SENIOR HIGH SCHOOL

PRINCIPLES OF
MARKETING
QUARTER 3
MODULE 1 - 9

DO_Q3_PrinciplesofMarketing_GRADE 11/12_MODULE 1– 9
Principles of Marketing
Alternative Delivery Mode
Quarter 3
First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writers: John Rainier G. Eusebio, Ruby Alcala Partible

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Layout Artist: Raphael A. Lopez
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 This module was designed and written with you in mind. It is here to help you
master the Principles of Marketing. The scope of this module permits it to be used in
many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

After going through this module, you are expected to:

1. Define and understand marketing principles and goals. LC CODE:

ABM_PM11-Iab-1

Directions: Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. What do you call the state of felt deprivation?
a. Needs b. Wants c. Demand d. Condition
2. What do you call the forms of need that took shape by culture and
personality?
a. Needs b. Wants c. Demand d. Condition
3. What do you call the situation wherein the wants are backed by buying
power? a. Needs b. Wants c. Demand d. Condition

Lesson Understanding Marketing Principles

1 and Goals

Definition of Marketing

– A social and managerial process whereby individuals and groups obtain

what they need and want through creating and exchanging products and value
with others

Simple definition:
– Deliver customer satisfaction at a profit
– By: (1) attracting new customers by promising superior value, and (2) keep
current customers by delivering satisfaction

DO_Q3_PrinciplesofMarketing_
1 GRADE 11/12_LESSON1
Key Takeaways

Marketing refers to all activities a company does to promote and sell products or
services to consumers. Marketing makes use of the "marketing mix," also known as
the four Ps—product, price, place, and promotion. At its core, marketing seeks to
take a product or service, identify its ideal customers, and draw the customers'
attention to the product or service available.

FIVE (5) CORE CONCEPTS

NEEDS, WANTS, DEMANDS

Needs – States of felt deprivation, part of human makeup
– Physical and social needs
Wants – The form needs take (e.g. food => hamburger)
– Shaped by culture and personality
Demands – When wants are backed by buying power

PRODUCTS AND SERVICES

Products – Anything that can be offered to satisfy a need or a want
– Physical products, services, experiences, persons, places, organizations,
information, ideas
Services – Just one kind of a product

VALUE, SATISFACTION, QUALITY

Customer Value – Difference between “value gained by owning and using a
product” and “cost of obtaining the product”
– Value gained not necessarily monetary
– Similarly, cost of obtaining not necessarily monetary
– Customers act on perceived value [and perceived cost]
Customer Satisfaction – Perceived performance relative to expectations
Quality – Closely related to satisfaction
– no defects, ability to satisfy customer needs

EXCHANGE, TRANSACTIONS, RELATIONSHIPS

Exchange – Obtaining a desired object from someone by offering something
in return
– Offerings could be money, product, and service
Transaction – A trade of values between two parties
– Monetary transactions and barter transactions
Relationship (Marketing) – Going beyond short-term transactions
– Long-term relationships with valued customers, partners, etc
– Marketing network – company and all its supporting stakeholders

MARKETS
Market – Place (virtual or physical) where buyers and sellers meet
– The set/place of actual and potential buyers of a product
– The sellers of a product are labeled as the “industry”

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Exercise 1: Give examples of each core concepts of Marketing
• Needs, wants, demands
• Products and services
• Value, satisfaction, quality

Enumerate briefly and discuss the 5 Core Concepts of Marketing

Additional Activities

Briefly explain what is marketing?

DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON1
 This module was designed and written with you in mind. It is here to help you
master the Principles of Marketing. The scope of this module permits it to be used in
many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

After going through this module, you are expected to:

1. Understand marketing traditional and contemporary approaches. LC CODE:

ABM_PM11-Iab-1

Directions: Choose the letter of the best answer.

1. Which of the following marketing approaches uses direct sales and print
marketing?
a. Traditional Marketing c. Contemporary Marketing
b. Digital Marketing d. Newspaper Marketing
2. Which of the following marketing approaches uses new and innovative advertising
means?
a. Traditional Marketing c. Contemporary Marketing
b. Digital Marketing d. Newspaper Marketing
3. What kind of Traditional Marketing uses newspapers, flyers and brochures in
marketing their products?
a. Traditional Marketing c. Contemporary Marketing
b. Print Marketing d. Newspaper Marketing

Understanding Traditional
Lesson
Approaches & Contemporary
2
Approaches

Approaches in Marketing

Traditional Marketing
Relies on offline strategies, including direct sales, direct mail (postcards,
brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers,
coupon books, billboards), referral (also known as word-of-mouth marketing), radio,

DO_Q3_PrinciplesofMarketing_
4 GRADE 11/12_LESSON2
and television. In most cases, the goal of traditional marketing is to create brand
awareness.

Contemporary / Modern Marketing

Refers to theories that stress the importance of customer orientation. They are
strategies that, when implemented, offer greater support for their client base with a
product range that varies depending on what the target market desires. Rather than
what the company wants them to have.

Types of Traditional Marketing

Direct Sales - involves the marketing and sale of products and services directly
to consumers, but not from a fixed retail location. Often, direct sales are done at the
prospective customer’s homes or at their jobs, but direct sales can also be done over
the phone.
Direct Mail - marketing creates awareness of a product or service through
postcards, letters, fliers, brochures and other printed pieces sent through the mail.
This type of marketing is targeted to a specific group of people. For example, a local
flower shop could send postcards to people living within 5 miles of its store. Direct
mail marketing can be expensive: a business must pay for the design and printing
costs to send the direct mail pieces, as well as the postage.
Tradeshows - continue to be a popular marketing channel for many
businesses. For example, in the B2B space, attendees at tradeshows are 34 percent
more likely to make a purchase than people who hear about a product through other
channels.
Print Marketing - creates awareness of a product or service through ads in a
newspaper, magazine, the Yellow Pages, billboards, etc. Print marketing can be
targets (such as a local Yellow Page ad) or can be broad (an ad in a national magazine
or newspaper). Print marketing is expensive.
Referral Marketing (also known as word-of-mouth marketing) - leverages your
existing customers to advocate for your business. It typically costs little to execute
(some businesses provide referral payments to customers who bring in other
customers).
TV / Radio Broadcast - although few small businesses rely on television and
radio advertising to reach their target audience.

Types of Contemporary/Modern Marketing

Internet/Email Marketing - this type of marketing involves delivering content
and promotional offers to customers through email. Effective email marketing
requires good design and optimization. It also requires you to pay attention to how
people consume email.
Social Media Marketing - attempts to leverage the power of social networks
(Facebook, Twitter, Instagram, YouTube and others) to promote a product or service.
These efforts can be paid (buying ads on those networks) or free (engaging and
sharing great content). Social media marketing can be a great waste of time because
it’s not for all businesses and requires careful planning and execution.
Affiliate Marketing - is a type of referral marketing. It leverages others to help
promote your company’s products and services. Affiliate marketing is performance-
based marketing: the affiliates are rewarded for each visitor or customer they bring
to a business.
DO_Q3_PrinciplesofMarketing_
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 Mobile Marketing - involves reaching customers through mobile devices.
Marketing to mobile devices can include text messages, multimedia messages (MMS),
push notifications, in-game marketing, QR codes, and other strategies. Given the
widespread adoption of mobile phones, the future of mobile marketing looks very
bright.

Approaches in Marketing

Traditional Marketing - is what people have been using before the introduction of the
internet. We can divide traditional marketing into different categories.

