Southville International School

Affiliated with Foreign Universities

Unit No. 4
Marketing Principles

Assignment No. 1- Front Sheet 1

Name of Student: Exequiela Gonzales

Date: March 6, 2015

Name of Assessor: Mr. Amir Tohid

Exequiela Gonzales Unit 4- Marketing Principles
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Table of Contents

1.1. Explain the various elements of the marketing process ................................................... 3

1.2. Evaluate the benefit and costs of marketing orientation ................................................... 6
SM Prime Holdings, Inc. ......................................................................................................................... 8
2.1. Show macro and micro environmental factors which influence marketing decisions .. 9
Five Forces of Porter ......................................................................................................................... 15
SM Prime Holdings, Inc. SWOT Analysis ..................................................................................... 16
2.2. Propose segmentation criteria to be used for products in different markets ................ 16
2.3. Choose a targeting strategy for a selected product/service ............................................... 17
2.4. Demonstrate how buyer behaviour affects marketing activities in different buying
situations. ................................................................................................................................................. 18
2.5. Propose new positioning for a selected product/service .................................................... 21
SM Malls Jingle Lyrics: ........................................................................................................................ 22
APPENDICES ........................................................................................................................................... 23
D1: Conclusion.................................................................................................................................... 23
D3: Proposed ideas for SM .............................................................................................................. 23
M2: Methods of data gathering ....................................................................................................... 25
D2: Gantt chart .................................................................................................................................... 26
M3: Glossary ........................................................................................................................................ 26
REFERENCES .......................................................................................................................................... 28

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1.1. Explain the various elements of the marketing process

The marketing process is creating value for customers where it starts with the companys
in-depth analysis of the unlimited needs and wants of the market, where they need to
determine market opportunity, segment or select the target market, select a marketing
strategy that is customer-driven, develop the marketing mix to satisfy the market,
formulate a marketing plan, build strong customer relations, and take it into action to
create value for customers (NetMBA, 2002).

Figure 1. The Marketing Process (2012)

Marketing is the art of persuading customer that they need a certain product or service.
Then it is a process of building customer relationships to perpetuate patronization of the
product offered. It is also proposing the customer value proposition. Customer value
proposition is the promises and benefits that the customers will get from the products or
services offered by the business.

Understanding the Market

To identify market opportunities, the company must know the unfulfilled needs, wants, and
demands of the consumers. After identifying the problem, the company must be able to
present that they have the solution, and the market needs it. A marketing research is
done in order to analyse both internal and external environments. The company will have
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a knowledge of its strengths and weaknesses, and identify its threats and opportunities.
External factors, such as the economy, political issues, legal matters, and technological
advancements may also affect the company and its products and services.

The Marketing Strategy

Figure 2. Marketing Strategy and the Marketing Mix (2012)

The goal of the business is to increase sales and gain competitive advantage. This is done
through the marketing strategy. Marketing strategy is composed of three main parts. The
first part is describing the target market, proposing the market positioning, and the goals
for the next few years. The second part is projects the planned price, distribution, and
budget. It is all about the financial part of the business. The last part is the long-term plan,
next product positioning, innovative ideas, marketing mix, and goals.

A target market must be defined so that the business may focus on a specific strategy to
carry out. These are customers with similar needs and wants that the company chose to
serve. The target market divided into more specific groups with specific needs is called

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market segments. Market segmentation is dividing the targeted consumers into their
specific needs that may require separate products or marketing mixes. Therefore, it is
easier for the company to come out with specific plans and strategies.

Develop the marketing mix

The goal of marketing is to be able to convince the consumers to avail their product or
service, and to achieve advantage against its competitors. The company must develop a
marketing mix for the target market. The marketing mix efforts includes: product,
placement, price, and promotion. Product pertains to developing all features of the product
or service being offered. It includes the brand name and equity, size, colour, variants,
packaging, and everything about its appearance. The accessibility and the availability of
the products to the consumers is all about placement of the marketing mix. Price deals
with how much will the company sell their product, and it should be reasonable and worth
its value. Promotion is when the product or service is made known to its target market. It
is through advertising, personal selling, sales promotion, and public relations (Boone &
Kurtz 2005).

