COMMERCIAL

MANAGEMENT
DR. ENRIQUE MAMANI
 COMMERCIAL
MANAGEMENT
^ Definition

^ It is the function in charge of making the

organization known and opening it to the outside
world. It deals with two fundamental problems:
customer satisfaction and market participation or
growth. Given this, it is necessary to develop an
adequate quality system, an efficient customer
service department, and quality products or
services.
 COMMERCIAL
MANAGEMENT
-------------------(05
^ Commercial Management is part
essential of
the
operation of the
Organizations: They are linked to
decisions regarding which markets
to access; with which products;
which pricing policy to apply.
and how
develop a systematic
effective commercial.
 COMMERCIAL
MANAGEMENT
^ It is one of the functional areas of the company whose tasks are
related to sales and marketing, including:
^ The study of the external environment and the capabilities of the
organization itself in order to achieve sales forecasts.
^ The organization and control of commercial and marketing activities,
including the definition of commercial strategies and action policies.
^ Customer relations including the definition of the method of
fundraising, the definition of complementary services and after-sales
services and claims management.
^ Sales force management, including its size and structuring
configuration.
 COMMERCIAL
MANAGEMENT
---------------cog------------
Business management is a term used to describe
the non-technical business disciplines of a
company or organization, particularly the
management of revenues and expenses to generate
a financial return.
 COMMERCIAL FUNCTION

It is the ordered set of actions aimed at selling

products or services to consumers
and coordinated with the rest of
the company's functions.

The commercial function will

seek to ensure that the value
perceived by the client of our
product or service is maximum.
Main functions of the Commercial Function:

•Decision making:
•About
- Which market to target?
- What price to set?
- Product or service format
- Distribution channels
- Media (company communication policy)
- Sales staff or forces
•Actions directed towards the
As a consequence of the decisions taken, the commercial
exterior.
function directs its activity towards the foreign market.
These actions of the commercial function are fundamentally
communication-related:
- Distribution actions
- Transport
- Logistics
- After-sales service
- Billing etc…
The sales function allowed us to obtain complete
information about the client (activities, motivations, desires,
sales brakes, etc.)
Actions directed towards the interior
These are aimed at obtaining information about customers
and competitors. A detailed analysis of this information will
enrich and guarantee business decisions such as:

- Modifications to existing products and/or production of

new products or services.

- Pricing policy

- New relocation of sales force etc.…

 Importance of Commercial Management

Commercial management is one of the fundamental tools

for a company to achieve its objectives and helps to keep
all financial activities (income) under control.

It allows you to clearly see the relationship that sales staff

have with the company's clients.

It allows for the correct coordination of the entire sales

team.

It allows you to have a great knowledge about the market

and the environment of the company itself.
 SALES AREA ORGANIZATION.
----------------------------C3------------------------------
^ The sales department's main function is to market the
goods or services offered by the company, through the
sales force. For this department to function correctly,
“techniques and policies in accordance with the product
to be sold” must be applied.
 SALES AREA ORGANIZATION
----------------------------C3------------------------------
^ Depending on the size of the company, especially if it is
medium or large, the sales department can be divided into
sectors that serve different areas of the population.
Example:
^ In Peru, we can serve clients from the following areas:
North, South, Center and East.
 SALES
AREA ORGANIZATION
^ The functions of the Sales Department can be divided
into:

GR 1. Basic Functions

^ 2. Sales Force Organization.

 SALES
AREA ORGANIZATION
^ Basic functions are divided into:
^ Administrative
^ Operational
^ Techniques
SALES AREA
ORGANIZATION
^ Administrative functions:
^ “They consist of the formulation of commercial standards,
planning, organizing, controlling, evaluating the
performance of sellers, indicating strategies to follow in
sales, etc.”
 SALES AREA
ORGANIZATION
----------------------------C3------------------------------
^ Operational functions:
^ are those related to directors, managers and sales
supervisors. Among the tasks they perform are the
following: • Hiring, supervising and evaluating the sales
force. • Conducting market research. • Regular sales-
related meetings and boards. • Organization of
commercial promotions.
 SALES AREA
ORGANIZATION
--------------------C3-------------------
^ Technical features:
^ They are made by technical managers and their
collaborators and are responsible for solving operational
problems that arise in the sales area.
 AREA ORGANIZATION
SALES
-------------------------C3---------------------------
^ Sales force organization:
^ The sales force is the group of sellers that the company
has, it is what generally links the company with current
and potential customers.
^ This can be organized
^ By geographic area
^ Per client
^ By product/service lines
^ By services
 SALES AREA
ORGANIZATION