Contemporary / Modern Marketing - refers to set of marketing actions you do to

attract leads, sell the products and generate customer satisfaction this kind of
marketing is based on the new innovative advertising or marketing strategies.

Exercise 1: Essay
Mr. Deloso is planning to put his very own food business. As his marketing adviser,
what would be the best marketing approach should you advice to Mr. Deloso?

Using the Venn Diagram show the relationship among Marketing Approaches.

Traditional Contemporary

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GRADE 11/12_LESSON2
 Additional Activities

Briefly discuss the following terms:

a. Direct Sales b. Social Media Marketing

This module was designed and written with you in mind. It is here to help you
master Principles of Marketing. The scope of this module permits it to be used in
many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

After going through this module, you are expected to:

1. Understand the definition of Relationship Marketing. LC CODE:

ABM_PM11-Icd-5

Directions: Write the letter of the best answer.

1. What do you call the facet of customer relationship management?
a. Relationship Marketing c. Customer is always right
b. Customer Satisfaction d. Promotion
2. What do mean by CRM?
a. Customer Relationship Management c. Customer Right Management
b. Certified Radio Management d. Certificate of Record Management
3. Which of the following focuses on increasing the number of individual sales?
a. CRM c. Customer Right Management
b. Transactional Marketing d. Relationship Marketing

Lesson
Relationship Marketing
3

Relationship marketing is a facet of customer relationship management (CRM)

that focuses on customer loyalty and long-term customer engagement rather than
shorter-term goals like customer acquisition and individual sales. The goal of
relationship marketing (or customer relationship marketing) is to create strong, even
emotional, customer connections to a brand that can lead to ongoing business, free
word-of-mouth promotion and information from customers that can generate leads.

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 Relationship marketing stands in contrast to the more traditional
transactional marketing approach, which focuses on increasing the number of
individual sales. In the transactional model, the return on customer acquisition cost
may be insufficient. A customer may be convinced to select that brand one time, but
without a strong relationship marketing strategy, the customer may not come back
to that brand in the future. While organizations combine elements of both
relationship and transactional marketing, customer relationship marketing is
starting to play a more important role for many companies.

Importance of Relationship Marketing

Acquiring new customers can be challenging and costly. Relationship
marketing helps retain customers over the long term, which results in customer
loyalty rather than customers purchase once or infrequently.
Relationship marketing is important for its ability to stay in close contact with
customers. By understanding how customers use a brand’s products and services
and observing additional unmet needs, brands can create new features and offerings
to meet those needs, further strengthening the relationship.

Implementing a Relationship Marketing Strategy

Relationship marketing is based on the tenets of customer experience
management (CEM), which focuses on improving customer interactions to foster
better brand loyalty. While these interactions can still occur in person or over the
phone, much of relationship marketing and CEM has taken to the Web.
With the abundance of information on the Web and flourishing use of social media,
most consumers expect to have easy, tailored access to details about a brand and
even expect the opportunity to influence products and services via social media posts
and online reviews. Today, relationship marketing involves creating easy two-way
communication between customers and the business, tracking customer activities
and providing tailored information to customers based on those activities.

Benefits of Relationship Marketing

1. Higher customer lifetime value (CLV). Relationship marketing creates loyal
customers, which leads to repeat purchases and a higher CLV. In addition, loyal
customers are likely to become brand advocates or ambassadors, recommending
products and services to friends, family and business associates.
2. Reduction in marketing and advertising spend. Spending on marketing and
advertising to acquire new customers can be expensive. Relationship marketing
causes customers to do the marketing for a brand, in what’s called buzz
marketing. Customers tell others about a brand’s products and services, which
can drive sales. Brands with exceptional relationship marketing programs spend
little to no money on marketing or advertising.
3. Stronger organizational alignment around the customer. Organizations that
emphasize relationship marketing have a stronger organizational alignment

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 around an exceptional customer experience. The teams work together to create
satisfied and happy customers over the long term.

Examples of Relationship Marketing

There are several types of activities brands can use to facilitate relationship
marketing, including:
1. Provide exceptional customer service as customers who are consistently impressed
by a brand’s customer service are more likely to remain loyal to the brand.
2. Thank customers through a social media post or with a surprise gift card.
3. Solicit customer feedback through surveys, polls and phone calls, which can
create a positive impression that customer opinions are valued and help to create
better products and services.
4. Launch a loyalty program that rewards customers for their continued patronage.
5. Hold customer events to connect with customers and build a community.
6. Create customer advocacy or brand advocacy programs to reward customers who
provide word-of-mouth advertising on a brand’s behalf.
7. Offer discounts or bonuses to long-time or repeat customers.

Enumerate the benefits of Relationship Marketing.

Directions: Write the letter of the best answer.

1. What do you mean by CEM?
a. Customer Experience Management c. Customer Executive Manpower
b. Call Energy Maker d. Career Empowerment Model
2. Which of the following focuses on increasing the number of individual sales?
a. CRM c. Customer Right Management
b. Transactional Marketing d. Relationship Marketing
3. What do mean by CRM?
a. Customer Relationship Management c. Customer Right Management
b. Certified Radio Management d. Certificate of Record Management

Additional Activities

What are the benefits of Relationship Marketing? Briefly discuss your answer.

DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON3
This module was designed and written with you in mind. It is here to help you master
Principles of Marketing. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary
level of students. The lessons are arranged to follow the standard sequence of the
course. But the order in which you read them can be changed to correspond with
the textbook you are now using.

After going through this module, you are expected to:

1. Understand and explain the value of customers. LC CODE: ABM_PM11-Icd-5

Directions: Write the letter of the best answer.

1. What do you call the proactive steps the company is taking to engage customers
and improve the customer experience?
a. Customer Service c. Customer Discount
b. Customer Promotion d. Customer Relations
2. Which of the following is described as highly valuable for businesses, as repeat
customers are more likely to buy from, than leads that have not been converted
yet?
a. Customer Satisfaction c. Customer Discount
b. Customer Promotion d. Customer Loyalty
3. Which of the following shows a long-term, mutually beneficial relationships
between a customer and a company?
a. Customer Dispute c. Customer Discount
b. Customer Promotion d. Positive Customer Relations

Lesson
The Value of Customer Relations
4

Today's consumers have more industry influence than they've ever had in the
past, allowing them to focus on more than just the product that you're selling them.
Now, consumers are interested in what you're selling them, how you're selling it, and
what happens after you've sold it to them. The shift has placed pressure on
companies to invest in their customer service teams and meet rising customer
demands. In fact, a 2018 study showed that 59% of consumers have higher
expectations for customer service than they did in 2017. Businesses are now facing

DO_Q3_PrinciplesofMarketing_
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the challenge of creating an excellent customer experience that's consistent across
every interaction.
To achieve this, many companies are now focusing on how they manage their
customer relationships. Building strong customer relations is a great way to develop
customer loyalty and retain valuable, long-term customers. If you're looking to
improve customer relationships at your company, it helps to understand what
successful customer relations look like and how you can create them with your
clientele.
A successful customer relationship strategy starts on the front lines with your
customer support team. Support professionals manage the highest number of
personal interactions with customers. They’re in an unparalleled position to
transform the customer relationship. By acting with goodwill and providing extra
value they can serve as the keepers of these vital connections. The higher the level
of customer engagement with your company and product, the higher the value your
customer receives and the better the relationship. When you expand the domain of
your customer support superstars, you give them the leeway to strengthen the
customer experience in creative, unexpected ways.
But these activities don’t happen in the vacuum of a single role or function.
Ideally, every employee act as a steward for customer relations. The work of each
team member can and should always contribute to improving customer
relationships.
Customer relations describes the ways that a company will engage with its
customers to improve the customer experience. This includes providing answers to
short-term roadblocks as well as proactively creating long-term solutions that are
geared towards customer success. Customer relations aims to create a mutually
beneficial relationship with the customer that extends beyond the initial purchase.

