MARKETING PRACTICES OF

STREET FOOD VENDOR’S

TO ATTRACK CUSTOMERS
INTEREST
 Chapter 1
THE PROBLEM AND IT’S BACKGROUND
Introduction
The global market is becoming more competitive and small scale businessmen seek
efficient marketing practices that will produce profit. Street food business is one of the most
popular small scale businesses now a day. Urban population growth, a trending situation is one
factor that let street food vendors exist. Winarmo, F.G and Allain (2013), A. stated that urban
population growth has stimulated a rise in the number of street food vendors in many cities
throughout the world. Migration from rural areas to urban centres has created a daily need
among many working people to eat outside the home. Demand for relatively inexpensive,
ready-to-eat food has increased as people, especially women, have less time to prepare meals.
They also added that in some parts of Europe and North America, street foods, which
originated in Asia, Latin America and Africa have become an integral part of the local food
scene.

Street food in the Philippines is not a convenience for those who don’t have time to
cook, or an economic phenomena that flourishes during hard times. It’s already a lifestyle
(Fernandez, D., 1994). Street food micro-industries are vital for the economic planning and
development of many towns. But it seems that the contribution of street food vendors to the
economies of developing countries has been vastly underestimated and neglected (Winarno,
F.G. and Allain, A.). According to WEIGO (2015), economic downturns have a big impact on
vendors’ earnings. In 2009, an Inclusive Cities research project found many street vendors
reported a drop in consumer demand and an increase in competition as the newly unemployed
turned to vending for income.

Street food is not only a cultural phenomenon and a source of nutrition, but it also is a
way for many people to generate income. Street foods are long existent and embedded in
urban cultures worldwide, and are cheap and easily accessible, even for the poorest in the city.
The changes in urban life caused by globalization and urbanization, such as growing distance
between home and work and the increased woman labor force also contribute to an increased
demand for easily accessible food (FAO,2007).

Marketing practices of street food vendors in the Philippines is rich and diverse. It spans
from traditional methods like word-of-mouth and signage to modern strategies like like social
media promotion and food truck branding. Vendors often rely on catchy names, eye-catching
displays, and strategic locations to attract customers. Additionally, they may leverage cultural
events and festivals to showcase their offerings. Over time, there’s been a shift towards digital
marketing tools, but the essence of personal connection and unique selling propositions
remains vital in this industry.

The enduring fascination of customers with street food is deeply rooted in the intricate
tapestry of its historical evolution, wherein diverse cultural influences, centuries-old culinary
traditions, and the dynamic interplay of local ingredients converge to create a vibrant mosaic of
flavors and textures that captivate the senses and serve as a testament to the ingenuity and
resilience of communities around the world.

In Paniqui, Tarlac initially only fish balls, kikiam, and kwek-kwek were being sold, but as
time passed, they started selling more varieties of street food. As the demand grew, vendors
diversified their offerings to include other popular Filipino street foods such as squid balls,
hotdogs on sticks, and even “atay and kalamaris”. This expansion of their menu not only
attracted more customers but also added to the vibrancy of the local street food scene in
Paniqui, Tarlac. Eventually, the once modest fish ball stands evolved into bustling food hubs,
catering to the diverse tastes of the community.

Conceptual Framework

Independent Variable: Marketing Practice

Marketing practices serve as the independent variable in this study, constituting a multifaceted
set of strategic tools and approaches employed by the street food vendors to shape and
influence customer interest. The success of street food vendors in attracting and retaining
customer interest is contingent upon the effective implementation of the following key
elements within marketing practices:

Dependent Variable: Customer Interest

Customer Interest serves as the dependent variable in this study, encapsulating the degree to
which individuals are attracted to and engaged with the offerings of street food vendors. This
variable is assessed through various indicators, each reflecting a facet of customer interest and
influencing the overall success of street food businesses

Independent Variable Dependent Variable

- Product Presentation
- Communication Strategies - Sales Performance
- Pricing Strategies - Foot Traffic
- Location and Accessibility - Customer Reviews
- Social Media Presence - Loyalty Programs
- Hygiene and Cleanliness
 Figure1. Conceptual Framework of the Study

In summary, the independent variable marketing practices, represent a comprehensive array of

strategic tools that street food vendors employ to influence customer interest. The
effectiveness of these practices collectively shapes the overall success and sustainability of
street food businesses. Through a nuanced exploration of each element, this study aims to
uncover the specific practices that significantly impact customer interest among street food
vendors.