The function of the sales department is to plan, execute and control activities in
this field. Because many surprises occur during the development of sales plans,
the sales department must continuously monitor and control sales activities.
Every company starts with four simple functions: 1. Finance
2 .Accounting
3 .Operations
4 .Sales
The sales function is headed by a vice president of the department, whose
primary responsibility is to direct the sales force and in some cases also make
some sales for the company.
As the company expands, the need for market research, advertising, and
customer service on a more continuous and expert basis increases.
 SALES AREA ORGANIZATION
The sales department is responsible for the following
activities:

• Develop sales forecasts

• Set prices
• Carry out advertising and sales promotion
• Maintain adequate control and analysis of sales.
 AREA ORGANIZATION OF
SALES

Among the control measures to carry out sales operations we have to:

- The sales department must maintain a direct relationship with the warehouse in
order to have sufficient inventory to meet demand.

- Salespeople must have a close relationship with the credit department to avoid
selling to delinquent customers, and to know the credit lines and balance of each
customer.

- There should be no preferences between clients regarding terms or discounts,

unless authorized by general management.

As you can see, the sales department plays a key role in the success of the
company, so having a clear understanding of its functions will be very helpful
when planning the company's sales.
 CONSUMER BEHAVIOR
-------------------C3-------------------
^ According to ARELLANO, R. (2002), Consumer
behavior is that internal or external activity of the
individual or group of individuals directed to the
satisfaction of their needs through the acquisition of
goods or services”, it speaks of a behavior specifically
directed to the satisfaction of needs through the use of
goods or services or external activities (search for a
product, physical purchase and its transportation) and
internal activities (the desire for a product, brand loyalty,
psychological influence produced by advertising).
 CONSUMER BEHAVIOR

^ Nowadays, behavior is considered as a set of elementary

activities, both mental and physical, such as preparing a
shopping list, searching for information, discussing the
G4

distribution of the family budget, etc. that somehow

influence each other and induce the act of purchasing, the
choice of a product or brand, or a service.
^ The study of behavior of the
consumer raises multiple
difficulties:
CRConsumers do not They usually be
fully conscious of by that
they buy a product or a certain brand.
CR The consumers to slight No
We want to reveal the truth.
C& The consumers We don't say the Consumer Behavior
TRUE.
CR We often try to communicate much more than we actually know.
CR We consumers are complex.
CR Internal emotions, our affectivity us drives
frequently towards ill-considered, impulsive, thoughtless and even
incoherent reactions. Apmduj

cww»

ütap d MMeiwwu
 TYPES OF CONSUMERS

^ Staff
They are individuals who buy
goods and services for their
own use and thus be able to
satisfy their personal needs or
uses.
Organizational Consumer

Includes individuals and companies such as: Government

agencies, private businesses,
service companies which must
purchase products, equipment
and services to operate their
businesses for profit or not.
According to J. MARSHALL: “The basis of this theory,
one of whose most relevant exponents, is that man always
Economic Theory

seeks to maximize his utility. That is

to say, man will always try to obtain
the product that gives him the most
utility based on the price he will pay
for it; in other words, man will
always try to maximize the cost-
benefit ratio in every activity of his
life."
Learning Theory

It states that people usually buy

only those products that they
know and that have previously
given them good results, leaving
aside the analysis of many of the
existing alternatives.

Gilldté
Psychoanalytic
Rolando
Theory Arellano points out that: “Most of the actions of individuals are
oriented to satisfy sexual needs, but since
society prevents the open manifestation of
these tendencies, they manifest themselves in a
hidden way through everyday behavior. For
example, the use of a tie by men (a totally
unnecessary and even annoying item of
clothing, but very popular) would be driven by
the highly sexual symbolism of this garment.
The case of cosmetics and women's fashion is
certainly one of the most notable, as it is
evident that products such as lipstick, bras,
high-heeled shoes, etc., fundamentally seek to
highlight specific elements of sexual
attractiveness in their users.
Sociological School
“The main reason that guides
people's behavior is their need for
integration into their social group.
Thus, many people will have
behaviors with little or no economic
or psychological background,
behaviors that are fundamentally
intended to please others.
The clearest example of this situation
seems to be the phenomenon of
fashion.
Social factors in consumer behavior
Primary Group: is one in which personal relationships are face to face with
some frequency and at an intimate and emotional level. In these groups, norms
and roles are developed. Family, work groups, friends, are examples of such
groups. The primary group exercises informal control over its members, a
control that is not institutionalized but no less effective.
Secondary group: This includes all groups that are not primary, such as political
groups, aid associations, neighbourhood committees, etc. In these groups,
individuals are not interested in others as people, but THEI
rather as functionaries
ER
who play a role. Unlike primary groups, the control applied
•0I is formal, meaning
there are regulations that establish rules and sanctions.•,[
or

PIIIH•- -
mamdelmuu
'Consumer
Reference groups: This is the group to which
one wants to belong. It can be defined as a
group of people who influence activities,
values, behaviors and can influence the
purchase of a product and/or the choice of
brand.

