SHS

Principles of Marketing
Module 15
ABM – Principles of Marketing
Grade 11/12: Module 15
First Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module maybe reproduced in any form
without written permission from the copyright owners.

Development Team of the Module

Author: Clarita C. Montemayor, T-III

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D.

Assistant Schools Division Superintendent

German E. Flora, Ph.D., CID Chief

Virgilio C. Boado, Ph.D., EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

 Target

“Give me six hours to chop down a tree and I will spend the first four
sharpening the axe”. Abraham Lincoln knew that preparation is everything. Whether
you’re chopping down a tree or figuring out how to write a marketing plan, the steps
you take ahead of time are crucial to your marketing success.

The primary aim of Marketing Planning is to direct the company’s marketing

efforts and resources towards present marketing objectives like growth, survival,
profit maximization, service to customers etc. However, the marketing activity and
objectives are the deciding factors on which all other activities of a company are
based. Thus, the entire activity of a company is actually based on the premise of the
marketing plan. Marketing planning is composed of three basic components such as
objectives, policies and programs.

Marketing Planning Process is a systematic approach to the achievement of

marketing goals. Steps in the process include goal setting, analyzing the current
situation, creating the marketing strategy and allocating marketing resources and
monitoring.

This module will provide you with necessary information and understanding
on the elements or parts of the marketing plan and its importance in the business.

After going through this module, you are expected to attain the following
objectives:

Learning Competency:
• Integrate the marketing concepts and techniques learned by preparing a
marketing plan. (ABM_PM11-IIg-j-24)
• Present a mini-marketing plan, orally and in writing. (ABM_PM11-IIg-j-25)

Subtasks:
1. Define marketing plan.
2. Understand fundamental marketing concepts, techniques, theories and
principles in area of marketing.
3. Apply the knowledge, concepts and techniques learned in preparing a
marketing plan.
4. Distinguish the different elements that make up the marketing plan.
5. Evaluate appropriate marketing strategies, practices and theories that
inform and guide organizations to ensure sustainability.
6. Design a detailed marketing plan by combining various marketing
concepts and strategies.

Before going on, check how much you know about this topic.
Answer the Pre-test on the next page.
 Jumpstart

Are you excited to answer the Pre-Test? Smile

and Enjoy!

Activity 1: PRE-TEST
Directions: Let us check your knowledge to our topic. Kindly arrange the
following words. These are the terms you commonly encounter when you
make a marketing plan. Examples/definitions of these items are given on the
right column.

1.OMCIAREDGHP ________________________________ age, gender and income

2.LONOETCHALCIG ______________________________ new production process
3.ATULARN _____________________________pollution, global warming, “acts of God”
4.METRAGTTEKRA ____________________________ potential customers/consumers
5.IZSEETKRAM ________________________________ number of potential customers
6.CITESJOBEV _______________________________ S.M.A.R.T.
7.DUETGB _________________________________ estimation of revenue and expenses
8.STARRIPEGTYGINC______________________ price skimming & promotional pricing
9.SISANALYCROAMMETALNVIRONEN ___________________________________________
economic, politico-legal, socio-cultural, demographic, technological & natural
10. SISANALYCROIMMETALNVIRONEN _________________________________________
company, suppliers, marketing intermediaries, customers, competition & publics

Great, you finished answering the Pre-test.

Congratulations and Keep on Learning…
 Discover

Enjoy Reading…

Marketing Plan
• It is the blueprint of how the marketing strategy is going to be implemented.
• It is much more tactical in its nature.
• Clarifies the key marketing elements of a business and maps out directions,
objectives and activities for the business and its employees.
• It is one of the most important business tools for any company to utilize.

Importance of Marketing Plan

1. It gives direction to an organization and its departments.
2. It helps to predict the future and control uncertainties.
3. Helps all the departments in an organization to work towards a common goal, that
is, customer satisfaction.
4. Reduces unwanted costs in marketing activities
5. A good marketing plan help an organization to achieve its goals and objectives
6. It allows for good flow of communication between various departments
7. It removes doubts and fears, if any, from the minds of employees
8. A good marketing plan enhances coordination and control
9. Marketing planning helps in continuous improvement of marketing activities
10. A good marketing plan leads to product innovation and new product development
11. It helps to leverage brand image and build brand equity.

