MARKETING ASPECTS OF
NEW VENTURES
Introduction
Market Product and Pricing
Research Service Strategies and
Development Development Costing
Introduction
Facility Marketing
Management Strategies For
and Layout New Ventures
Primary Research. Primary research is 2 Types of
essential for businesses as it involves direct Marketing
interaction with consumers or third-party
Research
entities to conduct pertinent studies and
gather valuable data.
Secondary Research. Secondary market
research uses data and insights from other
sources rather than collected directly. This
information can be utilized to guide product
positioning and decision-making processes
Primary Research
B. Qualitative research
A. Quantitative Research
• Focus Group
• Customer Surveys
Discussion
• Binary or Rating
• Individual interviews
Scale Questionnaires
• Ethnographic Research
• Sampling
• Case Study Research
Company Websites -
Numerous
Secondary Research companies make
their business data
and information
accessible through
their websites or
share this valuable
information with
dedicated business
Commercial Sources -
Public Sources - platforms.
Newspapers,
Using public sources
magazines, television
is the most
media, and journals
convenient and cost-
are excellent
effective approach to
commercial
collecting a vast
information sources
Market Research
Development
Step 1: Define the
Problem. Step 4: List Major
Step 2: Define Buyer Step 6: Develop a
Competitors.
Persona Research Report
Step 5: Analyze the
Step 3: Prepare Step 7: Make
Results
Questions and Decisions
Conduct Research
Product and Service Development
Service Requirement Output Requirements (Output/
(Service) An intangible thing Goods): Physical objects or visible
or product cannot be entities. Consumers expect products
physically touched but still to have specific characteristics like
provides a sense of features, performance, quality,
fulfillment to the customer. reliability, and durability.
Product and Service
Development (PSD) Process
encompasses much more than just the production
of a product or the creation of procedures for
delivering a service. It involves a holistic approach
that includes research, design, testing, and
improving the product and the service.
Product and Service
Development (PSD)
Process
Step 1: Trend
Step 2: Consumer Step 3: Actionable
analysis and real-
and market research. insights.
world observations.
Product and Service
Development (PSD)
Process
Step 4: Concept
development and
refinement. Step 5: Step 6: Result
• Ideation Implementation and Assessment
• Prototyping launch
• Testing
• Refinement
Product and Service Development
(PSD) Flowchart
A flowchart is a visual representation of a process
or system. It uses symbols connected by arrows to
show the steps, decisions, and flow of information.
They aim to provide a clear visual representation
of a process or system.
Pricing
What is cost?
Cost is all the money spent to manufacture Strategies and
a product or provide a service. Costing
What is Costing?
Costing is the process of allocating costs
to various aspects of a business.
Product Costing
Overhead
Direct Direct labor costs
materials • Indirect
materials
• Indirect labor
The formula for Calculating the Product Cost:
Product Cost = Direct Materials + Direct
Product
Labor + Overhead Costs Costing
The formula for Calculating the Product
Cost per Unit:
Product Cost per Unit = Total Product
Cost / Number of Units Produced
Steps in Calculating the Product
Cost:
1. Organize the production expenses according to the particular
product.
2. Calculate the total cost of the direct materials used in the
production.
3. Calculate the total cost of direct labor.
4. Calculate the total overhead costs.
Service Costing
Semi-variable
Unit of
Fixed Costs costs
Measurement
Variable Costs
The formula for Calculating Total Service
Service
Cost:
Total Service Cost = Total Fixed Cost + Costing
Total Semi-Variable Cost + Total Variable
The formula for Calculating Total Service
Cost
Unit (Number of variables may vary):
Total Service Unit = (Variables 1) x
(Variable 2) x (Variable 3) x (Variable 4)
The formula for Calculating Cost per
Service Unit:
Service Cost per Unit = Total Costs for the
Steps in Calculating the Service
Cost:
1. Identify the total service unit by multiplying all the variables.
2. Calculate the total fixed cost related to the service.
3. Calculate the total variable cost related to the service.
4. Calculate the total semi-variable cost related to the service.
5. Calculate the total service cost by adding all the costs together.
6. Divide the total service cost by the total service unit to determine
What is Pricing?
Price is a crucial factor in influencing consumer
choice. Thoroughly analyzing various variables is
crucial for making effective pricing decisions.
Factors such as the business's nature, market
competition, brand positioning, and target market
Competition-Based
Objective -
Objectives of Pricing The level of
competition within the
industry determines
the pricing strategy.
Customer-Value
Cost-Based
Objective - The value
Objective - The price
determines the price
of a product or
of a product or
service is determined
service or its benefits
by considering the
to customers.
total cost involved in
Market Share
Objective - The
Objectives of Pricing pricing strategy is
centered around two
primary goals:
expanding the market
share and cultivating
strong customer
awareness and
loyalty.