Through these dependent variable, the study aims to quantitatively and qualitatively measure
the extent of customer interest generated by street food vendors. By examining sales
performance, foot traffic, customer reviews, and loyalty programs, the research seeks to
uncover the nuanced aspects of customer engagement influenced by the diverse marketing
practices employed by street food vendors. The interplay between the independent variable
( marketing practices) and these indicators of customer interest will be analysed to draw
meaningful conclusions regarding the effectiveness of marketing strategies in the street food
industry.

Statement of the Problem

This study generally aimed to determine the marketing practices of street food vendors
to attract customer interest in Paniqui, Tarlac dealing with different consumers or customers. In
particular, it aims to:

1. Determine the street food vendor’s quality of product services.

1.1 Product services

1.2 Price

1.3 Business location and environment

2. What marketing practices do street food vendors use to attract customer interest?

3. How effective are these marketing practices in attracting and retaining customers

4. Provide efficient marketing practices that will improve or help to increase sales and to
provide adequate services

5. Provide additional information about marketing practices of street food vendors in our
society. Specifically its impact to the society or to the consumers of their products.
Hypothesis
The study tested the null hypothesis. It states that there are no factors that affect the
sales of street food vendors in Paniqui, Tarlac. A range of marketing practices identified doesn’t
have any significant effect to improve the sale and services. The identified marketing practices
do not help the street food vendors to improve their sales and services that will cater
customers need.

Significance of the Study

The study is conducted to benefit the following:

To Street Food Vendors. The result of this study will improve the marketing practices of
street food vendors and will help them to identify the best way to cater customer’s demands.

To future researchers. This study can aid students, whether in the same field or
correlated professions, in identifying related variables for their study and will help serve as valid
sources for future references

To CIT Colleges Foundation of Paniqui. This research would be another contribution to

the collection of the Institution’s Research and Development Department.

To the customers. In delivering quality servise, the customers will be the main priority
to ensure the integrity of the business establishment. This study will help the customers
understand their role and importance every time they decide to enter the business
establishment.

To Businessman. The research will serve a basis in doing or conceptualizing business

that offers un common techniques or approach to the consumer or target market.

Scope and Limitation of the Study

The study is primarily focused on the street food vendors operating in Paniqui, Tarlac. It
aims to investigate various aspects of their marketing practices, including but not limited to
their pricing strategies, promotional activities, customer engagement methods, and product

presentation techniques. In addition, the study also intends to delve into the food safety
practices followed by these vendors, encompassing food handling, storage, and preparation.
Furthermore, the business operations of these street food vendors, such as supply chain
management, vendor-customer relationships, and competitive strategies, are also within the
purview of this study.

On the other hand, the study has certain limitations. The sample size for the study may
be restricted by the number of vendors who are willing to participate, which might not provide
a comprehensive representation of all street food vendors in Paniqui, Tarlac. Additionally, the
study might be constrained by time and resources, limiting the depth and breadth of the
research. The study's findings may also be influenced by the vendors' willingness to share
accurate and honest information about their business practices.

Definition of Terms
The following terms were defined conceptually and operationally to have a better and
more comprehensible understanding of the study.

Street Food - The term "street foods" describes a wide range of ready-to-eat foods and
beverages sold and sometimes prepared in public places, notably streets. Like fast foods, the

final preparation of street foods occurs when the customer orders the meal which can be
consumed where it is purchased or taken away. Street foods and fast foods are low in cost
compared with restaurant meals and offer an attractive alternative to home-cooked food. In
spite of these similarities, street food and fast food enterprises differ in variety, environment,
marketing techniques and ownership (Winarno, F.G. and Allain, A.).

Marketing Practices - A method or technique that has consistently shown results

superior to those achieved with other means, and that is used as a benchmark (WebFinance,
Inc, 2015).

The requirements set out in the general clause entail a positive commitment on the part
of the business in that business and trade in the future must exercise good marketing practice
with reference to consumers, other businesses and public interests.