Customer Relations
Customer relations describes the ways that a company will engage with its
customers to improve the customer experience. This includes providing answers to
short-term roadblocks as well as proactively creating long-term solutions that are
geared towards customer success. Customer relations aims to create a mutually
beneficial relationship with the customer that extends beyond the initial purchase.
Customer relations is present in all aspects of a business, but it's most
prevalent in the customer service department. Customer service teams, customer
support, customer success, and product development all play important roles in
building a healthy customer relationship. Customer relations also extend to
marketing and sales teams as well since these departments have a significant
influence over the company's interactions with the customer.

Functions of Customer Relations

Customer relations include both the reactive and proactive functions

performed by your customer service teams.
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 1. Reactive functions are the efforts made by your team to solve issues that
are reported by customers. This includes tasks like responding to customer
complaints and solving problems with the support team. Being able to solve
unexpected customer roadblocks is essential for brands that are looking to build
strong customer relationships.
2. Proactive functions are the measures taken to ensure a long-term
relationship with customers. These efforts are aimed towards fostering customer
success by consistently satisfying evolving customer needs. Customer success teams
do this by providing information about products and updates as well as by promoting
discounts and exclusive offers. This type of long-term customer relationship
management helps companies create lasting impressions on customers who
eventually become loyal to the brand.
Positive customer relations are long-term, mutually beneficial relationships
between a customer and a company. These relationships are built by creating a
stable environment of trust that results in the continued growth of both the customer
and the organization. Positive customer relations include consistent quality of what
the business is offering as well as how they are offering it the customer.

Benefits of Positive Customer Relations

1. Customer Retention
Companies that do a better job of managing customer relations are more likely to see
higher customer retention rates. In fact, studies show that 61% of customers stop
buying from a company if they have a poor customer experience. Customers know
when your company is being genuine and are willing to overlook your mistakes so
long as you demonstrate a dedication to their success. That type of transparency is
essential when reducing churn as well as when you're building a positive customer
relationship. It can also be financially beneficial too, as studies show increasing
customer retention rates by just 5% can increase your profits by 25% to 95%.
2. Customer Loyalty
When you have a good history with your customers, it makes it more difficult for
your competitors to lure people away from your brand. Customers loyalty is highly
valuable for businesses as repeat customers are more likely to buy from you than
leads that have not yet converted. Building positive customer relations drives
customer loyalty because it creates an intangible incentive for the customer to return
to the same business. Research even shows that 55% of consumers will pay more
money for a product or service if it's a guaranteed good experience. While it may cost
more for companies to invest in building positive customer relations, the payoff in
customer loyalty can be instrumental for generating consistent revenue over time.
3. Customer Satisfaction
Often times it can be hard to tell whether your customers are truly happy with your
business or not. In fact, 91% of unhappy customers who don't complain simply don't
return to a company for another purchase. Having strong customer relations can act
as your insurance policy for preventing these unidentified customers from churning
without warning.

Positive customer relations give companies more insight into their customer's
problems because it creates an open channel of communication for relaying customer
feedback. This leads to better individual interactions with customers which builds
up trust over time and influences their buying decisions. Studies have even found
that consumers believe that a good experience with a company has more influence
over their purchase decision than advertising does. So while the commercial of the
cute dog may get a smile or two from your target audience, customer satisfaction
actually is the result of your brand creating memorable customer experiences.

12 DO_Q3_PrinciplesofMarketing_
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 Cite an example that shows Customer Relations.

Directions: Write the letter of the best answer.

1. Which of the following shows a long-term, mutually beneficial relationships
between a customer and a company?
a. Customer Dispute c. Customer Discount
b. Customer Promotion d. Positive Customer Relations
2. What do you call the proactive steps the company is taking to engage customers
and improve the customer experience?
a. Customer Service c. Customer Discount
b. Customer Promotion d. Customer Relations
3. Which of the following tells whether your customers are truly happy with your
business or not.
a. Customer Satisfaction c. Customer Discount
b. Customer Promotion d. Customer Loyalty

Additional Activities

Create a scenario where a customer is approaching you for a warranty claim. What
will you do?

This module was designed and written with you in mind. It is here to help you master
Principles of Marketing. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary
level of students. The lessons are arranged to follow the standard sequence of the
course. But the order in which you read them can be changed to correspond with
the textbook you are now using.

After going through this module, you are expected to:

1. Understand and develops a program for customer service. LC CODE:

ABM_PM11-Icd-6
DO_Q3_PrinciplesofMarketing_
13 GRADE 11/12_LESSON5
Directions: Write the letter of the best answer.
1. Which of the following refers to good customer service that always starts with
human touch?
a. Personalized b. Competent c. Convenient d. Proactive
2. Which of the following refers to consumers that have identified competency as
the element that plays the biggest role?
a. Personalized b. Competent c. Convenient d. Proactive
3. What do you call the feeling where the customer wants to get in touch with a
customer service through whichever channel is available?
a. Personalized b. Competent c. Convenient d. Proactive

Lesson
Customer Service
5

Customer service is the act of providing support to both prospective and

existing customers. Customer service professionals commonly answer customer
questions through in-person, phone, email, chat, and social media interactions and
may also be responsible for creating documentation for self-service support.
Organizations can also create their own definitions of customer service depending on
their customer service philosophies and the type of support they want to provide. For
example, at Help Scout, we define customer service as the act of providing timely,
empathetic help that keeps customers’ needs at the forefront of every interaction.
When 86% of customers quit doing business with a company due to a bad
experience, it means that businesses must approach every support interaction as an
opportunity to acquire, retain, or upsell. Good customer service is a revenue
generator. It gives customers a complete, cohesive experience that aligns with an
organization’s purpose.
According to a variety of studies, U.S. companies lose more than $62 billion annually
due to poor customer service, and seven out of 10 consumers say they’ve spent more
money to do business with a company that delivers great service. Understanding that
customer service is the cornerstone of your customer experience helps you leverage
it as an opportunity to delight customers and engage them in new, exciting ways.

4 Key Principles Of Good Customer Service

Good customer service has four key qualities: It’s personalized, competent,
convenient, and proactive. These four factors have the biggest influence on the
customer experience.
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1. Personalized. Good customer service always starts with a human touch.
Personalized interactions greatly improve customer service and let customers
know that your company cares about them and their problems. Instead of
thinking of service as a cost, consider it an opportunity to earn your customer’s
business all over again.
2. Competent. Consumers have identified competency as the element that plays the
biggest role in a good customer experience. To be competent, a customer support
professional must have a strong knowledge of the company and its products, as
well as the power to fix the customer’s problems. The more knowledge they have,
the more competent they become.
3. Convenient. Customers want to be able to get in touch with a customer service
representative through whichever channel is the most convenient for them. Offer
support through the channels of communication your customers rely on most,
and make it easy for customers to figure out how to contact you.
4. Proactive. Customers want companies to be proactive in reaching out to them. If
one of your products is backordered or your website is going to experience
downtime, proactively reach out to your customers and explain the problem. They
may not be happy about the situation, but they will be thankful that you kept
them in the loop.

