ Example: smartphone- expected features existing ones, and ensuring they remain advancements.
like camera competitive in the market. Effective product ●​ Example: A food company
development and management are key to a considers launching a plant-based
4.​ Augmented Product Level business’ long-term success. burger due to rising vegan trends.
-​ Includes additional product attributes,
benefits, or related services that What is Product Development? 2.​ Idea screening- evaluating ideas based
distinguish the product from competitors. Product development is the process of on feasibility, market demand, and
-​ Example: smartphone- advance camera designing, creating, and launching a new product business objectives.
capability, waterproof or improving an existing one. It involves market ●​ Example: the company filters out
research, innovation, testing, and marketing unrealistic ideas and selects the
5.​ Potential product level strategies. most promising ones.
-​ Includes all the augmentations and
transformations that a product might Importance of Product Development 3.​ Concept Development & Testing –
ultimately undergo in the future ●​ Helps businesses stay competitive Creating a detailed product concept and
-​ Example: smartphone- upgrades ●​ Meets changing customer needs and gathering feedback from potential
preferences customers.
Types of Products ●​ Introduces new revenue opportunities ●​ Example: Surveys and focus
●​ Increases brand loyalty and customer groups test different flavors and
A.​ Consumer Products (used for personal satisfaction packaging designs for the
consumption) plant-based burger.
 4.​ Business Analysis – Assessing costs, 1.​ Introduction Stage – High costs, low A.​ Product Line Strategies
potential revenue, and profitability. sales, extensive marketing.
●​ Example: The company estimates ●​ Strategy: Awareness campaigns, A product line is a group of related
production costs and forecasts promotions, limited distribution. products under a single brand. Businesses use
sales based on market demand. ●​ Example: Apple launches a new different strategies to manage their product lines:
iPhone with aggressive
5.​ Product Development – Designing advertising. 1.​ Product Line Extension – Adding new
prototypes and refining the product. products to an existing product line.
●​ Example: A food scientist 2.​ Growth Stage – Increasing sales, brand ●​ Example: A shampoo brand
develops different recipes to recognition, rising competition. introduces a conditioner.
perfect the taste and texture. ●​ Strategy: Expand distribution, add
new features, adjust pricing. 2.​ Product Line Stretching – Expanding a
6.​ Test Marketing – Launching the product ●​ Example: A new energy drink product line:
in a limited market to assess consumer gains popularity and expands to ●​ Downward Stretching: Introducing
response. more retail stores. a lower-priced version (e.g.,
●​ Example: Selling the burger in 3.​ Maturity Stage – Sales peak, intense iPhone SE).
select locations before a full-scale competition, market saturation. ●​ Upward Stretching: Introducing a
launch. ●​ Strategy: Discounts, brand premium version (e.g., Toyota
differentiation, new variations. launching Lexus).
7.​ Commercialization – Full-scale ●​ Example: Coca-Cola releases
production and marketing launch. new flavors to maintain interest. 3.​ Product Line Pruning – Removing
●​ Example: National advertising underperforming products.
campaigns and mass distribution 4.​ Decline Stage – Sales drop due to ●​ Example: A soft drink brand stops
to supermarkets. changing trends or new innovations. producing an unpopular flavor.
●​ Strategy: Product repositioning,
Managing Products Throughout Their Life cost-cutting, discontinuation. B. Product Mix Strategies
Cycle ●​ Example: DVD players become
obsolete due to streaming A product mix refers to all the product
Once a product is launched, it enters the services. lines a company offers. Strategies include:
Product Life Cycle (PLC), which consists of four
stages: Product Line and Product Mix Strategies
 1.​ Product Mix Expansion – Adding new ●​ Competitive Advantage: A well-set price
product lines (e.g., Apple introducing B.​ Product Differentiation can help a business compete effectively.
smartwatches).
Differentiation makes a product stand out ●​ Customer Perception: Prices influence
2.​ Product Mix Contraction – Reducing in the market. how customers view a brand (e.g., high
product lines to focus on profitable ones. prices suggest luxury).
Ways to Differentiate a Product:
3.​ Consistency Strategy – Ensuring a strong ●​ Market Positioning: Helps define where a
brand image across all products. 1.​ Features & Innovation: Unique product product stands in the market.
functions (e.g., Tesla’s self-driving mode).
