Chapter 1

MARKETING ASPECT

This chapter presents the product marketability, supply and demand flow, marketing

analysis, potential market, target market, marketing strategy, channel of distribution, and pricing

scheme.

Service Marketability

Review centers have become a popular option for students seeking additional help in

preparing for examinations. These centers offer a range of services, from review classes to study

materials, which can help students achieve their academic goals. This is where LRSS review center

come in. Unfortunately, not all areas have access to review centers, which can be a significant

disadvantage for students (McMurry, Tanner, & Anderson, 2009).

Indeed, without a review center in their area, students might have to travel long distances

to attend classes, which can be both time-consuming and expensive. Students who live in rural

areas may not have the necessary transportation or resources to travel to review centers in bigger

cities. This can create a significant disadvantage for them since they will not have access to the

same level of education as those students who have access to review centers (Garza, & Fullerton,

2018).

In line with Maffea (2020), not having a review center nearby can result to inadequate

review resources. Review centers provide students with the latest study materials, practice tests,

and guidance from experienced instructors. Without access to these resources, students may not

be able to prepare adequately for examinations.

a review center in a certain area can lead to a lack of motivation. Review centers provide a setting

for reviewee to interact with other reviewees who have similar academic goals. They can

encourage one another to perform better and benefit from each other's experiences. Without this

type of setting, student may feel isolated and demotivated, which can lead to poor academic

achievement (Usher, & Kober, 2012)

According to Gonzales (2022), review centers are both crucial and feasible business to

start. An example is the LRSS Review Center, a newly proposed business to operate in Calinan

Poblacion, which focuses on providing an intensive review program for Licensure Examination

for Teachers (LET). The proposed review center is conveniently located in close proximity to the

private sectarian institution in the locality, making it easily accessible for students. With this, the

center will create its own handouts for use during the review, offer a combination of lecture-based

and test-based review methods, conduct mock exams, and employ highly qualified instructors who

are experienced and experts in their respective fields of specialization.

In addition, study centers offer significant discount rates in a locale with a larger target

market but minimal rival businesses. One of the strategies of the proposed business to be more

attractive to customers is by offering discounts (Smith, 2023). These discounts can be given to

specific groups such as students with outstanding academic achievement, group of students

composed of six reviewees and people with disabilities. Moreover, the first 200 customers who

take advantage of the offer will be accommodated on a first-come, first-serve basis.

Target Market

According to Newberry (2023), a target market is a group of people who are most likely to
purchase your goods or use a company’s services, and who have certain traits like behaviors and

demographics. The primary target market of the business are the fourth year college students of

the Bachelor of Science in Elementary Education and Bachelor of Science in Secondary Education

programs of the private sectarian institution in Calinan. These students were considered as the

primary target which belong to the demographic segmentation because age and education are the

bases in determining the target market. The secondary target market are the graduates from other

colleges and universities who lives near the area and are interested in enrolling to a review center

for LET, and also the unit earners who are willing to enroll in the review center.

Market Analysis

The market analysis is shown in the table below, which includes the total population, total

number of prospective markets, and target market share. Market analysis is a method of

determining whether or not a given market is suited for your industry. Market analysis can be used

to assess your current market or to seek new markets (Alhabeeb & Dexter, 2019).

Table 1. Market Analysis

A. Demand Analysis
Population 247
Potential market (85%) 210
B. Competitor’s share per 0
semester
Target Market (40.5%) 85 students per
semester

Based on the survey conducted by the researchers, there are 247 total population of students

currently enrolled in Bachelor of Science in Secondary Education and Bachelor of Science in

Elementary Education programs of the private sectarian institution in Calinan only for the school

year 2022-2023. When asked if they will avail of the services of the review center, results revealed
that out of 100 respondents, 85 respondents answered positively. Consequently, the estimated

target market conveyed that 105 students per semester will acquire the LRSS review program.

Thus, it became the basis of the researchers in determining the potential market of the business,

and also the possible daily customers.