The most commonly used reference groups

are: personalities, experts and the “common
man”.
Celebrities are used to provide testimonials or
endorsements or as spokespersons for the
company. Experts may be real experts or they
may be actors playing such a role. The
common man approach is designed to show
that individuals like the prospective customer
are satisfied with the advertised product.
 Personal factors influencing consumer behavior.

Psychological
Personality: We know that a person's personality is
often reflected in the clothes they wear, the make and
type of car they drive, the restaurants they eat at, etc.
but we cannot quantify the individual traits of each
individual.
Self-concept: The person describes himself through
consumption.
Perception: The consumer makes decisions based on
what he or she perceives rather than on objective
reality.
People usually perceive the things they need or want
and block the perception of unfavorable or unpleasant
stimuli.
The way products are perceived is more important to
their success than the actual features they possess.
Products that are perceived favorably, obviously, have
a better chance of being purchased.
Motivation: All behavior begins with motivation, the motive (or impulse) is a
stimulated need that the subject tries to satisfy. It
is important that the need be stimulated so that it
becomes a motive. Sometimes man has needs
that are latent, therefore, they do not activate
behavior because they are not sufficiently
intense, that is, they have not been awakened.
Family: This directly performs the final
consumption function by operating as an
economic unit, earning and spending money. In
doing so, family members are forced to establish
individual and collective consumption priorities,
to select which products and brands they will
purchase and how they will be used to meet the
family members' goals.
 Importance of Consumer Behavior

Consumer behavior is an applied discipline. Such

applications can occur at two levels of analysis:
micro perspective:
You need to know your consumers in order to help
your company or organization achieve its goals.
Advertising directors, product designers and many
others who work in for-profit companies want to
understand consumers in order to perform their jobs
more efficiently.
Social perspective:
Understanding consumer behavior from a macro
perspective allows us to better understand economic
or social megatrends and, perhaps, help us predict
them. In addition, it will indicate some ways to
improve the efficiency of the market system and
increase the welfare of the members of the
society.
 THE COMMERCIAL STRATEGY

Definition of strategy
It is defined as an integrated pattern of actions aimed at
achieving previously established goals through the
coordination and channeling of the company's resources.
The purpose of the strategy is to achieve a lasting
competitive advantage that generates good profitability for
the company (Karölf),

Business Strategy
It is defined as the principles or paths that a company
takes to achieve its commercial goals, that is, to bring
products to the market without them being lost over time
through the use of marketing. (Archieve, 2014)
 . Classification of Business Strategies
Richard L. Sandhusen establishes the following
classification of strategies
. Intensive Growth Strategies
. Integrative Growth Strategies
. Diversified Growth Strategies
. Market Leadership Strategies
. Market Challenge Strategies
. Market Monitoring Strategies
. Niche Market Strategies
Intensive Growth Strategies:
They consist of intensively "cultivating" the company's
current markets. They are appropriate in situations
where existing "product-market" opportunities have not
yet been fully exploited, and include the following
strategies:
a. Penetration strategy
b. Market development strategy
c. Product development strategy
Intensive Growth Strategies:
1. Penetration strategy:
It focuses on more aggressive marketing of existing
products (for example, by offering a more attractive
price than the competition and by carrying out quite
aggressive advertising, personal selling and sales
promotion activities). This type of strategy usually
produces income and profits because
1) Persuade current customers to use more of the
product,
2) Attract customers from competitors and
3) Persuade undecided customers to become prospects.
Intensive Growth Strategies:
2. Market development strategy:
It focuses on attracting members to new markets, for
example, from those segments that have not yet been
reached (such as new geographic areas).

3. Product development strategy:

This includes developing new products to attract
members of existing markets, for example by
developing a new product presentation that provides
additional benefits to customers.
Integrative Growth Strategies:
It consists of taking advantage of the strength
that a certain company has in its industry to
exercise control over suppliers, distributors
and/or competitors.
In that sense, a company can move backward,
forward or horizontally. .
Integrative Growth Strategies:
1. Backward integration:

It occurs when the company increases its control over

its supply resources; that is, it controls its suppliers or at
least its main supplier.