Customer Interest – refers to the degree of attention and enthusiasm that a customer
shows towards a particular product, service, or brand. It’s a measure of the customer’s
willingness to consider, learn about or purchase a particular items. This interest can be
influenced by many factors including the customer’s personal needs and preferences, the
perceived value or quality of the product or service, marketing and advertising efforts, and
societal trends. Businesses often try to stimulate customer interest through various marketing
strategies, such as targeted advertising, promotional offer, and customer engagement activities
 Product Presentation – Effective product presentation involves the visual and aesthetic
appeal of the street food offerings. This includes the overall arrangement packaging, and
display of food items, emphasizing their uniqueness and quality. Vendors leverage this
elements to capture the attention of potential customers and create a positive first impression.

Communication Strategies – Communication strategies encompass both verbal and

non-verbal interactions with customers. Street food vendors engage in clear and persuasive
communication to convey the uniqueness and desirability of their products. This includes
product descriptions, promotional messaging, and engaging customer interactions, all aimed at
fostering a connection between the vendor and the customer.

Pricing Strategies – The pricing strategy adopted by street food vendors influences the
perceived value of their products. Aligning prices with customer expectations and the perceived
value of the food items is crucial for attracting a diverse customer base. Additionally, strategic
pricing elements such as bundling and discounts are employed to entice price-conscious
customers.

Location and Accessibility - Strategic placement of street food stalls in high-traffic areas
is a pivotal marketing practice. Vendors aim to increase the visibility of their offerings and make
them easily accessible to passersby. The choice of location directly impacts customer exposure
and the likelihood of spontaneous purchases.
Social Media Presence - In the digital age, a strong social media presence is a vital
marketing practice for street food vendors. Utilizing platforms such as Instagram, Facebook,
and Twitter, vendors showcase their products, engage with customers, and leverage online
promotions to extend their reach beyond the physical location.
Hygiene and Cleanliness - Maintaining a clean and hygienic food preparation area is
essential for customer trust and satisfaction. Hygiene and cleanliness practices are integral
marketing components that contribute to the overall perceived quality and safety of the street
food offerings.
Sales Performance - Sales performance is a tangible metric reflecting customer interest
in the products offered by street food vendors. Higher sales indicate increased demand and
interest, providing a direct measure of the effectiveness of marketing practices in enticing
customers to make purchases.

Foot Traffic - The volume of foot traffic around street food stalls represents a
quantitative indicator of customer interest. Increased foot traffic suggests heightened curiosity
and attraction, emphasizing the importance of strategic location and visibility in capturing the
attention of potential customers.
Customer Reviews - Customer reviews and feedback on platforms such as online review
websites, social media, and direct testimonials provide qualitative insights into customer
interest. Positive reviews signify a positive customer experience, contributing to the overall
reputation and attractiveness of the street food vendor.
Loyalty Programs - The establishment and success of loyalty programs indicate the level
of customer interest in repeat patronage. Customer participation in loyalty programs reflects a
sustained connection and interest in the vendor's offerings, highlighting the impact of positive
experiences on customer loyalty.
 Chapter 2

REVIEW OF RELATED LITERATURE

Review of related literature contains significant and related studies that have
contributed in conceptualizing and building of the present study.

Overview
On Street Food
Oxford University Press (2015) defined street food as Prepared or cooked food sold by
vendors in a street or other public location for immediate consumption.

But according to Draper, A. (1996), street foods are an extremely heterogenous food category,
encompassing meals, drinks, and snacks. They also show great variation in terms of ingredients,
methods of retail and processing, and consumption. Various attempts have been made to
define them, but the most widely cited definition is that of FAO:

“Street foods are ready-to-eat foods and beverages prepared and/or sold by vendors
and hawkers especially in streets and other similar public places” (FAO 1989).

The central characteristic of street foods in this definition is their retail location, that is
“on the street”. To differentiate street food vendors from formal sector food establishments,
such as restaurants, the Equity Policy Center (EPOC) adds the further qualification that street
foods are sold on the street from ”pushcarts or baskets or balance poles, or from stalls or shops
having fewer than four permanent walls” (Tinker 1987) . In terms of production, street foods
may be centrally processed foods made by the formal sector food industry, or they may be
processed within the street food trade either by the 4 vendor her/himself or another small-
scale processor.