Marketing Strategy

As stated by Kotler, Kartajaya and Setiawan (2017), marketing strategy can be defined as a

plan of action designed to promote and sell a product or service to a target audience. In addition,

according to Kopp (2021), marketing strategy also involves identifying customer needs and wants,

analyzing the competition, and developing a unique value proposition that sets the product or

service apart from others in the market. The marketing mix refers to the set of actions, or tactics,

that a company uses to promote its services in the market. The 4P’s, Product, Price, Place, and

Promotion, make up a typical marketing mix (The Economic Times, 2023). This section presents

the marketing strategy used in the business.

Service – The business will not only provide high quality services as LRSS review center

offers review classes, mock exams, study materials and coaching and support. The review center

also provides products such as textbooks, handouts and mock exams to help students in reviewing.

Price – The LRSS review center will offer an affordable price for the customers, providing

review classes, mock exams and right materials at a rational price in order to satisfy the need of

each client. Also, LRSS review center utilizes market price benchmarking, to set regular prices

lower than that of the competitors and to improve customer loyalty and attract customers.

Place – The LRSS review center will be located in an accessible location for easier access

of the students. The LRSS Review Center will be built near a private sectarian institution that the

college students attend.

tarpaulins containing the information of the LSS Review Center like location, services offered and

discounts. For magna and summa cum laude, the LRSS review center shall offer 30% discount;

while, for Cum laude, Special Awardees and PDW’s, the LRSS Review Center will offer 15%

discount, and, for a group of six students, the LRSS Review Center will offer 10% discount to

each of the six students. The LRSS Review Center shall also provide tarpaulins to the LET

topnotchers and passers enrolled in the review center. The business will also use the strategy called

social media marketing. This strategy will include facebook, twitter, and instagram advertising.

The business will use social media to promote the service being offered, the location of the

business, to post information, updates, and sales of the business.

Channel of Distribution

This will show the chain of business through which a good or service passes through until

it reaches the final buyer or the end consumer (Smith, 2022).

The figure below shows the channel distribution of the business.

Service Provider Clients

Figure 1. Channel of Distribution

The business will utilize a direct channel of distribution. This is the direct sale business

model which eliminates all intermediaries from the distribution process, keeping the brand to sell

products on its own. As a result, there shall be no retailer or third-party outlet to purchase or

promote services because of its intangible and inseparable nature. The review center will use a

direct distribution channel to establish direct relationships with customers. Reviewees in LRSS
review center can receive more personalized and responsive services which create a positive

experience and improve customer satisfaction. In addition, it improves profitability by eliminating

intermediaries; whereas, review center can reduce distribution costs and increase profit (Lee &

Lee, 2020).

Pricing Scheme

The pricing scheme implemented by a business allows for the establishment of a set of

standard prices for a service, as well as the ability to offer special pricing for specific customers

(Chen, 2022). In the case of LRSS Review Center, their pricing scheme involves reducing prices

in comparison to their competitors. By offering lower prices, the business expects to attract a

larger number of customers who will be interested in availing their services.

Table 2. Pricing Scheme

Average
Proposed
Educational Attainment Competitor’s
Price Per Semester
Price

Bachelor of Secondary Education ₱ 9,800.00 ₱ 10,000.00

Bachelor of Elementary Education 9,600.00 9,800.00

Unit Earner 9,800.00 10,000.00

Based on the results stated on the table, there’s a huge difference between the offered price

of the business against competitor’s price. According to Lee and Kim (2021), pricing strategy
involves lowering prices in comparison to competitors in order to attract price-sensitive customers

and gain a competitive advantage. The proposed business conducts a thorough analysis of the

market to identify the pricing strategies of the competitors and determine the appropriate pricing

benchmark to undercut their prices. To set regular prices lower than competitors on a consistent

basis. Also, LRSS utilizes this pricing scheme to improve customer loyalty and attract customers

who are motivated by lower prices.