Application

To complete the marketing process, the marketing goals should be put into plan. The
marketing plan includes the summary of what the company needs to do before taking
action. It includes the present market situation, the analysis of strengths, weaknesses,
opportunities and threats, marketing objectives, marketing strategies, marketing programs
in the marketing mix, budgets, and actual steps to implement the plans. The company will
now put into action to sell their product or service based on their marketing plan (Zarate,
2014).

To successfully market the product, the company should identify what makes its product
unique, why should the customers buy it instead of the others, and why should the

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customers continue to patronize it. These things are stated in the customer value
proposition.

An effective way of promoting and persuading customers is using a customer-driven

marketing. The product and the company should develop customer relationships so that
there will be long-term commitments. In order for the customers to support them, the
company should fulfil the promises they have stated in the customer value proposition.
That is the essence of marketing. Marketing is all about satisfying customers.

The whole marketing process will be expounded in this paper.

1.2. Evaluate the benefit and costs of marketing orientation

According to Kohli & Jaworski (1990) to fulfil the customers wants is goal of marketing
orientation.

The purpose of most business organisations is to gain profit, stay in the market, and gain
competitive advantage. The success of the business is based on how the customers
support their products. In a changing and emerging market, the business has to keep up
with the innovations and improvements. Marketing orientation is when the business
based the products and or services they offer from the wants and demands of the market.
On the other hand, product orientation is when the business offers products and or
services of expertise, and focuses on their product improvement and differentiation (Peter
& Donnelly, Jr., 2011).

According to Ash-Edmunds (2015), a marketing research will help the company identify
the market needs and wants. Based on the needs and wants of the consumers, the
company will launch their product of service, this is when the company is based marketing

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orientation. They produce and develop products especially for the consumers needs. A
business that is based on marketing orientation is customer-centric, it focuses on the
customer value proposition. Their customers needs and wants is the core of their
business.

Benefits

Being adaptable to the changes in the market is one way for the business to stay in the
market. Since the business is responsive on the customers, it will also gladly hear
feedback and suggestions that will help in improving their product and service. They will
also know their strengths to keep and weaknesses to improve on. If the company values
the welfare of its customers, they will gain competitive advantage among those who
focused on improving their products and forgetting what the customers demand because
they are less responsive.

Costs

Usually, the market does not have projections on the future and innovation. Basing too
much on consumer demands will impede the company from innovating and upgrading
their products from those who have product orientation. By relying from customers, the
business might not develop more high technology product advancements. This will make
their products more predictable since it is just based on customers demands, hence,
competitors will have an advantage on leading in the market.

Marketing Orientation vs. Other Orientations

Other companies use other kinds of orientations: product, societal, production, and selling.
Choosing an orientation depends on the customer value proposition proposed by the
company. When the company offers products that they expertise, they use product
orientation. Societal orientation is when the companys priority is the welfare of the society
and their contribution that they will give. When the company offers their product at a very

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affordable or a low price, they are practicing production orientation. In selling concept, the
products of the company are not often sought. Example of these are coffins and blood
donations.

Marketing orientation is all about researching the needs of the market. It prioritizes the
demands of the customers. This is a customer-driven marketing.

SM Prime Holdings, Inc.

In October 1958, Henry Sy, Sr. started a shoe store in downtown Manila, which he named
Shoemart. Henry Sy, Sr. thought of using merchandising concepts never tried in the
Philippines before, and became successful. He expanded his shoe store into a full line
retail store. Because of his innovations in the industry, Henry Sy, Sr. became known as
the Father of Philippine retail. (SM Shoemart, n.d.)

In 1972, the first SM Department store opened in downtown Manila. It offered convenient
shopping to its customers because it has a wide variety of merchandise, world-class
interiors, and excellent service.

Later on, this shoe store grew into a large group of companies. SM Group of Companies
is one of the leaders in Banking & Financing Industry and Property & Real Estate
Investment today.

SM Prime Holding, Inc. is one of the companies under the SM Group of Companies. It
operates large shopping malls and retail stores in the Philippines.

Today, it has 49 branches strategically located around Metro Manila, selected provinces
in the Philippines, China, and Guam (Coconuter, 2007).