The Street Food Trade

The Nature of the Street Food Trade and its Economic
Importance
Like other informal sector enterprises, street food enterprises are characterized
by the small scale of the operation, use of traditional food processing technologies, and low
capital costs that allow ease of entry into the sector (Tinker and Fruge 1982). Those
who participate in this sector are principally the urban poor and this has been seen by
some as an innovative response or coping strategy on their part when denied access to
more formal employment structures. As Atkinson (1992) points out, however, this view
originated in the 1970s against a backdrop of economic expansion; the macro-economic
context of the 1990s is very different and support of the informal sector should not be
seen as a panacea for the urban poor. Because of its very nature, the informal sector is
not enumerated by official data collecting agencies; thus official statistics on the street
food trade are virtually non-existent. The EPOC and Bogor projects and various FAO
studies, however, have shown that the street food trade generates a surprisingly large
volume of business, which involves large amounts of money and also provides a
competitive source of employment and income to millions of people. For instance, FAO
estimates that there are approximately 100,000 vendors in Malaysia whose collective
total annual sales amount to over $2 billion (Dawson and Canet 1991)! The EPOC
studies found that the annual volume of trade ranged from $67 million in Bogor, a city of
250,000 people, to $2 million in Manikganj, a small provincial town of 38,000 people.
The trade also provides an important source of employment and income; EPOC found
that the street food trade comprised from about 6 percent of the total labor force in
Zinguinchor, Senegal and Manikganj, Bangladesh to 15 percent and 25 percent in Iloilo
City, the Philippines, and Bogor, Indonesia, respectively (Cohen 1985). Although hard
work with long hours, the income derived is generally above earnings from alternative
sources of employment. The earnings of paid assistants, however, are often less. A
study in Uganda found that most vendors earned a favorable wage--the majority earned
more than the minimum government civil service wage (87 percent earned US $5-$20
per day) and none earned less than the minimum wage--but most assistants were paid
less than US $9 per month (Nasinyama 1992). 7 Despite the need for further
documentation, it can be seen that the street food trade makes substantial contributions
to these urban economies (Cohen, 1985). Street Food Enterprises Most street food
enterprises are single person or household-based. A study in Pune, India, for instance,
found that most vendors owned only one kiosk/stall or cart (only 12 per cent owned two
and very few more than two), and most received assistance, either from family
members (45 percent), paid workers (8 percent) or both (19 percent) (Bapat 1992).
Similarly, in Jamaica, 90 percent of vendors were single person enterprises and the
remaining 10 percent were joint ventures (Powell et al. 1990). A similar situation was
found in the EPOC and other studies; the one exception being a study of street food
vendors in Nigeria which found that, in addition to assistance from family members,
most vendors employed one or two paid assistants (FAO and Food Basket Foundation
International 1991). It is important to recognize that the street food trade is both a retail
and a productive activity: although the sale of street foods is the most visible part of the
trade, most street foods have been processed to some extent, much of which may have
occurred unseen off-street. The EPOC studies found that 75 per cent of vendors in the
Philippines, Indonesia, and Senegal and 42 per cent in Bangladesh had processed
some or all of the foods that they sold (Tinker and Cohen 1986). Because of this, the
trade should be seen as part of the whole food system, rather than just as a service or
retail activity (Cohen 1985; Weber 1987). The extent to which foods are processed, and
by whom, varies; some street food vendors also provide an outlet for foods processed
by others in the informal sector, and also, in some countries, for small- and large-scale
food processing industries in the formal sector (Barth 1983; Powell et al. 1990). More
information on these aspects of street foods is currently lacking, but, as discussed
further in the next section, it is vital to assess their suitability for fortification in specific
contexts.