2. Forward integration:

It occurs when the company increases its control over

its distribution system. For example, when a large
company owns and controls a network of service
stations or stores.
Integrative Growth Strategies:
Horizontal integration:

It occurs when the company increases its control over

its competitors. For example, when hospitals or
medical centers negotiate consortium arrangements
with specialist physicians so that each physician
provides services in a particular specialty (plastic
surgery, gynecology, pediatrics, etc.), but within the
hospital or medical center
Diversified Growth Strategies:

They are suitable when there are few growth

opportunities in the company's target market. Generally,
they encompass horizontal diversification, conglomerate
diversification and concentric diversification.
Diversified Growth Strategies:

Horizontal diversification strategies:

They consist of adding new products to the company's

product line, which are not related to existing
products, but are designed to attract members of the
company's target markets.
For example, when McDonalds adds toys to its kids'
burger combo, what it is actually doing is adding
products that are not related to its main product lines,
but that serve to more effectively attract a group of
customers in its target market (in this case, children).
Diversified Growth Strategies:

Conglomerate diversification strategies: These

consist of selling new products not related to the
existing product line, in order to attract new
categories of customers.

Concentric diversification strategies: Introduce new

products that have technological or marketing
similarities with existing products and are designed to
attract new market segments.
Market Leadership Strategies:

They are used by companies that dominate their

market with superior products, competitive
effectiveness, or both.
Once a company achieves leadership in its market, it
has two strategic options for further growth:
Market Leadership Strategies:

Cooperative strategy:
It consists of increasing the total size of the market
(for the same company and competitors) by finding
new users and applications for the product or
service.

Competitive strategy:
It consists of achieving additional market share by
investing heavily (for example, in advertising,
personal selling, sales promotion and public
relations) to capture customers from competitors.
Market Challenge Strategies:

These are strategies that companies can adopt against

the market leader and are classified into three:
1. Frontal attack
2. Attack on the sides.
3. Derivation strategies:
 Market Challenge Strategies:
Frontal attack:
It consists of attacking the entire market mix (product,
price, distribution, promotion) of the leader. It is usually
carried out by the strongest competitors.

Attack on the sides:

It consists of focusing on the leader's weak points, such as
price. It is usually carried out by weaker competitors.

Derivation strategies:
It consists of focusing on areas that are not covered by the
leader (generally, this is done by competitors who have a
very specialized product or service).
Market Monitoring Strategies:

They are used by competing companies that are not

interested in challenging the leader directly or
indirectly.

These companies try to maintain their market share

(and profits) by closely following the leader's product,
price, place and promotion policies.
Niche Market Strategies:
They are used by smaller competitors who specialize in
serving niche markets and are often overlooked or
unaware of their existence by larger competitors.

These types of companies (niche companies) offer very

specific and/or specialized products or services to
satisfy the needs or desires of small groups (of people or
organizations) that are homogeneous in terms of their
needs or desires.
 MARKET
CR Concept.
GR is the place where buyers (demand) and sellers (supply) meet to
make their transactions.
GR A market is the area within which sellers and buyers of a
commodity maintain close commercial relations, and carry out
abundant transactions in such a way that the different prices at
which they are carried out tend to be unified.
^
We understand market as the place where the forces of supply
and demand come together to carry out transactions of goods
and services at a certain price.
^ The market is everywhere wherever people exchange goods or
services for money.
 MARKET TYPES

--------------cog------------
^ According to the Number of Offerors and
Demanders

^ 1. Perfect Competition.
^ 2. Oligopoly.
^ 3. Monopoly
Types of markets

^ According to Size
GR Wholesale market. – These are markets where goods
are sold wholesale and in large quantities. This is
where middlemen and distributors usually go to buy in
bulk the products that they then have to resell to other
merchants at competitive [Link] and
capriciously elevated
 Types of markets
GR Retail Market.-
CR Also called supplies, where they are sold in small quantities
directly to consumers. A new
We have this type of market modality in the so-called
"Supermarkets", the that
COMMERCIAL MANAGEMENT 1
(05 5
COMMERCIAL MANAGEMENT cog 8
COMMERCIAL FUNCTION 10
Actions directed towards the interior 14
Importance of Commercial Management 15
SALES AREA ORGANIZATION 19
SALES AREA ORGANIZATION 20
SALES AREA ORGANIZATION 21
^ Administrative functions: 21
SALES AREA ORGANIZATION 22
SALES AREA ORGANIZATION C3 23
^ Technical features: 23
AREA ORGANIZATION 24
SALES 24
C3 24
 Types of markets
^ Sales force organization: 24
SALES AREA ORGANIZATION 25
SALES AREA ORGANIZATION 26
CONSUMER BEHAVIOR 28
C3 28
CONSUMER BEHAVIOR 29
^ Staff 31
Organizational Consumer 32
Sociological School 36
Definition of strategy 43
Business Strategy 43
1. Penetration strategy: 46
2. Market development strategy: 47
3. Product development strategy: 47
Integrative Growth Strategies: 48
1. Backward integration: 49
2. Forward integration: 49
Horizontal integration: 50
Horizontal diversification strategies: 52
Cooperative strategy: 57
Competitive strategy: 57
Frontal attack: 60
 Types of markets
Attack on the sides: 60
Derivation strategies: 60
Market Monitoring Strategies: 62
cog 65
^ According to Size 66
Other types of market 78
Market segmentation 79
Psychographic. 81
Behavioral either 81
MARKET RESEARCH 82
CR Definition 82
Market Research Applications 86
Consumer Analysis: 86
Advertising effectiveness: 86
Product analysis: 87
Business Studies: 87
Sociological and public opinion studies: 89
Market Research Designs 93
Exploratory research designs 93
Conclusive research designs 94
Descriptive research designs. 95
RESEARCH PREPARATION 97
Types of markets
Tabulation 99
Tabulation and Analysis of Data 100
Analysis 100
REPORT OF THE INVESTIGATION 102
Philip Kotler 104
Jerome McCarthy 104
Ries and Jack Trout, 106
American Marketing Association (AMA), 107
Strategic Marketing: 108
Operational Marketing: 109
In conclusion 112
Direct marketing: 113
Relationship marketing: 113
Virtual Marketing: 114
ELEMENTS OF MARKETING 115
Product 118
Price 119
Distribution (Points of sale) 120
Communication (Promotion) 121
THE PRODUCT 122
Product attributes 123
Introduction Stage 126
Types of markets
Maturity Stage 127
Stage of decline 128
Conclusion 128
Price 129