Customer-Driven
Sales Orientation
Objective - The price
Objective - The price
is established
is strategically
depending on how
designed to boost
much the customer is
sales volume and
willing to pay.
maximize profits
Cost-Plus Pricing (Markup). This method Combining
involves calculating all the costs associated Costing with
with manufacturing a product or delivering
a service and then incorporating a
Pricing
predetermined markup to determine the
appropriate selling price.
Formula: Selling Price = Cost per unit x
(1 + Predetermined markup percentage)
A predetermined markup percentage is a Combining
percentage added to a product or service's Costing with
cost to determine its selling price. In
contrast, a desired profit refers to the profit
Pricing
level that a business aims to achieve over
time.
Formula: Predetermined markup
percentage = (Desired profit / Total Cost of
the product or service) * 100
Formula: Desired profit = (Desired
Revenue – Total Cost of the product or
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Most Common Pricing
Strategies
Economy Pricing - The Price Skimming - The
Premium Pricing -
price of a product or initial price of the product
The price of a
service is relatively low or service is deliberately
product or service is
and affordable, targeting set high to generate
set to a high price
customers who want to maximum consumer
point to create a
save as much money as interest. As more
perception of higher
possible on whatever competitors enter the
quality.
good or service they market, the prices are
purchase. lowered, creating even
greater appeal.
Most Common Pricing
Strategies
Penetration Pricing - The Bundle Pricing - This
Psychological Pricing -
initial price of the product pricing strategy is where
or service is intentionally The price of a product
multiple products or
set at a low level to swiftly or service aims to
services are offered
enter a competitive influence consumer
together at a discounted
market, gain a loyal perception and
price. This technique is
customer base, and behavior by using
commonly used to
generate rapid sales, with specific price points.
create the illusion of a
the plan of increasing the
good deal and increase
price later.
sales.
Most Common Pricing
Strategies
Dynamic Pricing - The
price of a product or
service adjusts in
response to changing
market conditions. It uses
algorithms and real-time
data to set prices based
on various factors such as
demand, competition, and
customer behavior.
Facility Management and Layout
Hard services Soft services
refer to physical modifications and play a vital role in enhancing the
adaptations to a building or its overall environment of the
structure. Fire safety is a typical workplace, making it more
example of hard service. It involves enjoyable for all. These services
installing water sprinklers, fire alarm include landscaping, event support,
systems, fire extinguishers, CCTV cleaning, canteen and pantry
cameras, theft alarms, electrical management, pest control, and
Proximity to the market
– For a business to
Business Location thrive, it must ensure
that its goods and
A. Controllable factors services are delivered
to customers promptly
and efficiently.
Positioning a business
near its target markets
can be advantageous
Supply of materials – Transportation
To maintain a continuous facilities – Efficient
production process, it is transportation
advantageous for the services guarantee
enterprise to procure raw the prompt delivery of
materials of the correct raw materials to the
quality, quantity, and company and finished
Business Location
A. Controllable factors
Infrastructure available Labor wages and the
– laws that govern it – It is
For businesses that imperative for any
heavily rely on energy, enterprise to prioritize
it is essential to be the awareness of both
located near power its workers' rights and
stations to ensure a the tax laws applicable
Government policies –
Government and local
bodies have policies
Business Location regarding labor laws,
building codes, safety
B. Non-controllable etc.
All enterprises must be
factors aware of these laws to
prevent administrative
and criminal liability.
Supporting industries – Climate and
Maintaining a strong environmental conditions
and mutually beneficial – It is vital for businesses
partnership with to have a profound
suppliers is paramount understanding
for businesses. environmental conditions.
These factors can
Workplace
A. Virtual Office
Start-up entrepreneurs widely utilize virtual Structure
workspaces due to their ability to enhance efficiency,
reduce commuting costs, and provide increased
flexibility.
B. Physical Office
Office layouts have changed from cubicles to open,
spacious areas that promote collaboration and
increase employee visibility. Office layout plans are
instrumental in defining the architecture of
collaboration and elements that prioritize productivity,
Open Office Design Workplace
A workplace layout that is characterized by
Structure
minimal walls or barriers between employees. It
promotes a collaborative and open environment
for communication and teamwork.
Cellular Office Design Workplace
A workplace layout that incorporates private,
Structure
individual workspaces known as
“cells” or offices. The design typically features
enclosed rooms or cubicles for each regular
employee.
Co-Working Space Design Workplace
A workplace layout consists of open work areas
Structure
with shared desks. It promotes collaboration,
flexibility, and a productive environment among
employees.
Combination Office Design Workplace
A workplace layout tailored to the organization's
Structure
specific needs and preferences. This combination
can create a dynamic and versatile office
environment that supports productivity and
collaboration.
C. Manufacturing / Plant. Workplace
Manufacturing businesses like Apple, Samsung,
Structure
Panasonic, and Sony, among others, have a range
of selections to choose from when it comes to
designing their production layouts.
