THE MARK

ET I N G
P LA N
 BUSINESS PLAN

A comprehensive paper that

details the situation analysis,
objectives, strategies and
tactics, and how to monitor
and control the enterprise
 MARKETING PLAN
first components of the business plan

MARKET
voice of the business venture

If we ignore or just give little attention, it becomes

a major source of the entrepreneur’s failure.
Value Proposition And Unique
Selling Proposition

Marketing Mix

Branding
 VALUE PROPOSITION AND
UNIQUE SELLING PROPOSITION

MARKET PROCESS
0 All about knowing the customers
0 starts with identifying the customers’ needs where
you are tasked to create a meaningful value
proposition
0 You study the customers want or desire for you to
build a unique selling proposition
 VALUE PROPOSITION
0 simply states WHY a customer should buy a certain
product or service
0 should cater to the particular needs of the customers
0 major driver in customer purchase or service
availment
0 has to be direct in addressing the problems of the
customers, should have quantifiable benefits, and
should differentiate itself from the competitors.
 TIPS:
0 Prepare a situational analysis that details the problems of the
customers.
0 Make your value proposition straight to the point, simple, and
specific. Target the main objective.
0 Highlight the value of your product or service.
0 Adapt to the language of the market.
0 Add credibility- enhancing elements such as actual
testimonials from customers, partners, and other stakeholders,
putting specific assurance elements and social acceptability
metrics found in social media or press materials.
0 Differentiate your value proposition with your competitors.
 Aling Tere’s Sari-Sari Store
Prior to the establishment of sari-sari store, Aling Tere notices
that there is a convenience store in her vicinity, where many call
center agents, nurses, and construction workers buy food, beverages,
and other products during odd hours (from 10 PM to 6 AM). She
discovers that the customers either ride a bicycle or a jeepney just to
reach the convenience store. There are two sari-sari stores nearby,
but they are close at 9 PM. Aling Tere believes this is an opportunity
for a sari-sari store business with a twist. Aling Tere realizes she
needs to address the needs of the customers to differentiate her
business from the competition. She decides to establish 24/7 sari-
sari store. As an initial investment, Aling Tere hires three employees
who will help her run the sari-sari store in three shifts. During the
break, Aling Tere mans the sari-sari store herself. She designs the
sari-sari store like a semi-convenience store, where customers can
freely go and choose the product that they want. It is also air-
conditioned. For security purposes, she installs a CCTV camera.
 PROCESS QUESTIONS:

0 What can you say on the assessment of Aling

Tere in her place before building the business?
0 Did she conduct proper steps? How?
0 What do you think Aling Tere needs to do to
encourage potential consumers?
 VALUE PROPOSITION

“ Tindahang maaasahan, bukas

kahit anong oras!.”
 WHY?
0 It is straight to the point.
0 It describes the business by referring to TINDAHAN- a Filipino
term for a basic retail store.
0 It highlights the value to the customers that they can buy their
basic necessities from the store.
0 It is easily understandable because it is in Filipino language.
0 There is a compelling assurance from this value proposition
because of the phrase “bukas kahit anong oras” signifies a
guarantee that customers will be served anytime of the day.
0 Lastly, It is only a sari-sari store that is open 24/7, which
makes he store different from the competitors.
 UNIQUE SELLING
PROPOSITION
0 It refers to HOW you will sell the product or service to
your customers.
0 It addresses the customers’ wants and desires.
0 After making the value proposition, you have to figure
out how to advertise or promote certain unique features
of the products or services that you’re trying to sell.
0 You can do this through:
0 Product or service characteristics, promotion strategies
and tactics, distribution centers and supply chains, pricing,
physical attributes or physical evidence, human resource
or human capital and market propositioning strategies
 TIPS:

0 Identify and rank the uniqueness of the product or

service attribute.
0 Be very specific.
0 KISS (Keep it short and simple).
 7Ps of Aling Tere’s Business
7Ps Product/ Place Price Promotion People Packaging Process
Service

USP Retail Near call Competitiv Signage Three Semi- The only
Descriptio products center, e shifts of convenienc sari-sari
n public Aling e store store that
hospital Tere’s operates
and a assisstants 24/7 hours
constructio (6 am-2 a day, 7
n site pm; 2 pm- days a
10 pm; and week
10 pm – 6
am)

Unique? No No No No Yes Yes Yes

Ranking 3 2 1
of USPs
 UNIQUE SELLING
PROPOSITION

“ Tindahang maaasahan, bukas kahit anong oras.”

