11
Principles of
Marketing
2nd Quarter
Module 1 (Week 1)
Market Segmentation of a Product or Service, Selecting the
Appropriate Target Market Segment and its Positioning
Yvonne P. Recelestino
Module Writer
Department of Education – Republic of the PhilippinesPage 1
Content Standards:
The learners demonstrate an understanding of…
1. the essence of the new product development, pricing, placing (distribution),
and promoting a product or service
2. the necessity of a marketing plan in business
3. and proper interpretation of marketing strategies through workshop and
presentation
Performance Standards:
The learners shall be able to…
● design a new product or service, decide types of pricing approach, and
choose distribution methods and promotion tools that respond to
market trends
● create a new product or service design and pricing, and promotion
and distribution strategies
● orally defend the mini-marketing plan to a group of marketing
professionals
Learning Competency:
●
●
select the appropriate target market segment and its positioning
define a product and differentiates the product, services, and experiences
Learning Objectives:
At the end of this module the students will be able to:
1.
2.
3.
4.
Understand the meaning and importance of a target market.
Understand the meaning and importance of positioning.
Understand the definition of a product
Appreciate the importance of a product in reaching to their target market and
create positioning.
To the Learners
This module w
Department of Education – Republic of the PhilippinesPage 2
ill equip you a necessary content knowledge, skills, and competencies about
the broad definition of a product, the means to know and reach out to their target
market, and how to create positioning in their minds.
You read and understand carefully each part of the module so that you can
be able to answers various activity that will help you develop your potentials in
understanding the lesson.
This module has the following parts and corresponding icons:
What I Need to Know
What I Know
What’s In
This will give you an idea of the skills or
competencies you are expected to learn in the
module.
This part includes an activity that aims to
check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
This is a brief drill or review to help you link
the current lesson with the previous one.
What’s New
In this portion, the new lesson will be
introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.
What is It
This section provides a brief discussion of the
lesson. This aims to help you discover and
understand new concepts and skills.
What’s More
What I Have Learned
This comprises activities for independent
practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
This
includes
questions
or
blank
sentence/paragraph to be filled into process
what you learned from the lesson.
Department of Education – Republic of the PhilippinesPage 3
What I Can Do
This section provides an activity which will
help you transfer your new knowledge or skill
into real life situations or concerns.
Assessment
This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
Additional Activities
In this portion, another activity will be given
to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.
This contains answers to all activities in the
module.
Answer Key
What I need to Know
In this module you will be able to encounter terminologies such as
product, service, consumer products, industrial products, etc. You are expected to
understand the classification of product and service.
There are various activities prepared by the writer/s that will help you
understand the meaning and importance of a product; its levels and classifications
that an organization may use in order to achieve its vision, mission, goals and
objectives. It is hope that you will learn to value the knowledge and wisdom of this
module.
What I Know
Instruction: True or False. Write T if the statement is true and F if it is false.
___________1. A product is something that can be touched.
___________2. A consumer product is a product that is purchase for personal
consumption.
___________3. A shopping product includes products that takes no effort for a
customer in comparing price and quality.
___________4. A service rendered to a customer is not considered a product.
___________5. An industrial product is a product that is purchase for further
processing or for use to produce another product.
___________6. Giving of ideas or consultation given by a doctor is not considered a
product.
___________7. A convenience product are products that can be found only in a
covenience store.
___________8. A consumer products does not require a good quality and high price.
Department of Education – Republic of the PhilippinesPage 4
___________9. In marketing, knowing the pereference of a customer s not
important.
___________10. Warranty is part of augmented product.
What’s In
On your previous lesson you learned about the buying behavior of the consumer and
business market. Now kindly differentiate the meaning/definition of a consumer
market from a business market and their costumer-buying behavior.
Consumer Market
Business Market
Meaning:
Meaning:
Customer Buying Behavior:
Customer Buying Behavior:
Before the lesson proper, kindly write the following guide questions to be given to
you in a piece of paper. Answer them based on your stocked knowledge or even as a
knowledgeable guess. After the discussion, try to answer those questions again, and
now apply the things learned from the lesson.
1.
2.
3.
4.
5.
What is a product?
What are the levels of a product and service?
What are the classifications of a product and service?
As an ABM student, is it important that you know this topics? Why?
How can you be able to apply the things learned from the lessons in your
everyday living?
What’s New
Product- anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need.
Service- an activity, benefit, or satisfaction offered for sale that is essentially
intangible and does not result in the ownership of anything. Example: banking, hotel
services, airline travel, retail, wireless communication, and home-repair services.
Department of Education – Republic of the PhilippinesPage 5
Broadly defined, “products” also include services, events, persons, places,
organizations, ideas, or a mixture of these.
Products are key element in the overall market offering. This offering becomes the
basis on which the company builds profitable customer relationships. A company’s
market offering often includes both tangible goods and services.