Product or line layout
In this layout, only one (1) product type is made in
each area. The product is standardized and
produced in large quantities. Raw materials are
supplied and processed through one line to the
finished product. It is commonly used if there is a
Process or functional layout.
Workplace
This layout is helpful if there is a low production Structure
need. In this type of layout, machinery and
equipment are positioned according to the nature
or type of operations.
Fixed position layout
In this type of layout, the products are built in a
fixed location, with all the necessary materials
and equipment brought to that place. It is
because the products are too heavy or the
Process or functional layout.
Workplace
This layout is helpful if there is a low production Structure
need. In this type of layout, machinery and
equipment are positioned according to the nature
or type of operations.
Fixed position layout
In this type of layout, the products are built in a
fixed location, with all the necessary materials
and equipment brought to that place. It is
because the products are too heavy or the
Combination type of layout Workplace
It is a layout that utilizes a combination or a mix
Structure
of other layouts. This type is possible if an item
being made has different types and sizes. In
such cases, machinery and equipment are
positioned in a process layout.
Target Market
Market targeting is essential in the market
identification process to determine buyers’
everyday needs and characteristics. Prospect
customers are a market segment that the
entrepreneurial venture intends to serve.
Customer Segmentation
Models to Consider
Demographic
Geographic Psychographic
Segmentation –
Segmentation – Segmentation –
Age, gender,
Country, state, city, Personality,
income, education,
municipality, town values, attitude,
marital status
interest
Customer Segmentation
Models to Consider
Behavioral
Technographic Needs-based
Segmentation –
Segmentation – Segmentation –
Tendencies and
Mobile used, Products or
frequent actions,
desktop used, apps service must-
habits, features, or
and software used haves, needs of
product use
specific groups
Customer Segmentation
Models to Consider
Value-based Firmographic
Segmentation – Segmentation –
Economic value of Group customers
a particular based on shared
customer group organization
attributes
The Marketing Mix
a company's strategy for promoting its brand or
product in the market is referred to as the
marketing mix
The Eight (8) Ps of
Marketing
Product Place
refers to the item the Price The location of the
business offers to the It refers to the product or service's
customers, whether amount that purchase, sale, and
tangible (like physical customers are experience. It varies
goods) or intangible willing to pay for a from business to
(like digital goods or product or service. business because retail
services). and direct online sales
place products
differently.
The Eight (8) Ps of
Marketing
People Process
Physical Evidence /
It is all about the A set of steps that help
Performance
people involved in the businesses figure out
It refers to anything
launch or campaign, customer problems, look
that helps the target
including the at market opportunities,
audience trust the
company's key and make marketing
business.
executives, endorsers, materials to reach the
and the marketing people they want to see.
team.
The Eight (8) Ps of
Marketing
Promotion
Positioning
It refers to the entire
It refers to the
set of activities used
capacity to alter how
to promote a product,
consumers perceive
brand, or service. The
a brand or product in
goal is to make people
comparison to
aware of the product.
competitors.
A. Advertising - It is a
Types of Promotions method of mass
communication that
(Promotions Mix) is used to get people
to do something,
usually about a
commercial product
or service.
Print Advertising – Broadcast
Newspaper, Advertising –
magazines, catalog Television, radio,
mail podcast
A. Advertising - It is a
Types of Promotions method of mass
communication that
(Promotions Mix) is used to get people
to do something,
usually about a
commercial product
or service.
Digital Advertising –
Public/Outdoor
Online display ads,
Advertising –
search engine
Billboards, transit
marketing, social
advertising, street
media ad placement
walk ads
B. Selling – Also
Types of Promotions known as personal
selling, is a face-to-
(Promotions Mix) face selling technique
by which a
salesperson uses
interpersonal skills to
persuade a customer
to purchase a
C. Direct Marketing - D. Sales Promotionparticular
-A product by
Any marketing that sales promotion ishighlighting
a various
communicates or marketing strategy in features.
distributes directly to which a company uses
individual customers short-term campaigns
to get people interested
rather than through a
in a product, service, or
E. Public Relations -
Types of Promotions The set of techniques
and strategies for
(Promotions Mix) managing how
information about an
individual or company
is disseminated to the
public, especially the
media.
A. Paid media - is
The Media Framework when companies use
public relations,
marketing, and
promotional activities
they create and pay
for themselves.
B. Earned media - C. Owned media -
consists of news refers to any online
articles, blogs, and platform a business
social network possesses and has
discussions that complete control over,
mention a brand. such as a blog,
A. Value Proposition
(VP) captures why a
consumer should
Positioning purchase a company's
product or utilize its
service. There are
numerous competitors
in the market striving
B. Unique Selling to assert their
Proposition (USP) refers dominance.
C. Branding
to a distinctive quality
The process of
that sets the business
apart from the branding involves the
competition. The creation of a unique
business differentiates brand identity for a
itself from competitors by company.
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