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2.1. Show macro and micro environmental factors which influence marketing
decisions

Marketing decisions are based on the marketing mix: product, placement, price, and
promotion. A business has to decide how to present their product, make it more accessible
to the consumers, put cost based on its quality and value, and make their product known
to the market (Buleen, 2015).

Decision making in marketing is affected by macro and micro environmental factors.

Macro environmental factors do not have direct control on the organisation. These are
sociocultural elements, legal-political, economic, technological, and environmental
(Tischler, 2015). Factors that have direct influence in the decision making of the company
includes customers, employees, suppliers, shareholder, media, competitors, and the
general public.

Macro environmental factors

The company has no direct control over these factors that affect business operations.
These are the demographic, economic, natural, technological, political, and cultural forces
(Kotler & Armstrong 2014) that are already part of the macro environment of the business.
The business has to deal with these factors in order to remain in the market.

Figure #. Analyzing the Marketing Environment (2014)

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Demographic

Demographics refer to age, marital status, gender, educational level, religion, average
size of the family, income level, and occupation. Over the generations, the age distribution
of the population is changing. In this generation, there are more young people than old
ones. The ambiance, events, and the products offered by SM should be appealing to the
young generation. However, not all young people are financial independent. Therefore,
SM must make the young people convince the elders that have the capability to buy.

As observed in the malls, most customers are families and young people hanging out with
friends. SM has chosen to cater lower middle, middle, and upper middle class families,
with average income, and with source of income. SM has respect to all religions,
celebrating holidays and events. Every Sunday mornings, SM celebrates the Catholic
mass.

Socio-cultural

There are many changes in sociocultural elements in every generation. Peoples

preferences and lifestyle changes. There are new things that people need for their
convenience, and some products are no longer needed. SM Malls have been around for
more than 60 years. It has been with several generations. It offers a variety of products
suited for every generations need. As time passes, SM has to adapt with these changes,
and offer new and exciting things for the next generation.

In the Filipino culture, close family ties is important. SM is a wholesome place where the
family could spend time together. Most SM malls have churches nearby, therefore after
Sunday masses, families would go and walk to SM to buy their needs and eat.

SM celebrates holidays and events. Filipinos love celebrations, they will go to the SM
event, and after the celebration, they will go around the mall to buy and eat. This is one
way of SM to attract customers.

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Government and Political

Every establishment in the Philippines has to comply with the laws and regulations. SM is
affected by the political environment stability of the country since the government imposes
tax policies, trading agreements and restrictions, and competition policy.

The government asks SM to pay taxes. SM pays a lot of taxes like property tax, value-
added tax to the products, tax revenue, SSS and PhilHealth of the employees, and the
employees also has to pay withholding tax. If the taxes are higher, there will be more tax
expense for SM, so they have to raise their mark-up again, and the prices of goods and
rent will be higher. If the taxes are higher for the employees, there will less net pay for
them, giving them less motivation to work. Research states that money is a motivation for
the employees to work harder and more efficient. If the employees were not able to serve
the customer well, the customer would not be satisfied and would go to the competitor
mall instead.

Economy

The economic condition of the country affects business establishments like SM. Economic
indicators signify the ability of the most consumers to buy from malls. SMs sales would
be affected if there would be economic growth or crisis, interest and exchange rates hike,
and inflation.

SM imports products form different countries. A lower exchange rate value will affect the
cost price of goods sold, and SM needs to gain profit, thus raising the mark-up making the
selling prices higher. If the product is a necessity, it is a burden to the customers. If it is
not a primary need, only few people would buy it, making sales at SM a bit lower.

Technology

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Technology changes faster and faster each time. SMs marketing and management has
to adapt in new ways of producing, distributing, and communicating their goods and
services to the market. There are also modern ways of security and entertainment that
need to be assessed by the decision makers for the benefit of SM and its customers.

Nature/ Environment

Most businesses today concern the environment. Fulfilling its corporate responsibility, SM
adapts My Own Bag, in some cities in the Philippines, where they do not use plastic
bags. SM also takes its part in saving the environment by participating saving the nature
events.

Constructing a new branch of SM will require land development. Cutting trees, pollution,
and garbage disposal cannot be avoided in a construction. This will be addition to global
warming and climate change.