Elements or Parts of the Marketing Plan:

I. Executive Summary
• The Executive Summary presents in a very concise manner, vital information
contained in the marketing plan such as its marketing objectives, strategy
recommendation, marketing budget, projected sales, and profitability. A well-
written executive summary is usually no longer than one or two pages because
it is a summary of the significant points and figures contained in the
marketing plan and it can only be composed after the marketing plan is
completed.

II. Study Background

A. Brief History of the Company
• As the starting point for your paper, select a product brand. Identify its
manufacturer and write a brief history of this company. Most
companies historical background can be found on the Internet.
Whenever you use material from the Internet, always cite your source.
B. Mission and Vision
• Research on the company’s mission and vision through the Internet.
These statements can give you vital information on its business
philosophy and long-term direction.
 C. Product/Service offerings
• List down the company’s current product offerings, classifying them by
type (hair care, personal care, home care. etc.) and also indicate their
suggested retail prices (SRP). This product listing can determine the
specific role your selected product bran displays in the company’s
entire product offering of product portfolio.

III. Macro-environmental Analysis

• Make an assessment of each of the company’s six macro-environments. Get
the latest data possible. A marketing plan of a particular product is a plan of
action for the future and is intended to be implemented in the coming year. It
is important that after accessing current information, secure also
authoritative information on how the figures may look like the following years.

A. Economic
• Latest economic data is projected. Make sure only relevant data are
used. Economic factors should be concisely stated and the
accompanied figures and projections acquired should also be indicated.
• An example of how to state a relevant economic factor would be:
Inflation rate as of the end of 2017 is 3.2%, and is expected to
3.7% in 2019.
B. Politico-legal
• The political macro-environment is assessed. Unless there is obvious
political instability, there is no need to project the political
environment. An exception would be a national election, which may
cause the economic and business climate to change dramatically.
C. Socio-cultural
• Identify relevant socio-cultural factors that may affect the manner of
how the selected brand will be marketed.
D. Demographic
• Based on the target market, cite current and relevant figures that may
affect the marketability of the product. Therefore, if the target market
is “female residents of Metro Manila between the ages of 18 and 25,
who are career-oriented,” determining the population of Metro Manila,
the gender mix of the population, and the distribution of the population
by age are all relevant to your brand’s marketability.
E. Technological
• Depending on the industry, identify relevant technological
developments that may favorably or unfavorably affect the chosen
brand. This may include, for example, a new production process which
the company can adopt to reduce manufacturing costs or an innovative
type of packaging, the patent of which may be owned by one of the
competitors.
F. Natural
• A thorough analysis of the natural macro-environment is undertaken
in this section: pollution, global warming and “acts of God”, among
others. There is no need to project this into the marketing plan’s
implementation phase, however, because these issues are not volatile
over the short-term period.

IV. Opportunities and Threats

• Enumerate identified opportunities and threats from the macro-
environmental analysis. Arrange them chronologically. Relate them directly to
 a specific macro-environmental factor and justify why they are classified as
opportunities or threats.
• An example is shown below:
Inflation rate as of the end of 2017 is 3.2%, and is expected to 3.7% in
2019. This is considered a threat because increase product manufacturing costs
and may result in reduction in consumer demand.

V. Micro-environmental Analysis
• The six Micro-environmental factors are assessed and evaluated because the
Micro-environment is not expected to change dramatically over the short-
term. It is largely unnecessary to project the situation to the following year.
The only aspect which may situationally require projection is the competitive
situation.

