tesorio 6

• Marketing

  • Bringing new products and services to market is difficult and expensive
  • Many firms rely on imagination rather than money to build an engaging image in a noisy marketplace
  • Building brand awareness, which may be minimal or non-existent depending on the stage of the business, is a critical component of gaining market acceptability
• Market Strategy

  • Knowing and analyzing what the best market is
  • Identifying the target market through the process of Market Segmentation
  • Market Segment needs to group according to similar characteristics to obtain the high demand in the particular area
  • Market Segmentation comes with four variables as demographic, geographic, behavioral, and psychographic
• Product Strategy


  • Knowing what product best meets the needs of the target market
  • The easiest way and most profitable products or services to sell are what your customers want to buy
  • Identifying your customer needs and then shape your line of products or services accordingly
  • Weigh several factors such as Availability and terms of supply, Expected sales volume, Cost of the initial inventory, Projected profitability, Number and types of customers, Number and types of competitors, Specific products or services within the line
  • A Product Line is a group of products that have similar characteristics and uses. The number of product lines offered by the business is called product breadth
• Competitive Strategy


  • Knowing what approaches can give the product or business an influential competitive edge
  • Meeting the Competition - simply a process of copying what other direct competitors do
  • Beating the Competition - is a more potent form of the dame tactics, thereby creating some advantage
  • Countering the Competition - selecting new tactics that are explicitly aimed at capitalizing on his weaknesses, thereby creating a new competitive edge for yourself
  • Creating a business image that lets you position your business as a natural magnet for your intended customers
  • Business characteristics used by customers in forming images: Price, Location, Display, Quality, Convenience, Assortment, Advertising, Parking, Atmosphere, Fashion, Service, Sales Personnel
• Marketing Research


  • An entrepreneur needs facts, and the way it will get is through marketing research
  • Determine which is the most profitable target market segments
  • Select new product lines and find out why existing product lines are doing well or poorly
  • Recognize changes in the market
  • Discover ways of improving advertising and promotion
  • Plan realistic sales goals
  • Marketing Research does not have to be expensive to be good, but it must meet your information needs effectively
  • Marketing Research Methods: Facts (Yes/No questions), Quasi-facts (memory-based), Opinions, Attitudes
  • Statistical Research: Census, daily consumption, employment, expenditure, average income
  • Survey Research: Interviews, mail surveys, telephone surveys, demonstration centers
• SWOT Analysis

  • Strengths (positive tangible and intangible attributes, internal to an organization)
  • Weaknesses (factors that detract from an organization's ability to attain the desired goal)
  • Opportunities (external attractive factors that represent the reason for an organization to exist and develop)
  • Threats (external factors beyond an organizations control, which could place the organization mission or operation at risk)
• Product Bundling

  A strategy used to attract buyers to purchase because of the reduced rate of the bundle compared to the total cost of the items if purchased individually
• Volume Discounts


  Rates given to frequent or high-volume users to attract them to purchase the products
• Discounts Based on Time of Purchase


  A price reduction given to buyers who purchase services out of season when demand is lower or when purchased way ahead of time
• Discriminatory Pricing

  Price discrimination occurs when identical items or services are purchased from the same source at different prices
• Psychological Pricing

  A marketing practice based on the theory that specific prices have a psychological impact on consumers
• Promotional Pricing

  Offers discounts and short-term incentives, especially during the introductory stage of the product or during particular activities
• Sales Promotion


  Persuading customers to pay with cash or credit cards
• Samples


  Offers of a trial amount of a product, some free and others charged a small amount
• Coupons


  Certificates that offer buyers savings when they purchase specific products
• Packages


  Putting together a set of complementing products to develop one bundle at a special price
• Premiums


  Goods offered either for free or at a low cost to incentivize consumers to buy a product
• Patronage rewards


  Bonuses in cash or items of value that can be redeemed for regular purchases
• Point of purchase promotion


  Displays and promotions that take place at the point of sale
• Contests and Games


  Give consumers a chance to win something like a trip or cash upon purchasing products and services
• Percentage-of-Sales approach to advertising budgets


  A simple and easy to use method, but has some weaknesses
• Personal Selling


  The person-to-person communication between a salesperson and a prospective customer in which the needs are met in exchange for money or resources
• Leads


  Potential customers who may come from referrals, competitors' clients, new uses, databases, and inquiries
• Qualifying leads


  Determining whether investing time and resources in acquiring the customer will be profitable
• Cold calling


  Sales calls or visits to different business categories to generate business, where the salesperson does not have any prior business dealings with the company and does not know anyone
• Pre-approach


  Salesperson seeks to understand the business opportunities that the prospects can provide the company and makes himself familiar with the company's business and needs
• Approach


  Salesperson starts to communicate with the prospects, establishing rapport and using proper etiquette, protocols, and cultural sensitivity
• Presentation and Demonstration


  Salesperson delivers an impressive product presentation customized to the prospect, including features, benefits, and advantages
• Negotiation and Overcoming Objections


  Arriving at a mutually beneficial exchange of value between the seller and the buyer, and responding to different forms of objections
• Closing the Sale

  Officially closing the sale through a signed contract, by directly or discreetly asking the client to proceed with the purchase
• Follow Up/Maintenance


  Salesperson keeps the relationship going by doing follow-up activities such as a phone call or personal visit to ensure product and service quality
• Ways to keep loyal customers

  • Deliver the goods
  • Be honest
  • Be reliable
  • Solicit feedback
  • Show your appreciation
  • Go the extra mile
  • Stay in touch
  • Treat your loyal customers as friends
• Site Evaluation and Identification


  Considering factors such as economic condition, demographics, foot traffic, parking, accessibility, competition, and site image/history to select the best location for the business
• Site Selection


  Determining the crucial factors for the type of business, and evaluating what is needed, what is available, and what can be afforded
• Conducting a Site Survey


  Considering factors such as traffic flow, transportation facilities, parking facilities, building exterior, building interior, and overall suitability of facilities
• Rental Agreement


  A legal contract between the business owner and the landlord, outlining the terms of the lease such as rental payments and restrictions
• Pricing strategies


  Ways by which tourism businesses offer products and services at the right price
• Prestige Pricing


  Used when the product or service is positioned to be luxurious and elegant
• Market skimming pricing


  A pricing approach in which a marketer sets a relatively high price for a product or service and then gradually lowers
• Pricing for market penetration


  A pricing strategy that involves setting a low initial entry price, often lower than the eventual market price in order to attract new customers