Street Food Diversity

The diversity of street foods is extensive, as they vary widely not only from
country to country, but also from vendor to vendor. Street food ingredients are country
specific and mostly undocumented. There are so many varieties that it is impossible to
provide a menu of all the different street foods consumed around the world. The EPOC
studies found a vast range available in each location studied; a list of popular street
foods in Bogor alone contains nearly 300 items in total, including numerous varieties of
rice-based meals, fried snacks, traditional cakes, soups and porridges, drinks, and fruit
(Chapman 1984). The ingredients and means of preparation were equally diverse and
included meat, poultry, fish, seafood, eggs, cereal products, soya products, fruit, and
vegetables. They were fried, roasted, boiled, baked, steamed, or eaten raw. Street
foods can be grouped in various ways: by meal (meals, constituents of meals, snacks,
and drinks), by number and type of ingredients (simple and complex foods that contain
more than one main ingredient), and by level and type of processing (minimally
processed foods, such as fruit which may only have been peeled or sliced, traditionally
processed foods made by the vendor or another informal sector operative, and centrally
processed commercial foods). Although traditional foods form the bulk of items sold,
foods processed by larger-scale food manufacturers are an important category of foods
sold in some contexts (Powell et al. 1990; EPOC 1985). 12 The range of foods sold by
vendors in specific contexts varies. The EPOC studies and other studies in Jamaica and
Pune, India found that in most countries vendors sell more than one kind of product,
although many specialize in certain food types or product lines, such as rice- or noodle-
based dishes (Bapat 1992; Cohen 1985; Powell et al. 1990). Specialization in single
product lines was practiced only by a minority of vendors, except in Senegal where
there was some specialization by men and women in product lines (Posner 1983). This
gender specialization was not so pronounced in other countries, although in Indonesia
there was a trend for men to specialize in wheat-based noodle dishes and women in
rice dishes (EPOC 1985). In the EPOC studies, and in Jamaica and India, it was found
that the preparation and sale of traditional foods tended to be the preserve of women
(Bapat 1992; Cohen 1985; Powell et al. 1990). Cost and Availability One of the common
prejudices held against street foods is that they are less nutritious and more costly than
foods prepared at home. Although little quantitative information is currently available on
these aspects of street foods, the findings of the EPOC and other studies do not support
these assumptions. The cost of street foods is usually competitive compared with that of
foods purchased from larger food establishments, such as restaurants and fast food
outlets. Also, due to the sometimes high costs of fuel and ingredients in urban contexts,
economies of scale can create a street food cheaper than the same food prepared at
home (FAO 1989). Broader economic factors can also affect the cost of street foods
relative to home-prepared foods; the EPOC study in Nigeria noted that economic
recession led to an increased consumption of street foods because of the scarcity and
high cost of obtaining ingredients (Cohen 1985). Another study in Nigeria also noted a
rise in consumption of street foods following the implementation of structural adjustment
programs including currency devaluation (FAO and Food Basket Foundation
International 1991). The latter resulted in fewer meals being eaten at restaurants where
prices had risen. Competition between vendors may also keep prices low, although, as
FAO has pointed out, this can lead to purchasing of inferior raw materials that may have
implications for food safety (FAO 1989). Many vendors operate elaborate pricing
systems in which they may give regular customers or fellow traders a discount (Bueno
1988; Owens and Hussain 1984). Another factor that makes street foods a potentially
cost-effective food is time; EPOC has drawn attention to the fact that many traditional
foods involve lengthy preparation and the purchase of street foods allows women to
substitute time spent in food preparation for income-generating activities (Cohen 1985).
Street foods are an accessible source of food and vendors are a ubiquitous urban
phenomenon in most countries. Vendors choose their locations with care, concentrating
in a variety of strategic spots, which, contrary to expectation, are not in exclusively
commercial areas. EPOC found that, with the exception of Minia in Egypt, the number of
In Egypt, traditional food eaten at home took little time or effort to prepare, whereas the
1 preparation of the most popular street food sold was time-consuming. This
relationship between those foods eaten on the street and those eaten at home was
unlike any seen in the other countries studied. 13 vendors correlated closely with the
total urban population, which supports the assumption that there is a direct association
between the number of street food enterprises and increases in city size (Tinker 1987).
The highest density of vendors was found in Bogor where there were approximately
18,000 vendors in a city of about 250,000, which corresponded to 14 people per vendor.
In other countries the density ranged between 34 and 69 people per vendor, but in
Minia it was 255 people per vendor. It is suggested that latter figure might be due to the
atypical nature of the street foods sold there. 1 These studies point to the low cost,
accessibility and convenience of street foods as key factors explaining their growing
popularity, although these would need to be assessed in local contexts.

Marketing

A marketing concept at its beginning entered to the business sector

organizations and it is now increasingly attracting the interests of non-profit
organizations such as hospitals, libraries, health care services, and environmental and
charity services. Attempts have been made to apply marketing principles and theories to
service organizations, which are not aimed purely at obtaining a monetary profit, but the
achieving of customer satisfaction and the fulfillment of objectives of the organization
(Kotler Philip and Andreasen Alan R, 1991).

On the other hand from the book of (Marketing Foundations) it defines marketing
as the process of creating, distributing, promoting, and pricing goods, services, and
ideas to facilitate satisfying exchange relationships with customers and develop and
maintain favorable relationships with stakeholders in a dynamic environment.

