Report in POM (Group 2)

. . MARKET. OPPORTUNITY ANALYSIS AND. CONSUMER ANALYSIS.

. . Learning Competencies. Distinguished between strategic and tactic marketing; and Planning in terms of objectives and processes. (ABM_PM11-le- i-9) Analyze the elements of macro- and micro-environment and their influence to marketing planning. (ABM_PM11-le-i-10).

. . General Objectives. Distinguish between strategic and tactical marketing in terms of Objectives and processes; and Analyze the elements of macro- environment and microenvironment and their influence to marketing planning processes..

. . Market Opportunity. Analysis and. Consumer Analysis.

. . Market Opportunity Analysis. is a tool to determine and access the desirability of a business opportunity. It forms a portion of the business strategy; wherein, before launching a new product or service, the market is analyzed to identify the anticipated revenues and profits from it..

. . Marketing Process. Strategic Marketing Process.

. . Strategic Marketing. Process.

. . What is the Strategic Marketing Process?. The Strategic Marketing Process seeks to establish a clear and concerted direction for all marketing activities of an organization. It includes plans to reach specific goals/objectives..

. . The Strategic Marketing' Process. STEP 1. Mission Identification.

. . Step 1: Mission Identification. The company's mission statement is articulated. A mission statement defines what an organization is, why it exists, its reason for being, its primary customers, the products and services it produces, and its geographical area of operation..

. . Step 2: Situation Analysis. This step assesses and evaluates the market, customers, competitors, and the company's internal and external environment. The objective is to identify the company's strengths and weaknesses, as well as the available opportunities and possible threats..

. . Step 3: Objective Setting. Objectives are marketing targets that are specific, measurable, attainable, realistic, and time-bound (SMART). These enable a company to control its marketing plan and provide a consistent focus all functions of an organization. These objectives include sales revenues, market share, and profits. They are used as basis for strategy selection and development..

. . Step 4: Marketing Strategy Development. The development of a marketing strategy involves market segmentation, identification of target market, positioning, selection of broad market strategies, and the translations of strategies into action plans..

. . Strategy can be broadly classified into three categories. These are cost leadership, differentiation, and focused..

. . Cost Leadership - Is a strategy primarily for achieving low cost leadership among industry competitors. Cost leadership can be achieved low cost supply contracts, overhead expense control, economics of scale, and comprehensive cost- cutting efforts, among others..

. . Differentiation - Seeks to achieve superior product attributes and features that are different from industry competitors. This results in pronounced consumer preferences for the company’s products..

. . Focused - Efforts are concentrated on a relatively small but profitable market. The development of products and services primarily ensures that the needs and want is addressed and that satisfaction is provided.

. . Cost leadership, differentiation, and focused strategies may be implemented through the following sub-categories of strategies:.

. . Forward Integration. This involves gaining. ownership or.

. . Market. Development. This strategy involves. the introduction of existing products or services into a new geographical area or.

. . Retrenchment. This involves halting or reversing declining.

. . Step 5: Strategy Evaluation and Control. After the strategy is developed, periodic monitoring and evaluation are needed. This is necessary to identify deviations and necessary adjustments and corrections..

. . Tactical. Marketing. Process.

. . What is the Tactical Marketing Process?. Completing the strategic marketing process, the tactical marketing process determines the means or tactics to implement the strategies. It involves the identification of specific activities, timetables, responsibilities, and budgets and their implementation. The objective is to ensure that the strategies are implemented successfully.

. . . The Tactical Marketing' Process. STEP 1. Marketing Strategies.

. . Marketing. Micro-. Environment. Marketing. Macro-.

. . Marketing. Micro-Environment.

. . What is the Marketing Micro- Environment?. The marketing micro-environment includes forces that are internal to the company or those that are relevant to its operation. It is composed of the company itself, its suppliers, market intermediaries, customers, competition, and its various public's..

. . What is the Marketing Micro- Environment?. The consideration of these is important as they affect the company’s ability to build and maintain sustainable relationships with current and prospective customers..

. . The Company. Marketing may be the “lifeblood” of an organization, but it cannot exist independently of other organizational functions. These functions include research and development, finance, operations, and human resources. Recognition of the importance of these functions is essential for marketing. Moreover, marketing cannot function in a vacuum as marketing decisions must always be aligned with the organization’s goals and strategies..

. . Suppliers. Suppliers provide raw materials, utilities, labor, capital, and equipment. The availability and prices of these supplies should be monitored. Effective partnership or relationship management with suppliers is essential. The performance of suppliers can directly impact an organization’s ability to continuously satisfy its consumers. Substandard raw materials will negative affect product quality, and the unstable supply process may hurt profits and affect the organization’s ability to provide superior value to customers..

. . Market Intermediaries. Intermediaries are channels that link the organization to its customers. Most products are delivered and distributed to customers through intermediaries. In comparison to organizations distributing products by themselves, distribution through intermediaries is more practical and less costly. The most common intermediaries are distributors, wholesalers, and retailers. Aside from distribution, market intermediaries also help in the promotion of products..

. . Customers. Customers create the demand for products and services. They can either be customers or end-users, businesses, or organizations. Companies must attract and maintain customers through products and services that meet and exceed customer expectations.