By building your customer service strategy around these four main principles,
you’ll create a positive, hassle-free customer experience for everyone who deals with
your company.

10 Key Customer Service Skills

While delivering consistently good customer service requires work and
alignment across your entire organization, a good place to start is your support team.
It’s important to hire people who genuinely want to help your customers succeed —
and to pay rates that are attractive to skilled professionals.
Here are the 16 customer service skills that every support professional should seek
to develop and every leader should look for when hiring new team members.
1. Patience. Patience is crucial for customer service professionals. After all,
customers who reach out to support are often confused and frustrated. Being
listened to and handled with patience goes a long way in helping customers feel like
you’re going to alleviate their current frustrations. It’s not enough to close out
interactions with customers as quickly as possible. Your team has to be willing to
take the time to listen to and fully understand each customer’s problems and needs.
2. Attentiveness. The ability to truly listen to customers is crucial to providing
great service for a number of reasons. Not only is it important to pay attention to
individual customers’ experiences, but it’s also important to be mindful and attentive
to the feedback that you receive at large. You have to be attentive to pick up on what
customers are telling you without directly saying it.
3. Ability to communicate clearly. The ability to communicate clearly when
working with customers is a key skill because miscommunications can result in
disappointment and frustration. The best customer service professionals know how
to keep their communications with customers simple and leave nothing to doubt.
4. Knowledge of the product. The best customer service professionals have a
deep knowledge of how their companies’ products work. After all, without knowing
your product from front to back, they won’t know how to help when customers run

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into problems. According to Help Scout’s Elyse Roach, “Having that solid product
foundation not only ensures you’ve got the best tricks up your sleeve to help
customers navigate even the most complex situations, it also helps you build an
understanding of their experience so that you can become their strongest advocate.”
5. Ability to use positive language. Effective customer service means having
the ability to make minor changes in your conversational patterns. This can truly go
a long way in creating happy customers. Language is a crucial part of persuasion,
and people (especially customers) create perceptions about you and your company
based on the language that you use. Responding to questions with positive language
can greatly affect how the customer hears the response.
6. Acting skills. Sometimes your team is going to come across people who
you’ll never be able to make happy. Situations outside of your control (such as a
customer who’s having a terrible day) will sometimes creep into your team’s usual
support routine. Every great customer service professional needs basic acting skills
to maintain their usual cheery persona in spite of dealing with people who are just
plain grumpy.
7. Time management skills. On the one hand, it’s good to be patient and spend
a little extra time with customers to understand their problems and needs. On the
other hand, there is a limit to the amount of time you can dedicate to each customer,
so your team needs to be concerned with getting customers what they want in an
efficient manner. The best customer service professionals are quick to recognize
when they can’t help a customer so they can quickly get that customer to someone
who can help.
8. Ability to read customers. It’s important that your team understands some
basic principles of behavioral psychology in order to read customers’ current
emotional states. The best support pros know how to watch and listen for subtle
clues about a customer’s current mood, patience level, personality, etc., which goes
a long way in keeping customer interactions positive.
9. Unflappability. There are a lot of metaphors for this type of personality,
“keeps their cool,” “staying cool under pressure,” and so on, but it all represents the
same thing: The ability some people have to stay calm and even influence others
when things get a little hectic. The best customer service reps know that they can’t
let a heated customer force them to lose their cool. In fact, it is their job to try to be
the “rock” for customers who think the world is falling apart as a result of their
current problems.
10. Goal-oriented focus. Many customer service experts have shown how
giving employees unfettered power to “wow” customers doesn’t always generate the
returns many businesses expect to see. That’s because it leaves employees without
goals, and business goals and customer happiness can work hand-in-hand without
resulting in poor service.

Enumerate the 10 Customer Service Skills

16
Directions: Choose the letter of the correct answer.

1. Which of the following refers to the act of providing support to both prospective
and existing customer?
a. Customer Service b. Competent c. Convenient d. Proactive

2. What do you call the feeling where the customer wants to get in touch with a
customer service through whichever channel is available?
a. Personalized b. Competent c. Convenient d. Proactive

3. Which of the following refers to good customer service always starts with human
touch?
a. Personalized b. Competent c. Convenient d. Proactive

Additional Activities

Given the scenario where an angry customer is approaching you for a

defective product, what will you do? Explain your answer.

This module was designed and written with you in mind. It is here to help you
master Principles of Marketing. The scope of this module permits it to be used in
many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

After going through this module, you are expected to:

1. Understand to distinguish between strategic and marketing

planning in terms of objectives and processes. LC CODE: ABM_PM11-Iei-9

Directions: Choose the letter of the correct answer.

1. Which of the following phase is the most important as it analyzes internal

strengths and weaknesses of the organization?
a. Planning Phase c. Evaluation Phase
b. Implementation Phase d. Closing Phase

DO_Q3_PrinciplesofMarketing_
17
GRADE 11/12_LESSON6
2. Which of the following phase is the action portion of the process?
a. Planning Phase c. Evaluation Phase
b. Implementation Phase d. Closing Phase
3. Which of the following is the checking phase that ensures the results of the
program are in line with the goals set?
a. Planning Phase c. Evaluation Phase
b. Implementation Phase d. Closing Phase

Lesson
Strategic Marketing Plan
6

Strategic Marketing is a process of planning, developing and implementing

maneuvers to obtain a competitive edge in your chosen niche. This process is
necessary to outline and simplify a direct map of the company’s objectives and how
to achieve them. A company wanting to secure a certain share of the market, should
ensure they clearly identify their mission, survey the industry situation, define
specific objectives and develop, implement and evaluate a plan to guarantee they can
provide their customers with the products they need, when they need them. Of
course, the central objective of any company will be customer satisfaction so they
may dominate the market and become leaders in their industry and thus providing
substantial business satisfaction. In order to do that, three phases of marketing
strategy must be perfected to create delight in their customers and beat out the
competition.

3 Phases Of Strategic Marketing Process

1. Planning Phase. The planning phase is the most important as it analyzes
internal strengths and weaknesses, external competition, changes in technology,
industry culture shifts and provides an overall picture of the state of the organization.
2. Implementation Phase. The implementation phase is the action portion of
the process. If the firm cannot carry out the plan that was determined in the early
stages, then the hours spent planning were wasted. However, if the planning was
adequately and competently structured, then the program can be put into effect
through a sales forecast and a budget.
3. Evaluation or Control Phase. The evaluation phase is the checking phase.
This process involves ensuring that the results of the program are in line with the
goals set. The marketing team, especially the manager will need to observe any
deviations in the plan and quickly correct negative deviations to get back on course.