KNOW YOU
R
CUSTOMER
S
 MARKET RESEARCH

0 most critical task of an entrepreneur

0 a comprehensive process of understanding the
customers’ intricacies and the industry they revolve in
0 aims to scrutinize the target market, their specific
requirements, and the market size where the business
operates
0 The result of the research is the entrepreneurs’ major
investment in a business, as it will lead him or her to the
most effective strategies to employ.
 MARKET SIZE
0 It is simply the size of arena where the
entrepreneur’s business will play.
0 It is the approximation of the number of buyers and
sellers in particular market.
0 It should be determined by the entrepreneurs first
to gauge the vastness or tininess of the market
where he or she intends to join.
 STEPS:
1. Estimate the potential market- the approximate
number of costumers that will buy the product
or avail the service(market space/ market
universe)
2. Eliminate the customers who are probably
unlikely to buy the product or avail the service.
3. Estimate the market share.- plotting and
calculation of the competitors’ market share to
determine the remaining portion for the new
venture.
Market share computation illustration:

Mr. Alvin Antonio, a budding entrepreneur, wants to

establish a rice retailing business in his area in Barangay San
Isidro. He wants to know if this business is worth his capital
and effort. He dug and found out that there are approximately
500 families in Barangay San Isidro with an average of five
members per family. He did a survey and found out that only
475 families eat rice; they consume an average of 1 kilo of
rice per day. There are four other rice retailers in the area
that have been there for 10 years already, and they have
equal market shares of 20%. The other 20% of the market is
buying in bulk(per sack) from groceries on convenience
stores. The average net profit per kilo of rice is Php10. How
big is the market size and what could be the potential market
share of Alvin’s rice retail business?
Market size of rice per business in San Isidro = Number of families
who eat rice * average consumption per annum
The objective of Mr. Antonio in the first year is to capture the
20% of the market by implementing marketing strategies in
pricing (reduced markup of Php2) and promotion (free
delivery of rice for five kilos and up) through text message or
phone call . None of the competitors have thought or done
these strategies yet. In the example, the four rice retailers
are considered direct competitors because they offer
exactly the same product and are structured similarly with
Mr. Antonio’s proposed business. On the other hand, the
groceries and convenience stores are considered indirect
competitors because they don’t offer exactly the same
product type (i.e., rice sold in sacks instead of by kilo) they
are not similarly structured but still compete with Mr.
Antonio’s business correctly.
 Potential market share = market size * estimated market share

However, because Mr. Antonio will reduce the mark up by Php2, the net profit
per kilo will only become Php8.
This market share for a start up business is an attractive venture. MR. Antonio
also has a bigger chance of capturing the market share for competitors if he
implements relevant and enticing marketing strategies.
Let’s Try!
Directions: Look for the market size, market size profit, market
share and market share profit of the following.

Variety Store(House Materials) Milktea House

No. of population: 2000 No. of population: 1500
Consumers: 1850 Consumers: 1025
Ave. consumption: 1 x week Ave. consumption: 3 x month
Net profit: 20 Net profit: 15
t.m.s: 25% t.m.s: 20%
Profit(reduced mark up): 18 Profit(reduced mark up): 12

Bookstore(book)
No. of population: 950
Consumers: 800
Ave. consumption: 2 x quarter
Net profit: 150
t.m.s: 30%
Profit(reduced mark up): 140
 Customer
Requiremen
ts
 Customers
0 are said to be the lifeblood of the business
0 people who buy the products or avail the services of
the entrepreneur
0 Their thoughts, feelings, and experiences shape the
decisions of the business.
0 CUSTOMERS REQUIREMENTS- are the specific
features and characteristics that the customers need
from a product or a service.
PRIMARY an
d
SECONDARY
MARKET
0 Most of the entrepreneurs believe in the
misconception that they can serve all types of
customers or, if not, a wide range of customers. Little
do they know that this thinking may lead to failure.
Entrepreneurs must focus only on customers whom
they can serve beneficially because they will be
wasting resources if they will target all, or worse,
target none.
 MARKET INTELLIGENCE

0 It includes customers profiling, drives the

entrepreneur on what correct strategies and tactics to
employ.
0 This can only be obtained through meticulous market
segmentation process.
 MARKET SEGMENTATION

