MARKETING ASPECT

The Marketing is considered the

most important area. This is so
because
it
describes
market
situations where the product can be
identified through the demand
analysis.
Product Description the primary
( and secondary, if any) product/s of
the proposed project is/are to be
vividly described in this section.

Industry Profile it describes the

general trade practices of an
industry or business which sells the
same product.
Some of these
practices
are
pricing,
sales,
methods
of
transportation,
promotion, channels of distribution,
supplies,
packaging
resources
available, the values of people, and
also the opportunities, threats,
strengths and weaknesses of the

Demand in this section the

student/researcher pinpoints the
specific customers who are willing
and are able to buy the proposed
product/s.
This could be done
through segmenting the market
geographically
and
demographically.
Demographical
segmentation

determines to whom, in a particular

a) Sex b) Age c) Religion d)

Educational Attainment e) Ethnic
Group f) Income level g)
occupation
and
h)
credit
availability.
Supply it represents the number
of
sellers/producers
selling
similar or substitute products.
Supply is referred to as the
competitors.

The first thing to do is to enumerate

the competitors, their location,
and their capacity/size. Then the
student/researcher
will
determine the 5 year historical
supply as well as the 5 year
future supply by using one of the
projection methods.

Marketing Plans or strategies should

be done in order to attract
customers
and
even
the
customers of the competitors.
1. Occupants Who are the target
markets?
What are their values, culture,
religion etc.?
2.
Object What makes the
products attractive to the target

Packaging, color, shape, size, etc?

3. Objective What is/ are their
objective/s
in
buying
the
product-status symbol, price
quality, etc?
4.

Occasion When do the

customers usually buy the
products- daily, weekly, during
birthdays,
anniversaries,
or

5. Outlet Where could the target

buyers buy the productsfrom
the
wholesalers,
retailers,
brokers, contractors?
6. Organization in the Family
What is the customers role in
the familyinitiator, buyer, or
decision maker?

5 Ps of Marketing Mix
1. Product - What should be done
with the product so that it will be
more attractive than the
competitors products?
2. Promotion What promotional
activity should be done in order to
compete with the promotions of
the current suppliers?
3. Pricing What terms of sale will
increase the selling value of the
products-n/30,2/10, n/30? What

In determining the selling price of the

products?
Pricing Techniques:
a. Cost Plus Method it is the simplest
method. The cost of the product is
figured out and tacked on a little
something for profit.
b. Market-Oriented Method - this is not
based on cost, but on the interaction
of demand and supply,
c. Loss Leader Strategy - Some
products may be sold at a losing

to go to their stores. The mark-up is

taken from other products.
d. Psychological Pricing Stating the
price on a lower scale. For example:
P2.95 instead of P3.00.
e. Value for Money Pricing this pricing
approach is not aimed at maximizing
profit per single purchase but in bulk
of quantity/frequent sale. This sales
tactic is an ideal mechanism in
tapping potential sales through more
purchases, thus

clearing inventory gluts and crating an

image of fresh supply. This pricing
concept targets either or both the diet
and price conscious consumers.
f. Pricing Factor Segmentation the
seller subdivides the market into
groups responsive to price and price
deals, product quality,etc.
Ex. No left-over, No sharing buffets
50%
Discount per pack
50% Discounts on all products a t

This strategy favors both the consumer

and the seller. On the part of the
consumers, they get the benefit of
quality and good tasting products at
reduced prices. On the other hand, the
seller avoids wastage and minimizes cost
of storage.
Example2 Midnight Specials This is
offered by Motels (9:00 p.m. to 6:00p.m.
at the price of 3 hours stay.)

Example 3 Discounting Plan

The company offers lower charges for
the following calls.
- Night calls
- Sundays and Holidays
- Morning overseas calls during
weekend hours
Example 4 Season Specials
40 % discounts on all room categories.

g. Marked Down Pricing in cases where

demand is limited and competition is
intense, the usual mark-up pricing
approach is temporarily suspended in
favor of a markdown to capture a
segment of the market. The concept
behind the markdown pricing is the
thought that the lower you can
make your price, the more you sell,
and you generate revenues sufficient
to cover costs and provide a profit.
h. Bonus-Pack Pricing for the end-users,
this is commonly used so that they will

the required quantity. A good example is the :

Buy 34 at the price of 30
4. Place or the Channel of Distribution
This describes how one will reach his
customers. He may use the services of the
middlemen, if his location is far from his
customers. If this is so, include also in the
budget the compensation which is given to
the middlemen. The compensation could be
in the form of commissions, fringe benefits,
promotional assistance or other forms.