1. Planning Phase.
• SWOT Analysis – Defines the strengths, weaknesses, opportunities and
threats of your business and reveal your company’s position in respect to the

DO_Q3_PrinciplesofMarketing_
18 GRADE 11/12_LESSON6
 market. To maximizes strengths and minimize weaknesses an organization
must perform the following:
✓ Analyze competitors
✓ Research company’s current and prospective customers
✓ Assess company
✓ Identifying trends in the company’s industry
Once this analysis is complete the results should be used as a basis
for developing the company’s marketing plan, which should be measurable
and attainable.
• Marketing program – Once the needs of the customers have been determined,
and the decisions have been made about which products will satisfy those
needs, a marketing program or mix must be developed. This marketing
program is the how aspect of the planning phase, which focuses on the 4Ps and
the budget needed for each element of the mix.
• Set marketing and product goals
✓ Once the customer needs are understood, goals can be set to meet them,
thus increasing the chances of success with new products.
✓ Find points of difference: like your company’s unique selling point, each
product should also have a certain set of traits or characteristics that
makes it superior to the competitive substitute. For example, your product
could be longer lasting, more accessible, more reliable or very user-friendly
so the buyers will choose it over the competition each time.
✓ Position the product: market so that in people’s minds your product is the
“go to” for their problem. Through emotional and mental marketing
customers will associate your brand with their solution and eliminate
choice. For example, many mothers use “Pampers,” when referring to
diapers, as this brand has been positioned as the go to in baby diapering
needs.
✓ Select target markets: based on the research and their commonalities, that
way needs and goals are both met.
• Market-Product focus and Goal Setting – Once the questions of where the
company stands and what it wants to achieve are answered, the next step in
the planning process is determining where the resources will be allocated, and
how to turn plans into focused action. To do this, customers should be divided
into segments to determine what specific marketing technique will reach each
targeted group and what each group needs. Next measurable goals should be
set to get the needed products to the various groups, thus fulfilling the
marketing objectives. For example, if customers are divided into groups of
common needs it’s easier to market them and provide what they have proven
to need at the time. And as well, if customers are grouped by their common
response to marketing, then the cooperation will know the right decisions to
make to reach that specific market segment.
✓ Price strategy: focuses on the list price, price allowances (reductions),
discounts, payment periods, and credit contracts.
✓ Place (Distribution) Strategy: the final ‘P’ in the marketing mix should
focus on distribution channels, outlets and transportation to get the
product to the customer when they need it.
✓ Promotion Strategy: this element of the program should focus on direct
marketing, advertising, public relations and sales promotions that create
brand awareness.
✓ Product Strategy: this element focuses on the features, packaging,
branding and warranty of the product.

DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON6
2. Implementation Phase.
Obtaining Resources – sums of cash to develop and market new products.
Designing marketing organization – there should be put in place a marketing
hierarchy to properly see the plans to fruition.
Developing planning schedules – time needs to be allocated to specific tasks
so they can be accomplished.
Executing the marketing plan – effectively executing the marketing plan will
take attention to detail, and focus on the strategy and tactics defined
in your marketing plan.
3. Evaluation or Control Phase.
A few ways to evaluate the effectiveness of your marketing strategy include
paying attention to:
Strategy versus tactic – strategy defines goals and tactic defines actions to
achieve goals.
Measurable versus vague – have milestones that define when you’ve
achieved your goals.
Actionable versus Contingent – According to Inc.com: “A strategic goal
should be achievable through the tactics that support it, rather than
dependent upon uncontrollable outside forces.”
Marketing strategy should be backed by a business plan with tactical moves
to accomplish goals, or it is useless.

5 Structured Strategic Marketing Thinking Process

#1 Mission, Vision and Values

It is critical at the onset of any business to fully understand what your purpose
is, where you ultimately want to get to and how you want to get there. Unless these
are fully understood and appreciated by everyone within the business, then how can
they guide you to make the right decisions for your business?
#2 Objectives
So, you may have an ultimate vision of where you want to aspire to reach, but
in the next 12-36 months, what are your objectives for the business. What are the
metrics against which you can effectively measure how you are performing, and again
inform decision making?
#3 Clearly define your product offering
This sounds really obvious, but actually a lot of business owners can find this
difficult. It is particularly tricky when the business has been going a few years and
evolved into offering quite a wide range of products and services. Consider how you
can segment your offering. If you can do this with clarity it makes the customer
experience much easier – which ultimately means they will be far more likely to buy
from you. For example, Opportunity Marketing offers marketing strategy and
implementation. Within those two areas we have different packages, but at the top
level we keep it simple, which in turn makes our communications much clearer.
#4 Target audience
This is probably the most common area where SMEs make their biggest
mistake. Time, energy, budget and resources are all wasted because they don’t take
the time to narrow down their ideal target audience. Inevitably what this means is
that they end up attempting to stretch a budget too thinly, trying to market to anyone
who may have a need for their product or service. What’s more is because they

DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON6
haven’t defined any target markets, their communications are also very generic in
nature. It is critical to understand your target audiences and what makes them tick.
#5 Competitive Positioning
Once you have absolute clarity on your offering and your audience you can
then consider how you want to be positioned in your chosen marketplace. No matter
what anyone says, no-one operates in a sector without competition. It is true that
there may not be any like-for-like direct competition, but there are always indirect
competitors (alternative things that customers could be spending their money on).
We have written an article previously on positioning which you can reference, so we
are not going to go into lots of detail here. However, please identify who the
competition is, and how you want to be positioned against them in the mind of the
customer. What makes you different? Why should they choose you over them?

Briefly explain the activities involve in the Phases of Strategic Marketing

Directions: Choose the letter of the best answer.

1. What do you call the process of developing and implementing maneuvers to
obtain competitive edge among competitors?
a. Planning Phase c. Management
b. Customer Plan d. Strategic Marketing
2. What do you mean by SWOT?
a. Strength, Weakness, Opportunity, Threat
b. Strength, Weakness, Opportunity, Treat
c. System, Working, Open, Team
d. System, Windows, Opera, Team
3. Which of the following is the checking phase that ensures the results of the
program are in line with the goals set?
a. Planning Phase c. Evaluation Phase
b. Implementation Phase d. Closing Phase

Additional Activities

You are planning to introduce a new product in the martket. What inital
plan will you do?

DO_Q3_PrinciplesofMarketing_
21
GRADE 11/12_LESSON6
This module was designed and written with you in mind. It is here to help you master
Principles of Marketing. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary
level of students. The lessons are arranged to follow the standard sequence of the
course. But the order in which you read them can be changed to correspond with
the textbook you are now using.

After going through this module, you are expected to:

1. Understand on how to analyze the elements of macro- and micro-

environment and their influence on marketing planning. LC CODE:
ABM_PM11-Iei-10

Directions: Choose the letter of the correct answer.

1. Which of the following environments has the direct impact in your business?
a. Macro-Environment c. Digital Environment
b. Micro-Environment d. both A and B
2. Which of the following environment is generally the economy itself?
a. Macro-Environment c. Virtual Environment
b. Micro-Environment d. both B and C
3. Which of the following in the Micro-Environment the company attracts potential
buyer of our product?
a. customer c. buyer
b. creditor d. investor

Lesson Elements of Micro and Macro-

7 Environments

Micro-Environment
The micro-environment is basically the environment that has a direct impact
on your business. It is related to the particular area where your company operates
and can directly affect all of your business processes. In other words, it consists of
all the factors that affect particularly your business.
They have the ability to influence your daily proceedings and general
performance of the company. Still, the effect that they have is not a long-lasting one.
The micro-environment includes customers, suppliers, resellers, competitors, and
the general public.

DO_Q3_PrinciplesofMarketing_
22 GRADE 11/12_LESSON7
Macro-Environment
The macro-environment is more general - it is the environment in the economy
itself. It has an effect on how all business groups operate, perform, make decisions,
and form strategies simultaneously. It is quite dynamic, which means that a
business has to constantly track its changes.
It consists of external factors that the company itself doesn’t control but is
certainly affected by. The factors that make up the macro-environment are economic
factors, demographic forces, technological factors, natural and physical forces,
political and legal forces, and social and cultural forces.