The same consumer chooses the items he is going to buy,

eliminating he employee
shop assistant and small shopkeeper that sells
personally your articles
 GR According to the destination objective of the product
offered

^ Consumer goods market

cR They are made up of individuals or families who "1 • -f — -f —
acquire products for their personal use, for maintenance and decoration
of the home. Therefore, here we can include countless products of all
kinds.
^ Purchase frequency depends on many factors; one of them is the type
of product: durable products are not consumed with a single use, so
they are purchased less frequently than non-durable products, that is,
those that are consumed with one or few uses (for example, food
products).
^ Some are daily and routine purchases, for example, the newspaper,
while in others there is a longer period between two successive
purchases. Some products are greatly influenced by technological
advances (for example, household appliances).
Industrial goods market.-
This type of market is characterized by the following:
The purchase is based on reasoning, since it is the
source of profitability, most sales are made directly by
the manufacturer.
A good knowledge of the client and their needs is
required.
It is a collective purchase, usually several people
decide.
 Types of Industrial Markets:
Producers' market
Products are purchased to be transformed into other products.
In a developed economy, 80% of transactions take place in this market.
The purchasing decision is a group decision, meaning it is made by different
people.
Purchasing from a company is not an expense as in the consumer market but a
cost, and this makes purchasing much more rational.

Resellers Market
The demanders of this market are companies, people or institutions that acquire
products with the aim of selling or renting them to others, but without
transforming them.
In this case too, purchases involve costs and, therefore, decisions are equally
driven by the rational and economic component.
Public Institutions Markets
This market would include all public institutions. It differs in that in the
purchasing process the economic factor is not as important as the service to
the community.
On the other hand, decisions follow legal guidelines with rigid and pre-
established procedures.

Services market.

This market provides support for the development of a business or individual

activity. For example: banking, leasing, installment sales, insurance,
healthcare, education, real estate, transportation, hospitality,
consultancies, information, etc.
According to the nature of the products, markets can be
classified into: Markets for agricultural and marine
products.
Commodity markets. Markets for technical or industrial
products.
Markets for manufactured goods.
Service markets.
Other types of market
Open market
Foreign Exchange Market
Capital market
- credit market
-Stock market
- Money market
- Foreign Exchange Market
Second-hand market
Foreign Market
Domestic market
Black Market
Potential Market
Central Wholesale Markets
Futures Markets
Transit Markets
Markets at origin
Market segmentation
It is the process of dividing a market into smaller uniform
groups that have similar characteristics and needs,
The segmentation of a market can be divided according to
its characteristics or variables that can influence in his
purchasing behavior.
This implies that in order to segment, it is necessary to
really know the consumers and will be one of the decisive
elements in the success of a company's marketing strategy.
AI~MI~-IAAFr M
 Types of segmentation

Demographic Segmentation
The division of segments focuses on aspects
such as age, sex, race, religion, marital
status, family structure, income, occupation,
education or the generation to which
consumers belong.

Geographical. In this case, the criteria used

are related to the geographic location where
consumers are located, such as the
neighborhood, whether they live in an urban
or rural area, the province, autonomous
community, country or continent in which
they live or factors related to this location,
such as climate or population density.
Psychographic.
Based on this variable it is divided
the market based on social class, lifestyle or traits
personality further
characteristic of the group.

