Marketing 3

• Market


  The whole region where buyers and sellers of a product are spread and there is such free competition that one price for the product prevails in the entire region
• Market Competition


  • Rivalry among various sellers in the market
  • Pushes everyone involved to reach past their limits
• Market Structures


  The competitive environment in which buyers and sellers operate
• Factors determining degree of competition in a market

  • Number and size of buyers and sellers
  • Similarity or type of products bought and sold
  • Degree of mobility of resources
  • Entry and exit of firms and input owners
  • Degree of knowledge of economic agents regarding prices, costs, demand and supply condition
• Perfect Competition


  • Large number of small businesses selling the same type of product
  • Each seller has negligible impact on market price
  • Homogeneous product sold
  • Perfect mobility of resources
  • Easy entry and exit for businesses
• Monopoly


  • Only one seller of a product with no close substitute
  • Full control of supply and price
  • Difficult or impossible entry for new businesses
  • Most unfavorable structure for consumers
• Monopolistic Competition


  • Large number of businesses selling similar but differentiated products
  • Businesses can compete on price and product characteristics
  • Easy entry and exit of businesses
• Oligopoly


  • Market dominated by a small number of strategically interacting firms
  • Firms sell identical or very similar products
  • High degree of initial capital investment makes entry difficult
  • Firms still compete on price and product/service characteristics
• Consumer Behavior


  The study of consumers and the processes they use to choose, use (consume), and dispose of products and services, including consumers' emotional, mental, and behavioral responses
• Factors affecting consumer behavior

  • Culture (general culture, sub-culture, social classes)
  • Social factors (groups, family, roles, status)
  • Personal factors (age, life cycle stage, occupation, economic circumstance)
  • Psychological factors (motivation, perception, learning, beliefs)
• Bases of market segmentation

  • Demographics (age, sex, income, occupation)
  • Psychographics (how customers see and feel about themselves)
  • Behavioral (conscious and unconscious buying behaviors)
  • Geographical (physical location and characteristics)
• Key principles for a successful business

  • Scalability
  • Big ideas
  • Systems
  • Sustainability
  • Growth
  • Vision
  • Purpose
  • Autonomy
  • Profitability
  • Standards
• Types of business based on organization

  • Sole proprietorship
  • Partnership (general, limited)
  • Corporation
• Types of business based on scale

  • Micro business (assets below ₱1,500,000)
  • Small business (assets ₱1,500,001 to ₱15,000,000)
  • Medium business (assets ₱15,000,001 to ₱60,000,000)
  • Large scale business (assets ₱60,000,000 and above)