A. The company
• The company is evaluated in terms of its organizational ability to
implement marketing strategies. The relationship among functional
areas must be evaluated to determine if there are bottlenecks in
decision-making and if other functional departments are supportive of
the marketing.
B. Suppliers
• The relationship between the company and its suppliers is assessed.
This is specially for suppliers involved in the supply of raw materials
vital to product manufacturing. Any opportunities to improve the
company’s supply chain should also be investigated with the objective
of reducing product cost and increasing value to customers.
C. Marketing intermediaries
• The company’s distribution network is illustrated and explained in this
section. The choice of distribution type is reviewed and possible
improvements in intermediary relationships is determined.
D. Customers
• In this section of the marketing plan, identification of the geographic,
demographic and psychographic profile of the brand’s typical customer
is expected. The buying behavior should be explained and understood,
e.g. why they buy, where they buy, how frequently they buy and how
they use your product.
E. Competition
• This is where the brand competitors and the companies that
manufacture them are identified. If necessary, draw a perceptual map
to identify the closest competitors. Identify also the relative positions of
the different competing brands (including your own) in terms of market
share.
F. Publics
• Evaluate the company’s relationship with its publics: corporate
stockholders, the community, financial institutions, media, the
government and society as a whole. This can prevent any future need
for the company to engage in public relations and publicity.

VI. Strengths and Weaknesses

• Enumerate the identified strengths and weaknesses from micro-
environmental analysis. Arrange them chronologically. Relate them directly to
a specific micro-environmental factor and justify why they are classified as
strengths or weaknesses.
VII. The Market
A. Market size
• Show the size of your market. The total market is the sum total of the
group of individual or organizational consumers who have both the
willingness and financial capability to purchase a particular product or
service.
• Market size is expressed either in units or in value (pesos).
B. Market needs
• Know your market intimately to be able to serve its needs. Understand
and express what exactly the market is looking for in the product that
you are offering. Describe the market’s needs and wants and its value
perceptions of various product/service attributes.
C. Market trends
• Based on the historical trend, the segment or sub-segment’s growth
rate is projected over the plan period. Trends are also identified with
respect to market needs and preferences and subsequently projected.

VIII. Marketing Objectives

• Arrange the objectives in sequence. It may include brand awareness target
and sales revenue objectives. They must be specific, measurable, attainable,
realistic and time-bound.
• An example of a marketing objective pertaining to brand awareness is as
follows:
To attain a brand awareness level of 65% by December 31, 2019.

IX. Marketing Strategies

• Marketing Strategies are proposed based on a thorough analysis of
opportunities and threats, strengths and weaknesses and the market for the
proposed product/service. Strategies must collectively be able to achieve all
marketing objectives.

A. Product/Service Strategy
• It should be fully explained. Indicate any innovations you plan to
implement in your product or service, e.g. a change in packaging or
label, supplements to your service offering, etc. Identify the value
proposition or unique selling proposition of the product/service.

1. Target Market
➢ Describe in detail the target market of the product/service. Use as
many or as few segmentation variables as necessary to outline the
target market’s geographic, demographic and psychographic profile.
Quantify the size of the target market. If you plan to expand,
contract or totally change your brand’s present target market,
indicate the changes and justify it convincingly.
2. Brand Positioning
➢ State the current positioning of the brand/service. Remember that
the positioning of your proposed product/service must be unique,
beneficial and credible and must revolve around a product/service
attribute that is relevant to the target market.
B. Pricing Strategy
 • Based on the marketing objectives formulated, decide on a general
pricing strategy for the brand. It is possible to implement several pricing
strategies for a brand during an operating year.
• For example, a brand may have a general strategy of going-rate pricing
but implement promotional pricing during the last quarter of the year.
C. Distribution Strategy
• Review the brand’s current distribution strategy to determine if it still
applicable for the marketing plan’s implementation period. When
adjustments or modifications are required, give recommendations as to
how the selected brand can be distributed more efficiently.
D. Advertising and Promotion Strategy
• Provide details of the media and promotional plan, including locations
for advertising placements, their frequency and approximate costs.
Also, indicate the mechanics of the trade and consumer promotions, if
any their corresponding costs. Select media carefully, giving
consideration on cost effectiveness.