Behavioral either
behavioral. Consumers are also
often structured according to their
consumption habits, their
attitudes or the use they make of
the articles.
 MARKET RESEARCH

CR Definition
GR Market research is a systematic process of collecting
and analyzing data and information about customers,
competitors and the market.
GR .
^ Market research is the set of actions carried out to find
out the market's response to a product or service.

^ Market research involves analyzing demand, supply,

prices and distribution channels.
Components of a market study

Distribution
and quality channels
Objective of the market study
❖ Help create a business plan, launch a new product or
service, improve existing products or services, and expand
into new markets.

❖ It can be used to determine what portion of the population

will purchase a product or service, based on variables such
as gender, age, location, and income level.

❖ To provide a clear idea of the number of consumers who

will purchase the good or service that is intended to be
sold, within a defined space, during a medium-term period
and at what price they are willing to obtain it.
❖ It allows you to determine whether the characteristics and
specifications of the service or product correspond to
those that the customer wants to purchase.
❖ It allows us to determine the type of clients who are
interested in our goods, which will serve to guide the
production of the business.
❖ It provides information about the appropriate price to
place our good or service and compete in the market.
❖ When the study is done for investment purposes, it helps
to know the appropriate size of the business to be set up.
❖ It allows you to identify the usual distribution channels for
the type of good or service you wish to place.
Market Research Applications
Consumer Analysis:
Uses and attitudes.
Analysis of motivations.
Brand positioning and image.
Typologies and lifestyles.
Customer satisfaction.
Online purchasing power, through e-commerce.

Advertising effectiveness:
Advertising pretest.
Campaign posttest.
Advertising tracking.
Promotional effectiveness.
Analysis of Internet tools.
Product analysis:

Proof of concept.
Multi-concept-multi-attribute analysis.
Price sensitivity analysis.
Product test.
Packaging and/or label test.
Brand test.

Business Studies:

Areas of influence of commercial establishments.

Image of commercial establishments.
Buyer behavior at the point of sale.
E-commerce possibilities.
Distribution studies:

Audit of retail establishments. Distribution behavior and

attitudes.
Point-of-sale advertising. Internet as a distribution
channel.

Media:

Media audience.
Effectiveness of supports.
Analysis of formats and contents.
Social media and social networks.
Sociological and public opinion studies:

Electoral polls.
Mobility and transportation studies.
Sociological research.
Institutional studies.
STEPS TO CONDUCT A MARKET STUDY

Step 1. Definition of the Problem and Objectives of Market

Research
Step 2.- Design of the Market Research Plan:
Step 3.- Data Collection
Step 4.- Data Preparation and Analysis
Step 5.- Interpretation, Preparation and Presentation of the
Report with the Results
PROBLEM FORMULATION

It consists of analyzing the situation that will allow

establishing the specific purposes of the investigation and
exposing its terms in a precise manner.
This phase is limited to two aspects:
Explore the background that leads or led to the
proposed research.
Specifies the objectives pursued by the market research
to be carried out.
Market Research Designs
Exploratory research designs
The basic objective of exploratory designs is to gather more
information about the problem in order to transform it into a
well-defined problem. They help to:
• To identify threats and opportunities in the environment.
• To define problems precisely in terms of their objectives
and questions and thereby propose conclusive research
designs.
• To propose explanatory hypotheses for certain facts and
identify basic variables and their possible relationships,
which can then be contrasted through conclusive designs.
Conclusive research designs
Its basic objective is to provide conclusive evidence on the
questions and hypotheses raised. They are suitable when the
problem is perfectly defined.
Specifically, conclusive designs help:
• To contrast the hypotheses formulated after having carried
out exploratory research.
• To evaluate and select alternatives for action.
• To establish relationships between the variables of interest.
Examples: - The intention to purchase product x is higher in
women.
• A 10% price reduction will increase market share by 1%.
Descriptive research designs.

Its basic objective is to quantitatively describe the variables

of interest. They attempt to answer questions such as "who",
"what", "when", "how much", "how", "where" and "why" in
a quantitative way.
To describe market phenomena (variables of interest) and
measure the frequency with which they occur.
To determine the degree of association between variables.
To make predictions.
Causal research designs
Its basic objective is to identify and determine the cause-
effect relationships between the variables of interest.
Causal designs help determine:
• The variables that cause the effects, that is, which are the
independent variables or treatments and which are the
dependent variables.
RESEARCH PREPARATION

In this phase, four activities must be addressed:

• Determine the information needed to solve the problem.
• Determine the method of obtaining information.
• Design the questionnaire or instrument for collecting
information.
• Design the sampling plan.
PHASE IV: FIELD WORK CONDUCT