. . Competition. The demand for a company’s products and services is affected by the nature and intensity of competition. Knowing a competitor is critical to the success of the firm. Monitoring the movements of competitors is essential because competition is not static and is very volatile. Competitors may introduce new and/or improved products in the market. They may also actively implement price changes and launch advertising and promotional campaigns. To create and maintain relative advantage, companies must be ready and quick to respond to these movements..

. . Public's. Public's may include any individual or entity with an actual or potential interest in company and its products or services. These include the shareholders, the community, financial institutions, media, the government, and society..

. . Identifying Strengths and Weaknesses. Strengths and weaknesses can either be controllable or uncontrollable. The factors present within the company (the company itself) are within the firm’s control. The five other forces (suppliers, market intermediaries, customers, competition, and the various public’s) are essentially uncontrollable although they are within the sphere of the company’s influence..

. . Identifying Strengths and Weaknesses. Marketing micro-economic factors that are favorable to a firm are classified as strengths, while unfavorable factors are termed as weaknesses. Companies should utilize strengths as the foundation for effective strategies, with the most dominant and sustainable strength as its major competitive action, and eventually be converted to strengths..

. . Marketing. Macro-Environment.

. . What is the Marketing Macro- Environment?. All business organizations operate within a particular macro-environment. The marketing macro-environment includes factors that are external to the organization. Essentially, these can neither be influenced nor threats; which the company must avoid..

. . What is the Marketing Macro- Environment?. In business, the macro-environment refers to the economic, politico-legal, sociocultural, demographic, technological, and natural environments..

. . 1. Economic Macro-Environment. The economic macro- environment represents economic factors that can directly affect an organization..

. . 2. Pilitico-legal Macro-Environment. The politico-legal macro-environment includes both political and legal factors. A highly uncertain political situation, such as an impending national election, may affect the stability of businesses. A new administration may have different economic and monetary priorities and may favor a divergent legislative agenda. Political unrest may lead to government instability. This will always cause economic and business uncertainty. Legal factors include laws passed recently, as well as legislative bills that could be enacted into law. The effects of these should be in a company’s planning agenda..

. . 3. Sociocultural Macro-Environment. Each geographical area has a specific culture that dictates how business is conducted. Culture is defined as the beliefs, customs, arts, etc., of a particular society, group, place, on time. Having been colonized by the Spaniards, Americans, and the Japanese, the Filipino sociocultural macro-environment is far more challenging to understand than that of its ASEAN neighbors. The most evident result of Philippine colonial history is colonial mentality. All things being equal, Filipinos rend to prefer products manufactured by certain countries (such as the United States, Japan, and some countries of the European Union) over products manufactured locally..

. . 3. Sociocultural Macro-Environment. Perhaps as a direct result of low wages and relatively high poverty incidence, some Filipino families have to contend with providing for their needs and that of their families on a daily basis. This has led to the necessity of the tingi or piecemeal retailing system. Products that are needed on a small amount and on a daily basis, such as detergents, shampoo, mobile phone credits, candies, and the like are sold individually in small packets or sachets..

. . 3. Sociocultural Macro-Environment. There are few sociocultural traits of Filipino that have been monitored and exploited by companies doing business in the Philippines. Fortunately, the sociocultural macro-environment is not as unpredictable as the economic and politico-legal macro-environment. A country’s culture hardly changes over time, and may sometimes require several generations to alter substantially..

. . 4. Demographic Macro-Environment. A company’s demographic macro- environment consists of changes in population characteristics. These include population rate, gender, age, income composition patterns, civil status, and family size..

. . 5. Technological Macro-Environment. The technological macro-environment is composed of current and impending technological change. This is sometimes the single factors that can cause the rapid acceleration or bring about the untimely demise of products, services, or companies. There are recent examples of this phenomenon. The development of electronic word processing machines and computers with enhanced features have launched Apple Microsoft, etc. Social media platforms, such as Facebook, Twitter, and Instagram, have decreased the popularity of traditional media. The multi-tasking features of smartphones have dethroned the still reliable basic feature phones as devices of choice..

. . 5. Technological Macro-Environment. The changes in the technological macro-environment can be threatening. Properly channeled, they can be opportunity springboards for future successes..

. . 6. Natural Macro-Environment. The natural macro-environment refers to natural resource inputs and environmental concerns. An analysis of the natural environment must also include calamities, often referred to as “acts of God”. These include floods, earthquakes, tornadoes, landslides, tropical cyclones, volcanic eruptions, and storm surges. Specific geographical areas of the world are particularly susceptible to these calamities (e.g. earthquake- prone countries located in the so-called “ring of fire”). Businesses operating in these areas can expect frequent operational disruptions. On the other hand, opportunities also abound in these localities. There could be a higher demand for flashlights, power generating units, medical survival kits, and other goods needed for frequent emergencies..

. . Identifying Opportunities and Threats. After relevant economic, politico-legal, sociocultural, demographic, technological, and natural macro- environmental factors have been identified and analyzed, the company shall now proceed to identify threats or opportunities among these factors. Although both opportunities and threats are external in nature and essentially uncontrollable, opportunities are favorable to a company and, therefore, can be capitalized on, while threats are unfavorable and require mitigation..