2.​ Design & Packaging: Attractive aesthetics
(e.g., Apple’s sleek design).
3.​ Brand Image: Strong emotional
Product Positioning and Differentiation connection (e.g., Nike’s “Just Do It”). Factors Influencing Pricing Decisions
4.​ Customer Experience: Exceptional
A.​ Product Positioning service (e.g., Ritz-Carlton Hotels). A.​ Internal Factors (Controlled by the
company)
Positioning defines how a product is PRICING CONCEPTS
perceived in the market compared to 1.​ Cost of Production: Price must cover
competitors. Pricing is a critical element of marketing costs and generate profit.
that directly affects profitability, market
Common Positioning Strategies: positioning, and consumer perception. It involves 2.​ Business Objectives: Goals like market
setting the right price for a product based on penetration, profit maximization, or brand
●​ Price-Based Positioning: Offering the various internal and external factors. positioning influence pricing.
lowest price (e.g., Walmart).
●​ Quality-Based Positioning: Highlighting Importance of Pricing in Marketing 3.​ Product Life Cycle Stage: Pricing
superior quality (e.g., Rolex). strategies vary based on the stage (e.g.,
●​ User-Based Positioning: Targeting ●​ Revenue Generation: Price is the only higher prices in the introduction stage).
specific customers (e.g., baby products). element in the marketing mix that directly
●​ Benefit-Based Positioning: Focusing on generates revenue. 4.​ Marketing Strategy: Pricing should align
unique benefits (e.g., Colgate for cavity with product positioning and promotion
protection). efforts.
 ○​ Example: A company sells each D.​ Psychological Pricing
B. External Factors (Outside the company’s unit at exactly its production cost
control) to avoid losses. ●​ Odd-Even Pricing: Pricing at $9.99
instead of $10 to make it seem cheaper.
1.​ Market Demand: Higher demand can B.​ Value-Based Pricing
allow higher prices, while low demand ●​ Bundle Pricing: Offering multiple products
may require discounts. ●​ Customer Perceived Value Pricing: together at a discount.
Setting a price based on the value ○​ Example: Fast food value meals.
2.​ Competitor Pricing: Prices must be customers see in the product.
competitive within the industry. ○​ Example: Apple charges premium ●​ Loss Leader Pricing: Selling a product
prices for iPhones due to brand below cost to attract customers to buy
3.​ Economic Conditions: Inflation, perception. other products.
recession, and exchange rates impact ○​ Example: Supermarkets selling
pricing. C.​ Competition-Based Pricing cheap milk to increase foot traffic.

4.​ Government Regulations: Taxes, tariffs, ●​ Price Matching: Setting prices similar to E.​ Dynamic Pricing
and price controls can affect pricing. competitors.
○​ Example: Gas stations adjusting ●​ Demand-Based Pricing: Adjusting prices
Pricing Strategies prices based on nearby based on demand and time.
competitors. ○​ Example: Airline tickets costing
A.​ Cost-Based Pricing more during peak travel seasons.
●​ Penetration Pricing: Setting a low initial
●​ Cost-Plus Pricing: Adding a fixed price to attract customers. ●​ Surge Pricing: Temporary price hikes due
percentage to production costs. ○​ Example: A streaming service to high demand.
○​ Example: A product costs $50 to offers the first month free to gain ○​ Example: Uber raising fares
make, and a 20% markup results subscribers. during rush hours.
in a $60 selling price.
●​ Premium Pricing: Keeping prices high to Pricing Adjustments and Tactics
●​ Break-Even Pricing: Setting prices to maintain an exclusive brand image.
cover costs without profit/loss. ○​ Example: Luxury brands like ●​ Discounts & Allowances:
Rolex and Gucci. ○​ Cash discounts for early payment.
○​ Seasonal discounts to clear stock.
 ○​ Trade discounts for bulk buyers. ●​ Definition: Managing brand reputation
Importance of Marketing Communications through media coverage and public
●​ Geographical Pricing: Different prices in engagement.
different locations. ●​ Builds brand awareness and customer ●​ Examples: Press releases, sponsorships,
○​ Example: Gasoline prices vary by engagement. CSR activities, media events.
country. ●​ Educates consumers about products and ●​ Advantages: Builds credibility, improves
services. brand image.