This phase involves collecting information using the questionnaire or the formal
instrument or support designed to collect primary information.
Its development is clearly conditioned by the type of communication
established with the sample, which may mainly be personal, telephone or postal.
There are companies specialized in carrying out field work. They are known as
field services. They are responsible for both scheduling and conducting the
interviews.
Field work involves several activities
Planning
Interviewer preparation.
Conducting the interviews
Work control.
TABULATION AND ANALYSIS

Tabulation
Its objective is the initial exploration of the data obtained,
offering basic results. It involves the counting and orderly
and summarized arrangement of raw data (stored in the
file) in a table or other summary format. It is equivalent
to calculating the frequency distribution of each variable,
that is, counting the absolute and relative frequencies of
each response option for each question.
 Tabulation and Analysis of Data

Analysis
It involves the development of different operations
on raw data, beyond the simple
count, to In order to obtain results that are
conclusions not directly observable, they are
say, that not derived from simple frequency
observation tables.
They allow to simplify the information collected with the
questionnaire or contained in the data file and to reach
conclusions about the behavior of the variables.
REPORT OF THE INVESTIGATION
The results and conclusions of the research carried out
must be communicated to the commercial management,
which entails the preparation of a formal written report
and the making of an oral presentation.
This report and presentation are often the only aspects
of the study that are known to the managers who must
evaluate the research. Therefore, this assessment will
largely depend on the way in which the information is
communicated.
SECOND UNIT
Philip Kotler
Marketing is an administrative and social process
through which certain groups or individuals obtain
what they need or want through the exchange of
products or services.

Jerome McCarthy
It is the execution of activities that can help a company
achieve the goals it has set, being able to anticipate the
desires of consumers and develop products or services
suitable for the market.
John A. Howard,

Marketing is a process of understanding consumer needs

and finding out what the company can produce to satisfy
them.

Ries and Jack Trout,

They believe that marketing is synonymous with “war”

where each competitor must analyze each “participant”
in the market, understanding their strengths and
weaknesses and drawing up a plan to exploit them.
and fend.
American Marketing Association (AMA),

Marketing is a way of organizing a set of actions and

processes when creating a product “to create,
communicate and deliver value to customers, and to
manage relationships” and its purpose is to benefit the
organization by satisfying customers.
Strategic Marketing:
“It is an analysis methodology that aims to
understand the needs of the consumer and to estimate
the potential of the company and the competition to
achieve a sustainable competitive advantage over time
and defensible against it”
Operational Marketing:

Broadly speaking, it involves specifying the

characteristics of the product or service offered,
selecting the intermediaries through which the market
is to be reached, setting an appropriate price and
specifying the means of communication that the
company will use to publicize it and to highlight its
distinctive qualities. ”
STRATEGIC MARKETING OPERATIONAL
MARKETING

NEEDS ANALYSIS/
CHOOSING TARGET SEGMENTS.
REFERENCE MARKET
DEFINITION.

MARKET MARKETING PLAN.

SEGMENTATIONMACRO AND MICROSEGMENTATION.

ANALYSIS OF POTENTIAL MARKETING MIX.

MARKET ATTRACTIVENESS.

COMPETITIVENESS ANALYSIS MARKETING BUDGET

CHOOSING A
DEVELOPMENT STRATEGY

IMPLEMENTATION OF PLAN
AND CONTROL.
In conclusion
What marketing does is consider a customer need and,
based on that, design, implement and verify how the
marketing of the company's products or services works.
Various strategies and tools allow marketing to position a
brand or product in the mind of the buyer.
TYPES OF MARKETING

Direct marketing:
It consists of an interactive system that gets followers and
results in its transactions by making itself known through
the advertising media of a place.

Relationship marketing:
It is included in direct marketing and is based on a
fundamental principle that says that you do not have to
sell, but rather make friends and they will be the ones
who buy. Making a profit in exchange for customer
satisfaction.
Virtual Marketing:

It is also called cybermarketing and is applied to the

Internet, and is aimed at anyone in the world who has a
computer and an Internet connection. In this marketing
there are SEO tools that allow companies to achieve
good visibility and sell their products or services better.
ELEMENTS OF MARKETING

McCarthy in 1960, which is used to encompass its four

basic components: product, price, distribution and
communication.
These four variables are also known as the 4Ps. The 4Ps
of marketing (the company's marketing mix) can be
considered as the traditional variables that an organization
uses to achieve its commercial objectives. To achieve
this, it is absolutely necessary that the four variables of
the marketing mix are combined with total coherence and
work together to complement each other.
[Link]
 Product
The product is the variable par excellence of the marketing
mix since it encompasses both the goods and the services that
a company sells. It is the means by which consumer needs are
satisfied. Therefore, the product must focus on solving these
needs and not on its characteristics, as was done years ago.
Within the product we find aspects as important to work on as
the image, the brand, the packaging or the after-sales
services. The marketing director must also make decisions
about the product portfolio, product differentiation strategy,
life cycle or even the launch of new products.
 Price
Price is the marketing mix variable through which a
company's income comes in. Before setting prices, certain
aspects must be studied, such as the consumer, market, costs,
competition, etc. Ultimately, it is the consumer who will
determine whether we have set the price correctly, since he or
she will compare the value received from the product
purchased, against the price he or she has paid for it.
Correctly establishing our pricing strategy is not an easy task;
we have to work together and with total coherence. The
variable of price helps us position our product, which is why
if we sell a quality product, setting a high price will help us
reinforce its image.
Distribution (Points of sale)