Nature is unpredictable. During a disaster like typhoon, SM malls that are situated in the
affected areas may experience flooding inside the mall, destroying the items for sale, and
it cannot also be avoided, there will be looters that would take advantage of the situation.
Around the area affected, some residents will have to evacuate, and there will be less
customers for SM. And in some cases, SM would be close during a devastating disaster.

Microenvironmental factors

Customers, employees, competitors, media, shareholders, and suppliers are factors that
directly affect the business.

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Figure #. Micro Environment 2011

Customers

Customers are always right. SM gives importance to the feedback of its customers. It has
everything the customers needs and wants, as its slogan says, Weve got it all for you.
SM has all the stores that everyone is looking for. It has about 300 retail establishments
inside the mall that bring enjoyable shopping, restaurants that served mouth-watering
food, coffee shops that give off hypnotic aroma, and bake shops that sell freshly baked
goods for thousands of customers every day.

SM Malls gets their revenue from lessees that occupy the stalls and units. SM and the
lessees will have to sign a contract regarding payment agreement. The lessee has an
obligation to settle rental fees in putting up their boutiques inside the mall. The boutique
or branch that rented a stall from SM will attract more customers especially if they offer
the goods and products that the customers need and want.

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Employees

SM needs skilled employees in order to operate. This affects the over-all performance of
the business. They are the ones who will relate with the customers. SM takes care of their
employees by giving them fair pay for their hard work and benefits, so that they become
motivated. Employees affect customer service and relations, and sales.

Suppliers

To continue daily operations, product distribution has to be carried out by the suppliers.
SMs customers expect that SM got what they need and do not run out of supplies. SM
relies on its suppliers to provide exceptional value to its customers. SM has many
suppliers from different companies and countries. Having few suppliers give them more
power because they can control the supply of the malls.

Shareholders

SM counts on its investors to fund and perpetuate the corporation. Interest investors can
buy shares of SM Prime Holdings, Inc. (PSE: SMPH). Shareholders need to know if they
had invested in a profitable company. SM provides information to its shareholders and
distribute dividends occasionally.

Competitors

Competitors motivate businesses to improve their products and services and offer it in the
best value possible (Kokemuller, 2007). Through the years, SM has been the largest mall
operator in the Philippines. It has competitive advantage over other malls likes Ayala Malls
Corporation, Robinsons, and Metro Guisano malls since it offers quality products and
services, terrific mall ambiance, and value for money though it caters to the masses.

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Media and the General public

The media and general public affect the image of the business. Most SM malls are for the
masses but they give classy ambiance in their interior, and at the same time offer value
for the money. The public supports businesses that contribute to the welfare of the
community, and have concern for the environment. The media, in turn, broadcasts any
good or bad publicity.

Five Forces of Porter

To develop new marketing strategies, it important to find out the competitive power of the
business in a situation. This is a brief analysis of the factors that affect marketing decisions
(Grewal & Levy, 2008).

There are many other shopping malls in the country, and some are situated nearby SM.
The goal of SM is to makes consumers prefer their mall over the other. For example, SM
Aura in Bonifacio Global City is placed near Market! Market!, an Ayala mall. SM has to
offer exciting goods and services, and bring enjoyable shopping.

The development of new technology gives a new way of shopping. For those who do not
have time to go to shopping malls, it is convenient for them to shop online instead. When
going to SM, customers will not have a hard time looking for their need. Stores that offer
similar products or services are together in one area, and there are enough parking
spaces for convenience. Forever 21, which is under SM, also offers online shopping.

SM relies on is suppliers to operate daily. The prices of goods are affected by the supplies.
If there are less suppliers, it has more control over the business.

The success of the business is dependent to its customers. SM takes care of its loyal
customers by giving them benefits through SM Advantage and Prestige and BDO
Rewards Card. Customers is another factor that affect prices through their demands.
They affect the image of the business itself. They could besmirch or encourage other
consumers by word of mouth.

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There will be new types of business coming in the future. Some might be preferable and
convenient than going to shopping malls like SM. Therefore, SM has to adapt and keep
up with the continuous changes in the business industry.