Micro-Environment Factors:
1. Customers. The kind of customer base that your company attracts, as well as
the reasoning behind purchasing your product, are going to highly affect the way
you create marketing campaigns. Your customers can be international, local, and
so on. Important factors related to customers are as follows:
a. Stability of demand c. Relative profitability
b. Prospects of sale growth d. Intensity of competition
2. Suppliers. If a supplier of a particular product is the largest, or even the only
one, they are certainly going to have a big influence on how successful your
business is. The suppliers are extremely important factors are as follows:
a. Key link in the value delivery process
b. Insurance that your business has the necessary resources
c. Essential determinants in terms of price increase or decrease
3. Resellers. If you decide to sell your product via a third-party reseller, or
middlemen such as wholesalers and retailers, then the success of your marketing
is going to be highly dependent on them. If let’s say, a certain retail seller has a
strong reputation, it will pass on to your product. As a link between you and the
customer, they are important in terms of these factors:
a. Promotion d. Marketing
b. Sale e. Financial mediation
c. Distribution
4. Competitors. Logically, every business that sells the same or a similar kind of
product as you do is your competition on the market. So, their sale and marketing
tactics matter to you a lot. You need to answer various questions, such as how
their product and its price affects yours and how you can make use of that in order
to gain an edge over them. The three factors that matter in this case are as follows:
a. Desire competition c. Product form competition
b. Brand competition
5. The General Public. Of course, every business organization has in its best
interest to appease to the general public. Every step that you take needs to be
viewed from their perspective as well. It is extremely important how your actions
affect others because their opinion can be the one thing that either pushes you
towards success or pulls you down from the pedestal. So, the general public is very
important in terms of the following:
a. Public opinion b. Environmental pollution c. Media

DO_Q3_PrinciplesofMarketing_
23 GRADE 11/12_LESSON7
Macro-Environment Factors
1. Economic factors. Basically, the very environment of the economy can have an
effect on two essential aspects – your company’s levels of production and the
decision-making process of your customers. Some examples of economic factors
affecting business:
a. Interest rates d. Exchange rates
b. Recession e. Inflation
c. Taxes f. Demand / Supply
2. Demographic forces. Each and every chunk of the market is affected by universal
demographic forces. These are age, education level, cultural characteristics,
country and region, lifestyle, and so on.
3. Technological factors. These factors are related to skills and ability that are
implemented into production, as well as all the materials and technology that a
particular product requires to be made. They are essential and can have a big
impact on how well your business is running. It boils down to even the most basic
factors, such as what kind of maintenance trolleys you use in order to preserve
your tools and equipment for as long as you possibly can. Some of the most
common technological factors are:
a. Automation e. Internet connectivity
b. 3D technology f. Wireless charging
c. Engine performance and efficiency g. Security in terms of cryptography
d. Speed/power of computer calculation
4. Natural and physical forces. Every business must also take into account the very
planet and its resources. There are those that can be renewed, such as forests and
agricultural products, and those that cannot, such as coal, minerals, oil, and the
like. Both are strongly related to production. So, natural and physical forces can
be:
a. Climate change e. Weather
b. Laws that regulate the environment f. Pollution
c. Survival of particular biological species
d. Availability of both non-renewable and renewable resources
5. Political and legal forces. The market develops according to the political and legal
environment in various areas. This means that every business needs to be up to
date with such forces worldwide in order to be able to make the right decisions.
This generally includes legal factors such as:
a. Copyright law d. Employment law
b. Fraud law e. Discrimination law
c. Health and Safety law f. Import/Export law
6. Social and cultural forces. Finally, it is crucial to understand that the product
that you bring to the market can have a strong impact on society. For example,
your production needs to eliminate every practice that is hazardous to society and
show that it is socially responsible. There is a wide variety of social and cultural
factors, some of them are as follows:
a. Purchasing habits f. Level of education
b. Religion and beliefs g. Consciousness about health issues
c. Social classes h. Structure and size of a family
d. Growth rate of the population i. Emigration and immigration rates
e. Different lifestyles j. Life expectancy rates and age distribution

DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON7
Key Differences between Micro and Macro Environment
• The micro-environment is a specific environment that is in close contact with
the organization. Wherein, the macro-environment is general to the
organization that can make an impact on all business functions.
• The micro-environment factors can affect a specific business, whereas
factors of the macro-environment influence whole business groups.
• Factors of the micro-environment are under control of the organization but
controlling the macro-environment factors is next to impossible for
organizations.
• Micro-environment factors include internal factors i.e. customers, suppliers,
competitors, etc. whereas macro-environment has external factors like
political, social, economic, etc.
• Micro-environment factors functioning revolve around the strengths and
weaknesses of an organization which is internal to it. However, macro-
environment factors are concerned about opportunities and threats in the
external market of an organization.

Cite at least 3 key differences of Micro and Macro Environments.

Directions: Choose the letter of the correct answer.

1. Which of the following in the Micro-Environment provides supplies and
availability of our products to be sold?
a. customer c. supplier
b. creditor d. investor
2. Which of the following DOES NOT belong to the group?
a. economic factors c. supplier
b. demographic forces d. technological factors
3. Which of the following in the Micro-Environment the company attracts potential
buyer of our product?
a. customer c. buyer
b. creditor d. investor

DO_Q3_PrinciplesofMarketing_
25
GRADE 11/12_LESSON7
 Additional Activities

Create a chart showing the relationship between Micro and Macro

Environment in the Marketing Environment.

This module was designed and written with you in mind. It is here to help you
master Principles of Marketing. The scope of this module permits it to be used in
many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

After going through this module, you are expected to:

1. Define marketing research, its importance to a business enterprise. LC

CODE: ABM_PM11-Iei-11

Directions: Choose the letter of the correct answer.

1. What do you call the process where the company tests the viability of a new
product or service?
a. Market Research c. Primary Information
b. Data Collection d. Secondary Information
2. What does market research allow to discover with regard to their product?
a. Market Research c. Primary Information
b. target market d. Secondary Information
3. Which of the following research has less structured options and function via
more open – ended questions?
a. Specific Research c. Exploratory Research
b. target market d. Secondary Information

Lesson
Marketing Research
8

Market Research is the process of determining the viability of a new service or

product through research conducted directly with potential customers. Market
DO_Q3_PrinciplesofMarketing_
26
GRADE 11/12_LESSON8
research allows a company to discover the target market and get opinions and other
feedback from consumers about their interest in the product or service. This type of
research can be conducted in-house, by the company itself, or by a third-party
company that specializes in market research. It can be done through surveys,
product testing, and focus groups. Test subjects are usually compensated with
product samples and/or paid a small stipend for their time. Market research is a
critical component in the research and development (R&D) of a new product or
service.

Understanding Market Research

The purpose of market research is to look at the market associated with a
particular good or service to ascertain how the audience will receive it. This can
include information gathering for the purpose of market segmentation and product
differentiation, which can be used to tailor advertising efforts or determine which
features are seen as a priority to the consumer. A business must engage in a variety
of tasks to complete the market research process. It needs to gather information
based on the market sector being examined. The business needs to analyze and
interpret the resulting data to determine the presence of any patterns or relevant
data points that it can use in the decision-making process.