X. Tactical Implementation
• Develop tactics for each strategy. Some strategies may only require as little as
two tactical plans, while others may need to be supported by five or more
tactics. There is no precise number of tactics per strategy. There should be as
many tactics as necessary to contribute to successful strategy
implementation.
• An example of this is provided below:

Table 1
Marketing Strategy: Market Development

Tactics Operating Details Timetable

Establish a warehouse To accommodate store September 2019
in Cebu merchandise to support
Cebu retail operations
Hire and train Cebu Hiring must be localized September 2019
store personnel and extensive training
undertaken to maximize
customer service
Open a retail outlet in This is to take October 2019
Cebu advantage of the
growing market in the
Visayas

XI. Marketing Budget

• In this chapter indicate the total cost involved in the implementation of the
proposed marketing plan. Only third expenditures are to be included in the
marketing budget. Capital expenditures like retail outlet construction
expenses and the purchase of packaging machinery are excluded from the
marketing budget.
 • An example follows below:

Table 2
Marketing Budget, 2019

Advertising Expenses: Php 10,600,000.00

Television 7,500,000.00
Radio 1,870,000.00
Newspaper 1,230,000.00
Leaflets 25,000.00
Point-of-purchase materials 220,000.00
Sales promotions 650,000.00
Total Php 11,495,000.00

XII. Feedback and Control

• The purpose of this section is to ensure that each of the tactics is carried out
as planned. There should be feedback and control write-up for each of your
tactics. In paragraph form, discuss individual tactic benchmarks or
milestones to indicate that the tactic is implemented according to plan.
Corrective measures that can be taken to ensure adherence to plan must be
developed, e.g., reporting procedures and forms, coordination among parties
and accountabilities.

XIII. Financial Projections

• At this point, present the financial viability of your proposed marketing plan.
The latest available incoming statement of your company can be used. Begin
by calculating the expected revenues to be generated by your marketing plan.
Add the expected amount to the average historical sales of the company. The
sum is the total sales generated for the year. Using the same percentage of
cost of sales from the latest available income statement, deduct the percentage
amount from the total sales to obtain the gross profit. Then, add your
marketing budget to the average historical operating expense. Subtract the
sum from the gross profit. The difference is your income before tax (gross
income). Deduct income tax (currently at 30% of income for corporations) from
the gross income. The resulting amount is your income after tax (net income).
• If latest income statement is not available, you can prepare a projected Income
Statement using the incremental method. Simply calculate the additional
(incremental) sales the brand can realize as a result of the proposed marketing
plan. Use a close competitor’s historical income statement to determine
percentage cost of sales. Because the competitor manufactures a similar
product, its costs should be similar to yours. Apply this percentage to your
incremental brand sales and deduct this amount from your incremental brand
sales to arrive at incremental gross profit. Deduct your marketing budget from
your incremental gross profit to determine your incremental income before
income tax. Deduct incremental income tax (currently at 30% of income for
corporations) to arrive at your incremental income after income tax.
Brief outline of a Mini-Marketing Plan:
I. Executive Summary
II. Study Background
A. Brief history of the Company
B. Mission and Vision
C. Product/Service offerings
III. Macro-environmental Analysis
A. Economic
B. Politico-legal
C. Scio-cultural
D. Demographic
E. Technological
F. Natural
IV. Opportunities and Threats
V. Micro-environmental Analysis
A. The company
B. Suppliers
C. Marketing intermediaries
D. Customers
E. Competition
F. Publics
VI. Strengths and Weaknesses
VII. The Market
A. Market size
B. Market needs
C. Market trends
VIII. Marketing Objectives
IX. Marketing Strategies
A. Product/Service Strategy
1. Target Market
2. Brand Positioning
B. Pricing Strategy
C. Distribution Strategy
D. Advertising and Promotion Strategy
X. Tactical Implementation
XI. Marketing Budget
XII. Feedback and Control
XIII. Financial Projections
 Explore

Let us have some Enrichment Activities...

Activity 2
Directions: Read and understand each statement carefully. Write TRUE if the
statement is true or FALSE if the statement is incorrect. Write your answer on the
space provided.