SM Prime Holdings, Inc. SWOT Analysis

Strengths - Brand equity

- Variety of stores and boutiques
- Unique amusement and entertainment
- Well-organized interior
- Ample parking
- Accessibility
Weaknesses - Financially challenged shoppers
- Occasionally crowded
Opportunities - Growing population
- International branches
Threats - Ayala Malls

2.2. Propose segmentation criteria to be used for products in different markets

Market segmentation is the process of diving the market into certain groups with similar
needs so that the business could easily develop a marketing strategy. A market segment
should be measurable, substantial, accessible, differentiable, and actionable. The criteria
for segmentation are based on geographic, demographic, psychological, and behaviour
(Perreault, Jr.,, et al., 2009).

SM Malls has more than 300 branches in the Philippines, and some in selected cities in
China and Guam. Its branches are strategically located in places with many potential
buyers like town proper and metropolitan cities.
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On weekends, after school or work, or any free time, the nearest getaway to forget stress
is to go to the malls. SM is an ideal place to go with family and friends. It offers a variety
of products to choose from depending on ones budget. People with higher income can
buy imported products and luxury, while less earners could buy their necessities in the
most affordable price.

Choices of consumers are affected by their psychological factors such as personality,

lifestyles, hobbies and interests, and values. Thoughts and feelings of consumers depend
on their knowledge, involvement, attitude, benefits sought, innovativeness, readiness
stage, and perceived risk. Most consumers of SM do not have a busy lifestyle, and they
seek convenience and shop according to their budget. SM has everything its customers
need, as its slogan says, Weve got it all for you.

The market is also segmented according to their similar behaviours. SM promotes

customer loyalty by giving them rewards, benefits, and exclusive privileges. Their
advertisement will also depend on their activities. Some watch television or prefer reading
newspapers. There are also consumers who go to the mall to window shop, or shop till
they drop, or only buy what is needed.

2.3. Choose a targeting strategy for a selected product/service

It is important to choose the most effective targeting strategy for a certain kind of business.
There are different marketing strategies to achieve the objectives of the business. Mass
marketing, segment, niche, and micro marketing are the types of target-market strategies.

Target marketing is when the business choose to cater a group of people sharing
common characteristics and needs, and they will apply a certain marketing strategy. It
helps select potential customers to attend to (Boone & Kurtz, 2005).

Mass marketing or undifferentiated marketing is when the business offers their

products in the whole market itself, ignoring groups and segments. This kind of business
usually offers physiological needs, products that everyone needs to survive. However, it
is difficult to meet the needs and expectations of all consumers.
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When a business chooses to offer their product to a group with specific needs and
demands is segmented marketing. Only people from a certain segment will patronize
their products. They apply different marketing strategies for different segments.

If market segments are further divided into more specific needs is niche or concentrated
marketing. It narrows down to a certain group of people which are part of the few in the
society. These can be the elite, or people with unique interests only. They do not expect
a huge part of the market who will patronize their products.

Narrowing down the target market to a specific location and certain race or status is micro
marketing or local marketing. The company might be offering a different version of the
product in certain areas that have specific needs. Some products might not be acceptable
in some cultures. The needs of the local groups or neighbourhoods are attended
specifically by the business (Tanner Jr. & Raymond, 2010).

Choosing a targeting strategy depends on the products and the type of the business.
Since SM is a mall, it has a variety of products and services to offer. SM is known to be
the mall of the middle class and some of the upper middle class, because it has an
assortment of stores that sell products with a huge price range. SMs target market is
segmented, since it is only located in the Philippines and some places in China and Guam,
and caters to a social status, not for both lower class and the elite.

2.4. Demonstrate how buyer behaviour affects marketing activities in different

buying situations.

Buying behaviour of consumers is affected by several factors like culture, social aspects,
personal, and psychological factors.

The beliefs, values, and traditions of the customers define their culture. Their preferences
are influenced by what they believe is acceptable in the culture. Some products are
forbidden in some cultures, while there are some people that only use products that they
are used to with, and used by people around them or people they admire. The company
may offer different variant from a culture to another (Zarate, 2014).
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Some people do not have their own buying decisions. They rely on people close to them
like their family or friends. People with different social status and jobs have different needs.
Some company offer products only made especially for a certain field. Some companies
offer the same type of products but with different quality and price range. People buy what
is suitable for them and based on their needs and wants, and ability to afford. Consumers
have different priorities in their buying behaviour. Peoples needs are generally classified
and presented by Abraham Maslow through the hierarchy of needs.