How Market Research Gathers Information

Market research consists of a combination of primary information, or what
has been gathered by the company or by a person hired by the company, and
secondary information, or what has been gathered by an outside source.
Primary Information. Primary information is the data that the company has
collected directly or that has been collected by a person or business hired to
conduct the research. This type of information generally falls into two categories:
exploratory and specific research.
a. Exploratory research is a less structured option and functions via more
open-ended questions, and it results in questions or issues being presented that
the company may need to address.
b. Specific research finds answers to previously identified issues that are
often brought to attention through exploratory research.

Secondary Information. Secondary information is data that an outside entity

has already gathered. This can include population information from government
census data, trade association research reports, or presented research from
another business operating within the same market sector.

Example of Market Research

Many companies use market research to test out new products or to get
information from consumers about what kinds of products or services they need and
don't currently have. For example, a company that was considering going into
business might conduct market research to test the viability of its product or service.
If the market research confirms consumer interest, the business can proceed
confidently with the business plan. If not, the company should use the results of the
market research to make adjustments to the product to bring it in line with customer
desires.

DO_Q3_PrinciplesofMarketing_
27 GRADE 11/12_LESSON8
The Development of Market Research
Formal market research began in Germany during the 1920. Around the same
time, market research in the United States took off during the advertising boom of
the Golden Age of Radio. Companies that advertised on the radio began to
understand the demographics that were revealed by how different radio shows were
sponsored.
• Face-to-Face Interviews - From there, companies were developed that would
interview people on the street about publications that they read and whether they
recognized any of the ads or brands within the ads that were published in the
magazines or newspapers the interviewer showed them. Data collected from these
interviews were compared to the circulation of the publication in order to see how
effective those ads were. Market research and surveys were adapted from these early
techniques.
• Phone Research - Data collection then shifted to the telephone, making face-
to-face contact unnecessary. A telephone operator could collect information or
organize focus groups—and do so quickly and in a more organized and orderly
fashion. This method improved the market research model greatly.
• Online Market Research - With people spending more time online, many
market research activities have shifted online as well. While the platform may have
changed, data collection is still mainly done in a survey-style form. But instead of
companies actively seeking participants by finding them on the street or by cold
calling them on the phone, people can choose to sign up and take surveys and offer
opinions when they have time. This makes the process far less intrusive and less
rushed since people can do so on their own time and by their own volition.

Surveys are the most commonly used tool. Kindly answer the following basic
market research survey.

DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON8
Directions: Choose the letter of the correct answer.
1. Which of the following tools is conducted when you are interviewing people on
the street about a product?
a. Face-to-Face Interviews c. Online Market Research
b. Phone Research d. Focus Group
2. Which of the following tools uses the phones for data collection?
a. Face-to-Face Interviews c. Online Market Research
b. Phone Research d. Focus Group
3. Which of the following tools uses the internet in data collection?
a. Face-to-Face Interviews c. Online Market Research
b. Phone Research d. Focus Group

Additional Activities

Create an 8-question Market Survey Questionnaire.

This module was designed and written with you in mind. It is here to help you
master Principles of Marketing. The scope of this module permits it to be used in
many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard
sequence of the course. But the order in which you read them can be changed to
correspond with the textbook you are now using.

After going through this module, you are expected to:

1. Differentiate the buying behavior and decision making of individual / household

customer versus the business customer, LC CODE: ABM_PM11-Iei-13;
ABM_PM11-Iei-14; ABM_PM11-Iei-15

Directions: Choose the letter of the correct answer.

1. What do you call this phase where all the above stages have been passed, the
customer has now finally decided to make a ______________?
a. Household composition c. Industrial Customer
b. purchasing decision d. Evaluation of Alternatives

2. Which of the following in the Behavioral Segmentation DOES NOT belong to the
group?
a. user status c. spending habits
b. climate d. brand interactions

29 DO_Q3_PrinciplesofMarketing_
GRADE 11/12_LESSON9
3. What is this process of dividing a target market into smaller, more defined
categories?
a. user status c. zip code
b. market segmentation d. brand interactions

Lesson
Buying Behavior and Decision Making
9

Consumer Buying Behavior refers to the actions taken (both on and offline) by
consumers before buying a product or service. This process may include consulting
search engines, engaging with social media posts, or a variety of other actions. It is
valuable for businesses to understand this process because it helps businesses
better tailor their marketing initiatives to the marketing efforts that have successfully
influenced consumers to buy in the past. We have all experienced the moment when
we walk into a store and see something that we just have to have. Retailers spend
billions of dollars every year trying to generate that feeling in their customers. Web
campaigns, video and print ads, social media campaigns, and branding seem to
converge as the consumer finally feels a connection to a product and makes a
purchase. So what drives that behavior? And how do you capture and then replicate
that lightning-in-a-bottle moment when a potential customer turns into a buyer?
Consumer Decision Making process involves the consumers to identify their
needs, gather information, evaluate alternatives and then make their buying
decision. The consumer behavior may be determined by economic and psychological
factors and are influenced by environmental factors like social and cultural values.
The consumer decision making behavior is a complex procedure and involves
everything starting from problem recognition to post-purchase activities. Every
consumer has different needs in their daily lives, and these are those needs which
make than to make different decisions.

3 Major Factors that influence Consumer Buyer Behavior

To fully understand how consumer behavior affects marketing, it's vital to
understand the three factors that affect consumer behavior: psychological, personal,
and social.
1. Psychological Factors. In daily life, consumers are being affected by many
issues that are unique to their thought process. Psychological factors can include
perception of a need or situation, the person's ability to learn or understand
information, and an individual's attitude. Each person will respond to a marketing
message based on their perceptions and attitudes.
2. Personal Factors. Personal factors are characteristics that are specific to a
person and may not relate to other people within the same group. These
characteristics may include how a person makes decisions, their unique habits and
interests, and opinions. When considering personal factors, decisions are also
influenced by age, gender, background, culture, and other personal issues.
3. Social Factors. Social influencers are quite diverse and can include a
person's family, social interaction, work or school communities, or any group of
people, a person affiliate with. It can also include a person's social class, which
DO_Q3_PrinciplesofMarketing_
30 GRADE 11/12_LESSON9
involves income, living conditions, and education level. The social factors are very
diverse and can be difficult to analyze when developing marketing plans.

5 Stages of Consumer Decision Making Process

Decisions can be complex, comparing, evaluating, selecting as well as
purchasing from a variety of products depending upon the opinion of a consumer
over a particular product.
1. Need Recognition. Need recognition occurs when a consumer exactly
determines their needs. Consumers may feel like they are missing out something and
needs to address this issue so as to fill in the gap. When businesses are able to
determine when their target market starts developing these needs or wants, they can
avail the ideal opportunity to advertise their brands.
2. Information Search. The buyer decision process tends to change continually
as consumers require obtaining more and more information about products which
can satisfy their needs. Information can also be obtained through recommendations
from people having previous experiences with products. Information for products and
services can be obtained through several sources like:
• Commercial sources: advertisements, promotional campaigns,
sales’ people or packaging of a particular product.
• Personal sources: The needs are discussed with family and
friends who provided product recommendations.
• Public sources: Radio, newspaper and magazines.
• Experiential sources: The own experience of a customer of using
a particular brand.
3. Evaluation of Alternatives. This are available in the market along with the
product lifecycle. Once it has been determined by the customer what can satisfy their
need, they will start seeking out the best option available. This evaluation can be
based upon different factors like quality, price or any other factor which are
important for customers. They may compare prices or read reviews and then select
a product which satisfies their parameters the most.
4. Purchase Decision. When all the above stages have been passed, the
customer has now finally decided to make a purchasing decision. At this stage, the
consumer has evaluated all facts and has arrived at a logical conclusion which is
either based upon the influence from marketing campaigns or upon emotional
connections or personal experiences or a combination of both.
5. Post Purchase Behavior. The purchase of the product is followed by post-
purchase evaluation which refers to analyzing as to whether the product was useful
for the consumer or not. If the product has matched the expectations of the customer,
they will serve as a brand ambassador who can influence other potential consumers
which will increase the customer base of that particular brand. The same is true for
negative experiences; however, it can halt the journey of potential customers towards
the product.