_______1. A marketing plan does not have to be complex and lengthy.

_______2. A marketing plan is the collection of specific products.
_______3. The marketing planning process includes goal setting and analyzing the
current situation.
_______4. The elements of marketing planning include objectives, strategy and
budget.
_______5. Creating marketing strategies includes marketing objectives and create
alternative plans.
_______6. Goal setting includes marketing audit.
_______7. Analyzing current situation includes SWOT analysis and marketing
assumption.
_______8. Marketing planning is important to offset future uncertainties.
_______9. Socio-cultural based on differences in statistical factors of different
groups or customers such as age, gender, income and socio-economic
status.
______10. Retail outlet construction expenses and the purchase of packaging
machineries are included in the marketing budget.

Deepen

Activity 3
Directions: Read and understand each question carefully. Write your answer on
your answer sheet.

1. Discuss the most difficult part of creating the marketing plan for you.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
2. Discuss what part of the marketing plan excited you the most or gave you a chance
to exercise your creativity.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Rubric:
Criteria Excellent 4 Good 3 Fair 2 Poor 1
Clarity of All the thoughts Most of the Some thoughts The thought can’t
thoughts were very clear. thoughts were were clear. be understood.
clear
Reasoning The stand was The stand is The stand is not The stand is
well reasoned out. somewhat so reasonable. completely
reasonable. unreasonable.

Gauge

At this Point, you are now ready to combine and integrate all the
knowledge and learning you have acquired on the basic Principles of
Marketing.

Activity 4: Mini-Marketing Plan

Directions: Answer the following questions below to come up with a mini-
marketing plan. Copy and answer the questions in your answer sheet.

Company Name: ____________________________________

Question Answer
1. Objectives
What are the specific goals of your
business this year?

2. Your Product/Service
What product or service do you offer?

3. Customers
Who buys (or should buy) your product?
What do they need it for?
4. Competitors
Who are your top competitors and what
are their strengths?

5. Positioning
Given your competition, what makes
your business great and unique to
customers?

6. Pricing
How will you price your product?

7. Sales and Support

How and where will you sell and service
the product?

8. Promotion
How will people find out about you and
your product?

9. Budget
How much money do you have to
promote the product?

10. Action Plan

What will you do and when to sell and
promote your product?
Rubric for Scoring
Score Completion Accuracy Comprehension Organization Conventions
5 The answer is All Content Content is No major
complete. information demonstrates a well-organized grammatical or
provided is deep and easy to spelling errors. No
accurate. understanding read. Points more than two
of, and follow a logical minor errors.
engagement progression.
with, the text(s).
4 The answer is All Content Content is No major
missing slight information demonstrates well-organized grammatical or
details provided is understanding and easy to spelling errors. No
accurate. of, and read. Points more than five
engagement follow a logical minor errors.
with, the text(s), progression.
3 The answer is Most Content Content is Some major and
missing multiple information demonstrates organized and minor errors that
details. provided is basic easy to read. don’t necessarily
accurate. understanding Points follow a impair
of the text(s). mostly logical communication.
progression.
2 Content Some Content Content may Major and minor
suggests lack of information demonstrates be unorganized errors significantly
preparation or provided is less than basic and difficult to weaken quality of
comprehension. accurate. understanding read. Points do communication,
of the text(s). not follow a although still
solidly logical comprehensible.
progression.
1 Content only A small Content Content is Communication
marginally amount of demonstrates a unorganized, seriously impaired
related to the the lack of illogical, and by multitude of
question/ information understanding difficult to spelling/
prompt. is accurate. of the text(s). read. grammatical errors.

JOB WELL DONE… CONGRATULATIONS!!!

You Deserved a BREAK!
References
BOOKS

• Real C. So & Oscar G. Torres (2016). Principles of Marketing (pp. 101-110). Quezon City,
Philippines. Vibal Group, Inc.

• A.B. Ilano (2016). Principles of Marketing (pp. 351-327). Manila, Philippines. Rex Book Store,
Inc.
LINKS

• https://vtldesign.com/digital-marketing/digital-marketing-straegy/how-to-write-marketing-
plan-template/

• https://oportunitymarketing.co.uk/blog/5-reasons-why-a-marketing-plan-is-so-critical-to-
success

• https://www.rcampus.com/rubricshowc.cfm?code=E2W6XAW&sp=yes&

• https://www.economicsdiscussion.net/marketing-management/marketing-plan/31833
Answer Key