Fig. 2 Maslows Hierarchy of Needs (2013)

Individuals are created differently from each other. People have different lifestyle,
interests, occupation, civil status, religion, and personality. As a human being ages, his or
her needs differ. Some things that are preferred now may not be chosen later because of
changes in life and suitability.

The most important factor that affect the buying behaviour of the consumers is
psychological factor. This factor is also affected by marketing. It involves product
perception, beliefs and attitudes, and motivation. Sometimes people buy a product
because they were encourage to, not because they need it. This factor identifies the brand

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equity of the company, perception, and leaders in the market. The goal of marketing is to
convince the market that they need the product, and that they should buy it.

SM applies different kinds of approaches to its customers. It reflects the Filipino culture
and traditions. Occasionally, there is an event in a SM mall that celebrates events that will
help make families closer together. After celebrating, people in the malls will explore the
shops and eat in the restaurants. There are many products and services to choose from
in SM. It attends to the different needs of all sorts of occupation, age, gender, and lifestyle.
Customers have many things to choose from. SM offers occasional discount to their items.
SM holds a 3-day-big-sale twice a year. This type of promotion gives motivation for the
customers to buy due to the thought of grabbing the opportunity. Therefore, the customers
are given a shorter time to decide, limiting their preferences, and buying more items
because of the promotion. This buying decision is affected by the psychological aspect of
the customers.

Customers play an important role for the business success. In order for a business to stay
in the market, it has to perpetuate its cash flow through sales and revenue. A business
exists because of the customers. Their goal is to offer products or service to satisfy the
unending needs and wants of consumers, and offer solutions to the problems in the
market.

Before buying a product, consumers go through a process of decision making. They will
recognize their needs, search for the product they need and information about it, evaluate
their choices, make their final decision on purchasing the product, and when they already
have it, they will assess the product if it was worth it. If the customers are satisfied, they
will buy the product again, and recommend it to others (Kotler & Armstrong, 2004).

Evaluation of
Recognition of Search for Actual purchase Post-purchase
Choices for
needs information decision evaluation
products/services

Fig. 3 Consumer Purchase Decision Process (2014)

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2.5. Propose new positioning for a selected product/service

There are many brands that offer similar products in the market. To be identified in the
market, the company should position their product to be recognizable from the others. To
be easily remembered by the customers, a product should have one characteristic or label
that will be its identity, and will be remembered by the consumers. Positioning Strategy is
putting a point of difference between the products offered by the company to its
competitors (Perreault, Jr.,, et al., 2009).

Products undergo a life cycle. Before introducing a product to the market, it will go through
several reviews and developments. When it is ready compete in the market, marketers
inform their customers well about the product so that they will purchase it. As many
customers buy it, the product and the company will grow. At this stage, the company will
face more challengers. There will be tension and competition in the market. As time goes
by, good products remain and mature in the market. It will be immune to the competition,
however, the marketers will now lack fresh ideas of promotion, and even though the
product is proven and tested, it is still vulnerable. The marketers shall continue to work
hard on the product to survive in the market. Then, there would be a decline in the life-
cycle of a product. It is when it can no longer keep up with the innovations of its
competitors. Then this product is pulled out from the market to protect the companys
brand image.

In the Philippines, the first brand that comes into the peoples minds when they hear mall
is SM. Almost all provinces and key cities have a branch of SM. It is the number one mall
in the Philippines (Philippine Shopping Malls, 2006), followed by Ayala Malls and then
Robinsons. Therefore, SM has taken over the brand position of a shopping mall in the
Philippines.

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SM Malls Jingle Lyrics:

Come on in, look what we got

Theres so much more and such a lot

Here at SM, we got it all

We got it all

(We got it all) Lots of excitements, bargains and fun

(We got it all) Shopping convenience for everyone

At SM, its all at SM

Here at SM

Weve got it all for you

SM is known as the mall that has everything the market needs and offer shopping
convenience in a reasonable price. Also, it has taken the position in the market as the
number shopping mall. Therefore, SM has to maintain its image and must offer new
shopping experiences, exciting promotions, improve more on their excellent service, and
expand their branches.

It is still the same old SM, but different customers. Old product, new market. SM has
successfully dominated the shopping mall industry in the Philippines. It is not also
impossible for SM to become the leading shopping mall in the world.