●​ Promotional Pricing: Temporary price ●​ Influences customer purchasing ●​ Disadvantages: Less control over
reductions to boost sales. decisions. messaging, results take time.
○​ Example: Black Friday discounts. ●​ Strengthens relationships with customers C.​ Sales Promotion
and stakeholders.
Pricing and the Product Life Cycle (PLC) ●​ Definition: Short-term incentives to boost
The Marketing Communications Mix sales.
●​ Introduction Stage: High (skimming) or (Promotional Mix) ●​ Examples: Discounts, coupons, loyalty
low (penetration) pricing. programs, free samples, contests.
The marketing communications mix ●​ Advantages: Immediate sales boost,
●​ Growth Stage: Competitive pricing to consists of different promotional tools used to attracts new customers.
attract customers. communicate with the target audience. ●​ Disadvantages: Temporary effect, can
reduce perceived value.
●​ Maturity Stage: Price reductions or A.​ Advertising
bundling to maintain sales. D.​ Personal Selling
●​ Definition: Paid, non-personal
●​ Decline Stage: Clearance discounts or communication through various media. ●​ Definition: Direct interaction between a
discontinuation. ●​ Examples: TV commercials, online ads, salesperson and a customer.
billboards, radio, print ads. ●​ Examples: Retail store associates, B2B
MARKETING COMMUNICATIONS ●​ Advantages: Wide reach, brand recall, sales representatives, real estate agents.
​ repetition. ●​ Advantages: Personalized approach, high
Marketing communications (MarCom) is ●​ Disadvantages: Expensive, one-way customer engagement.
how businesses convey messages to customers communication. ●​ Disadvantages: Costly, time-consuming.
and stakeholders. It involves various channels,
strategies, and tools to promote a brand, B.​ Public Relations (PR) E.​ Direct Marketing
product, or service effectively.
 ●​ Definition: Communicating directly with ●​ Consistency: Uniform messaging across 2.​ Pull Strategy: Directly targets consumers
consumers without intermediaries. all channels. to create demand and “pull” products
●​ Examples: Email marketing, ●​ Customer-Centric: Aligning with customer through the supply chain.
telemarketing, direct mail, SMS needs and preferences. ●​ Example: Social media ads
marketing. ●​ Multiple Touchpoints: Using different encouraging customers to request
●​ Advantages: Targeted approach, platforms for engagement. a product at stores.
measurable results. ●​ Measurability: Tracking effectiveness
●​ Disadvantages: Can be intrusive, low using analytics.
response rates.
F.​ Digital Marketing
Example of IMC in Action: B. Emotional vs. Rational Appeals
●​ Definition: Online-based marketing efforts A brand launches a new product with:
using digital platforms. ●​ Emotional Appeal: Creates a connection
●​ Examples: Social media marketing, ●​ TV and online ads (Advertising) through feelings (e.g., happiness, fear,
content marketing, search engine ●​ Press releases and influencer nostalgia).
marketing (SEM), influencer marketing. partnerships (PR) ●​ Rational Appeal: Focuses on facts,
●​ Advantages: Cost-effective, global reach, ●​ Discounts and promo codes (Sales features, and benefits (e.g., price,
highly measurable. Promotion) durability, performance).
●​ Disadvantages: Requires constant ●​ Social media campaigns and email
updates, can be affected by algorithm marketing (Digital & Direct Marketing) C. Storytelling in Marketing
changes.
Marketing Communication Strategies ●​ Using narratives to make brand
Integrated Marketing Communications (IMC) messages more engaging and relatable.
A.​ Push vs. Pull Strategy ●​ Example: Nike’s “Just Do It” campaign
Integrated Marketing Communications featuring real athletes overcoming
(IMC) is the strategic coordination of all 1.​ Push Strategy: Promotes products to challenges.
marketing communication tools to deliver a retailers and distributors to “push” them to
consistent and clear message. customers. Measuring the Effectiveness of Marketing
●​ Example: A manufacturer offers Communications
Key Principles of IMC: incentives to stores to stock their
brand. Key Performance Indicators (KPIs) used to
measure effectiveness:
 tangible elements (e.g., branded
●​ Brand Awareness: Surveys, social media uniforms). 1.​ Product: The service itself (e.g., banking,
mentions. education, healthcare).