In consistent with the American Marketing Association (AMA), which defines

marketing as “the activity, set of institutions and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners, and
society at large.”

Blythe (2004) stated that marketing is the term given to those activities which
occur at the interface between the organization and its customers.it comes from the
original concept of marketplace where buyers and seller come together to conduct
transactions (or exchanges) for their mutual benefit.

While a Cole Ehmke, Joan Fulton, and Jayson Lusk state, that marketing your
business is about how you position it to satisfy your market’s needs. There are four
critical elements in marketing your products and business. There are the four P’s of
marketing.

Marketing Practices

In using marketing practices like the Pharmaceutical companies have come

under increasing scrutiny for their promotional practices (manner in which they market
and sell products to healthcare professionals and the general public) especially in light
of allegations of misleading advertisements on prescription drugs and improper gifts to
physicians. That gives a strict position on marketing practices so that the public can be
confident that the choices regarding their medicines are being made on the basis of the
merits of particular products and their needs as patients. (Novartis, 2014)

According to Andreason (1995) referred marketing practices as “transactional by

nature and focus on price, product, place and promotion to determine what benefits and
costs they would consider acceptable to reach consumers effectively”.

In addition it is a method or technique that has consistently shown results

superior to those achieved with other means, and that is used as a benchmark
(WebFinance, Inc, 2015).
5 P’S of Marketing

Thinking about all the elements in your business, no matter how small they may
seem, can help you position your business and therefore your products and services in
the market.The 5 Ps are key marketing elements designed to help you think about your
business strategically. Put broadly, marketing is a mix of business activities that aims to
build your brand and business in a consistent way. If you want to grow your business,
the 5 Ps of marketing can help you think about the different areas of your business can
add value and offer a product or service different from your competitors. Working your
way through each of the Ps can help you think about which areas of your business you
can change or improve on, to help you meet the needs of your target market.

Product. According to Kotler Philip (1997) anything that can be offered to a

market to satisfy a need or want. Products, which can be marketed, include physical
goods, services, persons, places, organizations, and ideas. In the deeper sense, the
product is not a physical item but a perception of the consumer/user. Product means the
satisfaction of the customer rather than a physical good. Goods are ingredients of
customer satisfaction. Marketing mix is the process or devise that makes this customer
satisfaction. Product can be a physical object, service or a benefit offered by the
marketer. They have tangible as well as intangible attributes. Product can be
categorized as consumer products and ‘industrial products’.

In addition from Carl McDaniel (2012) the product includes not only the physical
unit but also its package, warranty, after-sale service, brand name, company image,
value, and many other factors. Product can be tangible good such as computers, ideas
like those offered by a consultant, or such as medical care. Products should also offer
customer value.

Also Lancaster Geoff and Reynolds Paul (1995) stated that consumer products
are finished products offered to the end-user while the industrial products are products
that are bought by other companies in order to make another product or sell them to
obtain a profit. Consumer goods can be identified in forms of convenience goods,
shopping goods, specialty goods, and unsought goods on the basis of their consuming
pattern, and frequency of buying. People purchase convenience goods in regularly and
frequently basis with a minimum effort of selecting. Customers evaluate suitability,
quality and price style characteristics when they buy shopping goods. Specialty goods
are those, which have a brand reputation, unique identification, and purchased
habitually requiring a special brand. There are some products which are not known to
buyers, or although, they are known, customers are not concern on them. Such
products like life-insurance, food processors, new machines, new books, magazines,
computer software etc. are identified as unsought goods.

Moreover the product variable also involves creating or modifying brand names
and packaging, and it may also include decisions regarding warrant and repairs
services. Decisions and related activities are important because they are directly
involved in creating products that address customers’ needs and wants.to maintain an
assortment of products, modify existing ones, and eliminate those that no longer satisfy
enough buyers or that yield unacceptable profits.

“Product” refers to the goods and services you offer to your customers. Apart
from the physical product itself, there are elements associated with your product that
customers may be attracted to, such as the way it is packaged. Other product attributes
include quality, features, options, services, warranties, and brand name. Thus, you
might think of what you offer as a bundle of goods and services. Your product’s
appearance, function, and support make up what the customer is actually buying.
Successful managers pay close attention to the needs their product bundles address for
customers. Your product bundle should meet the needs of a particular target market..
(Cole Ehmke, Joan Fulton, and et.al)

The product element refers to what you are offering as a whole - what exactly are
you selling to your customers. This includes the value added features, branding and
packaging as well as service and warranty terms.