Target Market- a set of buyers sharing common needs or characteristics that the
company decides to serve.
Product position- is the way the product is defined by consumers on important
attributes- the place the product occupies in consumers’ minds relative to competing
products.
What is it
`Levels of Product and Services
1. Core customer value- addresses the question “What is the buyer really
buying?”. When designing products, marketers must first define the core,
problem-solving benefits or services that consumers seek.
2. Actual product- refers to brand name, features, quality level, design and
packaging.
3. Augmented product- refers to delivery and credit, product support, warranty
and after-sale service.
Product and Service Classification
Product and services fall into two broad classes based on the types of
consumer that use them: consumer products and industrial products.
Consumer Products- products and services bought by final consumers for
personal consumption.
●
●
●
Convenience products- a consumer product that the customer usually
buys frequently, immediately, and with minimal comparison and buying
effort. Examples: laundry detergent, fabric conditioner, shampoo, candy
etc.
Shopping products- a consumer product that the customer usually
compares on such attributes as suitability, quality, price, and style.
Example: clothing, furniture, appliances, hotel and airline services etc.
Specialty products- a consumer product with unique characteristics or
brand identification for which a significant group of buyers is willing to
make a special purchase effort.
Department of Education – Republic of the PhilippinesPage 6
●
Unsought products- a consumer product that the customer either does
not know or knows about but not normally consider buying.
Industrial Products- a product bought by individuals and organization for further
processing of for use in conducting a business.
●
●
●
Materials and parts- include raw materials and manufactured materials
and parts.
Capital items- are industrial products that aid in the buyer’s production or
operations, including installations and accessory equipment.
Supplies and services- include operating supplies and repair and
maintenance items.
Individual Product and Service Decisions
1. Product attributes- includes product quality, product features, and product
style and design.
2. Branding- a name, term, sign, symbol, design or a combination of these,
that identifies the product or services of one seller or group of sellers and
differentiate them from those of competitors.
3. Packaging- the activities of designing and producing the container or
wrapper for a product.
4. Labeling- range from simple tags attached to products to complex graphics
that are part of the packaging.
5. Product support services- customer service is another element of product
strategy.
What’s More
Activity 1: Matching Type: Choose the answer from the following terms/concepts.
Write the letter of the correct answer.
A. labeling
B. product
C. branding
D. target market
E. consumer product
F. industrial product
__________1. It refers to the name, term, sign, symbol, design or a combination of
these, that identifies the product or services of one seller or group of sellers and
differentiates them from those of competitors.
__________2. It refers to a product bought by individuals and organizations for
further processing or for use in conducting a business.
__________3. It refers to a set of buyers sharing common needs or characteristics
that the company decides to serve.
__________4. It refers to anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need.
Department of Education – Republic of the PhilippinesPage 7
__________5. It refers to products and services bought by final consumers for
personal consumption.
What I have learned.
Activity 2
Instruction: Below is a list of branded products. All you have to do is give the
appropriate target market for these products and the strategy that you are
going to do or design in order for the products to have a position in the minds
of the customer
Products with brands
Target Market to be
serve
Product Position
Strategy
1. Coca-Cola
(softdrink)
2. Whisper (sanitary
napkin)
3. Clear
for
(shampoo)
Men
4. Rexona
for Men
(deodorant)
5. Safeguard (soap)
What I can Do
Activity 3
Instruction: You will going to name a product with brand name, that you usually
purchase or use. And then give the three levels of that product. ( 3 levels are
core customer value, actual product, augmented product)
Department of Education – Republic of the PhilippinesPage 8
Name of the product
core customer value
actual product
augmented product
Assessment
Instruction: Read and understand the statement below and choose the
letter of the correct answer.
1. Which of the following refers to the set of buyers sharing a common need or
characteristics that the company decides to serve?
A. positioning
B. promotion
C. selling
D. target market
2. Which of the following refers to a consumer product that the customer usually
buys frequently, immediately, and with minimal comparison and buying
effort?
A. convenience B. shopping
C. specialty
D. unsought
3. Which of the following refers to anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a want or need?
A. price
B. product
C. promotion
D. place
4. Which of the following refers to the way the product is defined by consumers on
important attributes- the place the product occupies in consumers’ minds relative to
competing products.
Department of Education – Republic of the PhilippinesPage 9
A. product position
C. top-level management
B. marketing management
D. market segmentation
5. Which of the following refers to products and services bought by final consumers
for personal consumption?
A. capital items
C. consumer products
B. materials and parts
D. supplies and services
Additional Activity
Instruction: Give a product name or brand name for each different
types of consumer product and explain why it belongs to that group.
Consumer Product
Product name or
brand name
Explanation
Convenience
Shopping
Specialty
Unsought
REFERENCES
I.
Principles of Marketing 14th Edition (Kotler, Armstrong, 2012)
Department of Education – Republic of the PhilippinesPage 10