●​ Engagement: Click-through rates (CTR), 2.​ Inseparability: Production and 2.​ Price: Pricing strategies like subscription
social media interactions. consumption happen at the same time. fees, hourly rates, or value-based pricing.
●​ Conversion Rates: Percentage of people ●​ Example: A customer experiences 3.​ Place: Service delivery locations
who complete a desired action (e.g., a concert live. (physical or digital, e.g., online banking).
purchases). ●​ Marketing Solution: Train 4.​ Promotion: Advertising, word-of-mouth,
●​ Return on Investment (ROI): Revenue employees to provide excellent social media marketing.
generated vs. marketing spend. customer service.
SERVICES AND NONPROFIT ORGANIZATION 3.​ Inconsistency (Variability): Service quality Additional 3Ps for Services
MARKETING depends on who provides it and when.
●​ Example: Different baristas may 5.​ People: Employees and customers
Marketing for services and nonprofit make slightly different-tasting influence service experiences.
organizations requires different strategies coffee. ●​ Example: Customer service
compared to traditional product marketing. ●​ Marketing Solution: Standardize representatives in airlines.
Services are intangible and experience-based, procedures and offer training ●​ Strategy: Invest in training,
while nonprofits focus on social causes rather programs. uniforms, and employee
than profit-making. satisfaction.
4.​ Inventory (Perishability): Services cannot
Characteristics of Services (The 4 I’s of be stored for future use. 6.​ Process: The system of delivering a
Services) ●​ Example: An empty hotel room for service.
one night results in lost revenue. ●​ Example: Fast-food drive-thru
Unlike physical products, services have ●​ Marketing Solution: Use pricing service process.
unique characteristics: strategies (e.g., discounts for ●​ Strategy: Streamline operations
off-peak hours). for efficiency and customer
1.​ Intangibility: Services cannot be touched, satisfaction.
seen, or stored before purchase. The Service Marketing Mix (7Ps of Services
●​ Example: A haircut or a medical Marketing) 7.​ Physical Evidence: Tangible elements
consultation. that support service quality.
●​ Marketing Solution: Use Traditional 4Ps (Product, Price, Place,
testimonials, guarantees, and Promotion)
 ●​ Example: Clean hotel rooms, ●​ Difficulty in measuring success (impact ●​ Donor and Volunteer Engagement:
branded materials, vs. sales). Keeping donors and volunteers
well-maintained facilities. ●​ Need for public trust and credibility. committed to a nonprofit’s mission.
●​ Strategy: Ensure a professional ●​ Loyalty Programs: Encouraging repeat
environment and branding C. Nonprofit Marketing Strategies service use (e.g., membership discounts).
consistency.
1.​ Cause Marketing: Partnering with ADVERTISING, PUBLIC RELATION, AND
Nonprofit Organization Marketing businesses for mutual benefits. SALES PROMOTION
●​ Example: A shoe brand donates a
Nonprofit organizations (NPOs) focus on pair for every pair purchased. Advertising, Public Relations (PR), and
social causes rather than profits. Their marketing Sales Promotion are three major components of
approach differs from businesses in key ways. 2.​ Fundraising Campaigns: Donation drives, the promotional mix, each serving a unique role
charity events, crowdfunding. in communicating with customers and shaping
A.​ Differences Between Business and brand perception.
Nonprofit Marketing 3.​ Storytelling: Sharing real-life impact
stories to connect emotionally. Advertising
1.​ Business Marketing
●​ Objective: profit generation 4.​ Social Media & Digital Marketing: A.​ Definition and Importance
●​ Target audience: customers Engaging supporters through platforms
buying products like Facebook, Instagram, and YouTube. Advertising is a paid, non-personal
●​ Success metrics: sales, revenue, communication that promotes a product, service,
market share 5.​ Corporate Sponsorships: Partnering with or idea using mass media. It helps businesses:
companies for funding and exposure.
2.​ Nonprofit Marketing ●​ Build brand awareness.
●​ Objective: social cause fulfillment Relationship Marketing in Services and ●​ Reach a large audience quickly.
●​ Donors, volunteers, beneficiaries Nonprofits ●​ Influence consumer attitudes and
●​ Success metrics: donations, behavior.
awareness, community impact ●​ Customer Relationship Management
(CRM): Building long-term relationships B.​ Types of Advertising
B. Unique Challenges in Nonprofit Marketing with service customers.
1.​ Traditional Advertising
●​ Limited budgets and resources.