With the foregoing statements, a product may now be defined more specifically
as follows: “A product is anything offered for sale by a firm to buyers to satisfy their
physical, social, symbolic, and psychological wants and needs.” Dr. Roberto Medina
(2008)

Price. According to Kotler Philip (1997) is a flexible and influential element, which
determines the revenue/profitability/ market share for the organization. On the
customer’s point price is a determinant factor because most customers depending on
their income level consider the price before they purchase the product. Price attributes
different names. “Price is all around us. You pay rent for your apartment, tuition for your
education and a fee to your physician or dentist. The airline, railway, taxi, and bus
companies charge you a fare; the local utilities call their price a rate; and the local bank
charges you interest for the money you borrow. The price for driving your car on
Florida's Sunshine parkway is a toll and the company that insures your car charges you
a premium…"The concept of price constitutes two different types: the monetary price,
and the social price. Monetary price implies the payment of certain sum by the
customer, and the social price refers to the additional effort that the customer must
make in order to obtain access to a product. Price for the product is set when the
organization introduces or acquires a new product. Price can be revised to match the
change of the product. Organizations have different objectives and offer various
products to different market segments. Their position of the market may be different
from each other. Strategies are defined to accord with these objectives. Therefore,
pricing as a mix is obviously based on the marketing objectives of the company. Some
organizations price their product mainly for the survival in the competition.
 Of all the aspects of the marketing mix, price is the one, which creates sales
revenue - all the others are costs. The price of an item is clearly an important
determinant of the value of sales made. In theory, price is really determined by the
discovery of what customers perceive is the value of the item on sale. Researching
consumers' opinions about pricing is important as it indicates how they value what they
are looking for as well as what they want to pay. An organisation's pricing policy will
vary according to time and circumstances. Crudely speaking, the value of water in the
Lake District will be considerably different from the value of water in the desert.
(Business Case Studies LLP, 2015) Price

“Price” refers to how much you charge for your product or service. Determining
your product’s price can be tricky and even frightening. Many small business owners
feel they must absolutely have the lowest price around. So they begin their business by
creating an impression of bargain pricing. However, this may be a signal of low quality
and not part of the image you want to portray. Your pricing approach should reflect the
appropriate positioning of your product in the market and result in a price that covers
your cost per item and includes a profit margin. The result should neither be greedy nor
timid. The former will price you out of the market; pricing too low will make it impossible
to grow. As a manager, you can follow a number of alternative pricing strategies. In the
next column are eight common pricing strategies. Some price decisions may involve
complex calculation methods, while others are intuitive judgments. Your selection of a
pricing strategy should be based on your product, customer demand, the competitive
environment, and the other products you will offer. (Cole Ehmke, Joan Fulton, and et.al)

Carl McDaniel(2012) price is what a buyer must give up to obtain a product. It is

often the most flexible of the four marketing mix.

To make the product affordable to the target market and reflect the value of
benefits provided. Like David Salon have different pricing levels for haircut depending
on the Seniority (Suggesting skill) of the hairstylist chosen by the customer. Chiqui
Esrael- Go(2010)

The price element refers to the way you set prices for your products or services.
This includes discounts, sales, layby offers, advertised price and any price matching
services you may offer.

Your pricing will also depend on your business's position in the market. For
example, if you advertise your business as a budget car rental service, your pricing
should reflect that choice. If you're looking to grow your business you should consider if
your pricing reflects your business' positioning. MarketMyBiz (2014)

Promotion. According to J.J. Garusing Arachchige,(1994) it involves the function

that marketer communicates with customers in order to acknowledge the product.
Marketer needs to plan strategies to attract the present and potential customers to the
product. Product awareness with wholesalers, retailers, suppliers and others is made
through various communication tools. Usually, customer awareness is developed
through the company image and publicity. Simply the main objective of the marketing
communication is the persuasion of customers to purchase products of the company.
Marketer in the communication process identifies the target audience, set
communication objectives, and designs communication channels for the promotion of
the product. The message for the promotion is designed to get the attention, hold the
interest, arouse desires, and to perform action to buy. What to say, how to say, and
when to say' are answered by the format and the source of communication. Appropriate
tools must be decided for the promotion. Generally popular tools are advertising, sales
promotion, public relation and publicity, sales force and direct marketing.