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APPENDICES

D1: Conclusion

It is therefore concluded that marketing is the art of convincing people that they need a
certain product or service being offered, and persuading them to buy it. It undergoes a
thorough process of analysing the needs and the problems in the market to grab an
opportunity to promote the product to the selected target market, develop the marketing
mix and marketing plan, and implement the actions.

It is also proved that SM Prime Holdings, Inc., the operator of the SM Malls, has an
excellent marketing strategy. It caters to the middle and upper middle class of the society,
which makes up the most of the population who can afford spending time and money in
shopping malls. It offers a large variety of products, and all the needs of the shoppers.
Because of its outstanding marketing, SM has become the number one shopping mall in
the Philippines. Therefore, SM serves as a model that aspiring businessmen and
marketers should follow.

D3: Proposed ideas for SM

When people see this logo, they know that it is a trusted brand. SM is consistent
to all its branches. It has well-maintained and organized malls, friendly staff, and exciting
stores.

SM is the leading mall in the Philippines. Filipinos continue to patronize SM, its events,
and its products for decades. SM always has new promotional strategy and offerings to
attract more customers. It offers convenience shopping at a reasonable price. It has many
branches in the Philippines, almost in every province and city, and some in Guam and
China.

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SM was able to dominate the shopping mall industry in the Philippines. It is recommended
to SM to expand in other places in the world like in the United States, where there are also
many Filipinos, and Americans who want to shop conveniently and find everything they
need in one place. They could also branch out in the Middle East, Hong Kong, Australia,
and Canada, where there are also many Filipinos.

SM could sponsor more events such as sports and music festivals and concerts. It also
should adapt new ways of promoting their products to invite more buyers. It can also
expand to retailing other kinds of products entertainment. There are many new
opportunities for SM in the future.

Creative Ideas

1. The SM App Store

Most people rely on technology. Technology, in the first place, was developed to offer
convenience to the people. SM should release an app, The SM App Store, where all of
the products they offer are there. People could log-in using their account with password,
register their credit card number and buy anything anytime with a minimum purchase.
Products will be delivered depending on the availability of the couriers of SM. It will be
coming from the nearest SM branch.

They could also have interactive malls, where they could explore the store, boutiques and
department stores, and canvass prices easier where the customers do not have to walk
around the malls. They could also easily check the availability of the products in all
branches of SM. Example, the customer is from Las Pinas, the product or book he is
looking for is not around Metro Manila, and the last piece is available at SM Cebu, he
could order using The SM App Store.

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2. SM Convenience Store Open 24 Hours

SM Prime Holdings will launch another segment of their company, the SM Convenience
Store Open 24 Hours. This store is big as 7/11 or Mini Stop, where all the basic needs of
the people are there like emergency kits, medicines, few apparels, food, water, and other
beverages.

3. SM Vending Machine Teleporter 3000

In the future, there will be more advances in technology that we never imagined. All SM
Store products are available in a vending machine that is a big as a refrigerator. It is
situated in areas that are so overcrowded with establishments where there is no SM yet,
and SM does not have a vacant lot anymore. The projected population of the world at that
time may be 30 billion, if there would be no epidemic and natural disasters.

How to use it:

The customer will search the product he needs at the screen with The SM App Store.
Then the vending machine will ask him to deposit money in the machine. The item, which
will come from an SM store, has a chip, and if chosen, the chip will illuminate and the item
will disappear from the stall and go to the vending machine.

M2: Methods of data gathering

1. Books:
a. Most ideas came from the Kotler and Armstrongs Principles of Marketing,
10th edition, published by Pearson Prentice Hall.
b. Others came from Marketing books of McGraw-Hill Irwin found in Southville
International School and Colleges (SISC) Library
2. Websites- Most website articles came from reliable websites such as Investopedia
and Small Business Chron.

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D2: Gantt chart

2/13-15/2015 2/16-18/2015 2/20-27/2015 3/1-6/2015

Discussing the front
sheet
Research and data
collection
Presentation of draft
Consultation
Revisions
Submission

M3: Glossary

Concentrated marketing- A market-coverage strategy in which a firm goes after a large

share of one or a few segments or niches.

