Delivering real value to customers is the key to business success. This was the central message of marketing strategist and educator Jerry Yao during Araneta City’s free seminar for its lessees held on May 16 at the Gateway Cineplex 15 of Gateway Mall 2.
Yao, also known as “The Marketing Sensei PH,” discussed in the seminar some marketing basics, reinforcing the importance of customer-centric marketing strategies in today’s competitive landscape. He also shared marketing tips and tricks that will help businesses maximize profitability while providing better customer experiences.
Yao began his presentation with a discussion on value, defined in marketing as a customer-perceived difference in a brand’s product or service when compared to those offered by competitors. He said that one easy way for businesses to identify value for customers is by asking themselves why a customer should buy from them.
“What will I get from you that I won’t get from the other guy?” Yao said, adding that “if there is value, people will pay for it.”
Yao then talked about the four Ps of marketing, also called the Marketing Mix, which are “product, price, place, and promotion,” but underscored one key element that marketers should always consider when ideating marketing strategies based on these four elements: the customer. “It’s the customer who will dictate what your strategy will be with regards to these four P’s.”
Linking customer centricity to value, he said that businesses “have to know the value that the customer is seeking, and if you can provide that value.”
Yao then enumerated three effective ways to identify value for customers: segmenting, or the practice of dividing customers into sub-groups called segments; targeting, which involves tailored marketing approaches for each segment; and positioning, which is the placement of a product or service in the minds of a selected target market.
Another key point that he highlighted during his discussion was that marketers must identify different strategies for each segment, as each has unique needs and preferences. “There is no such thing as ‘one strategy for all segments.’ You have to understand one segment and how they react to your strategy.”
“Oftentimes, if a product doesn’t sell well, the problem is not the product itself, but because it doesn’t match the customer.”
Yao then discussed the importance of having a strong brand, which can be very helpful for marketers as it occupies a distinct position in consumers’ minds based on relevant benefits and creates an emotional connection between businesses and consumers.
He also listed down a few pricing strategies that companies can set within their product mix (or the comprehensive collection of products and services they offer) to maximize profits, target different segments, and enhance positioning. These are: product line pricing, where a range of related products with varying features and prices are offered to cater to different needs and budgets; optional product pricing, which is selling a core product at a lower price and then selling non-essential enhancing products at higher prices; captive product pricing, which is selling a core product at a low price and then selling necessary accessories at higher prices; by-product pricing, which entails setting prices for secondary products generated during the production of the main product; and bundle product pricing, where multiple products or services are offered together at a lower price than if purchased separately.
Aside from these pricing strategies, Yao also listed down several price-adjustment strategies that can be used to modify original prices to better match market conditions and consumer behavior. These are: discount and allowance pricing, which includes cash discounts and quantity discounts; segmented pricing, where prices differ by segment; psychological pricing, which aims to influence perception of price and quality (e.g., P99.75 instead of P100.00); promotional pricing, where prices are temporarily lowered to attract customers; geographical pricing, where prices are adjusted based on location; dynamic pricing, where prices are adjusted in real-time based on demand, competition, and market conditions; and international pricing, where prices for products sold in different countries are adjusted to accommodate other factors like exchange rates and tariffs.
The seminar, organized by Araneta City in partnership with J. Amado Araneta Foundation (JAAF) and the Department of Trade and Industry (DTI), is part of the company’s ongoing efforts to equip businesses with the tools they need to succeed in an increasingly digital and customer-centric marketplace.