5.

People this refers to the

salesmen who will be selling and
promoting the products, Do they
know the product?
Are they
committed to the company? Are
they motivated and satisfied?

Chapter 3
TECHNICAL ASPECT
The technical study discusses how
the products are to be produced,
when these products are to be
produced, how much will it cost to
produce the products, where to
produce the products and what
technology to be used.

Production Process/Process Flow

The production process discusses how the
products will be produced, specifying each step
that will be involved, and the time involved.
Production
Process/Process
Flow

the
production process discusses how the products
will be produced, specifying each step that will
be involved, and the time involved. The said
steps will be shown in a process flow chart
where some of the following symbols will be
used.

Transportation
Storage
Operation
Inspection
Delay
Equipment, Machinery, Furniture and Fixtures
this part discusses or describes the technology
that will be used manual, mechanical,
automated, or robotics.
If production process is done manually, then
the use of equipment, machinery, furniture and
fixture will be limited. However, the student
will still make a list of all the

the needed equipment, and other facilities. The

list should include the description, the
specification, and the prices of the listed assets.
If it is mechanical, automated, or robotics, the
student will also do the same.
Building The student should determine
whether it is necessary to put up, to rent, or to
lease a building.
If a building is to be
constructed, he should provide a computation
for the cost of the building. This includes the
determination of the life of the building as well
as the depreciation method to be used.

If the students proposes to rent a building, he

should determine the historical and the current
rent so that he will be able to project the rentals.
When it is necessary to renovate the building to
fit the requirements of the production process,
the cost of renovation should likewise be
included.
Location - the student is required to gather
maps in order to show where the proposed
project will be located. In the discussion, the
student should also describe the distance of the
proposed project from its competitors as well as
its supply of raw materials, public markets,
roads, communication facilities. He need to

Layout/Floor Plan This topic specifically

discusses how the place (factory, store, or
office) looks like and how it is arranged.
It is recommended that the student presents
the drawings including dimensions so that
readers could easily visualize how the proposed
venture will be.
Layout/Floor Plan this topic specifically
discusses how the place ( factory, store or
office) looks like and how it is arranged.
It is recommended that the student presents
the

drawings including dimensions so that readers

could easily visualize how the proposed
venture will be.
Capacity/Scheduling
The student, after describing the location,
layout, building, equipment, machineries,
furniture and fixture can now discuss its
capacity. He should be able to determine the
maximum capacity, the production schedule,
the number of shifts per day, number of
working hours per day, etc.
Waste Disposal there are some processes
that produce unhealthful wastes. Here, the

Utilities and Other Operating Costs this part

describes the amount, cost, and sources of
utilities-fuel, water, and electricity. It also
includes other costs that the proposed project
will incur like supplies, telephone, telex,
maintenance, repairs, insurance, taxes,
licenses, and SSS contribution. The provision
foreseen costs such as miscellaneous cost and
contingencies is also included.
Production Costs it includes the initial raw
material costs, labor costs, operating costs,
and other costs, and other costs to produce
the product.

Chapter 4
Organization and Management Study

This chapter describes the form of

business organization that is best suited
for
the
proposed
subject,
the
organizational structure, the number of
personnel needed, their qualifications,
their compensation, and the projected
time table before the project is
implemented.

Forms of Business Organization

There are four types of business
organizations:
1. Single proprietorship
2. Partnership
3. Corporation
4. Cooperatives
Organizational Structure the student
should be able to enumerate the
positions needed and their respective
job descriptions and job specifications.

Personnel Requirement based on the

organizational structure , the student
should determine the number of workers
needed in the organization.
Qualification Standards the student
discusses the qualifications of workers.
Three kinds of qualifications standards:
a.
Personal this refers to the
personality required of a worker his
traits, manners, values, the way he talks
his appearance, etc.

Experience this refers to the length of

working experience required of a worker,
and also related job experiences.
Academic this refers to the workers
academic
qualifications
or
the
educational attainment required to
perform the job better.
Compensation
Package

After
determining the number of workers
needed and their qualifications, express
their efforts in monetary form. Salaries
and wages required by law and the
result of the wage survey.