 ●​ Television (TV): High reach, stakeholders. Unlike advertising, PR is often
expensive, great for brand ●​ Comparative Advertising: Directly earned through media (not paid).
building. comparing to competitors (e.g., Pepsi vs.
●​ Radio: Cost-effective, good for Coca-Cola). B.​ PR Tools and Techniques
local targeting. ●​ Emotional Appeal: Creating connections
●​ Print (Newspapers & Magazines): through feelings (e.g., happiness, fear, 1.​ Press Releases: Official announcements
Ideal for detailed information, nostalgia). distributed to the media.
longer shelf life. ●​ Rational Appeal: Focuses on facts, 2.​ Media Relations: Engaging with
●​ Outdoor (Billboards, Transit Ads): product features, and benefits. journalists and influencers.
High visibility, great for local ●​ Humor Appeal: Engages audiences 3.​ Event Sponsorships: Supporting events
marketing. through entertainment (e.g., funny to enhance brand image.
commercials). 4.​ Corporate Social Responsibility (CSR):
2.​ Digital Advertising Engaging in charitable activities to boost
●​ Social Media Ads (Facebook, D. Measuring Advertising Effectiveness credibility.
Instagram, TikTok, etc.): Highly ●​ Example: A company donates a
targeted, measurable ●​ Reach: The number of people who see portion of profits to a social cause.
engagement. the ad. 5.​ Crisis Management: Handling negative
●​ Search Engine Marketing (Google ●​ Frequency: How often the ad is seen. publicity (e.g., product recalls, social
Ads, PPC): Paid ads appear in ●​ Click-Through Rate (CTR): The media backlash).
search results. percentage of people who click on a
●​ Display Ads (Banner Ads, Video digital ad. C. Differences Between PR and Advertising
Ads): Used on websites, YouTube, ●​ Return on Investment (ROI): Revenue
and apps. generated vs. advertising cost. 1.​ Advertising
●​ Control: full control over the
3.​ Retail Advertising Public Relations (PR) message
●​ Point-of-Purchase Displays: ●​ Credibility: seen as promotional
In-store promotions to attract A.​ Definition and Importance ●​ Cost: paid placements
impulse buyers. ●​ Goal: directly promote a product
●​ Loyalty Programs: Encouraging Public Relations (PR) focuses on
repeat purchases. managing a brand’s reputation and building
positive relationships with the public, media, and
C. Advertising Strategies 2.​ Public Relations
 ●​ Control: limited control (depends
on media) 2.​ Trade-Oriented Promotions (Targeted at DIGITAL MARKETING
●​ Credibility: more credible (earned retailers & distributors)
media) ●​ Trade Discounts: Price reductions Digital marketing refers to all marketing
●​ Cost: usually lower cost (earned for bulk purchases. efforts that use the internet and digital
exposure) ●​ Slotting Fees: Payments to technologies to connect with customers. It
●​ Goal: build trust and brand image retailers for better shelf includes strategies like social media marketing,
placement. search engine optimization (SEO), email
Sales Promotion ●​ Co-Op Advertising: Manufacturers marketing, content marketing, and more.
and retailers share ad costs.
A.​ Definition and Purpose Key Components of Digital Marketing
C. Sales Promotion Strategies
Sales promotion includes short-term 1.​ Search Engine Optimization (SEO)
incentives designed to encourage immediate ●​ Push Strategy: Encouraging retailers to ●​ The process of improving a
purchases or actions. stock more products. website’s visibility in search
●​ Pull Strategy: Creating consumer engine results (Google, Bing).
B.​ Types of Sales Promotions demand to drive sales. ●​ Types of SEO:
●​ Limited-Time Offers: Creating urgency to ○​ On-Page SEO: Optimizing
1.​ Consumer-Oriented Promotions encourage quick action. content, keywords, and
(Targeted at customers) meta tags.