In addition from (Cole Ehmke, Joan Fulton, and Jayson Lusk Department of
Agricultural Economics) “Promotion” refers to the advertising and selling part of
marketing. It is how you let people know what you’ve got for sale. The purpose of
promotion is to get people to understand what your product is, what they can use it for,
and why they should want it. You want the customers who are looking for a product to
know that your product satisfies their needs. To be effective, your promotional efforts
should contain a clear message targeted to a specific audience reached via an
appropriate channel. Your target audience will be the people who use or influence the
purchase of your product. You should focus your market research efforts on identifying
these individuals. Your message must be consistent with your overall marketing
image, get your target audience’s attention, and elicit the response you desire,
whether it is to purchase your product or to form an opinion. The channel you select
for your message will likely involve use of a few key marketing channels. Promotion
may involve advertising, public relations, personal selling, and sales promotions.

Promotion is the business of communicating with customers. It will provide

information that will assist them in making a decision to purchase a product or service.
The razzmatazz, pace and creativity of some promotional activities are almost alien to
normal business activities.

The cost associated with promotion or advertising goods and services often
represents a sizeable proportion of the overall cost of producing an item. However,
successful promotion increases sales so that advertising and other costs are spread
over a larger output. Though increased promotional activity is often a sign of a
response to a problem such as competitive activity, it enables an organisation to
develop and build up a succession of messages and can be extremely cost-effective.
(Business Case Studies LLP, 2015)

The promotion element refers to all the activities and methods you use to
promote your business and products. MarketMyBiz (2014)
 To build and improve consumers demand using the 4 components called the
Promotion mix. Chiqui Escareal – Go (2010)

Promotion includes advertising, public relations, sales promotion, and personal

selling. Promotion’s role in the marketing mix is to bring about mutually satisfying
exchanges with target markets by informing, educating, persuading, and reminding
them of the benefits of an organization or a product. Carl McDaniel (2012)

Place. Organizations provide their product to customers through an effective

position. Place mix represents the distribution channels that the organization utilizes to
convey their physical products or services to the end user. Distribution channel designer
must understand the service output levels that are expected by target customers. It is
necessary to have a clear understanding of what, how, why, where, and when
customers purchase, his waiting time for the purchase, the convenience that facilities
the customer when buying is completed, product variety for the choice and the service
backup which represents additional services associated with the product. Distribution
can be performed through single channel or multiplicity of channels. (Kotler Philip, 1997,
p.17):

According to (Cole Ehmke, Joan Fulton, and Jayson Lusk Department of

Agricultural Economics) “Place” refers to the distribution channels used to get your
product to your customers. What your product is will greatly influence how you distribute
it. If, for example, you own a small retail store or offer a service to your local community,
then you are at the end of the distribution chain, and so you will be supplying directly to
the customer. Businesses that create or assemble a product will have two options:
selling directly to consumers or selling to a vendor.

Although figures vary widely from product to product, roughly a fifth of the cost of
a product goes on getting it to the customer. 'Place' is concerned with various methods
of transporting and storing goods, and then making them available for the customer.
Getting the right product to the right place at the right time involves the distribution
system. The choice of distribution method will depend on a variety of circumstances. It
will be more convenient for some manufacturers to sell to wholesalers who then sell to
retailers, while others will prefer to sell directly to retailers or customers. (Business Case
Studies LLP, 2015)

While MarketMyBiz (2014) defines the place element refers to how you deliver
your product or service to your customers. This might include the physical location (e.g.
via a shopfront, online or a distributor), delivery methods as well as how you manage
your stock levels.
 In line with the perception of Carl McDaniel (2012) place or distribution,
strategies are concerned with making products available when and where customers
want them.

Same with the idea of Chiqui Escareal-Go (2010) placement or distribution are
making the product conveniently available to the target market consistent with their
purchasing patterns.

People. According to MarketMyBiz (2014) the people element refers to yourself,

your staff and your customers. This covers customer service levels, as well as effective
communication and training for your staff. You'll need to consider both your staff and
customers if you're thinking of growing your business. For example, if you're thinking of
expanding your business online, you'll need to think about how your customers use the
internet, if they would feel comfortable purchasing your goods online and if they would
be willing to pay shipping costs for your products. You'll also need to consider staffing
elements. Like knowledgeable staffs or has a skills and a need to provide further
training for them.
 Chapter 3
RESEARCH METHODOLOGY