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


  This refers to a classified and differentiated 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 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 of 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)
• Scalability


  The capability of a company to sustain or improve its performance in terms of profitability or efficiency when it comes to the volume of sales
• Big Ideas


  No business is more effective than the idea upon which it is built. Meaning having a big idea is essential to the growth of the business
• Systems


  A business is a system in which all parts contribute to the success or failure of the whole. In this, everything must work together from employees to the president to have a successful business
• Sustainability


  A business must be dynamic, or able to thrive in all economic conditions. A business should be able to immediately adapt to changes in its surroundings
• Growth


  All businesses should strive to always grow. Without growth, operations will stagnate and can result in lowered standards of quality. A non-growing business will easily be swallowed by its competitors
• Vision


  A vision is where a business is going. It is what a business hopes to become or be able to do or achieve. Every business should have a clear vision. And every action taken by the business should be in line with its vision
• Purpose


  The business' reason or motivation for existing. A business' purpose is a guide on why your organization exists beyond making money
• Autonomy


  The business is not part of the owner's life and should be considered as its own. A business should have the freedom to decide on actions it should take, without it being restricted
• Profitability


  A business is an economic entity, driving an economic reality, and creating an economic certainty for the community in which it thrives. This means a business should be able to drive economic impact through the income it generates. A business is not a business if it does not profit
• Standards


  A business should create a standard against all businesses. It will be used to measure if a business is successful, or not. All businesses should, firstly, strive to meet the standard measurement for success. Then its goal is to surpass it and create newer standards for others to follow