Household Composition
Know who your audience is, in order to truly build a meaningful relationship
with your customers, and sharpen the way you measure your marketing efforts, you
must first understand whether there is a “household” component to your business,
and how to deal with it. We just don’t know enough about the nature of household
roles across the purchase decision making journey. But as businesses, our data can
DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON9
help us find out more. It matters because it has a major influence on how buying
decisions are made.
Household composition influences the size of opportunity for goods and
services and how much is spent in each category. Family life stage is also an
important factor - understanding the ages of the family members, number of adults,
and how categories and spend levels change over time is crucial to marketing more
effectively to households. Lifestyle, affluence and attitudes should also be taken into
account.

Business Customers
Also known as industrial customers, purchase products or services to use in
the production of other products. Such industries include agriculture,
manufacturing, construction, transportation, and communication, among others.
They differ from consumer markets in several respects. Because the customers are
organizations the market tends to have fewer and larger buyers than consumer
markets. This often results in closer buyer-seller relationships, because those who
operate in a market must depend more significantly on one another for supply and
revenue. Business customers also are more concentrated. Demand for business
goods is derived demand, which means it is driven by a demand for consumer goods.
Therefore, demand for business goods is more volatile, because variations in
consumer demand can have a significant impact on business-goods demand.
Business markets are also distinctive in that buyers are professional
purchasers who are highly skilled in negotiating contracts and maximizing efficiency.
In addition, several individuals within the business usually have direct or indirect
influence on the purchasing process.

Using different types of market segmentation allows you to target customers

based on unique characteristics, create more effective marketing campaigns, and
find opportunities in your market. Market segmentation is the process of dividing a
target market into smaller, more defined categories. It segments customers and
audiences into groups that share similar characteristics such as demographics,
interests, needs, or location.
The importance of market segmentation is that it makes it easier to focus
marketing efforts and resources on reaching the most valuable audiences and
achieving business goals. Market segmentation allows you to get to know your
customers, identify what is needed in your market segment, and determine how you
can best meet those needs with your product or service.

Eight Benefits of Market Segmentation

1. Create stronger marketing messages
2. Identify the most effective marketing tactics
3. Design hyper-targeted ads
4. Attract (and convert) quality leads
5. Differentiate your brand from competitors
6. Build deeper customer affinity
7. Identify niche market opportunities
8. Stay focused

DO_Q3_PrinciplesofMarketing_
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GRADE 11/12_LESSON9
The Four Types of Market Segmentation
1. Demographic segmentation

For Household For Business Costumer

Costumer
Age Company size
Gender Industry
Income Job function
Location
Family Situation
Annual Income
Education
Ethnicity

2. Psychographic segmentation

Personality traits Psychological influences Motivations

Attitudes Subconscious and conscious beliefs Priorities
Interests Lifestyles Values

3. Behavioral segmentation

Purchasing habits Spending habits

User status Brand interactions

4. Geographic segmentation

ZIP code Radius around a certain location

City Climate
Country Urban or rural

What are the benefits of Market Segmentation? Discuss at least 3 benefits.

Directions: Choose the letter of the correct answer.

1. Which of the following in the Geographic Segmentation DOES NOT belong to the
group? a. zip code b. country c. city d. status
2. Which of the following in the Behavioral Segmentation DOES NOT belong to the
group? a. user status b. climate c. spending habits d. brand interactions
3. What is this process of dividing a target market into smaller, more defined
categories?
a. user status c. zip code
b. market segmentation d. brand interactions

DO_Q3_PrinciplesofMarketing_
33 GRADE 11/12_LESSON9
 Additional Activities

Complete the table below:

Demographic segmentation

For Household
Costumer Data
Age
Gender
Income
Location
Family Situation
Annual Income
Education
Ethnicity

DO_Q3_PrinciplesofMarketing_
34
GRADE 11/12_LESSON9
References
1. Principles of Marketing - Kotler & Armstrong: Principles of Marketing, 9th edition

Internet Sources
1. https://whatagraph.com/blog/articles/principles-of-marketing
2. https://education.stateuniversity.com/pages/cw1fnp7eau/An-Introduction-to-
the-Principles-of-Marketing.html
3. https://online.wvstateu.edu/news/business/principles-of-marketing/
4. https://searchcustomerexperience.techtarget.com/definition/relationship-
marketing
5. https://www.marketing-schools.org/types-of-marketing/relationship-
marketing.html
6. https://blog.hubspot.com/marketing/traditional-marketing-vs-digital-
marketing#:~:text=Traditional%20marketing%20refers%20to%20any,marketing%2
0helps%20reach%20targeted%20audiences.
7. https://www.marketing-schools.org/types-of-marketing/traditional-
marketing.html
8. https://www.helpscout.com/blog/customer-
relations/#:~:text=Businesses%20bring%20the%20most%20value,business%20can
%20achieve%20over%20time.
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anton-rius
10. https://study.com/academy/lesson/what-is-customer-service-definition-types-
role-in-marketing.html#:~:text=Good%20Customer%20Service-
,Customer%20service%20is%20the%20act%20of%20taking%20care%20of%20the,t
he%20customer's%20requirements%20are%20met.
11. https://www.helpscout.com/blog/customer-service-skills/
12. https://www.cleverism.com/strategic-marketing-process-complete-
guide/#:~:text=process%20is%20genius.-
,DEFINITION%20AND%20PURPOSE%20OF%20STRATEGIC%20MARKETING,and%
20how%20to%20achieve%20them.
13. https://opportunitymarketing.co.uk/blog/what-is-strategic-marketing-and-
why-is-it-so-important
14. https://courses.lumenlearning.com/wm-
retailmanagement/chapter/microenvironment-vs-
macroenvironment/#:~:text=Micro%20(External)%20environment%20%E2%80%93
%20small,forces%20that%20affect%20the%20microenvironment.
15. https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-
and-macro-environment-factors-on-marketing/
16. https://www.investopedia.com/terms/m/market-
research.asp#:~:text=Market%20research%20is%20the%20process,in%20the%20pr
oduct%20or%20service.
17. https://www.hotjar.com/blog/market-research/
18. https://www.demandjump.com/blog/what-is-consumer-buying-behavior
19. https://clootrack.com/knowledge_base/types-of-consumer-behavior/
20. https://www.yotpo.com/blog/consumer-decision-making-process-
ugc/#:~:text=The%20consumer%20decision%20making%20process%20is%20the%
20process%20by%20which,decision%3B%20and%20evaluate%20their%20purchas
e.

35
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Office Address: Pio Valenzuela Street, Marulas, Valenzuela City
Telefax: (02) 8292-4340
Email Address: sdovalenzuela@deped.gov.ph
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