0 It is a process of grouping similar or homogenous

customers according to demographic,
psychographic, geographic, and behavior.
0 It is necessary in marketing because it gives the
entrepreneur a holistic and general view of the
market group that he or she is serving.
 SECONDARY TARGET
MARKET
0 It is also necessary to spread out the capital
expenditure and the risks as well.
0 They are the customers who don’t have enough
purchasing power or have fewer demands.
0 They may not be your primary target market, but
they can be converted once effective marketing
strategies are implemented.
 DEMOGRAPHIC
SEGMENTATION
0 It is also called as socioeconomic segmentation.
0 It is a process of grouping customers cording to
relevant socioeconomic variables for the business
venture.
0 It includes income range and social class, occupation,
gender and age, religion, and ethnicity.
0 It can usually derived from public documents or the
Internet, thereby giving the entrepreneur an easier
task of collecting data.
 DEMOGRAPHIC
SEGMENTATION
INCOME RANGE & SOCIAL CLASS

0 It represents the purchasing power of the market.

0 From here, the entrepreneur will be able determine to
the extent to which the customers can buy or avail of
the service; therefore, he or she will have an idea on
how the profitability will look.
 SOCIOECONOMIC CLASS OF THE PHILIPPINES
Acc. To 2011 report of SWS(Social Weather Stations)

0 Dominated by class D – 60% of the families earning

an approximate 0f Php 191 000 per year
0 Followed by class E- 30 % of the families earning
only Php 62 000 per year.
0 Then, by class C- 9 % of the population earning Php
603 000 per year.
0 Lastly, class AB- 1% of the families earning Php 1
857 000 per annum.
 OCCUPATION
0 It is used to determine the customers’ income but also
their daily routine where goods and services can be
properly positioned.
GENDER AND AGE GROUP
0 These are data that must be mined because the life
cycle of customers and their gender influence their
buying behavior.
RELIGION AND ETHNICITY
0 This also be taken into consideration because they
affect the way they buy products and avail services.
(Examples: food choices, events and holidays, tradition
and beliefs, spending habits, and conservativeness)
 PSYCHOGRAPHIC
SEGMENTATION
0 It is a process of grouping the customers according to
their perceptions, way of life, motivations, and
inclinations.
PERCEPTION
0 It is a process wherein an individual receives external
stimuli using the five senses.
WAY OF LIFE
0 it gives the entrepreneur an overview of what products
or services can best suit the problems of the customers
that happens on a daily basis.
 MOTIVATION
Two Types:
1. Physiological Motivation- the basic needs; they
seek to avoid pain and give pleasure
2. Psychological Motivation- involves costumer’s
preferences (likes and dislikes)

0 Motivation are also affected by their aspirations and

deprivations.
ASPIRATIONS- what the customers want to achieve
DEPRIVATIONS- customers recognition of certain voids
to fill
 GEOGRAPHIC
SEGMENTATION

0 Grouping the customers according to their

location
0 It can be small street, village, or a barangay. It can
also be municipality, city, province, or region. It
can be as big as a country depending on the
entrepreneur’s business objectives.
 Behavioral Segmentation
0 It is a process of grouping the customers based on
their actions.
0 These behaviors are instigated by occasions, desired
benefits, loyalty, and usage of products and availment
of services.
OCCASIONS-drastically affect the customer’s buying
behavior
DESIRED BENEFITS- it determines the exact needs of
the customers and offer the most suited product or
service for them.
LOYALTY- result of maintaining satisfied customers. “It
is more expensive to sell new customers than to
maintain customers.”
Loyalty programs and rewards separate loyal customers
from the new ones.

USAGE OF PRODUCT or AVAILMENT of SERVICE- it

refers to how often the products are used or the service
being availed. It can identify whether the customers are
light users, medium users, or heavy users.
 MARKET AGGREGATION

It happens if the entrepreneur wants to

target broader market as possible because the
product or the service that the business offers is
suited for an undifferentiated market such as fruits,
vegetables, rice, water, an bread, as well as services
such as haircut, plumbing, or transportation.
TALKING TO
YOUR
CUSTOMER
S
 COMMON METHODS OF
COLLECTING DATA

0 Interview
0 Focus Group Discussion
0 Observation
0 Traditional/ Online Surveys
 INTERVIEW
0 It is a face to face contact between the researcher/
entrepreneur and a respondent where the researcher
asks pertinent questions that will give him significant
pieces of information about the problem that he will
solve.

SAMPLING- the selection of respondents that

statistically represent the total population
TWO TYPES OF INTERVIEW
1. UNSTRUCTURED INTERVIEW- it is an informal
type of interview and does not follow set of
questions.
- The researcher has checklist of high level issues that
he or she wants to clarify with the respondent.
- The respondents can answer freely including
everything that he or she feels about the issues raised
- The researchers usually record the conversation,
review it, and summarizes the findings.
0 STRUCTURED INTERVIEW- employs specific set of
questions and produces quantitative data.
- The researcher has to be very objective and avoid
biases to come up with impartial answers.

