[Topic 4] Marketing Aspect Flashcards
It is considered one of the most important areas in plant design.
Marketing Aspect or Marketing Feasibility Study
Describes market situations where the product can be identified through the demand analysis.
Marketing feasibility study
Describes the general trade practices of an industry or business which sells the same product.
Industry Profile
Inclusions in Industry profile
- Pricing
- Sales
- Methods of transportation
- Promotion
- Channels of distribution
- Supplies
- Packaging resources available
- The values of people
- Opportunities
- Threats
- Strengths
- Weaknesses of the industry
What specific customers do the researchers pinpoint in determining the demand?
Specific customers who are willing and are able to buy the proposed product/s.
The demand is determined through this process.
Segmenting the market geographically and demographically.
This segmentation determines to whom, in particular place, the products will be offered.
Demographical Segmentation
Information needed in demographical segmentation
- Sex
- Age
- Religion
- Educational attainment
- Ethnic group
- Income level
- Occupation
- Credit availability
This represents the number of producers selling similar or substitute products.
Supply
This refers to the producers selling similar or substitute products.
Competitors
This must be done in order to attract customers and even the customers of the competitors.
Marketing Plan Strategies
7 Os in Marketing Plan
- Occupants
- Object
- Objective
- Occasion
- Outlet
- Operations
- Organizations
This refers to the target market including their values, culture, religion, etc.
Occupants
This answers the question “what makes the products attractive to the target market?”.
Object
This answers the question “what are their objectives in buying the product-status symbol, price, quality, etc.?
Objective
In the objective part in marketing plan, how do price increase?
By moving the experience chain up.
What are the levels in the experience chain?
- Material
- Component
- Device
- System
- Services/Application
- Style
- Social Paradigm
This answers the question, “ When do the customers usually buy the products - daily, weekly, during birthdays, anniversaries, or christmas season?
Occasion
This answers the question, “ Where could the target buyers buy the products - from the wholesalers, retailers, brokers, contractors?
Outlet
This answer the questions, “How does the market buy the products, How do the products arrive to your customers?”.
Operations
This answers the question “What is the customer’s role in the family - initiator, consumer, buyer, or decision maker?
Organizations
5 Ps in Marketing Mix
- Product
- Promotion
- Pricing
- Place
- People
This refers to what should be done with the product so that it will be more attractive than the competitor’s products?
Product
This refers to the promotional activity that should be done in order to compete with the promotions of the current suppliers.
Promotion
This refers to what terms of sale will increase the selling value of the products and what pricing technique can be used.
Pricing
What are the Pricing Techniques?
- Cost-Plus Method
- Market-oriented Method
- “Loss” Leader Strategy
- Psychological Pricing
- Value for Money Pricing
- Pricing Factor Segmentation
- Marked Down Pricing
- Bonus-Pack Pricing
A pricing strategy in which the selling price is determined by adding a specific amount called “markup” to the product’s unit cost.
Cost-Plus Method
A pricing strategy where it compares similar products being offered on the market. The seller sets the price higher or lower than their competitors depending on how well their own product matches up.
Market-oriented Method
A pricing strategy where some products may be sold at a losing preposition to attract customers to go to their stores. The mark-up is taken from other products.
“Loss” Leader Strategy
Examples of Loss Leader Strategy
- Price Match Guarantee
- Percent off
- Free shipping
- Extra days for returns
A pricing strategy where it states the price on a lower scale. For example: 2.95 instead of 3 pesos.
Psychological Pricing
A pricing strategy where it sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or historical prices.
Values for Money Pricing
A pricing strategy where price discrimination is applied which refers to the practice of setting a different price for the same product in different segments of the market. For example, this can be for different classes, such as ages, or for different opening times. It favors both the consumer and the seller.
Pricing factor Segmentation
On the part of the consumers, they get the benefit of quality and good tasting products at reduced prices.
Pricing factor segmentation
On the other hand, the seller avoids wastage and minimizes the cost of storage.
Pricing factor segmentation
The “seller” subdivides the market into the groups responsive to price and price deals, product quality, etc.
Pricing factor segmentation
In cases where demand is limited and competition is intense, the usual mark-up pricing approach is temporarily suspended in favor of a markdown to capture a segment of the market.
Market Down Pricing
The concept that the lower you you can make your price, the more you sell, and you generate revenues sufficient to cover costs and provide a profit.
Marked Down Pricing
For end-users, this is commonly used so that they will buy more than the required quantity. Example: Buy 6 at the price of 5
Bonus-pack Pricing
This is where the product or service is manufactured, displayed, sold, or distributed. Associated with the distribution channel.
Place
This refers to the sales personnel who will be selling and promoting the products. Do they know the product, are they committed to the company, or are they motivated and satisfied?
People