Consumers- Individuals and households who buy or acquire goods and services for
personal consumptions

Local Marketing- Tailoring brands and promotions to the needs and wants of local
customer groups- cities, neighbourhoods, and even specific stores.

Market segment- A group of customers who respond in a similar way to a given set of
marketing efforts

Marketing- A social and a managerial process whereby individuals and groups obrain
what they need and want through creating and exchanging products and value with others

Marketing mix- The set of controllable tactical marketing tools- product, price, place,
and promotion- that the firm blends to produce the response it wants from its target market

Marketing plan- Summary of what the company or firm wants and plans to do before
launching a new product, or before re-launching a product/service

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Marketing process - The process of analysing marketing opportunities, selecting target

markets, developing the marketing mix, and managing the marketing effort

Mass marketing- A market-coverage strategy in which a firm decides to ignore market

segment differences and go after the whole market with one offer.

Placement- Strategically putting a product/service that is accessible and convenient to

the target market

Positioning- The way the product is defined by consumers on important attributes

Price- The amount of money charged for a product or service

Product- Anything that can be offered to a market for attention, acquisition use or
consumption

Promotion- Temporary pricing products below the list price

Segmented marketing- Selling a product or service at two or more prices, where the
difference in prices is not based on difference on costs

Target market- A set of buyers sharing common needs or characteristics that the
company decides to serve.

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REFERENCES

Ash-Edmunds, S., 2015. The Importance of Market Orientation for Emerging Firms.
[Online]
Available at: http://smallbusiness.chron.com/importance-market-orientation-emerging-
firms-40155.html
[Accessed 22 February 2015].
Boone, L. E. & Kurtz, D. L., 2005. Contemporary Business. 11th ed. Ohio: Thomson
South-Western.
Buleen, C., 2015. What are the key marketing decisions?. [Online]
Available at: http://smallbusiness.chron.com/key-marketing-decisions-25575.html
[Accessed 22 February 2015].
Coconuter, 2007. Henry Sy's SM- History of Shoemart Supermalls. [Online]
Available at: http://coconuter.blogspot.com/2007/06/henry-sys-sm-history-of-
shoemarts.html
Grewal, D. & Levy, M., 2008. Marketing. 1st ed. New York: McGraw-hill.
Kokemuller, N., 2007. Six Microenvironmental Factors That Affect Businesses. [Online]
Available at: http://smallbusiness.chron.com/six-microenvironmental-factors-affect-
businesses-78023.html
[Accessed 22 February 2015].
Kotler, P. & Armstrong, G., 2004. Principles of Marketing. 10th ed. New Jersey: Pearson
Prentice Hall.
NetMBA, 2002. The Marketing Process. [Online]
Available at: http://www.netmba.com/marketing/process/
[Accessed 16 February 2015].
Perreault, Jr.,, W. D., Cannon, J. P. & McCarthy, E. J., 2009. Basic Marketing: A
Marketing Strategy Planning Approach. International ed. New York: McGraw-Hill.
Peter, J. P. & Donnelly, Jr., J. H., 2011. Marketing Management: Knowledge and Skills.
10th ed. New York: McGraw-Hill Irwin.
Philippine Shopping Malls, 2006. Major Philippine Mall Chains. [Online]
Available at: http://www.philippinecountry.com/philippine_malls/
[Accessed 26 February 2015].
SM Shoemart, n.d. SM Shoemart. [Online]
Available at: http://www.sm-shoemart.com/history.htm
SM Southmall, n.d. Information- SM Supermalls. [Online]
Available at: http://www.smsupermalls.com/smsouthmall/information
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Tanner Jr., J. F. & Raymond, M. A., 2010. 5.3 Selecting Target Markets and Target-
Market Strategies. [Online]
Available at: http://catalog.flatworldknowledge.com/bookhub/2030?e=fwk-133234-
ch05_s03
[Accessed 23 February 2015].
Tischler, J., 2015. Macroenvironmental Forces Affecting Marketing. [Online]
Available at: http://smallbusiness.chron.com/macroenvironmental-forces-affecting-
marketing-71632.html
[Accessed 22 February 2015].
Zarate, C. A., 2014. Principles of Marketing. 1st ed. Quezon City: C & E Publishing, Inc..

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