It is a set of tasks or activities necessary to transport the

finished product to the different points of sale. Distribution
plays a key role in the commercial management of any
company. It is necessary to work continuously to get the
product into the hands of the consumer at the right time and
place. There is no single way to distribute products, but it will
depend on the characteristics of the market, the product itself,
the consumers, and the available resources. Within the
marketing mix, the distribution strategy works on aspects such
as storage, inventory management, transportation, location of
points of sale, order processes, etc.
Communication (Promotion)

Thanks to communication, companies can make known how

their products can satisfy the needs of their target audience.
We can find different communication tools: personal sales,
sales promotion, advertising, direct marketing and public
relations. The way in which these tools are combined will
depend on our product, the market, the target audience, our
competition and the strategy we have defined.
THE PRODUCT

A product is a set of tangible characteristics and attributes

(shape, size, colour...) and intangible ones (brand,
company image, service...) that the buyer accepts, in
principle, as something that will satisfy their needs.

Therefore, in marketing a product does not exist until it

responds to a need, a desire.
Product attributes
Products are susceptible to analysis of tangible and intangible
attributes. This analysis will be based on the following factors:
Core. It includes the physical, chemical and technical
properties of the product, which make it suitable for certain
functions and uses.
Quality. Customer's assessment of the core elements and their
comparison with the competition
Price. This attribute has acquired a strong role in the current
marketing of products and services.
Container. Product protection element has great promotional
and image value.
Design, shape and size. They allow the identification of the
product or company.
Brand, names and graphic expressions. They facilitate
product identification. They are assets of companies.
Service. Set of added values to a product that allows it to
make a difference with respect to others;
Product image. Global opinion that is created in the mind of
the consumer based on the information received, directly or
indirectly, about the product.
Company image. Global opinion rooted in market memory
that positively or negatively influences consumer criteria
and attitudes towards products. A good company image
supports, in principle, newly created products; just as a good
brand image consolidates the company and the rest of its
products.
 Product life cycle
Knowing the phase of the cycle in which our product or service is located will
allow us to design the most effective strategy to extend its life in an increasingly
changing and rapid market.
Introduction Stage
This phase is characterized by negative profitability due to
the large resources required to manufacture, launch and
perfect the product, compared to the sales volume achieved.
Growth stage
It is characterized by positive profitability due to: Vertical
increase in sales.
High percentages are achieved in its potential market.
The manufacturing process is being perfected.
Efforts are being made to increase production.
New competitors are beginning to appear in increasing
numbers.
Possible emergence of cash flow difficulties due to major
expansion.
Manufacturing costs still high.
Maturity Stage
Main features are:
Sales continue to grow, but at a slower pace.
Manufacturing techniques are highly sophisticated.
Manufacturing costs are lower.
Large number of competitors.
Sales prices are falling, and a price war may occur.
Great commercial effort to differentiate the product.
In summary,
The profitability is not as high as in the previous phase, but
economic surpluses are produced (since there is no need for
large investments), which allows for the distribution of
good dividends, or investment in other products that are in
the early stages of life.
Stage of decline
This stage is characterized by a continued decline in
profitability, although cash surpluses are usually produced
due to disinvestment. The product must be renewed or
abandoned.

Conclusion
Placing products in their phase is a preliminary and
essential step in guiding the company's marketing policy.
For example, it would be absurd to make a great effort to
reduce the cost of a product that is in the growth phase,
when in reality the efforts should be directed towards
activating and attracting a growing demand.
Price
We can define price as the quantitative estimate made
of a product and which, translated into monetary units,
expresses the consumer's acceptance or not of the set
of attributes of said product, taking into account its
capacity to satisfy needs.
Factors influencing pricing

Internal areas External areas

Costs. Markets.
Amount. Types of clients.
Prices. Geographic areas.
Fixed benefits. Distribution channels.
Means of production. Promotion.
Break even point
The break-even point is, therefore, that amount of income that generates a
contribution margin (percentage of sales) equal to the amount of fixed costs.
Above this amount, income is obtained which, once the fixed costs have been
absorbed, provides profits, and below this amount, it provides losses.