●​ Discounts & Price Promotions: D. Pros and Cons of Sales Promotions ○​ Off-Page SEO: Building
Temporary price reductions. backlinks and domain
●​ Coupons: Offer savings on the 1.​ Advantages authority.
next purchase. ●​ Boosts short-term sales ○​ Technical SEO: Improving
●​ Buy One, Get One Free (BOGO): ●​ Attract new customers website speed,
Encourages bulk buying. ●​ Increases product trial mobile-friendliness, and
●​ Loyalty Programs: Rewarding security.
repeat customers (e.g., Starbucks
Rewards). 2.​ Disadvantages ●​ Example: A local café optimizes
●​ Contests & Sweepstakes: ●​ Reduces brand loyalty if overused its website with “best coffee shop
Engages customers through ●​ Customers may wait for discounts in Gapan” to rank higher on
giveaways. ●​ Temporary effect, not sustainable Google.
 ●​ Creating and distributing valuable ●​ Micro-Influencers (1K-100K
2.​ Search Engine Marketing (SEM) & content to attract and retain followers): Affordable, high
Pay-Per-Click (PPC) customers. engagement.
●​ SEM involves paid ●​ Formats: Blogs, videos, ●​ Macro-Influencers (100K+
advertisements appearing on infographics, e-books, podcasts. followers): Wider reach, higher
search engine results pages. ●​ Example: A fitness brand writes cost.
●​ Google Ads & Bing Ads allow blog posts about “Top 10 Workout ●​ Example: A skincare brand pays a
businesses to bid on keywords. Routines.” beauty influencer to review their
●​ PPC Model: Advertisers pay a fee products on YouTube.
each time their ad is clicked. 5.​ Email Marketing
●​ Example: A milk tea shop runs a ●​ Sending personalized emails to 8.​ Video Marketing
Google Ad targeting “best milk tea build customer relationships and ●​ Using videos to engage
near me.” drive sales. customers on YouTube, TikTok,
●​ Types: Newsletters, promotional Instagram Reels, and Facebook.
3.​ Social Media Marketing (SMM) emails, welcome sequences, ●​ Example: A restaurant creates
●​ Uses platforms like Facebook, abandoned cart reminders. short TikTok videos showcasing
Instagram, TikTok, Twitter, and ●​ Example: An e-commerce store food preparation.
LinkedIn to reach audiences. sends an email offering a 10%
●​ Organic Marketing: Free content discount for first-time customers. 9.​ Mobile Marketing
like posts, stories, and ●​ Targeting customers via mobile
engagement. 6.​ Affiliate Marketing apps, SMS, and mobile-friendly
●​ Paid Advertising: Sponsored ●​ Businesses pay commission to websites.
posts, influencer marketing, and affiliates (partners, influencers) for ●​ Example: A pizza delivery app
targeted ads. driving sales. sends push notifications about
●​ Example: A clothing brand ●​ Example: A blogger earns a discounts.
partners with an Instagram commission for every Amazon
influencer to promote new product bought through their link. 10.​Marketing Automation
arrivals. ●​ Using AI and software to
7.​ Influencer Marketing automate repetitive marketing
4.​ Content Marketing ●​ Collaborating with influencers to tasks.
promote products/services.
 ●​ Example: Automated email ●​ Definition: attracting customers through 1.​ AI and Chatbots: Automated customer
sequences for abandoned cart valuable contents support and personalized
recovery. ●​ Examples: SEO, blogs, social media, recommendations.
email marketing 2.​ Voice Search Optimization: Adapting
Digital Marketing Metrics & Analytics ●​ Goal: build trust and authority content for voice queries (e.g., “Best
coffee near me”).
Key Performance Indicators (KPIs) 2.​ Outbound Marketing (Push) 3.​ Augmented Reality (AR) and Virtual
●​ Definition: Actively reaching out to Reality (VR): Interactive shopping
1.​ Website Traffic: Number of visitors to a customers via ads experiences.
site. ●​ Examples: Display ads, cold emails, 4.​ Short-Form Video Content: TikTok,
2.​ Conversion Rate: Percentage of visitors pop-up ads Instagram Reels, and YouTube Shorts.
who take action (purchase, sign up, etc.). ●​ Goal: Generate quick leads and sales 5.​ Data Privacy & Personalization: Adapting
3.​ Click-Through Rate (CTR): % of people to stricter data protection laws.
who click on an ad or link. B. B2B vs. B2C Digital Marketing
4.​ Engagement Rate: Likes, shares, SOCIAL MEDIA AND MARKETING
comments on social media. 1.​ B2B Marketing
5.​ Return on Investment (ROI): Profit ●​ Target Audience: Businesses, Social media marketing involves using
generated vs. marketing costs. decision-makers​ platforms like Facebook, Instagram, TikTok,
●​ Best Channels​: LinkedIn, Email Twitter, LinkedIn, and YouTube to connect with
Tools for Digital Marketing Analytics Marketing, SEO​ audiences, build brand awareness, drive traffic,
●​ Buying Cycle: Longer, requires research and generate sales.