CHALLENGES in INTERVIEW
1. Setting an appointment with an interviewee, which
includes the respondent’s permission.
2. Respondent’s indifference to how they share their
opinions.
3. Getting unbiased answers from the respondents.
 FOCUSED GROUP
DISCUSSION
0 It is the process of mining the customer and
noncustomer experience and insights about the
specific product or service.
0 Led by a moderator who keeps the discussion
spontaneous and on the right track
0 The role of the moderator is to encourage a group
of participants to talk about a list of topics
prepared prior to the FGD.
 OBSERVATION

0 The researcher documents the behavioral patterns of

people or of objects or events without necessarily
requiring them to participate in the research process.
TRADITIONAL and ONLINE
SURVEYS
0 It is a process if getting answers from a sample of
respondents derived from a particular population.
0 Very simple practical run because it requires
preparation of predetermined questions answerable
by definite responses using equitable scales.
THE MARKE
T I NG
MIX: The 7P
s of
Marketing
 MARKETING MIX
0 Widely accepted strategic marketing tool that
combines the original 4Ps (Product, place, price,
promotion) with the additional 3Ps (people,
packaging, and process)- in formulating marketing
tactics for a product or service.
0 MODEL to do the following:
1. Conduct situation analysis
2. Set objectives
3. Conduct SWOT analysis
4. Come up with marketing strategies and tactics
 PRODUCT
0 It is any physical good, service, or idea that is created
by an entrepreneur or an innovator in serving the
needs of the customers and addressing their existing
problems.
0 The product and service should not be created before
finding the right customers, because it is very risky
and the resources and time might be put to waste.
 PLACE
0 It refers to the location or the medium of transaction.
0 It depends on the nature of business and the primary
target market.
0 It also covers the product distribution and the whole
business logictics
0 In PHYSICAL LOCATION, the entrepreneur should research
about areas population, the traffic, the people’s common
paths, buying behavior, and their preferences for the
location.
0 In CYBER LOCATON, the entrepreneur should use Web
Analytics data to understand Website performance.
 PRICE
0 The peso value that the entrepreneur assigns to a
certain product or service after considering the costs,
competitions, objectives, positioning, and target
market.
0 It creates revenue for the business.
 PRICE
0 Bundling
0 Penetration pricing
0 Skimming
0 Competitive pricing
0 Product line pricing
0 Psychological Pricing
0 Premium pricing
0 Optional Pricing
0 Cost-based pricing
0 Cost plus pricing
 PROMOTION

0 Involves presenting the products or services in the

public and how these can address the public’s
needs, wants, problems, and desires
0 Primary target market is the main audience.
0 MAIN GOAL- Get the attention
 PROMOTION

0 Advertising
0 Selling
0 Sales promotions
0 Public relations
PEOPLE
 PACKAGING
0 It is how the product or service is presented to the
customers.
0 It is the overall identification of the product or service.
0 It determines the uniqueness of the products from the
competitors.
0 Its ultimate goal is to entice customers to purchase the
product or service.
0 The elements of colors, shape, size, materials must be
considered.
0 What is seen.
 PROCESS

0 step by step procedure or activity workflow that the

entrepreneur or employees follow effectively and
efficiently serve customers
0 Input, throughput, output
0 The employees or the machines process customers’
requests without necessarily being seen by the
customer.
0 INTERNAL: preprocessing, processing, postprocessing
0 EXTERNAL: servicing
 BRAND
0 Refers to the identity of a company, of a service, or of
an entrepreneur himself or herself.
0 It is a symbol of promise or assurance from the
entrepreneur that what it purports to the customers
will happen.
0 A good brand not just entices customers to try the
product but makes them loyal to it.
 BRAND MANAGEMENT
0 It is the supervision of the tangible and the intangible
elements of brand.

0 TANGIBLE: product, packaging, price and location

0 INTANGIBLE: perception and relationship of the
customers with the brand
 BRANDING
0 It is the process of integrating the strategies formed from the
marketing mix to give an identity to the product or service.

0 GOALS:
1. Establishing to target customers that the business is
reliable and is superior in solving the problem.
2. differentiating with the competitors
3. driving the loyalty and retention

PROMOTION: Social Media (Easiest)

 BRAND NAME
It is the major differentiator of the entrepreneur against
the competitors.
It should stick to the mind of the target customers and the
public.

CHARACTERISTICS:
Unique
Extendable
Easy to remember
Can describe the benefits of the product and service
Can be converted to other dialects or language
Can describe a product category
Positive and inspiring