●​ Google Analytics: Tracks website
performance and user behavior. 2.​ B2C Marketing Importance of Social Media in Marketing
●​ Facebook Business Suite: Measures ad ●​ Target audience: individual consumers
and social media engagement. ●​ Best channels: instagram, facebook, ●​ Reaches a large audience quickly.
●​ SEMrush & Ahrefs: SEO and keyword tiktok ●​ Builds brand awareness and
tracking. ●​ Buying cycle: shorter, impulse buying engagement.
Digital Marketing Strategies Trends in Digital Marketing (2025 and ●​ Cost-effective compared to traditional
Beyond) advertising.
A. Inbound vs. Outbound Marketing ●​ Allows direct interaction with customers.
●​ Provides real-time feedback and insights.
1.​ Inbound Marketing (Pull)
Key Social Media Marketing Strategies
C.​ Paid Social Media Advertising Social Media Analytics & Performance
A.​ Content Strategy Measurement
●​ Facebook & Instagram Ads: Highly
●​ Types of Content: targeted, ideal for retargeting. Key Performance Indicators (KPIs):
○​ Educational (Tips, How-Tos, ●​ TikTok & YouTube Ads: Best for
Infographics). video-based engagement. 1.​ Engagement Rate: Likes, comments,
○​ Entertaining (Memes, Challenges, ●​ LinkedIn Ads: Effective for B2B and shares, saves.
Behind-the-Scenes). corporate branding. 2.​ Reach & Impressions: How many people
○​ Inspirational (Quotes, Success ●​ Twitter/X Ads: Good for real-time event see your content.
Stories, User-Generated Content). promotions. 3.​ Click-Through Rate (CTR): Percentage of
○​ Promotional (Product Showcases, users clicking a link.
Discounts, Ads). D.​ Influencer Marketing 4.​ Follower Growth Rate: Increase in
audience size.
●​ Content Formats: ●​ Micro-Influencers (1K-100K followers): 5.​ Conversion Rate: Percentage of followers
○​ Images, Videos, Live Streams, High engagement, lower cost. making a purchase or taking action.
Stories, Reels, Text Posts. ●​ Macro-Influencers (100K+ followers):
○​ Example: A café posts a Wider reach, expensive. Tools for Social Media Analytics:
behind-the-scenes video of how ●​ Example: A skincare brand partners with
their signature milk tea is made. a beauty vlogger to promote a new ●​ Meta Business Suite (Facebook &
product. Instagram): Tracks ad performance and
B.​ Engagement Strategies engagement.
●​ Google Analytics: Measures social media
●​ Respond to comments and messages. traffic to websites.
●​ Use polls, Q&A sessions, and interactive E.​ Social Commerce (Shoppable Posts) ●​ Hootsuite & Sprout Social: Manages
stories. multiple accounts and schedules posts.
●​ Run contests and giveaways to boost ●​ Facebook & Instagram Shops: Buy
participation. products directly on the platform. Social Media Trends (2025 and Beyond)
●​ Collaborate with influencers and brand ●​ TikTok Shop: Influencer-driven product
advocates. discovery. 1.​ AI-Powered Content Creation & Chatbots
●​ Join trending conversations using ●​ Pinterest Buyable Pins: Visual shopping ●​ AI tools generating personalized posts
relevant hashtags. experience. and responses.
2.​ Short-Form Video Dominance
●​ TikTok, Instagram Reels, YouTube Shorts
continue growing.

3.​ Social Commerce Growth

●​ Direct shopping features expanding on
platforms.

4.​ Augmented Reality (AR) & Virtual Reality

(VR)
●​ AR filters, virtual try-ons for products.

5.​ Niche Community Engagement

●​ Brands focusing on smaller, highly
engaged groups instead of mass
marketing.